Professional Documents
Culture Documents
Kundan K. Gautam
MBA (HR), B.E. (Electronics).
~~ TechKna11ledgi
~r PubI i c a t i o n s 11111111111 n
(Book Code :ME128A)
.
\
INDEX
MCKlute•l
Syllabu ■ : Definition o1 a project. Project Vs Operations. Necessity of project management. Triple constraints. Project life cydes (type.al
I and atypical) Project pt,ases and stage gate process. Role of project manager. Negotiation9 a.nd resolving conflicts. Project menagement
in various organization structures. PM knowledge areas as per Project Management Institute (PMI).
1.1 Introduction .............................................................................................................................................................- ...........- ... - ... 1. 1
1.2 Project .............................................................................................................................................................·-·-······..-·-···· 1 • 1
1.2.1 Projec1 Management.............................................................................................................................. -.-·.. ··· ..... 1. ,
• 1.3 Operations ....................................................................................: ............................................................................·--······ ..··- 1 • 1
1.3.1 The Difference between Projects and Operations .................................................................._ ......................_ ... _ ... , • 2
...........
1" ,,,u,111,11,
I, Module 3 .J
l£hapter 3 : Pro)ect Plennlng and Schedullng 3-1 to 3-41
I Syllabu• : Work Breakdown structure (WBS) end linear reaponslblllty chart, Interface Co-ordination and concurrent engineering, Protect
cost estimation and budgeting, Top down and bottoms up budgeting, Networl<Jng and Schtdullng technlque1. PERT, CPM, GANTT chatt,
Introduction 10 Pro 8C1 Mana ement Information stem PMIS .
~. Project Planning ............................................................................................................................................................................. 3 • 1
1
3. .1 Purpose ol the Projec1 Plsmlng.......................................................................................- ...............- ......._ ......... - 3- 1
1
3.1.2 Basic Processes ol Project Planning ........................................................................................................................... 3 • t
3.1.3 Important Areas ol Project Planning ..................................................................................................- .........·-···......... 3- 2
3.2 Projec1 Scheduling ................................................................................................................................,........ - .............................. 3. 2
3.2.1 Project Scheduling Process ........................................................................................................................- ............... 3 - 2
3.2.2 Sctieduling Techniques ..............................:...............................................................................-••- .........-·-···- ····.. 3 • 3
3.3 Work Breakdown Structure (WBS) ................................................................................................................- .............- ...........- 3 • 4
3.3.1 Characteristics of a Work Breakdown Structures......................................................................................................... 3 - 4
3.32 Advantages of WBS ....................................................................................................- · .........· --··-·--·····-3 • 5
3.3.3 Work Breakdown Structure Rules ................................................:......................................·-···..................- -..·······3 - S
3.3.4 Work Breakdown Structure Diagram..................................................................................- ....'.......- ....·····--·····•···3 - 8
3.3.5 Different Forms of Work Breakdown Structure ......................................................................· - - · - · - - - -....3- 7
3.3.6 Process to Create a Work Breakdown Struciure ...................................................:..............:.........- · - · - - -........3-8
3.4 Linear Responsibi!ily Chart .......................................................................................................................... ·-·-·-----3· 11
3.4.1 Preparation of LAC.................................. ·......................................................................-........... · - . --·3 • 11
3.4.2 AdVantages ol Linear Responsibility Chart ............................................................................- .................- -...... 3 • 12
3.4.3 Disadvantages of Linear Responsibility Chart .........................: .........................- ............................- .... _ _ _ 3 • 12
3.5 Interface Coordination ...........................................................................................·........................................- ...···---··..···3 • 13
3.5.1 Objectives.....................................................................................................................................- ...······-···· ........ 3 • 13
3.5.2 Process .........................................................................·............................................................ ---· ....· - - ·...- 3 • 14
3.5.3 Functions of lnter1ace Coordination .........................................................................................................- ........... 3 - 14
3.5.4 Roles and Responsibilities of lnter1ace Coordinator$ .................................................................................................3 • 14
3.6 Concurrent Engineering .............................................................................................................................................._ ..............3 - 14
3.6.1 Benefits of Concurrent Engineering ...................................................................;.....................................- - .......... 3. 16
3.6.2 Advantages ol Concurrent Engineering ...................................................................................................· - ······.....3 - 16,.
3.6.3 Disadvantages of Concurrent Englneerfng ......................................................................................·-·······-- ····..... s - 16
3.7 Project Cost Estimation and Budgetlng ........................................................................................................................................3. 16
3.7.1 Characteristics.................................................................................................................................................3. 17
3.7.2 Key Components of a Cost Estimate ................................................................................................................ .......3. 17
3.7.3 Project Cost Estimation Techniques ........:·········........................................................................................................ 3 . 18
3.7.4 Cost Eswnating Process·............................................'............................................................................._ .... - ... 3 - 19
............
3.7.5 Advantages ol Cost Management............................................................................................................,. ,.............3. 20
3.8 Bottom•Up Estimating ............................................................................................................................·............. ·....., .•. •·.........S. 20
,,,11,,, ••• ,
3.10
~~;:.:~:=::::- - --- - - - -. _ _ _ .----__ _ _ - - - - _.-_• -_. . - - : ::::::·· : ::-~:::;
3.1 o.1 S1eps used In Network Planning ........................... · ...................................................................3. 23.
Netwonl Olagram ................................................m are .....:::::::::::::::::::::::·· ................ ................................................: .......: ..:.......3-23 •
3.11 .1 Main Functions of a Network Dlagra .................................................3 • 24
3.12 ~ .=.
3.12.1 Basic eoncepts ol Network An Y5I • ..............................3. 29
3.13
:::
40
3.14
:,:~""":::-.;:~~~:;;:.;;;::;•: ::::•••:: : •------ ----•---------- - ---------- ------ ---. ···::
3.15
3.15.1
3.15.2
3 .15.3
3.15.4
Syllabue : Crashing project time, Resource loading and levelling, Goldratt's critical chain, Project Stakeholders and Communication pl_an.
Risk Management in projects : Risk management planning, Risk Identification and risk raglster, Qualitative and quantitative riskl
assessment, Probability and impact matrix. Risk response strategies for positive and negative risks.
6.10
5.10.1
5.10.2
5.10.2 (a)
5.10.2 (b)
5.17.1 (a} Pros & Cons of Project Management Outsourcing .............................................,'.. ;:..................................................5-35
5.17.1 (b} Using IPECC to Understand Project Management Outsourcing ..............................................................................-5 • 35
.
6.2.3 Ethical DIiemma ...........................................................................................................................................................6-4
6.2.4 Traits of Ethical Professlonala ...........................: ..................................................................... :..........................:.........6 - 5
............
,,1 1tc ath•1
Definition of a project, Project Vs Operations, Necessity of project management, Triple constraints, Prnject fife cycles
(typical & atypical) Project phases and stage gate process. Role of project manager, Negotiations and resolving
conflicts, Project management in various orgahization structures, PM knowledge areas as per Project Management
Institute (PMI).
1.1 Introduction
Project Management for long has been an Important functional area of large no. of organizations. Today, large no. of
organizations execute 50% of their work activities in the form of projects. There are large no. of project organizations
whose main activity is to undertake and develop projects for. other organizations. The projects executed are of all kinds be
ft infrastructure, IT, industrial setup or services. The successful execution of a project requires an effective use of
management tools & te(:hniques in order to achieve the objectives. Thus, Project management as a subject of study has
become important for management personnel and students ..
1.2 Project
- A project is a temporary work done with a definite start and end. It is generally unique in nature unlike a regular
operation. It is planned and executed keeping a specific problem or opportunity in mind. The aim is always to achieve a
specific goal that helps solve the problem or avail the opportunity present.
For example : Building a bridge or a building, Developing a software, Launch.Ing a p~duct, Conducting an event, Doing
a market survey etc. Almost everyday around the w9rld large no. of projects are initiated.
The success of any project is measured by the objectives achieved at the end. Some of the important objectives to be
achieved are the set standard of the output, its timely compietion and meeting budget limits. In order to achieve the
objectives, the role of management becomes very Important. Project Management is the application of management
knowledge, skills, tools and techniques to project activities In order to meet the project requirements.
Operations
Operation Is a vital organizational function. It Includes production of goods as well as services. The process of
operations turns raw materials Into goods. The quality of products to a great extent depends on the operational
efficiency and effectiveness.
- Operations include a three step process- Input, Process and Output. It is a routine function within an organization and
is performed as long as the business of the organization exists.
... For effective and efficient operations Its proper management Is of utmost Importance. Operation management is the
administration of business practices to create ~he highest level of efficiency possible within an organization.
There are many differences between projects and operations. Some differences are as follows :
(i) Projects are unique and temporary, while operations are ongoing and permanent with a repetitive output.
(ii) Projects have a fixed budget, while operations have to earn a profit to run the business.
{ill) Projects are executed to start a new business objective and terminated when It is achieved, while operational worfr
does not produce anything new and is ongoing.
(Iv) Projects aeate a unique product, service, or result, while operations produce the same product, aim to earn a p
and keep the system running.
(v) There are more risks in projects as they are usually done for the first time, while in operations there are fewer risks
they are repeated many times.
(vi) Projects are performance Intensive while operations are efficiency intensive.
(vii) Projects are managed through project management and operations require business proces~ rr,anagement.
Understand this difference through an example : Assume you were given a _project to build a car manufactu
facility. You build the facility and deliver ft to the client. Your Job is completed, and the client has started manufacturt
cars. In this example, building the facility is an example of a project, because here you
. const ru cte d a car manu fa ctu
.
facility and handed It over to the dlent and signed off.
However, once the faclllty ~tarts working and the car manufacturing process begins this Is
operations, because here the facility is producing a repetitive o~tput, cars. Therefore, t~is Is an
operation.
~. development and Implementation of project's phases : A project generally Involves different phases such
_ succesSTu1
as Initiation, Planning and Design, Construction and Execution, Monitoring and Control, Completion. The smooth and
uninterrupted development and execution of all the phases ensures the success of a project.
productive guidance, efficient communication and supervision: The success or failure of a project Is highly dependent
on teamwork which requires collaboration among Its members. Proper guidance, Good communication and r~lar
supervision are of major Importance as Information needs to be articulated In a dear, unambiguous and complete way
so everything is comprehended fully
_ Achievement of the project's main goal : Project management has the responslblllty of achieving the set goals of a
project even with the presence of all constrains. ·
_ Optimization of the allocated resources : The success of the project also depends on the optimum utilization of all the
resources. This is a major objective of Project management. The Identification and proper utilization of the resources
are to be done to achieve the goals.
_ completion of project as per the client's exduslve needs and objectives : This might n;,ean that you need to shape
and reform the client's vision or to negotiate with them as regards the project's objectives, to modify them into
feasible goals. Once the client's aims are clearly defined they usually Impact on all decisions made by the project's
stakeholders.
1
~ .5 Importance of Project Management
l aearfy defines the plan of the project before It begins : The importance of planning in project management cannot be
I ignored. The more complex· project, the more scope there is for chaos. One of project management's primary
functions is to tame the chaos by mapping out a clear plan of the project from beginning to end.
• Establishes an agreed schedule and plan : Schedules help to elimln·ate delays or overruns and provide a plan to be
followed for all those involve~ with the project.
. .
Create a base for teamwork : People are required to work In a team on a project. This Is due to team synergy benefits
t hrough the sharing and support of knowledge and skills. Bringing people together in this way inspires team members
to collaborate on a successful project.
Maximization of Resources : Both human and financial resources tend to be expensive. Project tracking and project
risk management ensure that all resources are used efficientlv and are accounted for economically.
Facilitates Integration : Projects that are completed w ithin an organisation are generally integrated with wider
business processes and systems. Integration forms the value aspect of projects and their management.
Keeps control of the cost : Depending on the scope of the project, some projects can Incur organisations significant
costs. It is important therefore to keep on budget and to control spending. Project management greatly reduces the
risk of budget overruns.
Manages O,ange : Today, more than ever, change Is something which all organisations face. Projects, during their
running, also face changes and must be prepared to face such deviations from the original plan. Project management
allows for effective change management and makes It less of a complex task.
Ensures Quallty : More so than ever, it Is important to produce quality results. Project management helps to Identify,
manage and control quality. Quality results ~ake clients happv, which Is a w in-win situation for all Involved•
no.....,.
• •••••c at &
••'
Business functions or projects are not performed In closed environment. There are a lot of uncertainties that surround
a project. These are called environmental factors and they play a vital role in the success or failure of a project. They m
be internal as well as external to the organization and often many of them are beyond the control. Therefore it beco
apparent to Identify all of them in time so that pro-active measures can be planned to minimize the damage
interference In case such a situation arises.
1. Internal Environment : It comprises all those factors that are present within the organization and that may impact t
success of the project. They are g_enerally within organization's control. Some of them are
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~ Project ·Management (M~) 1-5 Project Management Foundation
Triple Constraint
It is a model of the constraints Inherent in managing a project. Those constraints are threefold. They an~
0 Cost: It is the financial constraints of a project also known as the project budget.
o Scope : It is the tasks required to fulfil the project's goals
0
Time : It is the schedule for the project to reach completion
The Triple Constraint states that the success of the project is impacted by its cost, scope and time. As a manager of the
project, you can trade between these three constraints. However, changing the constraints of one means that the
other two will suffer· to some extent which should give you an idea of ho~ important the Triple eo·nstraint is when
managing a project.
If you are managing a project you are working with the Triple Constraint too. Therefore, it can·be easily argued that
the Triple Constraint becomes a vital concept in project management.
- While it's true that' the Triple Constraint is an important part of any succes~ful project, it doesn't determine success.
Projects are made from many parts, more than the three that. make up the Triple Constraint but these factors are
always at play in the project.
1. Cost
- Cost is the first financial constraint that affects a project. It is the flnanclal commitment that Is made to the
project. Cost of a project Is dependent on several components ranging from the materials to people. Apart from
that there are outside forces also that Impact a project and therefore they too are considered as the cost of the
work.
- Costs are divided Into fixed and variable cost. Both of them are associated with a project. Costs vary depending
on various factors such as the use of contract workers or outsourcing.
The scope of a project Is the second constraint. It outllnes the specific requirements or tasks which a~e "'"'°'sa,w
t 0 compete
I
the project. Managing the scope Is vital In any project, whether they are a811e software ProJectsar
·
well-planned waterfall projects. Failing to control the scope of the project will not help in delivering it on·-ar
within budget.
Managing scope is critical. It Is Important to prioritize the tasks so that resources are planned and assisn.c1
effectively.
Project management has a specific feature called task management that help ' a project easily assign, sort and
prioritize the tasks. This way all ttie critical project tasks can be delegated to the right people. It prevents the
scope to be compromised. Additionally, by offeri_ng file sharing and task co~ments, collaboration on the tast
level is encouraged.
Manilging and establishing scope a lso requires effective handling of stakeholder expectations. Stakeholders often
o I have new demands that keep coming up during the progress of a project and that need to be fulfilled. This can
especially be the case in long term projects where new stakeholders might be Introduced in the middle of the
project.
In order to fulfill the requests and new demands of stakeholders that come with the progress of the projects, it is
important to manage change. At the same time care should be taken to ~ccommodate only those change
requests that are necessary to achieve project goals and deliverables.
The steps used under scope management are essential as the amount -of time each task required 1.s critical
a
assure the quality .o f the project. This can have great impact on schedule and cost particularly for a proj
/' which is large.
3. Time
nme is a very important project constraint. The amount of t ime required to complete a project or produce
deliverables must be estimated well for a good schedule. Usually, this.ls done by flrst identifying all the tasks
are going to be performed during the entire life cycle of the project.
For estimating time, first of all a Work Breakdown Structure (WBS) Is used generally to convert the large p
goal into a series of manageable tasks. These tasks ~re then prioritized and placed on a tlmeline.
A useful tool In the form of Gantt Charts can also be used to prepare the project schedule, .w ith each task
place on that timeline, with task dependencies linked, and durations determined. Data from previous pro
can also help make more accurate estimates.
For estimating time, various project management software features such as an online Gantt chart are aval ·
Here, time gets updated automatically as your team completes their projeot tasks, so data is always accur~te. ·
According to the Project Management Body of Knowledge (PMBOK), the schedule can be managed through a p
of time management. Those steps are as follows . ~
(IJ Planning schedule : Before beginning with a project, necessary policies, procedures and documentation with regard
to planning, executing and monitoring of the project schedule should be prepared.
(Ii) oeflnlng Activities : It is very Important to Identify and record all the actions that can be taken to produce the project
deliverables.
(Ill) sequencing Activities: Next step Is to Identify and record the order of the work activities In the right logical way.
(Iv) Estimating Resources Required : A project requires various resources In various quantities. Therefore, It Is Important
to estimate What type of and how many materials, p~ople, equipment, supplies, etc. will be required to perform each
activity.
(v) Estimating Activity Durations : In this step, you calculate the time required to complete each activity with the
required resources.
(vi) Developing Schedule : In this step, you Analyze activity, duration, resources and timellne to develop a proper
schedule.
(vii) Controlling Schedule : This Is done by comparing the planned schedule to the actual progress. It tells whether the
project is on track or not. Necessary actions can be taken based on the ana_lysls.
Thus, as we can see, the triple constraint should be balanced to reach a successful conclusion.
The project management life cycle is a process that is followed by nearly all the project managers. It provided a
~amework within which any project can be well managed. Leaders around the world have found that following a project
e cycle is critical for the success of a project. . ·
A project cycle can be of two types
Typical : It is also called a standard Project life cycle because It follows a set of steps that are predictable and prove
successful in most of the cases. '
• Atypical : It is also called Adaptive Project life cycle. It deviates from the set steps and is used mostly for projects
where rapid changes are expected and scope is not possible to define upfront.
In project m~nagement there are five phases: initiatin& planning, executun& controlling and closing. The five phases of
.I
project constitute the project management life cycle.
. Initiation .
. .
This Is the phase where all projects begin. In this phase, t~e value as well as the feasibility of the project is
determined. The project is approved or rejected on the basis of these two documents. They are created to convince
the stakeholders or sponsors: •
(I) Business Case : A business case Is a document prepared t~ justify t·he need ·of the project. It anal;,,ies the benefits
to be offered by the project both in ter'!ls of financial gain and problem solving.
(IIJ Feasibility Study : This is an important report. It analyze whether it Is feasible to start the project and complete
on the given time. You need to evaluate the project's goals, the timellne to comp.letion a·nd the total cost to be
Incurred. You also require to identify the resources to be requlr~d to complete the project.
Once tha project Is approved, the next step Is to build a project team and start working on.project planning. Pl
helps to achle th
ve e goals within budget and allotted time. .· .
The project plan Identifies the resources, financing and materials needs. The plan also gives your team directton
the following : · ·
(I) Scope : A Scope statement reiterates the need for the project and lde~tifles its deliverables and objectives. . .
(II)
Definition : It is a process used to break down the larger deliverables into smaller ones th at help manage:
better.
{Ill) Tasks : Tasks are performed to produce the deliYerables. Thus thel~ identification and dependence on
tasks must be figured out. .
(Iv) Schedule : This refers to the duration of the tasks and their completion date and time.
(v) Cost: Costs are the financial commitments involved·across the 'project and it helps formulate a budget.
(vi) Quality : Quality objectives are important to be defined and 'met throughout the project.
(vii) Organization : Project organization must be clea.rly described with a good structure including (eporting
progress.
(viii) Staff : Determining roles and responsibilities of the project team is another vital aspect of project planning.
(ix) Communications : Decide how information wiPI be disseminated, to whom and with what frequency.
(x) Risk : Project plan also includes assessment of possible risks that are likely, and their impact on the project and
how to resolve them. ·
(xi) Procurement : Decide what work or materials will be contracted. Define those contracts and who they'll go to
3. Execution
·After planning is done, it's time to start the project execution. This phase is made up· of the following detail
processes:
(i) Executing the Plan : You begin by following the plan you crea~ed. Assign the tasks to team mem~ers and mana
and monitor t~eir progress with project management t~ols
(ii) Admlnlstrat_e : This is done by managing the _contracts secured Ion the project.
I. Close
1
This Is the last phase of the cycle. A project Isn't over tlll the project goals and objectives have been met. The last
phase of the project Is all about meeting the goals. This Involves the following set of processes:
(I) scope: Make sure the project deliverables have been completed as planned.
, (II) Administration : Close out all outstanding contracts and administrative matters, archive. the paperwork and
disseminate to proper parties.
_ • The life cycle of a particular project Is composed of different phases, around which the project management scheme is
organized. There are different types of project life cycle depending on the organizations involved as well as the phases.
one of the project fife cycles important In project management is the adaptive or atypical project flfe·cyde.
An atypical project life cycle is change-driven. It Is an agile way of doing things as it is intended to the high level of
changes. It needs on-going stakeholders involvement. In this life cycle, the overall scope of a project is broken down
, into different sets of requirements or sub-projects that wiil be undertaken individually. During the iteration, the
functionalities of the cycle is discussed, implemented and, finally, reviewed by the client.
Here iterations are very rapid usually with a duration of 2 to 4 weeks and are fixed .In time and cost. This life cycle is
· used for projects where rapid changes are expected and scope is not possible to define upfront. So, a change during
the project is naturally handled in rapid iterations.
Also, the end result is delivered at the end of 2 to 4 week iteration. Like, a yearlong project_will have multiple 2-4 we~k
iteration and each iteration will execute Planning, Analysis, Design, Code, testing phases and deliver the result at the
end of the iteration.
The advantage of atypical life cycle is that it is appropriate for projects that involve higher levels of complexity and
uncertainties such that each iteration of. this particular project life cycle should address issues for every task and each
task should be completed before another task is undertak~n. The risk _is minimized for this particular project life cycle.
Constant Change
2. Urgency
f
Need to Learn
Small Team Ability
Deliver in Small Increments
When we work in adaptive, there's a sense of urgency, we've to move quickly. We also recognize before we get
underway that there will be constant change. There will always be change on projects. It's constant change after
change and de~ision after decision. You need a different framework for an adaptive project then you do for predictive,
incremental or iterative projects.
Unlike a predictive lifecycle or incremental iterative where you could have one factor suggest that t~is is a predicted,
or this is incremental becau~e we can do phases or stages. In an Adaptive project you need constant change as a .
definition. There will be a sense of urgency to learn because you don't know the goal because it's unclear.
For this methodology, or sometimes referred to as the Agile Manifesto, It Is a small team ability. Small teams set out
to work to figure out where to go.
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project Management Fo
1-10 ,
. Project Management (MU) 5 exploring but unsure wttictl Pro
. Th~ State Gate pro:ess is ·a patented tradema~k of Dr. Robert ·c o~per. The center of this model ~s on dev~~
innovative
. . processes,
. . . . Waterfall process.
It 1s also called the . This model offers a prOJe· ct management technique
• •:
whk:h
proJect 1s d1V1ded into several stages. The stages are separated by 'gates' wh ere d ecIs1ons
· are taken to decide whether'
not to proceed to the next stage. This model Is generally useful while d I · . . ·
improvements in a. · eve oping new products or bringing change '
1.10.1 Gates
Gates in state
, gate process are decision points In a project. They help take a d l . · · ,
, ·: "'
~tage or not. The decision is based on the availablllty of Information ec sion whether to continue then
O th
1s taken by a manager: or a committee. n e project progress till that moment. Th~ de . •
At each gate, the quality and repercussions of Id . . ' '. •,
. b . an ea are asses d Th
execution, usmess motivation to continue flnanciall se . e areas of assess . . . ., . .'
the project successful. After each gate one of th ~ Yand the action plan showing the th' ment are the ~uality.
' e ,ollowing deci I mgs that need t b -:.i -- · t "'
- Go: This decision consid th s ons Is to be taken ; o e uone,. o
ers e project-good enough to . , , . :..:, .
. . . move on to the next stage. .i
1.10.2 Stages
The Stage Gate process has five stages. They are connected to each other by gates. Each stage is designed to collect
specific information :
stage O: Discovery
Stage 1 : Scoping
Stage 2 : Business Plan Concept
Stage 3 : Development
Stage 4: Testing and Validation
Stage O : Discovery
I . .
This is the initl.11 preparatory stage. It identifies the project ·a company wants to undertake. For that, Ideas are
generated in brainstorming sessions. ~veryone from Employees, Customers to the suppliers are involved in the session.
~ey provide useful Information for idea generation. An Idea is first selected and then proposed. If the idea is not is not
. found good enough the gate closes here.
Stage 1 : Scoping
In this stage, the product and the existing market for It are assessed. Product's strengths and weaknesses and the
benefits it brings to the user/consumer are evaluated. All the possible threats from competitors are also taken into
account. The assessment of the threats helps decide whether project will not continue.. If the threats.are big the chances
are that the gate will be closed.
Stage 2 : Business Plan Development
This is the last stage of concept development. Here; business plan is developed considering all kinds of opportunities,
~reats, competitions, et c. It is crucial before starting the actual project lmple~entation. Thl.s stage indudes the following
sob-stages: .
Here, a document of the project Is prepared to describe and define the project requirements Including the legal health
and safety requirements.
This plan contains a list of all tasks that are to be executed during the entire project development cycle. It also o
the roles and responslbllltles of the people Involved In the execution. The expected launch date can also be me
In this plan.
(Iv) Feaslblllty review
Here, a fea slblllty study Is done In which different departments assess the plarfs chances of succeeding. Even at
stage If it appears that the business concept Is not having sufficient potential the gate Is closed.
Stage 3 : Development
- At th is stage, the plans are executed and simple tests are conducted. For example, at this stage c~stomers can
asked for their feedback of the product. A timellne with specific milestones that have to be achieved are created
the development team.
- This tlmellne can be revised and updated regularly. It also takes help of multi-functional teamwork. Different
departments provide input with expert advice. This stage results into a product prototype, which is then extensively
tested during the next stage. The gate remains closed if the prototype of the product has not been sufficiently
developed.
This test is done to identify all possible production errors or any other problem area'. At this stage, the product isi
almost ready to be sold. The groups that carry out this test include staff, regular customers and suppliers and are
closely tied to the organization.
In this part, the product is tested in the field by various participants who can make a valuable contribution. This
usually done with the help of specific customers. Whether this target group is interested in the product is evalua
The characteristics they consider important and the context in which the product will be used are also assessed.
This is an optional test as the product is offered in the market only when it has passed through the previous t
stages. This ~est is just to assess to see whether the product sufficiently matches the needs and wishes of
consumer after a period. The product is usually pretty much in Its final form after testing. However, a good marketln
plan Is equally important at the time of launching the product. If not, the gate to the next stage will remain closed.
. 1n· this stage, the marketing strategy comes into play. The product is ready to be launch d d h . ,
. . · e an t at requires atten
by means of an advertising campaign, free publicity and Interviews or other promot· . .. .
. . 1ona1 act1v1t1es. An estimate ls m
a~out the quantity that will be sold. Policies regarding production inventory and d' t' 'b . . ·.
, 1s n ution are prepared In this st3
the sales team is predominantly responsible for ensuring a smooth process. · ·
relative impact
He identifies and obtains support and advice required _for the management, planning and control of the project,
managing project a~ministration
_ , He has to regularly conducting a project evaluation review to assess how well the project is being managed and then
. he prepares any follow-on action on the received recommendations . ·
1.12 Negotiation
Negotiation is a process used to resolve disputes of different kinds_between different people or group. It is done by
conducting consultations between the involved parties to reach a consensus.
. .
Negotiation involves a discussion between two -or more parties involved: It aims at reaching an agreement or
settlement. It can take place at any time in a project, program or portfolio and it may be formal or informal in nature.
- Formal negotiations are held on issues such as contract agreements while Informal negotiations include discussions to
resolve conflict, or discussions to obtain internal resources.
The skill of negotiation is used in many areas of Project Management: They could be managing conflict, contract,
requirements management and stakeholder management. Negotiations can take place at any time within the project
management life cycle. Depending on the issues, It can be either formal or non-formal. Negotiations· are generally
initiated by the project manager and therefore he should have excellent negotiation skills.
Negotiation is done through a process whlc~ can be categorized Into phases. These include planning. discussing.
proposing and reviewing.
Planning is the first phase. It helps a manager in preparing all the relevant Information needed for the discussion. The
' second phase is discussing. It refers to setting up the scene for discussion. In this phase, the conflicting Issues are
e><plor@d and discussed.
The proposing stage Involves creating the solution to solve the problem. ,This may also Include bargaining before
arriving at ari agreement. Once the agreement Is done, the Information In this regard Is disseminated all throu,hout
the organization. Finally, the last phase reviewing Is carried ol)t to see whether it resulted Into a win-win sltua.tion for
both the parties or not.
Planning : This is the first step where the focus of the negotiating party is to gather as much Information as possib
That helps in preparing better plans. A plan is prepared by setting goals that' could be agreed upon.
Discussing : Project managers are often required to open the negotiations by giving the details of the conflict~
they explore and discuss the key issues. The involved parties must listen to, probe and question and regularly ch
their understanding of the discussion.
Proposing : At this step, the discussion Is over and based on that a proposal is made and communicated clearly
openly to all.
Bargaining : In this step, the negotiation begins for trade-offs. The parties involve try to accommodate each oth
demands.
Agreement : At this step, an agreement is reached and based on that an agreement is done, prepared on paper
signed as there is no substitute for a written record;
Review : Here, the outcome is communicated to all parties and the consequences Incorporated within the p
management plan.
Project managers often face a situation where negotiation becomes necessary. Therefore they need to be prepared
and apply negotiation skills throughout the project life cycle. Early on In a project, as requirements are being assessed
Initial plans produced, the project manager needs to balance the time, cost, quality and scope requlrffllents of the
and
project and negotiate with stakeholders.
_ AS resources are mobilized and procured, Internal negotiation with line managers who 'own' the rHOUrces and
conduct more formal contract negotiations with potentlal providers become necessary.
A.s the project progresses, conflicts may arise. Therefore the project manager wlll be required to negotiate the issues
of conflicts.
_ In some environments, there may be specialist support available. It Is Important for project managers to know when to
ask for help from, for example, the HR or legal departments within the host organization.
1.13 Conflicts
Conflicts are nothing new. We all experience it in our dally lives. It ranges from minor disagreement to a major
problem. But they have the potential to d!srupt organizational activities and progress. Being a project manager or a
team leader, these conflicts are especially rampant and thus damaging in project environment.
Since project activities are executed by human resources ·there Is a possibllity of conflict. Everyone tries to
execute activities in order to achieve project objectives as per the expectations of ·the stakeholders.- While
managing human resources, conflicts are natural but they become serious when they lead to quarrels, fights
and even a breakup of the project .team. According to the PMBOK Guide, "conflict is inevitable in a project
environment.#
o Inevitable
o Must be managed
Cultural differences
Poor Planning
After defl~ing the problem, the PMBOI< Guide suggests five techniques for project management. let's revi~
techniques and id .
. cons er when to use them In managing conflicts.
1
· Wi th draw/Avofd Conflict
This Is a good technique where people involved retreat from an actual or potential conflict situation.
postpone the issue to be better prepared or to be better resolved by others. Suppose you are short-tern ·
With drawing can be an excellent technique. By withdrawing, you have the opportunity to come up With
Ideas to address the conflict.
Temporarily avoiding the conflict allows you to take time and rethink over the issues It also means you have
chance to think through the other person's perspective. While ~ithdrawing and avoiding is valuable in the
term, it can be over used. If you retreat· from a conflict situation and fail to follow up, the conflict is likely
. '
become worse over t ime.
2. Smooth/Accommodate Conflict
In this technique, emphasis is given on areas of agreement rather than .areas of difference. One concedes h'
position to accommodate the n·eeds of ~thers in order to maintain harmony in relationships. This approa
maintains professional relationships which are critical to project success. On long tenn projects, anything over:
few weeks, persevering and strengthening the project team becomes very important. Project team mem
constantly emphasize differences making progress on the project becomes very difficult.
Areas of agreement to emphasize may vary depending on the context. You can look at how disagree
impacts others on the team.
3. Compromise/Reconcile Conflict
In this technique, the focus is on searching for solutions that bring at least some degree of satisfaction to·
parties and the conflicts is resolved either temporarily or partially. This technique recognizes that some ~
cannot be fully solved.
But, this technique has some drawbacks too. The project manager needs to understand the needs of the
,or stakeholder for successful negotiation. The project manager also has to be willing to make changes
project. For compromise to be successful, each party needs to benefit and sacrifice party of their objectives.
Project ~anagers can also compromise across time. For example, you m~y respond to a stakeholder's reqtt
additional functionality by deferring their request to phase two of a multi-phase proje~. Though, this.
change Is best handled through a change request.
4. Force Conflict
· This technique creates more problems thari solutions. Here, the focus is on pushing one's viewpoi~t
expense of others thus offering only win-lose solutions It Is usually enforced through •. t
. · a power pos1t1on o
an emergency. From time to time, project managers have to take a stand and I th •
app y eir power.
As the PMBOK definition suggests, applying force to resolve fl'
con lets comes at a cost The P
manager is likely to harm relationships with the project team b · h" ·
. Y using t rs method. Abuse or overuse
technique tends to cause more conflict in the long term o h . .
. d · ne s ou 1d use thrs technique only when ab
require . . . ,,,,
5, Collaborate Conflict
_ Th6S technique focuses on Incorporating multiple viewpoints and Insights from differing perspectives. It require, a
cooperative attitude and open dialogue that typlcally leads to consensus and commitment.
_ This technique Is the most productive technique. It has two major benefits; one, the conflict Itself Is solved and
second, the project team Is strengthened as a by-product of working to solve the problem. This technique Is most
likely to be successful In situations where the project team already has a high level of trust.
The functions of Organizing and organization are Important In the following ways :
- Sp I II t
° ·
ec a zat on : In the process of creating a suitable structure, care Is ta ken t see that the activities are divided•
subdivided Into compact and convenient jobs. An organizational structur~ thus promotes specialization, s
. performance of tasks and efficiency.
- Well-Defined Jobs : The organization structure clearly defines and differentiates the jobs of managers an~
th
managers. This helps the process of looking for and selecting the employees and fitting the right person to e
job.
- Clarifies authority a.nd Power : A clear-cut definition of authority enjoyed by each manager and his jurisdiction
activity minimizes conflict and c~nfuslon about the respective powers and privileges of managers. A good organizatl
structure clarifies authority and power.
- Avoids Duplication of Work : The organization structure helps In avoiding duplication of work and over1apping i
responsibilities among various employees and work units. This is because specific jobs are assigned to individuals a
work groups.
- Coordlnatl(?n: The organization structure serves as a mechanism for coordination and unification of efforts of peo
Harmony of work is brought about by higher levei manages exercising their authority over interconnected·activities
lower-level managers.
Line organization is the simplest form of organization and ls most common among small companies. H
authority is embedded in the hierarchical structure and it flows from the top of the managerial hierarchy d
different levels of managers and subordinates. and further down to the operative levels of workers. It
identifies authority, responsibility and accountability at each level. · ·
These relationships in the hierarchy connect the position and tasks of e~ch level with those above and be
There is clear unity of command so that the person at each level Is reasonably independent of any other
at the same level and is responsible only to the person above h·1m The Ii I
• ne personne are directly invol
achieving the objectives of the company.
Because of the small size of the company the llne structure is sim I d h ·
' P e an t e authority a d lb"
clear-cut, easily assignable and traceable. It Is easy to de I n respons 1
ve op a sense of belo • h .
communication Is fa st and easy and feedback from the empl ngmg to_t e organ
. oyees can be acted upon fa ster. .
(b) Line and Staff Organization ·
taff • This group has a general background usually similar to e,cecutlves and serves as assistants to top
GeneraI S ·
em ent They are not spec.lallsts and generally have no authority or responslblllty of their own Th.., may be
manag · · -,
known as special assistants, assistant managers or In a college setting as deputy chairpersons.
spedallzed staff : Unlike the general staffs who generally assist only one llne e,cecutlve, the spedallzed staffs provide
expert advice and service to all employees on a company wide basis. This group has a specfalized background In some
functional area and it could serve In any of the following capacities :
(I) Advisory capacity : The primary purpose of this group Is to render specialized advice and assistance to
management when needed. Some typical areas covered by advisory staff are legal, public relations and economic
development.
(ii) service capacity : This group provides a service that Is useful to the organlz~tlon as a whole and not just to any
I specific divi.sion or function. An example would be the personnel department serving the enterprise by procuring
the needed personnel for all departments. Other areas of service Include research and development, purchasing,
statistical analysis, insurance problems and so on.
(iii) Control capacity : This group includes quallty control staffs who may have the authority to control the quality
and enforce standards.
The line and staff type of organization uses the expertise of specialists without diluting the unity of command.
With the advice of these specialists, the line managers also become more effective and develop a sense of
objective analysis of business problems.
The line and staff type of organization is widely used and is advantageous as the specialized advice improves the
quality of decisions resulting In operational effectiveness. Staff specialists are conceptually oriented towards
looking ahead a~d have. the time to do strategic planning and analyze the possible effects of expected future
events.
Its main. disadvantages are the confusion and conflict that arises between line and staff, the high cost that is
associated with hiring specialists and the tendency of staff personnel to build their own image that is sometimes
at the cost of undermining the authority and responsibility of line executives.
Functional Organization
- One of the disadvantages of the line organization Is that the line executlve.s lack specialization. Additionally, a line
manager cannot be a specialist in all areas. In the line and staff type of organization, the staff specialist does not
have the authority to enforce his recommendations. The functional organizational concept, originated with F W
Taylor perm~s a specialist in a given area to enforce his directive within the dearly defined scope of his authority.
The following Fig. 1.14.1 is an example of functional organization :
'Vice President. .
~' Engineemg-
.. , rt ,,,...
:,°"FunctJon: .
..,.,
Manager-~:J.- _ _ _ _.. .__ _ _...... ....._ _ _.... .,______.....,.a.;.;....._;._...
Flg.1.14.1 : Functlonal Organization Structure
Tldi.......
. . ,,a11c , uo as
Matrix,Organizatlon
- A matrix structure can be said to be a combination of project and functional structures and is created to
overcome the problems associated ~ Ith project and functional structures. The key features of a matrix structure
are that the functional and project lines of authority are super-Imposed with each other and are shared by both
functional and project managers.
Chief
Executive
Project Manager
Project Manager
- Matrl,c organizational design Is most useful when there Is pressure for shared resources. For example, a compa
may need eight product groups, yet have the resources only to hire four marketing specialists. The m ·
provides a convenient way for the eight groups to share the skills of the four specialists.
Each matrix contains three unique sets of role relationships :
0 The top mal')ager or Chief Executive Officer who Is the head and balances the dual chains of command
o The managers of functional and project (or product) departments who share subordinates
o The specialists who report to both the respective functional manager and ·project manager.
- PMI stands for the Project Management Institute. It is a not-for-profit volunteer professional membership association
for project managers and program managers. It supports and drives our Industry forward.
- PMI was started in 1969, and with over 250 project chapters and a membership of more than 2.9 million professionals
around the globe, PMI today is the largest project management membership ·group.
- The Project Management Institute is the organization that gives out the PMP (Project Management Professional)
credential, a globally recognized certificate that assures employers that a person is trained and qualified to manage
projects.
- PMI, in conjunction with its volunteer membership, developed A Guide to the Project Management Body of Knowledge
(PM BOK• Guide), which is the agreed upon book of standard language, terminology and principles governing project
management. In the past, there was no formal degree in project management for project· managers. PMI has been
instrumental in creating the Project Management Professional (PMP) certification, which professionalize~ the career of
project management. Now, project managers worldwide have been studying the agreed upon principles and passi
the PMP exam. The PMP certification is formalizing and validating the profession.
Project Management Institute, Inc. (PMI) found that 52% of all project teams are a mix of professional proj
managers and non-project managers. In the past, experienced project managers had a couple·ot choices. Invest in
high end software solution that takes a lot of training to Implement, or purchase a low end tool that lacks featu
Now, Project Insight bridges the gap.
Project Insight is the only mid-range project software that respects and conforms to PMl's PMBOK Guide or standa
body. This is important for teams that are of mixed levels of expertise.
- Most experienced project managers have been using Microsoft Project desktop to manage projects. More and more
these savvy project managers find that they need to collaborate on projects with dispersed project teams. Vet,
still need robust scheduling functionality. On the other end of the spectrum, the team members, vendors, con .
and other third parties they collaborate with want something that Is simple to use.
Project Managers
Functional Managers
Team Leads
Project Executives
Tedll 111 Ip
• Pv\1 Jc it t1 •s
- Offers good career - As Project Management Professionals are In huge demand across industries, the opportuniti
never cease and good decisions provide a soaring career.
- Constant learning- Project managers are always learning and enhancing their skills. This is a great career move
individuals who wish to regularly update and refresh their knowledge.
PMBOK has been used as the standard by which Project management Professional Certification is obtained.
Certification is based upon a survey of many companies' best practices. The advantages of using PMP Certified p·
Managers and Team members are that resources have already been trained. PMBOK Is valuable for both companies
employees. PMBOK Is valuable for many reasons. Here are three :
- The first reason PMBOK Is valuable Is that It allows companies to standardize p ctl
ra ces across departments. Thls
that the people In development manage projects In the same manner a th d . .
s ose In \stnbut1on.
- Second, PMBOK can help project managers to work with a stand di d ·
ar ze system across com I So
for company x who then moves onto company y can use t.h e sa pan es. meone
me practIces.
- Third, PMBOK discusses what works. The methods documented Ith\ h
those who are uncertain of how to undertake k w n t e project management community can
rI5 management PMBOK 1 •
prevents failure of projects. · a so discusses what doesn't wortc.
1· th camscanner
scanned W
Pro'ect Management MU .
1-25 Pro ect Management Foundation
- Finally, project managers who are famlllar with PM BOK standards can custom tailor their proJect management process
to best fit their company's needs. There's an old saying, "To break the rules, first you have to know the rules." When
project managers Invest time Into learnlns the rules, they also are Investing time In !earning how and where rules can
be broken.
Project management as a practice Is rapldly growing and spreading worldwide, and is now seen globally as a
recognized and strategic competency, a career path a.nd a subject for training and education. The PMBOK framework
-consists of five process groups and ten domain areas.
Initiating
The initiating process group involves the processes, activities, and skills needed to effectively define the beginning of a
project. Setting all permits, authorizations and lnltlal work orders in place to secure an effective and logical
progression of initlal project activities sets ~he stage for subsequent success throughout all _project phases. Setting
dear phases for work to be completed, initializing teams, and having the budget in place before work begins are vital
for a strong start to any project across industry.
Planning
The Planning Process Group sets forth the processes needed to define the scope of the project, set strategic plans in
place to maximize worlcflow, and begin to assemble priority lists and plan team needs. This process group also
addresses a more narrow clarification of all proj ect goals and expectations and puts in place the project infrastructure
necessary to achieve those goals according to the timellne and budgetary constraints.
3. Executing
The executing process group Involves managing teams effectively while orchestrating timeline expectations and
reaching benchmark goals. Project managers utilizing this set of skills will demonstrate a high degree of organization
and communication skills while addressing team concerns or other complex situations associated with getting the
work done on t ime and within budget.
Processing change orders, addressing on-going budget considerations, and mitigating unforeseen circumstances that
may affect a team's ability to meet lnltlal project expectations are all part of the core skills and competencies involved
in the Monitoring Process Group. Seasoned managers keep the momentum moving forward and guard the project
against stalling by actively monitoring progress and using foresight and quick response to address project challenges.
Monitoring and Controlling hover over the whole project. According to PMBOK GUIDE these are" • d
. , processes require
to track, review ~nd regulate the progress and performance of the project.
Closing
. The biggest challenge of this process group Is to bring the project to a successf I h
u cIose w lch means completing it on
time and within the budget allotted. The bottom line Is that while th
. ese process groups are not necessarily easy to
. implement, not doing so means the team may never realize the full be flt f h
ne so t elr highly strategic projects.
I· RevltiW'~ 1
2 nd 1 5
What is Project management? State Its importance. (Refer Sections 1, • • )
Q. 1
· . (Refer Sections 1.3 and 1.3.1)
Q. 2 What do you mean by Operations? Differentiate Pro}ect & Operations.
Q. 7 Oescn'be the atypical project life cycle along with its phases. (Refer Section 1.9.2}
Q. 8 What is Stage Gate Process? Describe its stages. {Refer Sections 1.10 and 1.10.2)
Q. 9 Desaibe the role and responsibility of a project manager. (Refer Section 1.11)
Q.10 What is Negotiations? What is its importance in rroject Management? How should a project manager prepare for·
{Refer Section 1.12)
Q.11 Describe Conflict and its causes. Explain ways to handle conflict. (Refer Sections 1.13 and 1.13.2)
Q.12 What is Organizational Structure? Describe its importance for a proiect. (Refer Sections 1.14 and 1.14.2)
Q.13 Explain Functional & Project Structure. (Refer Sections 1.14.3 (c) and 1.14.3 (e))
Q.16 Describe the knowledge areas as recommended by PMI. (Refer Section 1.16)
.,
2.1 Introduction
A project work demands a lot of plannlng and effort from all those who are involved in it. The basic understanding of
the project life cycle Is vital for every project manager speclally. As it Is said, well begun Is half done, the successful
Initiation of a project plays a very Important role in Its ultimate success. If you begin ·by putting the right foot forward you
are in a good chance of making it to the end as desirable. Thus project Initiation becomes a very important part of a project
work. This chapter deals with everything that helps you d~velop a good understanding of project initiation.
2.2.1(a) · People
'
Following are _the people generally associated with a project. Let us understand ~elr roles.
1. Team
(I) Describe your Team
In the Project Initiation phase, It Is Important to define and form a team on the basis of the project requirements
and deliverables. You have to plan on what shape ~our team must be given. The following points help when you
form your core team :
2. Stakeholders
2.2.1{b) Process
Following are the elements of a project process to explore before Initiating a project.
1. Methodology
For your process to be effective you must begin by outlining your project actlv\tl d . b
es, e11vera les and the team.
process often comprises a blended mix of different methodologies Eff rt h .
1
methodologies that are suitable to give the desired outcome You sh Id. . f o I sf s ou d be. made to Identify
· ou re ra n rom forcing a certain metho
Following are useful when considering the methodology :
- Size of your project.
- Scope, timellne and budget.
- Right team (Dedicated or shared).
- Stakeholders collaborations
Always get your internal team and stakeholders agreement whlle selecting the right tools. It Is also Important to know
how to use them effectively. later changes can· always be made depending on the requirements.
Managing Risks
There is no project that is without any risk. Risk Is an Integral part of a project. Thinking and planning all the possible
risks ahead ls vital in the proj@
ct Initiation phase. To do this, highlight all possible Risks and then Identify ways to
reduce their impacts incase that happens. You should also involve your team hold a pre-mortem session with your
team members where you discuss areas of risk, as they are often unexpected.
1. Requirement Analysis
Right product s the outcome of a project work. Therefore, you should try to understand the requirements of your
· project as clearly as possible In the initial phase. It's important to begin by outlining things that you know already such
'as the needs of the business, dient and users. This helps you to have a clear understanding of the background and
context for the project.
During the project· initiation phase, you must have a clear idea of the scope and deliverables that are required. You
must write them in details so that every aspect of them Is Included and agreed upon. This will avoid any confusion at
later stages. Needless to say, the Involvement of your team members and the stakeholders Is of utmost Importance.
3. . Setting Deliverables
on the basis of the Information you collect, the dellverables must be flnallzed In order to avoid later confusions.
Therefore you must organize an Internal meeting with your team members and stakeholders to go through the
deliverables. Make sure to get the feedback and suggestions from everyone. During the meeting while reviewing the
deliverables with your team, keep these ateas In mind :
- The deliverables
Their format, shape, size and specifications
1. Business Case
The first step is establishing a busln_ess case in which focus is given on explai ning the reasons for_starting
project. The business case describes the availability of financial a!"'d other resources to support the busi
need. A business case considers the requirements of the project and justifies how it fits the site and risk of
proposal. The stru~ure cif a business case re111ains the same irrespective of the project types. A business ·
basically outlines the project relevance comprehensively describing Its need and the likely impact. It does
reveal the technical aspect of the proposed project.
While describing the business case care should be taken to make It easy to understand, clear, logical
relevant. The key aspects need to be Identified, measured and justified. There also must be accountability
commitment for the delivery of the· project outcomes and costs involved in the project '
Follow ing should be the contents of a business case :
o Preface
o Table of contents
o Executive contents of the project
o Business drivers, scope of the project and financials aspect
o Business analysis such as the costs and benefits, risk
0 Conclusion f ' .J
- The next step is to prepare a project charter. It describes the purpose for the project and its proposed structures
and execution. A project charter also sets the vision, objectives, scope and deliverables of the project In details. It
identifies and describes the responsibilities of the project team and the stakeholders.
- At this stage, the project charter Is able to present the project In structurally organized, well documented form
which mentlo~s the project plan and list all risks, Issues and assumptions.
Building Team
- The next step is building of a team as a project cannot be Initiated without an effective team. Therefore, th is step
first prepares job descriptions for the people who will play their role in Implementing the project plan. This
includes their role and responsibilities.
- A project team is built by first by defining the roles for each member as dearly as possible to keep the work
flowing smoothly. Next comes the responsibilities that come with the role. Authority associated with each role is
also clearly described.
- Sometimes a detailed organizational chart Is built by listing the skills and experience needed for each position. It
is also helpful In defining · different qualifications r_equired for each position. The chart also indudes the
performance criteria, salary and'worklng conditions.
Project Office
- A project office is a place In the office·or work site where the project man~ger and support staff sit and woric
together during the project. It Is generally equipped with the communications infrastructure and other
technology needed for the project.
- The location of the project office must be near to the actual project work site. It should be large enough to house
all the people associated with the project.
Periodical review
- Periodical review of each step that was Identified during the Initiation phase must be done to ensure that there is
nothing that goes against the project as It Is always possible to make mistakes and this Is especially true with the
project Initiation phase as it Is so critical to the success of the project. Project periodic review is an essential part
of the project management.
- Periodical review also looks at the risks that were earlier Identified and see if any have occurred, and if so how
they were controlled and resolved. At times, changes are made to a project. A review evaluates if these changes
were done correctly and whether they have kept the project on track.
. .......
,..
.... 11, -1 0 111
There are lots of ways to decide on which projects to select. Following are some basic techniques used for pick
projects to undertake. All of the methods listed here can be used alone, or In combination with other techniques.
- On many occasions, the project selection decision is taken on the basis of Just one factor i.e. financial benefits.
situations, projects are selected on the basis of the project opportunity that gives the maximum financial benefit to th
organization.
- Such decisions are never easy. Fortunately these days, several financial analysis tools are used to determine
financial benefits a project can provide. Two of the most frequently used t9ols are Returns on Investment (ROI)
Payback Period.
- ROI measures the returns produced by a project with respect to the amount of capital Invested. ROI is calculated
the following equation :
ROI= (Gain from Investment - Investment Cost)/ Investment Cost
- Therefore, the project that provides the highest returns on Investment is selected.
- The payback period of a project is a tool that calculates the time period a project will take in order to recover
1 aI i nvested In
amount of capital Invested. The calculation for payback period• Is done by dividing the amount .of cap·t
project by the Income generated
.
by the project per period of time (months, years, etc• )• us·n b k rt· d
1 g pay ac pe o
project with the shortest time to recover Invested capital can be selected. · •
In many cases, the selection of a project Is also done by the measurement of th .
e opportunity cost. Opportunity
the measurement of the cost that an organization pays for not select! th h
. . ng e ot er projects. A decision on
proJect Is to be selected Is based on financial analysis alone It provld h b
· es t e est possible outco b d on
specific financial needs and objectives of the organization. me ase
·ng the project selection care should be taken to see how well a project can support organizational strategy. For
ouri
exarnple, if a service based organization sets Its mission to provide superior customer service, then the projects
ed should be such that It enhances customer service. For an organization that focuses solely on Innovation to
I ct
see
. competitive advantage, projects that support research and development should be picked as a better option
gain
Business environment, today, is ever changing. lndustrlal, regulatory, and market conditions keep changing resulting
In the creation of new requirements. Organizations must keep a close eye on the changing requirements and fulfill them
with the right projects. People should be assigned with the specific job of tracking all the changes and looking for an
opportunity for t he organization to come up with a ~lutlon.
While selecting a project we must look at the time frame as it is an important point of consideration In the selection of
a project. It is done in two ways; analyzing the time of implementation and t otal project life cycle time.
Time required in the Implementation of the proj ect components is important to analyze particularty when significant
portions of the project are to be implemented in a time bound manner. Analysis should be done to find out whether
the organizational resources required for a project are available at the time of project planning. Project life cycle time
is the total time involved in the completion of the project starting from selection and initiation to final dosing and
shut-down. Time frame becomes more important if there Is a limited period of time available for the undertaking of a
project.
Weighted scoring models are project selection analysis tools. They are useful when the decision on project selection Is
taken on the basis of not one, but several factors. In such a case, a weighted scoring model (Also called Decision
Matrix) is considered one of the best tools to examine, rate, and select a project among multiple available options.
- A weighted scoring model Is developed by determining the factors which are considered Important to an organ~atlon
in project selection. Those factors are then assigned a relative level of Importance or value (weight). The factors are
then examined and rated for each available project option under consideration with the rating multiplied by the
relative weight of the factor. The proj ect with the highest total score Is the one that should be selected
Project selection Is an Important function of business organizations. A wrong selection of project may ge~erat~ ·
which Is undesirable. Therefore, having a thorough understanding of project selectlon models becomes very Import~
Following are the two Important types of project selectlon models.
1. Non-Numeric
This is a commonly used method in which the senior members of the organization suggest a project out of their o
I
I understanding and expertise. Most' of the projects using this method are those that ar~ initiated out of an appare
opportunity available or taking chance of an un~established idea for a new product. The project is created as
immediate result of this approach in which about whatever the boss proposes becomes the project.
The sacredness of such project reflects the fact that it generally c;ntlnues till It fin•is~es or until the senior declares
failure of the idea & ends it.
Sometimes, the necessity of a project arises simply because it i~ capab!~ of either·enha,:icing the operating effid
of the organization or solving a serious problem that's troubling the organization. For example, if a plant is threat
by the flood then it is not much complex and effortful to start a project for developing a protective des~ M
potential projects are evaluated for sele~ion using this criterion of project selection. Questions such as t~e esti
cost and its comparative effectiveness come In· for analysis In front of the organization. The project cost Is gene
analyzed to find out whether these ~ould be maintained as minimum and compatible with the success of the proj
• I , •
Organization always like to stay ahead In competition and this desire becomes the basis for making decision to
out a project. Although, preference Is generally given to the project whose needs Is felt b th .
. • V
e operating nee
competitive necessity with regard to Investment. Generally both types of project I ctl . -
, se e on models are con
quite useful & effective as compared to others. ·
In this selection model called the product fine extension a project I iti d ·
.
' s In ate for the d · I & di~n
· 'b
new products and Is evaluated on the basis of how much It It th eve opment
5 u s e company's cu t d .. h . ,
fortifies a weak tine, fills a gap, or enhance the fine.. rren pro uct lines, ow
On many occasions, evaluatlon of profltablllty Is not done as the decision makers take decisions on the basis of their
belief about the probable Influence of the addition of the new product to the llne over the entire performance of
system-
Q-Sort Model
_ This is the one of the most simple and straightforward techniques used for selecting projects. In this model, the
available project for undertaking are first divided into three groups according to their relatfve merits. They are
Good, Fair and Poor.
- The main group is further subdivi~ed into the two types · fair-minus and fair-plus. The projects within each type
are ranked from best to worst. Again relative merit of the respective projects provides the basis for determining
this order. Specific criterion is used by the rater to rank each project. Sometimes, he just uses his general entire
judgment.
- At times, one person holds the responsibility for carrying out the evaluation & selection process of the project.
Sometimes, a selection committee is formed to perform the selection process. The ranking of the projects differ
only to some degree from rater to. rater. Finally the projects are selected on the order of preference, though
financial basis becomes the most important aiterion before final selection.
These,.. models use profitability as the sole measurement criterion for selection of a project. Majority of the
arpnizations use different numerk types of project selection models. Following are some of numeric models for project
selection.
1. Payback Period
2. Accounting Rate of Return
3. Break Even Analysis
• 4. Cost benefit Analysls
5. Net Present Value (NPV)
6. Internal Rate of Return (IRR) • l
- This method Is a simple non-discounted factor method. It calculates the time period that will be requl,:ed for the
project to generate enough returns to recov~r the Initial Investment. It focuses on measuring the cash Inflows,
3. Break-Even Analysis
- Break-even analysis is another numeric financial tool used frequently for project selection. It is used to deter
the stage at which your project, a new service or a product, will be profitable.
- In other words, it's a financial calculation done to determine the number of products or services a comp
should sell to cover its costs. Break-even is defined as a situation where your income and expenses match
thus you are neither making money nor losing money. You have enough income to recover all your costs.
- This method is useful in understanding the relationshlp between the variable cost, fixed cost and revenue. As
this analysis it has been observed that an organization with low fixed costs will have a low break-even po
sale. For an example, a company has a fixed cost of Rs.O (zero) will automatically have broken even upon the
sale of its product. · ·
(I) Starting a new project : For selecting every new project It is advisable to conduct a break-even analysis. Not
it helps you in deciding, whether the project idea Is viable, but It will force you to be realistic about the
will also guide you on the pricing strategy.
(ii) Laun~lng a_new p~oduct : An existing business planning to launch a new product should do a break
analysis particularly 1f such a product is going to add a significant expenditure.
subtracting the costs from benefits. When completed, a cost benefit analysis gives concrete results that can be
used to develop reasonable conclusions around the feaslblllty and/or advlsablllty of a decision or situation.
_ cost benefit analysis In project management Is one more tool In your toolbox. This has been devised to evaluate
the cost versus the beneflts In your project proposal. It begins with a 11st.
_ The list of project expense Is prepared on one side and the benefits to be received after successfully executing
the project is listed on the other side. Based on this you can calculate the returns on Investment (ROI), Internal
rate of return (IRR), net present ·value (NPV) and the payback period.
_ The difference between the cost and the benefits determines whether action ls required to be taken or not. In
most cases, if the cost is SO percent of the benefits and the payback period is not more than a year the action is
worth taking.
(i) To determine the feasibility of a project : This analysis helps the management of an organization in determining
whether undertaking the project will give benefits or not as nobody wants to incur losses In business. When a
huge sum of money is invested in a project or initiative, It should at least break even or recover the cost. The
costs and benefits are identified and discounted to present value to ascertain the viability.
(ii) To help compare projects : As you have today so many choices for Investment there must be a basis for selecting
the best alternative. Cost-benefit analysis Is quite useful to pick through the available options. This model helps
businesses to rank the projects according to their order of merit and choose the one that Is the most profitable.
(iii) Evaluating Opportunity Cost : Cost-benefit analysis is a useful tool for comparing and selecting the projects and
selecting best option particularly when the resources are finite but investment opportunities are many. However,
while choosing the most viable project, it is also important to know the Opportunity Cost which is the cost of the
·next best alternative foregone. It helps businesses to identify the benefits that could have arisen if the other
option was chosen.
(iv) Sensit.lvity Analysis : Sensitivity analysis is a useful tool for improving the results of Cost-benefit analysis and is
mainly used when there ls no clarity over the discount rate. In this condition, the discount rate and the horizon
value are changed to test the sensitivity of the Cost-Benefit Analysis model.
- This is another widely used method for evaluating the returns t hat you can get out of an Investment in a project.
In this technique the cash inflow that is expected at different periods of time ·is discounted at a particular rate.
The present values of the cash Inflow are compared to the original Investment. If the difference between them Is
positive then it is accepted or otherwise rejected. This method considers the time value of mon~ and is
consistent with the objective of maximizing profits for the owners. .
- Net Present Value is calculated by subtracting the present value of cash outflows from the present value of cash
inflows. The present value defines what wlll be the worth of the future sum of money as of today.
- While Investing in certain Investments or projects If It produces positive NPV then you can accept the project as
this will show the additional value to your wealth.
- And in case of negative NPVyou should not accept the project,
Where ·
Cash Flows = Cash flows In the time period
r = Discount rate
impact, time_frames, and achievement of specitib"g~ali: ... " -· . ..... ... .. . . --- . . .. .. .. - -- . -- . .. - . . I •• • - - ---
- - . . ~ .
- Proj~ct po~olio ~rocess ha_s becom.~ ak,ey c.o_m'p~~ent_ in_o,rg~_ni~.! tio'h_s, a¥ lo~k) c( etj_t-~!'C~-~h~l{ a~ilityjct:'~~
th~v
multiple pro1ects m _an efficrent and .effect,ive\vay;_ Project p'ortfcilio'managerne"nf
it d fi h . . . ,.. . •· .,. ... . . . . . . .. .
process-'is'lffe
.
icf'y (o ·,,, <._'.\• ,~-,-~-.::~
success .
_e nes. ow.an ~rga~ization approaches projec;t P,i'iorit'!zaticl'n,/ ~.s~~rce''al!o1:ation{budget1ng;;sch,e~ulln . :i 'i,,;-;":.;;
ma1or proJect components: · .. .. · ·· & ".~· ~ --
- The goal of Project Portfolio Process is to find the best possible comb· ti f ·
. b' . · ma on o resources to help an ent •
its o Ject,ves, and it takes into account such factors as exter I k erpnse
environment, and government regulations. na mar et conditions, customer demands; ·comp .
- The·· need for Project Portfolio Process 15· driven' by the 't ct h . , ... , . _ . '(. . - ·•
completed successfully. But often the ·resources , d d ~ t ~~ aU proje~s /re~u!re 'fund,ng~ti_~~f ~ri'd_l't ": -
. , .f nee e are In limited suppl At h " - · · · ·· · ..., ' · "
proJects are o equal value to an organization, As a I· . y. t e same .~im'e/it'ftl~a1i'tlit!'
to ens ure th at t he most strategically Import t resu t, stakeholder$
.
need a • .., · --··--'·"'~'"
way to·manage p •;;.~~·'-"1~;.i"~,,-.
an projects will receive t~ ,. ·· · ~ . . roJ~~~~!ll:f...,..
- To ensure success with a Project Portfolio p . e attention and resources tcf e·'f{~;;f" .,.
rocess, organizations can follow th f . . ,.Jl~,~~ -~...,
1. Identify Business Goals and Strategy e allowing steps :
_ A common pltf.lll occurs when organizations ldl!ntlfy their buslnes1 str:itl!ttos but lo, ., 1tp,ht of the lndlvfdu:il
projects. To avoid this, organizations should tAkfl tho time to Identify the business drategy 11i well a, evaluate
where projects stand In relatlon to buslnl!SS objective~.
_ This involves taking an Inventory of all current projects and resources, lncludlnfl evalu.ttlng thtt current proJeru In
the plpellne for redundancies, stalled projects and other potential aren~ for co1t siivlngs, and Identifying skllll!d
employees and their current and future avallnblllty to find out who' s av11llable to wor~ on hl,tl,-,value projects.
- Finally, companies need to deploy a Project Portfolio Process solution that can lncre~se cohesion and vlslblllty
·into their processes.
- These tools can help create' a hlstorlcal project archive, which business leaders can draw upon wh~ they make
future Investment decisions. Organizations should thoroughly evaluate products before buying them, lndudlng
reading reviews of Project Portfolio Process platforms and scheduling product demonstrations. ·
"' Project Portfolio Process platforms can Identify projects that do not warrant Investment and provide clarity Into
projects at everv level, from objectives to cost. They can provide strategic Insight and visibility Into the most
important projects that make sense for an organization, prioritize the most valuable work, and hef deliver p
P<0ject Initiatives on time and on budget.
Ensure separation of decision-making responslbllltles between project manager and projects sponsor
Ensure accountability for the realization of project benefits
Ensure oversight of the project management function
Carry out senior stakeholder management
Project promotion : One of the foremost functions of a project sponsor Is to support and promote the importance of
the project t o relevant stakeholders. This Is necessary to 81Ve the project visibility at higher levels and to provide a
hurnan face to answer questions about why the project needs to happen.
putting forward the business case : Someone who is a project sponsor needs to be a believer In the necessity of the
project t o sincerely make the case for It. They will assist the PM and team leaders In forming the business case so that
it makes a powerful argument for why It should go ahead.
Ensuring funding and resources : The project sponsor also assists In making sure that the project has everything it
needs
Determining project scope : During the Initial exploration and project planning stage, the project sponsor Is often
. called upon to contribute their experience of the possibilities and limitations for previous projects they have worked
on.
Approval and authorization for project steps : In order to streamline the reporting structures for a project, the
project sponso r will often be handed responsibility for revlewiing and approving project activities, which means that a
PM can get a quicker response than having to address executives or stakeholders.
Overseei ng project health : Although they may not have .dally interactions with the project, project sponsors receive
regular project reports so that they have an understanding of the overall level of project health. They assist the PM in
following up on budget proposals and maintaining the funding of the project. They also assist with the hiring of human
r esources and implementation of new technologies.
Informing stakeholders of progress : A very important function of the ~roject sponsor is to receive information about
the project and then transfer this to rele_
v ant stakeholders. This is done to ensure continued support for the project
and to make sure all stakeholders are kept in the information loop.
Assessing final dellverables : At the final stage of the project th!! person who is a proj ect sponsor should review the
.fin al deliverables to sign off on them before being handed over to the client. This is a final checking process perfonned
by someone who has enough distance from the project to be able to judge it fairly.
Project Charter
Project Charter is a statement that describes the objectives ot'a project. This statement also sets out detailed project
goals, roles and responsibilities, identifies the main stakeholders, and the level of authority of a project manager. It
also acts as a guideline for future projects.
,t defines the roles and re.sponsibllities of the participants and outlines the objectives and goals of the project. The
.charter also identifies the main stakeholders and defines the authority of the project manager.
2. It serves as a primary sales document. When you present this to the stakeholders they now have a
dist.ribute or present when approached about other projects, so they can focus their resources where they're
3. This is a document that stays with you throughout the life cycle of the project. You refer to it through~ut,
meetings or to assist with scope management. The charter acts llke a roadmap.
Writing a project charter Is a process which also requires good experience and
expert1se. Here are some
may help you In preparing a good project charter. .
-- Vision
ou have the vision clear, then you can break It down Into more practlcal blU. It must be supported by the
once Y
following :
Objective: List three to five objectives of the project - specific, measurable, achievable, reallstlc and time bound:
_ scope : Outllne the formal boundaries of the project by describing how the buslnes, may change or alter by
delivery of your project, also note what's relevant to the project and what Is not. This Is how you m1lntaln bftter
Organize
When you're building a structure for your charter there are four subsets you need to Identify. This Is done by listing
the following :
_ customers/End Users : To complete this 11st, ask yourself: Who is a customer and/or end user In the context of
this project? Is there a specific individual or entity responsible for accepting the deliverables of the project?
_ stakeholders : As noted earlier, identifying the stakeholders of the project is crucial. They are the person or
entity within or outside of the project with a specific key Interest in that project. It might be a financial controller
overseeing costs or the CEO, but whoever it Is they'll have a slightly different focus depending on their role.
_ Roles : You n·eed to assign the key roles and responsibilities to those involved in delivering the project, from the
project sponsor, project board and project manager. After each entry write a short summary defining their role
and what their responsibilities are In the project.
- Structure : Now you need to defi'ne the lines of reporting between these various roles In the project. Use a
project organization chart to do this. It diagrams the structure of an organization and the relationships and roles
of those involved in the project.
Implementation
You have a vision and have organized the various parts of your project. Now you have to develop a plan to implement
them. There are four parts to this :
- Plan : To implement your project as stated you need an Implementation plan. This is a way to develop an
atmosphere of confidence for your customers and stakeholders by fisting the phases, activities and timeframes of
the project's life cycle. Gantt charts are the traditional planning tool for projects. They tum your tasks and
deadlines Into visual timelines.
- Milestones : Milestones mark major phases In the project and collect smaller tasks Into bigger chunks of wort.
The project should only have a few of them, that's why they're milestones, but they are an Important way to
acknowledge the completion of a key dellverable.
- Dependencies : List all key dependencies and what their Importance Is to the project. These are tasks or activities
that are linked to one another, as they wlll Impact the project during Its life cycle.
- Resource Plan : What resources are Involved In the project? Break down this fist into labor, equipment and
materials. This is how you will know what you need before you need It, and you wlll be able to estimate your
budget more accurately. As the project progresses, and changes are Introduced, you will need to adapt your
resource plan. ProJectManager.com features workload and resource management tools that let you qulddy see
everyon~'s workload, so you can reassign tasks as necessary. This keeps everyone from being over or under
worked.
• TtdllaNIWei
" ••11c 1 t1t 1t
- Essentially, a project proposal aims to streamline the business process between you as a solution provider a
sponsor by serving the dual purpose of acting as a source of information as well as a sales pitch aimed at convin
your sponsor why they should invest In what you have to offer.
- There are two types of project proposals: solicited and unsolicited.
- Solicited project proposals are requested by a prospective client. While with unsolicited project proposals,
approa~ a potential sponsor with a proposal, even if they don't request one, to gain their business.
- It's a common misconception that project proposals and business proposal are the same. The project proposal's al
to initiate a project in order to solve an existing problem or offer a unique product while a business proposa\ ai
sell product or service. Instead of assisting your search for investors to fund your business, a proposal helps you
new customers.
- Title page : Use the title page to introduce yourself and your project Be sure to II d
· nc u e your name your c:o
name, the date you submitted the proposal, and the name of the sponso • d. Id , .' .
r or m IV ua1you re subm1ttmg the p
to.
Table of contents : A table of contents will let your sponsor kn ·
ow exact1y what w\11 be c d. h
If you're sending your proposal electronically Include a
11 k bl overe in t e proiect p
. , c c a e table of content th .
sections of your proposal for easy reading and navigation. s at will iump .to the d
- Executive summary : The executive summary details exact! h .
th b f 'fi
e est or a spec, 1c problem or situation. Slmlla t
Yw Yyou're sending th
e proposal and why your sol
r o a value propositl l
products or services, and how they can solve the spe lfl on, t outlines the benefits of your p
c t problems
After readl,:ig your executive summary, even. If they don' . .
of how you can help them. t read the full proposal th
' e prospect should have a
-- t ment of the problem or need : This Is where you provide a summary of the Issue Impacting the organization. It
_ Sta e
'des you with the opportunity to show them you have a clear understanding of the needs and the problem needs
prov,
help in solving.
osed solution : Here's where you offer up a strategy for solving the problem. Make sure your proposed solution Is
-~
customized to the needs so the sponsors know you've created this proposal speclflcally for them. Let them know which
deliverables you will provide, the methods you will use, and a tlmeframe for when they should expect them.
Qualifications: Are you qualified to solve this problem? Why should they trust you? Use this section to communicate
why you're best for the Job. Include case studies of client success stories; mention any relevant awards or
accreditations to boost your authority.
_ cost & Budget : This Is where things can get a bit tricky, as you don't want to under or over budget your product. If you
like to provide the prospect a few cost options.for their budget, Include an option table. Some proposal software offer
responsive budgeting tables which allow a sponsor to check the products or services they're interested In, and the cost
will automatically adjust.
_ Terms and conditions : This ls where you go Into details about the project timeline, pricing, and payment schedules.
It's essentially a summary of what you and the sponsors are agreeing to If they accept your proposal. Make sure you
clear the terms and conditions with your own legal team before sending the proposal to the client.
There's a lot to keep in mind when writing a project proposal. Here are a few tips to help you out:
Keep it simple : While there's no ideal project propos~I length, focus on quality over quantity. Keep sentences short
and simple, and avoid the use of business jargon.
- , Stay on brand : Don't be afraid to let your comp~ny'~ personality to shine through in your proposal. Stay true to your
brand and show the sponsor what sets you apart from your competitors.
- Include data and visuals : Don't forget to include compelling, quantitative data. When applicable, use visuals such as
· charts and graphs to enhance the proposal.
- Quality control : Before you send the proposal out, make sure to read and re~read it for any typos or grammatlcal ·
A Project Team is an organized group of people who are Involved In performing shared/individual tasks of the project
as well as achieving shared/individual goals and objectives for the purpose of accomplishing the project and producing
its results.
- The team consists of the full-time and part-time human resources supposed to collaboratively work on producing the
deliverables and moving the project towards successful completion.
, Successful projects are ~sually the result of careful plannlng and the talent and collaboration of a project's team
members. Projects can't move forward without each of Its key team members.
The project team is a group of people who have a role In the project. Team members · can be grouped but each
individual has a certain role and function and thus can be assigned certain tasks. ·
The project team fulfills these roles and functions within the time frame of the project and Is usually dismantled after
the project completion. During that time, the project team works towards the common goal of delivering ~he project's
scope within time and budget/cost.s. Each team member has certain responslbllltles based on thelr•role, functions and
assigned t~sks. , ... ·
WT1eH111111eqi
~ P"ill t. tU Onl
- Project teams are multl-dlsclpllnary. Team members are bought together from different departments and may
experts from external companies or suppliers.For an effective team, project team organization structure Is '1tal
the Project Manager must have sufficient seniority and authority to lead the project tea~.
- For the duration of the project the team should report to the project manager and the organization structure of
project team should reflect the ownership of the project mana~er.
- An example project organization structure Is shown Fig. 2.9.1. The Project Manager heads th e team wlt_h a dlr
reporting line to senior management.
'" Customer
Customer~
" Project :
' Manager
'Construction
..;: manager '
t ~:
,ConstrtJCOO!l :.
: _ site ;
~~-~
- Successful implementation of this task requires the manager to acquire, develop and lead a group of peopla who
supposed to do the project. A group of_peop~e turns into a team when every person of the group is capable of m
the following conditions :
o Understanding the work to be done within the endeavor
o Planning for completing the assigned activities
Every team, regardless of the project type, size and nature has three I d fl
' ro es e ned as conventional. These roles are:
1. Leader : A project team leader ls a person who provides leadershl d Id ·
P an gu ance to the t d k 'b
for the results of teamwork. The team leader role Involves the d eam an ta es respons1
eveIopment and en .
training, leading, motivation, recognition, rewarding and oth couragement of the team thro
er actIvltles that stl I .
the required tasks. · mu ate or force team members to
Member : A project team member Is a person who Is Involved In doln1 assigned taiks. Team members directly access
2
' roJect and actively evolve Its processes. They're subordinated to the team leader.
the P
S. contributor : A project team contributor Is a person or an organization that partldpa1es In teamworic but Is not
actually Involved In performing tasks and carryln1 out prcSJect team responslbllltles. Contributors help Improve the
project through giving valued suggestions, expert Judgment and consultation. They have an Interest In the protect, so
they fa cilitate Its successful completion.
A team can be responsible for a variety of duties and responslbllltles, depending on the project they're Involved In.
Here're several common responsibilities and duties of a project team :
_ Gaining the right understanding of the amount and scope of assigned work
Roles, responsibilities, approaches and practices significantly depend on the partiaJlar project. its goals, envtronment,
and requirements. While this is true, there are several typical roles that wori< for literally any project t~am.
Sponso·r
Sponsor is the most senior member of a project team who has crucial responsibilities and ls aa:ountable for the
project performance. He is the key person In communication of the team with the company's management and key
stakeholders. This is also the person who provides necessary resources for project performance and approves «
rejects the outc~me.
Key responsibilities of a sponsor are :
· Defining project's goals and expected outcome;
- Providing necessary resources;
- Managing communication between project team and key stakeholders;
- Translating company's strategy and vision to the team;
- Approving or rejecting the outcome.
- Some project teams have a project steering committee that consists of the sponsor and key stakeholders. tt
represents the Interests of parties Involved In project lmplementatlon, provides leadership In the work process,
and resolves issues escalated by project manaaers and team leads. ·
Project Manager
Project manager Is the team member who deflnes the framework and course of the project, sets dinlltes and
...... ,.
milestones, defines required resources, and manages project activities. The responslbllltles of a projea'man1ger an
include a wide range of activities that depend on specific project. In seneral, the key activities are :
,
•• U1t a t1, a1
A ·team member is the heart of any project. By partk:ipating in project activities and performing their
assignmen~, regular team me~bers contribute to the ~xpected outcome of the project. Alongside with that,
project responsibilities include :
An effective project team is one which possesses both professional and soft skills. They ensure better communl
ateamwork, and outcome of the project work. following are the key parameters to pay attention to when hiring and bu
project team.
PJ Skills and e,perlence: This is a very Important criterion for most poslti6ns. Relevant previous e,perience and
skills are critical for a smooth start of a project work.
(II) Wllllnrness to learn new skills: Some hiring e<pert advice that It might be useful to look beyond the skills need
the role. Employees need to be wllling to get out of their comfort zone to help the team a d I h'i
(1111 Per,onal traits : Personal traits are often a reason why a team of professionals tu · b somet ng· new.
n earn ·
are nearly as important as professional skills, e><perlence and expertise u . rns out to e dysfunctional..
• nw,111 ngness to help' arrogance
other types of toxic behaviour impair teamwork. So It's better to Prevent thl . ·
team. s on the first step of building a P,
(Iv) Cultural'flt: It's a matter of fact that professional cultures are very diff · ·
other factors. Making sure all your employees flt In your off! erent aod depend on Industry, region a,nd
• • ce cu1ture not only • l'fl
but also prevents work environment Issues In the future. · simp es their on-boar~lng pr
I
Encourage Collaboration
. .
- Groupsthat plan together are typically more successful, therefore project leaders must reanze the importance of
collaborative planning and goal setting. This collaborative goal setting allows team members to achieve individual
succes.ses, while contributing to the overall project goals. Collaboration is the vehicle which:
o Generates the most creative solutions
o Gets the greatest membership support
o Produces the greatest amount of personal growth
- By matching each team member's incentive to the overall goals, the entire team Is motivated further to achieve
success. It is also the project manager's responsibility to manage the team's development to ensure a cohesive
integrated team is founded.
- Bringing a group of people together does not necessarily constitute a team, especially not an effective working
team. One of the biggest mistakes made by project managers is not recognizing this as a fact and then expecting
their project team to do well from day ~me. ·....,
- Project leaders facilitate relationships among people of very different backgrounds. However, they all share the
common goal of the project. Conflict within projects can manifest itself in many different ways but a good project
manager will intercept and take action when confWct occurs.
- A recognition and reward scheme will help reinforce the Importance of the key project deliverables and focus the
team on the Important aspects of the project. Completion of a project and the steps along the way can be very
rewarding for team members.
1. Be a decisive leader
,.... h-
If you are the project leader you be a decisive leader. Make declslons on the basis of the informatJon """'
nd
.. ..,: at .._u•
time and make sure to involve your team. Team members, being a part of th at process a seefngyou as a leaderwt'I
is focused on the success of the project, will be motivated to focus on their work, identify and point out pos.si
issues, suggest improvements, and perform better.
When planning strategy or the early phases of a project, Involve the entire team. Make sure you receive each
member's feedback on the process and their particular part of work. They might help you identify weak points.
suggest great process optimization ideas that will help you plan better.
Being a project leader, you should get productivity from everyone. Assign tough tasks to all project team me
·and expect weekly accountability from each team member for their respective tasks. One of the best practices
monitoring team members input Into the project Is to use _some project management software.
- Teamwork and communication are the keys to productivity of the team. That's why just finding
professionals for your team Is not enough: it's not uncommon that the best ones come with big egos. _..,.__
and unwillingness to communicate are extremely detrimental for productivity of an otherwise great team_
for overall results too. It's not always easy to Identify that during hiring processes or tearn selection p,roc:essie11
be careful to ask tough questions and not Just take the best talent with blinders on.
- The project management team needs to clearly understand the requirements and deliverables of the.
well as being aware of the organlzatlonal overall strategy objectives ·and d · •
. ' nvers. It 1s also essential for
proJect management team to understand the organization's professional a d th" •
n e •ca1requirements and su
to them and ensure that the project complies with them.
iQ)
Adjourning
'i j
~ Forming
w
;
~
Storming
Time
Fig. 2.10.1 : Stages ofTeam Progress
Fonning Stage
The forming stage involves a period of orientation and acquaintance. There Is a high level of uncertainty during thls
stage, and people look for leadership and authority. A member who asserts authority or Is knowledgeable may be
looked to take control. In this stage team members ask for their role and benefits. Most Interactions are social as
members get to know each other.
Stonning Stage
_ The storming stage Is the most difficult and critical stage to pass through. It Is a period marked by conflict and
competition as Individual personalities emerge; Team performance may actually decrease in this stage because
energy Is put into unproductive activities.
- Members may disagree on tea·m goals, and subgroups and cliques may form around strong personalities or areas
of agreement. To get through this stage, members must work to overcome obstacles, to accept individual
differences, and ~o work through conflicting ideas on team tasks and goals.
- Teams can get bogged down in this stage. Failure to address conflicts may result in long-term problems.
- By getting through the storming stage, conflict is resolved and some degree of unity emerges. In the norming
stage, consensus develops around who the leader or leaders are, and individual member's roles. Interpersonal
differences begin to resolve and a sense of cohesion and unity emerges.
- Team performance increases during this stage as members learn to cooperate and begin to focus on team goals.
However, the harmony is precarious, and if disagreements re-emerge the team can slide back into ~orming.
Performing Stage
In this stage, consensus and cooperation are well-established and the team ls mature, organized, and well-functioning.
There is a clear and stable structure, and members are committed to the team's mission. Problems and conflicts still
emerge, but they are dealt with constructively. The team is focused on problem solving and meeting team goals.
Adjourning Stage
- In the adjourning stage, most of the team's goals have been accomplished. The emphasis Is on wrapping up final
tasks and documenting the effort and results. As the work load Is diminished, Individual members may be
reassigned to other teams, and the team disbands.
- There may be regret as the team ends, so a ceremonlal'acknowledgement of the work and success of the team
can be helpful. If the team ls a standing committee with ongoing responslblllty, members may be replaced by
new people and the team can go back to a forming or storming stage and repeat the development process.
1. Open Communication
- Consider this scenario: A young manager-to-be accompanied his mentor, an experienced manager, to observe
high-performing t eam in operation at a manufacturing company. When he first walked Into the room, he said
his mentor, "Oh boy, t his Is a dysfunctional team! Listen to the way they're arguing with each other." The
man replied, "Pay attention, you're witnessing a great team." ·
- It took the younger man several minutes to understand what the manager meant. This team was in conflict.
members were strongly disagreeing with one another on the best way to Improve their_product. It is ~ften a
sign when this kind of friction ~xists. A team that cares passionately about Its task is very positive. It has
honest communication. That Is a team dynamic!
2. Empowerment
- You get a strong team dynamic when you empower your team members by giving them the right to
decisions concerning the work they are doing. Of course, you set boundaries of tinie, money, choices,
fu~. '
- But once you give the team the final power of decision making, you will notice a confidence and a J
strength.
- Whatever you do, make sure you do not empower .teams that are not ready for it. That can be disastro~
many new managers make this big mistake. They probably do It because.they want to get into the good
the team. Make sure the team is ready for empowerment or you and the organization will suffer from
consequences of its poor decisions.
- Can yo~ -~alk up to any one of your team members and have this person clearly define his role
respons1b1lrtles on the team? Can you walk up to any one of your team m ·b d h . ·
em ers an ave this person
define the roles and responsibilities of every other team member lncludl h ··
, ng you as t e leader?
When team members can do this, they know what Is expected of the d h • •
b m an w at 1s expected of every other
mem er. They also know on whom they can count for helpln th · h • ·
effective team dynamic. g em wt 1 th e1r work. All of this lead$
4. Goal Clarity
5. Effective Leadership
When you are able to check off all the neces.sary items, you are doing your part in building an effective team dynamic.
·As leader, you should do the following:
_ set dear goals for each team member and the team. Give clear directions for those who need it
_ Share examples and experiences .of your personal successes and mistakes in order to relate to the team.
Emphasize the positive rather than the negative in your talks with your team
- Give continual feedback to each team member and to the team-both positive and constructive and express your
and the organization's appreciation thr~ugh rewards, if available
Use small successes to build team cohesiveness. Develop a constructive relationship.
- Make change happen for the better by encouraging creativi_ty and innovation. Encourage self-reliance and self-
development
- Encourage team members to express their views during conflict and share yours with them
- Help your team see Its connection to the larger organization, customers, and the community
I Review Qua•ttom• :J
Q. 1
State the importance of Project Initiation phase. (Refer Section 2.2)
Q, 2
Describe Project Initiation Process. (Refer Section 2.2.2)
Q. 3 Describe some of the techniques used for strategic selection of project. (Refer Section 2.3.1)
Q. 4 Describe any four non-numerical Project Selection Models. (Refer Section 2.4.1)
Q. 6 Write notes on (i) Payback period (ii) Break even analysis. (Refer Section 2.4.2)
Q.6 What is cost benefit analysis? What is its usage? (Refer Section 2.4.2)
Q. 7 Describe Project Portfolio Process. (Refer Section 2.5)
Q. 8 What is a project sponsor? Describe its functions. (Refer Sections 2.6 and 2.6.2)
Q.9 What is Project Charter? Describe its benefits and use. (Refer Sections 2.7, 2.7.2 and 2.7.4)
Q.10 What is Project Proposal? How do we write a Project Proposal? (Refer Sections 2.8 and 2.8.1(a))
Q. 11 What is a project team? State its key members and their roles. (Refer Sections 2.9 and 2.9.3)
Q.12 Describe the role and responsibilities of a project team. (Refer Sections 2.9, 2.9.1 and 2.9.2)
1
Q.13 Describe the technique of building an effective project team. (Refer Section 2.9.5)
Q.14 Desaibe the stages of Project team development. (Refer Section 2.10)
Q.15 Describe ttie importance of team dynamics. What are its important dimensions? (Refer Sections 2.11 and 2.~1
Work Breakdown structure (WBS) and linear responsibility chart, Interface Co-ordination and concurrent engineering,
Project cost estimation and budgeting, Top down and bottoms up budgeting, Networking and Scheduling techniques.
PEAT, CPM, GANTT chart, Introduction to Project Management Information System (PMIS).
Project Planning
Project planning is the most important part of the project life cycle. It tells what is to be achieved and how. The
planning phase is when the project plans are documented, the project objectives and requirements are defined, and
the project schedule is created.
It involves creating a set of plans to help guide you through the implementation and closure phases of the project. The
plans created during this phase helps manage time, cost, quality,. changes, risk, and related issues. They also help
axrtrol staff and external suppliers to ensure that the project Is delivered on time, within budget, and within schedule.
The project planning phase is often the most challenging phase of project management as you need to plan the staff,
resources, and equipment needed to complete your project. You may also need to plan your communications and
procurement activities.
Scope planning: It specifies the scope requirements for the project to help in creating the work breakdown structure
Preparation of the work breakdown structure : Here, the entire project is divided into tasks and sub-tasks for better
handling and execution.
Project schedule development : Here, the entire schedule of the activities of the project Is prepared detailing their
sequence of implementation.
-.SOurce planning : This process Identifies and then plans the effective utilization of the all the resources required
Wiring the project implementation.
llidget planning : it specifies the budgeted cost to be Incurred at the completlon of the project
ocurement planning : It plans to Identify the right vendors outside the company for procurement of materials and
Scope, schedule and cost : Project Planning needs to outline the scope and size of th e project, the scheduling of:
tasks and activities, which means planning them out along a tlmeline. The plan also needs to iociude how the costs
going to be spread out and covered.
Quality, human resources, communications and risk : The quality of the outcomes needs to be established In the
so that they can be measured throughout the project progress. Team members need to be allocate«:f tasks before t
project begins so that they are aware of what is expected of them. The way in which communications Wil_l be held a
' . needs to be outlined along with the potential risks and bottlenecks of the project.
Requirements plan : In the project plan format, a project may have several requirements such as.Imr::1et"..... _
location, space etc. It Is important to plan and organise for the availability of these requirements before the
begins
- Change management plan : Any proyect can face changes and uncertainty. Planning for these changes and ae · ~
way in which they will be dealt with reduces their negative impact on the project. So it is important to manage
correctly and establish a plan for its management.
Process Improvement plan : Improvement and learning is essential in p~oject management. It is important to stri~
quality results. Lessons can be learned from previous projects and applied to future ones, heightening the potential
increased success.
Project scheduling is a mechanism to communicate what tasks are to be done and which organizational resources
be allocated to complete those tasks. Th us project scheduling fs a document collecting all the work needed to be
to deliver the project on time.
. .
- A project is made up of many tasks, and eac~ task has a start and end time to ensure timely finish. People in the
had printed calendars on a shared wall in the water-cooler room, or shared spreadsheets via email, today most
use online project scheduling tools.
Typically, project scheduling Is Just one feature within a larger project management software solution, and ~
many different places In the.software where scheduling takes place.
Before going deeper into project scheduling, let's review the fundamentals to proJ·ect h d . · . ·
· sc e u1mg. ProJect
occurs during the planning phase of the project. You have to ask yourself three questions to start :
What needs to be done?
When will it be done?
Who will do It?
Once yo~ have got answers to these questions you can begin to plan d · t ti k . . . ,. · · •
_and resources. The followln~ are the steps needed to schedule a project : a es, n activ,t,es, set the duration, mil
Defining Activities
Identify and define the activities that you have to do In the project. By using a Work Breakdown Structure (WBS) and a
deliverables diagram, you can begin to take these activities and organize them by mapping out the tasks necessary to
cornplete them in an order than makes sense.
Preparing Estimates
After you have the activities defined and broken down Into tasks, the next step is to determine the t ime and effort It
will take to complete them. This Is an essential p'.ece of the equation In order to calculate the correct schedule.
Determining Dependencies
Tasks are not an island, and often one cannot be started until the other is completed. That's called a task dependency,
and your schedule is going to have to reflect these linked tasks. One way to do this is by putting a bit of slack _in your
schedule to accommodate these related tasks. ·
Assigning Resources
The last step to finalizing your planned schedule is to decide what resources are going to be required to get those
tasks done on time. For example assembling a team and scheduling their time just like the tasks.
2 Scheduling Techniques
Tl)e first two techniques used by project managers are Critical Pat h Method (CPM) and Program Evaluation and
r!W Technique (PERTI. You can use these methods to calculate the assumed start and finish dates, based on the known
pe of the project.
• Critical Path Method (CPM)
- The Critical Path Method helps you uncover the longest possible t imeline for the project, as well as the short~
one. With the CPM you will also be able to mark critical tasks and the ones that may float. Changes in the latter's
delivery won't affect the schedule.
- To use the CPM, you need to know your project's scope and list all of the tasks necessary for its completion. Next,
estimate how long each task may take. After that, you should also note all dependencies between the tasks. This
way you know which ones can be done separately, and which ones require previous tasks to be completed.
Lastly, add milestones and deliverables to your project.
A critical path helps to visualize the project flow and calculate its duration when all dependencies and
deliverables are known. This technique may notbe so handy lfthere are many uncertainties in the project.
- Similar to a critical path, PERT is a way to visualize tasks' flow iri the project and estimate the timeline based on
their assumed duration. This technique also illustrates dependencies between tasks.
To schedule a project using PERT, just like in CPM you will need to define tasks and their order first, based on
your project's mile.stones. Oslng a network framework slmllar to CPM, consisting of these tasks, you can estimate
different timelines for a project depending on t he level of confidence :
• MS--..
, 11 11 1r 1 t U•1
-
• •
The WBS 1s a method for getting a comp1ex, mu
ltl-step project done In an easy and effective way by divldins it,
nd more efficiently. -
smaller units so that you can get things done f ast er a
l tree structure that outlines your project and breaks it down·
- Work breakdown structure (or WBS) Is a hierarchica b
d
smaller and more manageable units. Today, software Is also available which you can use to ull a WBS by er
folders and subfolders, and can even go further to divide Individual tasks Into subtasks.
- The goal of a WBS is to make a large project more manageable by breaking it down into smaller chunks ~o
separate but interconnected units can be done simultaneous¼y by different team members leading to better
productivity and easier project management overall.
Following are a few reasons for creating a WBS in a project :
o It aeates an accurate and readable project organization.
o It creates accurate assignment of responsibilities to the project team.
A well-designed WBS facilitates planned outcomes instead of planned actions. Outcomes are the desired ends of
project, such 'as a product, result, or service, and should be predicted accurately. Actions, on the other hand,
difficult to predict accurately. A well-designed WBS makes it easy to assign elements of the WBS to any project a
good WBS should exhibit the following characteristics :
1. Definable : It is easily described and well understood by project participants.
2. Manageable : It is a meaningful project planning method wllere specific responsibility and authority are as~g
responsible individuals.
3. Estimated : Using WBS, duration of the whole project and separate units can be estimated in terms of the
required to complete, and the cost likely to be Incurred in resources required to complete the project.
4. Independent : It allows minimum Interface with or dependence on other ongoln I (' . · ·
g e ements t.e., assignable to a
control account, and clearly dlstingulshable from other work packages).
s. Integration : It facilitates integration with other project work eleme t d
I
h -
schedules t o Include the entire project. n s an w t higher level cost estima.
6. Measurable : WBS can be used to measure progress· has start d
milestones. ' an completion dates and
Advantages of WBS
3.2
Now that you have the complete work breakdown structure, It's time to review why you should use this approach to
management. Using a work breakdown structure delivers numerous beneflt5 Including :
improved planning : Large, complex projects can be difficult to wrap to execute let alone plan from start to finish.
Using work breakdown structure helps Improve planning by making It easy to visualize the sc.ope of the project and
break lt down Into more manageable milestones. As a result, work breakdown structure allows you to set clear
tlmelines earlier on. It makes sure no work gets duplicated or overlooked and It understands the level of output at any
i,oint In the project timeline.
smarter budget and resource allocatlon : By Improving project planning, work breakdown structure allows for smarter
budget and resource allocation. Speclflcally, It ensures that all _budget and time requirements get accounted for at the
very beginning of a project. Addltlonally, the mutually exclusive rule guarantees that no duplicate work wlll take place,
which eliminates wasted budget and time.
Simplified risk Identification : The visual nature of work breakdown structure makes it easier to identify areas of risk
50 that you can get ahead of problems and remedy them faster.
Improved accountability: The clear work assignments, timellnes, and budgets identified by work breakdown structure
Improve accountability among team members. That's because eve&')'one Involved should have a dear understanding of
what they are responsible for and the time they have to complete that work.
Enhanced vlslbillty : Finally, work breakdown structure provides a high level of visibility into · f!Very project. Thi s
visibility makes it easy to communicate expectations to stakeholders and team members and track progress
throughout the project.
A work breakdown stru_cture is a helpful method for managing the challenges that accompany large:-scale enterprise
There are several ways you can create a work breakdown structure. The lowest tech options are a whiteboard or a
waD with sticky notes, but that clearly won't work for a geographically dispersed team. Go digital with project management
are that drives agility across teams, whether in the same room or distributed across the globe.
As you get started with work breakdown structure, there are several rules to keep in mind, many of which are covered
the work breakdown structure definition. These rules Include :
• 100% Rule
- Both the work and budget allotment for all deliverables must always add up to 100% and they must do so In a
hierarchical manner. For example, at all _level two deliverables must add up to 100% of work and budget for the
entire project as outlined at level one of the hierarchy.
- Below that, at all level three deliverables must add up to 100% of their parent deliverable. So, If the parent
deliverable Is 40% of wo~k for the project and Rs. 60,000, the sum of all its sub-deliverables must equal 40% of
work and Rs. 60,000.
Mutually Exclusive
Every deliverable and sub-deliverable must be mutually exclusive, which means that no milestone can appear within
the work breakdown structure twice. This mutual exclusivity helps ellmlnate duplicate work, excessive costs, and
communication issues since It means that only one team or person Is resp onslble for each deliverable.
3. Focus on Outcomes
. d ut in the work breakdown structure defines an
O
Once again, it's important that every deliverable mappe . • o
not an action. This rule makes it easier to manage project scope and gives team members working on the
Initiation
Library Management
System
Project Phases
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3. Responslblllty-based structure
r anlzatlon units that will work on the project.
It defines and structures project activities based on~t:_::h:e.:.o~g
:------i
Online Shop
Teams
--_-_-71--- - - - - - - - - - - ~esting Te~~- - -- ---i
:(.______-_-_--_--_-_-_--_--..,_-_-_- _-_--_-_-·_·.·,_···::·.:.:·:·..:·:.·:.: ·:.·:.·:.:.:.:=~---
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0
Sitemap
o Wireframes
0
page designs
0
Front-end code
0 Back-end code
Be sure to include all tasks and that you are not leavlng anything out. For Instance, if you are working on a website
redesign project, have you accounted for content? If you miss a deliverable now, you will regret it later.
That's why listing things out as a team is so helpful. A team conversation not only ensures all your bases are covered. It
also helps you set expectations for who will be responsible for deliverables and tasks, all while engaging the team on
the overall process of the project.
Therefore, as you dig into each high-level deliverable, ask your team :
Annotate sections
0 Oeliverv2
th
0 conduct meeting wi clients der to get to a finalized sitem
. be done In or
0 Finalize s,temap k that will need to h ur team to discuss th
t for all of the wor ·t down wit yo · · •
- This list of tasks Is an estlma e d h t's 1·ust fine. When you SI d ne Listing out every single
This might not be the way you 'd do ·t, , an t a derstandlng of how th'in gs are . o ·
Ith a common un
Just be sure you are operating w I te the deliverable.
help you spell out the effort it will take to comp e
a to do that is to exarriJ
Step 3 : Prepare Minute Details detailed as possible. The only w y . . the work that
You should make your wor k brea kdown structure , asII about elaborating e ffort and determining . .
,
task you have identified and list out subtasks. It s a
to be done to successfully complete the deliverable. d this you will find less room for
'f ake an investment to o , . . ch
It's a process that takes time and thought, but ' you m k the next step and detail out what will go into ea ..
. the long term So, ta e ct
expectations and budget overages in · , k d wn the "Test the current stru ure
h , how you might brea o
Using the website redesign as an example, ere 5 .~
site users" deliverable even further :
o Recruit users
o Schedule sessions
o Write test script
o Conduct 5 sessions
Compensate users for time
o . .
_ Write up fi~dlngs and recommendations. This one task is proof that any•single line item in a scope can be an exp~ns
one! Not only did this example include subtasks it also included a line ite~ that requires payment to a party outsid~
the project.
You are going to ~ant to know about any expenses before scoping your project, and your clients will too. Be ~u
account for them early on so nothing comes as a surprise·when you are knee-deep In your project.
Step 4 : Format and Estimate
- Traditionally, you will find work breakdown structures presented in flowcharts that resemble ·website sitemaps-.
format works well because it show's a hierarchy of tasks and is easily numbered and referred back to.
- But, some people like to list them out on whiteboards or put them in spreadsheets. The format isn't what matters
it's the completeness and accuracy of the tasks Included. You can create your work breakdown structure in any
that makes you comfortable.
- When you have listed all of your tasks and subtasks in a format that makes se s · 'II . ·
make sure you have Included all of the possible tasks and subtasks. . n e, you w1 want to review it a
- Once that's confirmed, go through the list and discuss each task · t f .-
O
hours, days, weeks. It really depends on how granular yo d in erms level of effort..This could be In mf
u nee to get and how y . .
Assigning an increment of time to each task will help y dd our organization estimates.
ou a up a total estim t f • ·
you up to create a project plan when you are ready fo .th . a e o time (and possible cost) a
r at step in your project . .
When you are done, you will know if you are in ·
• 1
art,cu ated too much time or effort to d scope, out of scope· you might run this · ·. • i·
o everything within th exerc1se and find
the baseline for what's needed and as a e Scop~ of the project Th ,
. ' group, you can scale back on t k · e good thing.is, you
as s to fit the .
. · scope or the timellne.
- As a contribution to Building Practice Guidelines, these Linear Responsibility Chart templates list the typical tasks
involved in a building project according to its phase or stage. Each entry recommends who should take the lead and
who else should be providing significant support for each task. The tasks should be modified or augmented to suit the
particular construction proiect and the needs of its participants.
In a_well developed team, all will participate to some degree. Nevertheless, on a project it ls essential for the project
manager to identify who will be accountable for initiating, conductin·g and concluding each and every task.
Preparation of LRC
- LRC is prepared to find out responsibility centre of all key activities In the project and for that purpose, LRC is divided
into rows and columns and numbers. The rows of LRC Indicate activities, responslblllty and authorities. Th~ columns
identify the position of the project participants and numbers Indicate the degree of authority and responslbillty existed
between rows and columns of LRC, the n~mbers can.be symbol. .
'- The Linear Responsibility chart Is divided Into :
o Rows : They indicate activities, responslbllltles, authority.
o Columns : They Identify position of project participants.
o Numbers : They indicate th~ degree of authority-responsibility existing between the rows. and columns. They can
be symbols. ·
' ,. ,. ,.,, ·- .
,, General.M•n•i~er Ma~ager ~f-ProJ - p i' . rt . • " •
,: Acttvlty/R11ponitblllty . 3
3
Establish Objectives & Policies 1
3 3
1
Integration of Projects 2
1 3
4
2
Project D&rectlon
1 3
4 2
Project Planning
5 1
2 4
Functional planning
1 3
4 6
Project Budget
1 3
4 2
Project Control
Symbols
1 = Actual Responsibility
2 = General Responsibility
3 = Most be consulted
4 = May be consulted
5 = Must be notified
6 = Must Approve
- It describes the role of project participants in project matters. Authority, responsibility and accountability for
. '
activities are delineated among various project participants. Problem-solving becomes easier.
- Communication is facilitated. It cuts red tape. It is a us_eful tool for supervising of authority and responsibilities.
is delegation of authority.
- ft postures coordinatio~ because it clarifies ru!es and responsibility, authority and r esponsibility relationsh
project activities among the participants.
- ft reduces confusion and conflict between project manager and functional managers which
responsibility of project participants.
- ft combines organizational structure with work breakdown structure which makes easy t fi lb 'I'
. .
part1c1pants. . .
o ,x. respons .
1 1ty to
- It does not describe the people Interactions In the project. It Is a mechanical aid.
All relationships may be difficult to dellneate.
An interface is defined as a point of connect between entitie.s working on a common project. This point can be :
o Physical : Physical interaction between components
o Functional : Functional Requirements between systems
o Contractual : Interactions between subcontractors/suppliers
o Organii.ational : Information exchanged between disdplin~s
o Knowfedge: General information exchanged between parties
o Resource : Points of dependencies between equipment, material; and labour suppliers
Internal Interface : An internal interface Is one where the complete responsibility lies within contractor's scope of
worit.
External Interfaces : These are part of the Soope of Work under the responsibility of contractor which may influence,
or be influenred by, the scope of wortc covered by any other contract related to the project. ·
1 Objectives
Identify the appropriate personnel who wi!I be responsibl~ for each Interface request and for resolution of ~
nterface request.
Provide a system which will facilitate the ldentiflcatfon of Interfaces, and address the specific in_terface request
Establish a procedure that promotes efficient management of Interface issues from Initiation to close out.·
Define methods for communication and coordination of Interface requests between various parties.
Facilitate dear and frequent communications amon~t parties.
Facilitate the agreement of ii' schedule for Interface request resolution and.close-out;
Define a means for the control, ~itln& and reporttna of pr01res.s on the transfer of Interface requests.
Define processes ~ assurance that Interface requests are effectively Identified and man~ged.
. . ProjectMa
------------~====n~tlv.
- All these approaches have proper manner. n designed and developed
d I one common · •
eve opment tasks that can be Pnnclple Is that· th
performed concurre . . try to ma)(im• . ev
This has given the co IZe the number of maj~r
ncept of con · .:
current eng1neering.
eoncurrent engineering, also known as slmultaneous engineering, Is a method of designing and developing products,
In which the different stages run simultaneously, rather than consecutively. It decreases product development time
and also the time to market. leadlng to Improved productivity and reduced costs.
concurrent Engineering {CE) is a systematic approach to Integrated product development that emphasises the
,esponse to custome~ expectations. It embodies team values of co-operation, trust and sharing In such a manner that
decision making is by consensus, involving all perspectives In parallel, from the beginning of the product llfe-cycle.•
o,ncurrent Engineering is a long tenn business strategy which gives a long term competitive benefits to business
ttiough the initial implementation can be challenging. It removes the need to have multiple design rewoncs by crt:Jting
an environment for designing a product right the first time round.
In a concurrent engineering environment, even if certain tasks cannot be completely executed at the same time,
designers and developers are encouraged to achieve maximum overlap between otherwise sequential activities.
In other words, concurrent engineering aims at achieving throughput time reductions by planning and executing
design and development activities In parallel, or by striving for maximum overlap between activities that cannot be
completely executed in parallel Concurrent engineering also called integrated product development (IPD) or
simultaneous engineering was introduced a few decades ago to eliminate the delays arising from sequential
engineering. This syste~atic approach is intended to force all the stakeholders to be involved and consider the full
~ neering product cycle from concept to after sale support
The use of concurrent engineering has been growing of late because of the ever-lnaeasing demand for quality
products at affordable prices and reduced time to market.
Although managing a concurrent engineering process is very challenging, the techniques and practices followed as part
cl concurrent engineering give several competitive advantages to the company and to the finaJ qneering product.
In a concurrent engineering environment, teams of experts from different disciplines are encouraged to work together
to ensure that design progresses smoothly and that all participants share the same information. The project and
problem-solving methods and the technologies utiliz.ed make up the essential elements through which parallerism in
new product design and development can be achieved.
Following methods describes the concurrent engineering implementation.
(I} Project Methods
- Project methods are based on team-work, milestone management, target-oriented wortc definition a~
follow-up. These methods are supported by senior management commitment and incentive programs. Each
team is granted a large degree of autonomy to solve dfS!gn problems without much hierarchical
intervention.
- However management must ensure that the transfer of Information between different activities or tasks is
smooth and transparent. Also, the means of experimentation must allow the experts Involved to rule out
differences in interpretation on the functional and technical design parameters.
- In other words, for concurrent engineering to be successful, Information and Interpretation asymmetri~
between the experts involved must be avoided whenever possible.
Problem Solving Methods
- During design and development projects, methods that foster and support smooth lnterdl.sclplinary problem
definition and problem solving methodologies such as brainstonnlng are utilized to open the boundaries of
the team to allow for wider ranges of alternative design definitions and solutions to be considered.
- The use of methodologies like Quality Function ~eployment (QFD) further h~lps experts- from different
disciplinary backgrounds to jointly define a product's functional and technical requirements.
Activity flow chartmethods such as I0EF3 allow for detailed planning and monitoring of the different parallel
-
0
v«Japping activities Involved In project execution. Failure Mode and Effects Analysis (FMEA) allows fi
systematic Investigation of the occurrence and Impact of possible flaws In the new product design.
_ The use of Design of Experiments (DOE) enables the systematic ldentlflc.atlon of aftJcal product/pr
parameters that Influence performance. .
- These are just a few of the many supportive methods that can be used In a concurrent englneertng environ
- Enhanced Productfvtty : Quick discovery of design problems helps In correcting the potential problems early than
later stage in the development process.
- Oem!ased Design and Development Tlme : It makes products which match their customer's needs In less ti~e a·
a reduced cost ·
Unbiased
- At times not sa>ping th e project thoroughly enough, not.understanding technical d'lfficulties a nd making changes
are the most common reasons why projects do not adhere to cost estimates and budgets. Cost estimates can
never be too detailed.
- be
Every change should docume"nted thoroughly. Management should consider how changes affect other phaseS
of th e project. A simple, vet effective tool ls to use a spreadsheet to prepare the cost estimate. and keep all of
the important data visible fn cells, instead of hidden in formulas.
Project Management Software
An effective and simple way to estimate costs and prepare a project budget is to use project management ~ -
Most software has features that identify the types, quantities, and phasing of different twes of labour. It also has
capabilities for ~mating the costs for individual project pieces and adding them togethe.r to reach a project total
The pieces can differ. In size and number from a few large phases of a project with known costs to hundreds or
thousands of small tasks. 'I
A cost estimate is the. sum of all th~ costs involved In successfully finishing a project from initiation to completion.
project costs can ~ categorized In a number of ways but the simplest classification divides costs into two main
• Direct costs
They are broadly dassifled as the costs that are dlrectly associated with a single area such as a department or a
project. In project management, direct costs are expenses billed exduslvely to a specific project. They can indude
project t~am wages, the costs of resources to produce physical products, fuel for equipment. and money spent to
address any,project-spedffc risks. ·
They are not associated wtth a spedflc cost and are Instead Incurred by a nuniber ~f projects sfmultaneousl
IOmetlmes in varying amounts. In project management, quality control security costs d .•. y
. • . . , an uti 1ities are ~ally
dassin
oct Ma
na 80lon1 Ml/
ed a~ lndl
3· 1B
Project Planning & ~
ectJ
j ctS and are not dir Y billable to
umber of pro e II
Prt>Ject. ~ costs since they ilrc shared across ., n
Be\'ond penses fall Into more specific
the bro3 . t project ex
C'.ornrn0 0 d dasslficatlons of direct and indirect cos s,
(IJ •_
t\1>esor e,rPetlse5 /ndude :
(hJ
-hour •• The cost of human effort expended towards project objectives.
Matertafs · Th od cts
(fii) · e cost of resources needed lo create pr u ·
£qu1Pntent d fn project work.
(h,) : The con of buying and maintaining equipment use . ( d rs contractors ..~
Sen,Jces • n.. given project ven o , , ~ ..... J.
• '"e cost of external work tha t a company seeks for any
(v) Software . N . .
(\'i) · on-physfcal computer resources.
Harctwa~ . Ph
( • · VSlc.al computer resources.
vnJ Fadlltfes . Th I s or locations.
• e con of renting or using specialized equipment, serv ce 1
('lrlli) Conti fi · lcs
'1Bency costs : Costs added to the project budget to address specl JC ns ·
3.7.3 Pro•ect
1 Cost Estimation Techniques
........_ ~any factors affect project cost estimation making it difficult to come up with predse estimates. Ludcily, ~
-.,;;;um1ques that h I •
can e P m preparing more accura te cost estimation.
1. Analogous Estimating
Here, experts Who have experience in similar projects are approached for he(p. They use your own historical
you have access to relevant historical data, tty analogous estimating, which can show precedents that help
what your future costs will be in the early stages of the project.
2. Statistfcal Modeling
Statistical modeling, or parame tric estimating also uses historical data of key cost drivers and then calcu
what those cost would be if the duration or another aspect of the project is changed.
Three Point Estimate: Another approach is the thre!?"point estimate, which comes up with three scenarios:
likely, optimistic and pessimistic ranges. These are then put into an equation to develop cost estimation. .
3. Reserve analysis
This technique determines how much contingency reserve must be allocated. This approach tries
uncertainty.
4. Cost of quallty
-
This techniques uses money s pent during the project to avoid failures and. money applied after the project ~
failures. This can help fine-tune your o verall project cost estimation. And comparing bids from vendors can also
figure out costs.
5. Bottom-up Analysis
This technique supports the Idea that the individual cost of each activity or entire work package is of
importance. By using the method, individual scheduled activities or a work package can be estimated to the
detail. All estimates are grouped and sorted by categories and then gathered into a summaiy table that is
tracking, control and reporting purposes. ·
- This ~ep_focuses on obtaining project information Including all previously developed protect scope and schedule
details and data from which a project cost estimate can be prepared.
- The level of scope detail varies depending on the project phase, project type, and project complexity but womd
include the design matrix and criteria, all assumptions and pertinent sc.ope details.
- The estimate basis should be clearly. documented and forms the beginning of the estimate file that ~ be
prepared for each estimate. Each of the following steps will add information to this file with thl! end result beir,g
a complete traceable history for each estimate.
Prepare Base Estimate
- This step develops the estimated costs for all components of a project. exduding future escalatfon. These
components may be estimated using different techniques depending on the level of scope definitian and the size
and complexity of the project.
The number and detail of components estimated may vary depending on the project daelopment phase. ~
inputs to this ste.p include project scope details, Historical Databases and other cost da•abasu. llt.uwledge of
Mat1tet Conditions, and use of Inflation Rates.
A required component of the base estimate step is the preparation of a Basis of Estimate. document ttgt
describes the pr~ject in words and indudes underlying assumptions, cautionary notes. and ~
........
Scanned with CamScanner
3-21
_ Bottom-up estimating Is a way to estl p Pia &
mate an overall value by ·
the sum total of these values as th approxtmatlng values for srnan
e overall value In p J tt componems and ustng
schedule or budget. · ro ect management, this type of estlmatfna ,_ ,_....,
· ·n. 0 U><:U to create a
- Another disadvantage of bottom-up estimating Is that It can be costJy. The time spent dtt.ompost"I project work Is not
---1&..1.-
free. Additionally, the estimation done for each component. Is given by the lnd:.m..duaIs r"'->t"""Qf""" for mnpedt• the
components.
In ~eneral, bottom-up estimating is not the best choice for projects that do not allow for long periods cA ptar,nh• or
proJects that have contracted resources that typically do not start on the project much earfier than when the wc,r1r is
going to be completed.
Top-Down Estimating
Top Down estimating is a project estimating technique .in which the overall project is estimated first, and indMdual
tasks are apportioned from it. You start from the top of the pyramid and work downwards..
' '
- This type of project budgeting usually occurs when there Is a fixed budget and/or the scope of the proiect must flt
within a predetermined funding level, particularfy when.projects aren't blessed with rich resources.
Top Down is the opposite of Bottom Up Estimating, whereby individual tasks are estimated mt and 9raled up~ Into
the overall project estimate.
- In top down estimating, individual task estimates are only as accurate as the overall project esti~ they are demed
from. If the overall estima~ is incorrect, nothing will make the Individual task estimates accurate.
- And because projects are normally tracked via lndlvldual tasks, this could lead to Issues duri• the project when
individual tasks are fncorrectJy apportioned, even though the overall estimate Is correct.
- Top-down estimating can be very useful when cost ~mates are needed In the very early phases of a project. This Is
typically when not much Is known about the project and very llttle Information, If any, ls available.
- Since this technique Is based ~n high level Information, the estimated cost can be calctllated faster and wilh fewer
resources and effort. Therefore, It's a less expensive quick method for establlshlng the project budpt than ocher cost
estimating technfques that require.more detailed Information. lnvoMna more time and resources.
Another good advantag~ Is that top-doWn est1matln1 gets greater commitment for the project from upper~!
management, while relaying to the 'tower management staff expectations for the budseL
Network Planning is a technique used in Project Management. It is used to plan, schedule and control the projects
consist of many interrelated activities. There are many techniques used in Network Planning. The techniques sepa
planning and scheduling functions.
Network Planning uses a network diagram to show various activities of a project. The diagram shows vari
sequences of the activities to be done using different techniques.
In other wo~s, we can say that the network planning is the categorisation of the activities involved in proj
implementation in a sequential order followed by a schematic presentation of the activities ne~essary for the
project.
A- Identify and list the category of activities involved from the start to the completion of the project. The activities
grouped in categories which are different from each other.
B. Arrange the list of activities in sequential order of their performance. There may be a0:ivity which can be started
after the completion of some other activity, whereas there may also be some o~her independent activity which
started simultaneously.
In network planning, such independent and inter-dependent activities a;e laid do • •
. · wn a 1ong with their estimated
schedule, i.e. the duration estimated from the start to the completion of the activity.
,. With the details of following A and B , draw the diagram of the netwo.rk 0 f th . •.
- - . . . e act1v1t1es so that the opera
planning of the execut.Jon of the entire proJect can be visualised. ,
. This whole procedure is the network planning of the project schedule which ma . - .
- ct easier than to look around the list of activities and locate 1 • kes the monitoring and controlll
the proJe apses, 1f any.
Network Diagram
A network diagram is a graphical representation of all the tasks, responsibilities and work-flow for a pn>fect. It often
looks like a chart with a series of boxes and arrows. It Is used to map out the schedule and work sequence ro, the
project and track its progress through each stage, up to and lndudlng completion. Since It encompasses t!YefY single
action and outcome associated with the project, a network diagram also illustrates the scope of the pn,fect.
_ A network diagram not only allows a project manager to track each element of a project and quickly share its status
with others, but also improves comprehension and enhances retention. As research shows depicting data In a visual
way can also boost performance and productivity while reducing stress among your t.eam members.
_ The project network diagram displays the duration of activities In the project, their chronological orde.r and logical
~ependencies between the activities graphically or In tabular form.Unlike the work breakdown structure (WBS), a
network diagram also takes into account the chronological order of activities according to their dependencies, and not
just the logical order of the project activities. Bar charts su~ as Gantt Charts are a special form of the networ1c
diagram.
ldentifying Risk by identifying the critical path and the potential bottlenecks in the project process
The network diagram is the foundation for the project scheduling•. In modem projectmanagement. hardly any
network plans are calculated •manually" anymore. Project M_anagers use a P.roject management software to do so.
However, understanding the basics of the method enable you to better understand your own project plan.
Tasks
- · Prior to the construction of the network diagram, the project needs to have been broken down into its constituent
tasks. Tasks should not be too 'small or they become prone to micromanagement. Neither should they be too large to
lose the benefit of project control. So, a large task Is ~o different than a whole project.
For an example, a simple task list for a small convention could be:
o Finalize Attendees
o BookVenue
o Order Catering
o Write Speech
o Travel&Setup
- Interestingly, several of these tasks can be done In parallel. If you force yourself to perfonn Heh tJlsk one after the
other, you might be taking too long. That's where task dependencies come In.
(li) Rnlst\ tD Rnlst\ (FF) : Task B cannot finish unti1 Task A completes.
(Iii) S'tart to Slalt (SS) : Task B cannot start until Task A starts.
(hr) Sta rt (this one is rare).
rt tD Rnlsh (SF) : Task B cannot start until Task Asta ·1 nod of ttm.
. T k B doesn't start unti a pe
Also. the tasks do not have to line up exactly. A lead time means that as . nagement software,
elapsed, and a lag time means that Task B starts before Task A finishes. In proJect ma
usually only a lag time specified, and a lead time is simply entered as negative lag.
•onsh' is by far the most common and if
It SOUnds oomplicated, but suffice it to say that Finish to Start (FS) relati •P
Stick to that. you won't get into much trouble. .
1 • de • •
n Pf'OJeCt man.-gem~t. the network diagram is a graphical p1ctton
of a project schedule which uses
.
bous1
represent each task. It is used to determine the aitical path, as well as the float of each task.
(i) Critical hth : These are the tasks which define the completion date of the project. They cannot finish late, or
moved. or the overall project completion date will change by the same amount.
(i) Roat : It is the amount by which a task can move without affecting the completion date of the project.
path tasks have a float of zero. It is also called Slack.
Creating a n etworic dJagram can be an Involved process that begins after you have determined predecessors ~
activity. Here's a simple example that can help you learn how networit diagrams can be useful in any project
manage.
You find out how to draw the network diagram for a sample project from the information in the table shown he.re :
Paede(essor Rmtionships for YOUT Picnic
~----~ .;_. ~ ....- -·. ---'
.., - -- • ; ...t
.:>· -~~
1·! ": '- -~ "'- . ..
-;..~ ~Ill!'!~: .- . ~ DNcrl~n~ -. t.'_ l I
, . ,,.
r~ ~~!,.
:, 'I.·,.J... ,a -.;:~ -,
,, ,-~~-.-" M - < -- -,~
~~~
1 Load car 3,6
2 Get money from bank s
3 Make egg sandwiches 7
4 Drive to lake
1
s Decide which lake
None
6 Buy gasoline
2
7 Boll eggs (for egg sandwiches)
s
Table3.1 1.1
Rg. 3.11.1
. . 4. Find all activities that have your first activity as an Immediate predecessor. Activities 2 and 7 have Activity 5 as at
immediate predecessor. Draw boxes to represent these two activities, and draw arrows from Activity 5 to AdMties 2
and 7.
s. Continue in the same way with the remaining ~cthrities.
Rg.3.11.2
Draw a box.to rep~ Activity 6 and draw an arrow from Activity 2 to that box. Only ActMty 3 has ActMty 7 as
an Immediate predecessor. So draw a box to represent Activity 3, and draw an arrow from Activity 7 to ActMty 3.
Now realize that Activity ·1 has both Activities 3 and 6 as Immediate predecessors. ~ . draw a boll
representing Activity 1 and draw arrows from Activities 3 and 6 to this boll.
The rest is pretty straightforward. Because only Activity 4 has Activity 1 as Its lmmedl~te predecessor. draw a box
representing Activity 4 and draw an arrow from Activity 1 to Activity 4.
6. After adding all the activities to the diagram, draw a box to represent End, and draw an arrow from ActMty 4 (the last
r
activity you have to complete) to that t?ox.
suvassolJne
• rs-10_, .,
,._. Make ,
• sandwiche9 ,
ti= 10 ·
Ag. 3.11.3
. .· ur friend take to get to the lake far
Now for an 1mpartant timing-related question. How long will you a nd yo d th
. S2 I utes to complete, an e 1owe,
prcnlc? The upper path (Start, Activities 5, 2, 6, 1, 4, and End) takes mn .. th .
(St.art, Activities 5, 7, 3, 1, 4, and End) takes 57 minutes to complete. Thus, 1•t wr·11 take 57 minutes from e
start until you arrive at the lake fur your picnic, and th!? lower path is ~e critical pat.h.
.n
etWork diagrams. An ADM chart also does not have a way to encapsulate lead and I ti.
.
•h .
ag mes wit out intro u
d
nodes and activities, and it's Important to note ADM Is not widely used anymore d t 'ts . ·•
ue o I representational lim
2 • p,ecedence Diagram Method (PDM)
In the precedence diagramming method for creating network diagra h . .
- · I • hi . ms, eac box, or node represents an
the arrows representing re at1ons ps between the different cti . . .
a Vlties. The arrows th '
possible relationshlps : . . can ere,ore rep
(Iv) •start to Finish• (SF) : This Is an unoommon dependency and only used when one activity cannot finish until
another activity starts.
In PDM, lead times and lag times can be written In alongside the arrows. If a partlwlar actMty Is golng to require 10
days to elapse until the next activity can occur, for example, you can simply write "10 days" over the arrow
representing the relationship between the connected nodes.
PDM network diagrams are frequently used in project management today.
Before starting to draw the network, following measures should be taken aetlally
- Prepare a list of the activities Included In the project and their dependence on other act:Mties.
- Draft the network roughly, usually by soft pencil and an e~er on a large piece of paper.
- The estimate of time required for each activity is made considering manpower and equipment's available and In
c-ertain cases assumptions are based on statistical approach and experience.
These time estimates are then written on each activity.
- Then scheduling computations are done to get earliest and latest allowable start and finish times for each activity, to
identify critical path and to indicate the amount of slack on non-critical paths.
- Now this is prepared in final form for use in the field. Project is controlled by chedcing the pc 081 ess against the
schedule.
- Network analysis has played an importan~ role in field of engineering. Application of networtc analysis has been made
In information theory, study of transportation problem and planning and control of research and dewelopment
projects.
- In transportation problem, there are member of routes to reach a terminal,
. but we like to choose
. a route far which the
cost or time is minimum. Th~re is a problem to select the shortest route through a netwult. Thus the problem of
network analysis is to find a course of action, which minimizes some measure of perfonnance.
- A project consists of no. of interrelated activities which must be executed in specific order to complete the project. The
activities are interrelated In a logical sequence in such a way that some activities cannot start until some others are
completed.
- These activities require time and consumption of resoun:es like labor, money, material and machine ett. The main
· objective before starting any project l.s to schedule the required activities Is an efficient manner so as to complete it-on
or before a specified time limit at minimum cost of its completion.
- The techniques which are used for planning, scheduling and controlling large and complex projects are termed as
network analysis or network techniques. These techniques are based on the representation of the project as a network
of activities.
- · A network is essentially a araphlcal plan consisting of a certain conflsuratlon of arrows and nodes for showi,. the
logical sequence of various activities to be performed to complete the project.
Fig. 3.12.1
2. Event
An event In a networ1c diagram Is a specific lnmnt of time which mar1ts the start, or the end of an activtty. E
consumes neither time nor resources. It Is represented by a circle and the event number is written within the d ·
The event drdes are called nodes. Therefore, the major difference between actM\ies and events is that 31'rtNma
represent the passage of tJme whereas events are points In Ume.
All actMty arrows must besln and end with event nodes as shown as follows
@~(§
Fig. 3.12.3
Rg.3.12A
(i) Merge Event : An event which represents the joint completion of more than one activity is known as merge
event.
(ii) Burst Event : An event which represents the beginning of more than one activity Is known as burst evt!nt.
(ffi) Merge and Burst event : An event may be merged for som·e act.ivities and burst for some other activities
simultaneously.
• ....... ,.,...
1\:::1 •
~
- CPM meth od developed was by E.I. du Pont de Nemours Company (USA) In 1958 and named as critlcal path
(CPM) to schedule and control the project. CPM Is applicable to both large and small projects, taking from
Program,. tn ~ddlng or horse shows.
- It Is Widely recognlted and Is the most versatile and potent manasement planning techniques. The objective of crltl
th
pa analysts Is to estimate the total project duration and to assign starting and nnlshlng times to all activities I
In the project.
1. Break down the project Into various activities systematlcally. Label all actMttes. Arrange all the activities in I
sequence. Construct the network diagram.
2. Number all the nodes (events) and activities. Find the time for each activity considering It to be deterministic. lndi
the activity times on the arrow diagram.
3. Calculate earliest start time, earliest finish time, latest start time and ,atest finish time. Tabulate activity normal ti
earliest times and latest times.
4. Determine the total float for each activity by taking difference between the earliest time and latest time for
node.
5. Identify the aitical activities (the activities with zero float) and connect them with the beginning node and the end'
node in the network diagram by double line arrow. This gives the critical path.
6. Calrulate the total project duration.
7. It is intended to reduce the total project duration, crash the critical activities of the network.
8. Optimize the cost.
The ba.sic objective of the time analysis l.s to get a planned schedule of the project for which the following fa
should be known :
- Total completion time of the project.
Earliest time when each activity can begin.
Latest time when each activity can be started without delaying the total project.
- Float for each activity I.e., amount of time by which the completion of an activity can be delayed without delaying
total project completion time.
Identification of critical activities and altlcal path.
The basic scheduling computations can be grouped Into the following heads :
EF11 =ESq+tq
=.E1+ tq
(iv) calculate earliest occurrence ti
.., d' me for event J (J > I) which Is the maximum of the eartlest finish times of all
act1V1ties en mg Into that event, I.e.
E1 = Maximum (£Sq+ liil .
= Max (E1+ tq)
The computed values are Put Into the lower left portion of each event. ·
2. BackWard Pass Method (For latest allowable time)
In this method calculation begin from last event L
The various steps are as follows :
(i) Set the latest occurrence time of last event L which is equal to the earliest occurrence time of that event
obtained from forward pass method. ·
i.e., Assume L = Efor ending event.
(ii) Latest finish time for activity (ij) equal to the latest event time of event j, i.e., lfq = ~
(iii) Latest starting time of activity (l,j) ls the latest completion time of (l,j) minus the activity time Le.
LSiJ :s lfiJ - liJ
= t.-tu
.
(iv) Latest event time for event i is the minimum of the latest start time of all activities origlnatina from that event.
'·
Thus
L; = Minimum (L.Sii)
= Min (LFIJ-l;j)
= Min (~-Lt;)
The computed values are put Into the lower right portion of each event.
..........
,
• • , , • •• , 1 •• •
(i) Activity A
pt events cannot occur until all the Incoming activities Into It have bttn completed.
pt activitY cannot start until all the Preceding actMtJ~ have bttn compf~ed.
t40 set of activities cannot form a drcular loop.
,Jttr the networic is drawn In a loglcal sequence, every event Is assllned a number. The number sequence must be
~ so as to reflect th e flow of the netwonc- A number Is placed Inside the drde. The rule deYtsed by D.R. Fufltttson Is
used for numbering.
The procedure for applying this rule conslsts of Identifying the Initial event and then gradually mmoertfnl the
succeeding event by deleting the arrows from the previous preceding events. A number is assigned only when by such
deletions a node is converted Into fnltfal event. ft Jnvofves the foflowfng steps :
0
Event numbers should be unique.
0 Event numbering should be carried out on a sequentlal basis from left to right,
0 The initial event which has all _outgoing arrows with no Incoming arrow fs membered as.
0 Dele te all arrows etnerBing from all the numbered events. This will aeate at least one new start eveYt out of the
proceeding events.
0 Number all new start events 2. 3 and so on. Repeat this process until all terminal event without any s-JC • essor
activity is reached, Number the tennlnaf node suitably.
EJarnple : Construd a netwonc for the project whose adMfies and their precedence raationship 818 as giYer1 as fellows :
ABC DEF · G HI
A A D 8,C,E F D G,H
olution :
From the gjyen constraint, it is dear that A, D are the starting activity and I the terminal activity. B and Care staa tile
ith the same event and are both the pred~rs t;;f the activity F. AJso E _has to be the .,redec:essor of both F and H.
!IICe, we have to introduce a dummy activity.
(•) (b)
(c) (d)
Ag. 3.13.1
1 is the dummy activity.
H
Rg. 3.13.1 (e)
The construction of C.P.M. diagram can be explained by the following ex~mples :
. lhe .........i-. op818fiocl8 -
Example 3.13.1 : Fof the construction of wall the complete process can be broken intO IUOIU'l"f" "II •
Solutlon:
These following operation have not been written In a logical sequence. These operations can be denoted by
symbols ABCD.
The C.P.M. diagram can be drawn as shown In Fig. P.3.13.l(a}.
D C B A
Ag. P.3.13.1(a)
The operations D, C, 8 and A have now been shown in the logical sequence. From the study of these operations, it ·
found that preparing mortar is independent of digging foundation and planning operations. Therefore a mocfified U.
diagram is drawn in Fig. P.3.13.l(b).
Dig
Foundation Planning
•, t ·- - - - f
Prepare
Mortar
Rg. P.3.13.1(b)
In this Fig. P.3.13.l(b} numerals (1, 2, 3, etc.) are used commencing from the first column on the left and then
proceeding towards right.
The operations are not given In logical order. There loglcal order will be according to Fig. p3 .l3.l{a)
E
Rg. P.3.13.2(a)
·1 > - - ~ ·- - - ~
Rg. P.3.13.2(b)
- 'fhe cutting and drilling of the bamboos and wrings are different operations, and these are Independent of each other.
Therefore cutting two ~mboos and cutting wrings can be started concurrently. Thus after the end of operation E,
0 peration D can begin and similarly after the end of operation e, operation C can start.
_ After the end of operation C and D, the last operation of fixing nails can begin_. Thus the network is drawn from left to
right and each drc:fe representing an operation Is numbered from left to right. All the drdes in the ~me left are
fi rst numbered and so on.
_ It is clear fro m the Fig. P.3.13.~(b) that operation 5 can only begin when the operation 3 and 4 are over. Thus we can
say t hat operation 1 immediately preceding operation 3, and operation 2 immediately precedes operation 4. Also the
operation 3 and 4 must Immediately precede the operation s.
_ In the language of C.P.M., the operations 1 and 2.are called the pre-operations (or PRE- OPR) of 3 and 4 respectively.
Similarly 3 and 4 both are the PRE-OPR of operation s. Also 3 and 4 will be called post operations (POST-OPR) of
operations 1 and 2 respectively, 5 is the POST- OPR of operation 3 and 4.
EJample 3.13.3 : Suppose we want to start a small scale factory in a shed aVBJlable in an Industrial area in which wakshap
is to be prepared. First step is then to <frvide the project into operations.
The 6st of operations is given as follows. which is not in a logical order :
A = Machine foundation
B = Electric fitting
C = Repair of floor
D = Installation of machines
E ~ Procure workshop bui~
F = Whitewash
G =Clean up
Rg. P.3.13.3(■)
- If each operation is represented by a drde then this worlt can be executed In a better way as follows :
- Sketch shown in Ag P. 3.13.3(b) is drawn as per drde and line method in which drdes ~presents the operation or
activity and the line shows the relationship between the two activities. The operation on the left of each line should be
completed before the starting of the operations on the right of the line.
Flg. P.3.13.3(b)
- ·
Network shows that operation 3 and 4 are not affected by operations 2, s and 6• Hence the operations 3 and 4 can
conducted at the same time, when 2, 5 and 6 operations are being conducted.
- This reduces the tlme to complete the project because after operation 1, oper:ation 2 and 3 can be started
simultaneously. Operations 6 and 4 should be completed before the beginning of the operation 7. In the final nf!twodr.
diagram operations should be represented by the numerals Instead of alphabets.
1 2.3
2 4
3 4.5
4 6
5 6
Solution :
As no operation precedes operation 1, hence we s_hall start network from operation 1, keeping it in first vertical
rolumn. Operations 2 and 3 are ~st-operations of operation 1; hence these are kept in second vertical column as shown in
Fig. P. 3.13.4(a)
•t------1~ ,
Flg. P.3.13.4(a)
As operation 4 can be started when operation 2 is C?mpleted therefore, it will be kept in third vertical column.
Operations 4 and Sare the post-operations of operation 3 and can be started simultaneously after completion of operation
3, hence operations 4 and 5 both can be kept_in the same third column. As operation 6 is the post-operation of operations
4 and 5, hence will be connected by both 4 and 5 an~ will be placed in the next column, I.e•• in the fourth column as shown
in Ag. P. 3.13A(b)
Flg. P.3.13.4(b)
In Fig P3.13.4(b) , line connecting operations 3 and 5 crosses another line; hence It may be arranged In a better and
dear form as shown in Rg. P.3.13.4(c). ·
. ' .
5
Fig. P.3.13.4(c)
sometim~,.it is not possible to avoid ft then the llnes may cross each other but care shoufd be taken that such lines
shOUld be as minimum a.s possible and dear to understand.
Eample 3.13.5 : ~ illustrates a case In which, operaoons and pre-operatJons are as under :
2 1
3 1 and2
Solution:
- As the operation 1 is the first operation, hence networtc wilf be started by operation 1 denoted by the drde in first
column. Operation 2 is the post-operation of 1 and therefore will be kept in second column.
