Subject Code: IMT-26

Subject Name : PROJECT

Notes:
a. b. c. d. Write answers in your own words as far as possible and refrain from copying from the text books/handouts. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part C) and Set-IV (Case Study) must be sent together. Mail the answer sheets alongwith the copy of assignments for evaluation & return. Only hand written assignments shall be accepted. 5 Questions, each question carries 1 marks. 5 Questions, each question carries 1 marks. 5 Questions, each question carries 1 marks. Confine your answers to 150 to 200 Words. Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

MANAGEMENT

A. First Set of Assignments: B. Second Set of Assignments: C. Third Set of Assignments: D. Forth Set of Assignments:

Objective: To provide an understanding of the total approach of project management including the various phases of a project life cycle. To equip the students with the techniques for attaining the goals of a project - time, cost and performance. Contents INTRODUCTION TO PROJECT MANAGEMENT Concept of project; characteristics of a project; categories of projects; importance of projects; life cycle of a project; the conception/formation phase; the definition/build-up phase; the acquisition/production phase; the operation phase; the divestment/termination phase; project management; characteristics of project management; prerequisites for successful project management; principles of project management; scope of project management; importance of project management; challenges in project management; forms of project management; basic project management; program management; new venture management; product management; project management phases; project management functions; PROJECT INTEGRATION MANAGEMENT Overview of Project Integration Management; Developing Project Charter; Inputs for The Development of Project Charter; Tools and Techniques for Project Charter; Creating Preliminary Project Scope Statement; Inputs for Preliminary Project Scope Statement; Tools and Techniques for Preliminary Project Scope Statement; Developing Project Management Plan; Inputs for The Development of Project Management Plan; Tools and Techniques for Project Management Plan; Directing and Managing Project Execution; Inputs for Managing Project Execution; Tools and Techniques for Managing Project Execution; Outputs of Executed Project Management Plan; Monitoring And Controlling Project Work; Inputs For Controlling Project Work; Tools and Techniques for Controlling Project Work; Outputs of Controlled Project Work; Integrated Change Control; Inputs for Integrated Change Control; Tools and Techniques for Integrated Change Control; Close Project; Inputs for The Project Closure; Outputs of Project Closure PROJECT SCOPE MANAGEMENT Overview of Project Scope Management; Project Scope Planning; Inputs of Scope Planning; Tools and Techniques of Scope Planning; Output of Scope Planning; Project Scope Definition; Inputs of Scope Definition; Tools and Techniques of Scope Definition; Outputs of Scope Definition; Project Management................................................. Page 1 of 6 ............................................................................... IMT-26

