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Project Management A firm is organized into various departments such as production purchasing marketing finance personnel engineering research

search and development. Some of the three departments have a line function and others have staff function. Live managers have the principal responsibility for achieving goals of the firm and are vested with decision making authority. Staff managers primarily serve in an advisory capacity of course, within the staff departments they enjoy administrative power. What is a project? A project can be defined as a scientifically evolved work plan devised to achieve a specific objective within a specific period of time. OR A project is a complex, non routine, one time effort limited by time, budget, resources and performance specifications designed to meet customers needs. Like most organizational effect, the major goal of a project is to satisfy a customers need. Beyond this fundamental similarity, the characteristics of a project help differentiate it from other organization. The major characteristics of a project are as follows: 1. An established objective 2. A defined life span with a beginning and an end 3. Involvement of several departments and professionals 4. Typically, doing something that has never been done before. 5. Specific, time, cost and performance requirements 6. A project is a non-routing, non repetitive e undertaking often plagued with many uncertainties.

7. The relationship in a project setting are dynamic, temporary and flexible. What a project is not? A project should not be confused with every day work. A project is not routine, repetitive work, ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once; a new product or service exists when the project is completed. Recognizing the difference is important because too often resources can be used up on daily operations which may not contribute to longer range organization strategies that require innovation new products. The terms of program and project are often used interchangeably in practice, which sometimes causes confusion. Programs and projects are similar in the sense that they both are directed toward goals and require plans and resources to reach their goals. Both use similar tools, methods and policies. A program is a series of coordinated related multiple projects that continue over extended time intended to achieve a goal. A program is a higher level group of projects targeted at a common goal. A project management include some different forms of organization, planning, controlling and improving the human resources in project. Therefore, the issues relating to project management can be divided into five sections: 1. Forms of project organization 2. Project planning 3. Project control 4. Human aspects of project management 5. Pre-requisites for successful project implementation

1. Forms of Project Management: The traditional form of organization is not suitable for project work for the following rationale: a) It has no means of integrating different departments all levels below the top management. b) It does not facilitate affective communication, coordination and control, when several functional departments with different professional backgrounds and orientations are involved in project work under time and cost pressures. The project organization may take any of the following three forms: i) ii) iii) Line and staff organization Divisional organization Matrix organization

2. Project planning A project involves few activities such as resources, constraints and interrelationship between human resources. The need for formal planning is needed much greater for project work than for normal operation without effective planning. There may be CHAOS. Planning is a vital aspect of project management and it can provide a basis for right organizing allocating of responsibilities to individuals, better communication between all project departments and project members and also establishes the basis for monitoring and control. 3. Project control No sooner is the project launched, controls becomes the dominant concern of the Project Manager. Project control involves a regular comparison of performance against targets, a search for the deviation and a commitment to check adverse variances. This function of project management serves two functions:

i) ii)

Ensures regular monitoring of performance It motivates project personnel to achieving project objectives

4. Human aspect of project management: A satisfactory human relations systems is essential for the successful execution of a project. Without such a system, the other systems of project management, however sound they may be by themselves, are not likely to work well. Some technical problems can be solved with additional investment of resources, but people problems may not be amenable to satisfactory solution in the short span of the project life. To achieve satisfactory human relations in the project setting, the project manager must successfully handle problems and challenges relating to authority, orientation, motivation and group functions. 5. Pre-requisites for successful project implementation: Time and cost are must important every project and also some other pre-requisites to achieve a successful project are as follows: i) ii) iii) iv) v) vi) Adequate formulation Sound project organization Proper implementation planning Timely availability of funds Equipment requirement Better contract management and effective monitoring

The key techniques in project management: To accomplish of a project objective, a manager needs to know about some key techniques in project management. These key techniques are as follows:

1. Define the task 2. Know what total resources are required to perform the task 3. Know the time scale in terms of all activities, events and resources 4. what quality and reliability is to be achieved. 5. Know the product costs 6. make a continuous and disciplined approach to optimize the value 7. Measure the project performance To define a task we must ask some questions and receive answers we need to know. a) What is the task? b) Describe it and identify it? c) Specify it in as much detailed a manner, as possible. d) What are we trying to do or make? e) What are the principal functions? f) What are the existing special features? g) What are the new engineering or manufacturing processes available? h) Are there any new standards of quality and reliability? i) Are there any special time scales prices costs risks etc.? 2. This key techniques entails inquiring questions not only about the resources available for the project in terms of finance, in terms of human effort, physical and mental, in terms of materials and equipment, in terms of space to perform the task and in terms of services. To accomplish this, it is essential to understand the scope of the lexicon used: a) Finance implies provision for budgets, cash flow and risk analysis. b) Human effort must be in terms of type grade ability and suitability. It also includes supervision and management types. c) Materials would mens special raw materials plant equipment and consumables.

d) Space would mean land, building, warehouses, roads and offices. 3) Time scales is a key techniques in project management, time scales must be translated to meet an acceptable, economical and time table. The earlier a project is completed, the greater is its marketability power. Shorter time scales without accompanying cash costs enable earlier sales give better cash flow returns on the investment. 4) IN modern situation and technology and value controls techniques, quality and reliability can be obtained at no extra cost in some cases at less cost, this would mean looking for newer technologies, looking for the best quality in comparative situations to achieves more customers satisfaction. 5) The products price may be set after the establishment of costs or by other considerations like marketing or better in any project known about products costs, can help us to better utilization of resources and select the best way to produce and managing the project processes. The Importance of Project Management: Management decides and implements the ways and means to effectively and efficiently utilize human and non human resources to reach predetermined objectives. In a small sense project managers perform the same functions as other managers. That is, they plan schedule motivate and control various types of managers exist, because they firm special needs. For example, the marketing managers specializes in distribution product or services the production manager specialize din conversion of resource to outputs the financial manager ensures adequate funds are available to keep the organization viable. The project manager

is unique, because she/he manages temporary non repetitive activities and frequently acts independently of the formal organization. Project Managers are the direct link to the customer and must manage the interface between customer expectations and what is feasible and reasonable. They provide direction, coordination and integration to the project team which is often made up of part time participants loyal to their functional departments. Project Managers are responsible to performance on the right time and right way to achieve the project objectives. They must ensure that appropriate trade offs are made between the time cost and performance requirements of the project. Clearly, project management is a unique and challenging profession. Project Planning and Management: Project planning is the process of defining and orderly arrangement of activities and resources to deliver a unique product or service. The project is the primary document developed during the planning and phase and communicates project activities in terms of: 1. What will be applied to accomplish the tasks? 2. What task will be performed? 3. Who will perform the tasks? 4. When will the tasks be performed? 5. How the tasks will be sequenced? Time spend developing the appropriate structure for organizing and managing project activities, improves performance in the execution and control phase. Activities and documents in the planning phase of project; The project plan is actually a combination of numerous component plans that are developed during the project planning phase. The project planning phase

consists of two sets of inter-related processes, core processes and facilitating processes. The relationship between the core and facilitating processes are depicted below. Core processes represent a set of critical activities that are dependant on each other and are executed in an explicit order. Execution of the core processes begins with the review and refinement of the project scope and objectivities found in the project charter. From the refined project scope and objectives, the work breakdown structure (WBS) is built. The WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project (PMBOK). The WBS becomes the foundation for development of the organizational breakdown structure (OBS), the sequencing of activities and the development of the resource plan. Development of the resource plan also requires input from the OBS. The OBS defines the organizational units responsible for a specific project component or task and the resource plan identifies the specific resources, which will be allocated to the project component or task. Project schedule development is dependent on input from the resources plan and activity sequencing processes. The project schedule provides a representation of predicted tasks, milestones, dependence resources requirements, task durations and deadlines. The project schedule and resource plan provide input to the budget planning processes. The budget plan identifies the available funding and costs associated with a defined set of activities during a specified time period, finally the performance planning is developed with input form the refined scope and objectives and the budget plan. The performance plan defines how the project

success or failure is measured. The project plan component documents into that result from execution of the core processes are: Work break down structure Resource plan Project schedule Project budget Performance plan Facilitating processes represent planning activities that are not dependent on other processes. The facilitating processes are performed intermittently during the project planning phase on needed basis. These processes will frequently affect components of the plans developed from the core processes. The planning documents resulting from the facilitating processes are: Risk management plan Procurement plan Communication plan Change and configuration management plan Quality management plan The project life cycle: Project life cycle is a way to illustrating the unique nature of project work. Some of project managers find it useful to use the project life cycles as the cornerstone for managing projects. The project life cycle recognizes that projects have a limited life span and that there are predictable changes in level of effort and focus over the life of the project. The project life cycle typically passes sequentially through four stages, these stages are as follows:

1) Defining stage Specification of the project are defined, project objectives are established, teams are formed, major responsibilities are assigned. 2) Planning stage: The level of effort increases, and plans are developed to determine what the project was entail. When it will be scheduled, when it will benefit what quality level should be maintained and what the budget will. 3) Executing stage: A major portion of the project work takes place both physical and mental. The physical product is produced, bridge-software programs, time cost and specification measures are sued for control its project on schedule, on budget and meeting specification. What are the forecasts of each of these measures? What revisions/changes are necessary> 4. Delivery stage: This stage include two activities; 1) Delivery the project product to the customers. 2) Redeploying project resources Delivery of the project might include customer training and transforming documents. Redeployment usually involves releasing project equipment/materials to other projects and finding new assignments for team members. What is the project plan?


