entrepreneurship entrepreneur

Concept of Project & Project Management

Under Guidance of Submitted by: Dr.Alok Kumar Rai Mishra

Marketing

Ashutosh Avinash Tiwari Anand Prakash MBA – FMS-BHU

Index Introduction Characteristic features of Project Project management and general management: A comparison Project Life Cycle Phases of Project life cycle 

Real Time Case

Conclusion References

Introduction “Trying to manage a project without project management is like trying to play a football game without a game plan.” - K .Tate

T

here is only one consistent feature of modern

business and that is change. Organisations are constantly required to change what they do & how they do it. The most successful organisations are those that have become best at changing. World class performance is seen to be possible through the development of excellent management, one significant part of which is the management of projects.

No single industry or function has a monopoly on project management expertise; an average manager now spends upwards of 50% of their time on projects or project-related issues. Their line responsibilities (finance, marketing, design) involve them in a variety of day-to-day activities plus long term projects. The need for innovation, together with the

ability to establish and maintain high rates of change, is now what is required from managers.

What is a Project? A project in business and science is a collaborative enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim. A project is “a unique endeavour to produce a set of deliverables within clearly specified time, cost and quality constraints”. -Jason Westland, CEO MPMM

A project can be defined as a “non repetitive activity”.

Characteristic Features of Project Unique in Nature

Defined Timescale

Approved Budget

Limited Resources

Element of Risk

Beneficial change

-Project Management Guidebook

A typology of projects:

Strategic

Systems

2-5 years. High degree of change to customers. Highly complex.

1-2 years. Medium degree of change to customers. Medium complex.

Up to 1 year. Low degree of change to customers.

Operational

Project Management vs. General Management nes of authority “fuzzy”.Authority defined by management structu

ver changing set of tasks.Consistent set of tasks. esponsibility for cross functional Responsibility activities. limited to their own function nly in project life duration. Permanent work scenario. ain task is resolution of conflict. Main task is optimization. ontains intrinsic uncertainties. Limited set of variables.

“Nobody knows how Honda is organized, except that it uses lots of project teams and is quite flexible. “

-Kenichi Ommae Project management comprises: • A set of skills. • A suite of tools. • A series of processes.

Project Life Cycle

The life cycle is the only thing that uniquely distinguishes projects from non-projects.” - Patel & Morris (The Role of the Project Life Cycle (Life Span) in ”

Project Management :A literature review by R. Max Wideman)

The sequence of phases through which the project will evolve is a project life cycle.

A

project life cycle is basically defined by it’s phases,

according to which a project swims through & finally reaches to handover stage.

Phases of Project Life Cycle

T

he phases are extremely useful in planning a

project since they provide a framework for budgeting, manpower and resource allocation, and for scheduling project milestones and project reviews. The method of division of a project into phases may differ somewhat from industry to industry, and from product to product. There are mainly 4 phases:♦ ♦ ♦ ♦

Project Project Project Project

Initiation Planning Execution Closure

Project Initiation: In this phase a business problem (or opportunity) is identified and a business case which provides various solution options is defined. A feasibility study is then conducted to investigate the likelihood of each solution

option addressing the business problem and a final recommended solution is put forward. Once the recommended solution is approved, a project is initiated to deliver the approved solution. Project Planning: Plans are only good intentions unless they immediately degenerate into hard work. -Peter Drucker Once the scope of the project has been defined, the project enters the detailed planning phase. This involves the creation of a: • Project Plan (outlining the activities, tasks, dependencies and timeframes) . • Resource Plan (listing the labour, equipment and materials required) . • Financial Plan (identifying the labour, equipment and materials costs) . • Quality Plan (providing quality targets, assurance and control measures) . • Risk Plan (highlighting potential risks and actions taken to mitigate them) . • Acceptance Plan (listing the criteria to be met to gain customer acceptance) . • Communications Plan (listing the information needed to inform stakeholders) . • Procurement Plan (identifying products to be sourced from external suppliers). Project Execution: This phase involves the execution of each activity and task listed in the Project Plan. While the activities and tasks are being executed, a series of management processes are undertaken to monitor and control the deliverables being output by the project. This includes

the identification of changes, risks and issues, the review of deliverable quality and the measurement of each deliverable being produced against the acceptance criteria. Once all of the deliverables have been produced and the customer has accepted the final solution, the project is ready for closure. Project Closure: It involves releasing the final deliverables to the customer, handing over project documentation, terminating supplier contracts, releasing project resources and communicating the closure of the project to all stakeholders. The last remaining step is to undertake a Post Implementation Review to quantify the overall success of the project.

