PROJECT MANAGEMENT TECHNIQUES

1. PERT is an acronym that stands for program evaluation and review technique. It’s a
project management technique to help with time estimates. Scheduling is critical to
getting a project completed on time but also within the set budget.

It manages probabilities by using network diagrams and simple statistical methods.

PERT breaks down tasks into detailed activities, by using the WBS discussed above,
then adds these to a PERT diagram to identify those activities that are interdependent.
From that data, you create an illustrative map of the network of activities and their
interdependencies.

On the map, a node represents an event and the activities are represented by arrows
drawn from one event to another based on its order. From this, the earliest time (TE)
and the latest time (TL) for each activity are figured out, as well as the slack time for
each activity.

2. Critical Path Method (CPM)

Critical Path Method (CPM) is a cornerstone of project management techniques. CPM

involves the use of network diagrams, WBS and Gantt charts. CPM consists in using
these tools to create a project timeline and identify the critical path, which is the longest
sequence of activities in the project. The activities in the critical path are known as critical
tasks and have the highest priority in terms of project schedules. Now you know what
tasks are critical to the project and which have float or can be delayed without
lengthening the project timeline. With this information, you can determine the shortest
time needed to complete the project.

Not all project management tools can filter the critical path automatically. But Project
Manager’s online Gantt chart finds the critical path with a click, saving you valuable
time. Once your schedule is planned, set the baseline on the Gantt chart view. This allows
you to compare your actual progress versus the planned effort, which helps you stay on
track.

3. Cost-Benefit Analysis

A cost-benefit analysis looks at the investment into a project and what that return might
be. This is a valuable project management technique to help decide which projects are
viable and which ones are better off being passed.

The idea is simple: add the costs of the project and then the value from a business
perspective, whether that’s benefits or opportunities. If the benefits outweigh the costs,
then the project is more likely worth pursuing. If not, you might save yourself a loss by
turning it down.

The value of such a project management technique is clear in terms of making

organizational decisions. It helps you view the project in terms of its return on investment
(ROI) and your organization’s value chain. This is a data-driven way to make a decision
as opposed to betting on your gut.

4. Earned value management (EVM) is used in project management to integrate

schedules, costs and scope to measure project performance. By looking at planned and
actual values, EVM can help make predictions that allow project managers to better
manage projects. Project managers use tools like WBS, Gantt charts and project
dashboards as they implement EVM.

Predicting the future is never wholly accurate, but according to studies, once 20
percent into a project, EVM does a pretty good job. It’s often used to control project
costs.

Other benefits include reducing unknowns into quantifiable factors and comparing
and benchmarking the current project status with the project baseline. It also provides
insights into projects and portfolios.

5. Stakeholder Mapping

Stakeholders have a vested interest in the project, but they can also influence your
project. Therefore, project managers need to know who the project stakeholders are
and how they might influence the project.

That’s where the project management technique of stakeholder mapping comes in. It’s
a visual process that lays out the project stakeholders and lets the project manager
know how to deal with the stakeholders and which ones need to know what and when.

Stakeholders can be varied. Customers or users of a product are stakeholders, but so

are industries and markets, suppliers and investors. They can be new or old customers,
retailers or even the project team, such as the project manager, developer, design or
executive. In general, they can be broken up into two categories: internal and external.
Project dashboards and Gantt charts can then be used to report on progress and keep
stakeholders informed.

6. Feasibility Study

There are many ways to determine if a project is worth undertaking. One such project
management technique is the feasibility study. It’s a way to evaluate if the project
plan is practical and will lead to a successful outcome.

A feasibility study looks at whether you have the resources to complete the project
and if the ROI makes it beneficial or financially advantageous to take on the project.

A feasibility study will commence after the project has been pitched but prior to any
work has started. It’s part of the planning phase of the project and is done with a
SWOT analysis or project risk assessment. A feasibility study looks at things such as
market opportunities, pros and cons and so forth.
PROJECT EVALUATION

Project evaluation is a systematic and objective assessment of an ongoing or completed

project. 1 The aim is to determine the relevance and level of achievement of project
objectives, development effectiveness, efficiency, impact and sustainability.

Project evaluation is an important process that offers several benefits. Firstly, it helps to
identify areas that could be improved or that didn't go as planned. This information is
essential as it allows project managers to adjust the project plan, ensuring that future projects
are more successful.
Project evaluation is a systematic assessment of the relevance, impact, and efficiency of a
project.

What are the four process of project evaluation?

The program evaluation process goes through four phases — planning, implementation,
completion, and dissemination and reporting — that complement the phases of program
development and implementation.

What are the different types of evaluation in project management?

There are four main types of evaluation: Formative Evaluation, Summative Evaluation,
Process Evaluation, and Outcome evaluation.

The project manager is responsible for the achievement of all project goals. These goals
should always be defined using the SMART paradigm (specific, measurable, ambitious,
realistic, time-bound).

The Best Project Evaluation Methods

 Return on Investment (ROI) ...
 Cost-Benefit Analysis (CBA) ...
 Net Present Value (NPV) ...
 Internal Rate of Return (IRR) ...
 The Payback Period. ...
 Benefit-Cost Ratio (BCR) ...
 Risk-Adjusted Discount Rate (RADR)
Project appraisal is done to check the viability and credibility of the project. Similarly,
A financial appraisal is done to check the viability and credibility of the project in terms
of cash flow, investments,

Project appraisal is a cost and benefits analysis of different aspects of proposed project with
an objective to adjudge its viability. A project involves employment of scarce resources. An
entrepreneur needs to appraise various alternative projects before allocating the scarce
resources for the best project.

Project appraisal is an independent activity related to project monitoring. It involves

analyzing information collected during monitoring and assessing how the results contribute to
achieving common goals.

What are the characteristics of project appraisal?

The major aspects to be considered during the appraisal of the project are: 1) Technical 2)
Institutional 3) Organizational 4) Managerial 5) Social 6) Commercial 7) Financial 8)
Economic 9) Sustainability. Let us now discuss each of these criterions of project appraisal.

What are the four major criteria in project appraisal?

An Overview Of Project Appraisal For Finance- Methods And Risk
 Economic Analysis. ...
 Financial Analysis. ...
 Market Analysis: ...
 Technical Feasibility: ...
 Managerial Competence: