Professional Documents
Culture Documents
Project Management
Project Management
JNU, Jaipur
First Edition 2013
JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the
content whenever the need arises, and to vary it at any time without prior notice.
Index
I. Content....................................................................... II
IV. Abbreviations.......................................................VIII
V. Case Study................................................................ 75
VI. Bibliography............................................................ 79
Book at a Glance
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Contents
Chapter I........................................................................................................................................................ 1
Principles of Project Management.............................................................................................................. 1
Aim................................................................................................................................................................. 1
Objectives....................................................................................................................................................... 1
Learning outcome........................................................................................................................................... 1
1.1 Introduction............................................................................................................................................... 2
1.2 Defining Project and Project Management............................................................................................... 2
1.3 Need for Project Management.................................................................................................................. 2
1.4 Basic Characteristics of Projects............................................................................................................... 2
1.5 The Project Life Cycle.............................................................................................................................. 2
1.6 The Project Manager................................................................................................................................. 3
1.7 Knowledge Areas, Process and Connection.............................................................................................. 3
1.8 Phases of Project Management Life Cycle............................................................................................... 4
1.9 Project Management Processes................................................................................................................. 5
1.10 Project Failure......................................................................................................................................... 6
1.11 Essentials of Project Management.......................................................................................................... 7
1.11.1 What is a Project?................................................................................................................... 7
1.11.2 Project parameters for negotiation.......................................................................................... 7
1.11.3 How does project management “Add Value”?........................................................................ 7
1.12 Project Management Functions............................................................................................................... 8
Summary........................................................................................................................................................ 9
References...................................................................................................................................................... 9
Recommended Reading................................................................................................................................ 9
Self Assessment............................................................................................................................................ 10
Chapter II.................................................................................................................................................... 12
Project Planning and Processes................................................................................................................. 12
Aim............................................................................................................................................................... 12
Objectives..................................................................................................................................................... 12
Learning outcome......................................................................................................................................... 12
2.1 Introduction............................................................................................................................................. 13
2.2 Project Life Cycle and Process Flows.................................................................................................... 13
2.3 Characteristics......................................................................................................................................... 14
2.4 Project Planning and Scoping................................................................................................................. 14
2.5 The main project planning processes...................................................................................................... 15
2.5.1 The identification process - The main steps in the identification process of any
projects are as follows:........................................................................................................... 15
2.5.2 The Review Process................................................................................................................ 15
2.5.3 The Analysis Process.............................................................................................................. 15
2.6 Planning Tools and Estimation .............................................................................................................. 16
2.6.1 Planning Tools ....................................................................................................................... 16
2.6.2 Planning Estimation................................................................................................................ 18
2.7 Estimation Approaches and estimation tools ......................................................................................... 19
2.7.1 Estimation Approaches........................................................................................................... 19
2.7.2 Estimation Tools..................................................................................................................... 19
2.8 Risk Management................................................................................................................................... 20
2.8.1 Components............................................................................................................................ 20
Summary...................................................................................................................................................... 21
References.................................................................................................................................................... 21
Recommended Reading.............................................................................................................................. 21
Self Assessment............................................................................................................................................ 22
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Chapter III................................................................................................................................................... 24
Project Management Essentials................................................................................................................. 24
Aim............................................................................................................................................................... 24
Objectives..................................................................................................................................................... 24
Learning outcome......................................................................................................................................... 24
3.1 Introduction............................................................................................................................................. 25
3.2 Characteristics of Project Mindset.......................................................................................................... 25
3.3 Process Groups........................................................................................................................................ 25
3.3.1 Process Interactions................................................................................................................ 25
3.3.2 Processes Interaction Initiating processes............................................................................... 25
3.4 Customization......................................................................................................................................... 26
3.5 Project Monitoring and Control.............................................................................................................. 26
3.6 Project Progress Control......................................................................................................................... 27
3.6.1 Approvals................................................................................................................................ 28
3.6.2 Change Control....................................................................................................................... 28
3.6.3 Changing Project Management Process................................................................................. 28
3.6.4 Tools for changing a Process.................................................................................................. 29
3.6.5 Project Closure........................................................................................................................ 29
3.6.6 Completion of activities and benefits..................................................................................... 29
3.6.7 Post Implementation Review.................................................................................................. 29
3.6.8 Tools for Post Implementation Review................................................................................... 30
3.6.9 Final project reporting and documentation............................................................................. 30
Summary...................................................................................................................................................... 31
References.................................................................................................................................................... 31
Recommended Reading.............................................................................................................................. 31
Self Assessment............................................................................................................................................ 32
Chapter IV................................................................................................................................................... 34
Concepts of Managing Conflict, Quality and Information System........................................................ 34
Aim............................................................................................................................................................... 34
Objectives..................................................................................................................................................... 34
Learning outcome......................................................................................................................................... 34
4.1 Introduction............................................................................................................................................. 35
4.2 Concept of Managing Conflicts, Quality and the Information System.................................................. 35
4.2.1 Conflict Management............................................................................................................. 35
4.2.2 Communication Requirement and Capabilities...................................................................... 35
4.2.3 Quality Management............................................................................................................... 35
4.2.4 Project Management Information System.............................................................................. 35
4.3 Modern Trends I Project Management................................................................................................... 36
4.4 Perception............................................................................................................................................... 36
4.4.1 Project Development Process Cycle....................................................................................... 36
4.4.2 Macro Issues........................................................................................................................... 37
4.4.2.1 Evolving Key Successes Factors Upfront................................................................ 37
4.4.2.2 Empowerment Title.................................................................................................. 38
4.4.2.3 Partnering Decision Making.................................................................................... 38
4.4.2.4 Management by Exception....................................................................................... 38
4.4.3 Knowledge Factor (K)............................................................................................................ 38
4.5 The Modern Mantra of Project Management.......................................................................................... 39
4.6 New Horizon in Project management..................................................................................................... 39
Summary...................................................................................................................................................... 41
References.................................................................................................................................................... 41
Recommended Reading.............................................................................................................................. 41
Self Assessment . ......................................................................................................................................... 42
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Chapter V..................................................................................................................................................... 44
Project Performance through Project management Office and Human Resource.............................. 44
Aim............................................................................................................................................................... 44
Objectives..................................................................................................................................................... 44
Learning outcome......................................................................................................................................... 44
5.1 Introduction............................................................................................................................................. 45
5.1.1 Project Management Office.................................................................................................... 45
5.2 Improvement of Performance................................................................................................................. 45
5.2.1 Reviews and their purpose...................................................................................................... 45
5.3 Project Manager Teams........................................................................................................................... 46