A project plan is a formal, approved document that is used to guide both project execution and project controls. The project plan is used to guide execution and control of the project. It forms that the basis for all management efforts associated with the project. The project plan can also be used to communicate with project stakeholders and gain support and understanding of the project. The project manager and project team develop the project plan through execution of the project planning processes and present the plan to management for approval. Information documented in the project plan evolves as the project moves through multiple taxation of the planning process, changes made to any component of the project plan can effect other plan components and thus requires the review of all planning documents. The project plan should include the following: General project information Project executive summary Project performance plan Work breakdown structure Resource plan Project schedule Project budget Procurement plan Risk plan Communications plan Change and configuration plan Quality management


Project scope and objective analysis: The scope and objectives of the project were defined at a high level in the project intimation phase. The project manager and team members developing the project plan, may not have been involved in the project initiation phase. Before project plan development begins, the project manager and team must develop a through understanding of the project scope and the project objectives: A detailed project scope identifies: 1. What the project deliverables are? Where, when and to whom the deliverables are distributed? What process or technology solution is proposed? Who (group organization or key person) performs the work? When and where the work is performed? When, where and to the project will deliver the intended product or services? Project objectives are the desired outcome of a project and should align with the business needs of the organizations. The project objectives are directly related to the deliverables described in the scope and to business objectives described in the project proposal and project charter. The project charter presents the project objectives in relation to the organizations/strategies plan. The project objectives should be defined to facilitate development of detailed project plans. Ultimately, project objectives represent the criteria used to determine success or failure of the project. Every project is unique, consisting of unique scope of work, the scope of work is the most important part of project. The first act of the project planner is to define the scope of project in detail, though defining the scope of work is the hardest part of project planning.


Scope triangle: Time cost resources are three elements of scope triangle. The interrelationship of the main characteristics of a project that is time cost and resources is indicated below by the graphics: The area of the triangle represents the scope and quality of the project. Cost time and resources bound the triangle of the scope of the project is not changed, all the boundaries remain unchanged. However, in reality, changes do occur resulting in cost over runs, time over runs and also over use of resources. Normally, 1. Customer / client controls requirements 2. Management controls cost and resources level 3. Project manager controls schedules and resources utilization A proper understanding of the roles and their impact on the project is essential for the success of the project. What is the project? 1. Project is a one-shot, time-0set, goal directed, major undertaking, requiring the commitment of varied skills and resources. 2. A project is a combination of human and non-human resource, pulled together in a temporary organization to achieve a specified purpose. 3. Project is a specific activity on which money is spent in the expectation of returns. 4. A project is an appraisal for investment with the definite time of producing a flow of output over a specific period of time.


5. A Project is a system involving coordination of a number of inter-related activities to achieve a specific objective. Project characteristics: 1. Project is a complex set of things 2. Project is customers specific 3. Project is unique and no two projects are similar 4. Projects calls for team work 5. Project has a life cycle 6. Project has learning component 7. Project is exposed to risk and uncertainty 8. Project has a mission or a set of objectives 9. Project has a beginning and end 10. Project process is flexible 11. Project is inter-related 12. Project involves varied analyses in its successful completion 13. Project implementation calls for monitoring and control 14. Planning is a core of a project. 15. Project management is coordinates all the activities from the conception to completion project. Project Management: 1. Project management is a specialized branch of management capable of differentiation from others on a variety of factors. 2. Project management is an existing managerial activity. 3. Project management is effective in a project oriented autonomous structures, it provides total authority in regards to functional policies and procedures.


4. The project management and project team should have a good understanding of the fundamental project requirement such as project planning project control project evaluation project implementation. 5. In project management all works are inter-dependent and inter-related. 6. Communication has a key role in project management. 7. PM is both in art as well as science. 8. Project management provide all insight into formulation financing administration and control of projects. 9. The key factor in a successful project is the element of coordination between the client and the project managers. It is essential to have the domain knowledge, besides knowing the technology. A project manager needs to have people management skills. Feasibility study: It is necessary to conduct feasibility study before any project planning work is undertaken. The feasibility study has different tasks from those of the project itself. The starting point of the feasibility study is usually the project outline or project statement. The outline of the project indicate the problems and opportunities that form the background for starting the project. The study should define precisely the objectives and the goals of the projects. The important task of the feasibility study is to identify and analyse the alternative possible. Many different types of solution from which one can choose creativity and analytical work are important in feasibility study. The task to be handled in feasibility studies are: a) Define the project goals what the project should achieve. b) Identify, analyze, evaluate the alternatives set tuitions and remained the one that meet the goals.


Guidelines for feasibility study: 1. Survey of raw materials requirement plant size, process product. 2. Market survey for demand study 3. Technical study (raw material requirement plant, size process products. 4. Location study that includes information such as land availability, infrastructure facility, environmental impact. 5. Financing that includes capital cost working capital, operating cost, financial structure for the project and sources for financing. 6. Profitability and cash flows analysis. Project management body of knowledge (PMBOK) and Project management institute (PMI) Project management institute (PMI) The project management institute was founded in 169 with the goal of developing standards for project management practices. Project management institute PMI is a world wide organization dedicated to promoting the use of standardized project management techniques across industries. They have outlined processes and techniques in their own publication, a guide to the project management body of knowledge (PMBOK), numerous other books exist that explore PMI techniques in depth that you might want to pursue after sparking your interest with this book. These are some web sites for PM: 1. 2. 3. 4. 5.


Chapter 2: Project Planning 1. Project integration management 2. Project plan, execution, change control 3. Project scope management 4. Initiation, planning, scope definition, verification 5. Scope change control 6. Project time management 7. Activity definition and sequencing 8. Duration estimating, scheduling and controlling 9. Project cost management 10. Project quality management 11. Project HRM 12. Project risk management 13. Project procurement management Project Planning: Till recently the main emphasis in project management was in the technique of project planning and control and in particular. Those concerned with scheduling the work there is much more to project planning and control than the use of these techniques. Planning launches a project and effective planning is critical to the success of the project. Project planning and control for simplification can be termed as project control. All the activities and organizational units involved are brought under project control. Activities such as material management, design, quality, safety, human resources, planning and cost management will become integral post of project control. Therefore, planning and project control are critical. For achieve to these critical activities we need to some pre-requirements. These are such as follows:

1. Define the objectives of the project and project strategies 2. Allocate task to team members and define the responsibilities 3. Evolve proper sequence of work 4. Allocate required resources (human money and materials) 5. Establish the communication system 6. Establish procedures for communication system 7. Establish line of communication with the top management 8. Develop cohesive team members 9. Motivate the project staff 10. work out implementation schedule 11. Prepare histogram of manpower 12. Develop cash flow chart 13. Establish project appraisal system 14. Encourage the project manager to manage the project 15. Improve employees to take decisions in different levels 16. Establish linkage with all groups and companies 17. Establish control procedures 18. Establish mechanism for periodical review of progress, resources requirement and resources reallocation OE and when required throughout the project life cycle. 19. Develop documentation procedure 20. Ensure achievement of the project objectives and successful completion of the project within cost time and resources A project is a set of unique activities that should be completed within a specified time and cost, utilizing appropriate resources. Some would argue, that planning is a waste of time and money. No sooner the plan is framed and completed, something may happen calling for a change in the plan. We should understand a


project plan is dynamic. Therefore, changes are expected, a well thought act plan will clearly indicate, a) What is to be done? Why is it to be done? When is to be done? What are the resources required? And What are the acceptance criteria for successful completion? Pitfalls in the project planning: The following can create pitfalls in planning: Lack of motivational planning: A good planning should provide ach and every one associated with the project, a common understanding of the project. Planning should motivate team members for the task and provide a platform for involvement and cooperation. Planning must be a group activity of all the core team members and principal players involved, in their planning. 2. Level of planning: A plan that is too broad in scope cannot be used for effectively communicating with the project staff. Normally project managers concentrates on planning the project activity by activity and crow the plan document with special technology. Normally the senior management always interested in whether the project will achieve goals or not. They need an overall view of the project, probably a milestone plan is needed for reporting programs of the plan to the management. Therefore, planning has to be derived basically into two different plans: 1. Milestone plan

2. Detailed plan to be drawn as a group activity after the work starts With this, there will be a commitment of the team and also the plan will be more realistic based on more information forthcoming at the starting stage of the project. 3. Omissions of activities: It has already been discussed that every project is unique in nature depending on the political situation, environmental conditions laws of the land. 4. Over estimate of efficiency of resources: In the authors opinion the resources required are not only human resources, machinery and finance but also timely decision from the top management and trust and confidence of the low management in the team members. 5. Too much emphasis on deadline 6. Overlooking last time Project planning and organization of project strategy: Strategy is implemented through projects. Every projects should have a clear link to the organizations strategy. Project managers commonly complain that projects appear out of nowhere. Comments such as the following are samples of those heard in practice: 1. Where did this project came from? 2. Should I stop working on this project and start on the new one. 3. Why are we doing this project? 4. How can all these projects be first priority? 5. Where are we going to get the resources to do this projects? 6. What are the project objectives? 7. What are the obligation for achiever these objectives?

