Project Management

(Code: ILO8021) (Institute Level Optional Course)

Semester VIII-Common To All Branches
(Mumbai University)

Kundan K. Gautam
MBA (HR), B.E. (Electronics).

n
ME128A Price? 190/·

TechKna11ledgi
~r PubI i c a t i o n s 11111111111
(Book Code :ME128A)

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y Project Management(MU}
Table of Contents

INDEX
MCKlute•l

Chapter 1 : Project ManagementFoundation 1-1 to 1·29

: Definitiono1 a project. Project Vs Operations.Necessity of project management. Triple constraints. Project life cydes (type.al
I and atypical)Project pt,ases and stage gate process. Role of project manager. Negotiation9a.nd resolving conflicts. Project menagement
in various organizationstructures.PM knowledgeareas as per ProjectManagementInstitute (PMI).
1.1 Introduction................................... ..........................................................................................................................- ...........- ...- ... 1. 1
1.2 Project ........................................................................................
...............................................................
......·-·-······..-·-···· 1 • 1
1.2.1 Projec1 Management.................................
............................. .-.-· .. ···.....1. ,
...............................................................
• 1.3 Operations ................
....................................................................: ... .........................................................................
·--······ ..··- 1 • 1
1.3.1 The Differencebetween Projects and Operations.................................................................._ ......................_ ..._ ... , • 2

1.4 Objectives/Necess
ity of Project Management................................................................................................_ ............................. 1 • 3
1.5 Importanceof Project Management............. .. .... ..................................................................·-·· ···..·••••......................._._ ...........1 . 3
1.6 ProjectScope··· ············· .. ···· .....................................................................................................................
...................- ................ 1 • 4
1.7 Project Environment............................................................................................................................... . •-····-····· ······-·······-- ' • "
1.a Triple Constraint ...........................................................................................................................................·-···-· ···-····-·--··--· .. 1 - 5
1.8.1 Importanceof Triple Constralnl.......................................................................
..................._ ...........- ....................1 - 5
1.9 Project ManagementUfa Cycle ...............................
...................................
......................
............·--· -·····-· ····-·· ..-·-·······-· ·' - 7
1.9.1 Typical Project ManagementPhases.......................................
...............................
..- .............·-- ·······..-··· ·····"· 1 • 7
1.9.2 Atypical(Adaptive)Project Life Cycle................................
......................................
·-······- ···-..- ········- ..········ ... 1 • 9
1.9.2.1 The Core Values of Atypical ProjectLife Cycle .....................:.......................•..•.....·-········ ·-·-- ···..···-·-·······1 - 10
1.10 Stage Gate Process .............................................................................................................................
---···-·---···.. ... 1 -10
1.10.1 Gates.....................................................
.................................................................................
- · ---··-· ........1 - 10
1.10.2 Stages..........................
·.....................
...............................................................- ...····-·······....·---·-·-•-· ..···-· 1 -11
. .
1.11 Role and Responsibilitiesof the ProjectManager...................................
........................
................·-·-····---··--··-· ....1 - 13
1.12 Negotiation.....................................
...................................
..............................
- ..........................- .......·--···--·· ..····•...- .....1 - 13
1.12.1 . NegotiationFalls Within Two Categories...............................................................- - ·· ..- ·...- ..-- .. --···· .. ···' -14
1.12.2 Processof Negotiation...............................................................
..........................- .......-·-······· ·-········- ........._ 1 -14
1.13 Conflicts ...............................
................................
....................................................................................
· ·········-·········..- ...1 • 15
1.13.1 Causes of Conflict..........................................................
.........................................
......................
.............................1 - 15
1.13.2 Ways to ResolveConflicts .....................................................................
- ..........................
.......................·-·-..·····-· 1 -1 6
1.14 Organization Structure.........................................................................................................
..................................
....- ............... 1 • 17
1.14.1 Roles of OrganizationStructure...................................................
.........................................................
.....................1 • 17
1.14.2 Importanceof OrganizationalStructure.........................................................
........................ ........- .........................1 -18
1.14.3 Some of the Most Common Organization Structuresare ..........................................................................................
1 - 18
1.15 Project ManagementInstitute(PMl).............................................
........................................
..........................
..............................1 • 22
1.16 PM KnowledgeAreas...............................................................................................................
....................................................1 • 23 •
1.17 CertifiedProject ManagementProfessional (PMP)................................
......................................................................................
1 • 23
1.17.1 .................1 - 24
The Demand for Project ManagementProfessionals...............................................................................
1.1o/.2 Careers in ProjectManagement............................................................ ............,........: 1 - 24
..............................................
1.18 Project Management Book of Knowledge (PMBOK)...............................
...........................................................
.........................
. 1 • 24
1.18.1 PMBOK Structure...........................................
...................................................................
........................................
1-25

...........
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 Project Mana omont MU 2

Chapter 2 : lnltlaUng Pro ect

Sylleb 0 •H
• •
......,..,,....
ow 10 get II project stiuted . Selectlng profec1 ,t,ategically . ProfeCt
eetec11on model•Effedlve
(Nt.merlC /Scori ng Modale -
project team Slagle
numeric models), Project portfolio process , Project sponsor and creating char19r; Project proposal. ' cf
develo t Bnd row1h lormln , stormln , normln and orm
2 .1 lntroctuctlon..............................................................................................................................................................................__ z.
2 ·2 Project lnltiation.................................................................................................................................................................... .. __ ·•·2•
2.2. 1(a) People ······················································································ ··················.............................................................._2.
2.2.1 (b) Process ................................................ ....................................... ..................................... ..... ........... ........................ - 2.
2.2.1(c) PIOduct..................................................................................
·-·················........................... ......................................2.
2 .2.2 The Process of Initiating a Project .................... ........................................ .'............................................................ ·--·· 2 ·4

2.S Strategic Project Selection ......................................... ....................... .................................................. ........ ......... ................. ......... 2 ·9
2.3. 1 Techn ique s used for Strateg ic Project Selection ..................................................................... ..................... ............... 2- 8

2.3.1 (a) Financial Analysis..................................................................................................................... ............................. .... ··· 2 - 8

2.3.1(b) Strategic Objectives AnaJysls........................................................................................................................ ............2- 8
2.3.1(c) Problem Solving Nature ............................................... ............... ...................... '.......................... .... - ............... .......... 2 - 7
2.3.1(d) Opportunity Analysis ..................................................................................................... . .................................... ... 2 - 7
2.3.1 (e) Requirements Analysls....................:···· ............:................................................. _._ .......................... - .......... _ ..... _ 2 - 7
2.3.1(f) Time Frame Analysis...........................................................................................................................- ...···--- 2 - 7
2 .3.1(g) Weighted Scoring Model ........................................................................................
·-· ·--- .......-··-··--· ..······-2 - 7
2.4 Project Selection Models................................................................................................................................- ...·····--- ··2 - 8
2.4.1 Non :Nume ric Project Selection Models.........................................................................................
- ...···········-·········· 2 •8
2.4.2 NumericProject SelectionModels...............................................................................................·--······-- .........2 -9
2.5 Project PortfolioProcess ............................................•...................................................•••..•.......•.•.•.................... :.......•.•......•...•..2 • 1
2.6 Project Sponsor .... ._, .............................. · ................................................... ................... ............ .......................... .............. .. 2 -
2.6. 1 Roles and Responsibilities ..... ,..................................................................................................:.:..............................2 • 1
2.6.2 Functions of Project Sponsor .................................................................. ........ ................... ........·-······· ..··-········-2· 15
2.7 ....................· ..................................·......................................................................--. 2 · 1S
Project Charter ........................................
2.7.1 ..................................................................... 2-15
Roles ol ProjectCharter.............:..........................................................
2.7.2 Benefrtsof ProjectCharter................................................................................
..............................................:..........2-. 16
2. 7.3 ...............................-2-1 8
Contents of Project Charter......................................................................................................
2.7.4 ............... ..................................................................2. 18
Usage of ProjectCharter.•.........................................................
2.8 ......................................................................................-................................. .....- •• 2 • 11
Project Proposal.....................................
2.8.1 ' 2 • 18
Purpose of a ProJect Proposal.............................................................................. ...............................................: ....
2 .8 . f (a) How to Write a Project Proposal ? .............................................................................................................................2 • 1t
2.8. 1(b) Project ProposalTips ....................................... .............. ................................................ ............................. ·.••••...••.•••2. 1
2.9., Effective Project Team ............................................................................................_. ....................................................................2 -19
2.9.1 ConventionalRoles.................
.........................
................................................ ·.......2 .
..................................................
2.9.2 .'.......................................... · .......
Responsibilities and Dulles ................................................................................ 2t
2
2.9.3
2 .9.4
Key Team Membersand their Roles.......................
............................................... ..
. ·········
. · ·
...2 .21
·····•................................
Qualities of Project Team Members.............................................
.: · · ·
•• ••••••• • uo o ooooooo, ootttl l OOO o o o ooo•ooooooottOOoooooooooooo•• oo oouooo• O• 2 -

2.9.5 Buildlng Effective Project Team .................................................... .. · · · ·

I •• •••••• ••••• • •• • • •••• ..·••••••••••••••••••••••••••••••••••••- ·•••·••••••••• •• 2•
2.9.6 How lo Efflclen11y Manage a ProjectTeam? .......................................
·················•.................................................... '
2
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 ProjectManagement (MU) 3 Table of Contents
Stages of ream Development~Growth...................
..............................................
......................
........................
.......- ..............2. 2"
2.10
Team 0ynam1cs..............................................
......................................... ...............2. 26
......................................................................
2.11
. I I. l ImportantDimensionsol Team Dynamics..............................................................................
............................
- .....2 • 26
2

I, Module3 .J
l£hapter 3 : Pro)ect Plennlng and Schedullng 3-1 to 3-41

I Syllabu• : Work Breakdown structure(WBS) end linear reaponslbllltychart, Interface Co-ordinationand concurrentengineering, Protect
cost estimationand budgeting, Top down and bottomsup budgeting, Networl<Jngand Schtdullng technlque1. PERT, CPM, GANTTchatt,
Introduction10 Pro 8C1 Mana ement Information stem PMIS .
~. ProjectPlanning .........................................................
................................
.........................................................
........................... 3 • 1
1
3. .1 Purposeol the Projec1 Plsmlng.......................................................................................
- ...............- ......._ .........- 3- 1
1
3.1.2 Basic Processesol ProjectPlanning..............................................
.............................................................................
3• t
3.1.3 Important Areas ol Project Planning...............................................................................
...................- .........·-···.........3- 2
3.2 Projec1 Scheduling.....................................
............................
...............................................................,........- .............................3. 2
3.2.1 ProjectSchedulingProcess......................................
....................................
..............................................
- ...............3 - 2
3.2.2 SctiedulingTechniques..............................
:..........................................................
.....................-••- .........-·-· ··- ····.. 3 • 3
3.3 Work BreakdownStructure(WBS) .......................
.........................................................................................
- .............- ...........- 3 • 4
3.3.1 Characteristicsof a Work BreakdownStructures................................
................................................
.........................3 - 4
3.32 Advantagesof WBS ..................................................... ....- · .........·--··-·--·····- 3 • 5
...........................................
3.3.3 ·-··· ..................-- ..·······3- S
Work BreakdownStructureRules................................................:......................................
3.3.4 Work BreakdownStructureDiagram........................................................... - ....'.......- ....·····--·····•···3 - 8
.......................
3.3.5 DifferentForms of Work BreakdownStructure.............................
.........................................
·--·-·---- ....3- 7
3.3.6 Processto Create a Work BreakdownStruciure.. ...................... :..............:.........-·-·--- ........3-8
...........................
3.4 Linear Responsibi!ily Chart ..................................................................................
........................................ ·-·-·----- 3· 11
3.4.1 Preparationof LAC..................................·................................................................
......-....... .... · - . --· 3 • 11
3.4.2 AdVantagesol LinearResponsibilityChart......................................................................
......- .................
-- ......3 • 12
3.4.3 Disadvantagesof LinearResponsibilityChart .........................
: .........................- ............................- ....___ 3 • 12
3.5 InterfaceCoordination..................................................
.......................
..................·........................................- ...···---·· ..···3 • 13
3.5.1 Objectives.............................
................................................................
........................................- ...······-···· ........ 3 • 13
3.5.2 Process................................
.........................................·....................
........................................---· ....·--· ...- 3 • 14
3.5.3 Functionsof lnter1aceCoordination....................
.................................................................................
....- ...........3 - 14
3.5.4 ....................................................................3 • 14
Roles and Responsibilitiesof lnter1aceCoordinator$.............................
3.6 ConcurrentEngineering .................................................................
........................ ................._ ..............3 - 14
....................................
3.6.1 Benefitsof Concurrent Engineering...................................................................;.....................................- - ..........3. 16
3.6.2 Advantages ol ConcurrentEngineering.............................................
...............................................
.......·-· ·····.....3 - 16,.
3.6.3 ·-·······- - ····.....s - 16
Disadvantagesof ConcurrentEnglneerfng......................................................................................
3.7 ProjectCost Estimationand Budgetlng...............................................
.........................
................................................................3. 16
3.7.1 Characteristics................................
...................................................
....................................
.......................... 3. 17
3.7.2 Key Componentsof a Cost Estimate................................................... ........ .......3. 17
.....................................................
3.7.3 ProjectCost Estimation Techniques........:·········.................... .............. 3 . 18
......................................................................
3.7.4 Cost EswnatingProcess·...........................................
.'................................
.............................................
_ ....- ... 3 - 19

............
3.7.5 Advantages ol Cost Management.. ..........................................................................................................,. ,.............3. 20
3.8 Bottom•UpEstimating............................................................................................................................
·.............·....., .•. •·.........S. 20

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 Protect Management (MU) 4
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3.9 Top-Down Estimating.. ................................................................................................... ...... ·:. : ,
...................................

3.10
~~;:.:~:=::::-- --- - - - -._- _ _ .----__ _ _ _ _ - - - - -_.-_• •-_. . - - : ::::::··: ::-~:::;
3.1 o.1 S1eps used In Network Planning........................... · ...................................................................
3. 23.

Netwonl Olagram............................
....................m are ..... :::::::::::::::::::::::·· ................ ................................. ............... : ....... : .. :....... 3-23 •
3.11 .1 Main Functions of a Network Dlagra ................................................. 3 • 24

.=.~:=~:= ~- -~- - - - -:: :._ __

_ _-••_.- - - ---- -::-:::.: • -•: .: : : :::-
? .............................................. ... •
3.11.2 How to Create a Network Diagram ................ .... :......................................3 • 28

3.12
3.12. 1 Basic eoncepts ol Network An Y5I • ..............................3. 29

3.13

~p~~~~~tl(\! -•- :- .. ~· - :.:--~{l

3.13 .3
. 3.
Comparison Between the Representationon AOA and AON Netw orl<s.............. ........... . ...... .....
Rules of AOA Network Construction ............. ........................................... _............... ·
............ 3 • 32
_
31 4 3 33
S. l3.S Numbe ring the Events (Fulkerson's Rule)................. ................................................ ..... ........ _

:::
40
3.14
:,:~""":::-.;:~~~:;;:.;;;::;•: ::::•••::: •----------•---------- - ---------- ------ ---. ···::
3.15
3.15.1
3.15.2
3 .15.3

3.15.4

Project ManagementInformation System . (PM IS) ....: ............................. ................... ............. ............. .... .................... ... .............. 3 • 46
3 .16
3.16 .1 Functions ......................................................... ...................................... .................. .............. ................. .................... 3 • 47
3.16.2 Advantages................................................................... 3 • 48
...........................................:····..•·•·····.. ················•·••·••···•··••••

Chapter 4 : Planning ProJecta

Syllabue : Crashing project time, Resource loading and levelling, Goldratt's critical chain, Project Stakeholders and Communication pl_an.
Risk Management in projects : Risk management planning, Risk Identification and risk raglster, Qualitative and quantitative riskl
assessment,Probability and impactmatrix. Risk responsestrategiesfor positiveand negative risks.

4.1 ...............................................·••...•4 •
Introduction................•••....••.. ••••.. ••••••••••••·..•·••..•••••..•...•••••.....••··................................................
4.2 Project Resou rce Allocation .. ........................................................... ...................................................· .................................. ........ 4.
4.2.1 Benefits of Resource Allocation..............:.......................................................
........... • •
4
4.3

4 .4 :-:::-Q:::::: : :•:: : •: :: : ::::: : : : : : : : ::::::: :: i~ . :-· _:: ::·::::\::~:·

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 Project Managemont (MU) 5 Table of Contents
Notwor!( Croshlng Procodor1t ........ ........................................ ·"·· ·· . .... . . ...........................,..._......................... 4 _ 4
4 4. 1
Resource Loedlng In ProjBCtMamtgemtnt.. ...... " ...................................................... ........ - ...................- ................_ .~......., : ,
4.5
RPsource Levollng ................................................................................,...........................................- ......................... ...........,.. , - 8
4.6
4 6.1 Key Elemenl, .............................................................
.......................................................................... _ ..... .... 4 - 8

4 6_2 Need for Resource l eveling.................................................................................................................. . ...- ............., . 8

, .6.3 structure of Aosource lovo Hng .................................................................................................................... '"........... , . 7

4.6., RPSOtlrt:e Levellng Techniques ......................................................................................... ....... _ ............. .............., • 1

Goldroll's CriliClllCt,8In Method............................................................................................................................................... ···• . 7
4.7
4.7. 1 Functions of Crttlcal Chain Method ............................................................ ..................................................................• • 8

4. 7.2 Constraints In Criticel Cha.in......................................................................................................................................... , • 8

4 .7.3 Critlcal Chain Project Management Process....... ........................................

..............................................._. __ ....... ,. 9

4 .7.4 Proj9CI Buffer In Cri11calChain Management ................................................................................................ - ..--··- • • 9

4.7.5 Critical Chain Networlc Diagram ......................................................................................................................- ...._ , _ 10
4.7.6 Benefits of Critical Control Process Management .............................................................................................
........, - to
4.7.7 . _........, - JO
Critical Chain Method of Schedufing ...............................................................................................................
4.8 Stakeholdersin Project Management ............................................................................... ...........................................- ... - ...- .. 4 - 1t
4.8. 1 Proj9CI Stakeholders ........................................................................................................................................ ......·- ' • 11
4.8.2 Cultureot Stakeholders.................................................................................................
-- .......................................
, - 13
4.8.3 Managing Stakeholders................................................................................................................__ ........._ ........... , · f.t
4.9 Project CommunicationPlan .....................................................................................................................- .............- ..........._. , - 14
4.9., Communication Obj9Clives ................... ..................................................- ..................................................- ..........4 - f.5
4.9.2 Creating Your Proj9CI Communication Plan..........................................................._ .......- ..........._ ........................, • 1.5
4.9.3 Writing a Proj9CICommunicalfon Plan .............................................. ...................................- .............. - ......_ ........ 4 · 18
4.10 Risk Management in Proj9CI ................................... ....................................................... ................- .................._. ........................4 - 17
4.10.1 Project Aisle Management ............................... ............:.....................................................- ...................................... 4 - 17
4.10.2 Proj9CI Aisle Management Planning ................... .. ............... ................................... .......................__ ......................4- 19
4.11 Aisle Identification.......................................................................... ....................... ...................................................................... . 4 • 21
4.11.1 Identifying Risks ........................ ........................................................ ......................................................................... 4 - 21
4.11.2 ldentifcation Essentials ........................... .. ....................................................................................._ .........................4 - 22
4.12 Risk Register ..................................................................................................................... .........................................................4 - 23
4.12.1 Purpose of a Risk Register ........................................................................................................................................4 - 23
4.12.2 Risk Register Creation ..................... ................................... ....................................................................................... 4 • 23
4.12.3 Contents of Risk Register............................................................................................... ............................................ 4 • 2"
4. 13 Qualitative Risk Analysis ................................................................................................... ........................................................... 4 - 2"
4.13.1 Reasons to Perform Qualilatlve Risk Analysls .......... ...................................................................................- ............. 4 - 2S
4.13.2 Methods of Qualitative Risk Analysis ............................. .......... .. ................................................................................ 4. 2S
4.14 Quantitative Risk Analysis .............................................................................................................. .. ............................................ , -26
4.14.1 Importance of Quantitative Risk Analyals.........................................................................................- ....................... 4. 28
4. 14.2 Usage of Quantitative Risk Analysis .. ...................... ........................ ..........................................................................4 - 26
4.14.3 Quantitative Risk Assessment Tools and Technlquee...................................................................,...............- .........4. 27
Probablllty and Impact Matrix ............................................................................................................... ........................................ 4 • 27
4.15.1 How to Use the Tool ? ................................................................................................................................._ ........... 4 • 28
4.15.2 Preparation or ProbabiHty-lmpact Rlalc Matrix ................................... .. ......................... ...................... ....................., • 29
Risk Response Strategies for Poeltlve and NegallveRJaJc....................................... ......................................., • 30
.............................
4.16.1 Negative Risk Response Strateglea.. ........ ................................................................................................................. 4 • 30
4.16.2 P06itlve Risk Response S1rategle1 ............................................................................................................................4 - 31

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 Pro 9Ct Mana ement MU 8

Chapter5 : Pro)tctExecuting,Monitoringand Controlllnp __

Syllabua : Planning monitoring and oontrolllngcycle, lntormalloo needs end reporting, engaging with all etakeholderaof the proJ~~
Team management, communicationand project meetings. Earned Vnlue Managementtechniquesfor measuringvalue of work com~;
Using mlleatoneafof measurement; change requests and ecopo creep, Project audit. Project procurementmanagement,contractingI/Id
outaourctna.
5.1 Introduction.............................
............................................... ......................·...........·.............·.................:........a.,
..............................
-.
5·2 ProjectMonltoring...................... ..........." •.f;
.....................................................:................................................................................
5.2. 1 ....................................................-.,,.a.i1
Characteristlcs..................................................................................................
5.2.2 .......................................................................................................................................-1.a
Advantages.......................
5.2.3 ProjectMonitoring Activities.................................... ................................................. • ..................................................5 • 2
5.2.4 StepsIn ProjectMonitoring ................
...................................... ............................5 • 3
.....:..................................................
5.3 Project Monitoringand Controlling Cycle·................................. .... .............................;....................................................................5 -3
5.3.1 Monitoring and Control Processes...............................................................................................................................5 · 4
5.4 InformationNeeds and Analysls......................................
...........................................................................................................,...5-5
5.4,.1 Objectives...........................
..........................................................................................................................................5 • 5
5.4.2 Benefits .............................................................................................................................................;.......................... 5 - 5
5.4.3 Procedures.............................
...........................
...............................................
....................................
........................5 • 5
5.5 Reportingof lnfonnatlonIn ProjectManagement................................................
:..........................................................................
5 •6
5.5.1 Types of ProjectManagementReports......:.................................................................................................................5 • 6
5.5.2 ProjectManagementReportingBest Practices.............................
...................................................:..........................5 • 7
5.6 StakeholderEngagement...........................................
.......-....................:....................................................................................... 5 • 8
5.6.1 Importanceof StakeholderEngagement...................................................................................................................5 • 8
5.62 Activities Involvedin StakeholderEngagement process are .......................................................................................5 - 8
5.6,3 ..............:...................................................5 • 9
Ways to EngageProjectStakeholders.......................................................
5.7 Team Management............................................. ............5 - 9
............................. ....·.............................................................................
5.7.1 Characteristicsof BetterTeam Management.........................................
....................................................................5 - 11
5.8 ProjectCommunicaUon............................................
. ..........................:··· ..................................................................................... 5. 12
5.8.1 .................................5- ,2
Plan ProjectCommunicationsManagement.............................................................................
5.8.2 Manage ProjectCommunications........
.............................................................................•• ••••••u• ••• ....•••• ••• ••••••• •••••••• ••• 5 • 12
5.8.3 . Communications..........
Monitor Project ................................................................_
................................... .....................5 -13
5.8.4 How to be Successful at Project CommunicationManagement? ................................................................·............5 _13 .
5.8.5 Key Component . s to an EffectiveProject ManagementCommunicationPlan........................................................... 5 • 18
'I
I
I
. ... 5.8.6 CommunicationMethods .............................................. .... .. ·
5.9 Project Meeting.....................................
...........................................·...•••·:::::::::::::::::::::::::::::····.............. • ............. • ••..•5 14.
5.9.1 Planning ProjectM ti .............................................. .......... 5 · 1!4
ee ngs ......................................................... ........................... .
5.9.2 Typesof Meetings ...........................................:.........5 - t$
•• •••••••••• .. 00 00•• ••••• .. •• • .. •••• • •• .... . ... ........ .. ,,ououu o ooo Oloth• .. •• .. •o ootoouuo o

Managing a Projeo1Meeting ...............................................5 -15

5.9.3
The Earned Value Method
............................. ..............................................................................................5 -18'
\

6.10
5.10.1
5.10.2
5.10.2 (a)
5.10.2 (b)

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Project Management(MU)
7 Table of Contents

S. l0. (c) Analysis..........................

...........................
..........................
......................................................................................
5 18
2
5.10.2(d) Forecasting....................................
..........................................................................................
.......:...........................
5-18
MilestoneIn ProJec1 Management..............................
.................. ........................................................5 . 19
........................................
5.11 5.11.1 Usage of ProjectMIiestones........................................................................
.................
....................... ......................
5. 19
. . EffectiveMeasurementof the Project Progresa................:..................... .......................
...............................
.............5. 20
5 11 2
Effectiveutilizationof ProjectMlleatonea.............................................. ..........................
..................................
:........5 - 20
5.11.3
S. l l . Benefits of Project MIiestones..................................................................................... ...........................................
....5 - 21
4
Change Request................................................................................................................................
.........................-................5. 21
5.12
. . steps for ManagingChange Request..........................................................................
.......................................
.......5 - 22
5 12 1
Tips for EvaluatingChange Requests.........................
.....................:.......................
.................................
.................S • 23
5.12.2
Scope Creep.........................
......................................................................... ....................................s • Z3
...........................................
5.13
5.13.1 Causes of Scope Creep....................................................... ...................................................5. 24
...................................
. .2 ways to ManageScope Creep............................................
........................... ..........................5 · 24
.................................
5 13
5.13.3 Stepsto avoid Scope Creep .............................
...................:.........................................m ......... ... ............... - .... . .. . .... 5 • 25
Projec1 Audit....................................................
.................! .. ................ ............. ... ............... . . . . . .. ........... ................ : ....... .... ...... .... .. 5 - 25
5.14
Benefitof ProjectAudits..........................................
.............:..................................................
.............:.....................5- 25
5.14.1
5.14.2 Preparingfor the ProjectAudit.........................
....................................
......................................................................
5 · 2S
5.14.3 Phases of ProjectAudit ..........................
....................
..........................................................
...............................
........ 5 • ?:1
Project ProcurementManagement.............................................................................. .................5 - 29
................................................
5.15
5.15.1 PrimaryProcurement........................................................................................... - ..5 - 29
..................................................
5.15.1 (a) PrimaryProctJrementActivities ...................................
........................................
..................... -5- 30
..............................
5.15.1 (b) Types of Primary Procurement.....................................
.................................. .- ............. 5-30
: ..........................................
5.15.2 SecondaryProcurement..............................·................................
! .. ................ ............................................ --............. 5 - 31

5.16 .............................- - ...........--·····--5- 32

ProjectContracting..........................................................................................................
5.16.1 Contraci Manager...·................................. ___ ..5 - 32
................: ................................................................................
5.16.2 ContraciManagemenl.............................................................
.........................
...............................- .........- .......-.5 - 32

,.,, 5.16.3 Types of Contract....·....................................

...................................................
Project Outsourcing........................................................................
5.17.1
.............................................- ...........5-33
- .. 5 • 34
..........................................................................................
ProjectManagementOutsourcing..........:.....................................
..................................................
:- ........................ 5 • 34
I

5.17 .1 (a} Pros & Cons of Project ManagementOutsourcing............................................. 5-35

,'.. ;:..................................................
5.17.1 (b} Using IPECC to UnderstandProject ManagementOutsourcing..........................................................
....................-5 • 35

lchapter6 : ProjectLeadership,Ethics and Closure

Syllabua: Introductionto project leadership,ethicsIn projects, Multiculturaland vlrtual'projects.

Customeracceptance;Reasons of projecttermination,Various types of proj~ terminations(Extinction,Addition,·Integration,~).
Process of projecttermination, completinga final report; doing a lessons leamed analysis; acknowledgingsuccessesand falurM; Project
mana ementtem ates and other resources; Mana In withoutautho , A1'888 of furtherstu •
3.1 ..........................................................................................6 • 1
Project Leadership ...............:...............................................................
6.1.1 Role of Project LeaderIn ManagingProjecta..................:............................,............................................:............:.....6-1
6.1.2 ProjectManager Leadership Skllla...................................:...........:.................................. 8 -2
:-:...........,...............................
6.1.3 Leadership Styles.....................................................
: ....-.....................................................
..................................
:.......6 - 3 ·
i .2 Project Ethics .......................................................................................... 6•3
.......................................................................................
6.2.1 Ethlca Plays a Critical Role·In PM In These PrimaryWays...............................................
' '
................:..........................6- 3 .. .
6.2.2 PMI Code of Ethics means for PMPs......................................
........ .....................................................................
:......& • 4

.
6.2.3 Ethical DIiemma......................................
......................................................
...............................................................
6-4
6.2.4 Traits of Ethical Professlonala...........................
: ...........................................
..........................:.........................
.:.........6 - 5
............
,,1 1tc ath•1

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 ProJect Mana ement (MU) 8

6.3 MulticulturalProjects ................................................

.................. ·················::.......................................::...: •
6.3.1 Problems~~·~~;;~l~:;~;~;~ j~s. .......................... ..................... ····.·:::::::::::........................................,.. :::a:
6.4 ....................................................... ......:.......................................8.
Virtual ProJects........................................................................
6.4. 1 Tools and Technologyfor the Virtual Team...................... .... .. .........................................a·.
6.4.2 a•.,
How Virtual ProJectManagementWorks ? ............................................·...................................................................
6.4.3 Benefits of Virtual ProjectManagement.............. . ....................................................8.7
6.4.4 Challenges of Remote Work ............................. ... ..................................................8 • 8
6.5
.................................................................................................................6 • a
customerAcceptance.....................................................
6.5.1 GettingCustomerAcceptance...................................... ............................................................6 • 9
6.6 Project Termination..................................................
.................................................. · .........................6 - 9
6.6.1 Steps to Avoid the NegativeConsequences of Project Termination.......................... ...................6 • 10
6.7
6.8
6.9
:::::a:,;::;:::~~~·::.· : : .: : : : : : : :.:. . ... . . . : : : .·: :: : ::. . . . ... . . . . . . ... . . . . ... . . . . . .:. -. . . . . . . . . .:~;~
Process to Terminatinga Project.............................. ................. .............................................
. 6 -12·
6.10 Preparationof Anal Reports ..............................................................................
........................... 6 - 14
6.10.1 Templatesfor Final ProjectReport.............................................................................._........ 6 -17
6.11 Lesson LearnedAnalysis......................................................................................................................... . e. 18
6. 11.1 Process of Lessons Leamed Analysis •· ............. ·· ··.......·..........····· ................................... · •
6 19
6.11.2 The Lessons Learned................................ ...............··········································-4······. -·................................. 6 • 20
6.11.3 How to lden~ng Lessons Leamed ? .....••······.....................·...........·····......................... •
6.12
=~: F~::-:-: --: : :_: : : :::: ::::: : : : : : :::=::~----- -- --.- ------------:::
21

::;:·;::: ~;:::'1~h:,:::::~:. . : . ..:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :. . . . . :. : : : : : :.-~::=::::::.-~--=:::::::::::

6.12.l (c) Recognizethe Changes in Failed ProjectManagement...............................................·-·········································· •.22
6 • 21
6
6.12.1(d) Adjustthe Frameworkfor the New lnitiatlve.......................................................................................: ....................... S • 22
6.12.1(e) Be Optimisticto OvercomeProject Failure......:.................................................................................:•··....····-··········6 • 22
6.12.1(f) Ways to OvercomeFailure...............................................................................•··....................................................... 6 • 23
6.12.2 Acknowledging Success................................................................. ................................- ............................ ........ 6 • 23.
6.12.3 Key Points of Celebration............................................................................................................-- ...···-········· ······.. 6 • 24
6.13 ProjectManagementSoftware..................................................................................................................................·-················6• 25
6.13.1 Types of ProjectManagementSoftware.......................................................................·............................................. 6 • 25
6.13.2 ProjectManagementSoftwareFeatures............................................................................................·-·············· ·······6 ·25
6.13.3 ProjectManagementSoftware Functions.................................................................................................................. 8 - 28
6.13.4 Benefrtsof ProjectManagementSoftware.....................................: ................................................................... ........ 6 - 28
6.13.5 MlcrosoftProject.................................................................................................................................................... . . ·.~ . 'Z1
6.13.5(a) Project ManagementFeatures of MS Project .........................................................................................·................. . 6 _ zr
6.14 Project ManagementTemplates .................................................................................. · 6 21
6.14.1
····························
.. ···················....
Most Common Project ManagementTemplates.................................................................................................... • . · _
..............
·
-
6
6.14.1(a) ProjectCharterTemplate....................................................................................................... · •
6
6.14.1(b) Project Plan Template.................................................................................................................................... ............ S.
6.14.1(c) Project Status Reports Template................................. ............................................................ . _
6.14.1(d) __, Ies -r, empIaIe .................................................................
Work Sch""u .. ...... ........................ . 6
6.14.1(e) Work BreakdownStructures(WBS) Tem I t ......................................... .................... ........... S •
pa e................................................................ _
6.14.1(f) Timesheets Template.................................. · ·····•.................. .............. . 6
6.14.f (g) CommunicationPlans Template ................................................................................................ .......... ,:... 6-
6.15 ............................................................................................................:..:... 6-
Managlng WithoutAuthority......................................
6.15. 1 Strategles to Help You Manage Without Authority............... .............................................................. 6 •
6.16 Other Areas of Study In ProjectManagement ......· · .............·....................·............ .......... 6•
........................................................
..:................:.·: ....·····......·:······ ........·:····..........6--

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 Project Management Foundation

Definition of a project, Project Vs Operations, Necessity of project management, Triple constraints, Prnject fife cycles
(typical & atypical) Project phases and stage gate process. Role of project manager, Negotiations and resolving
conflicts, Project management in various orgahization structures, PM knowledge areas as per Project Management
Institute (PMI).

1.1 Introduction

Project Management for long has been an Important functional area of large no. of organizations. Today, large no. of
organizations execute 50% of their work activities in the form of projects. There are large no. of project organizations
whose main activity is to undertake and develop projects for. other organizations. The projects executed are of all kinds be
ft infrastructure, IT, industrial setup or services. The successful execution of a project requires an effective use of
management tools & te(:hniques in order to achieve the objectives. Thus, Project management as a subject of study has
become important for management personnel and students ..

1.2 Project

- A project is a temporary work done with a definite start and end. It is generally unique in nature unlike a regular
operation . It is planned and executed keeping a specific problem or opportunity in mind. The aim is always to achieve a
specific goal that helps solve the problem or avail the opportunity present.

For example : Building a bridge or a building, Developing a software, Launch.Inga p~duct, Conducting an event, Doing
a market survey etc. Almost everyday around the w9rld large no. of projects are initiated.

1.2.1 Project Management

The success of any project is measured by the objectives achieved at the end. Some of the important objectives to be
achieved are the set standard of the output, its timely compietion and meeting budget limits. In order to achieve the
objectives, the role of management becomes very Important. Project Management is the application of management
knowledge, skills, tools and techniques to project activities In order to meet the project requirements.

Operations

Operation Is a vital organizational function. It Includes production of goods as well as services. The process of
operations turns raw materials Into goods. The quality of products to a great extent depends on the operational
efficiency and effectiveness.
- Operations include a three step process- Input, Process and Output. It is a routine function within an organization and
is performed as long as the business of the organization exists.
... For effective and efficient operations Its proper management Is of utmost Importance. Operation management is the
administration of business practices to create ~he highest level of efficiency possible within an organization.

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 r • Project Management(MU)
'I 1-2

Operations management teams attempt to balance costs with revenue to

profit possible.
- Operations management Involves utilizing resources from staff, materials, equipment , and technolo1Y. Ope~
~anagers acquire, develop, a_nd deliver goods to clients based on client needs and the abilitles of the company.
- Operations management handles various strategic Issues, Including determ ining th e Size of manufacturing plants a
project management methods and Implementing the structure of Information technology networks . Other 0Perat
Issues lndude the management of Inventory levels, Including work-In-process levels and raw materials acqu1stt1or,,·
quality control ~mat erials handling, and maintenance policies.
'I - Anof h er large facet of operat ions management Involves the delivery of goods to cuSt0 mers. This lncfudts
ensuring products are delivered within the agreed time commitment. Operations management also typlcally roto..,.
up With customers to ensure the products meet quality and functionality needs . Finally, operations ma~
takes the feedback received and distributes the relevant Information to each department to use
Improvement.
Operations management focuses carefully on managing the proces ses to produce and distribute products and ser.itees;
A great deal of focus Is on efficiency and effectiveness of proce.sses. Therefore, operations management often Includes
substantial measurement and analysis of Internal processes .
- Ultimately, the nature of how operat ions management Is carried out in an organization depends very much on the .
nature of the products or services in the organization, for example, agriculture, mining, constructio~ or general
If
serv ices. Here are some additional perspectives on the field.

1.3.1 The Difference between ~rojects and Operations

There are many differences between projects and operation s. Some differences are as follows :
(i) Projects are unique and temporary , while operation s are ongoing and permanent with a repetitive output.
(ii) Projects have a fixed budget, while operations have to earn a profit to run the business .
{ill) Projects are executed to start a new business objective and terminated when It is achieved, while operational worfr
does not produce anything new and is ongoing.
(Iv) Projects aeate a unique product , serv ice, or result, while operations produce the same product , aim to earn a p
and keep the system running.
(v) There are more risks in projects as they are usually done for the first time, while in operations there are fewer risks
they are repeated many times.
(vi) Projects are performance Intensive while operations are efficiency intensive.
(vii) Projects are managed through project management and operations require business proces ~ rr,anagement.

Understand this difference through an example : Assume you were given a _project to build a car manufactu
facility. You build the facility and deliver ft to the client. Your Job is completed , and the client has started manufacturt
cars. In th is example, building the facility is an example of a project , because here you
. con st ru ct e d a car manu fa ctu
.
facility and handed It over to the dlent and signed off.

However , once the faclllty ~tarts working and the car manufacturing process begins this Is
operations , because here the facility is producing a repetitive o~tput, cars. Therefore, t~is Is an
operation .

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 $' ProjectManagement(MU) 1-3 Project ManagementFoundation

Obiectlves/Necessity of Project Management

1.4 I

~. development and Implementation of project's phases : A project generally Involves different phases such
_ succesSTu1
as Initiation, Planning and Design, Construction and Execution, Monitoring and Contr ol, Completion. The smooth and
uninterrupted development and execution of all the phases ensures the success of a project .
productive guidance, efficient communication and supervision:The successor failure of a project Is highly dependent
on teamwork which requires collaboration among Its members. Proper guidance, Good communication and r~lar
supervision are of major Importance as Information needs to be articulated In a dear , unambiguous and complete way
so everything is comprehended fully
_ Achievement of the project's main goal : Project management has the responslblllty of achieving the set goals of a
project even with the presence of all constrains. ·
_ Optimization of the allocated resources : The success of the project also depends on the optimum utilizat ion of all the
resources. This is a major objective of Project management. The Identification and proper utilizat ion of the resources
are to be done to achieve the goals.
_ completion of project as per the client's exduslve needs and objectives : This might n;,ean that you need to shape
and reform the client's vision or to negotiate with them as regards the project's objectives, to modify them into
feasible goals. Once the client's aims are clearly defined they usually Impact on all decisions made by the project's
stakeholders.

1
.5 Importance of Project Management

l aearfy defines the plan of the project before It begins : The importance of planning in project management cannot be

I ignored. The more complex· project , the more scope there is for chaos. One of project management's primary
functions is to tame the chaos by mapping out a clear plan of the project from beginning to end.
• Establishes an agreed schedule and plan : Schedules help to elimln·ate delays or overruns and provide a plan to be
followed for all those involve~ with the project.
. .
Create a base for teamwork : People are required to work In a team on a project. This Is due to team synergy benefits
t hrough the sharing and support of knowledge and skills. Bringing people together in this way inspires team members
to collaborate on a successful project .

Maximization of Resources : Both human and financial resources tend to be expensive. Project tracking and project
risk management ensure that all resources are used efficientlv and are accounted for economically.

Facilitates Integration : Projects that are completed w ithin an organisation are generally integrated with wider
business processesand systems. Integration forms the value aspect of proje cts and their management.

Keeps control of the cost : Depending on the scope of the project , some projects can Incur organisations significant
costs. It is important therefore to keep on budget and to control spending. Project management greatly reduces the
risk of budget overruns.
Manages O,ange : Today, more than ever, change Is something which all organisations face. Projects, during their
running, also face changes and must be prepared to face such deviations from the orig inal plan. Project management
allows for effective change management and makes It less of a complex ta sk.

Ensures Quallty : More so than ever, it Is important to produce quality results. Project management helps to Identify,
manage and control quality . Quality results ~ake clients happv, which Is a w in-win situation for all Involved •

no.....,.
• •••••cat&
••'

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 p .
ro1ect Management (MU) 1-4 Project ManagementFoun
1.6 P~oject Scope
Project sc h ·
ope management Involves managing the extent of the project. The concept ere Is to ensure that all
Work to be do I . k h d
ne s included. Scope management also Involves ensuring that the wor t at was agree to be done Is
work that ha b d
s een one before the project Is certifie d as completed.

Project Scope Management processes

(I) Collect Requirements
(ii) Define Scope
(iii) Create Work Breakdown Structure,
(iv) Verify Scope
M Control Scope
(i) Requirements Collectionphase Involves gathering all the requirements from the stakeholders. A stakehdcre, Is
anyone who has an Impact on the project.
The stakeholde rs are usually documented in a stakeholderregisterand the high level documentation of the projectIs
usually conta ined in the project charter. ·• ·
The project charter also appoints and authorizes the p·roje.ct manager to take charge of the project. These two
documents (project charter and stakeholder register) serve as inputs for the p'rocess of requirement s collection .
(II) Scope Defin ition typicat:Y involves creating the pro~ct scope statement from the high level information (in the project
charte r) and the requirements you have gathe red during the requirements collection process. Close attention should
be paid to the eventual goal·of the project and alternatives should also be explored. The output of this process is the
scope state ment .
(Ill) Work Breakdown Structure Creation involves dividing the entire project work into smaller bits until you have reached
manageable unit s of work that can be easily controlled as indivldu_a4 entit ies. The smai. unit of work is called a work
package. The go~I here is that the units must be clear, measurable, assignable and easy to control. The output of this
proc.ess is a Work breakdown structure , which is a chart that shows the decomposed project .
(iv) Scope Verification happens after we have started receiving deliverables on the project . It involves formally accepting
the deliverabies of a project . It is important to note that the goal of thi s process is not validating the deliverables. This
process focuses on inspecting the validated deliverables to ensure they meet the original requi rements of the project
as defined in the requirem ents documents:
(v) Controlling the scope is one of the most critical aspects of the project scope management. This involves monitoring
the project to ensure that there are no changes to the cost baseline wh ich is not controlled . It is important to ensure
that if changes are to occur, the correct Integrated change control process is followed.

1.7 Project Environment

Business functions or projects are not performed In closed environment. There are a lot of uncertainties that surround
a project. These are called environmental factors and they play a vital role in the success or failure of a project . They m
be interna l as well as external to the organization and often many of them are beyond the control . Therefore it beco
apparent to Identify all of them in time so that pro-active measures can be planned to minimize the damage
interferen ce In case such a situatio n arises.

1. Internal Environment : It comprises all those factors that are present with in the organization and that may impact t
success of the project. They are g_enerally within organization's control. Some of them are

L -
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 . .
Project·Management(M~) 1-5 Project ManagementFoundation

(i) OrganizationalStructure (11) Infrastructure

• (iii) Skill Availability (Iv) Risk taking Attitude
(v) GovernanceApproach (vi) Management (Plan/Processes/Pollcies/Procedures/Knowledge)
External Environment: It comprises all those factors that are present outside the organization. They are often beyond
2.
the organization's control and therefore ther e understanding Is of utmost Importance. Some of them are: -

(i) Political ~limate

(ii) EconomicCondition
(iii) Market Condition·

Triple Constraint
It is a model of the constraints Inherent in managing a project. Those constraints are threefold. They an~

0 Cost: It is the financial constraints of a project also known as the project budget.
o Scope : It is the tasks required to fulfil the project's goals
0
Time : It is the schedule for the project to reach completion
The Triple Constraint states that the success of the project is impacted by its cost, scope and time. As a manager of the
project, you can trade between these three constraints. However, changing the constraints of one means that the
other two will suffer· to some extent which should give you an idea of ho~ important the Triple eo·nstraint is when
managing a project.
If you are managing a project you are working with the Triple Constraint too . Therefore, it can·be easily argued that
the Triple Constraint becomes a vital concept in project management.
- While it's true th at' the Triple Constraint is an important part of any succes~ful project, it doesn't determine success.
Projects are made from many parts, more than the three that. make up the Triple Constraint but these factors are
always at play in the project .

1.8.1 Importance of Triple Constraint

- Triple Constraints are like the boundaries in which you have to work. Just as restrictions enhance creativity, the Triple
Constraint provides a framework that everyone In the project can agree on . .These metrics drive the project forward
t while allowing for adjustments as needed when issues arise.
- Managing a project is often a series of trade-offs and compromises to keep things moving towards a successful
completion. The Triple Constraint is a model that helps managers know what trade-offs are going to work and what
impact they'll have on other aspects of the project.
- By ~sing a project management dashboard, a manager can keep sight of the project as it progresses. Metrics such as
the schedule, cost and scope of the project are easy to track. With this information , a manager can identify Issues and
adJustthe Triple Constraint to prevent those issues from developing Into p'roblems.
Let us now learn the three constraints in details

1. Cost
- Cost is the first financial constraint that affects a project . It is the flnanclal commitment that Is made to the
project. Cost of a project Is dependent on several components ranging from the materials to people. Apart from
that there are outside forces also that Impact a project and therefore they too are considered as the cost of the
work .
- Costs are divided Into fixed and variable cost. Both of them are associated with a project. Costs vary depending
on various factors such as the use of contract workers or outsourcing .

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 ~'=r
V Pro·
• ~ect Management (MU)
1-6 Project Management Fou
Cost of a J . ·
pro ect needs to be processed . There are various costs processes associated with a proJ-
estlmatrng Is d .....
use to flgure out the financial commitment needed for all the re.sources necessary to compt-.
P~ett - ~,
st
Co budgeting Is another process used to create a cost baseline . Cost control is third process which Wofls
manage th e fluctuation of costs throughout the project . ·
st
Co has always been a complicated area on the Triple ~onstra lnt trlanBle . To ensure that your estlmat~
accurate, It's advisable to use project manaBement tools to calculate the cost variances.
2. Scope

The scope of a project Is the second constraint . It outllnes the specific requirements or tasks which a~e "'"'°'sa,w
t 0 compete
I
the project . Managing the scope Is vital In any project, whether they are a811e software ProJectsar
·
well-planned waterfall projects. Failingto control the scope of the project will not help in delivering it on·-ar
within budget .

Managing scope is critical. It Is Important to prioritize the tasks so that resources are planned and assisn.c1
effectively .
Project management has a specific feature called task management that help ' a project easily assign, sort and
prioritize the tasks . This way all ttie critical project tasks can be delegated to the right people. It prevents the
scope to be compromised . Additionally, by offeri_ng file sharing and task co~ments, collaboration on the tast
level is encouraged .
Manilging and establishing scope a lso requires effective handling of stakeholder expectations. Stakeholders often
o I have new demands that keep coming up during the progress of a project and that need to be fulfilled. This can
especially be the case in long term projects whe re new stakeholders might be Introduced in the middle of the
project.
In order to fulfill the requests and new demands of stakeholders that come with the progress of the projects, it is
important to manage change. At the same time care should be taken to ~ccommodate only those change
requests that are necessary to achieve project goals and deliverab les.
The steps used under scope management are essential as the amount -of time each task required 1.s critical
a
assure the quality .of the project. This can have great impact on schedule and cost particularly for a proj
/' which is large.

3. Time
nme is a very important project constraint. The amount of t ime required to complete a project or produce
deliverables must be estimated well for a good schedule . Usually, this .ls done by flrst identifying all the tasks
are going to be performed during the entire life cycle of the project.

For estimating time , first of all a Work Breakdown Structure (WBS) Is used generally to convertthe large p
goal into a series of manageable tasks . These tasks ~re then prioritized and placed on a tlmeline .
A useful tool In the form of Gantt Charts can also be used to prepare the project schedule, .with each task
place on that timeline , with task dependencies linked, and durations determined. Data from previous pro
can also help make more accurate estimates .
For estimat ing time, various project management software features such as an online Gantt chart are aval ·
Here , time gets updated automatically as your team completes their projeot tasks, so data is always accur~te. ·
Accord ing to the Project Management Body of Knowledge (PMBOK), the schedule can be managed through a p
of time management . Those steps are as follows.

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 .. Project Management (MU) 1•7 Project Management Foundation

(IJ Planning schedule : Before beginning with a project, necessary policies, procedures and documentation with regard
to planning, executing and monitor ing of the project schedule should be prepared .
(Ii) oeflnlng Activities : It is very Important to Ident ify and reco rd all the actions that can be taken to produce the project
deliverables.
(Ill) sequencing Activities: Next step Is to Identify and record the order of the work activities In the right logical way.

(Iv) Estimating Resources Required : A project requ ires various resources In various quant ities. Therefore , It Is Important
to estimate What type of and how many material s, p~ople, equipment , supplies, etc . will be required to perform each
activity.
(v) Estimating Activity Durations : In this step , you calculate the time required to complete each activity with the
required resources .
(vi) Developing Schedule : In this step , you Analyze activity, duration , resources and timellne to develop a proper
schedule.
(vii) Controlling Schedule : This Is done by comparing the planned schedule to the actual progress . It tells whether the
project is on track or not. Necessary actions can be taken based on the ana_lysls.
Thus, as we can see, the triple constraint should be balanced to reach a successful conclusion.

1.9 Project Management Life Cycle

The project management life cycle is a process that is followed by nearly all the project managers . It provided a
~a mework within which any project can be well managed . Leaders around the world have found that following a project
e cycle is critical for the success of a project . . ·
A project cycle can be of two types
Typical : It is also called a standard Project life cycle becau se It follows a set of steps that are predictable and prove
successful in most of the cases. '
• Atypical : It is also called Adaptive Project life cycle. It deviates from the set steps and is used mostly for projects
where rapid changes are expected and scope is not possible to define upfront .

.9.1 Typical Project ManagementPhases

In project m~nagement there are five pha ses: initiatin& planning, execut un& contr olling and closing. The five phases of

.I
project const itute the project management life cycle.

let' s take a closer look at the ~ve phases of a project.

. Initiation .
. .
This Is the pha se where all projects begin. In this phase, t~e value as well as the feasibility of the project is
determined . The project is approved or rejected on the basis of these two documents . They are created to convince
the stakeholders or sponsors: •
(I) Business Case : A business case Is a document prepared t~ justify t·he need ·of the project . It anal;,,ies the benefits
to be offered by the project both in ter'!ls of financial gain and problem solving.
(IIJ FeasibilityStudy : This is an important report . It analyze whether it Is feasib le to start the project and complete
on the given time. You need to evaluate the project's goals, the timellne to comp.letion a·nd the total cost to be
Incurred. You also requ ire to identify the resources to be requlr~d to complete the project .

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 Project Management (MU) 1-8
2. Planning

Once tha project Is approved, the next step Is to build a project team and start working on .project planning. Pl
helps to achle th
ve e goals within budget and allotted time. .· .
The project plan Identifies the resources, financing and materials needs . The plan also gives your team directton
the following : · ·
(I) Scope : A Scope statement reiterates the need for the project and lde~tifles its deliverables and objectives. . .
(II)
Definition : It is a process used to break down the larger deliverables into smaller ones th at help manage:
better .
{Ill) Tasks : Tasks are performed to produce the deliYerables. Thus thel~ identification and dependence on
tasks must be figured out . .
(Iv) Schedule : This refers to the duration of the tasks and their completion date and time.
(v) Cost: Costs are the financial commitments involved·across the 'project and it helps formulate a budget.
(vi) Quality : Quality objectives are important to be defined and 'met throughout the project.
(vii) Organization : Project organization must be clea.rly described with a good structure including (eporting
progress.
(viii) Staff : Determining roles and responsibilities of the project team is another vital aspect of project planning .
(ix) Communications : Decide how information wiPI be disseminated, to whom and with what frequency .
(x) Risk : Project plan also includes asse ssment of possible risks that are likely, and their impact on the project and
how to resolve them. ·
(xi) Procurement : Decide what work or materials will be contracted. Define those contracts and who they'll go to

3. Execution
·After planning is done , it's time to start the project execution. This phase is made up · of the following detail
processes:
(i) Executing the Plan : You begin by following the plan you crea~ed . Assign the tasks to team mem~ers and mana
and monitor t~eir progres s with project management t~ols
(ii) Admlnlstrat _e : This is done by manag ing the _contracts secured Ion the project.

4. Monitor and Control

This is another crucial pha se of project manageYnent life cycle. Here, you ensure that the project plan is be
executed as described by monitoring and adjusti~g all the aspects of the project as and when required . To do th
follow these processes :
(I) Reporting : You should develop a metric to measure project progress and an Instrument to
information .
(II) scope : It is important to monitor the scope and control changes .
(llf) Quality : Develop ways to measure the quality of deliverables and make sure that the planned qua.lity is·be
met. If not, evaluate how to Improve the quality. ,
(Iv) · Schedule: Keep track of delays or blocks that Impact the tlmellne of the project and adjust t~ stay on track .
(v) Cost : Monitor expenses and control cost changes . · ··
(vi) Risk : Note changes in risk throughout the project and respond accordingly. •·

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I. Close
1
This Is the last phase of the cycle. A project Isn't over tlll the project goals and objectives have been met. The last
phase of the project Is all about meeting the goals. This Involves the following set of processes:
(I) scope: Make sure the project deliverables have been comp leted as planned.
, (II) Administration : Close out all outstanding contracts and administrative matters, archive. the paperwork and
disseminate to proper parties.

1.~.2 Atypical (Adaptive) Project Life Cycle

_ • The life cycle of a particular project Is composed of different phases, around which the project management scheme is
organized. There are different types of project life cycle depending on the organizations involved as well as the phases.
one of the project fife cycles important In project management is the adaptiveor atypical project flfe·cyde.

An atypical project life cycle is change-driven. It Is an agile way of doing things as it is intended to the high level of
changes. It needs on-going stakeholders involvement. In this life cycle, the overall scope of a project is broken down
, into different sets of requirements or sub-projects that wiil be undertaken individually. During the iteration, the
functionalities of the cycle is discussed, imp lemented and, finally, reviewed by the client.
Here iteration s are very rapid usually with a duration of 2 to 4 weeks and are fixed .In time and cost. This life cycle is
· used for projects where rapid changes are expected and scope is not possible to define upfront . So, a change during
the proj ect is naturally handled in rapid iterations.
Also, the end result is delivered at the end of 2 to 4 week iteration. Like, a yearlong project_will have multiple 2-4 we~k
ite ration and each iteration will execute Planning, Analysis, Design, Code, testing phases and deliver the result at the
end of the iteration.
The advantage of atypical life cycle is that it is appropriate for projects that involve higher levels of complexity and
uncertainties such that each ite ration of. this particular project life cycle should address issues for every task and each
task should be completed before another task is undertak~n. The risk _is minimized for this particular project life cycle.

Atypical Project Lifecycle exists within five stages

Constant Change

2. Urgency
f
Need to Learn
Small Team Ability
Deliver in Small Increments
When we work in adaptive, there's a sense of urgency, we've to move quickly. We also recognize before we get
underway that there will be constant change. There will always be change on projects. It's constant change after
change and de~ision after decision. You need a different framework for an adaptive project then you do for predictive,
incremental or iterative projects .
Unlike a predictive lifecycle or incremental iterative where you could have one factor suggest that t~is is a predicted,
or thi s is incremental becau~e we can do phases or stages. In an Adaptive project you need constant change as a .
definition. There will be a sense of urgency to learn because you don't know the goal because it's unclear.
For this methodology, or sometimes referred to as the Agile Manifesto, It Is a small team ability.Small teams set out
to work to figure out where to go.
wTedl....._.
..... , w1t1 ,at101s

' -
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 project Management Fo
1-10 ,
. Project Management (MU) 5 exploring but unsure wttictl Pro

For example, Israelites trying to find the Promised Lan °

d r the frontier wagon tra n1 .. .
fl d the route to get through the ·mountaln
=
1(111
they're headed will send a small team of scouts or explorers to try to n · bet
to cross the river, to find food, etc. · 1 d going out and coming·bac:tt Ho!
b ck to the wagon tra n an
You've got all of these little scouts going out and coml.r,g a k d try again · thE
. Y I ht have to backtrac an .
they established stopping points along the way. ou m g . t either delivered In Re
, eed to learn, typlca 11Y a
It's all these lessons we're learned as we're going. Th eret 5IaItsn small parts as we ,re !earning .
teams or small Increments
. . We are going to call It lncremen a · . II • ment of
onents, small parts is t h e require ,
The ablllty to deliver in small Increments or smalil deliverables, sma comp th r step therefore you set 1
d n't meet or lead to ano e ,
h t
project followingthis life cycle. you may have an output t a oes
aside or throw it away entirely.

1.9.2.1 The Core Values of Atypical Project Life Cycle

rt ·ty to control the direction of the
In Atypical project life cycle, the focus Is on the cllerits. They are given t he oppo uni · ,
project. It centers around six core values : .
- Focus on Olents : Here, the focus i~ on ~he need of the cl_ient. But they must be: within the scope of ethical business
practices
- Oient-drlven : Being client-centric encourages you to include and involve the clients in your project by having project
co-managers Increme ntal
Early Results: It makes it possible to deliver a solution to the client's problems at the earliest and also keep the clients ·
engaged in the project
- Continuous Questioning and Introspection : Openness and honesty mu'st exist between client and the project team to
. .
make the best possible decisions and deliver positive results
- Change for a better solution : The client and the project team work on the deliverables from the early stages · of th
project to understand the project b~tter. His also helps them think of the better changes that can be brought.
- . F~ure not speculated : APLC focuses on the work activities that bring benefits to the client. Work that doesn't
value is removed. Project teams resist the temptation of getting the best rather they focus on the planned processes.
1.10 · Stage Gate Process

. Th~ State Gate pro:ess is ·a patented tradema~k of Dr. Robert ·co~per. The center of this model ~s on dev~~
innovative
. . processes
. . . Waterfall process.
. , It 1s also called the . This model offers a pr OJe · ct management technique• •:
whk:h
proJect 1s d1V1ded into severa l stages. The stages are sepa rated by 'gates' wh ere d ec Is1ons
· are taken to decide whether'
not to proceed to the next stage. This mode l Is generally useful while d I · . . ·
improvements in a. · eve oping new products or bringing change'

1.10.1 Gates

Gates in state
, gate process are decision points In a pro ject. They help take a d l . · · ,
, ·: "'
~tage or not. The decision is based on the availablllty of Information ec sion whether to continue then
O th
1s taken by a manager: or a committee . n e project progress till that moment. Th~ de . •
At each gate, the quality and repercus sions of Id . . ' '. •,
. b . an ea are asses d Th
execution, usmess motivation to continue flnanciall se . e areas of assess . . . ., . .'
the project successful. After each gate one of th Yand the action plan showing the th' ment are the ~uality.
' e ,ollowing deci I mgs that need t b -:.i -- · t "'
- Go: This decision consid th s ons Is to be taken ; o e uone ,. o
ers e project-good enough to . , , . :..:, .
. . . move on to the next stage. .i

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 • Project Management(MU) 1-11 Pro e<:t Mana ement Foundation
• Th" decision is taken when the project Is not good enough and cannot be developed further and terminating it Is
- Kill. IS
better.
Hold : This decision is taken project Is not found good enough to continue at that moment , but there Is possibility for
- the situation to improve and therefore rather than terminating It should be put on hold for resumption at a later date.
_ Recycle:This decision Is taken when the project Is found good enough to develop further with some changes.

1.10.2 Stages
The Stage Gate process has five stages. They are connected to each other by gates. Each stage is designedto collect
specific information :
stage O: Discovery
Stage 1 : Scoping
Stage 2 : Business Plan Concept
Stage 3 : Development
Stage 4: Testing and Validation

Stage 5 : Launch and Implementation

Not all of the Following stages are used in all the proj ects. For example, stages 2, 3 or all 5 are followeddependingon
the _size of the project . A project focusing on major product i~novat lon goes through all 5 stages. A project with less risk
require s to go through just stage 1, 2 and 4. A project that require s very small or simple adjustments needs to go through
only stage 3 and 4.

Stage O : Discovery
I . .
This is the initl.11 preparatory stage. It identifies the project ·a company wants to undertake. For that, Ideas are
generated in brainstorming sessions. ~veryone from Employees, Customers to the suppliers are involved in the session.
~ey provide useful Info rmation for idea generation . An Idea is first selected and then proposed. If the idea is not is not
. found good enough the gate closes here.

Stage 1 : Scoping

In thi s stage, the product and the existing market for It are assessed. Product's strengths and weaknessesand the
benefit s it brings to the user/consumer are evaluated . All the possible threat s from competitors are also taken into
account. The assessment of the threats helps decide whether project will not continue .. If the threats .are big the chances
are that the gate will be closed.
Stage 2 : Business Plan Development

This is the last stage of concept development . Here; business plan is developed considering all kinds of opportunities,
~re ats, competit ions, et c. It is crucial before starting th e actual project lmple~entat ion. Thl.s stage indudes the following
sob-stages: .

(I) Product Analysis

•
Here, the value a customer Is going to get Is determined by analyzing the benefits offered by the product . This
information can be collected by Interviews and surveys of the prospective customers and the project development
team. The environmental factors such as the competition are also analyzed. ·

Creating the business plan

Here, a document of the project Is prepared to describe and define the project requirements Including the legal health
and safety requirements .

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 ,(r Project Management MU) 1-12
(Ill) Creating the project plan

This plan contains a list of all tasks that are to be executed during the ent ire project development cycle. It also o
the roles and responslbllltles of the people Involved In the execution. The expected launch date can also be me
In this plan.
(Iv) Feaslblllty review

Here, a fea slblllty study Is done In which different departments assess the plarf s chances of succeeding . Even at
st age If it appear s that the business concept Is not having sufficient potential the gate Is closed.

Stage 3 : Development

- At th is stage, the plans are executed and simple tests are conducted. For example, at this stage c~st omers can
asked for their feedback of the product . A timellne with specific milestones that have to be achieved are created
the development team.

- This tlmellne can be revised and updated regularly. It also takes help of multi-functional teamwork . Different
departments provide input with expert advice. This stage results into a product prototype , which is then extensively
tested during the next stage. The gate remains closed if the prototype of the product has not been sufficiently
developed .

Stage 4 : Testing and Validation

In this stage, product testing and validation are done. The manufacturing proce ss and the product acceptance by
!=Ustomersand the market are assessed. There are some sub-s~ages that are completed during this stage:
(I) Near testing

This test is done to identify all possible production errors or any other problem area'. At this stage, the product isi
almost ready to be sold. The groups that carry out this test include staff, regular customers and suppliers and are
closely tied to the organization.

· (II) Fleld testing

In this part, the product is tested in the field by various participants who can make a valuable contribution. This
usually done with the help of specific customers. Whether this target group is interested in the product is evalua
The characteristi cs they consider important and the context in which the product will be used are also assessed .

(ill) Market testing

This is an optional test as the product is offered in the market only when it has passed through the previous t
stages. This ~est is just to assess to see whether the product sufficiently matches the needs and wishes of
consumer after a period. The product is usually pretty much in Its final form after testing . However, a good marketln
plan Is equally important at the time of launching the product . If not, the gate to the next stage will remain closed.

Stage 5 : Launching and Implementation

. 1n· this stage , the marketing strategy comes into play. The product is ready to be launch d d h . ,
. . · e an t at requires atten
by means of an advertising ca mpa ign, free publicity and Interviews or other promot · . .. .
. . 1ona 1 act1v1t1es. An estimate ls m
a~out the quantity that will be sold. Policies regarding production inventory and d' t' 'b . . ·.
, 1s n ution are prepared In this st3
the sales team is predominantly respons ible for ensuring a smooth process . · ·

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j Project Management (MU) 1-13 Project ManagementFoundation

_ Role and Responslbllltlesof the Project Manager

1 11
·ect manager Is the most Important person In a project. He has the following role and responsibilities ·
The proJ ·
He designs the appropriate project management standards and then Implements that. He also has to manage the
production of the required deliverables at different stages of the Project development.
. _ , He has a crucial role of preparing proje~ plans and ways to monitor the project. He also prepares and maintains · I
project stages and e><ceptionplans as and when required .
_ He has to Identify and managing project risks Including the development of contingency plans. -
... Another very Important role Is to liai son with program management and related projects to ensure that work is neither
overlooked nor duplicated .
_ He monitors the overall progress and usage of resources, Initiates corrective action where-ever necessary and applies
change control and configuration management processes.
_ He has to reporting to the top management on project progress through reports and end stage assessments.
He ha-s to liaison with appointed project assurance representatives to assure the overall direction and integrity of the
project is maintained. He must maintain an awareness of potential Interdependenc ies with other projects and their

relative impact
He identifies and obtains support and advice required _for the management, planning and control of the project,
managing project a~ministration
_ , He has to regularly conducting a project evaluation review to assess how well the project is being managed and then
. he prepares any follow-on action on the received recommendations . ·

1.12 Negotiation
Negotiation is a process used to resolve disputes of different kinds_between different people or group . It is done by
conducting consultations between the involved parties to reach a consensus.
. .
Negotiation involves a discussion between two -or more parties involved: It aims at reaching an agreement or
settlement. It can take place at any time in a project, program or portfolio and it may be formal or informal in nature .

- Formal negotiations are held on issues such as contract agreements while Informal negotiations include discussions to
resolve conflict, or discussions to obtain internal resources.
The skill of negotiation is used in many areas of Project Management : They could be managing conflict, contract,
requirements management and stakeholder management. Negotiations can take place at any time within the project
management life cycle. Depending on the issues, It can be either formal or non-formal . Negotiations· are generally
initiated by the project manager and therefore he should have excellent negotiation skills.
Negotiation is done through a process whlc~ can be categorized Into phases. These include planning. discussing.
proposing and reviewing.
Planning is the first phase. It helps a manager in preparing all the relevant Information needed for the discussion. The
' second phase is discussing. It refers to setting up the scene for discussion. In this phase, the conflicting Issues are
e><plor@d and discussed.
The proposing stage Involves creating the solution to solve the problem. ,This may also Include bargaining before
arriving at ari agreement. Once the agreement Is done, the Information In this regard Is disseminated all throu,hout
the organization. Finally, the last phase reviewing Is carried ol)t to see whether it resulted Into a win-win sltua.tion for
both the parties or not .

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Good Neg0 ti
atfon Skflls Include

An ability to set goals and llmlts;

Excellent llstening skills;
Excellent v b 1
er a communication skills;
Accommodative not rigid
Knowledge of h ·
w en and how to close the negotiation.
1.12.1 Negoti f F
a ion alls Wlthf n Two Categories
1. Comp~titive negotiation
2. Collaborat ive negotiation
1.
Competitive negotiation : Here, the focus ts on getting the best deal regardless of the needs and Interests of the oth
party . This form of negotiat ion can easily become a battle where the winner takes all. While competitive negotlatlo
should be avoided, it may not always be possible.
2. Collaboratrve negotiation : It seeks to create a 'win-win; scenario where all parties lnvolve'd get benefltted from the
negotiation . This approach tends to produce the best results and heips build long-term relationships. It also minimizes
the further opportunity for conflict at any other stage. ·

1.12.2 Process of Negotiation

Planning : This is the first step where the focus of the negotiating party is to gather as much Information as possib
That helps in preparing better plans. A plan is prepared by setting goals that' could be agree d upon .
Discussing : Project managers are often required to open the negotiations by giving the details of the conflict~
they explore and discuss the key issues. The involved parties must listen to, probe and question and regularly ch
the ir understanding of the discussion.
Proposing : At this step , the discussion Is over and based on that a proposal is made and communicated clearly
openly to all.
Bargaining : In this step , the negotiation begins for trade-offs . The parties involve try to accommodate each oth
demands.
Agreement : At this step , an agreement is reached and based on that an agreement is done , prepared on paper
signed as there is no substitute for a written record;
Review : Here, the outcome is communicated to all parties and the consequences Incorporated within the p
management plan .

Common mistakes in negotiations

ill-preparedness of the negotiator

Opening and showing rigidity In negotiations with an unreasonable offer;
Rushing through negotlatlon .s without paying close attention In order to secure a quick agree~ent;
Falling to walk away If an agreement ls not possible without breach ing tolerances ;
Not showing a cool and calm attitude. ' .
.. '

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 .t Project Management(MU) 1-15 ProjectManagementFoundation

Negotiation In Project Management

Project managers often face a situation where negot iation becomes necessary. Therefore they need to be prepared
and apply negotiation skills throughout the project life cycle. Early on In a project, as requirements are being assessed
Initial plans produced, the project manager needs to balance the time , cost, quality and scope requlrffllents of the
and
project and negotiate with stakeholders.
_ AS resources are mobilized and procured , Internal negotiation with line managers who 'own' the rHOUrces and
conduct more formal contract negotiations with potentlal prov iders become necessary.

A.s the project progresses, conflicts may arise. Therefore the project manager wlll be required to negotiate the issues

of conflicts.
_ In some environments, there may be specialist support available. It Is Important for project managers to know when to
ask for help from , for example, the HR or legal departments within the host organization .

1.13 Conflicts
Conflicts are nothing new. We all experience it in our dally lives. It ranges from minor disagreement to a major
problem. But they have the potential to d!srupt organizational activities and progress. Being a project manager or a
team leader, these conflicts are especially rampant and thus damaging in project environment.

