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P ROJECT M ANAGEMENT MB0033 S ET – 2 MBA – 2 n d SEM

PROJECT MANAGEMENT

MB0033

SET 2

MBA 2 nd SEM

Name

Mohammed Roohul Ameen

Roll Number

 

Learning Center

SMU Riyadh (02543)

Subject

Project Management

Date of Submission

28 Feb 2010

Assignment Number

MB0033

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Mohammed Roohul Ameen

Assignment MBA 2 nd Semester

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Subject: MB0033

1. How can risks be prioritized in a project management? Give any suitable example. Risk

1. How can risks be prioritized in a project management? Give any suitable example.

in a project management? Give any suitable example. Risk Management is effective only if each identified

Risk Management is effective only if each identified risk has a priority

Risks are those events or conditions that may occur and whose occurrence has a harmful or negative effect on a project.

Risk management aims to identify the risks and then take actions to minimize their effect on the project.

RM entails additional cost.

Hence RM can be considered cost-effective only if the cost of risk management is considerably less than the loss incurred if the risk materializes.

Risk Assessment In order to identify, characterize, assess threats, determine, and prioritize risks. Before you begin to prioritize your risks, you need to do two things:

Identify Risks - Use risk management effectively by identifying external and internal risks. Analyze the Risks -Clearly define each risk with input on how it will or won't affect project

risk with input on how it will or won't affect project Mohammed Roohul Ameen Assignment MBA

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Analysis Risk The first step in risk analysis is to make each risk item more

Analysis Risk The first step in risk analysis is to make each risk item more specific. Risks such as, “Lack of Management buy- in,” and “people might leave,” are a little ambiguous. In these cases the group might decide to split the risk into smaller specific risks, such as, “manager Jane decides that the project is not beneficial,” “Database expert might leave,” and “Webmaster might get pulled off the project.”

The next step is to set priorities and determine where to focus risk mitigation efforts. Some of the identified risks are unlikely to occur, and others might not be serious enough to worry about. During the analysis, discuss with the team members, each risk item to understand how devastating it would be if it did occur, and how likely it is to occur. For example, if you had a risk of a key person leaving, you might decide that it would have a large impact on the project, but that it is not very likely.

In the process below, we have the group agree on how likely it thinks each risk item is to occur, using a simple scale from 1 to 10 (where 1 is very unlikely and 10 is very likely). The group then rates how serious the impact would be if the risk did occur, using a simple scale from 1 to 10 (where 1 is little impact and 10 is very large). To use this numbering scheme, first pick out the items that rate 1 and 10, respectively. Then rate the other items relative to these boundaries. To determine the priority of each risk item, calculate the product of the two values, likelihood and impact. This priority scheme helps push the big risks to the top of the list, and the small risks to the bottom. It is a usual practice to analyze risk either by sensitivity analysis or by probabilistic analysis.

In sensitivity analysis a study is done to analyze the changes in the variable values because of a change in one or more of the decision criteria. In the probability analysis, the frequency of a particular event occurring is determined, based on which it average weighted average value is calculated. Each outcome of an event resulting in a risk situation in a risk analysis process is expressed as a probability. Risk analysis can be performed by calculating the expected value of each alternative and selecting the best alternative.

Ex: Now that the group has assigned a priority to each risk, it is ready to select the items to mange. Some projects select a subset to take action upon, while others choose to work on all of the items. To get started, you might select the top 3 risks, or the top 20%, based on the priority calculation. Determine scope of the risk session. Select the team and moderator. The moderator explains the risk process to new team members. Identify risks (potential future problems). Brainstorm areas of risk, e.g., Weak areas such as unknown technology. Things which are critical are extremely important to the effort. Such as the timely delivery of a vendor’s database software, creation of translators, or a user interface that meets the customers’ needs. Identify things that

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have caused problems in the past, such as loss of key staff, missed deadlines, or error-prone software. Remove invalid or irrelevant.

Current problems should be treated as problems, not risks. Minimize the risks. Stakeholders may adopt various strategies to prevent the risk but risks are unavoidable. Risks vary from one project to another project. A contingency plan has to be prepared to handle the risks. The main steps to handle risks are:

Identify risks

For each risk item:

a. Does the team understand the risk item? If necessary, split into separate risk items, e.g., Disk may overload under condition X. Disk may overload under condition Y. Discuss and determine its scope.

b. What would the consequences be if this risk item did happen?

c. Determine what the impact would be if the worst happened, using a scale of one to ten.

d. Determine how likely it is that the risk item will occur, using a scale of one to ten.

e. Determine the priority of the risk items and thus which to work on (impact x likelihood).

