MB0049 –Project Manegment ( 4 credits ) ( Book Id , B1138 ) ASSIGNMENT – Set - 1 Note each question carries 10 marks answer all

the Question 1 . Define Project Management Discuse the nead for Project Management Project management is the discipline of planning, organizing, securing, managing, leading, and controlling 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. The primary challenge of project management is to achieve all of the project goals[4] and objectives while honoring the preconceived constraints.[5] Typical constraints are scope, time, and budget.[1] The secondary—and more ambitious—challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives. The traditional approach A traditional phased approach identifies a sequence of steps to be completed. In the "traditional approach", five developmental components of a project can be distinguished (four stages plus control): Typical development phases of an engineering project initiation planning and design execution and construction monitoring and controlling systems completion Not all projects will have every stage, as projects can be terminated before they reach completion. Some projects do not follow a structured planning and/or monitoring process. And some projects will go through steps 2, 3 and 4 multiple times. Many industries use variations of these project stages. For example, when working on a brick-and-mortar design and construction, projects will typically progress through stages like pre-planning, conceptual design, schematic design, design development, construction drawings (or contract documents), and construction administration. In software development, this approach is often known as the waterfall model,[17] i.e., one series of tasks after another in linear sequence. In software development many organizations have adapted the Rational Unified Process (RUP) to fit this

methodology, although RUP does not require or explicitly recommend this practice. Waterfall development works well for small, well defined projects, but often fails in larger projects of undefined and ambiguous nature. The Cone of Uncertainty explains some of this as the planning made on the initial phase of the project suffers from a high degree of uncertainty. This becomes especially true as software development is often the realization of a new or novel product. In projects where requirements have not been finalized and can change, requirements management is used to develop an accurate and complete definition of the behavior of software that can serve as the basis for software development.[18] While the terms may differ from industry to industry, the actual stages typically follow common steps to problem solving —"defining the problem, weighing options, choosing a path, implementation and evaluation." Processes The project development stages[22] Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include:[23] initiation planning or development production or execution monitoring and controlling closing In project environments with a significant exploratory element (e.g., research and development), these stages may be supplemented with decision points (go/no go decisions) at which the project's continuation is debated and decided. An example is the stage-gate model. [edit] Initiating Initiating process group processes[22] The initiating processes determine the nature and scope of the project.[24] If this stage is not performed well, it is unlikely that the project will be successful in meeting the business’ needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them. The initiating stage should include a plan that encompasses the following areas: analyzing the business needs/requirements in measurable goals reviewing of the current operations financial analysis of the costs and benefits including a budget stakeholder analysis, including users, and support personnel for the project project charter including costs, tasks, deliverables, and schedule

As with the Initiation process group. estimating time and cost for activities. Execution process involves coordinating people and resources. such as planning for communications and for scope management. For new product development projects. gaining formal approval to begin work. estimating the resource requirements for the activities. [edit] Monitoring and controlling Monitoring and controlling process group processes[22] .[22] The main purpose is to plan time. as well as integrating and performing the activities of the project in accordance with the project management plan. developing the schedule. developing the budget.g. and may help to inform the planning team when identifying deliverables and planning activities. by level of detail or rolling wave). conceptual design of the operation of the final product may be performed concurrent with the project planning activities. cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. The deliverables are produced as outputs from the processes performed as defined in the project management plan and other frameworks that might be applicable to the type of project at hand.[edit] Planning and design After the initiation stage. Additional processes. [edit] Executing Executing process group processes[22] Executing consists of the processes used to complete the work defined in the project plan to accomplish the project's requirements. identifying roles and responsibilities. identifying the activities needed to complete those deliverables and networking the activities in their logical sequence. selecting the planning team. a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. risk planning. determining what to purchase for the project and holding a kick-off meeting are also generally advisable. the project is planned to an appropriate level of detail (see example of a flow-chart). Project planning generally consists of[25] determining how to plan (e. identifying deliverables and creating the work breakdown structure. developing the scope statement.

the design drawings.” The requirement for providing them is a norm in construction contracts. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. material availability. Hence. etc. Beyond executing the change in the field. effort. The record is made on the contract documents – usually. Project managers . “as built. when necessary.Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken. more specifically. The end product of this effort is what the industry terms asbuilt drawings. Change is a normal and expected part of the construction process. the forecasted result may not justify the original proposed investment in the project. the monitoring and control process also provides feedback between project phases. and it includes:[23] Continuing support of end-users Correction of errors Updates of the software over time Monitoring and controlling cycle In this stage. This is referred to as change management. Identify corrective actions to address issues and risks properly (How can we get on track again). or more simply.) against the project management plan and the project performance baseline (where we should be). contractor-requested changes. differing site conditions. Monitoring and controlling includes:[26] Measuring the ongoing project activities ('where we are'). scope. the viability of the project has to be reassessed. In multi-phase projects. When the changes accumulate. It is important not to lose sight of the initial goals and targets of the projects. Influencing the factors that could circumvent integrated change control so only approved changes are implemented. any change that modifies the tangible portions of the finished work. Monitoring the project variables (cost. the owner usually requires a final record to show all changes or. to name a few. value engineering and impacts from third parties. to control the execution of the project. Over the course of any construction project. but not necessarily limited to. in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. auditors should pay attention to how effectively and quickly user problems are resolved. Changes can be the result of necessary design modifications. When changes are introduced to the project. the work scope may change. Project maintenance is an ongoing process. the change normally needs to be documented to show what was actually constructed.