Since project activities are executed by human resources ·there Is a possibllity of conflict. Everyone tries to
execute activities in order to achieve project objectives as per the expectations of ·the stakeholders.- While
managing human resources, conflicts are natural but they become serious when they lead to quarrels, fights
and even a breakup of the project .team . According to the PMBOK Guide, "conflict is inevitable in a project
environment. #

In the project environment, conflicts are

o Inevitable

o Can build the team

o Can destroy the team

o Must be managed

1:13.1 Causes of Conflict

Wherever people work, sooner or late, smaller or bigger, conflicts are bound to arise because of various causes. Som~
of t he causes may be
Scheduling prob lems

Different Project Priorities

Competitions for gaining access to resources

Cultural differences

Differences on team formation

Differences on technical Issues

Personality Conflict

Poor Planning

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Project Management (MU) 1-16
1 13 2
• • Ways to Resolve Conflicts

After defl~ing the problem, the PMBOI< Guide suggests five techniques for project management. let's revi~
techniques and id .
. cons er when to use them In managing conflicts.
1
· With draw/Avofd Conflict

This Is a good technique where people involved retreat from an actual or potential conflict situation.
po st pone the issue to be better prepared or to be better resolved by others. Suppose you are short-tern ·
With drawing can be an excellent technique. By withdrawing, you have the opportunity to come up With
Ideas to address the conflict.
Temporar ily avoiding the conflict allows you to take time and rethink over the issues It also means you have
chance to think through the other person's perspective. While ~ithdrawing and avoiding is valuable in the
term, it can be over used. If you retreat · from a conflict situation and fail to follow up, the conflict is likely
. '
become worse over t ime.
2. Smooth/Accommodate Conflict

In this technique, emphasis is given on areas of agreement rather than .areas of difference. One concedes h'
position to accommodate the n·eeds of ~thers in order to maintain harmony in relationships. This approa
maintains professional relationships which are critical to project success. On long tenn projects, anything over:
few weeks, persevering and strengthening the project team becomes very important. Project tea m mem
constantly emphasize differences making progress on the project becomes very difficult.
Areas of agreement to emphasize may vary depending on the context. You can look at how disagree
impacts other s on the team.

3. Compromise/Reconcile Conflict

In this technique , the focus is on searching for solutions that bring at least some degree of satisfaction to·
parties and the conflicts is resolved either temporarily or partially. This technique recognizes that some
cannot be fully solved.
But, this technique has some drawbacks too. The project manager needs to understand the needs of the
,or stakeholder for successful negotiation. The project manager also has to be willing to make changes
project . For compromise to be successful, each party needs to benefit and sacrifice party of their objectives.
Project ~anager s can also compromise across time. For example, you m~y respond to a stakeholder's reqtt
additional functionality by deferring their request to phase two of a multi-phase proje~ . Though, this.
change Is best handled through a change request.

4. Force Conflict

· This technique creates more problems thari solutions. Here, the focus is on pushing one's viewpoi~t
expense of others thus offer ing only win-lose solutions It Is usually enforced through •. t
. · a power pos1t1on o
an emergency. From time to time, project managers have to take a stand and I th •
app y eir power .
As the PMBOK definition suggests , applying force to resolve fl'
con lets comes at a cost The P
manager is likely to harm relationships with the project team b · h" ·
. Y using t rs method. Abuse or overuse
technique tends to cause more conflict in the long term o h . .
. d · ne s ou 1d use thrs technique only when ab
require . . . ,,,,

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 Project Management(MU) 1-17 Pro ect Mane ement Foundation

5, Collaborate Conflict
_ Th6S techniquefocuses on Incorporatingmultiple viewpointsand Insights from differing perspectives. It require, a
cooperative attitude and open dialoguethat typlcally leads to consensusand commitment.
_ This technique Is the most productive technique. It has two major benefits; one, the conflict Itself Is solved and
second, the project team Is strengthenedas a by-product of working to solve the problem. This techniqueIs most
likely to be successfulIn situations where the project team already has a high level of trust.

1.14 organization Structure

_ The process of organizingleads to the creation of the structure of an organization.The term organizationstructure
may be defined as a system of job positions,the roles assigned to them and the authority relatlonship_
s among the
various positi ons. The structure provides a basis for a framework for managers and employees for performing their
variousfunctions.
_ Organisation structure can be viewed as established pattern of relationships among the . components of the
organization. Because strategiesand environmental circumstancesdiffer from one organizationto the other there are
·varieties of po~sible organizationstructures.Generally,the organizationalstructure looks like a pyramid with a narrow
top and a broad bottom.
In large and co_mplex organizationsthe structure ls set forth Initially by the design of the major components or
subsystemsand then by establishing relatlcmshipsamong these subsystems. It Is the patterning of these relationships
with some degree of permanencywhich is preferred to an organizational structure.
According to Henry Fayol, "Organizationis of two kinds, i.e. Organizationof the human factor and organizationof
material factor. Organizationof the human factor coversthe distribution of work to those who are best suitable along
with authority and responsibility.Organizationof the material factor covers utilization of raw materials, plant and
machinery etc."

1.14.1 Roles of _Organization Structure

Organization structure is the mechanism through which management directs, coordinates and controls the
organizational activities. It is needed for the foundation of management.Followingar~ the roles of organizationstructure: ·
FacilitatingMa~agementAction : When a large number of people work together, some sort of formal structuring is
required to place them according to the·needs of the organization. All of them perform various functions which are
interdependentand interrelated. Therefore, there must be a plan for systematic completion of the work of each
specializedjob so that total activitiesaccomplishcommon objectives.
- Encouraging Effidency : Organisation structure is the framework within which an organization functions. In this
functioning,efficiencyis the major criterion. Organizationalmembers using the framework try to maximizethe output
of goods and servicesusing a given input of resources.
Communication:Organizationstructure providesthe pathways'for communicationamong organizationalmembersas
well as between the organization and Its environment.' Organization structure establishes reporting relationships
which involve communication. Similarly, when the organization Interacts with Its environment, a communication
process is involved.Thus structure serves the purposeof communication.
Optimum Use of Organizatlonal Resources : Organization· structure tries to make optimum use of organization
resources by ensuringtheir allocationto points where there are needed, Organizationstructure gives a higher place to
~ctivities which are more Important to the ach.Jevement of organlzatlonal objectives. Thu~ placing of activities
accordingto their Importance providesguidelinesfor resource allocation.

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V Project Management (MU) 1-18
- J b le Since organization provides relationship 1
0 Satisfaction : Organization Is a source of satisfaction to peop ·
t k f sooner or later come to eva1uate the n
as s, responsibilities and people those who work for an organlza ,on
.those relationships and of their ~wn relationships to the organization and to their jobs. The organization
Id f st ding among his fellows .
prov es or each person a place of status which confers a certa In an

1-14.2 Importance of Organizational Structure

The functions of Organizing and organization are Important In the following ways :
- Sp I II t
° ·
ec a zat on : In the process of creating a suitable structure, care Is ta ken t see that the activities are divided•
subdivided Into compact and convenient jobs. An organizational structur~ thus promotes specialization, s
. performance of tasks and efficiency.
- Well-Defined Jobs : The organization structure clearly defines and differentiates the jobs of managers an~
th
managers. This helps the process of looking for and selecting the employees and fitting the right person to e
job.
- Clarifies authority a.nd Power : A clear-cut definition of authority enjoyed by each manager and his jurisdiction
activity minimizes conflict and c~nfuslon about the respectivepowers and privileges of managers. A good organizatl
structure clarifies authority and power.
- Avoids Duplication of Work : The organization structure helps In avoiding duplication of work and over1apping i
responsibilities among various employees and work unit s. This is because specific jobs are assigned to individuals a
work groups.
- Coordlnatl(?n: The organization structure serves as a mechanism for coordination and unification of efforts of peo
Harmony of work is brought about by higher levei managesexercising their authority over interconnected ·activities
lower-level managers.

1.14.3 Some of the Most Common Organization Structures are

(a) Line Organization · .

Line organization is the simplest form of organization and ls most common among small companies. H
authority is embedded in the hierarchical structure and it flows from the top of the managerial hierarchy d
different levels of managers and subordinates. and further down to the operative levels of workers. It
identifies authority, responsibility and accountability at each level. · ·
These relationships in the hierarchy connect the position and tasks of e~ch level with those above and be
There is clear unity of command so that the person at each level Is reasonably independent of any other
at the same level and is responsible only to the person above h·1m The Ii I
• ne personne are directly invol
achieving the objectives of the company.
Because of the small size of the company the llne structure is sim I d h ·
' P e an t e authority a d lb"
clear-cut, easily assignable and traceable. It Is easy to de I n respons 1
ve op a sense of belo • h .
communication Is fast and easy and feedbackfrom the empl ngmg to _t e organ
. oyees can be acted upon faster . .
(b) Line and Staff Organization ·

In this type of organization, the functional specialists dd · ·

are a ed to the II h . ·
specialists. This type of organization Is most common In b ne, t us giving the line the advan~
our usiness world and . •
are basically advisory In nature and do not possess d especially among large enterpriseS .
an command authorlt' . . . •
types : y over hne mangers. The staff s corislst

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' ProjectManagement (MU) 1-19 Pro ect Mana ement Foundation

taff • This group has a general background usually similar to e,cecutlves and serves as assistants to top
GeneraI S ·
em ent They are not spec.lallstsand generally have no authority or responslblllty of their own Th.., may be
manag · · -,
known as special assistants,assistantmanagersor In a college setting as deputy chairpersons.
spedallzedstaff : Unlike the general staffs who generally assist only one llne e,cecutlve, the spedallzedstaffs provide
expert advice and service to all employeeson a company wide basis. This group has a specfalizedbackgroundIn some
functionalarea and it could serve In any of the following capacities:
(I) Advisory capacity : The primary purpose of this group Is to render specialized advice and assistance to
management when needed. Some typical areas covered by advisorystaff are legal, public relations and economic
development.
(ii) service capacity : This group provides a service that Is useful to the organlz~tlonas a whole and not just to any
I specific divi.sion or function. An example would be the personneldepartment serving the enterprise by procuring
the needed personnel for all departments. Other areas of service Include research and development, purchasing,
statistical analysis, insuranceproblemsand so on.
(iii) Control capacity : This group includes quallty control staffs who may have the authority to control the quality
and enforcestandards.
The line and staff type of organization uses the expertise of specialistswithout diluting the unity of command.
With the advice of these specialists,the line managers also become more effective and develop a sense of
objective analysisof business problems.
The line and staff type of organizationis widely used and is advantageousas the specializedadvice improves the
quality of decisions resulting In operational effectiveness. Staff specialists are conceptually oriented towards
looking ahead a~d have. the time to do strategic planning and analyze the possible effects of expected future
events.
Its main. disadvantagesare the confusion and conflict that arises between line and staff, the high cost that is
associated with hiring specialists and the tendency of staff personnel to build their own image that is sometimes
at the cost of undermining the authority and responsibilityof line executives.

Functional Organization

- One of the disadvantagesof the line organizationIs that the line executl ve.s lack specialization. Additionally, a line
managercannot be a specialistin all areas. In the line and staff type of organization, the staff specialist does not
have the authority to enforce his recommendations. The functional organizationalconcept, originated with F W
Taylorperm~s a specialistin a given area to enforce his directive within the dearly defined scope of his authority.
The following Fig. 1.14.1 is an exampleof functional organization :

'Vice President. .
~' Engineemg-
.. , rt ,,,...

:,°"FunctJon: .
..,.,Manager-~:J.- ____ .. .____ ...... ..... ___ .... .,______ .....,.a.;.;....._;._ ...

Flg.1.14.1 : Functlonal Organization Structure

Tldi.......
.. ,,a 11c, uo as

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 1-20
Project Management (MU) divisions other than his own
ders to the persons 1n •
A functiona l manager can make decisions and Issue or h h ve been given functional authority In
I of specialists w o a
right to enforce his advice. Some good e>Camp es d bour relations .
I
organizations are In the area s of quality control, safety an a h f ctlon creating a larger scale v
hi archy for eac un
- The functional organization creates a separate er f r grouping together Jobs th~t relate
II atlon is the bas Is 0
funct ional departments . Functional departmen t a z fi ce production , and so on . The
11
h s marketing , inan , .
single organizational function or specialized ski sue a rt to the top manager .
head who in turn repo s
command In each function leads to a f unct1ona 1 . th quality of the p
ell as improvement in e
- The functional design enhan ces operational efficiency as w ources are allocated by fu
because of specialists being Involved In each functiona l area and also because res
rather than being duplicated or diffused throughout the organizat ion.
. h ges narrow specia lization rather
One of the main disadvantages of the functional des ign 1s t at It encoura . .
repared for top executive pos
general management skills so that the functional managers are no t we II P ' •
may be less responsive to o
Also, functional units may be so concerned with the ir own areas th at they
organizational needs .

(d) Divisional Organization

- The divisional or departmental organization Involves grouping of people or activities with similar characteristl
into a single department or unit. These departments operate like small organ izations under a large organizatio
umbrella meeting divisional goals as prescribed by organizational policies and plans.
- The decisions are generally decentra lized so that the departments guide the ir own activities. This facili
communication , coordination and control, which contributes to the organizational success . As the divi sional u
are independent and semi-autonomous, they provide sati~faction to the managers. It further improves effici
and effectivenes s.
This division an d concentration of related activities Into integrated units is categorized on the following basis:
(I) Depart.mentallzation by Product : In this case, the units are formed according to the type of products and
more useful 'ln multi-line corporation s where . product expansion ·and diversification of the products are
primary concern. The general policies are decided upon by the top management within the phllosop
guide lines of the organization.

(II) Departmentalization by Customers : Departmentalizatlon is used by those organizations that

differently with different type s of cu stomers Thus the c st h
· , u omers are t e key to the way the a
are grouped . Many banks have priority services for customers who d .
the bank for a given period of time Slmll I b I epos1t a given amount of money
· ar Y, us ness customers get b tt .
Individuals. e er attention In the banks than

(Ill) Departmentalizationby Region . If an O ·

· rgan 1zatlon serves differ t .
based upon geograph ical basis. Such divisions are es en geographical regions, the division n,
geographlcally spread out such as bank! I peclally useful for large scale ent I th
distributed . ng, nsurance, cha in department st erpr ses
ores or a product that is na
(Iv) Departmentallzatlonby Time • H
• ospltals and oth
work around the clock are general! d er public utlllty companies .
compa ny may have a day hlft Y epartmentallzed on the basl f such as telecom companl
5
, on evenln hlft s O time shifts F ·
may exist, even though th gs and a night shift · or example,the tel
ey are all alike I t , and for e h h 1' ·
n erms of obJectlves. ac s ft a different dep-a

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:f' ProjectManagement(MU) 1-21 ProjectManagementFoundation

(•) Project organl:tatlon

_ These are temporaryorganizationalstructures formed for specific projects for a specificperiod of time and once
the goal Is achieved, these are dismantled.For example,the goal of an organizationmay be to develop a new
automobile. for this project, the specialists from different functional departments wtll be drawn to work
together.
_ These functional departments are production,engineering,quality control, marketing research, etc. When the
project Is completed,these specialistsgo back to their respective duties. These specialistsare basicallyselected
on the basis of their skills and technical expertiserather than decision-makingexperience or planningability.
_ These structures are very usefulwhen :
0
The project Is clearly defined In terms of objectivesto be achievedand the target date for the completionof
the projectIs set. An examplewould be the project of building a new airport.
0
The projectIs separate and unique and not a part of the dally work routine of the organization.
0
There must be different types of activities that require skills and specialization and these must be
coordinatedto achievethe desired goal.
0 The project must be temporary In nature and not extend into other related projects.

Matrix,Organizatlon
- A matrix structure can be said to be a combination of project and functional structures and is created to
overcomethe problemsassociated~ Ith project and functionalstructures. The key features of a matrix structure
are that the functionaland project lines of authority are super-Imposedwith each other and are shared by both
functional and project managers.
Chief
Executive

Fuhctional Functional Functional

Manager Manager Manager

Project Manager

ProjectManager

( - i stat1). ··. ·-w

\ ' ............ ..i "' . . ·-ta • ~"·~~_.;._.....;:~'

(Blac~-~:~s-,~;resent staff engaged in projectactivities.) Project j . ,

· coordination
Flg.1.14.2: Matrix OrganizationStructure
- The project managers are generally responsiblefor overall direction and integration of activities and resources
related to the project. They are responsible for accomplishingwork on schedule and within the prescribed
budget. .
- They are also responsible for Integratingthe efforts of all functional managers to accomplishthe project and
directing and evaluating project activity.The functional managers are 'concerned with the operational aspects of
the project.
The functionalstructure Is primarilyresponsiblefor :

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r ~
.. !•:.!P~ro~~e~ct~M:;:an:a~g:em:!:en:tJ(M:!i!Ul.)
o
_________ 1:_;-2~.2;.__ _, ____ _.

Providing technical guidance for the project.

111 •Fo~u-==
P•rsioj•e•ctmM•a•n=aage•m•e•n•t

o Providing functional staffs that are skilled and specialized.

o Completing the project within prescribed technical specifications.
- In a matr l,c organization cross-functional teams are used, as a response to growing comple,city associated With
organizational growth. These comple,cltles, both Internal (size, technology) as well as e,cternal (ma
competitors), create problems of Information processing and communication that are best dealt by matrh(
of organization.

- Matrl,c organizational design Is most useful when there Is pressure for shared resources. For example, a compa
may need eight product groups, yet have the resources only to hire four marketing specialists. The m ·
provides a convenient way for the eight groups to share the skills of the four specialists.
Each matrix contains three unique sets of role relati onships :
0 The top mal')ager or Chief Executive Officer who Is the head and balances the dual chains of command
o The managers of functional and project (or product) departments who share subordinates
o The specialists who report to both the respective functional manager and ·project manager.

1.15 Project Management Institute (PMI)

- PMI stands for the Project Management Institute . It is a not-for-profit volunteer professional membership association
for project managers and program managers. It supports and drives our Industry forward.

- PMI was started in 1969, and with over 250 project chapters and a membership of more than 2.9 million professionals
around the globe, PMI today is the largest project management membership ·group.
- The Project Management Instit ute is the organization that gives out the PMP (Project Management Professional)
credential, a globally recognized certificate that assures employers that a person is trained and qualified to manage
projects.

- PMI, in conjunction with its volunteer membership, developed A Guide to the Project Management Body of Knowledge
(PM BOK• Guide), which is the agreed upon book of standard language, terminology and principles governing project
management. In the past, there was no formal degree in project management for project · managers. PMI has been
instrumental in creating the Project Management Professional (PMP) certification, which professionalize~ the career of
project management. Now, project managers worldwide have been studying the agreed upon principles and passi
the PMP exam. The PMP certification is formalizing and validating the profession.
Project Management Institute, Inc. (PMI) found that 52% of all project teams are a mix of professional proj
managers and non-project managers. In the past, experienced project managers had a couple ·ot choices. Invest in
high end software solution that takes a lot of training to Implement, or purchase a low end tool that lacks featu
Now, Project Insight bridges the gap.

Project Insight is the only mid-range project software that respects and conforms to PMl's PMBOK Guide or standa
body . This is important for teams that are of mixed levels of expertise.

- Most experienced project managers have been using Microsoft Project desktop to manage projects. More and more
these savvy project managers find that they need to collaborate on projects with dispersed project teams. Vet,
still need robust scheduling functionality. On the other end of the spectrum, the team members , vendors, con .
and other third parties they collaborate with want something that Is simple to use.

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 Project Management (MU)
1-23 ·
1.16 PM Knowledge Areas Pro ect Mana ement Foundation

- Integration : This Is cove d fl

you are managln
re rst In the PMS
OK Gulde but It' b
=
g your project hollstlcall d ' s a out bringing together everything you know so that
- Scope : It Is the way to define h Yan not In Individual process chunks.
. I b w at your project will deli
is c ear a out what the project I z ver. Scope managementis all about makingsure that everyone
s ,or and what It In I d
breakdown structure. c u es. It covers collecting requirements and preparing the work
Time : It relates to how you
· manage the time p I
takes overall. This knowledg eop e are spending on their project tasks, and how long the project
e area helps you u d st
and how long they are go· t n er and the activities In the project, the sequenceof th~e activities,
mg o take.
- Cost : It is all about handling th ,
whi ch includes wo kl · e projects finances. The big activity In this knowledge area is preparing your budget
r ng out how much each t k I
forecast . as s going to cost and then determining your project's overall budget

Quality : This area Is where y .

. ou w, 111earn about how to set up the quality control and quality management activtties
on your proJect so that you b
can e confident the result will meet your customers' expectations.
Procurement : It supports II .
a your procurement and supplier work from planning what you need to buy, to gomg
th
rough th e tendering and purchasing processto man~glng the work of the supplier and closing the contract when the
project is finished.
,
Human resources: Human resources are vital to complete your project so you need to put your team together. After
that, it's all about managing the people on the team Including giving them extra skills to do their jobs.
Communications: Given that a project manager's job is often sald to be abo~t 80% communication, in there, the .PM
writes comm _unications plan for the project and monitor all the incoming and outgoing communications.
Risk management: It involves identifying risks and understanding how to assess risks on your project that indudes
how you perform .quantitative . and qualitative risk assessments. Risk management Isn't a one-off activity, it covers
controlling your project risks going forward through the project llfe cycle.
Stakeholder management : It ·is <?iie of the most important groups which take you through the journey of identifying
stakeholders, understanding their role and needs in the project and ensuring tha~ you can deliver those . I think we'll
see this area develop further in the next edition of the standard.
If you can grasp all these knowledge areas, you will have everything you need to know as a project manager.
I

1.17 Certified Project Management Professional (PMP)

In a highly competitive management-or iented world, management skills underline and equip project managers with
the arsenal to meet the demands of global projects. PMI provides comprehensive certification programs for project
~anagers across various levels of skill and education. You can opt Project Management Professional (PMP) Certification
Prep, Certified Associate in Project Management (CAPM) Certification Prep.
The certified Project Management Professional Course must be attended by :

Project Managers
Functional Managers
Team Leads
Project Executives

Tedll 111 Ip
• Pv\1 Jc it t1 •s

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 1-24
Project Management MU) i als
a ement Profess on
1.11.1 The Demand for Project Man g h Whether one works in Info
n all-time hlg ·
The demand for Project Management Professionals Is at a nergy - all sectors require experts in
- I . nstructlon or e
Technology, healthcare , manufacturing, sa es, co
management . · re continuously growing at a rate
ent Professlona1s a . b 20
It Is believed that Job opportunities for ProJect Managem , ct Management lnst.,tute, V 27,
eport by the ProJe
million new opportunit ies every year . According to a r ease by 33 percent, w h.1ch ls
I
Is estimated to ncr
management employees In seven pro)ect-ortente d sectors
nearly 22 mlllion new job opportun ities. by h ear 2027. This
Ill b Ired by employers, t eY
- Also, neartv 88 ml\llon project management employees w e requ . h d monstrating their contri
a clear f!Ve opener and showcases the need for PMPs In the coming year 5, along wit e
to productivity.

1.17.2 Careers in Project Management

i:::-· 1
•
A career in Project Management Is highly •
engaging, benern.1a an d Iucrat·ive because of the reasons mentioned
follows:
- lnaeased demand- There is a huge demand for Project Management Professionals. As mentioned earlier, the P
foresee approximately 22 million project management job openings through 2027.
- High pay cheques - Project Management Professionals take home a higher pay cheque than their uncertified peers.
The salaries are no doubt highly compet itive.
- Required by almost all industries- Project Management Is one of the top skill sets that the employers are seeking
today. Almost eve.ry industry is in constant need ·of proficient project managers . Industries such as manufacturing.
construction, IT, utilities, finance, business and oil and gas, among others , offer the highest level project managemen
work to PMPs.

- Offers good career - As Project Management Professionals are In huge demand across industries, the opportuniti
never cease and good decisions provide a soaring career .
- Constant learning- Project managers are always learning and enhancing their skills. This is a great career move
individuals who wish to regularly update and refresh their knowledge.

1.18 Project Management Book of Knowledge (PMBOK)

PMBOK has been used as the standard by which Project management Professional Certification is obtained.
Certification is based upon a survey of many companies' best practices . The advantages of using PMP Certified p·
Managers and Team members are that resources have already been trained . PMBOK Is valuable for both companies
employee s. PMBOK Is valuable for many reasons . Here are three :
- The first reason PMBOK Is valuable Is that It allows companies to standardize p ctl
ra ces across departments. Thls
that the people In development manage projects In the same manner a th d . .
s ose In \stnbut1on.
- Second, PMBOK can help project managers to work with a stand di d ·
ar ze system across com I So
for company x who then moves onto company y can use t.he sa pan es. meone
me pract Ices .
- Third, PMBOK discusses what works. The methods documented Ith\ h
those who are uncertain of how to undertake k w n t e project management community can
rI5 management PMBOK 1 •
prevents failure of projects. · a so discusses what doesn't wortc.

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 Pro'ect Management MU .
1-25 Pro ect ManagementFoundation

- Finally, project managers who are famlllar with PM BOK standardscan custom tailor their proJect management process
to best fit their company's needs. There's an old saying, "To break the rules, first you have to know the rules." When
project managers Invest time Into learnlns the rules, they also are Investing time In !earning how and where rules can
be broken.

1.18.1 PMBOK Structure

Project management as a practice Is rapldly growing and spreading worldwide, and is now seen globally as a
recognized and strategic competency, a career path a.nd a subject for training and education. The PMBOK framework
-consists of five process groups and ten domain areas.

Th• 5 PMBOK Process Groups

Initiating

The initiating process group involves the processes, activities, and skills needed to effectively define the beginning of a
project. Setting all permits, authorizations and lnlt lal work orders in place to secure an effective and logical
progression of initlal project activities sets ~he stage for subsequent success throughout all _project phases. Setting
dear phases for work to be completed, initializing teams, and having the budget in place before work begins are vital
for a strong start to any project across industry.

Planning
The Planning Process Group sets forth the processesneeded to define the scope of the project, set strategic plans in
place to maximize worlcflow, and begin to assemble priority lists and plan team needs. This process group also
addresses a more narrow clarification of all proj ect goals and expectations and puts in place the project infrastructure
necessary to achieve tho se goals according to the timellne and budgetary constraints .

3. Executing

The executing process group Involves managing teams effectively while orchestrating timeline expectations and
reaching benchmark goals. Project managers utilizing this set of skills will demonstrate a high degree of organization
and communication skills while addressing team concerns or other complex situations associated with getting the
work done on t ime and within budget.

Monitoringand Controlling

Processing change orders, addressing on-going budget considerations, and mit igating unforeseen circumstances that
may affect a team's ability to meet lnltlal project expectations are all part of the core skills and competencies involved
in the Monitoring Process Group. Seasoned managers keep the momentum moving forward and guard the project
against stalling by actively monitoring progress and using foresight and quick response to address project challenges.
Monitoring and Controlling hover over the whole project. According to PMBOK GUIDE these are" • d
. , processes require
to track, review~nd regulatethe progress and performance of the project .

Closing

. The biggest challenge of this process group Is to bring the project to a successf I h
u cIose w lch means completing it on
time and within the budget allotted . The bottom line Is that while th
. ese process groups are not necessarily easy to
. implement , not doing so means the team may never realize the full be flt f h
ne so t elr highly strateg ic projects.

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 Project Management F
1-26
Project Management (MU)

I· RevltiW'~ 1
2 nd 1 5
What is Project management?State Its importance. (Refer Sections1, • • )
Q. 1
· . (Refer Sections1.3 and 1.3.1)
Q. 2 What do you mean by Operations? DifferentiatePro}ect& Operations.

Q. 3 Explainthe scope of Project Management. (ReferSection 1.6)

Q. 4 Describe Project Environment. (Refer Section 1.7)

18
Q. 5 What are Triple Constraints? How are they significantin Prp}ectManagement?(Refer Seetlo~ - }
19
Q. 6 Explain Project ManagementUfe cycle. Describethe typical Project life cycle phases. (Refer Section - )

Q. 7 Oescn'be the atypical project life cycle along with its phases. (Refer Section 1.9.2}

Q. 8 What is Stage Gate Process? Describe its stages. {Refer Sections 1.10 and 1.10.2)

Q. 9 Desaibe the role and responsibility of a project manager. (Refer Section 1.11)

Q.10 What is Negotiations? What is its importance in rroject Management?How should a project manager prepare for·
{Refer Section 1.12)

Q.11 Describe Conflict and its causes. Explain ways to handle conflict. (Refer Sections 1.13 and 1.13.2)

Q.12 What is OrganizationalStructure? Describe its importancefor a proiect. (Refer Sections 1.14 and 1.14.2)

Q.13 Explain Functional & Project Structure. (Refer Sections 1.14.3 (c) and 1.14.3 (e))

Q.14 E;xplain Matrix Structure. (Refer Section 1.14.3 (f))

Q.15 Write a short note on PMI. (Refer Section 1.15)

Q.16 Describe the knowledge areas as recommendedby PMI. (Refer Section 1.16)

.,

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 lnitia~ingProject

How to get a project started s8 1

.
. 'ecting project strategically, Project selection models (Numeric /Scoring Models and
Non-numenc models) Pro'ect rtfo . .
. ' po ho process, Project sponsor and creating charter; Project proposal. Effective
proiect team, Stages of team de 1 .
· ve opment & growth (forming, storming, norming & performing), team dynamics.

2.1 Introduction

A project work demands a lot of plannlng and effort from all those who are involved in it . The basic understanding of
the project life cycle Is vital for every project manager speclally. As it Is said, well begun Is half done, the successful
Initiation of a project plays a very Important role in Its ultimate success. If you begin ·by putting the right foot forward you
are in a good chance of making it to the end as desirable. Thus project Initiation becomes a very important part of a project
work. This chapter deals with everything that helps you d~velop a good understanding of project initiation.

2.2 Project Initiation

The most critical phase of a project Is its initiation . It involves estimating, scoping, assigning resources, defining
requirements, briefing in your team, etc. There are a series of tasks so critical in giving a con<:'ete shape to your project.
A project comprises five steps. They are :
- Initiating, Planning, Executing, Monitoring & ControlHngand Closing; Project initiation is the first phase of a project life
· cycle.
- ·. This phase describes the opportunity or reason for the project init iation . Objectives are defined to avail the
opportunities lying ahead. During this phase of the project some of the important tasks are like assembling a team and
defining a business case to define the project in detail.
- In this phase all sorts of information such as client proposal or the research of any research done earlier is
accumulated to set and define the project's scope, timings and cost. This· becomes the most basic set up for your
project through which you identify the stakeholders, the team, goals and objectives and deliverables .
The project initiation phas~ generally describes a project In details in terms of three important elements . They are
people (Input), Processes and Products (Output). This is considered a good way to outline your project requirements
and all the activities to be performed later. These are critical to a project .

2.2.1(a) · People
'
Following are _the people generally associated with a project. Let us understand ~elr roles .

1. Team
(I) Describeyour Team
In the Project Initiation phase, It Is Important to define and form a team on the basis of the project requirements
and deliverables. You have to plan on what shape ~our team must be given. The following points help when you
form your core team :

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~•t!P:ro~je;:;ct~M~a:!!n~
aige::m~e;:n!!,l~
(M~U~)~-----~~:-~
Skills required (In the area of the project)
22
;..-------------•'"•iti•
-~ ·~--'-~
)
the similar projects
Relevant Experience (Experience of working on
Stakeholders (their role)
Avaliability
Budget required to get them onboard
(Ii) Start with your Team · h I
'th our team members . This e ps thena
It's Important to begin the work by arranging a starting meeting w, y t ·n the project right fron,
I 1
understand , clarify the requirements and other details a nd get th eir invo veme~ ts team membet's
beginning. The team members must be Involved while setting the project requiremen ' • th best
th 1
and responsibllltles and the ob)ectlve.s to achieve. Managing the expectations of e ~eo~ e •~ e _ f
11
;arr
initiate a project In the right way. When you get your team Involved right from the beginning t . ey wi e
e positive impression of the pr
Included and involved In the decision making and therefore have a much mor
as a whole.

2. Stakeholders

(i) Identifying and defining their rotes ·

During project Init iation process, it is equally important to outline and define the stakeholder involvem
whether the stakeholders are the client or the Internal ones. You must define the role and respons ibilities of each
one in terms of reviewing the deliverables and giving feedback .
(ii) Initiating Communication
Communication with the stakeholders is always Important . It is very important to define the contents and timing
of communication that will take place with different stakeholders . Timely commun ication with and updating
the stakeholders is a good approach. The communication and updating of project details should also be extend
to others in the team involved.
(iii) Meeting with the stakeholder
Right from the project initiation phase, the role of stakeholders becomes important. So, knowing them well
getting along and creating a positive environment is quite helpful. Therefore an initial meeting with the client
stakeholders involved should be organized. The meeting should discuss everything related with the proj
including all the people, their roles and responslbllltles. A meeting llke this breaks the ice and gets all of th
onboard.

2.2.1{b) Process

Following are the elements of a project process to explore before Initiating a project .

1. Methodology

For your process to be effective you must begin by outlining your project act lv\tl d . b
es, e11vera les and the team.
process often comprises a blended mix of different methodologies Eff rt h .
1
methodologies that are suitable to give the desired outcome You sh Id. . f o I sf s ou d be. made to Identify
· ou re ra n rom forcing a certa in metho
Followingare useful when considering the methodology :
- Size of your project .
- Scope, timellne and budget.
- Right team (Dedicated or shared).

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 Project Management (MU)
2-3 lnitlatl Pro ect
- Role of your clients and stakehold ers.
- Requirements and deliverables.
Clarity on the Following will give y b
ou a etter Idea of what type of project It Is and how It should proceed.
2. Tools

- During the project execur

ron you are going to require a lot of tools and therefore It Is Important to Ident ify them
in the beginning so that th '
· ey are available and you ca plan their utlllzatlon at the right time . Some areas to
consider when selecting what tools you need are :
- Resource planning and management

- Project Planning and timescales

- Stakeholders collaborations

- Communication with your team and stakeholders

- Management of Project Internal tasks

Always get your internal team and stakeholders agreement whlle selecting the right too ls. It Is also Important to know
how to use them effectively. later changes can· always be made depending on the requirements .

Managing Risks

There is no project that is without any risk. Risk Is an Integral part of a project. Thinking and planning all the possible
risks ahead ls vital in the proj @
ct Initiation phase. To do this, highlight all possible Risks and then Identify ways to
reduce their impacts incase that happens. You should also involve your team hold a pre-mortem session with your
team members where you discuss areas of risk, as they are often unexpected.

1. Requirement Analysis

Right product s the outcome of a project work . Therefore, you should try to understand the requirements of your
· project as clearly as possible In the initial phase. It's important to begin by outlining things that you know already such
'as the needs of the business, dient and users. This helps you to have a clear understanding of the background and
context for the project.

Identifying Scope and Deliverables

During the project · initiation phase, you must have a clear idea of the scope and deliverables that are required . You
must write them in details so that every aspect of them Is Included and agreed upon . This will avoid any confusion at
later stages. Needless to say, the Involvement of your team members and the stakeholders Is of utmost Importance .

3. . Setting Deliverables
on the basis of the Informat ion you collect, the dellverables must be flnallzed In order to avoid later confusions .
Therefore you must organize an Internal meeting with your team members and stakeholders to go through the
deliverables. Make sure to get the feedback and suggestions from everyone . During the meeting while reviewing the
deliverables with your team, keep these ateas In mind :

- The deliverables
Their format , shape, size and specifications

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 In'
V Project Management (MU) 2-4

- Changes required from the lnltlal understanding

- nmeline
Dependencies on any other deliverables ·

4. Budgets and Tim ings

e and deliverables . Next is to d
After you decide upon your 11st of deliverables, you establish a fair project scop
· Th f e you should work with the tearn
the t imings to deliver and roles to be played by each team member. ere or ,
the right perimeters on estimat ing timings and shaping the right team . AgaIn, you shouldn' t force a process
· •
project rather make sure the process suits the requirements of the project . After th th st
is, e ne~ ep ,s to
budget as it is important to put costs against each and every Item that you have agreed upon . At th15 stage, you
need a detailed breakdown of t imings but more an ove.rvlew of phases of time .

5. Setting Measures of Success

The success of a project should regularly be measured so t hat you can know and understand the progress
bottleneck, if any to be ;,...orked out . An on the track project gives the necessary confidence to the team and
stakeholders which is possible only through regular review. Therefore, you should create some measurement
to review . Consider areas such as :
Meeting the core deliverables
Client satisfaction
Team satisfaction
Adherence to the set t imin gs
Adherenc e to the budgetary constraints

2.2.2 The Process of Initiating a Project

1. Business Case

The first step is establishing a busln_ess case in which focus is given on explai ning the reasons for _starting
project. The business case describes the availability of financia l a!"'d other resources to support the busi
need. A business case considers the requirements of the project and justifies how it fits the site and risk of
proposal. The stru~ure cif a business case re111ains the same irrespective of the project types. A business ·
basically outlines the project relevance comprehensively describing Its need and the likely impact . It does
reveal the technical aspect of the proposed project .
While describ ing the business case care should be taken to make It easy to understand , clear, logical
relevant . The key aspects need to be Identifie d, measured and ju stified . There also must be accountability
comm itment for the delivery of the· project outcomes and costs involved in the project '
Follow ing should be the contents of a business case :
o Preface
o Table of contents
o Executive contents of the project
o Business drivers , scope of the project and financials aspect
o Business analysis such as the costs and benefits , risk
0 Conclusion f ' .J

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sf Project Management(MU)
2-5 InitiatingProject
2. Feaslblllty Study

- After the business case Is pre d .

pare and approved the next step Is to do a feasibilitystudy. It describes whether it
Is feasible to undertake thl
s project and what are the potential solutionsto the opportunity or business problem
that the project Is propo d t O h
se address. It guides you and helps you take a decision on what should be t e
approach whlle undertakingthe project.
- Through a feaslbllltyst d d ts
u Y you can not only define the opportunitybut also prepare the supporting owmen
and tell what Is required t 0 Prob ble
· compIete this project successfully. It also Identifiesother possible solutions. a
risks and Issues are also Id lfl d
ent ie • The study also gives the proposedsolutlonto each problem.
3, Project Charter

- The next step is to prepare a project charter. It describesthe purpose for the project and its proposed structures
and execution. A project charter also sets the vision, objectives, scope and deliverablesof the project In details. It
identifiesand describesthe responsibilitiesof the project teamand the stakeholders.
- At this stage, the project charter Is able to present the project In structurallyorganized,well documented form
which mentlo~sthe project plan and list all risks, Issues and assumptions.
Building Team

- The next step is buildingof a team as a projectcannot be Initiated without an effectiveteam. Therefore, th is step
first prepares job descriptionsfor the people who will play their role in Implementing the project plan. This
includestheir role and responsibilities.
- A project team is built by first by defining the roles for each member as dearly as possible to keep the work
flowing smoothly. Next comes the responsibilitiesthat come with the role. Authorityassociated with each role is
also clearlydescribed.
- Sometimesa detailed organizationalchart Is built by listingthe skills and experience needed for each position. It
is also helpful In defining· different qualifications r_equired for each position. The chart also indudes the
performance criteria,salaryand'worklng conditions.

Project Office

- A project office is a place In the office·or work site where the project man~ger and support staff sit and woric
together during the project. It Is generally equipped with the communications infrastructure and other
technologyneeded for the project.
- The location of the project office must be near to the actual project work site. It should be large enough to house
all the people associatedwith the project.

Periodical review

- Periodicalreview of each step that was Identifiedduringthe Initiationphase must be done to ensure that there is
nothing that goes against the project as It Is always possibleto make mistakes and this Is especially true with the
project Initiationphase as it Is so criticalto the success of the project. Project periodic review is an essential part
of the project management.
- Periodicalreview also looks at the risks that were earlier Identifiedand see if any have occurred, and if so how

. .......
they were controlledand resolved. At times, changes are made to a project. A review evaluates if these changes
were done correctlyand whether they have kept the project on track.

,..
.... 11, -1 0 111

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 V' Project Management (MU) 2-6

2.3 Strategic Project Selection

- Every organization has llmlted resources. Time, financing, human resourceS, materlal, and skllls are Just a few of th
th
top Items on a long 11st of constrained organizational resources . The conSt ralnts of e org~nlzatlon force choices in alt
areas of operation, Including project selectlon. There slmply Isn't enough of what Is needed to go around and
undertake every potential project . .
- Moreover, not every project Is a good Idea. In the best of cases, we might have seve ral good projects to Select from. By ·
applying a structured approach to project selectlon, project managers can Increase th e chances of selecting P0tent\a\ly
successful projects with the most positive organizatlonal Impacts.
- Therefore, the goal should always be to select projects with the maximum benefits to the organization. By having a
number of different selection tools and technlq.ues at our disposal, we will be In a better position to select the b '
projects to undertake.

2.3.1 Techniques used for Strategic Project Selection .

There are lots of ways to decide on which projects to select. Following are some basic techniques used for pick
projects to undertake . All of the methods listed here can be used alone, or In combination with other techniques .

2.3.1(a) Financial Analysis

- On many occasions, the project selection decision is taken on the basis of Just one factor i.e. financial benefits .
situations, projects are selected on the basis of the project opportunity that gives the maximum financial benefit to th
organization.
- Such decisions are never easy. Fortunately these days, several financial analysis tools are used to determine
financial benefits a project can provide. Two of the most frequently used t9ols are Returns on Investment (ROI)
Payback Period.
- ROI measures the returns produced by a project with respect to the amount of capital Invested. ROI is calculated
the following equation :
ROI= (Gain from Investment - Investment Cost)/ Investment Cost
- Therefore, the project that providesthe highest returns on Investment is selected .
- The payback period of a project is a tool that calculates the time period a project will take in order to recover
amount of capital Invested.The calculation for payback period• Is done by dividing the amount .of cap·t1 aI inve sted In
project by the Income generated
.
by the project per period of time (months , years , etc • )• us·n b k rt· d
1 g pay ac pe o
project with the shortest time to recover Investedcapital can be selected . · •
In many cases , the selection of a project Is also done by the measurement of th .
e opportunity cost. Opportunity
the measurement of the cost that an organization pays for not select! th h
. . ng e ot er projects . A decision on
proJect Is to be selected Is based on financial analysis alone It provld h b
· es t e est possible outco b d on
specific financial needs and objectives of the organization . me ase

2.3.1(b) Strategic Objectives Analysis

- Projects generally play a very Important role In achlevln th

. 8 e strategic obje ti f
organization has clearly defined strategic objectives I c ves O an organization. Therefo~
. , pro,ects are then set ct d 1 ·
organization achieve the strategic objectives. e e n such a way that they hefp ·fu

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 project Management (MU) 2-7 Initiating Project

·ng the project selection care should be taken to see how well a project can support organizational strategy. For
ouri
exarnple, if a service based organization sets Its mission to provide superior customer service, then the projects
ed should be such that It enhances customer service. For an organization that focuses solely on Innovation to
I ct
see
. competitive advantage, projects that support research and development should be picked as a better option
gain

. . (c) Problem Solving Nature

231
Organizations, at t imes, have specific problematic conditions which require to be Improved . In such situatio ns,
• r projects that solves the problem and Improves the conditions could be chosen. This concept of using projects ls
part1cu1a
many organizations to solve Internal problems. In such cases, the reasons for selecting a specific project Is to
used bY
e hindranceand Impediment s for smooth and efficient , organizational operations .
.
2.J.1(d) Opportunity Analysis
New opportunities are found In plenty all the time . It Is up to the organlzatlonal and their management to lookout for
them to take advantage of. Opportu nities are required to be Identified to achieve different organizational goals which
could be increasing profits, entering new markets or developing new products and services. Though, It Is easier said than
done as identified opportun ities rarely take advantage of them selves. In many cases, projects are designed, selected, and
Implementedspecifically to take advantage of opportunities Identified by organizational leadership.

2.3.1(e) Requirements Analysis

Businessenvironment, today, is ever changing. lndustrlal, regulatory, and market conditions keep changing resulting
In the creation of new requirements. Organizations must keep a close eye on the changing requirements and fulfill them
with the right projects. People should be assigned with the specific job of tracking all the changes and looking for an
opportunity for t he organization to come up with a ~lutlon .

2.3.1(f) Time Frame Analysis

While selecting a project we must look at the time frame as it is an important point of consideration In the selection of
a project. It is done in two ways; analyzing the time of implementation and t ota l project life cycle time.

Time required in the Implementatio n of the proj ect compon ents is important to analyze part icularty when significant
portions of the project are to be implemented in a time bound manner. Analysis should be done to find out whether
the organizational resources required for a project are available at the time of project planning. Project life cycle time
is the total time involved in the completion of the project starting from selection and initiation to final dosing and
shut-down. Time frame becomes more important if there Is a limited period of time available for the undertaking of a
project.

2.3.1(g) Weighted Scoring Model

Weighted scoring models are project selection analysis tools . They are useful when the decision on project selection Is
taken on the basis of not one, but several factors . In such a case, a weighted scoring model (Also called Decision
Matrix) is considered one of the best tools to examine, rate, and select a project among multiple available options.

- A weighted scoring model Is developed by determ ining the factor s which are considered Important to an organ~atlon
in project selection. Those factors are the n assigned a relative level of Importance or value (weight) . The factors are
then examined and rated for each available project opt ion under consideration with the rating multiplied by the
relative weight of the factor. The proj ect with the highest total score Is the one that should be selected

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 • Project Management (MU) 2-8 lnltlati
2.4 Project Selection Models

Project selection Is an Important function of businessorganizations. A wrong selection of project may ge~erat~·
which Is undesirable. Therefore, having a thorough understanding of project selectlon models becomes very Import~
Following are the two Important types of project selectlon models.
1. Non-Numeric

2. Numeric Project Selectlon Models

2.4.1 Non-Numeric Project Selection Models

Non - Numeric project selection models are described as follows :

1. The Sacred Cow
2. The Operating Necessity
3. The Competitive Necessity
4. The Product Line Extension
5. Comparative Benefit Model
6. Q-Sort Model

1. The Sacred Cow

This is a commonly used method in which the senior members of the organization suggest a project out of their o
I
I understanding and expertise. Most' of the projects using this method are those that ar~ initiated out of an appare
opportunity available or taking chance of an un~established idea for a new product . The project is created as
immediate result of this approach in which about whatever the boss proposes becomes the project.
The sacrednessof such project reflects the fact that it generally c;ntlnues till It fin•is~es or until the senior declares
failure of the idea & ends it.

2. The Operating Necessity

Sometimes, the necessity of a project arises simply because it i~ capab!~ of either ·enha,:icing the operating effid
of the organization or solving a serious problem that's troubling the organization . For example, if a plant is threat
by the flood then it is not much complex and effortful to start a project for developing a protective des~ M
potential projects are evaluated for sele~ion using this criterion of project selection. Questions such as t~e esti
cost and its comparative effectiveness come In· for analysis In front of the organization. The project cost Is gene
analyzed to find out whether these ~ould be maintained as minimum and compatible with the success of the proj
• I , •

3. The Competitive Necessity

Organization always like to stay ahead In competition and this desire becomes the basis for making decision to
out a project. Although, preference Is generally given to the project whose needs Is felt b th .
. • V
e operating nee
competitive necessity with regard to Investment. Generally both types of project I ctl . -
, se e on models are con
quite useful & effective as compared to others. ·

4. The Product Line Extension

In this selection model called the product fine extension a project I iti d ·
.
' s In ate for the d · I & di~n
· 'b
new products and Is evaluated on the basis of how much It It th eve opment
5 u s e company's cu t d .. h . ,
fortifies a weak tine, fills a gap, or enhance the fine.. rren pro uct lines, ow

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 1 project Management (MU) 2-9 Initiating Project

On many occasions, evaluatlon of profltablllty Is not done as the decision makers take decisions on the basis of their
belief about the probable Influence of the addition of the new product to the llne over the entire performance of
system-

comparadv• Benefit Model

_ This model Is used when there are several projects up for consideration by the organization. The selectlon Is done
on the basis of their comparative studies and only that project is selected which can provide the ma,rlmum
benefits to the company. Though, comparing various projects Is not an easy task as there are chances of
committ ing mistakes.
sometimes, this comparison Is done Just on the basis the perception of the selection committee members that
certain projects will benefit the company more than the others even when they fall to suitably specify or measure
the proposed benefit.
_ For all such projects, Instead of a forma l model, the concept of comparative benefits Is considered beneficial for
the selection decisions. All the considered projects with positive recommendations are examined by the senior
management of the funding organization. Efforts are then made to develop a plan that can effectively suit the
objectives & budgets of the organization.

Q-Sort Model
_ This is the one of the most simple and straightforward techniques used for selecting projects. In this model, the
available project for undertaking are first divided into three groups according to their relatfve merits. They are
Good, Fair and Poor.

- The main group is further subdivi~ed into the two types · fair-minus and fair-plus. The projects within each type
are ranked from best to worst. Again relat ive merit of the respective projects provides the basis for determining
thi s order. Specific criterio n is used by the rater to rank each project . Sometimes, he just uses his general entire
judgment.

- At times, one person holds the responsibil ity for carrying out the evaluation & selection process of the project.
Sometimes, a selection committee is formed to perform the selection process. The ranking of the projects differ
only to some degree from rater to. rater. Finally the projects are selected on the order of preference, though
financial basis becomes the most important aiterion before final selection .

Numeric Project Selection Models

These,.. models use profitability as the sole measurement criterion for selection of a project . Majority of the
arpnizations use different numerk types of project selection models. Following are some of numeric models for project
selection.
1. Payback Period
2. Accounting Rate of Return
3. Break Even Analysis
• 4. Cost benefit Analysls
5. Net Present Value (NPV)
6. Internal Rate of Return (IRR) • l

Payback Period Method

- This method Is a simple non-discounted factor method. It calculates the time period that will be requl,:ed for the
project to generate enough returns to recov~r the Initial Investment. It focuses on measuring the cash Inflows,

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 Project Management(MU) 2-10
the project without looklng at the time value of
economic life of the project and the Investment made In capacity within a fixed time ·
• 1based on Its earnIng P
This method is used to select a project proposa be done. The results also help identify
simple calculations, selection or rejection of the project can ne the accuracy of selection at times
involved. As the method doesn't consider the time value of mo Y,
difficult to ascertain. ·
th t
- Th~ payback period Is the time period expected to be taken by the project before e lnveS mdent wlll be
ts business managers an Investors
In the form of Income. When comparing two or more lnvestmen '
t with longer PBP are usually assocl
compare the projects to see which one has the shorter PBP. Proj ec .s
higher risk.

2. Accounting Rate of Return Method (ARR)

- This method is a better method as it overcomes the disadvantage~of the payback period meth od. Here,
of return is expressedas a percentage of the earnings of the Investment In a particular project . This method
·m selecting
· a proiect
· ·
by using the criteria ·
that a proiect th at h as higher Accounting rate of return . th
minimum rate of returns set by the management will be considered and tho se below the predetermined
returns are rejected.
- ARR takes into account the whole economic life of a project which helps in getting a better means of compa
Howe~er, even this method ignores time value of money and doesn't consider the le~gth of life of the proj

3. Break-Even Analysis

- Break-even analysis is another numeric financial tool used frequently for project selection. It is used to deter
the stage at which your project, a new service or a product, will be profitable .
- In other word s, it's a financial calculation done to determine the number of products or services a comp
should sell to cover its costs. Break-even is defined as a situation where your income and expenses match
thus you are neither making money nor losing money. You have enough income to recover all your costs.
- This method is useful in understanding the relationshlp between the variable cost, fixed cost and revenue . As
this analysis it has been observed that an organization with low fixed costs will have a low break-even po
sale. For an example, a company has a fixed cost of Rs.O (zero) will automatically have brok en even upon the
sale of its product. · ·

Usage of Break-evenAnalysls

(I) Startinga new project : For selecting every new project It is advisable to conduct a break-even analysis. Not
it helps you in deciding, whether the project idea Is viable, but It will force you to be realistic about the
will also guide you on the pricing strategy.

(ii) Laun~lng a_new p~oduct : An existing business planning to launch a new product should do a break
analysis particularly 1f such a product is going to add a significant expenditure.

(Ill) Changingthe business model : It Is also useful to an organlzatlo hi h

n w c P1ans to change Its business m
switching from wholesale business to retail business As th
• e cost Incurred to the b I Id
considerably this method helps to figure out how much th us ness cou
e seIIIng prices need to change too .
4. Cost benefit analysis

"" Cost benefit analysis is another numeric meth d

o used to determine th I .
met h o d organizations analyze the profltab'lity
1
f e v ability of a new project Thro
0 projects It Is I · •
h
assets. T is model was built by Identify! h · a so used to determine th i In
. ng t e benefits of an action II I
e va ue or .
as we as the associated co

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 project Management(MU) 2-11 lnitiatlngProject

subtracting the costs from benefits. When completed, a cost benefit analysis gives concrete results that can be
used to develop reasonableconclusions around the feaslblllty and/or advlsabllltyof a decisionor situation.
_ cost benefit analysis In project management Is one more tool In your toolbox. This has been devised to evaluate
the cost versus the beneflts In your project proposal. It beginswith a 11st.
_ The list of project expense Is prepared on one side and the benefits to be received after successfullyexecuting
the project is listed on the other side. Based on this you can calculatethe returns on Investment (ROI), Internal
rate of return (IRR), net present·value (NPV) and the payback period.
_ The difference between the cost and the benefits determineswhether action ls required to be taken or not. In
most cases, if the cost is SO percent of the benefits and the payback period is not more than a year the action is
worth taking.

uses of Cost-BenefitAnalysis

(i) To determine the feasibility of a project : This analysis helps the managementof an organization in determining
whether undertakingthe project will give benefits or not as nobody wants to incur losses In business. When a
huge sum of money is invested in a project or initiative, It should at least break even or recover the cost. The
costs and benefits are identified and discounted to present value to ascertainthe viability.
(ii) To help compare projects : As you have today so many choices for Investment there must be a basis for selecting
the best alternative. Cost-benefit analysis Is quite useful to pick through the available options. This model helps
businesses to rank the projects accordingto their order of merit and choose the one that Is the most profitable.
(iii) EvaluatingOpportunity Cost : Cost-benefit analysis is a useful tool for comparing and selecting the projects and
selecti ng best option particularly when the resources are finite but investment opportunities are many. However,
while choosingthe most viable project, it is also important to know the Opportunity Cost which is the cost of the
·next best alternative foregone. It helps businesses to identify the benefits that could have arisen if the other
option was chosen.
(iv) Sensit.lvityAnalysis : Sensitivity analysis is a useful tool for improving the results of Cost-benefit analysis and is
mainly used when there ls no clarity over the discount rate. In thi s condition, the discount rate and the horizon
value are changedto test the sensitivity of the Cost-BenefitAnalysismodel.

Net Present Value (NPV) Method

- This is another widely used method for evaluating the returns t hat you can get out of an Investment in a project.
In this technique the cash inflow that is expected at different periods of tim e ·is discounted at a particular rate.
The present values of the cash Inflow are compared to the original Investment. If the difference between them Is
positive then it is accepted or otherwise rejected. This method considers the time value of mon~ and is
consistent with the objective of maximizing profits for the owners. .
- Net PresentValue is calculatedby subtracting the present value of cash outflows from the present value of cash
inflows.The present value defineswhat wlll be the worth of the future sum of money as of today.
- While Investingin certain Investments or projects If It producespositive NPV then you can accept the project as
this will show the additional value to your wealth.
- And in case of negative NPVyou should not accept the project,

Internal Rate of Return (I~-~) . . .,':,,. :··, ·: :: '. . ·. . . . : · ;i::· .·

RR) Is a· dlsco~ntlng cash flow technique. It gives
The internal rate of r~turn (I_ arate of return as expectedto be
earned by a· project. It gives· a dlscou.nted rate wh~,~-the total of Initial cash outlay and discounted cash Inflows
are equal to zero. In other words, It Is the discounting rate at which the n~t present value (NPV) ls equal to zero.

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 2-12
ProjectManagement(MU) h ame formula as In NPV. Software like
we use t es ,
for the computation. of the Internal rate of return,there Is a fl na nclal function that uses cash flows -
I
Exc~I Is also available to calculate IRR. In Exce, '
intervalsfor calculation.
IRR = (cash Flows)/(l+r)' • lnltlal Investment

Where·
Cash Flows = Cash flows In the time period
r = Discount rate

I = Time period t d the present value of future cash

i h the cost of lnvestmen an
- An ideal rate of return Is the rate at wh c bl ject In other words, at this rate tfJa
match. A project that can achieve the ideal return Is a proflta e pro · . ·
king the project attractive .
outflowsand the present value of inflows are equa,I ma

2.5 _Project Portfolio Process

1 ,. tli" · t Jiufpotent
,. . . . . .ial. ·of-all
• p~ojects·_u.n~eiji_:
· · -· • • · 1 •
- The projectportfolio pro<:ess is a method which 1s used to• ·_max1m~z.~ ; e p_u,,_ • .
an organizationat a given time, subjectto limited resourc~C?~straints'.. . ., . .,, _.
. . " .. , ,· ,..... .,--~--·'' . _..,,,. ~----- br h "an eiwironm"·
- Before beginning the project portfolio. managem1fnt - efforts,, it )(J,y.i porta_nt · ~_0%esta •~. · · .- .·, - . -- - , .
understandingand cooperationamong key ~t:!_cision rr1a~irsJ~'.Y.!).~t~~~ni!~~on,. ·
The project portfolio process _may irichi~e.tern,ina_ting-~u,_rr~r\.t;ifo>ie.c:ts.. t~_at ~n.i.~Y..:.~i'~~~C~JJful.a6.<Lti_'!l¢1y'in~~=;
projectsthat have·a larger _econ_o,i!ii:_or~ira!t!gic,i~..,p~~::o.~·;y~~ifo1:1~-ratio~_s_: .
During the project_portfolio ~aiiagementq,r_oce~s,__ jJ.l:!:i As.t !~~:~;J j,,_oney;. ¢~~!OY_~e: -~f't?dUC!ivitv, .
technologyare alloc~tedto those'proje~ itiarco nJr.ib~·te 'th~,'m:ost ;t9jhe,~~r:npanV:s•i:frofitab!lit•i .:.Before_consfd~-
any specificprojects, a fist of priorities is·devei_op~d.by \_V~ich·_:each dn_e 1sj°udged_i
- The organization continuaily mofiltorsthe :·r,iiority list an'cL adapts,.if:'to·; the ,changing s_trategic.."goafs: and . ,:-~--.
business di mates. ltem_s. by: whi~h_;t~ .pri_~rlti~e:thc/ proj~cts /iih;·1riiiu.de
t6s"t;;~dnirib.utloh'. to -~eve:u~ -:rri~::;:..p
0

impact,time_frames, and achievementof specitib"g~ali: ... " -· .. ..... ... .. . . --- ... .. .. .. - -- . -- . .. - . . I •• • -- ---
- - . . .
- Proj~ctpo~olio ~rocessha_s becom.~ ak,ey c.o_m'p~~ent_in_o,rg~_ni~.!tio'h_s, a¥ th~v
lo~k) c( etj_t-~!'C~-~h~l{ a~ilityjct:'
multiplepro1ectsm _an efficrentand .effect,ive\vay;_ Project p'ortfcilio'managerne"nf
it d fi h . . . ,.. . •· .,. ... . . . . . . .. .
process-'is'lffe
.
icf'y (o ·,,, <._'.\• ,~-, -~-.::~
success .
_e nes. ow.an ~rga~ization approaches projec;tP,i'iorit'!zaticl'n,/ ~.s~~rce''al!o1:ation{budget1ng;;sch,e~ulln . :i 'i,,;-;":.;;
ma1orproJectcomponents: · .. .. · ·· & ".~· --
- The goal of ProjectPortfolioProcessis to find the best possible comb· ti f ·
. b' . · ma on o resources to help an ent •
its o Ject,ves, and it takes into account such factors as exter I k erpnse
environment,and government regulations. na mar et conditions, customer demands ; ·comp .
- The·· need for Project Portfolio Process 15· driven' by the 't ct h . , ... , . _ . '(. . - ·•
completed successfully. But often the ·resources , d d t aU proje~s /re~u!re 'fund,ng ~ti_~~f ~ri'd_l't ": -
. , .f nee e are In limited suppl At h " - · · · ·· · ..., ' · "
proJects are o equal value to an organization,As a I· . y. t e same .~im'e/it'ftl~a1i'tlit! '
to ensure th at t he most strategicallyImport t resu t, stakeholder$
.
need a • .., · --··--'
·
way to ·manage p •;;.~~ ·'-"1~;.i"~,,-. "'~'"
an projects will receive t~ ,. ·· · . . roJ~~ ~~!ll:f...,..
- To ensure success with a Project Portfoliop . e attentionand resourcestcf e·'f{~;;f " .,.
rocess, organizations can follow th f . . ,.Jl~,~~ -~...,
1. IdentifyBusinessGoals and Strategy e allowing steps :

·..,. The first step toward effective P J

b . ro ect Portfolio Pr ·. ,.
usrness strategy to achieve th ocess Is to Identify
- ose goals This will h organization I ·
a po, uo1lo should align with the . elp companies d I a goa1s and clearly d
. organlzat!on's strategic visl~n. eve op an actl~n plan. Each of th~,P

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j project Management(MU) 2· 13 . lnill1tlngProJ«t

_ A common pltf.lll occurs when organizationsldl!ntlfy their buslnes1 str:itl!ttos but lo, ., 1tp,ht of the lndlvfdu:il
projects. To avoid this, organizations should tAkfl tho time to Identify the business drategy 11i well a, evaluate
where projects stand In relatlon to buslnl!SSobjective~.
_ This involves taking an Inventoryof all current projects and resources, lncludlnflevalu.ttlngthtt current proJeruIn
the plpellne for redundancies, stalled projects and other potential aren~ for co1t siivlngs, and Identifying skllll!d
employeesand their current and future avallnbllltyto find out who' s av11llableto wor~ on hl,tl,-,valueprojects.

Establisha Project ManagementOffice (PMO)

_ companies should create a business unit to oversee Project Portfolio Process and coordinate efforu across the
whole organization. In many cases this unit Is referred to as a PMO,
_ Many organizations might already have Informal teams that support managers and projects. But for Project
Portfolio Process efforts to be successful, a team needs to be given recognition and support from senior
executives. Without this, the system of checks and balances wlll not work,

Develop Project Evaluation Ccrfterla

The PMO can'work with business leaders to create project evaluationcriteria, which will help the organizationreview,
evaluate, and authorize projectsto ensurethat they align with strategicobjectivesof the enterprise.
Amongthe questionsto ask when evaluatingnew project Initiativesare :
- Whether the project drives businessgoals
What the expectedtangibleoutcomeswl_ll be
Whetherthe outcomescan be achieved by a project alreadyunderway
- What the project' s risk-return profile is
- What resources are needed to completethe projects

Developa Risk ManagementStrategy

- Evaluatingthe risk-returnprofiles for projectsIs a key step In the review pha~e. But developingan organizational
risk managementstrategyIs included as a best practice by Itself because It's so vital to Project Portfolio Process
success.
- Companies need to evaluate each project's inherent and potential risks to the overall portfolio, rather than just
comparing project Initiatives side-by-side. It's Important to conduct risk assessments several times over the
course of a project's llfecyde, because this enables project managersto keep the PMO and stakeholdersup-to-
date on any changes. Stakeholders, In turn, can weigh new Initiatives against the overall portfolio more
accurately.

Invest in a Project Portfolio Process Solutlon

- Finally, companies need to deploy a Project Portfolio Process solution that can lncre~se cohesion and vlslblllty
·into their processes.
- These tools can help create' a hlstorlcal project archive, which business leaders can draw upon wh~ they make
future Investment decisions. Organizationsshould thoroughly evaluate products before buying them, lndudlng
readingreviews of Project Portfolio Process platforms and schedulingproduct demonstrations. ·
"' Project Portfolio Process platforms can Identify projects that do not warrant Investmentand provide clarity Into
projects at everv level, from objectivesto cost. They can provide strategic Insight and visibility Into the most
important projects that make sense for an organization,prioritize the most valuable work, and hef deliver p
P<0jectInitiatives on time and on budget.

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 ,0, Project Management (MU) 2-14
2 ·6 Project Sponsor
A Project sponsor Is a person or group that provides resources and support for th e project , program or p0
accountable for enabling its success.
The project sponsor Is a very Important part of the project management organizational chart. In fact, e_veryPr
a sponsor. The project sponsor Is one level above the project manager.
They do not manage the day to day operations of the project btit ensure the resources are in place, pr
project and hold overall responslbllity for the project's success.
They represent the business side of the project, They are generally Involved since the time the project is eon
advocate for its Inception even before a project manager was assigned.
Here are some examples :
(i) For a highway construction project, the project sponsor Is employed by the state. In contrast, the
manager is employed by the construction company and submits project updates and requests funding cha
the project sponsor.
(ii) For a house construction project, the project sponsor Is likely employed by the house building company~
are responsible for multiple house building projects, or for the success of the company on some I
contrast, the project manager is responsible for the day to day operations and scheduling of a house bu
project.
(iii) For an IT. project, the project sponsor might be the Chief Information Officer of the company. They r
updates and approve project changes from and to the project manager who is responsible for the immediate
to day project work.
' I

2.6.1 Roles and Responsibilities

The project sponsor generally has the following roles

Promoti~n : They attempt to keep the project at the highest priority within the organization by promoting them.
Authorization : They authorize the project and assign work to the project manager.
Funding : They are responsible for ensuring that funding_is in place and approve changes to the project budget.
Approving: They approve the project management plan and are kept aware of how the project is managed.
Scoping : They are generally responsible for determining the _initial project scope although the project man
ultimately respon sible for the official project scope within the project management plan.
Project Olarter : This document officially creates the project and assigns the project manager.
the project sponsor's responsibility.
Informing : They receive project status updates from the project manager and disseminate the information
relevant execu~ives.
Receiving : The project sponsor receives the project deliverables from the project manager, approves th
integrates them into the owner organization.
It Is important for every project to have a sponsor to :

Ensure separation of decision-making responslbllltles between project manager and projects sponsor
Ensure accountability for the realization of project benefits
Ensure oversight of the project management function
Carry out senior stakeholder management

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 . ct Management (MU) 2-15 Initiating Project
roJe
, Functions of Project Sponsor

Project promotion : One of the foremo st function s of a project sponsor Is to support and promote the importance of
the project t o relevant stakeholders. This Is necessary to 81Ve the project visibility at higher levels and to provide a
hurnan face to answer questions about why the project needs to happen.

putting forward the business case : Someone who is a project sponsor needs to be a believer In the necessity of the
project t o sincerely make the case for It. They will assist the PM and team leaders In forming the business case so that
it makes a powerful argument for why It should go ahead.
Ensuring funding and resources : The project sponsor also assists In making sure that the project has everyth ing it

needs
Determining project scope : During the Initial exploration and project planning stage, the project sponsor Is often
. called upon to contribute the ir experience of the possibilities and limitat ions for previous projects they have worked

on.
Approval and authorization for project steps : In order to streamline the reporting structures for a project, the
project sponso r will often be handed responsibility for revlewiing and approving project activities , which means that a
PM can get a quicker response than having to address executives or stakeholders.

Overseei ng project health : Although they may not have .dally interactions with the project, project sponsors receive
regular project reports so that they have an understand ing of the overall level of project health . They assist the PM in
following up on budget proposal s and maintaining the fund ing of the project . They also assist with the hiring of human
r esources and implementat ion of new techn ologies.

Informing stakeholders of progress: A very important function of the ~roject sponsor is to receive information about
the project and then transfer this to rele_
vant stakeholders. This is done to ensure continued support for the project
and to make sure all stakeholders are kept in the information loop .

Assessingfinal dellverables : At the final stage of the project th!! person who is a proj ect sponsor should review the
.fin al deliverables to sign off on them before being handed over to the client. This is a final checking process perfonned
by someone who has enough distance from the project to be able to judge it fairly .

Project Charter
Project Charter is a statement that describes the objectives ot'a project . This statement also sets out detailed project
goals, roles and responsibilities , identifies the main stakeholders, and the level of authority of a project manager . It
also acts as a guideline for future projects.

,t defines the roles and re.sponsibllities of the participants and outlines the objectives and goals of the project. The
.charter also identifies the main stakeholders and defines the authority of the project manager.

Roles of Project Charter

Following are the roles of a Project Charter :

It documents the reasons for undertaking the project .

ft outlines the objectives and the constraints faced by the project .

It provides solutions to the problem In hand .

It Identifies the main stakeholders of the project ,

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 ,;, Project Management (MU) 2-16
2· 7 ·2 Benefits of Project Charter

Following are the prominent beneflts of Project Charter for a project:

It improves and paves way for good customer relatlonshlps.
P~ject Charter also works as a tool that Improves project management processes.
Regional and headquarter communications can also be Improved to a greater extent
By having a project charter, project sponsorship can also be gained .
Proj~ Oiarter recognizes senior management roles.
Altows progression, which Is aimed at attaining Industry best practices .

2.7.3 Contents of Project Charter

Following are the contents of Project Charter :

It describes the reasons for undertaking the project so that everyone is clear about the purpose of the project.
It describes the objectives and constraints of the project. If you don't have a clear target your project ls going to
the mane.
It outlines the proposed solution to the constraints to the project.
It also gives the details of the main stakeholders in the project . It's always crucial to note the stakeholders In
project for they're the ones who you will be reporting to and, in a sense, managing their expectation .
It gives the details of the in-scope and out-of-scope items. Scope is the boundaries of your project, such as Its
date and when its finish dates . The in-scop~ Items lay out the step-by-step process of the project
It also analyzes and describes the potential risks in the project. It is i_~portant to identify all risks that could arise in
project so you're not taken by surprise. This should be followed up by a risk register and risk managementplan in
project plan, where you detail how you will resolve those risks.
It outfines the project benefits . A good way to sell the project is to have a sense of what good the project will
sponsors and stakeholders . Project Charter figures out what those benefits are and list them .
It determines the ~roject costs. While you will go Into greater detail when you create the project budget, you
rough figure on what you expect the budget for the project to be and who will have spending authority .

2.7.4 Usage of Project Charter

The following are three main uses of the document:

1. You need rt to authorize your project. This Is the document that sells the project to your stakeholders and
broadly what their return in Investment will be. It's like ~levator pitch, so It has to sell the project.

2. It serves as a primary sales document. When you present this to the stakeholders they now have a
dist.ribute or present when approached about other projects, so they can focus their resources where they're
3. This is a document that stays with you throughout the life cycle of the project . You refer to it through~ut,
meetings or to assist with scope management. The charter acts llke a roadmap.

Tips on Writing a Project ManagementCharter

Writing a project charter Is a process which also requires good experience and
expert 1se. Here are some
may help you In preparing a good project charter. .

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, . ct Management(MU) 2-17 lnitltting Project
--
ProJe

Vision
ou have the vision clear, then you can break It down Into more practlcal blU. It must be supported by the
once Y
following :
Objective: List three to five objectivesof the project - specific,measurable, achievable, reallstlc and time bound:
_ scope : Outllne the formal boundaries of the project by describing how the buslnes, may change or alter by

-I
delivery of your project, also note what's relevant to the project and what Is not. This Is how you m1lntaln bftter
control of the project.
oe11verables : Describe each of the dellverables the project Is tasked to produce. Once yotlve got all of them
down, you've got a foothold on your charter and are ready to move on.

