MB0049 Project Management ASSIGNMENT- Set 1

NAME : AMIT PATHAK ROLL NO : 1302016570

Q1. Describe the CPM model. Briefly explain? Ans.)Network analysis technique used in complex project plans with a large number of activities. CPM diagrams (1) all activities, (2) time required for their completion, (3) and how each activity is related to the previous and next activity. A sequence of activities is called a 'path,' and the longest-path in the diagram is the critical path. It is 'critical' because all activities on it must be completed in the designated time, otherwise the whole project will be delayed. Also called critical path analysis or critical path methodology. PERT/Cost Systems The traditional cost variance analysis alone is insufficient for evaluating performance; information also is needed on work progress. Early attempts to correct for this using PERT/CPM went to the opposite extreme by ignoring costs and focusing entirely on work progress. If PERT/CPM users wanted to integrate cost control with network planning methods they had to develop their own system. In 1962 the U.S government developed a PERT-based system which combined cost-accounting with scheduling, called PERT/Cost system. The system became mandatory for all military and R&D contracts with the Department of Defence and National Aeronautics and space administration. PERT/Cost was a major improvement over traditional cost-accounting techniques because it blended cost with work schedules Steps to construct a PERT chart for a project: 1. Identify all tasks or project components. Have a brainstorming session to capture all tasks needed to complete the project. Document the tasks on small note cards. 2. Identify the first task that must be completed. Keep the appropriate card at the extreme left of the working surface. 3. Identify any other tasks that can be started simultaneously with the first task. Line up these tasks either above or below the first task on the working surface. 4. Identify the next task that must be completed. Select a task that must wait until one of the tasks identified in steps 2 and 3 is completed. Place the appropriate card to the right of the card showing the preceding task. 5. Identify any other tasks that can be started simultaneously with the task identified in step 4. Place these tasks either above or below the said task on the working surface. 6. Continue this process until all component tasks are sequenced

Q2. Define risk management. What are the different types of risks that can affect a project? Ans) Answer: Risk management is all about the systematic process of identifying, analysing, prioritising and responding to risk by applying risk management principles and controlling the probability and/or impact of unfortunate events at the project level. It attempts to maximise the probability and consequences of positive events and to minimise the probability and consequences of adverse events. The goal is to prevent or reduce risk in a cost-effective manner without compromising quality or harming the mission or timeline. The benefits of proper risk management in projects are huge. Organisations can generate a lot of profit if they deal with uncertain project events in a proactive manner. The result will be that they minimise the impact of project threats and seize the opportunities that exists. Proper risk management enables you to deliver the project on time, on budget and with the quality results ones project sponsor/client demands. In addition to this, other project team members can be also happy and motivated enough to perform better and better. All this would essentially boil down to increase in the productivity of team members and in the efficiency and effectiveness of the resources. In this unit you will learn more about project risk management. a)Project Risks: This is the risk pertaining to pure project related parameters and activities. They may arise from changes in the scope of the project, in the work quantities, and in the resource requirements. Risk may also originate from estimation error or unexpected developments in a project. As you have already studied, project success depends on three major parameters including Cost, Resources and Timelines. b)Market Risk: This is the risk which is external to project but related to it. It is the risk arising out of a change in any of the following market parameters price change, changes in market regulations, economic changes, competition, and competitors product changes. c)Industry Risk: This is an industry specific risk. It is the risk arising out of a change in scientific instruments used in a business activity or changes in company policies because of changes in the industry. d)Social and Political Risk: These are the risks pertaining to society at large. Although the probability is very low but it may have a big impact on the project. These risks may arise out of changes in labour situation, labour laws, environmental laws, and so on. Q3. Briefly discuss the steps to close the project? Ans) Steps for closing the project To make sure that the project is completed and finished in a proper manner, a sequential process should be followed. Therefore, the steps involved in the sequential process closure include the following subsections.

Finishing the remaining work As the project nears completion, the project manager tends to relax and keeps out of meeting, out of sight, and out of focus. The team members follow the lead and relax as well. As a result, commitment to the project gets affected. Depicts the graph of commitment to project vs. action of project manager and team members given by Philips.

Team member action

Commitment to project

Project manager action

Graph of commitment to project vs. Action of project manager and team members Further, there is a tendency for the members to the members to do the work directly related to meet time and quality standard, while leaving a number of small work outstanding. Besides, many issues crop up during the various stages of a project and some of them remain unresolved. For proper closure of the project, such tasks and issues are to be listed and a network may be drawn to complete them. Get the client acceptance of the deliverables The first task of a project manager is to prepare a checklist of all activities which must be completed before we seek acceptance of the deliverables. A typical list may include the following: Unfinished non-critical work The project tasks based on the WBS The deliverables Quality standard attained Documentation manuals Operating procedures Training of users Outstanding issues to be resolved