The WBS may be hardware-. components. duration. and closing of any project. execution. and a tight budget could mean increased time and reduced scope. a tight time constraint could mean increased costs and reduced scope. and telecommunications. which is cost. A project manager is the person accountable for accomplishing the stated project objectives. The cost constraint refers to the budgeted amount available for the project." and "cost". and responsibility (e. projects need to be performed and delivered under certain constraints. and work packages). typically relating to construction industry.g. engineering. project." "time. These three constraints are often competing constraints: increased scope typically means increased time and increased cost.. Many other fields in the production engineering and design engineering and heavy industrial have project managers. Project managers can have the responsibility of the planning. [edit] Project management triangle The project management triangle Like any human undertaking. The discipline of project management is about providing the tools and techniques that enable the project team (not just the project manager) to organize their work to meet these constraints. client satisfaction. One side of the triangle cannot be changed without affecting the others. systems. based on knowledge of the firm they are representing. Traditionally. which include all steps necessary to achieve the objective. [edit] Work breakdown structure The work breakdown structure (WBS) is a tree structure that shows a subdivision of effort required to achieve an objective—for example a program. where each side represents a constraint. subsystems. quality and above all. and to form close links with the nominated representatives. The time constraint refers to the amount of time available to complete a project. time. architecture.[31] A WBS can be developed by starting with the end objective and successively subdividing it into manageable components in terms of size.[18] . service-. and scope. building the project requirements. computing. The ability to adapt to the various internal procedures of the contracting party. subtasks. A project manager is often a client representative and has to determine and implement the exact needs of the client. can be realized. is essential in ensuring that the key issues of cost.[1] These are also referred to as the "project management triangle". The scope constraint refers to what must be done to produce the project's end result. tasks. these constraints have been listed as "scope. Key project management responsibilities include creating clear and attainable project objectives. or process-oriented (see an example in a NASA reporting structure (2001)).A project manager is a professional in the field of project management. and managing the triple constraint for projects. product-. and contract. time. and turns quality into a fourth constraint. A further refinement of the constraints separates product "quality" or "performance" from scope.

in the US United States Department of Veterans Affairs (VA) the program management life cycle is depicted and describe in the overall VA IT PROJECT MANAGEMENT FRAMEwork to address the integration of OMB Exhibit 300 project (investment) management activities and the overall project budgeting process. see figure. By design. The VA IT Project Management Framework diagram illustrates Milestone 4 which occurs following the deployment of a system and the closing of the project. For example. schedule.The work breakdown structure provides a common framework for the natural development of the overall planning and control of a contract and is the basis for dividing work into definable increments from which the statement of work can be developed and technical. The project closing phase activities at the VA continues through system deployment and into system operation for the purpose of illustrating and describing the system activities the VA considers part of the project. The figure illustrates the actions and associated artifacts of the VA IT Project and Program Management process. cost. [31] [edit] Project management framework The Program (Investment) life cycle integrates the project management and system development life cycles with the activities directly associated with system deployment and operation. and labor hour reporting can be established. system operation management and related activities occur after the project is complete and are not documented within this guide[22] (see an example of an IT project management framework).[22] .

