CHAPTER -2

Project Administration
CONTENT TO BE DISCUSSED IN THIS CHAPTER

1.Essentials of Project Administration

2.Project Team and Project Design
3.Work Breakdown Structure(WBS)
4.Project Execution Plan(PEP)
5.Contracting Plan and Work packing
6. Plan Systems & Procedure Plan
7.Project Procedure Manual & Project Dairy
8.Project Execution System and Project Direction
9.Communication in a Project & Project Co-ordination
10.Pre –requisites for Successful Project Implementation
Essentials of Project Administration
 Essentials of Project Administration

The chief executive to issues project chart,

which is necessary to execute project in any
company
Project chart must define the project scope, the
project goals, name and authority delegated
project manager, project reviewing authority
and request co-operation of all concerned in the
execution of the project.
An elaborate effort in this direction may
produce what is known as a project manual.
 Project Administration

• Project Administration takes place in a

separate organization reporting directly to the
project's executive sponsor. It provides a
project management service for the project
teams and relieves them of most of the
planning, tracking, and reporting responsibility
 Project Team
A project team is a group of people working
together in collaboration or cooperation
towards a common goal.
(or)
• A project team is a temporary team created to
deliver a project
 Roles and Responsibilities of
the Project Team

 Develop a project plan.

 Manage deliverables according to the plan.
 Recruit project staff
 Lead and manage the project team
 Determine the methodology used on the project.
 Establish a project schedule and determine each
phase.
 Assign tasks to project team members
 Types of Project Team
Project teams has classified into seven types;
1. Initial project team
2. Designated project leader/manager
3. Core project team/project steering committee
4. Full project team
5. Project advisors
6. Project stakeholders
7. Process facilitators
 1.Initial project team
• The initial project team consists of specific
people who initially conceive the idea of
starting a project.
• The members of this team may or may not be
part of the core project team.
• The team members are responsible for the
planning and execution of the project,
• One of the team members will be designated
as the project leader/manager
 2.Designated project leader/manager

• The project leader/manager will be

responsible for coordinating the activities
amongst the team members, managing the
relations with key stakeholders and the
process of going through the project cycle.
 3.Core project team/project steering
committee
 The core project team is a small group of people,
typically 3 to 8 people who are ultimately
responsible for designing and managing a project
 This team alternatively called as project steering
committee which consists of
o Sponsor
o Client leader
o Expert/specialist
o Internal auditor

 It will be chaired by the sponsor

 4.Full project team
• The full project team is a bigger team when compared
to the core project team
• This team consists of complete group of people
involved in designing, implementing, monitoring and
learning from a project
• This team includes managers, stakeholders,
researchers and other key implementers of the project
• These team members should be such that the overall
skill set is wider
 5.Project advisors
Project advisors are the people who are not in
the project team, but finally to whom the
team members can depend for honest
feedback and counseling and who can anchor
the cause of the project
 6.Project stakeholders
Project stakeholders are the individuals, groups or
institutions who have a vested interest in the natural
resources of the project area/or who potentially will be
affected by the project activities and have something to
gain or lose if the conditions of the project change or do
not change. He is like an elite agriculturalist who looks
for bountiful harvest. It is not mandatory that all the
stakeholders should be a part of the project team. The
key stakeholders will find a place in the project team
Ex: creditors, directors, employees, government (and its
agencies), owners (shareholders), suppliers, unions, and
the community from which the business draws its
resources.
 7.Process facilitators
• A process facilitator is a person who can help
the project team through the planning process
• A process facilitator is part of the initial and/or
the core team
• The process facilitator understands the key
elements of the process and has good
facilitation skills
 The advantage of effective team

 Clear objective of the project from the initiation to

completion.
 Good decision-making process, which speed up the activities.
 Clear roles, responsibilities and leadership, without
overlapping, ensure smooth progress
 Leadership roles are shared by team head.
 Trust, co-operation, support and constructive conflict or
feedback is essential.
 Individual and mutual accountability for performance results,
is the high light of the success
 Pitfalls of ineffective team
• Falling performance levels with ambiguous
instruction.
• Low level of motivation or lack of it.
• Poor communication from the project manager.
• Poor or slow decision-making by the team head.
• Confusion about responsibilities and vague.
• Role and territory conflicts results in
controversy amongst the team.
9 Tips for Choosing Effective Team Members

