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MBA- Semester 2

MB0049

Assignment - Marks 60 (6X10=60) Project Management - 4 Credits Subject Code - MB0049

*** Please fill in all the details in complete and only in CAPITAL letters

MAHESH KUMAR CHANDAK Name 1205026215 Registration Number

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Note: Each question carries 10 Marks. Answer all the questions.

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Q.1 Define Project Management Information Software. the various steps of PMIS planning.

Discuss

Project Management Information Software is used to help Plan, Organize, and Manage resource pools and develop resource estimate. It is used to provide information to different levels of Management, mainly Upper Management, Project and Department Management and Project Members. Presentation of information can be customized depending on requirement at each level and can include Graphical Presentations and with text providing information as needed. It can have resource including estimation and planning, scheduling, cost control and budget management, resource allocation, collaboration software, communication, decisionmaking, quality management and documentation or administration systems. Today, numerous project management software packages exist, and they are finding their way into almost every type of business. The steps involved in PMIS planning are: Informational Needs: People at different levels within an organization have different information needs. Information should be made available to all as needed, in a standardized manner, and as a matter of routine. The software should be able to provide all informational requirements of Lower Management, Middle Management, Upper Management and the Project Team. Communication Flow: There are a number of interactions between departments that result from the information flow. Sometimes the information is re-processed as a result of some impact on schedule, manpower and/or cost, which may result in a re-issue of schedules, etc.

to reflect any changes. Depending on the type of Organization, it could be a Hierarchical or a flat organization. The software should provide access to information accordingly. In Hierarchical, information could be required for all levels below the Manager reviewing it which for Flat Organizations, information does not need to be displaced at different levels. Type of Project: Depending on the type and size of Projects, PMIS Software requirements could change. For small projects a simple PMIS could be sufficient compared to a Large Project which could need advanced and sophisticated PMIS which supports Centralized Data store, advance customization and Reporting. Customer and Cost: The PMIS software should include the customer requirements and should consider the available Budget. For small Projects, the Budget available could be limited and therefore the PMIS should be choosing accordingly. Storage and Retrieval: The system should be able to support storage and retrieval information depending on the Organization Model. Depending on the type of Project, the storage of data can be on individual PCs or on a centralized system. This need should also be considered. It should support the Organizations Information Security Policy. Q.2 Explain procurement process . What are the key steps involved in purchase cycle? Procurement is the buying of goods or services. It is important that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. The steps involved in a purchase cycle are: Define the business need: You need to understand what the fundamental business requirement is. At this point, it is important to understand the difference between a requirement and a solution. For example, the business requirement is to source some software to help to get information published on the company intranet. An item of software to publish information on the company intranet is a solution not a requirement. The requirement is to be able to publish information on the intranet. It may be that an outsourced solution is a better option. Supplier Identification: Once the company has answered important questions like: Make-buy, multiple vs. single suppliers, then it needs to identify who can provide the required product/service. There are many sources to search for supplier; more popular ones being Ariba, Alibaba, other suppliers and trade shows. Supplier Communication: When one or more suitable suppliers have been identified, requests for quotation, requests for proposals, requests for information or requests for tender may be advertised, or direct contact may be made with the suppliers. References for product/service quality are consulted, and any requirements for followup services including installation, maintenance, and warranty are investigated. Samples of the P/S being considered may be examined, or trials undertaken.

