SVCE TIRUPATI MANAGEMENT SCIENCE SUBJECT (15452601) UNIT 4 COURSE SEMESTER DEPARTMENT | PREPARED BY (Faculty Name/s: VERSION V-1 PREPARED / REVISED DATE 31-12-2020 (aeSVCE TIRUPATI aA Teele INE SNO CONTENTS PAGE 1 COURSE OBJECTIVES 1 2 PREREQUISITES 1 3 SYLLABUS: 1 4 [Course ourcomes 1 5 CO - PO/PSO MAPPING 2 6 LESSON PLAN 2 7 ACTIVITY BASED LEARNING 2 8 LECTURE NOTES 3 4a 3 42 5 43 4 6 a Ca 1 45 as | Won | 9 46 ULATION fi 10 az {ATION AND EVALUATION 2 48 et 7 49 1 4.10 25 4.11 | PROJECT CRASHI In 25 9 PRACTICE QUIZ 33 10 | ASSIGNMENTS: 35 11 PART A QUESTIONS & ANSWERS (2 MARKS QUESTIONS) 35 12 | PART B QUESTIONS 36 13 | SUPPORTIVE ONLINE CERTIFICATION COURSES 36 14 ‘| REAL TIME APPLICATIONS 36 15 | CONTENTS BEYOND THE SYLLABUS 38 16 | PRESCRIBED TEXTBOOKS & REFERENCE BOOKS 38 17 | MINI PROJECT SUGGESTION 39SVCE TIRUPATI 1, COURSE OBJECTIVES The objectives of this course are to 1. Explain the concepts and principles of management and design of organization in a practical world through study of organizational leadership concepts. 2. Identify the plant layout and work study principles, quality control techniques, in real life industry and to maintain and control the inventory 3. To illustrate the concepts of HRM in recruitment, selection, training and development, Performance appraisal, grievances, promotion and transfer 4, Develop network diagrams using CPM/PERT techniques for projects of an enterprise and estimate time and cost of project and to analyse the business through SWOT. 5. Apply the latest and contemporary issues in practices of management science by analysing core quality concept: 3. SYLLABUS UNITIV Identifying Critical Path-Pro! Problems). 4. COURSE OUTCOMES 1. Apply the concepts & principles of management in real life industry. 2. Identify Marketing Mix Strategies for an enterprise and maintain Materials departments, & Determine EOQ 3. Illustrate PPC techniques, Quality Control, Work-study principles in reall life industry. Apply the concepts of HRM in Recruitment, Selection, Training & Development 5. Develop PERT/CPM Charts for projects of an enterprise and estimate time & cost of project and develop Mission, Objectives, Goals & strategies for an enterprise in dynamic environment = 1|MS-UNIT-IVSVCE TIRUPATI 5. Co-PO / PSO Mapping Lc cnc cor | 2 32] 3 3] 3] 2 coz 2 2 3 3 2 co3 2 2 2 3 2 2 co4 2 3 2 2 cos | 2 3 2 6. LESSON PLAN LECTURE WEEK TOPICS TO BE COVERED: iis ts ely Strategy 2 1 Corporate St process TR? 3 Envrenmentol Seannin 2 /, TLR? 4 TLR 5 | TRI = + ‘ Different Steps in Implet n 2 ee o 7 Projet Management TLR 8 Network Analysis |» TLR’ 9 Project Cost Analysis TI R2 3 10 Project Cras! ing (Simple Fro imple Problet me TLR? 7. ACTIVITY BASED LEARNING 1. Constructing project diagram using Network Analysis 2. Project Crashing Process with case study 2|MS-UNIT-IVSVCE TIRUPATI 4. LECTURE NOTES 4.1 STRATEGIC MANAGEMENT: VISION, MISSION Strategic management is defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable the organization to achieve ils objectives.” Generally, strategic management is not only related to a single specialization but covers cross functional or overall organization, Strategic management is a comprehensive area that covers almost all the functional areas of the organization. It is an umbrella concept of management that comprises all such functional areas as marketing, finance & account, human resource, and production & operation into a top-level management discipline. Therefore, strategic management has an importance in the organizational success and failure than any specific functional areas. + Strategic management deals with organizational level and top-level issues whereas functional or operational level deals with the specific areas of the business. ‘ ; + Top-level managers stich as Chairman aging Director, and corporate level * Strategic manag that can be the gui bjectives, and strategies ‘er functional areas * Therefore, it is top r me 1 16 way for other functional or operational mar ; Definition: | “The determinatio 2 | ne objectives of an enterprise and the adoption of the cou < 1€ allocatic N) Of resources necessary for carrying out these goa SINCE ~ 8Y-Chandler 4.1.1 VISION < Vision statement provides direction and inspiration for organizational goal setting Vision is where you see yourself af the end of the horizon OR milestone therein. It is a single statement dream OR aspiration. Typically, a vision has the flavors of 'Being Most admired’, ‘Among the top league’, ‘Being known for innovation’, ‘being largest and greatest’ and so on. Typically, ‘most profitable’, ‘Cheapest’ etc. don’t figure in vision statement. Unlike goals, vision is not SMART. It does not have mathematics OR timelines attached to il. Vision is a symbol, and a cause to which we want to bond the stakeholders, (mostly employees and sometime share-holders). As they say, the people work best, when they are working for a cause, then for a goal. Vision provides them that cause. Vision is long-term statement and typically generic & grand. Therefore, a vision statement does not change unless the company is getting into a totally different kind of business. 3|MS-UNIT-IVSVCE TIRUPATI Vision should never carry the ‘how’ part. For example, ' To be the most admired brand in Aviation Industry’ is a fine vision statement, which can be spoiled by extending it to’ To be the most admired brand in the Aviation Industry by providing world-class in-flight services’. The reason for not including ‘how’ that ‘how’ is may keep on changing with time. Challenges related to Vision Statement: Putting-up a vision is not a challenge. The problem is to make employees engaged with it, Many a time, terms like vision, mission and strategy become more a subject of scorn than being looked up-to. This is primarily because leaders may not be able to make a connect between the vision/mission and people's every day work. Too often, employees see a gap between the vision, mission and their goals & priorities. Even if there is a valid/tactical reason for this mis-match, it is not explained Horizon of Vision: —,, Vision should be the horiz s 5-10 years. If it fies in that, it becomes tactical. If it vision Features of a good visi Easy to read and ui Compact and Is meaningful a1 Excite people a Provides a motiva id make them get goose tnt Aer in hard times. \s perceived as achievable and at the sam a stretching us beyond what is ae Vision is a dream/aspiration, fine-tuned fo reality: The Entire process starting from Vision d © the business objectives, is highly iterative. The question is from where should we start. We strongly recommend that vision and mission statement should be made first without being colored by constraints, capabilities and environment. This can said akin to the vision of armed forces, that's ‘Safe and Secure country from external threats’. This vision is a non- negotiable and it drives the organization to find ways and means to achieve their vision, by overcoming constraints on capabilities and resources. Vision should be a stake in the ground, a position, a dream, which should be prudent, but should be non-negotiable barring few rare circumstances. iallenging and compelling, 4.1.2 MISSION Mission of an organization is the purpose for which the organization is. Mission is again single statement, and carries the statement in verb. Mission in one way is the road to achieve the vision 4[MS-UNIT-IVSVCE TIRUPATI For example, for a luxury products company, the vision could be To be among most ‘admired luxury brands in the world’ and mission could be To add style to the lives ‘A good mission statement will be: Clear and Crisp: While there are different views, We strongly recommend that mission should only provide what, and not ‘how and when’. We would prefer the mission of ‘Making People meet their career’ to ‘Making people meet their career through effective career