Analyze the risk Use any of the available methods to analyze the risk. Software may be used for the purpose of analysis.

Plan to mitigate risks Select the most important risk issues, such as the top 2 or 3, or top 20%. Brainstorm on actions that could be taken to reduce the likelihood of the risk item occurring. Brainstorm on actions that could be taken to reduce the impact if the risk item does occur. Decide which actions to pursue. Select a person to be responsible for each action chosen. Document the information in the risk management plan.

Review risks Establish how often risks should be reviewed (once a month is typical). Risk reviews can be incorporated into existing project status and phase reviews. Update the list based on risk review sessions.

Control the risk It refers to controlling the deviations in a project which may be one of the reasons to induce a risk element in the project. Controlling the risk ensures that the project is likely to be completed as per the plans and heading towards the goals set for the project. It is preferable to work in a structured mode to handle risks in a project.

Align Your Toolbox

To help you align and prioritize risks, follow these tips:

Project or product risk - This should be first. If an identified risk will affect the project or product, that's important.

Process - What is your process for the project? How will it flow? Risk you identify here are important to stay on track.

Resources - Who will be the best team for the project? Use Six Sigma to help you choose good team members.

Stakeholders - Who are the stakeholders and at what level will they be involved with any risk. Using stakeholder management is essential in risk management.

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Risk Tools - What tools will you put in place to deal with risk? Your risk treatment plan can help you define these tools.

Acceptable Risk - These should be a low priority and are not risks that affect a project's outcome.

Evaluate Risk - Hold a post-project meeting to evaluate your prioritized risks.

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2. Mention any six characteristics of interpersonal behavior. What are the types of reviews? Interpersonal

2. Mention any six characteristics of interpersonal behavior. What are the types of reviews?

of interpersonal behavior. What are the types of reviews? Interpersonal Behavior is basically how "two

Interpersonal Behavior is basically how "two persons" interact in any setting. It is extremely important in organizations or even schools and other education institutions to strengthen interpersonal relationships. When at a basic level, that is, between two people the relationship is strong and pleasant; it will lead to proper behavior. This behavior will result in productive work which is ultimately what organizations are looking for. At the employee level if trust and passion for work exists, the unity between them can achieve great results. These results would be in terms of reduction in the time lag, better quality work, and excellence in working procedures. Even in an educational institution such behaviors have a chain reaction. If two people do not get together and are forced together in a group assignment, it might just be completed half-heartedly by the two and not achieve desired results. This will have two consequences. First, it will affect the other group members and their grades. Second, it will foster hatred and mistrust within which will have long term effects on those two and those surrounding them.

long term effects on those two and those surrounding them. Characteristics Interpersonal Behavior: In a team

Characteristics Interpersonal Behavior:

In a team the maxim that all members will do well to remember is “Learn to appreciate the problems of others, and some others would appreciate yours”. It is therefore important that in a business environment, particularly in Project Management, efforts to evolve solutions jointly have great benefits, both for the teams as well as the organization. The top management has the responsibility of encouraging such a culture to develop team work to healthy inter-personal behavior. The following are the main characteristics of inter-personnel behavior:

Projection of a pleasant, but firm personality

Clarity of expression and communication

Patience in listening and reacting with empathy

Documentation and correct recording

Offer to help

Call for help whenever necessary

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Seeking information before attempting decisions

Not waiting for things to go wrong

Motivation of others through efficiency and meticulousness, rather than urging and exhibiting dependency

Putting team goals ahead of individual targets.

The project manager should make it a habit of expressing appreciation openly for any good work done. Cross Functional Teams have become a necessity and the synergy they generate would be lost if inter-personal behavior is not of high standard. As members are from different functions, understanding the requirements or compulsions of others is difficult. This fact should be impressed upon all the members and requesting them to cooperate is vital.

Types of Review:

It is very easy for projects to go astray, because most of the activities are not repeated. Learning will have to take place on the first task. This is where the competent Project Manager becomes important. Instructions will have to be clear and the progress kept in constant purview with reference to milestones.