Creating Work Breakdown Structure; Tools and Techniques of WBS; Outputs of WBS Process; Project Scope Verification; Outputs for Scope Verification; Project Scope Control; Inputs of Scope Control; Tools and Techniques of Project Scope Control TIME AND QUALITY MANAGEMENT Concept of Time Management; Defining and Sequencing of Activities; Defining Activity; Sequencing Activity; Estimation of Resources and Activity Duration; Estimation of Resources; Estimation of Activity Duration; Schedule Development; Inputs of Schedule Development Process; Schedule Development Tools; Outputs of Schedule Development Process; Schedule Control; Inputs of Schedule Control Process; Schedule Control Tools; Outputs of Schedule Control Process; Understanding The Concept of Quality Management; Quality of The Process Project Information Centre; Managing Quality; Availability of Tools; Quality of Deliverables; Product Quality; Service Quality; Inspection and Testing; Types of Inspection; Quality Control; Advantages of Quality Control; Difference Between Inspection and Quality Control; Inter-Relation Between Quality Control and Inspection; Quality Assurance; Management Actions for Assurance of Quality; Activities Under Quality Assurance; Total Quality Management; Continuous Improvement By TQM; Implementation Principles And Processes COST AND COMMUNICATION MANAGEMENT Cost Management; Cost Estimating; Inputs For Cost Estimating Process; Tools and Techniques Used for Cost Estimating Process; Outputs of Cost Estimating Process; Cost Budgeting; Inputs of the Cost Budgeting Process; Tools and techniques for Cost Budgeting Process; Outputs of the Cost Budgeting Process; Cost Control; Inputs of the Cost Control Process; Tools and Techniques for Cost Control Process; Output of Cost Control Process; Introduction to Communication Management; Objectives of Communication Management; Communication Plan; Communication Process Model; Means of Communication; Oral Communication; Written Communication; Non-verbal Communication; Communication Networks; Barriers to Effective Communication; Noise Barriers;. Interpersonal Barriers; Cultural Barriers; Overcoming Communication Barriers HUMAN RESOURCE MANAGEMENT Concepts of Human Resource Management; Evolution of HRM; Objectives of HRM; Significance of HRM; Functions of HRM; HRM and Competitive Advantage; Strategic Human Resource Management; Developing HRM Strategy; Changing Role of HR Management; Role of Personnel Manager; Organizing HRM Departments in an Organization; Organization of HR Department; Staff Role of HR Department; Human Resource Management in India; Analyzing Internal Environment; Analyzing External Environment; Some Measures to Enhance Growth; Human Resource Planning; Objectives of HRP; Significance of HRP; Steps involved in HRP; Recruitment Process; Strategic Human Resource Development; Introduction to HRD; Features of HRD; Subsystems of HRD; Objectives of HRD; Significance of HRD PROCUREMENT MANAGEMENT Overview of Procurement Management; Types of Procurements; Steps in Procurement Management Process; Materials Management; Integrated Approach to Materials Management; Objectives of Materials Management; Functions of Materials Management; Costs involved in Materials Management; Benefits of Materials Management; Contract Management; Contract Management Process; Benefits of Contract Management; Factors Affecting Contract Management; Problems of Contract Mismanagement; Reasons for the Failure of a Contract; Service Management; RISK MANAGEMENT Introduction To Risk; Uncertainty Constraint; Risk Analysis; Principles Of Risk Management; Risk Assessment; Classification Of Risks; Risk Identification; Risk Estimation And Exposure; Risk Mitigation, Monitoring And Management MARKET, TECHNICAL AND ENVIRONMENTAL APPRAISALS Market Appraisal; Market Appraisal for Projects; Considerable Factors for Market Appraisal; Importance of Customers; Market Survey for Forecasting Future Demand and Sales; Characteristics of The Market; Demand Forecasting; Technical Appraisal; Environmental Appraisal ECONOMIC APPRAISAL Economic Appraisal; Need For Economic Appraisal; Example Of Economic Appraisal Of An Electronic Postal Meter; Systems Design; The Implementation Strategy; Project Scheduling And Crashing; Problems In Project Implementation Project Management................................................. Page 2 of 6 ............................................................................... IMT-26

