PROJ ECT PLANNING AND IMPLEMENTATION

presented by,
Akhil
PROJECT PLANNING
The dictionary meaning of project is speculative imagination.
It deals with the three dimension innovation vision risk. So it is a scheme of something to
be done in a viable framework.

According to encyclopedia of management a project is an organized unit dedicated to the
attainment of goal- the successful completion of a development project on time with in budget, in
conformance with predetermined program specification.


For example:-many of the elements of project management applied in the construction and telecommunication
industries do not work in pharmaceutical development .

A project management framework
Six elements :-
Project definition
Project team and organization
Project planning ,scheduling and control
Problem solving and decision making using prototype
Senior management review and control
Proactive ,real time change management
Objectives of new product projects

resources
Time-to-mark
Scope of work
requirement
-cost
-performance
New product funnel
New product
launches
Management
reviews
Contract
Charter/integrated
project plan
Annual
plan
Cost
reductions
generics
QEMs
Co-
development
Internal
research
External research
Design of project team

Core team cross
functional &small
Formulation
development
team
Manufacturing
process
development
team
Clinical
development
team
Market
introducti
on team

Functional focus technical specialization
Project
focus &
integrati
on
Project team member
Project organization structures
PERT analysis
P-project
E-evaluation
R-review and
T-technique
Steps in the PERT Planning Process

PERT planning involves the following steps:
Identify the specific activities and milestones.
Determine the proper sequence of the activities.
Construct a network diagram.
Estimate the time required for each activity.
Determine the critical path.
Update the PERT chart as the project progresses.

1. Identify Activities and Milestones
The activities are the tasks required to complete the project. The
milestones are the events marking the beginning and end of one or
more activities. It is helpful to list the tasks in a table that in later
steps can be expanded to include information on sequence and
duration.
2. Determine Activity Sequence
This step may be combined with the activity identification step since the
activity sequence is evident for some tasks. Other tasks may require more
analysis to determine the exact order in which they must be performed.


3. Construct the Network Diagram
Using the activity sequence information, a network diagram can be drawn
showing the sequence of the serial and parallel activities. For the original
activity-on-arc model, the activities are depicted by arrowed lines and
milestones are depicted by circles or "bubbles".
If done manually, several drafts may be required to correctly portray the
relationships among activities. Software packages simplify this step by
automatically converting tabular activity information into a network diagram.
4. Estimate Activity Times
Weeks are a commonly used unit of time for activity completion, but any consistent
unit of time can be used.
A distinguishing feature of PERT is its ability to deal with uncertainty in activity
completion times. For each activity, the model usually includes three time estimates:
Optimistic time - generally the shortest time in which the activity can be completed. It
is common practice to specify optimistic times to be three standard deviations from
the mean so that there is approximately a 1% chance that the activity will be
completed within the optimistic time.
Most likely time - the completion time having the highest probability. Note that this
time is different from the expected time.
Pessimistic time - the longest time that an activity might require. Three standard
deviations from the mean is commonly used for the pessimistic time.
PERT assumes a beta probability distribution for the time estimates. For a beta
distribution, the expected time for each activity can be approximated using the
following weighted average:
Expected time = ( Optimistic + 4 x Most likely + Pessimistic ) / 6
This expected time may be displayed on the network diagram.
To calculate the variance for each activity completion time, if three standard deviation
times were selected for the optimistic and pessimistic times, then there are six
standard deviations between them, so the variance is given by:
[ ( Pessimistic - Optimistic ) / 6 ]2
5. Determine the Critical Path
The critical path is determined by adding the times for the activities in each
sequence and determining the longest path in the project. The critical path
determines the total calendar time required for the project. If activities
outside the critical path speed up or slow down (within limits), the total
project time does not change. The amount of time that a non-critical path
activity can be delayed without delaying the project is referred to as slack
time.
If the critical path is not immediately obvious, it may be helpful to determine
the following four quantities for each activity:
ES - Earliest Start time
EF - Earliest Finish time
LS - Latest Start time
LF - Latest Finish time

These times are calculated using the expected time for the relevant activities. The
earliest start and finish times of each activity are determined by working forward
through the network and determining the earliest time at which an activity can start
and finish considering its predecessor activities. The latest start and finish times are
the latest times that an activity can start and finish without delaying the project. LS
and LF are found by working backward through the network. The difference in the
latest and earliest finish of each activity is that activity's slack. The critical path then is
the path through the network in which none of the activities have slack.