1. Knowledge of biodiversity and threat to biodiversity

2. Knowledge of political, social and economic context
3. Knowledge/experience of stakeholders and their
concerns
4. Skill/experience in developing strategies
5. Experience in implementing strategies
6. Experience in communications and fund raising
7. Experience in budgeting and risk assessment
8. Should understand the psychology of the team
9. Should not be short tempered
Project Design
 Definition of Project Design
Project design is an first phase of
the project where a project's key features,
structure, criteria for success, and major
deliverables are all planned out. The aim is to
develop one or more designs that can be used
to achieve the desired project goals.
 7 Steps to Effective Project Design
1. Define Project Goal. ...
2. Determine Outcomes, Objectives, and/or
Deliverables. ...
3. Identify Risks, Constraints, and Assumptions. ..
4. Prepare a Visual Aid. ...
5. Ballpark Your Budget. ...
6. Determine Approval and Monitoring Processes. ...
7. Use Proper Project Design Documents.
 1.Define Project Goal
You should meet with your team and key
stakeholders to define the ultimate goal or
outcome of your project
This might be
 The product that is going to be developed
 The service that will be provided
 The problem your project will solve
 2. Determine Outcomes, Objectives, and/or Deliverables

Specific: Provide specific guidance on which resources

Are involved and their roles
Measurable: Outcomes, objectives and or deliverables
Must be quantifiable
Achievable: Make sure goals can realistically be achieved
Given the resources ,budget and time frame available
Relevant: All outcomes ,objectives and or deliverables
Should logically result in achieving project goals and
Producing intended results.
Time-Bound : Provide a timeline for when they will
achieved /completed
 3. Identify Risks, Constraints, and Assumptions

Document any risks and constraints on budget

Time or resources that could affect your team’s
Ability to reach goals
It’s also good practice to document any
Assumptions made during the project design
“Look out for assumptions”All projects are built on
assumptions and smart project manager know this
 4. Prepare a Visual Aid

Visual aids may include:

Sketches or drawings
Plans , schematics or rough blue print
Flow charts
Site trees
Gantt charts
Screenshots or screen designs
Photos
Prototypes
Mind maps
White board drawings
 5. Ballpark Your Budget

• It’s important to know the budget right from

the start
• Estimating your budget will also help you
determine the feasibility of the project
• The clearer you can be about your budget
during the project design phase ,the less likely
you are to experience unexpected cost
overruns later
 6. Determine Approval and Monitoring Processes

List the criteria you’ll use to judge whether

deliverables , outcomes and the final product
have been achieved.
You should also determine what processes
must be followed in order for the project and
its elements to be approved and who is
responsible for approval .
 7. Use Proper Project Design Documents

