UNIT – I

MEANING & DEFINITION OF PROJECT

A project is a temporary work plan devised to achieve a specific objective within a specified period of time to bring about beneficial change or added value. So, it is an initiative to bring about change in product or services. Its purpose is to perform a task with well defined objectives, schedules and budgets. Each project differs in size, nature, objectives and complexity. Normally a project begins with a clear objectives, generating activities around the specific objectives, integrating bunch of resources (i.e., men, machines, materials and money), that are directed towards the fulfillment of objectives. So, project is accomplished by performing a set of activities.

For example, construction of a house is a project. It consists of many projects like digging of foundation pits, construction of foundations, construction of walls, fixing of doors and windows, fixing of sanitary fittings, wiring etc.

According to Business Dictionary “project is defined as Planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations”.

According to F. L. Harrison, “A project can be defined as a non- repetitive, One – Off undertaking, normally with discrete time, financial & technical performance goals”.

According to Project Management Institute’s Publication, “A guide to the project management Body of Knowledge” A project is defined as, “a temporary endeavor undertaken to create a unique product of service”

According to the British Standard, a project is define as, “ a unique set of coordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters”.

CHARACTERISTICS OF PROJECT

Projects have clear objectives: projects have a clearly-defined objective stated in terms of scope, schedule, and costs.
Projects are realistic: their aims must be achievable, and this means taking account both of requirements and of the financial and human resources available.
Projects are limited in time and space: A project has a definite time limit. It cannot continue forever and are implemented in a specific place and context.
Projects are collective: projects are the product of collective effort. They are run by teams, involve various partners and cater for the needs of others.
Projects are unique: Every project is unique and no two projects are similar.
Single- time activity: No project is often repeated. It will performed only once.
Projects Includes risk and uncertainty: every project is different and they always involve some uncertainty and risk. The degree of risk and uncertainty will depend on how a project has passed through its various life-cycle phases.
Projects require evaluation – the criteria for evaluation need to be established from the beginning
Projects have life-cycle: Project will also be reflected and influenced by the life-cycle phases and to which the success or failure in the project can be ascribed.
Projects involve people, (project manager and project team), not the procedures and techniques, that are critical to accomplishing the project objective.
Customer specific nature: A project is always customer specific. It is the customer who decides upon the product to be produced or services to be offered.
Optimality: A project is always aimed at optimum utilization of resources for the overall development of the organization.
Complexity: A project is a complex set of activities relating to diverted areas. Technology survey, choosing the, appropriate technology, arranging for financial resources, and execution of the project in time contribute to the complexity of the project.
Flexibility: Change and project are synonymous. Always a project witnesses multiples of modifications and changes in its original plans, programmes and budgets.
Response to Environments: Projects take shape in response to environments.

CLASSIFICATION OF PROJECTS

The location, type, technology, size, scope and speed are normally the factors which determine the effort needed in executing a project. Project can be classified under different heads which are as follows:

Personal projects:

obtain an MBA
write a report
plan a wedding
plant a garden
build a house extension

Industrial projects:

construct a building
provide a gas supply to an industrial estate
build a motorway
design a new car

Business projects:

develop a new course
develop a new course
develop a computer system
introduce a new product
prepare an annual report
set up a new office

Projects can be of any size and duration. They can be simple, like planning a party, or complex like launching a space shuttle.

PROJECT CLASSIFICATION:

Projects can be classified under different heads, some of which are explained below.

Based on the Type of Activity:

Under this category, projects can be classified as industrial projects and non- industrial projects. Industrial projects are set up for the production of some goods. Projects like health care projects, educational projects, irrigation projects, soil conservation projects, pollution control projects; highway projects, water supply projects etc. come under the category of non-industrial projects.

Investments in non-industrial projects are made by the Government and the benefits from such projects are enjoyed by the entire society of people. It is difficult to quantify the benefits enjoyed by the society out of non-industrial projects.

