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    Concept of Project &

    Project Management

    Under Guidance ofSubmitted by:

    Dr.Alok Kumar Rai AshutoshMishra

    Avinash TiwariAnand PrakashMBA

    Marketing

    FMS-BHU

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    Index

    Introduction

    Characteristic features of Project

    Project management and general

    management: A comparison

    Project Life Cycle

    Phases of Project life cycle

    Real Time Case

    Conclusion

    References

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    Introduction

    Trying to manage a project without project management is liketrying to play a football game without a game plan.- K .Tate

    There is only one consistent feature of modernbusiness and that is change. Organisations are

    constantly required to change what they do & how they

    do it. The most successful organisations are those that

    have become best at changing. World class

    performance is seen to be possible through the

    development of excellent management, one significant

    part of which is the management of projects.

    No single industry or function has a

    monopoly on project management expertise; an

    average manager now spends upwards of 50% of their

    time on projects or project-related issues. Their line

    responsibilities (finance, marketing, design) involve

    them in a variety of day-to-day activities plus long term

    projects. The need for innovation, together with the

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    Characteristic Features of

    Project

    -Project Management Guidebook

    A typology of projects:

    Unique in Nature

    Beneficial changeElement of RiskLimited Resources

    Approved BudgetDefined Timescale

    StrategicStrategic

    SystemsSystems

    2-5 years.High degree of change to customers.

    Highly complex.

    2-5 years.High degree of change to customers.

    Highly complex.

    1-2 years.Medium degree of change to customers.

    Medium complex.

    1-2 years.Medium degree of change to customers.

    Medium complex.

    Up to 1 year.Low degree of change to customers.

    Up to 1 year.Low degree of change to customers.

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    Project Management vs. General

    Management

    Nobody knows how Honda is organized, except that it

    uses lots of project teams and is quite flexible.

    perat onaperat ona

    es of authority fuzzy.

    r changing set of tasks.

    ponsibility for cross functional activities.

    y in project life duration.

    n task is resolution of conflict.

    tains intrinsic uncertainties.

    Authority defined by management struct

    Consistent set of tasks.

    Responsibility limited to their own functio

    Permanent work scenario.

    Main task is optimization.

    Limited set of variables.

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    -Kenichi Ommae

    Project management comprises:

    A set of skills. A suite of tools.

    A series of processes.

    Project Life Cycle

    The life cycle is the only thing that uniquelydistinguishes projects from non-projects.- Patel & Morris (The Role of the Project Life Cycle (Life Span) inProject Management :A literature review by R. Max Wideman)

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    The sequence of phases through which the

    project will evolve is a project life cycle.

    A project life cycle is basically defined by its phases,according to which a project swims through & finally

    reaches to handover stage.

    Phases of Project Life Cycle

    The phases are extremely useful in planning aproject since they provide a framework for budgeting,manpower and resource allocation, and for schedulingproject milestones and project reviews. The method ofdivision of a project into phases may differ somewhatfrom industry to industry, and from product to product.

    There are mainly 4 phases:-

    Project Initiation Project Planning Project Execution Project Closure

    Project Initiation:In this phase a business problem (or opportunity) isidentified and a business case which provides various

    solution options is defined. A feasibility study is thenconducted to investigate the likelihood of each solution

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    option addressing the business problem and a finalrecommended solution is put forward. Once therecommended solution is approved, a project isinitiated to deliver the approved solution.

    Project Planning:

    Plans are only good intentions unless they

    immediately degenerate into hard work.

    -Peter Drucker

    Once the scope of the project has been defined,the

    project enters the detailed planning phase. Thisinvolves the creation of a:

    Project Plan (outlining the activities, tasks,dependencies and timeframes) .

    Resource Plan (listing the labour, equipment andmaterials required) .

    Financial Plan (identifying the labour, equipmentand materials costs) .

    Quality Plan (providing quality targets, assuranceand control measures) .

    Risk Plan (highlighting potential risks and actionstaken to mitigate them) .

    Acceptance Plan (listing the criteria to be met togain customer acceptance) .

    Communications Plan (listing the informationneeded to inform stakeholders) .

    Procurement Plan (identifying products to besourced from external suppliers).

    Project Execution:This phase involves the execution of each activity andtask listed in the Project Plan. While the activities andtasks are being executed, a series of managementprocesses are undertaken to monitor and control the

    deliverables being output by the project. This includes

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    the identification of changes, risks and issues, thereview of deliverable quality and the measurement ofeach deliverable being produced against theacceptance criteria. Once all of the deliverables havebeen produced and the customer has accepted thefinal solution, the project is ready for closure.

    Project Closure:It involves releasing the final deliverables to thecustomer, handing over project documentation,terminating supplier contracts,releasing projectresources and communicating the closure of the projectto all stakeholders. The last remaining step is toundertake a Post Implementation Review toquantify the overall success of the project.

