Realization of these objectives requires systematic planning and careful implementation. To this effect, the application of knowledge, skill, tools, and techniques in the project environmentrefers to project management. Project management in recent years has proliferated, reaching new heights of sophistication. It has emerged as a distinct area of management practices that meet the challenges of the new economic environment, globalization process, rapid technological advancement, and quality concerns of the stakeholders.
Project Definition
Project, in general, refers to a new endeavor with a specific objective and varies so widely that it is very difficult to precisely define it. Some of the commonly quoted definitions are as follows project is a temporary endeavor undertaken to create a unique product or service or result (AMERICAN National Standard ANSI/PMI99-001-2004).
Project is a unique process, consist of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including the constraints of time cost, and resource. (ISO10006)
Examples of the project include Developing a watershed, Creating an irrigation facility Developing a new variety of a crop, Developing a new breed of an animal, Developing an agro-processing center, Construction of farm building, the sting of a concentrated feed plant, etc. It may be noted that each of these projects differs in composition, type, scope, size, and time.
Project Characteristics
Despite the above diversities, projects share the following common characteristics.
- Unique in nature.
- Have definite objectives (goals) to achieve.
- Requires set of resources.
- Have a specific time frame for completion with a definite start and finish.
- Involves risk and uncertainty.
- Requires cross-functional teams and an interdisciplinary approach.
Project Performance Dimensions
Three major dimensions that define project performance are scope, time, and resource. These parameters are interrelated and interactive. The relationship generally represented as an equilateral triangle. The relationship is shown in figure 1.
It is evident that any change in any one of the dimensions would affect the other. For example, if the scope is enlarged, the project would require more time for completion and the cost would also go up. If time is reduced the scope and cost would also be required to be reduced. Similarly, any change in the cost would be reflected in scope and time. Successful completion of the project would require the accomplishment of specified goals within the scheduled time and budget. In recent years a fourth dimension, stakeholder satisfaction, is added to the project. However, the other school of management argues that this dimension is an inherent part of the scope of the project that defines the specifications to which the project is required to be implemented. Thus the performance of a project is measured by the degree to which these three parameters (scope, time, and cost) are achieved.
Mathematically
Performance = f(Scope, Cost, Time)
In management literature, this equilateral triangle is also referred to as the “Quality Triangle” of the project.
Project Life Cycle
Every project, from conception to completion, passes through various phases of a life cycle synonym to the life cycle of living beings. There is no universal consensus on the number of phases in a project cycle. An understanding of the life cycle is important to the successful completion of the project as it facilitates understanding the logical sequence of events in the continuum of progress from start to finish. A typical project consists of four phases- Conceptualization, Planning, Execution, and Termination. Each phase is marked bone or more deliverables such as Concept note, Feasibility report, Implementation Plan, HRD plan, Resource allocation plan, Evaluation report etc.
Conceptualization Phase
The conception phase, starting with the seed of an idea, it covers identification product/service, Pre-feasibility, Feasibility studies, and Appraisal and Approval. The project is conceptualized with initial considerations of all possible alternatives for achieving the objectives. As the idea becomes established a proposal is developed setting out the rationale method, estimated costs, benefits, and other details for appraisal of the stakeholders reaching a broad consensus on the proposal the feasibility dimensions are analyzed in detail.
Planning Phase
In this phase, the project structure is planned based on project appraisal and approvals Detailed plans for activity, finance, and resources are developed and integrated to the parameters. In the process major tasks that need to be performed in this phase are
• Identification of activities and their sequencing
• Time frame for execution
• Estimation and budgeting
• Staffing
A Detailed Project Report (DPR) specifying various aspects of the project is finalized to facilitate execution in this phase.
Execution Phase
This phase of the project witnesses the concentrated activity where the plans into operation. Each activity is monitored, controlled, and coordinated to achieve objectives. Important activities in this phase are
• Communicating with stakeholders
• Reviewing progress
• Monitoring cost and time
• Controlling quality
• Managing changes
Termination Phase
This phase marks the completion of the project wherein the agreed deliverables are installed and the project is put into operation with arrangements for follow-up and evaluation.
Life Cycle path
The life cycle of a project from start to completion follows either a “S” shaped path or a “J “ shaped path (Figure 2 and 3). In “S” shape path the progress is slow at the starting and terminal phase and is fast in the implementation phase. For example, implementation of watershed project. In the beginning, detailed sectoral planning and coordination among various implementing agencies etc. makes progress slow and similarly towards termination, creating institutional arrangements for transfer and maintenance of assets to the stakeholders progresses slowly.
In the “J” type cycle path the progress, in the beginning, is slow and as time moves on the progress of the project improves at a fast rate. For example, in developing an energy plantation. In this the land preparation progresses slowly and as soon as the land and seedling are transplantation is undertaken. This is shown in figure 3.
Project Classification
There is no standard classification of the projects. However considering project goals, these can be classified into two broad groups, industrial and developmental. Each of these groups can be further classified considering nature of work (repetitive, non-repetitive), completion time (long term, shot-term etc), cost (large, small, etc.), level of risk (high, low, no-risk), mode of operation ( build, build-operate-transfer etc).
Industrial projects also referred as commercial projects, are undertaken to provide goods or services for meeting the growing needs of the customers and providing attractive returns to the investors/stakeholders. Following the background, these projects are further grouped into two categories i.e., demand-based and resource/supply base. The demand-based projects are designed to satisfy the customers’ felt as well the latent needs such as complex fertilizers, agro-processing infrastructure etc. The resource/ supply based projects are those which take advantage of the available resources like land, water, agricultural produce, raw material, minerals, and even human resource. Projects triggered by successful R&D are also considered as supply-based. Examples of resource-based projects include food product units, metallurgical industries, oil refineries etc. Examples of projects based on human resource (skilled) availability include projects in the IT sector, Clinical Research projects in bio services and others.
Development projects are undertaken to facilitate the promotion and acceleration of overall economic development. These projects act as catalysts for economic development providing a cascading effect. Development projects cover sectors like irrigation, agriculture, infrastructure health and education.
The essential differences between Industrial projects and Developmental projects mesmerized in the following table 1.
PROJECT MANAGEMENT
Project management is a distinct area of management that helps in handling projects. It has three key features to distinguish it from other forms of management and they include a project manager, the project team and the project management system. The project management system comprises organization structure, information processing and decision-making and the procedures that facilitate the integration of horizontal and vertical elements of the project organization. The project management system focuses on integrated planning and control.
Benefits of Project Management Approach
The rationale for following the project management approach is as follows.
• Project management approach will help in handling complex, costly and risky assignments by providing an interdisciplinary approach in handling the assignments. Example: R&D organizations.
• Project management approaches help in handling assignments in a specified time frame with definite start and completion points. Example handling customer orders by Industries involved in the production of capital goods.
• Project management approaches provide task orientation to personnel in an Organization in handling assignments. Example: Organizations in IT sector handling software development assignments for clients.
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PROJECT MANAGEMENT