The variance in the project completion time can be calculated by summing the
variances in the completion times of the activities in the critical path. Given this
variance, one can calculate the probability that the project will be completed by a
certain date assuming a normal probability distribution for the critical path. The
normal distribution assumption holds if the number of activities in the path is large
enough for the central limit theorem to be applied.


Since the critical path determines the completion date of the project, the project can
be accelerated by adding the resources required to decrease the time for the
activities in the critical path. Such a shortening of the project sometimes is referred to
as project crashing.
6. Update as Project Progresses
Make adjustments in the PERT chart as the project progresses. As the
project unfolds, the estimated times can be replaced with actual times. In
cases where there are delays, additional resources may be needed to stay
on schedule and the PERT chart may be modified to reflect the new
situation.
Benefits of PERT

PERT is useful because it provides the following information:
Expected project completion time.
Probability of completion before a specified date.
The critical path activities that directly impact the completion time.
The activities that have slack time and that can lend resources to critical
path activities.
Activity start and end dates.

Limitations of PERT
The following are some of PERT's weaknesses:

The activity time estimates are somewhat subjective and depend on judgment. In
cases where there is little experience in performing an activity, the numbers may be
only a guess. In other cases, if the person or group performing the activity estimates
the time there may be bias in the estimate.

Even if the activity times are well-estimated, PERT assumes a beta distribution for
these time estimates, but the actual distribution may be different.

Even if the beta distribution assumption holds, PERT assumes that the probability
distribution of the project completion time is the same as the that of the critical path.
Because other paths can become the critical path if their associated activities are
delayed, PERT consistently underestimates the expected project completion time.

The underestimation of the project completion time due to alternate paths becoming
critical is perhaps the most serious of these issues. To overcome this limitation,
Monte Carlo simulations can be performed on the network to eliminate this optimistic
bias in the expected project completion time.
Problem-Solving and Decision-Making Process
Problem solving is a process in which we perceive and resolve a gap
between a present situation and a desired goal, with the path to the goal
blocked by known or unknown obstacles. In general, the situation is one not
previously encountered, or where at least a specific solution from past
experiences is not known.
In contrast, decision making is a selection process where one of two or
more possible solutions is chosen to reach a desired goal. The steps in both
problem solving and decision making are quite similar. In fact, the terms are
sometimes used interchangeably.
Drug development phases
IND/CTX NDA/CPMP
Adverse
Rxn reporting
Phase IV
post mktg
New
indications
inspection
Phase I
Phase II
Phase III
Long term
Short time
Formulation/
Chemistry
Animal testing
Initial synthesis
Range 1-3yrs.
Avg. 24 months
Range 2-10yrs.
Avg. 5-7yrs.
Range
2months-
7yrs
Avg. 2yrs
Senior management and review and control
Business issues and goals of the project
Issues related to the consumer needs and the market place
Resource management
Corporate and business unit direction product line
Sales and payback expectation
Project schedule
Timely introduction to market
The availability and maturity of the technology to meet quality and cost
targets
Proactive, real time change management
1.State the real problem
2.Gather the relevant facts
3.Develop several alternative solution
4.Analyse and review impact of alternative
5.Adopt the best alternative
6.Tell everyone
7.Audit the outcome
Financial evaluation for justification of a scope
change
Market
introduction
date
Product
unit cost
Product
performance
Requirements
Project
development
investment
Risk management plan

