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55640767 Assignment PM0010 Introduction to Project Management Set 2

55640767 Assignment PM0010 Introduction to Project Management Set 2

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Sikkim Manipal University

- MBA -

PM0010 - Introduction to Project Management

Semester: 3 - Assignment Set: 2 Question 1: List and explain in brief the inputs to the following processes. a) Acquiring a project team b) Communication plan Answer: a) Inputs to the Acquiring a project team: The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organizations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated. Important factors that are considered during the process of acquiring the team are:  The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project. Failure to obtain the essential Human Resources for the project will affect project agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation.

The inputs for acquiring a project team are:  Enterprise environmental factors: Team members are available from internal and external sources. When selecting the team members, it is important to evaluate the following factors:
• • • • •

Availability Ability Experience Interests Costs the documented policies,

 Assets of organizational process: Assets of organizational process covers reviewing procedures and guidelines governing staff assignments.

 Roles and responsibilities: The roles and responsibilities document should be assessed to determine a team member’s roles, responsibilities, skills, levels of authority, and competencies.

Project organization charts: Reg. No. 521063004 Page 1 of 17

Bhupinder Singh

The communication goals. managers and project stakeholders on a regular basis. effort and resources that are required to perform these planned communication activities are the part of the Project Management. to the right people at the right time. It saves creation of additional project documentations. The key features influencing the communication plan includes Project Management team structure. Communication plan helps to communicate the right information.Sikkim Manipal University . The best time for planning communication is at the start up phase of the project life cycle. The advantages of planning communication are:    It facilitates team development.Assignment Set: 2 The project organization chart is an input/output device that serves a valuable role for the Project Management team and team leader in the process of keeping a thorough and careful organizational record of the project’s processes.  Event driven communication: The event driven or one-time communication includes sessions discussing critical issues.  Staffing management plan: The staffing management plan with the project schedule is reviewed to ascertain when team members are needed. The various factors such as the time. strategies and stakeholders are described in the communication plan. scope of the project and feedback from the stakeholders. training schedules and wrap up sessions. project team meetings and monthly status updates about the project. These types of communication include regular status reports. It ensures that the plan includes the tasks needed to communicate effectively throughout the project cycle. b) Inputs to the Communication plan: Planning communication is the process of ascertaining the information and communication needs of the project stakeholders. stakeholder meetings. There are two ways of planning communication:  Constant communication: Constant or regular communication involves communicating to the project team.MBA - PM0010 . No. 521063004 Page 2 of 17 .Introduction to Project Management Semester: 3 . The constant communication also includes the regular stakeholder report updates. It is a schedule of communication events used to make sure that the project stakeholders are kept properly informed. The inputs for planning communication are:  Stakeholder register: Bhupinder Singh Reg. It makes it easier to update stakeholders.

assessment and classification documents. industry standards are considered as inputs for the planning communication process. where 30 Nobel Prize winners (scientists. Another way to look at the human levels of thinking is the mind mapping concept. Jordan. This was used in June 2008 at Petra.Sikkim Manipal University . Some group creativity techniques to generate a large number of ideas to solve problem are discussed below. enabling the mind to track out ideas which normally lie in obscurity on the edge of thinking. A project idea is conceived from a search for promising project ideas. No. Two of the many conclusions of the brainstorming session were elimination of child poverty worldwide is essential to move forward with educational development. Bhupinder Singh Reg. The lessons learned and documented information is important as it gives an idea about the issues resolved.Introduction to Project Management Semester: 3 . often untapped potential of the mind.MBA - PM0010 .  Organizational process aspects: All organizational process assets are applied while planning communications. 521063004 Page 3 of 17 . Mind mapping exercise is aimed at increasing mental energy to utilize creative thinking skills. academics. Following example is taken from the software Buzan‟s iMind Map which was chosen for the brainstorming session aimed at planning for the future of young and developing minds. Certain broad considerations and guidelines are applied to help generate of project ideas. entrepreneurs.  Enterprise environmental factors: All environmental factors such as organizational culture. and humanitarians) participated in the conference focused on the theme „Reaching for New Economic. form and use of colors and images to convey a thought or idea – a graphic technique for stimulating creativity and unleashing the truth. Scientific and Educational horizons”. new and innovative learning tools are the foundation for a positive future for the next generation. The software replicates the organic shape.  Question 2: Write short notes on the following idea generation technique: a) Mind mapping b) Delphi technique c) Brainstorming d) Nominal Group technique Answer: a) Mind mapping: Generation of ideas takes place in any hierarchical level of a firm. Stakeholder management strategy: Stakeholder management strategy describes the method to gain support and reduce dissatisfaction from the stakeholders throughout the entire project life cycle.Assignment Set: 2 Stakeholder records consist of stakeholder identification.