5.4 Professional Responsibility..................................................................................................................... 46
5.5 Human Resource Management............................................................................................................... 46
5.6 Personnel Productivity............................................................................................................................ 47
5.6.1 Assessment of personnel Productivity.................................................................................... 47
5.7 Team Work and Interpersonal Behavior................................................................................................. 48
5.8 Traits of Successful teams....................................................................................................................... 48
Summary...................................................................................................................................................... 49
References.................................................................................................................................................... 49
Recommended Reading.............................................................................................................................. 49
Self Assessment............................................................................................................................................ 50
Chapter VI................................................................................................................................................... 52
Project Development and Modern Trends in Project Management Perception................................... 52
Aim............................................................................................................................................................... 52
Objectives..................................................................................................................................................... 52
Learning outcome......................................................................................................................................... 52
6.1 Introduction............................................................................................................................................. 53
6.2 Project Development Process Cycle....................................................................................................... 53
6.3 Modern Trends in Project Management Perception................................................................................ 54
6.4 Recent Revolutions in Project Management........................................................................................... 55
Summary...................................................................................................................................................... 56
References.................................................................................................................................................... 56
Recommended Reading.............................................................................................................................. 56
Self-Assessment........................................................................................................................................... 57
Chapter VII................................................................................................................................................. 59
Organizational Issues in Project Management........................................................................................ 59
Aim............................................................................................................................................................... 59
Objectives..................................................................................................................................................... 59
Learning outcome......................................................................................................................................... 59
7.1 Introduction............................................................................................................................................. 60
7.2 Organizational Change............................................................................................................................ 60
7.2.1 Evolutionary change............................................................................................................... 60
7.2.2 Revolutionary Change............................................................................................................ 60
7.3 Traits Of professional manager............................................................................................................... 61
7.4 Bringing about Organizational Change in the Project Management Scenario....................................... 64
Summary...................................................................................................................................................... 65
References.................................................................................................................................................... 65
Recommended Reading.............................................................................................................................. 65
Self Assessment............................................................................................................................................ 66
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Chapter VIII................................................................................................................................................ 68
Project Risk Management ......................................................................................................................... 68
Aim .............................................................................................................................................................. 68
Objectives..................................................................................................................................................... 68
Learning outcome......................................................................................................................................... 68
8.1 Introduction............................................................................................................................................. 69
8.2 Planning for Project Surprises-coping with Risk.................................................................................... 69
8.2.1 When to Perform Risk management....................................................................................... 69
8.3 Risk Management Planning.................................................................................................................... 70
8.4 Risk Management Process...................................................................................................................... 70
8.5 Overview of Risk Management.............................................................................................................. 71
Summary...................................................................................................................................................... 72
References.................................................................................................................................................... 72
Recommended Reading.............................................................................................................................. 72
Self Assessment . ......................................................................................................................................... 73
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List of Figures
Fig. 1.1 Connection between process groups in a phase................................................................................. 3
Fig. 1.2 Knowledge area and processes.......................................................................................................... 4
Fig. 2.1 Development Plan, Project Tracking and Oversight....................................................................... 17
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List of Tables
Table 2.1 Project characteristics................................................................................................................... 14
Table 2.2 Project Organization .................................................................................................................... 16
Table 3.1 Characteristics of project mindset................................................................................................. 25
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Abbreviations
CM - Configuration Management
CMM - Capability Maturity Model
CMS - Changes Management System
ISO - International Organization for Standardization
SEI - Software Engineering Institute
TQM - Total Quality Management
WBS - Work breakdown Structure
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Chapter I
Principles of Project Management
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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Project Management
1.1 Introduction
The economy of India has been growing over the last few years. Lots of industries have come up in various sectors
creating a market boom. Lots of money is getting invested in various projects. In this perspective, it becomes very
important for the managers to manage projects effectively in order to maximize returns. Gradually project management
has moved into computing industry with the development of hardware to software.
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• project execution
• project monitoring and controlling project resources
Life cycle of a project manager overlaps with the development life cycle within a project. Duties of a project manager
start before the development and continue till the delivery of the product.
100 100
Resource Requirement
95 95
90 90 Probability
90
85
80 Design Changes
80
75 75 Funds
70
70
Risk
60
Approximate (%)
80
50
45
40
35
30 30
25 25
20 20 25
15 15 15 15
10 10
5
0
Start 1 2 3 4 Finish
Project Stage
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Project Management
Filling
vacancies
The The
The job
Candidate Selection
Advert
budget The job criteria venue terms
content
Advert Review
options timing interview induction
location CVs
decide
Input received
• Project’s feasibility study
• preliminary project evaluation
• project proposal
• customers interviews
Output produced
• system design specification
• program functional specification
• program design specification
• project plan
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• Inspecting, testing and delivery
during this phase, the project teams work under the guidance of the project manager
the project manager ensures the team implements the project designs accurately
the project has to be tracked or mentioned through its cost, manpower and schedule
managing the customer
marketing the future work
perform quality control work
• Post completion analysis phase
staff performance is to be evaluated
documentation of lessons from the project
project’s feedback analysis
project execution report
analysis of problems encountered during the project
Project Processes
A project process is a series of activities performed to achieve the target. Project process is classified into two main
categories:
• Project’s management process: Project’s management process is defined by an organization. It describes and
organizes the work of the project.
• Product oriented process: This is defined by the life cycle. It specifies and creates products and its related
works.
Process Groups
It consists of the following:
• initiating processes – recognizing the start and establishing commitment
• planning processes - devising and maintaining a workable scheme to accomplish the business need
• executive processes - coordinating with people to carry out plan
• controlling processes - monitoring and measuring progress and taking remedial action
• closing processes - formalizing acceptance and bringing project to a systematic end
Process Interactions
• The individual processes are linked by inputs and outputs.
• Inputs: It refers to the client documents which are converted to action plans need to be acted upon.
• Tools and techniques: It refers to the mechanisms applied on to the inputs to create desired outputs.
• Outputs: It refers to the documents that are results out of the process.
Every process is initiated by management group decisions which result in the next phases of the project. These are
the sub-categories which as follows:
• Planning processes
planning has the major importance
planning is much more significant compared to plans. Plans are nothing, what matters is the planning
planning processes are highly interdependent
if the cost is unacceptable, scope and time may be redefined
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Project Management
• Executive Processes
interaction depends on nature of the work
they are dynamic and dependent on team innovation
• Controlling Processes
measuring project performance
identifying variances from the plan
updating project plans
taking corrective actions
• Closing processes
review of the project
findings
analysis of the project performance with respect to various processes
Customization
• Large projects may need details – A detailed project management plan might be necessary to indicate every
detail in the initial stages.
• Smaller projects may need relatively less details – A detailed plan may not be required in the initial stages.
• Process details might change for other reasons – Resource identifications might be required for the scope
definition.
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• Common problems encountered within projects:
no prioritization of project activities from an organization position
mishandling of one or more stages of the project
less qualified /undedicated manpower
absence of smooth flow of communication between the involved parties
A good project management methodology provides a frame work for the processes. It provides guidelines for the
execution of project that increases the chance success of the project to a great extent, and therefore, provides value
to the projects. Some of the steps in a good project management are:
define the project
• reduce it to a set of manageable tasks
• obtain appropriate and necessary resources
• build a team to perform the project work
• plan the work and allocate tasks to the resources to monitor and control the work
• report progress to senior management and/or the project sponsor
• close down the project when completed
• review it to ensure the lessons are learnt and widely understood
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Project Management
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Summary
• Projects need to be managed differently from the day-to-day routine operations because of the temporary nature
of project.
• The fundamentals of project managements are clearly understood.
• Definitions of project, project management, management project life cycle, resources, scope, project cost and
process are stated.
• The primary reasons for using a project management methodology are to increase the likelihood of the project’s
success rate.
• Project management is a process by which projects are defined and implemented efficiently and effectively so
that the desired outcome of the projects is realized speedily, within the constrained resources.
• Difference between project and operations is the degree of uncertainty and risk involved in them.
• Each project has a unique purpose to achieve or a desired output to produce.
• Management of any project is directed towards achieving an optimum balance between three interlinked
objectives – quality, cost and time.
• There are some basic steps of the project management that has to be followed, and is called project life cycle.
• There are project management functions that are classified according to the project management (such as risk
management, scope management, monitoring and controlling, planning, everyday basic and administration and
organization and team.
• There are various other roles of the project manger that are to be followed.
References
• Meredith, J.R. and Mantel, S. J., 2008. Project Management – A managerial approach, 7th ed., Wiley.
• Gopalakrishnan, P. and Ramamoorthy, V. E., 2007. Textbook of Project Management, 1st ed., Macmillan
Publishers India.
Recommended Reading
• Williams, M., March 13, 2008, The Principles Of Project Management, Site Point Publication.
• Nicholas, J. M. and Steyn, H., February 20, 2008, Project Management for business, engineering and technology,
Butterworth-Heinemann Publication, 3rd ed.
• Portny, S. E., May 3, 2010, Project management for dummies, Kindle Publication, 3rd ed.