Organize
When you're building a structure for your charter there are four subsets you need to Identify. This Is done by listing
the following :
_ customers/End Users : To complete this 11st, ask yourself: Who is a customer and/or end user In the context of
this project? Is there a specific individual or entity responsiblefor acceptingthe deliverablesof the project?
_ stakeholders : As noted earlier, identifying the stakeholders of the project is crucial. They are the person or
entity within or outside of the project with a specifickey Interest in that project. It might be a financial controller
overseeing costs or the CEO, but whoever it Is they'll have a slightly different focus depending on their role.
_ Roles : You n·eed to assign the key roles and responsibilities to those involved in delivering the project, from the
project sponsor, project board and project manager. After each entry write a short summary defining their role
and what their responsibilitiesare In the project.
- Structure : Now you need to defi'ne the lines of reporting between these various roles In the project. Use a
project organization chart to do this. It diagrams the structure of an organization and the relationships and roles
of those involved in the project.

Implementation

You have a vision and have organizedthe various parts of your project. Now you have to develop a plan to implement
them. There are four parts to this :
- Plan : To implement your project as stated you need an Implementation plan. This is a way to develop an
atmosphereof confidencefor your customersand stakeholdersby fisting the phases, activities and timeframes of
the project's life cycle. Gantt charts are the traditional planning tool for projects. They tum your tasks and
deadlinesInto visual timelines.
- Milestones : Milestones mark major phases In the project and collect smaller tasks Into bigger chunks of wort.
The project should only have a few of them, that's why they're milestones, but they are an Important way to
acknowledgethe completion of a key dellverable.
- Dependencies: List all key dependenciesand what their Importance Is to the project. These are tasks or activities
that are linked to one another, as they wlll Impact the project during Its life cycle.
- Resource Plan : What resources are Involved In the project? Break down this fist into labor, equipment and
materials. This is how you will know what you need before you need It, and you wlll be able to estimate your
budget more accurately. As the project progresses, and changes are Introduced, you will need to adapt your
resource plan. ProJectManager.com features workload and resource management tools that let you qulddy see
everyon~'s workload, so you can reassign tasks as necessary. This keeps everyone from being over or under
worked.

• TtdllaNIWei
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 2-18
ProjectManagement(MU
4. Risk, Issues & Budget
1 1 ks and Issues that can derail a project This I d
No charter Is complete without collectlng the potentla r s · • ' n u
assumptions and constraintsrelated to th e project. j ct Risk Is not always negative as th ·
t happen In a pro e . , ere Is sucti i
A risk Is a potentialIssue that may or may no
Id are for that as wel1.
thing as ~ositlverisk, and you shou prep Uy a risk Is a future threat whil
d In the project,easIca , e an Issue ls
An Issue Is somethingthat has alreadyoccurre d ventualitles when creating a project m a
present threat, but you have to be prepared for any an aII e anagement
h
ketch out a rough figure on ow much lt w\11 cost to deli'le~
- Finally, with all the following Information,you can s t your charter and once it's app d
the project within the tlmeframe you're allowed. Then you presen ' · rove and
signed, the real work begins.

2.8 Project Proposal

. · r where the aim Is to persuade
A project proposalIs a document used by business organiza ions .
a sponsor to agree
. . .
• • • 1 d t service.. You do this by 1dentlfymgpm points
the proposalof investing money mt_o producinga part1cu ar pro uc or
providingyour sponsorthe right solution to alleviatethose pain points.

2.8.1 Purpose of a Project Proposal

- Essentially,a project proposal aims to streamline the business process between you as a solution provider a
sponsor by servingthe dual purpose of acting as a source of information as well as a sales pitch aimed at convin
your sponsor why they should invest In what you have to offer.
- There are two types of project proposals: solicitedand unsolicited.
- Solicited project proposals are requested by a prospective client. While with unsolicited project proposals,
approa~ a potential sponsor with a proposal, even if they don't request one, to gain their business .
- It's a common misconceptionthat project proposals and business proposal are the same. The project proposal's al
to initiate a project in order to solve an existingproblem or offer a unique product while a business proposa\ ai
sell product or service. Instead of assistingyour search for investors to fund your business, a proposal helps you
new customers.

2.8.1(a) How to Write a Project Proposal?

- Title page : Use the title page to introduce yourself and your project Be sure to II d
· nc u e your name your c:o
name, the date you submitted the proposal, and the name of the sponso • d. Id , .' .
r or m IV ua 1you re subm1ttmg the p
to.
Table of contents: A table of contents will let your sponsor kn ·
ow exact 1y what w\11 be c d. h
If you're sending your proposal electronically Include a
11 k bl overe in t e proiectp
. , c c a e table of content th .
sections of your proposal for easy reading and navigation. s at will iump .to the d
- Executivesummary : The executive summary details exact! h .
th b f 'fi
e est or a spec, 1c problem or situation. Slmlla t
Yw Yyou're sending th
e proposal and why your sol
r o a value propositl l
products or services, and how they can solve the spe lfl on, t outlines the benefits of your p
c t problems
After readl,:igyour executive summary, even. If they don' . .
of how you can help them. t read the full proposal th
' e prospect should have a

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 2-19 Initialing Project
if_ Project Management (MU)
-- t ment of the problem or need : This Is where you provide a summary of the Issue Impacting the organization. It
_ Sta e
'des you with the opportunity to show them you have a clear understandingof the needs and the problem needs
prov,
help in solving.
osed solution : Here's where you offer up a strategy for solvingthe problem. Make sure your proposed solution Is
-~
customizedto the needs so the sponsors know you've created this proposal speclflcally for them. Let them know which
deliverablesyou will provide, the methods you will use, and a tlmeframe for when they should expect them.
Qualifications: Are you qualified to solve this problem? Why should they trust you? Use this section to communicate
why you're best for the Job. Include case studies of client success stories; mention any relevant awards or
accreditations to boost your authority.
_ cost & Budget : This Is where things can get a bit tricky, as you don't want to under or over budget your product. If you
like to provide the prospecta few cost options.for their budget, Include an option table. Some proposal software offer
responsivebudgeting tables which allow a sponsor to check the products or servicesthey're interested In, and the cost
will automatically adjust.
_ Terms and conditions : This ls where you go Into details about the project timeline, pricing, and payment schedules.
It's essentially a summary of what you and the sponsors are agreeingto If they accept your proposal. Make sure you
clear the terms and conditions with your own legal team before sending the proposal to the client.

2:8.1(b) Project Proposal Tips

There'sa lot to keep in mind when writ ing a project proposal. Here are a few tips to help you out:
Keep it simple : While there's no ideal project propos~I length, focus on quality over quantity . Keep sentences short
and simple, and avoid the use of businessjargon.
- , Stay on brand : Don't be afraid to let your comp~ny'~personality to shine through in your proposal. Stay true to your
brand and show the sponsor what sets you apart from your competitors.
- Include data and visuals : Don't forget to include compelling, quantitative data. When applicable, use visuals such as
· chartsand graphsto enhance the proposal.
- Quality control : Before you send the proposal out, make sure to read and re~read it for any typos or grammatlcal ·

Effective Project Team

A Project Team is an organized group of people who are Involved In performing shared/individual tasks of the project
as well as achievingshared/individual goals and objectives for the purpose of accomplishingthe project and producing
its results.
- The team consists of the full-time and part-time human resources supposed to collaboratively work on producing the
deliverables and moving the project towards successfulcompletion.
, Successful projects are ~sually the result of careful plannlng and the talent and collaboration of a project's team
members. Projectscan't move forward without each of Its key team members.
The project team is a group of people who have a role In the project. Team members· can be grouped but each
individual has a certain role and function and thus can be assignedcertain tasks. ·
The project team fulfills these roles and functions within the time frame of the project and Is usually dismantled after
the project completion. During that time, the project team works towards the common goal of delivering ~he project's
scope within time and budget/cost.s.Each team member has certain responslbllltles based on thelr •role, functions and
assigned t~sks. , ... ·

WT1eH111111eqi
P"ill t. tU Onl

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 Pro·ect Management (MU) 2-20

- Project teams are multl-dlsclpllnary . Team members are bought together from different departments and may
experts from external companies or suppliers.For an effective team, project team organization structure Is '1tal
the Project Manager must have sufficient seniority and author ity to lead the project tea~ .
- For the duration of the project the team should report to the project manager and the organization structure of
project team should reflect the ownership of the project mana~er.
- An example project organization structure Is shown Fig. 2.9.1. The Project Manager heads th e team wlt_h a dlr
reporting line to senior management.

'" Customer

Customer~
" Project :
' Manager

'Construction
..;: manager '
t ~:

,ConstrtJCOO!l :.
: _ site ;

Fig. 2.9.1 : Project Organization S_tructure

- Organization of the p~oject . team is the responsibility of the project manager who is committed to building
productive team of professlo~als in order to guarantee that the project deliverables will be produced on sched
under budget and as per specification.

- Successful implementation of this task requires the manager to acquire, develop and lead a group of peopla who
supposedto do the project. A group of_peop~e turns into a team when every person of the group is capable of m
the following conditions :
o Understandingthe work to be done within the endeavor
o Planningfor completing the assignedactivities

o Performing tasks within the budget, timeline, and quality exp·ectations

o Reportingon issues, changes, risks, and quality concernsto the leader
o Communicating status of tasks
o Being a person who can jolntly work with others

·- ·2.9.1 Conventional Roles

Every team, regardlessof the project type, size and nature has three I d fl
' ro es e ned as conventional. These roles are:
1. Leader : A project team leader ls a person who provides leadershl d Id ·
P an gu ance to the t d k 'b
for the results of teamwork. The team leader role Involvesthe d eam an ta es respons1
eveIopment and en .
training, leading, motivation, recognition, rewarding and oth couragement of the team thro
er actIvltles that stl I .
the required tasks. · mu ate or force team members to

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j projectManagement(MU) 2-21 InitiatingPro)ect

Member : A project team member Is a person who Is InvolvedIn doln1 assigned taiks. Team membersdirectly access
2
' roJect and activelyevolve Its processes. They're subordinatedto the team leader.
the P
S. contributor : A project team contributor Is a person or an organization that partldpa1esIn teamworic but Is not
actually Involved In performing tasks and carryln1 out prcSJect team responslbllltles. Contributors help Improve the
project through giving valued suggestions, expert Judgmentand consultation. They have an Interest In the protect, so
they facilitate Its successfulcompletion.

z.g.2 Responsiblllttes and Duties

A team can be responsiblefor a variety of duties and responslbllltles, depending on the project they're Involved In.
Here're several common responsibilities and duties of a project team :
_ Gainingthe right understandingof the amount and scope of assignedwork

_ Followingthe planned assignments

_ Increasingthe details level per task and activities, If needed
completing the assigned tasks within the constraints of scope, quality, time and. cost
Informing the leaderof any issuesarisen
_ Proactively communicate and collaborate with other team members

2.9.3 Key Team Members and their Roles

Roles, responsibilities,approachesand practices significantly depend on the partiaJlar project. its goals, envtronment,
and requirements. While this is true, there are several typical roles that wori< for literally any project t~am.

Sponso ·r

Sponsor is the most senior member of a project team who has crucial responsibilities and ls aa:ountable for the
project performance. He is the key person In communication of the team with the company's management and key
stakeholders. This is also the person who provides necessary resources for project performance and approves «
rejectsthe outc~me.
Key responsibilities of a sponsorare :
· Defining project's goals and expectedoutcome;
- Providing necessary resources;
- Managingcommunication between project team and key stakeholders;
- Translatingcompany'sstrategy and vision to the team;
- Approvingor rejecting the outcome.

- Some project teams have a project steering committee that consists of the sponsor and key stakeholders. tt
representsthe Interests of parties Involved In project lmplementatlon, provides leadership In the work process,
and resolves issues escalatedby project manaaersand team leads. ·

Project Manager

Project manager Is the team member who deflnes the framework and course of the project, sets dinlltes and

......,.
milestones, defines required resources, and manages project activities. The responslbllltles of a projea 'man1geran
include a wide range of activities that depend on specificproject. In seneral, the key activities are :
,
•• U1t a t1, a1

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 Project Management(MU) 2-22

Definingproject milestonesand estimatingupcoming work scope;

- Identifyingresourcesnecessaryfor successfu1proJect Implementation;
,

- Schedulingproject activitiesand coordlnatIng team members' work;

. plementation;
Solvingproblemsand issuesthat appear in the courseof the proJect1m ,
- Managingchange;
- Monitori~gwork progressand results.
3. Team leader

In smaller projects, this role Is merged with the project manager's

. one· In larger· ones, team leader takes on te
managementresponsibilitiesthat mostIY re~uire soft skills such as · ·
- Initiatingwork processes;
Identifyingand handlingpossible.issues .in work an d team environment;
- Providingand receivingfeedback;
Coachingteam membersand maximizingtheir potential; .
Leadingby example by performingtheir share of work.
4. Team Members

A ·team member is the heart of any project. By partk:ipating in project activities and performing their
assignmen~,regular team me~bers contributeto the ~xpected outcome of the project. Alongside with that,
projectresponsibilitiesinclude :

- Oearly understandingprojectgoals and contributingto their achievements;

- Followingprojectplan and meetingdeadlines;
Escalatingissues relatedto their responsibilitiesto the team lead.

2.9.4 Qualities of Project Team Members

An effectiveprojectteam is one which possessesboth professionaland soft skills. They ensure better communl
ateamwork, and outcomeof the projectwork. followingare the key parametersto pay attention to when hiring and bu
projectteam.

PJ Skills and e,perlence: This is a very Importantcriterionfor most poslti6ns.Relevantprevious e,perience and
skills are criticalfor a smoothstart of a projectwork.

(II) Wllllnrnessto learn new skills:Some hiring e<pert advice that It might be useful to look beyond the skills need
the role. Employeesneed to be wllling to get out of their comfortzone to help the team a d I h'i
(1111 Per,onal traits : Personal traits are often a reason why a team of professionalstu · b somet ng· new.
n earn ·
are nearly as important as professional skills, e><perlence and expertise u . rns out to e dysfunctional.
.
• nw,111 ngness to help' arrogance
other types of toxic behaviourimpair teamwork. So It's better to Prevent thl . ·
team. s on the first step of building a P,
(Iv) Cultural'flt: It's a matter of fact that professionalculturesare very diff · ·
other factors. Making sure all your employeesflt In your off! erent aod depend on Industry, region a,nd
• • ce cu1ture not only • l'fl
but also preventswork environmentIssues In the future. · simp es their on-boar~lng pr
I

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 project Management(MU) 2-23 InitiatingProject

; suildlng Effective Project Team

The following five steps wlll lead to an effectiveproject team.

Establishthe Team
_ The first step is to establish the project management team. The best project teams include stakeholdersat all
levels, from executives to those Individuals at the front line. These Individuals have the Inside knowledgethat will
be critical to the success of the project.
_ The most important element about team composition Is having a team that Is effective working together.
collaboration and communication skills are two of the most critical personal skills demanded of all members

Facilitate Effective Communication

Accurate, useful, timely and credible communication Is crucial to maintaining a cohesive team environment and
achieving project success. All project Information should be communicated consistentlythroughout each stage of the
process so all team members are equally informed.
_ Open sharing of information should be encouraged and a variety of communication mediums should also be
used. Team members respond differently to written and verbal methods of communication.
_ Busy schedules and multiple projects can become obstaclesto effective communication. Recurrent face to face
meetings must be scheduled to encourage ongoing discussions and ensure that deliverables are completed
within project time frames.

Encourage Collaboration
. .
- Groupsthat plan togetherare typically more successful,therefore project leaders must reanze the importanceof
collaborative planning and goal setting. This collaborativegoal setting allowsteam membersto achieveindividual
succes.ses, while contributing to the overall project goals. Collaboration is the vehiclewhich:
o Generates the most creative solutions
o Gets the greatestmembership support
o Produces the greatest amount of personal growth
- By matchingeach team member's incentive to the overall goals, the entire team Is motivated further to achieve
success. It is also the project manager's responsibilityto manage the team's developmentto ensure a cohesive
integratedteam is founded.

Accept and Manage Problems

- Bringing a group of people together does not necessarily constitute a team, especiallynot an effective working
team. One of the biggest mistakes made by project managersis not recognizing this as a fact and then expecting
their project team to do well from day ~me. ·....,
- Project leaders facilitate relationships among people of very different backgrounds. However, they all share the
common goal of the project. Conflict within projectscan manifestitself in many different ways but a good project
managerwill interceptand take action when confWctoccurs.

Recognition and Reward

- A recognitionand reward scheme will help reinforcethe Importanceof the key project deliverablesand focus the
team on the Important aspects of the project. Completionof a project and the steps along the way can be very
rewardingfor team members.

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 Project Management MU) 2-24
f the team When project milestones are reached th...
- Celebratingthese successesIs quite motivating or · • -....,
be communicatedto the project team members an d stakeholders.
Id b established and communicated at the start of the
- Rewards can come In various forms. They shou e
they may Impact on other areas to the project, sueh as cost and time.

2.9.6 How to Efficiently Manage a Project Team ?

requires a wise management approach F
Creating an efficientteam Is essential but bringing It to success · l'Olft..
t the best from your team you must :
perspectiveand experienceof many project managers,In order to ge .

1. Be a decisiveleader

,.... h-
If you are the project leader you be a decisiveleader. Make declslons on the basis of the informatJon"""'
nd
....,: at .._ u•
time and make sure to involveyour team. Team members, being a part of th at process a seefngyouas a leaderwt'I
is focused on the success of the project, will be motivated to focus on the ir work, identify and point out pos.si
issues,suggestimprovements,and perform better.

2. Involve everyone in planning processes

When planningstrategy or the early phases of a project, Involve the entire team. Make sure you receive each
member's feedback on the process and their particularpart of work. They might help you identify weak points.
suggest great processoptimizationideas that will help you plan better.

3. Get contributions and accountability from everyone

Being a project leader, you should get productivityfrom everyone. Assign tough tasks to all project team me
·and expect weekly accountabilityfrom each team member for their respective tasks. One of the best practices
monitoringteam membersinput Into the projectIs to use_some project management software.

4. Acquire right team members

- Teamwork and communication are the keys to productivity of the team. That's why just finding
professionalsfor your team Is not enough: it's not uncommonthat the best ones come with big egos. _..,.__
and unwillingnessto communicateare extremelydetrimental for productivityof an otherwise great team_
for overall results too. It's not always easy to Identifythat during hiring processes or tearn selection p,roc:essie11
be carefulto ask tough questions and not Just take the best talent with blinders on.
- The project managementteam needs to clearly understand the requirements and deliverables of the.
well as being aware of the organlzatlonal overall strategy objectives ·and d · •
. ' nvers. It 1s also essential for
proJect managementteam to understand the organization's professionala d th" •
n e •ca1requirements and su
to them and ensure that the projectcomplieswith them.

2.10 Stages of Team Development & Growth

This process· of learning to work together effectlvely Is kn ·

own as team develo ·
teams go through definitive stages during development Br T k pment . Research has shown
· uce uc man an ed . .
five-stage development process that most teams follow t . b ' ucat 1onal psychologist,· iden
0 ecome high rf
forming, storming, norming, performing, and adjourning T pe arming. He c;alled the
· eam progress th h
diagram. roug th e stages Is shown in the

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.f project Management(MU) 2-25 Initiating Project
Performing

iQ)
Adjourning
'ij
Forming
w
;
Storming
Time
Fig. 2.10.1 : Stages ofTeam Progress

Fonning Stage
The forming stage involves a period of orientation and acquaintance. There Is a high level of uncertainty during thls
stage, and people look for leadershipand authority. A member who asserts authority or Is knowledgeablemay be
looked to take control. In this stage team members ask for their role and benefits. Most Interactions are social as
members get to know each other.
Stonning Stage
_ The storming stage Is the most difficultand criticalstage to pass through. It Is a period marked by conflictand
competitionas Individual personalitiesemerge; Team performance may actuallydecrease in this stage because
energy Is put into unproductiveactivities.
- Members may disagree on tea·m goals, and subgroupsand cliques may form around strong personalitiesor areas
of agreement. To get through this stage, members must work to overcome obstacles, to accept individual
differences, and ~o work through conflictingideas on team tasks and goals.
- Teamscan get bogged down in this stage. Failureto address conflictsmay result in long-termproblems.

- By getting through the storming stage, conflict is resolved and some degree of unity emerges. In the norming
stage, consensus develops around who the leader or leaders are, and individual member's roles. Interpersonal
differences begin to resolve and a sense of cohesionand unity emerges.
- Team performanceincreases during this stage as members learn to cooperate and begin to focus on team goals.
However, the harmony is precarious, and if disagreements re-emerge the team can slide back into ~orming.

Performing Stage

In this stage, consensus and cooperation are well-established and the team ls mature, organized,and well-functioning.
There is a clear and stable structure, and members are committed to the team's mission. Problems and conflictsstill
emerge, but they are dealt with constructively. The team is focused on problem solving and meeting team goals.

Adjourning Stage

- In the adjourningstage, most of the team's goals have been accomplished. The emphasis Is on wrapping up final
tasks and documenting the effort and results. As the work load Is diminished, Individual members may be
reassigned to other teams, and the team disbands.
- There may be regret as the team ends, so a ceremonlal'acknowledgementof the work and success of the team
can be helpful. If the team ls a standing committee with ongoing responslblllty, members may be replaced by
new people and the team can go back to a forming or stormingstage and repeat the developmentprocess.

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'(r Project Management (MU) 2-26

2.11 Team Dynamics

- Team dynamics Is a broad concept and represents the way In which team member s behave. It also Ind
psychological processes under lying the Interactions within the team .
- Whe~ team members engage In a project work , their behaviour Is Interdependent and from these interactions
an emergence of attitude, motivation , and cognition within the team .that influence how team members feet
each other , their team , and the projects. This constellation of effect, attitude and behaviour represent team dyn
and is the foundat ion for team work

2.11.1 Important Dimensions of Team Dynamics

1. Open Communication
- Consider this scenario: A young manager-to-be accompanied his mentor , an experienced manager, to observe
high-perform ing t eam in operation at a manufacturing company. When he first walked Into the room, he said
his mentor, "Oh boy, t his Is a dysfunctional team ! Listen to the way they're arguing with each other ." The
man replied, "Pay attention , you're witne ssing a great team ." ·
- It took the younger man several minutes to understand what the manager meant. This team was in conflict.
members were strongly disagreeing with one another on the best way to Improve their _product. It is ~ften a
sign when this kind of friction ~xists. A team that cares passionately about Its task is very positive. It has
honest communication. That Is a team dynamic!

2. Empowerment

- You get a strong team dynamic when you empower your team members by giving them the right to
decisions concerning the work they are doing. Of course, you set boundaries of tinie, money, choices,
fu~ . '

- But once you give the team the final power of decision making, you will noti ce a confidence and a J
strength.

- Whatever you do, make sure you do not empower .teams that are not ready for it. That can be disastro~
many new managers make thi s big mistake. They probably do It because.they want to get into the good
the team. Make sure the team is ready for empowerment or you and the organization will suffer from
consequencesof its poor decisions.

3. Clear Roles and Responsibilities

- Can yo~ -~alk up to any one of your team members and have this person clearly define his role
respons1b1lrtle s on the team? Can you walk up to any one of your team m ·b d h . ·
em ers an ave this person
define the roles and responsibilitie s of every other team member lncludl h ··
, ng you as t e leader?
When team members can do this, they know what Is expected of the d h • •
b m an w at 1s expected of every other
mem er. They also know on whom they can count for helpln th · h • ·
effective team dynamic. g em wt 1 th e1r work . All of this lead$

4. Goal Clarity

- Does everyone you manase know the goals of both y t

. our eam and the e ti .
Keep it simple-Id eally down to one sentence for ea h y n re organization? Make sure th
• c . ourteam'sgoalstt .
goal is to provide our Internal customers with ace t a ement could be something hke,
. . ura e, timely and val bl · .
Is perfect-It covers It all. ' ua e market data at the lowest cost.

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 projectManagement(MU) 2-27 Initiating Project
1 -
ce you have worked with your team to developyour simple goal statement, make sure everyoneknows it and
0n
has It memorized. You may want to post It In a prominent location, always Include It at the top of meeting
agendas,or Include It below the signature on your Internalemails.
organizationalgoal clarity keeps everyone moving In the same direction. Goal clarityfacilitatesa number of valuable
outcomes :
0
It allowsyour people to make more of their own decisions
0
fewer Issueswill need to be escalated to you to resolve
0 Decisionswill be made more quickly
0
Yourorganization wlll be more aglle, makingIt better able to adapt quicklyto changes
0 Your organization will be more efficient.

5. Effective Leadership

When you are able to check off all the neces.sary items, you are doing your part in buildingan effective team dynamic.
·As leader, you should do the following:
_ set dear goals for each team member and the team. Give clear directions for those who need it
_ Share examples and experiences.of your personal successes and mistakes in order to relate to the team.
Emphasizethe positive rather than the negative in your talks with your team
- Give continualfeedback to each team member and to the team-b oth positive and constructive and express your
and the organization'sappreciation thr~ugh rewards, if available
Use small successes to build team cohesiveness. Develop a constructive relationship.
- Make change happen for the better by encouraging creativi_ty and innovation. Encourageself-reliance and self-
development
- Encourageteam members to express their views during conflict and share yours with them
- Help your team see Its connection to the larger organization, customers, and the community

Reward and AccountabilitySystem

' '
- This last factor for building a strong team dynamic is the responsibility of the organization and the managers
working together. Many org~nizations preach teamwork. You walk around the building and see posters with
happy groups of people working and playing together. You read company· mission statements and they say
something about being the best. team. People are assigned to teams, yet teamwork is lacking. Why is this? It ls
because the organization and it.s managers do not hold people accountable for working in teams or reward them
for it.
- If we truly expect people to cooperate with each other for the common good of the organization, we cannot just
evaluatethem, rate them, or give them performance appraisals just for their Individualcontribution.
- We have to do all of that for their team contribution as well. When team members understand that you are
holding them accountable based on how well they perform as team players, they quicklyget the message that
teams count. ~ou have to do the same thing with the reward system; that Is, reward people for both their
individualand te_am contributions. ·

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V Project Management (MU) 2-28

I Review Qua•ttom• :J
Q. 1
State the importance of Project Initiation phase. (Refer Section 2.2)
Q, 2
Describe Project Initiation Process. (Refer Section 2.2.2)
Q. 3 Describe some of the techniques used for strategicselectionof project. (Refer Section 2.3.1)
Q. 4 Describe any four non-numericalProjectSelectionModels. (Refer Section 2.4.1)
Q. 6 Write notes on (i) Payback period (ii) Break even analysis. (Refer Section 2.4.2)
Q.6 What is cost benefit analysis?What is its usage? (Refer Section 2.4.2)
Q. 7 Describe Project Portfolio Process. (Refer Section 2.5)
Q. 8 What is a project sponsor?Describeits functions. (ReferSections 2.6 and 2.6.2)
Q.9 What is Project Charter? Describeits benefits and use. (ReferSections2.7, 2.7.2 and 2.7.4)

Q.10 What is Project Proposal?How do we write a Project Proposal?(Refer Sections 2.8 and 2.8.1(a))

Q. 11 What is a project team? State its key members and their roles. (Refer Sections 2.9 and 2.9.3)

Q.12 Describe the role and responsibilities of a project team. (ReferSections2.9, 2.9.1 and 2.9.2)
1
Q.13 Describe the technique of building an effectiveprojectteam. (Refer Section 2.9.5)
Q.14 Desaibe the stages of Project team development.(Refer Section 2.10)

Q.15 Describe ttie importance of team dynamics. What are its importantdimensions?(Refer Sections 2.11 and 2.~1

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 Project Planning and Scheduling

Work Breakdownstructure(WBS) and linear responsibilitychart, InterfaceCo-ordinationand concurrentengineering,

Project cost estimationand budgeting,Top down and bottoms up budgeting,Networkingand Schedulingtechniques.
PEAT, CPM, GANTT chart, Introductionto ProjectManagementInformationSystem (PMIS).

Project Planning

Project planning is the most important part of the project life cycle. It tells what is to be achieved and how. The
planning phase is when the project plans are documented,the project objectives and requirements are defined, and
the project scheduleis created.
It involves creatinga set of plans to help guide you through the implementation and closure phases of the project. The
plans created during this phase helps manage time, cost, quality,. changes, risk, and related issues. They also help
axrtrol staff and externalsuppliersto ensure that the project Is deliveredon time, within budget,and within schedule.

The project planning phase is often the most challengingphase of project managementas you need to plan the staff,
resources, and equipment needed to complete your project. You may also need to plan your communications and
procurementactivities.

Purpose of the Project Planning

To clearlyidentify and describe businessrequiremen~

To establishcost, schedule,list of deliverables, and deliverydates

Obtaining managementapprovaland proceedingto the next phase

Basic Processes of Project Planning

Scope planning: It specifiesthe scope requirementsfor the project to help in creatingthe work breakdownstructure
Preparation of the work breakdownstructure : Here, the entire project is divided into tasks and sub-tasksfor better
handling and execution.

Project schedule development: Here, the entire schedule of the activities of the project Is prepared detailing their
sequence of implementation.

-.SOurce planning: This process Identifiesand then plans the effective utilization of the all the resources required
Wiring the project implementation.

llidget planning: it specifies the budgetedcost to be Incurred at the completlonof the project
ocurementplanning : It plans to Identify the right vendors outside the company for procurementof materials and

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 1), Pro'ect Management MU 3-2 Project Plannin

Risk management : In this process, planning Is done to prepare againSt all

contingency plans and mitigation strategies
Quality planning : fn this process, quallty criteria to be used for the project are assessed and finalized.
Communication planning ·: Here, communication strategy with all project stakeholders Is designed for
Implementation of the project plan.

3.1.3 Important Areas of Project Plannlng

Scope, schedule and cost : Project Planning needs to outline the scope and size of th e project, the scheduling of:
tasks and activities, which means planning them out along a tlmeline. The plan also needs to iociude how the costs
going to be spread out and covered.
Quality, human resources, communications and risk : The quality of the outcomes needs to be established In the
so that they can be measured throughout the project progress. Team members need to be allocate«:ftasks before t
project begins so that they are aware of what is expected of them. The way in which communications Wil_l be held a
' . needs to be outlined along with the potential risks and bottlenecks of the project.
Requirements plan : In the project plan format, a project may have several requ irements such as.Imr::1et"....._
location, space etc. It Is important to plan and organise for the availability of these requirements before the
begins
- Change management plan : Any proyect can face changes and uncerta inty. Planning for these changes and ae ·
way in which they will be dealt with reduces their negative impact on the project . So it is important to manage
correctly and establish a plan for its management.
Process Improvement plan : Improvement and learning is essential in p~oject management . It is important to stri~
quality results. Lessons can be learned from previous projects and applied to future ones, heightening the potential
increased success.

3.2 · Project Scheduling

Project scheduling is a mechanism to communicate what tasks are to be done and which organizational resources
be allocated to complete those tasks. Th us project scheduling fs a document collecting all the work needed to be
to deliver the project on time.
. .
- A project is made up of many tasks, and eac~ task has a start and end time to ensure timely finish . People in the
had printed calendars on a shared wall in the water-cooler room, or shared spreadsheets via email, today most
use online project scheduling to ols.

Typi cally, project scheduling Is Just one feature within a larger project management software solution, and
many different places In the.software where scheduling takes place.

,. 3.2.1 Project Scheduling Process

Before going deeper into project scheduling, let's review the fundamentals to proJ·ect h d . · . ·
· sc e u1mg. ProJect
occurs during the planning phase of the proj ect. You have to ask yourself three questions to start :
What needs to be done?
When will it be done?
Who will do It?

Once yo~ have got answers to these questions you can begin to plan d · t ti k . . . ,. · · •
_and resources. The followln~ are the steps needed to schedule a project : a es, n activ,t,es, set the duration, mil

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 Project Mana ement (MU) 3-3 Project Plannln & Scheduling

Defining Activities
Identify and define the activ ities that you have to do In the project. By using a Work Breakdown Structure (WBS) and a
deliverablesdiagram, you can begin to take these activities and organize them by mapping out the tasks necessary to
cornplete them in an order than makes sense.

Preparing Estimates
After you have the activiti es defined and broken down Into tasks, the next step is to determine the t ime and effort It
will take to complete them. This Is an essential p'.ece of the equat ion In order to calculate the correct schedule.
Determining Dependencies
Tasks are not an island, and often one cannot be started until the other is completed. That's called a task dependency,
and your schedule is going to have to refle ct the se linked tasks. One way to do this is by putting a bit of slack _in your
schedule to accommodate these related tasks. ·

Assigning Resources
The last step to finalizing your planned schedule is to decide what resources are going to be required to get those
tasks done on time. For example assembling a team and scheduling the ir time just like the tasks .

2 Scheduling Techniques

Tl)e first two techn iques used by project managers are Critical Pat h Method (CPM) and Program Evaluation and
r!W Technique (PERTI. You can use these methods to calculate the assumed start and fin ish dates, based on the known
pe of the project.
• Critical Path Method (CPM)
- The Critical Path Met hod helps you uncover the longest possible t imeline for the project, as well as the short~
one. With the CPM you will also be able to mark critical tasks and the ones that may float. Changes in the latter's
delivery won't affect the schedule.

- To use th e CPM, you need to know your proje ct's scope and list all of the tasks necessary for its completion . Next,
estimate how long each task may take. After that, you shou ld also note all dependencies between the tasks. This
way you know whi ch ones can be done separately, and which ones require previous tasks to be comp leted .
Lastly, add milestone s and deliverables to your project.

A critical path help s to visualize the project flow and calculate its duration when all dependencies and
deliverables are known . This technique may notbe so handy lfthere are many uncertainties in the project .

Program Evaluation and ReviewTechnique (PERT)

- Similar to a critical path , PERT is a way to visualize tasks' flow iri the project and estimate the timeline based on
their assumed duration. This techn ique also illustrates dependen cies between tasks.

To schedule a project using PERT, just like in CPM you will need to define tasks and the ir order first, based on
your proj ect's mile.stones. Oslng a network framework slmllar to CPM, consisting of these tasks, you can estimate
different time lines for a project depending on t he level of confidence :

(i) Optim istic timing

(it) Most-likely timing

(iii) Pessimistic timing

• MS--..
, 11 11 1r 1 t U•1

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• 3-4
Project Mana emenl (MU
T s weighted average du ratio n rather than estimates to
- Although it looks very slmllar to CPM, PER use
possible tlmeframes.
d to know the tasks and dependencies between them In
- A disadvantage of this approach Is also a nee
fully benefit from this technique.

3.3 Work Breakdown Structure (WBS)

-
• •
The WBS 1s a method for getting a comp1ex, mu
ltl -step project done In an easy and effective way by divldins it,
nd more efficiently. -
smaller units so that you can get things done f ast er a
l tree structure that outlines your project and breaks it down·
- Work breakdown structure (or WBS) Is a hierarchica b
d
smaller and more manageable units. Today, software Is also available which you can use to ull a WBS by er
folders and subfolders, and can even go further to divide Individual tasks Into subtasks.
- The goal of a WBS is to make a large project more manageable by breaking it down into smaller chunks ~o
separate but interconnected units can be done simultaneous¼yby different team members leading to better
productivity and easier project management overall.
Following are a few reasonsfor creating a WBS in a project :
o It aeates an accurate and readable project organization.
o It creates accurate assignment of responsibilities to the project team.

o It dearly lays down the project milestones and control points.

o It helps the project team to estimate the cost, time and risk.
o It dearly illustrates the project scope, so the stakeholders can have a ~tter understanding of the same.

3.3.1 Characteristics of a Work Breakdown Structures

A well-designed WBS facilitates planned outcomes instead of planned actions. Outcomes are the desired ends of
project, such 'as a product, result, or service, and should be predicted accurately. Actions, on the other hand,
diffi cult to predict accurately. A well-designed WBS makes it easy to assign elements of the WBS to any project a
good WBS should exhibit the following characteristics :
1. Definable : It is easily described and well understood by project participants.
2. Manageable : It is a meaningful project planning method wllere specific responsibility and authority are as~g
responsible individuals.
3. Estimated : Using WBS, duration of the whole project and separate units can be estimated in terms of the
required to complete, and the cost likely to be Incurred in resources required to complete the project .
4. Independent : It allows minimum Interface with or dependence on other ongoln I (' . · ·
g e ements t.e., assignable to a
control account, and clearly dlstingulshable from other work packages).
s. Integration : It facilitates integration with other project work eleme t d
I
h -
schedules t o Include the entire project. n s an w t higher level cost estima.
6. Measurable : WBS can be used to measure progress· has start d
milestones. ' an completion dates and

7. Adaptable : It Is sufficiently flexible so the additlon/ellmln ti f •

WBS framework. a on °
work scope can be readily accommodated i

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 project Mana ement MU 3.5

Advantages of WBS
3.2
Now that you have the complete work breakdown structure, It's time to review why you should use this approach to
management. Using a work breakdown structure delivers numerous beneflt 5 Including :
improved planning : Large, complex projects can be difficul t to wrap to execute let alone plan from start to finish.
Using work breakdown structure helps Improve planning by making It easy to visualize the sc.ope of the project and
break lt down Into more manageable milestones. As a result, work breakdown structure allows you to set clear
tlmelines earlier on. It makes sure no work gets dupli cated or overlooked and It understands the level of output at any
i,oint In the project timeline .
smarter budget and resource allocatlon : By Improving project planning, work breakdown structure allows for smarter
budget and resource allocatio n. Speclflcally, It ensures that all _budget and time requirement s get accounted for at the
very beginning of a project. Addltlonally, the mutually exclusive rule guarantees that no duplicate work wlll take place,
which eliminates wasted budget and tim e.
Simplifi ed risk Identification : The visual nature of work breakdown structure makes it easier to identify areas of risk

50 that you can get ahead of problems and remedy them faster .
Improved accountability: The clear work assignments, timellnes, and budgets identified by work breakdown structure
Improve accountability among team members . That' s because eve&')'oneInvolved should have a dear understand ing of
what they are responsible for and the time they have to complete that work .
Enhanced vlslbillty : Finally, work breakdown structure provides a high level of visibility into · f!Very project. Thi s
visibility makes it easy to communicate expectations to stakeholders and team members and track progress
throughout the project.
A work breakdown stru_cture is a helpfu l method for managing the challenges that accompany large:-scale enterprise

Work Breakdown Structure Rules

There are several ways you can create a work breakdown structure. The low est tech options are a whiteboard or a
waD with sticky notes, but that clearly won't work for a geographically dispersed team . Go digital with project management
are that drives agility across teams, whethe r in the same room or distributed across the globe .
As you get started with work breakdown structu re, there are several rules to keep in mind, many of which are covered
the work breakdown structure definition . These rules Include :

• 100% Rule
- Both the work and budget allotment for all deliverables must always add up to 100% and they must do so In a
hierarchical manner. For example, at all _level two deliverables must add up to 100% of work and budget for the
entire project as outlined at level one of the hierarchy.

- Below that, at all level three deliverables must add up to 100% of their parent deliverable . So, If the parent
deliverable Is 40% of wo~k for the project and Rs. 60,000, the sum of all its sub-deliverables must equal 40% of
work and Rs. 60,000.

Mutually Exclusive
Every deliverable and sub-deliverable must be mutua lly exclusive, which means that no milestone can appear with in
the work breakdown structure twice . This mutual exclusivity helps ellmlnate duplicate work , excessive costs, and
communication issues since It means that only one team or person Is responslble for each deliverable.

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 Pro ect Plannfn
3-6
• Project Mana ement (MU)

3. Focus on Outcomes
. d ut in the work breakdown structure defines an
O
Once again, it's important that every deliverable mappe . • o
not an action. This rule makes it easier to manage project scope and gives team members working on the

flexibllity to complete each outcome as they see flt.

4. The 8/80 Rule

th
The 8/80 rule states that the work required to complete each deliverable should not take fewer an eight hou
more than 80 hours (10 days of full-time work) to complete . If the work package takes fewe r than eight hou
complete, you should combine it with another deliverable. If the work package takes more than 80 hours to 'com
you need to break up the deliverable into separate components .

3.3.4 Work Breakdown Structure Diagram

- The Work Breakdown Structure (WBS) is developed to establish a common understa nding of project scope. It Is
hierarchical description of the work that must be done to complete the deliverables of a project. Each descending'I
in the WBS represents an increasinglydetailed description of the project deliverables.
- The first two levels of the WBS (the root node and Level· 2) define a set of planned outcomes .that collectively
exclusively represent 100% of the project scope. At each subsequent level, the children of a parent node coll~ctl
and exclusivelyrepresent 100% of the scope of their parent node. Here is a Work Breakdown Structu re example :

Initiation

·Assign Project Manager Dev~lopWBS. Manage Procurement

Develop Prc:,ject Charter flan S.chedule ·. Track and Manage Tasks

Plan Resource ··. Execute Project Tasks

Plan Budget Build SubsystemA

Perf9"!1 s.uppl. Planning , Build SubsystemB

Plan Risk Mgml Manage Changes ·

Plan Change and Conl. Perform UAT

Fig. 3.3.1 : Work BreakdownStruct

- This follow ing example includes three levels which Is th ure
. ' e most common
s t Th
or five levels if needed. Each deliverable should be j . e up . e structure can be extended to
hd . a pro ect milestone n t .
ea~ ehverable are known as a "work package." Finally each d o a specific task . The tasks req~lred to
You can also choose to Include team assignments and sta~ and ellverable must have a work and budget · allo
end dates for each deliverabl e.

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 Mana ement (MU 3-7 Pro ect Plannln & Scheduling
I Ct
proe
Different Forms of Work BreakdownStructure
s.3,5
lly speaking, there are three typical ways In structuring works with a Work Breakdown Structure (WBS). They
Genera
hase-based structures, deliverable-based structures and responslbtllty-based structures . .
ncJude P
pr,ase-basedstructures
It defines and structures project activities based on the project phases.

Library Management
System

ProjectPhases
~ ------------------ ------------------------------- ----------------------------------- -------------:
: Planning Executionand Control · Closeout :
~-_,__~.~---
-~----~---
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. ~..•. ..~P_-__~_w__~-~----~•.-.-.•-.-••- .- ..•.J
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DevelopWork Breakdown ConductExecution K'ickoff Conduct CloseoutMeeting

Structure Meeting
DocumentLessonsLeamed
Develop Project Schedule .. .
SupportSearchingE-Resources
Create CloseoutReport
Develop ResourcePlan
_SupportSearching
E-theses · · · Archive ProjectArtifacts
Compile.ProjectP_lan
,Support Searching
•Approve Project Plar:i_ : ~~journals· ' -:, Y

.~upportAndroid _Integration

·.improve
. .. .
,Site Performance.:·,..
-· .

Ag. 3.3.2 : Phasebased structure

Deliverable-basedstructures
It defines and structures project activit i~s ~ased on the deliverables agreed to deliver •
• ·:•:•,• , ••' t ,,

' DAT-3300Insurance

' rabies
- --- ------ - - --- ------ - ------ -- - ------- --- ---- - .. --· --·--- .. -- .. ----- - ----- - - -------------,
t. ~-- ----- - ----- -----..
•j r-------lt,.._---- ,-_____ .,,_______ ,------...&..------- I

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l
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.UnifiedCAM -
•

"'P'----------~·
----------------------------------....
-- ---------------------------------
Perform·cRM System
Back:OfficeSuite ' . '
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----------...1, ••
User Manual

-----------------------------------·'
• '

. Setup·Hardware _Update CRM System Manual

Integration

Migrate Database Per1orm SoftwareM~iflcatlon Upd,te Back-Office Suite Manual

• I

Perform System Integration ,Phasing Oul Legacy

Testing ..

Mana~~ Slaff Training Manage, Staff Training

Fig. 3.3.3 : Dellverable-baaedStructul'9

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• 3-6
Project Mana ement {MU

3. Responslblllty-basedstructure
r anlzatlon units that will work on the project.
It defi nes and structures project activities based on~t:_::h:e.:.o~g
:------i
Online Shop

Teams
:(.______-_-_--_--_-_-_--_--..,_-_-_- _-_--_-_-·_·.·,·_··::·.:.:·:.:··.·:.·:.:: ·.·:.·:.:.:.:=~----
: - - - - - - - - - - - - - esting Te~~ - - -- ---i
-_-_-71
i Profect Manag~mentTeom 1_......,,..c...o_re_P.,.r.;.oj_ec_t..,.T-:e":"
~ am
:'::":':':~ - l..-_-__ - _-_-__-_...
__-_-__
- _.,.,.
__,.._,..
_...
__..._...
__~_..
___:
\- ~ ---------·---------------------- ------- --------- Test Shopping Sile
DevelopProject Plan Design Team
Test Admin Panel
Report Status Design New Web UI
Develop Testing Report
Report Risks DesignAdmln UI

Manage Communication Programming Team

Activities

Manage Procurement Develop Shopping,Site

Activities
DevelopAdmin, Panel
DocumentLessons
Learned
Fig. 3.3.4 : Responslblllty-basedStructure

4. Resource Breakdown Structure

Resource Breakdown Structure (RBS) is a project management tool that provides a hierarchical decompositi
resources,either structured by resource category, types or by IT/business function that has resource needs. He
ResourceBreakdown Structure example:

.Library Managemen,System

Facility Equipment' Software .

. Meeting Room x 1 Oevelopment MS Office (Licensex 10) Android Developer x 4 .

ConferenceRoom Tablet x 2 Visual Paradigm Web Designer x 4.

(License x 5)
Smartphonex 5
UI Specialist x 2

Projectorx 2

Fig. 3.3,5 : Resource BreakdownStructure

3.3.6 Processto Create a Work Breakdown Structure
- When you are ·comfortab le wlth the overall process of ere ti
h a ng a work breakd ·
t e practice to any project, from moving your house to b lldl own structure, you will be able t
u ng a complex datab ·h
- But before you go off and start creating thes d ase Wit 75 offshore teams.
e ocuments and on-p 1 •
foIIowing process that will help ensure a solid, workable estimate. o nt estimates, you should walk thr

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 project Management MU 3-9 Project Plannln & Scheduling
SteP 1 : List hlgh~level deliverables
If you have got a project scope, getting started on your wotk breakdown structure should be easy. Starting any project
without a scope is dangerous because It sets the stage for what will be delivered and when.
_ first, sit down with your team, and list out what you will ~eed to deliver to meet your project's end goal. For instance ·
jf you are building a new website, your deliverables might Include : ·'

0
Sitemap
o Wireframes

0
page designs

0
Front-end code

0 Back-end code
Be sure to include all tasks and that you are not leavlng anything out. For Instance, if you are working on a website
redesign project, have you accounted for content? If you miss a deliverable now, you will regret it later.
That's why listing things out as a team is so helpful. A team conversation not only ensures all your bases are covered. It
also helps you set expectations for who will be responsible for deliverables and tasks, all while engaging the team on
the overall process of the project.

p 2: Think ~bout tasks

Once you have identified the high-level deliverables for your project, It's time to take a deeper look into what actually
needs to be done within each individual deliverable.
This isn'.t just a simple exercise where you just identify the right person and time period for completion. It goes much
•deeper than that and that's a good thing because that's how you will be able to create a better estimate.

Therefore, as you dig into each high-level deliverable, ask your team :

o What needs to be done to create this.deliverable?

o What other related project tasks will contribute to successfully completing this deliverable?

o What are the task requirements?

14!, you conduct this exercise, keep in mind that you truly want to list every possible task that could go into a high-levei
deliverable. Remember, the point here is to account for all time so you can create a reasonable estimate. You won't be
able to do that if you are not thinking it through properly.
Using the website redesign as an example, here's how you might break up the "SitemapN deliverable:

Review current site

o Test the current structure with 5 site users

Review test findings

Organize the sitemap in a spreadsheet

Review the first low-fidelity version with the team

Revise the structure using the team's input

Create a visual version of the sltemap

Annotate sections

Write description of the new sitemap

~resent the siterr:iap to clients

Review client feedback

Implement feedback

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 Project Plannln·
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• ProjectManagement MU

0 Oeliverv2
th
0 conductmeetingwi clients der to get to a finalizedsitem
. be done In or
0 Finalize s,temap k that will need to h ur team to discussth
t for all of the wor ·t down wit yo · · •
- This list of tasks Is an estlma e d h t's 1·ust fine. When you SI d ne Listing out every single
This might not be the way you'd do ·t, , an t a derstandlng of how th'ings are . o ·
Ith a common un
Just be sure you are operatingw I te the deliverable.
help you spell out the effort it will take to comp e
a to do that is to exarriJ
Step 3 : PrepareMinuteDetails detailedas possible.The only w y . . the work that
You should make your work breakdown structure , asII about elaboratinge ff ort and determining . ,
.
task you have identifiedand list out subtasks.It s a
to be done to successfullycompletethe deliverable. d this you will find less room for
'f ake an investmentto o , . . ch
It's a processthat takes time and thought, but ' you m k the next step and detail out what will go into ea ..
. the long term So, ta e ct
expectationsand budgetoveragesin · , k d wn the "Test the current stru ure
h , how you might brea o
Using the website redesign as an example, ere 5 .
site users" deliverableeven further:
o Recruit users
o Schedulesessions
o Write test script
o Conduct5 sessions
Compensateusersfor time
o . .
_ Write up fi~dlngsand recommendations.This one task is proofthat any•single line item in a scope can be an exp~ns
one! Not only did this example includesubtasksit also included a line ite~ that requires payment to a party outsid~
the project.
You are going to ~ant to know about any expensesbeforescoping your project, and your clients will too. Be ~u
accountfor them early on so nothingcomes as a surprise·when you are knee-deep In your project.
Step 4 : Formatand Estimate
- Traditionally,you will find work breakdownstructures presented in flowchartsthat resemble ·website sitemaps-.
format works well becauseit show's a hierarchyof tasks and is easily numbered and referred back to.
- But, some people like to list them out on whiteboardsor put them in spreadsheets. The format isn't what matters
it's the completenessand accuracyof the tasks Included.You can create your work breakdown structure in any
that makes you comfortable.

- When you have listed all of your tasks and subtasks in a format that makes se s · 'II . ·
make sure you have Includedall of the possibletasks and subtasks. . n e, you w1 want to review it a

- Once that's confirmed, go through the list and discuss each task · t f .-
O
hours, days, weeks. It really depends on how granularyo d in erms level of effort ..This could be In mf
u nee to get and how y . .
Assigningan incrementof time to each task will help y dd our organization estimates.
ou a up a total estim t f • ·
you up to createa projectplan when you are ready fo .th . a e o time (and possible cost) a
r at step in your project . .
When you are done, you will know if you are in ·
• 1
art,cu ated too much time or effort to d scope, out of scope· you might run this · ·. • i·
o everythingwithin th exerc 1se and find
the baselinefor what's needed and as a e Scop~ of the project Th ,
. ' group, you can scale back on t k · e good thing.is,you
as s to fit the .
. · scope or the timellne.

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 project Management MU) 3·11
un._e_a_r_R_e_,;sp'--o_n_s_lb_l_llty...:;.._C_h_a_rt
__________________ _
!:.:---
4 ·
. ear ResponsibilityChart (LRC) Is the chart of responslblllty which identifies the project participants_and shows
- , Lauthority
,n and responsibllltyrelatlonshlpamong them. The participantsmay be general manager,manager of projects,
project manager and functional managers. It clearly specifiesthe authority and responslblllty relationshipsof project
articipantsto avoid confusionand conflicts.
,P
_ The LRC is specially used in matrix organizationstructure In order to minimize the confusion and conflictsbetween
roject manager and functional managers. It explains what and who of project work. It links the project activities or
~ask to the responsibleperson which ensures effective Implementationof project to achieve defined objectiveswithin
constraints.
_ The LRC promotes communication and coordination of responslbllltles within a project. It decides who are the
participants,and to what degree, when an activity Is performed or a decision Is made. It shows the extent or type of
authority exercised by each position in performing an actlvl~ In which two or more positions have overlapping
involvement.
_ It clarifiesthe authority relationshipsthat arise when peopleshare common work. In the absence of a LRC within a project
plan, some required communicationsor tasks may face troubles as no_one will take responsibilityfor completing these
communicati_ons or tasks assumingthey were someoneelse's responsibility.
_ li near Responsibility Chart is also known as IU1ear chart (LC), Matrix Responsibility Chart (MRC), Responsibility
InterfaceMatrix (RIM), Responsibility and Accountability (RAM).

- As a contribution to Building Practice Guidelines, these Linear ResponsibilityChart templates list the typical tasks
involved in a building project accordingto its phase or stage. Each entry recommendswho should take the lead and
who else should be providing significant support for each task. The tasks should be modified or augmented to suit the
particularconstructionproiect and the needs of its participants.
In a_well developed team, all will participate to some degree. Nevertheless,on a project it ls essential for the project
managerto identify who will be accountablefor initiating, conductin·g and concludingeach and every task.

- . Every task can be identified and assigned to a single point responsibility

· The project can and should be divided into phases and stages, each separated by a financial 'control gate' or decision
point for control purposes
- This process builds on the standardproject managementgenericlife cycle, and
Project managementcan and should be distinguishedfrom the managementof the project's technology.

Preparation of LRC

- LRC is prepared to find out responsibility centre of all key activities In the project and for that purpose, LRC is divided
into rows and columns and numbers. The rows of LRC Indicate activities, responslblllty and authorities. Th~ columns
identify the position of the project participants and numbers Indicate the degree of authority and responslbillty existed
between rows and columns of LRC, the n~mberscan.be symbol. .
'- The Linear Responsibilitychart Is divided Into :
o Rows : They indicate activities, responslbllltles,authority.
o Columns: They Identify position of project participants.
o Numbers : They indicate th~ degree of authority-responsibility existing between the rows. and columns. They can
be symbols. ·

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 • 3-12
Project Mana ement (MU) f:•.

' ,. ,. ,.,, ·- .
,, General.M•n•i~er Ma~ager~f-ProJ - p i' . rt . • " •
,: Acttvlty/R11ponitblllty . 3
3
Establish Objectives & Policies 1
3 3
1
Integration of Projects 2
1 3
4
2
Project D&rectlon
1 3
4 2
Project Planning
5 1
2 4
Functional planning
1 3
4 6
Project Budget
1 3
4 2
Project Control

Table 3.4.1 : Linear ResponslbllltyChart

Symbols

1 = Actual Responsibility
2 = General Responsibili ty
3 = Most be consulted
4 = May be consulted
5 = Must be notified
6 = Must Approve

3.4.2 Advantagesof Linear ResponsibilityChart

- It describes the role of project participants in project matters. Authority, responsibility and accountability for
. '
activities are delineated among various project participa nts. Problem-solving becomes easier .

- Communication is facilitated. It cuts red tape. It is a us_efu l tool for superv ising of authority and responsibilities.
is delegation of aut hority .

- ft postures coordinatio~ because it clarifies ru!es and responsibility, authority and r espon sibility relationsh
project activities among the partic ipants.

- ft reduces confusion and conflict between project manager and functional ma nager s which
responsibility of project part icipants.

- ft combines organizatio nal structure with work breakdown structure which makes easy t fi lb 'I'
. .
part1c1pants. . .
o ,x. re spon s .
1 1ty to

3.4.3 Disadvantagesof Linear ResponsibilityChart

- It does not describe the people Intera ctio ns In the project. It Is a mechanical aid.
All relationships may be difficult to dellneate .

- Customer-Imposed requirements may llmlt it.s usefulness .

- ft acts as mechan lcat tools for fixing responsibility onl b t ·

Y u not defines the relatlo hi .
.:.. It tries to express authority-responsibility relatlo hi . n s P between pro ject partld
ns P 1n specific terms 8
may be difficult to express. • ut situ atio n and degree of all rel

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 p~Mana~t MU) 3-13
interfacecoordination
5
.!::-----
ace coordination Is a process that fadlltates agreements with other stakeholders regarding roles &
lnterf
nsibililles,timing for providing Interface Informationand Identificationof crltJcal Interfaces earty In the project
respO
through a structured process.
_ The overall goal Is the earty Identificationof Issues with po!entlal to Impact the cost or schedule, to minimize or
remove their impact and promote clear, accurate, timely, and consistent communicationwith other organizationsfor
e,cchanging interface information.
__ tntcrface Information Is a requirement that associates two distinct entitles, either Internal or external, that Is
neces.sarv for an entity to generate Its own deliverables.
_ Interface Agreementsresult in exchange of any project information generated by one party and that Is r~red by
another party so that the other party can continue with Its scheduled project tasks. This can include the engineering
drawings,specifications,design reports and calculatlons,equipment details arid project schedule Information.
_ Informationrequests on an InterfaceAgreementhave two basic rules :
0 They should be specificand primitivein nature and should not be capable of further breakdownin to more Items.

0 They should have a specificrequirement date

An interface is definedas a point of connect between entitie.sworkingon a common project. This point can be :
o Physical: Physical interactionbetween components
o Functional: FunctionalRequirementsbetween systems
o Contractual: Interactionsbetween subcontractors/suppliers
o Organii.ational: Informationexchangedbetween disdplin~s
o Knowfedge:Generalinformationexchangedbetween parties
o Resource: Pointsof dependenciesbetween equipment, material;and labour suppliers
Internal Interface : An internal interface Is one where the complete responsibilitylies within contractor's scope of
worit.
External Interfaces: These are part of the Soope of Work under the responsibilityof contractor which may influence,
or be influenredby, the scopeof wortccovered by any other contractrelated to the project. ·

1 Objectives

Identify the appropriate personnel who wi!I be responsibl~ for each Interface request and for resolution of
nterfacerequest.
Provide a system which will facilitate the ldentiflcatfonof Interfaces, and address the specific in_terface request

Establisha procedure that promotes efficientmanagementof Interface issues from Initiationto close out.·
Definemethods for communicationand coordinationof Interfacerequests betweenvarious parties.
Facilitatedear and frequent communicationsamon~t parties.
Facilitatethe agreement of ii' schedule for Interfacerequest resolutionand.close-out;
Definea means for the control,~itln& and reporttna of pr01res.son the transfer of Interface requests.
Define processes assurancethat Interfacerequests are effectivelyIdentifiedand man~ged.

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 Project Plannin

.. ProjectMa

3.5.2 Process d to formallydocument and track the

ovfde a metho Id
designed to pr of all participants In ma ng
The Interfacecoordinationprocess1s nltor the performan~ .
Information between project participants-and to mo
requiredInformation.
The Proc:ess lnvofvas
- Identificationand recordingan Interface
- Oeatingan interfaceagreement
- Agreeing/ResolvingConflict
- Monitoringthe status
- Reporting the status
- Cosingthe interfaceagreement

3.5.3 Functions of Interface Coordination

- Internal interface issues are identified, catalogued, assessed ~or Impact, assigned and managed th
durationofthe project.
- Internal interface issues are resolved at the appropriate working level within the Project organization to .
rewortc(forexample,engineersresponsiblefor the design and design verification);
- Regularlyadvise companyon the status of resolutionof internalinterface issues;
- Internal interfaceactivitiesare ooordinatedwith other contractor work groups and process such as Manag
Change,HES, QMS, and Risk Managementto imp~ve processefficienciesand avoid duplication of efforts .

3.5.4 Roles and Responsibllftles of Interface Coordinators

- Participatein InterfaceMeetingswith affected/involvedparties as required to manage interfaces.

- Reviewoutgoinginterfacerequestsand serve as interfacerequest approver
- Ensure resolutionof inboundinterfacerequests
- Activelymonitorinterfa est ·
team . ce requ registerto expeditingrequests and.open/update/dose requests on behalf

Providecollaborativeinterfaceresolutionsupport
- Serve as PMT liaison betweencontractorand operatingpiant point of conta~
- Inform InterfaceManagerof potentialImpactsdue to unsatfsfact . I ••
ory reso ut1on response.
3.6 Concurrent Englneerfng
- As time has become a compe+:..:
. uuve weapon time
The pressurehas made , pressures have becom
businessperformance. project_managersunderstand that time compress: ce_ntral ~o the project-basedo
·- on is a driver of r . .
As a consequence,methods t h P OJect and its
, ec nlques and or: .
way that time compressionneeds be ha;dled In :anlzatJonalapproaches have bee . . '

------------~====n~tlv.
- All these approaches have proper manner. n designed and developed
d I one common · •
eve opmenttasks that can be Pnnclple Is that· th
performedconcurre . . try to ma)(im• . ev
This has given the co IZe the number of maj~r
ncept of con · .:
current eng1neering.

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 3·15

eoncurrent engineering, also known as slmultaneousengineering,Is a method of designingand developingproducts,

In which the different stages run simultaneously, rather than consecutively. It decreases product development time
and also the time to market. leadlng to Improvedproductivity and reduced costs.
concurrent Engineering {CE) is a systematic approach to Integrated product development that emphasises the
,esponse to custome~expectations. It embodies team values of co-operation, trust and sharing In such a manner that
decision making is by consensus,involvingall perspectivesIn parallel,from the beginningof the product llfe-cycle.•
o,n current Engineeringis a long tenn business strategy which gives a long term competitive benefits to business
ttiough the initial implementationcan be challenging. It removesthe need to have multipledesign rewoncsby crt:Jting
an environment for designinga product right the first time round.
In a concurrent engineering environment, even if certain tasks cannot be completely executed at the same time,
designers and developersare encouragedto achieve maximumoverlap between otherwise sequential activities.
In other words, concurrent engineering aims at achieving throughput time reductions by planning and executing
design and development activitiesIn parallel, or by strivingfor maximum overlap between activitiesthat cannot be
completely executed in parallel Concurrent engineering also called integrated product development (IPD) or
simultaneous engineering was introduced a few decades ago to eliminate the delays arising from sequential
engineering.This syste~atic approach is intended to force all the stakeholders to be involved and consider the full
~ neering productcyclefrom concept to after sale support
The use of concurrent engineering has been growing of late because of the ever-lnaeasing demand for quality
productsat affordable pricesand reduced time to market.
Although managing a concurrentengineeringprocess is very challenging,the techniques and practicesfollowedas part
cl concurrent engineeringgive several competitiveadvantages to the companyand to the finaJ qneering product.
In a concurrentengineeringenvironment,teams of experts from different disciplines are encouragedto work together
to ensure that design progresses smoothly and that all participants share the same information. The project and
problem-solving methods and the technologies utiliz.ed make up the essential elements through which parallerismin
new productdesign and development can be achieved.
Following methods describesthe concurrent engineering implementation.
(I} Project Methods
- Project methods are based on team-work, milestone management, target-oriented wortc definition a~
follow-up.These methods are supported by senior management commitment and incentive programs.Each
team is granted a large degree of autonomy to solve dfS!gn problems without much hierarchical
intervention.
- Howevermanagement must ensure that the transfer of Informationbetween different activities or tasks is
smooth and transparent. Also, the means of experimentation must allow the experts Involved to rule out
differences in interpretation on the functionaland technical design parameters.
- In other words, for concurrent engineeringto be successful, Information and Interpretation asymmetri~
between the experts involvedmust be avoidedwhenever possible.
ProblemSolvingMethods
- During design and development projects, methods that foster and support smooth lnterdl.sclplinaryproblem
definition and problem solving methodologies such as brainstonnlng are utilized to open the boundaries of
the team to allow for wider ranges of alternative design definitionsand solutions to be considered.
- The use of methodologies like Quality Function ~eployment (QFD) further h~lps experts- from different
disciplinarybackgroundsto jointlydefine a product's functionaland technical requirements.

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 p
3-16

Activityflow chart methodssuch as I0EF3 allow for detailed planning and monitoring of the different parallel
-
0
v«Japping activities Involved In project execution. Failure Mode and Effects Analysis (FMEA) allows fi
systematicInvestigationof the occurrenceand Impact of poss ible flaws In the new product design.
_ The use of Design of Experiments (DOE) enables the systematic ldentlflc.atlon of aftJcal product/pr
parametersthat Influenceperformance. .
- These are just a few of the many supportive methods that can be used In a concurrent englneertng environ

3.6.1 Benefits of Concurrent Engineering

- C.ompetitfveAdvantage : Reduction In time of launching products In the market results In businesses gain an
over their competitors.

- Enhanced Productfvtty : Quick discovery of design problems helps In correcting the potential problems early than
laterstage in the development process.
- Oem!ased Design and Development Tlme : It makes products which match the ir customer's needs In less ti~e a·
a reduced cost ·

The concurrentengineeringapproachis based on five key elements :

o A process
o A multidisciplinaryteam
0 An integrateddesign model
o A facility
0 A softwareinfrastructure

3.S.2 Advantages of Concurrent Engineering

- It encouragesmulti-disciplina;y collaboration
- Reduces Productcycle time
- Reduces cast
- Increasesquality by . ·
supporting the entire pr ·
Increasesproductivityby . . OJect cyde - enhancedquality
- It . stopping mistakesln their tracks .
you the competitiveed dva
ge a ntage ·
3.6.3 Disacfvanta . .
ges of Concurrent Engineer·
-
Co I
mp ex to manage
· mg .
- Relies on evervoneWorld · - ,
ng togetherhence · .
Room for mistakesare sm II . . communicationis critical
a as tt Impactsall the d
3•7 epartrnentsor d'1stI
Project Cost Esu Pline le electr1 1 •
matron and Bud ca ' mechanicalor softwaf1',
- Project Cost Esti Qetlng
mation is d fi
the cost . . e med as the pr .
. estimation depends on ocess of determlnin
constraintslike date reso the accuracy and d 8 the total expendit
behind the COntin~e~tact:1un:es or budget, The risk re ;talls of the ProJect sco ure of the project_The
A WeJl-f'eSearchect .on and the expensesrnad 8 ster WMI help to cal I Pe. The SCope Will also
P . and planned e to CoPe u cu ate type
'~Ject managers neect cost est1matJonan PWith risks. s of casts, the
est1rnat1nglabou to thorou1htv d budget Is nee
Work; r hours, matert I SCope the Pro· essaryfor th
n progressand should a s, supplies and oth feet In order to s e successfulcon,pfetf of
containroorn i - er rnlscellan ecure SUffici on any
or change, eous e>cpenses. Cost ent fu~ding. Scopf
· estJrnations and bu

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 ProjectManaQement(MU)
3.7.1 Characteristics 3-17

Unbiased

- A good cost estimate Is unbl the

numbers. The COst . ased. It should not be made by someone who would c,,,er °" under-state
assumptions are destfmate should dearty define the purpose of the project. what It wtll accomplish, what
ma e, how long th
_ It should sh . e estimate Is vafld, and how much the project will cost
ow a1I interested estimate should
be flexible adaptabl l)artfes, everything relevant Without holding bade lnformadon . The
'
nd
e a Provid e a range of the costs lnvofved Cost estimates start out broad, anct as varioUS
sta ges are completed th ·
, ey ar:e more accurately defined.
Accuracy
Management needs to asse h result In 1he
. . ss t e accuracy of cost estimates and budgets. Unantfdpated expensescan
proJect being abandoned Cost st I If •...., are too liberal
· . • ' mates that are overstated also have negative consequences. u-,
they can kill an otherwise viable project by kf
ma ng It look unaffordable .
Considerations

- At times not sa>ping th e project thoroughly enough, not.understanding technical d'lfficulties a nd making changes
are the most common reasons why projects do not adhere to cost estimates and budgets. Cost estimates can
never be too detailed .

- Every change should be

docume "nted thoroughly. Management should consider how changes affect other phaseS
th
of e project. A simple, vet effective tool ls to use a spreadsheet to prepare the cost estimate. and keep all of
the important data visible fn cells, instead of hidden in formulas.
Project Management Software

An effective and simple way to estimate costs and prepare a project budget is to use project management ~-
Most software has features that identify the types, quantities, and phasing of different twes of labour. It also has
capabilities for ~mating the costs for individual project pieces and adding them togethe .r to reach a project total
The pieces can differ . In size and number from a few large phases of a project with known costs to hundreds or
thousands of small tasks . 'I

7.2 Key Components of a Cost Estimate

A cost estimate is the . sum of all th~ costs involved In successfully finishing a project from initiation to completion.
project costs can categorized In a number of ways but the simplest classification divides costs into two main

• Direct costs

They are broadly dassifled as the costs that are dlrectly associated with a single area such as a department or a
project . In project management, direct costs are expenses billed exduslvely to a specific project. They can indude
project t~am wages, the costs of resources to produce physical products, fuel for equipment. and money spent to
address any,project-spedffc risks. ·

They are not associated wtth a spedflc cost and are Instead Incurred by a nuniber ~f projects sfmultaneousl
IOmetlmes in varying amounts. In project management, quality control security costs d .•. y
. • . . , an uti 1ities are ~ally

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r P

dassin
oct Ma
na
ed a~ lndl
80lon1 Ml/ 3· 1B
Project Planning &

j ctS and are not dir

umber of pro e
ectJ
Y billableto
II
Prt>Ject. costs since they ilrc shared across ., n
Be\'ond penses fall Into more specific
the bro 3 . t project ex
C'.ornrn0 0 d dasslfi catlons of direct and indirect cos s,
(IJ •_
t\1>esore,rPetlse5/ndude :
(hJ
-hour•• The cost of human effort expended towards project objectives.
Matertafs · Th od cts
(fii) · e cost of resource s needed lo create pr u ·
£qu1Pntent d fn project work.
(h,) : The con of buying and maintaining equipment use . ( d rs contractors ..
Sen,Jces• n.. given project ven o , , .....J.
• '"e cost of external work tha t a company seeks for any
(v) Software . N . .
(\'i) · on-physfcal computer resources.
Harctwa~ . Ph
( • · VSlc.al compu ter resources.
vnJ Fadlltfes. Th I s or locations.
• e con of renting or using specialized equipment, serv ce 1
('lrlli)Conti fi · lcs
'1Bencycosts : Costs added to the project budget to address specl JC ns ·
3.7.3 Pro•ect
1 Cost Estimation Techniques
........_ ~any factors affect project cost es timation making it difficult to come up with predse estimates. Ludcily,
-.,;;;um1questhat h I •
can e P m preparing more accurate cost estimation.
1. Analogous Estimating

Here, experts Who have experienc e in similar projects are approached for he(p. They use your own historical
you have access to relevant historical data, tty analogous estimating, which can show precedents that help
what your future costs will be in the early stages of the project.
2. Statistfcal Modeling
Statistical modeling, or param e tric estimating also uses historical data of key cost drivers and then calcu
what those cost would be if the duration or another aspect of the project is changed .
Three Point Estimate : Another approach is the thre!?"point estimate , which comes up with three scenarios:
likely, optimistic and pessimistic ranges. These are then put into an equation to develop cost estima tion . .

3. Reserve analysis
This technique determine s how much contingency reserve must be allocated. This approach tries
uncertainty .

4. Cost of quallty
This techniques uses money s pent du ring the project to avoid failures and. money
-
applied after the project
failures . This can help fine-tune your o verall project cost estimat ion. And comparing bids from vendors can also
figure out costs.