All participants are then to accept ownership of the new thesis and support it. In recent times. all present their opinion or views on a given subject.MBA - PM0010 . Some group creativity techniques to generate a large number of ideas to solve problem are discussed below. changing their own views to align with the new thesis. The rules followed during brainstorming are as follows:     No criticism of ideas Go for large quantity of ideas Build on each others ideas Encourage wild ideas b) Brainstorming consists of a facilitator who composes the brainstorming panel and an idea collector to record the suggested ideas. A project idea is conceived from a search for promising project ideas. All spontaneous ideas from a group are gathered to find a solution for a specific problem. In thesis and antithesis. Certain broad considerations and guidelines are applied to help generate of project ideas. interactive. This often makes group brainstorming sessions enjoyable experiences. This also facilitates in bringing team Bhupinder Singh Reg. however. and synthesis. the creativity and experience of another participant is brought out. Usually. The participants revise their earlier answers by knowing the responses of other members of the group. The process stops after a predetermined stop-criterion like number of rounds or achievement of consensus.Introduction to Project Management Semester: 3 . antithesis. When a participant exhausts all ideas. The facilitator. and identifies common and conflicting viewpoints. After each round. It is based on the principle that forecasts from an unstructured group of individuals are comparatively inaccurate than forecasts from a structure group of experts. Through a continual process of evolution. establishing views and opposing views. The Delphi Technique is based on the Hegelian Principle of achieving Oneness of Mind through a three step process of thesis. participants maintain secrecy even after completion of the final report. The Delphi Technique was originally conceived as a way to obtain the opinion of experts without necessarily bringing them together face to face. No. a facilitator provides an overall summary of the experts‟ forecasts from the previous round as well as the reasons they provided for their judgments. it has taken on an all new meaning and purpose. 521063004 Page 4 of 17 . In synthesis. who is the coordinator of the Delphi method. collects and analyses responses. forecasting method that relies on a panel whose members are carefully selected independent experts. This is a systematic. Some of the leading questions that a facilitator asks during the session are “Can we combine these ideas?” and “How about looking from another perspective?” The idea collector also numbers each idea for future reference. opposites are brought together to form the new thesis. c) Brainstorming: This method aims to give people freedom of mind and action to create and reveal new ideas. Oneness of Mind will supposedly occur.Assignment Set: 2 Delphi technique: Generation of ideas takes place in any hierarchical level of a firm. sends out the questionnaire. The experts answer prepared questionnaires in two or more rounds. Sometimes the facilitator is also the idea collector.Sikkim Manipal University .

Brainstorming is used to generate ideas. This technique encourages all participants to have an equal say in the session. No. The process of voting can be simply by show of hands. The strategy is more effective when the brainstorming group evaluates and selects a solution to the problem proposed. 521063004 Page 5 of 17 . Nominal Group Technique is just one group process for achieving consensus. some group members think better in silence. the organization offers incentives so that participants maintain their brainstorming efforts. The top ranked ideas are sent back to the group or subgroups for further brainstorming.Introduction to Project Management Semester: 3 . Some instances where brainstorming is used are when there is a need to look at new opportunities. Brainstorming is a lateral thinking process. with each group member participating equally in evaluation. 1 to 10. and then ranking them on a scale of. the group does not easily generate quantities of ideas. Individual brainstorming is effective in generating many ideas. Answer: Sources of Project Financing: Bhupinder Singh Reg. Sometimes the group revaluates the ideas that were previously dropped. d) Nominal Group technique: Nominal group technique (NGT) is a structured method for group brainstorming that encourages contributions from everyone. there is concern about some members not participating. Question 3: Describe in brief the various sources of project financing. It is employed particularly when new ways of thinking are called for and when there is a need to break out of old established patterns of thinking.MBA - PM0010 . The benefit of the technique is that the group shares and discusses all issues before evaluation. but not at developing the ideas. when there is a need to improve the service offered. say.Sikkim Manipal University . usually without face-to-face meetings. The evaluation works with each participant "nominating" his or her priority issues. Another group consensus technique is the Delphi Method. the issue is controversial or there is heated conflict. Each subgroup comes back to the whole group for ranking the listed ideas. This method requires a trained facilitator. In either case. Participants are asked to write their ideas anonymously. or when existing approaches are just not giving the right results. all or some group members are new to the team. which is used among groups of experts to make complex decisions. When to use Nominal Group Technique:  When  When  When  When  When  When some group members are much more vocal than others.Assignment Set: 2 members together. The moderator collects the ideas and each idea is voted on by the group. for others to evaluate and select.

