Module 1

Projects and Operations
Management
Module 1
Contents
• Definition of Project,
• Five phases of project management-
• Project Initiation,
• Project Planning,
• Project Execution,
• Project Monitoring and Controlling,
• Project Closing.
Project
• Defined as a series of related jobs usually directed reward some
major output and requiring a significant period of time to perform
• A Project is a Temporary Endeavor undertaken to create a Unique
Product OR Service
• A contractor building houses
• A firm producing low-volume products supercomputers, locomotives
or linear accelerators
• Design of vehicle
• Implementing new business
Project Characteristics
• Unique in nature
• Have definite objectives (goals) to achieve
• Requires set of resources
• Have a specific time frame for completion with a definite start and
finish
• Involves risk and uncertainty
• Requires cross-functional teams and interdisciplinary approach
Project Performance Dimensions
It is evident that any change in any one of dimensions would affect the other
if the scope is enlarged, project would require more time for completion and
the cost would also go up.
If time is reduced the scope and cost would also be required to be reduced.
any change in cost would be reflected in scope and time.
forth dimension, stakeholder satisfaction, is added to the project
The Project Management Lifecycle
• 1. Initiating
• 2. Planning
• 3. Execute and complete tasks
• 4. Close projects
1. Initiating
• Defines the project.

• Sort out the project goals, scope, and resources of the project
• roles needed on the team
• Clarifying stakeholder’s expectation out of the project,
• The project is aim -achieve (and why) will give the project and team
clear direction
Project Management
• It is planning, directing and controlling resources (people, equipment,
material) to meet the technical, cost, and time constraints of the
project
• Need
• Minimize wasting precious resources
• Helps in reengineering, downsizing or rightsizing
• Strong leadership
• Helps in future projects
Steps in the initiation phase
• Communicating with stakeholders to understand the purpose and
desired outcomes of the project
• Identifying the scope of the project
• Determining SMART goals (specific, measurable, achievable, relevant,
and time-bound)
• Clarifying resources like budget and time constraints
• Confirming team size and roles required
• Determining how often and which stakeholders will be involved
throughout the project
• Compiling a project proposal and project charter
Tools and documents used in the initiation phase
• Project proposal: The project proposal defines a project and outlines key dates,
requirements, and goals
• Project charter: This is a definitive document that describes the project and
main details necessary to reach its goals
• This can include potential risks, benefits, constraints, and key stakeholders
• RACI chart: A RACI chart, lays down the roles and responsibilities of members of
a project team
• Responsible-person is directly in charge of the work
• Accountable-person is responsible for overseeing overall task completion
• Consulted -who should review and sign off on the work before it’s delivered
• Informed-group of people who are informed about the progress and completion
of work
2. Planning
• Determine the steps to actually achieve the project goals—the “how” of
completing a project
• involves calculating and predicting risk, establishing change processes in
place, and outlining communication protocols
• planning phase can include
• Deciding on milestones that lead up to goal completion
• Developing a schedule for tasks and milestones, including time estimates and
potential time buffers
• Establishing change processes
planning phase can include contd
• Determining how and how often to communicate with team

members and stakeholders
• Creating and signing documents such as non-disclosure agreements
(NDAs) or requests for proposal (RFPs)
• Assessing and managing risk by creating a risk register
• Holding a kick-off meeting to start a project
Tools in a planning phase
• Gantt chart: A horizontal bar chart in which members can see what tasks must
be completed in which order and how long each task is expected to take
• Risk register: A chart that lists risks associated with the project, along with
their probability, potential impact, risk level, and mitigation plans
GANTT CHART
• Henry L Gantt (1861 – 1919) around 1917 developed a system of bar charts for
scheduling and reporting progress of a project
• It is a pictorial representation specifying the start and finish time for various tasks
to be performed in a project on a horizontal time-scale
• Each project is broken down to physically identifiable and controllable units,
called the Tasks
• These tasks are indicated by means of a bar, preferably at equi-distance in the
vertical axis and time is plotted in the horizontal axis
RISK REGISTER
• Data/security risk (materials being hacked or stolen)

• Legal risk (litigation or changes in the law that impact the project)
• Catastrophic events (fire, flooding, storm damage)
• Supply chain disruption
3. Execute and complete tasks
• putting plan into action and keeping the team on track
• Tracking and measuring progress, managing quality, mitigating risk, managing
the budget, and using data to make decisions
• Specific steps might include:

• Using tools like GANTT or burndown charts to track progress on tasks
• Responding to risks when they manifest
• Recording costs
• Keeping team members motivated and on task
• Keeping stakeholders informed of progress
• Incorporating changes via change requests
Tools used include:
• Change requests: These are documents used to propose changes to a project’s

scope or goals
• Burndown chart: This chart breaks down tasks on a granular level and visualises
the amount of time remaining
4. Close projects
• will conclude project activities, turn the finished product or service over to its
new owners and assess the things that went well and did not go so well
• Steps in the closing phase can include:
• Conducting retrospectives and take notes of changes you can implement in the
future
• Communicating to stakeholders at the end of the project and providing an impact
report
• Communicating with the new owners of a project
• Creating a project closeout report
• Celebrating the end of the project and your successes
Tools used in the closing phase
• Impact report: This report compiles a series of metrics that showcase how your
project made a difference and is presented to your stakeholders
• Project closeout report: A project closeout report provides a summary of your

project’s accomplishments, and provides key learnings for future project
managers to reference
Project Management Challenges
• Unclear objectives
• Unrealistic schedules
• Over-committed resources
• Unclear or changing priorities
• Poor communication
Factors Influencing Contract Selection
• Complexity of the design
• Low Complexity... Fixed Price
• High Complexity ... Cost Reimbursable
• Risk Assumed by the Contractor
• Low Risk ... Fixed Price
• High Risk ... Cost Reimbursable
Factors Influencing Contract Selection
• Period of Contract ... Rate Changes, Overhead Changes, Technical
Changes
• Competition
• Many bidders may change a cost reimbursable contract to a fixed price. This is
generally more desirable from the customer’s point of view.

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Projects and Operations

• Defines the project.

• Determining how and how often to communicate with team

• Data/security risk (materials being hacked or stolen)

• Specific steps might include:

• Change requests: These are documents used to propose changes to a project’s

• Project closeout report: A project closeout report provides a summary of your

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