As a governing committee it has to make continuous reviews of performance of the projects. The PMO must create and maintain the ability of the project manager to keep focused on the client’s requirements and meet them. He must have the necessary tools to affect them.

The reviews are generally divided into four types which are conducted at different stages of the project.

1. Initiation Reviews (IR)

2. Planning and Proposal Reviews (PPR)

3. Procurement Reviews (PR)

4. Quality Assurance Reviews (QAR)

A project review is a process where we capture information from the team experience and see the variances and deviations from the plan. These reviews help in increasing productivity and improve organizational success.

The purpose of the reviews can be generally stated as under. Depending on the manager’s ability they can be made more meaningful. Performance improvement starts with commitment to an agreed plan. The reviews are meant to keep the activities are according to the plan. The purpose of them can be states as:

Finding out the feasibility of the project and helping management team to take a decision based on this initial Review.

Checking if all the necessary activities were done before presenting a customer the proposal or solution

Checking if all the formal agreements and procedures were formally accepted and reviewed between the customer and the project delivery organization.

Finding out the deviation and allowing elbow room for changes in the action plan for improvement. Desk: 0845 000 4999 E: ServiceDesk@ogc.gsi.gov.uk

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3 . What are the main considerations in planning P2M? Give relevant examples. Project and

3. What are the main considerations in planning P2M? Give relevant examples.

main considerations in planning P2M? Give relevant examples. Project and Program Management – P2M The P2M

Project and Program Management P2M

The P2M is potentially the most significant advance towards genuine integration and acceptance of the role of project and program management at the enterprise level. Factors contributing to this significance include the guide development with the support of the government, industry and professional associations expected support for adoption and application within enterprises

Develops an approach to enterprise project and program management that starts afresh from the viewpoint of the enterprise rather than drawing on project paradigms developed in the context of large, single, physical projects to the day to day business of project based organizations.

Directly addresses program management (rather than focusing only on single projects)

Recognizes and responds to the complexities of fast moving, multi stakeholder environments

Recognizes and addresses the systematic nature of projects and programs

Program management is the process of managing several related projects, often with the intention of improving an organization's performance.

Differences from project management

The key difference between a program and a project is the finite nature of a project a project must always have a specific end date, else it is an ongoing program.

One view of the differences between a program and a project in business is that:

1. A project is unique and is of definite duration. A program is ongoing and implemented within a business to consistently achieve certain results for the business.

2. A project is designed to deliver an output or deliverable and its success will be in terms of delivering the right output at the right time and to the right cost.

3. Program management includes management of projects which, together, improve the performance of the organization. A program's success will be measured in terms of benefits.

4. Benefits are the measures of improvement of an organization and might include increased income, increased profits, decreased costs, reduced wastage or environmental damage, more satisfied customers. In central or local government organizations, benefits might include providing a better service to the community.

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5. In the course of achieving required results, business programs will normally understand related business constraints and determine the processes required to achieve results based on resources allocated. Improvement of processes is a continuous operation that very much contrasts a program from a project.

6. At the lowest level project managers co-ordinate individual projects. They are overseen by the program manager who accounts to the program sponsor (or board).

7. There will normally be a process to change the predetermined scope of a project. Programs often have to react to changes in strategy and changes in the environment in which the organization changes.

Main considerations in planning P2M

Some of the considerations for effective program management are given below:

Focusing on the various strategic initiatives taken up for multiple projects and the issues related to benefits and risks.

Bringing about the attention of management to a defined set of benefits, which are understood immediately, which are managed throughout the implementation and at completion?

Helping top management to set priorities, choosing options and allocate resources

Setting up mechanisms to measure and ensure that the projects making contributions for realizing expected business benefits.

Leading the organization on the path of ‘where it is and where it wants to be’ and ensuring that the effects of the program driven changes are coordinated, the transitions are successfully managed. The operations are effective and efficient.

The objectives sought to be achieved and the methods which are adopted and the activities that are going to be undertaken i.e. the process include the following steps:

Preparing and maintaining a set of activities and the workflow that is to be followed and identifying business areas responsible for different stages in the above;

Making sure that the priorities that the above generate are relevant and the projects are run on the basis of their impact on the business as a whole;

Structuring the program so that the responsibilities and roles at both program and project level are acceptable to both the top management and managers;

Planning the various points of review between various phases of the projects.