reducing the negative effect or probability of the risk. For example. natural causes and disasters as well as deliberate attack from an adversary. decrease cost effectiveness. actuarial assessments. service. Several risk management standards have been developed including the Project Management Institute. In practice the process of assessing overall risk can be difficult. brand value. . industrial processes. Relationship risk appears when ineffective collaboration occurs. when deficient knowledge is applied to a situation. and control the probability and/or impact of unfortunate events[1] or to maximize the realization of opportunities. a knowledge risk materializes. These risks directly reduce the productivity of knowledge workers. actuarial societies. whether the confidence in estimates and decisions seem to increase. avoiding the risk. financial portfolios. or public health and safety. credit risk. profitability. The strategies to manage risk typically include transferring the risk to another party. engineering. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity. or even accepting some or all of the potential or actual consequences of a particular risk. and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives. legal liabilities.[2][3] Methods. Risks can come from uncertainty in financial markets.2 . security. assessment. and risks with lower probability of occurrence and lower loss are handled in descending order. whether positive or negative) followed by coordinated and economical application of resources to minimize. reputation. or events of uncertain or unpredictable root-cause. definitions and goals vary widely according to whether the risk management method is in the context of project management. Vocabulary. and earnings quality. accidents. What is meant by risk Management ? Explane the Components of risk Risk management:Risk management is the identification. and balancing resources used to mitigate between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled. monitor. Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. "Risk management. Process-engagement risk may be an issue when ineffective operational procedures are applied. production. INTRODUCTION:The vocabulary of risk management is defined in ISO Guide 73. development."[2] In ideal risk management. a prioritization process is followed whereby the risks with the greatest loss (or impact) and the greatest probability of occurring are handled first. and ISO standards. quality. the National Institute of Standards and Technology. project failures (at any phase in design. or sustainment life-cycles). Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk.

In most countries the use of specific chemicals or the operations of specific facilities (e. such as increased cancer incidence or incidence of birth defects. Again. If the risk estimate does not take into account the number of individuals exposed. Risk with a large potential loss and a low probability of occurring is often treated differently from one with a low potential loss and a high likelihood of occurring. In that case.. For example. manufacturing plants) is not allowed unless it can be shown that they do not increase the risk of death or illness above a specific threshold. it is termed an "individual risk" and is in units of incidence rate per a time period. Risk assessment from a financial point of view. Part of the difficulty in risk management is that measurement of both of the quantities in which risk assessment is concerned . ideal risk management minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks Explanation Risk assessment consists of an objective evaluation of risk in which assumptions and uncertainties are clearly considered and presented. loss can be quantified in a common metric such as a country's currency or some numerical measure of a location's quality of life.potential loss and probability of occurrence . in which to conduct the risk management process. such as insurance. The chance of error in measuring these two concepts is large. Population risks are of more use for cost/benefit analysis. [edit] Risk assessment in public health In the context of public health. The US Environmental Protection Agency .Risk management also faces difficulties in allocating resources. risk assessment is the process of quantifying the probability of a harmful effect to individuals or populations from certain human activities.can be very difficult to measure. When risk assessment is used for public health or environmental decisions.g.[1] The FDA required in 1973 that cancer-causing compounds must not be present in meat at concentrations that would cause a cancer risk greater than 1 in a million lifetimes. express loss in terms of dollar amounts. In theory. Financial decisions. it is termed a "population risk" and is in units of expected increased cases per a time period. the "risk" is expressed as If the risk estimate takes into account information on the number of individuals exposed. the American Food and Drug Administration (FDA) regulates food safety through risk assessment. Resources spent on risk management could have been spent on more profitable activities. For public health and environmental decisions. power plants. Expressed mathematically. individual risks are of more use for evaluating whether risks to individuals are "acceptable".. loss is simply a verbal description of the outcome. especially time. This is the idea of opportunity cost. both are of nearly equal priority.. but in practice it can be very difficult to manage when faced with the scarcity of resources.

[2] [edit] How the risk is determined Food risk assessment nomogram In the estimation of risks.provides basic information about environmental risk assessments for the public via its risk assessment portal. etc. a prudent approach is often adopted by including safety factors in the estimate of the "safe" dose. the results of the three steps above are then combined to produce an estimate of risk. An alternative to dose-response estimation is to determine an effect unlikely to yield observable effects. a no effect concentration. As different location.) and the strength of the evidence it can have that effect. called susceptible populations. a range or distribution of possible values is generated in this step. aims to determine the qualitative nature of the potential adverse consequences of the contaminant (chemical. or missing data. three or more steps are involved that require the inputs of different disciplines: Hazard Identification. there is uncertainty at which point intervention is necessary. the differences between individuals due to genetics or other factors mean that the hazard may be higher for particular groups.1% of the population? A difference exists whether this 0. or the costs to high. [edit] Small subpopulations When risks apply mainly to small subpopulations. This is done. and/or from high to lower doses. Because of the different susceptibilities and exposures. lifestyles and other factors likely influence the amount of contaminant that is received. aims to determine the amount of a contaminant (dose) that individuals and populations will receive. In developing such a dose. For other kinds of hazard. Dose-Response Analysis. by drawing from the results of the sciences of toxicology and epidemiology. for chemical hazards. there is a potential to consider strategies to further reduce the exposure of that subgroup. The complexity of this step in many contexts derives mainly from the need to extrapolate results from experimental animals (e. Sometimes. Finally. there is a policy choice whether to set policies for protecting the general population that are protective of such groups (as is currently done for children when data exists. that is. mouse. If an identifiable sub-population is more susceptible due to inherent genetic or other factors. radiation. or is done under the Clean Air Act for populations such as asthmatics) or whether if the group is too small. is determining the relationship between dose and the probability or the incidence of effect (dose-response assessment). In addition. engineering or other disciplines are involved. a . This is done by examining the results of the discipline of exposure assessment. this risk will vary within a population. increased variability in humans. What if a risk is very low for everyone but 0. noise. Particular care is taken to determine the exposure of the susceptible population(s). to account for the largely unknown effects of animal to human extrapolations.1% is represented by *all infants younger than X days or *recreational users of a particular product. typically a factor of 10 for each unknown step. rat) to humans. Exposure Quantification. If the risk is higher for a particular sub-population because of abnormal exposure rather than susceptibility.g.