Supplier Selection and Evaluation: After researching the market and establishing your procurement approach, you need to evaluate the solutions available. This may involve a formal tender process or an online auction. You criteria for comparing different solutions and suppliers are critical. Weight the key criteria heavily and dont attach too much importance to aspects that will have little impact on the solution. Negotiation and award: Even when you have selected a supplier it is important that detailed negotiations are undertaken. This is not just about price. Think in terms of Total Cost of Ownership. A cheap product is not so cheap if the carriage costs are huge or if the maintenance contract is onerous. Consider carefully the process by which the goods or services will be ordered and approved; how they will be delivered and returned if necessary; how the invoice process will work and on what terms payment will be made. Considering the whole Purchase to Pay process at the outset can reduce costs and risk significantly. Induction and Integration: No goods or services should be ordered of delivered until the contract is signed, but this is not the end. It is vital that the supplier is properly launched integrated. The P2P process needs to be in place and need to be understood on both the buy-side and the supplier side. Any service levels that have been agreed need to be measured and KPIs put in place. Regular reviews should be established. Q.3 Define project-type organisation and discuss it in detail The current types of organizational structure of project management are: functional organizational structure, project-based organizational structure and matrix organizational structure. 1. Functional organizational structure. Functional organizational structure is to be managed in the current organization hierarchical structure, once the project begins operation, the various components of the project are taken by the functional units, each unit is responsible for its charged component. If the the project established, a functional area play a dominant role, functional areas on completion of the project, senior managers will be responsible for project coordination. Advantages of this structure: i. The use of personnel with greater flexibility, as long as the choice of a suitable functional departments as the project supervisor, the department will be able to provide professional and technical personnel required by the project. ii. When the project team members leave or leave the company, the functions can be used as the basis for maintaining the continuity of the project.; The disadvantage of this structure is:

i. ii.

Projects often lack of focus, each unit has its own core functions of general business, sometimes in order to meet their basic needs, responsibility for the project will be ignored. Such organization has certain difficulties in the interdepartmental cooperation and exchanges.

2. Project-based organizational structure. Project organizational structure refers to the creation of an independent project team, the teams management is separated from the parent organizations other units, have their own technical staff and management, enterprise assigns certain resources to project team, and grant project manager of the largest free implementation of the project . The advantages of this structure: i. Focus on this project team, project manager is solely responsible for the project, the only task for project members is to complete the project, and they only report to the project manager, avoiding the multiple leadership. ii. The project teams decision is developed within the project, the reaction time is short The disadvantage of this organizational structure: i. When a company has several projects, each project has its own separate team, which will lead to duplication of efforts and loss of scalable economies. ii. The project team itself is an independent entity, prone to a condition known as Project inflammatory disease, that is, there is a clear dividing line between the project team and the parent organization, weakening the effective integration between project team and the parent organization 3. Matrix organizational structure. Matrix organizational structure is a hybrid form, it loads a level of project management structure on the functional hierarchical structure. According to the relative power of project managers and functional managers, in practice there are different types of matrix systems, respectively, Functional Matrix: in this matrix, functional managers have greater powers than project managers); Project Matrix: in this matrix, project managers have greater powers than functional managers); Balance Matrix: in this matrix, functional managers and project managers have the equal powers. The advantages of this organizational structure: i. It is the same as functional structure that resources can be shared in multiple projects, which can significantly reduces the problem of redundant staff ii. When there are multiple projects simultaneously, the company can balance the resources to ensure that all the projects can

progress to complete their respective costs and quality requirements The disadvantage is that this organizational structure: i. The matrix structure has exacerbated the tensions between functional manager and project manager ii. Under any circumstances, sharing equipment, resources and personnel among different projects will lead to conflict and competition for scarce resources Three different forms of the matrix organizational structure does not necessarily have the advantages and disadvantages described above: Project Matrix can increase the projects integration, reduce internal power struggle, its weakness is poor control of their functional areas and prone to project inflammation; Functional Matrix can provide a better system for managing the conflict between different projects, but maintaining the control of functions is at the cost of inefficient integration of projects; Balanced Matrix can achieve the balance between technology and project requirements better, but its establishment and management is very subtle, is likely to encounter many problems related to matrix organization. Q.4 Define value engineering. Discuss the scope of applying VE in project. Value engineering is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost. It is a primary tenet of value engineering that basic functions be preserved and not be reduced as a consequence of pursuing value improvements. It follows a structured thought process that is based exclusively on "function", i.e. what something "does" not what it is. For example a screw driver that is being used to stir a can of paint has a "function" of mixing the contents of a paint can and not the original connotation of securing a screw into a screw-hole. In value engineering "functions" are always described in a two word abridgment consisting of an active verb and measurable noun (what is being done - the verb - and what it is being done to - the noun) and to do so in the most non-prescriptive way possible. In the screw driver and can of paint example, the most basic function would be "blend liquid" which is less prescriptive than "stir paint" which can be seen to limit the action (by stirring) and to limit the application (only considers paint.) This is the basis of what value engineering refers to as "function analysis". Value Engineering can be used in the following areas of Project Management: Improving Quality Management Improving Resource Efficiecy Simplifying Procedures

