Transcript lec-1 project management overview and knoledge areas-part 1.ppt-ver-2

Project Management Overview-II
By: Engr.Dr.Attaullah Shah
PhD ( Civil) Engg , MSc Engg ( Strs), BSc Engg ( Gold Medalist),
MBA, MA ( Eco),M.Phil (Eco) MSc Envir Design, PGD Computer Sc.
Tel: 051-9250100
E-mail: [email protected].
Bio details of the Speaker
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Dr. Attaullah Shah
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Director ( Planning and Projects AIOU)
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[email protected]. [email protected], www.drshahpak.weebly.com
+92-333-5729809, +92-51-9057212
Qualification
PhD Civil Engineering ,M.Phil Eco ,MSc Structure Engg
MBA, MA Eco, MSc Envir Design,BSc Civil Engg (Gold Medal), Post Grad Dip Comp (Gold Medal)
Professional and Field experience:
 25 Years
Research Publications in refereed journals and conferences:
 25 Journals publicationsm+36 Conference publications
Areas of interests
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Structural Engineering
Sustainable built Environment
Construction project Management
What is a Project?
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An temporary endeavor to create a Unique Product or
Service.
A unique one time effort bound by cost, time and
resources/technical performance ( CST) and has defined
objectives to satisfy the customer needs.
Project is an undertaking having definite objectives, and
specific beginning and ending points, limited budgets,
defined scope.
Sum of certain activities and tasks required to be
performed in a specified period of time with human and
non-human resources for specified objectives.
( Is your training a project? )
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What is a Project?
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Project is a one time non-routine opportunity to
develop a new product.
To satisfy the customer to achieve the organizational
objectives.
To be completed with in
 Allocated budget.
 Scheduled Time.
 Approved Technical Performance.
 Approved and agreed Scope of Work.
 Without any change in the existing culture.
What is management?
The process of Planning, Organizing, Staffing, controlling and
leading.
Project management:
The art of Directing and coordinating the human and non human
Resources throughout the life of project by using modern
Management techniques to achieve pre-determined objectives of
scope, cost, time, quality and participants satisfaction.
( Project Management Institute America)
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Project management includes:
Project Appraisal
( Before Commencement of Project PC-I, PC-II).
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Project monitoring.
( During Execution of the Projects PC-III)
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Project Evaluation
( After Completion of the projects. PC-IV,PC-V)
Costs of Poor Project Management
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31% of all new software
development projects are
cancelled before completion
A survey on overall applications
development projects revealed:
53% of projects cost >189% of
original estimates
 46% of IT projects were
"challenged" (completed over
budget and past the original
deadline).
16.2% of software projects
completed on time and on
budget
 6% of projects succeeded.
Average overrun is 222% of
original estimates
Source: Standish Group, 1995
 28% of projects failed.
Source: Standish Group, 1998
Operations and Projects
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Operations and projects share many
characteristics:
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Operations may include activities such as:
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Performed by people.
Constrained by limited resources.
Planned, executed, and controlled.
Financial management and control
Continuous manufacture
Product distribution
Projects may include activities such as:
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Developing a new product or service.
Effecting a change in structure, staffing, or style of an
organization.
Developing or acquiring a new or modified information
system.
Projects are Temporary
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Temporary means that every project has a
definite beginning and a definite end.
The end is reached:
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Temporary does not necessarily mean short in
duration:
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When the project’s objectives have been achieved, or
When it becomes clear that the project objectives will
not or cannot be met and the project is terminated.
many projects last for several years.
The duration of a project is finite:
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projects are not ongoing efforts.
The Product of a Project is Unique
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A product or service may be unique even if the category it
belongs to is large.
For example, many thousands of office buildings have been
developed, but each individual facility is unique—different
owner, different design, different location, different
contractors, and so on.
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Because the product of each project is unique, the
characteristics that distinguish the product or service must be
progressively elaborated.
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Progressively means “proceeding in steps; continuing steadily
by increments”
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Elaborated means “worked out with care and detail; developed
thoroughly”
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Project management consists of
Work Products
Roles
Who is responsible?
Guiding
Principles
What to deliver?
Processes
Hints & Tips
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Techniques
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How to produce?
How to produce?
Stages of PM
Three Stages of a Project
Establish
 Define project
objectives, scope
and approach,
mobilise project
team
Execute
 Execute the work
plan to achieve
desired outcome
Complete
 Wrap up and
transition
Project Stages & Project Management Model
Establish
 Define project objectives,
scope & approach,
mobilise project team
Project
Selection
Confirm
Definition
Execute
 Execute the work
plan to achieve
desired outcome
Plan the
Executio
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Report
Status
Organise
Resources
Control
the Work
Complete
 Wrap up and
transition
Complete
Project
Project Stages & Project Management Model
Establish
Project
Selection
Confirm
Definition
Project Selection
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Define Project Scope
Define Project Objectives
Define Approach
Define Business Case
Select Best Projects
Project Stages & Project Management Model
Establish
Confirm Definition
• Understand Project Sponsor expectations
Project
Selection
Confirm
Definition
• Understand Project Scope
• Understand Project Objectives
• Confirm any assumptions
• Identify Project Risks
Project Stages & Project Management Model
Execute
Plan the Execution
• Define Project Deliverables
• Develop Work Plans
• Develop Scope, Change
Control, Issue Management
and Sign-off Processes
• Develop Risk Mitigation Plan
• Develop Quality Plan
Plan the
Executio
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Report
Status
Organise
Resources
Control
the Work
Project Stages & Project Management Model
Execute
Organise Resources
• Identify Project Team Roles /
Responsibilities
• Assign Team Members to Work
Plan tasks
Plan the
Executio
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Report
Status
Organise
Resources
Control
the Work
• Communicate responsibilities,
target dates, deliverables
• Train Team Members
• Organise physical resources
Project Stages & Project Management Model
Execute
Control the Work
• Monitor work progress
• Resolve issues
• Measure performance
Plan the
Executio
n
Report
Status
Organise
Resources
Control
the Work
Project Stages & Project Management Model
Execute
Report Status
• Assess project progress
• Prepare status reports
• Communicate progress to
relevant audience group
• Follow up any issues resulting
from status meeting
Plan the
Executio
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Report
Status
Organise
Resources
Control
the Work
Project Stages & Project Management Model
Complete Project
Complete
• Complete any development / administrative
activities
• Obtain sign-off of final project deliverables
• Transition to maintenance team where
appropriate
Complete
Project
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Part-II Project Management in
Public Sector
History of Planning Bodies in Pakistan
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Development Board was established early in 1948
In 1950 a Six-Year Development Plan was formulated and
embodied in the Colombo Plan for Cooperative Economic
Development in South and South East Asia.
Planning Board: 18th July, 1953,
To develop the resources of the country as rapidly as possible so as
to promote the welfare of the people, provide adequate living
standards, and social services, secure social justice and equality of
opportunity to all and aim at the widest and most equitable
distribution of national wealth.
Planning Commission On 22nd October 1958, the President was
pleased to re-designate the National Planning Board as the
Planning Commission.
Federal Ministries/Divisions
The Federal Ministries
are responsible for the preparation of programmes and projects in
their respective fields of interest including autonomous
organizations under their control
Conceptual Plans.
Perspective Plan-Vision Plan ( Ex: 2030 Vision)
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To provide a long-term (15-25 years) economic and social policy
framework so that the objectives to be achieved over a much
longer period can be incorporated in a medium-term framework.
Five Year Plan:
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A five year plan is a general statement of objectives and targets
relating to the economy as a whole and its various component
sectors.
Roll-On Plan
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In order to bring flexibility into the Five Year, a roll-on plan of
medium term is designed in which the sectoral and project-wise
position is adjusted according to the foregoing year
Annual Plan
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It is regarded as the implementation side of the five year plan.
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The annual plan includes an evaluation of past performance, a
presentation of the main targets, an assessment of the resource
position for the year.
FEASIBILITY STUDY
Pre-requisite for preparation of a major development project
on sound lines, and is not ruled out even for a minor one
Preparation/Processing of PC-II.
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For Large projects of cost 500 Million or more
 Consultants are appointed for pre-feasibility.
 The consultancy charges should not exceed 10%
PC-I/Project Feasibility:
 Part 'A' is the "Project Digest”- containing eight
questions which are more or less common to all
sectoral PC-I’s forms.
 Part 'B' entitled "Project Description and Financing",
 Part 'C' deals with "Project Requirements".
 Part 'D' deals with environmental aspects.
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PC-III Proforma
Designed to furnish information on the progress of on-going
projects on quarterly basis
PC-IV & V Proformae
PC-IV form is required to be submitted at the time when the project
is adjudged to be complete while the PC-V form is to be furnished
on an annual basis for a period of five years by the agencies
responsible for operation and maintenance of the projects.
Umbrella PC-I
Some times a Federal Ministry is required to prepare a PC-I having
provincial components to be financed through a joint loan by a
donor agency.
