MM ZG523 - Course Handout

Course Title
BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

WORK INTEGRATED LEARNING PROGRAMMES
Digital
Part A: Content Design
PROJECT MANAGEMENT
Course No(s)
MM ZG523
Credit Units
Credit Model
Content Authors
ARUN MAITY
Course Objectives
No
CO1
To understand the need of project management and deciding the right organization structure.
CO2
To understand the market and demand , technical and financial analyses for the selection and
prioritization of projects
CO3
To define the project scope, work breakdown structure and development of project network.
Loading, Scheduling and Allocation of Resources. Optimization of cost-time schedule and
monitoring the performance of the projects using earned value analysis.
CO4
To identify the project risks, contingency plans and change management system. To understand
the risk analysis methods and decision making.
CO5
To understand the process of outsourcing of project work, types of contracts and enterprise
contact management
CO6
To understand the project audit methods, project closure procedure and retrospectives. To
understand the project quality dimensions and methods of improving quality.
Text Book(s)
T1
Clifford F Grey. Erik W Larson, Gautam V Desai, Project Management: The Managerial
Process Mc Graw Hill Education (India) Private Limited, New Delhi, Sixth Edition, 2014.
T2
Prasanna Chandra, Projects: Planning, Analysis, Selection, Financing, Implementation &

Review, Mc Graw Hill Education (India) Private Limited, New Delhi, 8 th Edition, 2014.
Reference Book(s) & other resources

R1
Kerzner Harold, Project Management: A Systems Approach to Planning, Scheduling and
Controlling, Wiley Student Edition, Tenth Edition, 2013.
R2
Saxena Anuj, Enterprise Contract Management: A Practical Guide to Successfully

Implementing an ECM Solution, Cengage Learning, First Edition, 2008.
R3
Adedeji Bodunde Badiru, Project Management in Manufacturing and High Technology

Operations, Wliey Interscience, Second Edition 1996.
Content Structure
1.
Module Title : Integrated Project Management
1.1.
Project and Importance of Project Management
1.1.1.
What is Project?
1.1.2.
Project of Manufacturing
1.1.3.
Project Management Approach
1.1.4.
Why do Projects Fail?
1.2.
Project Life Cycle
1.2.1.
Life Cycle Definitions
1.2.2.
Project Life Cycle for various industries
1.3.
Role and Responsibilities of Project Manager
1.3.1.
Project Manager and Project Team
1.3.2.
Interactions with Boss, Peers and Subordinates
1.3.3.
Decision Making & Problem Solving
1.4
Project Integration Management
1.4.1
Current drivers of Project Management
1.4.2
Alignment of Projects with Organizational Strategy
1.4.3
Socio Technical Approach
2.
3.
Module Title : Project Management Structures

2.1.
Organization Structures
2.1.1.
Functional Organization
2.1.2.
Dedicated Project Team / Projectized Organization Structure
2.1.3.
Matrix Organization
2.2.
Right Project Management Structures
2.2.1.
Organization Considerations
2.2.2.
Project Considerations
2.3.
Organization Culture
2.3.1.
What is Organizational Culture?
2.3.2.
Identifying Cultural Characteristics
Module Title : Market and Demand Analyses
3.1.
Market Analysis
3.1.1.
Situational Analysis
3.1.2.
Collection of Secondary Information
3.1.3.
Conduct of Market Survey and Characterization
3.2.
Demand Forecasting
3.2.1.
Least Square Method
3.2.2.
Exponential and Moving Average Method
3.3.
Technical Analysis
3.3.1.
Manufacturing Process / Technology
3.3.2.
Project Clearances
4.
Module Title : Financial Analysis

4.1.
Financial Estimates and Projections
4.1.1.
Cost of Project
4.1.2.
Means of Finance
4.2.
Projected Cash Flow Statement and Balance Sheet
4.2.1.
Estimates of Sales and Production
4.2.2.
Cost of Production
4.2.3.
Working Capital Management
4.2.4.
Project Cash Flow Statement
4.2.5.
Projected Balance Sheet
5.
Module Title : Project Portfolio Management

