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m3 O.M
m3 O.M
Rosemarie J. Pascua
Ilocos Sur Polytechnic State College
ILOCOS SUR POLYTECHNIC STATE COLLEGE
Tagudin Campus
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Operations Management
(TQM)
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Module 4: Forecasting
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Learning Outcomes:
In this module, you will gain knowledge about the fundamentals of project
management, what is the importance of management, how different organization plan
their projects as well as the roles of project managers. It also tackles the different
dimension of scheduling and controlling. It also introduce the Program Evaluation and
Review Techniques (PERT) as well as the Critical Path Method (CPM).
Time pertains to when to starts and to end a project. On the other hand, budget
pertains to how much should financial resources be include in the project. It also has
the elements of scope and quality. Scope refers to the list of deliverables or types that
need to be done or agreed upon. Quality, on the other hand stands for standard or
the measurement of something. In project management, quality is not necessarily the
quality of the output, it is also includes the quality of processes and approaches used
in a particular project. These four aspects of the project are called the Balance
Quadrant. It demonstrates the relationship and how some changes in these aspects
affect one another.
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Second Phase
•Initiating •Closing
•Planning
•Executing
•Monitoring and
Control
First Phase Final Phase
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The second phase of the project life cycle is a loop which is interrelated to each
other. Normally, project manager tend to focus their time in execution and controlling
the project since most of the time project manager do the task, structure the project,
and making sure that all are in place. However, initiating, planning, and closing are the
most important phases of the project since, there will o project to be done.
Planning
Monitoring
Executing
and Control
Initiating – it is the phase of a certain project which aims to set the project itself for
success. There are various number of activities connected with this. One of these is
creating project charter which mean is what to be done in meeting the requirements
of the customer.
Planning - the most important phase of the project. This is where you answer, who,
what, where, when, how much, and how long.
Executing – a phase of project life cycle which pertains to the implementation of the
project plan, what should be done, as well as the technical works of the project.
Monitoring and Control – in general, monitoring and control are different activities,
however since these two activities work together, it can be considered as one activity.
It entails the comparison of the planning to the execution of the project, then taking
preventive action if there are activities that are not going into plan.
Closing – once the output that was produced in satisfying the customer normally the
project can be considered as close.
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In summary, here the definition of the phases and what should be done.
4.Developing
Vision and
Mission
Statement
If initiating the project isn’t done properly, there are possibilities that the team
of the project will be having difficulties of identifying what should be done, what will be
the plan or even will be hard for them to comprehend the idea of the project.
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scheduling, there are many aspects that one’s needs to consider such as strategy,
plans, execution, as well as logistics.
It’s Boring
It may viewed by some that project management is boring and can interfere
only in what we call “real work”. However, the reality is that without it, all works are not
worth it or value at all. Despite the fact that one’s done something beautiful, it will be
meaningless if the output will never be in line with customer wants and expectation.
Another one view of project management us taking too much time to do. It may
be true in some ways, if you are looking at the traditional way of project management.
However, the need for balancing between the sciences of project management which
pertains to what you are told you should do from the art of project management as
pertain on what you actually need to do.
The other misconception about project management is that it is too hard to do.
Some of the reason for some to assume that project management is hard because of
too many paper works that need to be done.
Aside from the misconception given there are concepts that are
misinterpretation of Project management.
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There are various reasons why project management is important. These are
the following reason why some if administrators use project management:
1. To have a clear, focus, and lay down objectives – without an efficient project
management, teams may not know what the project is all about. When project
members know when and where to focus and what will be the objective of the project,
it can give the team a progression without and confusion or chaos.
5. Project management can ensure quality control – despite the fact that we
are working with enormous pressure of deadline, expectations, budgets and
compliances as well as control of quality project management is important in order to
identify, manage, as well as control the quality of whenever output that needs to be
done.
According to the Project Management Institute (PMI) who published the Project
Management Body of Knowledge (PMBOK), there are nine (9) areas of knowledge
that project managers should know and familiarized with.
These are:
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2. Project Scope Management – any changes from the project scope can ruin
the project as a whole. This portion entails the authorizing the job, developing the
statement of scope that will ensure that boundaries are defined, dividing the task into
a manageable works as one of the components of deliverables, verification of task that
has been accomplished, and also the control on the changes of scope with proper
procedure in place.
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The primary obligation of a project manager is to ensure that all works for
the project will be executed according to plan, budget, and scope as well. They ensure
that works will be finished on time within the agreed quality and level of performance.
There are misconceptions that project managers do the majority of work; however,
they are the one whose primary responsibility is to manage the whole project. Project
managers must understand the organization’ mission statement, after which the
project manager must see to it that all the plans and execution of the project are within
the mission of the organization. It is important that the interests of the organization are
being met.
1. Leadership Skills
2. Communication Skills
3. Planning Skills
4. Time Management Skills
Leadership Skills – leadership is one of the most important traits that one’s manager
should have order to have good management skill in a project. One should have a
right vision in order for the leader to bring his member to the right direction. It is
important also that a project manager can guide them, inspire, and motivating his
member.
