AASC Overview of PM Jan 2011

AN OVERVIEW OF PROJECT MANAGEMENT
SANJEEB KAKATI
THIRD EYE INFOSYS(P) LTD.
ABOVE KALPATARU
PANBAZAR GUWAHATI 781 001
CELL: 9435014576
E-MAIL: skakati@sify.com
Improvements Boundless
PROJECT: A JOB THAT HAS A BEGINNING AND AN

END [TIME], A SPECIFIED OUTCOME [SCOPE] AT A
STATED LEVEL OF QUALITY [PERFORMANCE], AND A
BUDGET [COST]
PROJECT COST C=f(P,T,S)
THE PROJECT PARAMETERS C,P,T,S ARE ALSO

CALLED CONSTRAINTS
AT ANY POINT OF TIME ONLY THREE OF

THE FOUR PARAMETERS CAN BE
CONTROLLED.
PROJECT MANAGEMENT:
EFFICIENTLY USING RESOURCES
TO COMPLETE A PROJECT AS
DESIGNED, ON TIME, AT THE
DESIRED LEVEL OF
PERFORMANCE, AND WITHIN
BUDGET.
But.
COST OF DELAYED PROJECTS (2004-05 TO 200910)

No of Cost overrun (in
Sector/ministry
projects
Rs cr)
Atomic energy
4
1,254.00
Civil aviation
24
-123.50
Coal
69
2,941.36
Petroleum
39
19,159.10
Power
40
3,778.33
Railways
70
23,295.40
Road transport
150
142.60
Shipping & ports
23
203.00
Steel
31
3,265.10
Telecom
30
68.40
Urban development
13
547.10
Water resources
1
644.10
Total
495
55,175.00
PROJECT IMPLEMENTATION STATUS REPORT OF CENTRAL SECTOR
PROJECTS (Costing Rs.20 crore & above)
Reasons for time overrun
Lack of supporting infrastructure facilities,
Delay in finalization of detailed engineering plans,

release of drawings and delay in availability of
fronts,
Changes in scope/delay in finalization of the scope,
Industrial relations and law & order problems,
Delay and uncertainty in feedstock supply,
Pre-commissioning teething troubles,
Technology problems, and
Geological surprises.
Reasons for cost overrun
Time overruns,
Changes in rates of foreign exchange and statutory
duties,
High cost of environmental safeguards and
rehabilitation measures,
Higher cost of land acquisition,
Change in the scope of the project,
Higher prices being quoted by the bidders in certain
areas,
Under-estimation of original cost, and
General price rise.
Many of the ills could be eliminated through effective

project formulation
Feasibility Analysis
Techno-Economic Analysis
Project Design and Network Analysis
Input Analysis
Financial Analysis
Social Cost-Benefit Analysis
Pre-Investment Analysis
PROJECT IDENTIFICATION: INPUT TRANSFORM OUTCOME (ITO) MODEL

PLANNING & SCOPING
O
N
P
PROCESS
OUTPUT
UTILIZATION
T
C
O
T
RESOURCES
IMPLEMENTATION
E
CUSTOMERS
OUTPUT: CONTROLLABLE BY PROJECT MANAGER

OUTCOME: MAY NOT BE CONTROLLABLE
GOAL ORIENTED
PROJECT PLANNING
PARTICIPATION ANALYSIS
GIVES AN OVERVIEW OF ALL PERSONS,

GROUPS, ORGANISATIONS AND
INSTITUTIONS CONNECTED WITH THE
PROJECT
INCLUDES INTERESTS & EXPECTATIONS

OF PERSONS AND GROUPS AFFECTED BY
THE PROJECT INTO THE PLANNING
PROCESS
PARTICIPATION ANALYSIS: EXAMPLE: AN ENGINEERING SSI

UNIT ESTABLISHMENT
PROMOTERS
THE
ENTREPRENEUR
CONSULTANTS
XYZ [PROJECT
REPORT]
ABC
[ENGINEERING
DRAWING]
SUPPLIERS
RAW MATERIALS
EQUIPMENT
CONSTRUCTION WORK
PERSONS
CIVIL
ELECTRICAL
UTILITIES
SUPPORT
AGENCIES
BENEFICIARIES
ADVERSELY
AFFECTED
REGULATORY
AUTHORITY
COMPETITOR
UNITS
PCB
AGENTS/ MIDDLE
MEN
DISTRICT
AUTHORITY
TAX AUTHORITY
CUSTOMERS
SKILLED/ UNSKILLED
PERSONNEL
SUPPLIERS
INDUSTRIES DEPTT.
BANK
IIE
PRESSURE
GROUPS
LOCAL POLITICIAN
PANCHAYAT
SOCIO-POLITICAL
ORGANIZATIONS
PROBLEM ANALYSIS
A SET OF TECHNIQUE TO
ANALYSE THE EXISTING SITUATION