The process has to incorporate all the important aspects which are to be addressed during implementation and management of the projects. It is important to identify all factors and incorporate resources men, materials, technology and time so that their provision can be planned.

Managing the Program When we consider the portfolio of projects as a program, the main considerations will be on resources, risks associated with the program, quality of the projects at every stage of the execution- as meeting the requirements of the client as per the contract and monitoring the change processes that get enmeshed during implementation. The specifics concerning the above are listed below:

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i. Evaluating the risks associated with the program the planned changes to the business operations;

ii. Ensuring that the processes to ensure quality are sufficient and purposes are fully met;

iii. Keeping track of the changes and developments external to the project environment and studying their impact on the program.

iv. Making sure that the personnel in business affected by the above are informed and trained so that the projects are smoothly;

v. Ensuring that the support services like human resources and IT are able to adapt to the changes that take place in the projects and business operations as a whole.

Projectised Organizations This is one of the various models of organizations, which enterprises adopt to run their businesses depending on the policies they follow, the opportunities they want to exploit and the constraints that the environment forces on them. Most organizations follow some sort of ‘projectisation’ of their activities – be it manufacturing, development of a product, research, entering a market, acquiring of another company, training programs, setting up a new plant etc. In some situations they find it advantageous to treat a set of activities requiring resources of different kinds for short periods to reach a particular stage. They call that a project. Projectised operations have in them some are all of the following objectives, so that this business model to be useful.

Accommodate discrete projects as a group in certain organizational units to facilitate monitoring and controlling performance levels at various stages.

Assign priority of divisional management efforts based on Pareto’s law backed by statistics or rules of thumb for prevention of problems or profit growth on a group of projects in hand.

Facilitate project resource assignment and subsequent adjustment especially human and information resources among the various projects.

Enumerate, evaluate and implement various procedures of standardization in the form tables, charts, manuals, templates with the abundance of data that get generated across projects. Analyses of data help in identifying opportunities of making changes in similar projects.

The project management capability can be enhanced perhaps with the help of the PMO, by setting objectives and measuring them with success achieved. Each project can be measured for its maturity level. Enhancement of the levels of different projects does become a motivational factor for performance enhancement. A system of internal benchmarking gets initiated almost automatically resulting in highly efficient organization as a whole. The principles of Project Management can be extended to various traditional operational type units. The main differences between the traditional and project approach are mentioned below. Here, we would like to emphasize that no one approach can be considered the better for all businesses or at all times for the same business. However, many organizations have found the project approach worth giving a try to improve productivity.

Traditional organizations We have the formal organization structure, with departments, functions, sections having a hierarchy of managers and their assistant. All of them function on a continuous basis catering to a series of requirements issued by the planning department. An assembly of various units of their production forms a products and a variety of such products make up the business of the company. No one particular member or a department or a team is

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responsible for the completion of any particular product. Their creativity and innovation is particular respect of jobs. Most of them do not get exposed to other areas of operations in the organization. They will become specialists and be insular.

Projectised organizations have teams comprising members who are responsible for completing one completely deliverable product. They will have all the resources required to do all jobs or operations to complete it. Most importantly, they have a time schedule within which all the elements of the projects have to be completed. It has been found that a sense of ‘ownership’ of the project motivates them for being creative; cooperate among them to achieve high productivity.

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4. What is the significance of reviewing ROI? Explain in detail. A performance measure used

4. What is the significance of reviewing ROI? Explain in detail.

is the significance of reviewing ROI? Explain in detail. A performance measure used to evaluate the

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

The return on investment formula:

a percentage or a ratio. The return on investment formula: Incremental Profit = ROI Total Cost

Incremental Profit

= ROI

Total Cost

Anytime a company invests in something be it a machine, a new vendor, a new process, or even a new employee the business always expects a return on investment. Most businessmen will gauge just how well the company is being managed by how much return on investment they get. A self proprietor can be at ease when they see that their company gets a good return on investment.

The owners of a company and the company’s creditors share a similar goal: to increase wealth. They are thus very concerned about profitability in all phases of operations. Creditors are specifically concerned that the company use its resources profitably so that it can pay interest and principal on its debt. Owners are concerned that the company be profitable so that stock values will increase. Company managers must show they can manage the owners’ investment and produce the profits that owners and creditors demand. Because top management must meet the profit expectations of company owners, it passes down to the lower levels of management those profitability goals, which are then spread throughout the company. All managers, therefore, are expected to meet profitability goals, which are often increased and tightened as each level of management seeks a margin of safety.