Planning Skills - as a project manager, planning and organizing tasks of the members
and stakeholders is in the proper order, most significantly, to the right person. It is a
golden skills that one know how to identify and foresee the risk that may arise in a
project and how to prepare to mitigate and minimize this occurrences, and on how
formulate strategies.
Time Management Skills – it is not just about scheduling of task. It means that project
manager is making sure that that every task is plotted and identifies the urgency and
prioritization of the same. Project manager understand the difference between what is
important and what is urgent.
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Out of these four skills, the most important and first skill that one’s project manager
has is leadership. But everything must be in coordination.
In spite of the fact that project manager (PM) normally do managerial task, there are
instances that PM’s are doing technical works aside from its managerial task. These
two must also be in balance to avoid any conflicts.
One of the first task in project management is to initiate the project. The purpose
of initiating the plan is to set up the project in order to achieve its success. It is indeed
important for the project management as it may implies chaotic scene if undone or
incorrectly done. At the beginning of the project, you will be forming customer’s
contract which informing them what should be done, how it will be done, and when it
will be done.
At the very beginning, initiating can give you best chance on defining what
success is. In this phase, you are able to identify the success criteria and the key
elements that need to be conveyed for the project to be up-and-coming.
Process of Initiating
The process of project initiating is simple. Project manager should gather the
following information:
After all of these are answered, gather some inputs from the stakeholders and make
sure to have the following:
1. Summarize the Why, what, when, who, and how on the project initiation
document.
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3. After all the consultation and agreement with the stakeholders and project
board, ensure to have a meeting to pronounce the start, share what have transpired
in the consultation and what are the details in the project initiation document. Proceed
planning along with the project management team, key stakeholder and project
management board.
There are a lot of tools and best practices to be use that will help to ease this
phase of the project management.
Project Initiation Document (PID) – it is the document where you are able to get the
summarized agreement of one party to another. You can also see the summary of
what, where, who, why, and how the project will be delivered. It also includes some
criteria such as assumptions, constraints as well as the success criteria. It is important
to understand that PID is not a contract; PID should be concise and short as compared
with contract.
Project Initiation Document has a different section which need to be address during
the first phase of the project. These are the following sections:
Planning the Project – after the initiation stage or the phase of the project, the second
thing to do is to plan for the project. In this phase, you will understand the importance
of planning, the different aspects, tools and technique in order to have a smooth project
management.
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Importance of Planning
Some people do not focus on planning and tend to think that planning is just a waste
of time. There are many reasons why planning is important:
Traditionally, planning is pertaining to what task and how to execute this. If the
planning will be on a task-based approached it will not give us the high point of the
project or the progress of it. It is hard to measure. Task-based planning literally can
just give you the list of things to so or what we can to-do-list of the project. So to speak,
instead of planning the task, it should be deliverables.
When we say task, it is the job you are busy doing, for instance building, designing,
and creating. On the other hand, deliverables are the actual end-products of your
project whether it’s tangible or intangible outputs. It is more likely task is to lay the
foundation; and deliverables are the foundation itself.
There are six steps that you need to consider in making a plan:
The first task you need to do is to evaluate the project and breaking down into
deliverables that is small and sufficient in achieving it and measuring it.
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The next step is to identify the dependencies. It is the process of identifying whether
one deliverables depends on other deliverables. Many of us are doing one deliverables
after another due to the restriction of resources or even the number of people who are
working on a project. For instance, if you are the only one who will be doing a project,
you may end up doing one task after another. Identifying dependencies can give you
a glimpse on any mishaps on your first breakdown. It is easily drawn or connected by
an arrow on your list of deliverables that identifies what deliverables heralds another.
Adding Contingency
Contingency pertains to the extra time that will be added on the estimation in
order to cover up unexpected occurrences or event. In this way you will be having
enough time if you have delays on the scheduled plotted on the planning.
1. Risk Identification
2. Rate the risk if it is likely to happen and also the severity of the risk.
3. Choosing risk that needs to be plan.
4. Making plans in order to deal with this risk.
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It is important to ensure that we assess the risk of the following aspects of the
project:
1. Schedule
2. Budget
3. Project Quality
4. Customer Satisfaction
After all the steps are already done, it I time that you represent the plan. It is
important to reiterate that planning is not scheduling. Scheduling pertains to the timing
that specific deliverables are needed to be done and planning encompasses
everything in a project. Moreover, project plan comprises the following:
There are tools and best practices that you need to consider in this phase of
the project.
A good example of work breakdown is when you want to clean your room.
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Plan Reviews
This is more of a best practice than a tool. It is where you set up a meeting in
order to review the project plan with those people involved with the project per se. it
consists of taking people keep on track about the project and their involvement at the
high point of the project. Without plan reviews, it might be difficult for some
stakeholders and board to catch up with the milestone as well as the progression of
the project. It may lead to confusion and misunderstanding.
