Concept of Project &

Project Management
Under Guidance of
Submitted by:
Dr.Alok Kumar Rai Ashutosh
Mishra
Avinash Tiwari
Anand Prakash
MBA –
Marketing
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 Defined Approved
Nature Timescale Budget

Limited Element of Beneficial

Resources Risk change
 -Project Management Guidebook

A typology of projects:

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

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

Lines of authority Authority defined

Up to 1 year.
“fuzzy”. by management
Low degree of change to
Operational customers.
structure.
Ever changing set Less complex.

of tasks. Consistent set of

tasks.
Responsibility for
Project Management vs. General
cross functional Responsibility
Management
activities. limited to their
own functions.
Only in project life
duration. Permanent work
scenario.
Main task is
resolution of Main task is
conflict. optimization.
Contains intrinsic Limited set of
uncertainties. 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 Initiation
♦ Project Planning
♦ Project Execution
♦ Project 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
Bangalore Metro
Route map
Project Execution

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
no-objection 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.
3. 210 sq mt of IOC petrol bunk near Trinity Circle.
4. Trinity Complex, Megdooth Motors, Police Quarters
on Ulsoor Road.
5. Part of Govt Kannada Primary School at
Srirampuram, Govt Urdu School at Chickpet.
6. 74 sq mt of Bangalore Hospital on RV Road.
7. 4,320 sq mt of Mysore Mills behind Maharaja Mills.
8. 119,000 sq mt of private industry land on Tumkur
Road.
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