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Q1. Describe the project planning process and explain it in detail.

Project planning is an essential part of project management. Successful completion of a project is heavily dependent on effective planning. A project plan allows you to complete a project within a specified timeline and a specified budget. Project planning is fundamental in order to avoid failure and disappointment. In project management, effective planning is absolutely required if the individual or group wishes to deliver a finished project on time and on budget. A project schedule will provide all involved with an outline and detailed activities to minimize risk to the final result and delivery. The basics you will get from the schedule include how long the project or any single stage within it will take. But a good schedule should also inform you of the following particulars: a) Who is accountable for each aspect of the project b) The approach chosen to target the problem with c) Major deliverables from the project d) Exact timing of key decisions and points for review Every successful project delivers your future organization and helps it to accomplish its strategic goals. If organizations must flourish and keep up with competitive, its members must be effective at project management. Appropriate, careful planning will ensure that projects will not overrun deadlines and/or pile on unexpected costs. Such a situation would only endanger the anticipated corporate benefits of the organization.

The project schedule is the framework on which the actual resource plans and cost breakdowns are mapped. It makes explicit each stage and activity, which combine to form the entire project. This greater visibility encourages accurate real time status reports and analyses from multiple perspectives. So the ability to build and manage a project schedule is a top priority if one needs to succeed at ones project. Another immense benefit to planning is that in case a problem arises, it functions as an alarm mechanism. At such a point risk management and going through contingencies for various scenarios can occur in order to restrict the damage or compromise resulting from the problem. One final word of advice, though: a good plan is also a flexible one, so dont be too preoccupied with maintaining its rigid form all through the duration of the project.

To establish and operate an effective organization, all managers perform several major functions or activities. These functions enable managers to create a positive work environment and to provide the opportunities and incentives .The key management functions include planning, organizing, directing, controlling. Each of these functions are critical to the success of any manager and organizations. Planning is the process of analyzing the situation, determining the goals/ objectives that will be pursued in the future, and deciding in advance the actions that will be taken to achieve the goals. The following are the steps involved in PLANNING PROCESS

1. Reviewing the current operation situation. 2. Conducting the current operation strengths/ weaknesses. 3. Studying the External environmental factors affecting the operation. 4. Studying the expectations of the operations. 5. Determine the opportunities for improvements/growth and negatives constraints. 6. Based on the above analyses, determine the goals and objectives for the operation for the future period. 7. Based on the objectives, determine your strategy how you are going to achieve the objectives. 8. Based on the strategy, determine the action plans that have to be implemented. 9. Your action plan will determine the resources required manpower, finance and materials 10. Finally a system to monitor the plan/its progress. Q2. a. Explain the life cycle of a project b. Describe the need for feasibility studies

a. The various phases in project management life cycle are:


Analysis and Evaluation Phase: It starts with receiving a request to analyse the problem from the customer. The project manager conducts the analysis of the problem and submits a detailed report to the top management. The report should consist of what the problem is, ways of solving the problem, the objectives to be achieved, and the success rate of achieving the goal. Marketing Phase: A project proposal is prepared by a group of people including the project manager. This proposal has to contain the strategies adopted to market the product to the customers. Design Phase: Based on the inputs received in the form of project feasibility study, preliminary project evaluation, project proposal and customer interviews, following outputs are produced: System design specification Program functional specification Program design specification Project plan Inspecting, Testing and Delivery Phase: During this phase, the project team works under the guidance of the project manager. The project manager has to ensure that the team working under him implements the project designs accurately. The project has to be tracked or monitored through its cost, manpower and schedule. The tasks involved in these phases are: Managing the customer Marketing the future work Performing quality control work

Post Completion Analysis Phase: After delivery or completion of the project, the staff performance has to be evaluated. The tasks involved in this phase are: Documenting the lessons learnt from the project Analysing project feedback Preparing project execution report

b. Describe the need for feasibility studies:


A feasibility study is a detailed analysis of a company and its operations that is conducted in order to predict the results of a specific future course of action. Small business owners may find it helpful to conduct a feasibility study whenever they anticipate making an important strategic decision. For example, a company might perform a feasibility study to evaluate a proposed change in location, the acquisition of another company, a purchase of major equipment or a new computer system, the introduction of a new product or service, or the hiring of additional employees. In such situations, a feasibility study can help a small business's managers understand the impact of any major changes they might contemplate. "Conduct a feasibility study to start your course of action," consultants Judy Capko and Rebecca Anwar suggested in an article for American Medical News. "It will provide you with objective information to evaluate existing services and strengths. You will gain an understanding of the competition and marketplace indicators that affect your [business]. This is the best way for you to grasp the impact of future decisions you may be considering. The feasibility study will help you accurately anticipate what will and will not work in varied situations. You will be able to determine what resources are essential to complete varied situations and gain an understanding of how to draw on your strengths." Steps in Conducting a Feasibility Study The main objective of a feasibility study is to determine whether a certain plan of action is feasiblethat is, whether or not it will work, and whether or not it is worth doing economically. Although the core of the study is dedicated to showing the outcomes of specific actions, it should begin with an evaluation of the entire operation. For example, a good feasibility study would review a company's strengths and weaknesses, its position in the marketplace, and its financial situation. It would also include information on a company's major competitors, primary customers, and any relevant industry trends. This sort of overview provides small business owners and managers with an objective view of the company's current situation and opportunities. By providing information on consumer needs and how best to meet them, a feasibility study can also lead to new ideas for strategic changes. The second part of a good feasibility study should focus on the proposed plan of action and provide a detailed estimate of its costs and benefits. In some cases, a feasibility study may lead management to determine that the company could achieve the same benefits through easier or cheaper means. For example, it may be possible to improve a manual filing system rather than purchase an expensive new computerized database. If the proposed project is determined to be both feasible and desirable, the information provided in the feasibility study can prove valuable in implementation. It can be used to develop a strategic plan for the project, translating general ideas into measurable goals. The goals can then be broken down further to create a series of concrete steps and outline how the steps

can be implemented. Throughout the process, the feasibility study will show the various consequences and impacts associated with the plan of action. In most cases, a feasibility study should be performed by a qualified consultant in order to ensure its accuracy and objectivity. To be able to provide a meaningful analysis of the data, the consultant should have expertise in the industry. It is also important for small businesses to assign an internal person to help gather information for the feasibility study. The small business owner must be sure that those conducting the study have full access to the company and the specific information they need.

Q3. Describe the CPM model. Explain network cost system


CPM Model : The Critical Path Method (CPM) is one of several related techniques for doing project planning. CPM is for projects that are made up of a number of individual "activities." If some of the activities require other activities to finish before they can start, then the project becomes a complex web of activities. CPM can help you figure out how long your complex project will take to complete which activities are "critical," meaning that they have to be done on time or else the whole project will take longer If you put in information about the cost of each activity, and how much it costs to speed up each activity, CPM can help you figure out whether you should try to speed up the project, and, if so, what is the least costly way to speed up the project.

Network cost system: The techniques of PERT and CPM discussed above are essentially time oriented. They seek to answer questions like : What is the most desirable time schedule of activities? How much time would it take, on an average, to complete the project? What is the probability of completing the project in a specified time?

Such analysis largely overlooks the cost aspect which is usually as important as the time aspect and sometimes even more. To provide a vehicle for cost planning and control of projects, the network cost system was developed. This represents a very useful supplement to the traditional time-oriented network analysis. Let us look at cost projection and cost analysis and control under the network cost system. Projected costs or budgeted costs assists in analyzing variances while balancing actual costs incurred on the project from time to time and keeps a proper check on the overall budget. Budgeted costs also happen to be an indicator of the extent the project can be crashed in case of emergency. For instance common wealth games project for Delhi crossed the budgeted costs by more than 40% to meet the project deadlines in time. When work on the project began in 2006 the mega budget was Rs. 22,000 crore. Four years later the budget is Rs. 30,000 crore. It swell by nearly 40 % forcing the Delhi government to increase taxes and roll back crucial subsidies. The budget for 11 stadia was Rs. 1200 crore in 2004 and it rose to Rs. 5000 crore. Also, construction was way behind the deadline. All projects were delayed,

including the Common wealth village sub-project. Which had a budgetof Rs. 465 crore in 2004 and got completed with Rs. 1400 crore. All this happened of the lack of knowledge on fundamentals of networking times and costs factors.
Q4. Explain the project cost estimate and budgets Cost aggregation: Individual costs are aggregated in many different ways for budgeting purposes, including at the deliverable, work package, summary activity, or other classification levels.