5.1.
Organization Strategy
5.1.1.
Need to Understand Organization
5.1.2.
Strategic Management Process
5.2.
Portfolio Management System

5.2.1.
Need for Project Portfolio Management System
5.2.2.
Classification of Project
6.
Module Title : Project Selection

6.1.
Criteria for Project Selection
6.1.1.
Financial Criteria
6.1.2.
Non-Financial Criteria
6.1.3.
Applying Selection Model
6.1.4.
Managing the Portfolio System
6.2.
Cost of Capital and Investment Criteria
6.2.1.
Calculating Cost of Capital
6.2.2.
NPV and modified NPV
6.2.3.
IRR and MIRR
6.2.4.
Payback and Discounted Payback
7.
Module Title : Project Scope Statement

7.1.
Defining the Project Scope
7.1.1.
Project Scope Checklist
7.1.2.
Establishing Project Priorities
7.2.
Creating Work Breakdown Structure
7.2.1.
WBS Hierarchy, Benefits and Development
7.2.2.
Integrating WBS with the Organization
7.2.3.
Process Breakdown Structure
7.3.
Responsibility Matrix and Communication Plan
7.3.1.
Responsibility Matrices
7.3.2.
Project Communication Plan
8.
Module Title : Project Cost & Time Estimation

8.1.
Quality of Estimates and Guidelines
8.1.1.
Factors influencing Quality of Estimates
8.1.2.
Estimating Guidelines for Times, Costs and Resources
8.2.
Methods for Estimating Project Times and Costs
8.2.1.
Top-Down Approach
8.2.2.
Bottom-Up Approach
8.2.3.
Range Estimating and Hybrid Phase Estimating
8.3.
Project Costs
8.3.1.
Types of Project Costs
8.3.2.
Refining Estimates
9.
Module Title : Project Planning

9.1.
Developing a Project Plan
9.1.1.
Developing a Project Network
9.1.2.
Constructing a Project Network
9.1.3.
AON and AOA Diagram
9.2.
CPM Calculations
9.2.1.
Forward Pass & Backward Pass Calculations
9.2.2.
Determination of Slack, Critical Path
9.2.3.
Time Scale Network
9.3.
PERT Calculations
9.3.1.
Project Activity Times
9.3.2.
Probability of Completion
10.
Module Title : Project Resource Scheduling

10.1.
Resource Scheduling
10.1.1.
Type of Resource Constraints
10.1.2.
Resource Loading
10.1.3.
Resource Leveling
10.2.
Resource Allocation
10.2.1.
Heuristics
10.2.2.
Under Limited Resources
10.3.
Multiple Project Resource Schedules

10.3.1
Multi-Project Environment
10.3.2
Time Phased Budget Baseline
11.
Module Title : Project Cost Schedule Optimization

11.1.
Reducing Project Duration
11.1.1.
Rationale for Reducing Project Duration
11.1.2.
Options for Accelerating Project Completion
11.2.
Project Cost Duration Graphs & Optimization
11.2.1.
Direct and Indirect Costs
11.2.2.
Crash Times
11.3.
Decisions on Time and Cost Reductions
11.3.1.
Time Reduction
11.3.2.
Cost Reduction
12.
Module Title : Project Information Management

12.1.
Project Monitoring Information System
12.1.1.
Structure of PMIS
12.1.2.
Project Control Process
12.1.3.
Monitoring Time Performance
12.2.
Developing Status Reports
12.2.1.
Baseline Development
12.2.2.
Updating Status Report
12.3.
Earned Value Analysis
12.3.1.
Definition and Glossary of terms
12.3.2.
Variance Analysis
12.3.3.
Percent Completion Indexes
12.3.4.
Performance Indices
12.3.5.
Forecasting Final Project Cost
13.
Module Title : Project Risk Management

13.1.
Risk Management Process
13.1.1.
Risk Breakdown Structure
13.1.2.
Risk Identification and Assessment
13.1.3.
Risk response Development
13.2.
Contingency Planning
13.2.1.
Handling Risks
13.2.2.
Contingency Funds and Time Buffers
13.3.
Change and Control Management
13.3.1.
Risk Response Control
13.3.2.
Change Control Management
14.
Module Title : Project Contract Management

