September,2013

MACAURO
NEWSLETTER TO EDUCATE AND EMPOWER
1st TO 15th February 2014 Volume III

VISION
MACAURO would be guiding force for nurturing and developing tomorrows Management Specialists who in turn become role models to others by adopting and exhibiting true knowledge and ethical values.

EDITORIAL
Dear Members,

MISSION
MACAURO will drive the stakeholders through 5 I Techniques -imbibe, invoke, improve, inculcate and involve and through need based initiatives to overcome the challenges and to boost up their morale and confidence to face the competitive world.

Welcome to the third Issue of our fortnightly, MACAURO Newsletter. Main purpose of this newsletter is to create awareness about current issues and create interest and curiosity in our students by ensuring their full participation. We hope you will find this a useful update on our activities and would like to thank everyone who has supported this edition by providing useful information. We have included concise information on history of project management and Top 10 project management trends in 2014 at the Titbits column We have included ancient quotes for day to day life. We have simple questions in the Quiz column for testing students knowledge on commerce related subjects. Kindly participate in answering the same and send answers by due date. Lucky students who give maximum correct answer will win gift vouchers. Co-ordinators of all the teams have been extremely proactive in bringing this newsletter. We are looking forward to continuing this productive channel of information interchange throughout the MACAURO community. The future success of the Newsletter depends on your comments, contributions and ideas! We do encourage all of you to try your utmost best to enrich the forthcoming MACAURO Newsletters!.

CONTENTS 2 Cover Article

Management Smitha S and History of Project its Life Cycle

8 8 9

News and Events Commerce Quiz TIT BITS

Top ten Management Trends in 2014 Project

We hope you enjoy this February I Issue for 2014 of the MACAURO Newsletter. Regards, Radhika and Priyadarshini (Coordinators of MACAURO community) Macauro13@gmail.com

Facts and Figures

The best revenge is massive success. Frank Sinathra

-2-

COVER ARTICLE
History of Project Management

History of Project Management and Its Life Cycle

Smitha S, M.Com

Project management has evolved to plan, coordinate and control the complex and diverse activities of modern industrial, commercial and management change and IT projects. All projects share one common characteristic the projection of ideas and activities into new endeavors. The ever-present element of risk and uncertainty means that the events and tasks leading to completion can never be foretold with absolute accuracy. Examples abound of projects that have exceeded their costs by enormous amounts, finishing late or even being abandoned before completion. Such failures are far too common, seen in all kinds of projects in industry, commerce and especially the public sector. The purpose of project management is to foresee or predict as many of the dangers and problems as possible and to plan, organize and control activities so that projects are completed successfully in spite of all the risks. This process should start well before any resource is committed, and must continue until all work is finished. The primary aim of the project manager is for the result to satisfy the project sponsor or purchaser and all the other principal stakeholders, within the promised timescale and without using more money and other resources than those that were originally set.

Before 1900 Wonderful projects People cheap, even expendable Urgency not driven by the rat-race Management organization structures seen in the church and the military No management scientists No project management profession
Projects before 1900 were generally managed by the creative architects and engineers themselves. There was no separately recognized profession of project management. Commonsense, determination, hard work usually got the job done. The time had not yet come for the industrial engineers and behavioural scientist who would eventually study working practices, organization theory and people at work. 1900 1949 Emergence of management science People begin to study work and people at work Henry Gantt introduces his famous planning charts Early development of critical path Networks Rapid industrialization and the demands of munitions production in World War 1 saw the emergence of management scientists and industrial engineers such as Elton Mayo and Frederick Winslow Taylor, who studied people and productivity in factories (Kanigel, 1997). Henry Ford made production-line manufacture famous with his Model T automobile and, especially important for project managers, Henry Gantt (18611919), who worked for Taylor, developed his nowfamous charts which are still popular and used universally today

The biggest failure you can have in life is making the mistake of never trying at all.

-3It is not generally appreciated that early examples of critical path networks were developed before 1950, although their value was not widely appreciated at the time. Without the existence of computers, they were inflexible to change, tedious to translate into working schedules and thus impracticable and difficult to use. Gantts bar charts were generally preferred, often set up on proprietary charts that allowed rescheduling using movable magnetic or plug-in strips or cards. Everything from the allocation of work to people and machines to holiday schedules was controlled by charts, usually prominently displayed on office walls.

The year 1968 saw publication of the first edition of this book, at a time when most other publications dealt with planning and scheduling as separate techniques rather than treating project management holistically as a management discipline. 1970 1979 o o o o o o Industrial project management IT project management Creation of professional associations More project management software Legislation for health and safety Anti-discrimination laws introduced

1950 1969 US defence projects exploit critical path network analysis Mainframe computers can run project management software in batch mode Project management becomes a recognized profession More concern for people at work

The emergence of mainframe digital computers made the processing and updating of critical path networks faster and easier. The American defence industry and Du Pont were among the organizations quick to exploit this powerful planning and scheduling tool in the 1950s. The manufacturing and construction industries soon came to recognize the benefits of these new methods. Computers were large, extremely expensive, and required their own dedicated air-conditioned clean rooms. Their capital and operating costs were beyond the budgets of all but the biggest organizations, so that many planners in smaller companies bought their computing time from bureaux, where project schedules were processed in batch mode. These bureau facilities were provided both by computer manufacturers and by large companies whose computers had free time Project management became a recognized job description, if not yet a respected profession. Companies were showing more concern for the welfare of people at work, although discrimination because of race, sex and age was still too common.

This period saw rapid growth in information technology, or IT (as it soon became known). Industrial project management continued as before, but with more project management software available and wider recognition of the role. However, the spread of IT brought another, different kind of project manager on the scene. These were the IT project managers: people who had no project planning or scheduling experience and no interest or desire to learn those methods. They possessed instead the technical and mental skills needed to lead teams developing IT projects. These IT project managers were usually senior systems analysts, and one of their characteristics was their scarcity. High demand for their services led them to make frequent career jumps, moving rapidly up a generous salary scale.
Development of the professional project management associations grew during this period, which also saw the development of legislation to protect workers health and safety. Other new laws were intended to discourage unfair discrimination of people because of their race, religious beliefs or sex..

Do not forget small kindness and do not remember small faults. Chinese

-4Project management although project management software became more widely available, processing continued to be carried out on big expensive mainframe computers in batch mode. Graphics were primitive compared with modern equipment. Data input was still accomplished by copying data from network diagrams on to coding sheets from which cards had to be punched and verified, sometimes needing two cards for every network activity. After sorting, these punched cards had to be taken to trained computer operators, who worked in clean air-conditioned rooms where entry was usually forbidden to project managers. The first process results always seemed to produce a large pile of print-out listing a crop of errors that needed considerable detective work before the faults could be identified, and then corrected by punching several new cards before the computer could produce its practical working schedules. All the output reports in those early computing days came as text from line printers, so that graphics such as bar charts were crudely formed from patterns of alphanumeric characters. Yet the process was stimulating, exciting and fun. We had our mishaps, for example when over 2000 pre-sorted punched cards were accidentally scattered over the floor of the London taxicab that was transporting them to the computer bureau. But we got our schedules calculated, managed our projects and enjoyed ourselves in the process 1980 1989 Desktop computers can run powerful Project management software Better graphics, with colour Managers less dependent on IT experts Computers cannot now run arrow networks and Precedence becomes the norm Wider acceptance of Project Management as a Profession During this decade project managers became far less dependent upon IT experts. They now had their own desktop computers that could run most project management software. Graphics were greatly improved, with smaller printers available locally in the office that could produce complex charts in many colours. However, productivity did not match this growth in technology as quickly as one might have expected because managers became more interested in the technology itself than in the work that it was intended to manage. People were frequently seen grouped round each others screens asking questions such as What happens if you do this? and Have you tried that? or Why has it crashed and lost all my data? In other words managers had to learn to become computer literate and be far less dependent on IT experts. Software that could run activity-on-arrow networks became obsolete. All planners have since had to use activity-on-node (precedence) networks in their computers and adapt to the relatively small areas of network visible on the small screen. However, processing times were cut dramatically, so that schedules could be up and running much faster for new projects. Schedules could now be updated almost immediately from the planners own keyboard to cope with progress information and project changes.

1990 2000+ PCs and notebooks can run all applications More interest in project risk IT and industrial project management no longer considered so differently Project management is a respected profession with flourishing associations

Wider acceptance of project management as a profession Worldwide Communication by satellite and the Internet.

things you cannot recover in life: the WORD after its said, the MOMENT after its missed and the TIME after its
gone. Be Careful.! Unknown

-5-

Practically all software suppliers recognized the need to make their products compatible with Microsoft Windows. Microsoft themselves introduced Microsoft Project into their Office suite of programs. One or two operating and plotting faults in very early versions of Microsoft Project were eliminated in later versions, and the program is now by far the most widely used, especially among students who appreciate its user-friendly features (www.microsoft.com/office/project). However, many professionals continue to use programs at the high end of the software market, preferring their greater power, versatility and adaptability for particular project applications. Project risk is taken seriously and people pay more attention to predicting risk events so that contingencies and risk mitigation strategies can be planned. Of immense importance is the power of communication made possible by satellites and the Internet, effectively shrinking the world and making it possible to transmit drawings, reports and other documents almost instantaneously to almost anywhere. Introduction Project management is no longer considered as two separate branches (one for industrial projects and another for IT projects). There is wider and welcome acceptance that managing company changes as projects can bring faster and better results. In spite of failures, we should be proud of the many successful modern projects, in aviation, aerospace, construction, medicine and all other branches of human industry. Apart from the threat of hostilities and terrorism, it seems certain that climate change and the exhaustion of natural fossil fuel resources will provide the biggest challenges in the future. We shall need effective project managers to deal with these challenges if humankind is to survive