5. Bottom-up Analysis
This technique supports the Idea that the individual cost of ea ch activity or entire work package is of
importance. By using the method , ind ividual scheduled activities or a work package can be estimated to the
detail . All estimates are grouped and sorted by categories and then gathered into a summaiy table that is
tracking, control and reporting purposes . ·

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 3-19
Top-down Analysls
This technique is opposite t 0 th
e Bottom-up Analysl It
project's beginning and the t
Pvnart s. assumes that the owr.111 budget is det .
-- earn needs to Identify the eosts of each~ l!Tfflined at the
Th e technique allows determ\ 1 th _.,."' Item.
n ng e number of requ ired i..£..t
Breakdown Structure) which r fl cts th ac:t,Ylues and tasks refffling to the W8S l\u
. e e e necessary wot1( Items and WOrlt padc es ,....c:x\
By using the WBS, the expert team can determ ine the uan ag .
fixed budget . They may dedde to add q . tlty of the wot1t Items that can delive-eidwithinthe
or remove certain items In the WBS in order to ftt the ftxed budg,!t.
3.7.4 Cost Estimating Process

Detennlne Estimate Basis

- This ~ep_focuses on obtaining project information Including all previously developed protect scope and schedule
details and data from which a project cost estimate can be prepared .
- The level of scope detail varies depending on the project phase, project type, and project complexitybut womd
include the design matrix and criteria, all assumptions and pertinent sc.ope details.
- The estimate basis should be clearly. documented and forms the beginning of the estimate file that be
prepared for each estimate. Each of the following steps will add informationto this file with thl! end resultbeir,g
a complete traceable history for each estimate .
Prepare Base Estimate
- This step dev elop s the estimated costs for all components of a project. exduding future escalatfon. These
components may be estimated using different techniques depending on the level of scope definitianand the size
and complexity of the project.
The number and detail of components estimated may vary depending on the project daelopment phase.
inputs to this ste.p include pro ject scope details, Historical Databases and other cost da•abasu. llt.uwledge of
Mat1tet Conditions, and use of Inflation Rates.
A required component of the base estimate step is the preparation of a Basis of Estimate. document ttgt
describes the pr~ject in words and indudes underlying assumptions, cautionary notes.and

Review Base Estimate

This step is necessary to ensure that
(i) Assumptions and basis are appropriate for the project

{ii) The base cost estimate is an accurate reflection of the project's

nd
scope of work . .
·rec1 components are not nwssa,g or double
{iii) Scope, schedule and cost items are calculated property a requ1

counted used reasonably reflectsproject scope and

. b d estimate data or other data that was
(iv) Historical data, the cost ase ' .
site conditions .
4.: Oetennlne RlskS 8nd Set Contingency and 1s an integral wmponentof praie<t
·
1
a risk management plan for a project. and
This ts part of develop ng na ement Is an active and ongolOI process of rNXimlMa the of
management planning . Risk _ma g (opportunities} and mlnlmlzlng the probability and consequences
f positive nsk events
consequences o (threats) to the project objectives . . a total Pfojed cost.
negatiVe risk events . pact of project risks must be Included to defM
estimating, the cost 1m
In the conteJCtof cost ..........
• , a ,: IJ•

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 Mana 3-20
u
s. Date, The communication a
rnlne Esthnata Communication Approach rnal constitue ncfes. IV this information, how
Cost al and e,cte h uld rece e
estimate data ls communicated to bo1h Intern teated wh0 5 0 nicated.
determines what estimate lnformatJon should be commun tJon ~hould be cornmu
inform the lnforma developed as part of the
ation should be communicated, and when mmun1cat1onplan Is f Estimatedocument can
Cost estimate Information should be induded wtten the co th numbers. The easls o mers
management process . Often the words are as Important as e I about the project too • -
used effectfvely as a communication tool to convev key lnformat on
8.
Conduct lndepaocteot Review and Obtain Management Endorsement rrtal documents upon which
Esti mates are key products of the project management pro
cess and are tundame I dependent
hould receive an n .
all estJmates s
management decisions are based . Given their import.ince, d t evlewer comments.
and then be reoondled and revised as needed to respond to 1ndepen en r esti ates should be pr~
. ·1 ·ncorporated,
I m .____
Once independent review comments have been satisfacton Y ped for initial budgeting or UCD1C11
f estimates develo
management staff for approval . Management approvaI 0
definition is a defined step in the project management process. . . d ed should also
as design is eve Iop ,
Revised estimates, typially developed if project requirements change, or ts and then approved.
• fl ct anagement commen ,
revtewed by management staff, revised as necessary to re e m

3..7.5 Advantages of Cost Management

It helps in controlling the project specific cost, in tum also the overall business cost.
One can predict the future expenses and costs and accordingly work towards the expected revenues .
Predefined costs can be mainta ined as records for the business.
It helps in taking those acti~ that are necessary to ass ure that the resources and business operations aim at attaini
the chalked objectives and goals.
It he.lps in analysing the long term trends of the business.
The actual cost incurred can be.compared to the budgeted to see if a!ly·component of the business is spend ing
than expected.
It helps in analysing the bus.iness positioning in terms of making an acquisition factoring the cost component involved.

3.8 Bottom-Up Estimating

Bottom-UP estimating Is a project management technique In which the people who are going to perform the wortc
part in the estimating process. Typically those people are the employees, vendors and other project team members.
They wort wfth'the project manager to deve lop estimates for tasks in the woric breakdown structure (WBS).
the estimates of the amount of wor1c, duratJon and cost at the task level lets you b. th _
com tne em into estimates
higher-level deliverables and the project as a whole.
Bottom-UP estimating is the most accurate approach to estimating the cost d d .
. an urat,on of pro.ect -•'-• It
r,equires the most tfme. This estimating technique gives the entire project t :I
eam the oppart · k
developing the estimates used to mea ~ure their worlc. unity to ta e . part
As a result, t,ottom-up estimating tends to develop a higher level of J
pro ect team co · ·
·mates
esti
The drawback of the bottom-up approach however th mmttment than other type,:
• ' , I5 at It tak
techniques . Another problem fs that you must wait to know who will be es more time than other ·
up estimating. on Your team before YoU do thecan

........
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 3-21
_ Bottom-up estimating Is a way to estl p Pia &
mate an overallvalue by ·
the sum total of these values as th approxtmatlngvalues for srnan
e overall value In p J tt componemsand ustng
schedule or budget. · ro ect management, this type of estlmatfna ,_ ,_....,
· ·n. 0 U><:U to create a

_ Typically,the project wortc Is broke d

n own Into smaller com nt
to each component. The schedule dete . pone s and an estimate of duration and cost Is fflilned
I
determined by aggregating the I dlvisd rm fned by a&greflatlngthe Individualduration estfmate,, wNfe the.._,__ ,
n ual cost estimates. is

_ The advantage of bottom -up esti

mating Is that It leads to great
component of the project work.·A er accuracy because It tates Into C0n1lder.ltJoneach
ccuracy Is also achieved because the estl for
individualsresponsible for these compon ts· th mates each component are tfo,el bi(ttle
en . e ones who know the work well.
- The _primary disadvantage of bottom-up estimating Is the time It takes to complete. In order to Qin!
consideration
. . each component of the project work, th ese components must first be Identified throush Into
decomposition. This process ls long, and can be even mor wh I '
Involved. · e so en a arge amount of or conlplex WOffr is

- Another disadvantage of bottom-up estimating Is that It can be costJy.The time spent dtt.ompost"I project work Is not
---1&..1.-
m..duaIs r"'->t"""Qf"""for mnpedt• the
free. Additionally,the estimation done for each component. Is given by the lnd:.
components .
In ~eneral, bottom -up estimating is not the best choice for projects that do not allow for long periods cA ptar,nh• or
proJects that have contracted resources that typicallydo not start on the project much earfier than when the wc,r1r is
going to be completed.

Top-Down Estimating

Top Down estimating is a project estimating technique .in which the overall project is estimated first, and indMdual
tasks are apportioned from it. You start from the top of the pyramidand work downwards..
' '

- This type of project budgeting usually occurs when there Is a fixed budget and/or the scope of the proiect must flt
within a predetermined funding level, particularfywhen.projects aren't blessed with rich resources.
Top Down is the opposite of Bottom Up Estimating,whereby individualtasks are estimatedmt and 9raled up~ Into
the overall project estimate .
- In top down estimating, individual task estimates are only as accurate as the overall project esti~ they are demed
from. If the overall estima~ is incorrect, nothing will make the Individualtask estimates accurate.
- And because projects are normallytracked via lndlvldual tasks, this could lead to Issues duri• the project when
individualtasks are fncorrectJyapportioned, even though the overall estimate Is correct.

- Top-down estimating can be very useful when cost ~mates are needed In the very early phases of a project. This Is
typicallywhen not much Is known about the project and very llttle Information,If any, ls available.
- Since this technique Is based ~n high level Information, the estimated cost can be calctllated faster and wilh fewer
resources and effort. Therefore, It's a less expensive quick method for establlshlngthe project budpt than ocher cost
estimating technfques that require.more detailed Information.lnvoMnamore time and resources.
Another good advantag~ Is that top-doWn est1matln1gets greater commitment for the project from upper~!
management, while relaying to the 'tower management staff expectations for the budseL

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 project Plannin
P ·
ect Mana ement MU 3-22
3.9.2 Moat .
. Usect Top.Down Methods · . posal. sometimes much ot
A roJect pro .
t the strat evaluate the P . . I hase of the proJect .
informau egic level top down estimates ar«: used to ·lable in the lnttla P .
on needed t is not ava•
to derive accurate time and cost estlma es
1· Conae ·
nsus Methods to estimate the total p
This I iddle manage ..
method simply uses the pooled experience of senior and or m and ultimately reach a dec1S1on
d Uration and · erts discuss, argue,
th cost. This typically Involvesa meeting where exp
elr best BUess esti
mate .
2. Ratio Methods .
estimates are often used in
Top Down estf ti or costs Top oown
mates usually use ratios to estimate project mes : f the project.
concept or • n eed" phase of a project to get an initialduratjon
.
an d cost estimate or .
3
• Apportion Methods
· . . used when projects dosely follow
This method Is an extension to the ratio method. Apportionment ls •ckJ with little effort
•
ProJects • tes can be made qui Y
• features and costs. Given good historical data, estJma
m
reasonable accuracy . ·
.
Th 1s method is very common in projects that are relatively stan ar d d but have some small variation
•.
. . . Anyone who has borrowed money from a bank to bui·id a house has been exposed to thlS pr
customu:ation

3.10 Network Planning

Network Planning is a technique used in Project Management. It is used to plan, schedule and control the projects
consist of many interrelated activities. There are many techniques used in Network Planning. The techniques sepa
planning and scheduling functions .
Network Planning uses a network diagram to show various activities of a project. The diagram shows vari
sequences of the activities to be done using different techniques .
In other wo~s, we can say that the network planning is the categorisation of the activities involved in proj
implementation in a sequential order followed by a schematic presentation of the activities ne~essary for the
project.

3.10.1 Steps u~ in Network Planni _ng

A- Identify and list the category of activities involved from the start to the completion of the project. The activities
grouped in categories which are different from each other.
B. Arrange the list of activities in sequential order of their performance. There may be a0:ivity which can be started
after the completion of some other activity, whereas there may also be some o~her independent activity which
started simultaneously.
In network planning, such independent and inter-dependent activities a;e laid do • •
. · wn a 1ong with their estimated
schedule, i.e. the duration estimated from the start to the completion of the activity.
,. With the details of following A and B , draw the diagram of the netwo .rk 0 f th . •.
- - . . . e act1v1t1es so that the opera
planning of the execut.Jon of the entire proJect can be visualised. ,
. This whole procedure is the network planning of the project schedule which ma . - .
- ct easier than to look around the list of activities and locate 1 • kes the monitoring and controlll
the proJe apses, 1f any .

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 Project Management (MU) 3.23 Protect Pk!nning& Schedu6ng
The network planning as detailed here Is a tool available to the proJe(t management for a systematic project
scheduling. Under such i:nethod the lnter -relationshlp of the various 11ctMtles Involved in the project ~hedole will he
visible in the total plan and, as such, steps can be taken to economise the consumptJon of resoorce., whttl!'V'l!r ~si"ble .

Network Diagram

A network diagram is a graphical representation of all the tasks, responsibilities and work -flow for a pn>fect . It often
looks like a chart with a series of boxes and arrows. It Is used to map out the schedule and work sequence ro, the
project and track its progress through each stage, up to and lndudlng completion. Since It encompasses t!YefY single
action and outcome associated with the project, a network diagram also illustrates the scope of the pn,fect.

_ A network diagram not only allows a project manager to track each element of a project and quickly share its status
with others, but also improves comprehension and enhances retention . As research shows depicting data In a visual
way can also boost performance and productivity while reducing stress among your t.eam members.

_ The project network diagram displays the duration of activities In the project , their chronological orde.r and logical
~ependencies between the activities graphically or In tabular form.Unlike the work breakdown structure (WBS), a
network diagram also takes into account the chronological order of activities according to their dependencies, and not
just the logical order of the project activities. Bar charts su~ as Gantt Charts are a special form of the networ1c
diagram.

3.11.1 Main Functions of a Network Diagram are

Determination of the total duration of the project

- Representation of the logical and chronological order in the project

ldentify ing Risk by identifying the critical path and the potential bottlenecks in the project process

Identifying opportunities where the project process can be streamlined

management. hardly any

The network diagram is the foundation for the project scheduling •. In modem project
network plans are calculated •manually" anymore. Project M_anagers use a P.roject management software to do so.
However, understanding the basics of the method enable you to better understand your own project plan.

Tasks

- · Prior to the construction of the network diagram, the project needs to have been broken down into its constituent
tasks. Tasks should not be too 'small or they become prone to micromanagement. Neither should they be too large to
lose the benefit of project control. So, a large task Is ~o different than a whole project .

For an example, a simple task list for a small convention could be:

o Finalize Attendees
o BookVenue
o Order Catering

o Write Speech
o Travel&Setup
- Interestingly, several of these tasks can be done In parallel. If you force yourself to perfonn Heh tJlsk one after the
other, you might be taking too long. That's where task dependencies come In.

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 p

~- · d pendencies of each task. In

e 1ned the
Prior to the it would not be part of the
st have determ
every network diagram. the project manager mu t the first task} etse ne another.
ta.sit must be dependent on at least one other (exceP all depe ndent upon o
Hence tf k sure thev are
• 'YOt.l an! In a project management dass, ma e .
lherean!ft>ur.___ .
•r~ofdependendes : I . the most common·
(I) pletes Th s is
Ankh tD Start (FS) : Task e cannot start untn Taslt A com ·

(li) Rnlst\tD Rnlst\ (FF) : Task B cannot finish unti1 Task A comp letes .

(Iii) S'tartto Slalt (SS) : Task B cann ot start until Task A starts.
(hr) Sta rt (this one is rare) .
rt tD Rnlsh (SF) : Task B cannot start until Task Asta ·1 nod of ttm.
. T k B doesn't start unti a pe
Also. the tasks do not have to line up exactly . A lead time means that as . nagement software,
elapsed, and a lag time means that Task B starts before Task A finishes . In proJect ma
usually only a lag time specified , and a lead time is simply entered as negative lag.
•onsh' is by far the most common and if
It SOUnds oomplicated, but suffice it to say that Finish to Start (FS) relati •P
Stick to that. you won't get into much trouble . .
1 • de • •
n Pf'OJeCt man.-gem~t. the network diagram is a graph ical p1ctton
of a project schedule which uses
.
bous1
represent each task. It is used to determine the aitical path, as well as the float of each task.
(i) Critical hth : These are the tasks which define the completion date of the project. They cannot finish late, or
moved. or the overall project completion date will change by the same amount.
(i) Roat : It is the amount by which a task can move without affecting the completion date of the project.
path tasks have a float of zero . It is also called Slack.

3.1 1.2 How to Create a Network Diagram ?

Creating a n etworic dJagram can be an Involved process that begins after you have determined predecessors
activity. Here's a simple example that can help you learn how networit diagrams can be useful in any project
manage.
You find out how to draw the network diagram for a sample project from the information in the table shown he.re :
Paede(essor Rmtionships for YOUT Picnic
~----~ .;_. ....- -·. ---'
.. , - -- .:>·
r~~~!, ..
• ;
1·!": '--~ "'- . .. ,,.. ,,. ...t

lI
:, 'I.· ,.J... ,a
,, ,-~~- .-"
-.;:~ -,

-;..~~Ill!'!~ : .- . < -- -,~

DNcrl~ n~ -. t.'_
M -

1 Load car 3,6

2 Get money from bank s
3 Make egg sandwiches 7
4 Drive to lake
1
s Decide which lake
None
6 Buy gasoline
2
7 Boll eggs (for egg sandwiches)
s
Table3.1 1.1

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 .f ProjectManagement(MU) 3-25
Prot:;tPlanring& Schedl9
1. Begin your project with a single mllestone and label It Start.
2. Find all activities in the table that have no Immediate predecessors. They can all start as soon as you t>ea,n your
project. In this case, only Activity5 has no Immediate predecessors.
, 3. So, Begin your diagram by drawing the relationship between the Start of yoor project and the belfnnlns of ActMty s.

Rg. 3.11.1

. . 4. Find all activities that have your first activity as an Immediate predecessor. Activities 2 and 7 have Activity 5 as at
immediate predecessor. Draw boxes to represent these two activities, and draw arrows from Activity 5 to AdMties 2
and 7.
s. Continue in the same way with the remaining ~cthrities.

Rg.3.11.2
Draw a box.to rep~ Activity6 and draw an arrow from Activity2 to that box. Only ActMty 3 has ActMty 7 as
an Immediate predecessor. So draw a box to represent Activity3, and draw an arrow from Activity 7 to ActMty 3.
Now realize that Activity·1 has both Activities 3 and 6 as Immediate predecessors. ~. draw a boll
representing Activity1 and draw arrows from Activities3 and 6 to this boll.
The rest is pretty straightforward. Because only Activity4 has Activity1 as Its lmmedl~te predecessor. draw a box
representing Activity4 and draw an arrow from Activity 1 to Activity4.
6. After adding all the activities to the diagram, draw a box to represent End, and draw an arrow from ActMty 4 (the last
r
activityyou have to complete) to that t?ox.

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r ProJect Mana ment (MU)
3-26
Project Plannin

suvassolJne
• rs-10 _, .,

, Start Decide which lake

I/ la Q ·: '5 =2

,._. Make ,
• sandwiche9 ,
ti= 10 ·

Ag. 3.11.3
. .· ur friend take to get to the lake far
Now for an 1mpartant timing-related question. How long will you a nd yo d th
. S2 I utes to complete, an e 1owe,
prcnlc? The upper path (Start , Activities 5, 2, 6, 1, 4, and End) takes mn .. th .
(St.art, Activities 5, 7, 3, 1, 4, and End) takes 57 minutes to complete. Thus, 1•t wr·11 take 57 minutes from e
start until you arrive at the lake fur your picnic, and th!? lower path is ~e critical pat.h.

3.11.3 Types of Network Diagrams

There are two main types of network diagrams in project management :
1. _The Anow _diagramming method (ADM), also known as •arrow network"' or •activity on arrow'"; and
2. Tha Precedence diagramming method (PDM), also known as '"node network"' or •activity on node .•

1. Arrow Diagram Method (ADM)

The arrow diagramming method uses arro\\'s to represent activities associated with ttie project.
In ADM:
The tail of the arrow represents the start of the activity and the head represents the finish .
The length of the arrow typicallydenotes the duration of the activity.
Each arrow connects two boxes, known as ..nodes.• The nodes are used to represent the start or end
activity in a seque.nce. The starting node of an activity is sometimes called the "i-node; with the final
sequence sometimes called the .,j-node."
The only _relationship between the nodes and activity in an ADM chart can represent is that of .,finish to
FS.
occaslonally, •dummy activities" arrows that do not represent a direct relationship need to be included

.n
etWork diagrams . An ADM chart also does not have a way to encapsulate lead and I ti.
.
•h .
ag mes wit out intro u
d
nodes and activities, and it's Important to note ADM Is not widely used anymore d t 'ts . ·•
ue o I representational lim
2 • p,ecedence Diagram Method (PDM)
In the precedence diagramming method for creating network diagra h . .
- · I • hi . ms, eac box, or node represents an
the arrows representing re at1ons ps between the different cti . . .
a Vlties. The arrows th '
possible relationshlps : . . can ere,ore rep

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 ProtectManagement (MU)
3-27 Protect Planning& SehaeUk)Q
(II "Finishto Sta rt" (FS) : lhls Is used when an activitycannot start before another activity finishes.
(11) •
start to Slart" (SS) : This Is used to Illustratewhen two activitiesare able to start simultaneously.
(Iii) •Ftnlsh to Flnl~h• (FF) : This Is used when to tasks need to finish together

(Iv) •start to Finish• (SF) : This Is an unoommon dependency and only used when one activity cannot finish until
another activity starts .

In PDM, lead times and lag times can be written In alongside the arrows. If a partlwlar actMty Is golng to require 10
days to elapse until the next activity can occur, for example, you can simply write "10 days" over the arrow
representing the relationship between the connected nodes.
PDM network diagrams are frequently used in project management today.

Beforestarting to draw the network, following measuresshould be taken aetlally

- Prepare a list of the activities Included In the project and their dependence on other act:Mties.
- Draft the network roughly, usuallyby soft pencil and an e~er on a large piece of paper.
- The estimate of time required for each activity is made considering manpower and equipment's available and In
c-ertaincases assumptions are based on statistical approach and experience.
These time estimates are then written on each activity.
- Then scheduling computations are done to get earliest and latest allowable start and finish times for each activity, to
identifycritical path and to indicate the amount of slack on non-criticalpaths.
- Now this is prepared in final form for use in the field. Project is controlled by chedcing the pc 081 ess against the
schedule.

3.12 Network Analysis

- Network analysis has played an importan~role in field of engineering. Applicationof networtcanalysis has been made
In information theory, study of transportation problem and planning and control of research and dewelopment
projects.
- In transportation problem, there are member of routes to reach a terminal,
. but we liketo choose
. a route far which the
cost or time is minimum. Th~re is a problem to select the shortest route through a netwult. Thus the problem of
network analysis is to find a course of action, which minimizessome measure of perfonnance.
- A project consists of no. of interrelated activities which must be executed in specificorder to complete the project. The
activities are interrelated In a logical sequence in such a way that some activities cannot start until some othersare
completed.
- These activities require time and consumption of resoun:es like labor, money, material and machine ett. The main
· objective before starting any project l.s to schedule the required activitiesIs an efficient manner so as to completeit-on
or before a specified time limit at minimum cost of its completion.
- The techniques which are used for planning, scheduling and controlling large and complex projects are termed as
network analysis or network techniques. These techniques are based on the representation of the projectas a network
of activities.
- · A network is essentially a araphlcal plan consistingof a certain conflsuratlon of arrows and nodes for showi,. the
logical sequence of various activities to be performed to complete the project.

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 ~Plann l
3-28
3.12.1 Basa
C of Network Anatysl•
,. Ar4I......._
- -~yqy sits called a<;t:Mtjes, which
All J)roj~
rn.., be
~..t of ~ons
as being com.,.,--
°'
t1 . ..1.-.ictedby a single
acttvftYiS ,.,._.,. __._
~dtture of time and resources for \her accomplkhmentS , M rrc,,# ls not sc-aled; the 1.::.,gu• of the
netwo."k. The actMty arrows are called arcs. lhe a nt importance of time.
time Is onty a matt:tt of ~ lence and darttv and does not ~prese not begln until the com
The All adMtY c.an
heact of the arrow shows the sequence or flow of actMtJes. beginning and end of each KtMty
the ~ ins ac:tMties . It Is Important that actMtles be definedso ttlat
Identified dearty .
Ad,vtty
0 0
Start End
3.12.1
Generally, thett are three types of activities found in a networtc. which are :
(I) more other activities start.
Prene- essorActivity: It is an activity which must be completed before one or
(ff) Soa::essorAafvfty: This is an activity that cannot be started until one or more of th e other activities
but immediately succeeds them.
(ii) ConcunentActivity: These are the activities which can be acc.omplished conaJrrently are known as COl'IC&IITI
activities .
(iv) Dummy ac:tfvlty: This is an activity which does not consume any kind of resource or time is known as
activity. A dummy activity is added in a networ1t only to establish the ·given precedencerelationship among
activities of project in following two situations :
(a) When two or more parallel activities in a project have same mrting and finishing points.
(b) When two or more activities have .some (but not all) of their immediate predecessor actMties iri c:ouunon.
A dummy activity is generally shown by a _dotted line in networ1t diagrams :
A B D E

Fig. 3.12.1

2. Event
An event In a networ1c diagram Is a specific lnmnt of time which mar1ts the start, or the end of an activtty.E
consumes neither time nor resources . It Is represented by a circle and the event number is written within the d ·
The event drdes are called nodes. Therefore, the major difference between actM\ies and events is that 'rtNma
31
represent the passage of tJme whereas events are points In Ume.

All actMty arrowsmust besln and end with event nodesas shown as follows

@~(§
Fig. 3.12.3

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 -
projectManagement (MU)

('he events can be further

3-29

classifiedinto following three categories :

Project Planning& Scheduling

Rg.3.12A
(i) Merge Event : An event which represents the joint completion of more than one activity is known as merge
event.
(ii) Burst Event : An event which represents the beginningof more than one activityIs known as burst evt!nt.
(ffi) Merge and Burst event : An event may be merged for som·e act.ivities and burst for some other activities
simultaneously.

Merge Burst Merge and

event event . Burstevent
(a) (b) (c)
Fig. 3.12.5

12.2 Advantagesof NetworkAnalysis

Sequence of Activities : Schedule network analysis specifies the logical sequence of activities required to adlieve
projectgoals. It uses sequencingand dependencies to establish activityrelationships.
Critical Path : Schedule network analysis uses techniques like CPM and PERT to identifythe aitical path of a project.
The critical path is the longest path of a schedule network diagram. Refer to paragraph •CriticalPath Method (CPM)
Scheduling-to understand other features of criticalpath.
ProjectDuration: It analyticallyestimates the minimumduration before which the project cannot complete.
CriticalActivities: Not all activitiescan start and finish at the same time. Activitieson criticalpath are criticalactivities.
Hence schedule networkanalysisIndicatesexactlywhich activitiesneed maximumattention of project team.
· Scheduleflexibility: It is permissibledelay in activitiesthat are not on criticalpath. It uses mathematicalcalculmons
to establishearlystart. early finish, late start, and late finish of each activity.
- ScheduleModel : It is the output of analysisprocess.The schedule model helps to conduct risk and ~o a~ of
projectschedule.
- ScheduleAnalysis : The schedule modet allows further analysis like What-if analysis, sten:ario analysis and schedule
compressiontechniques.
'.
3.12.3 Techniques In Network Analysis

The most commonly,used netwod techniquesare :

1. CriticalPath Method (CPM)
2. ProgrammeEvaluationand ReviewTechnique(PERT}

• ...... ,.,...
1\:::1 •

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 p
3-30
3.13 Crttlcal Path Method (CPM)

- CPM me th od developed was by E.I. du Pont de Nemours Company (USA) In 1958 and named as critlcal path
(CPM) to schedule and control the project. CPM Is applicable to both large and small projects, taking from
Program,. tn ~ddlng or horse shows .

- It Is Widely recognlted and Is the most versatile and potent manasement planning techniques. The objective of crltl
th
pa analysts Is to estimate the total project duration and to assign starting and nnlshlng times to all activitiesI
In the project.

1. Break down the project Into various activities systematlcally . Label all actMttes. Arrange all the activities in I
sequence . Construct the network diagram .

2. Number all the nodes (events) and activities. Find the time for each activity considering It to be deterministic. lndi
the activity times on the arrow diagram .

3. Calculate earliest start time, earliest finish time, latest start time and ,atest finish time. Tabulate activity normal ti
earliest times and latest times .

4. Determine the total float for each activity by taking difference between the earliest time and latest time for
node .

5. Identify the aitical activities (the activities with zero float) and connect them with the beginning node and the end '
node in the network diagram by double line arrow . This gives the critical path .
6. Calrulate the total project duration.

7. It is intended to reduce the total project duration , crash the critical activities of the network.
8. Optimize the cost.

9. Update the network and smooth the network resource

3.13.1 Time Estimate In CPM

The ba.sic objective of the time analysis l.s to get a planned schedule of the project for which the following fa
should be known :
- Total completion time of the project.
Earliest time when each activity can begin.
Latest time when each activity can be started without delaying the total project .
- Float for each activity I.e., amount of time by which the completion of an activity can be delayed without delaying
total project completion time.
Identification of critical activities and altlcal path .
The basic scheduling computations can be grouped Into the following heads :

1. Forward Pass Method (For Earliest event time)

Based on fixed occurrence time of the Initial network event, the forward pas.s computation yields the earliest start
earliest finish times for each activity and Indirectly the earliest e11pectedoccurrence time for each event.
This consists of the following steps :

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 ~31 p
Tlle computation Plannt &
us:a•ns from the start nod
computations start with an e and move to the 'end' node. To attompllsh this, the forward pass
auumed eartlest
I.e. e1 =O; I= 1 occurrencetime of zero for the Initialprotect event.

(ii) calculate earliest start time f

or each activityWhich .._
of event i (Tall event) I e. r~ c ""'sins at event I. This Is equal to the earliest occurrencetlme
· ·• ....,,Q '-t for all activity(I, J) starting from event I.
(iii) caIcuIate ea rllest finish time of ch
of the activity,I.e. ea activity(I, J) which Is the earliest start time of the activity plus the duration

EF11 =ESq+tq
=.E1+ tq
(iv) calculate earliest occurrence ti
.., d' me for event J (J > I) which Is the maximum of the eartlest finish times of all
act1V1ties en mg Into that event, I.e.
E1 = Maximum (£Sq+ liil .
= Max (E1+ tq)

The computed values are Put Into the lower left portion of each event. ·
2. BackWard Pass Method (For latest allowable time)
In this method calculation begin from last event L
The various steps are as follows :
(i) Set the latest occurrence time of last event L which is equal to the earliest occurrence time of that event
obtained from forward pass method. ·
i.e., Assume L = Efor endingevent.
(ii) Latest finish time for activity(ij) equal to the latest event time of event j, i.e., lfq =
(iii) Latest starting time of activity(l,j) ls the latest completion time of (l,j) minus the activitytime Le.
LSiJ :s lfiJ - liJ
= t.-t u
.
(iv) Latest event time for event i is the minimumof the latest start time of all activities origlnatina from that event.
'·
Thus
L; = Minimum (L.Sii)
= Min (LFIJ-l;j)
= Min (~-Lt;)
The computed values are put Into the lower right portion of each event.

3.13.2 CPM Systems

1. Activity-On-Arrow (AOA) Network

In this type of network representation actMtv Is represented by an arrow. The tail of the arrow represents the nm
and the head of the arrow represents the end of the activity. The description of activity Is written above the arrow.
Events are represented by drdes or nodes at the start and the end of an activityarrow.
These diagrams have a'slngle starting node from which all activitieswith no predecessors may start . The diagram then
move from left to right, ending with a singleending node, where all activitiescome together with no successor.

..........
,
• • , , • •• , 1 •• •

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 p~ Planning&

Advant_acesof AOA Networi(

- Many computerprogramsare based on f\Of\ network.

- AOA diagramsgive a better sense of the flow of time throughouta project.
- AOA diagramscan be superimposed on a time scale wtth the arrow diagram, the correct length indicate the
requirement.

2. Acttv1ty-On-Mode(AON) Network
In AON networks, activities are represented by drdes or nodes and arrows are used only to
dependency relationship between the activity nodes. Generally these diagrams have no partiaJlar starti
ending node for the whole pro}ect. The ladt of dummy activities in diagrams makes them easier to draw
understand.

Advantagesof AON networb

- AON diagramdoes not require dummy activities.

- They are easier to draw and understand.
- Theyare easier to revise and update. '

3.13.3 ComparisonBetweenthe Representationon AOA and AON Networks

Point AOANetwort( AON Network

(i) ActivityA

(i) B mustfollowA ~!3.r'J:\

(i) B and C must folowA

frv) C must followA and B ·

(v) C must followA and O

must followA and B

3.13.4 Rules of AOA Network Construction ·

Followingruleshave to be followedwhile construct!

. ng a network:
- In networtcdiagramarrow representsactivitiesand drde th .
s e events.The length of arro h . .
- Each activityshould be represented by ly w as no significance.
on one arrow and must start a d nd .
arrow representsthe start and head the completionof wortc. n e in a circle called event. The bil ofi
- The directionof arrow Indicatesthe directionof wort( now Th
All . e normal conventionIs t O f
- networlcsare constructedloglcall the b go rom left to right.
Yon asls of Principleof dependency.

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 Mana

pt events cannot occur until all the Incoming activities Into It have bttn completed .
pt activitY cannot start until all the Preceding actMtJ~ have bttn compf~ed .
t40 set of activities cannot form a drcular loop.

13-5 Numbering the Events (Fulkerson•• Rule)

,Jtt r the networic is drawn In a loglcal sequence, every event Is assllned a number . The number sequence must be
so as to reflect th e flow of the netwonc - A number Is placed Inside the drde . The rule deYtsed by D.R. Fufltttson Is
used for numbering .
The procedure for applying this rule conslsts of Identifying the Initial event and then gradually mmoertfnl the
succeed ing event by deleting the arrows from the previous preced ing events . A number is assigned only when by such
deletions a node is converted Into fnltfal event. ft Jnvofvesthe foflowfng steps :
0
Event numbers should be unique .
0 Event numbering should be carried out on a sequentlal basis from left to right,
0 The initial event which has all _outgoing arrows with no Incoming arrow fs membered as.
0 Dele te all arrows etnerBing from all the numbered events . This will aeate at least one new start eveYt out of the
proceeding events.
0 Number all new start events 2. 3 and so on. Repeat this process until all terminal event without any s-JC • essor
activity is reached, Number the tennlnaf node suitably .

EJarnple : Construd a netwonc for the project whose adMfies and their precedence raationship 818 as giYer1 as fellows :
ABC DEF · G HI

A A D 8,C,E F D G,H

olution :
From the gjyen constraint, it is dear that A, D are the starting activity and I the terminal activity. B and Care staa tile
ith the same event and are both the pred~rs t;;f the activity F. AJso E _has to be the .,redec:essor of both F and H.
!IICe, we have to introduce a dummy activity.

(•) (b)

(c) (d)
Ag. 3.13.1
1 is the dummy activity.

• ....., ...,...
a,;c r•

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Rnalty we have the followlng network

H
Rg. 3.13 .1 (e)
The constructionof C.P.M. diagram can be explainedby the followingex~mples:
. lhe .........i-. op818fiocl8 -
Example 3.13.1 : Fof the constructionof wall the complete processcan be broken intO IUOIU'l"f" "II •

(i) Brick laying A (ii) Preparingmoftar B

(iii) DiggingfoundationC (iv) Planning1he foundationD

Solutlon:
These following operation have not been written In a logical sequence. These operations can be denoted by
symbolsABCD.
The C.P.M. diagramcan be drawn as shown In Fig. P.3.13.l(a}.
D C B A

Ag. P.3.13.1(a)
The operations D, C, 8 and A have now been shown in the logical sequence. From the study of these operations, it ·
found that preparingmortar is independent of diggingfoundation and planning operations. Therefore a mocfifiedU.
diagramis drawn in Fig. P.3.13.l(b).
Dig
Foundation Planning
•, t ·----f

Prepare
Mortar
Rg. P.3.13.1(b)
In this Fig. P.3.13.l(b} numerals (1, 2, 3, etc.) are used commencing from the first column on the left and then
proceedingtowards right.

Example3.13.2:A ladderis to be constructed. The variousoperationsInvolvedtn it are :

(i) Fixingof Nails A (II) CuttingWrings B
~ii) DrillingWrings C (Iv) Drilling holes In two BaroooosD
(v) Cuttingtwo BamboosE
Solutlon:

The operations are not given In logicalorder. There loglcalorder will be accordingto Fig. p3 .l3.l{a)
E

Rg. P.3.13.2(a)

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 project Management(MU) 3-35
Projocl Planning& sge:'"2
~rnodified network of the ~g. P.3.13.2(a) Is shown In Fig. P.3.13.2(b)
E A

·1>--~ ·---~

Rg. P.3.13.2(b)
- 'fhe cutti ng and drilling of the bamboos and wrings are different operations, and these are Independent of each other .
Therefore cutting two ~mboos and cutting wrings can be started concurrently . Thus after the end of operation E,
0 peratio n D can begin and similarly after the end of operation e, operation C can start.
_ After the end of operation C and D, the last operation of fixing nails can begin _. Thus the network is drawn from left to
right and each drc:fe representing an operation Is numbered from left to right . All the drdes in the ~me left are
first numbered and so on.
_ It is clear fro m the Fig. P.3.13.~(b) that operation 5 can only begin when the operation 3 and 4 are over. Thus we can
say t hat operation 1 immediately preceding operation 3, and operation 2 immediately precedesoperation 4. Also the
operation 3 and 4 must Immediately precede the operation s.
_ In the language of C.P.M., the operations 1 and 2.are called the pre-operations (or PRE- OPR) of 3 and 4 respectively.
Similarly 3 and 4 both are the PRE-OPR of operation s. Also 3 and 4 will be called post operations (POST-OPR) of
operatio ns 1 and 2 respectively, 5 is the POST-OPR of operation 3 and 4.

EJample3.13.3 : Suppose we want to start a small scale factory in a shed aVBJlable in an Industrialarea in which wakshap
is to be prepared . First step is then to <frvidethe project into operations.
The 6st of operations is given as follows.which is not in a logical order :
A = Machine foundation
B = Electric fitting
C = Repair of floor
D = Installation of machines
E Procure workshop bui~
F = Whitewash
G =Clean up

Its logical order of operations should be E, A. D, B, F, C and G. (Refe.r Fig. P.3.13 ..3(a)).

Rg.
- If each operation is represented by a drde then this worlt can be executed In a better way as follows :

- Sketch shown in Ag P. 3.13.3(b) is drawn as per drde and line method in which drdes ~presents the operation or
activity and the line shows the relationship between the two activities. The operation on the left of each line should be
completed before the starting of the operations on the right of the line .

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 3-36

Flg. P.3.13.3(b)
- ·
Network shows that operation 3 and 4 are not affected by operations 2, s and 6• Hence the operations 3 and 4 can
conducted at the same time , when 2, 5 and 6 operat ions are being conducted .
- This reduces the tlme to complete the project because after operation 1, oper:ation 2 and 3 can be started
simultaneously. Operations 6 and 4 should be completed before the beginning of the operation7. In the final nf!twodr.
diagram operations should be represented by the numerals Instead of alphabets .

1 2.3
2 4
3 4.5
4 6
5 6
Solution :

As no operation precedes operation 1, hence we s_hall start network from operation 1, keeping it in first vertical
rolumn. Operations 2 and 3 are ~st-operations of operation 1; hence these are kept in second vertical column as shown in
Fig. P. 3.13.4(a)

•t------1 ~ ,

Flg. P.3.13.4(a)
As operation 4 can be started when operation 2 is C?mpleted therefore, it will be kept in third vertical column.
Operations 4 and Sare the post-operat ions of operation 3 and can be started simultaneously after completion of operation
3, henceoperations 4 and 5 both can be kept _in the same third column. As operation 6 is the post-operation of operations
4 and 5, hence will be connected by both 4 and 5 an~ will be placed in the next column, I.e•• in the fourth column as shown
in Ag. P. 3.13A(b)

Flg. P.3.13.4(b)
In Fig P3.13 .4(b) , line connecting operations 3 and 5 crosses another line; hence It may be arranged In a better and
dear form as shown in Rg. P.3.13.4(c). ·
. ' .

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 ,_ project Management(MU)
3-37
Project Pfannlnp & Scheduing

5
Fig. P.3.13.4(c)
sometim~,. it is not possible to avoid ft then the llnes may cross each other but care shoufd be taken that such lines
shOUld be as minimum a.s possible and dear to understand.

Eample 3. 13.5 : illustratesa case In which, operaoonsand pre-operatJons are as under :

2 1
3 1 and2
Solution:

- As the operation 1 is the first operation, hence networtc wilf be started by operation 1 denoted by the drde in first
column. Operation 2 is the post-operation of 1 and therefore will be kept in second column.

- Operati on 3 has pre-operations 1 and 2; therefore opera tion 3 cannot be started unless operations 1 and 2 are
complete. Hence operation 3 can be kept in th ird column , I.e. after operation 2, and not in second column immediately
after operation 1. It is shown in fig. P.3.13.S(aJ.

Rg. P.3.13.S(a)

. painting. in a two s1Dreybuikfmg.

cample 3.13.6: Draw a network diagramfor

>lutlon :
After dividing the project into some operations, networtc can be drawn as per Fig. P.3.13.6(aJ,

Pfasfsr Setect Order Paktl Painting Painting

Wort Co1otn Paint Testing G. Floor I Floor

Fig. P.3.13.l(a)
•
If suffioent ·
men, nt'
equlpme s an
d materials are avaflabfethe netwoncwoufd be better to draw In the form as shown
- the tf fn,o ..-.ufred for selecting colors, ordering and testing pafnts and wfthout waltl,. for
·•g. P. 3.13.6{b) to reduce m D • - ...
• be done on ground floor and In the mean-time plaster wort on first floor w,11 be
plasteron first floor, painting can
can be done Thereforenetwork shown In fll. P. 3.13.6(bJ Is a better dla,ram

.
1pleted and the painting on the same ·
n the paint of vfew that it will savethe time. '
..,., '-.-

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r
M
Plas1er Pinter
0 . floor I floor

Se1ac1 Order Paint Paning Pair'blg

Pai1l Testing G. FloOf I Floor
Fig. P. 3.13.6(b)

..__-_______
Example 3.13.7 : Draw the network diagrams for the project in which PRE-OPR or POST-OPR are given as :
-- .'PRS:.OPR' _,,

A None
B A
C B
0 B
E B
.F C,D , E

Solution:

The CPM netwodtwill be as in Fig. P.3.13.7(a).

Fig. P.3.13.7(a)

Example3.13.8: The example 3.13.7 for the above networ1< diagram can also be framed in terms o1 POST-OPR as given
under: =~~~.,,,...,..,=:-::r.-:,,,,....,,.,,,..--::-,,,-,,-, .
·;J:•~· fPO
~;,,.
'' ...
n .iina
...-.~~l;'"'p t

A Precedes B
B • C,D,E
C Precedes F
D .. F
n
E F
Solution: Refer example3.13.7

Example 3.13.9 : Draw the networ1<for the followingIn which POST-OPRsare given :
,.
;_ J'.!_1.~ ._.;j, .. ,,
.,
I

•:!
.,,...... , v·

.. ·-r ,
•

f,· ~'
••I

i"°8T~Pit
A Precedes B
B " C, [?
C " E,F
0 "
.. E
I

E G
F "" G

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~ect~Mall8~:;;;::!:ge
=me=n=t(M:!=::U=)================3-39~~-==-==-==-==-==_:P;:;rotect=~Pian=n~
ing~&~Sd1:~18d~u::1ing~
~on :
1
fig- p. 3.13-~(a)shows th e sequence of operations A, 8, C and 0. Now the operation E Is preceded by C and the
operation F 15 also preceded by C. Hence, when the drdes are drawn to show the operations E and F, the connecting
lines of OE and CF intersect each other as shown In Ag. P.3.13.9 (b).
-rt,e intersectio n of lines DE and CF can be avoided by placing the operation Fin the fourth sequence above the
peration E, as shown in Fig. P.3.13.9(c). Now the numbers may be placed In the operation drdes beginning from left
; right as shown in Ag. P.3.13.9(d}.
0
A B E

(a) (b)

Fig. P.3.13.9
As tar as possible, the crossing of lines should be avoided . This makes the diagram less confusing and easier to
understand. However, sometimes it m'ay_not be possible or desirable to eliminate the occurrence of such crossing
lines. The numbering should be done starting from left and moving towards right, the first vertical sequence of
operation being numbered first and then the second and so on.

(c) (d)

Fig. P.3.13.9

A MacgubeFoundation 10
B Bedric Fitting 15
C Repairfloor 20
D lns1alla~n 12
E ProcureWortcshopBuilding 15
F 5
WhitewaSh
G 2
Can

lution:
The following activities are drawn in the network as shown ls Ag. P.3.13.l0(a}. Each activity Is represented by the
lJ meraI ·in the arde.
. b
Num ers o
f days are mentioned on the left comer of circle representing the operation.

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 &

3-40

Fig. P.3.13.10(•) ted on the top right comer of

lculated and no
After drawing the networtc d iagra m, Ear1iest Rnlsh for each operation Is ca
the drde in the rectangles . . lue Late.st Anish time
From this va ,
For the last operation 7, Latest time = Ear11est finish time, I.e. 59 days In this case. d nd inscribed in a triangle. For
f the dr e 3 of
for other operations Is calculated and written on the right bottom corner o d required from the latest
the wor1dng
operations 2, 3, 4, 5 and 6 latest finish time Is calculated by subtract 1ng
post operation . "d •ng operation 3
. . .15 - = 15 days and by const en
For operation 1, latest Rnish calculated by considering operation 2 25 lO
Is 52 - 15 = 37 days. In such case lower value Is considered as the Latest Finish.
- Hence for operation 1, Latest Anish = 15 days. ' . ath as
- bl
Operations which are having Ear1ier Rnish = latest Rnish a re joined with dou e
rne
1 and represent the aitica 1 P
shown In Fig. P.3.13 .lO(b) .

Fig. P.3.13.10(b)

3.14 PERT Computation

- PERT (Program Evaluationand Review Technique)was developed by a navy sponsored resource team composed of
Messrs. DG. Malcolm,J.R. Roseboom, C.E. dark and W. Fazor in about 1950.
This Is essentiallya management technique used with advantage for responsibility accounting in addition to attaining
other well defined objectives . It is a method In which we try to exercise logical discipline in planning and controlling
projects.

- PERT Is designed for scheduling complex projects that klvolves many Inter-related tasks. It improves the planning
process because:
0 It forms the planner to define the projectsvariouscomponent activitiesand events logically.
0 It provides a basis for normal time estimates and yet allow for some measure of .; . . ·
• comp ....
estimating d tes 0pumum or pessimasm In ,
1c:uOn a . .
0 It showsthe effects of changes to the overall plan as they contemplated.
0 It providesa built In means for on-goingevaluation of the plan.
0 It facilitates the process of communication betweenplannersm ,
anagement by either adh . . . .
or aosslng over them. In essence, PERT makes the clear cut a . enng organisationallines
ss1gnmentof feSPonsib"t•ty
11 .
P0s-s1ble.

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 _...rt Management(MU)
f_ Pru~ 3-41 Pro;ectPlanning& SmecUng
the project has been planned dI
14fter an ts ImplementationIs underway,PERT continues to be of use in controlling the
,oiect:
P vides all parties Involveda
l• It pro com~n basts of progress reporting, both, wtthlnorganisationand outside of it.
It identifieslikelytroubles pots bef-orethey are encountered. .
J•
_ It provides ~ata speciallytal_li>redto each level of manage~ent.
3
4_ It focuses management attention ·on the criticalpath, where It ls most needed, as well as on otherno-attlcalactivities
that finish resources essential to the completion of actlvttlesof the aitlcal path .
th
5. It permits e effects of various reallocatJon alternatives to be simulated such that the Impact of arry p,oposed
changes in lhe overall project can be predicted. In other words PERT answers'the what' tf questions.
Because of th ese planning and controllingfeatures, PERT Is especiallyeffective in projectswith many disUncttasks in
which the complex inter relationships between tasks and projects with respect to personnel schedulingand time
constraintsare of aitical importance.

3.14.1 PERT System of Th~ Time Estimates

The main objective in the analysis through PERT is to find out the completion for a partkulMevent within specified
date. If yes, what are the chances of completingthe job? The PERT approach takes Into account the uncertainties. In this
approach,three time values are assoeiated with each activityof the optimisticvalue, the pessimistic value. and the most
likelyvalue.These three tim_e valuesprovide a measure of uncertainty associated with that activity • .

1. The optimistic Time

This is the shortest possible time in which the activitycan be finished. It assumes that everythinggoes very well. This is
denoted by tO or a.
2. Most likely Time (Im)

This ls the most likely time as probablythe actual time required to complete an activity . In this case it assumes that
thingsgo in the normal way, with a few delaysor breakdownetc. this is denoted by tm or m.
3. Pessimistic Time ·(tp)
This time is based on the assumption that everythingwill go badly. Thus, it is the maximumpossaaletime requiredto
perform an activity. However,this does not indudemajor catastrophes like labour strikes.acts of God. and unrest. It ls
denoted by tp orb.

t-
i:::,
I
u.

Moetllely Pemnlstic

Fig. 3.14.1 : lime OlntbullllonCurw

.'MF 5 %"

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 pro~ ptanning&

Project Management(MU) 3-42

Expected Time or Average Time (t.) . ble which is characterized by
fact a random vana . ·butfon PERT uses three
In PERT activity duration ls not a singie time estimate, in ters of diStfl
pro~bility distribution usually P distribution . To estimate the parame
estimates for each activity . _ lly to develop the expected time
mbtned statistlc:a th end points and mode
The optimistic time , most likely time and pessimistic time are co . est1mates form e
fi ct·v1 h t the three t,me
or an a I ty. The fundamental assumption In PERT ls t a
Beta distribution . lete hu adding together l/6th of
ctivitVto comP .., .
According to P-dlstribution, we can get the expected time for an a
optimistic, 2/3rd of the most likely and 1/6.'of the pessimistic time est1mate-
Mathematlcally,
1 2 l
fc = 6 t.=3 t.n=6 lp
fc = f-0 +4tm+lp
6

th~
I distribution where 99% of e area
- Variance for an activity is estimated on the basis of analogy to th e norma . ately 6a in length therefore, the
the normal curve lies with in the ± 3a from the mean or fall wi th in lhe rang~ adp.pr~XJbutim_ Thus if denote the standard
. 6<J fa cvmmetrtc istri on. •
interval (to, t) or range (lc,-tp) is assumed to enclose a bo. ut o .. , ...
deviation, then
6cr ==

OT CJ =
Variance of activity tim e,

er = C¥Y
6CJ = lp-to

(J = (¥)
Variance of activity time,

er= (¥Y
3.14.2 PERT Algorithm
The various steps involved in devel oping PERT-network for analyzing any project are summarized as follows :

Step 1:
1. Developa list of activitiesthat made up the projectIncluding immediate predecessors.

2_ A rough PERT network is drawn on the basisof the three questions for each activity.
{i) Which activities precede this one?
(ii} Which activitiesfollow this one?
(iii) Which activitiesare concurrentwith this one?

ObviousJv, the first activity woutd be preceded by none and the last r-tkm-.. ·
. a~....,.., would .be followed by none. During

...... ._._

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 p~ Management (MU)
f,,,r ch I •
!(etching su og,cal r~les as Insertion of dumml
ProlectPlanning & Schedulng
- -
~ a'( be ignored. es, activitiesshould be straight, slanUngor bent but not auved, etc.,

.....,e network ls then suitably sketched to confo t O les

. 11 • rm
ru and conventions.
3
Events are numbered in ascending order from left to right.
' · firne estimates for each activityare then obtained.
5.
111ev are :
(i) The most likelyestimate, m
(ii) pessimisticestimate , a

(iii) The optimistic estimate, b

_ Then upon the assumption of beta distribution for the activity duration, the expected time, te for each activity ls
6
computed from the followingformula :
l
le = .6 (1 +4m+ b)

Using the expected activitv time estimates, determine the earliest start time and the earliest finish time for each
7.
actMtv, the earliest finish time for the complete project correspondsto the earliestfinish timefor the lastactMty.
After determining the latest start time and the latest finish time for each activity, a,mpute the float assoaatl!dwith
8.
each activity, the critical path activities are the activitieswith zero float. Detenninenow the aitical path ttwuuBttthe
given network.

9. Using the values for b and a, which were determined In step 5.

calculate the variance (a2) of each activities time estimates by :

cf = .[¼(b-a)]l
10. Use the variabilitV in the ·activity times to estimate the ~riability of the project completion ~. then using
this estimate compute the probability of meeting a specified a,mpletion date by usi11l the standard normal
equation.
Due date Expecteddate of completion
z =
_ Where z= no of standard deviations the d~e date or target date liesfrom the mean or eapected date.
. · th criti I th durationis not acceptable to the
- Crashing or compressing the project may have to be undertaken tf e ca pa
· . h · to be performedif resourcesare limited.
management or resou~ allocation may ave

3.15 Gantt Bar Chart ..

· tan over time. Modem Gantt tharts
ch rt that visually representsa projectP .
- A Gantt bar Chart ls a horizontal bar a ·bt for each task In the project.In other words.aGantt chart
well as who's responst e . .
typically show you the status of as . . dlffl ultles.
Out of project c ·I
is a super-simpleway to keep you by Henry L Gantt. an American engineer anci
· roductloncontrol toO11n 1917 ._.__ of a schedulethat
- Gantt chart was developed as a P · chart providesa graphicalUlustra~•
. tact management,a Gantt
scientist. Frequently used '" prop-
5
pecific.tasks In a proJC\o
,...-
...
·
helps to plan, coordinate, a nd track . ,

~-... .,.
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 p

3-44
rt Dlrt8
Rep0I ,i/12 31/12
2
... 3112 10/12 11112

22/10 29/10 5111 12111 .:

19/11 26111

Preliminary .
:
lnY11Sllgatton '
WriteRepon
rw
Interviews
.b
I
I

:
Training :
I

Evaluation J
Final Report
[ 1

Rg. 3.15.1 : Gantt chart of Project Schedule ·

· ·, . O
f bar .chart that shows the start a nd· fl
A Gantt chart shows graphical depiction of a project schedule. Its ts a type •
• tasks and dependencies.
dates of several elements of a project that indude resource~, m11estones, ,

3.15.1 Key parts of a Gantt chart ·

· · k I k t 8 key components so you kno
A Gantt chart is made up of several different ele"'!ents. So let's take a qu1c oo a -•
how to read a Gantt chart : .
- Task list : Runs vertically down the left of the Gantt chart to describe project work and may be organized into grou
and subgroups .
- Tuneline: Runs horizontally across the top of the Gantt chart and shows months, weeks, days, and years.
Dateline: A vertical line that highlightsthe current date on the Gantt chart.
Bars : Horizontal markers on the right side of the Gantt chart that represent tasks and show progress, duration,
start and end dates .
Milestones: Yellow diamonds that call out major events, dates, decisions, and deliverables.
Dependendes: light gray lines that connect tasks that need to happen in a certain order .
. .
Progress : Shows how far along work is and mi!'Y be indicated by '6 Complete and/or bar shading.
Resourceassigned : Indicates the person or team responsible for completing a task.
The History of Gantt Charts

The first project management chart was invented by Karol Adam1ec

· Id 1n
• 1896 So why
'
chart? Good question I . •
• , .
isn t 1t called .an Ad .
Here's a quick history of Gantt charts :
1896 : Karol Adamiedd creates the first pro·'ect man · · '
, agement ch rt h · -
Gantt chart. a : t e Harmonogram · :
. · , a, Precursor to the
1931 : Adami~ publishes the Hannonogram (b t · .,.,
u 1n Polish With r ·t d
1910-1915: Henry Gantt publishes his own r ,, . ,m, e exposure).
. P o,ect managements .
Today: Gantt charts are the preferred to t .
0 I or managing pr .
VStem, the Gantt chart
. . •
. OJectsof all sizes and ty
. Pes.

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 • ...nagement(MU) 3-45
:tJ pro1eet~J-~_:::==~=::::=:;======--==~
w
.
?
Gantt Charts works
· ~~--=-----.!P~roject~~P1a=nn~in~g~&~Sch~edul~ing:!::
1,,2 ~o .
3• · h rt is a visual presentation used In proj ct ·
AGantt c a . e management to show overviewof tlmeline for project activities
-dependence. Each proJect task or actl lty I
their inter v s represented with a bar chart dearly displayingstart and end
a11d ,hus the length of the bar shows the duration required for a task to complete. lhls way multiple tasks when
date· bar charts, shows work breakdownstruct ·
. raved as . . ure on a tlmeline. Essentlally Gantt chart shows when an activity
d1SP I tes how long it will take to complet ctlvl I
startS• cornP e ' e an a t es and also overall project, which is a project schedule.
use Gantt Charts ?
~w .
Gantt charts come in many forms, from good old-fashionedpaper to desktop and even we~based software: Bringing
these charts online transformed th em from a static document that quicklybecomes obsolete to a living, collaborative
representationof a project's current state.
Gantt charts are useful in almost any industry. Here are just a few examples of the types of teams and companies that
use Gantt charts to plan, schedule, and execute their projects :

0
construction

0
consultingAgencies

0 Marketingteams

0 Manufacturing

0
Human Resources

0 SoftwareDevelopment

0 Event Planning

3.15.3 Functions of Gantt Charts

The Gantt chart is the most widely used chart in ProJectManagement

- These charts are useful in planning a project and. definingthe sequence of tasks that require completion. In most
instances, the chart is displayed as a horizontal bar chart.
- Horizontalbars of different lengths represent the project timeline, which can lndude task sequences, duration, and the
start and end dates for each task. The horizontal bar also shows how much of a task requirescompletion.
- A Ganttchart helps in scheduling,managing,and monitoringspecifictasks and resourcesin a project.
.The chart shows the project time!lne, which includesschedul~ and completedworkovera period.
- The Gantt chart aids project managers·1n communicatingproject status or plans and also helps ensure the project .
remainson trade.

3.15.4 Benefitsof Gantt Charts

- The chart identifiestasks that may be exeartedin paralleland thosethat cannot be started or finisheduntil other.tasks
are complete. · .
- Ani~ly presented Gantt chart produce with hiBh leveltasks propertyorganizedand resourcesallocatedto those tasks.
It speaksvolumes about whether.you are on top of the needs of the project and whether the projectwill be successful.
- The Gantt chart can help detect potential bottlenecksand Identifytasks that may have been exd~ded from the project
timeline.
________:...___ ~---------_:_-~--:--'-------------.~,..~i;;;,;,.i- ,. ..... , . t t••J.

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 pfOiec! Planning &

3,46 will be completed. This can h1!1SI

• Project Management MU) k or set of taSks
. d a particular tas .
- bars on the chart Indicate In which pe no
The that should not delay the
get things in perspect ive properly. . mpletlon of a task d time.
. al time for co execute on
- The chart depicts task slack time or addition .."ties that must be . • ed in several ind
d critical actw• rts are ut11,z
noncritical activities that may be delayed an ..,..,. .. These cha t and deve\
. O
f II slies and •.,""-· deVetopmen ,
Gantt charts can be used in managing proJects a d highways, sottware
for a range of projects , such as building dams, bridges an . d pl
-r1.. . helps to remin peo e
other goods and services . can see it. , 11IS
f It where eVervone
It can be useful to place the chart or a large version °
objectives and when certain things are going to happen . d Excel or specialized software,
. ct SharePolnt, an
Project management tools, such a s Microsoft Vlsio, ProJe '
Gantto or Matchware, can help in designing Gantt charts.

3.15.5 Limitations of Gantt Charts ith

·ects w
. I ro·ects there will be large proJ
- They can become extraordinarily complex : Except for th e simp e p J • ' w·h n the project gets to this level
lete the proJect. e
number of tasks undertaken and resources employed to comp . . es this does not work so
II of the details . SometJm
must be managed by a small number of people who manages a .
in a business that is not used to this type of management .
. h re very skilled in this. For a range
- Big businesses will frequently employ one or more proJect managers w O a
reasons, this may not work so well in a smaller enterprise.
The size of the bar does not indicate the amount of work : Each bar on the chart indicates the time period over which
· · th b fi rticular set of tasks, you cannot tell
a partirular set of tasks will be completed. However, by looking at e ar or a pa
what level of resources are required to achieve those tasks . ·
- So, a short bar might take 500 man hours while a longer bar may only take 20 man hours. The longer bar may io d i
to the uninformed that it is a bigger task, when in fact it is not
They need to be constantly updated : As you get into a project, things will change .. If you are going to use a G
chart you must have the ability to change the chart easily and frequently. If you don't do this, it will be ignored. Aga"
you will probably need software to do this unless you are keeping your project management at a high level.

Difficult to see on one sheet of paper : The software products that produce these charts need to be viewed on
computer saeen, usually in segments , to be able to see the whole project. It then becomes difficultto show the d
of the plan to an audience . Further, you can print out the chart, but this will normally entail quite a large •cut
paste• exercise . If you are going to do this frequently, it can be very time-consuming.

3.16 Project _Management Information System (PMIS)

A project management information system (PMIS) is a computer ba ed 1 •

s n,ormat,on systemthat effi . ti ....
organized information needed to run a project. It collects and u . aen Y ;:i.1.ores
ses proJect informationth gh
applications. It helps project managers to plan execute and th . rou one or more
' cIose e1r project.
The Project Management Book of Knowledge (PMBOK} sta •
tes that a PMIS Is., •
tools and techniques used to gather, Integrate a d d ' . an informationsystem consistingof
, n issemmate the out . .
used to support all aspects of the project from . .ti . . Puts of project manage nt·
• •ni ating through do . me processes.
systems.· smg and can include both manual and

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 . . Management(MU) 3-4
7
.M proleet p · .
,r_ e different types of PMIS software but Planning& Sched
.,..,ere ar , most share featu h
,.. . tion information collection and disttibutt res t at lndude tool.s for scheduling, wor1c
,., irthonza ' on, etc. Some also h
a ance indicators (KPls). Others are simplya ctl . ave automated gathering and reporting on key
perforTT'I coIIe on of flies.
S ·s made to support all aspects of project mana
,, p~ I . \egrat ion management, project scope m gement by collectingand storing information. Some of those areas
are ,n anagement project cost
. ct quality management, project commu . ' · management, project time management,
1 1
proJe ment and project stakeholder n cat ons management, project risk management, project procurement
roanage management. .
project there is a lot of Information t k ·
10 a tiOn required at that m o eep track of and while managing a project, it is audal to rec.etve
ioforma h . ed . fo oment. Therefore, a PMIS is becomes important. It's the toot that gives you instant
cess to t e requ1r m rmatlon The Info ti
ac . ffi . . d • • rma on Is also critical for future projects in terms of redlldng rlslc.
irnproVlnge ,aenoes an 1owenng costs.
pMIS captures all project data and st th .
,, A h bl ores em 1n an organized way It also makes them retrievable searchable
categorized,s area e and analytic.To do all this, a typical PMIS uses a series of tools. , ,
,, scheduleand Planning: CQmputesearly and late schedule, slacktimes and the criticalpath
,, Resou_rce Management: It includingresource loading,levelling,allocation,etc.
,, audget:It associates 00st with individualtasksfor more accurate budget estimation and generation.
,, control and Performance:It analyzes and controls cost and performance, updates existing plans as actual against
planneddata changes and Provides what-if scenarios for the project manager.
_ Reportingand Communication: It facilitates creation of graphs and charts of collected and a~alyzeddata that can be ·

I _ ::::: ::ke:::: -:=:.-. acxess to data from ~fferem proje<ts for nwh>jnje<t •~
integrating with other systems,such as payroll, inventory, etc. The easier a PMIS is to use, the less time and money
required to train. ·

3.16.1 Functions

A PMIS has different functions depending on the phase of the project.

- Duringthe initiation phase, a ·project manager uses PMIS to help prepare a preliminarybudget induding cost estimates
and resources.
- PMIS in conjunction with other tools ~elps with schedulingthe project. In terms of approval, it helps define the scope
of work, assists with preparing the bid and can be used when presenting the data to decision-makers.
- When planning, PMIS helps with detailing the schedulingincludingtask and critical path analysis.
- It supports cost management planning includingWBS analysis and integration of control processes. PMIS also proves
beneficialto the project manager when resource planningIn terms of availabilityand level. It can also help establish a
baselinefor project scope, schedule and cost.
- Once the project has been executed,·the PMIS starts collecting,organ_lzlng and storing data as it comes in from the·
project team, which can then be compared to the baseline projections.
- The PMIS helps with cost and schedule forecasts to help If changes are required mid-project.Materialsmanagement.
cost collect, performance measurement and, of course, reporting are all supported by PMIS.
- Wh . . P""IS great help It helps review requirements to make sure the project has met all Its
en dosmg out a proJect, "" Is a .• . .
· · 1 all the Information collected over the course of the project for performance
goals and objectives. It also organ zes · . . .
· . . rts d then keeps an archivewith the historicaldata for future projects.
reVtew, productivity analyslS,final repo an
- ----------------------------------, ..~T-~g~•~..~•
•ell ht aUe• t

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 Project Planni
3-48

3.16 .2 Advantages
benefits of using an onllne or d
-
Wh·1 1 e th ere are manual project manogemcnt informat Ion systems, the ·ty effide nCV, eco nomy, accuracy
noed c.ipact , l
system are numerous . With an online Information system Sr , fits the most practlca Is speed.
ab 1Tty
1 h fall these bene I ,
to and le complex projects can all be approved . But O r needs with great
Its a project manage
- Once the data ls collected , It can then be adjusted to reflect the resu d evise plans, schedules or
accu N c.in it create an r
racy . A manual program Is never going to match that . or
qu, 'ckly · What once took days or longer Is now completed ·'" secon
· ds · Is lso
- . . ts of data wtth a PMIS. That data a
ProJect mana gers and their organ izations can store large amoun which is large and requires
accessed, Prioritized and summarized as needed . And unlike a man~al system,
support P~nel, an online PMI.S needs far le.ss support and space .
With these factors there is also a cost benefit. The cost advantage of a digIta
I over a manual PMIS isfusually sign
Is
. . . correct. the chance o errors
especially when c:on.sidering storage and proces sing. And ,f inputs are
diminished with a doud-based PMIS.

I·ReviewQuestions \
Q.1 Explain Project Planning & its purpose. (Refer Sections 3.1 and 3.1.1)
Q.2 Desaibe the important areas of Project Planning. (Refer Section 3.1.3)
Q.3 Expmin Project Scheduling. Describethe process of Scheduling: (Refer Sections 3.2 and 3.2.1)
Q.4 Explain wor1c breakdownstructure.What are its advantages?(Refer Sections 3.3 and 3.3.2)
Q.S Describe the process of creatinga work breakdoWnstructure.(Refer Section 3.3.3)
Q.6 Explain Linear Responstbi lity Chart. List its advantages & cisadvantages.(Refer Sections 3A, 3.4.2 and 3.4.3)

Q. 7 Describe Interlace Coordination . What are its functions?(Refer Sections 3.5 and 3.5.3)
Q.8 Desaibe oonc:unent engineering. List its advanlages& disadvantages.(Refer Sections 3.6, 3.6.2 and 3.6.3)
Q.9 Explain Project cost estimating.What are its key components?(Refer Sections 3.7 and 3.7.2)
Q.10 Desaibe any four cost estimationtechniques. (Refer Section 3.7.3)

Q.11 Desaibe and dttferentiateBottom-opand Top-down Estimatingtechniques. (Refer Sedlons 3.8 and 3.9)

· 0.12 Oescti>e netwoncPlann ing and the steps used in it (Refer Sections 3.10 and 3.10.1)
o. ·13 What is a Networ1cDiagram?How we constructit? Explain(Refer Sections 3.11 and 3.11 .2)

Q.14 Explain different methods of constructing network diagram. (Refer SecUon 3.11.3)
Q.15 . What is Networ1cAnalysis?List i1s advantages. (Refer Sections 3.12 and 3.12.2)

Q.16 Describe Critical Path Methodwith its steps. (Refer Section 3.13)
0.17 Desaibe and cflfferentiateAOA & AON (Refer Section 3.13.3)
0.18 Describe PERT. Explain~e three time estimatessystem. (ReferSections 3.14 and _ _ )
3 14 1
Q.19 Explain PERT algorithm.(Refer Section 3.14.2)
Q.20 Explain Gantt Charts. Describeits advantagesand Limitations (R8 fa
• . • r Sections3.1S. 3.15.4 and 3.15.5)
0.21 Explain Project ManagementInformation System. List ils advanta.
ges. (ReferSections3.16 and 3.1U)

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 Planning Pto)ects

crashing project time, Resource loading and levelling, Goldratt's critical chain , Project Sia~ end
communicationplan.
Risk Management in projects : Risk management planning, Risk identifica1ionand "*
register. Ouailahe and
quantitativerisk assessment.Probabilityand Impactmatrix. Risk responsestrategiesfor posffiw and negatNerisks.

4,1 Introduction
_ project planning is the most important part of the project life cycle. It tells what is to be achined and how. The
planning phase is when the project plans are documented, the project objectivesand requirementsare defined,and
the projectschedule is created..
_ It involves creating a set of plans to help guide youthroughthe implementationand dosure phases of the The
plans created during this phase helps manage time, cost, quality, changes, risk, and related is.sues.They also help
control staff and external suppliers to ensure that the project is delivered_on time, withinbudget.and within schedule.
_ Project schedulingis a mechanismto communicatewhat tasks are to be done and which cwga11iutio11alresourceswil
· be allocatedto complete those tasks. Thus project schedulingis a documentcollectingall the work neededto be
to deliver the project on time.
- Project risk management is the area of project managementthat deals with the identification,analysis and mitiptian
of risks that can occur on projects. A p~oject is· t~porary endeavour undertakento produce a unique product.
service or result. This definition shows it is a risky endeavour.Since every project is unique, there are often ""'1Y
uncertaintiessurroundingit. ~e limitedtime and cost for each projectalso inaeases its risk.
- can have a positiveor negativeimpacton the scope, cost. time and qualityof the project.
A projectrisk is an event that
Risks usually have causes and if they occur,they _can have multipleImpacts.
- Therefore it is important to plan for these .risks, Identifyand prioritizethem, and ensure that adequate responses are
provided.'The goal here is to minimizethe effects of these risks so .they do not negatwelyaffect the time, cmt
and performanceof the project.

4.2 Project Resource Allocatlon

. well as completionof a project. But resourcesare always scarce. No one
- Resources are essential for the Initiationas . Important Their }udldous \15': depends on
has abundant resources-and therefore their judldous use becomes very . .

their judiciousallocation. · t If you hilve a task. projector programto

criticalpart of any projectmanagemen .
- Thus, Resourceallocation becomesa rojectto helpIn tts sucussful completion.
. . h rce resourcesto your P
accomplish,you need to allocate t e sea Is (e creativewriters, developers, construdion
- . .. - such as skilled professIona •I • of
Every project requires various resources } d time to get evervthtngdone. In virtually everytype
e meedng rooms , an
Workers) tools (e g sottware, hardwar ' rojects on time and on budget. ·
• • ·• . 15 key to deliveringP
0
industry,effectiVeresource a~locati n · .