- Operation 3 has pre-operations 1 and 2; therefore operation 3 cannot be started unless operations 1 and 2 are
complete. Hence operation 3 can be kept in third column, I.e. after operation 2, and not in second column immediately
after operation 1. It is shown in fig. P.3.13.S(aJ.
Rg. P.3.13.S(a)
Fig. P.3.13.l(a)
•
If suffioent ·
men, nt'
equlpme s an
d materials are avaflabfe the netwonc woufd be better to draw In the form as shown
- the tf fn,o ..-.ufred for selecting colors, ordering and testing pafnts and wfthout waltl,. for
·•g. P. 3.13.6{b) to reduce m D • - ...
• be done on ground floor and In the mean-time plaster wort on first floor w,11 be
plaster on first floor, painting can
can be done Therefore network shown In fll. P. 3.13.6(bJ Is a better dla,ram
.
1pleted and the painting on the same ·
n the paint of vfew that it will save the time. '
..,., '-.-
Example 3.13.7 : Draw the network diagrams for the project in which PRE-OPR or POST-OPR are given as :
..__-_______
~ -- .'PRS:.OPR ' _,,
A None
B A
C B
0 B
E B
.F C,D, E
Solution:
Fig. P.3.13.7(a)
Example3.13.8: The example 3.13.7 for the above networ1< diagram can also be framed in terms o1 POST-OPR as given
under: =~~~.,,,...,..,=:-::r.-:,,,,....,,.,,,..--::-,,,-,,-, .
·;J:•~·
~;,,.
''... n
fPO .iina
...-.~~l;'"'p t
A Precedes B
B • C,D,E
C Precedes F
D . F
n
E F
Solution : Refer example 3.13.7
Example 3.13.9 : Draw the networ1< for the following In which POST-OPRs are given :
,.
;_ J'.!_1.~ ._.;j, .. ,,
.,
I
•:!
.,,...... , v·
.. ·-r ,
•
f,· ~' ~
••I
i"°8T~Pit
A Precedes B
B " C, [?
C " E,F
0 " I
E .. E
G
F "" G
1
~on :
fig- p. 3.13-~(a)shows th e sequence of operations A, 8, C and 0. Now the operation E Is preceded by C and the
operation F 15 also preceded by C. Hence, when the drdes are drawn to show the operations E and F, the connecting
lines of OE and CF intersect each other as shown In Ag. P.3.13.9 (b).
-rt,e intersection of lines DE and CF can be avoided by placing the operation Fin the fourth sequence above the
peration E, as shown in Fig. P.3.13.9(c). Now the numbers may be placed In the operation drdes beginning from left
; right as shown in Ag. P.3.13.9(d}.
0
A B E
(a) (b)
Fig. P.3.13.9
As tar as possible, the crossing of lines should be avoided. This makes the diagram less confusing and easier to
understand. However, sometimes it m'ay_not be possible or desirable to eliminate the occurrence of such crossing
lines. The numbering should be done starting from left and moving towards right, the first vertical sequence of
operation being numbered first and then the second and so on.
(c) (d)
Fig. P.3.13.9
A Macgube Foundation 10
B Bedric Fitting 15
C Repair floor 20
D lns1alla~n 12
E Procure Wortcshop Building 15
F 5
WhitewaSh
G 2
Can
lution:
The following activities are drawn in the network as shown ls Ag. P.3.13.l0(a}. Each activity Is represented by the
lJ meraI ·in the arde.
. b
Num ers o
f days are mentioned on the left comer of circle representing the operation.
3-40
Fig. P.3.13.10(b)
- PERT (Program Evaluation and Review Technique) was developed by a navy sponsored resource team composed of
Messrs. DG. Malcolm, J.R. Roseboom, C.E. dark and W. Fazor in about 1950.
This Is essentially a management technique used with advantage for responsibility accounting in addition to attaining
other well defined objectives. It is a method In which we try to exercise logical discipline in planning and controlling
projects.
- PERT Is designed for scheduling complex projects that klvolves many Inter-related tasks. It improves the planning
process because :
0 It forms the planner to define the projects various component activities and events logically.
0 It provides a basis for normal time estimates and yet allow for some measure of .; . . ·
• comp ....
estimating d tes 0pumum or pessimasm In ,
1c:uOn a . .
0 It shows the effects of changes to the overall plan as they contemplated.
0 It provides a built In means for on-going evaluation of the plan.
0 It facilitates the process of communication between planners m ,
anagement by either adh . . . .
or aosslng over them. In essence, PERT makes the clear cut a . enng organisational lines
ss1gnment of feSPonsib"t•ty
11 .
P0s-s1ble.
The main objective in the analysis through PERT is to find out the completion for a partkulM event within specified
date. If yes, what are the chances of completing the job? The PERT approach takes Into account the uncertainties. In this
approach, three time values are assoeiated with each activity of the optimistic value, the pessimistic value. and the most
likely value. These three tim_e values provide a measure of uncertainty associated with that activity• .
This is the shortest possible time in which the activity can be finished. It assumes that everything goes very well. This is
denoted by tO or a.
2. Most likely Time (Im)
This ls the most likely time as probably the actual time required to complete an activity. In this case it assumes that
things go in the normal way, with a few delays or breakdown etc. this is denoted by tm or m.
3. Pessimistic Time ·(tp)
This time is based on the assumption that everything will go badly. Thus, it is the maximum possaale time required to
perform an activity. However, this does not indude major catastrophes like labour strikes. acts of God. and unrest. It ls
denoted by tp orb.
t-
i:::,
I
u.
Moetllely Pemnlstic
.'MF 5 %"
~~~ th~
I distribution where 99% of e area
- Variance for an activity is estimated on the basis of analogy to the norma . ately 6a in length therefore, the
the normal curve lies within the ± 3a from the mean or fall with in lhe rang~ adp.pr~XJbutim_ Thus if denote the standard
.
bo 6<J fa cvmmetrtc istri on. •
interval (to, t) or range (lc,-tp) is assumed to enclose a . ut o .. , ...
deviation, then
6cr ==
OT CJ =
Variance of activity time,
er = C¥Y
6CJ = lp -to
(J = (¥)
Variance of activity time,
er= (¥Y
3.14.2 PERT Algorithm
The various steps involved in developing PERT- network for analyzing any project are summarized as follows :
Step 1:
1. Develop a list of activities that made up the project Including immediate predecessors.
2_ A rough PERT network is drawn on the basis of the three questions for each activity.
{i) Which activities precede this one?
(ii} Which activities follow this one?
(iii) Which activities are concurrent with this one?
ObviousJv, the first activity woutd be preceded by none and the last r-tkm-.. ·
. a~....,.., would .be followed by none. During
....... ._._
Using the expected activitv time estimates, determine the earliest start time and the earliest finish time for each
7.
actMtv, the earliest finish time for the complete project corresponds to the earliest finish time for the last actMty.
After determining the latest start time and the latest finish time for each activity, a,mpute the float assoaatl!d with
8.
each activity, the critical path activities are the activities with zero float. Detennine now the aitical path ttwuuBtt the
given network.
cf = .[¼(b-a)]l
10. Use the variabilitV in the ·activity times to estimate the ~riability of the project completion ~ . then using
this estimate compute the probability of meeting a specified a,mpletion date by usi11l the standard normal
equation.
Due date Expected date of completion
z = ✓ProjectVariance
_ Where z= no of standard deviations the d~e date or target date lies from the mean or eapected date.
. · th criti I th duration is not acceptable to the
- Crashing or compressing the project may have to be undertaken tf e ca pa
· . h · to be performed if resources are limited.
management or resou~ allocation may ave
~-... .,.
Scann.edwith CamScanner
p
3-44
rt Dlrt8
Rep0 I ,i/12 31/12
2
... 3112 10/12 11112
Preliminary .
:
lnY11Sllgatton '
WriteRepon
rw ~
Interviews
.b
I
I
:
Training :
I
Evaluation J
Final Report
[ 1
The first project management chart was invented by Karol Ada m1ec
· Id 1n
• 1896 So why
' • , .
chart? Good question I . • isn t 1t called .an Ad .
Here's a quick history of Gantt charts :
1896 : Karol Adamiedd creates the first pro·'ect man · · '
, agement ch rt h · -
Gantt chart. a : t e Harmonogram · :
. · , a, Precursor to the
1931 : Adami~ publishes the Hannonogram (b t · .,.,
u 1n Polish With r ·t d
1910-1915: Henry Gantt publishes his own r ,, . ,m, e exposure).
. P o,ect managements .
Today: Gantt charts are the preferred to t . VStem, the Gantt chart
0 I or managing pr . . . •
. OJects of all sizes and ty
. Pes.
0
construction
0
consulting Agencies
0 Marketing teams
0 Manufacturing
0
Human Resources
0 Software Development
0 Event Planning
The Gantt chart is the most widely used chart in ProJect Management
- These charts are useful in planning a project and. defining the sequence of tasks that require completion. In most
instances, the chart is displayed as a horizontal bar chart.
- Horizontal bars of different lengths represent the project timeline, which can lndude task sequences, duration, and the
start and end dates for each task. The horizontal bar also shows how much of a task requires completion.
- A Gantt chart helps in scheduling, managing, and monitoring specific tasks and resources in a project.
.The chart shows the project time!lne, which includes schedul~ and completed work over a period.
- The Gantt chart aids project managers ·1n communicating project status or plans and also helps ensure the project .
remains on trade.
Difficult to see on one sheet of paper : The software products that produce these charts need to be viewed on
computer saeen, usually in segments, to be able to see the whole project. It then becomes difficult to show the d
of the plan to an audience. Further, you can print out the chart, but this will normally entail quite a large •cut
paste• exercise. If you are going to do this frequently, it can be very time-consuming.
I _ :: : : : ::ke::::~-:=:.-.
required to train. ·
acxess to data from ~fferem proje<ts for nwh>jnje<t • ~
integrating with other systems, such as payroll, inventory, etc. The easier a PMIS is to use, the less time and money
3.16.1 Functions
3.16.2 Advantages
benefits of using an onllne or d
-
Wh·11 e th ere are manual project manogemcnt informat Ion systems, the ·ty effidenCV, economy, accuracy
noed c.ipact , l
system are numerous. With an online Information system S r , fits the most practlca Is speed.
ab1Tty
1 h fall these bene I ,
to andle complex projects can all be approved. But O r needs with great
Its a project manage
- Once the data ls collected, It can then be adjusted to reflect the resu d evise plans, schedules or
accu N c.in it create an r
racy. A manual program Is never going to match that. or
qu,'ckly · What once took days or longer Is now completed ·'" secon
· ds · Is lso
- . . ts of data wtth a PMIS. That data a
ProJect managers and their organizations can store large amoun which is large and requires
accessed, Prioritized and summarized as needed. And unlike a man~al system,
support P~nel, an online PMI.S needs far le.ss support and space.
With these factors there is also a cost benefit. The cost advantage of a digIta
I over a manual PMIS isfusually sign
Is
. . . correct. the chance o errors
especially when c:on.sidering storage and processing. And ,f inputs are
diminished with a doud-based PMIS.
I·Review Questions \
Q.1 Explain Project Planning & its purpose. (Refer Sections 3.1 and 3.1.1)
Q.2 Desaibe the important areas of Project Planning. (Refer Section 3.1.3)
Q.3 Expmin Project Scheduling. Describe the process of Scheduling: (Refer Sections 3.2 and 3.2.1)
Q.4 Explain wor1c breakdown structure. What are its advantages? (Refer Sections 3.3 and 3.3.2)
Q.S Describe the process of creating a work breakdoWn structure. (Refer Section 3.3.3)
Q.6 Explain Linear Responstbility Chart. List its advantages & cisadvantages. (Refer Sections 3A, 3.4.2 and 3.4.3)
Q. 7 Describe Interlace Coordination. What are its functions? (Refer Sections 3.5 and 3.5.3)
Q.8 Desaibe oonc:unent engineering. List its advanlages & disadvantages. (Refer Sections 3.6, 3.6.2 and 3.6.3)
Q.9 Explain Project cost estimating. What are its key components? (Refer Sections 3.7 and 3.7.2)
Q.10 Desaibe any four cost estimation techniques. (Refer Section 3.7.3)
Q.11 Desaibe and dttferentiate Bottom-op and Top-down Estimating techniques. (Refer Sedlons 3.8 and 3.9)
· 0.12 Oescti>e netwonc Planning and the steps used in it (Refer Sections 3.10 and 3.10.1)
o. ·13 What is a Networ1c Diagram? How we construct it? Explain (Refer Sections 3.11 and 3.11 .2)
Q.14 Explain different methods of constructing network diagram. (Refer SecUon 3.11.3)
Q.15 . What is Networ1c Analysis? List i1s advantages. (Refer Sections 3.12 and 3.12.2)
Q.16 Describe Critical Path Method with its steps. (Refer Section 3.13)
0.17 Desaibe and cflfferentiate AOA & AON (Refer Section 3.13.3)
0.18 Describe PERT. Explain ~e three time estimates system. (Refer Sections 3.14 and _ _ )
3 14 1
Q.19 Explain PERT algorithm. (Refer Section 3.14.2)
Q.20 Explain Gantt Charts. Describe its advantages and Limitations (R8 fa
• . • r Sections 3.1 S. 3.15.4 and 3.15.5)
0.21 Explain Project Management Information System. List ils advanta.
ges. (Refer Sections 3.16 and 3.1U)
crashing project time, Resource loading and levelling, Goldratt's critical chain, Project S i a ~ end
communication plan.
Risk Management in projects : Risk management planning, Risk identifica1ion and "*
register. Ouailahe and
quantitative risk assessment. Probability and Impact matrix. Risk response strategies for posffiw and negatNe risks.
4,1 Introduction
_ project planning is the most important part of the project life cycle. It tells what is to be achined and how. The
planning phase is when the project plans are documented, the project objectives and requirements are defined, and
the project schedule is created..
_ It involves creating a set of plans to help guide youthrough the implementation and dosure phases of the ~ The
plans created during this phase helps manage time, cost, quality, changes, risk, and related is.sues. They also help
control staff and external suppliers to ensure that the project is delivered _on time, within budget. and within schedule.
_ Project scheduling is a mechanism to communicate what tasks are to be done and which cwga11iutio11al resources wil
· be allocated to complete those tasks. Thus project scheduling is a document collectingall the work needed to be ~
to deliver the project on time.
- Project risk management is the area of project management that deals with the identification, analysis and mitiptian
of risks that can occur on projects. A p~oject is· ~ t~porary endeavour undertaken to produce a unique product.
service or result. This definition shows it is a risky endeavour. Since every project is unique, there are often ""'1Y
uncertainties surrounding it. ~e limited time and cost for each project also inaeases its risk.
- A project risk is an event that can have a positive or negative impact on the scope, cost. time and quality of the project.
Risks usually have causes and if they occur, they _can have multiple Impacts.
- Therefore it is important to plan for these .risks, Identify and prioritize them, and ensure that adequate responses are
provided. 'The goal here is to minimize the effects of these risks so .they do not negatwely affect the time, ~ cmt
and performance of the project.
financial) with the needs of the organization in order to achieve the established goals. Optimization brings the d
results within a set timeframe and budget with minimum usage of the resources.. The need to optimize ~nrnrr.
particular1y evident when the organization's demands tend to saturate and/or exceed the resources
available.
In Project Management, Resource Optimization Techniques are utilized to make adjustments in the impi
and completion dates of the projects, modify the organized resource used and resource aa:essibllity. Used a as
the Schedule Network Analysis to calculate the schedule compression of the ro·ect Resou .: - ·- -·
Techniques indudes the scheduling of activities and the resources required by thos:
a ~ wh" rce : ; ·
accessibmtv of resources and the task time. es lie-
4.3.1 Benefits
iii 1rtiP'o:;tions that have executed a PMO have slgnlflcan;::d::d Increment edges. Resea«h demonstrates that
( orfl" al component of the most astounding perform ed costs, and for Profeulonal Servlc:n Organltatlon. it
I
• cypic ers.
15 3
breakthrough perspective of your whole re
With 3 utd t d f rks source pool. you wlll diminish the authOfltatlve exJ)fflSeS related to
th O
(~) keeping up ese tla e hlramewo · Also. you can enhance Income, enhance the resources to achieve suc.cess and
• customer reIa ons ps.
sustai 0
ource optimization In proiect ma
lhe res . .. · nagement ls intended to Ideally modify resources to rei,ort the pnndpal
tteeting the actMties In the task It em
155
ues 3 r h th • powers organizations to gratify resource requests for an Ideal design and
ou to accomp ,s _e organ1zation's objectives
allows Y •
Network Crashing
4.4
project management is about optimizing time, cost, and quality performance on pro)ects. These three variables a~
' · · IIV rmke d· Changes ·m req\llrements of these variables frequently occur and the project manager has to re--
1ntnns1ca
plan the project accordingly and provide revised estimates for the linked variables.
, 10 practice the most common requirement for project re-planning calculati~s co~cem time and cost. Oients often ask
for projects to be speeded up and need to know how much of an increase in speed Is possible along with cost.
, The analysis and execution of change of time and its' corresponding impact on cost Is commonly known as Netwol1t
crashing. In crash analysis. a project manager offers re-planning advice based on the functional relationship between
time and cost.
_ The objective is to look at that relationship for the process concerned and to generate an alternative cost and time
scenarios. The dient can see how much it will cost to meet a range of different time options.
_ In network aash analysis, the project ~anager offers re-planning advice based on t~e relationships between time and
cost. This of course assumes that performance or quality aiteria are fixed, as is the case in most proiects. \n most cases
the specified outcome Is fixed.
_ AGuide to the Project Management Body of Knowledge {PMBOK• Guide) - Fourth Edition defines network crashing as,
•A schedule compression technique ·in which costs and schedule tradeoffs are analyzed to detennine how to obtain
the greatest amount of compression for the lea_s t incremental cost."
_ As a compression technique, network crashing concentrates on the project schedule in an effcrt to accelerate the
project's completion date. Plausible examples of aashing include the following:
o Over-time
o Allocating additional resources to specific activities
o Hiring additional resources
o Incentive payments for early completion
0
Subsequently outsourcing portions of the project to be completed within a shorter time period than would have
been possible if the same work was to be completed by internal resources.
. · h· ~nd which no further reduction in time will be possible inespective of the
- For any given activity a pomt reac es ~,.., . • I time nd
• • • The time for the activity at which minimum cost ls incurred 1s called norma a
resources spent on this activity. · . . t d with these t\mes are called normal cost and
the minimum time for the activitY is called crash time. The cost assoc,a e
crash cost respectively. . · . . . . . • fo
ed by adding the direct costs of each md1V1dual ac:tMty. Initially, r
1
- The total direct cost of the project can be determ n th tal .iec;t duration ls computed using the computational
. med and e to proJ
all activities, normal time estimates are a~u .
_ Procedure.
Find the normal aitlcal path and Identify the critical actiVltY•
2. c.alailate Cost slope
- Calculate the cost slope for the different actMtie.s by using the formula .
Cost slope = Crash cost-Normal cost/Crash t11M-Nonnal time
- The cost slope indicates the extra cost required to expedite an activity per unit time.
3. Rankins
Rank the activities in the ascending order of cost slope. The activity having the minimum cost slope have to be
first. crash the selected activity to its minimum duration.
4. Ctashir'C
Crash the activities in the ait:ic:al path as per the ranking i.e., activity having lower cost slope would be er.ashed~
the maximum extent possible. Calculate the new direct cost by cumulative ad~ing the cost or crashing to the n
cost.
5. Parallel aashlnc
As the critical path durationis reduced by the crashing in step 3, other paths also become critical, le.• we ~
critical path. This means that project duration can be reduced duty by simultaneous aashing o r ~ on the ·
aiticaJ path. -~ ........,,
6. Totalcmt
Crashing as per steps 3 and 4, one reaches a point when further crashing is either not •
.
°'
reduction aashlng or project duration For the d"1ff
. ·
P0SSlble or does not result
erent project durations total cost ls fou
by adding corresponding fixed cost to the direct cost d th nd up to total cost
commutative to the normal cost. ' an e d irect cost Is got by adding the expedmna crash-.
4.5 Resource Loading In Project Management
- In project management, the constraint Is the Ion est .
pr-oject. Most projects involve ma 8 chain of activities from the sta
defines the effectiveness of th j ny different resources at different tim Thrt of the project until the end
e pro ect. es. e effective f
- A good project management organlza"'' use o these
uon must make ff ·
managers to maxJmlze the use of the reso e ective use of Its limited
urces so that key resou resources. This often puts
rces can be kept .._, __ _
~,. But, the aim of good
~p~:::::=::::::;::::::::~::~~===-=========~~~~
,_
lflanag
ernent is to complete the projects as early
0 when key resources are overloaded or dist
5
as Possible without •
Plan . .
eds
compromising on the deliverables. This can't
t,aPPe . . ratted. Manageme t oft:
rces. Often 1t results mto delayed projects With 1 . h n en commits errors of overloading
resou . . ess t an high quality content.
fact is neither too httle nor too much utlllzati of ·
The our key resources will be used. Schedulln kon resources Is deslrabl e. It 1s ~--- ·f
~m:r r we can somehow predict
wtten B ey resources to complete tasks I adva
owever, key resources are often used many times in n nee sounds like a good Idea.
H I in a task can cause chaos In sudl a co . II a project and frequently shared between projects. Even a small
de av , mp cated and Interrelated schedule.
While it may be possible to estimate the current w kl d
or oa on hand for a spedfic resource at any moment In time it is
d·fficult to be accurate. Examining the world d of k
1 oa ey resources In advance in a general way can yteld leading
indicators for managers to effectively use these resources.
source loading is basically allocati 8 .
_ Re . n resources to the activities at the right time. Project managers with the help of
resource loading can calculate the employees working hours and do the allocation of various tasks. Based on the
th
prediction, e manager can also Predict if he needs to add any empl~ees to the project to complete It on time.
_ The Resource Loading technique looks forward In time for a finite period and estimates the workload of key resources
during that period. It does n?t look at exact work schedules but the general badJoad of work released for the ·
resources.
_ It also assumes there is adequate work in the system to allow the resources to have work most of the time. It does not
look at unique timing situations which may overioad even the best planned schedule.
_ some projects are long and some are short. The Resource Loading examines all the active projects of an orpuization
and takes a simple average of the planned length of the projects. The average is simply the sum tat.al of the planned
length of each project ~i~ded .by the number of•projects. _The Look_Ahead Peri~ will change each time a project ends
or another project starts.
_ The Resource loading examines the all uncompleted tasks remaining in _each active project for look Ahead Period. The
technique looks at .each resource type involved in the active projects and adds the ·estimared ~pleted task
durations required during the Look,. Ahead Period.
- This total task load time for each resource type is.divided by the number of resources of that type and again by the
Look Ahead Period. Th~ key resources are those that have more than a 50% workload.
_ The Resource Loading can quickly identify the Key Resources of the organization. Th~ resources determine the rate
at which projects can be completed. If these resources are more than 100% loaded, the project organization has
overloaded the resources and project p ~ is almost at a standstill.
· loading·at about 75% generates.fast, quality projects and optimizes the: project resoun:es..
- Keeping the key resource
. . . falls.be1o~-75%, the key-resources can
When key resource ut1hzation. a,TI:1.1 an -•c,--
be st ___. d the nnr.:anir.atlon 1s not befntt
''I:>
considered for release. . d project along wit~ the active projects.. Management
Key reso~rce loading is calculated considering ~e ~oseo•ects at some point In the future.and make Informed
. . ct of starting differeri pr l
can compare the different tinpa . . · ·
~~::~~~----------:__
decisions. ______________--:-""_"1•~tt~r~:~·~•
.,.
-
--- ,.111 ca 1••• s
Planning Projects
- b ~ ~ . ~ n,na ·
modifies the project schedule to acco the aitlcal path by entering resource avallabillty, managing
. .• . I ch . . completed after fixing
act1V1t1es. Cntica am 1s f task chains. ·
buffer durations against the remain1ng duration ° ·. tt1
.. • :: -
, 11 . . . . . !.
- If the feeder chains are scheduled to their early schedule dates, early starts, and early finishes, there is a disadva
The disadvantage is that if changes in requirements, risks, or other problems OCOJr in the project. much of the work
the feeder chains will already be done and will have to be ripped out.
- This problem can be at least partially avoided by scheduling the feeder chains more toward their late schedule.
Delaying the schedule of the feeder chains will also let us take advantage of lessons learned on the aitical chain
activities. These can be app.lied to the feeder chain activities. ·
10 85
Stan~devltlon 3 3 4 2 6.2
Fig. 4.7.1 : Feeder Chains and Critical Chains
4.7.2 Constraints In Critical Chain
1r~~::=~:::::::;:;=:::::-;:=::;::~::=::::=-~------~==~~~
u
. heir scheduled time. In other words the sav d ti
11 t1I t ' e me cannot be
'f there are delays over and above the estlrnat....a
PIA,.,.....,. .
pa~ed on to nntsh the project~ On th other
h3r,d, I ~ schedules thes d I e
irt rflO
• . •
st cases, will exponentially increase the pro)- l" ...L
..... .JU1edule.
'
--.au
~a. ., .
e e ays Will most definitely get -......a d
on, an ,
critical Chain Pro)ect Management Proces
4.1.3 s
f:"plolt the Constraint
1
· i·ect management activities earlier were based ·
pro on constraints that sometl del d
·rfle is added to a project Just to get It finished on ti mes aye the Pfolett. So extra ree,-ye
ti u are trying to achieve. Of course you want th me even after delays. So the first step is to let people know wh.lt
yo ' e average time In which an activity be ..a
everything goes well. After you have got all the lnformati can_ com.,,eted to_make 5Urf!
average time, plus a buffer that's between the best and w ont, you can st~rt constructing your aitltal ~ -using the
. ors -case scenarios.
Eliminate Multitasking
z.
Multitasking is th e process of dropping a task before It Is finished to start another and begin vet other It •
removed because you probably cannot do several things at once. Your projects expect 100 percent foe: on~~
iri hand.
Buffers provide information on when and where recovery is needed, a buffer plan can inform you if the buffer-can be
removed. After you cut the estimated time needed by·50%, the remaining time can then be used as a buffer. It acts as
a shock absorber for ~e project. Implementing project buffers with the CCPM process leads to finish~ projects 25%
faster.
' ',.
1_ Top Management
- Top management may include the president of the company, vice-presidents, directors, division managers. the
corporate operating committee, and others. These people direct the strategy and development of the
organization.
- The support of the top management makes It easier to recruit the best staff to carry out the project. and acquire
needed material and resources; also visibility can enhance a project manager's professional standing in the
company.
Some Sugestions in dealing with top management are :
0 Develop In-depth plans and major milestones that must be approved · by top management dwing the
planning and design phases of the project.
0 Ask top management associated with your project for their lnfonnation reporting needs and frequency.
0 Develop astatus reporting methodology to be distributed on a scheduled basis.
0 Keep them informed of project risks and potential impacts at all times.
_
-
your support for the project team a or ··rte
Working dosely with the team to sond i P:ch member will help you get their support and _cooperation.
7 \ -
••• ,u.,,•••
&~~ .
d who can won< with the project
- Normally, the top management decides what the assignment Is an t the neces.sarv resources to
on projects. Keeping your manager Informed will help ensure th at you ge
your project.
d. and supportive boss to go to bat for
- If thing-s go wrong on a project, it Is nice to have an understan mg ft,
O
necessary. Bv supporting your manager, you will find your manager will support you more en.
Suggestions
6. Internal Customers
Internal customers are individuals within the orga · t·
niza 10n who are t. ·
- . •
Internal demands. The customer holds the pow t cus omers f9r projects that meet the
. er o accept or re·ect .
1 your Work. After the pro· ect begins
manager must stay tuned in to the Internal cust .., 1 the
ome, s concerns and issues . ,
a nd keep the customer Informed.
- When project stakeholders do not share·a common culture, project manacement must adapt its organizations and
work processes to cope with cultural differenc;es.
The following are three major aspects of cultural difference that can affect a project :
1. Communications
2. Negotiations
3. Decision making
- Communication is ~aps the most vfsible mantfestatJon of culture. Project managers encounter cultural diffbences
in communication in langua,e, a,ntext, and candour. Languaae Is dearly the 1reatest barrier to communication. When
project stakeholders do not share the same languag~, communication slows down and Is often filtered to share only
information that ls deemed attical. The barrier to communication can Influence project execution where quick and
accurate exchange of ideas and information Is critical. .
- The interpretation of Information reflects the extent that context and candour Influence cultural expressions of Ideas
and d . . rmatf I e cultures an affirmative answer to a question does not always mean yes.
un erstanding of info on. n som ,
The cultural .influence can aeate a>mu;,,On
-1.. ,_, n a pro·'ect where project stakeholders represent more than one rulture.
o ~ ·
__________:________,;._ __,,.-----------:---------.~Te+l~~·~b~· ,,.11 c a1 1eas
.
0 Communication tools and th .
: . me 0 ds, and
o High level project com mun fear .
10n messages
0
.setting d ear ~ectations for h~ and when updates will be shared
increasing visibility of the project and status
0
providing opportunities for feedback to be shared
0
0
aoosting the productivity~ team meetings
0
Ensuring the project continues to align with goals
2. Communication Roles
Communication won't come from j~ one person ~'!ri"i your project. Oearly define all roles and their CDih?5PCJ!Cii•
communication responsibilities. He,:e are a few roles to consider :
- Project Sponsor
• '1 ;·,
Project Manager
Leadership/ Management Team ·
- Steering Team
Project Lead
3. Communication Tools
·
Selection ·· and how a message Is delivered wm vary from project to project. Y0411 peferred
of the tools t ~ use . ·
t
. ha
th
tools should be those which can easily be comprehended by e receiving group. _
-..a....1ns the content of the communication .-.d the method In which It wdl
Always keep your receiver In min~ when d~ · · uestl feedbact
rovlde can provide beneftcfal
be delivered Methods . that offer opportunities for' people to ask q ons or P ·
· · Just a few•
Brainstorming a list of possible tools can get you started. Here _are ..
. , 35 2 ,-
- Meetlng summaries
- Status reports
- Newsletters
Formal presentations
- Surveys
- Internet/ Intranet Web Page
- Informal small group meetings
- Brown bag lunch workshops
- CUstom project dashboards
4. Communication Methods · · nd h Id 1
munication plan can a s ou
There's no single right way to communicate on a project. In fact, your com
variety of communication methods. Here are a few to consider :
- Email
- Meetings (in-person, phone, or video chat)
- Discussion boards
- Collaboration apps
To-do lists
Surveys
~--~-::=~~==~------=--------
RtS
~isk Management In Project
. k is inevitable in a business organlz ti
condition that has ·a positive
fo
or negative eff
can affect your proJect r better or for worse.
•
a ·on when
ct
und
erta
kl
ng
e on a proiect' b,1
·
projects. PMI defines risk as an unoertait
" evewt ot
.! s o 1ectfves. Basically, risk 1s any unexpected ~ that
However, the project manager needs t ,
.,,anagement
,,. in a project. Risk Managoement
ensureIs that risks are kept to a minimal. This can be done by .._.._
the P •-•"• a .._._
,._
roblems that may negatively impact a p ., rocess used by project managers to mfnlmize ¥fY - - . tlal
roJect's timetable. ,..._.,
P
· Risk could be any unexpected event that m11&t•L....._ affect the peopl
project. Unlike issues, which are certain to ha e, processes, technology, and ~ fn'lolved in a
when. secause of this uncertainty, 'project risk ppen, risks ~re events that could occur but you may not be able tD tel
. . . requires sen_ous preparation in order to m them
_ R;sks can be mainly ·dMded between - types, negative . Impact rtsk and ovvitiuo • ....,. ellidently.
manage~ face only negative impact ri-L- th _.-..... impact risk. It is not that project
~ as ere are positive i pact · ks
managers need to come up with a mitigati pl m ns too. Once the risk is identified, project
on an or any other solution to counter attack the risk.
-----------------------------.;~.;;.~
management activities required for the project.
•
T 17 I -C•
,■ 1nc. ■ t1••s
on a project.
(ii) Delphi Technique: This ls a way to gather consensus of experts by seeking their opinions iridependently.
here is to ensure that the experts are not influenced by the decisions of other experts so as to elim_inate
(iii) Interviewing : This involves performing one-on-one Interviews with stakeholders to Identify risks.
(iv) Root cause analysis : This in'!()lves analyzing a problem to determine the underlying causes of the problem
determine if these causes are still project risks that should be dOOJmented.
The major inputs of the qualitative risk analysis process are the identified risks, the project ~nagement
and the scope baseline. Other inputs can indude industry studies and prior information from previous·~
Thi s process involves quantifying the effect of the risks on the overall project objectives. It is not uri
have risks that have effects that carinot be accurately measured and in this case, a i:,roject manager has to
how much time and effort can be spent exploring these risks.
The major inputs to this process include the risk register, the risk management plan, and the cost and
management plans. Other inputs to this process Include external factors in the industry and internal , •
information from prior projects.
0 process : A process is adopted Jn order to Jdentify, analyze, evaluate, and mitigate risks thfOUlhout the project
life cycle. ·
0 Budget : ~ere Is always risk on costing of the project as when the project starts there are bound to be dal9!$ as
the project's proceeds. The method of dealing with such a change neeas to be elaboratl!d in the project risk
management plan. . •
0 Work Breakdown Structure : The strategies involved in the project risk management are to be ~ to
the WBS such ashow and.when needs to be Included In the project risk management plan.
• 1, •
0 . Risk Register: · The frequency of reviewing the·risk ;egister is an Important part in the project risk Miliacem,ent
plan.
