Project Management: Planning, Execution, and Control PDF

PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 01: Project Management - Basic Concepts Lecture 01: Basic Con...

PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 01: Project Management - Basic Concepts Lecture 01: Basic Concepts and Introduction Concepts Covered: Importance of Project Management Characteristics of Project, Program and Portfolio Project Life Cycle Role of Project Manager vis-à-vis Functional Manager EL Traditional and Agile Project Management PT Current Drivers of Project Management N Project Management: A Socio-Technical Approach Basic Concepts of Project Management Project Approach Growth of Project Management EL What is a Project? PT – What is not a project? N Major Characteristics of a Project (objective, lifespan, x-functional participation, unique, specific time, cost, performance) Basic Concepts of Project Management What is a Program? Differences between Project, Program and Portfolio EL PT What’s the difference between Project and Product Life Cycles? N  Project Life Cycle EL PT Source: Project Management, Gray and Larson N  Project Life Cycle EL PT Phase III: Execution N Phase I: Feasibility / Define Phase II: Design / Plan Phase IV: Termination/Closure Basic Concepts of Project Management Role of a Project Manager vis-à-vis Functional Manager Temporary, non-repetitive, acts independently Marshals resources Customer interface EL Direction, coordination, and integration PT Responsible for performance and success of the project N …. induce.… people at.… time to address.… issues and make.… decisions Conclusion: Project approach has become the way of doing business in the present day business world. This introductory module discusses the evolution, growth and importance of modern day project management. It further explains the characteristics of project, program and portfolio; project life EL cycle with typical phases like define, plan, execute, and close; and the role of PT Project Manager for successful completion of project. N References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., PT Wiley, PMBOK Guidelines Book N 4. Project Management for Business and Technology – Principles and Practice, John M. Nicholas, Prentice-Hall of India Ltd. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 01: Project Management - Basic Concepts Lecture 02: Drivers of Project Management Concepts Covered: Importance of Project Management Characteristics of Project, Program and Portfolio Project Life Cycle EL Role of Project Manager vis-à-vis Functional Manager PT Traditional and Agile Project Management N Current Drivers of Project Management Project Management: A Socio-Technical Approach Traditional and Agile Project Management What’s the difference between Traditional and Agile Project Management? EL PT N Current Drivers of Project Management Factors leading to the increased use of project management: Compression of PLC Knowledge explosion Triple bottom line EL Corporate downsizing PT N Increased customer focus Small projects represent big problems Technical and Socio-cultural dimensions of Project Management Process EL PT N Source: Project Management, Gray and Larson Stakeholders’ Control over Project Parameters Relationship between Project Parameters Project Scope and Quality EL PT N Time Cost and resource level  ? Resource level and work schedule  ? Scope, quality and delivery date  ? Factors Constraining Project Success EL PT N Conclusion: Further to the previous lecture, this class discusses the difference between traditional and agile project management. Agile project management employs an incremental, iterative process refereed to as “rolling wave”; instead of trying to plan for everything up front, the scope of the project evolves. Agile methods are EL used upfront in defining phase to establish specifications and requirements, the traditional methods are used to plan, execute and close the project. PT N It also elucidates the current drivers of project management, socio-technical approach of project management, stakeholders’ control over project parameters, and factors constraining project success. References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Project Management: A Managerial Approach, Meredith, J.R. and Mantel, S.J., PT Wiley, PMBOK Guidelines Book N 4. Project Management for Business and Technology – Principles and Practice, John M. Nicholas, Prentice-Hall of India Ltd. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 02: Organization Strategy and Project Selection Lecture 03: Linkages between Organization Strategy and Projects Concepts Covered:  Linkages between Strategy and Projects  Integrated Management of Project  Project Portfolio Management System – need for and major functions  Project Governance - An Integrative Approach  Design of project portfolio system EL Classifications of projects PT N Financial criteria of project selection (Financial Metrics – NPV, IRR, Payback period) Non-financial criteria of project selection Multi-criteria selection models Managing Portfolio system Organization Strategy and Project Selection Linkages between strategy and project? ‒ What is strategy and SM process? ‒ What is a Project and its characteristics? EL PT Necessity of project selection? N  Strategic Management Process and Project Management Linkage Review and define the organizational mission Set long term goals and objectives EL PT Analyze and formulate N strategies to reach objectives Implement strategies through projects Source: Project Management, Gray and Larson Integrated Management of Project EL PT N Source: Project Management, Gray and Larson Strategic Alignment Problems arising from uncoordinated PMS ‒ Projects that do not support the organization’s overall strategic plan and goals ‒ Independent managerial decisions that create internal imbalances, conflicts and confusion EL PT ‒ Failure to prioritize projects resulting in wastage of resources on non-value-added activities N