Professional Documents
Culture Documents
MB0033
SET 1
PROJECT MANAGEMENT
Q.1:- Define project management, resource, process and project cycle. Explain
the life-cycle of a project.
Resource : We discussed earlier that the most important step to arrive at the
relationship between the four constraints is to make an accurate assessment of the
resources required, and the costs thereof. At this stage, we shall broadly classify the
resources required under four categories.
(a) Manpower refers to all the man hours required from various personnel
working directly or indirectly on the project.
(b) Materials refer to all materials that become part of the project. In the
case of a building this will include cement, steel, aggregates, doors & windows,
mechanical electrical/instrumentation equipment and materials, finishing
materials like tiles water proofing, ironmongery, consumables utilized in the
construction etc. In summary all materials that become part of the building
structure.
(c) Tools and Plants are those items that are deployed to aid the
construction of the project like lifting equipment (cranes etc.), concreting
equipment, welding machines, dozers, transport vehicles and all machineries
deployed as construction aids. They do not become part of the project, they are
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utilized for the implementation of the project, and they are transferred to other
projects after such utilization for the ongoing project. The owner may own some
of these tools and plants in which case he will need to apportion an internally
predetermined hiring cost of the same to the project. For the tools and plants
deployed for the project and not owned by the owner, hiring costs charged by the
external agencies shall be apportioned to the project.
Process : PMBoK organizes Project management processes into five groups, defined
as the Project Management Process Groups, each group comprising one or more
processes. This grouping helps in understanding the relevance and significance of the
sequence of, and interaction between the various processes in project management.
However, a process group is not a totally discrete phase occurring in isolation from
another process group, and the processes have inherent interactions between
themselves throughout the implementation of a project. We will briefly define these
process groups as under, while a more detailed explanation of each process group
follows subsequently.
Initiating process group defines and authorizes the project or a project phase.
Planning process group defines and redefines objectives and plans the course
of action required to attain the objectives and scope that the project was
undertaken to address.
Executing process group integrates people and other resources to carry out
the project management plan for the project.
Broadly, the process groups tend to be deployed in the sequence listed as the
project progresses. In the event that a project goes off-course, re-planning comes into
play, and if a project is found to be in serious trouble, it may have to go all the way back
to the initiating process to be restarted.
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To summarize, the result or output of one process group often becomes an input
to another. In the central process groups planning, executing and control), all the links
are looped i.e. the links of these central process groups are iterated – planning provides
execution with a documented plan early on, and then provides documented updates to
the plan, as the project progresses. Fig. 2A illustrates this.
Process Groups in a Phase Also, though these process groups are presented
above as discrete, one-time events; these events overlap and take place at different
levels of activity across each phase in the project life cycle. Fig. 3-2 illustrates this
overlapping.
Project Life cycle: Collectively, the project phases are known as the project life cycle.
Thus the project life cycle serves to define the beginning and end of the project. For
example, when an organization identifies an opportunity, it will conduct or authorize a
feasibility study to decide if it should undertake the project. The project life cycle
definition will determine whether the feasibility report is treated as the first project
phase, or as a separate standalone project. The phase sequence defined by most project
life cycles generally involves transfer of deliverables (or technology) such as:
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Deliverables from preceding phase are usually approved before work starts on the
next phase. The requirement of speedy completion of the total project will often
necessitate overlapping of phases i.e. a subsequent phase is begun prior to approval of
the previous phase deliverables, when the risks involved are deemed acceptable. This
overlapping is termed fast tracking.
Ans:- The Project Manager : A project manager is a person who manages the
project. The project manager is responsible to carry out all the tasks of a project.
Responsibilities of the project manager
Life cycle of a project manager overlaps with the development life cycle in the
middle.
The project manager conducts the analysis of the problem and submits a
detailed report to the top management. The report should consist of what the problem
is, ways of solving the problem, the objectives to be achieved, and the success rate of
achieving the goal.
The project manager and the project team to complete projects on schedule
within budgeted cost and in full accordance with project specifications. At the same time,
they help achieve the other goals of the organization, such as productivity, quality and
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cost effectiveness. Hence the objective of project management is to optimize project
cost, time and performance (includes quality).
Today large and small organizations recognize that project management, with its
structured approach to planning and controlling of projects, is a necessary core
competency for success. Like general management, project management also involves
all aspects of planning, organizing, implementing and controlling .However, it has its own
techniques like work breakdown structure, critical path analysis, PERT (Program
evaluation & review technique), which will be discussed in later units.