SURROUNDING A GIVEN PROBLEM
CONDITION
IDENTIFY MAJOR PROBLEM

CONDITIONS IN THAT ENVIRONMENT
VISUALIZE CAUSE-EFFECT
RELATIONSHIP IN A PROBLEM TREE
PROBLEM
TREE
LENDERS LOSE
CONFIDENCE
DELAYED
REPAYMENTS
TIME OVERRUN
COST OVERRUN
WORK PROGRESS
BEHIND SCHEDULE
NONSYNCHRONIZATION
OF ACTIVITIES
LACK OF PROPER
COMMUNICATION
INEFFECTIVE
PLANNING
DELAYED
AVAILABILITY
HIGH
REJECT/REWORK
LONG DOCUMENT
PROCESSING TIME
POOR
WORKMANSHIP
LONG DELIVERY
TIME
INEFFICIENT
WORKMEN
INTERRUPTION
GENERAL STRIKE
LABOUR VACATIONS
DEARTH LOCALLY
OUTSIDERS NOT
READY TO COME
NON-COMMITTED
ENTREPRENEUR
ULTERIOR MOTIVE
DIFFERENT PRIORITY
ADVERSE FAMILY
PRESSURE
OBJECTIVE ANALYSIS
DESCRIBE THE FUTURE SITUATION

THAT WILL BE ACHIEVED BY SOLVING
THE PROBLEM
IDENTIFY POTENTIAL OBJECTIVES OF

THE PROJECT
OBJECTIVE
TREE
LENDERS
CONFIDENCE HIGH
TIMELY
REPAYMENTS
PROJECT COMPLETION
ON TIME
SYNCHRONIZED
ACTIVITIES
PROPER
COMMUNICATION
EFFECTIVE
PLANNING
TIMELY
AVAILABILITY
HIGH QUALITY
WORK
QUICK DOCUMENT
PROCESSING TIME
GOOD
WORKMANSHIP
SHORT DELIVERY
TIME
EFFICIENT
WORKMEN
NO INTERRUPTION
GENERAL STRIKE:
OBTAIN EXEMPTIONS
PREVENT
UNSCHEDULED
LABOUR VACATIONS
QUALIFY LOCALLY
ESTABLISH
EXTERNAL TIE UP
COMMITTED
ENTREPRENEUR
JUDGE MOTIVE AND

PRIORITY AT
SELECTION
OBTAIN FAMILY
SUPPORT
OBJECTIVE: ENSURE TIMELY AVAILABILITY OF MATERIAL
ACTIVITIES
IDENTIFY MATERIAL REQUIREMENTS AS PER ACTIVITY
SCHEDULING
ESTABLISH APPROVED SUPPLIER LIST
SET TIME LIMITS FOR INTERNAL PROCESSING OF
DOCUMENTS
SELECT MOST RELIABLE TRANSPORTERS
ESTABLISH LIAISON AGENCY AT MAJOR SUPPLY POINT
FOLLOW UP WITH VENDORS FOR TIMELY SUPPLY
ESTABLISH COOPERATION IN COMPETITION CLIMATE
INTRODUCE INCENTIVE/PENALTY SYSTEM
ANALYSIS OF ALTERNATIVES
IDENTIFY ALTERNATIVE SOLUTIONS

