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PROJECT SELECTION
TEXTBOOK T1 CHAPTER 2
TOPICS
NEED FOR STRATEGY
ROLE OF PROJECT MANAGER
STRATEGIC MANAGEMENT PROCESS
PROJECT PORTFOLIO MANAGEMENT
PROJECT SELECTION MODEL
MANAGING PORTFOLIO SYSTEM
ROLE OF PROJECT
MANAGER
UNDERSTAND ORGANIZATIONS MISSION AND
PRODUCT/ SERVICE
ENGAGING IN PERFECTION FOR JOBS WHICH
ARE NOT IN PRIORITY
MISSION
SET LONG TERM GOALS AND OBJECTIVES
ANALYZE AND FORMULATE STRATEGIES TO
REACH OBJECTIVES
IMPLEMENTATION OF STRATEGIES THROUGH
PROJECTS
MISSION STATEMENTS
MISSION STATEMENTS IDENTIFY THE SCOPE
EXAMPLES
PROVIDE HOSPITAL DESIGN SERVICES
PROVIDE VOICE/DATA DESIGN SERVICES
PROVIDE INFORMATION TECHNOLOGY
SERVICES
INCREASE SHARE HOLDER VALUE
PROVIDE HIGH VALUE PRODUCTS TO OUR
CUSTOMERS
TRANSLATE
MISSION
INTO
SPECIFIC, CONCRETE, MEASURABLE TERMS
OBJECTIVES COVER MARKETS, PRODUCTS,
INNOVATION,
PRODUCTIVITY,
QUALITY,
FINANCE, PROFITABILITY, EMPLOYEES AND
CONSUMERS
SMART
GOALS (SPECIFIC, MEASURABLE,
ASSIGNABLE, REALISTIC AND TIME BOUND)
OBJECTIVE
MEASURABLE: ESTABLISH A MEASURABLE
INDICATORS OF PROGRESS
ASSIGNABLE:
MAKE
THE
OBJECTIVE
ASSIGNABLE
TO
ONE
PERSON
FOR
COMPLETION
REALISTIC: STATE WHAT CAN REALISTICALLY
BE DONE WITH AVAILABLE RESOURCES
TIME RELATED: STATE WHEN THE OBJECTIVE
CAN BE ACHIEVED
AND
EVALUATING
ALTERNATIVES THAT SUPPORT OBJECTIVES
SELECT THE BEST ALTERNATIVE
ASSESSMENT OF INTERNAL AND EXTERNAL
ENVIRONMENTS
SWOT ANALYSIS
OBJECTIVES
OR
TASKS
ASSIGNED
TO
DIVISIONS, DEPARTMENTS OR INDIVIDUALS
REQUIRES
ACTION
AND
COMPLETING TASKS
ALLOCATION OF RESOURCES: FUNDS, PEOPLE,
TECHNOLOGICAL SKILLS, MANAGEMENT TALENTS
AND EQUIPMENT
REQUIRES FORMAL AND INFORMAL ORGANIZATION
THAT COMPLEMENTS AND SUPPORTS STRATEGIES
AND PROJECTS
PLANNING AND CONTROL
MOTIVATING PROJECT CONTRIBUTORS
PRIORITIZING PROJECTS
ORGANIZATION POLITICS
POLITICS EXIST IN EVERY ORGANIZATION
INFLUENCES FUNDING AND HIGH PRIORITY
PROJECT SELECTION MAY NOT BE ON FACTS AND
BENEFITS
BUILDS
DISCIPLINE
INTO
PROJECT
SELECTION
PROCESS
LINKS PROJECT SELECTION TO STRATEGIC METRICS
PRIORITIZE PROJECT PROPOSALS
ALLOCATE RESOURCES TO PROJECTS THAT ALIGN
WITH STRATEGIC DIRECTION
BALANCES RISK ACROSS ALL PROJECTS
IMPROVES
COMMUNICATION
AND
SUPPORTS
AGREEMENT ON PROJECT GOALS
JUSTIFIES KILLING PROJECTS THAT DO NOT
SUPPORT ORGANIZATION STRATEGY
TYPES OF PROJECTS
RISK LEVEL, HIGH COST, KEY RESOURCES, NON-
PEARLS:
ADVANCES
ADVANCES
REVOLUTIONARY