Integrated Management of Project Major functions of Portfolio Management Oversee project selection Monitor resource usages Encourage Best practices EL Balance projects to optimize risk PT ↑communication among stakeholders N Prevail org. perspective over silo thinking Continuous ↑of management of projects Need for a Strong Project Portfolio Management System The Implementation Gap Organization Politics Resource Conflicts and Multitasking EL PT N Conclusion: Projects are the modus operandi to achieve long term strategy of an organization. Therefore, selection of project is an important issue, which needs to be aligned with the organization objectives. This module discusses the linkages between strategy and projects, and integrated management of project. It further explains the need for and major functions of project portfolio management system. It further elaborates the project governance – and its need for an integrative approach, design EL of project portfolio system, classifications of projects, reduction of portfolio risk, developing PT project selection criteria, and promoting transparency for selection of project. N This module also elucidates economic (financial) criteria of project selection viz. payback period, net present value (NPV), and internal rate of return (IRR). It also illustrates non-financial criteria of project selection which is necessary for strategic projects. The module further discusses multi-criteria selection models such as check list model, and multi-weighted scoring model to design and manage a robust portfolio system. References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Projects Planning, Analysis, Selection, Implementation, and Review, Prasanna PT Chandra, McGraw Hill Education, 8th edition. N 4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd., 2019, 1st edition. N PT EL PROJECT MANAGEMENT: PLANNING, EXECUTION, EVALUATION AND CONTROL Prof. Sanjib Chowdhury EL Vinod Gupta School of Management PT IIT Kharagpur N Module 02: Organization Strategy and Project Selection Lecture 04: Project Governance and Design of Project Portfolio System Concepts Covered:  Linkages between Strategy and Projects  Integrated Management of Project  Project Portfolio Management System – need for and major functions  Project Governance - An Integrative Approach  Design of project portfolio system EL Classifications of projects PT N Financial criteria of project selection (Financial Metrics – NPV, IRR, Payback period) Non-financial criteria of project selection Multi-criteria selection models Managing Portfolio system Project Governance - An Integrative Approach Creation of PMO Monitor and control PM activities Monitor resource usage Assess Risk of projects Suggest ↑ measures EL Apprise Sr. mgmt PT Linkage between Sr. mgmt & PM N What is EPMO and its role? Portfolio Management System Design of a project portfolio system: Classification of a project Selection criteria Sources of proposals EL Evaluating proposals PT Managing the project portfolio N Portfolio Management System Design of a project portfolio system: Classification of a project Project Portfolio by Type EL PT N  Program prioritization methodology: 2-step approach Best practices Illustrative Step 1 Step 2 Investment classification by objective Objective-specific prioritization methodology Prioritization based on quantitative - metric Retrofitting – economics (profitability index– PI) Prioritization based on quantitative metrics1 Strategic – economics EL – risk Funding – contribution to strategic targets Priority PT resource Prioritization based on urgency N – Urgency/Ability to postpone Operational evaluation based on implication of delay (e.g. strategic targets, NPV) Prioritization based on urgency – Urgency/Ability to postpone Compliance evaluation based on implication of + delay (e.g. strategic targets, NPV) Ongoing programs are considered with higher priority than new programs regardless of objective Portfolio Management System Selection Criteria Financial criteria Non-financial criteria Multi-criteria selection models EL Checklist model PT Multi-weighted scoring model N Portfolio Management System Financial Models The Payback Model – pros and cons Net Present Value (NPV) model Internal rate of return (IRR) EL (Why discount the future cash flows and its underlying principle) PT N N PT EL  Activity/Problem Solving 1. Alpha Co. is evaluating two similar projects whose initial investment and expected future cash flow are shown in the following table: Project X Project Y Year Cash flow ($) Cash flow ($) Y0 (800,000) (850,000) Y1 100,000 200,000 Y2 200,000 300,000 EL Y3 300,000 400,000 PT Y4 500,000 500,000 N Y5 300,000 - The company expects to earn at least 14 percent on its investment. The Financial Advisor of the company has informed that inflation would remain stable at 2 percent for the entire period. Based on financial consideration, determine the Payback period, NPV, and Profitability index of both projects, which project the company would fund? Conclusion: In continuation with the previous lecture, this class discusses the project governance – and its need for an integrative approach; design of project portfolio system, classifications of projects, reduction of portfolio risk; developing project selection criteria, and promoting transparency for selection of project. EL This module also elucidates financial criteria of project selection viz. payback period, net PT present value (NPV), Profitability index, and internal rate of return (IRR). N References: 1. Project Management – The Managerial Process, Gray, C.F., Larson, E.W., and Joshi, R., McGraw Hill Education, 8th edition. 2. Project Management – Achieving Competitive Advantage, Jeffrey K. Pinto, Pearson Publishing Ltd., 5th edition. EL 3. Projects Planning, Analysis, Selection, Implementation, and Review, Prasanna PT Chandra, McGraw Hill Education, 8th edition. N 4. Project Management, Pradeep Pai, Pearson India Education Services Pvt Ltd., 2019, 1st edition. N PT EL