THE PROJECT MIGHT WISH TO
ACHIEVE
SELECT ONE OR MORE POTENTIAL

PROJECT STRATEGIES
DECIDE UPON ONE STRATEGY TO BE

ADOPTED
PROJECT PLANNING MATRIX
PROJECT PLANNING MATRIX [PPM] PROVIDES

SUMMARY:
WHY A PROJECT IS CARRIED OUT
WHAT THE PROJECT IS EXPECTED TO

ACHIEVE
HOW THE PROJECT IS GOING TO ACHIEVE

THE RESULTS
WHICH EXTERNAL FACTORS ARE CRUCIAL

FOR THE SUCCESS OF THE PROJECT
WHERE WE SHALL FIND THE DATA REQUIRED

TO ASSESS THE SUCCESS OF THE PROJECT
PROJECT PLANNING MATRIX

DESCRIPTIVE
SUMMARY
OVERALL GOAL
OR WIDER
OBJECTIVE
PROJECT
PURPOSE OR
IMMEDIATE
OBJECTIVE
OUTPUT
ACTIVITIES
INDICATORS &
BENCHMARKS
SOURCES OF
VERIFICATION
ASSUMPTIONS
PROJECT: ACTIVITY
SCHEDULING
TENNIS TOURNAMENT ACTIVITIES
ACTIVITY
CODE
DURATION [DAYS]
NEGOTIATE FOR LOCATION
CONTACT SEEDED PLAYERS
PLAN PROMOTION
APPOINT OFFICIALS
SEND INVITATIONS
10
SIGN PLAYER CONTRACTS
PURCHASE BALLS & TROPHIES
NEGOTIATE CATERING
PREPARE COURT
ARRIVAL OF PLAYERS
TENNIS TOURNAMENT ACTIVITIES
ACTIVITY
CODE
IMMEDIATE
PREDECESSOR
DURATION
[DAYS]
NEGOTIATE FOR LOCATION
CONTACT SEEDED PLAYERS
PLAN PROMOTION
EVALUATE SUPPLIERS
SEND INVITATIONS & CONFIRM

PARTICIPATION
SIGN PLAYER CONTRACTS
10
B, C
PURCHASE BALLS, NETS, PRIZES
NEGOTIATE LODGING & CATERING
E, F
PREPARE COURT
ARRIVAL OF PLAYERS
H, I
PERT AND CPM..
PERT:
PROGRAMME EVALUATION AND REVIEW
TECHNIQUE
CPM:
CRITICAL PATH METHOD
GENERIC STRUCTURE
OF PROJECT REPORT
GENERIC STRUCTURE OF DETAILED PROJECT REPORT..
CONTEXT/BACKGROUND
BRIEF DESCRIPTION OF SECTOR/SUB-SECTOR
NATIONAL PRIORITY
STRATEGY & POLICY FRAMEWORK
DESCRIPTION OF EXISTING SITUATION
PROBLEMS TO BE ADDRESSED
EVIDENCE REGARDING NATURE AND MAGNITUDE OF
PROBLEM
PROVIDE BASELINE DATA/SURVEY/REPORTS
PROJECT OBJECTIVES
DEVELOPMENT OBJECTIVES TO BE ACHIEVED
RANKED IN ORDER OF IMPORTANCE
SPELL OUT OUTPUT FOR EACH DEVELOPMENT
OBJECTIVE
GENERAL DESCRIPTION OF PROJECT
TARGET BENEFICIARIES
IDENTIFICATION OF BENEFICIARIES
STAKEHOLDER ANALYSIS
CONSULTATION WITH STAKEHOLDER AT THE TIME
OF PROJECT FORMULATION
OPTION REGARDING COST SHARING, BENEFICIARY
PARTICIPATION
IMPACT ON WEAKER SECTION
REMEDIAL ACTION FOR NEGATIVE IMPACT
PROJECT STRATEGY
ALTERNATIVE STRATEGY ANALYSIS TO ACHIEVE
OBJECTIVES
REASON FOR SELECTING PROPOSED STRATEGY
OPTION OF LEVERAGING GOVERNMENT FUNDS
THROUGH PUBLIC PRIVATE PARTNERSHIP
LEGAL FRAMEWORK
STRENGTH & WEAKNESS OF LEGAL FRAMEWORK
ENVIRONMENTAL IMPACT ASSESSMENT