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Project Management
Self Assessment
1. Which of these is NOT the role of a project manger?
a. Budgeting and cost control
b. Allocating resources
c. Making a team
d. Manage relation with the customer and company
2. Which of the following does NOT form the phases of project management life cycle?
a. System design specification
b. Marketing
c. Inspecting, testing and delivery
d. Post completion analysis
6. A detailed project management plan might be necessary to indicate every detail in __________.
a. second stage
b. final stage
c. initial stage
d. all stages
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8. ____________ is achieved by systematically thinking about possible risk, their impact and ways of limiting
their likelihood and impact.
a. Features
b. Schedule
c. Risk management
d. Quality
9. _____________ deals with ensuring that the changes to the scope of project are decided and authorized with
due consideration of all the relevant aspects.
a. Resources
b. Processes control
c. Planning
d. Scope management
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Project Management
Chapter II
Project Planning and Processes
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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2.1 Introduction
• It is well known that all the organizations continue to grow year by year. As there is a need to grow, it becomes
necessary for growing organization to resort proper growth plans. The plan needs to be properly prepared.
• It is possible to prepare proper plans only if the manager has sufficient knowledge of various process of the
project envisage for growth. The manager has to work on various life cycle stages and apply necessary planning
tools to come out with a proper growth plan for the organization.
There are some of the key issues at the planning stage of a project that are documented such as:
• Key stages of project
• Project logic diagram
• Key stages responsibility chart
• Estimates for all key stages
• Optimized project Gantt chart
• Updated and reviewed project risk log
• Risk management forms for new high risks
• Projects operating budget
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Project Management
2.3 Characteristics
Also, the scoping has to be explicitly stated on the line of the project.
The Planning and scoping should be such that the project manager is able to assess every stage of the project and
also enabling the assessment of the quality of the deliverable of the project at every stage.
There are various steps of project scoping. The various characteristics of project scoping include the following:
• identify the various parametric forces relevant to the project and its stages
• enable the team members to work on tools to keep track of the stages and thereby proceed in the planned
manner
• avoiding areas of problems which may affect the progress of the project
• eliminating the factors responsible for including the problem
• analyzing the financial implications and cost factor at various stages of the project
• understanding and developing various designs required at various stage of the project
• the scope may include identification of key areas from clients through meetings, discussions and interview
• providing a base and track to enable alignment of project with the organization and its business objectives
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• finding out the dimensions applicable and not applicable to the project
• list out all limitation, boundary values and constraints in the project
• understand the assumptions made in defining the scope
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Project Management
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Project Structure
Development plan, project tracking and oversight
Key stakeholders
• identify management level personnel who are critical to the success of the project
• the stakeholders are responsible for the documents
Stage Teams
• identify appropriate personnel required for the stage, define the team structure and appoint team leaders
• document the time commitment and responsibilities to be performed by the team members
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Project Management
Key resources
• individuals assigned to a key resource role may work towards gathering “Business key resources” and “Technical
key resources”
• they are projected coordinators and team invitees
• This is the technique to analyze the content of work and cost by breaking it down into its components parts.
• Project key stages form the highest level of the WBS, which is then used to show the details at the lower levels
of the project.
• Each key stage comprises many tasks identified at the start of planning and later this list will have to be
validated.
• WBS is produced by identifying the key elements, breaking each element down into component part and
continuing to breakdown unit manageable work packages have been identified.
• These can then be allocated to the appropriate person.
• The WBS does not show dependencies other than a grouping under the key stages.
• It is not time based; there is no timescale for this.
Task Duration
Identifying lead and lag times helps in working out task duration.
• Lead Time:
An amount of time with which a successor task can overlap with its predecessor task.
It is the time before the completion of the predecessor at which the successor can start.
• Lag Time:
An amount of time, between a predecessor and a successor task.
It is the time after the completion of the predecessor when the start of the successor is delayed.
Estimating tips
• base estimates made on some analytical, quantitative process than with a number pulled out of thin air
• Explain your estimating method to the stakeholders and compare it with what they want. They may not really
have an estimate; it may be a guess or goal
• if you can’t provide an accurate estimate because there are no written requirements, offer to provide a more
precise estimate after some initial exploration of the project scope and general user requirements
• present a range of estimate; best case, most likely cases and worst cases with the approximate probability of
meeting each one
• negotiate for a large team, fewer features, and phased delivery or reduced quality are the ways to achieve an
aggressively accelerated schedule
• redo your estimate with some different assumptions of the project size, resources or other factors to see how
you can come to the manager’s shorter goal
• make a counter offer in case your estimate does not meet your stakeholder expectation, showing them what
fraction of the system’s functionality could realistically be delivered in the expected time period
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2.7 Estimation Approaches and estimation tools
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Project Management
2.8.1 Components
Important components in risk management are:
Risk Assessment
• Identify the possible risks and assess the consequences by means of checklists of possible risks, surveys meetings
and brainstorming and review of plans, processes and products.
• The project manager can also use the process database to get information about risks and risk management on
similar projects.
Risk Control
• Identify the actions needed to minimize the risk consequences. This is also known as risk mitigation.
• Develop a risk management plan.
• Focus on the highest prioritized risks. Prioritization requires analyzing the possible effects of the risk events in
case it actually occurs.
• This approach requires a quantitative assessment of the risk probability and the risk consequences.
Risk Ranking
• Rank the risk based on the probability and effects on the project. Example, a high probability, high impact item
will have higher rank than a risk item with a medium probability and high impact.
• Risk Mitigation-
• Select the top few risk items for mitigation and tracking.
• Refer to a list of commonly used risk mitigation steps for various risks from the previous risk logs maintained
by the project manager and select suitable risk mitigation steps.
• The risk mitigation step must be properly executed by incorporating them into the project schedule.
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Summary
• The life cycle means the important phases that are required by any project from start to end.
• There are altogether 3 stages such as the preparation stage, role and responsibilities stage and implementation
stage.
• There are some important key issues at the planning stage of a project such as key stage of the project, project
logic diagram, key stages responsibility chart, estimates for all key stages and so on.
• In any project there are some characteristics such as resource requirements, funds, probability of completion
and risk and design changes.
• The main purpose of project planning and scope is to identify the areas of the project work and identifying the
forces affecting the project and then to define the boundaries of the project.
• The main project planning processes consists of the identification process, the review process and the analysis
process.
• The tools for planning such as project organization, project structure, project key personnel, project management
team, key stakeholders, stage team, key resources, work breakdown structure and task duration.
• In task duration, there are two more sub categories such as lead time and lag time.
• For planning estimation there are two types such as purpose of estimation and estimating tips.
• In project management estimation, approaches and estimation tools are also available such as estimation
approaches and estimation tools.
• In estimation approaches, there are two types of estimation approaches such as bottom up approach and top
down approach.
• There are various estimation tools that are used in managing a project. These are algorithmic model, expert
judgment, analogy, top down, bottom up and automated estimation models.
• Risk management aims to identify the risks and then take action to minimize their effects on the project.
• Components of risk management are as follows: risk assessment, risk control, risk ranking and risk
mitigation.
References
• Chandra, P., 2006. Projects Planning, Analysis, Selection, Implementation and Review, 6th ed., Tata McGraw
Hill.
• Harold, K., 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 8th ed.,
Wiley.
Recommended Reading
• Cleland, D.I. July 29, 2004, Field Guide to project management, Wiley Publication, 2nd ed.
• Meredith, J.R. and Samuel J. M., December 10, 2008, Project management: A Managerial approach, Wiley
publication, 7th ed.
• Kuehn, U., March 1, 2006, Integrated cost and schedule control project management, Management concept
publication.