Minimizing Paperwork Lowering staff costs Increasing procedural efficiency Developing value attitudes in staff Q.5 Define project management, resource, process, and project cycle. Why is project management important? Project Management is a science and an art of organizing all the components of the project. The project can be either of a launch of new products or a marketing campaign. A project is not a part of the routine business operations. It is temporary and is created just once. It normally has a beginning and an end. Resources are people, material, cash or time is utilized in these projects. It normally has funding/ budget limitations. They are the components used to complete a Project. A process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal). It often can be visualized with a flowchart as a sequence of activities with interleaving decision points or with a Process Matrix as a sequence of activities with relevance rules based on the data in the process. The Project Life Cycle refers to a series of activities which are necessary to fulfill project goals or objectives. Projects vary in size and complexity, but, no matter how large or small, all projects can be mapped to the following life cycle structure: Starting the project, Organizing and preparing, Carrying out project work and Closing the project The importance of Project Management are: Cost Control: Project management is the defining factor of an organizations success. It a meter that gauges the potential risks and finds the solutions to overcome them. Project management is essentially a plan that forms the firm footing for an organization to climb the ladder of success. Cost-Effectiveness: Project management provides a roadmap for the journey of success. It is the greatest resource that allows the manager to understand the available resources and the methods to use them with the demands. Better Productivity: Trustworthy quality of products is a way of retaining the existing clientele and adding to the same. Project management keeps the quality of products in constant check, thus ensuring better productivity in terms of quality and quantity. Minimization of Risks: Every business is faced with risks of loses due to various reasons. However, with a strategy in place, gauging the risks is easier and making diversions from the same is easier as well. This

maintains stable work in progress. By planning and analyzing, a project manager can mitigate risks and be a part of fair business competition. Accomplishing Predetermined Goals: Every organization sketches its goals and objectives, which is the basis of earning profits and making a way towards growth. Project management is the key tool for achieving predetermined targets in a structured way. Q.6 What are the key steps included in risk management process? What are the strategies used to reduce risk? Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

The key steps in Risk Management are:

Risk Identification: In this process, all possible risks are identified. These are known risks. There could be some unknown risks which are learnt during the process of the Project. The risks could be internal or external. The risks could be Project, Market, Social and Political.

Risk Analysis: Risks are related to identified threats. For example: the threat of losing money, the threat of abuse of confidential information or the threat of accidents and casualties. The threats may exist with various entities, most important with shareholders, customers and legislative bodies such as the government. When either source or problem is known, the events that a source may trigger or the events that can lead to a problem can be investigated.

Risk Management Planning: Once risks have been identified and analyized, all techniques to manage the risk fall into one or more of these four major categories: Avoidance, Reduction, Sharing and Retention.

Risk Review: Initial risk management plans will never be perfect. Practice, experience, and actual loss results will necessitate changes in the plan and contribute information to allow possible different decisions to be made in dealing with the risks being faced. Risk

analysis results and management plans should be updated periodically. There are two primary reasons for this:

i. ii.

Evaluate whether the previously selected security controls are still applicable and effective Evaluate the possible risk level changes in the business environment.

The strategies' used manage risk are:

Risk avoidance: This includes not performing an activity that could carry risk. An example would be not buying a property or business in order to not take on the legal liability that comes with it.

Risk Reduction: Involves reducing the severity of the loss or the likelihood of the loss from occurring. For example, sprinklers are to put out a fire to reduce the risk of loss by fire.

Risk sharing: Defined as sharing with another party the burden of loss or the benefit of gain, from a risk, and the measures to reduce a risk. The term of 'risk transfer' is often used in place of risk sharing. For example, buying an insurance for a automobile.

Risk retention: Involves accepting the loss, or benefit of gain, from a risk when it occurs. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would be greater over time than the total losses sustained. All risks that are not avoided or transferred are retained by default.