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Master of Business Administration - MBA Semester 2 MB0049 – Project Management (4 credits

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Q1. Define project management. Discuss the need for project management. Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables),[1] undertaken to meet unique goals and objectives,[2] typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations),[3] which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies Q2. What is meant by risk management? Explain the components of risk management. Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat (also called hazard). Quantitative risk assessment requires calculations of two components of risk (R):, the magnitude of the potential loss (L), and the probability (p)that the loss will occur. In all types of engineering of complex systems sophisticated risk assessments are often made within Safety engineering and Reliability engineering when it concerns threats to life, environment or machine functioning. The nuclear, aerospace, oil, rail and military industries have a long history of dealing with risk assessment. Also, medical, hospital, and food industries control risks and perform risk assessments on a continual basis. Methods for assessment of risk may differ between industries and whether it pertains to general financial decisions or environmental, ecological, or public health risk assessment Components are: Risk assessment is the process of examining a project to identify areas of potential risk. Risk identification can be facilitated with the help of a checklist of common risk areas for software projects, such as the brief lists presented in this chapter. You might also study an organizationwide compilation of previously identified risks and mitigation strategies, both successful and unsuccessful. Risk analysis examines how project outcomes might change as a result of the identified risks.

organization. progress controls. They must understandthe stage status reports. and timelines. It is therefore necessary to control all theinputs and the corresponding outputs from a stage. For thissuitable stage version control procedures may be followed. Resources – Plan the resources required for various stage of the project. In certain situations you might be able to transfer a risk to some other party. Brief both the project team and the key resources about the objectives of every stage. control the quality factors which are likely tod e v i a t e from expected values as any deviation may result in changes to thestage schedule. Q3. such as a subcontractor. summary of the stagecost and related worksheets. products. Project files have to be frequently updated with suitablev e r s i o n c o n t r o l n u m b e r a n d r e v i s i o n s t a t u s s h o u l d b e m a i n t a i n e d f o r e a c h change. pr o j e c t stage schedule. Project Progress – The members must keep a track of the project progress andc o m m u n i c a t e t h e s a m e t o o t h e r r e l a t e d m e m b e r s o f t h e p r o j e c t . stage end reports. They must realize the need andi m p o r t a n c e of quality for which they have to follow s t r i c t l y a q u a l i t y r e v i e w schedule and frequently discuss on the quality agendas. The results of any stage in a p r o j e c t . Stage Control – The manager must establish a project check point cycle.planned activities. It is possible to work according to the project plan only by carefulmonitoring of the project progress. or by relying on proven rather than cutting-edge technologies when possible. metrics and project controls . Risk control is the process of managing risks to achieve the desired outcomes. A project manager may usecertain standard tools to keep the project on track. T h e v a r i o u s s t e p s involved in monitoring and controlling a project from start to end are as follows – Preliminary work – the team members understand the project plans. owners. and statistical tables.Risk avoidance is one way to deal with a risk: don’t do the risky thing! You might avoid risks by not undertaking certain projects. Team members are identified who will exercise controls at various pointsof the project. stage end approval reports. including mitigation approaches. risk monitoring involves tracking your progress toward resolving each risk item.Project Monitoring and Control: Any project aimed at delivering a productor a service has to go through phases in a planned manner in order to meet therequirements. depends on the inputs to that stage. The details are to bedocumented stage wise. Risk resolution entails executing the plans for dealing with each risk. The project manager ensures that these changes are m a d e smoothly and organizes review meeting with the project management group. All the member has to understand the tolerances inany change and maintain a change control log. The project manager and theteam members should be fully aware of the techniques and methods to rectifyt h e f a c t o r s i n f l u e n c i n g d e l a y o f t h e p r o j e c t a n d i t s p r o d u c t . Risk management planning produces a plan for dealing with each significant risk.quality charts. through the use of regular check points. Describe the various steps involved in monitoring and controlling aproject Ans:. tracking schedules. T h e y m u s t monitor and control project progress. Finally. It requires establishing control factors to keept h e project on the track of progress.

