Unit 1 & Unit 2 Project Management
Unit 1 & Unit 2 Project Management
Unit 1 & Unit 2 Project Management
1) Rapidly changing technology:- Technologies are changing very fast all the
manufacturing and service industries they must cope up with changing
technology. It leads to a big scope for project.
3) Project life cycle:-Project life cycle is a great extent with innovations taking
place at a very rapid rate. Project management are needed for the up gradation of
projects.
5) Large organizations:- Large organizations face problems like huge work force
and work division, so they divide their work in project’s and create a team to
accomplish the objectives in the form of project’s . This also help’s the
organization to develop a method for performance appraisal.
6) Customer focus:- Increased customer focus has been a market trend in recent
times. A few year’s back cost reduction was a major formula of success for an
enterprise.
2. Write about the evolution of project management?
Stay in the loop for their project role, while working independently at a
remote site.
A. Project identification is a most crucial task which start’s with an idea (or)
intention. As the idea comes there will be increase in number of possibilities
(or)alternatives. To select the best alternative, we need to follow the pre-
requisite of a project are idea generation, idea screening, monitoring the
environment. Idea scouting, and project ranking.
Project
Worker’s
Specialists
Man agent
Market analysts
Publications
Customers
Suppliers
Distribution channel’s
1) Worker’s:- Worker’s are the best source of idea’s especially matter’s relate to
product process improvement, re-arrangement’s (or) modifications. These ideas
come from individual worker (or) group of worker’s. To collect individual ideas
normally organizations use suggestion boxes but now-a-day’s e-mail’s and text
message are used for ideas. Brain storming is a group technique to develop ideas
to a specific problem.
2) Specialists:- Many organizations hire specialists for idea generation. They are
called idea creator’s (or) imaginers. Their job is just to do thinking.
II) Idea screening:-In idea generation phase project having a large number ideas
are gathered by tapping all possible sources. But all of them are not relevant and
feasible for the business. So a process is required where all the ideas generated
are evaluated, compared to select best idea for the business.
There are two stages of idea screening, initial screening and detailed screening.
Initial screening:- Initial screening is done in all stages, simple methods may be
used in initial stages. The ideas are studied to see if they are suitable with the aim,
there is a pass/fail decision made. In this stage decision is taken on tacit
knowledge of individuals (or) group with in the organization.
a) Marketing factor’s:-
Potential market size for output of project
Estimated life of out put
Relationship to competing product’s
Consumer acceptance
Compatibility with existing pricing structure
Marketing resources needed
Relationship with promotional methods and resources.
b) Production factor’s:-
Production time required.
Change in cost structure
Availability of technical skills to produce the product
Raw material’s and ingredient requirement’s.
Availability of production
Cost and availability of new resources.
c) Personnel factor’s:-
Training requirement’s.
Knowledge and skills.
Available of time and human resources.
Development funds needed and available.
Compatibility with existing strengths.
Development difficulties and risk of failure.
d) Financial factor’s:-
Finance needed and available for market launch and ongoing products
Support.
Return on investment required.
Payout period.
Break even point.
Impact on cash flows.
III) Monitoring the Environment:- Project success depends on how will it adjusts
with the environment in which it is to operate. So it becomes imperative to study
to monitor such environment before the start of project.
IV) Idea scouting:- Idea scouting means to examine the sources to get business
ideas and give them the shape of project.
The Following are the few sources of idea scouting.
Demand and supply trends.
Import’s and export’s statistics
Emerging trends in trending technology
Industry profile.
Product/ process profile.
Skill labour profile.
Offer’s by govt financial institution and development banks.
Local materials and natural resources availability.
Economic and social trends.
Analysis of sick unit’s.
V) Project ranking:- The project ranking is the most important and difficult step in
project management. In this stage making the right project choice and epically
choosing which project should be done now (or) later and which is important.
Here project manager never prioritize the project’s. Most of them used point
scoring method under this method factor’s relevant for project ranking are
identified and an index called project ranking index. Project’s that fall at low score
are rejected and highest score are selected.
3. Based on Nature:
a) Conventional Projects: These projects are traditional projects which do not
apply any innovative ideas or technology or method. For example,
conventional irrigational projects, handicraft projects, etc.
b) Innovative Projects: These projects involve the use of technology, high
Researched development of new products and services.
4. Based on Time:
a) Long term projects: These projects take a very long duration to complete.
