Q.1 Explain the following a. Project Vs. Program Vs.

Portfolio ans: Businesses use various terms to represent a range of project management services. Unfortunately these terms are often used interchangeably and inconsistently. This article attempts to clear the confusion and establish a common definition. Project Management Hopefully we all know what a project is. PMBOK defines a project as a temporary endeavor undertaken to create a unique product, service or result. In my terms, a project has a specific start and end date with a clearly defined deliverable produced. Project management is the application of knowledge, skill, tools, techniques and processes to effectively manage a team towards this final deliverable. In real life this means the management of a specific project (e.g. implementing a new accounting system). This project will start on a specific date and end according to our project plan with the delivery of your new accounting system. Pretty simple something we can all understand. Program Management This is where the confusion seems to start. A program is a group of related projects managed together to obtain specific benefits and controls that would likely not occur if these projects were managed individually. While project management focuses on delivering the specific objectives of the project program management is focused on achieving the strategic objectives and benefits of the integrated program. The implementation of an Enterprise Resource Planning (ERP) system is often performed as a program. The ERP system will include several specific individual projects (i.e. Finance, Purchasing, Materials Management, etc.). Each of these specific projects should be run by a project manager using a formal project management approach. The overall grouping of these related projects will be run by a Program Manager. The Program Manager will be responsible for the rolling up of information from each of the projects and ensuring the overall program is driving towards achieving the business objectives. This requires each of the project managers to manage their individual projects in a fashion that easily integrates into the overall program plan (easily said more challenging in actual practice). The Program Manager is also responsible for tracking and analyzing across the entire program. This involves considering risk management strategies not only for each individual project but also analyzing the collective risk across the program. The same goes for quality management, schedule management, cost management, communications, etc. Portfolio Management A portfolio is a collection of projects or programs grouped together to facilitate effective management of efforts to meet

strategic business objectives. These projects or programs are not necessarily interdependent or directly related. Portfolio management is the centralized management of multiple projects, programs and possibly portfolios. This typically includes identifying, prioritizing and authorizing projects and programs to achieve specific strategic business objectives. The group of projects and programs within a specific business division could be an example of a portfolio. This might include the implementation of a Customer Relationship Management (CRM) program Sales Data Warehouse program Commission Tracking project and a project to launch a new product within the Sales & Marketing Division. In this case the Portfolio Manager is managing this broad range of somewhat unrelated programs and projects towards a specific set of strategic divisional business objectives. The Portfolio Manager will become very involved in the frontend activities of identifying, prioritizing and initiating projects and programs. All of these activities will be within the context of achieving the strategic business objectives. The Portfolio Manager will also track these projects/programs to ensure they continue to deliver towards the expected strategic outcome in terms of quality, cost, schedule and scope. They will also be responsible for analyzing and tracking project management elements across the entire portfolio looking for ways to leverage economies of scale, reduce risk and improve the probability of successfully delivering expected business results. Different Roles / Different Skill Sets As you can see in the above descriptions, the roles of a Project Manager, Program Manager and Portfolio Manager have similarities but are fundamentally different. Many organizations blend these roles together and treat them all as basic project management. While this might seem like a way to reduce some overhead and bureaucracy, in reality its a recipe for failure. An excellent project manager may not necessarily be the best program manager or be capable of running your overall portfolio. Organizations successfully delivering projects and programs that produce strategic business results are those that tend to formalize these three distinct roles. They use the methodologies, processes, tools and resources most appropriate for the function being performed.

Project work and Traditional functional work

Q.2 Compare Operation and project procurement. Also list and explain the project procurement process. Project Procurement is where the decision to procure and the funding to pay the invoice comes from a project budget. Operational Procurement is where decision to procure and the funding comes from the general budget as the commodities or services are required for the overall operation. The method of making the procurement decision can be identical in both cases.

OLD ANSWER project procurement is directly we search the material from the vendors and get the price of such lower price according to our project buget and the operation procurement is to lead the use of the material in accordingly. project procurement is directly we search the material from the vendors and get the price of such lower price according to our project buget and the operation procurement is to lead the use of the material in accordingly.