Based on the Location of the Project:

Under the category, projects can be classified as national projects and international projects. National projects are those set up within the national boundaries of a country, while international projects are set up in other countries. International projects may be either projects set up by the Government or by the private sector. The following are the major forms of international projects.

_ setting up of fully owned subsidiaries abroad

_ setting up of joint ventures abroad

_ setting up of projects abroad by way of mergers & acquisitions

Based on Project Completion Time

Based on the constraints on project completion time, projects can be classified into two types, viz., normal projects and crash projects. Normal projects are those for which there is no constraint on time. Crash projects are those which are to be completed within a stipulated time, even at the cost of ending up with a higher project cost. For example, construction of canal lining with the condition that the work should be completed before the monsoon starts is a crash project.

Based on Ownership:

Based on ownership, projects can be classified into private sector projects, public sector projects and joint sector projects. A private sector project is one in which the ownership is completely in the hands of the project promoters and investors. Profit maximisation is the prime objective of private sector projects since the investors invest their money in such projects only with the sole idea of earning better returns.

Public sector projects are those that are owned by the state. The evolution and growth of public sector enterprises is the natural consequences of the efforts of Governments for undertaking development in a country. The growth of public sector enterprises varies from country to country. In a country that follows only the system of private enterprises (USA, for example) there is hardly any public sector enterprise except for essential sectors like defense sectors, public utility services etc.

Joint sector projects are those in which the ownership is shared by the Government and by private entrepreneurs. The main consideration for the Government’s investment in joint sector projects is to make use of the managerial talents, entrepreneurial capabilities and marketing skills of the private entrepreneurs. Joint sector offers hope to the private entrepreneurs since the Government shares the investment required for the project.

Based on Size:

Projects can be classified based on the size into three categories, viz., small projects, medium sized projects and large projects. The size is normally expressed in terms of the amount of investment required. The investment limit for the different categories of projects are announced by the Government and this undergoes periodical changes keeping in view the inflation, the decision to offer certain incentives to projects categorized as ‘small’ scale projects etc.

As per the directives of the Govt. of India, projects with investment on plant and machinery up to Rs. 1 crore are categorized as ‘small scale projects’ while those with investment in plant and machinery above Rs. 100 crores are categorized as ‘large scale projects’. Projects with investment limit between these two categories are ‘medium scale projects’.

A successful project is one which:

has been finished on time
is within its cost budget
performs to a technical/performance standard which satisfies the end user.

Project Life Cycle

A project life cycle is a logical sequence of activities that are performed to achieve project objectives or goals. It consists of the following five stages:

The project manager and project team have one shared goal: to carry out the work of the project for the purpose of meeting the project’s objectives. Every project has a beginning, a middle period during which activities move the project toward completion, and an ending (either successful or unsuccessful). A standard project typically has the following four major phases (each with its own agenda of tasks and issues): initiation, planning, implementation, and closure. Taken together, these phases represent the path a project takes from the beginning to its end and are generally referred to as the project “life cycle.”

Initiation Phase : This phase includes initial preparation of all documentation necessary to support the project such as., policies, procedures, job description, budget and funding papers, letters etc. Thus the definition phase represents a beginning-to-end thinking through the project but does not accomplish the project in and of itself. The project definition produces a plainly written, unambiguous description of the project in sufficient detail to support a proposal or request the customer for undertaking the overall project. This phase includes following activities:

Preparing of the detailed plans required to support the project.
Estimation of realistic cost, schedule and performance requirements
Spotting out those areas of the project where high risk and uncertainty exist.
Defining, interfacing and of project activities.
Ascertaining other necessary sub-systems of the projects.

Planning and organising phase:

In this phase, the detailed plans are prepared and tasks are identified, with appropriate milestones, budgets and resources. Planning consists of defining all the works required to be carried out so that all the project participants will understand their role in the project team and carry out the work assigned to them.

Some organisation however, prepares documents such as project execution plan to mark this phase.