These projects are run for many years till the objective is reached. For
example, Eradication of diseases like Polio, Filaria, etc.
b) Medium term projects: These projects take a medium term duration like 3
to 5 years. For example, Modernization projects, computerization of
operations, etc.
c) Short term projects: These projects are executed within a short period,
normally within a year. For example, pond cleaning project, health camps,
software development, etc.
d) Very short term projects: These projects are completed within a very short
period, say, within a day. For example, product launch project.
5. Based on Risk:
a) High Risk Projects: These project involve a very high degree of risk, for
example, nuclear energy project, thermal energy project, satellite project,
etc. If the project is not handled properly, the effect will be very adverse.
Thus high precautionary measures are to be taken to handle.
b) Low Risk Projects: These projects do not involve risk and they are carried
out in the normal course of action. For example, road and bridge
construction, house construction.
6. Based on Investment Decisions:
a) Independent Projects: An independent project is one, where the
acceptance or rejection does not directly eliminate other projects from
consideration or affect the likelihood of their selection. For example, if
management plans to introduce a new product line, as well as, replace a
machine which is currently producing a different product.
b) Mutually exclusive Projects: The mutually exclusive projects are projects
that cannot be followed at the same time. The acceptance of one prevents
the substitute proposal from accepting. Most of them have ‘either or’
decisions.
c) Contingent Projects: A contingent project is one where the acceptance or
rejection depends on the decision to accept or reject multiple number of
other projects. Such projects may be complementary or substitutes.
UNIT-2
PROJECT PLANNING AND CONTROL
1. Explain the need, objectives and functions of Project Planning?
Ans : Project Planning is part of project management, which relates to the use of
schedules such as Gantt charts to plan and subsequently report progress within
the project environment.
OBJECTIVES :
Defining the Scope: Define the scope of the project and its limitations.
Preparing the work breakdown structure: Divide the whole project into
smaller activities.
FUNCTIONS:
It should provide a basis for organizing the work on the project and
allocating responsibilities to individuals.
It is a means of communication and co-ordination between all those
involved in the project.
It induces the people to look ahead.
It instills a sense of urgency and time consciousness.
It establishes the basis for monitoring and control.
1. Scope Planning :
Scope planning refers to the process of progressively elaborating the work
of a project. Which includes developing written statement that includes
project justification, project deliverables and project objectives. The project
management gets the scope from concept phase. If it is well defined then it
is becomes easier to the project management to proceed further. If not
well defined we cant proceed to further phase.
2. Schedule Planning :
Schedule Planning means the deadlines for the project schedule
management plan is prepared by the project team in consultation with
management. The schedule management plan provides details of project
milestones activities and deliverables with start and finish dates. There are
three techniques of schedule planning
Network diagram
Gantt charts
Mile stone charts
3. Resource planning :
The project needs various kinds of resources like peoples equipment and
other facilities, management and the project team plans for the resources
which are to be arranged from with in the organisation and outside the
organisation.
4. Risk planning :
Risk Planning is the process of deciding how to approach and conduct the
risk management activities in the project. It should be completed early
during project planning. It is crucial to successfully performing the other
processes.
5. Communication planning :
All stake holders including project team have different needs of information
about project. These information needs are put in to communication plan.
The main purpose of communication plan is to improve the flow of
information about the project to all stake holders. The communication plan
shows how the information will flow with in the project and its members.
6. Quality planning :
Here quality planning refers to both project deliverables and project
management. Quality planning is a process of identifying quality
requirements and standards for the product and project. Benchmarking
and control charts are used to maintain quality.
7. Procurement planning :
The Procurement planning is the last planning activity in the planning
phase. The procurement plan provides a detailed description of the
products to be procured from suppliers.
8. Financial Planning :
Financial plain is prepared to identify the amount of money required for
each stage in the project. The total cost of labour, equipments, materials
and other expenses are defined in the plan. Preparing detailed financial
plan is extremely important for project success.
9. Acceptance planning :
Generally in project management the acceptance planning is used to
gaining the acceptance from customers on goods and services provided by
the project. This is used to judge each deliverable for acceptance.
Ans: Project Managers are the persons who are responsible for managing the
project. In other words, project managers are the spearheads of a project and
ensure that the project is completed within the specified deadline and delivered
to the client without any flaws. In short, a project manager is responsible for all
the aspects of the project from project initiation to project delivery. In the
following paragraphs, we will be focusing on the roles and responsibilities of a
project manager and project management team.