Issues are made clear by the project manager to avoid as many surprises as
possible. Bottom-up project management can also be viewed as a way of coping with the
increasing gap between the information necessary to manage knowledge workers and
the ability of managers to acquire and apply this information.
Team members very often have read-only access to the project plan and cannot
make any contributions or changes. The employees send their updates to the project
manager in disconnected files via e-mail. The project manager then has to collect all the
data and put the information manually into the project plan. After that, he or she has to
communicate the changes to the corporate executives. All these routine procedures lead
to a situation where the project manager's talents often are buried by the routine work.
The huge amount of mechanical control/synchronization work often leaves little very
time for leadership from the project manager.
The project manager is the one to conduct the work of his team and choose the
right direction for the project development, based on the information received from the
individual employees. Thus, the role the project manager plays in the project changes.
Project managers should be familiar with, and be able to use or direct the project
team, to use the appropriate tools to ensure that estimates provided during the planning
process are reliable. Estimation tools are driven by historical data and many can serve as
a parametric model which can be scalable based on the size of the project.
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Once the Project Management Review has been conducted, follow up with
program/project managers on any issues or concerns requiring attention, the status of
open items from the review, and CIO reporting actions, e.g., reports to the CIO Council.
The CIO may also recommend quality assurance analysis be conducted.
The project manager is responsible for raising issues or concerns that require
assistance or guidance to the attention of the CIO. These items should be communicated
whenever they become known, and not held to the next Project Management Review.
The CIO will assign appropriate OCIO staff available to help resolve open items. The
program / project manager should communicate the status of these items in each
quarterly review until the items are resolved / closed.
The program/project manager is responsible for tracking the open items from the
review and communicating the status in each quarterly review until the items are closed.
The supporting the scheduling of reviews will coordinate with the program/project
manager after the quarterly reviews to help ensure that new items have been captured
for tracking and action by the program/project manager.
The project manager should make it a habit of expressing appreciation openly for
any good work done. Cross Functional Teams have become a necessity and the synergy
they generate would be lost if interpersonal behavior is not of high standard. As
members are from different functions, understanding the requirements or compulsions of
others is difficult. This fact should be impressed upon all the members and requesting
them to cooperate is vital.
An experienced project manager and his team may manage more than one
project at a time. The project team is responsible for ensuring that the project upon
completion shall deliver the gain in the business for which it is intended for. The project
team has to properly coordinate with each other working on different aspects of the
project. The team members are responsible for the completion of the project as per the
plans of the project.
Q.3:- Explain the various steps in the identification process of a project. What
are the tools used in project planning?
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(a) Project management process Project management process is defined
by the organization. It describes and organizes the work of the project.
(e) Customisation
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· Large projects may need details A detailed project management
plan might be necessary to indicate every detail in the initial stages.
· Smaller projects may need relatively less details A detailed plan may
not be required in the initial stages.
Project Planning The purpose of project planning is to first identify the areas of the
project work and identifying the forces affecting the project and then to define the
boundaries
of the project. Also the scoping has to be explicitly stated on the line of the project obj
ectives
It also has to implicitly provide directions to the project. The planning and scoping shou
ld be such that the project manager is able to assess every stage of the project and als
o enabling the assessment of the quality of the deliverable of the project at every stage
. The various steps of project scoping and its characteristics are:
(a) Identify the various parametric forces relevant to the project and its stage
s.
(b) Enable the team members to work on tools to keep track of the stages and
thereby proceed in the planned manner.
(c) Avoiding areas of problems which may affect the progress of the project.
(d) Eliminating the factors responsible for inducing the problem.
(e) Analyzing the financial implications and cost factor at various stage of the
project
Planning Tools The tools which may be necessary for coordinating a project
successfully are as follows:-
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(b) Project structure Development plan, project tracking and oversight
Initiate planning
Develop software
development
plan(SDP)
Measurement and
improve the process
(c) Project Key personnel Identify those business areas that are within
the scope or directly interface with the scope boundary and list them in the
“Business area” column of the project assignment worksheet Identify the key
personnel for each area and list them in the “Person” column of the project
assignment worksheet.
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Q.4:- What is Risk Management? How can risks be prioritized?
Ans:- Risk Management Risks are those events or conditions that may occur and
whose occurrence has a harmful or negative impact on a project. Risk management aims
to identify the risks and then take actions to minimize their effect on the project. Risk
management entails additional cost. Hence risk management can be considered cost
effective only if the cost of risk management is considerably less than the cost incurred if
the risk materializes.