8. How can we manage this project better? There are too many organizations in which many managers cannot identify a project priority and link it. With the strategic plan, every project should contribute value to the organizations strategic plan, which is designed to meet the future needs of its customers. Ensuring a strong linkage between the strategic plan and projects is a difficult task that demands constant attention from to and middle management. The larger an organization, the mere difficult it is to create and maintain the strong link. But unfortunately, many organizations have not developed a process that clearly align project selection to the strategic plan. The result is poor utilization of the organization resources such as people money equipment lands and building and core competencies. How can an organization ensure this link and assignment? The answer requires integration of projects with the strategic plan. Integration assumes the existence of strategic plan and a process for prioritizing project by their contribution to the plan. A crucial factor to ensure the success of integrating the plan with projects lies in the creation of a process that is open and published for all participates to review. Why project managers need to understand strategy: Project management historically has been preoccupied solely with the planning and execution of projects strategy was considered to be under the purview of senior management. This is old school thinking, new school thinking recognizes that project management is at the apex strategy and operations. In the modern evolving organization, project managers will be on business aspects, and their role will expand from getting the job done to achieving the


business results and winning in the market place. There are two main reasons, why project managers need to understand their organizations mission and strategy. First reason is so they can make appropriate decisions and adjustments for examples, how a project manager would respond to a suggestion of modify the design of a product to enhance performance to be a product leader through innovation or to achieve operational excessive through low cost solutions. Second reason is, project manager need to understand their organizations strategy is so that they can be effective project advocates. Project managers have to be able to demonstrate to senior management how their project contributes to their firms mission. Project managers also need to be able to explain to team members and other stakeholders why certain project objectives and securities are critical. Strategy management process for project planning: Strategic management is the process of assessing what we are and deciding and implementing what we intend to be and how we are going to get there: strategy describes how an organization intends to compete with the resources available in the existing and perceived future environment. What are the two major dimensions of strategic management? 1. Scanning of the external environment for allocation scarce resources of the firm to improve its competitive position for survival in a dynamic competitive environment. 2. The second dimension is the internal responses to new action programs aimed at enhancing the competitive position of the firm. But the nature of the responses depends on the type of business, environment volability, competition and the organizational culture.

Strategic management provides the theme and focus of the future direction of the organization. It support consistency of action at every level of the organization. It encourages integration, because effort and resources are committed to common goals and strategies. Strategic management positions the organizations to meet the needs and requirements of its customers for the long term with the long time position identified, objectives are set and strategic are developed to achieve objectives and then translated into action by implementing projects. Strategy can decide the survival of an organization, most organizations are successful in formulating strategies for what can they should pursue. However, the problem in many organizations in implementing strategies, that is, making them happen. Integration of strategy formulation and implementation often does not exist. The components of strategic management are closely linked and all directed toward the future success of the organizations. Strategic management requires strong links among mission goals objectives strategy and implementation. The mission gives the general purpose of the organization, goals give global targets within the mission. Objectives give specific targets to goals. Objectives give rise to formulation of strategy to reach objectives and strategies require actions and tasks to be implemented. Four activities of the strategic management process in project: The typical sequence of activities of the strategic management process outlined here, these are as follows: 1. Review and define the organizational mission 2. Sat long range goals and objectives

3. Analyze and formulate strategies to reach objectives 4. Implementation of strategies through projects 1. Review and define the organizational mission: The mission identifies what we want to became, mission statements identify the scope of the projects (organizations) in terms of its products and services. A written mission statement provides forms for decision making when shared by organizational managers and employees. Everyone in the organizational or project should be know about organization (projects), mission. IN the other world, mission statements can be used for evaluating organization performance. Mission statements change infrequently. However, when the nature of the business changes or shifts, a revised mission statement may be required. 2. Set long range goals and objectives: Objectives translate the organization mission in to specific, measurable terms, organizational objectives set targets for all levels of the organization. Objectives answer in detail where a firm is handed and when it is going to get there. Typically, objectives for the organization cover markets, products, innovation, productivity, quality, profitability and employees and consumers. In every case, objectives should be as operations as possible, that is objectives should include a live from, be measurable be an identifiable state and be realistic. Each level below the organizational objectives should support the higher level objectives in more detail, this frequently called, cascading of objectives. 3. Analyze and formulate strategies to reach objectives: Formulating strategy answers the question of what needs to be done to reach objectives. Strategy formulation includes determining and evaluating

alternatives that support the organizations objectives and selecting the best alternative. What are the steps of formulate strategies? 1. 1st step is a realistic evaluation of the past and current position of the enterprise or project. This step includes an analysis of who are the customers and what are their needs. 2. 2nd step is an assessment of the internal and external environments, what are the internal strengths and weakened the project. Examples of internal strengths or weaknesses could be core competencies, such as technology, product quality, management talent, and dealer networks and leaderships, opportunities usually represent external forces for change such as technology, industry structure and competition competitive benchmarking took are sometimes use have to current and future direction. The assessment evaluation process of the external and internal environments in known as the SWOT analysis (strengths weaknesses opportunities and threats). Strategy formulation ends with cascading objectives or tasks assigned to lower divisions, departments or individuals. Formulating strategy might range around 20% of management effort, while determining how strategy will be implemented might consume 80 percent. Characteristics of objectives: S: Specific: be specific in targeting on objectives M: Measurable: Establish a measurable indicates of progress A: Assignable: Make the objectives assignable R: Realistic: state what can realistically be done with available T: time related: states when the objectives can be achieved

4. Implement strategies through projects: Implementation answers the question of how strategies will be realized given available resources. Implementation requires action and completing tasks, therefore, implementation must include attention to several key areas: 1. First, completing task, requires allocation of resources, resources represent, people management talent, technological skills and equipment. 2. Second, implementation requires a formal and informal organization that complements and support strategy and projects. 3. Third, planning and control systems must be in place to be contain project activities necessary to ensure strategies are affectively performed. 4. Fourth motivating project contributions will be a major factor for achieving project success. 5. Finally, an area receiving more attention in recent years is prioritizing projects. Project Integration management: Some project managers have used some tools that are useful for managing projects. For example, networks bar charts task forces pert CPM and scheduling all have been used sometimes very successfully and other times with poor results. As the world becomes more competitive, the importance of managing the process of project management and getting it right the first time takes in new meaning. In Project management, piecemeal tools piecemeal approach techniques fail to be integrated throughout the project life cycle. Piece meal approach is balance the application of project planning and control methods with appropriate adjustment in the organization culture is support project.


Integration will mean carefully establishing linkages among the piecemeal systems already in place and altering the focus on one total system. At the individual level, for some professionals to become effective project managers will require augmenting their leadership and team building skills with modern project planning and control methods. Integration in project management directs attention to two key areas: 1. Integration of project with the strategic plan 2. Integration within the process of managing actual projects Integration of projects with the strategic plan: In some organizations, selection and management of project after fail to support the strategic plan of the organization. Strategic plans are written on group of management, projects selected by another group and projects implemented by another group these independent decisions by different groups of managers, create a set of conditions leading to conflict, confusion and frequently on unsatisfied customer. Under these conditions, resources of the organization are vested in nonvalue added activities/projects. An integrated project management system is one in which are the points are inter related. A change in any one of the parts will influence the whole project. But in this procedure development of a mission, objectives and organization strategies depend on the external and internal environmental facts. External environmental factors are usually classified as political social economical and technological. Internal environmental factors are frequently classified as strengths weaknesses such as management facilities core competencies and financial condition. The outcome of the analysis of all those environmental factors is a set of strategies designed to best meet the needs of customers. In this processes, implementing strategies is the most difficult step. Strategies are typically

implemented through projects. The key is selecting form the many proposals those projects that make the law best and most balanced contribution to the objectives and strategies of the organization. Integration within the process of managing actual projects; There are two dimensions within the project management process. 1. First dimension is the technical side of the management process, which consists of the formal, disciplined, pure logic parts of the process. This dimension includes planning scheduling and controlling projects. Clear project scope statements are written to link the project customer and to facilitate planning and control. Creation of the derivables and work breakdown structures facilitate planning and monitoring the progress the project. 2. Second dimension is the socio cultural side of the project main process. This dimension involves the much messier, often contradictory and paradoxical world of implementation. Project managers must shape a project culture that stimulates team work and high levels of personal motivation as well as a capacity to quickly identify and resolve problems that threaten project work. This dimension also involves managing the interface between project and external environment. Overall the manager must been a cooperative social network among a divergent set of allies with different standards, commitments and perspectives. Some suggest that the technical dimension represents the science of project management, but the socio cultural dimension represent the art of managing a project.