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 . 4-2 c;tivities and the resources
Project Management (MU h duling of a •ecttime
ement as the sc e . . and the proJ .
We define resource allocation or resource manag ource availabilitY
I both the res ct .
project activities whfle taking Into conslderat on glng a pro]e · writers edit.-
counter In mana TheY mav be • ·-~
The basic types of resources you might need or en f nv project. or contract
mpletion o a freelance
1. People : People are the key to successful co traffic managers,
ount peop e, I d e
experience (UX) designers, art directors, ace t your project on · .,-
. h ·ect skillstoge t bring your proJ~'-
developers, testers . You need people wit van ) you requ ire o
ks months, years . ·de increments of time in
2. Time : Thi.s is the total amount of ttme (days, wee ' be decided, you can dtVI
finish line. While the end date of the project may already ·
period t o ensure your project stays on tra~. ortc to specific equipment is
• I tO carTY out any w . . the resource
3. Tools and capital : Tools and capital are essent ia be planned for dunng
requ ired to create special features or products. These will have to
phase of project man agement and allocated appropriately . ger •is responsible. The
ro·ect
1 or program mana .
For the planning and then allocation of the resources, a P • be eeded throughout a pro,ect's schedl
• nd too ls WI11 n
manager needs to assess what types of people, ume, a . b mes quite vital.
Therefore, his role in the succe.ssfulexecution and completion of the proJect eco

4.2.1 Benefits of Resource AJlocati~n

· . anagementtool, you can make
As you can see, following the right processes and using a complete resource m
allocation easie[r and benefit from it in many ways :
It improves visibility of all resources aaoss the company
You can avoid under and over utilization easier
It helps to keep bookings more accurate
It's easier to negotiate bookings with other PMs

4.3 Resource Optimization

Resource optimization is the set of processes and methods to match the available resources (human, rrl.lll"hlina

financial) with the needs of the organization in order to achieve the established goals. Optimization brings the d
results within a set timeframe and budget with minimum usage of the resources .. The need to optimize ~nrnrr.
particular1y evident when the organization's demands tend to saturate and/or exceed the resources
available .
In Project Management, Resource Optimization Techniques are utilized to make adjustments in the impi
and completion dates of the projects, modify the organized resourceused and resource aa:essibllity. Used a as
the Schedule Network Analysis to calculate the schedule compression of the ro ·ect Resou .: - ·- -·
Techniques indudes the scheduling of activities and the resources required by thos:
a~ wh" rce : ; ·
accessibmtv of resources and the task time. es lie-

4.3.1 Benefits

(I) Resource Optimization Techniques helps to evaluate h ·

ow we1I your entire
or monthly basis. resource pool is utilized on a daily,
(ii) It ensures that the revenue is utilized to m .
. ax1mum effectand balan .
(iii) By enhancing your resources managem t · ce the WO~oad .
. en procedure
and prepanng prerequis ites, reducing any fi tu
·n
' you WI have the capacityto d" . .
u re resourcing dashes and th . . 1Stingu1sh the shortace
e,r unfriendly impacts.

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~ p
Management(MU
.
. g project delivery wlll help diminish expe
4-3

iii 1rtiP'o:;tions that have executed a PMO have slgnlflcan;::d::d

( orfl " al component of the most astounding perform
Increment edges. Resea«h demonstrates that
ed costs, and for Profeu lonal Servlc:n Organltatlon. it
I
• cypic ers.
15 3
breakthrough perspective of your whole re
With 3 utd t d f rks source pool. you wlll diminish the authOfltatlve exJ)fflSeSrelated to
th O
(~) keeping up ese tla e hlramewo · Also. you can enhance Income, enhance the resources to achieve suc.cessand
• customer re Ia ons ps.
sustai0
ource optimization In proiect ma
lhe res . .. · nagement ls intended to Ideally modify resources to rei,ort the pnndpal
tteeting the actMties In the task It em
155
ues 3 r h th • powers organizations to gratify resource requests for an Ideal design and
ou to accomp ,s _e organ 1zation's objectives
allows Y •
Network Crashing
4.4
project management is about optimizing time, cost, and quality performance on pro)ects. These three variables a~
' · · IIV rmke d· Changes ·m req\llrements of these variables frequently occur and the project manager has to re--
1ntnns1ca
plan the project accordingly and provide revised estimates for the linked variables.
, 10 practice the most common requirement for project re-planning calculati~s co~cem time and cost. Oients often ask
for projects to be speeded up and need to know how much of an increase in speed Is possible alongwith cost.
, The analysis and execution of change of time and its' corresponding impact on cost Is commonly known as Netwol1t
crashing. In crash analys is. a project manager offers re-planning advice based on the functional relationship between
time and cost.
_ The objective is to look at that relationship for the process concerned and to generate an alternative cost and time
scenarios. The dient can see how much it will cost to meet a range of different time options.
_ In network aash analysis, the project ~anager offers re-planning advice based on t~e relationships between time and
cost. This of course assumes that performance or quality aiteria are fixed, as is the case in most proiects. \n most cases
the specified outcome Is fixed.
_ AGuide to the Project Management Body of Knowledge {PMBOK•Guide) - Fourth Edition defines networkcrashingas,
•A schedule compression technique ·in which costs and schedule tradeoffs are analyzed to detennine how to obtain
the greatest amount of compression for the lea_st incremental cost."
_ As a compression technique, network crashing concentrates on the project schedule in an effcrt to accelerate the
project's completion date. Plausible examples of aashing include the following:
o Over-time
o Allocating additional resourcesto specific activities
o Hiring additional resources
o Incentive payments for early completion
0
Subsequently outsourcing portions of the project to be completed within a shorter time period than would have
been possible if the same workwas to be completed by internal resources .
. ·h · ~nd which no further reduction in time will be possible inespective of the
- For any given activity a pomt reac es ~,.., . • I time nd
• • • The time for the activity at which minimum cost ls incurred 1s called norma a
resources spent on this activity. · . . t d with these t\mes are called normal cost and
the minimum time for the activitYis called crash time. The cost assoc,a e
crash cost respectively. . · . . . . . • fo
ed by adding the direct costs of each md1V1dualac:tMty. Initially, r
1
- The total direct cost of the project can be determ n th tal .iec;t duration ls computed using the computational
. med and e to proJ
all activities, normal time estimates are a~u .
_ Procedure.

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 mon1 ctMtles
Ma tMn time of one or more a cost- lhls process can be repeated tll IIQ
If the project duration has to be reduced, ,__.uccdat the le~
ect duration 1s .:"I
11
~hould tie such th<1t t he 1ou pro l i(!Yt!d. • ment of few selected
reduction In the pm)N:1 duration can be ach __.ueffl«the twne reqwre Its _.,_ time. 1111s
be ad1'~ by rcu befnl U1> to I.I' CDH
- The reduction In the proje<1 duration can possiblefof ar'tf actMtY networlt.
the ir norm al t ime. the mPlmum reduction In ume urningIs known as crashingprated
redu cing t he total project durati on by ~udng actMtv

4.4 .1 Network Crashing Procedure

Oashlng of a networ\ can be done In followin8 steps:

L Rnd Crttk:al parth

Find the normal aitlcal path and Identify the critical actiVltY•
2. c.alailate Cost slope
- Calculate the cost slope for the different actMtie.s by using the formula .
Cost slope = Crash cost-Normal cost/Crasht11M-Nonnaltime
- The cost slope indicates the extra cost required to expedite an activity per unit time.

3. Rankins
Rank the activities in the ascending order of cost slope. The activity havingthe minimum cost slope have to be
first. crash the selected activity to its minimum dura tion.
4. Ctashir'C
Crash the activities in the ait:ic:al path as per the ranking i.e., activity having lower cost slope would be er.ashed~
the maximum extent possible. Calculate the new direct cost by cumulative ad~ing the cost or crashing to the n
cost.

5. Parallel aashlnc

As the critical path duration is reduced by the crashing in step 3, other paths also become critical, le .• we
critical path . This means that project duration can be reduced duty by simultaneous aashing or~ on the ·
aiticaJ path . -~ ........,,

6. Totalcmt

Crashing as per steps 3 and 4, one reaches a point when further crashingis either not •
reduction
.
°'
aash lng or project duration For the d"1ff
. ·
P0SSlble or does
erent project durations total cost ls fou
not result
by adding corresponding fixed cost to the direct cost
commutativeto the norma l cost. ' an
d th nd up to total cost
e d irect cost Is got by adding the expedmna crash-.
4.5 Resource Loading In Project Management
- In project management, the constraintIs the Ion est .
pr-oject. Most projects involve ma 8 chain of activities from the sta
definesthe effectivenessof th j ny different resources at different tim Thrt of the project until the end
e pro ect. es. e effective f
- A good project management organlza"'' use o these
uon must make ff ·
managers to maxJmlze the use of the reso e ectiveuse of Its limited
urces so that key resou resources.This often puts
rces can be kept .._,__ _
~,. But, the aim of good

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 . ct Management(MU _.

~p~:::::=::::::;::::::::~::~~===-=========~~~~
,_
lflanag
ernent is to complete the projects as early
0 when key resources are overloaded or dist
5

as Possible without •
Plan . .
eds
compromisingon the deliverables.This can't
t,aPPe . . ratted . Manageme t oft:
rces. Often 1t results mto delayed projects With 1 . h n en commits errors of overloading
resou . . ess t an high qualitycontent.
fact is neither too httle nor too much utlllzati of ·
The our key resources will be used. Schedulln kon resourcesIs deslrable. It 1s ~--- ·f
~m:r r we can somehowpredict
wtten B ey resourcesto completetasks I adva
owever, key resources are often used many times in n nee soundslike a good Idea.
H I in a task can cause chaos In sudl a co . II a projectand frequentlyshared betweenprojects. Even a small
de av , mp cated and Interrelatedschedule.
While it may be possible to estimate the current w kl d
or oa on hand for a spedficresource at any moment In time it is
d·fficult to be accurate. Examining the world d of k
1 oa ey resources In advance in a general way can yteld leading
indicatorsfor managers to effectivelyuse these resources.
source loading is basicallyallocati 8 .
_ Re . n resourcesto the activitiesat the right time. Project managerswith the help of
resource loading can calculate the employees working hours and do the allocation of various tasks. Based on the
th
prediction, e manager can also Predictif he needs to add any empl~ees to the projectto complete It on time.
_ The Resource Loadingtechnique looks forwardIn time for a finite periodand estimatesthe workloadof key resources
during that period. It does n?t look at exact work schedules but the general badJoad of work released for the ·
resources.

_ It also assumes there is adequate work in the system to allow the resourcesto have work most of the time. It does not
look at unique timing situations which may overioadeven the best plannedschedule.
_ some projects are long and some are short. The ResourceLoadingexaminesall the active projects of an orpuization
and takes a simple average of the planned length of the projects. The averageis simply the sum tat.al of the planned
length of each project ~i~ded .by the number of•projects. _The Look_Ahead Peri~ will change each time a projectends
or another project starts.
_ The Resource load ing examinesthe all uncompletedtasks remainingin _each activeprojectfor look Ahead Period. The
technique looks at .each resource type involved in the active projects and adds the ·estimared ~pleted task
durations required during the Look,. Ahead Period.
- This total task load time for each resource type is.divided by the number of resourcesof that type and again by the
Look Ahead Period. Th~ key resourcesare those that have more than a 50% workload.
_ The Resource Loadingcan quicklyidentifythe Key Resourcesof the organization.Th~ resourcesdeterminethe rate
at which projects can be completed. If these resourcesare more than 100% loaded, the project organizationhas
overloaded the resources and project p~ is almostat a standstill.
· loading·at about 75% generates.fast, quality projects and optimizesthe: projectresoun:es..
- Keeping the key resource
. . . .falls.be1o~-75%, the key-resources can
When key resource ut1hzation a,TI:1.1 an -•c,--
be st __ _. d the nnr.:anir.atlon 1s not befntt
''I:>

efficient of effective. rel o1

. 15 ood for monitoringactive work. It can also help plan ahead for th~ ease new
- The ResourceLoadingtechnique .B Ina a project will have on the key, resource•workload. A
I
d. 5hows what Impact re eas "o
worlc. The Resource Loa mg ed hlch lndudes all the active projects and the project that is being
temporary Look Ahead .Period is calculat w . .

consideredfor release. . d project along wit~ the active projects. . Management

Key reso~rce loading is calculated considering~e ~oseo•ects at some point In the future.and make Informed
. . ct of starting differeri pr l
can compare the different tinpa . . · ·
~~::~~
decisions. ~----------:__ ______________ --:-""_"1•~tt~r~:~·~•
.,.
-
--- ,.111 ca 1••• s

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4-6

4.6 Resource Leveling resource allocation a nd resolves

t that avefloOks _,. they need to plan their
ct managemen k a proll:'-••
Resource Leveling Is a t~n lque In prole gers underta e
h project mana
conflict arising from over-allocation. W en deliver on time .
aa:ordlngfy . nd not being able to
·" t f-ace conflicts a anlzation.
This will benefit the organization without hav,ng O agement In the org be
t resource man . some resource may
LevelingIs considered one of the key elements O . d properly 1.e.,
are not allocate th organization .
- An organization starts to face problems If resources bout a flnandal risk to e
allocated whilst others wtll be under~llocated . Both will bring a

Resource LeYallng la used when

- A aitfc:al resource may not be available for a certain duration;
A aitic:al resource may not be available at a certain point of time;
- You have to share a resource with another project;
- The demand fur a resource exceeds the supply. leveling, you
t a constant level. In resource
- You also use this tedm ique when you must keep some resourte usage a . ed Resource Leveling answers
asked to optimize the limited resources given to you. Here the schedule IS not fix ·
question of when you will be able to complete the project with the given resources .
Resource leveling is sometimes called Resource Constrained Sched uImg
. (RCS)· If resources are not . available,
project duration may change .

4.6.1 Key Elements

As the main aim of resource Leveling is to allocate resource efficiently, so that the project can be completed in th
given time period . Hence, resource Levelingcan be broken down into two main areas;
(1) Projects that can be completed by using up all resources, which are available
(2) Projects that can be completed with limited resources .
Projects, which use limited resources, can be extended for over a period of time until the resources required
available. If then again, the number of projects that an organization undertakes exceeds the resources available,
it's wiser to postpone the project for a later date.

4.6.2 Need for Resource Leveling

Resource leveling helps an organization to make use of the available resoun:es to th · Th •

. e maximum. e idea
resource Leveling 1s to reduce wastage of resources I.e., to stop over-allocation of resources .
Project manager identify time that Is unused by a resource and will ta~ . • ·
advantage out of it. e measures to Prevent 1t or making

By resource conflicts, there are numerous disadvantages suffe d b

re y the organization such
o Delay in certain tasks being-completed ' as:
o Diffiwlty in assigning a different resource
o Unable to change task dependencies
o To remove certain tasks
o To add more tasks
o Overall delays and budget overrun f
so projects

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4,6,3
·-'"' Management (MU)
suucture of Resource leveling

rganizationshave a structured hierarchy of re

4-7

PlanningProjects

_ j\'lanY O source leveling. A Work-based structure is as follows:

stage
0
phase
0
Task/Deliverable
0 • • .
of the followmgmentioned layers Will determine the
11
.
- A Th's will make it easier for th l scope of the pro1ect and find ways to organtzetasks aaou the
tearTl• 1 e pro ect team to complete the tasks.
ddition, depending on the folloWing th
In 3 ree parameters, the level of the resources required may be cftfferent.
- efore the resource requirement for a J
fher ' pro ect Is always a variable,which is corresponding to the structure.
_ for resource leveling to ta~e place, resources are delegated with ta.sics (deliverables),which needs execution.Durinc
the starting phase,.of a ~roJect. idealisticallythe roles are assigned to resources (human resources)at which point the
resources are not identified.
_ 1..3ter, these roles are assigned to specifictasks, which require specialization.

4_6.4 Resource Leveling Techniques

_ Critical path is a common type of technique used by project managers when it comes to resource levl!ling.The a1tlcal
path represents for both the longest and shortest time du~tion paths In the networkdiagramto complete the project.
_ However, apart from the widely used criticalpath concept, project managers use fast trackingand crashins if things
get out of hand.
_ Fast tracking : This performs critical path tasks. This buys time. The prominent feature of this technique is that
although the work is completed for the moment. possibilityof rework is higher.
_ Crashing: This refers to assigning resources in addition to existingresources to get work done faster, associatedwith
additional cost such as labour, equipment, etc.

4.7 Goldratt's Critical Chain Method

_ Critical Chain is a schedule network analysistechnique that takes into aca,unt task depeudendes.&mited resources
availability (people, equipment, physic.al space}, and buffers necessary to successfullycomplete the project CCM
allows a project manager to plan and manage project's schedule by concentratingon resourcesused in Path
'
- This is a critic.altechnique intended to speed up the process by improvingthe rate of meeting due dates. It focuses on
planning and managing by payingattention to resources and resource management,nslcs, uncertainties.
- Putting• •
a pnmary ,ocus on the resources, needed to complete the project's tasks. critical chain. method
&
. begins by
• • . hed I d ·,d.entifyi·ng the most crucial tasks that need to be done and reseMng resourcefor
budding a proJect sc u e an .
those high-priority tasks . .
rf rlly on estimates. Tots approach allows managersto eliminate uncenaanties
- Critical chain method does not rely P ma h t blllty ofa plan It comes Into action after the preparation
I vet down risks and ensuret e s a .
and use safety buffers to e . d d the establishingtask dependencies. Toe evolved aitical path is rewoned
of the initial project schedule that In u es
based on the Critical Chain Method. t d re quickly and with greater schedulingsafety. It
)ects can be comp1e e mo
- Using the Critical Chain Method, pro ed rces
· by addlna durationbuffersthat are non-woril.schecfule
modifiesthe project schedule to acco
-b~ .
the aitlcal path by entering resourceavallabillty,managing
~ n,na ·
. .• . I ch . . completed after fixing
act1V1t1es. Cntica am 1s f task chains. ·
buffer durations against the remain1ng duration ° ·. •
tt1
.. :: -
, 11 ..... !.

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 4-8
P Mana menl M

4.7.1 Functions of Crttlcal Chain Method Eliyahu M. Goldratt in 1997.

ped and publicized by or. dule has the advantage of al
- Critical O,aln Project Management was develo ly follow the late sche of the project.
Goldratt. delaying the work of the project to more dose ed In doing other parts . .
I
project team to learn from the experience and knawledge ga n . ical chains of activities. The crttical_
·ucal and noncrit d I This means that t&.-
- As J)f?f'Goldratt'stermlnolOBY a project schedule has en on the sche u e. u-.:
• ffect of resources ·
attivlties ls the traditional critical path but lndudes the e conflicts have been resolved. .
chain ls the llst of activities that have no float after any resource .. oncritical activities and have
are by definition, n
- All the actMties In the project that are not on the critical chain h msetves together to form su
. I t d to group t e
float associated with them . In real projects these activit es en . . . that the feeder chains are rel
. " The charactenstic IS
within the project. Goldratt calls them "feeder chams. h In Fig. 4 7 1 feeder chain
. . I ch I depen ds on t em. . • '
Independent of the aitlcal chain until an activity on the cnt,ca an . ds i"t The same is
. th "tical chain depen on •
C. D has quite a lot of independence until the time actiV1ty P on e en
other feeder chains.
- The other ·important point here Is that the feeder chains in real projects fr eque,..+k, ,u, have large amounts of float as .
As projects grow, it becomes more likelythat there will be groups of activities that can be brought u nd er subproJ

- If the feeder chains are scheduled to their early schedule dates, early starts, and early finishes, there is a disadva
The disadvantage is that if changes in requ irements, risks, or other problems OCOJr in the project. much of the work
the feeder chains will already be done and will have to be ripped out.
- This problem can be at least partially avoided by scheduling the feeder chains more toward their late schedule.
Delaying the schedule of the feeder chains will also let us take advantage of lessons learned on the aitical chain
activities. These can be app.lied to the feeder chain activities. ·

10 85

Stan~devltlon 3 3 4 2 6.2
Fig. 4.7.1 : FeederChainsand CriticalChains
4.7.2 Constraints In Critical Chain

There Is a certainamount of uncertaintyI h

n eac task.
Task durationsare often overestimated by . •·
team membe
to the task so as to be certainof Its rs or task owners Thi .
In most cases the tasks h Id completlon In the decided duration • s ts typically done to add a s~ .
' s OU not take th . u1.a1.y
completed eartler. e time estimated Which •
' · includes th
If the safety margin assu--..i I e safety marnift and
IIOQJ snot neectect - • ....
mean that the suctessortask , 1t Is actually wasted · . .
can start earlieras the re . If the task is finished .
sources required for th sooner. it may not
esu~
r task may not be

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 ,--,1 Management(MU) A ,..

1r~~::=~:::::::;:;=:::::-;:=::;::~::=::::=-~------~==~~~
u
. heir scheduledtime. In other words the sav d ti
11t1I t ' e me cannot be
'f there are delays over and above the estlrnat....a
PIA,.,.....,. .
pa~ed on to nntsh the project~ On th other
h3r,d, I schedules thes d I e
irt rflO
• . •
st cases, will exponentiallyincrease the pro)- l" ...L
..... .JU1edule.
'
--.au
~a .. ,.
e e ays Will most definitelyget -......a d
on, an ,
critical Chain Pro)ect Management Proces
4.1.3 s
f:"plolt the Constraint
1
· i·ect management activities earlier were based ·
pro on constraintsthat sometl del d
·rfle is added to a project Just to get It finished on ti mes aye the Pfolett.So extra ree,-ye
ti u are trying to achieve. Of course you want th me even after delays. So the first step is to let people know wh.lt
yo ' e average time In which an activity be ..a
everythinggoes well. After you have got all the lnformati can_ com.,,etedto_make 5Urf!
average time, plus a buffer that's between the best and w ont, you can st~rt constructingyour aitltal ~ -using the
. ors -case scenarios.
Eliminate Multitasking
z.
Multitaskingis th e process of dropping a task before It Is finished to start another and begin vet other It •
removed because you probably cannot do several things at once. Your projects expect 100 percent foe: on~~
iri hand.

3, Limit your team"s focus

When following the aitical chain methodology,for your projects, it's important to keep your team focused on
individual tasks as it will lead to more productive, harmonious, ~llaborative behaviours.This wm also add to thnety
task completion and ~fficiency.

4. create 50/50 time estimates

The critical chain process avoids waste time and pushes the team members towards a more. efficient timeline.
successful aitical chain .processes cut the estimated time needed for projects..Sometimesemployeesprocrastinate_
This practice will push them to finish their ta~ks on time. ,

s. Implement buffersfor uncertainties

Buffers provide information on when and where recovery is needed, a buffer plan can inform you if the buffer-canbe
removed.After you cut the estimated time needed by·50%, the remainingtime can then be used as a buffer.It acts as
a shock absorber for ~e project. Implementingproject buffers with the CCPM processleads to finish~ projects 25%
faster.

4.7.4 Project Buffer in Critical Chain Manage~t

- Buffers means extra time •added considering the uncertainty associated with the criticalchain. A buffergiws protect
managers time when unexpected events occur and affects_the schedullnaof project ~t. So, buffer in the
projectis used to protect the deliverydate .
- A Projectbuffer added in the schedulehelps In managingrisk In CCM. It Is put ~t the end ln between the Im task ind
the date of completion. It helps to keep_the comple~londate t~e same despite any delays. Those consume
buffertime-what all~ws protectingthe completiondate. ,,
There are four types of buffers :
ff missingIts scheduled end date and keeps the completiondate unchanged.
l. Project Buffer : · Protects ~e project om rk d,. between the last task and the completiondate. It protects
. d of th project netwo iagram,
It 1s Inserted at the en e . h th nges In activitydurationsIn the criticalchain.
---~p:ro~je:ct~co~m~p~leti~
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 10
4- and the critical cha in . These
U) -ic;al cha1n
ect Mana ment M k on a non-<: " 11
• don't affect the critical chain
the last tas -critical chain .
2. Feeding Buffer : It Is Inserted b~een that anv delays on a non ro riate resources (peop le, equi
typically added to a non-critical chain so . I Chain to ensure apP pI knoWTI as Critical Resources.
d d n the cntlca common y
3. Resource Buffer : These arc ad c o ed d These resources are . d t Issues arise. .
available throughout the project when ne e · . e unforeseen bu ge
necessarv ,n cas
4. C;apadty Buffer : It is added on call resources

4.7.5 Critical Chain Network Diagram

A .8

Rg. 4 .7 .2 : Critical Chain Network Diagram

. ·d tion task dependency and resou
Oitical Olain is the longest path in the network diagram that takes into ccns, era .
availability . (Path "Start ->C->D->E->F->End" Is the critical chain .)lt's a modified form of Critical Path Method ~ere proJ
activities use aggressivetime and have accessto unlimit~d resources.

4.7.6 Benefits of Critical Control Process Management

- Although CCPM is main ly used in multi-pro ject enviro nments that require a lot of resources, VoU can apply it on
projects regardless of w hether you are running a small company or a big corporation .
- CCPM is probably one of the most practical and the most important project management technique because of
number of bene fits it offers: ·
(i) It allows people to become more focused on the ir tasks, thus increasing team productivity and efficiency.
(ii) It helps your team overcome the Student Syndrome phenomena (when peop le start working more as
deadline starts approaching)
(iii) It avoids mismanagement of floa ts
(Iv) It considers the m inimal time needed to complete the project
(v) It accelerates project completion
(vi) It make significant redu ction In capital requlreme~ts

4.7.7 Crltlcal Chain Method of Scheduling

A CriticalOaaln is a resource constrainedcriticalpath Sched . .

11 th
In mind and ensuring that we tum them into an advantag~. u ng in e new method is done by keeping the pr
In aitical chain method,
1-. The team membersare encouraged to make ti . . ·
. . op m1stlc estimates rath ..
2. Buffers are not kept with lnd,vidual•activt'ti er than traditionalf\Ac,r·,m·st· .
. es, rather tha th · 1 1c estimates
tlus case known as a chain of activities n e collectivebuffers .
.

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 . Management(MU) +11 .
, pro,ect Pllll'lnlnn p
l.. ff, r is kept at the end of the Critical Ch I (I
p,oject au ~s which are feeding-Into the Critical an ongest chain) and_Feeding Buffers are kept at the end of Non-
;. 011;caf Chai . Chain thus reducingthe impactof Path ConvergenceImpacts.
re shown as activitieswhich are under the cont ol f th
,.
,.
etJffersa
rtiis t,e
Resources
•
fps in effective use of buffers and elimlnattnath 1
are not punished if they miss a d dll Of
D
r o e project manager.
·
e r unnecessarywastage.
ea ne an aetivlty,as there are bufferat the end of the chains
II
6 th th
· tate start schedules are used ra er an tradltlonalEarly Start schedulesused In CriticalPath Method
7. urces are allocated 100% to avoid multttasklno
Reso D·
8-
Sta
=-k_e_h_o_
ld_e_rs_l_n_P_ro...:;~_ect_M_;_:a:::.:n:=;ag~e=m::e~n~t
__ ___ _ _ ___ _ __ _
!!---
project is successfulwhen it achieves Its objectives and meets or exceeds the expectations
A of the stakeholders.But
ta
' who are the stakeholders? S keholdersare Individualswho either care about or have a vested interest In your project.
rt,eV are the people who are activelyInvolvedwith the work of the project or have something to either gain or lose as
' 3 result of the project. They may be the rJ!embersof a project team, project managers, executives,project sponsors,
customers, and users. Stakeholders are people who are associated with the project and who are affected by the
projectat any point along the way and their input can directlyImpactthe outcome.
when you manage a project to add lanes to a highway, motorists are stakeholders who are positively affected .
However, you negativelyaffect residents who live near the highway during.your project (with construcdonnoise) and
after your project with far-reachingimplications(increasedtrafficnoise and pollution).
, It's a good idea to practice good stakeholder management and constantly communicate with them in order to
coffaborate on the project. After all, they have a stake in how it all turns out.

4.8.1 Project Stakeholders

1_ Top Management
- Top management may include the president of the company, vice-presidents,directors, division managers. the
corporate operating committee, and others. These people direct the strategy and development of the
organization.
- The support of the top management makes It easier to recruit the best staff to carry out the project. and acquire
needed material and resources; also visibility can enhance a project manager's professionalstanding in the
company.
Some Sugestions in dealingwith top managementare :
0 Develop In-depth plans and major milestones that must be approved· by top management dwing the
planningand design phases of the project.
0 Ask top management associated with your projectfor their lnfonnationreporting needs and frequency.
0 Developastatus reporting methodologyto be distributedon a scheduledbasis.
0 Keep them informed of project risks and potentialimpactsat all times.

2. The Project Team

. d of those people who are dedicatedto the projector borrowedon a part-time basis.
- The proJectte.am is ma e up
. d vfde leadership direction,and followingall, the support to team membersas
As proJectmanager, you nee to pro '
they go about accomplishingtheir tasks.
Ive blems can help you learn from the team and build rapport. Showing

_
- Workingdosely with the team to sond i P:ch memberwill help you get their support and _cooperation.
your support for the project team a or ··rte 7 \ -
•••,u.,,•••

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ProtectMana mon\ (MU

Sugestlons that can help

o Involveteam members In project planning. ber at several points In th e project,
h ach team mem
•• .a .
o Arrange to meet privately and Informally .,,,,t e ·
lunch or coffee.
o Be available to hear team members' concerns at anv time. d
o Encourage team members to pitch In and help others when neede ·
o Complete a project performance review for team members.

.
d who can won< with the project
- Normally, the top management decides what the assignment Is an t the neces.sarvresources to
on projects . Keepingyour manager Informed will help ensure th at you ge
your project.
d. and supportive boss to go to bat for
- If thing-s go wrong on a project, it Is nice to have an understan mg ft,
O
necessary. Bv supporting your manager, you will find your manager will support you more en .

Suggestions

o Find out exactly how your performance will be measured .

o When unclear about directions, ask for darification.
o Develop a reporting schedule that is acceptable to your boss.
o Communicate frequently.
4. Peers
Peers are people who are at the same level in the organization as you and may or may not be on the project
These people will also have a vested interest in the product. However, they will have neither the lead
responsibilities nor the accountability for the success or failure of the project that you have.
Peer support is essential. To ensure you have cooperation and support from your peers:
Get the support of your project sponsor or top management to empower you as the project manager ·
much authority as po.ssible. It's important that the sponsor makes it dear to the other team mem~rs that
cooperation on project activities is.expected.
- Confront your peer if you notice a behaviour that seems dvsfunctiona\, such as bad-mouthing the project.
Be explicit in asking for full support from your peers . Arrange for frequent review meetings .
... Establish goals and standards of performance for all team members .
5. ResourceManagers
Because project managers borrowing resources from other managers who trol th ·
. . . . con ose resources. So a
relationship with themls especially Important. Project Managers may be bl t O . •
. · a e tonSlstentlyacquire the beststaff
the best equipment for their projects. If relationship Is not good th
people or equipment needed on the pro}ect. ' ey may fin<l th emselves not able get

6. Internal Customers
Internal customers are individuals within the orga · t·
niza 10n who are t. ·
- . •
Internal demands . The customer holds the pow t cus omers f9r projects that meet the
. er o accept or re·ect .
1 your Work. After the pro · ect begins
manager must stay tuned in to the Internal cust .., 1 the
ome, s concerns and issues . ,
a nd keep the customerInformed.

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.t.MB~ns~g~emen~:•~M:U:-====-=:::----~4-~13~------------:=:~~~~
proieef-:::::
the needsof the customer,cllent,or owner do the f llowt .
f1'1eet o n11.
ro Learo the dient organization'sbuzzwords,culture,and business.
- crarifVall projectrequirementsand spedflcatfonsIn a writtenasreement.
- s,,edfVa changeprocedure.
: £Stablishthe project manageras the focal point of communicationsIn the projectorpntzatlon.·
..-al customer
fife>... '
1
· ~ernal customersare the outside customersto whom projects are marketed.In the case of Ford Motor Coenpany,
for ~ample, th e external cuSlomerswould be the buyers of the automobfles. Also tf you are managjng a pn,tect at
your c0mpanyfor Forti MotorCompany,they will be your externalcustomer.
Government
8
' project managers wortdng in certain.heavily regul~ted environments (e.g., phannac:euticat, banking, ar military
industries) will have to deal with governmentregulatorsand departments. These can Include all or some leviels of
governmentfrom municipal,Provincial,federal,to intematlonal.
contractors, Subcontractors,and Suppliers
9,
_ There are times when organizationsdon't have the expertiseor resourcesavailablein-houseand wort is farmed
out to contractors or subcontractors.This can be a constructionmanagementforeman, networtc consult.ant.
electrician,carpenter, arcliitect:.or anyone ~ho is not an employee.Managingcontractorsor suppliers requires
many of the skills needed to managefull-timeprojectteam members. •
_ Any number of problems can arise with contractors or subcontractors:Qualityof the wen. Cost awemms.
Scheduleslippage.
- Many projectsdepend on goods providedby outsidesuppliers.If the suppliedgoods are defM!f'edlate or are in
shortsupplyo~ of poor qualityor if the price is greater than originallyquoted, the project may suffer.
- Dependingori the proj~ managing contractorand supplierrelationshipscan consume more than half of the
project manager's time. It is not purely Intuitive;it involves a sophisticatedskill set that indudes
conflicts,negotiating,and other lnterpe™"'alskills.

4.8.2 Culture of Stakeholders

- When project stakeholders do not share·a common culture, project manacement must adapt its organizations and
work processesto cope with culturaldifferenc;es.
The followingare three major aspects of culturaldifferencethat can affecta project:
1. Communications
2. Negotiations
3. Decisionmaking
- Communicationis ~aps the most vfsible mantfestatJonof culture. Project managersencounter cultural diffbences
in communicationin langua,e, a,ntext, and candour.LanguaaeIs dearly the 1reatestbarrierto communication.When
project stakeholders do not share the same languag~,communicationslows down and Is often filtered to share only
informationthat ls deemed attical. The barrier to communicationcan Influenceproject executionwhere quick and
accurate exchangeof ideas and informationIs critical. .
- The interpretationof Informationreflectsthe extent that contextand candour Influenceculturalexpressionsof Ideas
and d . . rmatf I e cultures an affirmativeanswer to a questiondoes not always mean yes.
un erstanding of info on. n som ,
The cultural .influencecan aeate a>mu;,,On
-1.. ,_, n a pro·'ectwhere projectstakeholdersrepresentmore than one rulture.
o ·
_________ _:______ __,;._ __,,.-----------:---------.~Te+l~~·~b~· ,,.11 c a1 1eas

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 Project Mana t (MU)

4.8.3 Managing Stakeholders A .. ·ncrease in the number of stakehofldthers

• project.~• 1
..a. tional investment o e
. t keholder,n u,e I ess or emo
Often there Is more than one maJor s a . level n,e bus n mes or execution aunr ........
• ct's complexity · ject outCO
to the projectand influencesthe proie influence the pro · of stakeholders and their
in the project and the ability of the stakeholder to I addition to the number th project's complexity
influences the stakeholder complexityof the project. n O
r disagree, influence e ·•
investment,the degree to which the project stakeholders agree • ct tndude those who are i
starting a new proJe · of buil.G-
- Therefore take the time to identifyall stakeholdersbefore . ct Then begin the process _, •
, . . pact the proJe . ,
the project, as well as groups with the ablhty to im
refationshipswith each one using the followingmethod. nt of a pr~ject's key participants,
I . or an assessme . ests R
L Analyze stakeholders: Conducta stakeholderana ys,s, . .d I haracteristics and inter •
d -. their indM ua c
the project will affect their problemsand needs. I enui' d 1 1of participation, and det
Define roles an eve
what motivatesthem, as well as what provokesth· em.
there are conflicts of interest among groupsof stakeholders. .nfl
influe.ncethe project. The more 1
2. Assess influence : Measure the degree to which stakeholders can . · lcehold r
. h · · ort. Knowing what each sta e
stakeholder is the more a project manager will need t e1r supp
wants from the projectwill enable the project manager to gauge his or her level of support.
3. Understandtheir expectations: Nail down stakeholders' specificexpectatio~s.
· Ask ,or cla rificatiO n when
.
n

to be sure they are completelyunderstood.

4. Define •success" : Every stakeholder may have a different idea of what project success looks like. DiscoYering
at the end of the project is a formula for failure. Gather definitions up front and indude them in the objectives
help ensure that all stakeholderswill be supportiveof the final outcomes.
5. Keep stakeholders involved : Don't just report to stakeholders. Ask for their input. Get to know them better
scheduling time for coffee, lunch, or quidc meetings. Measure each stakeholder's capacity to participate
honour time constraints.
6. Keep stakeholders informed : S~d regular status updates. One update per week is usually about right
project meetings as required •but don't let• too mudl time pass between meetings. Be sure to
stakeholders' questions and emails promptly. Regular communication is always appreciated - and may
soften the blow when you have bad news to share.

4.9 Project Communication Pl~n

-
- A project c.ornmunicationplan is animportant part of a projectth t h . .
1
with his dient, team, and other stakeholders of the pro· ct I da ps a proJect manager to communicate e •
It also defines who's responsiblefor and needs t be ~e • t ~mbes dear g~idelines for information to be
0
. . . a part of proJect communicatio .
A proJect communicationplan is a criticalpart f . . n.
. o any proJect. How w 11 •
your proJectcan make the difference between succ d . e you communicate throughout th 1·
. ess an failure e
- Dunng the planning phase of your project, you n d . , -
general communicationrequirements for your proje: c~eate a high level Communicati~n Pia
o The plan's purpose and approach • is P an should indude: . n t
o Communicationgoals and objectives
o Communicationroles

.
0 Communicationtools and th .
: . me 0 ds, and
o High level project communfear .
10n messages

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p.4aoa~ment (MU) ·
/I ~ untcatlon Objectives Planningm;e
;,: co11'1111
9.1
A, begins by defining what yau expect to achl
ffle plan what your project will acx:ompllsh G . by communicating.This could be any number of things and is
ePerideot o;he project. Here are a few Ideas : . enera ly, these should be focused on @ducatfng and updatfng anyone
d cred bY .
ir11?3 ase knowledge about the project and why It's Important
rricre . .
.,. create a dialogue amm:'8employees and key stakeholdtts to gain acceptance of the project.
, provide opporl\lnitiesfor feedback from stakeholdergroups
.,. Acommunicationplan plays an lmponant role In every project by :
creating written documentation everyone can tum to
0 •

0
.setting d ear ~ectations for h~ and when updates will be shared
increasing visibilityof the project and status
0
providingopportunities for feedback to be shared
0

0
aoosting the productivity~ team meetings

0
Ensuring the project continues to align with goals

4,9.2 creating Your ProtectCommunication Plan

A communication plan must be aeated for the project. To do this, it's important to spend time plhefnc input from
all stakeholder groups to ensurethe plan is comprehensive. It's also Important to note that changes may need to~ made
10 the plan as the pro!ect movesforward. Here's the general framework. ·

1. Plan Purposeand Approach

rt is always beneficial to lndude a high level descriptionof the plan like why It exists and a generalidea al how you will
implement the plan on your project. Thinkof th~ as a summary section. It helps you capture the esseice of what you
have detailed in the plan.

2. CommunicationRoles
Communicationwon't comefrom j~ one person ~'!ri"i your project. Oearly define all roles and their CDih?5PCJ!Cii•
communication responsibilities. He,:e are a few roles to consider :
- Project Sponsor
• '1 ;·,

Project Manager
Leadership/ Management Team ·
- Steering Team
Project Lead

- Project Team Member

3. CommunicationTools
·
Selection ·· and how a message Is deliveredwm vary from projectto project. Y0411 peferred
of the tools t use . ·
tha
.

th
tools should be those which can easilybe comprehendedby e receivinggroup. _
-..a....1nsthe contentof the communication.-.d the methodIn which It wdl
Alwayskeep your receiverIn min~ when d · · uestl rovldefeedbactcan provide beneftcfal
be delivered Methods . that offeropportunitiesfor'peopleto ask q ons or P ·
· · Just a few•
Brainstorming a list of possible tools can get you started.Here_are ..
., 35 2 ,-

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 ProtectManagement MU

- Meetlngsummaries
- Status reports
- Newsletters
Formal presentations
- Surveys
- Internet/ Intranet Web Page
- Informalsmallgroup meetings
- Brown bag lunch workshops
- CUstom project dashboards

4. Communication Methods · · nd h Id 1
munication plan can a s ou
There's no single right way to communicateon a project. In fact, your com
variety of communicationmethods. Here are a few to consider:
- Email
- Meetings(in-person,phone,or video chat)
- Discussionboards
- Collaborationapps
To-do lists
Surveys

4.9.3 Writing a Project Communication Plan

Writinga project management communicationplan is as simple as followingthese 5 steps :

1. List your project's communication needs

Every project is different.Therefore,take the size of the proj~ct, th~ nature of work being done, and even the
unique preferences into account to determine which types of communicationthis project needs to succeed.

2. Define the purpose

Bombardingpeople with too many emails or unnecessary meetings can interfere with their abil~ to get
done and cause them to overlookimportant updates.
- Be purposeful In your plan, and ensure every communication you indude has a reason for being. If
really ambitious, go ahead and outline a basic agenda for the topics that will be covered in each m
report.
3. Choose a communication method
Think how your team works best, so they can stay in the lo~p wh·t1 still b 1 . · .
• e e ng productive. If yaur client
personal touch of a phone call, burld that Into your plan too. ·
4. Set a cadence for communication

Establishinga regular frequency for communicationst • • .•

. ream11nes the process b . · · '
get-go. Thrs not only frees you from fielding ra d · . Y setting dear expectations
n om requests for stat d .
carve outs ace for im ortant meetln 5 and us up ates. It also enables project m
re rts ahead of time.

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 . ~gement {MU)
f'~ 4-17
V1de11t1•1 the owner
_.lfll
.
and stakeholders Pl--"---
1111111'\fPrqecls
. . ·og wne~h•P creates accountabllfty
ac~rgnr 0 . SO Y0Ur -z. .
rv- ger you will be responsible for most ca,11:,ully crafted plan .....
....,.n reach Its fufl potential
lf'lana ' communlcaU
~ii• you are naming names, 11st the audlen ons, but .,,.,. may be some · As the pn,je<t
W rs come prepared to provideupdat ce or stakeholdersfor each you want to detepte to others.
plaYe es when needed. communlatlon type too. That key

~--~-::=~~==~------=--------
RtS
~isk Management In Project
. k is inevitable in a business organlz ti
condition that has ·a positive
fo
or negative eff
can affectyour proJect r better or for worse.
•
a ·on when
ct
und kl
erta ng
·
projects . PMI defines risk as an unoertait
e on a proiect' b,1
.! s o 1ectfves. Basically,risk 1s any unexpected
" evewt ot
that

However, the project manager needs t ,

.,,anage
,,. ment in a project. Risk Manago ensure
ement that risks are kept to a minimal.This can be done by .._.._
Is the P •-•"• a .._._
,._
roblems that may negativelyimpacta p ., rocess used by project managers to mfnlmize ¥fY --. tlal
roJect'stimetable. ,..._.,
P
· Risk could be any unexpected event that m11&t•L
....._ affect the peopl
project. Unlike issues, which are certain to ha e, processes,technology, and fn'lolved in a
when. secause of this uncertainty,'projectriskppen, risks ~re events that could occur but you may not be able tD tel
. . . requiressen_ous preparationin order to m them
_ R;sks can be mainly·dMded between - types, negative . Impact rtsk and ovvitiuo • ....,. ellidently.
manage~ face only negative impact ri-L- th _.- ..... impact risk. It is not that project
as ere are positive i pact · ks
managersneed to come up with a mitigati pl m ns too. Once the risk is identified, project
on an or any other solutionto counter attack the risk.

4,10.1 Project Risk Management

The project risk management consists of six processeslisted as follows

• :
1. Plan risk management
Identifyrisks
2. ..
3. Performqualitative analysis
4. Perform·~uantitative analysis
.:" '' ... (.
5. Plan risk responses
• "•: I • 4•
Control risks
6.
We will explore the inputs, tools and ~nfques and outputs (rrTOs)of the risk ~anagemenl processeshere :

1. Plan Risk Management

- In this process, the risk management ~ctlvlties are defined, and the ma~r output of this prcx-eu is a risk
management plan. This process ls started when the project Is conceivedand it continuesthrough the project. The
goal her~ is to inaease the probabilityof the successof other rtsk managementprocesses.
- The major inputs to this process
are the project charter (the document which appointsthe project manacerand
provides high level description of the project),the project manaiement plan (which includesthe schedule.scope
and cost baselines), and the stakeholder register (wblch con.talns all the proJ~ stakeholders.and their roles)~
- In planning· risk management, the project manaser must analyz~ the various risk attttudes (risk appetite,
thresholds; and . tolerances) of stakehCJlders. In· order to delfflnlne the _.,..tote resoura,s >nd rbk

-----------------------------.;~.;;.~
management activities required for the project.
•
T 17 I -C•

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 men,
2. Identify Risks
documenting the risks ,that can affect proJec:t
- The risk ldentlfl catlon process Involves determining and
helps the project team to anticipate uncertainties. ·
anagement plan such as the rist(, a-
The Inputs to this process lndude key elements of the project m · i puts include -·-.
human resource and schedule management plans, and scope basellne . Other n ·ns1gt,ts boutlhe
I
register, procurement dOOJmentsand all other project documents that can provide a the
project may face.
To Identify ri sks, the project documents should be reviewed. Also, information gathering
employed. Some of the recommended lnformatlo~ gathering techniques include :
rd
(1) Brainstorming : This Involves bri~glng together a multl -dlsdpllnary team of experts, coo inated by a .
th
(usually the project manager) to generate Ideas that are used to Identify and categorize th e risks at
on a pro ject.
(ii) Delphi Technique: This ls a way to gather consensusof experts by seeking their opinions iridependently .
here is to ensure that the experts are not influenced by the decisions of other experts so as to elim_inate
(iii) Interviewing : This involves performing one-on-one Interviews with stakeholders to Identify risks.
(iv) Root cause analysis : This in'!()lves analyzing a problem to determine the underlying causes of the problem
determine if these causes are still project risks that should be dOOJmented.

3. Perform Qualttattve Risk Analysis "

The qualitative risk analysis involves prioritiz iog risks for further analysis (quantitative analysis) or action . The
here is to determine the most important risks so the project team can tows their _a~ntion on those risks.
done by determ ining the probability of occurrence of the risks and their impact on the project.

The major inputs of the qualitative risk analysis process are the identified risks, the project ~nagement
and the scope baseline. Other inputs can indude industry studies and prior information from previous ·~

4. Perform Quantitative Risk Analysis

Thi s process involves quantifying the effect of the risks on the overall project objectives . It is not uri
have risks that have effects that carinot be accurately measured and in this case, a i:,roject manager has to
how much time and effort can be spent exploring these risks.
The major inputs to th is process include the risk register, the risk management plan, and the cost and
management plans. Other inputs to th is process Include external factors in the industry and internal , •
information from prior projects.

5. Plan Risk Responses

. .
- After all the analysis, the project team needs to create a plan to respond t
_o th ese n'sics• In the ·event,
occur. The plan risk process Involves designing actions to take•advantage of positive risks ·n
O
reduce threats to the project objectives. ( pportu

The core of planning risk responses are the strategjes to dd • . .

· r a res.sing the nsks. The stra•-'-- that a
manager would employ for addressing risks Is usually d d -.......-
. epen ent on the nature of the risk, the I
resources (time, human and material resources) . bl
- avar1a e to the Project Manager .

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aa;;;aa==a-=--=--..:4-~1~9~-------
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P"'fe Planning
6- c " e Risk contro1 process Involves lmpleinenttngrisk r
0
,
.,, 111 odarY risks and ensurtngthat the risk p . esponses, ldentrfvfntnew rfsb, monft°""Ir6idual and
seCO . rocessIs efftttJve throushoutt~ oject.
uts to the process would lndude the pri
,, inforTTlat1on.
rnP . . Project managementplan, the rtsfc r!ghter and the wort( ------
....,.,.,... ,.,_
control risks, rfsk reassessments audits
,, ro ine the Impact6f the ri ks , and analysis are earned out throughoutthe course of the profect to
deterrn s and the effectivenessof their responses.
- F0 r effective
Al
risk control, variance an lysl
th ech a s Is. also carried out to measure deYlation from the Initial project
selines. so, e t nlcal perform
ba · ance of the project team Is measured regutartyto ensure that no qualty
issues have occurred due~ riskfactors.

project Risk ManagementPlanning

,.10,2
project risk management plan is a set of steps that can Identify, antldpate, and employ solutionsin case the project
runs into isSues/problems. A good proj~ risk management plan can face unexpected problems that anse, as the
plannerhas taken Into ':°"sidera.tlon all the possible~arl os ttiat can go wrongwhile executing the project.
An excellent project risk management plan can decrease·the level of problemsaffecting the project tJ, around -
go%, which is a good range to be In. ·.
ft is essential for any project on the
line to lndude a plan to manage the risks anticipatedfor that proiect. All p.ojects
have a percentage of risk hoveringthem and it always falls in need to have a project risk .Aan at hand.
The project risk management plan should containthe followingattributes and elements:

0 process : A process is adopted Jn order to Jdentify, analyze, evaluate,and mitigaterisks thfOUlhoutthe project
life cycle. ·
0 Budget : ~ere Is alwaysrisk on costingof the projectas when the projectstarts there are bound to be dal9!$ as
the project's proceeds. The method of dealing with such a change neeas to be elaboratl!d in the project risk
management plan. . •
0 Work Breakdown Structure : The strategies involvedin the project risk managementare to be to
the WBS such ashow and.when needs to be IncludedIn the projectrisk managementplan.
• 1, •

0 . Risk Register:· The frequency of reviewingthe·risk ;egister is an Importantpart in the project risk Miliacem,ent
plan.
0 Roles and Respousibllltles:When the project runs into an Issue with risk attached to it. the plan will let the
project member knowabout the in-chargeof differentscenarios.
0 ReportingStructure:'This is the same as with the roles and responslbil~lesbut briefly elaborateson the repo,tlnc
structure in the situation of encounteringa risk and In whose hands ~o the decisionsneed to lie. ·

0 Risk categories'·: Risk needs to be carefullycategorizedand slatedfor propero,ganization of Information.

There ~re basic steps that need to be followed In order to developan all encompassl,. a.nd successful risk
• I ' ' ' • • ..

rn~nagement plan.They are as follows:

1. Identifying the Risk and Credna•
Risk ~later.
· · tin rtsks It's Importantto know them and Identify them correctly.
- Before thinking about manasfns·and mltip g ' puttf• the project and Its completlonat risk
If you miss on a risk while id~l18 possible threats, you are ·
--.:_ itself.

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Pro ect Mane ement MU

-
4-20

All th e Identified risks are detailed down Into the Risk Register a nd a level Is attached to each·risl{
These levels are based on the likely occurrence of the risk In the due c.ourse of lhe Project life CYtfe
seriousness .
2.
Analyzing and Evaluating Riska
Once the risks associated to the project are Identified, the next step Is to analyze and evaluab!
determine their effect on the successful completion of the project. Risks should be analyzed and
con sidering the following two criteria : ·
(i) Likelihood
(ii) level of Impact

Project managers are urged to rate each risk listed Into the risk register on the scale of low, moderate; a
likely occurrence rate and low, moderate, and highseriousness of Impact rate. They can create a matrtx
out thl:?se evaluations so as to gain a wholesome idea about the risks and their influence on the project.
a Identifying Risk Trtggers

At this stage, the project manager can determine the roles and responsibilities that each team and the
members take up when faced with a risk scenario. Authoritative power is given to individuals to manage,
settle the budg ~ts for ·each risk and they are responsible for coming up with ideas and a plan for those ideas,,
the project manager in tow .
Roles and responsibilities can be distributed based on ·the department , working title, or expertise of
individual or team.

4. Brainstorming for Solution Ideas

Each team now takes up their risks and brainstorms Into ideas that subdue the threats. These should
preventive rrieasures or continge _ncy plans taken by the team at the start of the project to deaease or ellm
the effects these risks have on the completion of the project.
Opportunities are most often the positive risks in the project and, more so often, these opportunities can in
neutralize the negative risks that we focus on. Project managers should urge the project risk management
through ways of the project risk management pliin to pay dose attention to even the opportunities to
risks.
5. Creating a Plan
The risks are identified, ~e possible solutions or measures are taken into account, what is left to cream
action plan for these. This action plan is the fundamental unit of the project risk management and
project manager owning this plan, they will need to document all the possible solutions to all the di~
identified aaoss the project. These plans are basically risk mitigation strategies in ploy to keep the risks at
These risk mitigation strategies will either reduce the chances of the risk being accomplished or wi~I
Impact of the risk at hand . These risk mitigation strategies are born out of the ideas belted out the brai
. session held. There are two types of mitigation strategies. They are as follows :
(i) Preventative : This strategy Is designed In a manner so as to reduce the likelihood of the risk or seri
of the risk way before the risk Is even realized.
(If) Contingency : These are planned actions In the event of the risk being realized . The risks that·are
high~ priority will need to be attended to first by the project manager and their mitigadon plans
be realized before the project starts or as per the action plan. The ris~ with a lower p(iority ~n bl
care of later, but cannot be Ignored or neglected.

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, proieet::::: ~==m=ent==(M~U~~:=~=:::a:-===--.:+;i:2~1=-=--=--=--------!~=::&!:~==
Plannl
l ,,1tor10
g and Reviewing Risks
t-4° . the project proceeds as per the pro'ect1
I
6· while P an, alongsideruns the project r1sk management plan taking are
all the risks that the project mightencounter on Its way to c ti
of ampIe on. .
all the proceeds of the project risk
since management plan Is documented In the risk ~ster It's Important to
- th. document at regul · · '"-IY '
review is , ar '"Jervalsof time. Considerthe reviewperiod to be fortnightly.
project risk management Is an Iterative Process and should be seamlesslywoven Into the management of your
- •re project. It should be dosety Int t d · ·
ent1 egra e to the Issue management framework because unresolved issues
slowly succeed to become potential risks. · •

Risk Identification
4,11
AS a projectmanager worldngon a new.projectIt's necessaryfor you to carry out a thorough r1sk management anatysfs
to ensure that the project is deliveredby an agreed deadllne and at an agreed cost. Risk management wffl ensure that
the core functionalitiesof the project will be deliveredand that the design standards will not be compromised.
The risk management processon a projectconsistsof four steps :

1. Risk identification
2. Risk assessment
3. Risk response development, and
4. Risk response control

_ Risk identificationis the pro~s of listing potential project risks and their characteristics.The results of riSk
identificationare normally documented in a risk register, which includes a list of identified risks along with their
sources, potential risk responses, and risk categories.
_ This information used for risk analysis,which in tum will suppc;rtcreating risk responses. Identifiedrisks can also be
representedin a risk breakdown.~cture, a hierarchicalstructure used to categorizepotential project risks by source~
_ Though the -major wortc on risk identi~cationis usuallydone in the beginningof a project. it's important to remember
that risk identificationis an iterative process;new risks can be identifiedthroughout the project life cyde as the.result
of internalor external changesto a project.

4.11.1 Identifying Risks

- This process involves preparing checkli~ of. potential risks and evaluatingthe likelihood that those ewerwt:s miaht
happen on the project. Some companies ind~~ develop risk checkJistsbased on experiencefrom past projects.
- The checklistscan be helpfulto th~ project managerand projectteam in identifyingboth specificrisks on the cheddist
and expanding the thinking of the team. The past experience of the project team. project experiencewithin the
company,.and experts in the Industrycan be valuableresourcesfor Identifyingpotentialrisk on a project..
Identifyingthe sources of risk by categoryis another m~thod for explo~~ potential risk o1 project. Son:'eexamples
of categoriesfor potential risks Include~e following:_ .
'" I •... I• • •· '

o Technical
0 Cost
o Schedule •• I

o Qient
° Contractual

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r o
o
Weather
Flnandal
ment MU

o Political
o Environmental
o People

- The result Is a clearer understanding of where risks are most concentrated . This approach helps the P,ofect
Identify known risks, but can be restrictive and less creative In Identifying unknown risks and risks not easily
inside the WBS.

4.l l .2 ldenttflcatlon Essentials

Risk Identification Is a Process of brainstorming. It Involves contlnuouslmplementatlon as new phases, elCIJiffll!III

-~,--n ts
and vi,_,,.,,,,. . are Introduced . Being vil'al to the management process , there are some essentials to rt.sic
· ldentfflcatlor,
guarantee maximum results .
1. Team Participation

Face-to-face interactions between project managers and the team promise better and
communication . The must feel comfortable to share and find hidden or elusive risks.
2. Repetition

Information changes and appears as the risk management process proceeds . Keeping Identified risks rurrent a
updated means the system is focused on mitigating the ~ost prevalent Issues.
3. Approach

Certain objectives require distinct approaches to best combat Identification failure. One method is to Identify all
causes, undesirable events , and map the ir potential impacts. Another is to identify ~ntial performance fund!
the project must enact to be successfu l then find possible issues with each function or goal.
4. Documentation
Consistent and exhaustive docum entation leads to compre hensive and reliable solutions for a specific project
future risk management team' s analysis. Most communication is recorded by a project manager and data is
stored, and updated for continued risk prevent ion.
s. Roots and Symptoms
It is essential in the risk identification phase to find the root causes of a risk instead of mistaking them with
symptoms. A symptom can be confused with the root cause, making· it critical to discoYer the origin of risks
denote what their symptoms are.
6. Project Definition Rating Index (PDRI)
PDRI is a risk assessment tool that helps develop mltfgatlon programs for high-risk areas. It facilitates the ~•s
assessment within the defined project scope, budget, and deadlines . It also provides further detail of lndivid~I
and their magnitude , represented by a score .

7. Event Trees
Comm.only used In reliability studies and probablllstlc risk assessments, event trees represent an event folloWed
factors and faults related to It. The top of the tree Is the event and It Is supported by any condition that ffril'f
that event, helping with likelihood visibility.

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 ·eet p.4anagement(MU) 4-23
PlanningPrefe
~eglster
~::...r,-=a~ls-o~k-no-wn--as_a_rt~s~k-log,--ls_a_n_lm
_________ _____________ _

Af1Sk r g u track details of the risks portant component of the risk management systffll. A rtsk register Is a
that helps yo f a project. A risk regt t . ~ssoclated with a project and address them u they arise. It rs created during
1001
earlY stages s er s used to Identify,assess, and manage rtsb to acuptable le'fflS through a
1.~e d updating process. ·
·e'llan
,evl
purpose of a Risk Register
4J2,1 .
" k......i
Of .
Tlle purpose a ns '""l!>'sterIn project management Is to record the details of all risks that have been identffiedafonf
, with their analysis and plans fur how those risks will be addressed.

Risk register identifies risks along With their severtty.'ft also outJlnes the actions and steps to be taken to mltfpte tht!
, risk. The risk regisler da ta base can be viewed by project managers as a management toot for monitoring the rfslc
,nanagement processes within the project. It Is the responsibility of the project manager to ensun! that the risk
register is updated ~enever necessary. The task of updating the risk register Is usually delept.ed to the project
control function.
The list of risks that are identified and recorded in the risk register drives the followingrisk man~ processes.
perform Qualitative Risk Analysls .
1. • I

1n the Perform Qualitative Analysis process, deta iils are added to the existing list of risks in the risk registe indudfnt
the priority, urgency, categorization of risks, and any other trends that were noticed while perfonnfng this process.
Risks that have been ·managed, avoided, or are no longer relevant can be. removed from the risk register. The-
associated risk actioo plans can also be deleted from the risk register.

2. perform Quantitative Risk Analysis .

In the Perform Quantitative Risk Analysis process, the risk register is updat.ed with t:fle probabifdies assodab!d with
each identified risk and the probability of meeting the cost and time projections. Additionally, risk. priorities are
updated and trends that have been observed are also noted.

3. Plan Risk Response

- In the Plari Risk Response process, a specificresponse plan Is created. to manage each risk. These risk respoi.se
plans are updated in the risk register as an output of this process.
- While managing risks, not.all risks are negative th~re. are positive risks as well which are.called opporturuties. A
project manager should devise strategies for managing negative risks or threats as well as positive risks or
opportunities.

4. Monitor and Control Risk

In the Monitor and Control risks process, risk management plans are re-assessed and re-evaluated. The risk register Is
updatedwith information on new risks. This Informationshould be regulartyupdated In the risk register. whetherit is
changingto the risk estimates or actual numbers such as costs related to weather damage.
.. • • t

4.12.2 Risk Register Creation

- As per the PMBOK Gulde, the risk·resfster Is the output of the Risk Identification process. This process Is a of the
planningprocess used to lden1ffythe rtsks, which could Impactthe projectand understand the nature of those risks.
- Althoughthe Risks IdentificationprocessIs performed early on In the project, risks change over time and new risks can
---:..rise.
lherefure, It may be n~ry .to perform the Identifyrisks processmultlpletimes throughout the project.
. . .'PbstC p ,.-
, .... <llt••·

.. ....

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 4-24

4.12.3 Contents of Risk Register

. of the categories created are scope, ti
1. Risk Category : Risks are categorized as per their seventy. some ones helps tease out likely risks and Bro\J me,
resources, environmental, or another key category. Using these categ Ps
into relevant categories for future reference . ·
d F i stance the first potential risk Ide·
2. d
Risk Desaiption : A brief description of the potential risk Is recor e · or n '
mbers don't have enoush time ""~
the Resources category is: "There Is conflict over resources and team me . -.
competing demands."
3.
st
Risk ID : A unique identification number is used to identify and track the risk in the risk regi er. If Resou
Category 8, then the first risk identified in this category has a unique 10 of 8.1.
4. Projec;t Impact : A description of the potential impact on the project as a result of the risk is also written.
example : -ine project schedule may slip, budget may increase and project scope may not be achieved ."
s. Ukeiihood : Here, .the estima;ed likelihood or probability that the risk will occur at some point and become a
issue is recorded . This can be qualitative: high, medium, or low; but it can also be quantitative if enough inform~
available. For our example, we know that resources have been over-committed in, the past and we assess
likeJihood of occurrence as •High." ·
6. Consequence : lhe potential consequence or impact of the risk if it becomes a project Issue is also written. For
project. time is a fixed constraint, and so any risk that has the potential to significantly delay the project schedule h
a "High" consequence .
7. Risk Rank: This is the magnitude or the level of the risk. It is a combination of likelihood and consequence. As they a
both •High" in our example, then the risk rank is also "High."
8. Risk Trigger: The triggers that indicate the need to implement contingency plans are mentioned in he risk register. fo
example, "If resource confli~ have not been resolved three weeks before the scheduled start date, then lmplemen
contingency plans."
9. Prevention Plan : This is an action plan to prevent the risk from occurring. For our example, the· Prevention Pia
indudes ! Liaise with functional managers and team members to pre-empt future conflicts; and specify ~nd a
resource needs (staff and equipment) with functional managers.
10. Contingency Plan : This is an action plan to address the risk If it does occur. For our example, the Contingency
indudes: "Train and up-skill existing team members in combinat ion with HR department ."
11. Risk OWner : This is the details of the person responsible for mal'!aging the risk and Implementing the Prevention
Contingency Plans. Stakeholders, members of the project team , the Project Manager and the ·Project Sponsor can
be risk owners.
12. Residual Risk : This is the risk that remains after treatment is carried out. After treatment, we assess the residual
level as "'Low"

4.13 Qualitative Risk Analysis

Qualitative risk analysis is the process of evaluating the potential losses to .a project from a particular risk. It is
using a combination of known information about _the situation, knowledge about the underlying process,
judgment about the information that is not known or well understood . . · .

- A qual~tive ris~-analysis prio~tizes the i~entlfied project ~sks using a pre-defined rating scale. Risks are scored
on their probabrhty or like.lihoodof occurnng and the likely impact on project objectives. . . .
- Probability/likelihood is commonly ranked on a zero to one scale (for exam 1 · •· . :.6
.k t rl ) P e, •3 equating to a 30% probal:MlitY111
ns even occur ng . . . .. .

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. :::::::
p,oJeet
l ·mpact scale is organlratlonally defined (for example, a one to ffve scale, with five being the highest Impact on
rt,e' ObJ'ectives - such as budget, schedule or quality)
/ ·ect ' •
prOJ litative risk analysis also 1ndudes the appropriate categorization of the risks either source-based or effect-based.
A~ ,
' Reasons to Perfonn Qualltatlve Risk Analysts
413-1
· ·ect managers and teams have to deal with ·competing demands as there Is often more wortr to be done in less
p(OJ • ·.: .: f
, time, Therefore, pnonuzauon o our work becomes Important. .
AS there is always o~e or th e other risk possible, the evaluation of risks becomes necessary to clsatmlnab.betw
' ·tterent risks. Thus ,t creates the necessity for performing a qualitative risk analysis. This helps us determine the time
:~d budget to invest in responding to our risb. With many risks, sometimes we also choose to do nothins if the
probabilityand Impact are not great enough to merit a response. Thus, we slmply acapt the risk.
aualitative Risk Analysisis necessary after risk factors have been ldentifled. It should be pt:rfonnedfor project.
' matter the size, deadline, or quality.
no
The reason being that qualitative risk analysisexamines every singie risk that could lead to project disastl!r. rt·prepares
the team for •worst case scenarios" and how to avoid or handle the risks if they do happen.

_ .2 Methods of Qualitative Risk Analysis

413
_ Here, the risk scale is textual. You calculate risk in low, ,:nedium, or high probability. It also can be cok>ur coded.
numeric, or a combination of all. . · ·
_ rn this respect, the me~urement is more detailed than with~quantitative risJc analysis. Quantitative measures in
monetary (funding, expenses,costs) and schedule (days, weeks, months and years) terms.
_ A properly conducted qualitatNe risk analysis highlights potential issues in a project that can or will rmt PIOliess.
With qualitative risk analysis, you will note the complexity of the risk. probability, and impact to create a proper pa,
of action.
We consider four of the most useful Qualitative Risk Analysistechniques applied in project manaaement.which are as
follows:

1. Delphi Technique
This is a form of risk brainstorming. Delphi Technique makes use of expert opinion to identify. analyse and evaluate
risks on an individual and anonymous basis. Each eXi,ert then reviews other expert's risb. and a risk resister Is
produced through continuous review and consensus between the experts. ·
2. SWIFT Analysis
Standing for •structured What-IfTechnique•, this Is a simplifiedversion of a HAZOP. SWIFTapplies a~ tNm-
based approach In a ~p environment, where the team Investigates how cha~ from an approveddeslan. or
plan, may affect a project through a series of "What If" considerations. This technique is particularly useful In
evaluatingthe viabilityof Opportunity Risks.
3· DecisionTree Analysis

Similar to Event Tree Analysis,but without providinga fully quan,ttattve output, DecisionTree ~s is most often
used to help determine the best course of action wherever there Is uncertainty In the outcome of possibleevents or
Proposed plans. This Is done by.starting with the Initial proposed dedslon and mapping the different pathways and
outcomes as a result of events occurring from the Initial decision. Once all pathways and outa>mes have been
established, and their respective probabiiltfesevaluated, a course of action may be selected on a combi~tion
~e most desirable outcomes, associated events and probabllttyof success. · .
• 'hen s ,-
•••nc•• ••••

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ProjectManagement MU) 4-26

4. Bow-tie Analysts
. •d itifv riskmltigations . Bow•tie Analvsls
This Is one of the most practical techniques available In helpmg I en .
the left all the potentia 1 causes of the
looking at a risk event and then projects this In two directions . T0 ' 'bl · Id
e listed It is then poss, e to enttty
listed and, to the right, al\ the potential consequences of the even t ar · .
mitigations \or bamers) to each of the causes and consequences separately, effectively mitigating both \he
of risk occurrence and the subsequent Impacts, should the risk stlll occur.

4.14 Quantitative Risk Analysis

- Quantitative Risk Analysis is a project management process that numerically analyzes the effectsof identified
the entire project objectives. The benefit of this process Is that It creates information of the quantitativerisb
support the· decision-making of project managers to minimize the uncertainty of the projects.
- This particular project management process ls used on the risks that have been identified and prioritized by
Perform Qualitative Risk Analysis process that can substantially impact the ~mpeting demands of the project.
- Thus, Quantitative Risk Analysis is used to analyze the effects of the risk on the project objectives. It is used
evaluating the aggregate effects of th~ risks that affect the project. It is important to take note that the process
used to provide numerical priority rating to the Individual risks. . ·
- The concept of quantitative risk analysis is of fundamental importance when it comes to the assist the proj
management team or the project management team leader to take the action at the onset or prior to the onset of
project to adequately and appropriately ascertain the approximate level of risk that so may exist in regards to
conduction of the given project and or series of projects.

4.14.1 Importance of Quantitative Risk Analysis

L Better overall Project Risk Analysis : Individual risks are evaluated in the qualitative risk ~nalysis. But the qua
analysis allows us to evaluate the overall project risk from the individual risks.
2. Better Buslness Dedsions : Business decisions are rarely made with all the information or da~ we desire. For
aitical decisions, quantitative risk analysis provides more objective information and data than the qualitative a
While the quantitative analysis is more objective, it is still an estimate .
3. Better Estimates : It helps in preparing accurate estim.ates. For example,a project manager estima~ a
duration at eight months with a cost of Rs. 3 million. The project actually took twelve months and cost Rs.
million.The reason for this variation is the fact that the project manager did a Work Breakdown SuuctUre ~)
estimated the work. However, the project ·manager failed to consider the potential impact of the risks lgood and
on the schedule and budget.

4.14.2 Usage of Quantitative Risk Analysis

Quantitative Risk Analysis is more often used for

Projects that require a Contingency Reserve for the schedule and,budget.

Large, complex projects that require Go/No/Go decisions which may occur multiple times in a project.
Projects where upper management wants more detail about the probability of completing the pro,iect on schedule
within budget.

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t.4ansgement(MU) · • 4--27

~antltattve Risk Assessment Toola & Techniques

14,3
,. ·tative Risk Analysistools and techniques Includebut are not limit•-' t .
a11antl O.
,i:u

. t Estimate : This technique uses th Optf

ree po,n · e mlstlc, most lllcely, and pessAmlstlcvalues to determinethe best
111
!• estimate.
• Tiree Analysis : It ls a dla_,.m that sh
oedstotl ~·.. ows th e Implicationsof choosing one or other alte~
i, ~cted r.41onetarvValue (EMV) : This method Is used to establish the contingency reserves for a project budcetand
3. scf1eduIe.

r.1onte carto Analysis : This technique uses ~ptlmlstlc,.most likely, and pesslml.sticestimates to determine the tDbl
'- projectcost a nd project compl~on dates. For example, we could estimate the probability of completjn1a pn,tect at a
cost of RS. 20M. Or what is a tomPi!ny wanted to have an 80% probability of achieving Its cost obtectiws.What is the
cost to achieve80%?
sensitiVitYAnalysis: This technique ls used to determ ine which r,sks have the greatest Impact on a protect.
s.
fault Tree Analysis(FMEA) : This technlq~e uses the analysis of a structured diagram which Identifies elements ttat
6,
can causesystem failure. . ·

_s Probability and Impact Matrix

41
_ Risk Probabilityis the determination of the probability of a riskoccurring. This can be based on either historicalproject'
information or the interviews or meetings with individuals who have knowledge of the probability of risb ocxurri,._
When determiningthe probability of a risk occurring it is often given a score such as high = 3, medium= 2, or low= 1.
_ Impact AsseSSment is the evaluation of the impact of a risk if it were to occur. If the risk occurs would it be
catastrophic to the project or a ·minor lnconvenien~ An impact assessment is generally mnducted in n.eetiacsor in
interviews with individualswho have the appropriate knpwledge to evaluate the impact of a risk. upon ·completion of
an impactassessment a risk is often given an impact score such as high= 3: medium = 2. or low= L
- Probability and Impact Matrix is a tool for the project team tr;, aid In prioritizingrisks. There may be several risks in
any project.Depending on the size and complexity of the project in hand, the risks may vary somewhere~ double
digits to triple digits. But we often do not have the time and money to look in~ all these risks. let ak>ne the response
action. So, it is necessary to-find a way to identify those aitical risks which needs the most atm'ltion fn>rn the project
team.
- Probability and Impact Matrix uses the combination of probability and Impact scares of Individual risks and ranb/
prioritizes them for easy handling of the risks. In other words, the probability and Impact matrix h~ps to determine
which ris~ need detailed risk response plans. It Is vital to understand the priority for each risk as it allows the project
team to appreciate the relativeImportance of each risk.
- For example, a rtsk with· a high probability/likelihood of occumnsand whlth will have. a high impact on the project
objectiveswill likely need a responseplan.
- AProbabilityand ImpactMatrixis a visual representation of the results from Risk Probabilityand Impact Assessments.
The rnatrtx generally used i.s a 3x3 matrix (with low, Medium, High rating for Probabilityand Impact) or Sx5 matrix

---(With Very Low, Low, Medium, High and Very Hlih radnp for probability and. Impact}. A Simple ProbabiUty-fr,,pact
Matril(is given Here for your reference.
.