How consensus settled on this particular figure is unclear. both of these benchmarks are clearly small relative to the typical one in four lifetime risk of death by cancer (due to all causes combined) in developed countries. there are risks associated with no incineration (with the potential risk for spread of infectious diseases) or even no hospitals.In auditing. a true zero-risk is possible only with the suppression of the risk-causing activity. Intelligent thought about a reasonably full set of options is essential. [edit] Acceptable risk increase The idea of not increasing lifetime risk by more than one in a million has become common place in public health discourse and policy. benefit. More stringent requirements (even 1 in a million) may not be technologically feasible at a given time or may be prohibitively expensive as to render the risk-causing activity unsustainable. including its internal control. as well as economic costs. "the auditor should perform risk assessment procedures to obtain an understanding of the entity and its environment. adoption of a zero-risk policy could be motivated by the fact that the 1 in a million policy still would cause the death of hundreds or thousands of people in a large enough population. resulting in the optimal degree of intervention being a balance between risks vs. Further investigation often identifies more options such as separating noninfectious from infectious wastes. or other chemicals). For example. Then.though with varying practical implications and varying economic costs. this risk must be balanced against the available alternatives. . there are significant public health risks."<evidence relating to the auditor’s risk assessment of a material misstatement in the client’s financial statements. In another sense the figure provides a numerical basis for what to consider a negligible increase in risk. associated with all options. and follow up analysis. audit risk includes inherent risk. the auditor obtains initial evidence regarding the classes of transactions at the client and the operating effectiveness of the client’s internal controls. In some respects this figure has the characteristics of a mythical number. In some unusual cases. [edit] Risk assessment in auditing For audits performed by an outside audit firm. it is not unusual for there to be an iterative process between analysis.more specific calculation can be applied whether it is more important to analyze each method specifically the changes of the risk assessment method in containing all problems that each of us people could replace. or air pollution controls on a medical incinerator that provide a broad range of options of acceptable risk . However. On the other hand. In practice however. For example. Thus. Low risk criteria such as these provide some protection for a case where individuals may be exposed to multiple chemicals (whether pollutants or food additives. Some current environmental decision making allows some discretion to deem individual risks potentially "acceptable" if below one in ten thousand increased lifetime risk. control risk and detection risk. it might well be that the emissions from hospital incinerators result in a certain number of deaths per year. risk assessment is a very crucial stage before accepting an audit engagement. However. According to ISA315 Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement. consideration of options.

management.3 Monitor Project Risks SP 1. The National Library of Medicine provides risk assessment and regulation information tools for a varied audience. It is internal audit's responsibility to evaluate the effectiveness of the departmentally prepared risk assessments and make recommendations for improvement. 3 .[4] the Household Products Database (potential health effects of chemicals in over 10.[6] Risk assessment in information security. These risk assessment are different than those prepared by the department. They are usually designed to facilitate the annual audit plan.2 Monitor Commitments SP 1. but should not be the sole basis. Likewise. Risk assessment and human health There are many resources that provide health risk information.1 Monitor Project Planning Parameters SP 1. and the economy. such as changes in volume of business. plus the previous rating of the area and the time since the last audit. Using various elements.4 Monitor Data Management SP 1. They should prepare their own.000 common household products). internal audit should not be preparing risk assessments for the various departments.5 Monitor Stakeholder Involvement SP 1.[5] and TOXMAP (maps of US Environmental Agency Superfund and Toxics Release Inventory data). technology. Discuse the Various step in project monitoring and control Project Monitoring and Control (PMC) A Project Management process area at Maturity Level 2 Purpose The purpose of Project Monitoring and Control (PMC) is to provide an understanding of the project's progress so that appropriate corrective actions can be taken when the project's performance deviates significantly from the plan. coupled with the knowledge and experience of management regarding the particular area.[3] These include TOXNET (databases on hazardous chemicals.Risk assessments performed by internal auditors are entirely different. Only internal audit department generated risk assessments should used for audit planning purposes.6 Conduct Progress Reviews . The United States Environmental Protection Agency provides basic information about environmental risk assessments for the public. environmental health. Specific Practices by Goal SG 1 Monitor the Project Against the Plan SP 1. and toxic releases). Those should be evaluated as part of the internal audit risk assessment process. the audit department determines which areas have more risk and should be a priority within the audit plan. They are responsible for establishing policies and procedures designed to mitigate the risks identified by the risk assessment.