and analytical techniques to validate the project's feasibility. Bhupinder Singh Reg. Developmental lenders. hence. Following are some sources of capital used in project financing  Equity: Equity is often raised in the stock markets and from specialized funds. including Euro Disneyland and the Euro Tunnel. and how to determine the project's borrowing capacity. Lender and investor interest will vary depending on the goals and risks related to the financing.MBA - PM0010 . In assembling project financing. to raise questions for future research. Equity can be raised in the domestic capital markets as well as in the international capital markets. project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. who fund the project sponsor at very risky stage of the project. Raising finance depends upon the nature and the structure of the project. and.Introduction to Project Management Semester: 3 . to highlight the advantages and disadvantages of project finance and . design the financing mix. tax and accounting considerations. it has long been used to fund large-scale natural resource projects. how to prepare the financial plan. Delhi Metro Rail Corporation is form by the joint venture of Government of India (GOI) and Government of National Capital Territory of Delhi (GNCTD). public/private infrastructure partnerships. desire some equity rewards for the risk taken. public/private financing structures. assess the risks.  Developmental loan: A developmental loan is debt financing provided during a projects developmental period to a sponsor with insufficient resources.Both GOI and GNCTD holds 50-50% equity. Project Financing is a unique financing technique that has been used on many high-profile corporate projects. Employing a carefully engineered financing mix.Sikkim Manipal University . Sources of Finance: Just as financial instruments range from debt to equity and hybrids such as mezzanine finance. from pipelines and refineries to electric-generating facilities and hydroelectric projects. all available financing sources should be evaluated. In addition. Often bandied about in trade journals and industry conferences as a new financing technique. A knowledge-base is required regarding the design of contractual arrangements to support project financing. the technique is enjoying renewed attention. project finance can raise capital from a range of sources. issues for the host government legislative provisions. credit requirements of lenders. to explain the myriad of risks involved in these transactions. 521063004 Page 6 of 17 . Project Financing discipline includes understanding the rationale for project financing. one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. project finance is actually a centuries-old financing method that predates corporate finance. and raise the funds. Equity is generally more expensive than debt financing. it is not unusual for developmental lender to secure rights to provide permanent financing for the project as part of the development financing agreement. The purposes of this note are to contrast project finance with traditional corporate financing techniques. bankers and journalists to describe a range of financing arrangements. how to prepare cash flow projections and use them to measure expected rates of return. This 50% each of GOI and GNCTD equity holds only 30% of the project cost.Assignment Set: 2 The term ‘project finance’ is used loosely by academics. However with the explosive growth in privately financed infrastructure projects in the developing world. No. Increasingly. to propose that a single structure underlies every project finance transaction.