Organizing is the process of defining and analysing the activities of the enterprise, grouping the activities into distinct areas / departments and establishing the authority-responsibility relationships among them. It also involves organizing the resources required for the accomplishment of organizational objectives. In project environment, organizing consists of the following sub processes. Following activities are of major concern in this phase:

Defining the scope of the project in terms of the product/services to be delivered by the project.
Forecasting and estimating the resources (men, material, money, machines etc.,) required for the project.
Arriving at an appropriate organisational structure to implement the project.
Identification and management of the resources in order to facilitate the production processes such as inventory, supplies, labour, funds, etc.
Preparing detailed cost estimates for all the activities.
Determining the required resources for all the activities.

Execution & controlling of the project:

This is the third phase where the project plan is carried out. It is being concerned with operations; it integrates the project’s product or services into existing organizational system. Project management activity during this phase involves:

Keeping people informed about progress of the project, ensuring project priorities are understood and translated into which activities are "in progress."
Monitoring the environment, anticipating problems and taking action to counter any issues affecting the project scope, schedule or budget.
Reviewing change requests with the project team and recommending whether they will be done within the project or not.
Evaluation of the technical, social and economic sufficiency of the project to meet actual operating conditions.

Terminate the project:

The project process is completed and documented, and the finished product is transferred to the care and control of the owner. In this phase project will shut down in a controlled manner. The major activities of the project in this phase are:

Demonstrate that the project is complete
Arranging relevant project files in proper form so that they can be referred for future projects.
Assess the success of the project
Ensuring that project accounts are maintained up-to-date amply audited and closed out.
Assisting project staff in being reassigned.
Discharging any outstanding dues on behalf of project.
Collecting dues of fees or payments from the clientele and clearing the account.
Support departing staff

This phase is quite relevant under multi-project environment. When one project gets completed the resources can be put to use in other subsequent project. This final phase has an impact on other on-going projects with regard to priority identification.

Project Deliverables

Projects create deliverables, which are simply the results of the project or the processes in the project. That means a deliverable can be something as big as the objective of the project itself or the reporting that is part of the larger project.

Another way to put that is that there are inputs and outputs in any type of project. That being what you put into the project, such as data, resources, etc., and then what comes out, which are the deliverables. Again, those deliverables can be a product or service and it can also be the documentation that is part of the project closure to show that the project is complete and everything has been signed off.

There is a distinction between project and product deliverables. Project deliverables are such outputs as the project plans, project reports and even meeting minutes. Product deliverables, on the other hand, could be hardware, software, mobile applications, contracts, or even test assessment results.

The deliverables that clients and stakeholders expect at the end of the project are the product or service, of course, but there is also paperwork, as noted. These documents, when completed, are deliverables that clients and stakeholders need in order to evaluate the progress or completion of the project.

This paperwork can include:

Signed contracts
Finalized expense reports
Other types of project reports which show how work is proceeding versus project plan estimations

Deliverables can vary according to the project’s specifications and the stakeholders’ equirements. But all clients and stakeholders want deliverables that thoroughly wrap up the project at its closure and measure performance against expectations throughout the project.

Project managers’ reports are the means by which these types of deliverables are presented to clients and stakeholders. Different stakeholders have different needs, so flexibility and customization is import for effective reporting. In order to meet their needs, a project management software must be able to filter the many data inputs to deliver the proper output.

SCOPE OF WORK AND MILESTONE

A scope of work (SOW) document is an agreement on the work you’re going to perform on the project.

The document includes:

Deliverables: This is what your project delivers, of course. Whether it’s a product or a service, it’s the reason you’re executing the project for your customer, stakeholder or sponsor. Whatever that deliverable is, and it can be some sort of document or report, software, product, build (or all of the above), you need to have each item clearly identified here.
Timeline: Think of a timeline as a road leading from the start of a project to its end. It’s a section of the document that delineates the major phases across the schedule of the project’s duration. It should also mark the points in the project when your deliverables are ready. As you can guess, it’s essential to scoping out the overall plan of any project. This is best presented visually, like a rolled-up Gantt chart plan, so the stakeholders can see the high level timeline.
Milestones: Projects can be very long and complex, which is why they’re laid out over a timeline and broken down into more manageable parts called tasks. Larger phases of the project are marked by what is called a milestone. It’s a way to help you monitor the progress of the project to make sure it’s adhering to your planned schedule. Define your key milestones in the Scope of Work document, including project kickoffs, meetings, hand offs, etc.
Reports: You’ll be generating these throughout the project, delivered to either you team or customer, stakeholder or sponsor. They’re a formal record of the progress of your project, but they’re also a means of communication beyond whether the project’s on schedule or not. Depending on how you customize them, there’s a wealth of data that can serve a number of different audiences. Define how you’ll be reporting on the project and when the stakeholders can be expecting them and from whom.