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4-28

Impact

Trivial Minor
•II , ' ! '•i.

Rare 'Low '

· '•

Very llkely

Fig. 4.15.1 : Example of Probability-Impact ·Matrix

-
· d· ct f this risk is major, then you look
If a particular risk has a moderate probability and the estimate 1mpa 0
into
respective row and column to identify the risk rating. For a ~oderate probability and major impact, th e rfsk ·
the matrix is "Medium". The col~urs are visual indications of the seriousness of the risks.
- Risks can be prioritized for further quantitative analysis and planning risk responses based on their risk rating.
are ·assigned to risks based on their assessed probability and impact. Evaluation of each risk's importance and ·
for attention is typically conducted using a look-up table or a probability and impact matrix.
- Such a matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate,or h
priority. Descriptive t~rms o.r numeric values can be used depending on organizational preference.
- Each risk is rated on its probability of occurrence and impact on an objective if it does occur. The organization sh.
determine which combinations of probability and impact result in a classification.of high risk, moderate risk, and
risk. In a blade-and-white matrix, these conditions are denoted using different shades of ~ray.
These risk-rating rules are specified by the organization in advance of the project and included in organ· •
process assets. Risk rating rules can betailored in the Plan Risk Management process to the specific proJect.

4.15.1 How to Use the Tool?

The Risk Impact/Probability Chart is based on the principle that a risk has two primary dimensions :

1. Probability

A risk is an event that "may" occur. The probability of it occurring can range anywhere from just above o
just below 100 percent. (Note: It can't be exactly 100 percent, because then it would be a certainty, not·a rblc.
can't be exactly O percent , or it w_ouldn'tbe a risk.) · · · · ·

2. Impact

A risk, by its very nature, always has a negative impact. However the · f th • . .. •
. . , s11e o e impact vanes·m.tenns of
and impact on health, human hfe, or some other critical factor . ,
The chart allows you to rate potential risks on these two di · · ·
mensions. The probability ·that a risk will
represented on one axis of the chart- and the Impact of the risk, If it
•.· . ,._ . •• • •t • • ,, .. _ • • . • ,· ' • I, , .. , a. •
0 ccurs, on the other .
- ;The basic form·of the Risk Impact/Probability' c'ha·rt':Is·sho· ·.,: · ··F,: ·,<. ··..
. · ·· . · . wn 1n 1g:-.~1~:2.

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I
Low
low -------+High
Impact of Rlak
Ag. 4.15.2 : RWt lmpacttProbabllltyawt
1')1e comers of the chart have these characteristics :
(ii L0'1f impact/lowproblblfty: Risks In the bottom left comer are low level, and you can often ignore them-
Risks in the top left comer are of moderate importance - if these things ~""'.appet_,,.
(ii) L0'1f impact/hf&h.probablllty: ...,
you can cope with them and move on. However,yo~ should try to reduce the likelihood that they'll ocxur.
(iii) High Impact/low probablUty: Risks In the bottom right comer are of high Importance tf they do oca,r, but
they're very unllkeJyto happen. For these , however, you should do what you can to reduce the impact they'll
have if they do occur, and you should contingency plans in place just in case they do.
(iv) High Impact/hip probabllty: Risks towards the top right comer are ot critical importance. These are your top
priorities, and are risksthat you must pay dose attention to.

4.1s.2 Preparationof Probablllty-lmpact Risk Matrix

Use : While prepari,w the matrix,the first thing to be done is ~e the type of_ data dat
1. Determine the Data to
will go into your~~ Y~.~ :use~ ~rO!frPl'.i«·~~ -~ ~-SU~ of ~ nfo'!ll~people.
2. Decide on the Slte of Your Matrix : Next is to decide on the size of your matrix. The simplest matrix is 2 x 2. with
high and low levels each for impact and probability.A 3 x 3 involvesthree levels each : high, moderate and low, for
impact and probability_Some matrices use even more levels.
3. Ust Events to Include In the Risk Matrix: Next ls
to list all events to be entered into the risk matrix. Make E¥ent
Coordinates Table with five columns. Label the first column •Even~• and in that column write all the events you
have listed. ~bel the second column •impact,· the third column •Probability,• the fourth column •impact Sect~
and the fifth column •Probability Sector.•
4. Gather Impact and PrabablUtyData : After llst1n1 the events 1ather Impact and prQbabUltydata for each event. tf
you use survey data, averaceyour survey data to a.single figure. If you use previous research data, you wiU have to
use some method (lib: weighted averaging) to come to a single f!1ure for probability and Impact of each event.
5· Enter Impact and ProbabilityData : Enter final data for Impact and probability for each event Into the E\rent
Coordinates Table. Enter the data In the •impact" and •Probability" columns, respectively. . ·
&. ~ne How to 0lltlllOdzeImpact Data : Determl~e h~ to cate1ortze your Impact data. If YoU have a 2 x 2
rnatnx.you might set a •Hilh Impact" eventas anything above the midpoint of the range of your figures for Impact.
example, if the range of potential financial losses Is O to 20 mllllon, you ml1ht set the dividing llne between
1bntl 7 \"
• ,., uc•••••t

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 ~30
. Mana ement (MU) · might set the dividing line arbt~
Protect million. Alternatlvely, you ''-
•High Impact" and •Low Impact" events at 10 " I h Impact." .
rhaps any losses above l millionare H 8 . You must determine the boun~
example, pe 3 x 3 levels or more. • ~-.,...JI
me decisions must be made for a matrix of size Write the categorization of the impact dltti
The s:H. h Impact" •Moderate Impact," and •Low Impact" areas . "L Impact" - in the "Impact Sector"
your ,g , t Impact " and ow
each event - for example, "High Impact,• "Madera e '
on the Event Coordinates Table. our probablllty data . If you t,_
how to categor 1ze Y
Determine How to Categorlte ProbabilityData : 0eterm 1ne b bilitv With a 3 x 3 matrix, divide
7. bo e SO percent In pro a .
x 2 matrix. set a "High Impact" event as anything a v ., and "Low Probability." Write
probability range equally across the . three areas of "High," "Moderate, b bit--" or "l.OW Probability" -In
mple "High Pro a 1ly
categorization of the probability data for each event - for exa '
•probabilitySector" column on the Event Coordinates Table.

4.16 Risk Response Strategies for Positiveand Negative Risk

•tu ·t the Impact ;s positive which you
_ A risk is not always negative. A risk is known as a positive risk or opportum., 1 . .
. If h I
want to actualize. Similarly,a risk is known as a negative risk or threat t e mpa
ct ls negative and 1n this
'
case.
will want to lessen its imp.act.
- As risks differ,strategies to manage them also vary.

4.16.1 Negative Risk Response Strategies

Strategies can be made to deal with negative risks. Ideally, you would like to avoid the risk. but in most cases. it is
possibleto do that all the time. Thus, you will utilize strategie.s. Some of them are

1. Escalate
- You use the escalate risk response strategy when yo~ identify risk·and find that you cannot manage it on
own because you lack the authority, resources or knowledge required for
. . a response.
- You will contact your project manager or the top management to Inform them about it and ask them to take
responsibilityof managing the risk when this kind of situation happens. You won't take any further action
to note it down in the risk register once the top management or PMO accepts your request to take NMl:nniMtll.-
for the risk.
- For example, you know that the government is planning to announce a regulation and it could impact
project negatively if approved. You have no legal advisor and other resources to manage this risk. so you
approach your superiors to handle the risk.
2. Mitigate

- You will try to lesser the impact of the risk In this risk response strategy. You can do so by either trylrW
deaease the probability of the risk happening or the effect of the risk. Th"IS st t d rttyof
.k ra egy ecreases the seve
ns .

-For example, you find that a team member may leave for a specific duratl d ri h ..-i..rt . -ar
. . on u ngt epeakofyour..,.,".-•nu
1s a negative risk; therefore to minimize the impact of his b • ,.-t1..,
. . a sence, you find another employee with Slrm-
quahfications from your organization and Inform his bo th
ti Thi ss at you may need him for your project .for some
me. s employee may not be as capable as the old employee b t h
--~-------------:------~~=•-=u::e~ca:n:co=ve=r~fo:r~th:e~o:ld~em~p:lovee::·~~
a11tC =;;;
1IIIP" ,11 11eot1t••

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p.1~gernent(MU} 4-31 ptanningProjedS

,,ster
~- 1"' yot.J use this strategy when you lack skllls or resources to manage the risk, or you are too busy to m-anageIt.In the
,, t(clnsfer risk respo~ strategy, you transfer the rtsk to a thltd party t.o managf! it. Though tran1ferrtng not
eliminatethe risk; tt only shifts th e respooslbilltyof managingthe risk to the third party.
for e,iarnple, in ~ur project, there Is a task to Install some equipment, and you have litde e,rperfentt wtth this
,, task- The task is complex, and few contractors have successfullyInstalled It. Therl!fore, you find a con.tractor and
ask them to Install It and sign a fixed prfce contact.
In this way, you have transferred the responsibility of the whole task to a third party, and now it. is their
- resPonsibilityto complete the task within the agreed time and cost.

,woid
4. Here, you trY to eliminate the risk or its Impact. You do this by changing your project management plan-, by
changingthe project scope, or by changingthe schedule.
This is a desired risk response strategy mainly used for critical risks. This is the best technique for at1 risks;
hOwever, it cannot be used most of the time.It is easy to use this strategy if you identify the risk in a W!fY
stage; otherwise, it is difficult to adopt this strategy because in a later st.age changing scope or schedule is a
costlY affair.
_ You will have to convince the client or your management to change the scope or schedule to use this stratelY-
You can only utilize the avoid risk response strategy after their approval.
_ for example, you observe ~at during certain periods of your project there is a chance of rain and_you have wortE
plannedoutdoors at that time. Therefore, to avoid this risk, you move these activities to a few days later to avoid
the impact of rain.

5. Accept
- This risk response strategy can be used with both kinds of risks, i.e., positive risks or negative risks. Here you take
no actionto manage the risk except acknowledgingit.
- You use this strategy when the risk is not critical,if it is not possible or practical to respond to the risk throuahthe
other strategies, or if the importance of the risk does not warrant a response.
- You can accept the risk either by actively acknowledgingit or passivelyacknowledging it. In the active .acceptana!
you keep a separate contingency reserveto manage·the risk, and In passive acceptance, you do nothing except
note down the risk in the risk register.
- For example, you are diging to construct a building, and there Is a risk that you may find artifacts. though the
chancesare low. So you note it d~wn and take no action as a response plan may cost you a lot with no guarantee
of findingan object of interest.

4,16 2 Pasitl •
· ve Risk ResponseStrategies
P<>siti • • •
ha ve nsk ts also known as an opportunity, whldfhas a positive Impact on yourproJect. so you Will always wantitto
PPen Th
not ·. e most desired strategy for opportunity Is •exptolt9which ensuresthat the opportunityls realized, though it ls
Possibleto
lisJt is r .
~nitsown. _____ __ .
__;_
.
______________~---
use ttus strategy all the time. Accept Is the least desire~ stratecv where you take no action .and hope the
___;_,____..:.:..
• et:•
T I\•
1llf' •••llc•tt••s
.

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 4-32
pro;ec!ManaQement(MU)

Escalate . and you are unable to realize It as You liC:ft

1. is used when there Is an opportunity , §
This risk response strategy . allze this opportUn ity.
red
authority to take the necessary steps requ i to re · . ct manager and ask them to look into It.
nt or the proJe ....
_ Therefore, you will approach your top manageme th n·sk it is no longer your resP<>nsl"hila..c
1 1 to manage
bTty e ' · ·-"f
they review the request and aca!pt the responSI r further monitoring.
. rd th" . k I your risk register ,or
manage it, though you will rea> is ns n bl in bulk you will get
if you buy a consuma e • a
_ For example, let us say you see an opportunity where . larger quantity will not benefit
di.scount. However, you require much less and buying consumab 1es '" a :
most of it will be wasted.
if anyone requires the same co
- So you ask your PMO to consult with other project managers to see .
'd · b lk and realize the opportunity.
yes, you can combine the requirements and place the or er in u

2. Enhance ,
50
- In the enhance risk response strategy you tJy to Increase the chance of a risk happening you can realize
• · y
benefits of this risk. In this case, you try to realize the opportunity . ou ca n say that the enhance risk resi:Mlli• I

strategy is the opposite of the mitigation risk response strategy.

- For example, let us say your project will be co~pleted in three months . You find out that the government
about to float a similar type of project in two months . Therefore, you can bid for a new project if you
complete your project in two months. This is an opportunity for you.
- Therefore, you tJy to compress the schedule with fast-tracking so that the project can be completed ahead
time and you can have a chance to bid for the new project.In the our following example, you are using
enhance risk response strategy because here; you are trying to realize the opportunity.

3. Exploit

- In the 9plo it risk response strategy, you ensure that the opportunity is realized. Here, you do not try to
the opportunity; you make sure that the opportunity is rea.Jized.
- · For example, let us consider that your project will be completed in three months. You learn that the -,-n•
is about to float a similar type of project in two months . Therefore, you can bid for the. new project if yau
complete your project in two months.
- You have an opportunity here if you complete the project ahead of time, you will get a chance to bid for
. next project.Now you have to ensure -that you realize ttiis opportunity . You take every possible measun
ensure that th e project is completed ahead of time so you can bid for the new project. You brins new
oompress·the schedule , do overtime, etc.
4. Accept

- This risk response strategy is common for both type -of risks; I.e., pos itive risks and negative risks.In the
risk response strategy, you take no action to realize the opportunity . You leave the opportunity as is, and
happens on its own, you will benefit from It. This risk response strategy is used when the cost of the ·. ·
high, and there Is less of a chance of It occurring or the benefit does not ou~ igh the effort Involved.
- For exam~le, suppose there Is a chance you may g~t some skilled workers from anoth~r ~ject at a lower
you convince them to join you. However, you do not pursue this matter and instead let them decide lllhl!IIIU •
they are intere$led in your pro ect or not. '

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 • ..,.t p,4ansgement(MU)
~ ·
5.
s;
,,.
-
yoLI 1.1se the share nsk responsestrat
ith ~When
~ Plont'"R•r
yo1.1 team up w anothercompanyand You are not capableof
Wort t~h rea1lzfns the oppo,tuntty
for example,supposethat due to th I er to reallzethe opportunity . on vou,-own. So,
,,. eactora •
and your companywants to let this SJ>edfictechnfcalca abfl
doing this task and jointly bid for th ProJect. Therefore,You team ~P you are not able to bid for a protect,
ProJect. another companythat Is capable f1f
Here, you are using the share rfsk
,,. response strat I.-.-.
teamingagreementis an exampleof th h '1Y ~use the profit wtll be' shar@d bctwee, both parties.
e s are rfslc responsestrategy. r A

0,1
DescribeResourceOptimization What ·
-l
oescribeR~rce Allocation.What are Its h-......_
ua, IUlll3? {R9fw Section. 4.2 8f'ld 4.2.1)

o.2 · 818 its benefits?(Refer SeclkN• 4.3 end 4.3.1)

o.3 DescribeNetwortcCnwmg. Why is it done? (ReferSection4A)
st
o.4 Describethe ep by step process of crashinga network. (ReferSedlorl84A and 4.A.1)
o.5 Write a note on Resourceloading. (Refer Section 4.5)

Q.6 What is ResourceLeveling?Why is it done? (ReferNCtion 4.6)

Q, 7 DescribeCritical Chain Method. Describeits process.(Refer Sectlona4.7 and 4.7.3)

0.8 What is a Pro;ectBuffer? What ara ils types? (Refer section 4.7 A)
Q.9 Describethe aiticaJ chain schedulingmethod. (Refer Section 4.7.7)
'
a. 10 Write a note on the slakehold8fsin Project.(Refer Secdon 4.8)

a.11 Suggestsome of the ways of managingthe stakeholders.(ReferSedb• .u and 4.U)

a.12 What is Project CommunicationPfan? Desaibe 1he processof its pmnnlng.(Refw Sectlan4..1)
Q. 13 Oescnbe Risk Managementin Project.(ReferSecllon 4.10)

a.14 Describein brief the processes of Risk management(ReferSections 4.10 and 4.10.1)

. Identifysome of its essentials. (ReferSedkll• 4.11 and 4.11.2)

0. 15 DescribeRisk Identification

0.16 Explain Risk Register. What are fls contents?(Refer Sectlons4.12and4.12.3)

0. 17 DescribeQualitative Risk ManagementAnalysis. Describe any four methods._(Rlfw s.dlol• 4.13 and 4.1U,
Q. 18 DescribeQuanti1ativeRisk Ma~gement Analysis . Describeany four melhods.(Relw SactloM 4.14 and 4.14..S)

Q, 19 Describeprobability and Impact Matrix. How'dowe use It? Describe. (fWw Secdol•4.15 and4.15.1)

Q. 20 Descobethe steps to prepa,8 a probabilityan<1 I~ Matrix. CfWw Sadlon 4.15.2)

a.21 Explainthe negativerisk ~esponst;strategles.(Aerer Section 4.1 8.1)

----
a·22
.
.
IC!,----n4.11.2)
Explainthe positiverisk responsestrategies. (Rel9rSecdol
000

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 . cuting, Monitoringand
Proiect Exe ii·ng ·
contro • ·

~labUa . . reportinQ, engaging wtttt all stakeholdefsof flt

Planning monitoring and contmlhng cycle, lnformatiOO needs~ Val Man898ffl8"' techniques
ject meetings Earned ue
projects, Team management, commun~tlon and pm u~ change requestsand scope aeep,
measuringvalue of wol'k completed;Using mllestones for meas
audit. Projectprocurementmanagement, contracting and outsoorcing.

s.1 Introduction
- The project management monitoring and controlling starts as soon as a ~ro}ect begins. Monitoring and
project work is the process of tracking, reviewing, and regulating the progress in order to meet the pen
objectives. It is a very important part of ProjectManagement.
- Project Work in~olvestrackingthe actual project performancewith the planned projectmanagementactivities.It
mainly be looked as a Control ~nction that takes place at all stages?fa project i.e. from Initiation through dosing.
- This process of monitoring and controlling project work is extremely important as it can happen that you are
completethe project on-time, however,have not been able to meet the desired quality levels.
- Similar1y, your project has increasedscope, however,have exceededlimits of time and cost. The project manager
balance the requirements of different knowledge areas to control the project through Monitor and Control
wor\. ProjectManagerscreate performancemeasuresor use existing organizationalperformance measures to ·
project performance at regular intervals during the course of the project. Monitoring and controllingproject
involve monitoring any other performancemeasurethat the project managerhas .createdor used for this project.

5.2 Project Monitoring

. Project monitoring is an integral part of the project management.It providesunderstanding of the pn)iTeSS
prothJect so that appropriatecorrective_actionscan be taken when the performance de'liatessignificantlyfrom the
pa .

5.2.1 Characteristics

- ~t consists of regular systematic collectlon and analysl.s of lnfonnation to track the

implementationagainst pre-settargetsand objectives. progress of the
- It is an important management tool which provides continuous feedb k
well as assistsin the Identification of potential su . ac on the project implementation
- . . . ccesses and constraints to facilitate timelydecisions.
Effe_
~_ ve monitonng of the project Is a critical element of good ro· .•
dec1s1on making by t he managementand provides . • p Ject management.It supportsinformedand tiJrielr
I i accountab1htyfor achievingresults
t s a ke~ part of project cycle management.It Is to be built Into •
tool which can be used during mid-way f h th e project at the planning stage. It is not an •add«I
th O t e project lmpl ·
roughoutthe project. ementation. On the other hand, it is to , be W(lldl

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 Pre,ect Exocutlng, Monl10ffng& Con
• ~d;ntages
, iJ .
ring clarlfles project objectives II ks •
r . ct 111on1t0 • n actfvltles and their resources to ot,te~, translates ob;ect-iw!S
ProJe rformance indicators and sets targets • rout Ine,,1u __.-,,.
collects data on these Indicators compan?S 3CtUal re5ulU wn.n
" 1.,,10 pe
and re
parts progress to the man agement and alerts the management about thf! ' •.--1u
problems which frequo:.. ur
1a,ge!S, ped up during the Implementation of the project.
cts ,roP
g rovides Inf ormatlon to th e management whether the project Is proceeding as per schedule relatM! to the targets or
, 11 p •s time over run In th e project Implementation . It also focuses In part icular on the efficiencyand the use of
re , ' ,
,ne ,es during the project Implementation . It provides support to the management In Its efforts to compl~ the
sour
re ·n time and within the budget.
prDJ
·ect I • . •
·eet monitonng activities take place In parallel with the project execution activities so that, whtle the project woffctS
, p~J e,cecuted, the project ls being monitored by Implementing the appropriate level of oversight for the purpose af
l)elllg •
·d-waY corrective actions.
1ne rfll
uality monitoring of the project progress encourages t imely decision making, ensures project accountability. and
~ighQ
, ·des a robust foundation for successful completlon of the project.
ro~ .
p . through the continuous monitoring of project performance that the management has an opportunity to learn
II ,s
what is woricing well, what Is lagging behind, and what challenges are arising
abOLIt •
·ect monito ring provides records of activities and results, and signals problems to be remediedalong the way. It is
proJ
• ally descriptive in nature and does not explain why a particular problem has arisen, or why a,partfcuJarouttame
norm
hoS oecurred or failed to occur.

_ II
helps the management for the fine-tuning of the implementation activities, reorientatbi of the project
implementation by making appropriate changes in future planning .

_ without effective monitoring it is normally Impossible to judge if work is going in the right direction, whdher p,ucaess
and successcan be claimed and how further efforts can be Improved.
. .
5.2.3 ProjectMonitoring Activities

Project monitoring activities involve

o The monitoring of actual project progress as·_compared to the planned project progress and the collectionof key
progress metrics such as risks, issues, changes and dependencies

o The reporting of project status, costs and outputs and other relevant Information, at a summary level, to the
management.

• The format and tim ing of project monitoring and reporting varies ln each organization and also depends upon such
items as the size, duration, risk and complexity of the project .

Project monitoring Is carried out

• Measuring progress of project a~tles against established schedules and Indicators of~
• Id ·ty
enti ing factors affecting the progress of project actMtles
• .Measunng· th e response of the decision taken on ~he project activities and Its effect on the prc,cress of project.
irnplernentation
' Minimizi •
~g the nsks of project failure.

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5.2.4 Stops In Project Monitoring

Timlng ;md method of proJect monitoring are significant aspects of the project manageme.,t,. 1"'POnlnt
project monitoring Include the followlng.
1. Study of th e project, Its schedule, and costs.
2. Selection of the parameters to be monitored .
3. Selection of the frequency of reporting and Its format.
4. Collection of data for the parameters being monitored .
5. Analysisof the data by uslnB appropr iate monitoring techn ique .
6. Presentation of the analyzed data and reporting It to the management.
7. Review of the presented data by the management for decision making.

5.3 Project Monitoring and Controlllng Cycle

The project management monitoring and c:ontrolllng starts as soon as a project begins. Monitoringand
project wortc is the proce.ss of tracking, reviewing, and regulating the progress In order to meet the performance
It is the fourth process group In Project Management life Cycle. From the perspective of KnowledgeMa~
thi.s involves the management tasks, such as tracking, reviewing, and reporting the progress of a project. M01eowr,
process is majorty concerned with :
- Measuring the actual performance against the planned performance
- Assessing performance to determine whether or not any corrective or preventive actions are indicated,the
reported and/or appropriate risk response plans are being executed.
- Maintaining an accurate, timely Information base concerned with the project output and it!. associab:d docu
til l project completion
- Providing information to support status reporting, progress measurement and forecasti~
- Providing forecasts to update current cost and ament schedule Information
- Monitoring implementation of approved changes as they occur

Inputs
The inputs to the process of project monitoring and controlling are :
1. Project Management Plan
2. Schedule Forecasts
3. Cost Forecasts
4. Validated Changes
5. Wortc Performance Information
6. Enterprise Environmental Factors (EEF)
7 Organizational Process Assets (OPA)

Tools and Techniques

The tools and techniques for this process lndude :
1. Expert Judgement
2. Analytical Techn iques

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 ,nent(MU

Management Information Systems

1 . .
1- Meetings

oiftl'alf ·ng are the outputs of monftortng and con-,r

f0110W1 u u '"' projectwor1t:
{11ange Requests
J. pertonnanceReports
worfr.
1. ·eet Management Plan Update
proJ
J. ·eet 00 , ument Update
p,o)
...
p,tonttoringand ControlProcesses
5.3,1
,AonitorinB and Control processes indude :

•• nnorl119and ControllfngProjectWortc
1. "'o
Tlle Monitoring and Controlling Project Wortt process collects,measuresand er~ pefonnatee lnfamatlon
and assesses
measures and trends to forecast potential items requiring a>rredM acdon. This includes rrolllfo,lt•
project risks and ensuring that they are beingmanasecfaccordir11 to the project's risk plans.

t lnte9nrted Change Control

The Integrated 01ange Control process ensures that changes as a result of project comd:fwe mb1S and adlel-
controlling factors are managed aaoss the project knowfedge areas. lntqpab:d c:harwe mntrol tall!s ,-z
ttiroughout the project. from project initiationthrough project dosure .

3. 5c0pe Verification
The scope verificationprocess ensures that project deliverables are formallyaa::epted.

4. Scope Control
The Scope Controlprocess ensures that changes to project sa,pe are controlled.
I
5. Schedule Control
The Schedule Control process monitors and controls changes to the project schedule.

6. Cost Control
The Cost Control process monitors and controls msts and changes to the project budiJet.
7. Perlonnlng Qualfty Control
The quality control ·performance process measures spedffc results to detennlne whether the prqJec:t is
I
meeting q~lity standards. 1
8· Managingthe Profed Teem i

This process trades team member performance, provides feedbadt, rescwes Jssues and coo.cllutes to
maintain and improve project performance.
9. PerronnanceReporting
The Performance Reporting process coUects and ~lstributes penonnanceInformation - lndudlrw status ,eports,
reports and forecasts.
...,....,......
*P Pl 7 Ts

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 5-5

Maf1891ngStakeholdere
10. rks with stakeholders to ensure that requl
This process manages stakeholder communicationsand wo
satisfiedand Issues are proactivelyresolved.

5.4 1nfonnatlon Needs and Analysis

· be hnM> of Information required by an organ
_ An Informationneed is an unstructured statement that desal s a ~,,.-
unit to enable it to meet Its objectives and support its functions.
- Informationneeds analysl.stechnique Is used to Identifyall of the Information necessary for use In achieving
goals or objectives,such as performing an activity, satisfyingcustomer needs, or making strategic decisk>ns. ·
- The result of applying this technique Is typically a summary which shows the Information needs for each
activity, by type of usage, and by a pre-defined category. Other Information, typically included in the lrmr......
needs summary,are the business objects supported, current availability,information medium, current source
requirementssatisfaction,and the relative importance of the business actfvtty.,

Purpose
The purpose of information needs analysis technique is to identify and set priorities for the information ~--
support businessactivitiesIn order to reach established business goals.

5.4.1 Objectives
- To identifyand set prioritiesfor the information needed to support business activities and to reach the business
- To gain further insight into the business structure for subsequent improvement of the information architecture.
- To understand the implicationsof these priorities for current and planned systems, technicalfacilities, etc., as
an enterprise engineering project.
To facilitate commitment to the strategy developed to meet re_engineering or other enterprise goals and objectives.

5.4.2 Benefits
There are several benefits to utilizing the information needs analysis technique.
- It enables us to gain further insight into the business structure to support subsequent improvement of the i
architecture.
- It enables an understanding of the implications of established priorities for current and plannedsystems and t
facilities.
- It fac1itates commitment to the strategies developed to meet enterprise-wide goals and objectiYes.

5A.3 Procedures
- Identifysource material and source interviews, focus groups, or questionnaires.
- Reviewmaterials and itemize a list of information needs.
- Consolidate needs and develop an Information needs summary diagram.
- Collectadditional data, as required, to complete the Information needs summary diagram.
Determine the relative importance of each Information need .
- Confirmresults.
- Use as Input Into information architecture development or !~pact assessment.

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"' anagement
~.6 of information is a critical Process i
ortinS • n any 0rganltatl
~eP tus of the proJect. They also use It to mak on. Information Is used to let stakehofden know about
,, st3 I ·sta e good decision p I
tne ·n"oh1es mu ti ge activities. The a...1.Jtl • ro ect management reporting Is c.ompQcated and it
n, -..u.-. es that a e i .
ofte tation, financial control buslneu r In management r!portlng Include a,eneral
oeorrien ' Presentations and ·
d he information as harvestable data Which ema11 communications. The protect ma~ to
treat t d fl ed can be summarlted and Interpreted using reporting systems
·ng syste ms are e n as Processes •
~ep0rt1 or more information ma , procedures, and fad lltles that are used to generate and pt.he'- r!!pOtts
., osing one f the project nagement system. This Is also responsible for tt,e distribution of to the
holders o .
stake
anization should invest in periphe I th
'file or8 ra s at can support the collectionand distribution of informationand these
., de IT infrastructure and even shared storage envi
inc1ll ronment.
r.n efficient rep~rtlng system is crucialfor the executlor:,of project activities. The thing is that unless the a.pltt.ittk)n
., ses an appropnate reporting system, the project team and other people concerned with the project wfll not be able
11
know the complete details of the project.
t0

5.S.1 rypes of Project Management Reports

projectreporting involves·more than simply communicatingthe latest protect updates to your team and stalu!hokten.
can also use project reports to mitigate risk, monitor budgets and timellnes, and build more accurat2 project plans.
r1J
~ere are a few project reports you might find useful.: ·

n,e project Tlmellne Report

1.
_ o ne of the critical elements that define a project ls the timeline. A project by definition is a ba,.po.asy
endeavour; meaning it has a start and an end which means it has a defined timefme. The timeline should be a
visual overview of the project from start to finish.
_ One thing that sponsors care about is that the project will be deliveredby an agreed cfatta, especialt,,wt,ere
project has a mandatory delivery ?ate.

2. The Project Budget or FinancialReport

A project is constraine~ by three elements scope, schedule and cost. Therefore,a project budget is an important
report.ideally, the report will show budget verses actual costs.

3. The Project Team Contact Data

- The team members working on the project are often from various departments, companies and e¥en spread
across the world. The role of the project manager ls to bring the .group of people together to form a productive
team.
- Creating and distributing a list of team members, their roles and how to reach them is an important step in
~nsuring d ear channels of communication
4
· The Project Risk Register
- Managing project risks is often overlooked or miss undemood by project ma~ CrNting an initial Risk
Register is key to managing project risks. Start by bulldlnsa list of all the things that could lmp;Kt the project.
- Earty on in the project, there will be a lot of these . As the project progresses and things become more dNrty
defined, many of these will be addressed. It Is Important to review and update this list often throuchoutthe
~ ro]ect.
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j5 ream ava .
liability report example
ed to knoW
what resources you have available to 8tt ......
a&. I It ......
• build an accurate project plan, you ne h team member has on u,e r p a e so YOU ca,, ,,r
If you want to ·t b'llty report shows you how much work eac -'!'II
done, A team ava, a ,
--"'•rdng decisionsfor your project.
sr,,art,o;--

6. Stat1JSreport nd stakeholders Informed and manage eJCJ>eCtaUons•

A weeklY status report Is an easy way to keep your team a status report : I
projectprogresses. we recommendreviewingthese quick hits In your

(i) Work that's complete

(ii) wort that's coming up
(iii) Overallproject completionand budget spent

(iv) Action itemS

(v) Projectrisks or issues

7. Project health report

A project health report providesa high-levelsnapshot of project status. It's great for
sharing
your team and stakeholdersso everyone knows at a glance what's on schedule, what's running
on~:· eetf

n 'a
rtdrr,s
I
alreadyoverdue.

a. Risk assessment report

A risk management enables you to identify and categorize project risks based on their severity and likelih
happening. Thatway you can prioritizeissues and nip risk in ~he bud before It wrecks your project success.

9. nme tracking report

A time tradcing- report gives .you visibility into how much time your team is actually spendi"8 on project tasks so
can see how it tracks with your project estimate. This helps you spot potential budget overages ~ore they
and providesvaluableinsightfor future project estimates.

10. Baseline report

A baseline report a,mpares your original timeline with your actual project timeUneso you can learn from the
you scope out future projects.It's also handy for showinghow changes or delays affect the overall project timell

5.5.2 Project Management Reporting Best Practices

L Set a cadence: A reportingschedule establishesregular touch points so everyone knows when to expect and perhlps
even providesimportant project updates. Just be sure you keep the lines of communication open between schedad
reports.
2. Mind your : A report is only as good as the Information111 It. Check that project details current and a,rred
beforesharingreports with dlents and stakeholders.
3. Write to your audience : Olents and executive stakeholders don't need to be bogged down by nitty-grittYprajtd
details.Keep it succinctwith bullet points and avoid technical Jargon so It's a friendly read for everyone.
4. Add visuals: A pictureis worth a thousand words. Use charts and graphs when possible to make your report easvto
digest.

5. Be honest : If the project is behind schedule or over budget, don't shy away from mentioning It In your report.n,e
sooneran Issuecomes to light, the sooner It can be resolved and the more llkelyyou are to win your dlent's trUSt -.

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d•scs,ssfon: A proJect report should be
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P Ex
' &
111 pace for and discussion for conversatf
6· create s so evervone•son board WI on, not a static doc.umentthat's set In stone.
st31<eholderEngagement th the project'snext.steps.

~h the Stakeholders Is the Practi ·

fflgag• ·ect Th ce of lnteractfngWith
., fit of the proJ • e SUtcessfulcompletl of and explainingthe project stakeholdersof the CMl'all
belle on a projectalso d
hOIders play a significant role In th epends on the favourableview of the stxeholders.
stake d e success of a project
., oaf agenda an concem.sinfluence th as their requirements, expectattons perceptions
pers:fore a vital for professional project m: Project.and Impact the outcomes.Succ.essfulstakeholder~1p1115nent
ther nasement The key b eftt of
ives seekingextended support from stak h Id · en Mana1e StakeholderCnpgement .,rocess
jr,\IO e O ers for the projectssuccess
process of communicating and worfdng 'th · ·
'f}1e d b "Id . WI stakeholders to meet their needs / expectations address issues as
theY occur an u1 appropnate stakeholder engagement in ro .. ·. '
d as Management Stakehold E · P Ject activities1hroughoutthe life<yde af the project
is terme er nsasement process.
importance of StakeholderEngagen,er,t
5.6.1
, stakeholder engag~ent builds and maintains relationships with the stakeh~ld~rs.It helps tn prestr'lifll the adM!
support and commitment of the people to implement changes.
, BYunderstandi~ga stakeholder's motives and agenda It b~mes possible to influence~ change process pasitlwty
and to address issues that may be potential barriers to change.
At its most basic level, a $keholder engagement approach typicallyindudes :
(i) Stakeholderassessment. induding their interests, influenceand potentiai impacton them.
(ii) Identificationof key concerns, risks and mitigatingactions.
(fii) Outputs from stakeholder mapping used as a basis for flexiblecommunications.
(iv) Creation and monitoring of the stakeholder action plan usingstakeholder mappinginformation.

5.6.2 ActivitiesInvolvedIn StakeholderEngagementprocess are

- Ensuringcommitment of stakeholders at all stages of the project.
- Ensuringstakeholder expectations are met. The tools used O?_uld be negotiationsand communication.
- Anticipating future problems and address potentiaJ concerns throuihout the lffe.cydeof the project.

Critical Points of Managing StakeholderEngagement

- Stakeholder influences are the highest at the sta~ of the project and as the project progressesthe Influencesmntinue
to reduce
- Project sponsorsassistance to be taken by the projectma~agerwheneverrequired
1"PutsTo ManageStakeholderEngagement ·

- It indudes Stakeholder Management Plan, CommunicationsManagementPlan,Change-losand OrpniDtional Process

Assets. The communications management plan lndudes a documentation of stakeholders needs for communication
requirements.
' Tools and techniques used to Manage StakeholderEr11agementIncludee~ communicationmethodssuch as the
use of email tf pd-- thffll•oh the Intranet. war rooms, amons others. Project manaser uses
, mee ngs, process u .,~ •--
effective interpersonal skills includingactiYe llstenln& buildingtrust, resolvingconflictand overa>ml"Iresi51anceto
.•'
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Of Manage Stakeholder Engagement . ct 0ocument Updates are commo0 '0 1lbi...
outputs ment Plan Updates and ProJe . -......_
issue Logs, ChangeRequests, ProjectManage ·ntormation like : .
• processAssetsget updated with addltlonal1 . • ct updates, any issue closures, etc.
organfzationa1 . k holdersabout proJe
k holdernotification: It is Important to notifysta e d ·ssue fogs, etc are to be included,'
1. Sta e . d hb rds lessons learne , I
p,oJectreports : Project reports such as status as oa , I form as outputs . of manage sta~
2. i lly 0 r Informally a so ...,,....._
p,o'ect presentations: Presentations made orma
3. J

engagement. · t re included in project records.

eeting minutes, e ca
p,oJectrecords: It includescorrespondence,memos, m
4.
s.6.3 Ways to Engage Project Stakeholders . . ..
· . k ow who they are. As you are m1tiatin,
1. Identifystakeholdersearly : You can't engage stakeholders until you n
projects, start identifyingyour stakeholders. .
th · 1"tial ibe project meetings when you
2. Get stakeholderstalking to one another : Invite key stakeholders to e '" •
developing the projectcharter. You should try to surface and resolve conflictsas soon as possible.
.,.__._ to understand before being understood : Steven Cavey shared this principle years ago. It still holds
3.
Furthermore,people want to know that you really want to hear their perspective first.
4. Usten, really listen : Part of understanding is to find out time to sit face-to-face, when possible, and listen atte
Ask probing questions. .
s. Lead with Integrity : Meaningful engagement requires trust. Say what yo~ mean; mean what you say. And th
what you said you would do.
6. Engageyour stakeholders·in the estimates : Ask the people that will do the work for estimates. An~ help stale
to understandthat there is greater uncertainty in the early estimates. Committo providing refined estimates i1S
projectsprogress.
7. Wortc Wrth your team : The best project managers work with their stakeholders to break down the projects
deliverables and tasks. This helps everyoneto have a better understanding of the project. Furthermore, sta
will more likely support a plan that they helped create.
8. Manage expectations: Each of your stakeholdershas.expectations.Workingwith your team will clarify many of
aspects of the project.
9. Be grateful: The project managers know two simplewords-thank you. When team members and other stakeholdas-
complete activities, respond to emails and voicemails, make you aware of things you didn't know, respond will!
thanks.
10. Commu~~ Well : Ninety per~nt of _a project manager's job is communication. Develop and maintain a
commumcauo~plan. CreativeproJectmanagers minimizea potential communications breakdown by oommunfc;atq·
througha varietyof channels, not one or two. .

5.7 Team Management

- AProjectTea~ i~ an organi~edgroup of people who are involvedin performing shared/individual tasks of the projed
as well as achievingshared/individual goals and objectivesfor the purpo ·f • • ___,,,nnr
its results. se O accomplishing the project and J"""..- ..

The team consistsof the full-time and part-time human ~es ..

deliverablesand movingthe proiect to d ources supposed to collaborativelywortc on produdnsdie
' war s successfulcompletion.

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11
.

,,ess
ful projects are usually the result of
. , taref ul pf
P Ex .
'
& r.,,,.....,....,.
Sil bers. pro1ectscan t move forward Without ch annlna and the taltnt and colla._~, .
, er11 ea of Its k l UUl".-t on of :, pr01ed's tl!.lm
111 anagement Is an Integral part ·f f!V earn members.
0
rf'I "' a Project rn
,, fe:ermines the project roles required to execute the anager's role. The p,ofttt manacer ldentlfles thf? and
d~oire team members. tasks and the ~Ifs requfred to Pl!ffowm the tast, . H'! to
a • •5 not enough. to plan resources A
aiJI it , • cqu1re thern and d ..._
" ct manager needs to manage the tea e~ate tasks to them to have a sucassful pn,fect. The
" ,oje rn such that he/sh I bl ·
P ..,ember and at the same tlrne th t e s a e to extract optimumperformance from each
1ear11 '"d e earn Is motivated t o work on the project and the project obfectf¥es are
achieve .
,-ocess of managing project team d
11ie p . t· n recognlti d a dresses specific team management challenges associated wfth
" ,onir,1un1ca 10 ,d ri on an assessment of °
t earn b·'1ectlves. The project manager takes responsibilityof manap11
projectteam an ensu ng success of team management activities.
e projectmanager should use the followingInterpersonalskllls for managingproject team :
111
(ii Leadershipis a aitical skill for teambuilding and teamwork management. A high level of leadershipallows the
project manager to communicate the project vision a·nd organizethe project team to achieve high perfc:,nmnce_
Iii) 1nfluendngis aitical for- bearing Influence on project stakeholders and their decisions. The project rna11a1er
needs to develop this interpersonal skill to reach mutual ~greements with project team members and addless
critical issues.
pii) effective decision making is an ability to undertake the decision-makingprocess which entails conduaing
negotiations with stakeholders and project team for ihe purpose of studying environment factDrs, dewiopil,g
personal quality of team members, stimulating team aeativity, and managingrisb and opportunities.
'!he process of Team Management involves the use of specific project team management methods and techniques
which are listed are as follows :
L Method of communication and supervi.sionis used to track current wortc and attitudes of proiect t2am members. By
means of live conversation and observation, the project manager communicateswith team members and rftiews
their achievements in the mntext of delivefc!bles
, accomp.fishmentsand interpenonal issues.
2. Method of performance appraisals allows measuring performance of project team members to darify project team
roles and responsibilities, ~eview corutructive feedback, discover unresolved issues. ~op individual traini,w
I programs,and outline specific goals for future project activities.
3. Method of conflict management allows handling conflicts in a team environment to achieYe higher productMtyand
positive working relationships among team members. The method Is used within·the conflict managementprocess
and managed by the project manager. The followingcharacteristicsof conflictshould be consideredwhl1e perfannirc
the conflictmanagement process :
(ii Nature of mnflict : A conflict may be a team Issue or an IndividualIssue.
Iii) Opennessto conflicts.
(iii) Time : A resolution of conflict should focus on the present not the past.
The followingoutputs can be obtained from the successfulproject team manacement Pf oc:ess Implementation:
l Change requests are generated during the course of the process and submitted to the project ~t team.
Change requests allow reducing the probability or Issue occurrence and mltlpte a ~alive Impact on project
activities.The major purpose of change requests Is to ensure development of prevenuve actions to reduce team
absence, achieve appropriate role dariflcatJon,and avoid gaps In project schedulesand timellnes. , , s : : -
• a

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 Executing, Manito
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p~ Management(M member roles, responsibilities and a,:.._ '
I d changes to team - ..•Orltt~
1ect management plan updates generally Inc u e . .""". '
2. Pro f th st ff anagement plan. · ·
which all together are parts O e a m tatlons historical records, varioust@l,i-.,
d I s leamt documen , -··""ati..
project management organization assets lndu e esson ' d later In tuture projects . · ·'"""
3
• and standards. All this Information can be collected and then use

characteristics of Better Team Management

5.7.1

1• TransparentCommunication . t II stakeholders , client Information etc.-tot-..

The project manager should Inform about the project, Its ben~flts o a . ·ct re and the value of tti
members.Resources will be more committed to the tasks If they know th e bigger pl u PrbJeq
than just their tasks and task objectives.

2. Perfc,nnanceTracking .
ber He should be aware of which tasq
The project manager needs to track performance of each team mem · ._
f rf nee The team member should be ...._
done by which team member, the status and level o pe orma · '""' ·
appropriate feedback. If the resou rce Is doing well, appreclatin~ _In front of other team members boastsa,.
morale an~ inspires others to do well.
- If the team member has achieved a major breakthrough, an award or and an appreciat ion mail keepingSeita,
management informed.will also motivate the team member . Performance reports that measure the Pl'08n!lrd
team members using time, cost and quality parameters should. ~e generated regularly. This will help
performance over the course of the project.

3. Handling lncompeter_,tPerfonnance
- If any team member is not doing well, concrete details with examples should be given to him as to whJle
manager thinks he is not doing well. Other team members can be asked to assist/guide him in some tasks.•
team member can be given other tasks which he may perform properly .
- If the resource is not performing well for a long time, it may be best to release him from the project. A
meeting with project team members on their performance can be used to share co~structive feedbact.'Ille
.organization's performance appraisal process should indude the feedback from the project.
. .

4. Training

- Trainingis a useful motivational tool. Appropriate training needs must be identified for resources and ~•
per organization's criteria. Training in new skill sets, new technologies act as a canot to motivate e~ployeestD
give their best performance.

- It helps in talent management. Team members · ~ho show potertial leadership skills can be given-trainlllkl
leadership courses. Employees with high techn ical skills can be sent to technical trainings and wortcsh,opsGIi
architecture and design so that they can groomed to take on the next level challenges. ·
5. ConflictResolution

- Each individual is d!fferent and there can be issues and conflicts between team members. It~ not "~fc,
team members to be the best of frien~s but they should work towards achieving project objectives . and act as..
part of one team. Project managers should anticipate conflicts ·and disagreements beforehand and take·stePSto
avoid issues.

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1f ther ti f · rs, project manat er Uiould tat<@ to ln~ . Tfiet'ean bi!
.,. en communIca on orum with all Involved50 th I
an° P rtcs t th · at ssues can be sorted or peop4~cart reach ill midd~. p;dh w
that the team wo oge er as one unit for successfulproject comp4etfon.

proJect Communication
8
,, ~munication is a aitlcal com ·
1/,euent comr ponent of project success. In fact. according to th~ Project Man~
, £~ ·cute (PMI), most project failures are due to c:ommunlcatfon problem,. Profttt c:ommunlcatlon
1nstt that does not happen. •
ensures . .
nsistS of three processes th at help make sure the right messages are sent, re~d, and understood by the "8ht
11 cO • d d d
ople. lhe processes '" u e In this area have changed over the years, but In the current venlon , there are three
r'.rnarYproject communicationmanagement processes.
pfl
'(llese are: .
plan communications Management
1,
Manage Commu~ications
2-
Monitor Communications
3.
p1an Project Comm~nicatlons Management
5t1
llle first step is to plan how you will manage communicationson your project and acrossall of ygur stakeholders.
• . done by creating a project communicationsmanagement plan.
5 .
it's important to ensure the followingfactors are addressed in your plan :
(i) Audience : This is a list of all stakeholders affected by the project. It should indude team membe s, spoc
customers, and ·other interested parties. Consider ~ryone impacted by the project or who inffuences its
success.
(ii) Objective : Identifythe objectives of your communications. You may use some communkations far awaa e,ess.
like a status report, and others that require action, such as requiring a sponsor to aulharizespending. or a
customer to approve project testing.
(iii) Message : Decide and create message for each type of communication. This is the act1Jal content that will be
shared. Key components to be communicated indude scope, schedule, budget. objectives. risks. and deliverables..
(iv) Channel : Choose the right channel through which the message will be delivered.• WiU it be. a formal report .
emailed out? An informalverbal debrief duringa team meeting ?
- Your communicationplan should be detailed enough to lay out exactly what will be to whom, how, when. and
who is responsible. Involvingyour stakeholders in the aeation of this plan is.important. You need to their
communication preferences and expectatl<>!15•

s.a.2 Manage Project Communications

Once the plan has beena~ted and approved, It's the project manager's Job to ensure It's rnanaiged well. This means
th .
t e plan needs to be reviewed and updated on a regular basis to reflect any cha~es to the project or its mbhokle,s.
Theprojectmanager also has to managethe executionof the communicationmanagementplan. .
This indudes :·

(i) Collectionand analysisof data.

{ii) c . · ·
~ tion of messages ~or communication.
•
....,........,
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5-13
P~ Maf\11 ment (MU)
. on or distributionof communications.
(iii) rransm1ssl I ti n reports flies or documents.
(i11) Storageof any commun ca o ,
f ny stored communications.
(v) RetrieVa1o a . • • j ct closureor a set date .
. posal of any old communicationsupon pro e
.
5.8.3 MonitorProtectCommunications d t the 6th edition of the PMBOK. ~ •
, but was update n ".II
. rocess used to be called 'control rommunlcations: . trolling project communications th~
- nus Pch ge the process Is the same. It involves mon1tonngand con
title an ,
lifecycle.
This may indude : .
· Confirmingcommunicationsgo out as planned.
(i) Confirmingthey are receivedby the proper stakeholders.

n11 Confirmingmessagesare understood.

r-) Confirmingany. •
relevant feedback 1s proVI"ded t o th e appropriate project members . . _
,11 • sh uld b a part of the commumcat:Jon
_ The actual type of monitoring,including method and frequency, o e
plan.
5.8.4 How to be Successful at Project Communication Management ?
5u~I project managers use formal and ·informal commumca · ti
on methods aaoss various channels.
. This
nd
increase the chances communications are received. Using simple language, sticking to relevant topacs, a k
messagesconcisewill inaease your chances communicationswill be understood .
The followingcommunicationsskills can also increase a project manager's chances of SU~ ;_

1. Strongactive listeningskills
2. Proficientwritingskills
3. Excellentspeakingability
4. Askingquestions and probing for more information
5. Settingand managing expectations
6. Motivatingpeople to become and stay engaged
7. Conflictresolution skills
8. The abilityto summarize and recap what you have heard

5.8.5 Key Components to an Effective Protect Management Communication Plan

1. Develop the purpose : This is your team's mission statement, the •why" behind evef;fthing you are doing on
project.
2. Set the goals : Once you have the purpose In place, you can realistically set your goals for the project. What are.die
primaryindicators of success?
3. Dete~ine the key players : Which team members a·nd stakeholders need to be involved and to what extent? WhD
should be at all the meetings, a~d who should only be Involved from an approval standpoint? Does
understand their roles?
4• Discusstask dependendes: Make sure to look for potential roadblocks and risks along the way. On top of that. ead\

...,..,,,....,
team member should know what needs to be done before they get started on their task. __.-:-
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 ,cal s J you say you
i,c nicat1on In pro ect management-don'tov are going to deliver. And remember th
r11rfltl erprom1se1 • e cardinal rute of
, ,o hef1 r,eeded : Just like most things I llf
,Adl"st : ith your team to adjust on the fly ....Ln e, a project ProbablyWon't go like you pla
,,est ... ""'" needed .
11_
n. DIC
n-,
c,uu e enough and
..,rflunlcallon Methoc:ta
CO••·
9.6
~- he organlzatlonaland geosraphlcal div
Given 1' 10n Today's enhanced technoloav all erslty of project teams - It Is Importantto consfder all methods of
1111
jc,J • DF OWs us to co I
r11 • ation strategy should be con~lved at th mmun cate easily whereverthe team members may •e. A
1,o111r1111ri 1
' e project plannlnsstages, so key Is Its Influenceon the sucuss or the
·&·
f' ,,1cat1onmethods can either be active or n.••tv .
~u
Co Ecommunicationmethodsbeing th ·
~CflV ose used to communicateIn the here and now, fOf examplethe use of:
face to Face meetings
_ Video conference, meeting - one on one, or group
Telephone conference, or voice only web conference
_ Webinars, becominglnaeaslngty popularfor the deliveryof presentation based activities
Telephone-good old fashioned call
stand up presentations In person
i pASSIVE communicationmethodswould be those which recipientscan adopt in their own time, for example:
Pod cast
_ Web cast
_ fmail
Intranet bulletinboards
Biogs
Website
- Project newsletter-paper based
- Table top presentation
Always ensure that a ml~ of actJve and passive methods of communicatio~Is used to complimenteach other. This
should be considered as part of the overallproject managementcommunicationstrategy.

ProjectMeeting
· Project meetings refer to an effective method to distribute information and communicate wi~ the team and
stakeholders.
• AProject Meetingis a resular event that Involves everyone, who shares or Is interested in the project. in
communicating with other participantsand stakeholdersby discussingIssues, makingproposals.approvingor rejecting
offers, for the purpose of generating group dedslons that contribute to quicker project delivery, accordinato the
Planned goalsand expected results.

ProJect l'lleetlngare held In many ways such u

l R .
'&IllarTeam Meetlno are the most frequent meetingsthat can be organizedand conductedmany times durfng'the

~
~rse of the project implementation process. Regular(dally, weekly, monthly) meetingsare scheduled and itemized
therr......
~m unfcation management plan. •
·
' . .w, • -
7 0
r•••tc•lf••s

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 p~ Executing, Monito~ l
&15
-""" MaoO (MU) and intended for reviewing change reqllht...
P11J1V:: • trol board · i with
_. Mfftlnc.sare organizedby a change con d and communicat ng stakehna... ...l\,,
°'31111! eonuvo h ges occ0rre -~ L.
2- keS decisions about approvln8 all the c an ·~
t,oard rna
tion ond follow-up actions. d analyze information on current Pro.....
1ntorma exchangean . -w~
Review Meettr,c.sare organizedon a regularbasis to ect manager distributes performance rei>orts
3. statUS • ,. the pro} II&..
the project and its performance. During such a meetinD' In vtsibllitv into current performance levets inct ,
rtidpant:s to allow the team and stakeholders t 0 ga ·'
the pa rf nee reviews.
progress.Statusreview meetingsare also known as pe orma

5·9•1 Planning ProlectMeetings .

ct meetings on a regular basis. Project l"l'leM.
As a Project managerone must be ready to plan and conduct pro}e be' ng solved in the right way . -~
- I d and problemsare • .
help to make sure that the project is progressing as P anne .
t organize the meetings and what es.wn.w..·
_ The following project meeting planningsteps help understand how O ·--- .. .._..~

required to make your effort more effective. · .

, d etlng objectlves, the meeting is doomect._
(i) Set Objectives: This step assumes that If you don t set ear me . 1oUfal
because it gives no results, and no solution will be generated. Before deciding on scheduhng a IT1eetin('-,
make sure you have set a series of SMART objectives.SMART means Specific,Measurable, Achievable,
andlimely.
(ii) Write a Meeting Agenda : Developing and followingan agenda allows you to make the project meeting slaant,
yet more effective. You get more chances to finish the meeting with expected results and in a timely manner.
(ffi) Keep Documents Organized: You need to make the meeting documents as short as possible. Wrth the -~
paperto hold the meeting.you are likelyto fail because they can de-motivate and mislead your team and ~a
mess. It is better to keep 1 or 2 sheets of paper to maintain the meeting. ·
[IV) Invitethe Right People : Membe~ of the project team are obviouslythe major attendees of project ffla""31 z
meeting.However,from time to time meetingsalso require some seniors.
(v) Create an Appropriate and Comfortable Physical Environment : Project meeting should be conductalaa
comfortableand well-ventilatedroom, especiallyif it's summer time. Give your participants ice cold wab!r.11s,
coffee or/and some non-alcoholicbeverages that make your listeners feel more ~mfortable .
(¥11 Start a~ Ftnishthe Meetingon Time : People do not like if an event goes out of schedule, and pro~ lhmis
no.any~tungmore frustratingthan late meetings. You should make sure every attendee is aware of the startand
finish time. ·

5.9.2 Types of Meetings

L ~dcoff: It presents the project goals, Introduce the participants, and decide ~n certain logistical uestior the-ti
time a team gets together, the project spansor usuallyspeaks to them and generates e~th • . q 1S;
2. Pia ni It d • us1asm.
n ng : evelopsthe project plan; assign rol d . .
carriedout. es an responslb1llties;~ake decisions about how the projectwl be

3. Walk-through : !t is conducted to read through th

problemsand ·darify information. e project plan ao d/ 0 r significant documentation to

4. ProblemSolving: The aim here Is to solve problems tha .

generate alternativesolutions. t require severalmembers of the team and/or

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 801en1 MU
·ee:! ~an8 &-18 p , 1
11 prOl done to provide aftlcal lnformat1 ·
' " k,;ef : It is provalfor next steps h on to hlsher fewts of man~nt . tow, on ~. r~ oftf. bl~
oe"dllle,. seek ap w ere approprtate.
.
,rie . It Is conducted to make a form I
s .r,r.Jt1ons· a l)N!Sentatfonto managers,stalrehofden, and others abOllt th '! te"fJfts
p,esc d of the project.
,. 11ee"
~rt stor1e : This m~ ting Is called to conduct formal reviews of pr~s aplnst pfan at crttkat points in die
r,4il:ct plan when important interim steps are completed; present Interimresults.
1· pro)
gfng a Project Meeting
118
g ~a
9
S- · . 0 rtant for the team to get together perfodlcallyto make dedsfons. You may fxffft.lt@meetings that lmofill!
11
iS irflP
do not report to you or who have higher positionsIn the company than you do. They may want to take aw:I'
110
..aP,e "'. s. Establish clear procedures at the begi,nnlng. Let peopfe know that although you wm be chalr1ngthe meed ogs,
,.. etin8 •
tfitflle n,aking the deasions. Your role Is to help the group make good decisions.
will be •
~1 these simple guidelines to keep meetings on track :
.
vse ,echnologyto facilitate your meetings.
eetin.gs in detail : Ask the team members for Items or objectives.
planrTI
J. bl·sh the purpose and objectives : Every meeting needs a purpose, something to be accomplished.Ot,tec%i11e.we
(St3 I • •
> _;J;c results that prOV1de measures for success.
spe""
rtUlate the agenda in advance : Includeany Information that needs to be reviewed ahead of time for' clsaasdon and
' a . ·on making. Construct the agenda and times
deas1 .
to achieve the desired objectives.
.
. k to the agenda :· Reviewthe meeting purpose and objectives. Follow the times you have assqp,ed..ff it loob B if
'~c .
an item will require additional discussion,ask the group if they want to extend thP disa,ssion and which aseslda item
should receive less time.
6. AsSign roles : Most meetings need someone to facilitate the meetin& someone to doalrnfflt the ,r.eetftc lllftd/or
write on the flip chart, and someone to monitor time. ·

7_ Start and end on time : If someone is fate for a meetin& begin without him or her. Don't punish the wfto mme
on time.
l Record brainstorming Items or other Important information on a flip mart to keep ideas In front of peopie and ID
stimulate discussion. Transaibe these notes as part o! the minutes ~s necessary.

.
. tum : This helps keep the disaJssions orderfy and ensures that weryooe•s Ideas ill'e
!. Ask each person to speak fn
heard.
lO. Keep the gr~up focused on the purpose, objectives,and agenda.
IL Recap the meeting : At the end of the meetin& review the decisions,accomplishments.and action plan ID make s..-e
every decisionwill be carried out by a particularperson within a particulartlmeframe.
l2. Provide meetingdocumentation to participantsas soon as possibleafter the meettn,.
Meeung Documentation
d Taking the minutes at the meetings of the project team often falls to the administrativepn,fesskJnal
R~nta tion should-be brief and to the point. In most cases there Is no need to keep details of all of the d1samions..
tord the d ..
actM . eos,ons that the group makes and an action plan of what will be done by whom, aod when and how these
tieswin b ,
in111 d. e measured. If the group generates a 11st of Ideas, record them for future reference. Om.date the document
e lately Ad . .
new tasks to_t~e master plan.
. . .,. in t I~
,011011.!.

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 5-
17
Project Executing, Mon"°ey\ '
j' Project Management(MU) ,._
ng 0ynamlcs ti •
Meeti predictable. Try to an opate these inttr....&.._
th
Meetings indude many complex Interactions. Some of em are or meeting dynamics. Some of these~,
with them as they occur. These are often referred to as team, group are,..,,._•
d I .
to the taste and some to the personalities.

s.10 The Earned Value Method

ch I ues used in Project Management to ....___
_ Earned Value Analysis (EVA) Is one of the key tools and te n q of th proJ·ect based . ..... a.
understanding of how the project Is progressing. EVA monItors
the progress e · on its t!arN....
--.,~
""

money. Both,schedule and cost are calculatedon the basis of EVA.

. h I lied Earned Value. In this technlno..
_ Projectcontrol takes place against the cost baseline using a tee n que ca , __, ""'-
. ks and several more variables are cai....1........
variablesare determined from actual progre.ss on the proJect tas , ·-~ "-'
them, and reported.

5.10.1 Features of EVA

1. EarnedValue Analysisis an objective method to measure project performance in terms of scope, time and cost.
2. EVA metricsare used to measure project health and project performance.
3. EarnedValue Analysisis a quantitative technique for assessing progress as the software project team rno,,es
the wont tasks, allocated to the ProjectSchedule.
4. EVA providesa common value scale for every project task.
s. Total hours to complete the project are estimated and every task is given an Earned Value, based on its
completion(%} of the total.
6. EarnedValue is a measure of 'Progress' to assess 'Percentage of Completeness'

5.10.2 Need for EVA

- EVA providesdifferent measures of progress for different types of tasks. It is the single way for measuring tw1flliac
in a project.

- Providesan 'Ear1y Warning'signalfor prompt corrective action. The types of signalscan be the following:
(i) Bad news : Holding on to the bad news does not help. The project manager needs to take an immediate acliil.
(ii) Still time to recover : In case, the project is not going as per schedule and may get delayed, the situadala
needed to be taken care of by finding out _the reason.sthat are causing delay and taking the requiredcomdllt
action.
(iii) Providestimely request for additional funds. Whilethere is time to recover, the need for additional rm,rG!Sci
funds can be escalated with an early warning.
o It allows'rolling up' the progress of many tasks Into an overall project status.
o It provideswith a uniform unit of measure (dollarsor work-hours}for the progress.

5.10.2 (a) Inputs

There are three inputs to the Earned Value method. Each of these variables must be obtained from each task's_
progress:
1. Planned Value (PV) is the planned expenditure of funds to the date of analysis, taken from the project $chedUle-
example,if a task is antldpated to last from January 1 to January 10 and today is January s, PV = SQ% of taSkt,udglt

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 ns ement
5-18 p Ex &
l f' 111e (EV) is the actual Pn>gressof the taslc t th@
,,,edva d/ or resources exs>@nded d o date of anafys!j. Thk ts as the ptmll!nf "'O! of tfli!!
€-' {fort an ' an could be measured In Its compfeted ( oU
1 umber of holes dug), or hours of labor d
J, 10ta e un wch " num~ en<'- pon:;
\/ell or n k budget. expen ed. For example, If the same task abtJYe Is """ ~.
dfl o% 0ftaS
('I' 4 th
, .ii cost (AC) is e actual expenditure of funds to the date of anafysls. Thfs Is usuaffy tracbd via softwa,e or
~cf" with receipts, etc.
;. ,.,allY
tfla11
catculatfons
)
10.Z (b •
,. e calculations are relatiVelysimple. In order to report on project pros,ess, ther~ are four nr~ wtridw tel the
ff1 ger about the health of the project.
tT1a11a
?,oj& I/ rlance : The amount that the project fs above or belowbud- at the pofnt of anahsis. ·
~ a - '
CV = EV-AC
pertorrnance Index : The amount that the project Is above or befow budget, retathe to the O¥eral sin! of the
cost .
project- _
cPl = EV/AC
, ..1, dule variance: The amount that the project is ahead or behind schedule at the point of analysis.
~ ,.,,,e . .
SV = EV-PV
,..1,edule Performance Index: The amount that the project is ahead or behind schedule ,elatiweto the o,en/1 al
r,l )U '
the project.
SPI = EV/PV

5_10.2(c) Analysis
calculations give the followingmeaning ·
_ Apositive CV means theproject is under budget (positive= good). Negative means averbudget. The CPf Ids JOU how
much above or below the budget -it is, in percentage terms, for example, CPI = US the project is 255 below
budget.

• Apositive SV means the project is ahead of schedule (again, positive = good) . Negative means behind schedule. The
SPI tells you how much ahead or behind schedule t!Je project is, in percentage teffl1S, for~ 5PI = 0.9 meansthe
projectis 10% behind schedule.

s.1O.2 (d) Forecasting

The variables tell you where the project Is right now or at the point of analysis. This Is~ useful for decision
ling. The following three metrics tell where the project was trending.
1 .
Estimate at Completfon (EAC) : This fs the estimated final cost of the project. There are~ ways to calculatetNs.
based on the assumptions that are made.
- If Past project performance is expected to continue :
RAC = BAC/CPI
- If
Past project performance is consldered one-ti~, and future performance will to the~ rate :

= AC+BAC-EV

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 Pro
5-19
h future performance (the previous fo
If the cost and schedule performance both factor Into t e "1'1~ ""'9
the cost performance) : ',

EAC = AC+ ((BAC- EV)l(CPI x SPI)]

- When something unexpected has arisen and you need to
th ow out the original estimate and
r Prod""1
one. In this case, start with the AC already spent : 1'
EAC = AC+ New Bottom Up ETC .
th
2. Estimate to Complete (ETC) : This represents the amount left to spend to complete e project. It's the"
money that needs to be •in the bank" to complete the project . Ill

ETC = EAC-AC
3. To Complete PerformanceIndex {TCPI) : This value tells you how efficient you need to be to complete the
according to the original plan. For example, If you were inefficient at. CPI = 0.9 thro~g~out the first ~rter
project. a TCPI = 1.03 means you have to pick it up and be 3% more effiae~t than the onginal plan to _finish on~

- In order to fin ish on the original budget :

TCPI = (BAC - EV)/(BAC-AC)

- In order to fin ish on the revised budget if current project performance continues :

TCPI = (BAC-EV)/(EAC-AC)
- These forecasts could be used to update financial metrics such as Net Present Value (NPV), paybackPl!l1lit."°
Return on Investment (ROI) whi ch were used to justify the project .

5.11 Milestone in Project Management

- A project lasts for a fixed period of time which could be a few weeks to several years. In some cases, for~
construction projects or publi c works, they are run for decades. To track progress along the way and e~1helly
deliverables are being achieved according to the timeline, project managers use Milestones :

- A Milestone in a project signifies a change or stage in development. Milestones are powerful components in .._
management because they show key events and map forward movement as per your project plan .

- M ilestones act a.s signposts throughout the proj ect life cycle ensuring that the project stay on track. Withoutpnta
milestone tradting, you are just monitoring tasks and not necessarily following the right path in your project:

- Milestones can do more than just showing progress. They can help you communicate about what's happenlnc11111
your project.

5.11.1 Usage of Project Milestones

Milestones in project management are used to mark :

(i) The start of significant phases of work

(Ji) The end of significant phases of work

(iii) Deadlines

(iv) When an important decision is being made

(v) Other fixed points in time that need calling out specifically

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 11 0,nont MU &-20
,,cl ~1111 t
vo Measuremen of the ProjectProgrea,
f ((cC 11
~.ff .i r 1110 11,os-t Important aspects of• project rm~er's Jolt Is meuurtn 1 Pf<>sreHon ~ach t.Mk. Hf!f'e m Jtnt a ,.,,,
0
1Jr11· of trncklng ,project p~ss ns a project manalJ"·
,t1,W·
111.1r proJeet Outllne .
r ~ 10 II
1
, ere "'Ith team members to createa project outlinecan be a snat way of tracklntrproJw protlf~ . Each~~
w()' kl"~ 111 c;in give Input for settln1 up reallstlcproject pis and fHm what's e~ted of them lndt.fdualfy a,,d 8
I 1t1r IC;i
0
fJ 8 roup.
irl o
P· ush Goals and Mllutonea
1::s1t1b
1. . ., progress can look very different from person to person and J>f'OJect to project . The more familiar a pn,tect
,1sunnu
~1c• Is with each employee's skllls and llmltattons, the better sense he or she wtll have of how to tM>ld them
nJ&C( ___.
111•1 blc. setti ng up tailored goals and mllestones wtth each member of the team also goes a 101'11 ...., h,..,,,.u
_,.,,11(113
~ l' - ' n.
satisfact ,o
tr~rTl
k In Regularly
c11ee
i k the progress of a project, regular check In Is Important Havinga quick, Informal chat at the begfnnfn& of each
ro 1rac _...__. _.a
ssion can establish trust between project managers and workers and hefp worten feel cared --~ .--
\\,ark se
ed In. communication Is always key to make sure a project runs smoothly.
k '

l i\Sk HOW You Can,Help

niere are manv ways a project manager can help workers feel less stressed or ovenwhefmedby tides. For erample,
suggesting tools that are avallable to help workers with their organization skillsis alwaysa ,reat

5. Establish Clear Deadllnea

about deadlinescan help woricers
Keeping the end goal In sight Is always helpful for measuring progress. Being dear
s1ayon trade and complete tasks without getting overly stressed or overwhelmed. T~ project p10Bfessbea>mes
far easier once everyone knows what the project tlmellne Is. Some project ma~ pref1!r to WOtlt wfth one flnal
deadline, while others like~ establish a deadline per milestone or goal.

lon of Project MIiestones

S.11.3 Effective utillzat_
I
Allhough milestones can be useful In keeping a project on track and keeplna employeesmotfv.lted, project manaprs
111Ust know how to use them to m~ke sure they are effective. Here are some thlnp to keep In mlnd when (m~ns

llll1estonesin your project planning.

1. frequency : As milestones can work as a motfvatlonal technique, project manace,s haw the tendency to owntse
them. This frequency of use can make meeting milestones seem more commonplace and an actually a&R worters
10
become less motivat~ overall. Therefore, be sure to llmlt milestones to goals that can be consfdettd Juncuo,15 on a
critical path and Important deliverables.

2. Timing : While it Is Important not to present milestones too frequently, It Is also Important not tu SPiCe them too ~r
apart• Th"rs will cause your staff 'to lose momentum and motivation. Ideally, try to space milestones so they l.iind
approximatelytwo weeks from each other.
l, Virs,"bility. p
d . sure that their team Is aware of each milestone by dlstributfns the necess.1,y
• roJect mana1ers should be
etarls to h ·
~ac team member and keep them displayedprominentlyIn the workplace.

• ,-=er : .-
.... , •...1.