Change control: A major element of the risk control process is change management changes in a project come from many services such as the project customer owner project manager project team members project sources project, territory and project time and cost. Most changes easily fall into three categories; 1. scope changes in the form of design or additions represent big changes, for example, customer requests for a new feature or a redesign that will improve the product. 2. Implementation of contingency plans, when risk events occur, represent changes in baseline costs and schedules. 3. Improvement changes suggested by project team members represent another category Change control systems involve reporting, controlling and recording larger to the project baseline. Change control system is a important of organizing, some organizations consider change control systems of configuration management. IN practice most change control systems are designed to accomplish the following: 1. Identify proposed changes 2. List expected effects of proposed changes on schedule and budget 3. Review, evaluate and approve or disapprove changes formally 4. Negotiable and resolve conflicts of change, condition and costs 5. Communicate changes to parties affected 6. Assign responsibility for implementing charge 7. Adjust master schedule and budget 8. Track all changes that are to be implemented


As part of the project communication plan, stakeholder, define up from the communication and decision making process that will be used to evaluate and accept changes. The process can be shown in a flow diagram: Change originates on small projects this processes may simply entail approach of a small group of stakeholders. On large projects elaborate decision making processes are established, with different processes being used for different kind of change. Change request submitted: Regardless of the nature of the project, the goal is to establish the process for introducing necessary changes in the project in a timely and effective manner. Review change request: One of the key to a successful change control process is document, document, document. The benefits derived from change control systems are the following: 1. Inconsequential changes are discouraged by the formal process 2. Costs of changed are maintained in a long 3. Integrity of the WBS and performance measure is maintained. 4. Allocation and use of budget and management reserve funds are tracked. 5. Responsibility for implementation is clarified. 6. Effect of change is visible to all parties involved 7. Implementation of change is monitored 8. Scope changes will be quickly reflected in baseline and performance measures Clearly, change control is important and requires that someone or some group be responsible for approving changes, keeping the process updated and


communicating changes to the project team and relevant stakeholders, project control depends heavy on keeping the change control process current. A good question: How are the WBS and change control connected? Project objective: The first step of project scope definition is to define the overall objective to meet your customers needs. For example, as a result of extensive market research a computer software company decides to develop a program that automatically translates verbal sentences in English to Persian. The project should be completed within three years at a cost not more than $ 5 million. 3. Deliverables: the next step is to define major deliverables, the expected outputs over the life of the project. 4. Milestone: A milestone is a significant event in a project that occurs at a point in time. The milestone schedule shows only major segments of work, it represents first, rough cut estimates of time, cost and resources of the project. The milestone schedule is built using the deliverable as a platform to identify major segments of work and an end date. 5. Technical requirements: More frequently than net, a product or serve will have technically requirements to ensure proper performance. For example for evaluation and analysis of some data we need to a pc with sufficient capacity. 6. Limits and exclusion: The limits of scope should be defined. Failure to do so can lead to fails expectation and to experiencing resources and time on the wrong problem. For example a project can has some limitations such as limitation for geographical area. Budget limitation, resource and time limitation exclusion further define the boundary of the project by stating what is net included.

7. Review with customer: Completion of the scope checklist ends with a review with your customer internal or external. The main concern has is the understanding and agreement of expectations. Is the customer getting what he or she desire in deliverable and does the project definition identify key accomplishments, budgets, timing and performance requirement. In summary, close relation with your customers is necessary to develop a project definition that meets all the requirement of the customers clear scope definition ensures you will know when a change in scope. A clear project scope definition is the primary pre-requisite for developing of your work breakdown structure/scope definition provides an administrative plan that is used to develop your operational plan. Scope definition should be as brief as possible, but complete, one or two pages are typical for small projects. Different industries and companies will develop unique check lists and templates to fit their needs and specific kinds of profits. Many companies engaged in contracted work refer to scope statements as statement of work (SOW). Other organizations use the term project charter. However, project charter has different meaning in the word of project management. One meaning is an expanded version of the scope statement, described above that might include such items risk limits, customer needs, spending limits and even team composition. Establishing project priorities: Quality and the ultimate success of a project are traditional defined as meeting and/or exceeding the expectation of the customer and/or upper management in terms of cost, budget, time, schedule and performance, scope of the project. The inter-relationship among these criteria varies for example, sometimes it is necessary to compromise the performance and scope of the project


to get the project above quickly or less expensively after the longer a project takes, the more expensive it becomes. However, a positive correlation between cost and schedule may not always be true and in the other hand times project costs can be reduced by using cheaper, less efficient labor or equipment that extends the duration of the project. Therefore, a manager can crash activities by adding additional labor, money and other resources for decrease the projects time, thereby raising the original cost of the project. One of the primary jobs of a project manager is to manage the trade offs among time, cost and performances. So project manager must define and understand the nature of the priorities of the project. One technique that is useful for better understanding about the project nature and some other aspects of project is priority matrix. Its identifies which creation is constrained, which should be enhanced and which can be accepted. 1. Constraint The project must meet the completion date, specifications and scope of the project or budget. 2. Enhance Given the scope of the project, which criterion should be optimization in the case of time and cost, the usually means taking advantage of opportunities to reduce costs or shorten the schedule. Conversely with regards to performance, enhancing means adding value to the project.


3. Accept For which criterion is it tolerable not to meet the original parameters, when trade offs have to be made, is it permissible for the schedule to slip, to reduce the scope and performance of the project or to go over budget? The below figure displays the priority matrix for the development of a new cable modem. Because time to market is important sales, the project manager is instructed to take advantage every opportunity to reduce completion time. In doing so, going over budget is acceptable though not desirable. At the same time, the original performance specifications of the modem as wel as reliability standards cannot be compromised. In summary, developing a decision priority matrix for a project is a useful exercise. It provides a form for clearly establishing priorities with customers and top management to create expectations and avoid misunderstanding the priority information is essential to the planning process, where adjustments can be made in the scope schedule and budget allocation. Step 3: Creating the work breakdown structure (WBS) The work of the project can be successively sub divided into smaller and smaller work elements. The outcome of this hierarchical process is called the work breakdown structure (WBS). The WBS is a map of the project use of WBS helps to assure project management that all products and work elements are identified, to integrate the project with the current organization, and to establish a basis for control. Basically, the WBS an outline of the project with different levels of detail. Major project work deliverables / systems are identified first, then the sub deliverables necessary to accomplish the larger deliverables and defined. The process is repeated until the sub deliverable detail is small enough to be manageable and where one person can be responsible. This sub deliverable is

divided into work packages, beams the lowest sub deliverable usually includes several work packages, the work packages are grouped by type of work. How WBS helps the project manager? The WBS defines all the elements of the project in a hierarchical frame work and establishes their relationships to the project and items. Think of the project as a large work package that is breakdown into smaller work packages, the total project is the summation of all the smaller work packages. This hierarchical structure facilitates, evaluation of costs time and technical performance at all levels in the organization over the life of the project. The WBS also provides management with information appropriate to each level. As WBS is developed, organizational units and individuals are assigned responsibility for accomplishment of work packages. This integrates the work and the organization. In practice, the process is sometimes called WBS. The WBS also makes it possible to plan, schedule and budget, it gives a frame work for tracing cost and work performance. The WBS defines communication channels and assists in understanding and coordinating many parts of the project. A WBS is similar to a company organization chart or a form tree. In short, WBS, a deliverables oriented hierarchy that defines all the work of the project. Each succeeding level has more detail the level above it. Only the work of the project is included in the WBS this may seen obvious, but if the work is not shown in the WBS, its outside the scope of the project and should be noted as such. Scope creep a phenomenon where the scope of the project changes over time because of lack of agreement on the original scope statement not sticking to the original scope statement, or not having a scope statement.


What is the work packages? Work package is the lowest level in WBS. Resource assignments and time and cost estimates are established at this level. It doesnt matter whether the WBS has three levels or five levels the lowest level in either case is considered the work package level. If you are working on a very large project, the project should be broken down into smaller sub projects, rather than individual deliverables, level 1 still remains the overall project, level 2 becomes sub projects within the project and level 3 may also be sub projects within the sub projects or this level might short the break out of deliverables. This last level or lowest level is called work package. The lowest level of the WBS is called work package. Where packages are short duration tasks that have a definite start and stop point consumer resources and represent cost. Each work package is a control point, a work package manager is responsible for seeing that the package is completed on time, within budget and according to technical specifications. There is an important differences between the last work breakdown sub deliverable and a work package. Typically a work breakdown sub deliverable includes the outcomes of more than one work package from perhaps two or three departments. Therefore, the sub deliverable does not have a duration of its own and does not consume resources or cost money directly. The resources and costs for the sub deliverable are simply the summation of the resources and cost for all the work packages in the work sub deliverable. This is the basis for the term project follow up starting with the work package, cost and resources can be rolled up into the higher elements. The higher elements are used to identify deliverables at different phases in the project and to develop status report during the executing stage of the project life cycle. Thus, the work package is the basic unit used for planning, scheduling and controlling the project.

Each work package in the WBS: 1. Define the work (what) 2. Identifies time to complete a work package (how long) 3. Identifies a time phased budget to complete a work package 4. Identifies the resources needed to complete a work package (how much) 5. Identifies a single person responsible for units of work (who) 6. identifies monitoring points for measuring progress (when and whom) Step 4: Integrating the WBS with the organization An integral part of the WBS is to define the organizational units responsible for performing the work. In practices, the outcome of this process is the organization breakdown structure (OBS). The OBS define how the firm has organized to discharge work responsibility. The purpose of the OBS are to provide a frame work to summarize organization unit work performance, identify organization units responsible for work packages and the organizational unit to cost control accounts. The OBS defines the organization sub deliverables in a hierarchical pattern in smaller and smaller units. Even if the project is completely performed by a tem, it is necessary to breakdown the team structure for assigning responsible for budgets, time and technical performance. Step 5: coding the WBS for the information system The maximum usefulness of breakdown structure depends on a good coding system. The codes are used to define levels and elements in the WBS organization elements, work packages and budget and cost information. The codes can be use at any level in the organization. The main purpose of coding system to identify the sub deliverable of each deliverable or sub project of each project and also understanding about which work package belong to which sub deliverable and sub deliverable belong to which top level of itself for example:


Responsibility matrix: In many cases, the size and scope of the project do not warrant on electorate was or OBS. One tool that is widely used by project manager and task force leaders of small projects in the responsibility matrix (RM). The RM sometimes called a linear responsibility chart, summarizes the tasks to be accomplished and who is responsible for what on a project. In its simplest form a RM consists of a chart listing all the project activities and the participants responsible for each activity. More complex RM not only identify individual responsibilities but also clarify critical interfaces between units and individuals that require coordination. RM provide a means for all participants in a project to view their responsibility and agree on their assignments. They also help clarify the extent or type of authority exercised by each participant in performing an activity in which two or more parties have overlapping involvement. By using a RM and by defining authority, responsibility and communications within its frame work, the relationship between different organizational units and the work content of the project are made clear. Clearly defining your project is the first and most important step in planning. The absence of a clearly defined project plan consistently shows up as the major reason for project failures. Whether you use a WBS-OBS PBS or RM will depend primarily on the size of your project. Whatever method you use the defining of your project showed adequate enough to allow for good control as the project is being implemented. Initiating the project The initiation process is the first set of (step) processes in the project life cycle. The initiating process acknowledges that the project share begins or that the next process of a project already in progress should begin. In the other word, Initiating process

The process where project requests are generated and approved or denied once the project is approved, the project charter is produced during this process, the project manager is appointed and the organization recognizes that the project should begins. The following graphic illustrates how the initiating process works, needs or demands create requests for project that is requirement for initiating the process of the project. Te output of this process is the project charter and preliminary project scope statement. The project charter and preliminary scope statement become inputs into the planning process, which is the next step in the project management process cycle. 1. Business need: Business needs are very common reasons for new project requests. For ex: a organization likes to increase sales by examining its customers base the customer responses and customer information, business need such as improving efficiency, reducing costs and utilization the resources. 2. Market demand: The needs of the market can be a good source for new project requests, because of changes in the economy, changes in the supply and demand cycles. 3. Customers request and needs: As customers have different preferences, customers needs are a good source for new project. 4. Legal requirement; 5. Technological advance: Technological advances in the software available for the handle devices may generate project to create and introduce a new line of services for business customers that takes advantage of the new software capabilities and generates more profits for the organization. 6. Social need:


What are the essential elements of a project charter? The essential elements of a project charter are as follows: 1. Statement of work: The project statement of work (SOW) describes the products or service the project wants to create the statement of work (SOW) describes the work of the project, the overall objectives and overall project planning. 2. Product or service scope description: the product or service scope description, describes the product of the project. The details and characteristics of the project for example size, colour, materials, design and other characteristics of product. 3. Strategic plan: the strategic plan, includes some important information about the overall goals and dimension of project in the other word, describes the organization long term goals and plans. 4. Project over view: The overview of project includes the purpose of the project and also explains the reasons for undertaking the project. 5. Project objectives: This element is a vital element of project charter become the project life is depend on this element directly. 6. Requirement: define the project requirements include size of human resource financial request, equipmental request, machinery requirement, managerial request and so on. Project time management Given the urgency to start work on the project, managers sometimes minimize or avoid the effort to follow through on estimating project time and cost. This attitude is a huge instance and costly. There are important reasons to make the effort and decrease the cost of estimating for your project. In the project management time and cost estimation are two of the important issues.


Estimating is the process of forecasting or approximating the time and cost of completing project deliverables. In practice, time and cost estimation processes are frequently classified as: 1. Top down macro 2. Bottom up micro Top down estimates are usually derived from analogy, group consensus or mathematical relationship. Bottom up estimates are typically based on estimates of elements found in the work breakdown structure. Cost and time estimation is the life line for control the project activities, they are as the standard for comparison of actual and plan throughout the life of the project. What are the factors influencing the quality of time and cost estimates? 1. Past experiences Past experiences are a good starting point for developing time and most estimates. But past experience estimates must almost always be refined by other consideration to reach the 95 percent probability level. 2. Planning horizon: The quality of the time and cost estimation depends on the planning horizon; the time and cost estimates should improve as you move frame the conceptual phase to the practical phase, where individual work packages are defined. 3. Project duration by technology: Sometimes poor understanding about the technological useness in the project result in estimating time and project cost.


4. People People or human resources are important factor for estimate the project time and project costs. For example right understanding about the skills and abilities of project people has a direct relation for time and cost estimation. Some of time factors such as staff turnover can influence estimate the project time and cost and also added a new people to the project in the project life cycle can influence the project time and project cost. In short word, people play important role in project time and project cost management. 5. Project structure and organization Which project structure is chosen to manage the project will influence time and cost estimates. 6. Organizational culture; Organization culture can significantly influence project estimates types of leadership and delegate authority. 7. Other factors Some of the non project factors re equipments, economical factors, legal factors, competitors activity and governmental factors. Estimating guidelines for times, costs and resources: Managers recognize time, costs and resources estimates must be accurate if project planning, scheduling and controlling are to be effective. A manager can follow seven guidelines to develop useful work package estimates and project time management and project cost management.


1. Responsibility At the work package level, estimates should be made by the person most familiar with the task, it means those responsible for getting the job done on schedule and within budget are usually first line supervisors or technicians who are experienced and familiar with the type of work involved in the other word, we showed determined who is the responsible for specific job and work package. 2. Use several people to estimate It is well known that a cost or time estimate usually has a better chance of being reasonable and realistic when several people with relevant experience and/or knowledge of the task are used. It mean, if different people with different and relevant knowledge and experiences share their own skills, manager can eliminate some of the project biases. 3. Normal condition: When task time cost and resource estimates are determined they are based on certain assumption. Estimate should based on normal conditions, efficient methods and a normal level of resources. Normal conditions are sometimes difficult to consider, but it is necessary to have a consensus in the organization or project manager and legal or real situation. For example: If the normal work day is eight hours, the time estimate show be based on an eight hour day. Similarly, if the normal work day is shifts, time estimate should be based on a two shift work day. Any time estimate should reflect efficient methods for the resources normally available. The time estimate should represent the normal level of resource people and equipment. 4. Time units: Specific time units to use should be selected early in the development phase of the project network. All task time estimate need consistent time units. Estimates

of time must consider whether normal time is represented by calendar days work days work weeks personal single shift hours, minutes for efficient project time management, a manager should select any one of these units for project time. 5. Independence Each task time estimate should be considered independently their activities. 6. Contingencies The estimate should assume normal or average conditions even though every work package will not materialize as planned. 7. Adding risk assessment to the estimate help avoid surprises to stakeholders; It is obvious some tasks carry more time and cost risks than other. So, a manager should consider a degree of risk for estimate the project time. What are the different methods for estimating the project time? The method of estimating the project times can be divided into two types: 1) macro methods, 2) micro methods Macro approaches for estimating project time and cost: 1. Consensus methods This method simply uses the experience of senior and/or middle management to estimate the total project duration and costs. This method involves a meeting where experts discuss, argue and ultimately reach a decision as to their best guess estimate. Some of companies use the Delphi method to make these macro estimates. 2. Ratio methods: macro methods sometimes called parametric are usually top down and use ratios or estimate project time or cost this approach are often use in the concept or

need phase of a project to get an initial duration and cost estimate for the project. For example, contractors frequently use number of square feet to estimate the cost and time to build a house, that is, a house of 2700 square feet might cost $110 per square foot (2700 x 1811) = $ 297,000. Likewise, knowing the square feet and dollars per square foot, experience suggests it should take approximately 100 days in complete. 3. Apparition method: This method is an extension to the ratio method. This method common in projects that are relatively standard but have some small variation or customization. 4. Learning curves; Some projects require that the same task group of tasks or product be repeated several times. IN the learning curve (also known improvement curve, experience curve and industrial progress curve which is described by the following relationship. Each time the output quantity doubles, the unit labor hours are reduced at a constant rate. Micro approaches for estimating project times and cost; 1. Template method: If the project is similar to past projects, the cost from past projects can be used as a starting point for the new project. This approach enables the firm to develop a potential schedule, estimate costs project product, time of activities, start and end of project time in a very short time span. 2. Parametric procedures applied to specific tasks: 3. Detailed estimates for the WBS work packages: Probably the most reliable method for estimating time and cost is to sue the WBS and to ask the people responsible about the work package to make the estimates. They

know from experiences or know where to find the information to estimate work package duration specially those that depend on labor hours and costs. Project Cost Management Project costs: Most of the costs expanded on the project, known as project costs, for example, salaries, office supplies, transportation costs, office and equipment rent costs, telephone charges. These projects costs and most others fall into one of three categories: Human resource costs: These are the costs associated with the personnel on the project. They include salaries and the cost of benefits (such as valuation time and health insurance) if they apply, salaries and other human resource costs are one of the largest expenses in project. Administrative costs: Administrative costs are the every day costs that support the work of the project but are not necessary directly related to a specific tasks on the project. Local telephone expenses, copier paper and support personnel are examples of administrative costs. Project teams have to work and meet somewhere, so that means that there is some of facilities expense in the form of rent, lease. Resource costs: resource costs include thing such as materials needed for specific tasks, equipment, traveling expenses and so on. Resource costs are typically, the largest expenses for construction projects and estimating these costs will require research. Direct costs versus indirect costs: In addition to the three categories of project costs, there are also two types of costs:

Direct costs: Direct costs directly related to the work of the project. This cost includes costs such as salaries, equipment rentals, software and training for team members. Indirect costs: Indirect cost associated with the project but not directly relate to the work of the project. For example, your project team probably works with other members of the organization (who are not working on the project) in the same building. Another example of an indirect cost is administrative staff, managers. In todays fast paced world, these appears to be a greater emphasis on getting things done quickly, still in high competition situation organization are always looking for way to get thing done cheaply because they want to finish their project as much as cheapest. But some of the time a project manager wants reduce the project time as a result, manager must increase the project cost by purchase more equipments and facilities and having more human resource. But a manager should create a balance between project time, project scope and project cost, because all of these have a direct relationship together. Below are some of the more commonly used options for cutting costs. 1. Reduce project scope: Reduce the project scope is one of the way for cut the project cost. For example reduce the project dimension (geography and timely) give a outcome to save the money.