Reserve analysis: Reserves are time or cost buffers in the project schedule or budget that help the project counter or respond to uncertainties. Reserve analysis monitors these buffers and will reduce, use, or eliminate them based on the current situation.

Expert judgment: Expert judgment is based upon the experience and knowledge of subject matter experts. It is used to assess and evaluate the inputs and the information the experts contain.

Historical relationships: A historical relationship refers to the characteristics of the current and past projects that can be used to develop models that aid in budgeting.

Funding limit reconciliation: Funding limit reconciliation matches the projects planned need for funding with the organisations ability to provide that funding. It can be thought of as resource leveling for finances because it reschedules activities to make sure that the budget for the scheduled activities does not exceed the available budget for that period. For instance, if the estimated cost for scheduled activities in the second month of a project is estimated to be Rs 50,000, but the organisation can only provide funding for Rs 40,000 then there is Rs 10,000 of work that has to be rescheduled to another month. Cost performance baseline: The cost performance baseline is a duration-phased budget that is used for project cost management, monitoring, and reporting. Though they are both derived from the same source, the project budget and project cost baseline are not interchangeable terms. The cost baseline is a component of the project performance baseline. In addition to knowing the project funding requirements, organisation needs to know when the project will need money. the performing

The project cost baseline can effectively show many different views of project performance. A project will have several different cost-related baselines that will focus on specific cost categories, such as Labour costs, raw material costs, or any other cost classification that is necessary for monitoring. Just as with all other baselines, the cost baseline reflects all approved changes. Project funding baseline: Project funding baseline refers to the entire estimated cost of the budget, including any contingency or management reserves. The performing organisation needs to know the financial costs of the project so that it can compute appropriate money. The entire estimated cost of the budget, including any contingency or management reserves, is the project

funding requirements. When we are referring to the projects budget, we are usually talking about projects base costs. Every organisation will each have different requirements and terminology for the contents and categorisation of the project budget, but a budget is usually classified in the same categories as what was used by the resource breakdown structure. At a broad level, the budgetary classifications are generally:

Reserves Labour/Personnel Professional, Contracted, or Outside Services Supplies, Materials Equipment, Hardware, and Software Training, Travel Licenses, fees Indirect Costs

The performing organisation will also need to know when it can expect project costs to be incurred, so the projects budget is also shown by calendar periods. When the project cost is broken down into a time-phased budget, it serves as the project cost performance baseline.

Q5. a. Discuss the relationship between project manager and line manager. b. What are the strategies used to reduce risk?

a.

Project manager and line manager interface refers to working relationship between project manager and line manager to get project activities accomplished within constraint of limited time, allocated cost and specified quality performance. Project manager is fully responsible to achieve the project objectives within the parameters (constraints) of time, cost and quality standard. Project manager needs all types of human and non-human resources like money, man-power, materials, equipment, information and technology etc. for the successful completion of a project through smooth operation of project activities. But project manager does not control the resources directly accepted the project budget. The resources are collected by line managers, they are often called as resource manager. They assign directly to resources to projects. Project mangers control only those resources which are temporarily loaned by line managers. S/he reminds the line managers that there are also time and cost constraints of the project. This is the starting point for better resource control. Therefore project manager must negotiate with all line mangers for pooling require resources on time. Project manager always requires to interface with the line mangers for the following major purposes. To get needed resources from functional department on time. To get good support of line managers while negotiating with various parties in connection with project work. To achieve harmonization between project works and line department's work. To get technical and managerial assistance. To solve the project related problems.

The effective project management and project success is highly dependent on working relationship between project manager and line manger. So there must be better coordination, reporting, communication and negotiation between them for good working relationship. Moreover to promote good working relationship, project manager should help a proper understanding of; Quantitative tools and techniques for planning, scheduling and controlling work. Organization structure, own job description. Open communication with line managers including effective coordination. Organizational behavior to tackle the problems of dual reporting system.

b.