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 ent (MU the 1mportan Id be held as to why this
p~ ,Aana em our team must realize dlSCllssionshoU
. • Everv memberof Y Its due date, a
4. ~bllitY. ble to meet a milestoneby f wre t with success. In fact, it's a IOOd
your te
am Is una d ctMlY In the u
d e to Increasepro u
·
milestoneca
n be me d r #-1
et and may en up n •e11lure. 'lk: :t_·
wt,atcan be on d that not everY •ffi ult to me "'Ill'~
. rtant to understan be more d1 c f in the (utUre.
falllbllltY: It Is ,mpo te milestones which maY methlngto aim or ,
s. project managers to::nee for workersand giVe them so
providea learningexpe nts dates decisions, and ... ,
lf'CI ManagementMIiestoneexampIes k by calling out major eve ' , •
f'l'O . nes make It easter to keep projects on ;; include in your plan:
Mrl~ m les of projectmilestonesyou m
Hereare a tew e.xa p
_ Sta
rt and end dates for projectphases

Key delivertes
- Qient and stakeholderapprovals
t meetingsand presentations
- lmportan timeline
Kev dates or outagesthat may impactyour

5.11.4 Benefitsof Project Milestones

1• Monitordeadlines . ""'- best way to make them ~k

. a list of deadlines. me . Ice the
- No plan is ever complete ~out d deliverablestechnique.· It is. benefiaal to ma
to use the project managementmilestonesan .
projectmilestones. . lled out a diamond in project plans.
M"1lestonesare great for this purpose becausethey are ca resent the a---;
- • •ect milestone, be sure to P m--.•
While you should list the tasks and effort leading up to a proJ. of the deliverable. .
the end of those tasksto signifya delivery,or even a presentation ,

2. SpotlightImportantdates .
It's importantto keep all of the importantevents in mind when you are planning a proj~ because they a>Uld AGlffr

impact your projectschedule. ·

3. Identify potential project bottlenecks .
_ Many projectsrely on the work produced by external teams or partners to make forward If you,arelllt
trackingthose externalfactorssomewhere,there's a great chance you will forget to follow-up on it.
- That's why it's importa~tto list these deliverables as project milestones if you are working on a project111a,
dependson someoneor somethingoutside of your project.

5.12 Change Request

- ·A change request is a proposalto alter a product or system, often brought up by the dlent or another team ,nembef.
Duringa project,this can happen when a client wants to change or alter the agreed upon deliverables.
- Duringa project,a change request can often be met with dread. But the fact Is, they are a reality in the businesswortcf
and often, change requests are submitted for legitimate reasons. In our constantly changing business envm,nrnent.ll
Is impossiblefor anyoneto reallyknow exactfywhat they will need to achieve their objectives at the ~rt of a proJed,
- So the best way to handle change Is by managingit rather than avoiding it. Although teams should resistun~ecessaiY

..... ...
chang_es,_It is important to stay open to new opportunities that could bring more value to the projed and
organization.

,...........

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 r .,ans 8 ment MU .
'°' eet IY' 5-22
l_ P quests can also be lnltfated lntem ltv P. Exeo - & ·
ge re a as Well and
cJ1il,, I there are two types of change requesu, th an Includethlnp lftte ~"I or upgra~ softw:I~ rn
, ,,era , . • ose that are fnsld •L ~-
ge roject- • me scope and ttio-;e out!lde tfre
pt,CP
o equests that are Inside the senna
,,ge r -,..._ 1nvolve small cotrectJ
Cl1 3
1j,npact on the budget or the rest of th ons to an existing rrqufrefflfflt. n,ey lffl...,,.,h.ne
, rr1if'l11•11aonslderable amount of time to lrnpf e team. On the other hand, change requ~t:s th~ are outside ttM! SCop!!
,a~e" c h Id I b ement and ~ave a more sizeableImpact on the budgt?t.
e requestss ou a so e dearty documented1
cr,ar1g
d parties know what the ch n Writingcontainingall the Important details. It Is fmporfitnt that
, all 111volve ange entailsand what Is expect@d of them.
ies for typical change requestsare.
~ilrtiP •
r.,,odifying the project processes
0
r.,,odifyingproject plans and (usuallyextending)deadllnes
..
0
Modifying project manag~mentmethodsthat aim at reducingproject costs or lnaeaslng or reducinltfM! prof«t
0
scope
a customer wants to make alterations to project deliverablesthey should submit their chlnge request to the pro;ect
11
' rflanagerand work together on a new or adjustedproject order.

~ _1 5teps for Managing Change Request

12
Achange request will often come up throughout the course of most projects so it is a good idea to a ptan io
handlethem ahead of time. Often, change requestsare necessaryand can offer many benefits. Manaifngthis process in an
effectiveway can allow for greater internal communication,efficiency,and alignment with owera,rbusinesspis.
Here are five tips on effectively managingchangerequests: ;
l

1. Requestfor supportingmaterials
_ The person who is making the change must be as specificas possible.Ask that pe,scn to put bis~ in wrftin1
and provide any supporting materials that might be helpful. ·
l
I
•
I

- Have that person articulate his request for the change and the antidpated benefit of the m..,.erequest is. This
will help your team determine whether or not the changerequestis worth the t!ffort..
!
2. Determinewhether the change requestIs In Insideor outsidethe scope
t
Il
- chooses tD implement this
It is a good idea to consider what the scope of the change request Is. ff your tNffl I
change, what new requirements will thl.s put on the project? You should consider~ aspecU of the pn:Jjectthat
will be impacted by implemenUngthis change request.
,J
- If the reque~t is outside of the scope, a lot of problemsmight end up popping up such as acing CM!f'-budpt«
I
having to waste too much time on the project.
l
3· Assessthe priority of the changerequest
I
- Before your team Implements any changes to the project you should considerMY pcmlbie risks. What Is the
expected benefit of the charigebeingproposed?Is this change requestthe result of an Ktua1 need to respondto
a change in the martcetplaceor would It simplybe nice to have1
- You can consid~r the opinion of the person who proposed the change request. but at the same time, use
common sense. The dient might not know what's In their own best Interests.Have dNlfy defined auidelmesfor
~ uating the urgency as there may be varyingopinionsamongstteam members.
T ti S V
• ,,auc•tt•••

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 5-23

P _._. the change ~uest d understand the impact it will have on the~
4.
1'1'P'°"9Of •~·knoW hoW Importantthe change request Is an
_ NO'# that you . rejectthe request. oval process• General\v,a~
am can e,thef awrove or bout the appr l'tai...
the te will have differentways of going a within the team. Whereas a change r~
Differentorganizations be apPfOVed I ~'tt
·11 .....,ulre minima\ additional worlt can \re eiecutiVeapprova .
that "" •~-. 1work mav requ
would req1.11rea month's worth of addiUona

Decideon a course of action goingforward ·11 need to be updated. Th\s can lnductt._
5. ro}ect deliverablesw1
th . --
If the change request is approvedthen e p ·rements documents.
d nts and the requ, .
and schedules,businessprocess ocume ' can communicate the new course of 111
theSe updates have been made, the project managerh cessarv tasks to the people in C-.
- Once delegate t e ne · CII
everyone who will be impacted. Now you can .
implementingthese new changes.

s.12.2 Ttps for Evaluating Change Requests

bout how change requests are evaluated.its._
.
- The project change management plan should i~dude info~atio::ed so that time is not wasted reaching CXH,se...,
that the criteria for this evaluationbe determined before its ne efits. .
Settingthese parameterswmhelp balancechangewith overallbusinessgoalsand ben .
Here are some typicalquestionsto considerwhen evaluatinga chan.gerequest :
Does this change add to or alter the business requirements?
0 • .,
Is there a wtrt-around,or is this changenecessaryfor the overallsuccessof the project.
0

0
Does this changerequire an inaease in funding?

0 Wal this delaythe projectend date?

0
Even though this changemay have a negativeImpact on this pro~ect,does it result in significantbusiness·upsides
that make itwonhwhile?

0
Does enacting this change now make more sense than delaying it? Will the delay end up costing the. CDffllalt
more money In the end?
o Have all the affectedstakeholders been considered, and do they endorse the change?
o Are there contractual ramificationsto consider? For example, will commitments with outside be
unfutfilled becauseof this change?
- The answerto these questionswill hetp approveor rejectthe change request with complete certainty.

5.13 Scope Creep

- Scope aeep Is a situatlonwhen a project stretches far beyond iu originalvision and deadline. Scope ~p is one ti
the biggest causes of project failure. It usually starts with a small change request, iust a minor readjust;mentof die
projectscopewhich ls followedby one more request then another and another.
- Beforeyou know the small change turns the prolect into a different shape altogether. Instead of five delivefableS.you
now have 15. But the budget and the deadline are the same.
- So, SC0pe creep refersto small, continuousrequests that stretch the project beyond its originallydefined scape.Sint!
these change requestsare often small, they tend to "aeep• up on the scope. Hence the term usedis •scopetree(_:-.
..
•wJd - ·., ....
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scanne d w,
r
·eC! M80898 ment (MU)
5-24
. 5
~es of Scope Creep

6,13· \lil1S a clear scope: Claritv.1s extt@mefylmporum

rJOt r,a it can cause big problemsdown th on any Pf~t. If you don't d~rtv def'n11! VOtJf scope at the
1, ·nnlng, e 11ne.
> be8'
•.ir,g client agreement : If the dfent 1... ,t ~-L..
..., Into the se:ope ,._~
N°' i,a•·bles later on. wvugrn
, ,,..,.,. lW't! hlr4!1y ta thffl' mind and tt\t!.
l· delivfra
111volvingthe dlent throuahc,ut: Gone are the days where do
Not this period to your dlent for fe V'OU a motlth or two of wmt and thl!nsr..ndttw! final
estJlts of . . . edbad(.This results In surpt1~. with flnalfzedwon h~"I to b!! ~. and
r the proJectt1mehneand budaet.
if1'lpactS
. ·ng issues proactlvely : Hiding behl d I
rJot ra1s1 n ssues and not being transparent with' me dtent' or ~ .
,. . at first, but you will come to rearet It later on
easier . •
aA needing more time ~an estimated : The age-old Issue of Quality Assurance estimation RM!S' trouble:. How
ctJrately you estimate how many bugs will be raised, long they will take to fix always has an lmpatt.
ac
Not prioritizingamon~ features : In a Waterfall-styleproject, your product wtll likely be built until
i, tJ reach the whole, shiny, new thing. This could lead to thinking everythingIs a priority . If you don't•ha@' dea,-
yo
pri
·orities among
.
features, it's hard to understand what can be removed when adjustments to requi1eme11ts to

surface.
Not agreeingon how to handiechange : If you haven't agreed on how to handle change at the tJea1minfof~ profect.
J. it only makes sense that it's going to be difficultto work through changes in scope at a later date.

s. poor Estimation: Estimationis very difficultto get right. It's a challengeto be actUrate at the beginninaof a proied.
when there are many unknowns.Certain things may not get accounted for, and you end up tied to this ema·sr:ope to
be able to deliveryour overall project.
. '

9. Not evaluatingnew requests: It's easy to take on new requests or ideas from clientsor team members.befieW11that
they are the right path forward. If you don't evaluate these requests propertyyou could end up ~tir• new sms-.
duplicating work or buildingunnecessary features without noticing.
10. Not involvingusers early enough : Many projects go to the final stages before actuallyputting it in front of r&I users.
It's tempting to fool ou~elves thinking~at we know the users well enough to avoid interacting with them. If you are
not incorporatinguser feedback early on, you can go far down a route that doesn't test well with users. At that pctnt.
your scope can suddenly spiral.

5.13.2 Ways to ManageScope Creep

1. Be proactive. Determine and agree upon a change manaaement process upfront.

2· Prioritize. Look at what can be descoped to accom~odate new requests.

3. Be transparent. As soon as scope aeep appears, brfn1 It up with clientsand mkeholders.

4
· Analyze impacts.Work out the Impacts(_ both positiveand nesatlve)of chances.and present solutionsto yow clent or
stakeholder in order to move fo~rd.

s. Ernbrace it Work out what's necessary for a testable, usable product-If that muns chanalncscope. look.atways to
incor
Poratethe changes.
I •

. .
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 projec! Executing, Monilortno&
5-25
!. pro~ Management (MU)

steps to avoid Scope Creep VS comes around. Careful control Of

5.13.3 .d scope creep aIwa Ptna...._
how thoroughlyyour project Is planne , . . , -..q
No matter k the proiect.
h uld start before the beginningof actualwor on to usurp your project.
scope s o , allowscope creeP
1-4 re's a checkllst of scope control steps that won t ·t ven before you start working on the
e I • vou should do , e
all stakeholdersand understandtheir goa s · . dvance is a necessary step of project~ -
1. Idenm,
11 lved parties 1n a
d ffyingvisions Interests and requirementsof al nvo J ct work and helps avoid conflictstau
I hen , It reduces'the risk of scope changes In the middle of your pro e S@d brr
p ase. .
unaccountedInterests. of th planning phase that needs dose attention.~
2. C1eartv define project scope : It is another indispensablestep bet also to list what Is not included. This min~
important not only to define what ls lnduded In the project scope u st· s and requirements
f quests sugge ,on , .
the risk of misunderstandingand reducesthe number o new re , . .
d revented and thus modificationsare i~
Plan room for changesin advance: Not all risks can be foreseen an p , efi ed d do .·-·-...
3. d res should be clearly d n an curnented ..
at times. That's why change control and management proce u • , - ..
. k our change management process tS focused
room for possible amendments needs to be provided. Ma e sure Y . . Gil
· k" d 'sion on a project scope modification.
projectgoals, and carefullydocument.steps requiredfor ma mg a ec,
4. Take action as early as possible : Identifyand address possible scope creep at its early stages. New suggestionsfni.
dients or sponsors, updated requirements, or feedback from the team on time estl_mate changes need to be head.
doOJmented,and communicatedto involved parties for consideration.The sooner you make decision on a
the les.s hannfuleffect it will have on the projectcourseand result.
s. Know when to say no : It's temptingto implementall suggestedfeatures and functions, but it's rarely good for prateEt
delivery time, budget, and the product itself. Saying no to unreasonablytime-consumingan~ expensive features and 1

parts of work is crucial for delivering a quality producton time. Make sure you have a justificationfor sayingno.

5.14 Project Audit

- Project Audit is a project evaluationtechnique designedto determine ,he true status of work performed on a proied
and its conformancewith the projectstatement of work, includihgschedule and budget constraints.
- It is an Independent and structured assessment of the state of affairs conducted by a competent examiner.8f
inference or extrapolation,it providesinsightinto the work needed to meet project objectives and the adequacyofthe
scheduleand budgetto do so. In addition,it can illuminatemistakes that can cause project failure and thus can trfaer
timely correctiveaction.
- A project audit is a project of its own, and as such, no one ·site fits all. It takes an experienced and knowl~
projectmanagerto conductan audit from beginning to end, and to adapt it accordingto the environment.

5.14.1 Benefit of Project Audits

Project audits can help identifywhen a project is about to go off-course.In addition, a ~roject audit can providethe
followingbenefits:
1· Improveproject performance.
2· Increasecustomerand stakeholder sati~actlon.

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r
gement(MU)
!J
__.=s.:;:2e~---~~~=~~~~~~~~L
~sri~s~~===::;;;;;==----.._ Prt>tectex:,, Moo.'toc',og & Coutrtlllng
YS"' '°"':
1sco
p••e and avoid scope creep.
r co,,t'0 rlY problem diagnostics.
·deea
J. p,ov1 rforrnance/cost/schedule
relationships.
·r; pe
oafl -ff {l.lture opportunities ~r Improvement.
1oe11t1 ""rtorrnanceof the project team.
1· 111ater
Ef<1 dient of project status/prospects_
\I
,,fort1' ,,,, feasibility of/commitment to project. j
,011fii•··
i ~e fits of project audits become espe Ill t
! belle . . c a Yevident In large organizationsrunnln1 larRe projects. MuttknBllon i
file
,ojects c
an easily derail due to Poor
management techniques c.auslng the Investors rm11ions of dollars. In this !
/Pr~ the cost of not performing periodicproject audits can be much higher than the cost of performing it. Multiple i
II
~~::~,haps one per phase, are recommendedfor large projects.
l,
preparingfor the ~Ject Audit
. .
llle aim is to e~sure_that
.

audit team ~ives full and uninterrupted accessto all required information,~ and
. duringtheir audit. This indudes emails,and documents developed by the project team. Having everythingat your
makes it easy to answer questions whenthey arise.
#1pS .
When you conduct an audit, determine whether the PM has addressed the key items in each phase M the project
_1 This includes : ·
~1'\ve· I'
Initiation Phase tt
1.

l
_ identifythe main objectiveof the project.
Write the project charter.
_ Get sign-off on the project charter.

2, Planning Phase
After you complete reviewingthe InitiationPhase, review the actual project plan or Wort BrealcdownStructure(WBS).
You should focus on how well defined the WBS is and how well and dependencieshave been scheduied.Make,
sure the planning is sound. Failingto plan is planning.to fail.
- Createa Project ManagementPlan.
- Establish project deliverables.
- Write a scope statement.
- Determine a project budget.
- Distinguish project activities:
- Work out a schedule.
- Determine specialskills needed to complete plannedtasks.
t ExecutionPhase
Once the planning phase has been reviewed,the executionphase reviewtakes place. Many projects suffer from sa,pe
~eePdunng
·
this phase. Has the project team stuck· to their scope? Poor communication,misunderstandingsand lade
Ofinforrn . •
~ •on may have caused issues.
MS I Py
•

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r .....AS,,1Ament(MU)
it. p~-
-
•K>lf""

pu
t together the projectteam.
Administer and guide the pro e
I ct team
.
status review meetings.
conduct
lcate project Information.
--~Id
- t qualityassurancemeasures. - roc;e<turesare wo escn -
- lmplemen nd the correctionP
Make sure the control measuresare sound a

4. controlllng Pha58
Measureperformanceagainst the plan.
Evaluatethe correctivemeasures.
_ Manage change requests.

5. Closing Phase ch t closingphase. Has the project been doc:umenflalllld

e work of the project is done, we approa o
Once most Of th
dosed property?
0
Manage aa:eptanceof project deliverables.

0
Document lessonslearnedduringthe project.
0 Archive projectrecords.
0
Formalize the dosing of the project.
o Release project resources.

-
o Write final Statu s Report.
In general,you must try to understandall the processes.How well suited is the methodologyto this particularIRIIIU
Are all the processesrequired in place? Did they miss anythingfrom the methodology that should be there 1
I
5.14.3 Phases of Project Audit

Phase 1 : SuccessCriteria and Questionnaire Development

1. Success Criteria Development: Interviewthe core project sponsor and project manager to determine their 9sm.:a·
criteria•for the project audit. This ensuresthat their individualand collectiveneeds are met.
2. QuestionnaireDevelopment: Develop a questionnaire to be sent to each member of the core project tl!allllal
selected stakeholders. Individualsoften completethe questionnaire in advance of an interview. It helps them tom
their thoughts.
The actual interview provides the facil~tator with the opportunity to gain deeper insights into the intenieWe's
comments. The questionnaireshelp them to reflect on the project's successes, failures, challenges and niS1ld
opportunities.
3, Project Audit Questions: There are many questions that can be aske_d. It is easiest to develop open-ended questjallS
for the Interviews_ Thesequestionnairescan be used for team members and/or other stakeholders who cannotat!l!llli
an Interview. ·

~~velop the questionsso that they help to lde11tlfv the major project su~s; the major project issUes, concerns
d challenges'. how the team worked together; how vendors were managed; how reporting and meetin&S -
handled; how nsk and changewas managed,etc.

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 , prOiec1,.,
I,
808
: : :ge~m ~-------~!.----~~~=~~~~:i.!~=:~2..
:e:nt:(:M:U:)
:,depth Research
i : ,,,
5-28

.n~,e ·ndividual research Interviews with the p .,

r· di.let I ro,ect Sponsor Project M
cof1 fy the past, current and future Issues ' anager and Project ream membersIn order
, ide11tl . , concerns,challengesand opportunities.
1° individual research Interviews with st k h
di.let a e olders lndudlno ve d •
co/1 d external resources and sel ct d D n ors, supp11 ers, contractors, other proiect
, . ier11al an e customers.
,r he issues, challengesand concernsIn
ft55ess 1 . ":'ore depth to get to the root causes of the problems.
, . wall historical and current documentationrelat d t thl
~evte o s projectlncludlng;
rearn structure
0
scope statement
0
ausiness Requirements
0
project Plan
0
Milestone Report
0
Meeting Minutes
0
Action Items
0

0
Risk Logs

0
Issue Logs

0
change Logs
• Review the Project Plan to determine how the Vendor Plan has be.en inc~rporatedinto the overarlproject plan.
• Interview selected Stakeholdersto Identify and determine what their expectationsof the project had been and to
identify to what extent their expectations have been met.
_ Review the Project Quality Management and the Product Quality Managementto identify the issues, concerns and
challenges in the overall managementof the project and to identify the opportunities that can be, realized through
improvements to the attention of project and product quality.
- Identify the Lessons Learnedthat can improve the performance of other future projectswithin the organization.

Phase 3 : Report Development

• Compilethe information collectedfrom all of the Interviews.

• Compile the information ~llected from Individualswho only completedthe questionnaire.
• Consolidatethe findings from the project documentationreview.
· Identify the Issues, concerns and chafle.nges presented throush the review of the Project duality Management and
Product Quality Managementplans and Isolatethe opportunitiesvou believemay be realized.
• Identify all of the project's issues, concerns and challenges,
- Identify all of the project's opportunities that can be reallzedthroush this report's recommendations.
- Ide0 t"fy
1 the Lessons Learned that can Improve the performanceof future projects within ·
the organization.
- Finauze the creation of the report· and recommendations on the basis of the findings and present this detailed report
nd
a recommendationsIncluding-the road map to get future projects to the "next level" of performance.

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 Protect executing, Monltori!)g-&.
5-29·
:,,,-1 Mana amen\ (MU)
geme~
t procurement Mana needs. The process of buying mat-_.
15 proJec lete Its business .....1111..._
5. tees to comp ~lll
ulres material or sent ent
Everv organlz.atlon acq d dealers Is called procurem . It involves the process of se\ett'-
- ·ces from ven ors or gement. --.-· •1 ¥ttw..
obtaining senti nt part of project mana d actual purchasing of goods. PrOQi,~~ .•
Matefial procuremcnt Is a very lmporta \ting negotiatingcontracts an I to an organization. • Thus, "'rroeur......_
··""'· ~
·shing payment terms, strateg1c ve ' d work that Is vita · -~ I\
estab'' d sentlces,an · f nd •
ed with acquiringall of the goo s, f activitiescan be ou .
concern m within a lot O ti.t.• ith a prop
. \\y the overarchingor umbrelIa ter d d In correct quan ,.,, w er~ ltt1....
essentta ' terlals are or ere
should be done In such a wav that ma
Procurement ·
- propert·me 1 •
It is subdividedInto fo\\owlngparts :

0
PrimaryProcurement
o SecondaryProcurement

5151 Primary Procurement

. , . . oods or servicesin the right quantity, at the right price•llldat
- Primary or Basic procurementis a processof acqulnng g t'n, price and time.
• · 'ght balancebetween quan ,,, , ' ·
the righttime. It is critical to maintainan . • ted with hw. i-...._
. . levels at a minimum, due to the pnces assoaa •~•
- For example,OrgamzatiOnstry and keep Inventory d ct' due to shortage of raw materials. Though8M...
h f ·t an be detrimentaJto stop pro u ,on - ,
inventory;at t e same ,me, 1 c . . . however it is equally important to maintain a
the minimum price for a product or service is often necessary, .
betweenthe productavailabilit:,/, quality,!l!'d vendor beller) relations. .
·
Procurementin most modern organizations follows some sequen 1a r I steps which are described as follows :
1. Requirementand lnfonnation Gathering : Procurement process starts with gathering info~ation about .a
and its quantity.Then for the required products and services, it is necessary to look f9r supphers who can~•
requirements.
2. Identifyingand Contactl_ng Supplier: After gathering_the requirements, one looks for the suppliers who can MIi
those requir~ents. Based on that, quotation requests or information requests are sent to the suppliers or theyn
cont.acteddirectly.
3. Reviewing Backgroundof Suppliers : Once the supplier is known, the product/s ervice qualify is checked, and.,
necessities for servicessuch as installation,warrant:,/, and maintenance parameters are investigated. Some.samplsd
the productscan be obtainedfor qualityexamination.
4. Negotiation: Some negotiations with suppliers are made regarding the price, availability, and delivery scheduleaf,ht
products/services.Thereafter, a contract is signed that is a binding legal document between the supplier and lbe
ordering party. A contract will include all necessaryInformation such as price and quantity of material, de\iverydall.
etc.
S. Order Fulfillment: Ordered material Is shipped, delivered to the ordering party, and the supplier is paid c1W>1dil!IIY·
Training and installation of product or ~ervlcesmay also be tnduded.
6
· Consumption,~aintenance and Disposal : As the products/services are consumed, the performance of the prod\ldS
or servicesis evaluated and any follow-upservicesupport, If required, Is analyzed.
7
· ContractRenewable: Once the products or services are consumed or the contract expires and needs to be
th
ren_,
or e productor service Is to be re-ordered, the experience with the vendors and service providers is review~.If the
productsor services are to b d d h
e r~-or ere , t e company decides whether to order from the previous supplieror
think
about new suppliers.

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 08 gement (MU)·

r mal'Y Procurement Activities &. Controlling

,1 • .,,ing Fig. 5.15.1 illustrates the 11· .
r folio.. ow of basic
r11e procurementactivities:
,::·~~ut ..
".,., . " ,.. • t

-' .
electroniclra"5ml
'f!r.'M~ ~ purctiaslngdepartment
r6 needeci!or a butlneti
..,

. h th~ ntquisitlooIs appr

·tJ.ecomesPurcha
'tL/: ' ~... j. •

: liafIs' received,
.. ,are -ierffied.The I
:received from vendor.·
,._-,;,., ' . 'I.'·:.... <-, -: ..... ,

. .. .' ....
atloflof the invoi'ce ·
~i~tled: The ven.dor i
~-1.....~~.. • . 7 .. ..
- ~ -~r .. .,~~ ;_,,.,. ,.

Fig. 5.15.1 : Flow of basicPn:>eurementActivities

Abrief introductionof the ProcurementA~ivities is giv.en as follows :
L Determination of requir~ment : It i,s the logical subdivisionYJhere it is determinei what materiaJ or services are
required, and which supplier can fulfi,11 the re.quireme~ts..
i creatingPurchaseRequisition.= It is the phase _in which the purchasingdepartmentis informedabout the requirement
of items or services. A requisition is an internal document.
l. Creating PurchaseOrder: It is the phase when ari order is created from requisitionand it is.approvedand assignedto
asupplier.
l Goods receipt/ Invoice Recelv~d : It is the phase iri which the materialts received by the company and its condition
and qualityare being inspected,'lnthis phase, ilO .invoiceis receivedfrom the vendor(seller).
I. Invoice verification/ Vendor Payment· : It · Is· the phase In wh!ch the vendor ls paid from the company and
reconciliation of the invoice and PO is accomplished.
5,15.1 (b) Types of Primary·Procurement

- Procurementfor Stock Vs ConsumP,tlon· · · ··

- E~ernal Vs Internal Procurement
1, .
Procurementfor Stock Vs Consumption
lhe following points show tlie dlff~ren~ ~f Procu.re~ent f~r Stock vs. Consumption:
Procurement'forSt~ck :.A stock material Is ·a materialthat Is kept In stock. These materialsare kept'lnstock once
received from the ·vendor. The
stock of this material keeps on lncreaslnsor decr:eas~nsbased oo. the amount of

quantity received or Issued. M......._.

.. P u ll"l \'1 • a1i..

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 ProJ·ect executing, Moni1orin

1
5.31
I5 for dire .
be,:s
ct consumption , i.e., it 'Will
.
_, projectMsna~m en
(MU
-ptlon : When the pro sumptlon purpose. To order a material
curement . for c, Ill...
d consu..,
"I/"_
rement for D1re houfd speclfy the con '
procu d the user s ystem,
as It Is receive ' d within the s
as soon h ea master recor
the material mav av .
al Procurement I Procurement . .
fdernal and Intern f E ternal vs rnterna . from external vendors. There art"'
2. the difference o x d or services ...,et
followlng points show f rocurlng goo s . g component of the TT system.
The t . It Is the process o P b the purchastn
Erternal procoremen . t generallysupported y e ordered irregularly. . .
of externalprocuremen Ices that ar
basic forms lfy used for materialand serv d . For materials that are being-Oht..... ..
time ordersare genera f lease or ers . . -l!f
(I) one· . with the subsequent Issue o re . h the vendor (seller) for pricing or~,
(fl) Longer-termcontracts negotiate deaf wit
regularly and In large quantities,we can J pecify the validitydate.
rd then In a contract.In a contractyou a sos J • If a material is ordered on an everydayt....
reco I
schedu es . 9lllll

(iii) Longer•t erm schedulingagreements .

and actdel
time schedule, t hen you set up a scheduling agreement
very
rd
and is to be deliveredacco mg to an ex ultiple separate businesses or toritm..a..
- lntemal Procurement: Large corporate orga .
nizations may own m
f tting material an serv1
d ·ces from among identical company. So, • ·Clf
r,...-q,

Internal Procurementis process o ge . em with separate Balance, Profit & Loss Stat1!fnents1o,
these companies maintains a complete bookkeepingsyst .
that when trade occurs between them it wiff be recorded.

5 _f 5.2 Secondary Procurement

secondary Procurementis the stocks that are managed differently as these stocks ~o not bel~ng .to the tontpaay.
They are kept at some particularlocation.Secondaryprocurement is divided into the following categories ·
1. Consignmentstocks : Consignmentstocks are those materials that •are available at the store premjses but it.SIi
belongs to the vendor. ff you utilizethe material from consignment stocks you have to pay to the vendor.

2. Third-party processing: In third-party processing,a company passes on a sales order to the associate external VeTICb
who sends the goods directly to the customer. The sales order is not processed by the company, but by the,vendo,,
Third-party items can be entered in purchase requisitions, purchase orders, and sales orders.

3. Pipeline handling : In pipelinehandling, the company need not order or store the material involved. It is obtaioable1S.
and when required via a pipeline (for example, oil or water), or another style of cable (such as electricity~ 1he
material that is consumedIs settled with the vendor on a regular basis.
4
• ReturnableTransportGoods: The Company orders goods from a vendor. The goods are delivered with red
~ansportpackaging(pa/lets,containers)that belongs
return ,t to the company. .
to the vendor and Is stored at the customer premisesuntil tho!

s. ::b;t•ctln1: The vendor or the subcontractorreceives components from the ordering party with the help Ii
'' t produces a product. The product Is ordered b
required by the vendor to m 8 t h y your company th rough a purchase order. The components
anu,ac ure t e ordered product are 11st d I h . .....
subcontractor. n t e purchase order and provided to u~
.e
6. Stock t sfi . .
ran er usingstock transportorder : Goods are ro . .
good~ Internallyfrom another I t ( . p cured and supplied Within a company. One plant orders the
P h . - Pa.I) receiving plant/Issuingplant) Th . ,• f
urc5 ase
0
order1 the stock transport d Y • e goods are proc~red With a.special typ~. o.
tran or er. ou WIii be able to requ t d . ck'
· P rt 9rder, es an monitor the transfer of goods .with a sto

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 Management(MU)
, proiect S-32
l proJect Contracting

~ I
nv projects and lnfrastruct
E11erY a from software c ure Works are 1Jndtttaken
,,. es ranging , onstructlon, telecom a<rcns the world. These pr-oJt!(.t! are of dlffl!T~
rYPd vendor/seller/s upplier In common. , to scientific, and oll & 9a~. Every proJl!d ha, ,;ta~ hold'!O/dl~ts
an
t,er words, every project Is lnltfated b
111 ot J Yan organization with th h
,,. rement. In pro ect procurement mana e elp of suppllersfor the various Me~ of thl!
,ocu sement, these twO 1
P h agreement between the two Is c II d h part es are senerallytermed as 'boyer.' a"d the ' ~le,'
a11d t e · a e t e #contract."
cts are an essential part of procure
contra ment management It t I
,,. contracts are necessary for project . crea es a egal binding betwttn the buyt!f and the
5eUer. ,:nanagementas they providereliefon either side
. rTlanaging the risks Involved In procur ·
,,. 11 is "bilities in completion of the j ements. A contract Is required to share and bear the individuar"s
,esponsr pro ect. This Is more so In larger and complexprofects.
contract Manager
5,16,1
The contract Project Manager plays a very criticalrole Project Contracting. He/she manages contracts throughout the
·ects and their life cycle. On ~any occasions, he also plays the role of a llaonlng person between t'-- eotrrpa.•
. . . I~ I~
ernplovees, venddorsT , hcustomers. He creates the contract's repository and is solely responsible for maintaining all the
cot1tractual recor, s. e company uses these records for their projects, whichfinallybecomepart of Record ~agement.

5
p0nsibilitles
.
oraft, develop, negotiate and execute the contract.
_ Create policies and procedures to the contract and ensure the effectiveness.

_ uaoning person-and a contract facilitat or.

_ Manage and close the contracts throughout the proJect duration.
create a contract repos itory and update periodically.

5.16.2 Contract Management-

- Contract is an agreement between two parties in general. In project management, it's a formal agreement between a
buyer and a seller. The agreement is made to procure goods and services ~uired for the agreed project. This
documentneeds to be prepared by the Project Manager.
- It is done in coordination with Procurement Manager during the project planningsuge . It has to be documented as a
Procurement Management plan, which Is a part of the primary Project Management Plan.
- Contract Management, a part of the Project management, deals with the vendor/seller/supplier. tt also manages the
procurements according to the terms and conditions set In the 'Contract.' The terms and conditions are a,reed
mutually between the ·buyer and seller.
- Contract management Is the art and science of managing a contractual agreement throughout the contracting proce$S.
Though many times the contract.s are simple and straight, sometimes, they are more complex. It happens in larger
Projectsas many procurements and suppll~~ are Involved.
- The Procurement contract being a· formal document must be carefullydesigned. It should also be mutuallyagreed to
avoid the complications between the buyer and the seller. It Is all to execut~ the project smoothly for the timely
cornplet·
~--10..:_
.~·~- -..._
. ------=.;.....;~__..........,;__._...-__..__....,;_____.--------------------7~
....;;_~:,.-;

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 Project Executing, Monlto

ans ament (MU) rocurement contract:

pro/eel M d hlle deciding on p
be cons/dere w
to
/defines
comple1<lty o f procurement
Gv

o t /on of procurement
o Loca . I ontractors t .
0
AVallablllty o f suppllers c J ct undertaken . The fo lowtng•re~
.
Local govemrne reg
ulatfons f ntract sulta ble for the pro e .
'"'-
'I'\
o di the type o co
These guidelines assist in decl ngp o}ect Management.
of contracts generallyfollowed In r

5.16.3 Types Of Contract categorizedas either

_ Mosto f th e contractualrelationships
are broadly
1. Fixed-Pricecontract
2. Cost reimbursable
3_ n me & MaterialsContract
The thfrd type of contract fs seldo m used:

1. Fixed Price Contracts · . f . . defined ·product or service · or' the r~ to lit

• .. I es a fixed price or a
In this cafegory, the contnlct mvo v
supplied/provided. These types of contracts are recommen e
d
d when the scope of service is comptetety-.._.
.
· and final.

Types of Fixed Price contracts u~ed in m~nagingprojects

(i) Firm Fixed Price (FFPJ · · ·

The prices of the gdbdS and services a~e set and are never subjected to change unless the scope is~
and agreed mutually. This type is favorable mostly to the buying organizations . Because theextentof~
the goods remains vnchanged .and r.ecurri'ngbuying happens.
{ii) Find Ji.riceJncentrveFee .(.FPJF)

The price ceiling is set, and the .seller needs to perform and fulfill the contract requirements ~ithtn thatpricz.
Art the costs above the price-ceiling are the respons ibinty of the seller . This type gives both the
buyerandtht
seller some flexibility for performance with technical incentives'. The incentives are tied to achleving_
agrttd
upon metrics such as cost, schedule and technical expertise of the seller.
(iii) FfxedPrice with EconomicPriceAdjustments (FPEPA)

It is suitable when the contracts are executed In differentcountriesand payments are made in a diffett?t
currency. Also, if the seller's work lasts for a few years (3-5 years eneraliy) this contract Is fitting.Thls
8
contractgives an option to make adjustmentsIn the predefinedfinal payment as agreed to in the contract
due to changedconditions·such as Inflation rates . ·
2
· Cost ReimbursableContracts

' . '
atlhis
ongtype
withofacontract
pre-defiinvolves
d f cost reimbursementfor lhe costs Incurred during
· ~ompletlonof the contractual·Jof1, ItIS
-- cha~ge d~ . me ee
. . the. co'!tr~ct representingseller proflt. It Is recomtnended If the scope·of ·1h1> work Is·
Period. .

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r
aAgnagement (MU}
·ect "'' 5-34
lf,. pfOJ
r;pe o
f contract Includes :
r~iS phJS Fixed Fee (CPFF)
cost .
(ii eller gets all the allowable costs
111e s agreed In the contra
rculated as a percentage of Initial estlmat d ct. The seller also receives a frxed fee payment, •Mlich is
ca d e project costs u I h
unchange • · n ess l e project scope changes, thls fee remaini;
plus IncentiveFee (CPIF)
cost
(iil r he seller gets the reimbursements for all th
sed on t he final costs incurred (gre t e coSU Incurred on performing the wor1c agre'ed In th~ contract.
eah re their expenses. The sharing Is basa er or lesser than the · lti I pl ned
d '" a an cost), both the buyer and thf! set~
s1 a·t over the target costs based on th e upon a pre-n!gotlated cost-sharingformufa. Gffl~ally, it is an 81J/20
sP I e actual performance of the seUer.
.. cost PIUS Award Fee (CPAF)
(irl)
• gets his/her teg,·rtmate reimbursements
Jn this type' .the seller . . But a majority of the fee is received upon meeti ng
some techntcal/subJective performance that Is pre-set In the contract. This solely depends on the buyer's
determination and the seller's-performance.

& Material Contracts(T&M)

firr1<- 0

3· flliS a hybrid type of contra~ combining the features of Fixed as well as Cost Reim~ contracts. This is ofte-n
used when contractual requirements (scope) is not known/ prescribed. Also, this type of contract is suitabte for
,quisition/hiring of experts, project staffrequired (or a parti cular period .
a •

5.tT project Outsourclng

The process of outsourcing is an effective means for businessesto get projects completed efficiently,espedalJyif the

I
• project at hand requires skills that are beyond the capabilities of a business's_current employee,.
_ project outsourcing has been proven to improve core· business competency·and helps compa11ies.artbad: on c:apitaf
expenditures, since the too ls needed to accomplish the proj ect are already provided as oppose to porchasingnew
ones.
_ Hence, if you are a business owner and you would like to optimize the productivity of your enterprise without f
expending too much, the project outsourcing servicescan definitely help you occ.ompfishsum goal. t
A

- Process outsourcing by lrnfustries around the world has seen considerable growth from duriRg wt few decades. It
started with busine_
ss process outsourcing and now has reached to knowledgeprocessoutsourcing.
- Surprisingly, outsoorclng of project management sefVices is still in its Infancy. Judgins from the- growth in outsourcing
of other business processesthere seems to be very good opportunity for project managementoutsourcing.
• Some organizations have successfully outsourced their project control functi~s to outside vendors. The main
challenge in the growth of project management outsourcing is In acceptingproject control as a separate function and
indelegating this to other departments or vendors.

5.11.1 Project Management Outsourcing

• In the past most outsourcing that has been donehas been In the IT sector and a large ~rt has been for project-based
assignments. For theser project management was an lntesral part and was. lnduded as part of the scope of. the vendor
or service provider. Considerableimportance is-given by clients and the serviceproviders for project management.
Many clients view project man~gement skills of the vendors as criteria before they are awardedcontracts. So when an
outsourcing a . . _ dor &or examplesoftware development,project manasementrs considered a
Part ss,gnment ts grven to
. a ven
. • . 1

'----l'dfl of it~ ___ _ . _ . ..

--~ ~- -. •~n,~...':;
•.

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 c._ Project Executing Mo .
• project Management(MU) .r35 ' llltort g
tract for providing the main serv1c
_ By project management outsourcing, we do not mean t he con e. Instead,~
p.irtlcular Instances for example :
A client outsourtes project management functions to a vendor or service provider 'l
0

0 A service provider outsources a part of Its project management functions to anol h er vendor or ser,,ice

o Project management functions are considered separately and award ed as a separate asslgnrnt~
organization. , ._

I,. Cllent

Within an organization

Rg. 5.17.1 : ProjectManagementOutsourcing

5.17.1 (a) Pros and Cons of Project ManagementOutsourcing

Pros
- Clients can focus on core competencies

- Faster ramp up time or time to mark~t

Fresh look from an outside view

- Vendor can ensure that best practices are followed and can provide latest trends in specific sectors

Preparation for similar proj~ in future.

Cons
- Commitment and resources requ_
lred internally, even though external resources are used

- Relationship with vendor needs to be managed otherwise no benefits .are accrued

- Because ownersh ip of resources does not exist with client, vendor can discont inue the relationship

- Depending on the nature of the project, data security may be compromised

- May cost more if the relatlonshlp does not work out.

5.17.1 (b) Using IPECC to Understand Pro)ect ManagementOutsourcing

. .
The IPECC process groups of the PMBOK Gulde provides us a basis to understand what processes or
project management can be outsourced and what should not be outsourced. _,,..
=--------- -----'---....a...----........----- ...=..c........--- =-::•~:~.. ±.i
_.....__......._______a...----'---------

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 Fig. S.17.2 : IPECC and PM Outsourcing
or Processes that Can Be Outsourced
i,ctl005 .
fU initiating is a key area where senior managementIs Involvedand requires their active inputs and executingis an area
·rectlV deals with people and Is the heart of a project. So, these are nonhe preferred areas for outsourcing.How~
hat di • l I ,
t of the functionsm P ann ng, monitoring/controlling, and closingcould be consideredfor outsourcing.
11'an1
sorn e examplesare as follows :
planning : WBS and schedule _development, preparing cost estimates/baseline, quality and rtsk plannln1,
\. r,jsoftware support.
w .
Monitoring and controlling : Ana_lyzing/control schedule and cost, reporting status information, t~f/software
1 2• support, project managementinformation s~stems, proje~ audits, and earned value analysis.

Closing : Post project appraisal.

3,
;,; n to this, formulation of project managementmethodology, training for project managementcan be outsourced
dd 0
'" 2 '" •

0_1 Explain the characteristicsand advantagesof Proie<?t Monitorfng. (Refer Sections5.2. 5.2.1 and 5.2.2)

o.2 Describe Project monitoring& controlling process. (Refer Sections 5.3 and 5.3.1)
o.3 What is Information need of a project? Describeits objectives.(Rifir Sections5.4 and 5.4.1)
o.4 Explain the reporting of information. Describeany four types of report. {ReferSecttons5.5 and 5.5.1)

O.s Write a note on stakeholder engagement. (Refer S~lon 5.8)

O.6 Describe the ways to engage projectstakeholders. {Refer Section 5.6.3)

a.7 Explain team management.Write·some of Its characteristics.(Refer Sections5.7 and 5.7.1)
a.8 . (Refw Sect1ona5.1 and.5.1.2)
What is projectCommunication?How can you manage projectCommunications

a.9 What is project meeting? Explain Its planning steps. {ReferSectlo~• 5.9 and 5.9.1)

0. 10 Describe the Earned value method. Write Its.method.(Refer Section 5.10)

Q. 11 What is.the significant of milestonesIn projectmanagement?(Refer Section5.11)
Q, 12
What are the ways to us~ milestones effectively?(Refer Section•5.11.2 and 5.11.3)
chan e r uest. RJfar Section• 5.12 and S.12.1
uesJ.)Vrite the,ste

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 5-37 Proiect Executing Moni4
if_ projectManagement(MU) ' •lOlin
(Refer Sections 5.13 and 5.13.1)
a. 14 What is scope creep? Describesome of Its causes. .
a. 1s Describethe ways to avoid scope creep in projects. (Refer Section 5•13.3)

a. 16 Write a note on project Audit (Refer Section5.14)

a. 17 Write the steps to preparefor Project Audit. (Refer Section 5.14.2)
a. 18 What are the phases of ProjectAudit? Explain (Refer Section 5.14.3)
a. 19 Describe projectProcurement.management.What are Its types? (Refer Section 5.15)

a. 20 What is Project Cont~cting?Describe the types of Contracts.(Refer Sections 5.16 and 5.18.3)

Q. 21 DescribeprojectOutsourcing. Write its advantagesand disadvantages. (Refer Sections 5.17and

. 517
• .1)

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 Project Leadershl
P, Ethics and Closure

.sy}~~11us,
1ntrv<'
•
,r::::~=-:------------~=--------
_,111c1ion to ~rojectleadership, ethics1
n Prolecta, Multlcuttu 1
, acceptance; Reasons of pro),.,.. ra and \llr1ual proj9Cta.
c11$101118 • ""'' termination VarlO
rntion, Starvation), Process of project ' ua types of projee11ermiMllons(Eldlnclon Addle>
1te9 termination compl81ln fl ' '·
11~001"1edging successesand failures· Project ' g a nal report; doing a lessons teemed .,,.,_ ,
:i _ f further study. ' managementtemplates and o1her r8SOUIC8I: M8MglngwlholJt _ __: '
Are~~ o _..,. ,., .