Project Procurement Management includes the processes required to acquire goods and services from outside the performing organization. For simplicity, goods and services, whether one or many, will generally be referred to as a product. Figure 121 provides an overview of the following major processes: 12.1 Procurement Planningdetermining what to procure and when. 12.2 Solicitation Planningdocumenting product requirements and identifying potential sources. 12.3 Solicitationobtaining quotations, bids, offers, or proposals as appropriate. 12.4 Source Selectionchoosing from among potential sellers. 12.5 Contract Administrationmanaging the relationship with the seller. 12.6 Contract Close-outcompletion and settlement of the contract, including resolution of any open items. These processes interact with each other and with the processes in the other knowledge areas as well. Each process may involve effort from one or more individuals or groups of individuals based on the needs of the project. Although the processes are presented here as discrete elements with well-defined interfaces, in practice they may overlap and interact in ways not detailed here. Process interactions are discussed in detail in Chapter 3, Project Management Processes. Project Procurement Management is discussed from the perspective of the buyer in the buyer-seller relationship. The buyer-seller relationship can exist at many levels on one project. Depending on the application area, the seller may be called a contractor, a vendor, or a supplier. The seller will typically manage their work as a project. In such cases: The buyer becomes the customer and is thus a key stakeholder for the seller. The sellers project management team must be concerned with all the processes of project management, not just with those of this knowledge area.

 The terms and conditions of the contract become a key input to many of the sellers processes. The contract may actually contain the input (e.g., major deliverables, key milestones, cost objectives) or it may limit the project teams options (e.g., buyer approval of staffing decisions is often required on design projects). This chapter assumes that the seller is external to the performing organization. Most of the discussion, however, is equally applicable to formal agreements entered into with other units of the performing organization. When informal agreements are involved, the processes described in Project Human Resource Management, Chapter 9, and Project Communications Management, Chapter 10, are more likely to apply

Q.3 Describe the role of project managers in Human resource management and communication management. Project Communication and Human Resource Management Overview Communication is a very important part of project management but is an aspect that is often undervalued and overlooked until a problem occurs. Many people rush though the initial communication aspects of projects far too quickly, which results in misunderstandings and confusion between the various project stakeholders, particularly in complex projects. It is quite useful to think of project management as being a lot like people management; and this is why communication is important. A good project manager will, first and foremost, have first-rate communication skills and work with the project team to deal with the project's salient issues. Session Focus This workshop engages participants in discussions, exercises and case examples to explore the various communication channels within a project team and between various stakeholders impacted by a project. It will include issues around the management of the performance of all individuals involved in ensuring project success. Who Should Attend? Project Managers, Project Leaders, Project Facilitators and Project Sponsors responsible for managing project resources as well as the on-going communication requirements of a project. What You Will Learn Manage the performance of each team member and integrate individual performance into the organization's Performance Management System to create total job performance assessments. Establish the communication process between all stakeholders. Understand the barriers to effective communication.

Learn effective listening skills. Explore some reasons for difficulties in communication as well as about defensive and supportive communication. Develop effective interpersonal communication by understanding types of communication processes. Create reports to meet the needs of the "customer" audience. Establish an on-going process between project managers, functional managers and their employees to communicate expectations, identify needs, support good performance and assess future potential. Problem-solve major project meeting issues so that problems can be dealt with consistently throughout the project. Understand the role of leadership in ensuring successful implementation of the project's goals and objectives. Learn how to structure different types of project meetings and how to permit members to comfortably express dissent and achieve conflict resolution.

Ishikawa diagrams (also called fishbone diagrams, or herringbone diagrams , cause-and-effect diagrams, or Fishikawa) are causal diagrams that show the causes of a certain event -- created by Kaoru Ishikawa (1990).[1] Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped into major categories to identify these sources of variation. The categories typically include: People: Anyone involved with the process Methods: How the process is performed and the specific requirements for doing it, such as policies, procedures, rules, regulations and laws Machines: Any equipment, computers, tools etc. required to accomplish the job Materials: Raw materials, parts, pens, paper, etc. used to produce the final product Measurements: Data generated from the process that are used to evaluate its quality Environment: The conditions, such as location, time, temperature, and culture in which the process operates