Significance Reviewing ROI

Profits happen when a company operates effectively. We can tell that the management team is doing its job well if the company prospers, obtains funding, and rewards the suppliers of its funds.ROI is the principal tool used to evaluate how well (or poorly) management performs.

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Creditors and Owners

ROI is used by creditors and owners to do the following:

1. Assess the company’s ability to earn an adequate rate of return. Creditors and owners

can compare the ROI of a company to other companies and to industry benchmarks or norms. ROI provides information about a company’s financial health.

2. Provide information about the effectiveness of management. Tracking ROI over a

period of time assists in determining whether a company has capable management.

3. Project future earnings. Potential suppliers of capital assess present and future

investment and the return expected from that investment.

Project Managers

But ROI can do more than measure a company’s performance. Project Managers can use ROI at different levels to help them make decisions regarding how best to maximize profits and add value to the company. Project Managers use ROI to do the following:

1. Measure the performance of individual company segments when each segment is

treated as an investment center. In an investment center, each segment manager

controls both profit and an investment base. ROI is the basic tool used to assess both profitability and performance.

2. Evaluate capital expenditure proposals. Capital budgeting is long term planning for

such items as renewal, replacement, or expansion of plant facilities. Most capital budgeting decisions rely heavily on discounted cash flow techniques.

3. Assist in setting management goals. Budgeting quantifies a manager’s plans. Most

effective approaches to goal setting use a budgeting process in which each manager participates in setting goals and standards and in establishing operating budgets that meet these goals and standards. Most budgeting efforts begin or end with a target ROI.

Profit Goals May Increase as They Are Delegated

All managers are expected to meet profitability goals, which are often increased and tightened as each level of management seeks a margin of safety.

Boards chair

“Let’s target 5 percent profit.”

President

“We need 10 percent profit this year.”

Vice president

“Your goal is 15 percent.”

Middle manager

“We’ve got to turn a 20 percent profit!”

Line manager

“Earn 25 percent or else!”

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Summary

Perhaps the biggest reason for the popularity of ROI is its simplicity. A company’s ROI is directly comparable to returns on other, perhaps more familiar, investments (such as an account at the bank) and to the company’s cost of capital. If we pay 10 percent interest on capital but earn only 8 percent, that’s bad. If we pay 10 percent but earn 15 percent, that’s good—what could be simpler? Alone or in combination with other measures, ROI is the most commonly used management indicator of company profit performance.

It is a comprehensive tool that measures activities of different sizes and natures and allows us to compare them in a standard way. In other words, through ROI we can compare apples and oranges; at least in the area of profitability.ROI has its faults and its advantages. It is sometimes tricky to use if you do not understand it completely.

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Assignment MBA 2 nd Semester

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5. What is meant by baseline? How is it reviewed? A baseline is used to

5. What is meant by baseline? How is it reviewed?

5. What is meant by baseline? How is it reviewed? A baseline is used to perform

A baseline is used to perform analysis to find current performance against to the expected level for a specific activity in established time-phase.

In Project Management, Baseline refers to the accepted and approved plans & their related documents. Project baselines are, generally, approved by project management team and those are used to measure and control of project activities.

Though baselines are outputs of planning stage, but they are referred and updated during executing & monitoring and controlling process groups.

Baselines give the project manager a best way to understand project progress (by analyzing baseline vs. actual) and forecast the project outcome.

Baselines are important input to number of project processes and outputs of many processes raise change request to these baselines.

Project baselines include, but are not limited to:

Schedule baseline

Cost baseline

Scope baseline

Quality baseline

Baselines are prepared on triple constraints Scope, Time, Cost (and Quality) management areas. All the above are considered as components Project management plan. Often the scope, schedule, and cost baseline will be combined into a performance measurement baseline that is used as an overall project baseline against which project performance can be measured. The performance measurement baseline is used for earned value measurements.

When project requirements have been analyzed and documented and the project planning baseline has been established for scope, cost, and schedule, project execution and control activities can begin. This involves application of conventional system control techniques to the project effort.