USING
PROVEN
COMMERCIAL
TECHNICAL
OYESTER:
TECHNOLOGICAL BREAKTHROUGHS
WITH HIGH COMMERCIAL PAYOFFS
NEW KINDS OF METAL ALLOYS
HIGH
SUCCES
S
BREAD AND
BUTTER
PEARL
LOW
SUCCESS
WHITE ELEPHANT
OYESTER
LOW COMMERCIAL
PAY-OFF
HIGH
COMMERCIAL
PAY-OFF
INFRASTRUCTURE PROJECT
PHASES
PRE-FEASIBILITY PHASE
EVALUATION PHASE
TECHNOLOGY SELECTION AND ENGINEERING
PHASE
CONTRACTING AND PROCUREMENT PHASE
CONSTRUCTION PHASE
START UP PHASES
EVALUATION PHASE
INADEQUATE PROJECT STUDY
UNDERSTATEMENT OF SCOPE AND UNDERSTANDING OF
OR
OUTDATED
TECHNOLOGY
ACQUISITION
TECHNOLOGICAL
TIE-UPS
MORE
ON
CONSIDERATION OF CREDIT OFFERED BY THE
SUPPLIER RATHER THAN OF TECHNICAL
NECESSITIES
STARTING OF DETAIL ENGINEERING AND
PREPARATION
OF
PROCUREMENT
LISTS
BEFORE FINALIZING PROCESS FLOW SHEETS
AND LINE DIAGRAMS
SPECIFICATIONS
ABSENCE OF AN ENGINEERING SCHEDULE
LEADING TO DELAY IN THE RELEASE OF
DRAWINGS FOR PROCUREMENT
INEFFICIENT PROCEDURES FOR SCRUTINY,
APPROVAL
AND
TRANSMITTANCE
OF
DRAWINGS AND SPECIFICATIONS
fabricators/suppliers
and
contractors
and
preferential
treatment
to
public
sector
enterprises, on the basis of Government s
guidelines
Delayed placement of orders
The practice of accepting of lowest quotations
of the vendor quality and/or contractors
competency
Lack
CONSTRUCTION PHASE
Very early starting of construction activities,
Belated clearances
Indecisions and delayed decision making
Bad quality control
Lack of micro-level schedule control
with
START-UP PHASES
DELAY IN INPUTS LIKE SPECIAL TOOLS, MANUALS,
IN ALL PHASES
WEAK PROJECT TEAM
INDECISION
LACK OF MANAGERIAL TALENTS
DISCONTINUITY OF EFFICENT TEAM MEMBERS
ABSENCE OF PERSONAL ACCOUNTABILITY
AND COMMITMENT
UNDUE JOB SECURITY
INDISCIPLINE
AND
RESULTANT
TIME VALUE OF
MONEY
INADEQUATE
CONTROLS
AND
IGNORING
OF
WARNING SIGNALS
POOR QUALITY AWARENESS
UNWARRANTED CBI ENQUIRIES NOT OREINTED
TOWARDS PROJECT OBJECTIVES AND CONSEQUENT
WORKING ATMOSPHERE OF FEAR WHICH DEPRESSES
THE SPIRITS OF WELL-MEANING DECISION MAKERS
GENERAL IGNORANCE AND NON-IMPLEMENTATION
OF SOUND PROJECT MANAGEMENT PRACTICES
PROJECT CLEARANCES
TECHNICAL REQUIREMENTS
STATUTORY REGULATED BY GOVERNMENT
ESSENTIALS OF GOVERNMENT POLICIES, PROCEDURES
AND
REGULATIONS
CLEARANCES
ALL
CONCERNING
VARIOUS
REGULATORY
REQUIREMENTS CONCERNING
CLEARANCES AND LICENSING WOULD KEEP CHANGING
FROM TIME TO TIME, ACCORDING TO CENTRAL
GOVERNMENTS INDUSTRIAL AND TRADE POLICIES
SOIL INVESTIGATION
