PROJECT MANAGEMENT

A PROJECT may be defined as a series of related jobs usually directed toward some
major output and requiring a significant period of time. Project management can be
defined as planning, directing, controlling resources (people, equipment, material) to meet
the technical, cost, and time constraints of the project. A contractor building a house, dam
or road can be considered as projects. A firm planning to produce a new product will be
doing the same under a project.

Operation managers must plan,organize and control a variety of manufacturing and

service operations. The objective of a project team is to accomplish its assigned mission
and disband. The project team must ordinarily work in tight time schedule, adhere to strict
budgets, report to top management personnel of the organization and be temporarily
removed from their regular jobs.

STRUCTURING PROJECTS
Any one of the following three organizational structures can be selected and senior
management will select the appropriate structure and tie up with the parent firm. They are
1. PURE PROJECT
2. FUNCTIONAL PROJECT
3. MATRIX PROJECT

PURE PROJECT-
A pure project will be a self contained team work. The team works full time on the project.

ADVANTAGES
• The project manager has the full authority over the project
• All team members report to one boss
• Decisions made quickly as lines of communication are short
• Team pride, motivation, and commitment are high

DISADVANTAGES
• Duplication of resources. Equipment and people are not shared across the
projects.
• Team members are often removed from headquarters and therefore organizational
goals and policies may be ignored
• Because team members have no functional area home, they worry about life after
project and project termination is delayed.

FUNCTIONAL PROJECT

In this functional project system, the project is housed within the functional division
ADVANTAGES
• A team member can work on several projects
• Technical expertise is maintained within the functional area even if individuals
leave the organization.
• Functional specialists can advance vertically

DISADVANTAGES
• Motivation of team members is often weak
• Needs of the client are secondary and are responded to slowly

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RESEARCH &
ENGINEERING MANUFACTURING
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MATRIX PROJECT

THE MATRIX PROJECT

attempts to blend properties of functional and pure project structures. Each project utilizes
people from different functional areas. The project manager decides what tasks and when
they will be performed, but the functional managers control which people and
technologies are used. If the matrix form is chosen, different projects (rows of the matrix)
borrow resources from functional areas (columns). Senior management must then decide
whether a weak, balanced, or strong form of a matrix to be used. This establishes
whether project managers have little, equal, or more authority than the functional
managers with whom they negotiate for resources.

A DVANTAGES
• Communication between functional divisions is enhanced.
• A project manager is held responsible for successful completion of the project
• Duplication of resources is minimized.

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 • Team members have a functional “home” after project completion, so they are less
worried about life after project than if they were pure project organization.
• Policies of the parent organization are followed. This increases support for the
project.

DISADVANTAGES
• There are two bosses. Often the functional manager will be listened to before the
project manager. After all, who can promote you or give you a rise.
• It is doomed to failure unless the PM has strong negotiation skill.

Note that regardless of which of the three major organizational forms is used, the project
manager is the primary contact point with customer. Communication and flexibility are
greatly enhanced because one person is responsible for the successful completion of the
project.

THE ROLE OF A PROJECT MANAGER

The project manager’s job is important and challenging. He is responsible for getting work
performed, but often has no direct, formal authority over most of the people who perform
the work.

Six basic functions that project management must address are,

1. Manage the project’s scope to define the goals and work to be done, in sufficient
detail to facilitate understanding and correct performance by the participants
2. Manage the human resources involved in the project
3. Manage communications to see that the appropriate parties are informed
4. Manage time by planning and meeting a schedule
5. Manage quality so that the projects results are satisfactory
6. Manage costs so that the projects is performed at the minimum practical cost and
within budget if possible

PROJECT PLANNING AND CONTROL TECHNIQUES

PLANNING

Project planning includes all activities that result in a course of action for the project.
Planning begins with setting well defined objectives. Also, planning involves decision
making resources to be committed, completion times, priorities of activities etc. Areas of
responsibility must be identified and assigned. Time and resource requirements to
perform the work activities must be managed. Also, the performance criteria should be
stated related to the project objectives and in measures of time, cost and quality
characteristics.

PROJECT SCHEDULING

Project scheduling establishes times and sequences of the various phases of the project.
Techniques for scheduling projects include NET WORK ANLYSIS such as PERT and
CPM.