A flowchart is a type of diagram that represents an algorithm or process, showing the steps as boxes of various kinds, and their order by connecting these with arrows. This diagrammatic representation can give a step-by-step solution to a given problem. Process operations are represented in these boxes, and arrows connecting them represent flow of control. Data flows are not typically represented in a flowchart, in contrast with data flow diagrams; rather, they are implied by the sequencing of operations. Flowcharts are used in analyzing, designing, documenting or managing a process or program in various fields

A Pareto chart, named after Vilfredo Pareto, is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line. The left vertical axis is the frequency of occurrence, but it can alternatively represent cost or another important unit of measure. The right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. Because the reasons are in decreasing order, the cumulative function is a concave function. To take the example above, in order to lower the amount of late arriving by 80%, it is sufficient to solve the first three issues.

The purpose of the Pareto chart is to highlight the most important among a (typically large) set of factors. In quality control, it often represents the most common sources of defects, the highest occurring type of defect, or the most frequent reasons for customer complaints, and so on. Wilkinson (2006) devised an algorithm for producing statistically-based acceptance limits (similar to confidence intervals) for each bar in the Pareto chart. These charts can be generated by simple spreadsheet programs, such as OpenOffice.org Calc and Microsoft Excel and specialized statistical software tools as well as online quality charts generators. The Pareto chart is one of the seven basic tools of quality control.

SCATTER DIAGRAM What it is: A scatter diagram is a tool for analyzing relationships between two variables. One variable is plotted on the horizontal axis and the other is plotted on the vertical axis. The pattern of their intersecting points can graphically show relationship patterns. Most often a scatter diagram is used to prove or disprove cause-and-effect relationships. While the diagram shows relationships, it does not by itself prove that one variable causes the other. In addition to showing possible causeandeffect relationships, a scatter diagram can show that two variables are from a common cause

that is unknown or that one variable can be used as a surrogate for the other. When to use it: Use a scatter diagram to examine theories about cause-and-effect relationships and to search for root causes of an identified problem. Use a scatter diagram to

Q.6 List the benefits of WBS? Need for risk management in an organisation-comment The WBS provides the project manager and team with the necessary framework of tasks going forward to create detailed cost estimates and also to provide major input to project task scheduling at the most detailed and accurate level possible. By going through the WBS motions, the project manager and team will have a pretty good idea whether or not theyve captured all the necessary tasks, based on the project requirements, that are going to need to happen to get the job done. Four key benefits to developing a WBS are: #1 WBS forces the team to create detailed steps The WBS forces the project manager, team members, and customers to delineate the steps required to build and deliver the product or service. The exercise alone encourages a dialogue that will help clarify ambiguities, bring out assumptions, narrow the scope of the project, and raise critical issues early on. #2 WBS lays the groundwork for schedule and budget It lays the groundwork for developing an effective schedule and good budget plans. A welldefined WBS enables resources to be allocated to specific tasks, helps in generating a meaningful schedule, and makes calculating a reliable budget easier. #3 WBS creates accountability The level of detail in a WBS makes it easier to hold people accountable for completing their tasks. With a defined WBS, people cannot hide under the cover of broadness. A well-defined task can be assigned to a specific individual, who is then responsible for its completion. #4 WBS creation breeds commitment The process of developing and completing a WBS breeds excitement and commitment. Although the project manager will often develop the high-level WBS, he will seek the participation of his core team to flesh out the extreme detail of the WBS. This participation will spark involvement in the project.

Benefits to managing risk Risk management provides a clear and structured approach to identifying risks. Having a clear understanding of all risks allows an organization to measure and prioritize them and take the appropriate actions to reduce losses. Risk management has other benefits for an organization, including: Saving resources: Time, assets, income, property and people are all valuable resources that can be saved if fewer claims occur. Protecting the reputation and public image of the organization. Preventing or reducing legal liability and increasing the stability of operations.