counseling and education’. A mission statement without how & when’ element leaves a creative space with the organization to enable them take- up wider strategic choices. Have to have a very visible linkage to the business goals and strategy: For example, you cannot have a mission (for a home furnishing company) of ‘Bringing Style to People’s lives’ while your strategy asks for mass product and selling. Its better that either you start selling high-end products to high value customers OR change your should follow the to achieve their vi For example, to ach Insurance Compan) their emphasis is on 1s Mins eoasc | Insurance product. make its mission as 'Making money work for the peo} non-traditional unit linked investment products. stage the company can when they also include the 4.2 GOALS AND STRATEGY It is the process by which strategy & policies are put into actions through the development of programs, budgets & procedures. This process might involve changes within the overall culture, structure and/or management system of the entire ‘organization. i) Programs: It is a statement of the activities or steps needed to accomplish a single-use plan. It makes the strategy action oriented. It may involve restructuring the corporation, changing the company's internal culture or beginning a new research effort il) Budgets: A budget is a statement of a corporation's program in terms of dollars. Used in planning & conirol, a budget lists the detailed cost of each program. The budget thus not only serves as a detailed plan of the new strategy in action, but also specifies 5|MS-UNIT-IVSVCE TIRUPATI through proforma financial statements the expected impact on the firm's financial future. il) Procedures: Procedures, sometimes termed Standard Operating Procedures (SOP) are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done. They typically detail the various activities that must be carried out in order to complete. a) Evaluation & Control After the strategy is implemented it is vital to continually measure and evaluate progress so that changes can be made if needed to keep the overall plan on track. This is known as the control phase of the strategic planning process. While it may be necessary to develop systems to allow for monitoring progress, it is well worth the effort. This is also where performance standards should be set so that performance may be measured, and leader needed to ensure success. i) Define parameters il) Define target val Features of Corporat We can define corp Corporate planning is involves the determination of the objectives for the co for each department of the it; formulation of strategies for i \ese objectives (all this being done against the background of SWOT analysis); conversion of strategies into tactical plans (or operational plans); implementation of tactical plans and a review of the progress of tactical plans against the corporate planning objectives. Process of Corporate Planning: Major steps involved in corporate planning are as follows: {i) Environmental Analysis and Diagnosis: The first steps (which is, in fact, the background step}, involved in corporate planning is environmental analysis and diagnosis. (A detailed account of this step is attempted subsequently, in the discussion about corporate planning). {i) Determination of Objectives: All planning starts with a determination of the objectives for the plan; and corporate planning is no exception to this generality. In corporate planning, after environmental analysis and diagnosis, the planners determine objectives for the company as a whole 6|MS-UNIT-IVSVCE TIRUPATI and for each department of it; which become the beginning point of corporate planning All objectives of corporate planning must represent an integrated or coordinated system of objectives. In order to make corporate planning a realistic approach to attaining objectives; objective setting for corporate planning is done in the light of environmental analysis and diagnosis. (ii) Strategy Formulation: Strategy formulation is the core aspect of corporate planning. Strategy is, in fact, the weapon of the planner devised for attaining objectives of corporate planning. It is easier to set objectives: it is difficult to realize them. Strategies facilitate the attainment of objectives. There is no doubt about it that success of strategies is the success of corporate planning; and vice-versa, Strategy formulation is also done in the light of environmental analysis and diagnosis. {iv) Development of Tactical Plans: Strategies are translated into Tactical plans are necessa attainment of corpo company is to develo designing of suitabl Corporate planning ary for implementa ion realizing objectives; then aking tactical plans. Mm perspective; while re to be implemented Mere paper planning tactical plans are } decided by manag are made to the oper: implement the tactical plan {vi) Follow-Up-Action: ee After the tactical plans have been put info practice; a review of progress is done ie., an examination of what results are following from the implementation of the plan and what feedback action is necessary, for the betterment of the corporate planning process. 1, just at the right time, as }ecessary communications d with necessary facilities to 4.4 ENVIRONMENTAL SCANNING Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering. DEFINITION: Monitoring and interpreting sweep of social, political, economic, ecological, and technological events to spot budding trends that could eventually impact industry. 7|MS-UNIT-IVSVCE TIRUPATI PURPOSE Raise consciousness of managers about potential developments that could. Have important impact on industry conditions. Pose new opportunities and threats TYPES OF ENVIRONMENTAL SCANNING Ad-hoc scanning - Short term, infrequent examinations usually initiated by a crisis. Regular scanning - Studies done on a regular schedule (e.g., once a year) Continuous scanning {also called continuous learing) - continuous structured data collection and processing on a broad range of environmental factors Environmental scanning usually refers just to the macro environment, but it can also include industry, competitor analysis, marketing research {consumer analysis), new product development (product innovations) or the company’s internal environment. Figure 4.1 TYPES OF ENVIRONMENTAL SCANNING A scan of the extemal macro-environment in which the firm operates can be expressed in terms of the following factors: Political Economic Social Technological The acronym PEST [or sometimes rearranged as "STEP" is used to describe a framework for the analysis of these macro environmental factors. Political Factors: -Political factors include govemment regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include: 8|MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI tax policy employment laws environmental regulations trade restrictions and tariffs political stability Economic Factors: Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy: economic growth interest rates ‘exchange rates inflation rate Social Factors Social factors include the demographic and cultural aspects of the extemal macroenvironment. These factorsvaffect customer needs and the size of potential markets. Some social factors include! health consciousness population growth rate age distribution emphasis on safety Technological Factors: Technological, factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include: R&D activity Automation . technology incentives rate of technological change 4.5. SWOT ANALYSIS External 8|MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI ‘Strengths may include: ‘Weaknesses may include: + Charcteristies of the Characteristics of the organization that will help «| organtzation that might achieve successful outcome or | hinder successful outcome / reach goals reaching goals + Resources, capabilities that will|* Absences of strengths ‘contribute ta success "Flip sides” of strengths Things to avoid when ‘executing program ‘+ Factors contributing to past ‘allurae _ ____ | What other organizations might de better than yours I= “Achilles Heels” ‘Opportunities may include: ‘Threats may include: | Environmental factors thet |* _Envirenmental factors that Mightinfluencefcontibute to | might prevent successful successful outcome ‘outcome + unfulfilled ropen niches not |* Upcoming changes ta status served by other programs, quo (regulatory, political, {unmet custamer need) social, tc) Is Upcoming changes to status |* Factors: Political, Economic, ‘quo (regulstory, political, Soclo-cyltursl, Technological social, cic.) = Chances made possible ky nique strengths f eliminating "weaknesses (7) Factors: Political, Economic, | Socio-cultural, Technological 4.6. DIFFERENT STEPS IN STRATEGIC FORMULATION: STRATEGY FORMULATION Formulation Formulation of strategy involves analyzing the environment in which the organization operates, then making a series of strategic decisions about how the organization will compete. Formulation ends with a series of goals or objectives and measures for the organization to pursue. Environmental analysis includes the: Remote external environment, including the political, economic, social, technological and regulatory landscape. Industry environment, such as the competitive behavior of rival organizations, the bargaining power of buyers/customers and suppliers, threats from new entrants to the industry, and the ability of buyers to substitute products; 10] MS-UNIT-IV BTECH_MEC-SSVCE TIRUPATI Corporate Level Strategy Corporate level strategy occupies the highest level of strategic decision-making and covers actions dealing with the objective of the firm, acquisition and allocation of resources and coordination of strategies of various SBUs for optimal performance. Top management of the organization makes such decisions. The nature of strategic decisions tends to be value-oriented, conceptual and less concrete than decisions at the business or functional level. Business-Level Strategy. Business-level strategy is - applicable in those organizations, which have different businesses and each business is treated as strategic business unit (SBU). The fundamental concept in $BU is to identify the discrete independent product/market segments served by an organization. Since each product/market segment has a distinct environment, cach such segment. For example, Reliance Industries Limits in textile s, yarns, fibers, and a variety of ature of market in terms of duct groups. Thus, where ) make the best use of its There-fore, it real SBU concept is resources (its stra flit faces. At such a level, strategy is a comprehensive SBUs, allocation of re- sources among funetion elween them for making optimal. contributio level objectives. Such strategies operate within. ° janization. The corporate strategy sets the lon r .ctives 1 i he broad constraints and BUs operations by the resources ence between corporate-level and scope of operations and al the corporate level assigns” business-level strategies. Corporate strategy is not the sum total of business strategies of the corporation, but it deals with different subject matter. While the corporation is concemed with and has impact on business strategy, the former is concemed with the shape and balancing of growth and renewal rather than in market execution Functional-Level Strategy. Functional strategy, as is suggested by the title, relates to a single functional operation and the activities involved therein. Decisions at this level within the organization are often described as tactical. Such decisions are guided and constrained by some overall strategic considerations. Functional strategy deals with relatively restricted plan providing objectives for specific function, allocation of resources among different operations within that functional area and coordination between them for optimal contribution to the achievement of the SBU and corporate-level objectives. Below the functional-level limit or enhance t | MS-UNIT-IVSVCE TIRUPATI strategy, there may be operations level strategies as each function may be divided into several sub functions. For example, marketing strategy, a functional strategy, can be subdivided into promotion, sales, distribution, pricing strategies with each sub function strategy contributing to functional strategy. 4,7. DIFFERENT STEPS IN IMPLEMENTATION AND EVALUATION Definition The activity performed according to a plan in order to achieve an overall goal. For example, strategic implementation within a business context might involve developing and then executing a new marketing plan to help increase sales of the company’s products to consumers. 4.81. TYPES OF STRATEGIES STRATEGY DEFINITION FORWARD INTEGRATION Gaining ownership or increased control over distributors or retailers BACKWARD INTEGRATION Seeking ownership or increased control of a firm's suppliers HORIZONAL INTEGRATION ‘Secking ownership or increased control over competitors MARKET PENETRATION Seeking increased market share for present products or services in present markets through greater marketing efforts MARKET DEVELOPMENT Introducing present products or services into new geographic area PRODUCT DEVELOPMENT Seeking increased sales by improving present products jor services or developing new ones RELATED DIVERSIFICATION Ading new but related products or services UNRELATED DIVERSIFICATION Adding New, Unrelated products or services RETRENCHMENT Regrouping through cost and asset reduction to reverse declining sales and profit DIVESTITURE Selling a division or part of an organization LIQUIDATION Selling all of a company’s asets, in paris, for their tangible worth OFFENSIVE STRATEGY A corporate strategy consisting of attempting to pursue changes within its industry. az] MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI The companies involved in offensive competitive strategies typically invest in technology and research & development in hopes of staying head of their competition. Companies also use this type of strategy when seeking to acquire other companies. Direct Competition A classic example of an offensive business strategy is direct, head-to-head competition. This type of direct competition could take the form of selling a product similar to a competitor at a lower price or highlighting quality differences between one product and another. This type of offensive strategy can lead to destructive price wars that ultimately harm both organizations, however. Aggressive Marketing Direct competition strategies often involve an element of aggressive marketing. For example, one competitor might openly point out flaws in another competitor's product or service as a w ssua tomers from doing business with the competitor. Such advé Defensive strategies ) used by , ategic management. If your small busi ess he ; ir ei ition, you may need to use such strategies! The ‘hold onto your position as the market leader, figh ingo 7 ke away your market share. Because firms tel tm \ec “his will not be an easy task, but fortunately you have tr ie hi C Position Defense ao The position defense is the-simp strategy. It simply involves trying to hold your current position in the market. To do this, you simply continue to invest in your current markets and attempt to build your brand name and customer loyalty. The problem with this strategy is that it can make you a target for new entrants to the market. Mobile Defense The mobile defense involves making constant changes to your business so that it is difficult for competitors to compete with you. This can involve introducing new products, entering new markets or simply making changes to existing products. This constant moving between strategies requires a flexible business that can adjust to change. Flanking Defense When a firm uses the flanking defense, it defends its market share by diversifying into new markets and niche segments. The idea behind the strategy is that if you lose your market share in the existing market you can make up for it in these new 13) MS-UNIT-IVSVCE TIRUPATI markets. The danger of the flanking defense is that it can stretch your resources thin and pull attention away from your main focus. Counter-Offensive Defense The counter-offensive defense is a retaliatory strategy. When a competitor attacks your business, you strike back with your own attack. For instance, if you operate a bakery that only produces gluten-free products and a competitor who produces regular bread also begins producing gluten-free products, you could hit back at it By introducing regular bread products. Contraction Defense The contraction defense is the least desirable defense because it involves retreating from markets. If you don't believe you can successfully defend those markets, however, then it can be the best option. This allows you to redeploy your resources into other areas. For example, imagine that you manufacture two produets: liquid soap and bar soap. If you find that you can no longer compete in the bar soap market, then, treat from that market and focus on liquid soaps Strategy Evalu Cor tel capac hs al phase of strategic management. |) AY 7 Strategic evaluat e Strategic Level ith the consistency of strategy with 1 Operational| L in achieving comets Definition Strategic evaluation and control ol could k be defined as the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective action wherever required Nature of Strategic Evaluation Nature of the strategic evaluation and control process is to test the effectiveness of strategy. During the two proceedings phases of the strategic management process, the strategists formulate the strategy to achieve a set of objectives and then implement the strategy. There has to be a way of finding out whether the strategy being implemented will guide the organization towards its intended objectives. Importance of strategic Evaluation Strategic evaluation helps to keep a check on the validity of a strategic choice. 14|MS-UNIT-IVSVCE TIRUPATI ‘An ongoing process of evalvation would, in fact, provide feedback on the continued relevance of the strategic choice made during the formulation phase. Participants in Strategic Evaluation Shareholders Board of Directors Chief Executives Profit-center heads Financial controllers Company secretaries External and Internal Auditors Audit and executive committees Corporate planning staff or department Middle-level managers Barriers in Evalvation Limits of control Difficulties in recat Resistance to evaldation Strategic Control ff The types of strategic controls ore: Premise contol | Implementation control Strategic ay All of us have been invoved in projects, whether in business and : industry. Examples of typical-projects are for example: Personal projects: a obtain an MBA write a report plan a wedding plant a garden build a house extension Industrial projects: construct a building provide a gas supply to an industrial estate build a motorway design a new car Business projects: develop a new course develop a new course 15|MS-UNIT-IV be our personal projects or ein]SVCE TIRUPATI develop a computer system introduce a new product prepare an annual report set Up anew office Projects can be of any size and duration. They can be simple, like planning a party, or complex like launching a space shuttle. Generally, projects are made up of: a defined beginning, multiple activities which are performed to a plan, a defined end. Therefore, a project may be defined as a means of moving from a problem to a solution via a series of planned activities. Two essential features are present in every project no matter how simple or complicated they are. In the first place, all proje¢ st in advance if they are to be successfully executed mn e project must be controlled has been completed ecedencies, and when jer of precedence of h can be performed in ssful outcome can only be iques. The most widely used and popular methods are Gantt Charts, Critical Path Method (CPM) v tion and Review Technique (PERT). However, it is important to remember that projects are carried out by people, and the human aspects of project management are critical for the project success. achieved by using sc Terminology and Definitions A project is an interrelated set of activities that has a definite starting and ending point and results in the accomplishment of a unique, offen major outcome. "Project management" is, therefore, the planning and control of events that, together, comprise the project. Project management aims to ensure the effective use of resources and delivery of the project objectives on time and within cost constraints. An activity or task is the smallest unit of work effort within the project and consumes both time and resources which are under the control of the project manager. A project is a sequence of activities that has a definite start and finish, 16|MS-UNIT-IVSVCE TIRUPATI an identifiable goal and an integrated system of complex but interdependent relationships. A schedule allocates resources to accomplish the activities within a timeframe. The schedule sets priorities start times and finish times. 4,8 PROJECT MANAGEMENT Project management is: the adept use of techniques and skills (hard and soft) in planning and controlling tasks and resources needed for the project, from both inside and outside of organization, to achieve results. The purpose of project management is to achieve successful project completion with the resources available. A successful project is ‘one which: has been finished on time. is within its cost budget performs to a technical/pe ndard which satisfies the end user. Features of projects ¢ le . Projects are often e0ple who have been assembled for that specific purpose. f ay be coordinated by a project manag ) - Project tea from different backgrounds ‘and different parts of the o1 , project teams may consist of people from different Project tea likely to lie outside the normal organizati The project t '@ project end product to some sponsor withi r ion. The full benefit of any project will In recent years more an activities have been tackled on a project basis. Project teams and a project management approach have become common in most organizations. The basic approaches to project management remain the same regardless of the type of project being considered. You may find it useful to consider projects in relation to. a number of major classifications: @) Engineering and construction. The projects are concerned with producing a clear physical output, such as roads, bridges or buildings. The requirements of a project team are well defined in terms of skills and background, as are the main procedures that have to be undergone. Most of the problems which may confront the project team are likely to have eccured before and therefore their solution may be based upon past experiences. b) Introduction of new systems These projects would include computerization projects and the introduction of new systems and procedures including financial systems. The nature and 17|MS-UNIT-IVSVCE TIRUPATI constitution of a project team may vary with the subject of the project, as different skills may be required and different end- users may be involved. Major projects involving a systems analysis approach may incorporate clearly defined procedures within an organization. ¢) Responding to deadlines and change. ‘An example of responding to a deadline is the preparation of an annual report by a specified date. An increasing number of projects are concerned with designing organizational o environmental changes, involving developing new products and services. Responsibilities of the Project Manager 1.To plan thoroughly all aspects of the project, soliciting the active involvement of alll functional areas involved, in order to obtain and maintain a realistic plan that satisfies their commitment for performance. 2.To control the organization of manpower needed by the project. 3. To control the basic techr the project, ensuring that “technical” versus "cost" trade-offs: determine. the areas where optimization is necessary. 4,To lead the peo project at any given point \ order to keep the many causes of prot 6. To complete’ # < ‘ standard by which pe \ is evaluated Gantt Charts A Gantt Chart is a simp sequence to a project. = A Gantt Chart is a form of horizontal bar chart and horizontal bars are drawn against a time scale for each project activity, the length of which represents the time taken to complete. To construct a Gantt Chart the following steps are necessary: 1) Use the horizontal axis to represent time. 2) Use the vertical axis to represent activities. 3) Represent each activity by a horizontal bar of appropriate length: 4) Take activity procedures into account by starting each activity bar to an appropriate point along the time axis after its preceding activities. Normally the start point for an activity is the earliest time that it could start after its preceding activities had finished. technique that can be Used to attach a time scale and It is possible to enhance the Gantt Chart in several ways. For instance, the number of staff required to do a task can be entered into the bar on the diagram. 38] MS-UNIT-IVSVCE TIRUPATI Gantt charts, also commonly known as milestone plans, are a low cost means of assisting the project manager at the initial stages of scheduling. They ensure that: 1. all activities are planned for, 2. the sequence of activities is accounted for, 3. the activity time estimates are recorded; and 4, the overall project time is recorded. They are therefore a simple, rough, and ready means of planning a project and assessing progress and are sufficient for most simple projects. However, where projects become complex, it becomes difficult to see relationships between activities by using a Gantt Chart. For more complex projects Network Analysis techniques are used. Gantt charts also provide a summary of the project as a whole and can be used as a rough and ready means of assessing progress at the project control phase. At project status agai Gantt charts, the pioneers of scientific a schedule of activities at the earliest time that it could start after its preceding activities had finished. 4.9. NETWORK ANALYSIS: Introduction to PERT and CPM The two most common and widely used project management techniques that can be classified under the title of Network Analysis are Programme Evaluation and review Technique (PERT) and Critical Path Method (CPM). Both were developed in the 1950's to help managers schedule, monitor and conirol large and complex projects. CPM was first used in 1957 to assist in the development and building of chemical plants within the DuPont corporation. Independently developed, PERT was introduced in 1958 following research within the Special Projects Office of the US Navy. It was initially used to plan and control the Polaris missile programme which involved the coordination of thousands of contractors, 19] MS-UNIT-IVSVCE TIRUPATI The Use of PERT in this case was reported to have cut eighteen months off the ‘overall ime to completion The PERT/CPM Procedure There are six stages common to both PERT and CPM: 1. Define the project and specify all activities or tasks 2. Develop the relationships amongst activities. Decide upon precedencies. 3. Draw network to connect all activities. 4, Assign time and/or costs to each activity. 5. Calculate the longest time path through the network: this is the "critical path” 6. Use network to plan, monitor and control the project. Finding the critical path (step 5) is a major in controlling a project. Activities on the critical path represent tasks which, if performed behind schedule, will delay the whole project. Monagers-can derive jlity by identifying the non-critical activities and replanning, dul allocating resources such as yand) in network construction. hemare, their project analysis that PERT employs three time Ss are aifcched to each of these times ected values and potential variations for y times are known and ach activity. Given the @ discussed together. The ‘er to employ variable (PERT) PERT and CPM/4i However, their/¢ y techniques or: estimates for which, in tum, activity times. fixed, so only on similarities betwe: PERT and CPM can help to answer the following questions for projects with thousands of activities and events, both at the beginning of the project and once it is underway: When will the project be completed? What are the critical activities (j.e.: the tasks which, if delayed, will effect time for overall completion)? Which activities are non-critical and can run late without delaying project completion time? What is the probability of the project being completed by a specific date? At any particular time, is the project on schedule? At any particular time, is the money spent equal to, less than or greater than the budgeted amount? Are there enough resources left fo complete the project on time? 20) MS-UNIT-IVSVCE TIRUPATI If the project is to be completed in a shorter time, what is the least cost means to accomplish this and what are the cost consequences? Critical Path Analysis The objective of critical path analysis is to determine times for the following: S = Earliest Start Time. This is the earliest time an activity can be started, allowing for the fact that all preceding activities have been completed. LS = Latest Start Time. This is the latest time an activity can be started without delaying the start of following activities which would put the entire project behind schedule. EF = Earliest Finish Time. The earliest time an activity can be finished LF = Latest Finish Time. The latest time that an activity can finish for the project to remain on schedule. S = Activity Slack Time. which can be tolerate: If ES and LS for an three times as follows: .age in activity start or duration time a EF=ES+t LFELS +t delay in any activity along it would delay the project as a whole. 2. Calculating the total project completion time, T. This is done by adding the activity times of those activities on the critical path. The steps in critical path analysis are as follows: a) Determine ES and EF values for all activities in the project: the Forward Pass through the network. b) Calculate LS and LF values for all activities by conducting a Backward Pass through the network. ¢) Identify the critical path which will be those activities with zero slack (ie.: ES=LS and EF=LF). d} Calculate total project completion time. 2] MS-UNIT-IVSVCE TIRUPATI PERT and Activity Time Estimation: The major distinguishing difference between PERT and CPMis the use of three time estimates for each activity in the PERT technique, with CPM using only one time for each activity using CPM. The three-time estimates specified for each activity in PERT are: 1) the optimistic time; il) the most probable time; and ii the pessimistic time. The optimistic, most likely and pessimistic time estimates are used to calculate an expected activity completion time which, because of the skewed nature of the beta distribution, is marginally greater than the most likely time estimate. In addition, the three-time estimates can bé Used to calculate the variance for each Knowing the details of a project, its network and valves for its activity times (t) and their variances (v) a complete PERT analysis can be carried out. This includes the determination of the ES, EF, LS, LF and S for each activity as well as identifying the critical path, the project completion time(T) and the variance [V) for the entire project, Normally when using PERT, the expected times (t) are calculated