JSPM Group of Institutes

Session Objectives
Course: Civil Engineering
Project Management and Engineering Economics

UNIT I

Session Session Objective

1 To know basic of Project Management and its importance.

Able to classify the categories of project and conceptualize the life cycles
2
and phases come in project.
To know about Project Management -Book of Knowledge ,Professional
3
certification and its credit.

4 Professionals learning of PM by PMI, about PMP.

How any organization work and working method on basis of

5
Responsibilities and authority.

6 Differentiating the organization and work according to same.

Assess the student and their Remembrance and acknowledging the unit,
7
How we taught?

Introduction to Project Management

1.1 What is Project?
Project means which is having single well defined purpose, identified end products,
deliverables or results with respect to time, cost ,scheduling and performance of each and
every element involved in it.

Project is unique .It is an one time activity, activities are not repeating i.e Even
through for construction of house activities are same but following things are different
which make project unique.

Soil condition
Workmen market
Public services
Public laws
Local Utilities
Mankind involved in project.

Project consists of activities (Temporary activities) which have to

Completed within time and within available resources.
Project requires a multi-skill professional from various areas.
Project involves different risk at every phase of project.
Project is the continue process for achieving organizational goals.

1.2 Project Managements:

To complete a project successfully, it requires a special approach which is broadly

called as project Management. Project is success means Project must get completed within
budget, stipulated time and performance up to satisfactory mark.

Defining what is to be done ,maintaining its integrity and ensuring that it is done and
performed as desired within time and cost budget fixed for it through modular work
approaches, using organizational and extra extra organizational resources is what
project management has to achieve.

Project Management at approach should involve following steps:

1) Deciding the whole project into project group which should acquires properties of a project
.Grouping should be done in such way that individual goals of group should contribute in
the project goals.
 2) Project should be handling by a one or two person or centrally know as project manager for
coordination, direction and control on project.
3) Project should involve support services to project internally from organization and
externally through sub contractors and vendors and client.
4) Completing the commitments with negotiation, direction and controlling within budget and
stipulated time.
5) Project is continuous process of monitoring, directing set goals using resources, budget,
time and contracts.

1.3 Definitions of Project Management by scientists:

1) Duckers: First definition, It is an economic organ of an industrial society.

2) Terry: Management is an distinct process consisting of planning, organizing,

actuating, controlling performance to determine and accomplish the objectives
by use of people and resources.

3) Appley: Management is an art of getting things done through and with people
formally organized groups.

4) F.W/Taylor:Mangement is knowledge exactly what is to be done and the cheapest

way.

1.4 Importance of project Management:

1) Management provides a how to do, when to do, i.e. methodology and scheduling without
this no organization can run successfully.

2) Management provides a guid, monitor and control and optimum utilization of resources
Five M (Man, Material, Machinary, Money, Method)

3) Management coordinates within team for achieving goals.

4) Management creates vital, dynamic and life giving to a company.

5) Management focuses on goals of company and departments.

6) Management provides stability clear financial views for forth coming views.
 7) Management is a system which adheres with the changing environment of society.

1.5 Objectives of Management:

1) Complete the work for customer in accordance with budget schedule and performance.
2) Objectives should be clearly defined and communicate at economic level.
3) Objective should be set in accountability of companys abilities.
4) Objectives of Project management should not deviate from the organizational objectives.
5) Expenditure should not cross the common budget of project.
6) Objectives of projects are varies with nature of project.
7) Objectives should contain he growth of company.
8) Environment, social and human objectives.
9) Increase in business.
10) Quality, safety and consistency in work.
11) Servicing promptness.

1.6 Functions of Management

According to the functions approach managers perform certain activities to efficiently and
effectively coordinate the work of others. They can be classified as .

1.6.1 Forecasting

Its part of Planning and estimation of future scope. Forecasting should be done for time,
cost, Man power requirement machinery, material requirement at different phases of
project. Forecasting leads to

-Accumulation of time

-Minimization of cost

-Future financial requirement

1.6.2 Planning
 Planning involves defining goals, establishing strategies for achieving those goals, and
developing plans to integrate and coordinate activities.

