Management Studies: September 2011

Project Management Model

Project management is a new way of thinking about management. It manages complexity and change in a dynamic environment. It makes efficient use of resources for better client satisfaction.

Project management is a systems approach for efficient and effective achievement of project objectives through:

Assignment of total responsibility and accountability to a single project manager from inception to completion.
Coordination across functional lines.
Proper utilization of planning and control tools for better resource use within the constraints of time, cost and quality.

Project management is much like a task force approach to achieve project objectives through better resource use within time, cost and quality constraints with customer focus.

Project Management Model

Project management is an alternative to traditional management. It is planning, implementing and controlling of complex and unique activities through project team to achieve results within constraints with customer satisfaction.

Means, Focus, End in Project Management

Project management consists of knowledge, tools and techniques for managing a project. It utilizes resources efficiently. It achieves project objectives effectively with customer satisfaction.

Project management defines in advance the who, what, when, where and how before the project begins. This is planning. It assembles project team for the project structure. It allocates resources for various activities. This is organizing. It tracks and monitors performance to get feedback to assess how well the project objectives have been achieved. This is controlling. It manages and motivates people to excel. This is leading. It closes the project when the objectives are achieved.

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Construction Project

The construction project is engineering-oriented for construction of buildings, highways, bridges, dams etc. Its components are given in figure;

Components of Construction Project

Physical Space: It is the area of land on which the project will be constructed.
Materials: They are various types of construction and other materials.
Equipment and Tools: They are needed to execute works.
Human Resources: They are the members of the project team.
Finance: It is money to pay bills, employees, labor and other expenses.
Technology: It consists of equipment, skills, methods and systems.

Activities in building construction project consists of:

Digging and constructing foundation.
Construction of walls.
Fixing of doors and windows.
Construction of roof.
Sanitary and electrical fittings.
Boundary walls and paving of walls.

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People in External Environment of Projects

People in external environment consist of people inhabiting areas surrounding the development projects. The considerations for these people by the projects should be:

Effective rehabilitation of people displaced by development projects. Promises should be kept. Compensation should be paid on time.
Providing employment opportunities to local people in the projects especially those displaced by the projects.
Safeguarding safety and health of the people inhabiting in project surroundings.
Protecting the natural environment of the areas surrounding the project so that people can carry on with their own way of life and livelihood.

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People in Internal Environment of the Project

People in internal environment consist of project team led by the project manager. Development projects should effectively carry out human resource management of its project team. The energies and competencies of project personnel should be effectively used. They should be motivated to achieve higher productivity. Conflicts should be effectively managed.

The project manager should pay the following roles for effective human resource management.

Leadership Role: Direct and influence the activities of people in the project.
Information Role: Open communication with project personnel and dissemination of information.
Decisional Role: Make decisions about matters related to acquisition, development, utilization and maintenance of human resources.

Occupational safety and health of the project people also need to be safeguard. Wellness programs should be effectively implemented.

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Development Projects

A project is a unique group of tasks designed to attain specific objectives within the constraints of time, cost and quality through the use of a variety of resources in a dynamic environment.

Development projects are the means for achieving the planned development goals of a country. Their sponsors can be government, donors or society. They can be:

Infrastructure-oriented: They focus on products such as roads, bridges, buildings, irrigation systems, hydro-powers, aerodromes, industries etc.
Process-oriented: They focuses on processes such as research, development, training, technology transfer etc.

Task Environment (Stakeholders) of Project

The another types of environment found in project is task environment. The task environment of a project immediately surrounds the project. It is made up of stakeholders. Their interests are affected by the project. They affect the project activities. Projects can influence task environment. The elements of project's task environment are:

Client: A project is custom-made. It satisfies the needs of a client. The client specifies the project's terms of reference. The client greatly influences the project. The project should be focused on client needs and requirement.
Contractors: A project involves high level of contracting and subcontracting. The greater the complexity, the greater the level of contracting. Turnkey projects are getting important. The contractors influence project progress. Almost 80% of project work is contract based.
Consultants: The project consists of an array of consultants from inception to completion. They exert important influences on project activities in all phases of the project life cycle.
Suppliers: Projects depend on suppliers for procurement of equipment, materials, services and labor. They affect efficiency, quality and schedule of project through delivery timings. Projects should build good relations with suppliers.
Government: the policies, attitudes and facilities by government help or constrain projects. Projects should comply with government regulations and directives. They should be environment-friendly.
Financiers: The financiers of the project can be owners, shareholders, organizations or donors. They affect fund mobilization for the project.
Competitors: Competition is everywhere. The competition for projects is intense.Work can be done almost anywhere. Competitors actions affect the project.
Labor Unions: Unionization is increasing in projects. Labor relations need to be effectively managed by projects. Industrial disputes leading to strikes can adversely affect project progress.

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Internal Environment in Project

Internal environment is located within the project. It is controllable by the project. It provides strength and weakness to the project. The forces in the internal environment consist of:

Project Objectives: Objectives are the desired outcomes or end results of the project. Project activities must be conducted within project objectives. A project must focus on objectives. It ceases to exist when the objectives are achieved.
Constraints: A project operates within the constraints of cost, time and quality performance. They delineate the scope and boundaries of the project.
Structure: A project is a temporary organization. Its structure generally cuts across organizational and departmental lines. It usually has its own management consisting of a project team headed by a project manager. Team members come from various disciplines with varied experiences. Projects must functions within the boundary of their structure.
Resources: A project consists of human and non-human resources. It usually has its own budget. Resource availability sets a limit on project activities.

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Technological Environment of Project

The one of the environment surroundings that influence projects is technological environment. Technology consists of skills, methods, systems and equipment. It includes inventions and innovations. It makes work more efficient.

Technology influences projects by bringing about changes in jobs, skills, life styles, products, production methods and processes. Automation, computerization, robotics, informatics, biotechnology, new materials and artificial intelligence have all influenced projects.

Factors in the technological environment consist of:

Factors in Technology Environment of Project

1. Level of Technology

The level of technology can be appropriate or sophisticated. It can be labor-based or capital-based. The level of technology influences projects.

Labor-based Technology: Human labor is mainly used for the operations.
Capital-based Technology: Machinery is mainly used for operations. Technology is represented by automation, computerization, robotization, etc. The technology can be high, intermediate or low.

2. Pace of Technology Change

Technology is a dynamic force. Its pace of change is accelerating. Projects should adapt t the changing technological forces.

3. Technology Transfer

Sources of technology can be within the organization, within the country or foreign countries. Technology transfer implies technology imported from technologically advanced foreign countries.

Technology transfer can be through:

Globalization: Global companies are the key sources of technology transfer in developing countries. The modality can be contracts, franchising, technical collaboration, joint ventures, subsidiary establishment.
Projects: Turn-key projects based on global bidding serve as a source of technology transfer.
Trade: This consists of sale of equipment or machines by the manufacturer.
Technical Assistance: Bilateral and multilateral donors under technical assistance provide international consultants who bring new technology with them.
Training and Publications: They provide opportunities to learn about new technology.

4. Research and Development (R & D)

R & D is the essence of innovation. Expectations for improved technology are increasing. Customers expect projects for superior quality which are safe, comfortable and environment-friendly.

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