2. Have owner take on more responsibility One way of reducing project costs is identifying takes that customers can do themselves, home owners frequently use this method to reduce costs on home

improvement projects. For example, to reduce the cost of a bathroom remodel a home owner may agree to paint the room. 3. Outsourcing project activities Original project gives some responsibility or some work to the project outsiders by apply this method manger can reduce the scope of project controlling and monitoring. For example, to reduce costs of software projects, many American firms outsource work to firms operating in India country, where the salary of a software engineer is one-eighth that of an American software engineer. 4. Brainstorming cost saving options: Project Risk Management What is the risk? Risk an event that poses a potential threat or potential opportunity. IN the other word, a risk is the possibility of a problem occurring on the project, thereby threatening the projects outcomes in some way. However, not all risks are bad, and not all risks have negative impractise some risks are actually opportunities. Why should you identify the risks and how do they cause projects to fail if you dont plan for them? Risk can cause rework, which means that you have to go back and repeat some activities you have already completed. Rework almost means that there will be schedule delays or additional costs or bath. Risk management: Risk management is a multi step process, first you identify the risks, then you analyze the risks and make a determination about the impact of the risk event should it occur. Next you determine the probability of the risk occurring, finally

you combine the impact analysis, with the probability analysis to determine which of the identified risks need a risk response plan. Remember that you goal as the project manager is to complete the project in the satisfaction of the stakeholders. But in the other hand, it is not possible to know every risk in advance, but the more risks you identify and plan for the less impact they will have on the projects outcomes. Risk management is an activity that occurs throughout the life of the project. It begins in the planning process and continues until the closing process is completed. Good risk management practices help you bring your project to a successful ending because you will have plans in place to deal with potential threats before they occur and you will have identified potential opportunities that may bring your organization were business, an increase in efficiency, or new ways of performing the work of the project. The advantages of practicing risk management include the following: 1. It helps you to identify potential project opportunities in the process and develop plans and select the good strategy. 2. It helps you t reduce rework and keep the project budget 3. It helps you to increase your credibility and reputation among the stakeholders 4. It increases the likelihood of project success. Types of project risk All projects have risk and several risks are common to all matter how easy or complicated the project appears. Most risks fall into three categories: 1. Known risks 2. Known risks with uncertain outcomes 3. Unknown risks

Obviously, there is not much to say about the unknown risks category but known risks are events that you or the project team knows have the potential to occur and they have predictable outcomes. Known risks with predictable outcomes are fairly easy to stop. What are processes of risk management? The below figure shown a geographical model of the risk management dilemma. The chances of a risk event occurring (ex: error in time estimates, cost estimates, design technology) are greatest in the concept; planning and start up phases of the project the cost impact of a risk event in the project is less if the event occurs earlier rather than later. The early stages of the project represent the period when the opportunity for minimizing the impact or working around a potential risk exists. Conversely, as the project passes the half way mark, the cost of a risk event occurring increase rapidly. Risk management is a proactive approach rather than reactive the successful management of project risk gives the project manger better control over the future and can significantly improve chance of reading project objectives on time, within budget and meeting required technical (functional) performance. The sources of project risks are unlimited. These are sources, external to the organization, such as political issues, legal issues, environmental issues and social issues, market issues. In practice these risk events are often referred to as a threats. And some of internal sources for risk management such as, project team embers, project sponsor, project stakeholders, technical experts and managerial problem. The process of risk management are as follows:


Step 1: Risk identification The risk management process start by trying to generate a list of all the possible risks that could affect the project. A project manager can use some problem identifying techniques to identify potential problems such as brainstorming Delphi method. Interviewing and group discussion, an effective took for identifying specific risk is the work breakdown structure use of the WBS reduces the chance a risk event will be missed by WBS we can identify the small risk in each work package and manager can take some protect methods. A risk profile is another took that can help management teams identify and eventually analyze risks. A risk profile is a list of questions that address traditional areas of uncertainty on a program. A example of risk profile Technical requirements: are the requirements stable? Does the design depend on unrealistic or optimistic assumptions? Schedule To the schedule dependent upon the completion of other projects Budget: how reliable are the cost estimates? Quality: Are quality consideration built into the design? Management: Do people know who has authority for what? Customers: does the customer understand what it will take to complete the projects? Step 8: Risk Assessment (risk evaluation) Step 1 produces a list of potential risks not all of these risks deserve attention. Some are trivial and can be ignored, but some of them are very crucial for project life cycle. Scenario analysis is the easiest and most commonly used technique for analyzing risks, team members assess each risk in terms of: 1. The undesirable event 2. All the outcomes of the events occurrence 3. the magnitude or severity of the events impact

4. Chances/probability of the event happening 5. When the event might occur in the project 6. Interaction with other parts of this or other projects Step 2: Risk response development When a risk event is identified and assessed, a decision must be made concerning which response is appropriate for the specific event. Responses to risk can be classified as follows: 1. Mitigating risk Reducing risk is usually the first alternative considered. There are basically two strategies for mitigating risk: 1. Reduce the likelihood that the event will occur and 2. Reduce the impact that the adverse event would have on the project 3. Avoiding risk: Risk avoidance is changing the project plan to eliminate risk or condition. Although it is impossible to eliminate all risk some specific risk may be avoided before you launch the project. 4. Transferring risk: Passing risk to another party is common, this transfer does not change the risk. One of more obvious way to transfer risk is insurance. However, is most cases this is impractical, because defining the project risk event and conditions to an insurance broker who is unfamiliar with the project is difficult and usually expensive. Performance bonds warranties and guarantees are other financial instruments used to transfer risk. 5. Sharing risk: sharing allocates proportions of risk to different parties. 6. Retaining risk: IN some cases a decision is made to accept the risk of event occurring some risk are so large it is not feasible to cost transferring or reducing the event earthquake or floods.


Step 4: Risk response control: The lost step in the risk management process is risk control. A key factor for controlling the cost of risks is documenting the responsibility determine of team member responsibility for each event and each risk can eliminate that to say it may worry. Project procurement management Some organizations have departments that handle the procurement process and have lists and established policies regarding purchasing goods and services. As the project manager, it is important for you to know and understand the procurement process for your organization in short word, describes the resources or services to be purchased from an outside vendor seller and how procurements will be managed. Resource plan Resources include people equipment supplies and software and anything thats required to complete the work of the project. Resource planning, describes all the resources needed for the project, including human resources and goods and materials. All of this information collectively is known as the resource plan, the resource plan covers all the resources you need for the project. I would the procurement plan as a subset of the resource plan conclude


Chapter 3: Project monitoring evaluation and control

1. Project network techniques 2. Planning for monitoring and evaluation 3. Project organization 4. Project audits 5. Project management information system 6. Project scheduling PERT and CPM 7. Project communication 8. Post project reviews 9. closing the projects Structure of a project monitoring A project monitoring system involve determining what data to collect how, when and who will collect the data, analysis of the data and reporting current progress. What data are collected? Data collected are determined by which metrics will be used for project control. Typical key data collected are actual activity duration times, resources wage, actual cost and all of materials and some other things we used for project. Monitoring system focuses on cost/schedule and some question be arises in this issue. 1. What is the current status of the project in terms of schedule and cost? 2. How much will it cost be to complete the project? 3. When will the project be completed? 4. What, who and where are the causes for cost or schemes 5. What did we get for the dollars spend?

6. Where are we in the project procedure? 7. How is the actual performance compare with started performances? Collecting data and analysis With the determination of what data are collected, the next step is to establish who, when and how the data will assembled. Will the data be collected by the project team, contractors, engineers and project managers should the reporting period be one hour one day, one week or what? Reports and reporting First, who gets the progress reports? Senior manager major interest is usually, in the report we have to answer this question carefully, are we on time and within budget? if not what corrective action is taking place? A common topic format for progress reports are as follows: 1. Project progress compare with last report 2. Current status of project a) Schedule b) Cost c) Scope 3. Problem compare with last report a) Actions and resolution of earlier problems b) New variances and problem identification 4. Corrective action planned What is the project control process? Control is the process of comparing actual performance again plan to identify deviations, evaluate possible alternative course of action and take appropriate corrective action. The project control steps for measuring and evaluating project performance are as follows:

1. Setting a baseline plan 2. Measuring progress and performance 3. Comparing standard against actual 4. Determine the variation and take the corrective act Step 1: setting a baseline plan The baseline plan provides us with the elements for measuring performance. The baseline is derived from the cost and duration information found in the work breakdown structure (WBS) database and two sequences data from the network and resource schedule decisions. From the WBS the project network schedule is used to time phase all work resources and budgets into a baseline plan. Step 2: Measuring progress and performance Type and budgets are quantitative measure of performance that readily fit into the integrated information system. In the meaning progress of performance, we have to answer two questions, 1) where were we? 2) where are we> In this step we can use some tools for determine this process, such as CPM and grant chart. But measuring the progress against time is so much easier than budget. Step 3: Comparing standard against actual: Periodic monitoring and measuring the status of the project allow for comparisons of actual versus expected plan (standard). IN this step we can determine the project variation for take the corrective action. Step 4: Determine the variation and take corrective action: If derivations from plans are significant, corrective action will needed to bring the project back in line with the original plan.