 World Bank group financing sources: Multilateral institutions such as the World Bank provide finds to infrastructure development projects worldwide. The prime reason is that it is cheaper than equity financing. These loans usually format least 50% of the capital needs.g. also called mezzanine financing or quasi-equity.Sikkim Manipal University . asset funds or income funds. venture capital provider and money market funds. The scope and extent of involvement of such institutions in financing project is very limited. pension plans. term. long. are senior to equity capital but junior to senior debt and secured debt. The loan is arranged and structured by a lead arranger and is managed by an agent bank. as opposed to perfected security arrangement. Secured loans are loans where the assets securing the loan have value as collateral. They are usually used to cover over-runs during the construction stage.  Syndicated loan: A syndicated loan is a loan that is provided to the borrower by two or more banks and is governed by a single loan agreement.MBA - PM0010 . Unsecured loans basically depend on the borrower’s general creditworthiness. World banks provide funding through its (a) loan program. unsecured and may be considered as equity by senior lenders for purposes of calculating debt to equity ratio.Recently operational planning for Phase III is going on. investment management companies.  Institutional lenders: These include life insurance companies. These entities can be a substantial source of funding. Such assets are marketable and can readily be converted into cash. 521063004 Page 7 of 17 . Subordinated debt usually has the advantage of being fixed rate. (b) guarantee program and (c) indirect support for projects.  Host government: Bhupinder Singh Reg. They fall into two categories secured and unsecured loans. Nearly 60% of total estimated cost of Delhi metro project is finance by JBIC (Japan Bank of International Cooperation). E. JBIC appraisal team has given clearance for their next tranche for the Phase III.  Senior debt: Commercial banks and institutional lenders are an obvious choice for financing needs of a project. Bond financing is similar to commercial loan structure.Assignment Set: 2  Subordinated loan: Subordinated loans. profit-sharing plans and charitable foundations. The best part about a syndicated loan is that the funding can be gathered from the international lending market.  Investment funds: Investment funds mobilize private sector funds for investment in infrastructure projects.Introduction to Project Management Semester: 3 . except that the lenders are investors purchasing the borrowers bonds in a private placement or through the public debt market. which means such a lending can be used for projects which need enormous amounts of capital. No. Senior debt of project finance usually constitutes the largest portion of the financing.  Bonds: In recent years the use of the bond markets as a vehicle for obtaining debt funds has increased.

They are: 1.” Components of Research Design: It is important to be familiar with the important concepts relating to research design. if demand depends upon price. For example. then demand is a dependent variable.Sikkim Manipal University . Even if he could. like height. weight. It specifies the objectives of the study. whereas the number of children is a non-continuous variable. However. while price is the independent variable. and the variables that cause the changes in the dependent variable are known as the independent or explanatory or exogenous variables. Question 4: Explain the important concepts in Research design? Answer: The research designer understandably cannot hold all his decisions in his head. Qualitative variables are not quantifiable in the strictest sense of objectivity.Introduction to Project Management Semester: 3 . etc. “A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. No.Assignment Set: 2 The host government can also be a direct or indirect source of financing. they are also known as „discrete variable. The concept may assume different quantitative values. But. In statistical term. then demand also depends upon them in addition to the own price. It constitutes the blue print for the plan is the overall scheme or program of research. all variables need not be continuous. age is a continuous variable. 2. This is more evident in the emerging markets where the governments are usually eager to fund and support infrastructure projects. more variables determine demand. he would have difficulty in understanding how these are inter-related. When changes in one variable depends upon the changes in one or more other variables. 521063004 Page 8 of 17 . Extraneous variable: Bhupinder Singh Reg. For example. Values that can be expressed only in integer values are called” non-continuous variables. it is known as a dependent or endogenous variable. he records his decisions on paper or record disc by using relevant symbols or concepts. Therefore. GOI and GNCTD have financed approximately 30% of project incurred cost. the qualitative phenomena may also be quantified in terms of the presence or absence of the attribute considered. demand is a dependent variable which is determined by the independent variables like own price. Such a symbolic construction may be called the research design or model. Jahoda and Destsch and Cook describe. A research design is a logical and systematic plan prepared for directing a research study. income. the methodology and techniques to be adopted for achieving the objectives. Then. Dependent and Independent variables: A magnitude that varies is known as a variable. A research design is the program that guides the investigator in the process of collecting. like income and prices of substitute commodity. They provide indirect support through tax incentives.MBA - PM0010 . And if. analysing and interpreting observations. Phenomena that assume different values quantitatively even in decimal points are known as “continuous variables. income and price of substitute. It provides a systematic plan of procedure for the researcher to follow elltiz.