first from the three values of activity time estimates, and it is these values of t that are then used exactly as before in CPM. The variance values are calculated for the various activity times and the variance of the total project completion time (ie., the sum of the activity expected times of those activities on the critical path) is the sum of the variances of the activities lying on that critical path. 22] MS-UNIT-IVSVCE TIRUPATI Probability Analysis Once the expected completion time and variance (T and V) have been determined, the probability that a project will be completed by a specific date can be assessed. The assumption is usually made that the distribution of completion dates follows that of a normal distribution curve: Consider the example where the expected completion time for a project (1) is 20 weeks and the project variance (V) is 100. What is the probability that the project wil be finished on or before week 252 Answer: 0.69 Worked Examples on Networks 1. A project has the following activities, precedence relationships, and activity durations: ‘Activity | Immediate) Activity Predecessors | Duration (weeks) A - Ea B = 4 Sy = 3 D a 12 E B 5 - A 7 G ee 3 a} Draw a Ganti.chart for the project. b) Construct a CPM neiwork for the project. c} Identity those activities comprising the critical path. d) What is the project's estimated duration? e) Construct a table showing for each activity, its activity duration, earliest start time, latest start time, earliest finish time, latest finish time, and the activity slack. Answers: ce} C.D d) 15 weeks 3. Aproject designed to refurbish a hospital operating theatre consists of the following activities, with estimated times and precedence relationships shown. Using this information draw a network diagram, determine the expected time and variance for each activity, and estimate the probability of completing the project within sixty days. 23] MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI ‘Activity | Immediate | Optimistic | Most Likely | Optimistic Predecessors | Time Time Time A - s 6 ae B - 10 3 28 Cc A 1 2 15 D B & 9 lo EB B. 25 36 4 F D 6 9 18 3. An activity has these time estimates: optimistic time o = 15 weeks, most likely time m = 20 weeks, and pessimistic time p = 22 weeks. a) calculate the activity’s expected time or duration t. b) calculate the activity’s variance v. c) calculate the activity's standard deviation. 4, Aproject has the following activities, precedence relationships, and time estimates in weeks: ‘Activity | Immediate | Optimistic | Most Likely | Optimistic Predevessors | Time Time Time A - Ey 20 25 B - 8 10 12 Cc A 28 30 40 D B 18 15 15 E B 22 25 27 F E 1S 20 22 G D 20 20. 22 a) Calculate the expected time ordUration and the Variance for each activity. b) Construct the network diagram. ¢) Tabulate the values of ES, EF,LS.LF and slack for each activity ) Identify the critical path, and the project duration. e) What is the probability that the project wil fake longer than 57 weeks to complete? 5. The project detailed below has both normal costs and "crash" costs shown. The crash time is the shortest possible activity time given that extra resources are allocated to that activity. Activity | Immediate Normal | Normal Crash | Crash Time Predecessors | Time | Time Cost | Time | Cost (£) (£) A E 5 2.000 4 6.000 B A § 3.000 o 0.000 c B 2 1000 2 1000 D B 3 4000 2 6.000 E e 9 5.000 0 5000 FE CD 7 4500, 5 6.000 G EF 4 2.000 2 5.000 24] MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI Assuming that the cost per day for shortening each activity is the difference between crash costs and normal costs, divided by the time saved determine by how much each activity should be shortened so as to complete the project within twenty-six days and at the minimum extra cost 4.10. PROJECT COST ANALYSIS PROJECT COSTS AND TIME The costs associated with any project can be classified into two categories: (a)Direct costs and (b)Indirect costs. Direct costs are those, which are directly proportional to the number of activities involved in the project. The more the number of activities, the more is the direct cost. Activity wise costs are identified in terms of manpower and machine requirements a J shorten the durattic ashing Is is done by increaxir . take less’ time than what | they cost of the overall project. ‘Therefor ay en the pr also keepin: ‘of a project by reducing the time the resources to the project, re planned for. Of course, the primary objective of ‘sts at a minimum. Project crashing is when of one or more tasks. which helps make t this also adds to the’ project crashing i 1] Project crashing is. a m thhod for sh critical activities to a tim @ less me 1g project di ath by reducing one or more tivity time. Steps in Project crast Step 1: Analyze the critical pa’ Step 2: Identify all tasks that can be shortened with additional resources. Step 3: Calculate for each task: trade-off, gain, time reduction Step 4: Choose the least costly approach. Step 5: Provide a crashing budget and updated project baselines to the sponsor. Project crashing: The concepts of direct and indirect costs, the relationship between project time and project cost, the concept of cost slope and how the optimum cost and optimum duration are ensured for a given projects while crashing. Project costs: Costs associated with any project can be classified into two categories a) Direct cost b) Indirect cost. 4} Direct cost: These costs are those, which are directly proportional to the number of activities involved in the project Ex: Raw material cost. OneOne 25 | MS-UNIT-IVSVCE TIRUPATI Direct cost NX Crash time Normal time b) Indirect cost: In direct cost are those costs that are determined per day. Some ‘of examples for indirect costs are supervisory personnel salary, supplies, rent, interest an borrowings, ads, depreciation. These costs are directly proportional to the number of days of the duration of the project. If the project duration is reduced the indirect cost also comes down Normal cost (Nc): Its the lowest cost of completing an activity in the minimum time, employing normal means i.e. not using overtime or other special resource. Normal time (NT): It is the minimum time required to achieve the normal cost. Crash cost (CC): It is the least cost of completing an activity by employing all possible means like overtime, additional machinery, proper materials etc Crash time (C1): It is the absolute minimum time associated with the crash cost. Cost Slope: Cost Slope is the amount that has to be spent over and above the normal direct cost for reducing the duration by one unit of time (day, week etc.) Cost slope is defined as the additional cost for reducing one unit of time, ‘assuming a given rate of increase in direct cost with a decrease in one unit of time Crash COS t= Normal COS t Cost slope = CSN COS1™ Normal COS t Normal time - Crash time Cc ~Ne r= Cr 26| MS-UNIT-IV BTECH_MEC-SSVCE TIRUPATI Problems: 1) Given the following data, work out the minimum duration of the project and corresponding cost Normal | Grashing | Normal | Grasting Activity | Job time | time | cost | cost A 72 70 6 400 | 600 5 TS 7 Z Too | 140 c 2a z 0 | 440 D> 34> 8 2] 600} 900) E 25 8 6 240 | 1100 F 76 6 2 200 | 300 @ 56 70 3) 1200 | 7460 Solution: activity | Joo | Normal | Crashing | Normal} Crashing porrsuore= Sc=Ne Priorities (wr)_| ten | (Nc) | (@o) us A |e] 10 6 | 400 | 600 50 i B Sis] 4 2 Too | 140 2 [24] 6 4 [360 | 440 @ D [4] 8 4 | 800] 900 % E [a5] 8 6 | 840) 1100 730 2 F|#o) 6 2 | 200) 300 50 a [55] 10 g 7200 | 1400 100 3 [ EST LFT lo 10 18 18 27, MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI Critical path is 1-2-5-6 and Duration is 28 days Total cost is = Direct cost + Indirect cost = (10+4+6+8+8+6+10) + 0 = 52/- 12 activity crashing by 4 days: est | ur [eo Te 4 [id Critical path is 1-2-5-6 and Duration is 24 days Total cost is = Direct cost + Indirect cost =(52 + (4.x 50) +0) = 252)- 5:6 activity crashing by 2 days: est | Let 6 [6 a yw 4 [i Critical path is 1-2-5-6 and Duration is 22 days 28] MS-UNI eile OSS =aSVCE TIRUPATI 2) The following table gives the information relating to a project. By using the 29) MS-UNI given data calculate the optimum duration of the project. Where indirect cost is estimated s.2,000 per day. Activity Normal Crash Time(days) | CostRs:) | Tima(daysy) | Costs) 1-2 4 1000 3 2000 1-3 2 1500 1 3500 24 2 500 1 900 25 5 1000 3 4000 34 a 1000 1 ‘2000 45 2 800. 