PROJECT MANAGEMENT - Shri Venkateshwara University

1 PROJECT MANAGEMENTMCOM Semester - I MCOM - 101 SHRI Venkateshwara UNIVERSITYUTTAR PRADESH-244236 AuthorsBhavesh M Patel, Dean, Amrut Mody School of MANAGEMENT , Ahmedabad UniversityUnits ( , , , , , , , , , ) Bhavesh M Patel, 2019 Vikas Publishing HouseUnits ( , , , , , , , , , , , , , , ) Reserved, 2019 All rights reserved. No part of this publication which is material protected by this copyright noticemay be reproduced or transmitted or utilized or stored in any form or by any means now known orhereinafter invented, electronic, digital or mechanical, including photocopying, scanning, recordingor by any information storage or retrieval system, without prior written permission from the contained in this book has been published by VIKAS Publishing House Pvt. Ltd. and hasbeen obtained by its Authors from sources believed to be reliable and are correct to the best of theirknowledge.

2 However, the Publisher and its Authors shall in no event be liable for any errors, omissionsor damages arising out of use of this information and specifically disclaim any implied warranties ormerchantability or fitness for any particular is the registered trademark of Vikas Publishing House Pvt. PUBLISHING HOUSE PVT LTDE-28, Sector-8, Noida - 201301 (UP)Phone: 0120-4078900 Fax: 0120-4078999 Regd. Office: A-27, 2nd Floor, Mohan Co-operative Industrial Estate, New Delhi 1100 44 Website: Email: OF STUDIESProf (Dr.) ChancellorDr. Rajesh SinghDirectorDirectorate of Distance EducationSUBJECT EXPERTDr. , ProfessorDr. Shrinivas Shirur, Professor Mr. Ashotosh, Asst. ProfessorCOURSE CO-ORDINATORMr. Shakeel KausarDy. RegistrarUnit 1: Introduction toProject MANAGEMENT (Pages 3-52)Unit 2: PROJECT Analysisand Selection(Pages 53-112)Unit 3: PROJECT Planningand Scheduling(Pages 113-148)Unit 4: Implementationand Control(Pages 149-165)Unit 5: PROJECT Completionand Evaluation(Pages 167-182)SYLLABI-BOOK MAPPING TABLEP roject ManagementSyllabiMapping in BookUnit 1 PROJECT MANAGEMENT .

3 Meaning and scope, Need of PROJECT MANAGEMENT ,Life cycle of a PROJECT - conception and selection, planning and scheduling,implementation and control, evaluation and 2 PROJECT Analysis and SelectionIdentification of investment opportunities, projectinitiation, Market and Demand Analysis, Technical Analysis, Economicand Financial Analysis, Social Cost and Benefit Analysis, formulation ofDetailed PROJECT 3 PROJECT Planning & SchedulingPlanning Resources, Planning of Physical Resources, Planning of HumanResources, Planning Financial Resources, PROJECT organizing, PlanningTime Scales-Network/PERT 4 Implementation and ControlProject MANAGEMENT Information System, Monitoring and ReportingPhysical resources, human resources, and financial resources-cost 5 PROJECT Completion and EvaluationIntegrated PROJECT MANAGEMENT Control System, managing Transition forproject to operation, PROJECT completion and evaluation, PROJECT review, PROJECT 1 INTRODUCTION TO PROJECT PROJECT MANAGEMENT : Meaning, Scope and Characteristics of PROJECT Successful PROJECT Pr in ci ples of Pr oject Man a gemen PROJECT MANAGEMENT : Scope and Requirement for PROJECT Need of PROJECT Life Cycle of a PROJECT .

4 Conception and Stages of the Life Cycle PROJECT Selection and Greenfield s Speci a l E con om i c Zon e Pr oject PROJECT Objectives of PROJECT Process of PROJECT PROJECT Construction Pr oject Sch edul i n PROJECT Implementation and Goals of PROJECT Moni t or in g a n d Con tr Review Meetings and PROJECT Evaluation and Summing Key Answers to Check Your Progress Questions and References and Suggested ReadingsUNIT 2 PROJECT ANALYSIS AND Identification of Investment Projects and Alternative Sources of PROJECT PROJECT Market and Demand Genera l Econ omi c In di ca Demand and Supply Demand Forecasting Technical Selection of Site of a Economic and Financial Cost of Capital and Cut-off Cut-off Rate (Required Rate of Return) PROJECT Cash Fl ow Esti m at Fi nan ci al Eva luati Capital Budgeting Evaluation Social Cost and Benefit Non-Quantifiable Cost-Benefits in United Nations International Development Organization (UNIDO) Approach to SCBA in PROJECT Report and Types of PROJECT Feasibility and Detailed PROJECT PROJECT Com pl et ion Repor Summing Key Answers to Check Your Progress Questions and References and Suggested ReadingsUNIT 3 PROJECT PLANNING AND Planning Planning of Physical Resources Equipment Planning of Human Resources Manpower Planning of Financial Resources PROJECT Types of Orga n i z a t i on St r uct ur PROJECT CAT S an d RAT Scheduling Gan tt Ch Critical Path Method (CPM)