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Project Management
Self Assessment
1. Which of the following sentences is NOT false?
a. All project is undertaken to deliver only services
b. Any project is undertaken to deliver either a service or a product
c. Any project is undertaken to deliver only products
d. Any project is undertaken to deliver only service and not products
6. In the control process the progress is _____________ and the _________ are managed.
a. check, exchange
b. stopped, started
c. monitored, changed
d. changed , monitored
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7. The entire process of a project may be considered to be made up on number of sub process placed in different
stage called the __________.
a. planning estimations
b. project planning
c. work breakdown structure
d. task duration
8. ___________ is the amount of time, which a successor task can overlap with its predecessor’s task.
a. Lag tile
b. Lead time
c. Task duration
d. Top down approach
9. The project manager can also use the process ___________ to get information about risks and risk management
on similar project.
a. monitoring
b. controlling
c. changes
d. database
10. __________ requires analyzing the possible effects of the risk event in case it actually occurs.
a. Prioritization
b. Risk
c. Control
d. Risk assessment
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Project Management
Chapter III
Project Management Essentials
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
• understand post closure activities along with the way of reporting and documentation
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3.1 Introduction
Projects are of great importance to all types of organizations. They are the means by which organizations are able to
make major improvement in their performance. Projects are also the means by which new products are conceived,
developed and brought to market.
Any organizations working on a project have to adhere to some factors that are related to projects.
Characteristics Description
It is possible to improve the pace of the project by reducing the time frame of the process.
Time
The mindset is normally to work a comfort mode by stretching the time limits.
It refers to quickness of response of an individual. The vibrancy and liveliness of an
Responsiveness individual or an organization are proportional to its capability of evolving processes and
structure for superior responsiveness time constant.
Information is a power. It is the master key to today’s business. Information sharing is
Information Sharing
the characteristic of today’s project mindset.
Project mindset lays emphasis on flexible processes. The major difference in a process and
Processes a system is in its capabilities of providing flexibility to different situational encounters.
Flexible processes possess greater capabilities of adaptability.
Structured planning based on project management life cycle enables one to easily and
Structure Planning conveniently work according to the plan. It also involves efficient use of project resources
and prioritization of the activities based on resources planning.
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Project Management
Executing Processes
• Interaction depends on the nature of the work
• They are dynamic and dependent on team innovations
Controlling Processes
• Measuring project performance
• Identifying variances from the plan
• Updating project plans
• Taking corrective action
Closing Processes
• Review of the project
• Findings
• Analysis variances fro plan is a part of closing processes
3.4 Customization
• Large project may need details: A detailed project management plan might be necessary to indicate every detail
in the initial stages.
• Smaller project may need relatively less details: A detailed play may not be required in the initial stages.
• Process details might change for other reasons: Resources identification might be required for scope
definition.
Preliminary Work
• The team members understand the project plans, project stage schedule, progress control, tracking schedule,
summary of the stage cost and related worksheets.
• All the members have to understand the tolerances in any change and maintain a change control log.
• They must realize the need and importance of quality for which they have to follow strictly a quality review
schedule and frequently discuss on the quality agendas.
• They must understand the stage statue reports, stage and reports, stage end approval reports.
Project Progress
• The member must keep a track of the project progress and communicate the same to other related member of
the project.
• They must monitor and control project progress, through the use of regular check points, quality charts, and
statistical tables and control the quality factors which are likely to deviate from expected values as any deviation
may result in changes to the stage schedule.
• The project manger ensures that theses changes are made smooth and organizes review meeting with the project
management group.
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Stage Control
• The manger must establish a project check point cycle.
• For this suitable stage version control procedure mat be followed.
• The details are to be document stage wise.
• Project files have to be frequently updated with suitable version control number and revision status should be
Resources
• Plan the resources required for various stage of the project.
• Brief both the project team and the key resources about the objectives of every stage, planned activities, products,
organization, metrics and project controls.
Quality control
This is very important in any project.
Quality control is possible if the project members follow the quality charts and norms very strictly.
• Schedule Quality Review
It is recommended that the quality schedule at the beginning of the stage and also ending of every stage.
• Agenda for Quality Review
• Create and distribute a quality review agenda specifying the objective, products, logistics, role, responsibilities
and time frame.
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Conduct team status review- Conduct a status meeting with the project team. Items for discussion are
achievement this period planned activities that are incomplete or overdue, activities for the next period,
new issues identified this period, issue closed this period , summary of results of quality review, summary
of schedule and cost status, suggested revisions to the plan.
Create Status Report- The status report provides a record of current achievement and immediate expectation
of the project. The status has to be effectively communicated to all interested parties.
Create Flash Report- Summarizes the accomplishment for the month, schedule status, upcoming tasks for
the moth and any major issues. Distribute to the project team and project management team.
Project Status Report- As discussed earlier, the status report provides a record of current achievement and
immediate expectations of the project.
• A weekly status report includes:
accomplishments during the period
items not completed during the period
proposed activities for next period
any predicate slippage to the stage schedule, along with cause and corrective action
any predicted cost overrun along with cause and corrective action
3.6.1 Approvals
• Project stage reviews and the decisions taken and actions planned need to be approved by the top
management.
• The goals of such review are to improve quality by finding defects and to improve productivity by finding
defects in a cost effective manner.
• The group review process includes several stages like planning, preparation and overview a group review
meeting and rework recommendation and follow-up.
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3.6.4 Tools for changing a Process
There are various tools which can be used to bring about a change in a process. All such tools can be mainly classified
into the following two types:
• Changes Management System (CMS) – it is methodology which requires collection of all formal documented
procedure, defining how projects performance will be monitored and evaluated, how project plans could be
updated, how various measures can be implemented to control the change process. There procedures may be
unique to an organization based on their project needs. It also includes procedures to handle the changes that
may be approved without prior review, so that the evolution of the baseline can be documented.
• Configuration management(CM)- Identify the configuration items and define the naming and numbering scheme,
structure the changes, define a backup procedure, and follow the member for tracking the status of configuration
items. Identify and define the responsibility and authority of the Configuration management system.
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Summary
• Projects are undertaken at all levels of organization. They their duration ranges from week to more than five
years.
• Characteristics of project management are as follows time, responsiveness, information sharing, process and
structured planning.
• There are also processes groups that are available here such as initiating processes, planning processes, executing
processes, controlling processes and closing processes.
• In customization of the project there are three needs such as large project needs, smaller project needs and
changed processes needs.
• The entire project is to be monitored and controlled by the team members.
• There are various steps in monitoring and controlling projects such as preliminary work, project progress, stage
control, resources, quality control, schedule quality review, agenda quality review, conduct quality review, follow
up and review quality control procedures.
• In project process control there are two types such as monitor performance and update schedule.
• In project processes control there are following steps to be followed approvals, change control, changing project
management process, tools for changing a process, project closure, completion of the activities and benefits, post
implementation review, tools for post implementation review and final project reporting and documentation.
References
• Lock, D., 2007. Project Management Handbook, 9th ed., Ashgate.
• Choudhry, S., 1989. Project Management, 1st ed., Tata McGraw Hill.
Recommended Reading
• Haugan, G. T., October 1, 2001, Project Planning and Scheduling, Management Concept.
• Hobbs, P., February 2, 2009, Project Management, D K adult publication.
• Callahan, K. R. and Brooks, L. M., August 5, 2004, Essential of Strategic Project Management, Wiley
Publication.
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Self Assessment
1. Which of the following statement is NOT false?
a. Responsiveness refers to response of an individual
b. Responsiveness refers to quickness of response of an individual
c. Responsiveness refers to late response of a group
d. Responsiveness refers to quickness of response of a group
6. It is possible to work according to the project plan only by careful __________ of the project progress
a. controlling
b. monitoring
c. quality analysis
d. checking
7. During the _______ the members must keep a track of the project progress and communicate the same to other
related members of the project.
a. quality process
b. controlling
c. project progress
d. planning
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8. _________ is possible if the project members follow the quality charts and norms very strictly.
a. Objective
b. Quality control
c. Requirement
d. Project planning
9. The product obtained after every stage must meet the ________ of that stage.
a. requirement
b. objectives
c. specific
d. sensitivity
10. Project stage reviews and the decision taken and actions planned need to be approved by the top
____________.
a. Team leader
b. Project manager
c. Management
d. Director
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Chapter IV
Concepts of Managing Conflict, Quality and Information System
Aim
The aim of this chapter is to:
• explain the concept of managing conflicts, quality and the Information System
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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4.1 Introduction
It is well known that in any management system there is always some conflict. It may be result out of individual or
groups having different opinions. The project gets affected by this conflict.