14.1.
Outsourcing Project Work
14.1.1.
Advantages and Disadvantages
14.1.2.
Best Practice
14.2.
Contracts
14.2.1.
14.2.2.
14.2.3.
14.2.4.
Procurement: Planning and Conducting

Types of Contracts
Contract Administration and Closure
Art of Negotiating
15.
Module Title : Project Audit and Closure

15.1.
Project Audit Process
15.1.1.
Types of Audit
15.1.2.
Managing Audit
15.2.
Project Closure Procedure
15.2.1.
Types of Project Closure
15.2.2.
Wrap-up Closure Procedure
15.2.3.
Post Implementation Evaluation
15.3.
Retrospectives
15.3.1.
Need for Retrospectives
15.3.2.
Managing Retrospectives
16.
Module Title : Project Quality and Agile Management

16.1.
Project Quality Dimensions
16.1.1.
Quality Dimensions
16.1.2.
Benchmarking
16.1.3.
Kaizen
16.2.
Agile Project Management
16.2.1.
Traditional Vs. Agile Methods
16.2.2.
Scrum Meetings
16.2.3.
Applications and Limitations
Learning Outcomes:
No
Learning Outcomes
LO1
Identify Projects in a project driven and non-project driven organization
L02
Prioritize Projects, Select Projects and Prepare Project Scope Statement
L03
Identify the sources of finance, prepare projected cash flow statement and balance sheet
L04
Project Planning, Scheduling and Control of Projects
LO5
Carry out work breakdown structure, assign responsibilities and prepare communication plan
LO6
Identify Project Risks and prepare contingency plans
L07
Identify the quality dimensions, benchmark and carry out kaizen activities
Part B: Learning Plan

Academic Term
Course Title
Course No
Lead Instructor
FIRST SEMESTER 2016-2017

PROJECT MANAGEMENT
MM ZG523
ARUN MAITY
Contact Hour 1
Type
Content Ref.
Pre CH
Topic Title
Study/HW Resource Reference
Identify Different Projects in your

Industry
Own Organization
During
CH
1.1, 1.2
Project and Importance of Project

Management
Project Life Cycle
T1: Chapter 1
Post CH
Appendix 1.1,
1.2. 1.3
Project and Program, Project Life

Cycle, Project Management
Processes
T1: Page 20 - 36
Content Ref.
Topic Title
Job Description of a Project

Manager and Skills required
Own Organization
Contact Hour 2
Type
Pre CH
During
CH
1.3, 1.4
Role and Responsibilities of

Project Manager;
T1: Chapter 1
Post CH
Appendix 1.2

Case 1.2 Coal Fired Boilers
Project
T1: Page 37 -46, 48-53
Content Ref.
Topic Title
Draw the organization structure
Own Organization
Contact Hour 3
Type
Pre CH
During
CH
2.1, 2.2
Organization Structure
Right Project Management
Structure
T1: Chapter 3
Post CH
Exercise 2, 3
L.L. Company, Barbara

Electronics
T1: Page 138
Type
Content Ref.
Topic Title
Pre CH
Case 3.1
Moss and Mc Adams Accounting

Firm
T1: Page 141-144
Contact Hour 4
During
CH
2.3
Organization Culture
Case 3.1 Discussion
T1: Chapter 3
Post CH
Case 3.1
Views on Q 1 to 4 on Discussion
Forum
T1: Page 144
Content Ref.
Topic Title
Collection of Secondary
Information regarding Market and
Demand of Main Product
Own Organization
Contact Hour 5
Type
Pre CH
During
CH
3.1, 3.2
Market Analysis
Demand Forecasting
T2: Chapter 4
Post CH
Problem 1, 4,
5
Least Square Method, Elasticity
T2: Page 4.29
Content Ref.
Topic Title
Prepare a note on Technology

Used, Technical Collaboration,
Plant Capacity, Inputs and
Utilities, Product Mix for Main
Product
Own Organization
Technical Analysis
T2: Chapter 5
Carry out technical analysis of ongoing project
Own Organization
Topic Title
Identify Sources of Finance for a