5 An E xam pl e of CPM Pr oject Ana l ysi Tot al Cost-Ti m e Tra Planning Time Scales-Network/PERT PROJECT Evaluation and Review Technique (PERT) PERT: Single Time PERT Syst em of T hr ee-Ti me Esti ma PE RT Pr Investment Decisions: MANAGEMENT , Approval and Summing Key Answers to Check Your Progress Questions and References and Suggested ReadingsUNIT 4 IMPLEMENTATION AND PROJECT MANAGEMENT Information Monitoring and Reporting Human and Physical Hum a n Resour Physical Financial Types of Ownership Venture Charitable Venture Preference Subsidy and Tax Cost Con t r Summing Key Answers to Check Your Progress Questions and References and Suggested ReadingsUNIT 5 PROJECT COMPLETION AND Integrated PROJECT MANAGEMENT Control Managing Transition for PROJECT to PROJECT Completion and PROJECT Compl et PROJECT Closing and PROJECT Objectives and Essentials of PROJECT Need for PROJECT Qualities of a PROJECT Approach to PROJECT Methodology and

6 Timing of Scope of PROJECT PROJECT Precautions for PROJECT Summing Key Answers to Check Your Progress Questions and References and Suggested ReadingsSelf LearningMaterial1 IntroductionNOTESINTRODUCTIONA large number of business entities do not hire PROJECT managers on their payrolls and itis not new to set up a PROJECT team to fulfill a certain requirement. Though most of thepeople may not have the prescribed skills in a PROJECT methodology, being part of aproject team is a wonderful opportunity to learn and can provide new dimensions to aperson s career following main points define what PROJECT MANAGEMENT actually is: PROJECT MANAGEMENT is not a diminutive job It has a scheduled beginning and end It is not an ongoing process PROJECT MANAGEMENT employs a variety of tools to determine endeavours andkeep track of PROJECT milestones Projects are in regular need of resources on an impromptu basis unlikeorganizations that have only dedicated permanent posts PROJECT MANAGEMENT lessens risk and lowers the prospect of successThe three most important factors in PROJECT MANAGEMENT are time, cost and scope,which are collectively addressed as the triple constraint.

7 These form the edges withquality as a chief successful PROJECT MANAGEMENT discipline will not get rid of all threats, flawsand shocks, but will provide benchmark methods and measures to cope up with themand help thwart the following: Projects crossing the deadline, going beyond the budget or failing to meetcustomer expectations Irregularity between the processes and procedures practiced by projectsmanagers, causing a few to be favoured more than others Projects thriving well, regardless of lack of planning, accomplished throughextreme levels of stress, goodwill and noteworthy measures of overtime PROJECT MANAGEMENT regarded as providing no value add and as a waste oftime and funds Unpredicted in-house and/or outside events affecting the projectProject MANAGEMENT is about building an atmosphere and situation in which adefinite aim or objective can be realized in a streamlined way by a team of learning material in this book, PROJECT MANAGEMENT , has been presented inthe self-learning format.

8 Wherein each unit begins with an Introduction to the topicfollowed by an outline of Objectives. The detailed content is then presented in a simple,structured and easy-to-grasp style interspersed with Check Your Progress questionsto test the student s understanding. At the end of each unit, Summing Up and a list ofQuestions and Exercises have been provided for LearningMaterial3 Introduction toProject ManagementNOTESUNIT 1 INTRODUCTION TOPROJECT PROJECT MANAGEMENT : Meaning, Scope and Characteristics of PROJECT Successful PROJECT Pr in ci ples of Pr oject Man a gemen PROJECT MANAGEMENT : Scope and Requirement for PROJECT Need of PROJECT Life Cycle of a PROJECT : Conception and Stages of the Life Cycle PROJECT Selection and Greenfield s Speci a l E con om i c Zon e Pr oject PROJECT Objectives of PROJECT Process of PROJECT PROJECT Construction Pr oject Sch edul i n PROJECT Implementation and Goals of PROJECT Moni t or in g a n d Con tr Review Meetings and PROJECT Evaluation and Summing Key Answers to Check Your Progress Questions and References and Suggested PROJECT is temporary.

9 It has a defined beginning and end in time, and therefore definedscope and resources. A PROJECT is unique in that it is not a routine operation, but a specificset of operations designed to accomplish a singular goal. A PROJECT team often includespeople who don t usually work together sometimes from different organizations andacross multiple development of software for an improved business process, the constructionof a building or bridge, the relief effort after a natural disaster, the expansion of sales intoa new geographic market all are projects. And all must be expertly managed todeliver the on-time, on-budget results, learning and integration that organizations MANAGEMENT , then, is the application of knowledge, skills and techniquesto execute projects effectively and efficiently. It s a strategic competency for organizations,enabling them to tie PROJECT results to business goals and thus, better compete in Learning4 MaterialIntroduction toProject ManagementNOTESP roject MANAGEMENT is concerned with achieving a specific goal in a given timeby using the resources available for that specific period.

10 In order to achieve successwith PROJECT MANAGEMENT , the essential requirements are adequate PROJECT formulation ,availability of resources, proper implementation planning before commencing the actualimplementation, effective monitoring of the emerging problems and taking correctivemeasures. All these measures need to be undertaken to get the PROJECT ready on going through this unit, you will be able to: Explain the concept of PROJECT MANAGEMENT Discuss the need of PROJECT MANAGEMENT Describe the phases involved in the life cycle of a system Discuss the process involved in PROJECT planning Explain the concept of PROJECT implementation and MANAGEMENT : MEANING, SCOPEAND NEEDP roject MANAGEMENT is the art of directing and coordinating human and material resourcesthroughout the PROJECT by using modern MANAGEMENT techniques. The main purpose ofproject MANAGEMENT is to achieve the predetermined objectives of scope, cost, time,quality and the satisfaction of the MANAGEMENT includes developing and implementing a plan for the projectwhile considering the available resources such as manpower, material and cost in theorganization.