Lecture 27 Projects (03-11-20).pptx
- 1. Course : BBA Semester: Vth Subject Code: BBA-N502 Subject: Entrepreneurship & Small Business Management Unit - 3 School of Management Sciences (SMS), Varanasi
- 2. Topic: Basic Concepts, Classification & Characteristics of Projects Veeresh Tripathi Assistant Professor, Department of Management, School of Management Sciences (SMS), Varanasi Affiliated to Mahatma Gandhi Kashi Vidyapeeth, Varanasi
- 3. Project • Any piece of work that is undertaken or attempted. X (Incorrect) • An organized set of activities more narrowly directed towards a common purpose or goal. √ (Correct) • The concept of project means different things to different users, or reflects different frames of reference. • In Finance and budgeting terms it is an investment with a specified economic return. • In economic analysis, a project is a potential income generating activity. • In management terms the project notion often connotes a particular organizational unit.
- 4. Project : Definition A project is a temporary endeavor undertaken to create a unique product or service. It implies • a specific timeframe • a budget • unique specifications • working across organizational boundaries A project is a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.
- 5. Project Management • Project management is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria. • A project is a temporary endeavor designed to produce a unique product, service or result with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables) undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. • Project Management was first used to manage the US space program. • Its practice has now been expanded rapidly through the government, the military and the corporate world.
- 6. Why Project Management? • Better control of financial, physical, and human resources. • Improved customer relations. • Shorter development times. • Lower costs. • Higher quality and increased reliability. • Higher profit margins. • Improved productivity. • Better internal coordination. • Higher worker morale (less stress).
- 7. Types/classification of Projects • Project classification based on product Vs. nature of work. • Project classification based on application areas.
- 8. Con… • Project classification based on product Vs. nature of work. • Tangible product (e.g. new highway) • Intangible product (e.g. software) • Craft work (e.g. assembly / repair of automobiles) • Intellect work (research, innovation, invention, etc.)
- 9. Con… • Project classification based on application areas. • Construction projects. • Research projects. • Reengineering projects. • Procurement projects. • Business implementation projects.
- 10. Why Projects Fail • Failure to align project with organizational objectives. • Poor scope. • Unrealistic expectations. • Lack of executive sponsorship. • Lack of project management. • Inability to move beyond individual and personality conflicts. • Politics.
- 11. Why Projects Succeed! • Project Sponsorship at executive level. • Good project charter. • Strong project management. • The right mix of team players. • Good decision making structure. • Good communication. • Team members are working toward common goals.
- 12. Core Project Management Tools •Project Charter •Work Breakdown Structure (WBS) •Project Schedule •Project Budget
- 13. Project Charter • What must be done? • What are the required resources? • What are the constraints? • What are the short and long term implications? • Why do it? • When must it be done? • Where must it be done? • Who does what? • Who is behind the project? • Who is funding the project? • Who is performing the work of the project?
- 14. Project Charter • In project management, a project charter, project definition, or project statement is a statement of the scope, objectives, and participants in a project. • It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager. • It serves as a reference of authority for the future of the project. • The terms of reference are usually part of the project charter.
- 15. Project Charter • Who • What • Where • Why • When
- 16. • Define scope of project. • Identify stakeholders, decision- makers, and escalation procedures. • Develop detailed task list (work breakdown structures). • Estimate time requirements. • Develop initial project management flow chart. • Identify required resources and budget. • Evaluate project requirements. • Identify and evaluate risks. • Prepare contingency plan. • Identify interdependencies. • Identify and track critical milestones. • Participate in project phase review. • Secure needed resources. • Manage the change control process. • Report project status. PM: Job Functions/Charter
- 17. Assumptions • Opportunity to put it all out there – Challenges facing the project – Implications – Organizational history – Political implications – Impact to traditional power – Requirements of decision-making • Write down what cannot be said – Keep it objective
- 18. Work Breakdown Structure System Hardware Replacement RFP Development Assess Needs Analyze Needs Write RFP Finalize with Purchasing Vendor Selection Research Vendors Research Sites Select Vendors to mail RFP Review Proposals Rank Proposals Make Recommendations Staff Training Identify training Plan Schedule Training Train Sysadmins Hardware Implementation Schedule Installation Prepare Site Arrange Vendor Support Configure System Install System
- 19. WBS • A work breakdown structure (WBS), in project management and systems engineering, is a deliverable-oriented decomposition of a project into smaller components. • A work breakdown structure is a key project deliverable that organizes the team's work into manageable sections.
- 20. Characteristics of a Project • Specific Objective: A project has a fixed set of objectives • Specified Time: Should have a time bound programmed to start, execute, commission and deliver the project. • Allotted Budget: Should have cost bound activities in terms of money spent or resources consumed. • Unique & Connected Activities : Should conform to the technical specification & logical sequence set at the time of deciding the project .One project always varies (non-repetitive activities under similar conditions)from previous ones. • Life Span: A project cannot continue endlessly, must come to an end.
- 21. The steps in managing a typical project
- 22. Project Success Factors* 1. Executive support 2. User involvement 3. Experienced project manager 4. Clear business objectives 5. Minimized scope 6. Standard software infrastructure 7. Firm basic requirements 8. Formal methodology 9. Reliable estimates 10. Other criteria, such as small milestones, proper planning, competent staff, and ownership
- 23. 5 Basic Phases/Stages of PM/PLC* 1. Project initiation(& conception) An idea for a project will be carefully examined to determine whether or not it benefits the organization. During this phase, a decision making team will identify if the project can realistically be completed. 2. Project planning ( & definition) A project plan, project charter and/or project scope may be put in writing, outlining the work to be performed. During this phase, a team should prioritize the project, calculate a budget and schedule, and determine what resources are needed. 3. Project execution (& launch) Resources' tasks are distributed and teams are informed of responsibilities. This is a good time to bring up important project related information.
- 24. Con.. 4. Project control & Validation (performance) Project managers will compare project status and progress to the actual plan, as resources perform the scheduled work. During this phase, project managers may need to adjust schedules or do what is necessary to keep the project on track. 5. Project closure (& evaluation) After project tasks are completed and the client has approved the outcome, an evaluation is necessary to highlight project success and/or learn from project history. *Projects and project management processes vary from industry to industry;
- 26. Project Life Cycle 5. Requirements
- 28. Project Management Tools and Techniques • Project management tools and techniques assist project managers and their teams in various aspects of project management. • Specific tools and techniques include: –Project charters, scope statements, and WBS (scope). –Gantt charts, network diagrams, critical path analyses, critical chain scheduling (time). –Cost estimates and earned value management (cost). –Microsoft Project (s/w) ERP Packages.
- 29. Questions: Short Answer Questions: What do you understand by projects. Long Answer Questions: Discuss the characteristic of a Project. Also highlight the phases in a project life cycle.
- 30. References: 1. Vasant Desai, “Enterpreneurship Development and Business Communication”, Himalaya Publishing House Pvt. Ltd. (2008). 2. Shukla, M.B., “Entrepreneurship & Small Business”, Kitab Mahal; Present Edition edition (2007). 3. Chandra, Prasanna., “Projects”, McGraw Hill Education (24 February 2014) 4. Natarajan, Gordon, “Entrepreneurship Development”, 4th edition, Himalaya Publishing House Pvt. Ltd. 5. Gupta, S. L., Arun Mittal “Entrepreneurship Development”, International Book House, (2012).
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- 32. Thank You