Scope of Work Example

To understand a scope of work, let’s create a hypothetical project, nothing too complex but important none the less. A wedding is a project, and depending on the bridezilla (or groomzilla), it could be bigger and more complicated than building a highway or an airport. So, let’s just take one aspect of that larger project, the wedding invitations, and break this down into a scope of work. I’ll outline the deliverables, timeline, milestones and reports in this scope of work example.

Deliverables

Invite List
Addresses of Attendees
Invites
Addressed Envelopes
Stamps

Timeline

Jan. 1 Decided on invite list
Feb. 1 Have addresses collected of attendees
March 1 Pick invitation style and have printed
April 1 Address and mail invites
May 1 Get final count of guests
June 1 Wedding

Milestones

Selection of guest and collection of addresses
Mailing of invitations
Final count of attendees

Reports

Check on status of address collection
Stay in touch with printer for progress on invitations
Check RSVPs against invitation list

Project Management

Project management is the discipline of managing all the different resources and aspects of the project in such a way that the resources will deliver all the output that is required to complete the project within the defined scope, time, and cost constraints. These are agreed upon in the project initiation stage and by the time the project begins all stakeholders and team members will have a clear understanding and acceptance of the process, methodology and expected outcomes. A good project manager utilizes a formal process that can be audited and used as a blue print for the project, and this is achieved by employing a project management methodology.

Project management is the application of knowledge, skills and techniques to execute projects effectively and efficiently. It’s a strategic competency for organizations, enabling them to tie project results to business goals — and thus, better compete in their markets. The purpose of project management is to achieve successful project completion with the resources available.

It has always been practiced informally, but began to emerge as a distinct profession in the mid-20th century. PMI’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide) identifies its recurring elements:

Project management processes fall into five groups such as initiating, planning, executing, monitoring, controlling and closing.

Advantages of Project Management

Aligning the project with the strategic goals of the organization
Reducing the project budget by effective planning and management of resources
Focusing on performance of employees by providing them training
Increasing the project success ratio
Ensuring that the pre-stated objectives are achieved
Improving the coordination among resources used in a project
Reducing the risk associated with the project
Delivering predictable as well as desired results
Improving the issue management
Reducing the project cycle time

Principles of Project Management

Principle 1: Figure out what business you are in, and then mind your own business

Principle 2: Understand the customer’s requirements and put them under version control

Principle 3: Prepare a reasonable plan

Principle 4: Build a good team with clear ownership

Principle 5: Track project status and give it wide visibility

Principle 6: Use baseline controls

Principle 7: Write Important Stuff Down, Share it, and Save it

Principle 8: If it hasn't been tested, it doesn't work

Principle 9: Ensure Customer Satisfaction

Principle 10: Be relentlessly pro-active

Knowledge Areas of Project Management

Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management

TOOLS AND TECHNIQUES FOR PROJECT MANAGEMENT

There are several tools and techniques which would contribute significantly towards effective project management these can be broadly grouped under the following heads:

1. Project selection techniques

(a) Cost benefit analysis and

(b) Risk and sensitivity analysis

2. Project execution planning techniques

(a) Work breakdown structure (WBS)

(b) Project execution plan (PEP)

(d) Project management manual

3. Project scheduling and coordinating techniques

(a) Bar charts

(b) Life cycle curves

(d) Networking techniques (PERT/CPM)

4. Project monitoring and progressing techniques

(a) Progress measurement technique (PROMPT)