-At this stage action plan of execution and targets are sets.

-Utilizations and targets are sets.

-Determining organizational resources.

-Formulation of work.

1.6.3 Organizing

Organizing involves arranging and structuring work to accomplish the organizations

goals:

-Calculation of activities.

-Organizing the resources as per activities.

1.6.4 Directing

-Direction to the man involves

-Direct per the correct method which can achieve objective of work.

1.6.5 Staffing

-Selection of manpower for selected job.

-Training for manpower.

-Development and placement of qualified staff at right place for right time.

1.6.6 Coordinating

-It means to gather all resources under the same action of work to achieve goals.

-Co ordinate with sub ordinates with same line and superiors for work.

1.6.7 Controlling and Monitoring

 -Controlling involves monitoring, comparing, and correcting work performance.

-Feed back for work done.

-Correcting the methodology

-Identified the goals and motivate people.

1.6.8 Motivation

-Motivate the people to achieve their personal and organizational goals.

1.6.9 Decision Making

-It is process of Trial and error method.

14 principles of Management Fayol:

Division of Work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of Individual Interests to the General Intere
Remuneration
Centralization
1.7 Principles of Management:
Scalar Chain
Order
Equity Management
Stability of Tenure of Personnel
Initiative
Esprit de Corps
 Figure1.1 Principles of
management

14 Principles of management by Fayol are listed as follows.

1. Division of Work When employees are specialized, output can increase because they
become increasingly skilled and efficient.

2. Authority Managers must have the authority to give orders, but they must also keep
in mind that with authority comes responsibility.

3. Discipline Discipline must be upheld in organizations, but methods for doing so can
vary.
4. Unity of Command Employees should have only one direct supervisor.

5. Unity of Direction Teams with the same objective should be working under the
direction of one manager, using one plan.

6. Subordination of Individual Interests to the General Interest The interests of one

employee should not be allowed to become more important than those of the group.
This includes managers.

7. Remuneration Employee satisfaction depends on fair remuneration for everyone.

This includes financial and non-financial compensation.

8. Centralization This principle refers to how close employees are to the decision-
making process. It is important to aim for an appropriate balance.

9. Scalar Chain Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.

10. Order The workplace facilities must be clean, tidy and safe for employees.

11. Equity Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.

12. Stability of Tenure of Personnel Managers should strive to minimize employee

turnover. Personnel planning should be a priority.

13. Initiative Employees should be given the necessary level of freedom to create and
carry out plans.

14. Esprit de Corps Organizations should strive to promote team spirit and unity.
1.8Categories of Project:
1.8.1 Depending upon Location: following diagram gives and clear idea about type a of
project depending upon the location.

Project

National International

Non
Industrial
Industrial

High Non Low

Convential
Technolog convention technology
technology
y al

Low Medium Major Mega

Modificatio Grassroots
Expansion
n

Disaster Crash Normal

Figure 1.2 Types of projects based on

location

1.8.2 Depending Upon Size

Schedule A

Schedule B

Schedule C
1.9 Project Failures:

Following are the causes of Failure Based on the personnel involved;

Owner:

Scoping issue Scope does not fully address.

Inexperience or unequal project team.
Poor estimating
Lack of integral budget and planning
Incomplete and fluid design
Lack of proactive risk management
Unrealistic schedule
Insufficient tool and project management infrastructure.

Contractor:

Poor estimating
Unfavorable contract
Lack of senior management support
Design issue
Overly aggressive schedule
Lack of Risk management
Lack of Project co-ordination.