FINANCIAL APPRAISAL Concept of financial appraisal; funds estimation; working capital requirement; sources of funds; appropriate composition of funds; financial evaluation of a project; the rate of return method; the payback method; net present value method; the discounted cash flow method; project cost accounting system; preparation of projected financial statements viz. Projected balance sheet; projected financial statements; projected balance sheet; projected income statement; projected funds flow statement; projected cash flow statement; preparation of detailed project report; internal rate of return; economic interpretation of internal rate of return; limitations of internal rate of return; net terminal value method; multiple internal rate of return; profitability analysis; FEASIBILITY ANALYSIS Feasibility Study; Types Of Feasibility Study; Economic Feasibility; Technical Feasibility; Operational Feasibility; Behavioural Feasibility; Schedule Feasibility; Steps Involved In Feasibility Analysis; Detailed Project Report; Raw Material Survey; Demand Study; Technical Study; Location Study; Cost Estimates MANAGEMENT PROCESSES Project Planning; Author Definitions; Characteristics of Planning; Nature of Planning; Importance of Planning; Advantages of Planning; Limitations of Planning; Planning Process; Analysis of External Environment; Analysis of Internal Environment; Define The Mission of The Organization; Determination of Objectives; Establishing Planning Premises; Determining Alternative Course of Action; Evaluating Alternative Course of Actions; Selecting The Best Course of Action; Establishing The Sequence of Activities; Formulation of Strategic or Long-Range Plan; Formulation of Functional or Tactical Plan; Evaluating The Planning Process; Planning Execution; Controlling and Monitoring; Author Definition; Characteristics of Control; Basic Control Process; Benefits of Control; Limitations Of Control; Prerequisites of Control PROJECT ORGANIZATION Introduction to organization; importance of organizing; guidelines for effective organization; rganizational structure; steps in creating the organizational structure; benefits of good organizational structure; types of organizational structures; the traditional structure; the line structure; the line and staff structure; the matrix organization; roles and responsibilities of a project manager; interpersonal roles; informational roles; decisional roles; characteristics and authority of project manager; characteristics of project manager; authority of project manager; skills of project manager; technical skills; human skills; conceptual skills; diagnostic skills; communication skills; political skills; sources of conflicts; resolution of conflicts; project team development PROJECT MANAGEMENT TOOLS AND TECHNIQUES Introduction To Project Scheduling; Activities, Events And Work Packages; Work Breakdown Structure (Wbs); Guidelines For Preparing Project Schedule; Gantt Chart; Network Scheduling; Activity-OnNode Diagram; Activity-On-Arc Diagram; Dummy Activities; Redundant Precedence Relationships; Project Evaluation And Review Technique (Pert); Pert: Single Time Estimate; The Critical Path; Pert: Three Time Estimates; Critical Path Method; Time-Cost Relationship; An Algorithm (Procedure) for CPM Analysis; An Example of CPM Project Analysis; Total Cost-Time Trade-Off; Project Scheduling With Resource Constraints; Resource Levelling; Resource Loading CONTROL SYSTEM Overview of Control System; Essentials of Effective Control Systems; Project Control; Project Control and Management; Work Authorization; Data Collection and Tally; Performance Analysis; Monitoring and Reporting; Taking Corrective Action; Variance Analysis of Project Performance; Problems of Project Control; Problems of Project Implementation and Project Audit; Project Audit; Management Information System; Functions Of MIS; Use of Computers Reference: 1. Patel, Bhavesh.M., Strategic Financial Planning, Evaluation and Control, Project Management, Vikas 2. Kerzner, Harold., Project Management, A Systems Approach to Planning, Scheduling and Controlling, John Wiley, 2001.

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ASSIGNMENTS
FIRST SET OF ASSIGNMENTS Marks Assignment-I = 5

PART A
1. What are the pitfalls of an ill-conceived project for a firm, an economy and a society? How can one avoid or minimize the chances of project failure from the perspective of the firm, the economy and the society? Imagine a large company with multiple products, a few locations and many markets. If you have to select three important strategic thrust areas for this firm, what would those three be, assuming normal market conditions? How would you expect divisions to come up with the project proposal that is acceptable for you? In the study of indicators, why are only the studies of lead indicators useful, when some variables may change either concurrently or with lag of time? Do you think that PCA can be done without adjustment for inflation? Give reasons for your answer. Why should a state government or the Central Government offer land at concessional rates and other incentives for setting up private for-profit academic institutions? Explain giving the economic benefits of academic institute project. Do you think that along with offering incentives, imposition of some regulation is also essential? Why or why not? Assignment-II = 5 Marks

2.

3. 4. 5.

SECOND SET OF ASSIGNMENTS

PART B
1. If you are heading a strategy group in a large global company that manufactures and sells steel products, what type of a formal system would you like to build to encourage generation of good project ideas? 2. Describe the situation in which using weighted average cost of capital as a cut-off rate is justified. Name at least one type of project in which you expect that the situation you described would exist. 3. 'EV rule and CV rule can provide a broad guideline only for the selection of mutually-exclusive projects, but one should not entirely depend on them.' Do you support this statement? Why or why not? 4. Do you agree that the main goals of project review are to take a fresh look at the viability of the project and to acquire learning values from mistakes? 5. Do you think that inflation adjustment would make a PCA more effective? Why or why not? How is inflation adjustment done in the data when conducting a PCA?