The research hypothesis is a predictive statement which relates a dependent variable and an independent variable. 3. On the other hand. it would be known as an extraneous variable. it is known as „control group. For instance.  Research hypothesis: When a prediction or a hypothesized relationship is tested by adopting scientific methods. a research hypothesis must consist of at least one dependent variable and one independent variable.MBA - PM0010 . No. However. In this context. it is known as research hypothesis. if a research study attempts to examine through an experiment regarding the comparative impacts of Bhupinder Singh Reg. The term control is used in experimental research to reflect the restrain in experimental conditions. intelligence may also influence the school performance. the Group A can be called a control group and the Group B an experimental one.Introduction to Project Management Semester: 3 . the two treatments are the parents with regular earnings and those with no regular earnings. when the group is exposed to certain new or special condition. A research design may include only the experimental group or the both experimental and control groups together. in which case the latter is an independent variable and the former. Technically.Sikkim Manipal University . when the dependent variable is not free from its effects. assume that a researcher wants to test the hypothesis that there is relationship between children’s school performance and their self-concepts. Whereas. the relationships that are assumed but not be tested are predictive statements that are not to be objectively verified are not classified as research hypothesis. it is known as an „experimental group. 4. then both the groups may be called as „experimental groups. Confounded relationship: The relationship between dependent and independent variables is said to be confounded by an extraneous variable. a research study should always be framed in such a manner that the dependent variable completely influences the change in the independent variable and any other extraneous variable or variables. If both the groups A and B are exposed to some special feature. Generally.  Treatments: Treatments are referred to the different conditions to which the experimental and control groups are subject to. the term control is used when a researcher designs the study in such a manner that it minimizes the effects of extraneous independent variables. since it is not directly related to the purpose of the study undertaken by the researcher. In the example considered. The influence caused by the extraneous variable on the dependent variable is technically called as an „experimental errors Therefore. In the aforementioned example. 521063004 Page 9 of 17 . the dependent variable. Control: One of the most important features of a good research design is to minimize the effect of extraneous variable.  Experimental and control groups: When a group is exposed to usual conditions in an experimental hypothesis-testing research. Likewise.Assignment Set: 2 The independent variables which are not directly related to the purpose of the study but affect the dependent variable are known as extraneous variables.

experiment may be conducted to examine the yield of a certain new variety of rice crop developed. Hopefully we all know what a project is. While project management focuses on delivering the specific objectives of the project – program management is Portfolio A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. then the experiment is known as a comparative experiment. It is worth mentioning here that such experimental units must be selected with great caution. PMBOK defines a project as “a temporary endeavour undertaken to create a unique product.Introduction to Project Management Semester: 3 . Further. service. service or result”. Portfolio b) Project work and Traditional functional work Answer: a) Project Vs. Project management is the application of knowledge. In my terms. Portfolio management is the centralized management of Project A temporary endeavor undertaken to create a unique product.Assignment Set: 2 three different types of fertilizers on the yield of rice crop. For instance. 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. These projects or programs are not necessarily interdependent or directly related. Bhupinder Singh Reg. Program Vs. then it is known as absolute experiment. characteristics or the blocks.Sikkim Manipal University .  Experiment unit: Experimental units refer to the predetermined plots. a project has a specific start and end date with a clearly defined deliverable produced. Meanwhile. skill. Experiments may be categorized into two types namely.MBA - PM0010 . to which the different treatments are applied. or result. tools. then the three types of fertilizers would be treated as the three treatments. A portfolio is a collection of projects or programs grouped together to facilitate effective management of efforts to meet strategic business objectives. if the researcher wishes to determine the impact of chemical fertilizer as compared to the impact of bio-fertilizer. Program Vs. 521063004 Page 10 of 17 . absolute experiment and comparative experiment. No. Portfolio: Program A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. If a researcher wishes to determine the impact of a chemical fertilizer on the yield of a particular variety of rice crop. This is where the confusion seems to start.  Experiment: An experiment refers to the process of verifying the truth of a statistical hypothesis relating to a given research problem. Question 5: Explain the following: a) Project Vs.

Finance. Purchasing.Sikkim Manipal University . programs and possibly portfolios. No. 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. implementing a new accounting system). cost management. schedule management. This involves considering risk management strategies not only for each individual project but also analysing the ‘collective’ risk across the program. And a project to launch a new product within the Sales & Marketing Division. The same goes for quality management. multiple projects. The Portfolio Manager will become very involved in the frontend activities of identifying. The overall grouping of these related projects will be run by a Program Manager. They will also be responsible for analysing and tracking project Page 11 of 17 Bhupinder Singh Reg.e. The group of projects and programs within a specific business division could be an example of a portfolio. The Portfolio Manager will also track these projects/programs to ensure they continue to deliver towards the expected strategic outcome in terms of quality. 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). In real life this means the management of a specific project (e. The Program Manager is also responsible for tracking and analysing across the entire program. focused on achieving the strategic objectives and benefits of the integrated program.). prioritizing and authorizing projects and programs to achieve specific strategic business objectives.Assignment Set: 2 techniques and processes to effectively manage a team towards this final deliverable.Introduction to Project Management Semester: 3 . The ERP system will include several specific individual projects (i. prioritizing and initiating projects and programs. The implementation of an Enterprise Resource Planning (ERP) system is often performed as a program. Sales Data Warehouse program.MBA - PM0010 . Materials Management. 521063004 . This might include the implementation of a Customer Relationship Management (CRM) program. 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. etc. All of these activities will be within the context of achieving the strategic business objectives. cost. schedule and scope. This typically includes identifying. This project will start on a specific date and end according to our project plan with the delivery of your new accounting system. etc.g. communications. Commission Tracking project. Each of these specific projects should be run by a project manager using a formal project management approach.