High
Low
Probability
occurrence
Low High
Financial impact
Quadrant II
Low probability
High impact
No contingency plan
monitor
Quadrant I
Low probability
Low impact
No contingency plan
Quadrant IV
High probability
High impact
Develop contingency
Plan
Quadrant III
High probability
Low impact
No contingency plan
Monitor

identification
Key risk symptoms
External sources
Assumptions
TCQ analysis
Likelihood Opportunity and
threats
Effects
Hide ability Corrective action
Response control
Contingency &
Risk management scheme
Project risk management
quantification reserves
Forecasting
Sales and revenue forecasting
Technology forecasting
Other types of forecasting
linear programming
break even analyses
simulations
Decision making tools


Pay-off matrices
Decision trees
Other techniques


Strengths & weakness of planning tools
Weakness and problems
Strengths and advantages
CHARACTERISTICS OF PROJECT
1. Investment phase

2. Expected return

3. Time limit

4. Location.
1. Investment phase- project require finding support for its successful identification
and execution. Project involves capital investment for the purpose of developing
production or services facilities.

2. Expected return- capital investment is required in project but returns are
expected only after the project completion. A person invest funds in project only
when he for see a viable operation in future. It means that there must be a series of
expected return in future.

3. Time limit-project requires a timely completion, so efforts are needed to realize
the objective or completion of project with a framework of approved time and cost
schedule.

4. Location-site selection is a tough decision and its require to evaluate the
suitability of options. Availability of consumer market in that particular area or easy
accessibility to labor laws. A raw material affects the decision of site selection.
PLANNING
Planning is a written summery of what you
hope to accomplish by being in work and
how you intend to organize recourse to
meet your goals
PLANNING- MAJOR BENEFITS
1. Helps in reducing an emotional bias.

2. Provides SWOT (strength, weakness, opportunities and threats) analysis.

3. Enable one to justify his/her plans &ideas.

4. Test the ideas on paper.

5. Helps one to develop a consistent strategy.

6. Helps in convincing other about the ideas.
PROJECT MANAGEMENT
It is the process of planning and directing a project
from its inception to its completion in a given time at
a given cost of time at a given cost to generate a
given result.

PHASE OF PROJECT MANAGEMENT


Divided in a six broad phases.
IDENTIFICATION
SELECTION
FORMULATION
APPRAISAL
IMPLEMENTATION
REVIEW
1. INDENTATION- selection of a project after a careful scanning of the
environment of investment opportunity & its likely return.

2. SELECTION- rational choice of a project in the light of objective &
inherent constraints.

3. FORMULATION- translation of idea into a concrete project with scrutiny
of its important preliminary aspects.
4. APPRAISAL- searching scrutiny, analysis &evaluation of market,
technical, financial, & economic variable. Assessing the profitability, return
on investment& breakdown points.

5. IMPLEMENTATION- expeditious completion with in the allocated
recourses.

6. REVIEW- judicious operation of a project with objective like, maximization
of net present value maximization of return and increase in the rate of return
at low risk.

PROJECT FORMULATION
Project formulation is an important strategy of pre
investment phase. It refers to a series of steps to be taken
to convert an idea or aspiration into a feasible plan of
action
STAGES OF PROJECT
FORMULATION
Process of project formulation involves following stages

1. Feasibility Analysis :
This is very first stage in project formulation at this stage, the project ideas
is examined from the point view to go in for a detailed investment proposal
or not.
2. Techno Economic analysis: In this step, Estimation of project demand,
Potential and choice of optimal technology is made market analysis is also
built in this step.
3. Project Design and Network Analysis: This important step defines
individual activities which constitute, the project and their interrelationship
with each other a detailed work m plan of the project is prepared with time
allegation for each activity and presented in a network drawing
4. Input Analysis: The step asses the input requirement during the
construction of the project and also during the operation the project
5. Financial Analysis : this step mainly involves estimating the project cost
, estimating its operating cost, and funds requirements. Financial analysis is
also keeps in comparing various project proposal on a common Scale there
by aiding the decision made

6. Cost Benefit Analysis : it is quantitative analysis. The overall value of a
project is the main consideration here while the financial analysis justify a
project from the profitability b point of view, Cost benefit analysis will
consider the project from the overall viability point of view
( i.e. social, economical financial and ecological gain)

7. Pre Investment Phase: the project proposal a gets a formal and final
shape at this stage, all the result obtained in the above steps are
consolidated and various conclusion arrived at to a present a clear picture.

