Department of Management Information Systems

Faculty of Business Studies

University of Dhaka

Course Name: Project Management

Course Code: 403

Title of Assignment: Assignment on chapters 5,6 and 8

Submitted to:
Nymatul Jannat Nipa
Assistant Professor
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka

Submitted by:
Asmaul Husna Tamanna
ID- 029-12-117
Section: A
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka
 Chapter: 5
Question 2: Identify the advantages and disadvantages of the matrix form of
organization.

Ans:
A matrix organizational structure is most commonly used in companies to distribute resources and
workers across multiple operations. This type of structure can have both advantages and disadvantages
within the workplace. Understanding the benefits and downsides of a matrix organizational structure can
help to determine if this type of structure is best for the company.
Definition:
A matrix organizational structure is a workplace format in which employees report to two or more
managers rather than one manager overseeing every aspect of a project. For example, an employee may
have a primary manager they report to as well as one or more project managers they work under. This
type of structure is often useful when skills need to be shared across departments to complete a task and
can allow companies to utilize a wide range of talents and strengths.
Advantages:
There are several advantages of implementing a matrix organizational structure within the workplace.
These benefits include:
a) The project is the focus and it remains the project manager's responsibility.
b) Since the project has access to entire organization for labor and technology, it can draw from
functional organizations as required. This also reduces duplication of resources.
c) The project members remain less anxious about the end of the project. After the completion of
the project, they can always return to their functional organizations.
d) Because of the flexibility of matrix organization, the project manager can response rapidly to
client needs. Also, with much remaining within parent organization, response to parent is also
done rapidly and flexibly.

Disadvantages:
While there are many benefits to this type of workplace structure, there are also a few disadvantages to
consider. These include:
a) In a matrix organization, the power is more balanced and the balance is fairly delicate. If
doubt exists, then the work of the project suffers because of that. If the project becomes
successful, then doubt can create political infighting for the credit and glory.
b) If more than one projects are ongoing, then projects may compete for resources. This is
especially true when there are several large projects. Someone above project managers must set
& enforce priorities. Also, multiple schedules will add stress to functional managers
c) Since workers do not have a single manager, this splits loyalty among them. It also makes
performance appraisal difficult. Not only that, this causes difficulty in Information flow.
So, these are the few advantages and disadvantages of a matrixed project approach. Therefore,
those organizations which want to work with this approach must keep these points in mind to
achieve project success.

Question 3: Name the four basic types of project organization and list at least
one characteristic, advantage and disadvantage of each.

Ans:
An organization structure is a very important factor for an organization’s success. Organization
is the key in business and a project’s organization structure can make or break a company’s
main initiatives. There are four types of organizational structures, each of which has their own
unique set of influences on the management of the organization’s projects:

A) Functional
B) Project
C) Matrix
D) Composite

Functional:
One characteristic of a functional organization is that if the project needs resources from some of
the other functional areas, they are expected to support the project.
Advantage:
Individual experts can be utilized by many different projects. With the broad base of technical
personnel available in the functional divisions, people can be switched back and forth between the
different projects with relative ease.
Disadvantage:
One disadvantage of this arrangement is that the client is not the focus of activity and concern.
The functional unit has its own work to do, which usually takes precedence over the work of the
project, and hence over the interests of the client.

Projectized:
The firms administrative support groups report to the president or CEO as staff units.
Advantage:
 The project manager has full line authority over the project. Though the PM must report to a
senior executive in the parent organization, there is a complete work force devoted to the
project. The PM is like the CEO of a fi rm that is dedicated to carrying out the project.
Disadvantage:
 When the parent organization takes on several projects, it is common for each one to be fully
staffed. This can lead to considerable duplication of effort in every area from clerical staff to
the most sophisticated (and expensive) technological support units. If a project does not require
a full-time personnel manager, for example, it must have one nonetheless because personnel
managers come in integers, not fractions, and staff is usually not shared across projects.

Matrixed:
A matrixed organization is a combination of a projectized and functional organization structure.
And it can take a wide variety of specific forms depending on which of the two extremes it most
resembles i.e. functional or standalone.
Advantage:
 There is less anxiety about what happens when the project is completed than is typical of the
standalone project organization. Even though team members tend to develop a strong
attachment for the project, they also feel close to their functional “home.”
Disadvantage:
 For strong matrices, problems associated with shutting down a project are almost as severe as
those in standalone project organizations. The projects, having individual identities, resist
death. Even in matrix organizations, projectitis is still a serious disease.