Public Sector Development Program
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PSDP
The Public Sector Development Programme
(PSDP) is an annual document which lists all the
public sector projects/ programmes with specific
allocations made for each one of them in that
particular financial year
Federal Vs Provincial Projects
Major share of the total Development Programme
is allocated to Federal projects
While the remainder is allocated to the Provincial
Development Programme.
PROJECT APPROVING BODIES
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National Economic Council (NEC) –CEO/PM as Chief.
( No limit)
Executive Committee of National Economic Council (ECNEC)
Headed by the Federal Minister of Finance/ Adviser to the Prime Minister
for Finance and Economic and Planning.
Economic Coordination Committee of the Cabinet (ECC)
Headed by the Federal Minister for Finance and Federal Ministers of
economic ministries as its members. It attends to all urgent day-to-day
economic matters and coordinates the economic policies initiated by the
various Divisions of the Government
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Central Development Working Party (CDWP)
Headed by the Deputy Chairman, Planning Commission and which includes
as its members the Secretaries of the Federal Ministries concerned with the
development and the heads of the Planning Departments of the Provincial
Governments.
Departmental Development Working Party (DDWP/DSC)
Headed by the respective Secretary/ Head of Department and includes
representatives of Finance Division and concerned Technical Section in the
Planning and Development Division.
Provincial Working Party (PDWP):
headed by the Chairman, Development Board/Additional Chief Secretary
(Development) and includes Secretaries of the Provincial Departments
concerned with development, as its members
Preparation/Processing of PC-II
• A PC-II is prepared for undertaking a feasibility study in respect of a major
project estimated to cost Rs 50 million or more. This is mandatory.
•A project-oriented TOR should be prepared and professional consultants
should be engaged for the feasibility study, if necessary
• The procedure for processing a PC-II is the same as for the PC-I. The
consultancy cost should not exceed 10% of the project cost.
•The relevant scrutinizing body and the sanctioning authority will also remain
the same as for the PC-I. In short, all the rules and procedures in respect of the
PC-I will apply mutatis mutandis to the PC-II.
•All proposals for consultancy, both local and foreign, for preparation of
feasibility studies/ conducting surveys should be drawn up on the PC-II form
and got approved from the Competent Authority before undertaking the actual
work.
• The need for utilization and development of local consultancy has been
recognized by the Government.
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Accordingly, ECC in its meeting held on 19-7-1988
decided that 30 per cent of expenditure to be
incurred on foreign consultancy should be devoted to
the development of local consultancy and that the
limit of 30 per cent would be mandatory for foreign
consultants, who would be required to engage local
consultants
The Pakistani consultants and engineers be given full
opportunity and they should be the first to be hired
for projects for consultancies in Pakistan before
hiring any foreigners.
For details of PC-II refer to Doc-PC-II
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Project
Preparation
PC-1
General
Linking Projects to Resources
Location, Area and Population Coverage
Project Description
Project Objectives and Targets
Project Scope
Change in Scope of Projects
Cost Estimates
Revised Cost Estimates
Financial Plan
Financial Phasing
Physical Scheduling of Activities
Period of Implementation
Appointment of Consultants for Project Preparation, Detailed
Designing and Tender Documents
Economic Benefits
Economic Benefits
Inter-Agency Coordination
Preparation of PC-I/Project Document
For details refer to PC-I doc.
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PROJECT APPROVAL
Approval Stage
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Project Approving Bodies
- National Economic Council (NEC)
- Executive Committee of National Economic Council (ECNEC)
- Economic Coordination Committee (ECC) of the Cabinet
- Central Development Working Party (CDWP)
- Departmental Development Working Party (DDWP)
- Provincial Development Working Party (PDWP)
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Sanctioning Powers of Approving Authorities
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Submission of Schemes to the Competent Authority
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Processing of Schemes
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PROJECT IMPLEMENTATION AND MONITORING
Project Management & Supervision
Appointment of Project Director
Increase in Scope of Work and Delay in Execution of Projects
Project Execution/Supervision-Development of Management
Information System (MIS)
PERT/CPM Techniques
Steps in Project Formulation/Implementation
- Listing of Activities
- Acquisition of Land
- Tendering of Civil Works and Award of Contracts
Procurement of Machinery and Equipment
Local Purchase/Fabrication
Foreign Procurement/Utilization of Foreign Aid
Submission of Completion Report
Project Review and Monitoring
Progress on PC-III Proforma
Progress Review by the Ministries/Divisions
Project Review Groups
Review of Foreign Economic Assistance and Problematic
Foreign Aided Projects by the Committee
Project Control Cycle.