Monitoring and controlling the project process The monitoring and controlling process group involves monitoring the project outcomes to make certain that they are in keeping with the project plans and that the project continues according to the plan throughout the life of the project. This includes managing and controlling change measuring and inspecting the project performance for check with the project plans and take any correction active it is needed. There are several ways to monitor the performance of the project these are as follows: Status review meetings; Project status meetings allow you to collect information from the project team members regarding progress. Variance analysis The techniques compares the expected project plan results with the actual result to determine whether variance exist or no. this technique can be schedule variance, budget variance and quality variances. 4. Trend analysis: trend analysis involves analysis project result periodical to determine whether the project performance is improving or getting worse. 5. Earned value analysis: earned value analysis is the technique used most often determine project performance. Earned value is unique because calculates cost, schedule and scope measurement. 6. Inspection: Inspection is most often used to measure the quality can this involves physically looking at the results and measuring them or testing them to determine whether the result meet the requirements or quality standards outline in plan 7. Control or grant chart: control charts are used to measure the results of project over the time. There are several forms of control charts including

variance control charts, flow charts, parent diagram scatter diagram and so on. Developing the project network The project network is the tool use for planning, scheduling and monitoring the project progress. The network is developed from the information collected for the WBS and is a graphic flow chart of the project job plan. The network develops the project activities that must be completed, the sequences of activities, the interdependence of the activities of the completed and in most cases the times for the activities to start and finish along with the largest pathess through the net work the critical path. The network the critical path. The network is the frame work for the project information system that will be used by the project managers to make decision concerning project time, cost and performance. In the other word we can define the net work as: the network presents a graphic display of the flow and sequence of work through the project. The project network provides other invaluable information and insights. It provides the basis for scheduling labor and equipment. It enhances communication that needs all managers and groups to gather in meeting the time, cost and performance objectives of the project. The network gives the times when activities can start and finish and when they can be delayed. It provides the basis for budgeting the cash flow of the project. It identifies which activities are critical and therefore should not be delayed if the project is to be completed as planned. From work package to network: Project networks are developed from the WBS. The project network is a visual flow chart (flow diagrams of the sequences inter relationship and inter-


dependence of all the activities that must be accomplished to complete the project. An activity is an element in the project that consumes time. Work packages from the WBS are used to build the activities found in the project network. An activity can include on or more packages, networks are built using nodes (boxes) and arrows (lines). The node depicts on activity and the arrows dependency and project flow. In the other word, the primary inputs for developing a project network plan are work packages. Constructing a project network: Network terminology: here are same terms used in building project networks. 1. Activity: for project managers an activity is an element of the project that requires time. It may or may not require resources. Typically an activity consumes time either while project work or while people wait. 2. Merger activity: this is an activity that has more than one activity immediately preceding it (more than one dependency arrow flowing to it). 3. Parallel activities: These are activities that can take place at the same time, if the manager wishes. However, the manager may choose to have parallel activities not occur simultaneously. 4. Path: a sequence of connected, dependent activities. 5. Critical path: When this term is used, it means the largest path through the network, if an activity on the path is delayed, the project is delayed the same amount of time. 6. Event: this term is used to represent a point in time when an active is started or completed. It doesnt consume time. 7. Burst activity: This activity has more than one activity immediately to more than one dependency arrow flowing form it. These are two approaches to develop project networks are known as:

1) Activity on node (AON): Activity on node (AON) is a type of precedence diagram method that uses circles, called nodes and arrows to show the dependencies between the tasks. AON diagram can be constructed with boxes as nodes, 2) Activity on arrow (AOA) activity on arrow (AOA) is the opposite of the AON diagram we can show the AOA as follows: Precedence diagramming A diagramming method that links project activities according to their dependency, using box or nodes (AON) to depict project activities and arrows to show dependencies. What are the basic rules of developing the project network? The following eight rules apply in general when developing a project network. 1. Networks flow typically from left to right. 2. An activity cannot begin till all preceding connected activities have been completed 3. Arrows on networks indicate precedence and flow arrows can cross over each others 4. Each activity should have a unique identification number 5. An activity identification number must be larger than that of any activities that precede it. 6. Looping is not allowed in other words, recycling through a set of activities cannot take place. 7. Conditional statements are not allowed that is, this type of statement should not appear. If successful, do some thing, if not, do nothing. 8. Experience suggests that when there are multiple starts, a common start node can be used to indicate a clear project beginning on the network.

Developing of PERT/CPM techniques: In 1958 above two techniques were developed by two different group. The methods are essentially network oriented techniques using the same principle. PERT and CPM are basically time oriented methods in the sense that they both lead to the determination of a time schedule for the project. The significant different between two approaches is that the time estimates for the different activities in CPM were assumed to be deterministic while in PERT these were described probabilistically. Now a days, these techniques are referred to as project scheduling techniques. Application of PERT/CPM techniques These methods have applied to a wide variety of problems in industries and have found acceptance even in government organizations. There includes: 1. Construction of a dam or canal system 2. Construction of a building or highway 3. Maintenance of oil refinery 4. space flight 5. Cost control of a project 6. Designing of a machine 7. Development of a plan Basic steps in PERT/CPM techniques: Project scheduling by PERT/CPM consists of four main steps: 1. Planning: In this step, the relationship of each activity with other activities are defined and also responsibilities and authority are defined. 2. Scheduling: the main objectives of the scheduling is to prepare a time chart showing the start and finish times, for each activity as well as its relationship to other activities of the project and also scheduling must


determine the critical path (time view of point) activities which require special attention if the project is to be completed in time. 3. Allocation of resources: Allocation of resources is performed to achieve the desired objective a resource is a physical variable such as labour, finance, equipment and space. Resource allocation is a critical or essential activity in program management, specially where we have limitation in resources. 4. Controlling: the final step in project management or PERT/CPM is controlling critical path methods facilitate the application of the principle of management by expectation to identifying area that are critical tool the completion of the project. By having progress reports from time to time and updating the network continuously, a better financial as well as technical control over the project is exercised. The basic terms in project management and network analysis: 1. Activity: any individual work or task or operation, which utilizes resources time and has a end and a beginning point. 2. Predecessor activity: an activity must be completed, before start the next activity or activities. 3. Successor activity: an activity which cannot be started till one or more of other activities are completed. 4. Concurrent activity: an activity which can be accomplished concurrently are known as concurrent activities 5. Dummy activity: an activity that consumes no time, but shows precedence among activities. 6. Critical path: the longest project path through the network. 7. Earliest start (ES): the earliest time that activity can start, form the beginning of the project. 8. Earliest finish (EF): The earliest time that activity can finish, form the beginning of the project.

9. Latest start: The latest time, that activity can start, from the beginning of the project, without delay in completion of the project time. 10. Latest finish: the latest time, that activity can finish, from the beginning of the project, without delay in completion of the project time. 11. Event: an event shows the point of start and point of finish in an activity beginning and ends with events. 12. Merger event: when more than one activity comes and joins an event. 13. Burst event: When more than one activity leaves an event. 14. Merger and burst event: an activity may be merger or burst at a same time. 15. Slack: the amount of time that an activity or a group of activities can slip without delay in the completion of the project. 16. Most likely time: the time for completing an activity that is the best estimate of network or project time. 17. Optimistic time: the time for completing an activity if all goes wall. 18. Pessimistic time: The time for completing an activity if bad luck is occurred. Time estimation and identify the critical path in network analysis: In the project management and network analysis, time analysis of the network becomes essential for planning the activities of the project. An activity time is a forecast of the time an activity, from starting point to completion point. The main objectives of the time analysis is to prepare a planning schedule of the project. The planning schedule should be include the following factors: 1. Total completion time for the project 2. Earliest time for each activity 3. Latest start and latest finish of each activity 4. float for each activity 5. identification of critical path in the network


Determine of floats time: 1. Total float: the amount of time by which the completion of an activity could be delayed beyond the earliest expected completion time without affecting the overall project duration time: TF = Lj Ei) = Diy TF = Lsi = Esij

2. Free float: the time by which the completion of an activity can be delayed beyond the earliest finish time without affecting the earliest start of a subsequent activity. FP = Ej-Ei Diy 3. Independent float: the amount of the time by which the start of an activity can be delayed without effecting the earliest start time of any immediately following activities: IF = (Ej-Li) Diy Main features of critical path Before defining critical path let us first discuss about the meaning of critical event and critical activity. Critical event: Since the slack of an event is the difference between the later and earliest event times; slack = Ai = Li Ei, the events with zero slack times are called critical events. Critical activity: since the differences between the latest start time and earliest start time of an activity is usually called as total float, the activity with zero total float are known as critical activities.