Composite:
One characteristic of a composite structure is that it leads to flexibility It enables the firm to meet
special problems by appropriate adaptation of its organizational structure.
Advantage:
 Composite organizational structures are very flexible.
Disadvantage:
 Dissimilar groupings within the same accountability center tend to encourage overlap,
duplication, and friction because of incompatibility of interests.

So, these are the four types of project organizations with their characteristic, advantages and
disadvantages in brief.

Question 4: Give some major guidelines for choosing an organizational form

for a project.

Ans:
We need to first consider the nature of the potential project, the characteristics of the various
organizational options, the advantages and disadvantages of each, the cultural preferences of the
parent organization, and make the best compromise we can. The guidelines that to follow for
choosing an organizational form for a project are given below:
 Define the project with a statement of the objective(s) that identifies the major outcomes
desired.
 Determine the key tasks associated with each objective and locate the units in the parent
organization that serve as functional “homes” for these types of tasks.
 Arrange the key tasks by sequence and decompose them into work packages.
 Determine which organizational units are required to carry out the work packages and which
units will work particularly closely with which others.
 List any special characteristics or assumptions associated with the project—for example, level
of technology needed, probable length and size of the project, any potential problems with the
individuals who may be assigned to the work, possible political problems between different
functions involved, and anything else that seems relevant, including the parent firm’s previous
experiences with different ways of organizing projects.


To add more to the guidelines, here are some suggestions regarding to the project forms:
1. Functional Form is best for in-depth application of a technology, large capital investment,
especially when that investment is concentrated in one functional area.
2. Project Form is best for handling a large number of similar projects. Also, it is convenient for
handling a one-time project that requires much control, but is not focused on one functional area.
3. Matrix Form is best for projects that require inputs from several functional areas. As well as
it works well for projects that use technology from several functional areas.
In light of the above, and with full cognizance of the pros and cons associated with each structural
form, one can choose a structure.

Q 5: Why is the project management office so important?

Ans:
Project management office (PMO) is a buzzword that’s been gaining a lot of popularity and
attention. It’s a word that many organizations are gravitating towards and with good reason. The
PMO is a department or group within an organization that defines the standards and processes
for project management. The most effective PMOs reflect the culture and strategy of its
organization and are important for establishing (and maintaining) consistency, efficiencies and
management of costs.
In general, it provides a practical method to ensure that project terms follow the company's
managerial rules and administrative procedures during a project lifecycle. It also provides a
consistent set of tools and procedures for planning scheduling and executing the project.

But while determining if a PMO is a strategic move for an organization it’s important to evaluate
one point in particular: is the company a project-oriented organization. If not, a PMO may not be
necessary. But if yes, then a company should definitely have one to assist with driving the
delivery of projects, establishing methodology and managing resources. While project managers
are responsible for these elements on a per project basis, the central location for the management
of these elements on a company-wide level can only be found within the project management
office. Bottom line, if a company works on more than a handful of projects, they should look into
the possibility of having a PMO and what kind of value it will bring to the organization.

Another measure for evaluating the need for a PMO can be a maturity assessment, by comparing
internal metrics and performance indicators versus industry averages; or even an internal audit
by comparing a project’s performance with that of other departments within the company. Doing
these sorts of comparisons can shed a bright light on how profitable a PMO may really be.

One thing is for sure, a PMO that is implemented properly within the right environment, will
improve project success rates and the standardization of project management practices.

Q 6: Identify three ways of dealing with a conflict associated with projects.

Ans:

Conflict in project management is inevitable. The potential for conflict in information systems
development projects is usually high because it involves individuals from different backgrounds
and orientations working together to complete a complex task. The cause of conflict in team
projects can be related to differences in values, attitudes, needs, expectations, perceptions,
resources, and personalities. Proper skills in dealing with conflict can assist project managers and
other organization members to handle and effectively resolve conflicts which can lead to a more
productive organization as a whole.