Considering the project effort to be a process, the plans, specifications, resources, and methods are the inputs. The process outputs should be continually monitored and compared to the plan. Adjustments in the process should be made to confirm the project output to that desired. Variance between project results and the plan should be assessed and reported periodically.

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For a project to be under control, it needs to be organized as a closed system. This is done by establishing baselines for scope, cost and schedule and then putting them under some form of version control. Once the project has been contained in these three dimensions, it can be measured, monitored and controlled. If a project does not have such baseline management, it cannot be managed and measured as a closed system, and must be therefore considered to be out of control. No meaningful performance measurements can be made where the scope, cost, and schedule are not bounded and under some form of change control disciplines.

If it becomes apparent that the project cannot be managed to its baseline, radical changes may be required. Changes to project scope or the realization that the project plan is seriously flawed can make the baseline of questionable value for project control. In such a case, the project may have to be re-planned and re-baselined. When a new baseline is established, the same process of monitoring output and controlling the process must be continued.

Establishing the baseline is the formal end of the planning phase and the beginning of project execution and control. Controlling the project baseline is absolutely essential to project success. Other than misunderstood requirements, bad cost and schedule estimates, and technical difficulties, the things that will most likely imperil a project are the changes.

It is hard to evaluate what has changed if you don’t know where you were to start with. Knowing where you started, and documenting it, establishes your baseline. This baseline is your budget, schedule, and project scope. After the initial iterative planning process, the planning baselines must be frozen and put under configuration control.

The importance of putting the scope and plan under version control cannot be overstated. When you have version control, you can measure progress and status. Without version control, status and progress measurements become meaningless. A project without a stable planning baseline is flying blind.

Requirements creep can drive costs and schedules beyond their thresholds, and changes implemented in a haphazard fashion, or even many changes implemented in a disciplined fashion, can create confusion throughout a project organization. It is therefore important to manage the pace of change as well as the change process itself.

On-going requests for changes to the project requirements may be symptomatic of an incomplete initial requirements analysis or the failure of the project team to adequately involve and communicate with users and customers early in the project effort.

The Project Baseline Review (PBR) is a formal inspection of the entire project and performance measurement baseline initially developed for the IT project. The PBR is conducted during the Planning Phase by the Technical Review Board (TRB) to obtain management approval that the scope, cost and schedule that have been established for the project are adequately documented and that the project management strategy is appropriate for moving the project forward in the life cycle. The PBR includes review of the budget, risk, and user requirements for the investment; emphasis should be on the total cost of ownership and not just development or acquisition costs.

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From the technical perspective the baseline once created can be used to compare the original project plan with actual events and achievements. This will display the days required for each task and project phase.

Tracking Progress

After creating a baseline, if the project has begun, it is necessary to enter actual dates that tasks are being completed and the resource utilization used to complete them. Again review different views and the cost and summary tables before proceeding to the next section. Return to the Entry view of the Gantt chart before proceeding.

Balancing Workloads

At times people and equipment can become assigned more work than they can complete in normal working hours. This is called over allocation. Project can test for this condition and reschedule (or level) their workload to accommodate completing tasks during a normal day.

Monitoring Variances

After a baseline has been established and the project has begun, it is desirable to determine if tasks are being accomplished on time and /or if cost over runs are occurring.

Creating Reports

Project has many different built-in reports and has the capability building custom reports and exporting data to other MS Office applications for integration into other reporting venues.

To setup a baseline in Microsoft Project 2007, follow the below commands:

1. Name and create your project.

2. Go to the Tools dropdown menu, and select Tracking: Set Baseline.

3. From here, you should open the Baseline Menu, and click on your baseline number (Baseline 1 to Baseline 11).

4. Click OK.

Your baseline needs to be realistic. You can't create goals that are way out of reach. If your baseline is not realistic, there is a good chance that your project will fail. You need to have a good point of reference to which to compare the actual work. If the baseline was off-track to begin with, you won't have a good enough static reference point to which to refer back.