5 Plan Needed Knowledge and Skills SP 2.3 Obtain Plan Commitment [edit] Process and Product Quality Assurance (PPQA) A Support process area at Maturity Level 2 Purpose The purpose of Process and Product Quality Assurance (PPQA) is to provide staff and management with objective insight into processes and associated work products.3 Define Project Lifecycle Phases SP 1.2 Reconcile Work and Resource Levels SP 3. Specific Practices by Goal SG 1 Objectively Evaluate Processes and Work Products SP 1.2 Establish Records [edit] Quantitative Project Management (QPM) .SP 1.2 Identify Project Risks SP 2.1 Estimate the Scope of the Project SP 1.7 Establish the Project Plan SG 3 Obtain Commitment to the Plan SP 3. Specific Practices by Goal SG 1 Establish Estimates SP 1.7 Conduct Milestone Reviews SG 2 Manage Corrective Action to Closure SP 2.1 Objectively Evaluate Processes SP 1.3 Plan Data Management SP 2.4 Plan the Project's Resources SP 2.2 Establish Estimates of Work Product and Task Attributes SP 1.6 Plan Stakeholder Involvement SP 2.1 Analyze Issues SP 2.2 Objectively Evaluate Work Products SG 2 Provide Objective Insight SP 2.1 Communicate and Resolve Noncompliance Issues SP 2.3 Manage Corrective Actions [edit] Project Planning (PP) A Project Management process area at Maturity Level 2 Purpose The purpose of Project Planning (PP) is to establish and maintain plans that define project activities.1 Review Plans that Affect the Project SP 3.1 Establish the Budget and Schedule SP 2.4 Estimate Effort and Cost SG 2 Develop a Project Plan SP 2.2 Take Corrective Action SP 2.

Project monitoring and control involves status meetings to gather status from the team.A Project Management process area at Maturity Level 4 Purpose The purpose of the Quantitative Project Management (QPM) process area is to quantitatively manage the project to achieve the project’s established quality and process performance objectives. OpenOffice. [edit] Issue In computing. and so forth. estimate the work involved. the term issue is a unit of work to accomplish an improvement in a system.3 Select Subprocesses and Attributes SP 1. Specific Practices by Goal SG 1 Prepare for Quantitative Management SP 1.org used to call their modified version of BugZilla IssueZilla. [edit] Severity levels Issues are often categorized in terms of severity levels.2 Manage Project Performance SP 2.1 Monitor the Performance of Selected Subprocesses SP 2.4 Select Measures and Analytic Techniques SG 2 Quantitatively Manage the Project SP 2." This usage is probably related. and create a project schedule.3 Perform Root Cause Analysis Project planning. Different companies have different definitions of severities.1 Establish the Project’s Objectives SP 1. change control is used to keep the products up to date. An issue could be a bug. As of September 2010.2 Compose the Defined Processes SP 1.[citation needed] For example. The word "issue" is popularly misused in lieu of "problem. they call their system Issue Tracker. If the project deviates from the plan. then the project manager can take action to correct the problem. The project plan is then developed to describe the tasks that will lead to completion. missing documentation. Project planning begins with requirements that define the software to be developed. When changes need to be made. but some of the most common ones are: . task. Problems occur from time to time and fixing them in a timely fashion is essential to achieve correctness of a system and avoid delayed deliveries of products. The purpose of project monitoring and control is to keep the team and management up to date on the project's progress. monitoring and control The purpose of project planning is to identify the scope of the project. a requested feature.

workers. Cosmetic The system works correctly. Medium The bug or issue affects a minor part of a system. issues are often investigated by Quality Assurance Analysts when they verify a system for correctness. These electronic systems "help [to] plan. and has very little impact on its operation. client.Critical High The bug or issue affects a crucial part of a system. contractors. etc. but has some impact on its operation.[1] PMIS pmbok 4th edition definition Project management information system (PMIS) [Tool]. In some other cases. managers and etc. This is the lowest severity issue. They can also be assigned by system users during the User Acceptance Testing (UAT) phase. In many software companies. and then assigned to the developer(s) that are responsible for resolving them. 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. What a PMIS does is to manage all stakeholders in a project such as the project owner. and close project management goals. sub-contractors. This severity level is assigned when a non-central requirement of a system (and with lower importance) is affected. An information system consisting of the tools and techniques used to gather. too much or too little spacing between contents. It is used to support all . execute. integrate. and disseminate the outputs of project management processes. incorrect font sizes. This severity level is assigned when a non-central requirement of a system is affected. For example: wrong colors. Low The bug or issue affects a minor part of a system. Relationship between a PMS and PMIS A project management system (PMS) could be a part of a PMIS or sometimes an external tool beside project management information system. and must be fixed in order for it to resume normal operation. in-house staff. Issues are commonly communicated using Issue or Defect Tracking Systems."[1] PMIS systems differ in scope. 4 . emails or instant messengers are used. but the appearance does not match the expected one. typos. design and features depending upon an organisation's operational requirements.

