Master of Business Administration-MBA Semester 2

Project Management – MB0049

(Book ID: B1138)
Assignment Set- 1
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Q.1 Comment on the following
a. Importance of DMAIS in project management cycle
Answer:
The Project management Life Cycle
The Project Life Cycle refers to a logical sequence of activities to accomplish the project‟s goals or
objectives. Irrespective of the complexities of the project, a life cycle of a project consists of –
a) Understanding the scope and objectives of the project
b) Formulating and planning various activities
d) Executing the project
d) Monitoring the project and controlling the project resources

b. Knowledge areas of project management.

Project Management Information System (PMIS)
An information system is mainly aimed at providing the management at different levels with information
related to the system of the organisation. It helps in maintaining discipline in the system.
An information system dealing with project management tasks is the project management information
system. It helps in decision making in arriving at optimum allocation of resources. The information
system is based on a database of the organisation. A project management information system also holds
schedule, scope changes, risk assessment and actual results.
The information is communicated to managers at different levels of the organisation depending upon the
need. Let us find how a project management information system is used by different stakeholders.

The four major aspects of a PMIS are –

a. Providing information to the major stakeholders

b. Assisting the team members, stakeholders, managers with necessary information and summary of the
information shared to the higher level managers

c. Assisting the managers in doing what if analyses about project staffing, proposed staffing changes and
total allocation of resources

d. Helping organisational learning by helping the members of the organisation learn about project
management

Usually, the team members, and not the systems administrators of the company, develop a good PMIS.
Organisations tend to allocate such responsibility by rotation among members with a well designed and
structured data entry and analytical format.
Q.2 Write few words on:
a. Project Characteristics
Any project may be considered to have the following characteristics:

a) Resource requirement: During the course of executing the project, it is seen that the resource
requirement increases from start to an intermediate stage of the project. It further increases at a rapid rate
and becomes constant while the project is at its 80 to 95% progress stage. Thereafter the resources
requirement decreases to zero bringing the project to a finish. Refer to the figure 2.2 for a chart.

b) Funds: The requirement of funds for the complete execution of the project also follows the same trend
as that of the resources. Both the requirements are more or less proportional. Refer to the figure 2.2 for a
chart.

c) Probability of completion: The probability of completing the project can be estimated based upon the
normal distribution curve. In the initial stage of the project the probability of completing the project is
low though not zero. It gradually increases and as the project approaches finish the probability of
completing the project tends to become 100%. Refer to the figure 2.2 for a chart.

d) Risk: The risks involved in the project affecting its completion time are high at the initial stages and
low at the later stages of the project. Refer to the figure 2.2 for a chart.

e) Design changes: The project during the course of its progress may be subjected to changes because of
some external factors. The influence of such external factors on the project may result in changes in the
design of the project though not very often. It is observed that such changes, if any, are normally high
during the initial stages of the project and decreases as the project approaches finish.
b. WBS
Work Breakdown Structure (WBS)
The entire process of a project may be considered to be made up on number of sub process placed in
different stage called the Work Breakdown Structure (WBS).
c. PMIS
Project Management Information System (PMIS)
An information system is mainly aimed at providing the management at different levels with information
related to the system of the organisation. It helps in maintaining discipline in the system.
An information system dealing with project management tasks is the project management information
system. It helps in decision making in arriving at optimum allocation of resources. The information
system is based on a database of the organisation. A project management information system also holds
schedule, scope changes, risk assessment and actual results.
The information is communicated to managers at different levels of the organisation depending upon the
need.
d. Project Management strategies-Internal & external
Internal Project Management Strategies
Projects fail for many internal reasons, some of them technical, some of them managerial. However, even
the technical failures can often be traced back to a failure on the part of the project's executive
management to recognise and deal with these inherent managerial risks.

External Project Management Strategies

On some projects, events external to the project sometimes come as a surprise to the project manager and
his team and are therefore seen as obstacles to progress. However, as noted earlier, projects generally
exist only because of that external environment and so it is essential for the project team to recognise that
they must also be responsive to it.

Q.3 What are the various SCMo softwares available in project

management? Explain each in brief.
Supply Chain Monitoring (SCMo)
The intent of this document is to define the structure of the Documentation System, its content, the
method of content generation and to attain common documentation of all standard processes of ODETTE.
The documentation is valid for the SCM group of ODETTE. The Documentation System is intranet based
to provide immediate access to current, up-to-date process documentation.
The system allows users to navigate through graphical structures to relevant documentation and processes
which were created with the ARIS-Toolset.There are various advantages of using such a documentation
system.

The various SCMo softwares available in project management

a) Standard / Best Practices: Documentation system stores and presents standards and best processes to
be adhered to across the industry. This also helps the organisation to secure their correct applications.

b) Central Repository: It also offers a central location of all processes and system related information.
This includes customising documentation to working guidelines.

c) Adaptation: Adaptation is another unique objective achieved through documentation system. They
allow flexible and quick adaptation in case of process changes or enhancement and provide the updated
information immediately.

d) Reference: It also provides easy and quick reference to the documents. They present the standard
processes in the intranet, where users can look up the current processes whenever necessary.

e) Availability: Process documentation system is available at every working location.