This phase of the project deals with the actual work to be done or executing in
creating a particular product or services.
It is important that there are members of the team that have the sense of
ownership when it comes to executing the project. There should be an individual that
is responsible and accountable in making things possible and executing the plans that
you has created.
There are numerous tools and practice that you may consider that also can help
you for the smooth execute of the project.
After you have formulated the plans, all you need to do is to add some
ownership, wherein you have to identify the key person who is responsible and
accountable in executing some areas or deliverables of the project.
Stand-up Meetings
As that term implies, this is a meeting wherein the responsible person will be
standing up and discuss the progress of the deliverables assign to them. This way, all
are on track on the progression of the project and no one is left behind. It is also one
way of identifying the some issues or if there are overlapping of works between people.
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Controlling the Project
In this phase, you are identifying if you are on track, the progress of the project,
as well as the adaptation of any changes that may arise.
The most important question you need to ask is “Are you on track”? It is
important for the project management team to know if all the deliverable are on time,
if it is not on time, what are the possible remedies that you need to do? Are you doing
something to address it?
Measuring Deliverables
In this stage, it can simply say measuring deliverables is just asking the work
has been done. However, it is important that the project team and the customer have
the same definition of work done. For instance, if you are working on a website, team
member might have the definition of done as “all information has been encoded” on
the other hand, the customer think that done is “encoded, it has been tested as well
as t is ready for use”.
After you have already measures the deliverables, it is much equal for you to
measure other factors such as the time, quality and cost.
There are also measurements to different areas where you can see the progress as
well as the resources used in the given project.
2. Time Spend versus Time Planned – after the scopes were completed, are we
on time? Are we late or ahead of the planned time?
3. Budget used to date – it is important to see if the entire budget was used on
the half of the scope or after all the scopes has been done.
If you are not on track, might as well look back on the possible risks you have
identified in your planning. These risks might already materialize that’s why there are
some delays or mishaps on the project. It is important that you have drawn a risk
management plan in order to mitigate or minimize any anticipated risks that may occur.
As stated in PMBOK (Project Management Body of Knowledge), Project Risk
Management is a process of identifying, analyzing and responding to any risks and
how are you going to monitor and control this risks.
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1. Make a list – making a list of potential risks or uncertainly is important in this
process. If you fail to identify these risks, you might end up unprepared.
3. Determining the negative impact of this risk occurrence – it will help you to
understand the severity of the risk and able for you to prioritize how much time effort
should be done in order to resolve.
Creating Reserves
1. Contingency Reserve – it is the time and budget that is allocated in the project
specifically for those identified risk.
2. Management Reserve – it is the allocation of time and resources for those risks
that are not predictable. It is a way of enabling the organization to act upon unknown
risk.
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There are numerous tools that you need to consider in risk management. These
are:
3. Risk Maps or Risk Matrix – these are grids with the details of possibility or
potential risk that may occur. It also listed the frequency as well as the severity of risks
that the organization may face.
Project Scheduling
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PERT is a methodology that is the same with Critical Path Method. Enhances
the scheduling, organizing as well as the coordination of a certain projects. It was
developed by US Navy in the 1950’s in order manage the missile program. It
represents a network diagram with numerous nodes that connect the entire tasks on
a particular project.
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The final stage or phase of the project management is closing it. In this phase,
we are able to identify that a project has been delivered or has been done.
Knowing when the project is done is very important after the second phase of
the project which is the planning, executing, and monitoring and control. Once the
entire deliverables are done, is it safe to say that the project is done? It is important
that you look back on how you first draw the project. The first phase of the project
which is initiating must be reviewed. Try to look back at the Project Initiation Document
(PID) where all the scope, timeline, as well as budget was drawn. These are success
criteria that need to be considered in closing the project.
As a project manager, you can’t just state that the project is done. It is more
likely closed if the customer was satisfied on the output of the project. At the end of
the day, the customer has their final say about the project. Once both parties are
agreed upon the final outcome of the project, it is safe to say that the project was
actually closed. However, there are three scenarios that may arise upon the
completion of the deliverable.
1. Total Success – meaning all are in place and both parties agreed upon the
outcome of the project.
3. Total Disconnect – project management team may think that they already have
delivered the needed by the customer; however, the customer may feel differently or
either they will think that you have broken the contract with them.
Closing the project encompasses four steps such as review agreement, completeness
and celebration.
Review
Reviewing the project is the first step which also presents the product,
processes, as well as the task delivered. This review encompasses in the initiating
phase. It is important that you answered the following question:
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2. Has the project been delivered timely
3. Has the project was delivered within the scope given
4. Has the project comes with the required standard and quality
Agree
The second step is to have agreement on both parties that the project is
officially closed. In this step, documentation is important and administrative task and
reconciliation of the budget and expenses.
Complete
The third step is to have agreement on both parties that the when review was
made.
Celebrate
It is also important for the project management team to celebrate the completion
of the project.