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point to which to refer back. Mohammed Roohul Ameen Assignment MBA 2 n d Semester 18

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6. Explain in detail GDM and its key features. The Global Delivery Model (GDM) is

6. Explain in detail GDM and its key features.

6. Explain in detail GDM and its key features. The Global Delivery Model (GDM) is adopted

The Global Delivery Model (GDM) is adopted by an Industry or Business such that it has a capability to plan design, deliver and serve to any Customers or Clients Worldwide with Speed, Accuracy, Economy and Reliability. The key Features of GDM are

Standardization

Modularization

Minimum Customization

Maximum Micro structure

Adoption of a Combination of the Greatest Common Multiple and the Least Common Factor of a

Large Mass of Microbial Components:

a. Standardization Ingenious Design and Development of Components and Features which are like to be accepted by 90% of World-wide Customers. Global Standards of Design focusing on highly standardized Methods and Processes of manufacture or Development. Adopt Plug-and-socket Concepts with minimum adaptable joints or Connections.

b. Modularization Product or Solution split up into smallest possible individual Identifiable Entities, with limited Individual Functioning Capability but powerful and robust in Combination with other Modules.

c. Minimum Customization Minimum Changes or Modifications to suit Individual Customers.

d. Maximum micro structuring Splitting of the Product Modules further into much smaller entity identifiable more through characteristics rather than application Features. Approach is through Standardization of these Microbial Entities even across Multiple Modules. Application of these Microbial Entities to rest within multiple Projects or Products or even as add-ons suit belated Customer Needs.

Special Key Features of GDM Some of the special feature of GDM is

Cuts across Geographical and Time Zone Barriers

Unimaginable Speeds of Response and Introduction.

Common Pool of Microbial Components

Largely Independent of Skill Sets required at Delivery Stages

Highly automated Processes

Quality Assurance as a Concurrent rather than a Control Process

Near-Shore Development, Manufacture and Delivery for better Logistics

Mapping of Economical Zones rather than Geographic Zones

Continuous Floating virtual Inventory to save Time and Efforts.

Mohammed Roohul Ameen

Assignment MBA 2 nd Semester

19

Roll Number:

Subject: MB0033

Most IT services and consulting firms worldwide make a reference to this model of delivery to signify one or more of the following value propositions they bring to their customers:

A global presence ensures an understanding of the local language and culture wherever they may be present, which is seen to be an advantage when trying to understand customer requirements.

A global presence implies that the organization has access to resources of varying costs that allows it to deliver services to its customers at an optimal cost, typically a mix of costlier 'on- site' resources combined with cheaper 'offshore' resources.

A global delivery model implies that potentially, a firm can work round the clock for its customer, handing off work from one location to another at the end of the 'day shift' ('follow the sun' model) - thus providing twice or even three times the capacity they would have if they worked in a single location/ time-zone only.

Global locations also provide some degree of 'risk-proofing' a customer from natural or man-made disasters such as flooding, earthquake or political unrest - causing disruption in one place. In case of such events, a global company could presumably transfer work to another location where the situation is normal, thus ensuring that work did not get delayed for the client.

Some examples of organizations that provide the benefits of the Global Delivery Model to its customers are:

TCS’ - Global Network Delivery

Infosys

-

Global

Delivery

Model

TCS' Global Network Delivery

TCS' Global Network Delivery Model™ is the engine that allows us to provide reliable, scalable and cost effective delivery of services and solutions. This time-tested model has enabled us to achieve client satisfaction ratings of 89% for meeting quality expectations and an average budget variation on projects of just 3% -- both figures far better than industry norms.

TCS' Global Network Delivery Model™ enables our clients to:

Choose a sourcing strategy best suited to their most important business considerations, e.g., cost optimization, cultural alignment, location proximity, language capabilities or risk-mitigation.

Be assured of the highest quality of service delivery regardless of the mix of services, technologies, and locations.

Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams -- such as Consulting, IT Services, IT Infrastructure Services, etc. -- through a unified delivery framework.

Mohammed Roohul Ameen

Assignment MBA 2 nd Semester

20

Roll Number:

Subject: MB0033

All of TCS' processes and infrastructure have been developed from the ground up -- as opposed to being cobbled together over time. The Global Network Delivery Model™ consists of 3 integrated components:

Global Workforce

o Highly effective and scalable talent management - recruiting, staffing, training and retention

Integrated Processes

o

CMMI Level 5 quality processes

o

World-class security procedures

o

Project Management processes and tools (iQMS, etc.)

Multi-Tiered Infrastructure

o

Multi-continent and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage

o

State of the art and redundant telecommunications network

o

Global collaboration tools

Mohammed Roohul Ameen

Assignment MBA 2 nd Semester

21

Roll Number:

Subject: MB0033