These actions usually take place in that specified order but some may need to repeat or be accomplished concurrently. The consumer buying trends and behaviours can be predicted by the analysis of sales and revenue reports from each operating region of the company. Giving an overall picture of the company and acting as a communication and planning tool. conversion. If good then the new system expands to the rest of the company. . Conversion is the process of changing or converting the old system into the new. and can include both manual and automated systems. programming/implementation. Information is considered to be an important asset for any company in the modern competitive world. The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. This can be done in four ways: Direct cutover – The new system replaces the old at an appointed time. production and finally maintenance. The identification of these aspects can help the company improve their business processes and operations. employees' performance record etc. testing. The effective management of customer data can help the company to perform direct marketing and promotion activities.[5] Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports. Pilot study – Introducing the new system to a small portion of the operation to see how it fares. Phased approach – New system is introduced in stages. Developing Information Systems "The actions that are taken to create an information system that solves an organizational problem are called system development"[6].aspects of the project from initiating through closing. Advantages The following are some of the benefits that can be attained for different types of management information systems. These include system analysis. system design.

however. the Critical Path Method (CPM) was developed for project management in the private sector at about the same time. What is PERT chart ? What are the advantages of PERT chat? Definition of 'PERT Chart' A project management tool that provides a graphical representation of a project’s timeline. and the order in which they must be completed along with the corresponding time requirements. which must be completed in a certain sequence. Tasks that are not dependent on the completion of other tasks are called parallel or concurrent tasks and can generally be worked on simultaneously. and the minimum time required to finish the entire project. or Program Evaluation Review Technique. PERT charts allow the tasks in a particular project to be analyzed.S. PERT charts are preferable to Gantt charts because they more clearly identify task dependencies. project managers frequently employ both methodologies. Investopedia explains 'PERT Chart' A PERT chart is a graph that represents all of the tasks necessary to a project’s completion. PERT stands for Program Evaluation Review Technique. Certain tasks are dependent on serial tasks. and coordinate tasks within a project.5 . A similar methodology. As such. A PERT chart is a project management tool used to schedule. PERT. with particular attention to the time required to complete each task. a methodology developed by the U. was developed by the United States Navy for the Polaris submarine missile program in the 1950s. . organize. the PERT chart is often more challenging to interpret. Navy in the 1950s to manage the Polaris submarine missile program.

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the dashed arrow linking nodes 6 and 9 indicates that the system files must be converted before the user test can take place. All areas of the project will be covered through this PERT chart method such as cost. Khandelwal K. Estimate the time required for each activity. This method basically develop for NAVY project purposes in 1956. It is very useful to project team because they can work according to that path. A PERT chart presents a graphic illustration of a project as a network diagram consisting of numbered nodes (either circles or rectangles) representing events.According to punmia and khandelwal PERT chart is the network technique of project planning... PERT stands for programme evaluation and rewiew techniques.. Numbers on the opposite sides of the vectors indicate the time allotted for the task. Update the PERT chart as the project progresses. 4. The critical path activities that directly impact the completion time. Activity start and end dates.K.K. Determine the proper sequence of the activities. These are called dependent or serial tasks. In the diagram.d) Elements of the PERT chart · Activity · Event (Punmia B. 8. 2012) Analysis According to Mukhopadhyay there are many advantages of creating PERT charts. Probability of completion before a specified date.I. but that the resources and time required to prepare for the user test (writing the user manual and user training) are on another path. The direction of the arrows on the lines indicates the sequence of tasks. Expected project completion time. Determine the critical path. (Mukhopadhyay. Tasks that must be completed in sequence but that don't require resources or completion time are considered to have event dependency. PERT planning involves the following steps: Identify the specific activities and milestones.d) According to Mukhopadhyay a network model that allows for randomness in activity completion times. These tasks are called parallel or concurrent tasks. PERT charts use to show oder of the process and activities.C.. and 10 must be completed in sequence. n. Khandelwal K. for example. (Punmia B.C. and nodes 1 and 3 are not dependent on the completion of one to start the other and can be undertaken simultaneously. The activities that have slack time and that can lend resources to critical path activities. 2012) Conclusion According to Mukhopadhyay he shows the process of creating PERT chart. Main advantage of this PERT is showing the path of the project. n. the tasks between nodes 1. or milestones in the project linked by labelled vectors (directional lines) representing tasks in the project. 2. These are represented by dotted lines with arrows and are called dummy activities. For example.I. . Construct a network diagram. The tasks between nodes 1 and 2. time and activities ect. (Mukhopadhyay.