c o s t a n d q u a l i t y tolerance levels agreed with the project management team.Conduct quality review – the quality review is to be conducted in a structured andf o r m a l manner. Review statusof open issues and determine any further action required on these issues. Refer back to the project control factors to help determinet h e a p p r o p r i a t e c o r r e c t i v e a c t i o n a n d a d j u s t t h e s c h e d u l e accordingly. activities for the next period. i s s u e s c l o s e d this period. since they are calculatedfrom actual work. Establish why the deviationhas occurred. • Re-plan stage schedule-Review the tracking Gantt and Cost w o r k b o o k and identify any deviation from the baseline. Quality review should focus on product development and i t s quality factors. Quality control is possibleif the project members follow the quality charts and norms very strictly. a c t u a l h o u r s w o r k e d p e r t a s k . s u g g e s t e d revisions to the plan.D e t e r m i n e i f t h e s t a g e h a s e x c e e d e d t h e p r o g r e s s . T h e s e i n p u t s b e c o m e t h e b a s e t o m o n i t o r t h e performance of the project and its stages. summary of results of q u a l i t y r e v i e w s . l a t e s t estimated work in hours to complete the task.Schedule Quality Review – It is recommended that quality review be scheduledat the beginning of the stage and also ending of every stage.A g e n d a f o r q u a l i t y r e v i e w – c r e a t e a n d d i s t r i b u t e a q u a l i t y r e v i e w a g e n d a specifying the objective. • Update costs .F o l l o w u p . a n y m i s c e l l a neous costsi n c u r r e d d u r i n g a s t a g e .Review quality control procedures – verify that the quality objectives for eachp r o d u c t a r e a p p r o p r i a t e a n d t h a t a l l p a r t i c i p a n t s a r e s a t i s f i e d b o t h w i t h t h e process and its outcome. Items for discussion are achievements this period planned activitiesthat are incomplete or overdue. new issuesi d e n t i f i e d t h i s p e r i o d . estimated remaining costs. responsibilities and time frame. F o l l o w u p t h e a c t i o n s p l a n n e d i n s t r i c t m a n n e r w h i c h e n s u r e s conformity to the standards. Miscellaneous costswill be automatically updated from the scheduler. roles. logistics. . Focus on whether it meets the prescribed quality standard.Conduct a status meeting with the projectteam. actual hours worked per task. e l a p s e d t i m e i n h o u r s t o c o m p e t e t h e t a s k . The Control Of The Project Process And Project Progress Control a) Monitor Performance: The team members log in details of actual start date. products.Update the stage cost summary worksheet with a c t u a l costs incurred this period.actual finish date.b) Update Schedule-Update the schedule for actual start date for tasks started. s u m m a r y o f s c h e d u l e a n d c o s t s t a t u s . • Conduct team status review.Q R complete product status revised from ‘In progresses to ‘QRC o m p l e t e ’ . estimated hours to complete thet a s k .R e v i e w t h e s t a t u s o f a n y o u t s t a n d i n g q u a l i t y r e v i e w s R e v i e w a n y n e w change requests.Quality Control – This is very important in any project.a c t u a l f i n i s h d a t e f o r t a s k s f i n i s h e d .

Change control is necessary to control the increase of work at various stages of p r o j e c t and to manage effectively the disruptions in the stages. and the probability (p)that the loss will occur."[1] PMIS systems differ in scope. the magnitude of the potential loss (L). oil. design and features depending upon an organisation's operational requirements. if any. The nuclear. Risk assessment is a step in a risk management procedure. The group review process includes several stages likep l a n n i n g . resulting in deviations from thestage schedules. the status report provides arecord of current achievements and immediate expectations of the project. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat (also called hazard). The goals of such review are toimprove quality by finding defects and to improve productivity by finding defectsin a cost effective manner. Approvals – Project stage reviews and the decisions taken and actions plannedneed to be approved by the top management. a l o n g w i t h c a u s e a n d corrective action. The status has tobe effectively communicated to all interested parties. upcoming tasks for the month and any major i s s u e s . What is Project Management Information System (PMIS)? What are the major aspects of PMIS? A project management information system (PMIS) is a part of management information systems (MIS) and manages information of a project centric organization. aerospace..A c c o m p l i s h m e n t s d u r i n g t h e p e r i o d -Items not completed during the period-Proposed activities for the next period-Any predicted slippage to the stage schedule.As discussed earlier.. • Create Flash report . project and stage cost and project scope. Quantitative risk assessment requires calculations of two components of risk (R):. environment or machine functioning.sch edule status. rail and military industries have a .summarize the accomplishments for the month. and close project management goals. Distribute to the project team and project management team • Project Status Reports . Change Control Controlling the changes in the project is possible through a proper changemanagem e n t p r o c e s s a n d u s i n g n e c e s s a r y t o o l s f o r c o n t r o l l i n g t h e c h a n g e .• C r e a t e s t a t u s r e p o r t – T h e s t a t u s r e p o r t p r o v i d e s a r e c o r d o f c u r r e n t achi evement and immediate expectations of the project. p r e p a r a t i o n a n d o v e r v i e w a g r o u p r e v i e w m e e t i n g a n d r e w o r k recommendations and follow-up.A w e e k l y s t a t u s r e p o r t i n c l u d e s : .A n y p r e d i c t e d c o s t o v e r r u n a l o n g w i t h c a u s e a n d c o r r e c t i v e a c t i o n . In all types of engineering of complex systems sophisticated risk assessments are often made within Safety engineering and Reliability engineering when it concerns threats to life. These electronic systems "help [to] plan. T h e s e factors may affect the progress of the project. execute. Q4.