REPORT
FOR
DESIGNING
FOUNDATION
AND
TALL
STRUCTURES : SOIL MECHANICS, ROCK MECHANICS,
FOUNDATION ENGINEERING, FIELD INVESTIGATIONS,
FIELD TESTINGS
DONE BY CENTRAL SOIL MECHANICS RESEARCH
INSTITUTE, DELHI
ROAD RESEARCH INSTITUTE, DELHI
CENTRAL BUILDING RESEARCH INSTITUTE, ROORKEE
SOIL RESEARCH STATIONS OF STATE GOVERNMENTS
ORGANIZED
SMALL
PRIVATE
PROFESSIONAL
INSTITUTIONS
MONOPOLIES AND
RESTRICITIVE TRADE
PRACTICES ACT
AFTER
LIBERALISATION,
ADVANCE
CLEARANCES HAS BEEN DONE AWAY WITH
EMPHASIS
ON
CONTROLLING
AND
REGULATING MONOPOLISTIC, RESTRICTIVE
AND UNFAIR TRADE PRACTICES
LICENSE
PROJECTS WITHIN 40 KM PERIPHERY OF THE
STANDARD URBAN AREA LIMITS OF A CITY
HAVING A POPULATION OF MORE THAN 10 LAKH
REQUIRES INDUSTRIAL LICENSE
SETTING UP NEW UNITS OR TAKE OVER OF
EXISTING UNITS, MANUFACTURE OF NEW
ARTICLE IN AN EXISTING SET UP, CHANGING THE
LOCATION
OF
AN
EXISTING
INDUSTRIAL
UNDERTAKINGS REQUIRE LICENSE
APPROVAL OF FOREIGN
COLLABORATION
FOREIGN INVESTMENT
FOREIGN TECHNOLOGY AGREEMENT
AUTOMATIC
APPROVAL
FOR
IMPORT
OF
TECHNOLOGY IN HIGH PRIORITY INDUSTRIES,
PROVIDED ROYALTY PAYMENT DOES NOT EXCEED
5% OF DOMESTIC SALES AND 8% OF EXPORTS
SUBJECT TO TOTAL 8% OF SALES OVER 10 YEARS
FROM THE DATE OF AGREEMENT OR 7 YEARS
FROM THE COMMENCEMENT OF PRODUCTION
LUMPSUM PAYMENT
TECHNICAL KNOW HOW FEES
DESIGN, ENGINEERING, CONSULTANCY ETC.
USE OF PATENTS, BRAND NAMES, TRADE
MARKS
RECURRING ANNUAL ROYALTY
AS A PERCENTAGE OF THE EX-FACTORY VALUE
OF ANNUAL PRODUCTION, AFTER DEDUCTING
THE ALL-IN TOTAL LANDED COST OF IMPORTED
COMPONENTS
AND
THE
STANDARD
BOUGHTOUT COMPONENTS, IF ANY
IMPORT OF CAPITAL
GOODS
COMPRISING PLANT, MACHINERY AND
EQUIPMENT
CAPITAL GOODS IMPORT POLICY:
PROHIBITED ITEMS, RESTRICTIVE ITEMS
APPROVAL FOR SETTING UP EXPORT
ORIENTED UNITS
ENVIRONMENTAL / POLLUTION
CONTROL CLEARANCES
WHILE
UNDUE
OBSESSION
WITH
ENVIRONMENT
WILL
IMPEDE
OUR
DEVELOPMENT,
UNSCRUPULOUS
PROJECT
PLANS
WITHOUT
CARING
FOR
THE
ENVIRONMENT WILL GRADUALLY DESTROY
MANKIND ITSELF
CENTRAL POLLUTION CONTROL BOARD AND
BUREAU OF INDIAN STANDARDS HAVE
PREPARED
NON-STATUTORY
EFFLUENT
STANDARDS KNOWN AS MINIMUM NATIONAL
STANDARDS
(MINAS)
FOR
11
WATER
POLLUTING INDUSTRIES
EXPLOSIVE MATERIALS
CHIEF CONTROLLER OF EXPLOSIVES, NAGPUR
INDIAN EXPLOSIVES ACT AND RULES
FOREST CLEARANCE
PROJECTS INVOLVING RESERVATION OF
RESERVE FOREST OR DIVERSION OR USE OF
FOREST LAND NEEDS CLEARANCE FROM STATE
GOVT. AND THEN FROM CENTRAL GOVT.