0 Roles and Respousibllltles: When the project runs into an Issue with risk attached to it. the plan will let the
project member know about the in-charge of different scenarios.
0 Reporting Structure :'This is the same as with the roles and responslbil~les but briefly elaborates on the repo,tlnc
structure in the situation of encountering a risk and In whose hands ~o the decisions need to lie. ·
0 Risk categories'·: Risk needs to be carefully categorized and slated for proper o,ganization of Information.
There ~re ~ basic steps that need to be followed In order to develop an all encompassl,. a.nd successful ~ risk
• I ' ' ' • • ..
-
4-20
All th e Identified risks are detailed down Into the Risk Register a nd a level Is attached to each ·risl{
These levels are based on the likely occurrence of the risk In the due c.ourse of lhe Project life CYtfe
seriousness.
2.
Analyzing and Evaluating Riska
Once the risks associated to the project are Identified, the next step Is to analyze and evaluab! ~
determine their effect on the successful completion of the project. Risks should be analyzed and
considering the following two criteria: ·
(i) Likelihood
(ii) level of Impact
Project managers are urged to rate each risk listed Into the risk register on the scale of low, moderate; a
likely occurrence rate and low, moderate, and highseriousness of Impact rate. They can create a matrtx
out thl:?se evaluations so as to gain a wholesome idea about the risks and their influence on the project.
a Identifying Risk Trtggers
At this stage, the project manager can determine the roles and responsibilities that each team and the
members take up when faced with a risk scenario. Authoritative power is given to individuals to manage,
settle the budg~ts for ·each risk and they are responsible for coming up with ideas and a plan for those ideas,,
the project manager in tow.
Roles and responsibilities can be distributed based on ·the department, working title, or expertise of
individual or team.
Each team now takes up their risks and brainstorms Into ideas that subdue the threats. These should
preventive rrieasures or continge_ncy plans taken by the team at the start of the project to deaease or ellm
the effects these risks have on the completion of the project.
Opportunities are most often the positive risks in the project and, more so often, these opportunities can in
neutralize the negative risks that we focus on. Project managers should urge the project risk management
through ways of the project risk management pliin to pay dose attention to even the opportunities to
risks.
5. Creating a Plan
The risks are identified, ~e possible solutions or measures are taken into account, what is left to cream
action plan for these. This action plan is the fundamental unit of the project risk management ~ and
project manager owning this plan, they will need to document all the possible solutions to all the d i ~
identified aaoss the project. These plans are basically risk mitigation strategies in ploy to keep the risks at
These risk mitigation strategies will either reduce the chances of the risk being accomplished or wi~I
Impact of the risk at hand. These risk mitigation strategies are born out of the ideas belted out the brai
. session held. There are two types of mitigation strategies. They are as follows :
(i) Preventative : This strategy Is designed In a manner so as to reduce the likelihood of the risk or seri
of the risk way before the risk Is even realized.
(If) Contingency : These are planned actions In the event of the risk being realized. The risks that·are
high~ priority will need to be attended to first by the project manager and their mitigadon plans
be realized before the project starts or as per the action plan. The ris~ with a lower p(iority ~n bl
care of later, but cannot be Ignored or neglected.
Risk Identification
4,11
AS a project manager worldng on a new.project It's necessary for you to carry out a thorough r1sk management anatysfs
~ to ensure that the project is delivered by an agreed deadllne and at an agreed cost. Risk management wffl ensure that
the core functionalities of the project will be delivered and that the design standards will not be compromised.
The risk management process on a project consists of four steps :
1. Risk identification
2. Risk assessment
3. Risk response development, and
4. Risk response control
_ Risk identification is the pro~s of listing potential project risks and their characteristics.The results of riSk
identification are normally documented in a risk register, which includes a list of identified risks along with their
sources, potential risk responses, and risk categories.
_ This information ~ used for risk analysis, which in tum will suppc;rt creating risk responses. Identified risks can also be
represented in a risk breakdown.~cture, a hierarchical structure used to categorize potential project risks by source~
_ Though the-major wortc on risk identi~cation is usually done in the beginning of a project. it's important to remember
that risk identification is an iterative process; new risks can be identified throughout the project life cyde as the.result
of internal or external changes to a project.
- This process involves preparing checkli~ of. potential risks and evaluating the likelihood that those ewerwt:s miaht
happen on the project. Some companies ~~ ind~~ develop risk checkJists based on experience from past projects.
- The checklists can be helpful to th~ project manager and project team in identifying both specific risks on the cheddist
and expanding the thinking of the team. The past experience of the project team. project experience within the
company,.and experts in the Industry can be valuable resources for Identifying potential risk on a project..
Identifying the sources of risk by category is another m~thod for explo~~ potential risk ~ o1 project. Son:'e examples
of categories for potential risks Include ~e following :_ .
'" I •... I• • •· '
o Technical
0 Cost
o Schedule •• I
o Qient ~
° Contractual
o Political
o Environmental
o People
- The result Is a clearer understanding of where risks are most concentrated. This approach helps the P,ofect
Identify known risks, but can be restrictive and less creative In Identifying unknown risks and risks not easily
inside the WBS.
Face-to-face interactions between project managers and the team promise better and
communication. The ~~m must feel comfortable to share and find hidden or elusive risks.
2. Repetition
Information changes and appears as the risk management process proceeds. Keeping Identified risks rurrent a
updated means the system is focused on mitigating the ~ost prevalent Issues.
3. Approach
Certain objectives require distinct approaches to best combat Identification failure. One method is to Identify all
causes, undesirable events, and map their potential impacts. Another is to identify ~ntial performance fund!
the project must enact to be successful then find possible issues with each function or goal.
4. Documentation
Consistent and exhaustive documentation leads to compre hensive and reliable solutions for a specific project
future risk management team's analysis. Most communication is recorded by a project manager and data is
stored, and updated for continued risk prevention.
s. Roots and Symptoms
It is essential in the risk identification phase to find the root causes of a risk instead of mistaking them with
symptoms. A symptom can be confused with the root cause, making· it critical to discoYer the origin of risks
denote what their symptoms are.
6. Project Definition Rating Index (PDRI)
PDRI is a risk assessment tool that helps develop mltfgatlon programs for high-risk areas. It facilitates the ~•s
assessment within the defined project scope, budget, and deadlines. It also provides further detail of lndivid~I
and their magnitude, represented by a score.
7. Event Trees
Comm.only used In reliability studies and probablllstlc risk assessments, event trees represent an event folloWed
factors and faults related to It. The top of the tree Is the event and It Is supported by any condition that ffril'f
that event, helping with likelihood visibility.
Af1Sk r g u track details of the risks portant component of the risk management systffll. A rtsk register Is a
that helps yo f a project. A risk regt t . ~ssoclated with a project and address them u they arise. It rs created during
1001
earlY stages ~ s er s used to Identify, assess, and manage rtsb to acuptable le'fflS through a
1.~e d updating process. ·
·e'llan
,evl
purpose of a Risk Register
4J2,1 .
" k......i
Of .
Tlle purpose a ns '""l!>'ster In project management Is to record the details of all risks that have been identffied afonf
, with their analysis and plans fur how those risks will be addressed.
Risk register identifies risks along With their severtty.'ft also outJlnes the actions and steps to be taken to mltfpte tht!
, risk. The risk regisler da ta base can be viewed by project managers as a management toot for monitoring the rfslc
,nanagement processes within the project. It Is the responsibility of the project manager to ensun! that the risk
register is updated ~enever necessary. The task of updating the risk register Is usually delept.ed to the project
control function.
The list of risks that are identified and recorded in the risk register drives the following risk m a n ~ processes.
perform Qualitative Risk Analysls .
1. • I
1n the Perform Qualitative Analysis process, detaiils are added to the existing list of risks in the risk registe indudfnt
the priority, urgency, categorization of risks, and any other trends that were noticed while perfonnfng this process.
Risks that have been ·managed, avoided, or are no longer relevant can be. removed from the risk register. The-
associated risk actioo plans can also be deleted from the risk register.
In the Perform Quantitative Risk Analysis process, the risk register is updat.ed with t:fle probabifdies assodab!d with
each identified risk and the probability of meeting the cost and time projections. Additionally, risk. priorities are
updated and trends that have been observed are also noted.
.. ....
Qualitative risk analysis is the process of evaluating the potential losses to .a project from a particular risk. It is
using a combination of known information about _the situation, knowledge about the underlying process,
judgment about the information that is not known or well understood. . · .
- A qual~tive ris~-analysis prio~tizes the i~entlfied project ~sks using a pre-defined rating scale. Risks are scored
on their probabrhty or like.lihood of occurnng and the likely impact on project objectives. . . .
- Probability/likelihood is commonly ranked on a zero to one scale (for exam 1 · •· . :.6
.k t rl ) P e, •3 equating to a 30% probal:MlitY 111
ns even occur ng . . . .. .
1. Delphi Technique
This is a form of risk brainstorming. Delphi Technique makes use of expert opinion to identify. analyse and evaluate
risks on an individual and anonymous basis. Each eXi,ert then reviews other expert's risb. and a risk resister Is
produced through continuous review and consensus between the experts. ·
2. SWIFT Analysis
Standing for •structured What-If Technique•, this Is a simplified version of a HAZOP. SWIFT applies a ~ tNm-
based approach In a ~ p environment, where the team Investigates how cha~ from an approved deslan. or
plan, may affect a project through a series of "What If" considerations. This technique is particularly useful In
evaluating the viability of Opportunity Risks.
3· Decision Tree Analysis
Similar to Event Tree Analysis, but without providing a fully quan,ttattve output, Decision Tree ~ s is most often
used to help determine the best course of action wherever there Is uncertainty In the outcome of possible events or
Proposed plans. This Is done by.starting with the Initial proposed dedslon and mapping the different pathways and
outcomes as a result of events occurring from the Initial decision. Once all pathways and outa>mes have been
established, and their respective probabiiltfes evaluated, a course of action may be selected ~ on a combi~tion
~ e most desirable outcomes, associated events and probablltty of success. · .
• 'hen s ,-
•••nc•• ••••
4. Bow-tie Analysts
. •d itifv riskmltigations. Bow•tie Analvsls
This Is one of the most practical techniques available In helpmg I en .
the left all the potentia1 causes of the
looking at a risk event and then projects this In two directions. T0 ' 'bl · Id
e listed It is then poss, e to enttty ~
listed and, to the right, al\ the potential consequences of the event ar · .
mitigations \or bamers) to each of the causes and consequences separately, effectively mitigating both \he
of risk occurrence and the subsequent Impacts, should the risk stlll occur.
- Quantitative Risk Analysis is a project management process that numerically analyzes the effects of identified
the entire project objectives. The benefit of this process Is that It creates information of th e quantitative risb
support the· decision-making of project managers to minimize the uncertainty of the projects.
- This particular project management process ls used on the risks that have been identified and prioritized by
Perform Qualitative Risk Analysis process that can substantially impact the ~mpeting demands of the project.
- Thus, Quantitative Risk Analysis is used to analyze the effects of the risk on the project objectives. It is used
evaluating the aggregate effects of th~ risks that affect the project. It is important to take note that the process
used to provide numerical priority rating to the Individual risks. . ·
- The concept of quantitative risk analysis is of fundamental importance when it comes to the assist the proj
management team or the project management team leader to take the action at the onset or prior to the onset of
project to adequately and appropriately ascertain the approximate level of risk that so may exist in regards to
conduction of the given project and or series of projects.
L Better overall Project Risk Analysis : Individual risks are evaluated in the qualitative risk ~nalysis. But the qua
analysis allows us to evaluate the overall project risk from the individual risks.
2. Better Buslness Dedsions : Business decisions are rarely made with all the information or da~ we desire. For
aitical decisions, quantitative risk analysis provides more objective information and data than the qualitative a
While the quantitative analysis is more objective, it is still an estimate.
3. Better Estimates : It helps in preparing accurate estim.a tes. For example,a project manager estima~ a
duration at eight months with a cost of Rs. 3 million. The project actually took twelve months and cost Rs.
million.The reason for this variation is the fact that the project manager did a Work Breakdown SuuctUre ~ )
estimated the work. However, the project·manager failed to consider the potential impact of the risks lgood and
on the schedule and budget.
Large, complex projects that require Go/No/Go decisions which may occur multiple times in a project.
Projects where upper management wants more detail about the probability of completing the pro,iect on schedule
within budget.
r.1onte carto Analysis : This technique uses ~ptlmlstlc, .most likely, and pesslml.stic estimates to determine the tDbl
'- project cost a nd project compl~on dates. For example, we could estimate the probability of completjn1 a pn,tect at a
cost of RS. 20M. Or what is a tomPi!ny wanted to have an 80% probability of achieving Its cost obtectiws. What is the
cost to achieve 80%?
sensitiVitY Analysis: This technique ls used to determine which r,sks have the greatest Impact on a protect.
s.
fault Tree Analysis (FMEA) : This technlq~e uses the analysis of a structured diagram which Identifies elements ttat
6,
can cause system failure. . ·
---(With Very Low, Low, Medium, High and Very Hlih radnp for probability and. Impact}. A Simple ProbabiUty-fr,,pact
Matril( is given Here for your reference.
.
Impact
Trivial Minor
•II , ' ! '•i.
Very llkely
-
· d· ct f this risk is major, then you look
If a particular risk has a moderate probability and the estimate 1mpa 0
into
respective row and column to identify the risk rating. For a ~oderate probability and major impact, th e rfsk ·
the matrix is "Medium". The col~urs are visual indications of the seriousness of the risks.
- Risks can be prioritized for further quantitative analysis and planning risk responses based on their risk rating.
are ·assigned to risks based on their assessed probability and impact. Evaluation of each risk's importance and ·
for attention is typically conducted using a look-up table or a probability and impact matrix.
- Such a matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or h
priority. Descriptive t~rms o.r numeric values can be used depending on organizational preference.
- Each risk is rated on its probability of occurrence and impact on an objective if it does occur. The organization sh.
determine which combinations of probability and impact result in a classification.of high risk, moderate risk, and
risk. In a blade-and-white matrix, these conditions are denoted using different shades of ~ray.
These risk-rating rules are specified by the organization in advance of the project and included in organ· •
process assets. Risk rating rules can betailored in the Plan Risk Management process to the specific proJect.
The Risk Impact/Probability Chart is based on the principle that a risk has two primary dimensions :
1. Probability
A risk is an event that "may" occur. The probability of it occurring can range anywhere from just above o
just below 100 percent. (Note: It can't be exactly 100 percent, because then it would be a certainty, not·a rblc.
can't be exactly O percent, or it w_ouldn't be a risk.) · · · · ·
2. Impact
A risk, by its very nature, always has a negative impact. However the · f th • . .. •
. . , s11e o e impact vanes·m.tenns of
and impact on health, human hfe, or some other critical factor. ,
The chart allows you to rate potential risks on these two di · · ·
mensions. The probability·that a risk will
represented on one axis of the chart- and the Impact of the risk, If it
•.· . ,._ . •• • •t • • , , .. _ • • . • ,· ' • I,, .. , a. •
0 ccurs, on the other.
- ;The basic form·of the Risk Impact/Probability' c'ha·rt':Is·sho· ·.,: · ··F,: ·,<. ··..
. · ·· . · . wn 1n 1g:-.~1~:2.
I
Low
low - - - - - - - + H i g h
Impact of Rlak
Ag. 4.15.2 : RWt lmpacttProbablllty awt
1')1e comers of the chart have these characteristics :
(ii L0'1f impact/low problblfty : Risks In the bottom left comer are low level, and you can often ignore them-
(ii) L0'1f impact/hf&h.probablllty: Risks in the top left comer are of moderate importance - if these things ~""'.appet_,,....,
you can cope with them and move on. However, yo~ should try to reduce the likelihood that they'll ocxur.
(iii) High Impact/low probablUty : Risks In the bottom right comer are of high Importance tf they do oca,r, but
they're very unllkeJy to happen. For these, however, you should do what you can to reduce the impact they'll
have if they do occur, and you should ~ contingency plans in place just in case they do.
(iv) High Impact/hip probabllty: Risks towards the top right comer are ot critical importance. These are your top
priorities, and are risks that you must pay dose attention to.
Strategies can be made to deal with negative risks. Ideally, you would like to avoid the risk. but in most cases. it is
possible to do that all the time. Thus, you will utilize strategie.s. Some of them are
1. Escalate
- You use the escalate risk response strategy when yo~ identify risk·and find that you cannot manage it on
own because you lack the authority, resources or knowledge required for a response.
. .
- You will contact your project manager or the top management to Inform them about it and ask them to take
responsibility of managing the risk when this kind of situation happens. You won't take any further action
to note it down in the risk register once the top management or PMO accepts your request to take NMl:nniMtll.-
for the risk.
- For example, you know that the government is planning to announce a regulation and it could impact
project negatively if approved. You have no legal advisor and other resources to manage this risk. so you
approach your superiors to handle the risk.
2. Mitigate
- You will try to lesser the impact of the risk In this risk response strategy. You can do so by either trylrW
deaease the probability of the risk happening or the effect of the risk. Th"IS st t d rttyof
.k ra egy ecreases the seve
ns .
For example, you find that a team member may leave for a specific duratl d ri
- h ..-i..rt. -ar
. . on u ngt epeakofyour..,.,".-•nu
1s a negative risk; therefore to minimize the impact of his b • ,.-t1..,
. . a sence, you find another employee with Slrm-
quahfications from your organization and Inform his bo th
ti Thi ss at you may need him for your project .for some
me. s employee may not be as capable as the old employee b t h
--~-------------:------~~=•-=u::e~ca:n:co=ve=r~fo:r~th:e~o:ld~em~p:lovee::·~~
a11tC =;;;
1IIIP" ,11 11 eot1t••
~,,ster
~- 1"' yot.J use this strategy when you lack skllls or resources to manage the risk, or you are too busy to m-anage It.In the
,, t(clnsfer risk respo~ strategy, you transfer the rtsk to a thltd party t.o managf! it. Though tran1ferrtng ~ not
eliminate the risk; tt only shifts th e respooslbillty of managing the risk to the third party.
for e,iarnple, in ~ur project, there Is a task to Install some equipment, and you have litde e,rperfentt wtth this
,, task- The task is complex, and few contractors have successfully Installed It. Therl!fore, you find a con.tractor and
ask them to Install It and sign a fixed prfce contact.
In this way, you have transferred the responsibility of the whole task to a third party, and now it. is their
- resPonsibility to complete the task within the agreed time and cost.
,woid
4. Here, you trY to eliminate the risk or its Impact. You do this by changing your project management plan-, by
changing the project scope, or by changing the schedule.
This is a desired risk response strategy mainly used for critical risks. This is the best technique for at1 risks;
hOwever, it cannot be used most of the time.It is easy to use this strategy if you identify the risk in a W!fY ~
stage; otherwise, it is difficult to adopt this strategy because in a later st.age changing scope or schedule is a
costlY affair.
_ You will have to convince the client or your management to change the scope or schedule to use this stratelY-
You can only utilize the avoid risk response strategy after their approval.
_ for example, you observe ~at during certain periods of your project there is a chance of rain and _you have wortE
planned outdoors at that time. Therefore, to avoid this risk, you move these activities to a few days later to avoid
the impact of rain.
5. Accept
- This risk response strategy can be used with both kinds of risks, i.e., positive risks or negative risks. Here you take
no action to manage the risk except acknowledging it.
- You use this strategy when the risk is not critical, if it is not possible or practical to respond to the risk throuah the
other strategies, or if the importance of the risk does not warrant a response.
- You can accept the risk either by actively acknowledging it or passively acknowledging it. In the active.acceptana!
you keep a separate contingency reserve to manage·the risk, and In passive acceptance, you do nothing except
note down the risk in the risk register.
- For example, you are diging to construct a building, and there Is a risk that you may find artifacts. though the
chances are low. So you note it d~wn and take no action as a response plan may cost you a lot with no guarantee
of finding an object of interest.
4,16 2 Pasitl •
· ve Risk Response Strategies
P<>siti • • •
ha ve nsk ts also known as an opportunity, whldfhas a positive Impact on yourproJect. so you Will always wantitto
PPen Th
not ·. e most desired strategy for opportunity Is •exptolt9 which ensures that the opportunity ls realized, though it ls
lisJt is r .
~nitsown. _____
Possible to .
__;___
.
______________~---
use ttus strategy all the time. Accept Is the least desire~ stratecv where you take no action.and hope the
___;_,____..:.:..
• et:•
T I\•
1llf' •••llc•tt••s
.
2. Enhance ,
50
- In the enhance risk response strategy you tJy to Increase the chance of a risk happening you can realize
• · y
benefits of this risk. In this case, you try to realize the opportunity. ou ca n say that the enhance risk resi:Mlli• I
- For example, let us say your project will be co~pleted in three months. You find out that the government
about to float a similar type of project in two months. Therefore, you can bid for a new project if you
complete your project in two months.This is an opportunity for you.
- Therefore, you tJy to compress the schedule with fast-tracking so that the project can be completed ahead
time and you can have a chance to bid for the new project.In the our following example, you are using
enhance risk response strategy because here; you are trying to realize the opportunity.
3. Exploit
- In the 9ploit risk response strategy, you ensure that the opportunity is realized. Here, you do not try to
the opportunity; you make sure that the opportunity is rea.Jized.
- · For example, let us consider that your project will be completed in three months. You learn that the -,-n•
is about to float a similar type of project in two months. Therefore, you can bid for the. new project if yau
complete your project in two months.
- You have an opportunity here if you complete the project ahead of time, you will get a chance to bid for
. next project.Now you have to ensure-that you realize ttiis opportunity. You take every possible measun
ensure that the project is completed ahead of time so you can bid for the new project. You brins new
oompress·the schedule, do overtime, etc.
4. Accept
- This risk response strategy is common for both type-of risks; I.e., positive risks and negative risks.In the
risk response strategy, you take no action to realize the opportunity. You leave the opportunity as is, and
happens on its own, you will benefit from It. This risk response strategy is used when the cost of the·. ·
high, and there Is less of a chance of It occurring or the benefit does not ou~igh the effort Involved.
- For exam~le, suppose there Is a chance you may g~t some skilled workers from anoth~r ~ject at a lower
you convince them to join you. However, you do not pursue this matter and instead let them decide lllhl!IIIU •
they are intere$led in your pro ect or not. '
0,1
Describe Resource Optimization What
-l
oescribe R~rce Allocation. What are Its h-......_
ua, IUlll3? {R9fw Section. 4.2 8f'ld 4.2.1)
·
o.2 · 818 its benefits? (Refer SeclkN• 4.3 end 4.3.1)
o.3 Describe Networtc Cnwmg. Why is it done? (Refer Section 4A)
st
o.4 Describe the ep by step process of crashing a network. (Refer Sedlorl8 4A and 4.A.1)
Q, 7 Describe Critical Chain Method. Describe its process. (Refer Sectlona 4.7 and 4.7.3)
0.8 What is a Pro;ect Buffer? What ara ils types? (Refer section 4.7A)
Q.9 Describe the aiticaJ chain scheduling method. (Refer Section 4.7.7)
'
a. 10 Write a note on the slakehold8fs in Project. (Refer Secdon 4.8)
a.11 Suggest some of the ways of managing the stakeholders. (Refer Sedb• .u and 4.U)
a.12 What is Project Communication Pfan? Desaibe 1he process of its pmnnlng. (Refw Sectlan 4..1)
Q. 13 Oescnbe Risk Management in Project. (Refer Secllon 4.10)
a.14 Describe in brief the processes of Risk management (Refer Sections 4.10 and 4.10.1)
0. 15 Describe Risk Identification. Identify some of its essentials. (Refer Sedkll• 4.11 and 4.11.2)
0.16 Explain Risk Register. What are fls contents? (Refer Sectlons4.12and4.12.3)
0. 17 Describe Qualitative Risk Management Analysis. Describe any four methods. _(Rlfw s.dlol• 4.13 and 4.1U,
Q. 18 Describe Quanti1ative Risk Ma~gement Analysis. Describe any four melhods. (Relw SactloM 4.14 and 4.14..S)
Q, 19 Describe probability and Impact Matrix. How'dowe use It? Describe. (fWw Secdol•4.15 and4.15.1)
Q. 20 Descobe the steps to prepa,8 a probability an<1 I ~ Matrix. CfWw Sadlon 4.15.2)
a.21 Explain the negative risk ~esponst;strategles. (Aerer Section 4.1 8.1)
----
a·22
.
.
IC!,----n 4.11.2)
Explain the positive risk response strategies. (Rel9rSecdol
000
s.1 Introduction
- The project management monitoring and controlling starts as soon as a ~ro}ect begins. Monitoring and
project work is the process of tracking, reviewing, and regulating the progress in order to meet the pen
objectives. It is a very important part of Project Management.
- Project Work in~olves tracking the actual project performance with the planned project management activities. It
mainly be looked as a Control ~nction that takes place at all stages ?fa project i.e. from Initiation through dosing.
- This process of monitoring and controlling project work is extremely important as it can happen that you are
complete the project on-time, however, have not been able to meet the desired quality levels.
- Similar1y, your project has increased scope, however, have exceeded limits of time and cost. The project manager
balance the requirements of different knowledge areas to control the project through Monitor and Control
wor\. Project Managers create performance measures or use existing organizational performance measures to ·
project performance at regular intervals during the course of the project. Monitoring and controlling project
involve monitoring any other performance measure that the project manager has .created or used for this project.
. Project monitoring is an integral part of the project management. It provides understanding of the pn)iTeSS
prothJect so that appropriate corrective _actions can be taken when the performance de'liates significantly from the
pa .
5.2.1 Characteristics
~
• ~d;ntages
, iJ
r
.
. ct 111on 1t0
ring clarlfles project objectives II
•
ks
n
•
actfvltles and their resources to ot,te~, translates ob;ect-iw!S
ProJe rforman ce indicators and sets targets• rout Ine,,
1u __.-,,.
collects data on these Indicators compan?S 3CtUal re5ulU wn.n
" 1.,,10 pe
and re
parts progress to the management and alerts the management about thf! ' •.--1u
problems which frequo: ..ur
1a,ge!S, ped up during the Implementation of the project.
cts ,roP
g rovides Informatlon to th e management whether the project Is proceeding as per schedule relatM! to the targets or
, 11 p •s time over run In the project Implementation. It also focuses In particular on the efficiency and the use of
re , ' ,
,ne ,es during the project Implementation. It provides support to the management In Its efforts to compl~ the
sour
re ·n time and within the budget.
prDJ
·ect I • . •
·eet monitonng activities take place In parallel with the project execution activities so that, whtle the project woffc tS
, p~J e,cecuted, the project ls being monitored by Implementing the appropriate level of oversight for the purpose af
l)elllg •
·d-waY corrective actions.
1ne rfll
uality monitoring of the project progress encourages t imely decision making, ensures project accountability. and
~ighQ
, ·des a robust foundation for successful completlon of the project.
ro~ .
p . through the continuous monitoring of project performance that the management has an opportunity to learn
II ,s
what is woricing well, what Is lagging behind, and what challenges are arising
abOLIt •
·ect monitoring provides records of activities and results, and signals problems to be remedied along the way. It is
proJ
• ally descriptive in nature and does not explain why a particular problem has arisen, or why a,partfcuJar outtame
norm
hoS oecurred or failed to occur.
_ II
helps the management for the fine-tuning of the implementation activities, reorientatbi of the project
implementation by making appropriate changes in future planning.
_ without effective monitoring it is normally Impossible to judge if work is going in the right direction, whdher p,ucaess
and success can be claimed and how further efforts can be Improved.
. .
5.2.3 Project Monitoring Activities
o The reporting of project status, costs and outputs and other relevant Information, at a summary level, to the
management.
• The format and timing of project monitoring and reporting varies ln each organization and also depends upon such
items as the size, duration, risk and complexity of the project.
Inputs
The inputs to the process of project monitoring and controlling are :
1. Project Management Plan
2. Schedule Forecasts
3. Cost Forecasts
4. Validated Changes
5. Wortc Performance Information
6. Enterprise Environmental Factors (EEF)
7 Organizational Process Assets (OPA)
3. 5c0pe Verification
The scope verification process ensures that project deliverables are formally aa::epted.
4. Scope Control
The Scope Control process ensures that changes to project sa,pe are controlled.
I
5. Schedule Control
The Schedule Control process monitors and controls changes to the project schedule.
6. Cost Control
The Cost Control process monitors and controls msts and changes to the project budiJet.
This process trades team member performance, provides feedbadt, rescwes Jssues and coo. cllutes ~ to
maintain and improve project performance.
9. Perronnance Reporting
The Performance Reporting process coUects and ~lstributes penonnance Information - lndudlrw status ,eports,
~ reports and forecasts.
... ,....,......
* P Pl 7 Ts
Maf1891ng Stakeholdere
10. rks with stakeholders to ensure that requl
This process manages stakeholder communications and wo
satisfied and Issues are proactively resolved.
Purpose
The purpose of information needs analysis technique is to identify and set priorities for the information ~ --
support business activities In order to reach established business goals.
5.4.1 Objectives
- To identify and set priorities for the information needed to support business activities and to reach the business
- To gain further insight into the business structure for subsequent improvement of the information architecture.
- To understand the implications of these priorities for current and planned systems, technical facilities, etc., as
an enterprise engineering project.
To facilitate commitment to the strategy developed to meet re_engineering or other enterprise goals and objectives.
5.4.2 Benefits
There are several benefits to utilizing the information needs analysis technique.
- It enables us to gain further insight into the business structure to support subsequent improvement of the i
architecture.
- It enables an understanding of the implications of established priorities for current and planned systems and t
facilities.
- It fac1itates commitment to the strategies developed to meet enterprise-wide goals and objectiYes.
5A.3 Procedures
- Identify source material and source interviews, focus groups, or questionnaires.
- Review materials and itemize a list of information needs.
- Consolidate needs and develop an Information needs summary diagram.
- Collect additional data, as required, to complete the Information needs summary diagram.
Determine the relative importance of each Information need.
- Confirm results.
- Use as Input Into information architecture development or !~pact assessment.
- -'--- ------:--""'."'"":--=:----=-·
Scanned with CamScanner
5-7 project Executing, Monttortng & bi.__.
Prt)jeCI PAanllgement (MU) ~
j5 ream ava .
liability report example
ed to knoW
what resources you have available to 8tt ......
a&. I It ......
• build an accurate project plan, you ne h team member has on u,e r p a e so YOU ca,, ,,r
If you want to ·t b'llty report shows you how much work eac -'!'II
done, A team ava, a ,
--"'•rdng decisions for your project.
sr,,art,o;--
L Set a cadence : A reporting schedule establishes regular touch points so everyone knows when to expect and perhlps
even provides important project updates. Just be sure you keep the lines of communication open between schedad
reports.
2. Mind your ~ : A report is only as good as the Information 111 It. Check that project details ~ current and a,rred
before sharing reports with dlents and stakeholders.
3. Write to your audience : Olents and executive stakeholders don't need to be bogged down by nitty-grittY prajtd
details. Keep it succinct with bullet points and avoid technical Jargon so It's a friendly read for everyone.
4. Add visuals: A picture is worth a thousand words. Use charts and graphs when possible to make your report easvto
digest.
5. Be honest : If the project is behind schedule or over budget, don't shy away from mentioning It In your report. n,e
sooner an Issue comes to light, the sooner It can be resolved and the more llkely you are to win your dlent's trUSt -.
• ....
u .,.,,..
...
- It indudes Stakeholder Management Plan, Communications Management Plan, Change-los and OrpniDtional Process
Assets. The communications management plan lndudes a documentation of stakeholders needs for communication
requirements.
' Tools and techniques used to Manage Stakeholder Er11agement Include e ~ communication methods such as the
use of email tf pd-- thffll•oh the Intranet. war rooms, amons others. Project manaser uses
, mee ngs, process u .,~ •--
effective interpersonal skills including actiYe llstenln& building trust, resolving conflict and overa>ml"I resi51ance to
~ .•'
T PS 7 I.
• t••Uc1lleas
- AProject Tea~ i~ an organi~ed group of people who are involved in performing shared/individual tasks of the projed
as well as achieving shared/individual goals and objectives for the purpo ·f • • ___,,,nnr
its results. se O accomplishing the project and J"""..-..
2. Perfc,nnance Tracking .
ber He should be aware of which tasq
The project manager needs to track performance of each team mem · ._
f rf nee The team member should be ...._
done by which team member, the status and level o pe orma · '""'·
appropriate feedback. If the resource Is doing well, appreclatin~ _In front of other team members boasts a,.
morale an~ inspires others to do well.
- If the team member has achieved a major breakthrough, an award or and an appreciation mail keeping Seita,
management informed.will also motivate the team member. Performance reports that measure the Pl'08n!lrd
team members using time, cost and quality parameters should. ~e generated regularly. This will help ~
performance over the course of the project.
4. Training
- Training is a useful motivational tool. Appropriate training needs must be identified for resources and ~ •
per organization's criteria. Training in new skill sets, new technologies act as a canot to motivate e~ployeestD
give their best performance.