There are different types of risk involved in a project. The main types are:-
(b) Market risks it is the risk arising out of a change in any of the
following marketing parameter – price change, changes in market
regulations, economic changes, competition, competitors product changes, etc.
(c) Industry risk it is the risk arising out of a change in scientific instruments
used in business activity, changes in companies policies because of changes in th
e
industry.
At the end of this unit, we have provided you with a copy of our risk process. It is
simple, effective, and takes 90 to 120 minutes for projects that are 1260 personmonths.
Projectssmaller than 12 personmonths take 4060 minutes. You can control the length of
the sessionby controlling the scope you pick. Most sessions usually take less than two h
ours.
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Risk identification can be done using a brainstorming session. The brainsto
rm typically takes 15 30 minutes. Be sure to invite anyone who can help you thin
k of risks. In the brainstorming session, people call out potential problem that
they think could hurt
the project. New ideas are generated based on the items on the brainstorm list.
A project manager can also use the process to refer to a database of
risk
obtained from past.
The information obtained from such databases can help the project
manager to evaluate
and assess the nature of the risk and its impact on the project.
Example of risks are: “We may not have the requirements right.
“The technology is untested,” “Key people might leave,” “The server won’t restart
in situation X,” and “People might resist the change.” Any potential problem, or cr
itical project feature, is a good candidate for the risk list.
Refer to a list of commonly used risk mitigation steps for various risks
from the previous risk logs maintained by the PM and select a suitable risk
mitigation step. The risk mitigation step must be properly executed by
incorporating them into the project schedule. In addition to monitoring the
progress of the planned risk mitigation steps periodically revisit the risk
perception for the entire project. The results of this review are reported in each
milestone analysis report. To prepare this report, make fresh risk analysis to
determine whether the priorities have changed.
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e) technology used may change during the course of project execution
f) consequences of negativity in project related problems could be very
serious
g) changes in economic conditions may affect a project
(a) Evolving Key Success Factors (KSF) Upfront: In order to provide complete
stability to fulfillment of goals, one needs to constantly evaluate from time to
time, the consideration of what will constitute the success of completing a
project and assessing its success before completion. The KSF should be evolved based
on a basic consensus document (BCD). KSF will also provide an input to effective
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exit strategy (EES). Exit here does not mean exit from the project but from any of
the drilled down elemental activities which may prove to be hurdles rather than
contributors. Broad level of KSF should
be available at the conceptual stage and should be firmed up and detailed out during
the planning stage. The easiest way would be for the team to evaluate each step for
chances of success on a scale of ten. KSF should be available to the management
duly approved by the project manager before execution and control stages. KSF rides
above normal consideration of time and cost – at the levels encompassing client
expectation and management perception – time and cost come into play as
subservient to these major goals.
(i) Team members empowered to work within limits of their respective allocat
ed responsibilities – the major change from bureaucratic systems is an
expectation from these members to innovate and contribute to time and cost.
(ii) Group leaders are empowered additionally to act independently towards
client expectation and are also vested with some limited financial powers.
(iii) Managers are empowered further to act independently
but to maintain a scientific balance among time, cost, expectation and
perception, apart from being a virtual advisor to the top management.
(d) Management By Exception (MBE) – “No news is good news” . If a member wants
help he or she locates a source and proposed to the manager only if such help is not
accessible for free.
Similarly, a member should believe that a team leaders silence is a sign of
approval and should
not provoke comments through excessive seeking of opinions. In short
leave people alone and let situation perform the demanding act. The bend limit of MBE
can be evolved depending on the sensitivity of the nature and size of the project.
MBE provides and facilitates better implementation of effectiveness of
empowerment titles. MBE is more important
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since organizations are moving toward multiskilled functioning even
at junior most levels.
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ASSIGNMENTS - MBA – II SEMESTER
MB0033
SET 2
PROJECT MANAGEMENT
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identify with and are an important part of company life. This sense of belonging is not
easy to engender. Through basic fairness, employee involvement, and equitable
incentives, the corporate culture and productivity both can grow.
6. Measure and Analyze This is the technical key to success for a PIP.
Productivity must be defined, formulas and worksheets developed, sources of data
identified, benchmark studies performed, and personnel assigned. Measuring
productivity can be a highly complex task. The goal, however, is to keep it as simple as
possible without distorting and depreciating the data. Measurement is so critical to
success, a more detailed analysis is helpful.