DO AS REQUIRED AND IDENTIFY SIGNIFICANT
ASPECTS
IDENTIFY MEASURES TO MITIGATE ADVERSE
IMPACTS
ON-GOING INITIATIVES
DESCRIBE OTHER ONGOING INITIATIVE TO AVOID
DUPLICATION OF EFFORTS
TRY TO CREATE SYNERGY
TECHNOLOGY ISSUES
TECHNOLOGY CHOICES
EVALUATION OF OPTIONS
BASIS OF CHOICE OF TECHNOLOGY
MANAGEMENT ARRANGEMENTS
RESPONSIBILITIES OF DIFFERENT AGENCIES FOR
PROJECT MANAGEMENT
ORGANIZATION STRUCTURE
MEANS OF FINANCE AND PROJECT BUDGET
MEANS OF FINANCE
EVALUATION OF OPTIONS
PROJECT BUDGET
COST ESTIMATES
PHASING OF EXPENDITURE
OPTION OF COST SHARING AND COST RECOVERY
PRIVATE SECTOR PARTICIPATION
TIME FRAME
INDICATE ZERO DATE PROPOSED
PERT/CPM NETWORK
RISK ANALYSIS
IDENTIFY AND ASSESS PROJECT RISK
LEGAL, CONTRACTUAL
ENVIRONMENTAL
REVENUE RISKS
PROJECT MANAGEMENT RISKS
PROPOSAL TO MITIGATE RISKS
EVALUATION
FOCUS ON PAST EXPERIENCE
PROJECT EVALUATION ARRANGEMENT
CONCURRENT, MID-TERM, POST PROJECT
SUCCESS CRITERIA
ASSESSMENT OF ACHIEVEMENT OF DEVELOPMENT
OBJECTIVES
PROVIDE BASE LINE DATA FOR ASSESSMENT
FINANCIAL AND ECONOMIC ANALYSIS

CONDUCT IF FINANCIAL RETURNS ARE
QUANTIFIABLE
SUSTAINABILITY
ADDRESS ISSUES RELATED TO SUSTAINABILITY
STAKEHOLDER COMMITMENTS
OPERATION AND MAINTENANCE OF ASSETS
CREATED
Thank you!

AASC Overview of PM Jan 2011

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AASC Overview of PM Jan 2011

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AN OVERVIEW OF PROJECT MANAGEMENT

PROJECT: A JOB THAT HAS A BEGINNING AND AN

PROJECT COST C=f(P,T,S)

THE PROJECT PARAMETERS C,P,T,S ARE ALSO

AT ANY POINT OF TIME ONLY THREE OF

COST OF DELAYED PROJECTS (2004-05 TO 200910)

Reasons for time overrun

Lack of supporting infrastructure facilities,

Delay in finalization of detailed engineering plans,

Changes in scope/delay in finalization of the scope,

Industrial relations and law & order problems,

Delay and uncertainty in feedstock supply,

Pre-commissioning teething troubles,

Technology problems, and

Reasons for cost overrun

Many of the ills could be eliminated through effective

Project Design and Network Analysis

Social Cost-Benefit Analysis

PROJECT IDENTIFICATION: INPUT TRANSFORM OUTCOME (ITO) MODEL

OUTPUT: CONTROLLABLE BY PROJECT MANAGER

GIVES AN OVERVIEW OF ALL PERSONS,

INCLUDES INTERESTS & EXPECTATIONS

PARTICIPATION ANALYSIS: EXAMPLE: AN ENGINEERING SSI

ANALYSE THE EXISTING SITUATION

IDENTIFY MAJOR PROBLEM

DESCRIBE THE FUTURE SITUATION

IDENTIFY POTENTIAL OBJECTIVES OF

JUDGE MOTIVE AND

OBJECTIVE: ENSURE TIMELY AVAILABILITY OF MATERIAL

IDENTIFY ALTERNATIVE SOLUTIONS

SELECT ONE OR MORE POTENTIAL

DECIDE UPON ONE STRATEGY TO BE

PROJECT PLANNING MATRIX

PROJECT PLANNING MATRIX [PPM] PROVIDES

WHY A PROJECT IS CARRIED OUT

WHAT THE PROJECT IS EXPECTED TO

HOW THE PROJECT IS GOING TO ACHIEVE

WHICH EXTERNAL FACTORS ARE CRUCIAL

WHERE WE SHALL FIND THE DATA REQUIRED

PROJECT PLANNING MATRIX

TENNIS TOURNAMENT ACTIVITIES

NEGOTIATE FOR LOCATION

CONTACT SEEDED PLAYERS

SIGN PLAYER CONTRACTS

PURCHASE BALLS & TROPHIES

TENNIS TOURNAMENT ACTIVITIES

NEGOTIATE FOR LOCATION

CONTACT SEEDED PLAYERS

SEND INVITATIONS & CONFIRM

PURCHASE BALLS, NETS, PRIZES

NEGOTIATE LODGING & CATERING

PERT AND CPM..

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

ENVIRONMENTAL IMPACT ASSESSMENT

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..

GENERIC STRUCTURE OF DETAILED PROJECT REPORT..