In project management ,the output of the

design phase may be as simple as a
 Gantt chart
 Flow chart
 Work chart
 hierarchy chart
That is carried into the project planning phase
 Project design is useful to the entrepreneurs
in the following ways
1. It gives a comprehensive idea about the entire project - described in every
phase along with the time schedule within which it has to be completed
2. It is a diagrammatic representation of the work plan designed to execute
the project, after adjusting the usual delays that may arise in the
implementation of the project.
3. The various constituent activities of the project are narrated in sequence to
highlight the various phases of the project
4. It enables to identify the know how of events which must take place for the
successful completion of the project
5. It helps entrepreneurs in coordinating project activities
6. It serves as an effective tool of planning and implementation of a project
7. It helps managers to plan the project economically
 Introduction of Computer into the project
management
• Computer based planning and control in Indian projects,
network analysis can considerably enhance managerial
effectiveness in the context of any time bound action
programmers.
• Computer-based network analysis can handle these
problems economically and efficiently
• Management is serious in effecting economies in different
areas of activities; and activities and events are closely
watched for initiating corrective action in proper time.
Periodical review meet and assessment of the progress
paves way for corrective action
 Steps to system design for project
management
Project management system is mainly constituted
by project work system and project control system.
1. Create the total physical system and its natural
modules
2. The connection between these modules have to
be identified
3. a control system using information as the media
has to be developed for self control as well as
forced control of the total project
 Project Management System
• A project management system is a combination
of methodologies and technologies that assist
you with the planning, organizing, and
scheduling everything that contributes to the
success of a project.
• There are two system for the management of
projects and they are
I. Project work system
II. Project control system
• Project Work System tools are
classified into three groups
• Work break down structure(WBS)
• Project Execution plan (PEP)
• Project Procedure manual(PPM)
Work Breakdown Structure(WBS)
 Definition of WBS
Work breakdown structure (WBS) in project
management is a method for completing a
complex, multi-step project. ... Breaking it
down into smaller chunks means work can be
done simultaneously by different team
members, leading to better team productivity
and easier project management.
 The WBS creation involves;
• Listing all the project outputs (deliverables and other
direct results)
• Identifying all the activities required to deliver
the outputs
• Subdividing these activities into sub activities and tasks
• Identifying the deliverable and milestone(s) of each
task
• Identifying the time usage of all the resources
(personnel and material) required to complete each
task
 Advantages of WBS
• Effective planning by dividing the work into
manageable elements which can be planned,
budgeted, and controlled
• Assignment of responsibility for work
elements to project personnel and outside
agencies
• Development of control and information
system
WBS Examples
Important points of work breakdown structure
• Useful as a team development tool
• Helps in documentation and detailed planning
• Useful for estimation of time and cost (resources)
• Each item in the WBS is assigned a unique identifier called
code of accounts
• Items at the lowest level are called work packages
• Planning packages are located between work packages and
control accounts
• It is not time based
• Work that is not part of WBS is outside the scope of the
project
Project Execution Plan(PEP)
Definition of Project Execution Plan
The project execution plan (PEP) is the
governing document that establishes
the means to execute, monitor, and
control projects.
The plan serves as the main communication
vehicle to ensure that everyone is aware and
knowledgeable of project objectives and how
they will be accomplished
Sub-Plans of Project Execution Plan
1. Contracting Plan
2. Work packaging Plan
3. Organization Plan
4. Systems and Procedure Plan
 1.Contracting Plan
• This is the first step in the preparation of a
project execution plan. A contract management
plan is a subsection of the projects main
project management plan .
• “The contract plan is an input/output
document that outlines the method in which a
specific contract will be administered and
executed”. The contract management plan
document will traditionally include a number of
items such as requirements of documentation
delivery and requirements of performance.
 2.Work packing Plan
• A work package is a part of a project structure plan
and therefore a part of the project management. A
work package is a group of related tasks within a
project. Because they look like projects themselves,
they are often thought of as sub-projects within a
larger project. Work packages are the smallest unit of
work that a project can be broken down into when
creating your Work Breakdown Structure (WBS).
 3.Organisation Plan
• Organizational planning is the process of defining a company’s
reason for existing,
setting goals aimed at realizing full potential, and creating
increasingly discrete tasks to meet those goals.
• There are four phases of a proper organizational plan: strategic,
tactical, operational and contingency.
• 1.A strategic plan is the company’s big picture. It defines the
company’s goals for a set period of time.
• 2.The tactical strategy describes how a company will implement its
strategic plan.
• 3.Operational plans encompass what needs to happen continually,
on a day-to-day basis, in order to execute tactical plans.
• 4. Contingency plans wait in the wings in case when primary plan
fails.
 4.Systems and Procedure Plan
• The last section of the project execution plan deals
with systems and procedure. A system is an orderly
grouping of independent components linked
together according to plan to achieve a specific
objective or predetermined goal. These may include
pre-existing project management processes, learned
techniques, different methodologies or lines of
thinking and working, as well as tools existing as
intellectual processes or physical objects operated
by the project management team itself . Procedure
describe the steps necessary to adequately plan for
the project.
 Uses of a Project Execution Plan
• A project execution plan is used as a the main document
that provides the means to have a certain project
executed, monitored and controlled.
• A project execution plan plays as an important
communication tool that ensures all those who are also
working on the project are well-aware and properly
educated about the objectives of the project.
• The plan also provides the details on how the project
goals and objectives will be accomplished.
• A project execution plan serves as a written document
that can be used as evidence for legal proceedings if
problems leading to legal or criminal cases take place.
 3.Project Procedure Manual
• “The Project Procedure Manual contains the
instructions for handling the work on the
project in accordance with the terms of the
contract”. Preparation of a project procedure
manual should start with each project
management sub system. The procedure to be
developed for making the system self-
regulative would not, however, come out
automatically from this analysis.
 Project Diary
A project diary is a written record of
significant activities, events or processes that
occur during the life of a project.
In order to ensure effectiveness, project
manager or executive have to maintain a
record date wise the point discussed and
decision taken which are required to be
followed for implementation. This is what is
known as project diary
 Project dairy involves
1. Project diary is a narrative record of discussion.
2. The Information or decisions arrived have to be properly
recorded in the project diary. This will go on record to
enable their communication and implementation.
3. This Information in dairy will help to justify the decisions at
later date.
4. This record may also be used to defend against non-
admissible claims and litigations.
5. This diary helps to prepare a follow-up register also. The
follow-up register will contain all pending work with dates
committed against each.
 Project Execution System
• Proper project execution system required to address the
concerned about external intervention for survival than
on its internal self regulating capacity.
• The external intervention for the successful execution and
administration of project requires the following forms:
•  Project direction
•  Project co-ordination
•  Project communication
•  Project organisation
•  Project control
Project Direction
 Project Direction
• Project Initiation/Start-up:
• Project direction is maximum at the time of start-up of implementation. The
project manager during this period needs to provide directions relating to:
• 1. Scope of work
• 2. Specifications of results of completed work
• 3. Basis of work
• 4. Division of work- imported Vs. indigenous, departmental Vs. contract etc.
• 5. Schedule of work
• 6. Budget of work
• 7. Systems and procedure for work
• 8. Co-ordination of work
• 9. Authority and accountability for work
• 10. Control of work
 Communication in a Project
• Projects happen only through communication. For a successful
project directions a two-way
communications systems is essential.
• Effective communication in a project would require a
communication oriented action plan. The actions that may be taken
in this regard are as below:
• 1. Organisation of work, people and work place with communication
orientation
• 2. Selection and installation of appropriate communication devices
• 3. Prédétermine document distribution matrix
• 4. Installing structured reporting systems
• 5. Implementing routine communications systems and procedures
• 6. Establishing a control room.
• Common communication problems or barriers
of communication:
• Assumption
• Lack of clarity
• Not listening
• Dictation
• Problem mismatch
• Ridicule, and blame
Project Co-ordination
 Project Co-ordination
• Co-ordination is a process which ensures smooth
interplay of the functions of management. Common
objectives are achieved without much wastage of time,
efforts and money with the help of co-ordination
• Co-ordination can be defined as the effort to bring
parts into super relation for harmonious functioning.
• Project coordination is the day-to-day management of
tasks within your department of the project.
 Project Co-ordination Procedure
• Physical aspect would refer to what is to be done, how
much is to be done and who will do it;
• The timing aspect would refer to when these will be
done based on schedule document prepared to enable
proper co-ordination.
• The word breakdown structures(WBS) provide the basic
frame work for both physical and time co-ordination.
• The development of project schedules co-ordinated
with breakdown structure and organisation chart sets
the stage for the timely co-ordination.
 Pre-requisites for Successful Project Implementation