Generally, there are 5 ways in which a project manager can deal with a conflict that arises within
the projects and hamper the progress of the projects. Three of these ways are noted below:
Confronting
In this method, people involved in the conflict or having a difference in opinion, they come
forward to discuss the problem at hand with a very open mind. They focus on resolving the
conflict and finding the best alternative/solution for the team. They discuss by rising above
personal emotions with the sole intention to finding what is best for the team. This leads to a
win-win kind of an outcome. Here everyone collaborates.

Compromising
Sometimes for certain conflicts, there will be a need for the involved parties to think of a middle
path wherein both parties decide to give up something and identify a resolution. This kind of
solution will be temporary for that moment and are not long-lasting solution. This leads to lose-
lose kind of an outcome as both parties may feel they have lost something.
Smoothing
This is a technique which is used when the atmosphere seems to be filled with
apprehension/distrust among the parties involved. And no one is coming forward for resolving
the conflict. In these kinds of scenarios, one of the parties can take charge and tries to smooth the
surrounding by using nice words and by emphasizing on the points of agreements and playing
down on the points of disagreements. This can work as catalyst to break the discomfort between
the involved parties by creating a feeling of trust and encourages them to come forward and
resolve the conflict.

So, project managers can adopt any one of these methods to solve conflicts, judging on their
situations.

Chapter: 6
Question 2: Any successful project charter must contain nine key elements.
List the items and briefly describe the composition of each.

Ans:

Before a project even begins, a project charter is a document that incorporates the project and
appoints the project manager. A good project charter contains the following information:

 Purpose: The purpose contains a brief summary of the project’s scope and its objectives.
 Objectives: The objectives should reflect how the project would satisfy requirements in
the dimensions of performance, time, cost, and customer satisfaction. Objectives should
also be set with respect to business impact and future growth potential.
 Overview: This section will describe the managerial and technical approaches used to
complete the project.
 Schedules: The master schedule will be derived from the individual schedules for
resources. Milestones will be used to indicate significant events in the project’s lifecycle.
  Resources: The project’s budget will document both capital expenses and operating
expenses by task. The procedures for cost monitoring and control will also be described.
 Stakeholders: These include anyone, inside or outside of the organization, that has an
interest in the project.
 Personnel: This section covers the types and quantities of human resources needed to
complete the project. It should document unique requirements related to issues such as
security clearances, skill sets, EOE, and local content issues related to hiring and
ownership practices.
 Risk Management Plans: This section describes how uncertainty will be managed in the
project. Its intent is to identify opportunities and threats. Contingency plans are
developed to respond to important risk events should they arise during the project’s
lifecycle.
 Evaluation Methods: This section describes the monitoring and control procedures used
to run the project and to assess its success.

So, these are the nine elements necessary for creating a project charter.

Question 3: What are the general steps for managing each work package
within a specific project.

Ans:
A work package is the lowest component in a work breakdown structure (WBS), sometimes
called the terminal element of a WBS. For reporting purposes, a work package is usually owned
by one person, and includes work that can be completed within a reporting period. The general
steps for managing each work package are:
• Giving project team members planning responsibilities: The team members of the
project are given planning responsibilities according to their tasks so that they can plan their
responsibilities properly.
• Executing work packages: After the team members are done with planning
responsibilities regarding the project, then the work package is executed within the project.
• Evaluating work packages: After execution, each work package is monitored for a time
and is evaluated to find errors or reasons for failures.

Question 4: Describe the hierarchical planning process and explain why it is

useful.
Ans:
A planning hierarchy represents the organizational levels and units in your company for which
you want to plan. A planning hierarchy is a combination of characteristic values based on the
characteristics of one information structure.
Planning hierarchies provide a framework for your planning activities in consistent planning and
level-by-level planning. With these planning methods, a planning hierarchy must exist for the
information structure before one can plan its key figures. One can create only one planning
hierarchy for an information structure. However, a hierarchy can have as many different
branches as one like.
The hierarchical planning process is described below:
 Level 1 - General list of activities in order of the whole project process
 Level 2 - Break every Level 1 tasks into more detailed subtasks
 Level 3 - define tasks into more manageable jobs. It is important that throughout this
hierarchical planning system, the objectives are taken from the project charter as they are
the same for all.