Many others used the six Sigma concepts to increase the profits by eliminating variability, defects and waste that
undermine customer loyalty.
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A good Project Management Information System is possible to be developed from the team members and not from
the system administrators of the company. Organizations tend to allocate such responsibility by among members
with a well designed and structured data entry and analytical format.
4.4 Perception
The perception of a manger in current trends in project management is to obtain result. There are some tools that
are being used currently are as follows:
Quality Certification
Quality certification from a leading organization may be obtained. Certification will enable the management team
to realize importance of a process and how effectively project could be managed smoothly.
Strategic Inflection Point - A real test for the project leader and the management team is to accurately predict the
exact point of the development process where the team might face a massive problem.
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Planning For Review
In this step the main focus is on collection of data. Data I the main input requirement of any successful project. Once
the data has been gathered prepare a suitable plan for its analysis. Obtain necessary commitment from management
and team members to participate actively and take actions on finding. It is necessary that every project member
gives his or her commitment to participate and deliver the service/products in the project. Review is necessary for
every stage of project.
Do Continuous improvement
Every organization wants to improve continuously. It is not possible to achieve improvement unless sufficient
measures are adapted to measure improvement. The quality managers should highlight trends and de-escalate chronic
problem. Reviews are a check process in the “Plan-Do-Check-Act” cycle of a quality cycle.
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• Key success Factor rides above normal consideration of time and cost- at the levels encompassing client
expectation and management perception, time and cost come onto play as subservient to these major goals.
The ownership is distributed among all irrespective of levels- the term equally should be avoided here since ownership
is not quantifiable.
The right feeling of ownership is important.
This step is most difficult since junior members have to respond and resist to being pushed through sheer
innovation and performance.
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• The Knowledge Factor of course undergoes correction through obsolescence- since changes are now phenomenal-
but so are the opportunities for junior to access information from new knowledge bases seniority is no more
an automated scale for knowledge.
• It is important for leaders to recognize the knowledge potential of younger members.
• It is equally important for younger members not to suppress their knowledge potential from its application.
• Further as age and experience advance further wisdom gains but knowledge is lost until it is updated and
utilized.
• It is the task of every team members to maximize the Knowledge Factor to maximize the Knowledge Factor
in all direction.
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Organization
• However, to sustain credibility, the member should remember that his or her value is not related to the level or
the salary but on the quantum of output, again not on the volume of coding but on the value of the work done
to product.
• Combining these two concepts of human capital and value the concept of return on the time invested has replaced
return on investment when it comes to valuation.
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Summary
• In an organization it is well known that in a particular management system there are some or the other conflicts
that are created with an organization.
• These conflict can be created either by a group of people or by an individual, and these conflicts can affect the
progress of project.
• Concept of managing conflicts, quality and the information system are follows: conflict management,
communication requirement and capabilities, quality management and project management information
system.
• The best way to manage a project and implement a project successfully is by controlling and monitoring the
project activities.
• There are some tools that are being used in perception such as continuous business process improvement, force
field analysis, information risk management, management assurance measure, quality certification and strategic
inflection point.
• There are various steps to be followed in project development process cycle such as planning for review,
conducting the review, take actions on findings, do continuous improvement, critical success factors and results
and benefits of project quality review.
• There are some factors that are considered is macro issues such evolving key success factors upfront, employment
title, partnering decision making, management by exception and knowledge factor.
• The modern mantra of project management consists of five aspects such as define, measure, analyze, improve
and standardize.
• There are nine steps in new horizon of project management such as believing is discontinuity and not continuity
with incremental improvement, owing the problem and sharing the solutions, breaking the status quo mentality,
stepping out of comfortable zone, human capital by passing financial, transform work culture from 5 to 7
dimensions, real number of encounters replacing number of years of experience, Seeking meaning out of change
and detachment from the fruits of results.
References
• Gray, C.F. and Larson, E.W., 2005. Project Management-The Managerial Process, 2nd ed., Tata Mcgraw-Hill
Publishing Co Ltd.
• Nicholas, J.M., 2004. Project Management For Business And Engineering, 2nd ed., Butterworth-Heinemann.
Recommended Reading
• Kerzner, H., March 23, 2009, Project Management: A system Approach to Planning, scheduling and controlling,
Wiley Publication, 10th ed.
• McDowell, J., October 12, 2000, Resolving conflicts, Thomas Nelson.
• Nicki S, Adams and John R. Kirchof, 1982, Conflict management for project managers, project management
institute; 1st ed.
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Self Assessment
1. Which of the following sentences is NOT false?
a. It is not possible to manage the conflicts by discussing and sharing the problems
b. It is possible to manage the conflicts by discussing and sharing the problems
c. It is possible to manage the conflicts only by discussing
d. It is possible to manage the conflicts by sharing the problems
7. ______ is a process through which a project team passes on the details of any system as recommendation for
standardization.
a. Planning
b. Continuous business process improvement
c. Project management
d. Modern mantra
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8. Reviews are a check process in the ______ cycle of a quality cycle.
a. management assurance measure
b. process
c. development
d. quality
9. The team can find benefits for the project manager because it helps in terms of ___________ and
__________.
a. knowledge and control
b. monitoring and control
c. discipline and control
d. measure and analyze
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Chapter V
Project Performance through Project management Office and Human Resource
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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5.1 Introduction
The concept of Project Management Office is gaining ground in Project Management because enterprises need to
optimize resources such as knowledge and people. Due to this economies are achieved and customer satisfaction is
gained, this result in more profits and repeat contracts.
A project review is a process where we capture information from the team experience and see the variances and
deviations from plan. These reviews help in increasing productivity and improve organization success. The purpose
of the reviews can be stated in the following way:
• Finding out feasibility of the project and helping management teams 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 procedure 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.
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In addition to these a few more areas whereby managerial productivity is taken into reckoning are:
• creativity
• lateral thinking
• quality circles
• new product introduction lead time
• managing change
• implementing TQM
• empower of junior level executives
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• Quality, testing, quality –measured at supplier/contractor’s place
• Different projects are spread far and wide
• Monitoring, control and audit have to be done continuously
• Materials are subject to damage, loss, pilferage – warehousing is a must
• Logistics is critical for the project
• We have more levels of employees
• We have more number of employees par unit value in the conventional project than in Information System
Projects
• Absenteeism, in most cases will have cascading effects on performance
It is very important to remember that the first person to know if something has gone wrong is the person who
caused.
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The project manager must make it a habit of expressing appreciation openly for any good work by his/her team
member.
Teams are not built in a day. Owing to circumstances and opportunities, management puts together a group of people,
whom they select and who can take up job or project and complete it.
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Summary
• Project management office is gaining its grounds in Project management because enterprises need to optimize
resources especially in knowledge and people.
• The project manager can be dependent on Project Management Office to provide them with information about
sub-contractors, equipments customers schedule or inspection.
• Tools that are necessary for improvement of performance are review and their purpose and environment and
strategy.
• There are certain qualities that should be consider for a good team leaders such as enthusiasm, high tolerance
for ambiguity, high coalition and team building skills, Client/customer orientation and business orientation.
• Areas where professional responsibilities for the managers are reduced are procurement time for outsourced
software and hardware, overall processing time and order confirmation time.
• Human resources management has some special place in the context of project management.
• The two areas where it is considered are in Operations Projects and Information System projects.
References
• Lewis, J.P., 2004. Project Planning, Scheduling And Control, 3rd ed., Tata Mcgraw-Hill Publishing Co Ltd
• Chandra, P., 2009. Project: Preparation, Appraisal, Budgeting and Implementation, 7th ed., Tata McGraw Hill
Education Private Limited.