Industrial Project
Own Organization
Contact Hour 6
Type
Pre CH
During
CH
3.3
Post CH
Contact Hour 7
Type
Content Ref.
Pre CH
During
CH
4.1
Financial Estimates and

Projections
T2: Chapter 6, Page 6.1 6.10
Post CH
4.1
Working Capital Requirement and

Financing
T2: page 6.10
Content Ref.
Topic Title
Go through Balance Sheet from

Annual Report
Own Organization
Projected Cash Flow Statement

and Projected Balance Sheet
T2: Chapter 6, Page 6.11 6.19

T2: Chapter 6.28
Contact Hour 8
Type
Pre CH
During
CH
4.2
Examples and Problems

Post CH
Practice Problems
Contact Hour 9
Type
Content Ref.
Topic Title
Vision and Mission Statement,

Thrust Areas
Own Organization
Strategic Management Process
T1: Chapter 2
Identify Organization Strategies

for achieving Goals
Own Organization
Content Ref.
Topic Title
During
CH
5.2
Portfolio Management System
T1: Chapter 2
Post CH
Appendix 2.1
Classify the projects

Request for Proposals
Own Organization
T1: Page 86-88
Content Ref.
Topic Title
Project Selection Method Used
Own Organization
Criteria for Project Selection
T1: Chapter 2
Classify Projects selected as per

financial and non-financial criteria
Own Organization
Topic Title
Time Value of Money
T2: Chapter 7 Page 7.1 to 7.8
Cost of Capital and Investment

Criteria
T2: Chapter 8,
T2: Chapter 10, Page 10.1-10.2
Practice Problems 2, 3, 6, 7
T2: Pag3 8.29-8.30
Pre CH
During
CH
5.1
Post CH
Contact Hour 10
Type
Pre CH
Contact Hour 11
Type
Pre CH
During
CH
6.1
Post CH
Contact Hour 12
Type
Content Ref.
Pre CH
During
CH
Post CH
6.2
Contact Hour 13
Type
Content Ref.
Pre CH
During
CH
7.1
Post CH
Topic Title
Project Scope Statement
T1: Chapter 4, Page 152-153
Defining the Project
T1: Chapter 4
Project Scope Statement
T1: Page 196 - 200
Topic Title
List all the activities of Project

handled by you
Own Organization
Contact Hour 14
Type
Content Ref.
Pre CH
During
CH
7.2, 7.3
Work Breakdown Structure

Responsibility Matrix and
Communication Plan
T1: Chapter 4
Post CH
Case 4.3
Process Development at Union

Chemicals
T1: Page 201-207
Content Ref.
Topic Title
Estimate the time of each activities

for a project
Own Organization
Estimating of Project Costs and

Time
T1: Chapter 5
Carryout Bottom-Up approach for

a project
Own Organization
Contact Hour 15
Type
Pre CH
During
CH
8.1, 8.2
Post CH
Contact Hour 16
Type
Content Ref.
Topic Title
Pre CH
Case 5.1
Read Case 5.1 Sharp Printing, AG
T1: Chapter 5, Page 258-259
During
CH
8.3
Case 5.1
Project Costs
Sharp Printing AG
T1: Chapter 5
T1: Page 258 - 259
Post CH
Appendix 5.2
Project Cost Management
T1: Page 238 - 257
Content Ref.
Topic Title
Identify the relationship between

various activities
Own Organization
Project Planning, CPM
T1: Chapter 6
Contact Hour 17
Type
Pre CH
During
9.1, 9.2
CH
Calculations
Post CH
Prepare a Project Plan in Project

Management Software
Own Organization
Topic Title
Understand Normal Distribution

Table
Statistical Tables
PERT Calculations
T1: Chapter 6
Practice Problems of CPM and

PERT
T1: Page 313-318, 376 - 377
Topic Title
Contact Hour 18
Type
Content Ref.
Pre CH
During
CH
9.3
Post CH
Contact Hour 19
Type
Content Ref.
Pre CH
During
CH
Revise Time Scale Network