risk assessment and actual results. costs and project goals. and coordinate tasks within a project.A system is prone to malfunctions if not properly maintained. The four major aspects of a PMIS are :-( a ) P r o v i d e i n f o r m a t i o n t o t h e m a j o r s t a k e h o l d e r s i e t h e r i g h t i n f o r m a t i o n a t the right time. Usual informationsystems are not designed for projects. It helps in maintaining a discipline in the system. A good PMIS is possible to be developed from the team members and notfrom the systems administrators of the company. (b) Assist the team members. This information helps them takedecisions on the project. What is PERT chart? What are the advantages of PERT chart? A PERT chart is a project management tool used to schedule. Also. and food industries control risks and perform risk assessments on a continual basis. scope changes. takes lists and specification sothey know what needs to be done next. or public health risk assessment A i n f o r m a t i o n s y s t e m s i s mainly aimed at providing the management at different levels with information relatedto the system of the organization. Upper managers need to know information on all projects regarding progress. The information systems is based on a database of the organization. An information systemdealing with project management tasks is the project management information system. Normal information systems tell managers if they are working within the scope of the budget. a methodology developed by the U. (d) Help organizational learning by helping the members of the organization learnabout project management. The informat ion is communicated tomanagers at different levels of the organization depending upon the need. It helpin decision making in arriving at optimum allocation of resources. proposed staffing changes and total allocation of resources. A project management information systemalso holds schedule. problems. Project team members need to see schedule. managers with necessaryinformation and summary of the information shared to the higher level managers.S. ecological. resource usage. A similar methodology. PERT stands for Program Evaluation Review Technique. Organizations tend to allocate suchresponsibility by rotation among members with a well designed and structured data entry andanalytical format Q5. the Critical Path Method (CPM) was developed for project management in the private sector at about the same timeA PERT chart presents a graphic illustration of a project as a . Project manager and department managers need to see each projectschedule priority and use of resources to determine the most efficient use across theorganization. Navy in the 1950s to manage the Polaris submarine missile program. medical. stakeholders. hospital. organize. Methods for assessment of risk may differ between industries and whether it pertains to general financial decisions or environmental. (c)Assists the managers in doing what if analyses about p r o j e c t s t a f f i n g . They should review the projects at each milestone and arrive atappropriate decision.long history of dealing with risk assessment.

" See also Business Process Reengineering. for example. project managers use both techniques. or a business process. In the diagram. These are called dependent or serial tasks.[citation needed] Also. The tasks between nodes 1 and 2. another popular project management charting method. and nodes 1 and 3 are not dependent on the completion of one to start the other and can be undertaken simultaneously. or milestones in the project linked by labelled vectors (directional lines) representing tasks in the project. Human Resource Management Systems and customer relationship management Systematic starting over and reinventing the way a firm. 8. the PERT chart can be much more difficult to interpret. especially on complex projects. but that the resources and time required to prepare for the user test (writing the user manual and user training) are on another path. On the other hand. the dashed arrow linking nodes 6 and 9 indicates that the system files must be converted before the user test can take place. service. 4. Frequently. gets its work done.network diagram consisting of numbered nodes (either circles or rectangles) representing events. Write brief notes on the following: (i) Re-engineering and (ii) Re-structuring Business process re-engineering is the analysis and design of workflows and processes within an organization. they are used to determine and avoid surprises and minimize wastages. because it clearly illustrates task dependencies. The cross-functional team. 2. . groupware and collaborative systems. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome. and speed. for example. These are represented by dotted lines with arrows and are called dummy activities. For example. Enterprise resource planning. knowledge management systems. supply chain management. Re-engineering is the basis for many recent developments in management. Q6. These tasks are called parallel or concurrent tasks. has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. and 10 must be completed in sequence. The PERT chart is sometimes preferred over the Gantt chart. many recent management information systems developments aim to integrate a wide number of business functions. Tasks that must be completed in sequence but that don't require resources or completion time are considered to have event dependency. Defined by Michael Hammer and James Champy (in their 1993 book 'Reengineering The Corporation') as "Fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical measures of performance such as cost. the tasks between nodes 1. Numbers on the opposite sides of the vectors indicate the time allotted for the task. The direction of the arrows on the lines indicates the sequence of tasks. Advantages:some tasks can have some slack time without affecting the project completion time.

and social hierarchy. employment. institutional arrangements including the growth of the corporate complex. spatial mismatch. and metropolitan growth differentialsBringing about a drastic or fundamental internal change that alters the relationships between different components or elements of an organization or system . specialized producer services. capital mobility. This transformation has affected demographics including income distribution. nonstandard work. as well as geographic spacing including the rise of world cities. and public outlays. informal economy.restructuring refers to the phenomenon of Western urban areas shifting from a manufacturing to a service sector economic base.