1.Adequate formulation
2.Sound project organisation
3.Proper implementation planning
4.Advance action
5.Timely availability of funds
6.Judicious equipment tendering and procurement
7.Better contract management
8.Effective monitoring
 1. Adequate formulation:
often project formulation is deficient because of one or
more of the following shortcoming:
a. Flawed judgments because of the lack of experience of
expertise
b. Superficial field investigation;
c. A cursory assessment of input requirements;
d. Slip-shod methods used for estimating costs and benefits;
e. An omission of project linkages;
f. Undue hurry to get started;
g. Deliberate over-estimation of benefits and under-
estimation of costs.
 2. Sound project organization:
• A sound organization for implementing the project is
critical to its success. The characteristics of such an organization
are:
a. It is led by a competent leader who is accountable for the
project performance;
b. The authority of the project leader and his team is
commensurate with their responsibility;
c. Adequate attention is paid to the human side of the project;
d. Systems and methods are clearly defined;
e. Rewards and penalties to individuals are related to
performance.
 3. Project implementation planning:
• Once the investment decision is taken and often even while the
formulation are being done, it is necessary to do detailed
implementation planning before commencing the actual
implementation. Such planning should seek to:
a. Develop a comprehensive time plan for various activities like
land acquisition, tender evaluation, recruitment of personnel,
constriction of the building, erection of plant , arrangement for
utilities, trial production run, run, etc.
b. Estimate meticulously the resources requirements (manpower,
materials, money, etc.)for each period to realize the time plan;
c. Define properly the inter-linkages between various activities of
the project;
d. Specify cost standards.
 4. Advance action:
• When the project appears prima facie to be variable
and desirable,advance action on the following
activities may be initiated:
• a. Acquisition of land,
• b. Securing essential clearance,
• c. Identify technical collaborators/consultants,
• d. Arranging for infrastructure facilities,
• e. Preliminary design and engineering, and,
• f. Calling of tenders.
 5. Timely availability of funds:
• Once a project is approved, adequate funds
must be made available to meet its
requirements as per the plan of
implementation, it would be highly desirable if
funds are provided even before the final
approval to initiate advance action.
 6. Judicious equipment tendering and
procurement:
• To minimize time over-runs, it may appear
that a turnkey contract has obvious
advantages. Since these contracts are likely to
be bagged by foreign suppliers, when global
tenders are floated, a very important question
arises. How much should we rely on foreign
suppliers and how much should we depend on
indigenous suppliers?
 7. Better contract management:
• Proper management of contracts is critical to successful
implementation of projects. Therefore
• a. all parties to contract must be treated as partners in
common per suit.
• b. discipline must be established between all
intermediaries.
• c. competency and capability of the contractors must
be ensured before entering into a contract.
• d. project authorities must retain the power to transfer
a contract to third parties when delays are anticipated.
 8. Effective monitoring:
In order to keep a tab on the progress of the
project, a system of monitoring must be
established. This helps in
• a. anticipating deviation from implementation
plan.
• b. analysing emerging problem and resolving it
at the earliest.
• c. taking corrective action