Recommended Reading
• Hill, G. M., August 22, 2007, The Complete Project management office handbook, Auerbach Publications; 2nd
ed.
• Letavec, C. J., October 4, 2006, The project Management Office: Establishing, managing and growing the value
of a PMO, J. Ross Publishing.
• Lia Tjahjana, Paul Dwyer PMP and Habib, M. (September 28, 2009), The Project Management Office Advantage,
AMACOM publication.
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Self Assessment
1. In case where there are many projects running, the Project management office will act as a ___________ giving
support to all of them in terms of Human resources, budgets, procurement of material.
a. team
b. coordinating body
c. board of directors
d. group of employees
3. A _________ is a process where we capture information from the team experience and see the variance and
deviations from the plan.
a. review
b. system and office
c. team and leader
d. documentation and controlling
5. The project manager should understand the _________ of the _____ he works for.
a. diversity, complexity
b. business, organization
c. documentation, files
d. customers, clients
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8. Which of the following statements is NOT false?
a. During implementation there will be doubts about the correctness of planning
b. During implementation there will be no doubts about the correctness of planning
c. During implementation there will be doubts about the correctness of decision
d. During implementation there will be doubts about the correctness of project management
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Chapter VI
Project Development and Modern Trends in Project Management Perception
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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6.1 Introduction
Projects are basically conceived as a one time performance of a set of activities which results in their completion.
The project satisfies the need for something which will be useful for long time. Development of a project is the stage
at which original concept of the need takes a concrete shape as to what can be expected at the end of the project.
Forming a core group consisting of members chosen from as many teams as possible
They will be generally senior members in their teams. They will be sharing information about the progress and see
what activities can be hastened or retarded, what facilities cab be loaned, which person from a team can help another
in solving a problem. Coordination and cooperation result in solving problems- sooner.
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6.4 Recent Revolutions in Project Management
The filed of project Management has undergone a sea change in recent years owing to, mainly the following
reasons:
• Information Technology
Every project will have huge information inflows which have sorted classified, distributed, analyzed for
purpose of decision making and actions taken.
Information Technology helps in the process at speeds which humans cannot hope to reach. This facilitates
the availability of information across the organization and even in the field because of intranet and internet
facilities which have become very common.
Transactions are no line making reporting, feed-back and decisions become faster.
• Automation of Physical work
• Automation means elimination of human intervention in performing tasks. Sophisticated machines and special
Purpose machines have reduced human effort in workplaces.
Movement of material is conducted by programmed material handling equipments like the automated
Guidance Vehicle system.
It is possible to identify material because of the bar coding system.
• Workplace Flexibility
With advance in transport and easier movements across countries, the whole world has become one huge
workplace.
With globalization many firms have offices in many countries and projects are accepted worldwide.
This flexibility has enable project managers to outsource material and people, for achieving better profits.
• Elimination of traditional jobs and work structure
Organizations are getting flatter. Teams have become very important. They perform most of the functions
of management – like purchase, recruitment, training, accounts, and transport and so on.
No doubt the corporate office keeps track of all activities.
But the autonomy extended to them has resulted in faster decision making and many times cost effective.
The knowledge and skill factors of various jobs have changed greatly.
This has been practice of well-run and progressive organizations to have a great amount of autonomy to
their employees.
Globalization of market, supplies and workforce
Domination of knowledge Holders
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Summary
• Project development is a process of finding out as to what are inputs required, who will do it, how much it cost
as how long it will take.
• In project development process cycle is a non-repetitive activity which creates a unique product.
• The following are the stages involved in development process obtaining the specification, creating a work
breakdown structure, preparing a comprehensive PERT chart, forming group and terms, forming a core group
consisting of members chosen from as many teams as possible, fixing the responsibility area, preparing budget,
supplier contracts and setting up communication channels, feed back routes and monitoring.
• Modern trends in project management perception states that as competitions and project are undertaken by
global scale, projects are no longer constrained by volumes, funds or even by materials.
• There are programmers that are written for various situations as project flows.
• There are practices that are followed in Modern Trends in project management perceptions are continuous
business process improvement, force filed analysis, information risk management and SEI-CMM and ISO
certification.
• There are some recent revolution in project management such as information technology, automation of physical
work, elimination of traditional jobs and work structures, globalization of market, supplies and workforce, and
domination of knowledge.
References
• Meredith, J. and Mantel, S.J.Jr., 2008. Project Management- A Managerial Approach, 7th ed., John Wiley and
Sons.
• Marglin, S., Dasgupta, P. and Sen, P., 1992. Guidelines for Project Evaluation, 2nd ed., UNIDO.
Recommended Reading
• Wysocki, R. K., December 18, 2006, Effective Project Management, Wiley; 4 ed.
• Williams, M., March 13, 2008, The Principles of Project Management, Site Point Publication
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for Business, Engineering and
Technology, Butterworth-Heinemann Publication, 3rd edition
• Portny, S. E., May 3, 2010, Project Management for Dummies, Kindle Publication, 3rd ed.
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Self Assessment
1. __________ enunciated by Kurt Lewin, states that the two sets of forces are in opposition.
a. Force Filed Theory
b. Force theory
c. Modern trends in project management perception
d. Project development
3. There are many good projects which have been floundered on accounts of _________.
a. project development
b. project overrun
c. project under run
d. project development process cycle
4. The project manager should take the assistance of a _____________ and run checks as frequently as possible.
a. project manager
b. team leader
c. system administrator
d. director
5. Principles _________, _____________ and ___________ are being applied by most companies to derive
leverage by eliminating waste.
a. progress, development and information
b. information technology, automation of physical work and work place flexibility.
c. Kaizen, lean Manufacturing and TQM
d. project overrun, project under run and project development process.
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8. With advance in transport and easier movement across countries, the whole world has become
_____________.
a. huge workplace
b. project management
c. huge organization
d. small workplace
10. The basic characteristic of a project is that it is set of ___________ activities which create a unique product.
a. technology
b. project development
c. organization
d. workplace
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Chapter VII
Organizational Issues in Project Management
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
• analyse the latest development in the process of organizational change relevant to project management
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7.1 Introduction
Project by their nature are not amenable to any streamlined operations. Various activities across all functions are
undertaken by a number of people. The project manager and his team committed to any one project will have to
depend upon the various functionaries in the administrative functions like Human Resources, Finance, Purchase
and legal at various points of time to coordinate their activities.
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The following rules for reengineering are effective:
Make changes with the outcome in mind – not tasks that results in them
Make the users of the results of process effective to the change
Let the people on the spot decide on the solution - decentralize
• E-Engineering
The term E-Engineering refers to the attempts of companies to make use of all kinds of information system,
to increase the efficiency of the functions.
New information systems are installed for conducting all business processes in the organization.
The use of electronic communication within the organization enables frequent interactions between employees
and results in better communication.
The increase in efficiency makes the organization to meet customers’ requirements faster.
It helps in creating and making available high quality of information. The information system using intranet
and internet solutions to carry on their regular activities on line.
• Restructuring
This is attempted with change in authority and task relationships of managers.
The move from the functional form or a standard division structure, to combine or divide areas of control
and authority to facilitate better coordination and/or workflow can be restructuring.
In the process, a few jobs may not be there. A few people may have multi-functional activities.
This is because a change in strategy is considered. Downsizing is a way of restructuring.
• Innovation:
It is the successful use of skills and resources in such a way that their response to customer’s needs to be
effective.
Changes in technology have made computers cheaper, faster and more users friendly.
Every company needs to adopt new methods, find them, to make them relevant in the changing world.
The thrust in every department/function should be to do things better with new methods.
The project manager may have to initiate the change process to increase the effectiveness of their team. Being a key
person in the organization, his actions are always under scrutiny.