Protecting people from harm. Protecting the environment. Enhancing the ability to prepare for various circumstances. Reducing liabilities. Assisting in clearly defining insurance needs. An effective risk management practice does not eliminate risks. However, having an effective and operational risk management practice shows an insurer that your organization is committed to loss reduction or prevention. It makes your organization a better risk to insure. Why manage your risk? An organization should have a risk management strategy because: People are now more likely to sue. Taking the steps to reduce injuries could help in defending against a claim. Courts are often sympathetic to injured claimants and give them the benefit of the doubt. Organizations and individuals are held to very high standards of care. People are more aware of the level of service to expect, and the recourse they can take if they have been wronged. Organizations are being held liable for the actions of their employees/volunteers. Organizations are perceived as having a lot of assets and/or high insurance policy limits.

Organization Breakdown Structure (OBS) Term Definition Organization Breakdown Structure (also known as Organizational Breakdown Structure) or OBS is a hierarchical model describing the established organizational framework for project planning, resource management, time and expense tracking, cost allocation, revenue/profit reporting, and work management. Work Breakdown Structure (WBS) captures all elements of projects in an organized fashion. Breaking down large, complex projects into smaller project pieces provides a better framework for organizing and managing current and future projects. WBS facilitates resource allocation, task assignment, measurement and control of project cost and billing. The WBS is utilized at the beginning of the project to define scope, identify cost centers and is the starting point to developing project plans/Gantt charts. The Organization Breakdown Structure groups together similar project activities or work packages and relates them to the organizations structure. OBS is used to define the responsibilities for project management, cost reporting, billing, budgeting and project control. The OBS provides an organizational rather than a task-based perspective of the project. The

hierarchical structure of the OBS allows the aggregation (rollup) of project information to higher levels. When project responsibilities are defined and work is assigned, the OBS and WBS are connected providing the possibility for powerful analytics to measure project and workforce performance at a very high level (example business unit performance) or down to the details (example user work on a task). To develop an Organization Breakdown Structure: 1. Draw of the entire organization as a hierarchy 2. Define all departments and project teams. 3. Specify functional (where cost for the work the user does is allocated to) and approval (who approves the work the user performs and any leave time approvals) groups for every user. The following is a sample OBS:

Cost Breakdown Structure is the breakdown of a project into cost elements. This breakdown is typically in line with the Work Breakdown Structure (WBS); indicating "where" cost are allocated. The breakdown can sometimes be in line with the company's Chart of Accounts, indicating "what" the costs are for. In theory, cost could be in line with "who" is spending the cost, "when" costs are being spent, etc.

You're right, the Cost Breakdown Structure or CBS (no, not the network :) ) is very similar to the WBS. Instead of breaking down tasks your break costs. Let's assume you're working on a construction project. Your main element in the CBS is "Project Costs" So you'll have something:

1. Project Costs 1.1 Labor 1.1.1 Management wages 1.1.2 Workers' wages 1.2 Material 1.2.1 Concrete 1.2.2 Sand 1.2.3 Iron 1.2.4 Copper 1.2.5 Paint 1.2.6 HVAC equipment 1.3 Logistics 1.3.1 Acquiring site 1.3.2 Transportation 1.3.3 Water and electricity bills 1.3.4 Machine renting 1.3.4.1 Drilling machines 1.3.4.2 Trucks

Fixed-Price or Lump Sum Contract The term firm fixed price or lump sum contract refers specifically to a type or variety of fixed price contract where the buyer or purchaser pays the seller or provider a fixed total amount for a very well-defined product, however there is the allowance within these for a variance in the event there are incentives attained through project incentives achieved or targets met. There are benefits of this type of contract to both the buyer and the seller, and these are similar to those for the fixed price incentive fee contract. To the seller, it is beneficial because it typically allows for the seller or provider to charge a reasonable base fee, yet also allows for exceptional performance to be rewarded further. However, for the buyer that also provides a very tangible benefit. The buyer typically will be paying a very reasonable base fee up front, but there is of course the chance that the price will go up in the future if certain conditions are met.

Time & material contract

A contract providing for the procurement of supplies or services on the basis of direct labor hours at specified fixed hourly rates (which rates include direct and indirect labor, overhead, and profit), and material at cost.

A time and materials contract is a contract that provides for acquiring supplies or services on the basis of (1) direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit and (2) materials at cost, including, if appropriate, material handling costs as part of material costs