Critical path: The sequence of critical activities in a network is called critical path. The critical path is the longest path in the network from the starting event to ending event and defines the minimum time required to complete the project. Project audit The project audit and report are tools for supporting continuous improvement and quality management of project. Unfortunately, it is above 90% of all projects are not seriously viewed or audited. The most common reason given is we are too busy to stop and assess or evaluate how we manage projects. This is a big mistake. The project audit includes three major tasks: 1. Evaluate if the project delivered the expected benefits to all stakeholders was the project managed well? Was the customer satisfied? 2. Assess what was done wrong and what was contributed to success? 3. Identify changes to improve the delivery of future projects An also project audit can answer to these questions: 1. Why to re-evaluate the project objectives? 2. Check the project to know, whether project implemented currently or not? 3. Project audit assess the management performance was right or wrong? 4. Project audit check the external and external factors, those change the project. 5. Project audit included review all of factors, relevant to the project and managing the future projects. Different types of project audit 1. In process project audits In process project audits allow for corrective changes, if they are needed. In process project audits concentrate on project progress and performance and check

if conditions have to change. For ex: reallocation of resources if needed is the project mission still relevant or is it the project process going on correctly? 2. Post project audit: These audits tend to include more detail and depth than in process project audits. These project audits are more long term oriented than in process audits. Post project audit do check the project performance of finish the project time, to identify the project delivered correctly or not? Or project satisfied the customer needs or not? The depth and detail of the project audits depend on many factors: a. organization size project size b. Project importance c. Project type d. Project risk e. Project problems What is the audit process? The process of the project audit is divided into three steps: 1. Initiation and staffing 2. Data collection and analysis 3. Reporting 1. Initiation Initiation of the audit process depends on 1) organization size and 2) project size. In small organization and projects where face-to-face contact at all levels is sufficient and audit may informal and only represent another staff meeting. But in medium size and big sized organizations and projects that have several rojects occurring simultaneously initiation can come from a formal project review group from the project team. But now a days, in most of projects, the project manager

conduct the in process project audit. For example all projects are audit at specific stage in the project life cycle, perhaps when a project is 10 to 20 percent complete in time or money 50 percent completed 80 percent and offer completion. 2. Data collection and analysis The traditional model for a project audit presents two perspectives one, evaluate the project from the view of the organization point. The second, perspective represents the project teams evaluative view. The organization perspective is developed by a small group of persons not having a direct interest in the project. The project team perspective is developed by a group composed of team members along with persons independent of the project to ensure the evaluation is objective. But for data collection some factors can effect on the collection of data process. Type of industry, project size, newness of technology and project experience. In this step auditor, must find an answer for some of these questions. 1. Is there a clear link between organizational strategy and goals? 2. Was the organizational culture correct for this type of project? Why? 3. How is the environmental factors affect for completion the project? 4. What is the available risks for project? 5. To project manager support the project activities? 6. Were the project planning and control system appropriate for this program? 7. Is the communication system appropriate for this project? 8. did project resources allocated property? 9. Is the customer satisfy? 10. How is the project evaluation system?


3. Reporting The major goal of the audit report is to improve the future projects. A project report tray to identify the project changes if needed and represent real situation of project situation. A very general outline common to the project report is: 1. Classification of project 2. Analysis of information catered 3. Recommendations and suggestions 4. Lessons learned 5. Appendix Project closure Every project comes to end, on some projects the end may not be as clear as would be hoped. Although the scope statement may define a clear ending for a project. Most of projects have a specific conditions for closure; 1. Normal condition: The most common circumstance for project closure is supply a completed project for example after finish the house construction. 2. Premature: For a few projects, the projects may be completed early with some parts of the project eliminated, for ex: in a new product development a marketing manager may insist on production models before testing 3. Perpetual: some projects never comes to end The project needs the end of its life cycle, people and equipment and other resources directed to other activities or projects carefully managing the closure the project is an important as any other phase of the projects. The major challenges for the project manager is to reallocation of resources in the new project. The typical clear cut plan included answers to these questions.

What tasks are required to close the project? Who will be responsible for these tasks? When will closure begin and end? How will the project be delivered? Implementing the closure of plan or project follow a specific process, there are as: 1. Getting delivery acceptance from the customer feedback 2. Shutting down resources and reallocate to new use 3. Reassigning project team members 4. Closing accounts and receive all bill or paid all bills 5. Poor project scheduling 6. not managing scheduling 7. weak project manager 8. project mentor turnover 9. poor staffing process 10. poor project coordination 11. poor leadership 12. low project manager and project member commitment 13. poor monitoring and controlling system 14. No recognition of problem 15. No good feedback system Entrepreneurship Entrepreneurship is attempt to create value through recognition of business opportunities and the management risk taking to make a some new business. Entrepreneurship is the purposeful activity of an individual or a group of associated individuals undertaken to achieve some profit by production or distribution of economic goods and services.


Entrepreneurship is risk taking process, through the new idea with specific vision, organization planning, communicating and leadership tries to make new business.

Entrepreneur a person who introduces innovative changes is an entrepreneur and he is an integral part of economic growth. Entrepreneur is one who assume risks and management of business Entrepreneur is who always searches for changes by make a innovation and create some opportunity in the business. Entrepreneur Is a person who makes decision under alternative courses of action. Characteristics of an Entrepreneur Initiation Good judgment Intelligence Leadership Energy Entrepreneur Is a person A visualizer A creator An organizer An innovator A planner A risk taker A communicator A leader Attitude Good organizer Hard worker Self esteem Self confidence Creative Honest Emotionally Motivator Risk taker Entrepreneurship Is a process A vision A creation An organization On innovation Planning Risk taking Communication Leadership

Explain how entrepreneurship has influenced in economic development and productivity in recent years: In practice situation, entrepreneurs with make and create a new opportunities try to create a new business, entrepreneur in the innovator view of

point, makes some new idea for develop the business or economic in the different aspects of economic and marketing. Entrepreneurs have a important role for development the economic as such as follows: 1. Entrepreneurship promote capital formation by mobilizing the idea generation. 2. It provides immediate large scale employment it helps to reduce the unemployment problem in the countries 3. It promotes balanced regional development 4. It helps to reduce the concentration of economic power 5. It re-allocate the human as well as material resources to make a new business 6. It encourages the mobilization of resources capital skills 7. It promote the countrys export trade Phases of entrepreneurship development: Broadly, entrepreneurship development consists of the three following phases: a) Initial phase: creation of awareness about the entrepreneurial opportunities base don service and research. b) Development phase: implementation of training programs to develop motivation and management skills c) Support phase: infrastructural support of counseling existing to establish new enterprises and to develop existing units Entrepreneur itself is a complex phenomenon, some thinking of it as job of innovators, some as manager of enterprise some a mobilizers and allocators of capitals.


Entrepreneurship development in India It is true a person must have certain entrepreneurial attribute and need not necessarily belong to a particular case community or group to become an entrepreneur. But personality traits of an individual would not be sufficient condition for him/her to become a entrepreneur. Other social cultural, economical and technological factors as well as support systems also influence to promote and development of entrepreneurship. In this way some barriers such as unfavorable personality traits, social conditions, cultural factor, technological and economical factors are available in the entrepreneurship process. India has a long traditional support and promotional process for development the entrepreneurship in India. The first step to developing entrepreneurs was taken in the early 1960. The first programme on motivation training for developing entrepreneurship in India was organized by the national institute of small industries extension training, Hyderabad I 1964 under the leadership of David McClelland. IN the first program fifty two persons were trained in four batches in Andhra Pradesh. This was follows by another programme in which twenty six persons from Tamil Nadu was trained in two branches in 1965. An during the period of april 1970 to September 1973, 240 potential entrepreneurs were trained at different centres in Gujarat through a entrepreneurship development programmes (EDP) sponsored by state level financial institution.


EDPs in India During the period of April 1970 to March 1980, 376 EDP had been conducted in Gujarat and effectiveness of these EDP was reported to be about 63%. IN the state of Maharashtra and Goa 88 potential entrepreneurs were trained during the year 1974 through the EDP. The basic objectives of an entrepreneurial program can be as: 1. To develop and promote the entrepreneurial activities 2. to analysis environment relating to entrepreneurship 3. To select right project/product 4. to formulate the project 5. to understand the process and procedure of entrepreneurship 6. to identify the opportunities for bunch the enterprise 7. to improve individual skill and ability to be entrepreneur. National Small Industries Corporation (NSCI) The national small industries corporation (NSIC) is a government of India undertaking which was set up in 1955 with the objectives of supplying machinery and equipment to small enterprises on a hire purchase basis and assisting them in procuring government order for various items of factors: Function of NSIC: 1. To provide SSI with modern machines on hire purchasing basis. 2. To assist small enterprises to participate in the stories purchse program of the central government. 3. To develop SSI 4. to arrange for a marketing of the products of SSI

5. to distribute raw material in the SSI markets Some activities of NSIC 1. Machinery and equipment purchase for SSI 2. Marketing for SSI products 3. Training of SSI members 4. Quality control of SSI products 5. Standardization of SSI products 6. Provide technological need for SSI Industrial Development Bank of India (IDBI) The IDBI was wholly owned subsidiary of Reserve Bank of India (RBI) established in 164 under the industrial development bank of India. Objectives of IDBI Coordinating the activities of other financial institutions Allocation of resources Planning and promoting industries Help to growth the industrial activity Provide financial support to SSI and national SI

Functions of IDBI The following are the main function of IDBI


1. Direct assistance: The IDBI grants direct assistance by way of project loan, technical and equipmental loan. 2. Indirect assistance The IDBI can assist industrial concern in an indirect manner through other institutions like IFCI, SFC. 3. Special assistance