Usefulness:
It is useful for a number of reasons. Firstly, by starting very broadly and gradually adding more
details in a logical and strategic plan. It fits well with the typical organizational hierarchies with
senior and middle-level managers. It helps them to understand the focus of top-level managers
and delegate the tasks among workers according to the necessity and specification of the tasks.
So, these is all about the hierarchical planning process (HPP) and its usefulness.

Question 5: What is shown on a RACI matrix? How is it useful to a PM?

Ans:
RACI matrix is a delegation chart that helps to map every step of the project in detail to avoid
confusion and misunderstanding. RACI is an acronym, which expands as:
 Responsible
 Accountable
 Consulted
 Informed
RACI reduces the role or task-related ambiguity among the team members. It clearly defines the
ownership, level of responsibilities, whom to report, when to involve a project manager and
when they should exercise their decision.
The RACI matrix shows the tasks to be performed, the groups doing the work, and who should
be responsible, accountable, informed, and consulted. With the RACI matrix the PM can keep
up with who must approve what, who must be notified, and other such relationships.
Usefulness:
The usefulness of RACI matrix includes:
 Eliminating role confusion.
 Preventing over-allocation of resources to one project and under-allocation to another.
 Clearly defining roles to all the people who fill them (clear understanding of expectations
is key to a smooth project and reduces the need for conflict resolution later).
 Ensuring no task is overlooked when resources are allocated.
 Providing a fast and efficient way to re-allocate resources when there is turnover. New
people can quickly identify their roles in a project and the roles of those with whom they
must interact.
Finally, because the Informed category is given equal weight, the RACI Matrix encourages
communication between roles. So, this is all about RACI matrix.

Question 8: What are the basic steps to design and use the work breakdown
structure?
Ans:
To design and use the WBS, the basic steps are:
1) Decompose the action plan in sufficient detail so that each activity can be individually
planned, budgeted, scheduled, monitored, and controlled.
2) For each WBS work package, create an LRC.
3) Review the work packages with the responsible resources prior to aggregating the activities
for the project.
4) Convert the WBS into a Cost Breakdown Structure (CBS) that includes budget data for direct
costs, indirect costs, contingency reserves, and profit.
5) Create the master schedule.
6) Capture actual costs and schedule performance and track against the baselines for budget and
schedule.
So, the steps to design and use work breakdown structure has been stated combinedly above.

Question 10: Contrast the project plan, the project charter, and the WBS.
Ans:
Although the three terms are sometimes used interchangeably, they are no synonyms but usually
relate to very different management tools. There is no uniform definition of neither of the three
terms. Depending on the project management methodology one follow, different meanings may
be associated. A contrast between the project plan, project charter and the WBS is described
below:

Work breakdown structure (WBS)

The work breakdown structure (WBS) is at the core of project planning. Project managers use
the WBS to divide the project into controllable elements. It is a visual and hierarchic
representation of all work needed to complete the project. A WBS should be created before a
detailed project plan as it is a basis to estimate the resources needed and to create a cost and time
schedule. What is not mentioned in the WBS, will not be part of the project's scope and therefore
not be delivered.

Project Charter
A project charter is a short document that lists the scope, objectives, deliverables, and
stakeholders of a project, and delineates roles and responsibilities of each member of the project
team. When comparing project charter vs project plan, a project plan is a formal, approved
document that guides project execution and control. The project charter definition terms it as an
unapproved proposal and the first deliverable of the project, used to secure stakeholder approval
for the project goals and terms, and establish authority for the project manager. Once the top
management approves the project charter, the project manager prepares the project plan that
shows how to achieve the approved project goals.
Project Plan
A project plan establishes a general framework which guides all further planning. It is a formal
approved document which defines how the project will be executed, monitored and controlled.
Its primary use is to document planning assumptions and decisions, facilitate communication
among project stakeholders, and document approved scope, cost, and schedule baselines.
Usually, the plan is created as a text document with some illustration to visualize key aspects.
The project team and its key stakeholders should agree on and approve the project plan.
 Chapter: 8
Problem 9

Solution:
From the problem 8 we found that the critical path is:
A→C→E→G
Time for the critical path is:
activities a m b average variance
A 6.5 7.5 14.5 8.5 1.78
C 2.5 3.5 4.5 3.5 0.11
E 5.5 5.5 9.5 6.2 0.44
G 4.5 6.5 8.5 6.5 0.44