project Leadership
~~~~~--=----:----------------
, !ea3ership is ~lie ~bility to establish vision and direction, Influence and align others towards '6mmon
"'""' ' and inspire people to achievesuccess. · - ...,
_ project leadership Is the.act of leading a team towards the successfulcompletionof a project.Projectleadership_ .
,,ms in both managementand leader>hlp.It Is a soft sk111. _.,
_ teadership for long has been growing in relevance and importanceas more
and more projects are betns delhered '"
more complex and uncertain environment. The role of leadership In a ·project is to promote me ·ect 0 •
encourage pos1·t·1ve reIatIonsh'1ps, support effectiveteamwork,raise morale,and empowerand,lnspireindMduals.
PfOJ b;ecriYes.

An effective leadership: ·
o Set standards of behaviorand performance
o Motivate the team members to high performanc-eand
o Rally the team memberswhen the project has,problef!lSto overcome.

6.1.1 Role of ProjectLeader ln Managing Projects

In ensuring each member In the team
A project leader Is the In-charge of project activities and plays a vital role
contributes and adds value to the project. This requires famlllarlty with team management, data reconciJiationand tJme-
tracking. ·
Following are a few areas of work for a project leader:
1. Project Estimation: once a project matches the business goals, the next step taken by a projectleader Is to estimate Its
costs, efforts, reso~rces, time, benefits and even potential risks. After each activity and resource Is usief'eda l,udtetatY
allocation, the project spending can be flnallzed. Estimate of skllls and their availablllty for the proJect is an~ther

important work area•.

2· Building Team : rean1s are the el'iglM drMng proj~cts forward. Building a great team requires project leaders to b~
Proficient at understanding the lntemal team dynamics. Besides ensuring everyone gets a fair chance to play to their
•rengths, a key project leader>hlpskill Hes In fac111tatlnshealthydollopsof team collabotatlon.

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 Project Leadership,
6-2 ,~

111!"'_
•
.lJI proiec1
Mana ement MU)
Ject planning : The crux of advance
d project managem
fit the frequency of scope chan.ge can eithe,
--.-i"
ent and strategic leadership lies in !I"_,~
\
teslc pro J ct th t poses no bene , . redo~
3. stra II no one would take up a pro e a . ct leadership skill lies in striking a balance' ~Ot
•ect Wh e j t A popular proJe
pr<>J • h benefits or doing a particular pro ec · b efits. This is why seasoned leaders PQfl
I crease t e I th lines of long•terrn en • Pl'Olit...
n . fr sh challenges and thinking a ong e . fts . demand and acquiringa scalabte~f "'l
seeking e . ss InvolvesIdentifyingvolatileshl in . °'It.
portfolio strategically. The proce thods of managing projects are being swapped in favour 0f
..i.•ng MilestoneDelivery: These days traditional me s is Rather than having to wait till the.,,_, ..
4 rra~1 . . . h . 'ble a project's progres . . - , ••
. liverf·And the biggest advantage IS in ow v1s1 ro)ect leader has enabled them to actively ,o
de d fi rrors with a back track, the evolution ln the role of a P U..
spot an 1x e
h d againsteach release within a project.
milestones reac e h h Ith of a project is to record quality aucttts, ,_
H Ith • The reason to regularlycheck t e ea ..._.
5 Maintaining Project ea · d r1 elines targets and deliverables. Project health~~
· · ployee performances as well as recor m , -~
mistakes, review em . . pproval or rejection of scope changes and actionst::o&,~
•· ming the project's selection, business case, a ..._.'e
of decmons conce . t priorities and inject flexibilitywhere required so ,._ 11...
issues. It lets project leaders match resources agains ""
reso1ve d d t supply of resources
· ct stays the course and makes use of the right an a equa e ·
pro1e • t' h h I ·
Risk Mitigation : Project leaders know from experience that risks are inevita.ble. Tha s w V t ey re y on in~ illd
6· . . 'd •ty d b t Id new or common risks. As a pro1ectleader , you have to be better inf°'11ed
forecastinginsights to I ent1 an com a o , . . .
of the risks and the ways to counter them. You can work together to create a risk chart depicting the severtty,
and mitigation plan. .
ConflictResolution: Project leaders have to deal with people and the likelihood of asymmetries between expertidllais
7
· and reality.Simply put, once the resources are assigned to projects, competing interests arise despite ther~ beinga tat
priority log. Add to which, newer priorities override existing one and displace schedules, which can result in tan.i
becoming dysfunctionaland uncooperative.

6.1.2 Project Manager Leadership Skills

Some of the project leadership skillsyou'll need to advance ~rofessionally would include
1. Inspiring and Motivating : While there are several leadership styles, the ideal project leader is one Who demonstnllS
his/her readiness to add value to the project. ·As he has to lead a t eam it is important him to be inspiring and motivatqlD
his team members. He must be followed by people.
2. NegotiationSkill : A skill best seen during the bidding stage, negotiat ion skills not only win you feasible contracts butalsa
lets you communicate with different stakeholders in a language they understand .
3. CommunicationSkill: A project leader spends most of his time in conversation with others, be it with his teams, dient:S«
reporting bodies. Thus, an effective communication skill goes a long way in making him effect ive. Not only wm it helpte
align roles to the company vision but will also enable him to see work from your team's perspect ive.
4. Future Centric : As a project leader, one must have a good understanding of what is in store in coming days. 8elrC
futuristicis a positive quality of a leader. It helps him set him the right vision for his team .
S. Influential: Good leaders need to be Influential. He must have the abllity to estab lish and strengthen inter-departmental
·
business ties. This way, he stays Informed of resources with the right cultural mindsets, ability and skills. They come In
handy in th_e future when he needs to find the right person for a new opportunity. ·

.,
,·

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 I
. Mllr,agement(MU) I
,8ct
l pto) l-eadershlpStyles
.1,3 different leadership styles th \
,. are at a proJect 1 !
fflere ·fferent kinds of leadershipstyJe eadet must have 1
ne d1 s are : n order to be eff Iv
t11S· f Leadership: This style Is rare! ect e In their role in le3dlng the \
t' ,,ive . . Yused by proj I
coe roJect deadline 1s looming and I ect managersand Is m
I· ,t1nen a P t I tell you." n danger of being missed. If this or~ apparentdurlng crl\l ~ situations~pedally
e•oo \i.tna . style is to be summed up In one phr.Y~, it would
b ·tatlve Leadership : AuthoritativeI d
cnor1 • , ea ers Inspire a
ft.ti 1Jtnoritat1ve leader is a visionaryand motl n entrepreneurial splrlt and vibrant enthusiasmfor t'-- • · •-
1· ..,,e a . Vates people by k •>1: m~:,ovn.
,,. vould be vahd for any project. This st I ma Ing clear to them how their work fits into thi . vfsl
nich \ .• Ye works best when th t s on
1t1 d or when explicitguidanceis not req I d e earn needs a new vision becauseclrcumst;ancesh.ive
~3nge , u re .
' . t·ve Leadership : This is a very commo
tfil1a I n managementstyle used b l
1 ft. i·ect team. This leader works to ere t . Y pro ect managersand has a positive imi,act o'1
r ~e pro a e emotional bonds that brin f r Of
t,, · n This style works best in f g a ee mg bonding and belonging to the
o11an1zat10 . . imes of stress, when teammates need to heal from a trauma, or when the team
to rebuild trust.
oeeds
oert10, ratic lead~rship : This leader builds consensus through participation. An example of this is where each tum
'- (,l?;nber in a ~roJect ~anagement _Office (PMO) contributestowards definingand meawringthe objectivesof the PMO.
riie democraticstyle '~ most eff~ct1vewhen the leader needs the team to buy into or have ownership of a decision, plan,
~,oai, or if he or she 1s uncertain and needs fresh ideas from qualifiedteammates.
esetting Leadership : This leader expects and models excellenceand self-direction.Thepacesettingstyle wortcs best
s. r..i . • .
~~en the team 1s already motivated and skilled, and the leader needs quick results.This style is common,especiallywhen
aproject is coming up to key milestones. Although this style generallyhas a negativeimpact on the project team, there
,re merits and contexts to when it could be applied with positlv~results. ·
s. Coaching Leadership : This style of project management encouragesteam members to develop their own capacityand
capability as project contFibutors with a positive impact on the project team. The coachingstyle wortcs best when the
leader wants to help teammates build lasting personal strengths that make them more successful overall. It Is least
effective when teammates are defiant and unwillingto change or learn, or if the leaderlacks proficiency.

6.2 Project Ethics

In the world of project management, ·ethics play~ a significantrole In day-to-dayinteractionsand behavior.Ethics enables
nakeholders,employees,vendors, and taxpayersto sleep at night knowing Project ManagementProfessionaf.s(PMPs) are hekt
t,strict and high standards when they make decisionsor act on their behalfto executeon projects.

6.2.1 Ethics Plays a Critical Role In PM In These Primary Ways

· It elevatesthe profession and raises future standards.

It increasesthe faith and trust others bestow.
• 11 imprints on lndividu;3Imoral mlndsets·i:tnd be~avlor,
11
- improves business relationships at all lev~ls.

------
- It promotesfair decision m~king.
.

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 Projectleade,,
i, project Management(MU)

........ It rtdUCt'Sproject risks.

6-4 .

. 4'
- .d s a greaterchance of success.
It provi e
- d an,riety and stress and ultimatelyturnover In projects.
11 re uce.s
2..2 PMI Code of Ethics means for PMPs
6
• table for their own successful or failed
~ns PMPs have a responsibilityto hold themselves accoun de6.....
- 1tmea • ....
actions, as well as any repercussions.
It means being respectfuland demonstratinga high regard for oneself,others, and any reSotJrcesentrusted~-
- ' fid nee cooperation and diversity.
It me-ans fosteringexcellencethrough mutual respect, trust, con I e , '
_ It means the views of others are encouragedand valued.
_ , m-=ans practicing fairness at all times, making decisions,and remaining Impartial a nd objective. Behavior_ITMlst be"'-
1
from self-interestand self-gain,prejudice,or favouritism.
It means demonstrating honesty through words and conduct at all times.

6.2.3 Ethical DIiemma

- While Ethics are important for all organizationsand their empl~yees ~nd ot~er stakeholders, they are more i~ftt
project managerswho execute complexprojects and interact with a wide vanety of stakeholders.

_ Indeed, being ethical and following ethical norms can be said to be prerequisites for project managers who'-'-
practice ethics and observe ethical rules. ·
- Let us take a look at some of the most common types of ethical dilemma in business, and how you can navigate~
through them.
1. Accountability: When things go wrong, it is·human nature to try to avoid the consequences and placethe tiaat
somewhere else. Not only ~n this damage careers and reputat ions, it creates additional project issues by cnr, :le
the real source of the problem. Project managers should understand the importance of owning their own mislats,
and of recognizing situations in which teani members or other stakeholders are attempting to shift 111t
responsibilitiesfor problems that arise.
2. Conflictsof Interest : At the enterprise level, when projects involve large numbers of people and sever-iiof Odidt
vendors, there are ample opportunities for stakeholders to give inappropriate preference to certain teams 11
companies. As a project manager, you should make sure that all parties involved In a project understandp
comparry'sstandards for bidding and vendor selection, and that the definition of a conflict of interest iS' cB ID
everyone.
3. Workplace Culture : While today's workplace environments are generally more respectful and inclusive than ltl!Y
were a few decades ago., no organization has perfected its company culture. Project managers should be very flflliar
with their company's code of conduct and should ensure that all employees, contractors and business~
understand what is expect.ed of them. This Is particularly Important with projects that Include team membenfro!_'
multiple countries as behavior that Is acceptable In one culture may be vie~ed as harassing or even threatenlrC-'
another.

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 if. project Management MU

4. Health and Safety Concerns • t.~ • Elhlcs & Closure

• 0 n 1arge enterprise I
done. Unfortunately, th is pressure som"tlm I pro ects, the st111kes 3re high, 8nd so is th!! prusu r!! tog~ the job
·Jeopar d'ize t h e health and safety of p I " es eads st11keholders to ignore • or 4!V!!n cont@~I ,~,u@', that ml..,t
. d rl ro ect team members or the P bll f &i •
1n ust es such as construction h h u c. Wht e these Issues are more llh"• to ans In
' eaIt care or manuhct 1 ., .e
raise the alarm any tim e they ur ng, project managersIn tM! ,Y 1r1du~r, should be rndy to
5ee a potentlally hazardous situation .

Traits of Ethical Professlonala

Ethical professionals beyond being honest re lbl
acting on and resolvi ng ethical Issues ' spons e, res~ctful and fair share some common traits when it to-

- Clarity and discernment· The ability t 0

• • grasp and understand situations dearly, accurately and objectively.
Supenor Ju~gme~t : The act or process of forming an opinion or making a decision afte, car~ · ba,ed on
accurately discerning the facts , Issues and Imp act of the decision made on the future . tJiooct,t
Integrity: Being honest and fair .

Intesti nal fortitude: The fnner strength of mind anC, will that enable you to act In the race of advenity.
Courage to do what Is 'right : The ability to do ,somethingthat you know Is correct and appropriateregardlessof the risk to
yourself. .

6.3 Multicultural Projects

_ Any proje~ where people bring different assumptions about working norms either in product development« tnm
behavioris a multicultural project. Even when all project partlclpa!ltsare from one country, the project manage,may still
have to deal with multiple culturesand those ~ultures' expectations and behavior.
- Some of.the-teamdifferences are strictly cultural, while others stem from varied managementstv'e5and stral'elies,bul al
these differences wlll eventually show up during the project. Some project managers try to manase those differencesby
mandatingcommon practices and techniques across the project.

6.3.1 Problemsof Multicultural Projects

Any strictly technical problem solving is always secondary to managing the people Interactionissues . When imnactnc
multicultural projects, following problems are generallyexperienced:
1. Different definitions of milestone and handoffs Leading pro!ect teams often mlsunderstand their commitments and
handoffs to other groups. Sometimes the different defin!tlons are due to a lack of understanding- of the actuil words.
Sometime people differ on their meaning of commitment. Whateverbe the cause. different meaningsfor milestonescan
be ove~come with complementaryproduct developmentpractices, especiallyIn project planning, project schedulln&,and
technical review.
2. Uneven project communications and reporting of project state : This frequent~yleads to lack of trust In otMr teams. If
you don't know what other people•are doing, you may not feel you·can trust them especiallywhen seocraphyand culture-
separate teams. This lack of trust can be a huge obstacleto project success.Youmight know what other peopleare doing,
but you might not know what they are saying. Language differencesand everyone'srelative ablllty to use one common

languag_e can create many problems In a project.

Therefore, It is important to make sure that the languageyou use for written and spoken_communicationsIs adequatefo~
11:t:I IT
• .... u ..... ,

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 pro oct t.eadersh l , Ethlca.&
•
Project Mana ement MU 6-6 and overtime. Be speclfl ·
vacations, c'
everyone.There can also be communications problems with regard to hOllda;;~Ject's schedule, and general exp~ l°"a
what vacations mean, the Impact of everyone's national holidays on t~t~ each other and report on pro)ect state .
about overtime -these will all affect how the pro)ect participants work w ds to Inability to share designs, SOu..._
3. • This lea , h l -·-.
Uneven ablllty t o use common tools, Including the project's Intranet . e roject team can t use t e pro ect r~
code, tests , and any other project Information. When some members o~th y maY stop trying to share their Wor'(
they may re sen t th e people who can use the project resources. In 3 ddlt1on, t e
the rest of the project team .

6.4 Virtual Projects --..

d ote ntially on other dimensions.a....
- AV.trtua I project is a project In which team members are dispersed geographically an . t
P ~,..
a rk' d urce constra in s.
re wo ing together to accomplish a specific task under time an reso . . •od of time towards a sn......
. . I b ate for a finite pen -..
- Virtual proiect management is the system by which virtual teams col a or
goal to be achieved within time within budget and according to specifications. d orkers brought .tog...._
. . II dispersed know 1e ge w .....,
- Virtual teams are defined as groups of geographically and organizationa Y t specific customer needsor ...
. . . h I gies in response o ""
across time and space through informat ion and communication tee no 0
comp lete un ique projects . · ·
unicate and collaborate . Virtual Proiett
Technology helps create the "virtual workspace" tha t the team uses to comm . t f
. t ms in locations sepa ra e rom you r own.
management is the emerging trend of managing remote team s or managing ea
·tt rence is not all project team members are
- A lot of the res ponsibilities a nd the project life cycle are the same : the key d I e . f h
· · ·sh to expand outside o t e 1ocal-t:31ere
1n one place .The demand for virtual project manager s is growing as companies w,
pool. Additiona lly, remote work in genera l is a growing trend .
As managers become more comfortable with the idea that teams can succeed even when separated, virtual positions•
sure to grow. These employees can easily work from their living rooms, the local librarv, or a favorite coffee shop .
Virtual projects are a rap idly developing medium for project management. Determining what tradit ional methods a?IJI,
w ill advance know ledge for futur e projects. What distinguishes a virtual pro ject is the abse nce of a common wor\slte..
Whether the project team is dispers ed on different sites of the ~ame organization or in different countries, t h e team does
not res ide together .
Lacking face-to-face options fo r managing work, the project team must create the same success by imposing prc,as
structure and rigorous team management. Clearly some types of pro jects do not lend t he mselves to virtual
implementatio n, but for technical and collaborat ive work by profess ional knowledge workers, virtual projects can capture
the best ideas and produce results across physical space.
Like any product , a large virtual project also goes through development stages . The design of a project, a nd subsequent
selectio n of its life-cyde template, should reflect the phase bias of the project itsel f as well as the phase bias of the
sponsor ing industry .

6.4.1 Tools and Technology for the Virtual Team

Tools for commun ication need to be In place before the team beg ins work Technical t -h
. · ma er 1a 1s are fundamental to t e
team's ability to generate useful work products . The technical env iron ment should pr Id h .
. ov e t e mea ns for onhne document
review, Inte ractive meetings , traini ng, discussion threads, research and survey d t b ·
a a, enchmarklng quality revie w data
collectlon , and rewa rd systems for sustain ing team comm itment. ' . '

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, :::-iP;ro~jec
,:'f
roofs should include your company's Internal options or :
(i) Project scheduling and trackingtools
(ii) Central communications database and document llbrarles
(iii) Survey tools and requirements management tools replacingface-to-facecont.act
(iv) Work templates and processdescriptions

(v} Standards for project management and for work production. PMl's A Gulde to the Project Manag~nt Body of
Knowledge
(vi) Programmanagementfiles
_ Hthe organization'slarger infrastructure does not contain the tools to capture, share and refe'rence key documents.thf!n
the project team should develop them within the communicationsplan for Its own use. If the project cannot arrange the
proper technology,put it in the risk plan for managementslgnoff.

6.4.2 .How Virtual Project ManagementWorks?

- There is no right way to be a virtual project manager.Ulti mately your success will depend on a company's existing
strategies around communication and project management.A huge change Project Managers experience when they go
virtual is that communication has to be infinltely better.
- For example, video conferencecallsshould Includeplenty of time for employeesto ask questions, or speak up if they need
an assignment clarified. Virtual PMs have to be empathetic individuals who are able to pick up orr feelings of chaos or
general confusionwithin a team.
- Being a virtual PM, you will definitely have to invest in digital project management software to help update you on th4!
progress of certain projects or initiatives. Being able to look online and see your team's wort communicateddigitally Is
imperative especially if you are working in a different timezone. You'll also be required to invest in some sort of video
-

6.4.3 Benefits of Virtual Project Management

Here are just a few benefits of the virtual project management structure.
1. Larger talent pool : When you are allowed to hire outside of city limits, you open yourself up to wider range of talent.
You could see the resume of a PM and find out they actuallymoved across the country one year ago. Wrth virtual project
mana~ement,you are stillable to bring them on board.
z. Cost-effective : Virtual project management is a way to hire great talent ~ ithout having to pay the moving costs of
bringingthem to your location.This can save you a lot of change, especiallyif your business hopes to hire internationally.
3. Help managers and employees grow : A remote work structure Is still new to many.New employeesmay push themselves
harder to prove it can work. In _other words, a remote team or a remote project manager may worlc harder than te~
that are in-house. ·

6.4.4 Challenges of Remote Work

Here are a few challengesof the virtual project management structure.
1. Time differences: If you are aaoss the world from all of your employees, chancesare you aren't workingthe same hours.
This can be difficult What if the accountant budgets a project Incorrectly and you need him on the phone immediatefy.
This is something to _consider in a remote environment.

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 project Leadership, Ethics,_Cl-.
• Project Mana emon\ MU 6·8 ettlng they are even more
to-fac.e s ., Ir\
1n a fac.e· unka tlons and try th · 1
2. Mlseommunlcat1ons ; Mlscommunltatlons are inevitable even d for mlscomm eir 1ci
remote-work cn11lronmenl.Virtual project managers have to be prepare 0 r pro1 . ect rnanagers have to find a d\~
0
over communicate to prevent them.When these miscommunIc.atlons " '
solution that reinforces a strong team bond. employee engagement such as tealTI tn....
3 • 01Sconnectlon to team : In a traditional setup team members are able to havet member It can be difficult so vou · "-
Being a remo e
hours, celebratorv dinners workshops and dally llfe together. d derstanding.
. , ' spec.t an un
likely to get to know your colleagues which In tum c.an decrease re te should stu dy up on remotet-...
. . o c.ompletely remo
ProJect managers wllllng to go virtual or any company hoping to g
best practices to understand how to make a dispersed team feel connec.ted.

6.5 Customer Acceptance -- 1

ct manager you must ensure that ._

ti n As a prole ,
- Customer acceptance is an important part of a project compIe O • h' ou need to implement an A~
. t To ensure t 1s Y
customer is satisfied with the deliverables produced by your pro1ec ·
Management Process. . b completed. By alln..-..._
. . . . th --•~
- This process allows the customer to sign off on each dehverable '°eP 1 . wi\l substantial\v increase,-
customer to approve deliverables as 100% complete as you move through ~he proJect, you
chances of project success.

6.5 .1 Getting Customer Acceptance

Acceptance Management is the process of reviewing deliverables wit in
. h' the project and gaining the 01Stm1w4,
- f h deliverable produced, you can :
acceptance that they are 100% complete. By gainingcustomer acceptance or eac
- Identify customer acceptance issues early in the project. .
- Improve deliverables to meet a customer's requirements .
- Maximi2e customer confidence in the delivery of the project.
- Keep customers happy and increase your chances of success.
Following are the steps to perform Project Acceptance Management :

Step 1 : Completeyour Oellverables

- Toe first step in the Acceptance Management Process is to identify the completion of each project deliverable. The prqlCl
team members inform the Project Manager that a dellverable ls complete and ls ready for acceptance testing.
- After the Project Manager considers t hat deliverable has been completed in Its entirety the Acceptance Test is initiated.
The Project Manage r might opt to perform the test Immediately or depend ing on the size and complexitv of the
deliverable, he or she may wait untll othe r related deliverables are also complete and test the entire group simultaneously.
Many Project Managers wait until the end of the Executionphase before they perform Acceptance 'Tests.

Step 2 : Perform AcceptanceTesting

_ Toe Project Manager schedules acceptance tests for deliverables produced by the project. These tests involve reviewinl
each deliverable to determine whether It meets the criteria stated In the Acceptance Plan. 'There are various t ·
methods you can use, lndudlng :

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 ,!~ p,oLect Managemenl(MU) 6-9
Physfcal inspectionof the deliverable
(ii) Third party audit of the deliverable
(iii) Analysisof the processes used to create the dellverable
(iv) Review of Project Plan re: time spent creating the deliverable
(v) Review of FinancialPlan re: cost of creatingthe deliverable
(vi) Review against the Quallty Plan re: qualityof the deliverable
_ To increase your chances of gaining customer sign-off, you may wish to Involve the customer in the acceptance testing
process itself. This gives the customer additional confidence that the deflverablesmeet the acceptance afteria and that
the testing methods used to determine the completionof each dellverable are comprehensiveand effective.
_ After the acceptance test is complete, the Project Manager commissionsany additional work needed to meet specified
acceptance criteria. Upon completfon of that additional work, the dellverable Is re-tested to determine whether it h3S
achieved the required level of quality.This process continues until the deliverableis ready for customer sign-off.
_ once the testing is complete and the deliverableis ready for sign-off, the Project Manager completes an A«eptance Form
within their project management templates, which describes the acceptance criteria and the overall results of the
acceptance test. This should give customers confidence that delivera~lesmeet their requirements in full and should be
accepted as 100% complete.
Step 3 : Gain Customer Acceptance
The customer reviews the AcceptanceForm and decides to :
o Commissionits own acceptance test
o Request further informationabout the testing activities
o Not approve the deliverableand raise a formal issue
o Approve the deliverableas 100% complete
- Throughoutthe AcceptanceManagement Process,the QualityManager keeps an AcceptanceRegister up-te>-dateto allow
the Project Managerto monitor and controlaccepta.nce of project deliverables.
- To gain the full customer acceptance of aH deliverables in your project, consider using these acceptance project
management templates: AcceptanceManagementProcess, AcceptanceForm and AcceptanceRegister.

6.6 Project Termination

Project termination is one of ttie most seriousdecisionsa project managementteam and its control board have to take. It
causes frustration for those stakeholders who sincerelybelieved that the project could produce the results they expected, or
still expect. The project manager, his team members and very Important· stakeholders of the project will feel that they
personally failed. They als~ will be scared of negative consequences for their careers; their motivation and consequently,
productivity will decrease significantly._

6.6.1 Steps to Avoid the Negative Consequences of Project Termination

1. Clearly communicated reasons why and how the projectsupports a strategy,and under what conditionsit does not
2. Clearly set and communicated project success criteria (In terms of scope, schedule,and budget), If possibleclearlyset and
communicated termination criteria.
rzfNI•
• • ,TNIC'
••,u,, ,••,

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 . Project Leadership, Ethics&.~
•
Project Management (MU) 6-1 O hing still seems to be on t,.,._.
h n when everyt . -""It
3. High level management attention, even for smaller projects, and even t e
4. Periodical review meetings with the control board lternatives, including termination
I solutions or a
5. Open discussions with the control board about problems and possib e d and high level managementto-.~
6. h control boar - "'WJQ&
In case the project has to be terminated, a clear commitment of t e t closure procedures
. • 11 the projec
the project management team In order to enable the team to fo ow and his or her team as With,... ._
Ject manager --.
7. Upon successful term ination, similar rewards and Incentives for the pro
project closure

Technical reasons
- Requirements or specifications of the project result are not clear or unrealiSt ic b h ged accordingly
. contract cannot e c an
- Requirements or specifications change fundamentally so that the underIying
- lack of project planning, especially risk management
The intended result or product of the project becomes obsolete, .1s no t any longer needed
Adequate human resources, tools, or material are not available
. h proj·ect cost or too low project revenue
- ,:he project profit become s significantlylower tha n expected, due to too h ig
The parent organization does not longer exist
- The parent organization changes its strategy, and the project do~s not support the new st rategy
- Force majeure (e.g. earthquake, flooding, etc.)
Necessary conditions disappear
lack of management support
lack of customer support

6.8 Various Types of Project Termination

Projects are a means by which organizational strategy is implemented, and may often have social,
environmental impacts that far outlast the projects themse~ves. Projects are time bound, and must term inate.
The substantive object ive of a project is to atta in the objectives and close t~e project . It Is important to finish well
remember s an effective startup, but everyone remembers an ineffective project termination; the consequences are DC
. .
lasting.
- Certa in projects are required to finish before target termination to remain competitive and to get faster ret\lrns on the
investment. On the other hand, many projects are aborted midstream, for both voluntary and involuntary reasons.
- As for voluntary motives , the business need for the project may no longer exist, and continuing the project will only
produce a "white elephant'' with little congruence or fit with organizational strategy . Legal prob lems and environmental
concerns may arise, necessitating the dlssolutlon of the project to avoid severe penalties that may exceed any benefit front
the project.

- o_n the other hand, involuntary failure of the project may _occur due to insufficient financial support, poor leadership, weak
front-end planning, and excessive negat ive Impacts of pro ject stakehold~rs.

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 Management MU)
proieCt e-, 1 P LM~ . Ethics & Oosute
I osslble to terminate a project that has not t ·
• tt iSalso p dvertlsed conference dates Wheth h a talned all Its objec.-tives. Such prolectshave fnfl~b le df!adlln~. such
s wide'.Y a has to terminate on the d.ue da er t e preparations and fine details of such a project,~ complete or not. the
3 ject itself te. This seems to be common where the dellverable1, ;1 ~rvfce.
pr0 j cts are terminated In the conve ti
~ot all pro e n ona1 sense. There are four funda~entally different Wav-J to tmnif.'31~ a
, 1ect:
p<0 tion by extinction : The proJe t b
rerniln3 c may e stopped because It has been either succ.essfufor unsuccesful.
til £)(an'lP1e5 of successful projects lnclude th e 1aunch of a software program; the Inauguration of an a1Jtomobile
roductlon line; and,. th e completion of a new school building. Unsuccessful projects may fndude a drtll m~;Ktute
~hat nas failed efficacy te sts; a project that Is no longer cost-effective;and, a disposal site that has fanf!d to mttt
. ental standards.
env1ro11111
rn'linationby addition : This Is where a project ls made more or less an external, but full-fledgedadditionto the
ii} re
( parent organiza · t·ion. For exampIe, a new department of a university would be built as an extension of
..,..,...,,.,.
. rsitY facilities to operate with substantial Independence from other segmentsof the institution.
un1ve .
·nation by Integration : This is the most common way of dealingwith successfulproJects,and the most COffllJln
1
(11"'l
1 rer111 The output of the project becomes part-and-parcel of the operating systems of the parent or dlent', becombrg
one\dded in day-to-~ay operations. This requires thorough integration with primary operations at various levels
ernb . . . f ct·
. ·butingthe output among existing un tons.
d1str1
. ation by starvation ·: As the term suggests, the financial, human, and material resources needed to aecut~
. 1 rer1111n . . · •
(iv oject are curtailed or withheld: The project is effectivelydead, and merely on minimal life.supportsystem for
::;a~~easons. Termination· by murder, or "projecticide" is an interesting variatiorr,where the incomph!te project is
terminatedwith~ut warning. · .

-
6.9
processto Terminating a Project
. . .
The closing phase of project management involves several steps. Work through the following cheddist to ensure your
project is successfullycompleted. ·
1. Formallytransfer all deliverables
The first step to closing out your project is to finali~~ ~nd.1transfer the project deliverablesto the dient. Go through your
project plan to identify all deliverables and make sure they have been fuHy co'!'pleted and handed off.

2. Confirm project completion

- Next confirm the project is complete. It's not enough to declare·a projectdone yourself. Each ~n lnvolYed needs
' h . ct' let•,· n before you can formally close It out and move on. If you skip this. step. you mav
to agree on t e proJe s comp 0
continue to receive and be charged for change requ·e sts by the client. . . •
· . . u wlll need to obtain approvals for the proJect deliverables 1.e.,. all
- To confirm the proJect's comple_tlon, yo · h I ct plan with official sign-offsfrom the proj«t •
h delivered on all parts O1 t e pro e
stakeholders must agree t at you · f that the projectclosewas formallysignedoff.
stakeholders.Be sure to docum·ent this st ep so you have proo
3· Review all contracts and documentation . .
. d received approvalsfrom the clients,you ~n begin closing out your
Once you have complet~d the proje~ .~ands•~ffan ensure all parties have been paid for the work and there are no
contracts.Review all the project documentation to
~n ding Invoices.

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 project Leadership, Ethics &

6-12
if Project Management(MU
rn rnernbers and any other Pa ·
4. Release resources II rs contractors, tea d officially release them so rt""'.
5
Formally release resources from the project, lncludlng supp e ' or obligatlon , an thtv 1ft
1 ayrnents ·
Notify them of the end of the project.Confirm any flna P
tree to work on other projects.
5• Conduct a post-mortem of the pro J·ect closure process. This is• a t1..
"'Ill•to
1uable steps it nit ies for improvem
A post-mortem or project review Is one of the moSt va d Identify oppo u . ent ...
review the successes, failures, and challenges of the project an
forward. j ct In other words, calculate the pr~--
. . w of the pro e . -,,ai;{s
As you begin your post-mortem, conduct a performance revie ·
performance in terms of cost, schedule,and quality. to get feedback on how the DrftL...
. t managernent team r·~

Next, conduct a survey or hold a meeting with the proJeC ·ct re of the pro ject's performance.
prehensfve P1 u
went. These individual answers will help paint a more com
. .
. d and op'portuniti
. then identify lessons 1earne es fiort1it
With the project performance and feedback m mmd, you can
future.

6. Archivedocumentation
. 1· 11 documentation (contracts, project plans.-
Once you have completed your project post-mortem, you can f ma ize a
. h' f r later .reference .Be sure to keep clear notes-
--,,:.
outline, costs, schedule, etc.) and index them in the company arc 1ves o · . ..,
· · ·· easily reference and implement them on ..;-..
the proJect's performance and improvement opportunities so you can -•-
projects in the future.

7. Celebrate
- The end of a pr?ject is a big accomplishment and r~presents the culmination of many hours of hard ~and -
dedication from a team of contributors . An end-of-project party is a great way to acknowledge your team'~ hanhat

and increase morale.

- Plus, a happy team is more likely to work with you in the future so you can build on your past successes and became
a m_ore effective unit going forward .Once the paperwork is filed , and the reviews are over, kick back and taketlmeto
celebrate the suc~essful close together-you h·ave earned itl

6.1 O Preparation of Final Reports

- The final report .is an internal project management tool which reviews th e imp
· Iementat,on
• process of the projed P~
:::~
presents the proJect's outcomes and results.

- It provides an opportunity for the project managers within the Imp! ement 1ng ent1t1. .es to summariz · d sure of the
_
project, the project's achievements, outl ine the problems encounte d
.
e, upon
re , as well as the good practices and lessons teamed-
°
The. final report should include a part icular focus on assessin g th e· extent to which th d • were
delivered, as illustrated by the indicators of achievement. . e expecte accomphsh"!'ents .

- In the final _report Implementing entit les are also requested t 0 eIab orate on the t · · the
presence of multiplier effects and supplementary funding. · sus amability of the projects' efforts,

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 ·eel Management (MU)
11.proJ 6-13
~r ftnal report represents, together With h -
P L
ro em oe.dershl , Ethics & Closure
rhe t e evaluation report k
, tmtability . The assessment contained th ' a ey tool for Information, !earning, tran sparency and
In e final report will bl
3cco
nalize t hem and make adjustments f f ena e Implementi ng entitles to dlstll lessons learned
;ntered promote the sharing of informatl or uture projects. It will also help the Project Manager to compile Jes.son;
1earn
. 'd on on good practices an d report to the General Assembly on results and Impacts
acl11eve .
combination of final and evaluation re
, rhe t"on and guarantee th d . port s for each completed proje ct offer s a unique opportunity to triangulate
inforrna I e soun ness of the project 's findings.
reports are drafted by project mana h
, fina1 gers In e Implementing entitles and should follow the outline provided In the
ort template.
reP
, rhe ftnal report muSt be submitted to the Project Management Team no later than three months after the finandal closure
of the project. Ideally, th e evaluation report should be submitted with the final report .
_ fhe table 6.10.l summarize s a number of key fea~ures of the fina l report for projects, as compared to the annual progress
report, as well as the evaluation report , which is also due three months after the operational completion of everyproject.

Table 6.10.1 : Annual Progress Report, Final Report and Evaluation Report for the DevelopmentAccount
Summarytable

..
: fEva~~rt . .

Internal monitoring Internal appraisal of project . Independent/external assessmentof project.

\scope
of project.
I Mandatory for all DA Mandatory for all DA proj ects. Mandatory for all DA projects with a budget
Type
projects. of $300,000 or more.

nmefra Should oe submitted For 9th tranche projects that closed by For 9th tranche projects that closed by
me by January 31st for December 2017, the final report should December 2017, the evaluation report should
the preceding year. be submitted by 31st March 2018. be submitted by 31st March 2018.
For 9th tranche projects that received°an For 9th tran che projects that received an
exceptional extension, the firial report exceptional extension, the evaluation report ·
should be submitted within 3 months of should be submitted ~ ithin, 3 months of the
the proj ect's operational closure. project 's operation~l closure.
The evaluation report should ideally be .
submitted with the final report.
External consultant ·hired by implementing
Drafter Project manager in Project manager In Implementing entity.
entity .
implementing entity .
2% of the total budget of the project is
Budget No fi nancial. No financial resources require d.
Initially budgeted to fund the evaluation.
resources required.
Should there be savings and need for
additional funds for evaluation, the 2" figure
can be revised upwards. I( the proposed
evaluation budget exceeds 4% of the project
budget, prior _approval needs to be received
from the DA•PMT.
....__
--- •T_......_..
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r .. Project Management (MU 6-14

AnnualPro,ress Final report

-Report . Id outline of the evaluation, lndudl11a .,
Template h
available Template containedIn t Is q ulck gu e. The rlteria, must be defined In H..
Format aluatlon c ""
at: ev the evaluation.
T0 Rfor
https://www.un.org/ aluat1ons should be conducted In
development/desa/d All ev . with UNEG Norms and Stan~rds;
conformity
a/static-guldance-
publfc/

6 10 1 Templates for Final Project Report d to ensure consistency in fonnatiffd

• . . cts In or er .
Th following template can be used when preparingfl naI reports on proJe . .
- e
content .
across all pro1ects. t the project. Fo 11 owm
• g a brief summary
. of r~
In Section 1 project managersare asked to recap basic lnformatio;r:aonuceindicators and activities (Sect.ion 3), o~lne the
(Section 2), project managers are then requested to re~lew perf ssons learned (Section 5) and elabora~~ on s~1na1111ty
challenges encountered (Section
. 4)• describegood practices andfunding
le . S). Alongside any add1t1onal informatton
(Section
(Section 6) multiplier effects (Section 7). and supplementary . f the project (Section 10).
(Section9),' projectmanagers_are finally
· asked to provi·de financial
I figures
. or .

1 Key Project Features

. I
I. Project title
II. ProjectDA code
Ill. ImplementingEntity
IV. Start date mm/yy
(Pleasespecifythe month and year In which the budgetallocation was received)
V. End date a. Original : mm/yy as per prodac
(Pleasespecifythe month and year of the project'scompletion) b. Actual date : mm/yy
VI. Beneficiarycountries
1. 4
(Pleaseprovide a completelist of the countriesthat benefitedfrom the project'sactivities) 2. s
VII. Implementingpartners
3. ...
UN system .Other partners
(Ple.ase list UN System and otherpartners(do not Includebeneficiarygovernments)
1. 1.
2. 2.
... ... -
2. Summary of Results

This section should be no longer than one page and ~hould provide a concise and effective narrative of the basic
accomplishments of the project. It should not repeat Information alr~ady provided (for instance, informatia"n presented In
the projectdocument) but should highlightresults, potential Impact and any relevant achievement related to the project's
implementation (including unexpected results, both positive and negative). If the project (or one If its parts) Is considered
!t
successstory should be dearly stated In this section. The Information repo rted In this section ~ight be used for the ~A
awebsite.

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 Management(MU)
rOjeCI 6•15
l' petalled
p Review of Achievement• and lrnplementatlon , Ettiics & Closure
1, ose of this section Is to understand h h
f11e purP d be done throug h the lfl ow t e project actually performed against what ft Intendedto accompltsh.
jl,iS shoul II th h "" tatlon of the Indicators of acht,vement that '"•" de..io .. d tn ffi• Prot«t
document as we as roug an assessmentof the Implementedactivities.
.e5 are kindly requested to fill In the tables are as follows ..
.1
Ent1t
6 th
In Table ,lO.i e comments column should be used to elaborate on the project's contrlbutlorr towards th-.
o achievement of the expected accomplishments; •
st
0 rable 6.10.3 should u , under each expected accomplishment,the set of activities that were actuallylmpll!fflentedby
the project. For each activity listed, project managersshould highlight whether the activity representsa variation from
the project' s initial design (project document) and, If so, in what ways (e.g. additional activity/changein actMty
initially envisioned etc.).

Table 6.10.2: R·evlew of Performancelndlcatora

_:.r,,
.,,.. ,,t

' , lcatrJr,of,
H~nt:
ci:1) Co.111••
. t_..,.
: •...4 --i # , •

EAl (~lease specify _the (Please elaborate on the P"Oln!SS

baseline , if mea sured at estimate or actual made on the EA based on the
the start of the project) values of the indicator indicator data or other ~nt
at the end of the data .)
project)
EA2

Tabl~ 6.1 o.3 • Revlew:.:.of:,:A,:c:.:;tl~vl;;:tf~es::-:::"":~--~~~~~-:-,

---~=-=--~ ~ci~ ~~~~~~ '' .'"'"' .., tolnrneats:
.

·ther~
. . .

(P 'lfy
e, actMt,
p~Je_ct'sdts,!gn.Sls~t···-~

shou)cJbe explainedUftdlr '~ 4

le~~blems en~JJ.
:.<f' '.'t ,l •
.

EAl

A.1.1

A.1.2
EA2

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 project Leadership , Ethics &

'!f_ project Management (MU) th

Ch•11enges/ProblemsEncounte~ h project, both in wms of e project's~
• faced bY t e •on (e g. change In co untry situ
4 1
Proi·ect managers are asked to elaborate on the prob ems rves etc. ) and 1mplementat1 . ti take n t o ad dress "\ion•
1 11 5 anY ac on
tvpe of activities, expected accomplishments , 0 bJee ' faced as we a
(e·g· ' ' ) All issues ' '
administrative processes, collaboration with partners , etc. ·
should be reported in the table 6.10 .4. ti ns
8 ndAC O
Table 6.10.4 : Challenges
Action(•) taken to so!v• th~ 1~ue.,, tf'~Y-
..,.
,

'.cf' It
Description of challenges ase indicate whet her and how it
1
(for each challenge, p e
(Please list all challengesfaced) was solved)

5. Good Pract ices and Key Lessons Learned · with respect to the desig n or exec ution of 1he
- In this section entities are requested to elaborate on good practices ,
project, which could be successfully replicated in future programm ing. nsidered important lesso ns for f. ... _
b
- The sect ion should also out line any releva nt finding that can e co "'wn!

programming.

6. Sustainability
This section should elabora te on the extent to which th e achievements of the projec t are likely to b e s usta ined beyond its
cornpleti~n, leading to durable , self-sustained results. It should alsc;> include reference to any follow-u p activity to the
project that was implemented or initiated by the entity or other partn ~rs following the completio n of th e project..

7. Multiplier Effects
This sect ion sho uld elabo rate on whether the project triggered processes for t h e replica tion of its activities, in other
participating countries, non-participating count ries, or, alternat ively, any plan to do so.

8. Supplementary Funding
- This section should elabo rate on whether add~tional fu nding (financial o r in-kin d) w as leveraged to further the
implementation of the project (e.g. secu ring additional part icipants at workshops, paying fo r ve nues/add itional
activities, etc.). In addre~s ing this section , implementing entities are asked to fill in t he table 6.10.5 .
- Ple~se note that supplementary funding does not refe r t o funds leveraged fo r projects ot her t h an the one being
rev1ew~d (fo)llow up activities to the p roject or spin-offs In other countries should b e reported in sect ions 6 and 7,
respective 1y .

~.>,;.~...,. ,:.,.'>••••.,.: .....,

. -~·, .
Co_!ltributlng-Entfty
f.Donor Purp_ose
sh USD) .· .'~

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 '1 proJect Management (MU

ftddftfonel .Info rmation

9. Pr
Ill this section any additional I f . Etfib Closur•
n ormau0 "
,rieetlng reports, publlcatlons W"b rt Ort the profect' ·
' "' sites t
the relevant UR Ls). , e c. should b s activitles, such ,u rel~nt
e mcnt1onf!d (If th pre~-. clfi>plnir: m~·
e lnformatlo 1 ' - '-' ~'-ISe
_ ffnancfs l Inform ation n s 30,.tllabl'! o-r.tJne, ole~ ,;~
10
project managers are asked to fill I
n the table 6.10.6 wit h ac
curate figures for each obj,.ct dau
-
Table 8.10.8
ObJect ~ • crtpUon .-
.A, Budget/Allotment(M
. '. . ca..,.
-

or,....,, - I,-. -'

ctass . B, Anftlon.to
' .. . } ~r Project dooum.nt) allotment.(Jf any)
C.1111111 ... .,. . ,
1111 .. 1
I • •
.
(USO)
L,.--- (Uta) ....... (UIDJ
01S
Other staff costs • General PIDt
temporary assistance
i'
i.....--- I
Consultants and experts l
10s
-11s Travel of staff l
I

contractual sen.:ices
120 -;

12s General operating .i

expenses

130 Suppliesand materials

l
Furniture and equipment
135 t
145 Workshops/Study tours
(Grants and contrib utions)

Total

6.11 Lesson Learned Analysis

- The lessons learned analysis fs a technique through which we can learn from our mistakesand successes;and ~e
our performance over time. This Is also known as the post-mortem analysis. Generally, this process is held near the
completion of a project, but It's more beneficial to hold It during the courseof projects. For example, whffl a milestoneha5
been achieved, we can hold a lesson learned analysis and act based on the learnins. There's no need to wait until the end
to act, especially if the lesson Is somethingeveryone can benefitfrom.
- The objective of the lessons learned sessions ls to share and apply the knowledge derived from both posltive and negative
experiences. Positive experiences are all the things that we would like to continue doing in the future. Negative
experiencesI on the other handI are those things. that we should never repeat.
- During a lessons learned analysls, an honest, no-penalty discussion is held with a man;aatr and his/her team. It is
frequently used for project work at strategic points and at a project's conclusion. It can also used to improve change
initiatives and for new assignments given to team members.

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 Projeet Lea~.~,
~•~~P~ro~
jec~\~M~e~n:ai:ge~m~e:n~q~
M~U!l_
)________ ~e~-1~6=-==-=-~~~~-===========-=:;::za-.-::~~
. g order :
lenom. teamed analysis answers flve questions In the followin
1. What did we expect to occur?
2. What actually happened?
3. What worked well and why?
4. What did not work and why?
S. What needs to be done differently? committed to continuous imprO\llei
I tional culture =. •'1111...
Use of lessons learned Is a principal component of an organ za. ·red knowledge more e ffectively and t!nlo-. -.
· icate acqu, -._.._
adaptive management . lessons learned mechanisms commun . 'ties
s and act1v1 .
beneficial Information is factored Into planning. work processe ' . ed likelihood of repeating:art1..._
d are the mcreas ---.L.
Consequences of not having a project review of lessons learne '""It
might have caused :
o Project failures
o Budget overru ns
o Scope creep
o Reduced quality from expectations
o Missed scheduled deadline
- _Lessons learned analysis provide the ir greatest value when they are
(i) Documented
Documentation of lessons learned should include naming the issue, a brief description of the problemor ~It
impact on the project (e.g. time, cost, scope, quaiity, schedule), and the process improvement
(lessons learned).
(Ii) Communicated
Next, it's important to communicate these lessons to the project stakeholders. The stakeholders should bea•d
the project review so it's a logical step to communicate lessons learned to them .
(iii) Archived
You should also archive and communicate this project's lessons learned to all project managers.
(iv) Fluid and adaptableto allow evolved conclusions
Finally, lessons learned needs to be open to the idea that alternative conclusions exist. Remember, cu ...
learned are based on the best Information available at the time of the conclusion. However, with time•
exper ience, our knowledge and Interp retation of the data might change.

6.11.1 Process of Lessons Learned Analysis

The process of Lesson Learned Analysis comprises fiv~ main elements : defining the prolect, collectingi~
verifying applicability, storage, and disseminat ion.

1. Definethe Project
This Is the Initial step where in the need for lessons learned analysis Is Identified and the process and team to r4tf!J
lessons are estab lished . It Is Important to establish the specific need. and purpose for lessons, the audi~ +.
\
I
product , and Individuals that should comprise the prolect team . Initial engageme nt from all key players 1 ·
\
- ------- - --- - --- ------------------------;::::;------;:.
.....

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 r
·eel Management MU
I. pro! 6·t9
blished in advance of the proJett Staff · • _ _P L1t"'1ttrt! • tJh~ .\ Cle!DJNt
esta I ti d , with specmc
s1ich as co~mun ca on an writing should be sel,cted Tt.llr>erttse or ~nowt~d~,. of l h! pr())~tt .Ind ott,-,r Med~d ,1t111,.,
and analysts meth odologies and Proces.s, dlssem1nat1on. he team ,h0\1ld then a1ree t,:, " product form.:,t, tfat.t roll~ctlt)li
stratellY,tnd othet actM tlt1s that wilt .. _ n•..rf• -'
• co11eet ue . • ~u,

,. . steP involves the collectlon of Inf

rh1S ormatlon through st t d

I
. . ues, writ t en forms, and meetlnBs Th rue ure ~s well as unstruttt Jred proces~e,; sud, 1tt prr,ject
cnt1Q • e collettlon of le
. . g 10 solicit. l essons learned can b b ssons may come from a, many ~outc"s tJ., ttn orpnf t.tfton is
,v,11,n e ased both upon posit!
ative experiences that result In undeslta ve exper1ent es that .Jdileve orianl atioo 8¢111, .md· M
neS r more importa nt as docume ti ble outcomes. For some ptojecu, a colh,boratlve leiso ns colll!Ctfon pr~~ an t\
L,e as O n ng the lessons.

,. verify and Synthesize

th
•1.i
In this
step, e a_ccuracy aryd appllcablllty of le~sons submitted are verified. Domain or subject matter m.1Y bf!
I d in coordinating and condu ....,
invo ve " ' ng reviews to determine whether or not a lesson Is rele'nnt across Mllff'f other
projects, is unique to a partlcular department or project , or applles to the otpn lzatlon as a whole.
\
J. store
f
In this step, t he lessons learned are stored which usually Involves Incorporati ng lessons Into electronlc datat, ~ fOf
fu:ur=sharing and dissemination . Information should be stored In a manner that allows users to identify search fetons
keiword.

5, Disseminate
The final and the most importa nt eleme nt is the dissemination of lessons learned. Lessons are of little benefitunless they_
are distributed and used by people who will benefit from them . Dlssemlnat.lon can indude the revision of a wctil process.
training, and routine distributi on via a variety of communi cation media. lessons can ·be "pushed," or automatkally.
delivered t o a user, or "pulled " in situat ions wh ere a user must manually search for them

6.11.2 The Lessons Learned

It is important t o know the sort of lessons do we need to capture and bulld in to planning future projects. FolJowtr.-.ar•
,ne common areas where lessons shou ld be learned :

1. Communications weaknesses

In gen~ral, lack of effe ctive communic atio n has always been an area of concerned In either proerammesor proje(ts.. It
includes managing key stakeholder expectat ions, managing third-party suppliers, etc. Having more. better and different
types of communication is vlta l and that might mean getting people together in the same room, face-to-face, to resoM
issues mor e effectively and devel op a clearer under standing of the brief and desired outcomes.
2- Management of risks and Issues

Risk and issues need to proact lvely addressed and owned by the project management team. Some peopfe's of
managing risk is a t ick-box act ivity rathe r than a necessltY to mitlaate project failure
3
· Obtaining the right resource• to get the Job done
Projectmanagers need to be aware of the resources hey require during the project. Very often., resource manacementls a
Problem. Therefore , It must be looked out for durlna the Lesson Learned Analysis.

• .... .....,
,-.,:;; ,. I\.

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r . Project Leadershi , Ethics & :""VS
r ,__
Ure
• Project Management(MU) 6-20

4 Clarity around roles and responslbllltles pMO takes over the running of the
· Project managers need to understand what's expected of t hem If thnager e Is not adhering
· t O PMO requirementsit
project/programme. There are differentskill-setsat work and If a project ma •
. .p. So, this is a kind of lesson we must look out for.
can affect the relat1onsh1

5 Managementof benefits me is certainly a lesson for na...

. the likely outco ..,.~l
If benefits are not actively managed or tracked through a programme, what the benefits are and whether they are
time. What you need is a realisticscope at the beginning;establishing clearly ht through the whole of the prograrnnit
• • d and tracked rI8
realisticand achievable? Thrs benefits profile should be deve1ope
and re-aligned if not unachievable.
6. Knowing when and how to stop a falllng project f • ibl Ot
the signs that project a11ure 1s poss e. her
It's about learning to have the confidenceto document and demonSt rate . ct end-date being contlnua11y
issues to look out for include stakeholder u-turns, benefits becoming unrealiSt lc or a proJe
extendedwhen it should really become "businessas us_ual".

6.11.3 How to Identifying Lessons Learned ?

The followingguidelinesset out ten key.steps to facilitating a lessons learned review.
1.
·
Call the meeting: If conductinga post-facto process, hold a face-to-f ace meet'in g as soon as you can after the project ends,
within weeks rather than months.
2.• Invite the right people: The project leader needs to attend as do key members of the project team. If a similar projectls
already underway, then th'ere is great value in the new project team attending a "cust_omer" for the knowledge.
3. Appointa facllltator: Identifya facilitator who was not closely Involved in the project. The facilitator should be someone
who can ask questions from an independent, but nonthreate ning standpoint. This isn't an audit, it's an investme nt.
4. Revisitthe objectivesand deliverables of the project: Ask "what did we set out to do?" and "what did we achieve?•
s. Go through the project step by step : Revisitthe project plan and identify any de~iation fr~m plan. Where were the delays
and what wentahead of schedule? What changed and why?
6. Ask a why Question : Ask "what' went well", "what were the successful steps towards achieving your obfectiver and
"what went really well in the project?"Ask a "why?" question several times. This is vital, and will get you to the root of the
reason. Don't take the initial response at face val_ue. Often people don't even realize what the under lying reason behinda
successor failure is.
7. Identifythe positives: Find out why certain aspects went well, and express the learning as guidelines for th e future. This
is a key point. Try to avoid expressinglessons learned In a passive, past tense, such as: "Project Foxtrot completed ahead
of schedule because the project team remal~ed in-tact throughout the design and execution stages".
8. Identifythe missed opportunities: Ask "what could have gone bette r?", "what were the ~spects that stopped you from
delivering even more?" Identifythe stumbling blocks and pitfalls, so they can be avoided in future by asking "what would
your advice be to futur~ project'teams, based on your experiences here?"
. .
9.
Ensure that partlclp~nts leave with their feelings acknowledged: Ask for "Marks out of ten" and "What would make it a
ten for you?" to access residual issues.

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 ,:1 project Management (MU
~, 6·21 . Project Leadership, Ethics & Closure
Record the meeting : Use quotes to e><pre th d
JO· b' b ss e epth of feeling. Express the recommendations as clearly, measurably and
1
unam iguous Y as poss! le, using th e guideline format e><plalned In point 7. Take a photogr~ph of the proJect team, and
ensure that you record contact Info ti (
. rma on e-mail and telephone) to make follow -up conversations easv for anyone
reading the lessons learned Ensure th t • ·
. · a you circulate the write-up around the participants for comment, and permission
to use specific quotes before sharing more widely.

6.12 Acknowledging Fallure and Success

5.12.1 Acknowledging Failure

- It is said, failure Is the pillar to success. But this holds true only when you acknowledge failure. An attempt to recogn ize
and overcome failure In projects and succeedIn future Initiatives can be challenging.
- If your project has been launched befor~ but failed for some reasons, most likely your team and other stakeholders have a
negative mindset towards it. But the failure reasonscan be addressedand a new project will be successful.
- · o f f ailed
A t h oroug h anaIys1s ; project can greatly help understand what was done wrong. You can develop feasible
solutions, and remove any barrier for future success.

6.12.1(a)Understand Why Projects Fall

- Many project management Initiatives fail at different stages of their life-cycle because of multiple reasons. The failure rate
varies greatly from project to proj~ct depending on thevr purpose, type, size and nature.
- For example, according to one of the studies conducted at the Gartner Research lab, it was found that the larger IT and
software development projects were stopped or terminated prior to their scheduled completion date because of
inadequate team building, lack of stakeholder commitment, and ineffective budgeting. The average failure rate for those IT
initiatives passed the 70% mark, which is critical, Gartner reported . The agency also pointed out that according to their
expectations for the current year, the tendency would remain ~e same, if not worse.
- In order to avoid the same fate for your future projects first you need to understand the reasons why your previous
initiatives failed and then learn what needs to be changed for greater success rate.

6.1 2.1 (b) Failure Reasons to Analyze

An analysis of previous projects and reasons for their failure can involve a great deal of options, from auditing documents
and reviewing deliverables to hoYdlng interv iews with stakeholders and evaluating solutions currently In place . When you
conduct the analysis, consider the following root causes for failed project management:

1. Wrong Team Organization : You need to explore the team organization chart to figure out whether wrong people
were Involved In the work, from leaders and sponsors to team members and personnel.
2. Poor Motivation : Try to find out whether the business organization provides the team with the right attitude and
motivation towards the work to be done.
3. Insufficient Technology capabllltles : Can you say that the project has been failed because of the wrong technology
selected and Insufficiency In the capabllltles to support what was needed?
4. Wrong Methodology: Analyze the methodology employed In the processes and explore wheth It .
. er was appropriate
to the project's procedure and change controls.

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 project Leadership, Ethice &. •

.ti Projec t Management(MU

5.22 k
ed in the mar et or po '
rr,ca1 environ~ .
_,,,_ thing that occurr . . . ti...
EnvironmentalAspects : Find out If there was some ·~
s. made the success unreachable. f schedu le, budget, scope and qualitv for
k constraints o I
Constraints Inappropriately Denned : Analyze the ey I defined reasonab y.
6. . h . ere orlglnal Y
appropriateness to the project and whether t ey w
t Management .
6.12.1 (c) Recognize the Changes In Failed Projec develop an approach that
. next step is t o . CotJ
_ Once you have Identified and understood the root causeS, your d the past projects to fail.
th issuesthatcause
overcomeproject failure by avoiding or add ress ing e • •t changes occurred in the
nd documenting any ,
_ A great portion of this task would Involve you In reviewing a ted and bette r motivation technlq
d t O the team were se Iec
proportional failed PM. For instance, prope r candl ates • • d fitting the performance goals or pe
. I b ame more efficient an .
employed, so that the overall team organizat on ec . h busine ss objectives is more sever-et£.
business environment was changed for better, and now the need to deliver t e --.i

ever. h .. h . d d .
· e figure out whet e r 1t as increase or ea-..
You must explore every change in failed project· managemen t pract ,c , -::-:-~
• ct implementa t ion. ·
d &
the likelihoodof success, and document the current nee ,or proJe
ate the resu lts to assess whet her the IWIII,,,.
- combine all of your records on the changes in a single sheet an d t hen aggre g . ..."I'll
is worth a new try. Hold a meeting with the stakeholders to highlight the changes a nd th eir impact to success and~-
on whether the new project should be undertaken at this time.

6.12.1(d)Adjust the Framework for the New Initiative

- The changes happened in the project enviro nment and increased t he s~ccess rate now need to be considered a~
constraints and goals of th e previous projects, so that you can assess what ~ompo nen ts a re still neede d today. You_
remove any unnecessary items or those Increasing the probabi lity of PM -failur e. Only the most critical components lat.
scope should be retai ned, a nd the objectives should be _concise as much as poss ible.
- According to the assess men~ of what needs to be included in or exclude d from the project sco pe, you can adjust 6t
curre nt PM framew ork for your new initiat ive to increase the chances for succeeding . Your adjustments will help the11111i
focus on the ·right objectives. You will in turn get improved awareness and buy-in from the stakeholders.

6.12.1(e) Be Optimistic to Overcome Project Failure

Being optimistic means demonstrating certa in behavior that makes everyone around believe that everything wili be(i.
regardless of how bad the things were in the past. In order to fight project . f~ilure , you must show an opt imistic a~
towards the new initiative , telli ng key stake holders that the new project's outcome will be quite different than dit
previous failures.

Do ~our best to address the natura l tendency to be sceptical about resurrect ing a fa iled project . Be persuas ive
motivate everyonet owards succeeding at the new Initiative.

Communicate the adjust ed framework of your project and ensure t he stakeholders that this project Is reframed In
current context. Tell about the lessons learned from pr~vious ~nsuccessful attempts and point out all those adjustments
that have ~een made to turn the new pro ject into success • .

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ef1 Project Management (MU)
6-23
s.12,1(f) Ways to OvercomeFailure Progt l.eadeBtip,Ethics & Cbwl8
In order fur you to succeed
. d b . 1n Project managem t I
initiative an e strongly committed to th en , a I of the stakeholders need to be entirely involved In your new
tolloWing aspects need to be addressed =· e success . Committing the key pfayers of your project meam that the
_ Efficient leadership, which h I .
e ps guide the team th
h th
sufficient funding which roug e Implementation life-cycle.
, ensures the needed fi
_ Proper Communicati b nances aod technology are fn place.
on, ecause the attitud
continuously communicate With es a nd engagement of some stakeholders may change aver time. you must

-
enthusiasm won't bed
I
epeted.
Closely collaborate with lead
changes that could
II
a stakeholder groups to ensure that the project won't lose its momentum and that the

d .
. ers an supervisors to keep track of any Issues In the team environment and detect and solve
l
negatiVely Impact Your project .
th
- Succeedk in PM rough Con~nuous Analysis. Even if your previous failures are considered, the lessons are learned. lhe
sta eholders ate committed d
' an Your new project is initiated, you must expect · for a more challenging process that
ultimately brings the job to a successful dose. .

6.12.2 Acknowledging Success

- How often do you celebrate project ~uccess? Celebrating project completion and spedfically successful completion means
acknowledging successand mind yau, that's very important.
. .

- Most companies do n'ot celebrate ends . They think the completion· of a project is a reward in itself. But they are wrong.
Achievements . and outstanding effort deserve acknowledgement. Take a moment to reflect and feel proud of
accom~lishments. These moments are rare, and too often leaders fail to savour them but rather rush full..speeci ahead
into the next tunnel.
- Even when we do celebrate, perhaps too often the focus is on celebrating once the project is over. That can often be after
several years of hard constant work. No one feels like celebrating when this is the case. They are all just glad that the
project is over.
- Th~t' s wf:ly it is important for the moral of the team that you celebrate project success along the way.
Consider celebrating at the following point along the project journey :
1. . Project Kickoff : If you gather the team together and do a formal meet and greet, so that everyone gets to know
·who's on the 'Team' then there is an opportunity to have an afternoon tea, or pizza lunch to celebrate everyone
being on board fur the project. doing this, you will find that there is more team cohesion. It is simply because
people realize they are part of a team this way. They see the others who will be working beside them. This helps
then know who they can talk to about the project and any issues that arise, as they arise.So consider a small, kickoff
celebration
2. When key project · deliverables are completed : Sometimes it's great celebrating when the key deli~rables are
completed . There might be several phases within the project . And within those phases are key deliverables. Just
stop and celebrate the deliverables being finished. The teams will appreciate the break, even If it Is only for an hour.
What yo~ will notice by ha~ng such celebrations Is ~hat the1eam appreciates being acknowledged for the hard work
they have ju~ completed. It gives them the recognition they deserve, and In that, ~ou notice they are more willing to

• •••" .. ~•••••
. ~,.. , s ,,·

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 6-24
Mana t M t teams become lethargic and compl
go back to wori( and achieve more. Without the acknowledgem:," •,ck up the pace, if anything. Acknuw11111.
oftentimes slow down In delivery. What you want Is for them t p .
th
with celebrating success will surely do at. • .-nanise the hard wor1c aocs
h . eframes and don t re...,,.,
3•
WhM tflht tfmeframes are met : Often, we set llg t t,m d t·,me Is valuable. Again the
wh th' Is complete on •
required to meet those tlmeframes. Celebrating en is ·ir ess to go the extra mile for the
hleved Their moral and W1 engn
recognized for the great worlt they have ac · d sonally thanks them for their harf
increase, especiallyif the Project Sponsor or Project owner comes In an per f bl I ·h
f the tea m together or a g unc . lhat
4. Celebr;ite the successful completion of the proJKt : Get as many o
key members of the Project Control Board can attend, as well as the p:~:
appreciation for the project team. If it is at all possible to get th e remote t
. ct S onsor to formally
m:mbers to attend this
h d
means, then do so. It Is important that they hear the spoken words of these key people first an ·

6.12.3 Key Points of Celebration

Projects are completed every day. While some aren't as successful as others, most organizations treat ~II those
th
the same way with deafening silence or at most, a· sigh of relief. Effective leaders and project mana gers '"k about how
will reward, recognize, and yes, celebrate project success. Experience and observa tion shows that many leaders dan't do
well. following given are five things to consider when celebrating a successful proj~ct. It helps all of us getting better at '1lfi
important activity.
1. Be a~r on what you are Celebrating : If there were dear goals and targets when the project began, there is a ...,_
likelihood they will be reached, and there will be a dearer reason to celebra te when those targets are reached.
something to celebrate isn' t the biggest or best reason to have dear goa ls and targets, but it is one to .add to the fist.
2. Focus on Effortand Results: We should celebrate success for sure. But sometimes, on big and complex projects,
and total success might not be achieved. That doesn't mean there isn't value in the effort. Focusing only on
activity cheats people of the meani ng that comes from achievement. Yet, we can celebrate effort. diligence, loyalty,
commitment too.
3. Show Real Appreciation: If the project was important, there shquld be heart-felt appreciation when it is completed.As
leader, be personaJly invested in the celebration. If you simply assign it to one person, or worse, make the celebration
more project task, it will feel hollow and mean ingless. Spend time and energy to make su~ that however you celebr•
people know you truly appreciate thei~ work and success .
4. Make it Their Celebration : While you should be personally invested and involved, the celebration is for the team, so It
should be something that they appreciate and like. Ask people how they would like to-celebrate . Find out what wouldbe.
meaningful and fun for them . Consider putting that discussion right at the front end of the project . When people
what might happen when they achieve a goal, it a~ds one more reason to succeed, and something to look for«ard to.
5. Think about More than a take : Remember, Celebrations can include food of course, but there are " many other ways1D
celebrate, too. Creativity rath~r than another cake might help people see how muqt you appreciate their wo.,._ and (Alie,
a lasting memory as well. Done well, celebrations can shape your company culture, increasing job satisfaction and \all"
term retention of team members. · •

- Celebrating success is more than just a good or nice Idea, or even the right thing to do . It can provide meaning,
teamwork , and help achieve even greater success .

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 project ManaQement(MU)
y- ' 8-25
c. 13 Project Management S ftw
~ - o are
project management software 1 ·
, . I s a cornputer program th h
initiate, P an, execute, monitor and I at elps peopl~ Involved In the project managfflient pr~s to
. ·t· b c ose projectsof any 5I d
and actiVi 1es, uild schedules and ti . ze an type. It Is designedto plan and document pro~ t.JSb
. mehnes solve . . I
costs, establish collaboration d ' . proJect ssues, manage risks and threats assign budgets and c.ontrol
. an cooperation betw . , .
teams and organize human re . een project participants,assure and controf qualfty, a.ssemble protect
sources, and share Information
The list of project management 11 ·
- allow you to take VO . so tware capabllitlesis large enough but the main idea of PM applicationsortw.. e is to
ur PfOJect through II th st · 1
through project execur a e ages of project lire cycle, from project conceptuallzatlon and rnltJat on
ron, control and completion.
_ llle importance of project ma .
. nagement softwareconsists In providing you with toots that allow kl!eplngahead of nvals
d
an con nuous1y working on •
ti .
. Improvementof tasks, services and processes with very short tlme-to-market. The beSt
software
. for ProJect
. management srgn • 10cantly helps achievesuccess In developing,producingand deliveringyour product
allowing combrningproiectJ
act1
· ·t·
v, tes wit· h cross-functionalexpertise.
- Project management software helps project managers and their teams to complete project as per dient's requirements
and manage time, budget, and scope constraints.

6.13.1 Types of Project ManagementSoftware

(i) Online : Many small and medium-sizedbusinesses across dif:.:rent industriesare now using online project management
software. "!'his type of software uses doud-based technology ·and is offered by application.service providers as software-
as-a-service (SaaS). Nowadays, these applications are expanding their functions and crossing boundarieS with th e;r
combinationof features, and these complicateeven more the user's selection process.
(ii) On-premise : Typically resides in the company's own server, which is located in the data center and managed by th e
con,pany's IT employees.An exampleof on-premise PM software is M~crosoft Project.
Types of Online Project Management Software Industry
(i) Simple : A simple project management software may have fewer features that cover basic functionality, but this does not
make them inferior, and may, in fact. be all that is needed by start-lips or small- to -medium-sized businesses. Features
included in this type of software are task management, team collaboration,learning materials, email integration ,' and file
management.
(ii) Comprehensive: A comprehensive type has more features that cover core project management functions such as
scheduling, resource management, and financial management on top of a more advanced task management feature.
Using this type of software is also more expensive. However, it provides more accurate estimates. better control on
dependencies, and real-time progress tracking.It is also more complexto use and require more time from its users. Larger
organizationsand project teams prefer them, especiallyfor more complex projects.

6.13.2 Project Managem~nt Software Features

1. Task Management :This is the ability to ,create tasks and manage them during the entire process. Furthermore, the
software should have .the abilityto set dependencies on the task, create and manage subtasks from larger tasks, set a task
to repeat or recur at a specified time or date, and allow the assigningof more than one user to a task. The ability to import
a list of tasks from an external file such as a spreadsheet should also be included in the task management feature .

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 project Leadership,~

• Project Management{MU) 6-2Ei b

f team mem ers
to not only communicate
I ·1
but~
-~'----
2.. Team Collaboration : The feature that allows anv number o . I ce for creating discuss ons east Y, --~·'
'de Vlrtua spa . . t
related dlscus.sion Is a must The application should provi d fficat ions as well as pnva e m~llt
. f alerts an no , , "'
and thread, create documents and share thfm , allows or flt
many recipients . t mater ials that can get any team .
3. Leaming Materials: The project management software
should have adequa e .
. That means catering to all kmds of
8'..._ •
nd
regardless of level of computer proficiency, to hit the grou running. binars or by using the ~as~
by rtldpatlng 1n we ' -,
they team well by reading artides , by watching videos, pa d vote more time quickly to -
along. The software that can shorte n the leamlng curve also allows users to e · · · -~ ..,..1-r.
actual job. ff ctively ,
PM app that can integrate e e With ental\
4.. Email b1tecJ ation : Email may be the most popular application, so a h it has signmcantJy inaeasect
high value . If the software can receive and send emails within the program, tf ent pdates and new taslcs or -~
.1 be the source o sta us u ' an-....
by minimizing the time to switch applications. Ema, can r·-.•
reports can be sent by email to an already defined list. .
. • ge files and documen ts directty with or----.
5. Document Manacement: This is the ability of the PM apphcat1onto mana . --.
• h. 53f tral storage of dOOJments, the ability to -.....
using a third-party solution. The important features include t e e cen · . --.
documents l"o tasks put notes and comments to uploaded documents, upload multiple documents using
organize documents• in fulde~ and have version control over them . The on line PM app may provide the storage • •
integrate smoothly ma third-party solution that provides iL
6.- Mobile : Project teams do not usually sit behind deslcs all the time . Team members can be at a dient"s site or a
branch performing their woric. Therefore, it is a key fe~ture that the chosen PM software has the ability tD be used wlba
~artphone . This means that the software should have AP ls for iOS and Android mobile devices.

6.13.3 f>roiectManagement Software Functions

1. Planning: While following the project management basics, you should start your project with planning its main tasks n
activities. Deadlines, due dates , time frames, timelines, durations , priorities, are those characteristics · of tasks tD bl
planned at the very beginning. The best software for project ~anagement will let you plan project tasks.
2. Tracking:Once the main tasks of your project have been planned, it is time to perform and track the t:aslcs..Trac:m,.isa
activity of monitoring and controlling tasks. Project management application program will let you use trackingtoals1D
monitor and control your tasks and ensure the project is running in schedule .
3 Measuring : Without measuring you cannot be sure that your project is undertaken as expected. Bv means of prajell
management application software, you can use fonnulas to create and apply key performance indicators lKPtsl and
measures .
4. Reporting : At the dosure of your project, you need to generate reports that show current progress of the projed and
status of its tasks. Project management application system will allow you to develop project reports and revieW S
complete per task and per goal.

6.13.4 Benefits of Project Management Software

1. Coll~ on Projects: People frequently designate Individual tasks which are part of a bigger project the whole teanaIs
trying to complete. Project management software gives employees a method to collaborate on projects by dtscns•
documents, timelines, outstand ing work, etc. •

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 r I

I project Management (MU) a-v . Profod lMdmsNg,0hk:s & aosure

Y.:rn al and Ellt!!rnalCommun1..-1-.... f1 concemin8
l· rn d projects both -- : Projttt Management softwarf!de-Yelopsa funtM!f fM communlea on
5 1
1a kS an ntemally, but also extemallyWith dients and other stakeholders.
9udget Management : Budgets . The way forward
b
I
d . are among one of the most Important Items In controlllr1gyour pr~ -
,. for anv. us ness epends on how well you can deltwr within t~ budgets provided. ProJKt manag,ement softwatt M ps
the ProJect Manager to determine the work budget (planned versus actual), so the work can aligr,edaa:ordfngfy.
Monitoring : To attain long-term of the wo,1c K essential.
4. · success for Just about any busl~s monitoring the P"<>Vess ·
oedicat~d software plays an Important role In monitoring the stages ,of projects, and can provide insigfrts Into whether
things will complete on time or not.

s. oocument Sharfn~: Documentsharing, whether Inside the tool 04' In a Integrated 3rd party system , enables to find
r,,ore comprehensrve documents, wlreframes,SpecificatJons, etc., which enabtes transparency and communic3tkJn •
. tio with OJ with di ts and
6. cornniunica n ents and Suppliers : Companies should be able to talk to and c.oflaborate ,en
~uppliers from the same place. Companiesusing project management software should offer ther dients the ability to log
in and view only th eir relevant project data. This way, d lents can provide direct feedbadc, matte edits and reviC!!'W prug, ess
in the same place.
i. optimized Decision Making: Project management software solutions assist In making the right deci:sionSas you h.rve aJI
the details in one designated place. Hence the decisionprocess is enhanced and much more accur.rte-
s. Enhanced Customer Satisfaction : When you get a project done promptJy and under budget. the die:nt walks 'JWiJY with a
smile on their face - and a satisfied customer is one you will see again. Smart project management softwa~ lhe
tools which allow this customer/supplier relationshipto carry on. By applying fundamental project management.software
strategies,you'll narrow your focus, achieve your goals and improveyour deliverabifrtyand rate of success..

6.13_.5 Microsoft Project

_ Microsoft Project is a project management software program developed and sold by Miaosoft. It was designed to assist a
project manager in developing a schedule, assilr,ing resources to tasks, tracking prog,ess. managing the budget. and
analyzingworkloads.
- MS Project creates budgets based on assignment wort and resource rates. As resources are as.signed to tasks and
assignment wort f!St:imated,the program cal~lates the cost, equal to the wort times the rate, which rolls up to the task
level and then to any summary task, and finallyto the project level.
I

- Each resource can have its own calendar, which defines what days and·shifts a resource is available. Microsoft Project is
not suitable for solving problems of available materfals (resources) constrain~ production. Additional software ls
necessary to manage a complgxtacilitythat produces physical goods.

6, 13.S{a) Project Management Features of MS Project

- Resource definitions (people, equipment and materials) can be shared between projects using a shared resource pool.
Each resource can have its own calendar which defines what days and shifts a resource Is a~ilable.
- Resource rates are used to calrulate resource assignment costs which are rolled up and summarized the resource level .
- Each resource can be assigned to multiple tasks. In multiple plans and each task can be assigned multiple re.sources.
MicrosoftProject schedules task wort based on the resource availabilityas defined in the resource calendars. All resources
can be defined in an enterprise resource pool.

..~-.... .....
, , ,-"
$

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 P ·ec1 Mana emont MU) 6-28 ates As resources are assigned to~
k and resource r .· es the rate. This rolls up to Ill~
Miaosoft Project aeates budgets based on assignment wor uals the work tlm
I t the cost eq
assignment work estimated , Microsoft Project calcu a es W b Access Pro
I
level, then to any summary tasks and finallyto the project leve · d Microsoft Project e ·· iett'
·ect server an
Miaosoft Project has been extended with Microsoft omce ProJ .
. b Access allows authorized ._
stores ProJect data In a central database . h Internet . We ~tQ
d th is data c:Jl/er t e ets graph ical analysis of
Project Web Access allows user to display and up ate ·ncludes t imeshe '
. th t Web Access •
acx:ess a Project Server database across e lnteme ·
workloads and administrative too ls. f s can have differing access levels to
d'ff
I
nt classes o user '
Microsoft recognizes different dasses of users. These ere _
views and other data . d in an enterprise global database, _.... Is
d fields are store
Custom objects such as calendars, views, tables, fi Iters an
shared by all users. . among tasks, It can aeate COllSbaints_-
. stablish dependencies .
MS Project does more than just aeate a schedule it can e ch
. d le performance over the durationaf the
. · wing cost and s e u
can resolve resource conflicts, and it can also he IP in revie
project. _So it does help in more than just ae ating a Schedule.
MS projects gives answers to following project-related questions.
For example
o Why this project needs to be run by the organization 1
o What's the best way to communicate project details to the stakeholders 1

0 What is the risk management plan ?

0 How the vendors are ·going to be managed ?
0 How the project is tracked and monitored ?
0 How the quality is measured and qualified ?
MS Project can help you
o Visualize your project plan in standa rd defined formats. (

0 Schedule tasks and resources consistently and effectively.

0 Track information about the work, duration, and resource requirements for your project .

0 Generate reports to share in progress meetings .

6.14 ProjectManagementTemplates
- ~reat ing all the documents related with a project from scratch waste a monumental amount of time. This is why f!!#ffV
project manager usually has a trusted arsenal of project management templates these days.
- Using templates not only improves your · efficiency, it also brings much-needed standardization to your proled
management process . Instead of creating documents on an ad-hoc basis, you can have a single template for e1ery f\indiOft
that can be used across the organization.
Borrowing pre-made templates ca~ also ensure that you use best practices in your planning and reporting. If a tefflPltll
has proven to be successful in one organization , there Is a good chance It will be useful in yours as well. .
There are ·a number of project m~nagement templates on line, but few centrally organized resources.

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 -!d project Management(MU)
• 6-29 P"°f:'9LG8dorShfp, EJt,Jca & CJoacJffl
~owto Use Project Management Templates ?
Most PM templates are made In Ms Ex • 1y downlOINf
' o· ct fil Ii ks eel. A few text-heavyones use MS Word. To use these templat~ , itmp
1hem. ,re , e n are markedspecifically.
, have to give up your email address In exchange for ttM! me Once downloaded,f!dit them wtth you,
In some ~ses, you WIii
wn details and export In your h f --sourer
0 c osen onnat. If you don't have Excel or W0td you can use ubre<>fflceas an open
alternative. Alternatively,upload the file to G '
your oogle MyDrlveaccount.
5t
6.14.1 Mo C~mmon Project ManagementTemplates
_ _1(a) Project Charter Template
6 14
, T}lis is an important document template that outlines the scope, objectives, and stakeho4dersinvotYed In the project. tt
documents everythingth e project needs and its expectedoutcomes.
- T}le project charter also doubles up as a business case document. In case· you need to convtnce stakeholders of the
importance of a project, or outline the goalsto your team, you will tum to the project charter.
_ Whether you are using one of the project charter templates or creating one from scratd'I, there are a few e-fementsyou
should always indude:
1. Project titl~ : 5tart with the title. Make sure it is specificenough to make identification easier. A good template to
follow is this - •[ProjectType) to [ProjectObjective]for (ProjectOient/Product
2. Executivesummary: In dude a high-levelsummaryof the project, its purpose, and its stakeholders.
¥

3. Project objectives : Explainthe •why" of the purpose In greater detail. Be very specificabout the outcomes you sttk.
It's a good idea to indude specific numbers or at least a _range. Don't say "increase traffic• ; say •j~ase websit~
traffic by 200% in 6 months". -
4. Business objectives : Use this section to describe how the project fits Into the business' broader sbategic goals. For
instance, if you are ruMing a campaignto increasetraffic to a website, describe how the highef"traffic would hetp the
business in achievingits goals.
s. Project requirements : Explainthe project's requirements in terms of resources - both tangible and intangible - at a
high-level.
6. Project scope : Use this section to answer the question: •what is the project meant to accomplish?" Focus on both
long and short-term goals and objectives,but briefly.
7. Key deliverables: Brieflylist the key deliverablesat different milestones.
s. Project schedule : Give a high-level overviewof the project's estimated schedule. You don't hiM! to be accurate
down to the day, but a broad explanationof key milestoneswill help.
9. Project budget : Give a high-level desaipti~n of the project's budget. You can break this down by resource
requirements if you want to go Into more detail.

6.14.1(b)ProjectPlan Template
There is no fixed •recipe" for making a project plan. You can be as detailed or superficial as you need to be. Unlike the
project charter, which is meant for stakeholders on both sides of the table, the project plan ls mostly to cue you and your team
into the project and its goals.

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6-30

Here are some things you ~n Include In the project plan Templat e : description, 10, dlent. 1
I dud ing Its name, nd ....._
1. ProJect ldentfflcation : lndude deta lls about the prolcd , n ·
manager's name . vou can also Include a counter I~
2• th
Prolectdates : Ident ify the start and estlmate _d end date of e pro)ect . · '-
number of days lef\ until the end date . f llestones accompllst, ....
I ted so far In terms o m ~-
3. Progress : Mention how much of the project has been comp e . d r bl d
f k tasks, actlvitles or e ivera es, emn.t....
4.
.
Tasks/acthritlesfdeltverables: You can lnd ude a broad overview
O
ey fOcus on deliverables whll~ ;-.Ill\
the level of granularity . In comp lex projects, for Instance, you might want to ' ....

projects , vou can specify the exact tasks needed to produce said deliverables .
· h team or person responsible for It, and the....._
5. Task detans: lndude details about each task' s start and end dates, t e , -.
status.
n nd
6. Timellneor Gantt cmirt : You can also Include a tlmeline or Gantt chart showing depeode cies a progressfo,..
task.

6.14.1(c) ProJect .Status Reports Template

Creating project status reports is the bread and butter of any project manager 's job. You'll have to aeate weedy, mo.dlr.
and even daily reports to·atert stakeholders about the health of the project. ·ereatlng effective reports ls an art; VoU haveta1-
detailed but succinct.
,.,
Make sure to indude the following in this template :

'
1. Task progress : dearty identify all tasks that have been accomplished since the last reporting period,what you
on rurrently , and what's com ing up in the next reporting period .
,we..-..
l
\ 2. Issues, risks and change requests : Ust all current issues and their status (open, dosed, pending}. Also list changerequms,
and their history. Your goal should be to alert stakeholders about any Issues that need their immediate attention.
. 3. Milestones and deliverable: Identify all milestones completed since . the las~ reporting period. Also identify
milestones and deliverables as well as their start/finish dates.

6.14.l(d)Work Schedules Template

As a project manage .r, one of your core responsibilities is managing your team's schedule . What task each empoyee has to
work on, on what days , and for ho_w many hours ls essential fur running a project smoothly .
Most managers tum to weekly, bi-weekly, or monthly work schedules to manage their team's activities. A
template usually have the following components :
o A title identifying the type of schedule (weekly, bl-weekly, etc.)
o The scheduled date or period
o The name of the employee
o Work assigned to the employee
o Number of hours assigned to each task on each day of the week

As far as project management documents go, work schedules are fairly straightforward .

l
ll

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 {f.. project Management Mu

6.14.1(e)Workereakdo wn Struct urea

·
8-31
.
'fhe work breakdowns--- • <WBS) Tempi
, uucture~ • Bhica & Closure
It involves breaking dawn °ne of the
deflYerabtes more '"'P<>rtant doc
A work breakdoWn --....... Into smaller ,.._ urnents You'll create In the r~,
- .. u,.,ure C • ""'re manage bl '"""'Be of managing ,_..,
4.5 le vels of deco . an have as rn a e chunks. . a ,.. VJect.
. rnp0S1t1on. The any le-.-e1s as nec:es
package describes all th deliverables sary, but for most projects ,
. e Work neces.sa . at the last level of , vou won t ntttt to go beyond
,
.
creat mg a wor
k breakd ry to treat ea single dellv any WBS are c:a1•~ •
o.:u a wofic package• . A won
oWn struct erable . A project th . .
understand the proJect's ure requires a dear . , en, is a collect.1onof won packages_
SCope, list dellvera Understanding of What a WBS
6.14.1(f) Timesheets Template bles, and determine Work packages. Ktua lly i~ You also need to

Another one of "our

r·
..... po ns,'biliti
·-=
. . es as a project
this not JUst to track producttVity b manager Is to track and report h . .
ut also to create client r ow your team spends its time. You'U need
_ An automated time tracking soi . _ eports. .
.. ution built Into vour project .
Ama11g can track what your team is d . management software is ideal for this purpose. Tools Ake Wortc
oing and aeate detailed re o .
- However, in case you don't have P rts for dients.
access to a time tracking tool, you can also use . esheets
_ You'll want to indude th fi 11 . . tim and fill them up manually .
. e o owrng details In your timesheets :
o Numbe r of billable hours worlc~dby task
0 Number of billable hours worked by dlent
0 Team member details (name, position, contact detaiis, eJc.)

6.14.1(g) Communication __Plans Template

- As project managers like to say, communication is about 90% of their job.From delegating tastes and solving issues to
keeping stakeholders ·updated on the what. why, and whe~ of the project, you'll spend most of your time communicating.A
solid communication plan will make your job infinitely easier.
- Communication plans help you communicate faster, anticipate client needs, alert your team about issues before they
happen, and standardize communlcatio~ aero~ your entire organization.Anywell-rounded communication plan template
should indude the following:

o A list of stakeholders on both sides of the table

0 The interest, influence, and objects of each stakeholder .

, ti' preferences In terms of frequency, tone, fonnat, and deliverables
0 Every stakeholders co_mmun1ca on . ·.
. ti plan to manageboth one-off and recurringmeetings
0 Event-specific commun 1ca on
· . tfon plan to deal with contingencies
0 Emerge~cvcommumca

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 Pr

6.15 Managing Without Authority

wJlt anll profu~~lonal~ cha
,
1,.n't .-. new wnn.iolnf'
- Managing teams without d irect autho rity over the pnrtlc.lpnnt'I Indire ct report~ at
. . d thcm~dves ma ' o ,
organizational leadersh ip rcspon slbllltlcs arc 3fmost ecertalnto fin
the ir careers . b I
ect rt!port~ contrl ute to pro ect 10111....._
t O fnll While Indir • .,...
- Ir you are new to this, you might feel as though you are set up ' • "d tied llne ." And manag ing th~ ,.__
O
have defined deliverab les, they are connected to project Ie3 d er!>hip throuv.h
,
a
f
· --.
this expe rien ce can be ln<qlua""-
• I •• r. you learn rom -.
often doesn t come with Input Into HR•rel;,tcd Issues. Out the C:;, on

Ways to lead Without Authority

d n agewllllngly rather than followtng dfrecu..
The goal of managing without authority Is to get others cooperate an e 8 d t pero•nal skllls that form"--......_
. di f er sona l an In er .,.., u..:-.
because you are the boss. This nC?W style of leadership Is a blen ng O P
of a leader's ability to impact, influence, and inspire others .n
11 h time these days . We all have certain levttsQf
Managing well without authority is entire ly possible and people do It a t e
• I • me have authority ba!>ed on the ir expe,Usea,
influence in our work.. Some have the Influence that tics lo their posit on, so
resources . And everyone can develop Influence by bulldl~g strong relationships .

6.15.1 Strategies to Help You Manage Without Authority

L Understand what motivates the team : What is each team member 's motivati on for being successful? One may be dlWln
by the promise of earning more money, while another Is excited to be able to make contributions . Motivation may be.
intrinsic or extrinsic. Intrinsic motivation means he or she will take action because It is personally rewarding. Extrinsic
motivation oc.curs when we are motivated to perform an activity to earn a reward or avoid punishment.
2. Create visibility for your team : Talk to the managers who are responsible for your team members ' careen about wtlat
they are doing. Find ways to support and praise the team publicly. Advocate for th em and help create visibility company.
wide .
3. Hold disaessilQnS with the team at the outset : Set the expectations about communication channels; how you wll
communicate with each other and how the team is expected to communicate with you . Explain what hours you expett
they will be available and what channels they will use to reach you. Be specific about the kind of Information you expect to.
receive and how frequently you anticipate hearing from them. Make it clear that you are very interested in keesilna
commun ication open at all times.
4. Define the roles and responsfbilltfes for your team : Take the time to represent what you expect from each of them
dearly and tie those expectations Into the motivators you have determined will be effective for each person. Establishln&
dearly defined roles and responsibilities lessen the chances of duplication of effort or frustration between the various
people you are managing on the project .

5. Help the team understand you support their Image and brand : Be transparen, . Let them know that you will foster,
networ1c and generally be supportive of them, so they know that they are not worldng In an Isolated bubble . Remind them
that just because they aren't report ing to their manager for this pro}ect doesn't mean there Isn't company •wlde vlslb\lltV,
and organizational visibility and the ir reputation at stake . Help them understand that the ir behavior and their
performance in this projea can and will impact them positively or negatively In the larger company setting .

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14 projectManagement MU
lf_ · 633
.i 6 Other Areas of Study In p · P ect Leederstf • Ethics & Closure
6 roJect Management
In today's era, Project manageme
,, . b . nt Is no longer th
Is
developing usmess domain. It always d e same old st agnant platform. Instead, it Is a constantly ewlving and
h. a vised to keep updat d with h .
The reason be md the fact Is that' P e t e changtng project maniigement trends.
' f I · I roJett managem t I5 fl
range O geo ogica ly diverse lndust I en a eld that entwines Itself through all the doma ins across a wide
T b r es. Also It Is ma d t
with the prevat mg Uslness em,iro ' n a ory to tune the Project management strategies In accordance
nment for runnln
,According to a recent report bl' g a successful and sustainable business.
,, PU •shed by the p .a
(Enterprise Project Management Offl ro,ect Management Institute, the companies with a well-planned EPMO
objectives. Following are some of th ~e ) report Is successfully able to meet almost 48% more than their Initial goals and
e atest global trends In project management ·
Al (Artiflclal lntelllgence) ·
1.
_ Artificial intelligence (Al) Is curre
Amazon Echo line u th ntly t~e talk of th e town. The top-notch Al technofogies like Siri, Google Home, and
P e products that tak I .
applications that are also ass . .. e a Pace In your home.It Is of no surprise that there are multiple Al
. . oaated with the project management functionality.
- The mclus,on of Al into the fut .
. ure proJett management trends wilt no doubt add a great essence of productivity to
the proJect outputs. It will in t · . · · ·
con rovert,bly help the overall proJect management workflow with an interactive
inte rface for the available res d · · ·
. . ources an give you the innate capability to respond to your agenda with suggestions
and insights. The algorithm b d · ' ·
ase suggestions are bound to add an extra boost of efficiency to the overall process of
managing the project.

2. Hybrid Approach

- The one-size-fits-all strategy is now facing extinctio~. The conventional waterfall methodologies are now being
twea ked with the modem strategies and adapted vividlyto help with the various processes of project management .
- The implementation of these hybrid methodologies is best suited for the scenarios where the projects are handed
over with an . exceptionally larger work base with an imperative .requirement of multiple project managers to be
'

involved in it.

- Hence, the present corporate world is demanding a considerably higher number of hybrid project managers. who are
not exclusively ~pert in one prescriptive methodology but are well-versed in several multiple methodologies.

3. Emotional ln~lligence (EQ)

- Emotional Intelligence is not at all a new co~cept in today's corporate world. But it is definitely a progressing and
inspiring trend in ol!r process-bas~ practical industry. And in a world where productivity and efficiency are all that
matters, the chances are high that we might get lost in the. diversity of the implemented methodologies. Hence,
when ,the technical ski~lsare staying ~ock steady, the ~lstence of soft skills has to be ensured at any~
- The better you are I~ managing the people and establistNng proper communication with them, the high~ are the
chances of yo~r plan~ to proceed _without a pitfall.
_ So, when you have a constellation of people with various cultural diversities working together, there•s definitely
going to be some kind of issues among the peer group. And with an effective EQ capability In place. you would be
quickly able .to resolve these Issues with the blink of an eye. ,

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 project Leadership, Ethics&

Project Management {MU) 6·34 ri s aspects of emotiona l I~

derstandlng of the va OU
- It's compul.sory for a project manager to have a proper un management uends .
2020 project
as It ls slowty taking the path of an Influential factor In the
4. A~•t.M .
,-.,-ucs lated to crunching these numberi
ectations are re .....,
- Project managers are fond of numbers. A majority of their ellP rate analytics of the performance~ ....
peering into the results. And to help them achieve this, pe rfect and accu -
i
project dashboard ls the apt solution. ct e in the coming future This ·
of a doud -t>ased stru ur . ._
The project management analytic tools are going to be more
re accurat ely.
help you oollect real-time data and reflect t he results even mo

5. Cyber Security
· . 't be wro ng to say that security over the I~
With all the advancements in inteme t techno logy arou nd us, tt won ed fi the concerns "'---
. • .:.1.. highly protect,rewa II, a..._, ._
is a myth . Until and unless you are securing your data w, u , a · .
. mised is ontv going to increase minute .
security of your project is highly valuable as ~e data getting comp~o
· · tad· 3 way by enhancing the cyber security m~
It has to be accepted that data breaches aren't completely mg .
· d stratooies from an onltne threat. vou stand a
But once you secure your project managem ent method ologies an ~ t>· •
• · f b
chance of not getting robbed on line. And with the nse o CV er-a c tta k at an alarming rate, the chances are morefara
fonnal regu lation to be created in order to set a standard of detection, prevention, a nd response from technolagy
and agencies alike.

6. Remote Teams
The sharing economy has proven the fact that more organizations are highly appreciative of the use of a distributed
· team structure. This is because remote teams are comparative ly cheaper ·and way more prod_uctive when managed
efficiently and effectively with the apt set of ~anagement t ools.
And needless to say, remote working teams are gradually beco ming standard practice in the wood of project
management. The prese.nt-day project managers are steadily proceeding ahead with the investment of this
technology to promote highly effective commun ication over a wide range of platforms.

7. loT (Internet of Things)

The loT is basically a gtobal netwonc of devices that can use the Internet to communicate with one another as well as
with the end-users. And the interesting fact is that loT bisects with project management on all the aspects ranging
from data collection to team collaboration.

The advantage of loT In a project management strategy Is that the devices can sense and respond to the surrounding
happenings automat ically through the ir networ1<,thereby reducing the requirement of involving manual intervention. :
. loT has a significant role in t~e 2020 project management trends . It helps to lower the operating costs, minimizln&
errors and increasing the response tJ~e. You also get the leverage to provide the cust~mers with a comparativetv
raster and better service .

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efl project Management(MU) 6-35 Pmr::=tLeadenhip,Ethlc:S& Oosur9
r
I My._ au.tforiti.-:I
Define leadership. Describethe role of a leaderIn the Protectmanagement.(Refw SeetloM a.1 9"d a.1.1)
O· 1
explain different leadershipstyle. (Refer Section 8.1.3)
o.2
Describe Project Bhlcs. Describethe oode of Ethicsfor PM professionals.(Refw SectlOne1.2 and 1.2.2)
o.3
Write a note on Multiculturalproject3 .. (Refer SacUon8.3)
a.4
What is a virtual project? How a Virtual Project r:nanagementworks? (Rer.r Sectlone 8.A and S.A.2)
Q.5
Describethe benefits and challeng~ of Virtual project.(Refer SectlOMSA.3 and SAA)
Q. 6
1
What is Customer Acceptance?Describethe Processof gettingCustomerAcceptance . (RefW SacllcN•1-5 and a.s. 1
Q.1
What is ProjectTenninatio_n?Describewrious reasons.(ReferSection 8.8 and 8.7)
Q.8
How can we avoid the negativeconsequencesof projecttermination?(Refer See1lon S.S.1)
Q.9
Q. 1o Describevarious types of_project termination.(Refer Section 6.8)

a. 11 DescribeCompleting Fi~ report. (Refer 6.10)

Q. 12 DescribeLesson teamed_Analysis. Explain its process.(Refer Sections 6.11 and 6.11.1)

a. 13 How can we identify the lessons lea.med?(Refer Section 6.11.3)

Q.1 4
How importantis it to acknowledgefailure and success of a project.(Refer Section 6.12)

a. 1s How can we find out the reasons for project .failure? (Refer Sections 6.12 and 6.12.1)

o. 16 What are the ways to.acknowledgeSuccess?(Refer SectiQn6.12.2)

a. 17 Describe Project management templateand its usage . (ReferSection 6.14)

a. 1s Describe~e types of Project ManagementTemplates used. (ReferSection 6.14)

a. 19 How can we manage a project without authority? (ReferSection6.15)

Q. 20 Describesome of the areas that ca~ be studied in project managementin future. (Ref91Section L 16)
aaa

I •

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