IMPLEMENTATION
Implementation means to carry out ,to accomplish ,to fulfill, or to give
practical effect & to ensure fluffiness by concrete measure

Implementation It involves the completion of numerous activities ( Project
Component) by employing various resources men , material , money and
time so that project is translated into concrete reality
Project Implementation stages
The purpose of any successful project implementation is to ensure that the
project activities are completed within the scheduled & with in budget
provision.

1. Initiation the project
2. Specifying and scheduling the work
3. Clarifying authority, responsibility and relationship
4. Obtaining resources
5. Establishing a control system
6. Directing and Controlling
7. terminating the project
1.Initiating the project
Project initiation is the first step which is similar in many ways to he
preparatory stages of project formulation. It involves obtaining approval of
the proposed strategies, Project plan relevant budget and selection of
project major and other major formulation.
2 .Specifying and scheduling the work
After initiating the project , it becomes improvement to determine about the
project plan by specifying the detail when , where and how the project activities
would be done and whom would manage them in other words steps in the
direction of defining the detail activity specification, Determining the inter
relationship, specifying the manner of doing them, the person who are to mange
them and likely duration by which the whole project is to be completed, have to
be taken under the second stage.


Following are some of the activities which are basically termed as important
during course of project implementation
Finalization of technological parameter
Selection of equipment
Preparation of layout
Identification of infrastructure
Training of manpower
3.Clarifying authority, responsibility and relationship

In the various member of this project team are made to aware of their
relationship between authority and responsibility
For.eg.
1. Sponsoring organization would be responsible for all the policy matters
related to the project
2. Project manager has to see that project objectives are economically and
efficiently accomplished.
3. Activity manager has to ensure that a group of activities assigned to him
are completed with in time by consuming minimum resources
4.Obtaining resources
The discussion on resources would be taken up under the following three
headings
1. Personnel
2. Finance
3. Material and equipment
1.personnel
The successful implementation of project depend on the efficiency and effectiveness
with which personnel engaged at various levels undertake their task and achieve
results
In order to keep a track of the large variety of human resources required ILO has
prescribed an international standard classification of occupations



2.finance
There must be availability of funds at the start and through out the schedule and
phased life of a project . the flow of resources has to be planned that activities of the
project do not slow down or suffer a set back



3.material equipment
during the implementation stage for a project for its smooth progress required
machinery , plant, equipment and other materials. It is possible to determine the
exact requirement and time schedule of a particular activity from network chart &
aggregator the resources requirement profit for the total project of the span
5.Establishing control system
This stage Primary aim to designing and Establishing a Control System so
that Management. At a different levels is not only able to direct and control
the project from three parameters
i.e. Time, Cost , And performance
6.Directing and controlling
Once the control system has been designed and established, now the
management not only to motivate the staff for hard work but also to monitor
and control the project functioning by taking immediate remedial measure
based on an effective communication and decision making system
7.Terminating the project
Literally termination means ending and in the context of project implementation,
it spell out one of the four means:-

Normal Termination
When the project is completed within stipulated resources and time

Non Termination : In this case the project become a normal functioning unit
of the existing organization on its completion

Early Termination : In this case , there is a termination of project on account
of no factors such as change in policy and program concerned availability of
more prospective proposals. In other words these deals with the
abandonment of the existing project.

Later Termination: It is generally the cost on account of time & cost over
come.