1.10 Project Life Cycle

 Figure 1.3 Life cycle of
project

1.10.1 Project Initiation

In this phase a business problem or an opportunity is identified and a Business Case

which provides alternative solutions is defined. Prior, during or after the development of
the Business Case, a Cost/ Benefit Analysis and a feasibility study are usually conducted
to identify the alternative with the maximum net benefit and investigate the likelihood of
each solution option addressing the business problem. As an outcome of the Business
Case a final recommended solution is put forward. Once the recommended solution is
approved, the Executive and the Project Manager are appointed in order to participate in
the preparation of the Project Fiche, which outlines the scope, objectives, activities,
structure, budget, implementation schedule, risks, constraints and assumptions of the
project. .

1.10.2 Project Planning

 This phase includes the planning of all the elements/ parameters of the project so to
be ready for implementation. In this perspective, the following plans must be developed:
Activities Schedule (definition of activities and tasks sequence, time scheduling), Risk
Plan (highlighting of possible risks and actions to mitigate them), Resource Plan
(determination of the labor, equipment, material needed in each task/stage), Cost Plan
(identification of the internal and external costs and their occurrence in time), Quality
Plan (setting of quality targets for the project deliverables and definition of processes for
quality assurance and control), Issue Management Plan (definition of process for
identifying, assessing and resolving issues related to the project), Change Management
Plan .

1.10.3 Project Execution & Control

This phase involves the execution of each activity and task defined at the Project
Schedule. During the implementation of the activities and tasks a series of management
processes are undertaken to monitor and control: time, resources, cost, risks, quality,
issues, changes, deliverables acceptance procedure, communication, etc.

1.10.4 Project Closure

This phase includes all activities and tasks that ensure that the project is completely
finished and the contract is properly closed. It also includes the evaluation of the
processes used in the project and of the outcomes achieved.
 Figure 1.4 Summary of project

10.11 Project Management Body of Knowledge:

-This book which focus on standard terminology and guidelines for Project
Management.

-This book is overseen by PMI (Project management Institutes).

-The Latest Fifth edition was publishing in 2013.

-The fifth PMBOK was published in 1996 by PMI.

10.11.1 Purpose of PMBOK

-It is the subset of Project management body of Knowledge that is generally recognizing
as good practice.

-This book gives an applicable practice for most projects most of the time

-Good practice, this term used in such manner that application of knowledge, skills, tools
and techniques can enhance the chance of success over many projects.

-Later management trends are not available in PMBOK normally.

10.11.2 Contents of PMBOK

-Project is described in terms of processes

-Processes are overlapped and intercut through

-Process is describes in terms of Input, Tools n techniques, Output

-It provides guidelines for managing project and define concepts involves in Project
Management.

PMBOK has grouped in five processes.

Initiating

For defining a new project or new phase in existing project by obtaining authorization.

Planning

Define scope of project, objective, action phases etc.

Executing

Complete the work defined by the management up to satisfactory level.

 Monitoring and controlling

This process is required for tracking, review and regulates the project. This helps to count
the performance of project. This process helps on quality control and rearranges the
things as per situation.

Closing

Finalization of activities across the all process and close the project.

10.11.3 Knowledge areas of PMBOK.

1. Project INTEGRATION Management

Identification of process and activities, defining activities, combination of activities to

achieve project objectives.

2. Project SCOPE Management

Identification of requirement of Project and only work required.

3. Project COST Management

It involves planning, estimating, budgeting, financing, finding, management and

controlling cost so that project should completed within approved budget.

4. Project QUALITY management

Determine qudity policities, qualitative objectives of project, and responsibilities. So than

its up to client satisfaction.

5. Project HUMAN RESOURCES management

This process involved organizing, managing and lead the project them.

6. Project COMMUNICATION Management

Project requires a timely and appropriate Planning and information.

7. Project TIME Management

 Processes required managing timely completion of project.
8. Project RISK management
This includes process of conducting risk management planning, identification, analysis,
response planning analysis and controlling risks.

9. Project PROCUREMENT management

This includes to acquire products , services and result needed.

10. Project STAKEHOLDER Management

To identify all people or organization impacted by project, analyzing, and developing

management strategies foe effectively engaging stakeholders.