Q.4 List the various steps for Risk management. Also explain GDM and
its key features.
Answer:-
Risk Management Plan
Risk management is an important part of project management. Although often overlooked, it is important
to identify as many risks to your project as possible and to be prepared if something bad happens. A
project manager prepares a table of risk management plans to indicate the risk type, probability of each
risk, impact of the risk on the project, risk exposure and a risk mitigation plan for each risk.
Here are some examples of common project risks:
 Time and cost estimates too optimistic
 Customer review and feedback cycle too slow
 Unexpected budget cuts
 Unclear role and responsibilities
 Poor communication resulting in misunderstandings, quality problem and rework
 Lack of resources commitment
 Stakeholders input is not sought or their needs are not properly understood
 Stakeholders changing requirements after the project has started
 Stakeholders adding new requirements after the project has started
GDM?
The Global Delivery Model (GDM) enables an industry or business to plan, design and deliver products
and services to any customer worldwide with speed, accuracy, economy and reliability. GDM enables its
customer to leverage varied locations across the globe that provides optimised value for every component
of delivery. The key features of GDM are shown in figure

a. Standardisation – It includes ingenious design and development of components and features which are
like to be accepted by 90% of world-wide customers. GDM heavily depends on Global Standards of
Design focusing on highly standardised methods and processes of manufacture or development. It adopts
plug-and-socket concepts with minimum adaptable joints or connections.

b. Modularisation – GDM requires product or solution to be split up into smallest possible individual
identifiable entities. These entities will have
limited individual functioning capability but they can become powerful and robust in combination with
other modules.

c. Minimum Customisation – GDM mandates only minimum changes or modifications to suit individual
customers.

d. Maximum Micro Structuring – GDM encourages splitting of the Product Modules further into much
smaller entity identifiable more through characteristics rather than application features. These Microbial
Entities are standardised even across Multiple Modules. Application of these Microbial Entities rest
within multiple Projects or Products or even as add-ons to suit customer needs later.
Q.5 Answer the two parts:
a. Importance of data management in project management-Comment.
Answer:-
Data management consists of conducting activities which facilitate acquiring data, processing it and
distributing it. Acquisition of data is the primary function.
To be useful, data should have three important characteristics – timeliness, sufficiency and relevancy (as
shown in figure ). Management of acquisition lies in ensuring that these are satisfied before they are
stored for processing and decisions taken on the analysis.

There should be data about customers, suppliers, market conditions, new technology, opportunities,
human resources, economic activities, government regulations, political upheavals, all of which affect the
way you function. Most of the data go on changing because the aforesaid sources have uncertainty
inherent in them. So updating data is a very important aspect of their management.Storing what is
relevant in a form that is available to concerned persons is also important. When a project is underway
dataflow from all members of the team will be flowing with the progress of activities. The data may be
about some shortfalls for which the member is seeking instructions. A project manager will have to
analyse them, discover further data from other sources and see how he can use them and take decisions.
Many times he will have to inform and seek sanction from top management.
The management will have to study the impact on the overall organisational goals and strategies and
convey their decisions to the manager for implementation. For example, Bill of Materials is a very
important document in Project Management. It contains details about all materials that go into the project
at various stages and has to be continuously updated as all members of the project depend upon it for
providing materials for their apportioned areas of execution. Since information is shared by all members,
there is an opportunity for utilising some of them when others do not need them. To ascertain availability
at some future point of time, information about orders placed, backlogs, lead times are important for all
the members. A proper MIS will take care of all these aspects. ERP packages too help in integrating data
from all sources and present them to individual members in the way they require. When all these are done
efficiently the project will have no hold ups an assure success.
b. What is the significance of reviewing ROI?
ROI
Return on Investment (ROI) is the calculated benefit that an organisation is projected to receive in return
for investing money, time and resources in a project. Within the context of the review process, the
investment would be in an information system development or enhancement project.
ROI information is used to assess the status of the business viability of the project at key checkpoints
throughout the project’s life-cycle. ROI may include the benefits associated with improved mission
performance, reduced cost, increased quality, speed, or flexibility, and increased customer and employee
satisfaction.
ROI should reflect such risk factors as the project’s technical complexity, the agency’s management
capacity, the likelihood of cost overruns, and the consequences of under or non-performance. Where
appropriate, ROI should reflect actual returns observed through pilot projects and prototypes.
ROI should be quantified in terms of money and should include a calculation of the break-even point
(BEP), which is the time (point in time) when the investment begins to generate a positive return. ROI
should be re-calculated at every major checkpoint of a project to see if the BEP is still on schedule, based
on project spending and accomplishments to date.
If the project is behind schedule or over budget, the BEP may move out in time; if the project is ahead of
schedule or under budget the BEP may occur earlier. In either case, the information is important for
decision-making based on the value of the investment throughout the project life-cycle. Any project that
has developed a business case is expected to refresh the ROI at each key project decision point (that is,
stage exit) or at least yearly.

Q.6 XYZ Company implements CMMI level-03. To make further

changes it decides on starting a new division in the organization. It
decides to advance the existing project management. What are the steps
to be followed by the organization to drive project management to a new
horizon?