People Relationships
• Any leader without followers cannot be successful.
• They have excellent human relationship skills.
• The manager builds up his teams based on the core values of sincerity objectivity and dedication.
• They ensure that his subordinates get opportunities for growth based on performance.
• He makes them a part of the decision making process, thus ensuring cooperation and commitment during
implementation.
• Integrity
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• Highest levels of trust, fairness and honesty are expected while dealing with people both within an outside the
organization.
• This includes the customers, shareholder, dealers, employee, the government and society at large.
• They ensure that functioning is clean.
Quality
• The quality philosophy should not cover only the product quality, but every process that has gone into
making it.
• Economy of words when instructions are given, acknowledging complaisance, arriving on time, remembering the
promises and above all a keen eye for details and patience to make others know what they want are components
of quality.
Customer orientation
It is now recognized that every organization has two sets of customers. Internal customers are people in the
organization –employee’s directors, team members – any person who needs your services, whose needs of demand’s
you satisfy.
• External customers –clients and all members of society we come in contact in connection with our business.
• They need our solutions for their problems.
Performance management
• The professional managers not only ensure that his performance is at peal all times, but motivates their entire
to do it.
• This comes by appreciation and encouragement.
• If there is any shortfall they arrange for training them so that their performance improves.
• Thus the team member known that they are expected to perform, that they get help to do so and their effort is
recognized.
• This is the simple path of performance management.
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• Review/monitor the above
• Review help in resetting goals when they cannot be achieved for various reasons such as shortage of resources,
time and so on.
By monitoring the shortfalls can be made up with the allocation of extra resources, or even diverting the
operation.
• Check actual performance verses standards set-
This is known as the evaluation phase. Comparison on every detail is made.
Differences are recorded. Particular areas are chosen for improvement.
• Identify gaps
Gaps mean the shortfall in performance standards. The immediate supervisor is also involved.
The extent to which they affected the functions of the job itself are identified.
• Jointly decide on corrective actions, if needed
There is a possibility that the performance has exceeded the set standards.
But if performance is not good and the reasons and extent having been identified, the course of action for
effecting corrections are decided. Giving extra responsibilities, training, relocation is considered.
• Reset objectives for next period
The targets are revised either upward or downward depending on the conclusion of the appraisal process.
Empowering employees
• The professional manager should possess the ability to empower his employees down the line.
• They are many mangers who are not ready to delegate their authority to subordinates and end up only delegating
responsibility.
• Empowerment is a process by which employees are encouraged to take decisions pertaining to their area of
work.
• The professional manager practices empowerment and encourages employees to grow and develop in their
positions.
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Summary
• The project manager and his core team have the responsibility for the project and support services will have to
cater to a number of them.
• The project manager has complete project and administrative authority over their team.
• There are two organizational changes that are evolutionary change and revolutionary change
• In evolutionary change are changes that take place as organization evolves and in an effort to ward off some
impending problems that are implemented.
• In revolutionary change occur as a result o f drastic structural changes, a new technology, a new thrust for huge
increase in capacity and new business acquisition.
• There are four important instruments such as reengineering, E-engineering, restructuring and innovation.
• There are few traits for professional managers such as leadership, people relationship, integrity, quality, customer
orientation, innovation and creativity and performance management.
• There are some steps to be performed by the manager such as objective performance standards are set, these
are communicated to the employees, review/monitor the above, check actual performance verses standards set,
identify gaps, jointly decide on corrective action, if needed and reset objectives.
References
• Boar, B.H., 1985. Application Prototyping: A Project Management Perspective, Amacom Books.
• Matto, P.K., 1978. Project Formulation in Developing Countries, South Asian Books.
Recommended Reading
• Hiatt, J. and Creasey, T., September 2003, Change Management, Prosci Research publisher.
• Baca, C., 2005, Project Manager’s Spotlight on Change Management, Jossey Baso.
• Obenq, E., August 1996, All Change: Project Manager’s Secret Handbook, Financial Times Management.
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Self Assessment
1. Organizations will have __________, _____________, _____________ and most importantly culture- which
defines them and make them unique.
a. structure, hierarchies, functions
b. objectives, structure , communication
c. outcome communication, inputs
d. problems, objectives, communication
2. Make changes with the _______ in mind and not the ________ that results in them.
a. objectives and functions
b. outcome, tasks
c. organization and problem solving
d. objectives, outcome
3. A work culture is very conductive for _______ which is the aim of all creativity.
a. outcome
b. objective
c. organizations
d. problem solving
4. To implement changes successfully, it is __________ that employees are involved in the implementation of
changes.
a. objectives
b. outcome
c. risk
d. essential
5. The professional manager should possess the ability to _________ his employees down the line.
a. solve problems
b. risks
c. empower
d. identification
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8. Which of the following statements is NOT true?
a. When multiple projects are handled restructuring is quite often
b. When multiple projects are handled restructuring is done frequently.
c. When multiple project are handle restructuring is rare
d. When single project is handle restructuring is rare
10. Empowerment is the process by which _________ are encouraged to take decisions pertaining to their area
work.
a. team leader
b. project manager
c. director
d. employees
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Chapter VIII
Project Risk Management
Aim
The aim of this chapter is to:
Objectives
The objectives of this chapter are to:
Learning outcome
At the end of this chapter, the students will be able to:
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8.1 Introduction
In any project, it is difficult to assess the quantum of risk involved. Therefore careful planning will results in
minimizing the risk in a project. The formulation of a project is based on the estimate of the past data available with
the project management team. There will b a lots of uncertainties and surprises in a project during its execution. It
is necessary to analyze and estimate the project in all respects in order to enable the manager take proper decision
on the project.
Risk management is insurance for project, and can help reduce your costs and efforts when troubles strikes.
Risk analysis
• The first step in risk analysis is to make each risk item more specific.
• The next step is to set priorities and determine where to focus risk mitigation efforts. Some of the identified
risks and unlikely to occurs, and other might not be serious enough to work about.
• During the analysis, discuss with the team members, each risk to understand how devastating it would be if it
did occur, and how likely it is occur.
• It is usual practice to analyze risk either by sensitivity analysis or by probabilistic analysis.
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• 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 determine, based on which it average
weighted average value is calculated.
Analyze the risks- Use any of the available methods to analyze the risk. Software may be used for the purpose of
analysis.
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8.5 Overview of Risk Management
• There is mutual benefit for corporate and major information systems projects teams and many of the programs
as a result of the information exchange generated by the project management reviews.
• Corporate and major information systems are reviewed from their inception to retirement, i.e. throughout Capital
Planning and investment control phases of identification, selection, control and Evaluate.
• Performance measurements are used in project management and quality processes to determine and communicate
status and accomplishments measured against specific objectives, schedules and milestone.
• There are two things one can do to manage risk. The first is to take action to reduce the like hood of the risk
occurring. Secondly, we can take action to reduce the impact if the risk does occur.
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Summary
• It is observed that if a team plans everything carefully than there will be lees numbers of risks.
• The risk analysis of a project is used for the financial appraisal of the project.
• Risk management is similar to performing preventive health care and buying insurance for your project.
• When risk management techniques are used, you can prevent problems and anticipates other to make the project
run smoothly.
• There are different types of risks in a project such as project risks, market risks, industry risk and social and
political risks.
• There are altogether 4 steps to manage a risk such as risk identification, risk analysis, risk management planning
and risk review.
• Risk identification can be done using a brainstorm session.
• In risk analysis the first thing to do id to make each risk item more specific and the set is to set priorities and
determine where to focus risk mitigation efforts.
References
• Kendrick, P., 2009. Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your
Project, 2nd ed., AMACOM.
• Barkley, B., 2004. Project Risk Management, 1st ed., McGraw-Hill Professional.
Recommended Reading
• Cooper, D. F., Grey, S., Raymond, G. and Walker, P., Dec 20, 2004, Project Risk Management Guideline:
Managing Risk in Large Project and Complex Procurement, Wiley Publication, 1st ed.