The PERT chart is sometimes preferred over the Gantt chart. it can be complicated and confusing with multitudes tasks. some tasks can have some slack time without affecting the project completion time. but because Gantt charts don't illustrate task dependencies and PERT charts can be confusing. Project managers often design PERT charts for specific parts of complex projects. because it clearly illustrates task dependencies. cons it can be expensive to develop. Frequently. On the other hand. Each chart begins with one node that branches out into networks of activities. another popular project management charting method. but there are other charts PMs have at their disposal. PERT has both advantages and disadvantages. emphasizing relationships among tasks. they are used to determine and avoid surprises and minimize wastage. This type of flow chart is a common method used by project managers. The program evaluation and review technique (PERT) involves charts that display scheduled tasks for project completion. Each of these can be used for scheduling. and is part of the critical path analysis that focuses on essential tasks for project completion.update and maintain. Getting started with PERT charts Here are some additional resources for learning about how PERT charts and other project management tools are used in the enterprise: Project management tools and strategies: The Gantt chart and the PERT chart are probably the two best known charts in project management. the PERT chart can be much more difficult to interpret. especially on complex projects. project managers use both techniques. Advantages & Disadvantages of Pert PERT charts are used to plan large complex projects. PMs often use both. explains project management expert David Christiansen. . Project management charts: Beyond Gantt: Gantt charts are good for certain purposes.

and customer needs. many recent management information systems developments aim to integrate a wide number of business functions. and re-designs an organization's core business . Business process re-engineering is also known as business process redesign. knowledge management systems. BPR. A key stimulus for re-engineering has been the continuing development and deployment of sophisticated information systems and networks. Overview Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service. Write brief notes on the following (i) Re-engineering and (ii) Re-structuring Introduction Business process re-engineering is the analysis and design of workflows and processes within an organization. however. The crossfunctional team. analyzes.[1] Within the framework of this basic assessment of mission and goals. does it go on to decide how best to do it. Human Resource Management Systems and customer relationship management. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome. It can also be completely redesigned or eliminated altogether. strategic goals. cut operational costs. it is an approach for redesigning the way work is done to better support the organization's mission and reduce costs. modeled. rather than refining current ways of doing work. or business process change management. and improved. As a structured ordering of work steps across time and place. Reengineering starts with a highlevel assessment of the organization's mission.6 . and become world-class competitors. a business process can be decomposed into specific activities. Leading organizations are becoming bolder in using this technology to support innovative business processes. Enterprise resource planning. Only after the organization rethinks what it should be doing. Business Process Re-engineering (BPR) is basically rethinking and radically redesigning an organization's existing resources. is more than just business improvising. Re-engineering is the basis for many recent developments in management.[citation needed] Also. measured. particularly in terms of the wants and needs of its customers. for example. groupware and collaborative systems. such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?" An organization may find that it is operating on questionable assumptions. Basic questions are asked.[1] Reengineering guidance and relationship of Mission and Work Processes to Information Technology. business transformation. re-engineering focuses on the organization's business processes—the steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets. has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. supply chain management. Re-engineering identifies.

" In order to achieve the major improvements BPR is seeking for. the use of information technology (IT) is conceived as a major contributing factor. especially the continuous improvement or TQM movement. service. but multiplicative levels of improvement – 10x rather than 10%. it now plays a role as enabler of new organizational forms. Re-engineering . Re-engineering maintains that optimizing the performance of subprocesses can result in some benefits. This drive for realizing dramatic improvements by fundamentally re-thinking how the organization's work should be done distinguishes re-engineering from process improvement efforts that focus on functional or incremental improvement. when he states: "Today firms must seek not fractional. Often.[1] Re-engineering recognizes that an organization's business processes are usually fragmented into subprocesses and tasks that are carried out by several specialized functional areas within the organization. While IT traditionally has been used for supporting the existing business functions. it was used for increasing organizational efficiency. no one is responsible for the overall performance of the entire process. the actual process design activity. For being able to reap the achievable benefits fully. but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded.[1] (i) Definition Different definitions can be found. seeks radical rather than merely continuous improvement. and state: "Business Process Reengineering. and organizational dimensions. such as cost. This section contains the definition provided in notable publications in the field: ". service."[6] Additionally. and uses the specific techniques within the JIT and TQM ”toolboxes” as enablers. quality. BPR concentrates on core business processes. such as cost. while broadening the process vision. Johansson[7] provide a description of BPR relative to other process-oriented views.e. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers.) points out the major difference between BPR and other approaches to organization development (OD). such as Total Quality Management (TQM) and Just-in-time (JIT). although a close relative. the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical modern measures of performance."[5] "encompasses the envisioning of new work strategies. and patterns of collaboration within and between organizations[citation needed]. and speed.processes with the aim of achieving dramatic improvements in critical performance measures. human. Davenport (ibid. the change of structural organizational variables. quality. and other ways of managing and performing work is often considered as being insufficient.. and the implementation of the change in all its complex technological. and speed." Finally.. For that reason. i.

