INTRODUCTION
A project consists of a set of activities that are interrelated in a logical sequence and they need to be executed in a certain order for timely completion of the project. Most realistic projects undertaken by organizations such as Infosys, Honda Motors, or the Indian Defense Department, etc., are large and complex. Delhi Development Authority (DDA) building residential houses, for example, must complete thousands of activities costing crores of rupees. Indian Space Research Organization (ISRO) must inspect countless components before it launches a satellite. Almost every industry worries about how to manage similar large scale, complicated projects effectively. It is a difficult problem, and the stakes are high. Crores of rupees in cost overruns have been wasted due to poor planning of projects. Unnecessary delays have occurred due to poor scheduling. How can such problems be solved? The tools and techniques of Project Management (PM) can provide a solution to such problems. PM is concerned with planning, scheduling, monitoring and control of the projects. It aims at timely and cost effective completion of the projects and, to achieve this objective, it performs functions in phases which are discussed in the next section.
PHASES OF PROJECT MANAGEMENT
Effective management of a project requires appropriate actions to be taken by the management at different stages of the project, from its planning to completion. Thus, project management involves the following phases:
1. Planning
2. Scheduling
3. Monitoring and Control
Planning
Planning is essential for economical and timely execution of projects. The various stages of the planning process are:
Pre-planning
The planning undertaken before the decision has been made to take up the project is called pre-planning. This phase includes formulation of the project, assessment about its necessity, financial and/or economic analysis and decision making about whether or not to take up the project.
Detailed Planning
Once the decision has been made to take up the project, detailed planning is carried out, which includes the following phases:
(a) Preparation of detailed designs and detailed working plans.
(b) Preparation of specifications, detailed bill of quantities, etc.
(c) Working out of plan-of-action for carrying out the work. This involves the following:
(i) Project breakdown, i.e., breaking up the project into small component jobs.
(ii) Establishment of sequence of various operations and their interrelationship.