In formal acceptance, each activity is to be checked with reference to the performance specifications jointly by the project team representative and the authorized representative of the client and accepted. Once an agreement is reached on all activities, the project manager may proceed with other tasks loading to the final closeout meeting. Contractual aspects and final accounting All contractual commitment to clients, vendors, and suppliers are settled. Also the final project accounting includes totaling the cost evaluations and reports, paying all accounts, and closing the projects book. Update and archive all documents. A project generates substantial volumes of documents, and it is essential that these are collated and field for future use. However, this task is monotonous and least exciting. Q4. Discuss the various steps of PMIS planning. Ans.)Discuss the various steps of PMIS planning The success of a PMIS (Project Management Information System) depends on its effective planning. The PMIS is used for many purposes by a project manager like budget estimation of costs, creating a schedule, define the scope, etc. Hence, these should be considered while planning for PMIS. The planning of PMIS includes the following steps: 1. Identify the information needed Identification of the information that is needed is necessary for improving the decisionmaking and the structure of the PMIS. Information requirements of project stakeholders include the recipients of information, the type of information that is needed, which includes format, contents, and level of details, the time the information is required and how (by what media) will it be communicated to them. 2. Capture data Term Capture data is used to state a process of preparing and collectingdataas element of a process improvement or similar project. The function of data collection is to attain information to maintain record, to make decisions for vital issues, and to pass information on to others. Data can come from actual observation or from records. Data collected from records is known as secondary data. Data collected from direct observation is known as primary data. It should be ensured that all relevant groups are represented in the data. A formal data collection process is essential as it makes certain that the gathered data are both defined and precise and that subsequent decisions based on opinion embodied in the findings are valid. Data possibly is arranged in tabular form, data array or frequency distribution. 3. Process data into information

An organization, to achieve its aims, needs to process the data collected intomeaningf ul information. It should be presented in its most useful formats. Data must be processed in a context to give it meaning. 4. Communicate information to stakeholders Communication is the process by which information is exchanged between individuals through a common system of symbols, signs, or behaviour. Toshow the importance of communication criteria for success. Q5. What are the important approaches to project control? Ans) Approaches to project control The following are the key approaches to project control: Variance analysis It involves a comparison of the actual cost incurred on the project with the budgeted cost of the project for a given time period to determine the variants. The approach is inadequate for project control because of the following reasons: It is backward looking rather than forward looking. It only indicates budget variance within a given time period and provides no information on the value of work done on that period which is vital for integrated project control. Performance analysis 1. BCWS ( Budgeted cost for work scheduled ) : It represents the total of three components: Budgets for all work packages scheduled to be completed. Budgets for the portion of in-process work scheduled to be completed.

2. BCWP( Budgeted cost for work performed): This is equal to the sum of three components. Budgets for work packages actually completed. Budgets applicable to the completed in process- work Overhead budgets

3. ACWP (Actual Cost for work performed): This represents the actual cost incurred for accomplishing the work performed during a particular time period. 4. BCTW (Budgeted cost for total work): This is the total budgets cost forthe entire project work. 5. ACC (Additional cost for corporation): It represents the estimate the additional cost required for completing the project.

Reasons of over-sum of a project The various reasons of an over- sum of a project can be stated under each phase of the project. 6. Pre-feasibility study phase Delay in land acquisition Delay by an incompetent consultant.

7. Detailed project study phase. Inadequacy if the various requirements Poor technique selection

8. Scheduling phase of the project Delay due to award of contracts Delay due to performance of equipment, etc. Delay due to indecisions and delayed decision making

9. Development during start-up phase: This can happen during the project phase. Delay due to design changes Delay due to absence of commissioning specialties. Delay in arranging special tools, manuals,etc

10. General delays: This can happen during any of the project phase: Weak project team Poor quality awareness Poor or no M/s system Ignorance of second project measurement practices

It may not be out place to mention that the principal causes of over-sum of a project ate management failure and lack of commitment on part of the executives. Q6. Describe the project planning process and explain it in detail? Ans) The identification process The main steps in the identification process of any project are: Identifying initial requirements. For example, when a company identifies a need for a new or improved product due to R & D results or a consumer survey, the management of that company will acknowledge the necessity of improving the existing product in accordance with the consumers demands. Validating them against the project

Identifying the criteria such as quality objectives and quantitative requirements for assessing the success of both the final product and the process to create it. Identifying the framework of the solution. Preparing a template of the framework of solution to illustrate the project feasibility. Preparing relevant charts to demonstrate the techniques of executing the project and its different stages. Preparing a proper project schema a achieving the defined business requirements for the project. Identifying training requirement. Preparing a training plan and a training calendar. Assessing the capabilities and skills of all those identified as part of the project organization.

The review process The main steps in the review process of any project are: Instituting a training plan to explain the project team members with the methodologies, technologies and business areas under study. Updating the project schedule to accommodate scheduled training activities. Identifying the needs for review and reviewing the project scope Preparing a proper plan indicating all the requirements from start to finish of the project and also at every stage of the project. Preparing a checklist of items to be monitored and controlled during the course of execution of the project. The analysis process The main steps in the analysis process of any project are: Comparing the actual details with that in the plan with reference to project stages. Measuring various components of the project and its stages frequently to control the project from deviating and also monitor the performance. Identifying the preventive and corrective steps to be taken in case of any variance. Performing root cause analysis for all problems encountered. If all the above steps are performed successfully, scoping and planning become effective and the ideal outcomes are achieved. The team must strategies as to how they will work the project with the customer and how they will achieve the end goals of the project successfully and to the customers satisfaction then they must write a scope statement to define the project, should be part of the project plan.