Listed below are some of the important duties are responsibilities of a project
manager.
Planning :
Organizing :
Organizing is the next phase where project managers focus. In this phase, the
project managers concentrate on organizing project team structure. While
organizing, the project managers also have to take care about the existing
structure in the organization. After this, they have to identify the roles and
positions that have to be assigned to the team members.
Leading : One of the most demanding roles of being a project manager is to lead
the project team in an efficient manner. The project manager has to take the lead
right from the word go. The project manager must coordinate with different
levels of the organization in order to make that the project goes smoothly. They
have to always motivate team members and keep a regular check on the
developments of the project.
Controlling : project managers have to ensure that the project is heading in the
right track and will be completed by the team members within the time-frame.
Project managers use a three-step controlling process and they are :
Ans : The success of a Project will depend on how efficient project teams are in
executing project goals and objectives during the project management lifecycle.
This will be impacted, work assignments. Here, project managers can help by
determining the project goals and objectives are clearly defined to making the
right work assignments, and encouraging team work and commitment.
1. Individual Assignments:
2. Shared Resposibilities:
Shared work is a core requirement on projects. Here, effective teamwork
occurs when each participant involved in a shared assignment is clear about the
specific tasks he is responsible for completing. Clearly defined task assignments
will encourage personal accountability and reduce the like hood of
misunderstandings and conflicts among project team members.
3. Priorities:
4. Motivation:
Ans : The success of a project depends up on efficient project teams. Here team
dynamics means it is a psychological forces influencing the performances and
behaviours of the teams. These dynamics are created by the personalities
involved and how they interact. In team dynamics the project managers are the
persons help to the team members about their work then the team members
easily know how to achieve the project goals and objectives. Team dynamics are
very important to improve their performance with the help of communication,
motivation, innovation, efficiency.
1. Communication :
Communication is important for a successful project. The project leader
must give directions and advice clearly to the team to understand their task
and the team must feel comfortable to receive problems and question to
each other and the manager, project managers who keep communication
open to create a flexible team that reacts to challenges quickly and exactly.
2. Motivation :
Team dynamics are important to improve motivation in workers. Motivated
workers are exited to contribute more to the project. Unmotivated workers
are not having excitement to contribute they just do their best. For
improving motivation project managers use incentives to motivate their
team to work together well.
Ex : announcing bonus. It leads to encourage team members to support
each other.
3. Innovation :
Innovations are raising from the communication dynamics of the entire
team not just from the rare brilliant individual. If the atmosphere creates
rewards and avoids negative criticism. Team members will feel comfortable
to taking chance of innovations.
4. Efficiency :
Efficiency team dynamics allow each participant to serve their best
capacity. The various skills of the team members complement one another,
leading to speedy, efficient work. Improper team dynamics rise unfriendly
behaviour preventing people, stop cooperation and limiting the entire
teams ability to get the job done.
Ans : PERT stands for Program Evaluation and Review Technique. PERT was
originally developed by U.S Navy in 1950’s. It was developed as a network flow
chart to facilitate the planning and scheduling of the project. PERT is suitable for
research and development programs like aero space projects and other projects
involving new technology.
Advantages :
Disadvantages :
Advantages of CPM :
Disadvantages of CPM :
It operates on the assumption for each activity which may not be true in
real situation.
CPM can become ineffective and difficult to manage, if it is not well defined
and stable.
The allocation of resources cannot be properly monitored.
Using CPM identifying and determined a critical part is difficult when they
are many other similar duration parts in projects.
This very difficult to large process.
CPM is time consuming. It is difficult to estimate the activity completion
time in a multidimensional project.
8. Differences between CPM and PERT?
Ans :
PERT CPM
1. It is an origin of Military 1. It is an origin of Industry
2. It is time based 2. It is cost based
3. It is an event oriented system 3. It is an activity oriented system
4. It is a technique for planning, 4. It is a technique for planning,
scheduling and controlling of scheduling and controlling of
projects whose activities are projects whose activities are well
subject to uncertainity defined
5. It is a probabilistic model
6. Basically does not differentiate 5. It is a deterministic model
critical and non critical activities 6. Differentiate the critical and non
7. It does not deals with process of critical activites
crashing 7. It does deals with process of
8. Used in projects where resources crashing
are always available when 8. Used in projects where overall
required cost is primarily important.
Therefore better utilized
resources