Risk handling simply means risk treatment. This involves identifying various options for treating risk, analysing the different options for treating the risk, preparing risk treatment plans based on the assessments made, and implementing the plans. Retaining/accepting risk When organisations identify potential risks, they put effective measures to eliminate them. However, an element of risk can be retained if it is deemed acceptable to the organisation after putting controls in place. Retaining/accepting risk is a good strategy only when it is impossible to transfer the risk. Depending on an evaluation of the economic loss, it is determined that a very small value placed on the risk can be safely absorbed. Another situation where you can retain a risk is when the probability of loss is so high that transferring the risk would cost as much as the cost due to the worst loss that can occur. So to say, if there is a high probability of loss, it may be best to retain the risk rather than transferring it to other involved party. Now let us discuss the aspect of the organisation retaining/accepting a risk with an example. G. K services are a service provider in telecom who had signed on many projects which had to be completed in a short span of time. Initially, G.K services planned to outsource the projects. It was found that outsourcing would cost them much more than the income generated from the project. So they decided to retain the risk of a delayed delivery rather than outsourcing the same. Risk abatement Risk abatement can be used as a process for combining loss prevention or loss control to minimise a risk. Organisations may include any one of the following plans to reduce the risk. Those plans include risk policies and procedures, testing, technical controls, training of staff, preventative maintenance, supervision, contract conditions, quality assurance programs, audit compliance programs and so on. This strategy helps to reduce the loss potential and decrease the frequency or severity of the loss. Risk abatement is preferably used in conjunction with other strategies, since using this risk management method alone will not totally eliminate the risk. Mitigating consequences of risk occurrence It is important to mitigate the consequences of the risk occurrence if it cannot be eliminated altogether. Some of the risk mitigating measures include effective contingency plan, disaster recovery and business continuity plans, off-site back-up, public relations, emergency procedures and staff training and so on.

Transferring risk Organisations can distribute the perceived risks to another involved party by the use of contracts, insurance, outsourcing, joint ventures or partnerships and so on. Avoiding risk Organisation can avoid risks completely, wherever practically posible, by deciding not to proceed with the activities which are likely to throw risks. For example: following the review of a contract, if a client determines that a project is just too risky then the client may decide not to bid the work at all, or remove that element of the work from their bid, sometimes using an alternate deduct to describe the exclusion. Risk avoidance is strictly a business strategy, and sometimes an astute strategy if supporting documents are unclear, ambiguous or incomplete

Q6. Discuss the concept of quality and project quality management. Ans:
The term quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general definition, but rather to ensure that an organization or product is consistent, can be considered to have four main components: quality planning, quality control, quality assurance and quality improvement. Quality management is focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. Quality management is a recent phenomenon. Advanced civilizations that supported the arts and crafts allowed clients to choose goods meeting higher quality standards than normal goods. In societies where arts and crafts are the responsibility of a master craftsman or artist, they would lead their studio and train and supervise others. The importance of craftsmen diminished as mass production and repetitive work practices were instituted. The aim was to produce large numbers of the same goods. The first proponent in the US for this approach was Eli Whitney who proposed (interchangeable) parts manufacture for muskets, hence producing the identical components and creating a musket assembly line. The next step forward was promoted by several people including Frederick Winslow Taylor a mechanical engineer who sought to improve industrial efficiency. He is sometimes called "the father of scientific management." He was one of the intellectual leaders of the Efficiency Movement and part of his approach laid a further foundation for quality management, including aspects like standardization and adopting improved practices. Henry Ford was also important in bringing process and quality management practices into operation in his assembly lines. In Germany, Karl Friedrich Benz, often called the inventor of the motor car, was pursuing similar assembly and production practices, although real mass production was properly initiated in Volkswagen after World War II. From this period onwards, North American companies focused predominantly upon production against lower cost with increased efficiency.

Project Quality Management: Project quality management begins by defining the quality standards to be used for the project. This definition will come from the stakeholders, beneficiaries, and often

from the overall standards for the organisation. Careful identification of the quality standards will help to ensure a successful project outcome that will be accepted by the stakeholders. In addition to quality standards for the end result of the project, there may also be organizational quality standards for the end result of the project, there may also be organizational quality standards that must be met for the actual management of the project , such as certain types of reporting or project tracking methods. It describes the processes required to ensure that the project will satisfy the needs for which it was undertakes. The knowledge area of project quality management includes the organizational processes that determine the quality policies, objectives, and responsibilities. It consists of quality planning, quality assurance, and quality control. Below figure depicts the project quality management process.

Step 1 : Quality Planning

Step 2 : Quality Assurance

Step 3 : Quality Control

Fig: Project Quality Management Process