10.12 Project Management Institute

-Worlds largest association for project management profession

-Running on not for profit basis

-PMI currently having 70000 members credentials holders and volutes to enhance their
career.

-PMI worldwide advocacy for PM is reinforces by globally reconsiders standards and

certification program.

-This instituted offer seven certification including Project Management Professional

(PMP).

-This Institutes Provides training and education and environment for research.

10.13 Project Management Professional

PMP

-Most Important industry recognizing certification for Project Mangers.

-Globally recognized and demanded.

 -PMP shows that you have experience ,education and competency to lead and direct projects.

Who should apply

-Experience project manager looking to solidify.

-Your skill stands out to employers and maximize yours earings potentials.

Requirement for PMP certifications

A secondary degree with at least 5 years of project management must experience with 7500
hours leading and directing project and 35 hrs of project management education.

Or

Five year degree and at least three years of Project management experience with 4500 hours
leading and directing projects and 35 hours at project, management education.

10.14 Organizations:

Organizations are set up in specific ways to accomplish different goals, and the
structure of an organization can help or hinder its progress toward accomplishing these
goals. Organizations large and small can achieve higher sales and other profit by properly
matching their needs with the structure they use to operate. There are three main types of
organizational structure: functional, divisional and matrix structure.

10.14.1 Line Organizational Structure:

A line organization has only direct, vertical relationships between different levels in
the firm. There is only line departments-departments directly involved in accomplishing the
primary goal of the organization. For example, in a typical firm, line departments include
production and marketing. In a line organization authority follows the chain of command.
10.14.1.1Features:
Have only direct vertical relationships between different levels in the firm.

10.14.1.2 Advantages:

1. Tends to simplify and clarify authority, responsibility and accountability

relationships

2. Promotes fast decision making

3. Simple to understand.

10.14.1.3 Disadvantages:

1. Neglects specialists in planning

2. overloads key persons.

Some of the advantages of a pure line organization are:

 (i) A line structure tends to simplify and clarify responsibility, authority and
accountability relationships. The levels of responsibility and authority are likely to be
precise and understandable.

(ii) A line structure promotes fast decision making and flexibility.

(iii) Because line organizations are usually small, managements and employees have
greater closeness.

However, there are some disadvantages also. They are:

(i) As the firm grows larger, line organization becomes more ineffective.

(ii) Improved speed and flexibility may not offset the lack of specialized knowledge.

(iii) Managers may have to become experts in too many fields.

(iv) There is a tendency to become overly dependent on the few key people who an
perform numerous jobs.

10.14.2 Line and Staff Organizational Structure:

Most large organizations belong to this type of organizational structure. These

organizations have direct, vertical relationships between different levels and also specialists
responsible for advising and assisting line managers. Such organizations have both line and
staff departments. Staff departments provide line people with advice and assistance in
specialized areas (for example, quality control advising production department).
 Figure 1.6 Line and Staff
Organization
Exhibit illustrates the line and staff organizational chart. The line functions are
production and marketing whereas the staff functions include personnel, quality control,
research and development, finance, accounting etc. The staff authority of functional
authority organizational structure is replaced by staff responsibility so that the principle of
unity of command is not violated.

10.14.2.1Three types of specialized staffs can be identified:

(i) Advising,

(ii) Service and

(iii) Control.

Some staffs perform only one of these functions but some may perform two or all the
three functions. The primary advantage is the use of expertise of staff specialists by the line
personnel. The span of control of line managers can be increased because they are relieved
of many functions which the staff people perform to assist the line.
10.14.2.2 Some advantages are:

(i) Even through a line and staff structure allows higher flexibility and specialization
it may create conflict between line and staff personnel.

(ii) Line managers may not like staff personnel telling them what to do and how to
do it even though they recognize the specialists knowledge and expertise.

(iii) Some staff people have difficulty adjusting to the role, especially when line
managers are reluctant to accept advice.

(iv) Staff people may resent their lack of authority and this may cause line and staff
conflict.