- It helps in talent management. Team members· ~ho show potertial leadership skills can be given -trainlllkl
leadership courses. Employees with high technical skills can be sent to technical trainings and wortcsh,ops GIi
architecture and design so that they can ~ groomed to take on the next level challenges. ·
5. Conflict Resolution
- Each individual is d!fferent and there can be issues and conflicts between team members. It~ not " ~ f c ,
team members to be the best of frien~s but they should work towards achieving project objectives. and act as..
part of one team. Project managers should anticipate conflicts ·and disagreements beforehand and take·stePS to
avoid issues.
proJect Communication
8
,, ~munication is a aitlcal com ·
1/,euent comr ponent of project success. In fact. according to th~ Project M a n ~
, £~ ·cute (PMI), most project failures are due to c:ommunlcatfon problem,. Profttt c:ommunlcatlon ~
1nstt that does not happen. •
ensures . .
nsistS of three processes that help make sure the right messages are sent, re~d, and understood by the "8ht
11 cO • d d d
ople. lhe processes '" u e In this area have changed over the years, but In the current venlon, there are three
r'.rnarY project communication management processes.
pfl
'(llese are: .
plan communications Management
1,
Manage Commu~ications
2-
Monitor Communications
3.
p1an Project Comm~nicatlons Management
5t1
llle first step is to plan how you will manage communications on your project and across all of ygur stakeholders. ~
• . done by creating a project communications management plan.
5 .
it's important to ensure the following factors are addressed in your plan :
(i) Audience : This is a list of all stakeholders affected by the project. It should indude team membe s, spoc ~
customers, and ·other interested parties. Consider ~ryone impacted by the project or who inffuences its
success.
(ii) Objective : Identify the objectives of your communications. You may use some communkations far awaa e,ess.
like a status report, and others that require action, such as requiring a sponsor to aulharize spending. or a
customer to approve project testing.
(iii) Message : Decide and create message for each type of communication. This is the act1Jal content that will be
shared. Key components to be communicated indude scope, schedule, budget. objectives. risks. and deliverables..
(iv) Channel : Choose the right channel through which the message will be delivered.• WiU it be. a formal report.
emailed out? An informal verbal debrief during a team meeting ?
- Your communication plan should be detailed enough to lay out exactly what will be ~ to whom, how, when. and
who is responsible. Involving your stakeholders in the aeation of this plan is.important. You need to ~ their
communication preferences and expectatl<>!15•
been a~ted and approved, It's the project manager's Job to ensure It's rnanaiged well. This means
Once the plan has
~ .
th
t e plan needs to be reviewed and updated on a regular basis to reflect any cha~es to the project or its mbhokle,s.
Theproject manager also has to manage the execution of the communication management plan. .
This indudes :·
...,..,,,....,
team member should know what needs to be done before they get started on their task. __.-:-
"",,_,
.._,
·1th camScanner
scanned W
,cal s J you say you
i,c nicat1on In pro ect management-don't ov are going to deliver. And remember th
~ r11rfltl erprom1se1 • e cardinal rute of
, ,o hef1 r,eeded : Just like most things I llf
~
,Adl"st : ith your team to adjust on the fly ....Ln e, a project Probably Won't go like you pla
~
,,est ... ""'" needed .
11 _
n. DIC
n-,
c,uu e enough and
..,rflunlcallon Methoc:ta
CO••·
9.6
~- he organlzatlonal and geosraphlcal div
Given 1' 10n Today's enhanced technoloav all erslty of project teams - It Is Important to consfder all methods of
1111
jc,J • DF OWs us to co I
r11 • ation strategy should be con~lved at th mmun cate easily wherever the team members may •e. A
1,o111r1111ri 1
' e project plannlns stages, so key Is Its Influence on the sucuss or the
·&·
f' ,,1cat1on methods can either be active or n.••tv .
~u ~ ~
Co Ecommunication methods being th ·
~CflV ose used to communicate In the here and now, fOf example the use of:
~ face to Face meetings
_ Video conference, meeting - one on one, or group
Telephone conference, or voice only web conference
_ Webinars, becoming lnaeaslngty popular for the delivery of presentation based activities
Telephone-good old fashioned call
stand up presentations In person
i pASSIVE communication methods would be those which recipients can adopt in their own time, for example:
Pod cast
_ Web cast
_ fma il
Intranet bulletin boards
Biogs
Website
- Project newsletter-paper based
- Table top presentation
Always ensure that a ml~ of actJve and passive methods of communicatio~ Is used to compliment each other. This
should be considered as part of the overall project management communication strategy.
~ Project Meeting
· Project meetings refer to an effective method to distribute information and communicate wi~ the team and
stakeholders.
• AProject Meeting is a resular event that Involves everyone, who shares or Is interested in the project. in
communicating with other participants and stakeholders by discussing Issues, making proposals. approving or rejecting
offers, for the purpose of generating group dedslons that contribute to quicker project delivery, accordina to the
Planned goals and expected results.
~
~rse of the project implementation process. Regular (dally, weekly, monthly) meetings are scheduled and itemized
therr......
~ munfcation management plan. •
·
' . .w, • -
7 0
r•••tc•lf••s
(ffi) Keep Documents Organized : You need to make the meeting documents as short as possible. Wrth the - ~
paper to hold the meeting. you are likely to fail because they can de-motivate and mislead your team and ~a
mess. It is better to keep 1 or 2 sheets of paper to maintain the meeting. ·
[IV) Invite the Right People : Membe~ of the project team are obviously the major attendees of project ffla""31 z
meeting. However, from time to time meetings also require some seniors.
(v) Create an Appropriate and Comfortable Physical Environment : Project meeting should be conductal aa
comfortable and well-ventilated room, especially if it's summer time. Give your participants ice cold wab!r. 11s,
coffee or/and some non-alcoholic beverages that make your listeners feel more ~mfortable.
(¥11 Start a~ Ftnish the Meeting on Time : People do not like if an event goes out of schedule, and pro~ lhmis
no.any~tung more frustrating than late meetings. You should make sure every attendee is aware of the start and
finish time. ·
L ~dcoff: It presents the project goals, Introduce the participants, and decide ~n certain logistical uestior the-ti
time a team gets together, the project spansor usually speaks to them and generates e~th • . q 1S;
2. Pia ni It d • us1asm.
n ng : evelops the project plan; assign rol d . .
carried out. es an responslb1llties; ~ake decisions about how the project wl be
7_ Start and end on time : If someone is fate for a meetin& begin without him or her. Don't punish the ~ wfto mme
on time.
l Record brainstorming Items or other Important information on a flip mart to keep ideas In front of peopie and ID
stimulate discussion. Transaibe these notes as part o! the minutes ~s necessary.
. tum : This helps keep the disaJssions orderfy and ensures that weryooe•s Ideas ill'e
!. Ask each person to speak fn .
heard.
lO. Keep the gr~up focused on the purpose, objectives, and agenda.
IL Recap the meeting : At the end of the meetin& review the decisions, accomplishments. and action plan ID make s..-e
every decision will be carried out by a particular person within a particular tlmeframe.
l2. Provide meeting documentation to participants as soon as possible after the meettn,.
Meeung Documentation
d Taking the minutes at the meetings of the project team often falls to the administrative pn,fesskJnal ~
R~ntation should-be brief and to the point. In most cases there Is no need to keep details of all of the d1samions..
tord the d ..
actM . eos,ons that the group makes and an action plan of what will be done by whom, aod when and how these
tieswin b ,
in111 d. e measured. If the group generates a 11st of Ideas, record them for future reference. Om.date the document
e lately Ad . .
~ new tasks to_t~e master plan.
. . .,. in t I~
,011011.!.
money. Both, schedule and cost are calculated on the basis of EVA.
. h I lied Earned Value. In this technlno..
_ Project control takes place against the cost baseline using a tee n que ca , __, ""'-
. ks and several more variables are cai....1........
variables are determined from actual progre.ss on the proJect tas , · - ~ "-'
them, and reported.
- Provides an 'Ear1y Warning' signal for prompt corrective action. The types of signals can be the following:
(i) Bad news : Holding on to the bad news does not help. The project manager needs to take an immediate acliil.
(ii) Still time to recover : In case, the project is not going as per schedule and may get delayed, the situadal a
needed to be taken care of by finding out _the reason.s that are causing delay and taking the required comdllt
action.
(iii) Provides timely request for additional funds. While there is time to recover, the need for additional rm,rG!Sci
funds can be escalated with an early warning.
o It allows 'rolling up' the progress of many tasks Into an overall project status.
o It provides with a uniform unit of measure (dollars or work-hours} for the progress.
There are three inputs to the Earned Value method. Each of these variables must be obtained from each task's_
progress:
1. Planned Value (PV) is the planned expenditure of funds to the date of analysis, taken from the project $chedUle- ~
example, if a task is antldpated to last from January 1 to January 10 and today is January s, PV = SQ% of taSkt,udglt
5_10.2(c) Analysis
calculations give the following meaning ·
_ Apositive CV means the project is under budget (positive= good).Negative means aver budget. The CPf Ids JOU how
much above or below the budget-it is, in percentage terms, for example, CPI = US ~ the project is 255 below
budget.
• Apositive SV means the project is ahead of schedule (again, positive = good). Negative means behind schedule. The
SPI tells you how much ahead or behind schedule t!Je project is, in percentage teffl1S, f o r ~ 5PI = 0.9 means the
project is 10% behind schedule.
The variables tell you where the project Is right now or at the point of analysis. This I s ~ useful for decision
ling. The following three metrics tell where the project was trending.
1 .
Estimate at Completfon (EAC) : This fs the estimated final cost of the project. There a r e ~ ways to calculate tNs.
based on the assumptions that are made.
- If Past project performance is expected to continue :
RAC = BAC/CPI
- If
Past project performance is consldered one-ti~, and future performance will ~ ~ to t h e ~ rate :
~ = AC+BAC-EV
ETC = EAC-AC
3. To Complete Performance Index {TCPI) : This value tells you how efficient you need to be to complete the
according to the original plan. For example, If you were inefficient at.CPI = 0.9 thro~g~out the first ~rter ~
project. a TCPI = 1.03 means you have to pick it up and be 3% more effiae~t than the onginal plan to _finish on~
TCPI = (BAC-EV)/(EAC-AC)
- These forecasts could be used to update financial metrics such as Net Present Value (NPV), payback Pl!l1lit. "°
Return on Investment (ROI) whi ch were used to justify the project.
- A project lasts for a fixed period of time which could be a few weeks to several years. In some cases, f o r ~
construction projects or public works, they are run for decades. To track progress along the way and e~1helly
deliverables are being achieved according to the timeline, project managers use Milestones:
- A Milestone in a project signifies a change or stage in development. Milestones are powerful components in .._
management because they show key events and map forward movement as per your project plan.
- M ilestones act a.s signposts throughout the project life cycle ensuring that the project stay on track. Without pnta
milestone tradting, you are just monitoring tasks and not necessarily following the right path in your project:
- Milestones can do more than just showing progress. They can help you communicate about what's happenlnc 11111
your project.
(v) Other fixed points in time that need calling out specifically
l on of Project MIiestones
S.11.3 Effective utillzat_
I
Allhough milestones can be useful In keeping a project on track and keeplna employees motfv.lted, project manaprs
111Ust know how to use them to m~ke sure they are effective. Here are some thlnp to keep In mlnd when ( m ~ n s
2. Timing : While it Is Important not to present milestones too frequently, It Is also Important not tu SPiCe them too ~r
apart • Th"rs will cause your staff 'to lose momentum and motivation. Ideally, try to space milestones so they l.iind
approximately two weeks from each other.
l, Virs,"bility. p
d . mana1ers should be sure that their team Is aware of each milestone by dlstributfns the necess.1,y
• roJect
etarls to · h
~ a c team member and keep them displayed prominently In the workplace.
• ,-=er : .-
.... , •...1.
Key delivertes
- Qient and stakeholder approvals
t meetings and presentations
- lmportan timeline
Kev dates or outages that may impact your
1• Monitor deadlines .
.
a list of deadlines. me
""'- best way to make them ~ k
. Ice the
- No plan is ever complete ~out d deliverables technique.· It is. benefiaal to ma
to use the project management milestones an .
project milestones. . lled out a diamond in project plans.
M"1lestones are great for this purpose because they are ca resent the a - - - ;
- • •ect milestone, be sure to P m--.•
While you should list the tasks and effort leading up to a proJ. of the deliverable. .
the end of those tasks to signify a delivery, or even a presentation ,
- ·A change request is a proposal to alter a product or system, often brought up by the dlent or another team ,nembef.
During a project, this can happen when a client wants to change or alter the agreed upon deliverables.
- During a project, a change request can often be met with dread. But the fact Is, they are a reality in the business wortcf
and often, change requests are submitted for legitimate reasons. In our constantly changing business envm,nrnent. ll
Is impossible for anyone to really know exactfy what they will need to achieve their objectives at the ~rt of a proJed,
- So the best way to handle change Is by managing it rather than avoiding it. Although teams should resist un~ecessaiY
chang_es, _It is important to stay open to new opportunities that could bring more value to the projed and ~
organization.
..... ...
,...........
- Have that person articulate his request for the change and the antidpated benefit of the m..,.e request is. This
will help your team determine whether or not the change request is worth the t!ffort..
!
2. Determine whether the change request Is In Inside or outside the scope
t
Il
- chooses tD implement this
It is a good idea to consider what the scope of the change request Is. ff your tNffl I
change, what new requirements will thl.s put on the project? You should consider~ aspecU of the pn:Jject that
will be impacted by implemenUng this change request.
,J
If the reque~t is outside of the scope, a lot of problems might end up popping up such as acing CM!f'-budpt «
-
I
having to waste too much time on the project.
3· Assess the priority of the change request
l
I
- Before your team Implements any changes to the project you should consider MY pcmlbie risks. What Is the
expected benefit of the charige being proposed? Is this change request the result of an Ktua1 need to respond to
a change in the martcetplace or would It simply be nice to have1
- You can consid~r the opinion of the person who proposed the change request. but at the same time, use
common sense. The dient might not know what's In their own best Interests. Have dNlfy defined auidelmes for
~ uating the urgency as there may be varying opinions amongst team members.
T ti S V
• ,,auc•tt•••
P _._. the change ~uest d understand the impact it will have on the~
4.
1'1'P'°"9 Of • ~ ·knoW hoW Important the change req uest Is an ~~
Decide on a course of action going forward ·11 need to be updated. Th\s can lnductt ._
5. ro}ect deliverables w1
th . --
If the change request is approved then e p ·rements documents.
d nts and the requ, .
and schedules, business process ocume ' can communicate the new course of ~ 111
theSe updates have been made, the project managerh cessarv tasks to the people in C-.
- Once delegate t e ne · CII
everyone who will be impacted. Now you can .
implementing these new changes.
0
Does this change require an inaease in funding?
0
Does enacting this change now make more sense than delaying it? Will the delay end up costing the. CDffllalt
more money In the end?
o Have all the affected stakeholders been considered, and do they endorse the change?
o Are there contractual ramifications to consider? For example, will commitments with outside ~ be
unfutfilled because of this change?
- The answer to these questions will hetp approve or reject the change request with complete certainty.
- Scope aeep Is a situatlon when a project stretches far beyond iu original vision and deadline. Scope ~p is one ti
the biggest causes of project failure. It usually starts with a small change request, iust a minor readjust;ment of die
project scope which ls followed by one more request then another and another.
- Before you know the small change turns the prolect into a different shape altogether. Instead of five delivefableS. you
now have 15. But the budget and the deadline are the same.
- So, SC0pe creep refers to small, continuous requests that stretch the project beyond its originally defined scape. Sint!
these change requests are often small, they tend to "aeep• up on the scope. Hence the term used
is •scope tree(_:-.
..
•wJd- ·.,....
• ••'"'
·th CamScanner
scanne d w,
r
·eC! M80898ment (MU)
5-24
. 5
~ e s of Scope Creep
N°' i,a•·bles later on. ... , wvugrn Into the se:ope ,._~
, ,,..,.,. lW't! hlr4!1y ta ~ thffl' mind and tt\t!.
l· delivfra
111volving the dlent throuahc,ut: Gone are the days where do
Not this period to your dlent for fe V'OU a motlth or two of wmt and thl!n sr..nd ttw! final
~ estJlts of . . . edbad(. This results In surpt1~. with flnalfzed won h~"I to b!! ~ . and
r the proJect t1mehne and budaet.
if1'lpactS
. ·ng issues proactlvely : Hiding behl d I
rJot ra1s1 n ssues and not being transparent with' me dtent' or ~ .~
,. . at first, but you will come to rearet It later on
easier . •
aA needing more time ~an estimated : The age-old Issue of Quality Assurance estimation RM!S' trouble:. How
~ ctJrately you estimate how many bugs will be raised, ~ long they will take to fix always has an lmpatt.
ac
Not prioritizing amon~ features : In a Waterfall-style project, your product wtll likely be built ~ until
i, tJ reach the whole, shiny, new thing. This could lead to thinking everything Is a priority. If you don't•ha@' dea,-
yo
pri
·orities among
.
features, it's hard to understand what can be removed when adjustments to requi1eme11ts ~ to
surface.
Not agreeing on how to handie change : If you haven't agreed on how to handle change at the tJea1minf of~ profect.
J. it only makes sense that it's going to be difficult to work through changes in scope at a later date.
s. poor Estimation : Estimation is very difficult to get right. It's a challenge to be actUrate at the beginnina of a proied.
when there are many unknowns. Certain things may not get accounted for, and you end up tied to this ema·sr:ope to
be able to deliver your overall project.
. '
9. Not evaluating new requests: It's easy to take on new requests or ideas from clients or team members. befieW11 that
they are the right path forward. If you don't evaluate these requests property you could end up ~tir• new sms-.
duplicating work or building unnecessary features without noticing.
10. Not involving users early enough : Many projects go to the final stages before actually putting it in front of r&I users.
It's tempting to fool ou~elves thinking ~at we know the users well enough to avoid interacting with them. If you are
not incorporating user feedback early on, you can go far down a route that doesn't test well with users. At that pctnt.
your scope can suddenly spiral.
3. Be transparent. As soon as scope aeep appears, brf n1 It up with clients and mkeholders.
4
both positive and nesatlve) of chances. and present solutions to yow clent or
· Analyze impacts. Work out the Impacts (_
stakeholder in order to move fo~rd.
s. Ernbrace it Work out what's necessary for a testable, usable product-If that muns chanalnc scope. look.at ways to
incor
Porate the changes.
I •
. .
Scanned with CamScanner
projec! Executing, Monilortno & ~
5-25
!. pro~ Management (MU)
parts of work is crucial for delivering a quality product on time. Make sure you have a justification for saying no.
- Project Audit is a project evaluation technique designed to determine ,he true status of work performed on a proied
and its conformance with the project statement of work, includihg schedule and budget constraints.
- It is an Independent and structured assessment of the state of affairs conducted by a competent examiner. 8f
inference or extrapolation, it provides insight into the work needed to meet project objectives and the adequacy ofthe
schedule and budget to do so. In addition, it can illuminate mistakes that can cause project failure and thus can trfaer
timely corrective action.
- A project audit is a project of its own, and as such, no one ·site fits all. It takes an experienced and knowl~
project manager to conduct an audit from beginning to end, and to adapt it according to the environment.
Project audits can help identify when a project is about to go off-course. In addition, a ~roject audit can provide the
following benefits :
1· Improve project performance.
2· Increase customer and stakeholder sati~actlon.
YS"' '°"':p••e
1sco
and avoid scope creep.
r co,,t'0 rlY problem diagnostics.
·deea
J. p,ov1 rforrnance/cost/schedule relationships.
~ ·r; pe
oafl -ff {l.lture opportunities ~r Improvement.
~ 1oe11 t1
""rtorrnance of the project team.
1· 111ater
~ Ef<1 dient of project status/prospects_
\I
,,fort1' ,,,, feasibility of/commitment to project. j
~ ,011fii•··
i ~e fits of project audits become espe Ill t
! belle . . c a Yevident In large organizations runnln1 larRe projects. MuttknBllon i
file an easily derail due to Poor
,ojects c management techniques c.auslng the Investors rm11ions of dollars. In this !
/Pr ~ the cost of not performing periodic project audits can be much higher than the cost of performing it. Multiple i
II
~~::~,haps one per phase, are recommended for large projects.
l,
~ preparing for the ~Ject Audit
~~ . .
llle aim is to e~sure_ th at ~h~ audit team ~ives full and uninterrupted access to all required information,~ and
.
. during their audit. This indudes emails, and documents developed by the project team. Having everything at your
~ makes it easy to answer questions when they arise.
#1pS .
When you conduct an audit, determine whether the PM has addressed the key items in each phase M the project
_1 This includes : ·
~1'\ve· I'
Initiation Phase tt
1.
l
_ identify the main objective of the project.
Write the project charter.
_ Get sign-off on the project charter.
2, Planning Phase
After you complete reviewing the Initiation Phase, review the actual project plan or Wort Brealcdown Structure (WBS).
You should focus on how well defined the WBS is and how well ~ and dependencies have been scheduied. Make,
sure the planning is sound. Failing to plan is planning.to fail.
- Create a Project Management Plan.
- Establish project deliverables.
- Write a scope statement.
- Determine a project budget.
- Distinguish project activities:
- Work out a schedule.
- Determine special skills needed to complete planned tasks.
t Execution Phase
Once the planning phase has been reviewed, the execution phase review takes place. Many projects suffer from sa,pe
~ee Pdunng
·
this phase. Has the project team stuck· to their scope? Poor communication, misunderstandings and lade
Ofinforrn . •
~ •on may have caused issues.
MS I Py
• P ■ Ul c 1Ueas
4. controlllng Pha58
Measure performance against the plan.
Evaluate the corrective measures.
_ Manage change requests.
5. Closing Phase ch t closing phase. Has the project been doc:umenflal llld
st Of th
e work of the project is done, we approa o
Once mo
dosed property ?
0
Manage aa:eptance of project deliverables.
0
Document lessons learned during the project.
0 Archive project records.
0
Formalize the dosing of the project.
o Release project resources.
-
o Write final Status Report.
In general, you must try to understand all the processes. How well suited is the methodology to this particular IRIIIU
Are all the processes required in place? Did they miss anything from the methodology that should be there 1
I
5.14.3 Phases of Project Audit
~~velop the questions so that they help to lde11tlfv the major project su~s; the major project issUes, concerns
d challenges'. how the team worked together; how vendors were managed; how reporting and meetin&S -
handled; how nsk and change was managed, etc.
0
Risk Logs
0
Issue Logs
0
change Logs
• Review the Project Plan to determine how the Vendor Plan has be.en inc~rporated into the overarl project plan.
• Interview selected Stakeholders to Identify and determine what their expectations of the project had been and to
identify to what extent their expectations have been met.
_ Review the Project Quality Management and the Product Quality Management to identify the issues, concerns and
challenges in the overall management of the project and to identify the opportunities that can be, realized through
improvements to the attention of project and product quality.
- Identify the Lessons Learned that can improve the performance of other future projects within the organization.
0
Primary Procurement
o Secondary Procurement
-' .
~ electronic lra"5ml
'f!r.'M~~ purctiaslng department
r6 needeci !or a butlneti
..,
. .. ~ .' ....
atlofl of the invoi'ce ·
~i~tled: The ven.dor i
~-1.....~~.. • . ~ 7 .. ..
- ~ -~r .. .,~~ ;_,,.,.,.
1
5.31
I5 for dire .
be,:s
ct consumption, i.e., it 'Will
.
_, project Msna~men
(MU
-ptlon : When the pro sumptlon purpose. To order a material
curement . for c ,Ill...
d consu.. , ~
"I/"_
rement for D1re houfd speclfy the con '
procu d the user s ystem,
as It Is receive ' d within the s
as soon h ea master recor
the material mav av .
al Procurement I Procurement . .
fdernal and Intern f E tern al vs rnterna . from external vendors. There art"'
2. the difference o x d or services ...,et
followlng points show f rocurlng goo s . g component of the TT system.
The t . It Is the process o P b the purchastn
Erternal procoremen . t generally supported y e ordered irregularly. . .
of external procuremen Ices that ar
basic forms lfy used for material and serv d . For materials that are being- Oht..... ..
time orders are genera f lease or ers . . -l!f
(I) one· . with the subsequent Issue o re . h the vendor (seller) for pricing o r ~ ,
(fl) Longer-term contracts negotiate deaf wit
regularly and In large quantities, we can J pecify the validity date.
rd then In a contract. In a contract you a sos J • If a material is ordered on an everyday t....
reco I
schedu es . 9lllll
Internal Procurement is process o ge . em with separate Balance, Profit & Loss Stat1!fnents1o,
these companies maintains a complete bookkeeping syst .
that when trade occurs between them it wiff be recorded.
secondary Procurement is the stocks that are managed differently as these stocks ~o not bel~ng .to the tontpaay.
They are kept at some particular location. Secondary procurement is divided into the following categories ·
1. Consignment stocks : Consignment stocks are those materials that•are available at the store premjses but it.SIi
belongs to the vendor. ff you utilize the material from consignment stocks you have to pay to the vendor.
2. Third-party processing :In third-party processing, a company passes on a sales order to the associate external VeTICb
who sends the goods directly to the customer. The sales order is not processed by the company, but by the,vendo,,
Third-party items can be entered in purchase requisitions, purchase orders, and sales orders.
3. Pipeline handling : In pipeline handling, the company need not order or store the material involved. It is obtaioable1S.
and when required via a pipeline (for example, oil or water), or another style of cable (such as electricity~ 1he
material that is consumed Is settled with the vendor on a regular basis.
4
• Returnable Transport Goods: The Company orders goods from a vendor. The goods are delivered with red
~ansport packaging (pa/lets, containers) that belongs
return ,t to the company. .
to the vendor and Is stored at the customer premises until tho!
s. ::b;t•ctln1: The vendor or the subcontractor receives components from the ordering party with the help Ii
'' t produces a product. The product Is ordered b
required by the vendor to m 8 t h y your company th rough a purchase order. The components
anu,ac ure t e ordered product are 11st d I h . .....
subcontractor. n t e purchase order and provided to u~
.e
6. Stock t sfi . .
ran er using stock transport order : Goods are ro . .
good~ Internally from another I t ( . p cured and supplied Within a company. One plant orders the
P h . - Pa.I) receiving plant/Issuing plant) Th . ,• f
urc5 ase
0
order1 the stock transport d Y • e goods are proc~red With a.special typ~. o.
tran or er. ou WIii be able to requ t d . ck'
· P rt 9rder, es an monitor the transfer of goods .with a sto
~ I
nv projects and lnfrastruct
E11erY a from software c ure Works are 1Jndtttaken
,,. es ranging , onstructlon, telecom a<rcns the world. These pr-oJt!(.t! are of dlffl!T~
rYPd vendor/seller/supplier In common. , to scientific, and oll & 9a~. Every proJl!d ha, ,;ta~hold'!O/dl~ts
an
t,er words, every project Is lnltfated b
111 ot J Yan organization with th h
,,. rement. In pro ect procurement mana e elp of suppllers for the various Me~ of thl!
,ocu sement, these twO 1
P h agreement between the two Is c II d h part es are senerally termed as 'boyer.' a"d the ' ~le,'
a11d t e · a e t e #contract."
cts are an essential part of procure
contra ment management It t I
,,. contracts are necessary for project . crea es a egal binding betwttn the buyt!f and the
5eUer. ,:nanagement as they provide relief on either side
. rTlanaging the risks Involved In procur ·
,,. 11 is "bilities in completion of the j ements. A contract Is required to share and bear the individuar"s
,esponsr pro ect. This Is more so In larger and complex profects.
contract Manager
5,16,1
The contract Project Manager plays a very critical role Project Contracting. He/she manages contracts throughout the
·ects and their life cycle. On ~any occasions, he also plays the role of a llaonlng person between t'-- eotrrpa. •
~ . . . I~ I~
ernplovees, venddorsT , hcustomers. He creates the contract's repository and is solely responsible for maintaining all the
cot1tractual recor, s. e company uses these records for their projects, which finally become part of Record ~agement.
p0nsibilitles
~~5 .
oraft, develop, negotiate and execute the contract.
_ Create policies and procedures to the contract and ensure the effectiveness.
o t /on of procurement
o Loca . I ontractors t .
0
AVallablllty o f suppllers c J ct undertaken. The fo lowtng •re~
.
Local govemrne reg
ulatfons f ntract sulta bl e for the pro e .
'"'-
'I'\
o di the type o co
These guidelines assist in decl ngp o}ect Management.
of contra cts generally followed In r
The prices of the gdbdS and services a~e set and are never subjected to change unless the scope i s ~
and agreed mutually. This type is favorable mostly to the buying organizations. Because theextentof~
the goods remains vnchanged .and r.ecurri'ng buying happens.
{ii) Find Ji.rice Jncentrve Fee .(.FPJF)
The price ceiling is set, and the.seller needs to perform and fulfill the contract requirements ~ithtn thatpricz.
Art the costs above the price-ceiling are the responsibinty of the seller. This type gives both the buyer andtht
seller some flexibility for performance with technical incentives'. The incentives are tied to achleving_
agrttd
upon metrics such as cost, schedule and technical expertise of the seller.
(iii) Ffxed Price with Economic Price Adjustments (F PEPA)
It is suitable when the contracts are executed In different countries and payments are made in a diffett?t
currency. Also, if the seller's work lasts for a few years (3-5 years eneraliy) this contract Is fitting. Thls
8
contract gives an option to make adjustments In the predefined final payment as agreed to in the contract
due to changed conditions·such as Inflation rates . ·
2
· Cost Reimbursable Contracts
' . '
atlhis
ongtype
withofacontract
pre-defiinvolves
d f cost reimbursement for lhe costs Incurred during· ~ompletlon of the contractual ·Jof1, It IS
-- cha~ge d ~ . me ee
. . the. co'!tr~ct representing seller proflt. It Is recomtnended If the scope·of ·1h1> work Is·
Period. . ~~
3· flliS a hybrid type of contra~ combining the features of Fixed as well as Cost Reim~ contracts. This is ofte-n
used when contractual requirements (scope) is not known/ prescribed. Also, this type of contract is suitabte for
,quisition/hiring of experts, project staff required (or a particular period.
a •
I
• project at hand requires skills that are beyond the capabilities of a business's_current employee,.
_ project outsourcing has been proven to improve core· business competency ·and helps compa11ies.art bad: on c:apitaf
expenditures, since the tools needed to accomplish the proj ect are already provided as oppose to porchasing new
ones.
_ Hence, if you are a business owner and you would like to optimize the productivity of your enterprise without f
expending too much, the project outsourcing services can definitely help you occ.ompfish sum goal. t
A
- Process outsourcing by lrnfustries around the world has seen considerable growth from duriRg wt few decades. It
started with busine_
ss process outsourcing and now has reached to knowledge process outsourcing.
- Surprisingly, outsoorclng of project management sefVices is still in its Infancy. Judgins from the- growth in outsourcing
of other business processes there seems to be very good opportunity for project management outsourcing.
• Some organizations have successfully outsourced their project control functi~s to outside vendors. The main
challenge in the growth of project management outsourcing is In accepting project control as a separate function and
indelegating this to other departments or vendors.
• In the past most outsourcing that has been done has been In the IT sector and a large ~rt has been for project-based
assignments. For theser project management was an lntesral part and was. lnduded as part of the scope of. the vendor
or service provider. Considerable importance is-given by clients and the service providers for project management.
Many clients view project man~gement skills of the vendors as criteria before they are awarded contracts. So when an
outsourcing a . . _ dor &or example software development, project manasement rs considered a
Part ss,gnment ts grven to
. a ven
. • . 1
l'dfl of it~
'---- ___ _ . _ . ..
~ --~ ~- -. •~n,~...':;
•.
0 A service provider outsources a part of Its project management functions to anolh er vendor or ser,,ice
o Project management functions are considered separately and award ed as a separate asslgnrnt~
organization. , ._
I,. Cllent
Within an organization
Pros
- Clients can focus on core competencies
- Vendor can ensure that best practices are followed and can provide latest trends in specific sectors
Cons
- Commitment and resources requ_
l red internally, even though external resources are used
- Because ownership of resources does not exist with client, vendor can discontinue the relationship
project management can be outsourced and what should not be outsourced. _,,..
_.....__......._______a...----'---------=-- ------------'---....a...----........-----.. =. c........---=-::•~:~. ±.i
0_1 Explain the characteristics and advantages of Proie<?t Monitorfng. (Refer Sections 5.2. 5.2.1 and 5.2.2)
o.2 Describe Project monitoring & controlling process. (Refer Sections 5.3 and 5.3.1)
o.3 What is Information need of a project? Describe its objectives. (Rifir Sections 5.4 and 5.4.1)
o.4 Explain the reporting of information. Describe any four types of report. {Refer Secttons 5.5 and 5.5.1)
O.6 Describe the ways to engage project stakeholders. {Refer Section 5.6.3)
a.7 Explain team management. Write·some of Its characteristics. (Refer Sections 5.7 and 5.7.1)
a.8 What is project Communication? How can you manage project Communications. (Refw Sect1ona 5.1 and.5.1.2)
a.9 What is project meeting? Explain Its planning steps. {Refer Sectlo~• 5.9 and 5.9.1)
0. 10 Describe the Earned value method. Write Its .method. (Refer Section 5.10)
Q. 11 What is.the significant of milestones In project management? (Refer Section 5.11)
Q, 12
What are the ways to us~ milestones effectively? (Refer Section• 5.11 .2 and 5.11.3)
chan e r uest. RJfar Section• 5.12 and S.12.1
uesJ.)Vrite the,ste
a. 20 What is Project Cont~cting? Describe the types of Contracts. (Refer Sections 5.16 and 5.18.3)
Q. 21 Describe project Outsourcing. Write its advantages and disadvantages. (Refer Sections 5.17and
. 517
• .1)
.sy}~~11us,
1ntrv<'
•
,r::::~=-:------------~=--------
_,111c1ion to ~roject leadership, ethics 1
n Prolecta, Multlcuttu 1
, acceptance; Reasons of pro),.,.. ra and \llr1ual proj9Cta.
c11$ 101118 • ""'' termination VarlO
rntion, Starvation), Process of project ' ua types of projee11ermiMllons (Eldlnclon Addle>
1te9 termination compl81ln fl ' '·
11~001"1edging successes and failures· Project ' g a nal report; doing a lessons teemed .,,.,_,
:i _ f further study. ' management templates and o1her r8SOUIC8I: M8Mglng wlholJt _ __: '
Are~~ o _..,.,., .
project Leadership
~ ~~ ~ ~ - - = - - - - : - - - - - - - - - - - - - - - -
, !ea3ership is ~lie ~bility to establish vision and direction, Influence and align others towards ~ '6mmon
"'""'' and inspire people to achieve success. · - ...,
_ project leadership Is the .act of leading a team towards the successful completion of a project.Project leadership_ .
