BASIC CONCEPTS,

PROJECT LIFE CYCLE,

PROJECT
FORMULATION- ESE
ESE 2020
BASICS OF PROJECT MANAGEMENT
 ABOUT ME : VENKATA TILAK UPPALAPATI

 12 Years Teaching Experience

 Ex – GATE & ESE Faculty of top Coaching Institute in India

 M.S. University of Sheffield, England, (Ph.D)

 Member of IStructE, Institution of Civil Engineers (ICE)

 Worked as Research Engineer, Head of Civil Engineering

 Independent Structural Design Consultant

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Number of Days left for ESE 2020 - 28

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1.1 What is project ?

Harison, “A project can be defined as a non routine, non

repetitive with discrete time. Financial and technical
performance goal.
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PROJECT MANAGEMENT-ESE
1.1.1 Characteristics and
Features of a project
• Client and Project Sponsor

• Stakeholders
• Project Life cycle

• Project charter
• Project Manager

• Project Team
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Characteristics and Features of a project

• Scope of work
• Project Schedule
• Budget
• Resources
• Procurement
• Quality
• Risks
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1.1.2 Classification of Projects (Taxonomy of Projects)
1. Classification based on type of work
2. Classification on the basis of Project completion time
3. Classification on the basis of project value
4. Classification on the basis of ownership
5. Based on the basis of pace of work
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PROJECT MANAGEMENT-ESE
1.2 What is Management?

Management process involves:

1. Initiation process
2. Planning process
3. Execution process
4. Monitoring and control process
5. Closing process
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PROJECT MANAGEMENT-ESE
various type of resources within
management:
a. Human resources
b. Financial resources
c. Time resources
d. technological resources
e. Mechanical resources
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PROJECT MANAGEMENT-ESE
1.3 What is Project Management?

1.1.3 Characteristics of Project Management

1. Project Charter
2. Tools and Techniques
3. Project Plan
4. Project Management Processes
5. Project Organization Structure
6. Project Methodology
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PROJECT MANAGEMENT-ESE
1.3.2 Different type of Management
1. General Management
Recruiting and team selection
Personnel and human resources
Sales and marketing
Accounts and salaries
Project economics
Computer systems
Legal contracts
2. Production Management
3. Process Management
4. Programme Management
5. Portfolio Management
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Portfolio Management-

A portfolio is a set of projects and/or programmers that are

not necessarily related but are brought together for the
sake of control, co-ordination and optimization.

The portfolio manager co-ordinates all the projects and

possible programmes within an organization during the
process of evaluation, selection, monitoring and
controlling, reprioritization and closure.
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PROJECT MANAGEMENT-ESE
1.4 Project Life Cycle
Project can be subdivided into a number
of phases presented sequentially along a
project timeline.
All the phases of a project from start to
end are known as life cycle phases.
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PROJECT MANAGEMENT-ESE
Phase-1. Feasibility stage or conception stage
Phase-I of the project can be summarized as under:
a. Identification of the need
b. Establishment of the primary feasibility of project idea
c. Identification of alternatives
d. Evaluation/appraisal of the alternatives
e. Investment decision
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Phase-2: Design Stage (Planning & Scheduling Stage)/ Definition Phase

Phase-3 Execution or Production Phase
Phase-4 Termination or commission or Handover Phase
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The important elements of a project life cycle are:

1. Operation/activities; Which should be

performed in sequence
2. Resources: Manpower, Material, money
machinery
3. Constraints and external conditions.
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PROJECT MANAGEMENT-ESE
1.4.2 Level of Effort (Intensity of Activates)
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PROJECT MANAGEMENT-ESE

1.4.4 Product Life cycle (10 Phases)

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PROJECT MANAGEMENT-ESE
A. Strategy Phases
B. Project Phases
C. Operation Phases
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What is Halo effect?
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1.5 PROJECT MANAGEMENT PROCESS
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1. Initiation Process-Initiate the Phase
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PROJECT MANAGEMENT-ESE
2. Planning Process-Plan and Schedule
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PROJECT MANAGEMENT-ESE
3. Execution Process-Execute the phase
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PROJECT MANAGEMENT-ESE
4. Closing Process-Close the phase
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PROJECT MANAGEMENT-ESE

Q. Projects are initiated in the life of an organization

as a result of:

A  An immediate financial need

B  To keep employees busy and productive

C  To achieve a pre-set strategic objective

D  To make products for sale in the market

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PROJECT MANAGEMENT-ESE

Q. In which of the following project

management process groups, most of
the time and money are typically spent?
A  Initiating B  Planning

C  Executing D  Controlling
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PROJECT MANAGEMENT-ESE

Q. What do knowledge, skills, tools and techniques

stand for when applied to the activities of a
project, if it also entails effective managements of
a process.
A  Human Resource Management

B  Project Management

C  Financial Management

D  Project Management Process

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PROJECT MANAGEMENT-ESE

Q. A project is defined as

A  A process of considerable scope that implements a plan.