interrelated activities aiming at creating a value added output to a customer .[8] Business strategy is the primary driver of BPR initiatives and the other dimensions are governed by strategy's encompassing role. (ii) Re-structuring Restructuring is the corporate management term for the act of reorganizing the legal. training. The organization dimension reflects the structural elements of the company. or buyout. It generally a mechanism used by companies which are facing difficulties in repaying their debts. In the process of restructuring. The approach can be graphically depicted by a modification of "Leavitt’s diamond". The people / human resources dimension deals with aspects such as education. This allows company’s ability to meet debt obligations.BPR derives its existence from different disciplines. These processes are characterized by a number of attributes: Process ownership. It generally involves financing debt. some creditors may agree to . debt restructuring and financial restructuring. such as hierarchical levels. or other structures of a company for the purpose of making it more profitable. Restructuring may also be described as corporate restructuring. Other reasons for restructuring include a change of ownership or ownership structure. the composition of organizational units. and four major areas can be identified as being subjected to change in BPR .where a process view is used as common framework for considering these dimensions.is the basic underlying idea of BPR. value adding. Technology is concerned with the use of computer systems and other forms of communication technology in the business. demerger. repositioning. and reorganizing or reducing operations. motivation and reward systems. or a response to a crisis or major change in the business such as bankruptcy. Strategic restructuring reduces financial losses. technology. In BPR. as part of process. and cross-functionality. or better organized for its present needs. information technology is generally considered as playing a role as enabler of new forms of organizing and collaborating. The basic nature of restructuring is a zero sum game. Executives involved in restructuring often hire financial and legal advisors to assist in the transaction details and negotiation. strategy. Corporate debt restructuring is the reorganization of companies’ outstanding liabilities. and people . customer focus. operational. rather than supporting existing business functions. selling portions of the company to investors. and the distribution of work between them[citation needed]. The concept of business processes .organization. simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company. Also. ownership. the credit obligations are spread out over longer duration with smaller payments.

Nicknamed the “London Approach” in the UK. Characteristics Cash management and cash generation during crisis Impaired Loan Advisory Services (ILAS) Retention of corporate management sometimes "stay bonus" payments or equity grants Sale of underutilized assets. valuations are used as negotiating tools and more than third-party reviews designed for litigation avoidance.. Steps: ensure the company has enough liquidity to operate during implementation of a complete restructuring produce accurate working capital forecasts provide open and clear lines of communication with creditors who mostly control the company's ability to raise financing update detailed business plan and considerations[1] Valuations in restructuring In corporate restructuring. it is termed a stub). This approach became impractical in the 1990s with private equity increasing demand for highly leveraged capital structures that created the market in high-yield and mezzanine debt..exchange debt for some portion of equity. and distribution Renegotiation of labor contracts to reduce overhead Refinancing of corporate debt to reduce interest payments A major public relations campaign to reposition the company with consumers Forfeiture of all or part of the ownership share by pre restructuring stock holders (if the remainder represents only a fraction of the original firm. This process tries to resolve the difficulties faced by the corporate sector and enables them to become viable again. . European banks handled non-investment grade lending and capital structures that were fairly straightforward. This distinction between negotiation and process is a difference between financial restructuring and corporate finance. marketing. restructurings focused on avoiding debt write-offs rather than providing distressed companies with an appropriately sized balance sheet. It is based on the principle that restructuring facilities available to companies in a timely and transparent matter goes a long way in ensuring their viability which is sometimes threatened by internal and external factors. Increased volume of distressed debt drew in hedge funds and credit derivatives deepened the market—trends outside the control of both the regulator and the leading commercial banks.[1] Restructuring in Europe The “London Approach” Historically. such as patents or brands Outsourcing of operations such as payroll and technical support to a more efficient third party Moving of operations such as manufacturing to lower-cost locations Reorganization of functions such as sales.

more efficient. the parent company will likely resell it at a profit if the restructuring has proven successful. better organized. R&D and business engineering. If the restructured company was a leverage acquisition. [edit] Results A company that has been restructured effectively will theoretically be leaner. and better focused on its core business with a revised strategic and financial plan. .Improving the efficiency and productivity through new investments.

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