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    Various Project Life Cycle examples are given below,

    -Project management

    -Project management

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    Real Time Case

    Bangalore Metro Rail Project

    Summary of project:Bangalore Metro Rail Projectcomes under the legal body of Bangalore Mass Rapid

    Transit Ltd (BMRTL).

    Chairman: Anil Bajijal, Union Urban DevelopmentSecretary

    Managing Director: Mr. V. Madhu

    Executive Director: Mr. M.S. Nagendra

    (Administration), Mr. Y. Rajendra (Finance)

    Board of Directors: 5 from Central Government, 5

    from State Government.

    Participants: State and Central Governments.

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    Project Initiation

    The project was started in August 2005 and is stillgoing on, which will continue till December 2011 (forphase 1).

    Project Planning

    Routes:East-West (18.1 km) & North-South (14.9 km)CorridorsTotal length of project: 42.3kmsType: Elevated and UndergroundNumber of stations: 41Number Of Commuters Per Day: 820,000Proposed Fare: 1.33-1.66 times the bus fares. Annualescalation fares at 4%

    Cost/Km Underground: Rs 250 croreCost/Km Elevated: Rs 80 crore

    Total cost: Rs 8100crore

    Fund Formula:

    State: Rs 2287 cr

    Centre/Federal: Rs 1831 cr

    Financial Institutions: Rs 3982 cr

    Interest rate: Approx 8.75% for a 15 year term loan,line of credit form insurance companies and provident

    fund agencies comes for 25 years at 9% interest.

    There are several plans in pipeline that will take effect

    once this project is completed i;e

    Tax For Private Vehicles

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    The Metro Rail may substantially ease the traffic on

    some roads. BMRTL has proposed a number of

    measures, including imposing entry tax on privatevehicles and restricting of three-wheelers on certain

    roads.

    Other items include,

    Entry tax on private vehicles on certain roads

    Parking fee substantially hiked on certain roads

    No three-wheelers permitted on certain roads City bus corridors shall not run paralleled to Metro

    corridors

    Intercity buses to terminate at city outskirts

    Public parking will be provided at major Metro

    stations

    Feeder bus services will be provided at Metro

    stations Common ticketing will be introduced for Metro and

    feeder buses

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    Project Execution

    Ground-level preparations for the ambitious metro rail

    project in Bangalore are being made

    with the State Government freezing

    development activity in 247 premises and buildings it

    had tentatively identified for this purpose. The

    government has asked the Bangalore CityCorporation, BDA and other civic bodies to seek a no-

    objection certificate (NoC) from the BMRTL before it

    approves any construction activity.

    Bangalore Metro will have a standard gauge and will

    take cover under the 100-year old Mysore Tramways

    Act, which will require some amendments by the state

    government to suit the present day needs. With this,BMRTL can avoid going to the railway ministry for all

    sanctions.

    Some of the space that has been claimed by

    BMRTL for the project are as follows:

    1. 4,126 sq mt of Central Bus Sand in Majestic.

    2. On MG Road the project will use 14 sq mt

    of Nalli Silks and 25 sq mt of Land Mark building.

    3. 210 sq mt of IOC petrol bunk near Trinity Circle.

    4. Trinity Complex, Megdooth Motors, Police Quarters

    on Ulsoor Road.

    Bangalore Metro

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    5. Part of Govt Kannada Primary School at

    Srirampuram, Govt Urdu School at Chickpet.

    6. 74 sq mt of Bangalore Hospital on RV

    Road.

    7. 4,320 sq mt of Mysore Mills behind Maharaja Mills.

    8. 119,000 sq mt of private industry land on Tumkur

    Road.

    Comparative analysis of Metro rail project with

    Monorail,

    Monorail is very expensive and the return on

    investment [ROI] is very low. Mono Rail system costs Rs

    120 crore per km, against Metro Rails Rs 75 crore per

    km. Metro Rail had a capacity to carry 45,000-50,000

    passengers per hour, while Mono Rail can carry only10,000-12,000 passengers per hour.

    Project Closure

    Phase 1 is expected to go live by December 2011.-www.bmrc.co.in

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    Conclusion

    Public sector BEMLhas been mandated for the supply

    of 150 metro coaches valued at Rs 1,672 crore with a

    provision for supplying 63 more coaches. Supplies of

    the first set will begin in October 2010.

    The companies involved in handling various tasks of

    the project are:-

    Hyderabad-based Navayuga Engineering Ltd.

    Nagarjuna Construction Company Ltd.

    Afcons Infrastructure, Gammon India, Simplex

    Infrastructures and Soma Enterprise.

    Punj Lloyd Ltd.

    The second phase of the project might begin in 2012.

    References:

    Project Management Institute, USA via internet.

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    Practical tools, techniques & MS project scheduling --

    Dick Billows

    Best project management practices -- Dick Billows

    The AMA handbook of Project Management.

    Project Management Harvey Maylor

    www.bing.com