1 1000 Solution: Normal Crash Activity Time Cost Time Cost | Cost Slope SNe Priorities (days) | (Rs) | (cays) | (Rs, " 1-2 4 4000 K) 2000 000 1 1-3 2 1500 1 3500 1000 24 2 500 q1 900 400 2-5 5 1000 3 4000 1500 2 34 3 1000 1 2000 500 45 2 800 ci 1000 200 Total direct cost | 5800 EST LFT 4 4 9 9 eile OSS =aSVCE TIRUPATI Critical path is 1-2-5 and Project Duration is 9 days Total cost is = Direct cost + Indirect cost 30) MS-UNI = 5800+(2000x9) 23,800/- 4-2 crashing by 1 day: EST LeT we Critical path js 1-2-5 and Project Duration is 8 days Total cost is = Direst cost + Indirect cost = (6800+(1x1000)}+(2000x8) =22,800/- (a) crashing by 2 days: EST Let 3 | eile OSS =aSVCE TIRUPATI Critical paths are 1-2-4-5 and 1-3-4-5 and duration is 7 days only. Total cost = Direct cost + Indirect cost = (6800+(2x1500))+(2000x7) = 23,800/- Here project crashed by 2 days and total cost incurred by the firm is 23,800/- but duration is reduced by only one day. So it is suggested to crash the network by only one day, It can holp to reduce the cost. So that 2-5 activity crashing by only 1 day. 2:5(b) activity crashing by 1 day oni EST LET 2 3 TTT a 3 2 5 v2 3 i 4 2 1 / 7 = Sy\ 5 3 22 Duration is 7 days Total cost = Direct cost + Indirect cost = (6800+(1x1500))+(2000x7) = 8300 + 14000 = 22,300/- All activities comes under the critical activities, the priority are changed according to the cost slope 4-5 activity having minimum cost slope. So that it is possible to crash out 4-5 activity by one day only and 2-5 by one day simultaneously BL] MS-UNI eile OSS =aSVCE TIRUPATI crashing by 1 day and 2-5 crashing by 1 day only: LET [3] 3 o 6 2 3 2 8 0] 0 ° 4 1 1 2 3 2 3[5 3 Sale Duration is 6 days Total cost = Direct cost + Indirect cost = (8,300+(1X1500)+(1x200)}+(2000x6) = (8300 + 1700) + (12000) | =22,000/- This network diagram not possible to crashing further, So that the project duration is 6 days and optimum cost is Rs.22,000/- Optimum cost = 22,000/- Optimum Duration = 6 days 32] MS-UNI eile OSS =aSVCE TIRUPATI 9. Practice Quiz 1. What refers to the process of planning undertaken by the top management to achieve their organizational goals? (a) Strategy formulation (b) Corporate planning (c) Environmental scanning (d) Corporate planning 2. Which of the following is not a characteristic of a mission statement? (a) Flexible (b) Provides shared visions (c) Focuses on products. (d) Focus on limited. 3. What refers fo the broad guidelines set by the fop management for the purpose of making decisions at different levels in the organizations? (a) Objectives (b) Policies (c) Goals (d) Mission * given project or ob? (a) Strategy | (b) Programme eq (C) Purpose (d) Policy i 5.Which of the foll (d) Brings out uniformity in actie - 6. Which of these factors is not included in environmental scanning? a. Political and legislative issues b. Economic factors c. Technological changes d. None of the above 7. What refers to the process of identifying opportunities to develop or acquire businesses that are related to the company current business? (a) Intensive growth (b) Integrative growth (c) Diversification growth (d) Concentric growth 8. What refers to the process wherein a company legally takes over or acquires the business of any of its leading competitors? (a] Backward integration 33) MS-UNIT-IVSVCE TIRUPATI (b) Forward integration (c) Horizontal integration (d) Concentric integration 9. What reflects the vision of the top management? (a) Goal (b) Policy (c) Mission (d) Strategy 10. What refers to the general of specific programme of action and deployment of resources fo all on goals in a set of given conditions? (a) Strategy (b) Goal (c} Programme (d) Objective a 11. Which of the following is activity oriented? (a) PERT a" (b) CPM / (c) Schedule dj (d) None if 12. Which of the tol (a) PERT if {b) CPM i (c) Schedule (d) None Wen oe 13, Which of the following denotes a set of activi specific period of ti ‘ (a) Schedule (b) Project (c} Activity {d) Critical path d. Organizational structure and design 14, PERT refers to (a) Programme Escalation Review (b) Programme Evaluation Review Technique (c} Project Evaluation Revised Testing (d) Project Evaluation Reasoning Tool 15, What is the possible time to which the duration of the project could be reduced by pumping additional resources? (a) Normal cost (b) Normal time (c) Crash time (d) none 34) MS-UNIT-IVSVCE TIRUPATI 1. Assignments CeO Talore) What is "SWOT" analysis? How do you cary it for a technical educational institute? What is corporate planning? Explain the process of corporate planning? Discuss the process of strategy formulation and implementation? Explain various generic strategy altematives in corporate planning? Explain the significance of project management. Distinguish PERT and CPM. Jnjor} = fos} Jewfos} > fro] wo 11. Part A- Question & Answers Cimon BL CO 1 | Define Corporate Planning. Corporate planning is the act of creating a long-term plan to improve your business. A corporate plan examines a business's} 1 1 internal capabilities and lays out strategies for how to use those capabilities to improve the company and meet goals. 2 | Whatis Vision? A vision statement describes what a company desires to achieve in the! long-run, generally in, time frame of five to ten years, or sometimes even longer. It depicts a vision of what the company will |ok like in the future and sets a defined direction for the planning and execution of comporate-level strategies 3 | What is Mission? Give an Example. Mission of an organization is the purpose for which the organization is. Mission is again a single statement and carries the statement in verb. Mission in one way is the road to achieve | 1 1 the vision. For example, for a luxury products company, the vision could be ‘To be among most admired luxury brands in the world’ and mission could be To add style to the lives’ 4 | What is Strategy? Strategy is an action that managers take to attain one or more of the organization's goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process” 5 | Define Environmental Scanning. Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. & | List out elements of Internal Environment. (1) Value System, (2) Mission and Objectives, (3) Organisation 35|MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI Structure, (4) Corporate Culture and Style of Functioning of Top Management, (5) Quality of Human Resources, (6) Labour Unions, and {7} Physical Resources and Technological Capabilities. 7 _| List out elements of External Environment, Economic, Sociocultural, a " Political, Legal, Technical, and environmental considerations. 8 | Write Rules of Network Construction. Rules of Network construction in Operation Research The length of an arrow has no significance. The event numbered 1 is the start event and an event with highest number is the end event. Before an activity can be undertaken, all activities proceeding it must be completed 9 | What is SWOT Analysis? SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for identifying and analysing the} 2 1 internal and extemal factors that can have an impact on the viability of a project, product, place, or person. 10 | What is BCG Matrix? BCG matrix is a’ framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential: If classifies business portfolio ‘into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). 