,,ms in both management and leader>hlp. It Is a soft sk111. _.,
_ teadership for long has been growing in relevance and importance as and more projects are betns delhered '" ~
more
more complex and uncertain environment. The role of leadership In a ·project is to promote me ·ect 0 •
encourage pos1·t·1ve reIatIonsh'1ps, support effective teamwork, raise morale, and empower and,lnspireindMduals.
PfOJ b;ecriYes.
An effective leadership : ·
o Set standards of behavior and performance
o Motivate the team members to high performanc-e and
o Rally the team members when the project has ,problef!lS to overcome.
.,
,·
------
- It promotes fair decision m~king.
.
. 4'
- .d s a greater chance of success.
It provi e
- d an,riety and stress and ultimately turnover In projects.
11 re uce.s
2..2 PMI Code of Ethics means for PMPs
6
• table for their own successful or failed
~ns PMPs have a responsibility to hold themselves accoun de6.....
- 1tmea • ~ ....
actions, as well as any repercussions.
It means being respectful and demonstrating a high regard for oneself, others, and any reSotJrces entrusted~-
- ' fid nee cooperation and diversity.
It me-ans fostering excellence through mutual respect, trust, con I e , '
_ It means the views of others are encouraged and valued.
_ , m-=ans practicing fairness at all times, making decisions, and remaining Impartial a nd objective. Behavior_ITMlst be"'-
1
from self-interest and self-gain, prejudice, or favouritism.
It means demonstrating honesty through words and conduct at all times.
_ Indeed, being ethical and following ethical norms can be said to be prerequisites for project managers who'-'-
practice ethics and observe ethical rules. ·
- Let us take a look at some of the most common types of ethical dilemma in business, and how you can navigate~
through them.
1. Accountability : When things go wrong, it is·human nature to try to avoid the consequences and place the tiaat
somewhere else. Not only ~n this damage careers and reputations, it creates additional project issues by cnr, :le
the real source of the problem. Project managers should understand the importance of owning their own mislats,
and of recognizing situations in which teani members or other stakeholders are attempting to shift 111t
responsibilities for problems that arise.
2. Conflicts of Interest : At the enterprise level, when projects involve large numbers of people and sever-ii of Odidt
vendors, there are ample opportunities for stakeholders to give inappropriate preference to certain teams 11
companies. As a project manager, you should make sure that all parties involved In a project understand p
comparry's standards for bidding and vendor selection, and that the definition of a conflict of interest iS' cB ID
everyone.
3. Workplace Culture : While today's workplace environments are generally more respectful and inclusive than ltl!Y
were a few decades ago., no organization has perfected its company culture. Project managers should be very flflliar
with their company's code of conduct and should ensure that all employees, contractors and business~
understand what is expect.ed of them. This Is particularly Important with projects that Include team memben fro!_'
multiple countries as behavior that Is acceptable In one culture may be vie~ed as harassing or even threatenlrC -'
another.
Intestinal fortitude: The fnner strength of mind anC, will that enable you to act In the race of advenity.
Courage to do what Is 'right : The ability to do ,something that you know Is correct and appropriate regardless of the risk to
yourself. .
Tools for communication need to be In place before the team begins work Technical t -h
. · ma er1a 1s are fundamental to t e
team's ability to generate useful work products. The technical environment should pr Id h .
. ov e t e mea ns for onhne document
review, Interactive meetings, training, discussion threads, research and survey d t b ·
a a, enchmarklng quality revie w data
collectlon, and reward systems for sustaining team commitment. ' . '
(v} Standards for project management and for work production. PMl's A Gulde to the Project Manag~nt Body of
Knowledge
(vi) Program management files
_ Hthe organization's larger infrastructure does not contain the tools to capture, share and refe'rence key documents. thf!n
the project team should develop them within the communications plan for Its own use. If the project cannot arrange the
proper technology, put it in the risk plan for management slgnoff.
remote-work cn11lronmenl. Virtual project managers have to be prepare 0 r pro1 . ect rna nagers have to find a d\ ~
0
over communicate to prevent them.When these miscommunIc.atlons " '
solution that reinforces a strong team bond. employee engagement such as tealTI tn....
3 • 01Sconnectlon to team : In a traditional setup team members ar e able to havet member It can be difficult so vou ~ ·~ "-
Being a remo e
hours, celebratorv dinners workshops and dally llfe together. d derstanding.
. , ' spec.t an un
likely to get to know your colleagues which In tum c.an decrease re te should study up on remote t-...
. . o c.ompletely remo ~
ProJect managers wllllng to go virtual or any company hoping to g
best practices to understand how to make a dispersed team feel connec.ted.
Scanne d W
·1th camscanner
,!~ p,oLect Managemenl (MU) 6-9
~Physfcal inspection of the deliverable
(ii) Third party audit of the deliverable
(iii) Analysis of the processes used to create the dellverable
(iv) Review of Project Plan re: time spent creating the deliverable
(v) Review of Financial Plan re: cost of creating the deliverable
(vi) Review against the Quallty Plan re: quality of the deliverable
_ To increase your chances of gaining customer sign-off, you may wish to Involve the customer in the acceptance testing
process itself. This gives the customer additional confidence that the deflverables meet the acceptance afteria and that
the testing methods used to determine the completion of each dellverable are comprehensive and effective.
_ After the acceptance test is complete, the Project Manager commissions any additional work needed to meet specified
acceptance criteria. Upon completfon of that additional work, the dellverable Is re-tested to determine whether it h3S
achieved the required level of quality. This process continues until the deliverable is ready for customer sign-off.
_ once the testing is complete and the deliverable is ready for sign-off, the Project Manager completes an A«eptance Form
within their project management templates, which describes the acceptance criteria and the overall results of the
acceptance test. This should give customers confidence that delivera~les meet their requirements in full and should be
accepted as 100% complete.
Step 3 : Gain Customer Acceptance
Th e customer reviews the Acceptance Form and decides to :
o Commission its own acceptance test
o Request further information about the testing activities
o Not approve the deliverable and raise a formal issue
o Approve the deliverable as 100% complete
- Throughout the Acceptance Management Process, the Quality Manager keeps an Acceptance Register up-te>-date to allow
the Project Manager to monitor and control accepta.nce of project deliverables.
- To gain the full customer acceptance of aH deliverables in your project, consider using these acceptance project
management templates: Acceptance Management Process, Acceptance Form and Acceptance Register.
Project termination is one of ttie most serious decisions a project management team and its control board have to take. It
causes frustration for those stakeholders who sincerely believed that the project could produce the results they expected, or
still expect. The project manager, his team members and very Important· stakeholders of the project will feel that they
personally failed. They als~ will be scared of negative consequences for their careers; their motivation and consequently,
productivity will decrease significantly._
Technical reasons
- Requirements or specifications of the project result are not clear or unrealiSt ic b h ged accordingly
. contract cannot e c an
- Requirements or specifications change fundamentally so that the un derIying
- lack of project planning, especially risk management
The intended result or product of the project becomes obsolete, .1s no t any longer needed
Adequate human resources, tools, or material are not available
. h proj·ect cost or too low project revenue
- ,:he project profit becomes significantly lower than expected, due to too h ig
The parent organization does not longer exist
- The parent organization changes its strategy, and the project do~s not support the new st rategy
- Force majeure (e.g. earthquake, flooding, etc.)
Necessary conditions disappear
lack of management support
lack of customer support
- o_n the other hand, involuntary failure of the project may _occur due to insufficient financial support, poor leadership, weak
front-end planning, and excessive negative Impacts of project stakehold~rs.
-
6.9
process to Terminating a Project
. . .
The closing phase of project management involves several steps. Work through the following cheddist to ensure your
project is successfully completed. ·
1. Formally transfer all deliverables
The first step to closing out your project is to finali~~ ~nd.1transfer the project deliverables to the dient. Go through your
project plan to identify all deliverables and make sure they have been fuHy co'!'pleted and handed off.
6-12
if Project Management (MU
rn rnernbers and any other Pa ·
4. Release resources II rs contractors, tea d officially release them so rt""'.
5
Formally release resources from the project, lncludlng supp e ' or obligatlon , an thtv 1ft
1 ayrnents ·
Notify them of the end of the project.Confirm any flna P
tree to work on other projects.
5• Conduct a post-mortem of the proJ·ect closure process. This is• a t1..
"'Ill•to
1uable steps it nities for improvem
A post-mortem or project review Is one of the moSt va d Identify oppo u . ent . . .
review the successes, failures, and challenges of the project an
forward. j ct In other words, calculate the pr~--
. . w of the pro e . -,,ai;{s
As you begin your post-mortem, conduct a performance revie ·
performance in terms of cost, schedule, and quality. to get feedback on how the DrftL...
. t managernent team r·~
Next, conduct a survey or hold a meeting with the proJeC ·ct re of the project's performance.
prehensfve P1 u
went. These individual answers will help paint a more com . d and op'p ortuniti fi
. . . then identify lessons 1earne es ort1it
With the project performance and feedback m mmd, you can
future.
6. Archive documentation
. 1· 11 documentation (contracts, project plans.-
Once you have completed your project post-mortem, you can f ma ize a
. h' f r later .reference.Be sure to keep clear notes-
--,,:.
outline, costs, schedule, etc.) and index them in the company arc 1ves o · . ..,
· · ·· easily reference and implement them on ..;-..
the proJect's performance and improvement opportunities so you can -•-
projects in the future.
7. Celebrate
- The end of a pr?ject is a big accomplishment and r~presents the culmination of many hours of hard ~and -
dedication from a team of contributors. An end-of-project party is a great way to acknowledge your team'~ hanhat
- The final report .is an internal project management tool which reviews th e imp
· Iementat,on
• process of the projed P~
:::~
presents the proJect's outcomes and results.
- It provides an opportunity for the project managers within the Imp!ement1ng ent1t1 . .es to summariz · d sure of the
_
project, the project's achievements, outline the problems encounte d
.
e, upon
re , as well as the good practices and lessons teamed-
°
The. final report should include a particular focus on assessin g th e· extent to which th d • were
delivered, as illustrated by the indicators of achievement. . e expecte accomphsh"!'ents .
- In the final _report Implementing entit les are also requested t 0 eIab orate on the t · · the
presence of multiplier effects and supplementary funding. · sus amability of the projects' efforts,
Table 6.10.1 : Annual Progress Report, Final Report and Evaluation Report for the Development Account
Summary table
..
: fEva~~rt . .
nmefra Should oe submitted For 9th tranche projects that closed by For 9th tranche projects that closed by
me by January 31st for December 2017, the final report should December 2017, the evaluation report should
the preceding year. be submitted by 31st March 2018. be submitted by 31st March 2018.
For 9th tranche projects that received° an For 9th tranche projects that received an
exceptional extension, the firial report exceptional extension, the evaluation report ·
should be submitted within 3 months of should be submitted ~ ithin, 3 months of the
the proj ect's operational closure. project's operation~l closure.
The evaluation report should ideally be .
submitted with the final report.
External consultant ·hired by implementing
Drafter Project manager in Project manager In Implementing entity.
entity.
implementing entity.
2% of the total budget of the project is
Budget No financial . No financial resources required.
Initially budgeted to fund the evaluation.
resources required.
Should there be savings and need for
additional funds for evaluation, the 2" figure
can be revised upwards. I( the proposed
evaluation budget exceeds 4% of the project
budget, prior _approval needs to be received
from the DA•PMT.
....__
-- •T_......_..
--1=-=-=-=-=--=--=-=1=-=-=-=-=----.:::-=-=~==-=-=-=-=--=--=--=-==~~-=-=-=-=-=-=7~~~;;; 1" , . 1 1u al l t ttt
This section should be no longer than one page and ~hould provide a concise and effective narrative of the basic
accomplishments of the project. It should not repeat Information alr~ady provided (for instance, informatia"n presented In
the project document) but should highlight results, potential Impact and any relevant achievement related to the project's
implementation (including unexpected results, both positive and negative). If the project (or one If its parts) Is considered
!t
success story should be dearly stated In this section. The Information reported In this section ~ight be used for the ~A
awebsite.
' , lcatrJr,of,
H~nt:ci:1) Co.111••
. t_..,.
: •...4 --i # , •
·ther~
. .
(P 'lfy
e, actMt,
p~Je_ct's dts,!gn. ···-~
Sls~t ~
shou)cJ be explained Uftdlr'~ 4
le~~blems en~JJ.
:.<f' '.'t ,l •
.
EAl
A.1.1
A.1.2
EA2
'.cf' It
Description of challenges ase indicate whet her and how it
1
(for each challenge, p e
(Please list all challenges faced) was solved)
5. Good Practices and Key Lessons Learned · with respect to the design or execution of 1he
- In this section entities are requested to elaborate on good practices,
project, which could be successfully replicated in future programming. nsidered important lessons for f. ..._
b
- The section should also outline any relevant finding that can e co "'wn!
programming.
6. Sustainability
This section should elaborate on the extent to which the achievements of the project are likely to b e s ustained beyond its
cornpleti~n, leading to durable, self-sustained results. It should alsc;> include reference to any follow-up activity to the
project that was implemented or initiated by the entity or other partn~rs following the completion of the project..
7. Multiplier Effects
This section should elaborate on whether the project triggered processes for t h e replication of its activities, in other
participating countries, non-participating countries, or, alternatively, any plan to do so.
8. Supplementary Funding
- This section should elaborate on whether add~tional fu nding (financial o r in-kind) w as leveraged to further the
implementation of the project (e.g. securing additional participants at workshops, paying for venues/additional
activities, etc.). In addre~sing this section, implementing entities are asked to fill in t he table 6.10.5.
- Ple~se note that supplementary funding does not refer t o funds leveraged for projects ot her t h an the one being
rev1ew~d (fo)llow up activities to the p roject or spin-offs In other countries should b e reported in sections 6 and 7,
respective1y .
~.>,;.~...,. ,:.,.'>••••.,.:....., ~
. -~·, .
Co_!ltributlng-Entftyf.Donor Purp_ose
sh USD) .· .'~
contractual sen.:ices
120 -;
Total
- The lessons learned analysis fs a technique through which we can learn from our mistakes and successes ;and ~ e
our performance over time. This Is also known as the post-mortem analysis. Generally, this process is held near the
completion of a project, but It's more beneficial to hold It during the course of projects. For example, whffl a milestone ha5
been achieved, we can hold a lesson learned analysis and act based on the learnins. There's no need to wait until the end
to act, especially if the lesson Is something everyone can benefit from.
- The objective of the lessons learned sessions ls to share and apply the knowledge derived from both posltive and negative
experiences. Positive experiences are all the things that we would like to continue doing in the future. Negative
experiencesI on the other handI are those things. that we should never repeat.
- During a lessons learned analysls, an honest, no-penalty discussion is held with a man;aatr and his/her team. It is
frequently used for project work at strategic points and at a project's conclusion. It can also ~ used to improve change
initiatives and for new assignments given to team members.
The process of Lesson Learned Analysis comprises fiv~ main elements : defining the prolect, collecting i ~
verifying applicability, storage, and dissemination.
I
. . ues, writt en forms, and meetlnBs Th rue ure ~s well as unstrutttJred proces~e,; sud, 1tt prr,ject
cnt1Q • e collettlon of le
. . g 10 solicit. l essons learned can b b ssons may come from a, many ~outc"s tJ., ttn orpnft.tfton is
,v,11,n e ased both upon posit!
ative experiences that result In undeslta ve exper1ent es that .Jdileve orianlatioo 8¢111, .md· M
neS r more important as docume ti ble outcomes. For some ptojecu, a colh,boratlve leisons colll!Ctfon pr~ ~ an t\
L,e as O n ng the lessons.
5, Disseminate
The final and the most important element is the dissemination of lessons learned. Lessons are of little benefit unless they_
are distributed and used by people who will benefit from them. Dlssemlnat.lon can indude the revision of a wctil process.
training, and routine distribution via a variety of communication media. lessons can ·be "pushed," or automatkally.
delivered t o a user, or "pulled" in situations where a user must manually search for them
It is important t o know the sort of lessons do we need to capture and bulld in to planning future projects. FolJowtr.-.ar•
,ne common areas where lessons should be learned :
1. Communications weaknesses
In gen~ral, lack of effective communication has always been an area of concerned In either proerammes or proje(ts.. It
includes managing key stakeholder expectations, managing third-party suppliers, etc. Having more. better and different
types of communication is vltal and that might mean getting people together in the same room, face-to-face, to resoM
issues more effectively and develop a clearer understanding of the brief and desired outcomes.
2- Management of risks and Issues
Risk and issues need to proactlvely addressed and owned by the project management team. Some peopfe's ~ of
managing risk is a t ick-box activity rather than a necessltY to mitlaate project failure
3
· Obtaining the right resource• to get the Job done
Project managers need to be aware of the resources hey require during the project. Very often., resource manacement ls a
Problem. Therefore, It must be looked out for durlna the Lesson Learned Analysis.
• .... ..... ,
,-.,:;; ,. I \.
4 Clarity around roles and responslbllltles pMO takes over the running of the
· Project managers need to understand what's expected of t hem If thnager e Is not adhering
· t O PMO requ irements it
project/programme. There are different skill-sets at work an d If a project ma •
. .p. So, this is a kind of lesson we mus t look out for.
can affect the relat1onsh1
- It is said, failure Is the pillar to success. But this holds true only when you acknowledge failure. An attempt to recognize
and overcome failure In projects and succeed In future Initiatives can be challenging.
- If your project has been launched befor~ but failed for some reasons, most likely your team and other stakeholders have a
negative mindset towards it. But the failure reasons can be addressed and a new project will be successful.
- · o f f ailed
A t h orough ana Iys1s ; project can greatly help understand what was done wrong. You can develop feasible
solutions, and remove any barrier for future success.
1. Wrong Team Organization : You need to explore the team organization chart to figure out whether wrong people
were Involved In the work, from leaders and sponsors to team members and personnel.
2. Poor Motivation : Try to find out whether the business organization provides the team with the right attitude and
motivation towards the work to be done.
3. Insufficient Technology capabllltles : Can you say that the project has been failed because of the wrong technology
selected and Insufficiency In the capabllltles to support what was needed?
4. Wrong Methodology : Analyze the methodology employed In the processes and explore wheth It .
. er was appropriate
to the project's procedure and change controls.
ever. h .. h . d d .
· e figure out whet e r 1t as increase or ea-..
You must explore every change in failed project· management pract,c , -::-:-~
• ct implementat ion. ·
d &
the likelihood of success, and document the current nee ,or proJe
ate the results to assess whether the IWIII,,,.
- combine all of your records on the changes in a single sheet an d t hen aggre g . ..."I'll
is worth a new try. Hold a meeting with the stakeholders to highlight the changes a nd th eir impact to success and~-
on whether the new project should be undertaken at this time.
Being optimistic means demonstrating ~ certain behavior that makes everyone around believe that everything wili be(i.
regardless of how bad the things were in the past. In order to fight project. f~ilure, you must show an optimistic a ~
towards the new initiative, telling key stakeholders that the new project's outcome will be quite different than dit
previous failures.
Do ~our best to address the natural tendency to be sceptical about resurrecting a failed project. Be persuasive ~
motivate everyone t owards succeeding at the new Initiative.
Communicate the adjusted framework of your project and ensure t he stakeholders that this project Is reframed In
current context. Tell about the lessons learned from pr~vious ~nsuccessful attempts and point out all those adjustments
that have ~een made to turn the new project into success• .
-
enthusiasm won't bed
I
epeted.
Closely collaborate with lead
changes that could
d
II
a stakeholder groups to ensure that the project won't lose its momentum and that the
.
. ers an supervisors to keep track of any Issues In the team environment and detect and solve
l
negatiVely Impact Your project.
th
- Succeedk in PM rough Con~nuous Analysis. Even if your previous failures are considered, the lessons are learned. lhe
sta eholders ate committed d
' an Your new project is initiated, you must expect· for a more challenging process that
ultimately brings the job to a successful dose. .
- How often do you celebrate project ~uccess? Celebrating project completion and spedfically successful completion means
acknowledging success and mind yau, that's very important.
. .
- Most companies do n'ot celebrate ends. They think the completion· of a project is a reward in itself. But they are wrong.
Achievements. and outstanding effort deserve acknowledgement. Take a moment to reflect and feel proud of
accom~lishments. These moments are rare, and too often leaders fail to savour them but rather rush full..speeci ahead
into the next tunnel.
- Even when we do celebrate, perhaps too often the focus is on celebrating once the project is over. That can often be after
several years of hard constant work. No one feels like celebrating when this is the case. They are all just glad that the
project is over.
- Th~t's wf:ly it is important for the moral of the team that you celebrate project success along the way.
Consider celebrating at the following point along the project journey :
1.. Project Kickoff : If you gather the team together and do a formal meet and greet, so that everyone gets to know
·w ho's on the 'Team' then there is an opportunity to have an afternoon tea, or pizza lunch to celebrate everyone
being on board fur the project. ~ doing this, you will find that there is more team cohesion. It is simply because
people realize they are part of a team this way. They see the others who will be working beside them. This helps
then know who they can talk to about the project and any issues that arise, as they arise.So consider a small, kickoff
celebration
2. When key project· deliverables are completed : Sometimes it's great celebrating when the key deli~rables are
completed. There might be several phases within the project. And within those phases are key deliverables. Just
stop and celebrate the deliverables being finished. The teams will appreciate the break, even If it Is only for an hour.
What yo~ will notice by ha~ng such celebrations Is ~hat the1eam appreciates being acknowledged for the hard work
they have ju~ completed. It gives them the recognition they deserve, and In that, ~ou notice they are more willing to
• •••" .. ~•••••
. ~ ,.., s ,,·
- Celebrating success is more than just a good or nice Idea, or even the right thing to do. It can provide meaning,
teamwork, and help achieve even greater success.
1. Coll~ on Projects : People frequently designate Individual tasks which are part of a bigger project the whole teana Is
trying to complete. Project management software gives employees a method to collaborate on projects by dtscns•
documents, timelines, outstanding work, etc. •
s. oocument Sharfn~: Document sharing, whether Inside the tool 04' In a Integrated 3rd party system, enables ~~ to find
r,,ore comprehensrve documents, wlreframes, SpecificatJons, etc., which enabtes transparency and communic3tkJn•
. tio with OJ with di ts and
6. cornniunica n ents and Suppliers : Companies should be able to talk to and c.oflaborate ,en
~uppliers from the same place. Companies using project management software should offer ther dients the ability to log
in and view only th eir relevant project data. This way, d lents can provide direct feedbadc, matte edits and reviC!!'W prug, ess
in the same place.
i. optimized Decision Making: Project management software solutions assist In making the right deci:sionS as you h.rve aJI
the details in one designated place. Hence the decision process is enhanced and much more accur.rte-
s. Enhanced Customer Satisfaction : When you get a project done promptJy and under budget. the die:nt walks 'JWiJY with a
smile on their face - and a satisfied customer is one you will see again. Smart project management softwa~ ~ lhe
tools which allow this customer/supplier relationship to carry on. By applying fundamental project management.software
strategies, you'll narrow your focus, achieve your goals and improve your deliverabifrty and rate of success..
_ Microsoft Project is a project management software program developed and sold by Miaosoft. It was designed to assist a
project manager in developing a schedule, assilr,ing resources to tasks, tracking prog,ess. managing the budget. and
analyzing workloads.
- MS Project creates budgets based on assignment wort and resource rates. As resources are as.signed to tasks and
assignment wort f!St:imated, the program cal~lates the cost, equal to the wort times the rate, which rolls up to the task
level and then to any summary task, and finally to the project level.
I
- Each resource can have its own calendar, which defines what days and·shifts a resource is available. Microsoft Project is
not suitable for solving problems of available materfals (resources) constrain~ production. Additional software ls
necessary to manage a complgx tacility that produces physical goods.
- Resource definitions (people, equipment and materials) can be shared between projects using a shared resource pool.
Each resource can have its own calendar which defines what days and shifts a resource Is a~ilable.
- Resource rates are used to calrulate resource assignment costs which are rolled up and summarized the resource level.
- Each resource can be assigned to multiple tasks. In multiple plans and each task can be assigned multiple re.sources.
Microsoft Project schedules task wort based on the resource availability as defined in the resource calendars. All resources
can be defined in an enterprise resource pool.
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-!d project Management (MU)
~ • 6-29 P"°f:'9 LG8dorShfp, EJt,Jca & CJoacJffl
~owto Use Project Management Templates ?
Most PM templates are made In Ms Ex • 1y downlOINf
' o· ct fil Ii ks eel. A few text-heavy ones use MS Word. To use these templat~, itmp
1hem. ,re , e n are marked specifically.
, Insome ~ses, you WIii have to give up your email address In exchange for ttM! me Once downloaded, f!dit them wt th you,
0
wn details and export In your h f --sourer
c osen onnat. If you don't have Excel or W0td you can use ubre<>fflce as an open
alternative. Alternatively, upload the file to G '
your oogle MyDrlve account.
5t
6.1 4.1 Mo C~mmon Project Management Templates
_ _1(a) Project Charter Template
6 14
, T}lis is an important document template that outlines the scope, objectives, and stakeho4ders invotYed In the project. tt
documents everything th e project needs and its expected outcomes.
- T}le project charter also doubles up as a business case document. In case· you need to convtnce stakeholders of the
importance of a project, or outline the goals to your team, you will tum to the project charter.
_ Whether you are using one of the project charter templates or creating one from scratd'I, there are a few e-fements you
should always indude:
1. Project titl~ : 5tart with the title. Make sure it is specific enough to make identification easier. A good template to
follow is this - •[Project Type) to [Project Objective] for (Project Oient/Product
2. Executive summary: In dude a high-level summary of the project, its purpose, and its stakeholders.
¥
3. Project objectives : Explain the •why" of the purpose In greater detail. Be very specific about the outcomes you sttk.
It's a good idea to indude specific numbers or at least a _range. Don't say "increase traffic•; say •j~ase websit~
traffic by 200% in 6 months". -
4. Business objectives : Use this section to describe how the project fits Into the business' broader sbategic goals. For
instance, if you are ruMing a campaign to increase traffic to a website, describe how the highef" traffic would hetp the
business in achieving its goals.
s. Project requirements : Explain the project's requirements in terms of resources - both tangible and intangible - at a
high-level.
6. Project scope : Use this section to answer the question: •what is the project meant to accomplish?" Focus on both
long and short-term goals and objectives, but briefly.
7. Key deliverables: Briefly list the key deliverables at different milestones.
s. Project schedule : Give a high-level overview of the project's estimated schedule. You don't hiM! to be accurate
down to the day, but a broad explanation of key milestones will help.
9. Project budget : Give a high-level desaipti~n of the project's budget. You can break this down by resource
requirements if you want to go Into more detail.
Here are some things you ~n Include In the project plan Template : description, 10, dlent. 1
I duding Its name, nd ....._
1. ProJect ldentfflcation : lndude detalls about the prolcd, n · ~
manager's name. vou can also Include a counter I ~
2• th
Prolect dates : Identify the start and estlmate_d end date of e pro)ect. · '-
number of days lef\ until the end date. f llestones accompllst,....
I ted so far In terms o m ~-
3. Progress : Mention how much of the project has been comp e . d r bl d
. f k tasks, actlvitles or e ivera es, emn.t....
4. Tasks/acthritlesfdeltverables : You can lndude a broad overview
O
ey fOcus on deliverables whll~ ;-.Ill\
the level of granularity. In complex projects, for Instance, you might want to ' ....
projects, vou can specify the exact tasks needed to produce said deliverables.
· h team or person responsible for It, and the....._
5. Task detans: lndude details about each task' s start and end dates, t e , -.
status.
n nd
6. Timellne or Gantt cmirt : You can also Include a tlmeline or Gantt chart showing depeode cies a progress fo, . .
task.
'
1. Task progress : dearty identify all tasks that have been accomplished since the last reporting period, what you
on rurrently, and what's coming up in the next reporting period.
,we..-..
l
\ 2. Issues, risks and change requests : Ust all current issues and their status (open, dosed, pending}. Also list change requms ,
and their history. Your goal should be to alert stakeholders about any Issues that need their immediate attention.
. 3. Milestones and deliverable : Identify all milestones completed since. the las~ reporting period. Also identify ~
milestones and deliverables as well as their start/finish dates.
As far as project management documents go, work schedules are fairly straightforward.
l
ll
6.14.1(e)Workereakdown Struct ·
8-31
.
'fhe work breakdowns--- •
urea <WBS) Tempi
, uucture~ ~ • Bhica & Closure
It involves breaking dawn °ne of the
deflYerabtes more '"'P<>rtant doc
A work breakdoWn --....... Into smaller ,.._ urnents You'll create In the r~,
- ~ .. u,.,ure C • ""'re manage bl '"""'Be of managing ,_..,
4.5 le vels of deco . an have as rn a e chunks. . a ,.. VJect.
. rnp0S1t1on. The any le-.-e1s as nec:es
package describes all th deliverables sary, but for most projects ,
. e Work neces.sa . at the last level of , vou won t ntttt to go beyond
,
. k
creat mg a wor breakd
ry to treatea single dellv any WBS are c:a1•~ •
o.:u a wofic package•. A won
oWn struct erable. A project th . .
understand the proJect's ure requires a dear . , en, is a collect.1on of won packages_
SCope, list dellvera Understanding of What a WBS
6.14.1(f) Timesheets Template bles, and determine Work packages. Ktually i~ You also need to
- As project managers like to say, communication is about 90% of their job.From delegating tastes and solving issues to
keeping stakeholders ·updated on the what. why, and whe~ of the project, you'll spend most of your time communicating.A
solid communication plan will make your job infinitely easier.
- Communication plans help you communicate faster, anticipate client needs, alert your team about issues before they
happen, and standardize communlcatio~ aero~ your entire organization.Any well-rounded communication plan template
should indude the following:
5. Help the team understand you support their Image and brand : Be transparen,. Let them know that you will foster,
networ1c and generally be supportive of them, so they know that they are not worldng In an Isolated bubble. Remind them
that just because they aren't reporting to their manager for this pro}ect doesn't mean there Isn't company•wlde vlslb\lltV,
and organizational visibility and their reputation at stake. Help them understand that their behavior and their
performance in this projea can and will impact them positively or negatively In the larger company setting.
2. Hybrid Approach
- The one-size-fits-all strategy is now facing extinctio~. The conventional waterfall methodologies are now being
tweaked with the modem strategies and adapted vividly to help with the various processes of project management.
- The implementation of these hybrid methodologies is best suited for the scenarios where the projects are handed
over with an . exceptionally larger work base with an imperative .requirement of multiple project managers to be
'
involved in it.
- Hence, the present corporate world is demanding a considerably higher number of hybrid project managers. who are
not exclusively ~pert in one prescriptive methodology but are well-versed in several multiple methodologies.
5. Cyber Security
· . 't be wrong to say that security over the I~
With all the advancements in intemet technology arou nd us, tt won ed fi the concerns "'---
. • .:.1.. highly protect ,rewaII, a..._, ._
is a myth. Until and unless you are securing your data w, u , a · .
. mised is ontv going to increase ~ minute.
security of your project is highly valuable as ~e data getting comp~o
· · tad· 3 way by enhancing the cyber security m ~
It has to be accepted that data breaches aren't completely mg .
· d stratooies from an onltne threat. vou stand a
But once you secure your project management methodologies an ~ t>· •
chance of not getting robbed on line. And with · of CVber-atta ck at an alarming rate, the chances are morefara
• the nse
fonnal regulation to be created in order to set a standard of detection, prevention, a nd response from technolagy
and agencies alike.
6. Remote Teams
The sharing economy has proven the fact that more organizations are highly appreciative of the use of a distributed
· team structure. This is because remote teams are comparatively cheaper·and way more prod_u ctive when managed
efficiently and effectively with the apt set of ~anagement t ools.
And needless to say, remote working teams are gradually becoming standard practice in the wood of project
management. The prese.nt-day project managers are steadily proceeding ahead with the investment of this
technology to promote highly effective communication over a wide range of platforms.
The loT is basically a gtobal netwonc of devices that can use the Internet to communicate with one another as well as
with the end-users. And the interesting fact is that loT bisects with project management on all the aspects ranging
from data collection to team collaboration.
The advantage of loT In a project management strategy Is that the devices can sense and respond to the surrounding
happenings automatically through their networ1<, thereby reducing the requirement of involving manual intervention.:
. loT has a significant role in t~e 2020 project management trends. It helps to lower the operating costs, minimizln&
errors and increasing the response tJ~e. You also get the leverage to provide the cust~mers with a comparativetv
raster and better service.
Q. 12 Describe Lesson teamed_Analysis. Explain its process. (Refer Sections 6.11 and 6.11.1)
Q.1 4
How important is it to acknowledge failure and success of a project. (Refer Section 6.12)
a. 1s How can we find out the reasons for project .failure? (Refer Sections 6.12 and 6.12.1)
a. 17 Describe Project management template and its usage. (Refer Section 6.14)
Q. 20 Describe some of the areas that ca~ be studied in project management in future. (Ref91 Section L 16)
aaa
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