 An endeavor, which is planned, executed and controlled;

B
 performed by people; and constrained by limited resources.

C
 A temporary endeavor undertaken to create a unique
 product or service.

D  An objective based effort of temporary nature.

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 PROJECT MANAGEMENT-ESE

Q. In general a project charter covers:

Project justification, background, scope, objectives, available resources,

A  a project schedule, estimates procurement schedule, and any
limitations that top management wants to apply.

Project justification background, scope, objectives, available resources,

B  organizational responsibilities, estimates, and detailed procurement
schedules responsibilities, and any limitations that top management want to
apply.

C  Project justification, description details of sponsor and project manager,

budget, assumptions and constraints, boundaries to apply.

Project scope, objectives, team responsibilities, a project schedule,

D  estimates, procurement schedules, and any limitations that top management
want to apply.
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 PROJECT MANAGEMENT-ESE
INITIATION PROCESS: PROJECT FORMULATION AND APPRAISAL

PROJECT FORMULATION AND DEVELOPMENT

1. Pre Investment Phase
2. Investment Phase
3. Operation phase

Pre-investment Phase :
a. Identification of relevant project idea
b. Preliminary filtration of project ideas
through pre-feasibility studies
c. Detailed feasibility studies
d. Final evaluation and decision
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PROJECT MANAGEMENT-ESE
2. Investment phase

a. Negotiating and contracting

b. Detailed project design and engineering: This stage convers

site investigation, design and approval of lay-out, approval of
drawings and blue prints preparation of time schedule and
PERT chart, final selection of technology and equipment’s and
detailed estimation of costs.

c. Construction and Erection (Execution and control)

d. Trial runs, commissioning and optimization.

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PROJECT MANAGEMENT-ESE
3. Operation phase:

Post Commissioning stage where project is run for output

or benifits
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Pre-Investment phase

Identification of Project idea /conceptualisation of project

idea/opportunity studies
Following sources can be used to get ideas for new projects.
• Performance of existing industry
• Import-export statistics
• Data from various sources
• Plan outlays and govt. plans
• Analysis of economic & social trends
• Availability of raw material
• Price trend
• Research result
• Identifying unfulfilled needs
• Review of sick units
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PROJECT MANAGEMENT-ESE
2. Pre-feasibility studies

This stage is recommended when project formulation & techno-

economic feasibility study are costly and time consuming.

Should not take more than 3 months.

Investor Can Decide

a. Whether project can be accepted or rejected.
b. Project requires a detailed analysis i.e. feasibility study or
c. Some aspects of the project need to be specially investigates.
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PROJECT MANAGEMENT-ESE
3. Feasibility studies

• Feasibility study is an analysis of how successfully a project can

be completed.

Technical feasibility, market demand, financial feasibility,

economic feasibility, social feasibility and environmental impact
assessment.

• Even if a feasibility study report has covered all aspects, it may

still lead to an incorrect project decision if

a. Project formulation is based on inadequate data.

b. The data is unrealistic,
c. the report has been deliberately tailored to fail acceptance criteria.
d. Unknown or unpredictable factors occur.
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PROJECT MANAGEMENT-ESE

Q. A project is
1. Temporary 2. Unique
3. Repeatable 4. Time specific activity

A  1, 2, 3 and 4 B  1, 2 and 4 only

C  2, 3 and 4 only D  1, 3 and 4 only

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Q. ‘Halo effect’ assumes a person will be

good project manager because he is

A  good in communication

B  good in technical skills

C  adequate in leadership qualities

D  having support of the government

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Q. SWOT Analysis-Strength, weakness,

opportunities, threats is done?

A  After the DPR is prepared

B  After the project is identified

C  To identify the project in start.

D  After the appraisal report is made

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Q. Consider the following phases of project

management.
1. Identification 2. Formulation
3. Appraisal 4. Implementation
Which of the above phases are relevant,
sequentially?
A  1, 2 and 3 only B  1, 2 and 4 only

C  3 and 4 only D  1, 2, 3, and 4

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Q. Statement (I): Project management is essentially the process to plan its

implementation and to pre-determine the period-wise need of resources
including funds and personnel, given the choice of total duration and quality
standards.
Statement (II): Of the four dimensions (not denying that there can be some
more) of a project, viz., scope, cost, time and quality, only any two can be pre-
assigned; others have to abide by these two prescriptions.
 Both statement (I) and statement (II) are individually true; and
A
 statement (II) is the correct explanation of statement (I).

B  Both statement (I) and statement (II) is NOT the correct explanation of
 statement (I)

C  Statement (I) is true; but statement (II) is false

D  Statement (I) is false; but statement (II) is true

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