reduce risk and improve the probability of successfully delivering expected business results. A project manager manages a specific project with people and other resources assigned to him only for project management support on the specific project. notwithstanding some variations from day to day. The functional worker gets training from a manager assigned to the specific function. No. accountants. 521063004 Page 12 of 17 Bhupinder Singh . Common uses of the Ishikawa diagram are product design and quality defect prevention.Assignment Set: 2 management elements across the entire portfolio – looking for ways to leverage economies of scale. car salesmen.created by Kaoru Ishikawa (1990). project work is a temporary endeavor undertaken to create a unique. Each day machine operators. Causes are usually grouped into major categories to identify these sources of variation.MBA - PM0010 . It is important to understand these differences. The project manager is responsible for the approved objectives of a project such as budget.Introduction to Project Management Semester: 3 . secretaries. Functional work is routine on-going work. Each cause or reason for imperfection is a source of variation. and the manager supervises and manages the worker according to standards of productivity and quality set for the particular function.Sikkim Manipal University . non-routine product or service. Project terms are typically not organized in the same hierarchical structure as that of functional group. cause-and-effect diagrams or Fishikawa) are causal diagrams that show the causes of a certain event -. schedule and specifications. financial analysts and quality inspectors perform functional work that is routine. The categories typically include:  People: Anyone involved with the process Reg. to identify potential factors causing an overall effect. b) Project work and Traditional functional work: Project work and traditional functional work differ in many ways. In contrast to functional work. Question 6: Describe the following quality control tools: a) Ishikawa diagram b) Flow chart c) Pareto chart d) Scatter diagram Answer: a) Ishikawa diagram: Ishikawa diagrams (also called fishbone diagrams. and not on an ongoing basis.

From this box originates the main branch (the 'fish spine') of the diagram. Every factor identified in the diagram was included in the final design.it has a box (the 'fish head') that contains the statement of the problem at one end of the diagram. 521063004 Page 13 of 17 . rules. such as policies. paper. No. Sticking out of this main branch are major branches that categorize the causes according to their nature. Flowcharts facilitate communication between Bhupinder Singh Reg. similar to the side view of a fish skeleton. where the required result was "Jinba Ittai" or "Horse and Rider as One".Introduction to Project Management Semester: 3 . regulations and laws Machines: Any equipment. temperature. b) Flow chart: A flowchart is a diagrammatic representation that illustrates the sequence of operations to be performed to get the solution of a problem. parts.Sikkim Manipal University . and are considered one of the seven basic tools of quality control. Flowcharts are generally drawn in the early stages of formulating computer solutions. It is known as a fishbone diagram because of its shape. pens. Mazda Motors famously used an Ishikawa diagram in the development of the Miata sports car. etc. and culture in which the process operates Ishikawa diagrams were first used in the 1940s. used to produce the final product Measurements: Data generated from the process that are used to evaluate its quality Environment: The conditions. required to accomplish the job Materials: Raw materials.Assignment Set: 2      Methods: How the process is performed and the specific requirements for doing it. The main causes included such aspects as "touch" and "braking" with the lesser causes including highly granular factors such as "50/50 weight distribution" and "able to rest elbow on top of driver's door". such as location. procedures.MBA - PM0010 . computers. tools etc. time. The Ishikawa Diagram resembles a fishbone (hence the alternative name "Fishbone Diagram") .