10.1
Post CH
Resource Scheduling
Examples
T1: Chapter 8
Problems 1, 2, 3
T1: Page 451-453
Topic Title
Contact Hour 20
Type
Content Ref.
Pre CH
During
CH
Revise Time Scale Network

10.2, 10.3
Post CH
Resource Allocation, Multi-project

Resource Schedules
Examples
T1: Chapter 8
Problems 4, 5
T1: Page 454-455
Topic Title
Contact Hour 21
Type
Content Ref.
Pre CH
During
CH
Post CH
Revise CPM Calculation

11.1, 11.2
Reducing Project Duration

Examples
T1: Chapter 9
Problems 1 - 4
T1: Page 494 - 496
Contact Hour 22
Type
Content Ref.
Pre CH
During
CH
Topic Title
Revise CPM Calculations

11.3
Post CH
Reducing Cost
T1: Chapter 9
Problems 5 -8
T1: Page 497 - 499
Topic Title
Data collection for monitoring

project progress
Own Organization
Project Management Information

System
T1: Chapter 13
Prepare a schedule and track the

project against Plan In MS Project
Own organization
Topic Title
Glossary of Terms used in Earned

Value Analysis
T1: Page 676
Earned Value Analysis

Examples
T1: Chapter 13
Problems 3 -8
T1: page 698 - 712
Topic Title
List various risks in any one

project
Own Organization
Risk Management Process
T1: Chapter 7
Draw Risk Breakdown Structure

and prepare a risk profile for one
project
Own Organization
Topic Title
Risk Assessment for one project

Read Case 7.1
Own organization
Page 394-395
Contact Hour 23
Type
Content Ref.
Pre CH
During
CH
12.1, 12.2
Post CH
Contact Hour 24
Type
Content Ref.
Pre CH
During
CH
12.3
Post CH
Contact Hour 25
Type
Content Ref.
Pre CH
During
CH
13.1
Post CH
Contact Hour 26
Type
Pre CH
Content Ref.
During
CH
13.2, 13.3
Risk Response and Change

Management
Case 7.1 Discussion
T1: Chapter 7
Post CH
Appendix 7.2
Project risk management
T1: page 377 -393
Content Ref.
Topic Title
List the part of project outsourced

and the basis
Own organization
Contact Hour 27
Type
Pre CH
During
CH
14.1
Outsourcing of Project Work
T1: Chapter 12
Post CH
Case 12.1
Shell Case Fabricators
T1: Page 661-663
Content Ref.
Topic Title
Go through contract document of

any project
Own Organization
Contact Hour 28
Type
Pre CH
During
CH
14.2
Contract Management
T1: Chapter 12
Post CH
Appendix 12.2
Project Procurement Management
T1: Page 650-661
Content Ref.
Topic Title
Study Audit Process of any

Project/ Product
Own Organization
Project Audit and Closure
T1: Chapter 14
Prepare Audit Checklist for any

one project
Own Organization
Topic Title
Identify any old project and list

what went wrong and what went
right in the project
Own Organization
Retrospectives
T1: Chapter 14
Prepare a Project Close-out

checklist for one project
Own Organization
Contact Hour 29
Type
Pre CH
During
CH
15.1, 15.2
Post CH
Contact Hour 30
Type
Content Ref.
Pre CH
During
CH
Post CH
15.3
Contact Hour 31
Type
Content Ref.
Pre CH
During
CH
16.1
Post CH
Topic Title
List the quality parameters for a

project
Own organization
Project Quality Management
T1: Chapter 14 Page 765 - 776
Identify the benchmarking

parameters and kaizen activities
Own Organization
Topic Title
Exercise 1
T1: page 846
Project Agile Management
T1: Chapter 17
Exercise 4
T1: Page 846-848
Contact Hour 32
Type
Content Ref.
Pre CH
During
CH
Post CH
16.2
Evaluation Scheme:
Legend: EC = Evaluation Component; AN = After Noon Session; FN = Fore Noon Session
No
Name
Type
Duration Weight Day, Date, Session, Time
EC-1
Quiz-I/ Assignment-I Online
5%
September 1-10, 2016
Quiz-II
Online
5%
October 1-10, 2016
EC-2
EC-3
Quiz-III/ Assignment-II Online
5%
October 20-30, 2016
Mid-Semester Test
Closed Book 2 hours
Comprehensive Exam Open Book 3 hours
35%
50%
25/09/2016 (AN) 2 PM TO 4 PM
06/11/2016 (AN) 2 PM TO 5 PM
Syllabus for Mid-Semester Test (Closed Book): Topics in Session Nos. 16