(b) Performance monitoring technique (PERMIT) and

5. Project cost and productivity control techniques

(a) Productivity budgeting techniques

(b) Value engineering (VE) and

6. Project communication and clean-up techniques

(a) Control room and

(b) Computerized information systems

Project Management Team

We have mentioned the project team several times in the foregoing sections. Effective team members have some characteristics in common. Only the first of these is usually taken into account:

1. They must be technically competent. This is so obvious that it is often the only criterion applied. While the functional departments will always remain the ultimate source of technological problem solving for the project, it requires a technically competent person to know exactly when additional technical knowledge may be required by the project.

2. Senior members of the project team must be politically sensitive. It is rarely possible to complete a project of reasonable size and complexity without incurring problems that require aid from the upper echelons of executive row; that is, from a project champion Getting such aid depends on the PM’s ability to proceed without threatening, insulting, or bullying important people in the functional groups. To ensure cooperation and assistance, there is a delicate balance of power that must be maintained between the project and the functional departments, and between one project and others.

3. Members of the project team need a strong problem orientation. This characteristic will be explained in more detail shortly. For now, take the phrase to mean that the team’s members should be concerned about solving any problems posed by the project, not merely about those sub problems that concern their individual academic or technical training.

4. Team members need a strong goal orientation. Projects are uncomfortable environments for people with a 9 to 5 view of work. In particular, neither project teams nor PMs can succeed if their focus is on activity rather than results. On the other hand, the project will not be successful if the project team dies from overwork. One project team member of our acquaintance was bemoaning a series of 60+ hour weeks. “They told me that I would work about 50 hours in an average week. I’ve been on this project almost 18 months, and we haven’t had an average week yet.”

5. Project workers need high self-esteem. Project members who hide mistakes and failure are disasters waiting to happen. Team members must be sufficiently self-confident and have sufficient trust in their fellow team members (Lencioni, 2002) that they can immediately acknowledge their own errors and point out problems caused by the errors of others. PMs should note that “shooting the messenger” who brings bad news will instantly stop the flow of negative information. The result is that the golden rule we stated above, “Never let the boss be surprised,” will be violated, too.

PROJECT MANAGER

A project manager is often a client representative and has to determine and implement the exact needs of the client based on knowledge of the firm he/she is representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is essential in ensuring that the key issues of cost, time, quality and above all client satisfaction, can be realized. Any type of product or service - buildings, vehicles, electronics, computer software, financial services, etc. - may have its implementation overseen by a project manager and its operations by a product manager.

The project manager needs to be an HRD expert who can motivate the workforce by training and promoting leadership among them, and boost their morale by incentives and promotions. He has to be conversant with the principles of organisation, and be a good judge of people who has the ability to place the right man in the right job at the right time.

Functions of Project Manager

The functions are as follows:

1. Developing a unique product or process and manage change.

2. Identification of the need for project.

3. Finding different alternatives of the project.

4. Developing a plan of action.

5. Training operators.

6. Establishment of quality assurance cell to control quality.

7. Incorporation of changes as and when needed while implementing project.

8. Selection of suitable equipment.

9. Finding suitable financial resources.

10. Assessment of alternatives and obtaining approval to proceed.

11. Measuring performance of the project.

12. Transfer of material, funds and settling all accounts after completion of project.

13. Monitoring progress and reporting to higher authorities.

14. Closing all records, submission of final report and transfer of responsibility after completion of specified project.

The Attributes of Successful Project Management

The effectiveness of project management is critical in assuring the success of any substantial undertaking. Areas of responsibility for the project manager include planning, control and implementation. A project should be initiated with a feasibility study, where a clear definition of the goals and ultimate benefits need to be established. Senior managers' support for projects is important so as to ensure authority and direction throughout the project's progress and, also to ensure that the goals of the organization are effectively achieved within this process. The particular form of support given can influence the degree of resistance the project encounters.

Knowledge, skills, goals and personalities are all factors that need to be considered within project management. The project manager and his/her team should collectively possess the necessary and requisite interpersonal and technical skills to facilitate control over the various activities within the project.