• Royer, P. S. Oct 25, 2001, Project Risk Management: A Proactive Approach, management concept
publication.
• A Guide to The Project Management Body of Knowledge, November 2004, Project management institute; 3rd
ed.
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Self Assessment
1. There will be a lot of __________ ____________ in a project during its execution.
a. uncertainties and Surprises
b. risks and problems
c. planning and objectives
d. identification and overviews
2. The first step in risk analysis is to make each risk item more ________.
a. objectives
b. planning
c. specific
d. problems
3. In ___________ a study is done to analyze the change in the variable values because of a change in one or more
of the decision criteria.
a. risk analysis
b. sensitivity analysis
c. planning
d. specific
4. In the __________, the frequency of a particular event occurring is determined, based on which it average
weighted average value is calculated.
a. sensitivity analysis
b. risk management
c. probability analysis
d. planning
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9. In ____________ the first step is to take action to reduce the likelihood of the risk occurring.
a. review risks
b. risk analysis
c. risk planning
d. risk management planning
10. ___________ involves identifying problems, analyzing those risks, planning to manage them, and reviewing
them.
a. Risk analysis
b. Risk planning
c. Risk management
d. Specific
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Case Study I
Project planning and process of Millau Viaduct
The purpose of project planning is to first identify the project work areas and forces affecting the project and then
to define boundaries of the project.
Introduction
On December 17, 2004, the Millau viaduct, constructed over the Tarn Valley in the southern region of France, was
inaugurated by the French President Jacques Chirac (Chirac).
Planning Process
The construction of the viaduct was to be handled by several Eiffage subsidiaries including Eiffage Construction
(in charge of the construction of the piers, the abutments and the toll facility), Eiffel Company (Eiffel) (to construct
the steel deck and pylons), Forclum (to handle all the electrical works, and Appia Research (Appia) (responsible
for the development and application of the coating for the deck).
Construction Process
Millau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The construction
of the bridge was planned in such a manner as to minimize the environmental impact. By using steel in place of
concrete for most of the construction, the project employed fewer machines and trucks. The production manager
had handed the construction process very well.
Questions
1. What is the purpose of planning of project?
Answer
The purpose of project planning is to first identify the project work areas and forces affecting the project
and then to define boundaries of the project.
3. How was the construction stage carried out by the production manager?
Answer
Millau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The
construction of the bridge was planned in a manner such that the environmental impact is minimal. By using
steel in place of concrete for most of the construction, the project employed fewer machines and trucks.
The production manager had handed the construction process very well.
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4. What was the aim of the project? How was the aim of the project achieved after its completion?
Answer
The aim of the project was to achieve environment friendliness.
Eiffage engaged the services of two environment specialists who guided them through the planning as well
as execution stages of the project to ensure the environment friendliness of the project
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Case Study II
FORD PRODUCTION SYSTEM - RISK MANAGEMENT
Introduction
Ford has established several innovative automobile manufacturing techniques from its beginning. In the mid 1990s,
Ford modernized its manufacturing operations in its efforts to induce more flexibility and enhance the efficiency of
its automobile production systems. The restructuring effort was known as Ford Production System (FPS).Ford was
established by Henry Ford on June 16, 1903, with an initial investment of $100,000.
Risk Occurrence
The Project manager was aware that it is difficult to assess the quantum of risk involved. It required careful planning
to minimize the risk in a project. Thus, he formulated the past data with the project management team and tried
to search if there are any risks involved in the project. He found that project risk will occur in terms of quantity
required and the output achieved.
Risk Management
The project manager formulated the following steps to reduce the risk.
• First step is to take action to reduce the like hood of the risk occurring.
• Second, to take action to reduce the impact if the risk does occur.
Questions
1. How was the risk identified by the project manager of Ford?
2. Which type of risk occurred in this case?
3. Was the risk managed appropriately by the manager?
4. If you are in place of manager, how will you identify the risk and how will you control the risk in a project?
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With the implementation of this performance management plan, there was huge improvement in the overall
productivity of the organization.
Questions
1. What is Performance management?
2. How was the performance management planned by Rajendra?
3. If you are in place of Rajendra, how will you plan for performance management?
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Bibliography
• Meri Williams( March 13, 2008), The Principles of Project Management, Site Point Publication
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for business, engineering and
technology, Butterworth-Heinemann Publication, 3rd edition.
• Stanley E. Portny ( May 3, 2010), Project management for dummies, Kindle Publication, erd edition.
• David I. Cleland( July 29, 2004), Field Guide to project management, Wiley Publication, 2nd edition.
• Jack R. Meredith and Samuel J. Mantel( December 10, 2008), Project management: A Managerial approach,
Wiley publication, 7th edition.
• Ursula Kuehn( March 1, 2006), Integrated cost and schedule control project management, Management concept
publication.
• Gregory T. Haugan (October 1, 2001), Project Planning and Scheduling, Management Concept.
• Peter Hobbs(February 2, 2009), Project Management, D K adult publication.
• Kevin R. Callahan and Lynn M. Brooks( August 5, 2004), Essentials of Strategic Project management, Wiley
Publication.
• Harold Kerzner(March 23, 2009), Project Management: A system Approach to Planning, scheduling and
controlling, Wiley Publication, 10th edition.
• Josh McDowell( October 12, 2000), Resolving Conflicts, Thomas nelson.
• Nicki S, Adams and John R. Kirchof(1982), Conflict Management for Project Managers, Project Management
institute; 1st edition
• Gerard M. Hill (August 22, 2007), The Complete Project management office handbook, Auerbach Publications;
2 edition, page 3 to 132.
• Craig J. Letavec (October 4, 2006), The project Management Office: Establishing, managing and growing the
value of a PMO, J. Ross Publishing.
• Lia Tjahjana, Paul Dwyer PMP and Mohsin Habib(September 28, 2009), The Project Management Office
Advantage, AMACOM publication.
• Robert K. Wysocki(December 18, 2006), Effective Project Management, Wiley; 4 edition.
• Meri Williams( March 13, 2008), The Principles of Project Management, Site Point Publication.
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for Business, Engineering and
Technology, Butterworth-Heinemann Publication, 3rd edition.
• Stanley E. Portny ( May 3, 2010), Project management for dummies, Kindle Publication, 3rd edition.
• Jeffrey Hiatt and Timothy Creasey( September 2003), Change Management, Prosci Research publisher.
• Claudia Baca(April 9, 2005), Project Manager’s Spotlight on Change Management, Jossey Baso.
• Eddie Obenq(August 1996), All Change: Project Manager’s Secret Handbook, Financial Times Management.
• Dale F. Cooper, Stephen Grey, Geoffrey Raymond, and Phil Walker (Dec 20, 2004), project Risk management
Guideline: Managing Risk in large Project and Complex Procurement, Wiley Publication, 1st Edition.
• Paul S. Royer (Oct 25, 2001), Project Risk Management: A Proactive Approach, management concept
publication.
• A Guide to the Project Management Body of Knowledge ( November 2004), Project management institute;3rd
edition, page 237-264.
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Chapter II
1. b
2. c
3. c
4. a
5. a
6. c
7. c
8. b
9. d
10. a
Chapter III
1. b
2. c
3. d
4. c
5. a
6. b
7. c
8. b
9. a
10. c
Chapter IV
1. b
2. c
3. a
4. b
5. a
6. c
7. b
8. a
9. c
10. d
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Chapter V
1. b
2. c
3. a
4. d
5. b
6. c
7. b
8. c
9. a
10. b
Chapter VI
1. a
2. b
3. b
4. c
5. c
6. a
7. c
8. a
9. c
10. b
Chapter VII
1. a
2. b
3. d
4. d
5. c
6. c
7. a
8. c
9. b
10. d
Chapter VIII
1. a
2. c
3. b
4. c
5. b
6. a
7. a
8. b
9. d
10. c
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