2. Part B- Questions Re 1 Explain the procedure of Crashing of a Network. 1 1 2 What is Environmental Scanning. Explain its Elements 2 1 3. | Define vision, mission and goal and explain corporate planning 2 1 process. 4 [Write about SWOT analysis its importance in case studies. 3 1 5_| Briefly explain the project cost analysis and ifs limitations. 3 1 13. Supportive Online Cerlification Courses 1. Organization Theory/Structure and Design by Dr. Zilur Rahman conducted by IIT Rourke- 4 weeks 2. Principles of Management by Prof. Usha Lenka, conducted by IIT Rourke - 12 weeks. 14. Real Time Applications ees 1 | American Airlinesmerger with US Airways created an overlap in| 1 technology and programs. spreadsheets were insufficient for managing 36] MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI resources and complex projects. To gain visibility info the broader divisional and global priorities, they began using portfolio and resource management for time entry, resource management, and capacity planning. As a result, the airline went from capitalizing 10 percent of their IT labor to 20 percent, which equated to a multi-milion-dollar net positive impact on their balance sheet. Now, they have access to better, more reliable data to make critical decisions on projects and resources 2 | The Royal Bank of Scotland (RBS) needed to establish consistent, reliable | 1 data to inform financial and resource decisions. They chose portfolio decommissioned 35 legacy systems, 50+ user-developed tools, and hundreds of spreadsheets. With data in different formats and hundreds of projects managed by different systems, they wanted to get a grip on their data to see their total portfolio more clearly. They could deliver on their business case and achieve RO! within 12 months. Along the way, they've improved transparency and reduced costs in each business unit 3 | Cengage Leaming was unable to forecast capacity effectively. Managing | 1 projects and resources with spreadsheets was creating complexity for the medical and education publishing company. They wanted to integrate the planning and execution stages of product delivery. They chose portfolio and resource management investment and capacity planning to show executives all the great work they could tackle if they just had the sufficient resources. Now, they can prioritize and push projects down the fimeline and more easily identify which groups need new hires. 4 _| Excellus BlueCross BlueShield had limited visibility into resource capacity 1 as many decisions were based on inaccurate data. They chose portfolio and resource management to improve data quality and drive better project choice. As a result, their timesheet submission rate improved to 99 percent. Now, senior leadership has greater visibility into portfolios to ensure compliance. Data-driven decisions and labor forecast can be based on actuals versus outdated resource structures. With the portfolio properly aligned with resource capacity, the health insurer is more capable of delivering work on time. 5 | Flowserve, a large manufacturer with 19,000 employees, wanted fo drive | 1 new product growth and gain insights to improve their decision making, They were struggling to optimize labor productivity, track projects, and control costs. With portfolio and resource management, Flowserve has become nimble and delivers products to market more quickly. Using an automated gate review process, they are now better able to manage work in the pipeline and speed time to market, which mitigates launch delays. This allows them to control costs and measure success more effectively. 37| MS-UNIT-IV BTECH_MEC-SEM 41SVCE TIRUPATI 15. 1 Contents Beyond the Syllabus Project Management Risk management Risk management activities are applied to project management. Project risk is defined by PMI as, “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives. Project risk management remains a relatively undeveloped discipline, distinct from the risk management used by Operational, Financial and Underwriters’ risk management. This gulf is due to several factors: Risk Aversion, especially public understanding and risk in social activities, confusion in the application of tisk management to projects, and the additional sophistication of probability mechanics above those of accounting, finance and engineering. Work breakdown structure The work breakdown struc! tee structure that shows a subdivision of the activities required toachieve an objective r example a portfolio, program, project, and contr. Ware product., service-, or process- oriented [see an cing a NASA reporting g siructure. Beside WBS for project scope managernent, the ee breakdown structure (chari), cost A WBS can Oh subdividing it into responsibility a packages), whi u te eces ary to chieve the objective. | Ean. and successively terms} of size, duration, and development of the overall planning and control of a contract and is the basis for dividing work into definabl > r n-which the statement of work can be developed and technical, schedule, cost, and labor hour reporting can be established. The work breakdown structure can be displayed in two forms, as a table with subdivision of tasks or as an organisational chart whose lowest nodes are referred to as “work packages". 6. Prescribed Textbooks & Reference Books Textbook 38|Ms- 1. AR Aryasri: Management Science, TMH, 2013 References: 1, Kumar /Rao/Chaliil - Introduction to Management Science" Cengage, Delhi, 2012. 2. Stoner, Freeman, Gilbert, Management, Pearson Education, New Delhi, 2012. UNIT-IVSVCE TIRUPATI 17. Mini Project Suggestion Project Management in Utilities Industry Much like construction, utility and energy management is an industry that won't go away anytime soon. In fact, the industry is seeing growth with thousands of jobs forecasted to open in the next decade. The reason for this is social, environmental, and political pressure. Although efficient electricity and water energy management practices are well-established, pushes for environmentally friendly fuel and energy sources are creating new opportunities in the industry as well. Each of these industries are a space for greater innovation and efficiency as technology advances. The oil and gas industry in particular is open to innovation and new ways to conserve or create fuel for the mainstream all over the world. At present, the oil industry ties heavily into politics with oll-ich countries and there has been a growing push in home countries to find ways to generate the supply at home. This creates an space for innovation in oil and gas. Information Services & Publishing d rojects Digital project managers ¢ publishing is a gi ‘organizations ar production of accustomed 19) conten reactions. In the age of project manager overs shine. Businesses, corporations, and d spends to include the ig. Audiences are now Jal or thought-provoking Designing and manufacturing ° fter brackets The project is to design and manufacture brackets for shifter conversion kits. From existing models supplied by Gevenalle, produced redesigned CAD models. From there, our design team created a whole family of parts, some for specific brake lever shapes and some for multiple types. As things moved into the prototyping phase, team created prototypes at double- the-size. Creating these 2X units helped them get a feel for how surfaces were matching up and allowed them to closely examine the fits. Titanium Investment Casting Company Working with their part engineers, design and build inspection and targeting fixtures for aerospace components Design creates solid models of precision gaging and manufacturing fixtures for customer review. Upon approval of the design we coordinate the construction and calibration of the tooling with our fabrication partners and provide one-stop shopping for their tooling needs, 39] MS-UNIT-IV