The stages of implementation must be articulated at the project planning phase. Disaggregating the stages at its early point assists in the successful development of the project by providing a number of milestones that need to be accomplished for completion. In addition to planning, the control of the evolving project is also prerequisite to success. Control requires adequate monitoring and feedback mechanisms by which senior and project managers can compare progress against initial projections at each stage of the project. Monitoring and feedback also enables the project manager to anticipate problems (e.g.: the knock-on effects of late start or finish times) and therefore take pre-emptive corrective measures for the benefit of the project overall.

Projects normally involve the introduction of a new system of some kind and, in almost all cases, new methods and ways of doing things. These impacts upon the work of others: the "users". User consultation is an important factor in the success of projects and, indeed, the degree of user involvement can influence the extent of support for the project or its implementation plan. A essential quality of the project manager is that of being a good communicator, not just within the project team itself, but with the rest of the organization and outside bodies as well (the users may be internal or external).

In recent years more and more activities have been tackled on a project basis. Project teams and a project management approach have become common in most organizations. The basic approaches to project management remain the same regardless of the type of project being considered. You may find it useful to consider projects in relation to a number of major classifications:

a) Engineering and construction

The projects are concerned with producing a clear physical output, such as roads, bridges or buildings. The requirements of a project team are well defined in terms of skills and background, as are the main procedures that have to be undergone. Most of the problems which may confront the project team are likely to have occurred before and therefore their solution may be based upon past experiences.

b) Introduction of new systems

These projects would include computerisation projects and the introduction of new systems and procedures including financial systems. The nature and constitution of a project team may vary with the subject of the project, as different skills may be required and different end-users may be involved. Major projects involving a systems analysis approach may incorporate clearly defined procedures within an organisation.

c) Responding to deadlines and change

An example of responding to a deadline is the preparation of an annual report by a specified date. An increasing number of projects are concerned with designing organizational or environmental changes, involving developing new products and services.

PROJECT ORGANIZATION

To manage a project, a company or authority has to set up a project organization, which can supply the resources for the project and service it during its life cycle. It refers to the differentiation and integration of activities and authority roles and relationships. While there are various types of organizations used today. Followings are the most prominent form of organizations:

Functional Organization Structure/ Hybrid project:

Prior to about 1960 most corporate organizations favoured a functional organization structure, also called a traditional organizational structure. In this structure teams or groups are created based on common function in a bottom-up manner. This type of organization consists of specialist or functional departments each with their own departmental manager responsible to one or more directors. Such an organization is ideal for routine operations where there is little variation of the end product. Functional organizations are usually found where items are mass produced. Each department is expert at its function and the interrelationship between them is well established.

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Advantage:

No structural change: Projects are handled within the existing organizational structure.
Flexibility in the use of staff: specialists within various functional departments can be temporarily assigned to the project and then return to their normal duties within their functional departments.
In depth expertise: the project can benefit from the use of experts coming from the functional units. Hence it gains potentials of the unit without duplication of scarce resources, maximizing their utilization.

Disadvantages:

Lack of focus: Because each functional unit has its own routine work and responsibilities, the project may be given low priority.
Poor integration: Specialists in functional units may be concerned only with their part of the project and not with what is best for the total project.
This method does not work very effectively when used in facilitating complex projects.
Slow response: Functional units cannot respond to fast changes in customer demands or the product since only the top level management has broad knowledge and the decision making authority.

Divisional Organisation structure:

Under this form of project organization, a separate division or team is set up to implement the project, where each division corresponds to the end product or services provided by the organization. Each division has own set of functional units like research, manufacturing, marketing etc. and is completely self-contained. Headed by the project manager, this division has its complement of personnel over whom the project manager has full line authority. He recruits necessary people from both within and outside the organization. In effect, this form of organization implies the creation of a separate goal- oriented division of the company, with its own functional departments. It is less hierarchical and formed by $C:\Documents and Settings\Administrator\My Documents\My Pictures\divisional-structure.gif$

Advantages:

Very strong form of project organization.
The divisional project organization facilitates the process of planning and control.
Fast: Full attention to the project makes it possible to complete the project as soon as possible.
Cohesiveness: team members share a common goal which results in a high level of motivation and togetherness.
Integration: It brings about better integration of efforts.
Coordination: It helps in departmental coordination.

Disadvantages:

Inefficient of resources: This form of organization, however, may entail an inefficient use of the resources of the firm.
Internal strike: A dispute can develop between the project team and the parent organization.
Limited Technological Expertise: Technical expertise is limited to the talents and experience of the specialists assigned to the project.
Difficult product integration: when organization produces multiple products which might be used together or are part of a larger product, the integration task becomes challenging since there is little coordination between the divisions.
Expensive for small projects

Matrix Organization Structure:

Matrix Organization is a project management structure that evolved from the recognition of inherent flaws in the Functional Organization and Divisional Organization structures. Created in the 1970s, this structure combined the best components of these two structures.

A Matrix structure organisation contains teams of people created from various sections of the business. These teams will be created for the purposes of a specific project and will be led by a project manager. Often the team will only exist for the duration of the project and matrix structures are usually deployed to develop new products and services. In a matrix organization, each project manager reports directly to the vice president and the general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager.

Different Matrix Forms:

Functional (also Weak or Lightweight) Form

Matrices in which the authority of the functional manager predominates and the project manager has indirect authority

Balance (or Middleweight) Form

The traditional matrix form in which the project manager sets the overall plan and the functional manager determines how work to be done

Strong (Heavyweight) Form

Resembles a project team in which the project manager has broader control and functional departments act as subcontractors to the project.

Typical Matrix organization

Advantages:

Efficient: Resources can be shared with multiple projects as well as within functional units.
Strong Project Focus: As compared to functional project setup, this enables a strong project focus by having a formally designated project manager.
Flexibility: Matrix structure makes possible the flexible utilization of resources of resources and expertise within the organization since the boundaries between the project team and the functional units are not so strict.
Because key people can be shared, the project cost is minimized.
Stress is distributed among the team.
Efficient use of support system.

Disadvantages:

A conflict of loyalty between line managers and project managers over the allocation of resources.
Projects can be difficult to monitor if teams have a lot of independence.
Costs can be increased if more managers (i.e. project managers) are created through the use of project teams
Slow: Decision making becomes a slow process when various functional departments and project groups have to come to an agreement.
Infighting: In matrix form, resources, people and equipment are being shared by various projects and functional tasks, conflict and competition is unavoidable.

Importance of project Management:

Project management provides techniques for making trade-offs between conflicting goals and enterprise priorities besides experiencing a better control and coordination. It also helps in reducing developmental time lowering costs, and produces higher order results. Other major benefits of project management techniques include the following:

Better efficiency in delivering services: Project management provides a “roadmap” that is easily followed and leads to project completion.
Application and use of set tools and Techniques: It provides a set of tools and techniques at will set out possible mechanisms for the management of project through the various stages of its life-cycle.
Better Flexibility: It is one of the greatest benefits of project management is that it allows for flexibility. Project management allows mapping out the strategy. For many small-to-midsize companies, this alone is worth the price of admission.
Reducing risks: The project management team can identify the potential risks, take their time to rectify them and help the company save valuable resources.
Highlight the role of project Manager: It is useful to highlight the role of project manager in the organization and management of people.
Performance Evaluation: It is useful to specify world class performance and to take generic lesson from these.
Excellent product quality: The project management plans the allocated budget, resources and testing methods that keep the pace of production high, both qualitatively and quantitatively.
Fast track: Bring a new product to the market quickly before your competitors.
Project office: Offers a centre for project management excellence.

It can be concluded that project management as a management discipline, individual competency, organizational culture and a critical source of multiple advantages. The specialized role of project management in bringing agility to organizations that want to innovate, whether it is for new products or new initiatives, cannot be ignored.

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Tuesday, July 20, 2021