Total 24.7 2.78

Standard deviation 1.67

A. For 21 days the probability is:

 X−μ
Z=
σ
21−24.7
=
1.67
=-2.22
= 0.0132
B. For 22 days the probability is:

X−μ
Z=
σ
22−24.7
=
1.67
=-1.62
= 0.0526
A. For 25 days the probability is:
X−μ
Z=
σ
25−24.7
=
1.67
=0.18
=0.5714

Problem 10:

Solution:
The AOA analysis:
activities a m b average variance
AB 3 6 9 6 1
AC 1 4 7 4 1
CB 0 3 6 3 1
CD 3 3 3 3 0
CE 2 2 8 3 1
BD 0 0 6 1 1
BE 2 5 8 5 1
DF 4 4 10 5 1
DE 1 1 1 1 0
EF 1 4 7 4 1

a) The AOA network:

7 7 8 11
0 3
0 0 6 1 16 16
0 B D 0
5
3 3 16
A F
4 4 12 12
0 5 0 4

C E
4 3
 b) Critical path:

AC→CB→BE→EF
4+3+5+4=16

c) All event slacks:

The slack events for all the activities is 0, except for the event D.
The only event with slack is D with 3 days.

d) The critical path probabilities within 14 days:

Activity Average time Variance

AC 4 1
CB 3 1
BE 5 1
EF 4 1
Total 16 4

The standard deviation:

σ =√ ∑ Variance(σ 2)

=√ 4
=2
x−μ
Z=
σ
14−16
=
2
=-1
=0.1587

e) The effect if cd slips into 6 days, 7 days and 8 days:

 Problem 12.

Solution:
The AON analysis:
Activities a m b Average Variance
1 8 10 13 10.2 .83
2 5 6 8 6.2 .50
3 13 15 21 15.7 1.33
4 10 12 14 12 0.67
5 11 20 30 20.2 1.57
6 4 5 8 5.3 0.67
7 2 3 4 3 .33
8 4 6 10 6.3 1
9 2 3 4 3 .33

The AON diagram:

21.9 12 33.9
0 10.2 10.2
1 4 6

8
5
End
Start
6.2 15.7 21.9

3 7
0 6.2 6.2
9
2
Problem 15

17
Solution: 10
7 6 4
2
10 10
5
7 7
1 10 21
3

5 2
8
4 5
5
5 12

Using critical path analysis results in the following table:

Activity a m b Expected Variance Std Dev.

1,2 5 11 11 10.0 1.00 1.00

1,3 10 10 10 10.0 0.00 0.00

1,4 2 5 8 5.0 1.00 1.00

2,6 1 7 13 7.0 4.00 2.00

3,6 4 4 10 5.0 1.00 1.00

3,7 4 7 10 7.0 1.00 1.00

3,5 2 2 2 2.0 0.00 0.00

4,5 0 6 6 5.0 1.00 1.00

5,7 2 8 14 8.0 4.00 2.00

6,7 1 4 7 4.0 1.00 1.00

 Sum of
Expected Variances
Desired Project Critical
Duration Duration Path Z Probability

17 21.0 6.00 -1.63299 5.1%

18 21.0 6.00 -1.22474 11.0%

22 21.0 6.00 0.408248 65.8%

24 21.0 6.00 1.224745 89.0%

24.13 21.0 6.00 1.277817 89.9%

The probability of completion at 17 weeks is quite poor, only 5.1%.

Management can be sure that the project will complete 90% of the time in slightly over 24
weeks.
This analysis suggests that 11% of the time the project will achieve the bonus and 34.2% (100 –
65.8) of the time the project will incur the penalty. Since the project is expected to generate no
profit or loss independent of the bonuses and penalties the expected value calculation yields:
11% X $10,000 + 34.2% X $(-5000) = $(-604)
Strictly based on the expected return management should “no bid” the project. Because the loss
is so small, however, the firm may wish to apply other criteria to decide whether to pursue the
project.

Problem 21
Solution:

a) The ES and LS for each activity are shown in the figure.

b) The website’s early completion time is 16 weeks.
c) The slack on each activity is shown in the figure.
d) The critical activities are A, D, I, L plus J.
e) The critical path is A, D, I, L.