Syllabus for Comprehensive Exam (Open Book): All topics (Session Nos. 1 to 32)
Important links and information:
Elearn portal: https://elearn.bits-pilani.ac.in
Students are expected to visit the Elearn portal on a regular basis and stay up to date with the latest
announcements and deadlines.
Contact sessions: Students should attend the online lectures as per the schedule provided on the Elearn portal.
Evaluation Guidelines:
1. EC-1 consists of either two Assignments or three Quizzes. Students will attempt them through the course
pages on the Elearn portal. Announcements will be made on the portal, in a timely manner.
2. For Closed Book tests: No books or reference material of any kind will be permitted.
3. For Open Book exams: Use of books and any printed / written reference material (filed or bound) is
permitted. However, loose sheets of paper will not be allowed. Use of calculators is permitted in all
exams. Laptops/Mobiles of any kind are not allowed. Exchange of any material is not allowed.
4. If a student is unable to appear for the Regular Test/Exam due to genuine exigencies, the student should
follow the procedure to apply for the Make-Up Test/Exam which will be made available on the Elearn
portal. The Make-Up Test/Exam will be conducted only at selected exam centres on the dates to be
announced later.
It shall be the responsibility of the individual student to be regular in maintaining the self study schedule as given
in the course handout, attend the online lectures, and take all the prescribed evaluation components such as
Assignment/Quiz, Mid-Semester Test and Comprehensive Exam according to the evaluation scheme provided in
the handout.

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Course Title

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

Prasanna Chandra, Projects: Planning, Analysis, Selection, Financing, Implementation &

Reference Book(s) & other resources

Saxena Anuj, Enterprise Contract Management: A Practical Guide to Successfully

Adedeji Bodunde Badiru, Project Management in Manufacturing and High Technology

Module Title : Project Management Structures

Module Title : Financial Analysis

Module Title : Project Portfolio Management

Portfolio Management System

Module Title : Project Selection

Module Title : Project Scope Statement

Module Title : Project Cost & Time Estimation

Module Title : Project Planning

Module Title : Project Resource Scheduling

Multiple Project Resource Schedules

Module Title : Project Cost Schedule Optimization

Module Title : Project Information Management

Module Title : Project Risk Management

Module Title : Project Contract Management

Procurement: Planning and Conducting

Module Title : Project Audit and Closure

Module Title : Project Quality and Agile Management

Identify Projects in a project driven and non-project driven organization

Prioritize Projects, Select Projects and Prepare Project Scope Statement

Project Planning, Scheduling and Control of Projects

Identify Project Risks and prepare contingency plans

Part B: Learning Plan

FIRST SEMESTER 2016-2017

Study/HW Resource Reference

Identify Different Projects in your

Project and Importance of Project

Project and Program, Project Life

Study/HW Resource Reference

Job Description of a Project

Role and Responsibilities of

Project Integration Management

T1: Page 37 -46, 48-53

Study/HW Resource Reference

Draw the organization structure

L.L. Company, Barbara

T1: Page 138

Study/HW Resource Reference

Moss and Mc Adams Accounting

T1: Page 141-144

T1: Page 144

Study/HW Resource Reference

Least Square Method, Elasticity

T2: Page 4.29

Study/HW Resource Reference

Prepare a note on Technology

Carry out technical analysis of ongoing project

Study/HW Resource Reference

Identify Sources of Finance for a

Financial Estimates and

T2: Chapter 6, Page 6.1 6.10

Working Capital Requirement and

T2: page 6.10

Study/HW Resource Reference

Go through Balance Sheet from

Projected Cash Flow Statement

T2: Chapter 6, Page 6.11 6.19

Examples and Problems