Monitoring
Collect the performance
Establish the Standards
Data.
Feedback
Evaluation
Take the corrective actions
Resolve
Compare with the standards
Project Management & Supervision
1. The objective of any effort in project planning and analysis is to have a
project that can be implemented to the benefit and socio-economic uplift
of the society.
2. The Project Director is appointed, staff of all categories arranged, the
detailed designs got prepared, if need be, with the assistance of
consultants, contractors pre-qualified and short-listed, tenders floated for
civil works, equipment, and their installation, contracts awarded, all in
timeliness with the objective of initiating the operations and getting them
fully underway for achieving the goals envisaged without any time and
cost over-run, in order that the economic benefits accrue according to the
promises made in the scheme.
3. For achievement of the stipulated targets and tangible returns, however, it
is imperative to entrust the management and supervision of the project
during the implementation stage to capable and competent hands of
required qualifications, experience and calibers.
CASH PLAN
General
• The Cash Plan has to be prepared on the basis of allocations made in the PSDP for
the next financial year.
• Provide name of the ministry/division along with Project and PSDP allocations. The
serial number of the project as reflected in the PSDP may also be provided.
• The actual expenditure are the expenditure actually incurred on the project. The
funds transferred to PWD/C&W department are not expenditure rather it is deposited
with the department to be spent on behalf of executing agency. The expenditure
incurred by PWD/C&W department may be shown as an expenditure.
Object/Functional Classification
The classification and head of expenditure as given in the chart of account of PIFRA
Items of Expenditure
The major components of expenditure have been identified in the Cash Plan. However
the items of expenditure may vary from project to project. The executing agency may
incorporate any additional item of expenditure as per approved items of expenditure
given in the PC-I
The executing agencies can further bifurcate an item of expenditure if required.
( For details refer to Cash Plan Doc.)
Approved Cost as per PC-I
Provide item-wise approved cost as reflected in the PC-I.
Cumulative Expenditure
Provide item-wise, cumulative expenditure up to the end of
last financial year.
Quarterly Financial Targets
The cash requirements be worked out on the basis of
quarterly physical activities proposed to be undertaken in the
next financial year.
Ensure a relationship between items of Work Plan and cash
requirements of different items of work.
WORK PLAN
General
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The Work Plan has to be prepared on the basis of activity chart annexed with
the Work Plan.
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Identify the activities to be undertaken on the basis of PSDP allocations for
next financial year.
The activities have to be developed in line plan or bar.
In case, PSDP releases are not lapsable, the executing agency is required to
prepare a separate Work Plan for the unspent releases.
Items of Work
The items of works are the same as indicated in the Cash Plan. In case of
addition of any item in cash plan, it may also be added in the Work Plan.
Unit
Please indicate the Unit of measurement. It can be kanals, acres, hectare for
land and sq. ft. for civil works etc.
Scope of Work
The approved scope of work in quantifiable terms as per PC-I be provided.
Physical targets/items of work be provided in absolute figures and not in
percentages.
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Cumulative Physical Progress
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Item-wise cumulative Physical progress up till 30th June of the last financial
year be provided.
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Quarterly Physical Targets
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The quarterly physical targets are developed on the basis of activities
identified and time allocated for each activity in activity chart.
The activity-wise targets developed be reproduced under quarterly Physical
targets.
Out Put Indicators
Indicate output of the project in quantifiable terms (if applicable) during the
financial year.
ACTIVITY CHART
Activity charts have been developed to identify the time required in
undertaking an activity.
Relationships between different activities have to be developed. An activity
can be undertaken after completion of previous activity or a number of
activities can be undertaken simultaneously.
Time required to undertake an activity can be identified by line or bar.
Activity chart will not be developed for
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POL, repairs and maintenance.
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Stationery utilities etc.
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Contingencies.
Some Funny Quotes of Project Managers
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As of tomorrow, employees will only be able to access the building using
individual security cards. Pictures will be taken next Wednesday and
employees will receive their cards in two weeks.
What I need is a list of specific unknown problems we will encounter.
E-mail is not to be used to pass on information or data. It should be used
only to be used for company business.
Turnover is good for the company, as it proves that we are doing a good job
in training people.
This project is so important, we can't let things that are more important
interfere with it.
Doing it right is no excuse for not meeting the schedule.
No one will believe you solved this problem in one day! We've been working
on it for months. Now, go act busy for a few weeks and I'll let you know
when it's time to tell them