Various Project Life Cycle examples are given below,

-Project management institute

-Project management institute

Real Time Case Bangalore Metro Rail Project Summary of project: Bangalore Metro Rail Project comes under the legal body of Bangalore Mass Rapid Transit Ltd (BMRTL). Chairman: Anil Bajijal, Union Urban Development Secretary Managing Director: Mr. V. Madhu Executive Director: Mr. M.S. Nagendra (Administration), Mr. Y. Rajendra (Finance) Board of Directors: 5 from Central Government, 5 from State Government. Participants: State and Central Governments.

Project Initiation The project was started in August 2005 and is still going on, which will continue till December 2011 (for phase 1). Project Planning Routes: East-West (18.1 km) & North-South (14.9 km) Corridors Total length of project: 42.3kms Type: Elevated and Underground Number of stations: 41 Number Of Commuters Per Day: 820,000 Proposed Fare: 1.33-1.66 times the bus fares. Annual escalation fares at 4% Cost/Km Underground: Rs 250 crore Cost/Km Elevated: Rs 80 crore Total cost: Rs 8100crore

• • •

Fund Formula: State: Rs 2287 cr Centre/Federal: Rs 1831 cr Financial Institutions: Rs 3982 cr

Interest rate: Approx 8.75% for a 15 year term loan, line of credit form insurance companies and provident fund agencies comes for 25 years at 9% interest. There are several plans in pipeline that will take effect once this project is completed i;e Tax For Private Vehicles

The Metro Rail may substantially ease the traffic on some roads. BMRTL has proposed a number of measures, including imposing entry tax on private vehicles and restricting of three-wheelers on certain roads. Other items include, • Entry tax on private vehicles on certain roads • Parking fee substantially hiked on certain roads • No three-wheelers permitted on certain roads • City bus corridors shall not run paralleled to Metro corridors • Intercity buses to terminate at city outskirts • Public parking will be provided at major Metro stations • Feeder bus services will be provided at Metro stations • Common ticketing will be introduced for Metro and feeder buses

Project Execution

Bangalore Metro Route map

Ground-level preparations for the ambitious metro rail project in

Bangalore are being made

with the State Government freezing development activity in 247 premises and buildings it had tentatively identified for this purpose. The government has asked the Bangalore City Corporation, BDA and other civic bodies to seek a noobjection certificate (NoC) from the BMRTL before it approves any construction activity. Bangalore Metro will have a standard gauge and will take cover under the 100-year old Mysore Tramways Act, which will require some amendments by the state government to suit the present day needs. With this, BMRTL can avoid going to the railway ministry for all sanctions. Some of the space that has been claimed by BMRTL for the

project are as follows:

1.

4,126 sq mt of Central Bus Sand in Majestic.

2.

On MG Road the project will use 14 sq mt of Nalli Silks and 25 sq mt of Land Mark building. 210 sq mt of IOC petrol bunk near Trinity Circle. Trinity Complex, Megdooth Motors, Police Quarters on Ulsoor Road.

3. 4.

5.

Part of Govt Kannada Primary School at Srirampuram, Govt Urdu School at Chickpet.

6.

74 sq mt of Bangalore Hospital on RV Road. 4,320 sq mt of Mysore Mills behind Maharaja Mills. 119,000 sq mt of private industry land on Tumkur Road.

7. 8.

Comparative analysis of Metro rail project with Monorail, Monorail is very expensive and the return on investment [ROI] is very low. Mono Rail system costs Rs 120 crore per km, against Metro Rail’s Rs 75 crore per km. Metro Rail had a capacity to carry 45,000-50,000 passengers per hour, while Mono Rail can carry only 10,000-12,000 passengers per hour. Project Closure Phase 1 is expected to go live by December 2011. -www.bmrc.co.in

Conclusion Public sector BEML has been mandated for the supply of 150 metro coaches valued at Rs 1,672 crore with a provision for supplying 63 more coaches. Supplies of the first set will begin in October 2010. The companies involved in handling various tasks of the project are:  



Hyderabad-based Navayuga Engineering Ltd. Nagarjuna Construction Company Ltd. Afcons Infrastructure, Gammon India, Simplex Infrastructures and Soma Enterprise. Punj Lloyd Ltd.

The second phase of the project might begin in 2012.

References: Project Management Institute, USA via internet.

Practical tools, techniques & MS project scheduling -Dick Billows Best project management practices -- Dick Billows The AMA handbook of Project Management. Project Management – Harvey Maylor www.bing.com