10.14.2.3 Features:

1. Line and staff have direct vertical relationship between different levels.

2. Staff specialists are responsible for advising and assisting line managers/officers
in specialized areas.

3. These types of specialized staff are (a) Advisory, (b) Service, (c) Control e.g.

(a) Advisory:

Management information system, Operation Research and Quantitative Techniques,

Industrial Engineering, Planning etc

(b) Service:

Maintenance, Purchase, Stores, Finance, Marketing.

(c) Control:

Quality control, Cost control, Auditing etc. Advantages

 (i) Use of expertise of staff specialists.

(ii) Span of control can be increased

(iii) Relieves line authorities of routine and specialized decisions.

(iv) No need for all round executives.

10.14.2.4 Disadvantages:

(i) Conflict between line and staff may still arise.

(ii) Staff officers may resent their lack of authority.

(iii) Co-ordination between line and staff may become difficult.

Committee Organizational Structure Features:

(a) Formed for managing certain problems/situations

(b) Are temporary decisions.

10.14.2.5 Advantages:

1. Committee decisions are better than individual decisions

2. Better interaction between committee members leads to better co-ordination of

activities

3. Committee members can be motivated to participate in group decision making.

4. Group discussion may lead to creative thinking.

 10.14.2.6 Disadvantages:

1. Committees may delay decisions, consume more time and hence more expensive.

2. Group action may lead to compromise and indecision.

3. Buck passing may result.

10.14.3 Matrix Organizational Structure:

It is a permanent organization designed to achieve specific results by using teams of

specialists from different functional areas in the organization. The matrix organization is
illustrated

10.14.3.1 Feature:

Superimposes a horizontal set of divisions and reporting relationships onto a

hierarchical functional structure
 Figure 1.7 Matrix
Organization

10.14.3.2 Advantages:

1. Decentralized decision making.

2. Strong product/project co-ordination.

3. Improved environmental monitoring.

4. Fast response to change.

5. Flexible use of resources.

6. Efficient use of support systems.

10.14.3.3 Disadvantages:

1. High administration cost.

2. Potential confusion over authority and responsibility.

3. High prospects of conflict.

4. Overemphasis on group decision making.

5. Excessive focus on internal relations.

This type of organization is often used when the firm has to be highly responsive to a
rapidly changing external environment.

In matrix structures, there are functional managers and product (or project or business
group) managers. Functional manager are in charge of specialized resources such as
production, quality control, inventories, scheduling and marketing. Product or business
group managers are in charge of one or more products and are authorized to prepare
product strategies or business group strategies and call on the various functional managers
for the necessary resources.

The problem with this structure is the negative effects of dual authority similar to that
of project organization. The functional managers may lose some of their authority because
product managers are given the budgets to purchase internal resources. In a matrix
organization, the product or business group managers and functional managers have
somewhat equal power. There is possibility of conflict and frustration but the opportunity
for prompt and efficient accomplishment is quite high.
 JSPM Group of Institute

Course: Civil Engineering

Project Management- Assignment

Unit I

Que.1 Write a short note on Project Categories.

Que.2. Explain with sketch Matrix Organization, state advantages and disadvantages.

Que.3 Explain Project Life Cycle.

Que.4 Explain with suitable example Line and Staff Organization.

Que.5 Explain functional type of organization in detail.

Que.6 Explain functions of management.

Que.7 What is PMBOK? Focus on its contents.

Que.8 What is PMI? Which type of certifications carried out by it? Explain PMP.

Que.9 What is Project Management? State its importance.

Que.10 Explain principles and objectives of Project Management.

Session Outcomes

1. Able to understand a basic of project management and its importance.

2. Able to classify the categories of project and conceptualizes the life cycle and phases
come in project.
3. Able to know about project management book of knowledge, professional certification
and its credit.
4. Able to understand professional learning of project management by PMI, about PMP.
5. Able to understand organizational work on the basis of responsibility and authority.
6. Able to describe the different types of organization and its work according to the same