Sikkim Manipal University . neat and easy to follow. Only one flow line should come out from a process symbol. it becomes easy to write the program in any high level language. The flowchart should be clear.Assignment Set: 2 programmers and business people. c) Pareto chart: Bhupinder Singh Reg.MBA - PM0010 . 521063004 Page 14 of 17 . The usual direction of the flow of a procedure or system is from left to right or top to bottom. however. Once the flowchart is drawn. No. Hence. all necessary requirements should be listed out in logical order. Flowcharts are usually drawn using some standard symbols. These flowcharts play a vital role in the programming of a problem and are quite helpful in understanding the logic of complicated and lengthy problems. Often we see how flowcharts are helpful in explaining the program to others. it is correct to say that a flowchart is a must for the better documentation of a complex program. some special symbols can also be developed when required The following are some guidelines in flowcharting:     In drawing a proper flowchart.Introduction to Project Management Semester: 3 . There should not be any room for ambiguity in understanding the flowchart.

This bar chart is used to separate the “vital few” from the “trivial many”. Pareto charts are extremely useful because they can be used to identify those factors that have the greatest cumulative effect on the system. Understanding the Pareto Principle (The 80/20 Rule): Originally.MBA - PM0010 . The bars are arranged in descending order of height from left to right. the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. A Pareto Chart is a series of bars whose heights reflect the frequency or impact of problems. parking difficulties. the Pareto Principle referred to the observation that 80% of Italy’s wealth belonged to only 20% of the population. there can be no question about what problems are influencing the outcome most. 521063004 Page 15 of 17 . and thus screen out the less significant factors in an analysis. After charting the frequency of the answers in his customer survey. In this example.Introduction to Project Management Semester: 3 . rude sales people and poor lighting were hurting his business most.Sikkim Manipal University . By using hard data instead of intuition. No. it was very clear that the real reasons for the decline of his business had nothing to do with his supply chain. a 19th century economist who postulated that a large share of wealth is owned by a small percentage of the population. A Simple Example: A Pareto chart can be used to quickly identify what business issues need attention. Ideally. those are the areas where he should focus his attention to build his business back up. the manager could see which variables were having the most influence. he assumed the decline was due to customer dissatisfaction with the clothing line he was selling and he blamed his supply chain for his problems. By collecting data and displaying it in a Pareto chart.Assignment Set: 2 The Pareto Chart is named after Vilfredo Pareto. More generally. XYZ Clothing Store was seeing a steady decline in business. Before the manager did a customer survey. this allows the user to focus attention on a few important factors in a process. It can mean all of the following things: Bhupinder Singh Reg. Following the Pareto Principle. This means the categories represented by the tall bars on the left are relatively more significant than those on the right. however. These charts are based on the Pareto Principle which states that 80 per cent of the problems come from 20 per cent of the causes. In the example below. This basic principle translates well into quality problems.

Scatter diagram is used to examine theories about cause-and-effect relationships and to search for root causes of an identified problem. Most often a scatter diagram is used to prove or disprove cause-and-effect relationships. not a law of nature. The pattern made by the points plotted on the scatter diagram usually suggests the basic Bhupinder Singh Reg. It can also be used to design a control system to ensure that gains from quality improvement efforts are maintained. 521063004 Page 16 of 17 . 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. The pattern of their intersecting points can graphically show relationship patterns.Introduction to Project Management Semester: 3 .MBA - PM0010 . it does not by itself prove that one variable causes the other. In the above example. While the diagram shows relationships.Assignment Set: 2 20% 20% 20% 20% 20% of of of of of the the the the the input creates 80% of the result workers produce 80% of the result customers create 80% of the revenue bugs cause 80% of the crashes features cause 80% of the usage      The Pareto Principle is an observation. No. d) Scatter diagram: A scatter diagram is a tool for analysing relationships between two variables.Sikkim Manipal University . In addition to showing possible cause and-effect relationships. the points are plotted by assigning values of the independent variable X to the horizontal axis and values of the dependent variable Y to the vertical axis. One variable is plotted on the horizontal axis and the other is plotted on the vertical axis.

Introduction to Project Management Semester: 3 . 521063004 Page 17 of 17 . No. subjects with large waist circumferences also have larger amounts of deep abdominal AT.Sikkim Manipal University . These impressions suggest that the relationship between the two variables may be described by a straight line crossing the Y-axis below the origin and making approximately a 45-degree angle with the X-axis.Assignment Set: 2 nature and strength of the relationship between two variables. The scatter diagram also shows that. Bhupinder Singh Reg.MBA - PM0010 .

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