Phases of Project Management Life Cycle Some projects come into being gradually, and others fade out slowly, so that their precise beginning and end dates can be difficult to recognize. However, most projects have not only actual beginning and end dates but also one or more significant dates between these can be identified as key events or milestones. The period between the beginning and end of a project is usually referred to as the project lifecycle. It is convenient and necessary here to introduce three key players in the project life cycle: The customer (in some projects known as the client) is the person or organization that wants to buy the project and put the end product to use in its own business or sell (or lease) it on to a third party. The contractor is the organization principally responsible to the customer for carrying out the project work. The project manager is people employed by the contractor (or occasionally by the customer) to plan and manage all the project activities so that the project is finished on time, within budget and within its specification. Phases of Project Life Cycle: 1. Analysis and Evaluation Process: 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.

When you stop chasing the wrong things you give the right things a chance to catch you. By learning you will teach;
by teaching you will understand - Latin Proverb

-6-

3. Marketing: 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. 4. Design: Based on the inputs received in the form of project feasibility study, preliminary project evaluation, project proposal and customer interviews , following outputs are produced:

6. Post completion analysis: After delivery or completion of the project, the staff performance has to be evaluated. The tasks involved are: o Documenting the lessons learnt from the project o Analysing project feedback o Preparing project execution report o Analysing the problems encountered during the project.

o System design specification o Program functional specification o Program design specification o Project plan 5. Inspecting, testing and Delivery: 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 are: o Managing the customer o Marketing the future work o Performing quality control work t.

Three things you cannot recover in life: the WORD after its said, the MOMENT after its missed and the TIME after
its gone. Be Careful! Unknown

-7-

NEWS AND EVENTS

Date: Event: Venue:
7th Feb 2014 (Friday) Management Game FISH BOWL College Auditorium

Date: Event: Venue:

30th Jan 2014 (Friday) FDP Paper Presentation College Classroom

COMMERCE QUIZ
Commerce Quiz
1. The loss on the sale of furniture is debited to a. P&L a/c b. Furniture a/c c. Trading a/c d. Depreciation a/c

2. Disinvestment commission was set up in: a. 1995 b. 1996 c. 1997 d. 1998

3. GIC was incorporated in : a. Jan 1972 b. July 1972 c. Nov 1972 d. Jan 1973 4. What is the maximum limit of FDI in insurance sector in India? a 26% b. 49% c. 23% d. 10%

5. Minimum paid up capital required to incorporate a public limited company is a. Rs.20000 b. Rs.100000 c. Rs.500000 d. Rs.1000000

Kindly, send in your answers by 28th Feb 2014 to Commerce and Management department or sent it via email to macauro13@gmail.com (Mention your Name, Class and Section)

Knowledge and Royalty cannot be weighed together

TIT BITS

-9-

Top ten Project Management Trends in 2014

Virtual Learning Agile expands in Asia

FACTS AND FIGURES

Project Management Institutes new Credential

Seeking professional help Implementing Project portfolio Management Tools Servant leadership Benchmarking Approaches to get back on track Job Placement ( 4200 project management positions available on LinkedIn Only in New York) Leading the team not Managing

Till January Government distributes 57 Crores Adhar Cards. Rupee to Dollar stands at Rs 62.11 Madhya Pradesh, Odhisa and Manipur excel in food grain production 2012-13. Implementation of Food Security Bill to cost government Rs 88,500 cr. India and Asian Development Bank (ADB) Sign $275 Million Loan Agreement to Improve Rural Roads Connectivity.

Newsletter will be uploaded on to the web every fortnight. We invite readers contribution in the form of articles or short essay on topics relating to commerce and management. E-mail the soft copy of the same to macauro13@gmail.com by 5th and 20th of every month. Feel free to give suggestions, opinions and reactions to any of the article published. Contact Media information. Team for any further

www.macauro.blogspot.in www.facebook/macauro.macauro

-6-

Newsletter will be uploaded on to the web every fortnight. We invite readers contribution in the form of articles or short essay on topics relating to commerce and management. E-mail the soft copy of the same to macauro13@gmail.com by 5th and 20th of every month. Feel free to give suggestions, opinions and reactions to any of the article published. Contact Media information. Team for any further

www.macauro.blogspot.in www.facebook/macauro.macauro

During travel (journey), knowledge takes care like mother. Thus knowledge is