THIRD SET OF ASSIGNMENTS

Assignment-III = 5 Marks

PART C
1. In some situations, a project with IRR greater than the cut-off rate must be rejected on financial grounds. Describe such situations. 2. Describe three mutually-exclusive situations in which different discounted cash flow techniques are likely to give different rankings of projects. In such situations, which evaluation technique would you recommend? Why? Project Management................................................. Page 4 of 6 ............................................................................... IMT-26

3. Despite several limitations, why is sensitivity analysis still very useful in project risk management? Would you recommend the use of any other method(s) of risk management along with sensitivity analysis? What would be those and why? 4. Execution of project means implementing detailed project report without any modifications? Do you agree? 5. Why would a lender look at the times-interest-earned ratio and debt-service-coverage ratio for evaluating the financial strength of a proposed project? FOURTH SET OF ASSIGNMENTS Assignment-IV = 2.5 Each Case Study

CASE STUDY - I
The relevant data of activities of a small project is given below: Activity Preceeding A B C D E F G (a) (b) (c) (d) Activities A A A B, C C,D E,F Duration (days) 7 4 5 6 7 5 6 Normal Crash 5 2 5 4 4 2 4 Cost (Rs) 500 400 500 800 700 800 800 Normal Crash 900 600 500 1000 1000 1400 1600

Determine the normal duration and normal cost of the project. Determine the critical path. Enumerate the rules of crashing the network. Crash the project to 21 days and determine the crashed cost and path. Determine the network after every step of crashing. What is the percentage increase in cost to complete the project in 21 days?

CASE STUDY-II
Honda's Marketing Strategies in India
In September 2004, Honda Motorcycle and Scooters India Limited (HMSI), the wholly owned subsidiary of the Japan-based Honda Motor Company Limited (HMCL), launched its first 150cc motorcycle named 'Unicorn.' Priced at Rs 50,043 (ex-showroom price, Delhi), Unicorn had a four stroke 13.3 BHP engine with five gears. The new bike was available in five colours and was designed to achieve a speed of 0 to 60 KMPH in five seconds. Unicorn was promoted with the caption 'Be a wing rider'. Targeted at the youth, Unicorn looked sportier than all existing motorcycles in the premium segment and was pitted against the Bajaj Pulsar, the leader with 75 percent market share in that segment. The other bikes in this segment were TVS Fiero, LML's Graptor and Hero Honda's CBZ. HMSI expected sales of 56,000 units of Unicorn in the first year of launch. The Indian two-wheeler industry, traditionally considered a scooter market, witnessed a gradual migration towards motorcycles from the 1990's. When HMSI was incorporated in late 1999, the Indian motorcycle market was booming, compared to the scooter market. Still, SI announced that it would initially concentrate only on the scooter market and would enter the motorcycle market in 2004, the year when the HMCL joint venture agreement with the Hero Group was due for revalidation. HMSI was credited for reviving the scooters market in India. Within three years of commercial operation, HMSI emerged as the market leader in the scooters segment. The company's scooter models included Activa, Dio and Eterno. After coming out of the joint venture with KEL, Project Management................................................. Page 5 of 6 ............................................................................... IMT-26

HMCL planned to introduce its own two-wheelers in the market. In October 1999, in a major strategic initiative, HMCL established HMSI. Launched in 2001, Honda Activa was the first scooter model of HMSI for the Indian market. A 102 cc scooter, Activa was specially designed keeping in view the needs and preferences of Indian consumers who expressed that the conventional Indian scooter was too big and difficult to handle and that the scooterette was too small and similar to a moped. Dio was launched in 2002 as the first motoscooter in the Indian market. Thanks to the success of its joint venture with Hero Group and KEL, 'Honda' was already a household name in India. Hence, rather than putting major efforts into brand building, HMSI's marketing strategy emphasized on offering innovative products at competitive prices, novel promotional campaigns and developing an extensive distribution network. After the launch of Unicorn, HMSI announced plans to introduce a 135cc motorcycle in 2005. Questions: (i) (ii) Examine and analyse the marketing mix of Honda Motors. Compare and contrast the marketing strategy of Honda with other leading players in the Indian twowheeler industry including Bajaj Auto and Hero Honda Motors.

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