11. Follow up QR complete product status revised from ‘In progress’ to ‘QR
Complete’. Follow up the actions planned in strict manner which ensures conformity to
the standards.
12. Review quality control procedures Verify that the quality objectives for
each product
are appropriate and that all participants are satisfied both with the process and its
outcome.
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Q.2:- Explain the relevance of Work Breakdown Structure in determining
responsibility area. Explain in detail GDM and its key features
Ans:- Work Breakdown Structure (WBS) The entire process of a project may
be considered to be made up on number of sub process placed in different stage
called the Work Breakdown Structure (WBS).
This is the technique to analyze the content of work and cost by breaking it down into its
component parts. Project key stages form the highest level of the WBS, which is then
used to show the details at the lower levels of the project. Each key stage comprises
many tasks identified at the start of planning and later this list will have to be validated.
WBS is produced by identifying the key elements, breaking each
element down into component parts and continuing to breakdown until manageable work
packages have been identified. These can then be allocated to the appropriate person.
The WBS does not show dependencies other than a grouping under the key stages.
It is not time based there is no timescale o the drawing.
GDM The Global Delivery Model (GDM) is adopted by an Industry or Business such that
it has a capability to plan design, deliver and serve to any Customers or Clients
Worldwide with Speed, Accuracy, Economy and Reliability.
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Adoption of a Combination of the Greatest Common Multiple and the Least Comm
on Factor of a Large Mass of Microbial Components.
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Q.3:- What do you understand by Resource Smoothing? What is the
significance of reviewing ROI?
Ans:- ROI - Return on Investment (ROI) is the calculated benefit that an organization
is projected to receive in return for investing money (resources) in a project. Within the
context of the Review Process, the investment would be in an information system
development or enhancement project. ROI information is used to assess the status of
the business viability of the project at key checkpoints throughout the project’s lifecycle.
ROI may include the benefits associated with improved mission performance,
reduced cost, increased quality, speed, or flexibility, and increased customer and
employee satisfaction. ROI should reflect such risk factors as the project’s technical
complexity, the agency’s management capacity, the likelihood of cost overruns, and the
consequences of under or nonperformance. Where appropriate, ROI should reflect actual
returns observed through pilot projects and prototypes.
If the detailed data collection, calculation of benefits and costs, and capitalization
data from which Return on Investment (ROI) is derived was not required for a particular
project, then it may not be realistic or practical to require the retrofit calculation of ROI
once the project is added to the Review portfolio. In such a case, it is recommended that
a memorandum of record be developed as a substitute for ROI. The memorandum
should provide a brief history of the program, a description of the major benefits realized
to date with as much quantitative data as possible, and a summary of the process used
to identify and select system enhancements.
Some of the major benefits experienced by sites that installed the information
system that would be important to include in the memorandum are:
In each case above, identify the specific site, systems, and labour involved in
determining the cited benefit. Identify any costs or dollar savings that are known or have
been estimated. The memorandum will be used as tool for responding to any future
audit inquiries on project ROI.
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For the Project Management Review, it is recommended that the project leader
replace the text on the ROI document through -
(1) A note stating which stage of its cycle the project is in;
(2) A bulleted list of the most important points from the memorandum of
record;
In subsequent Reviews of the information system, the ROI slide can be eliminated
form the package. There is one notable exception to this guidance. Any internal use
software project in the maintenance phase of its lifecycle that adds a new site or
undertakes an enhancement or technology refresh that reaches the cost threshold
established by Standard will need to satisfy capitalization requirements. It requires all
agencies to capitalize items acquired or developed for internal use if the expected service
life is two or more years and its cost meets or exceeds the agency’s threshold for
internal use software. The standard requires capitalization of direct and indirect costs,
including employee salaries and benefits for both Federal and Contractor employees who
materially participate in the Software project. Program managers are considered to be
the source of cost information for internal use software projects. If capitalization data is
collected for the project in the future, the project would be expected to calculate and
track its ROI.
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Aircraft Should Be Reduced (Letter Report, 04/19/95, GAO/NSIAD-95-59). Because the
F-22 fighter plane is not urgently needed and the Defense Department (DOD) has
discovered engine and software problems with the aircraft, GAO urges that the F-22 be
thoroughly tested before large numbers of these expensive aircraft are acquired.
Concurrency between the development and production phases of F-22 means that
independent testing of high-tech features of the aircraft will not be completed before the
Air Force makes a significant commitment to producing the F-22. Among other things,
the F-22 boast an advanced architecture for the integrated avionics system, a propulsion
system that will allow cruising a supersonic speeds without the afterburners that current
fighters needs, and low observable technologies. The military has already disclosed
engine and stealth ness problems, and the potential for avionics and software problems
underscore the need to demonstrate the aircraft's capabilities before committing to
production.
However, the term is typically reserved for larger, more broadly based application
s. The introduction of an ERP system to replace two or more independent applications
eliminates the need for external interfaces previously required between systems,
and provides additional benefits that range from
standardization and lower maintenance to easier and/or greater reporting capabilities.
Some organizations -typically those with sufficient inhouse IT skills to integrate multiple
software products - choose to implement only portions of an ERP system and develop an
external interface to other ERP or standalone systems for their other application needs. F
or example, one may choose to use the HRMS from one vendor, and the financials
systems from another, and perform the integration between the systems themselves.
Ideally, ERP delivers a single database that contains all data for the software mod
ules, which would include:
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Manufacturing Engineering, Bills of Material, Scheduling, Capacity, Workflow Manage
ment,Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects,
Manufacturing Flow Supply Chain Management Inventory, Order Entry, Purchasing,
Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods,
Claim Processing, Commission Calculation.
Human Resources Human Resources, Payroll, Training, Time & Attendance, Rostering,
Benefits
Data Warehouse and various SelfService interfaces for Customers, Suppliers, and
Employees
ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K
problem in their legacy systems. Many companies took this opportunity to replace
their legacy information systems
with ERP systems. This rapid growth in sales was followed by a
slump in 1999, at which time most
companies had already implemented their Y2K solution.
ERPs are crossfunctional and enterprise wide. All functional departments that are
involved in operations or production are integrated in one system. In addition to
manufacturing, warehousing, logistics, and information technology, this would
include accounting, human resources, marketing, and strategic management.
An ideal ERP system is when a single database is utilized and contains all data
for various software modules. These software modules can include:
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b. Financials: Accounts payable, accounts receivable, fixed assets, general
ledger and cash management, etc.
c. Human Resources: Benefits, training, payroll, time and attendance, etc
d. Supply Chain Management: Inventory, supply chain planning, supplier
scheduling, claim processing, order entry, purchasing, etc.
e. Projects: Costing, billing, activity management, time and expense, etc.
f. Customer Relationship Management: sales and marketing, service,
commissions, customer
contact, calls center support, etc.
g. Data Warehouse: Usually this is a module that can be accessed by an organizations
customers, suppliers and employees.
b) Mapping of Structures a) high shortage risk and effect, long lead and reaction
times, high total inventory cost, frequent engineering changes.
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Main Features – The main features of such system are –
Significance of Documentation
• The content of the process Documentation System includes the area supply chain
management from the Odette supply chain Management Group. The system
includes graphical process documentation, in the form of process chains, as well
as the entire range of documentation related to the processes.
• The entry point in the documentation system is the model “Process Overview
SCMo”. This model is the starting point for the navigation to other models.
• Microsoft has a team project management solution that enables project managers
and their teams to collaborate on projects. The Microsoft Project 2002 products in
this solution are Microsoft Project Standard 2002, Microsoft Project Server 2002,
and Microsoft Project Server Client Access License (CAL) 2002.
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Research communities where massive amounts of data are being generated without any
means of managing this data over any length of time.
• Support adoption and use of persistent identifiers and shared persistent identifier
management services by the project stakeholders.
• Plan for a sustainable, shared identifier management infrastructure that enables
persistence of identifiers and associated services over archival lengths of time.
Project Outputs
1. Best practice and policy guides for the use of persistent identifiers in Australian e-
learning, e-research, and e-science communities.
2. Use cases describing community requirements for identifiers and business process
analysis relating to these use cases.
3. E-Framework representations of persistent identifier management services that
support the business requirements for identifiers.
4. A “pilot” shared persistent identifier management infrastructure usable by the
project stakeholders over the lifetime of the project. The pilot infrastructure will
include services for creating, accessing and managing persistent digital identifiers
over their lifetime. The pilot infrastructure will interoperate with other DEST
funded systemic infrastructure. The development phase of the pilot will use an
agile development methodology that will allow the inclusion of “value-added”
services for managing resources using persistent identifiers to be included in the
development program if resources permit.
5. Software tools to help applications use the shared persistent identifier
infrastructure more easily.
6. Report on options and proposals for sustaining, supporting (including outreach)
and governing shared persistent identifier management infrastructure.
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