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					Assignment: Project Management


Q.1 A). Define a Project and bring out its main characteristics. In your opinion
why a project is required ?

Ans: A project is an organized program of activities out to reach a defined goal. It is
of a non recurring nature with a specified terminal point. It is a package of time bound,
scheduled and assembled activities dedicated to the attainment of a specific objective of
successful completion of work on time and within the allocated budget.

The concept of 'project' means different things to different users, or reflects different
frames of reference.

Project usually involve a certain degree of innovation and are in contract with 'routine'
activities. They are characterized by a beginning (start), and end and usually involve a
specific team called the project team. Projects involve risk and are typically constrained
by limited resources.

Typical projects includes (but are not limited to): - Engineering projects when the
objective is to build a new engineered device - Industrial projects when the purpose is to
create a new production unit or factory - Construction projects when buildings or civil
work is involved - Economic projects also called development projects where land is
usually involved - IT projects, often software development projects, but also
establishment of a data room - Start-up projects or new ventures involve creation of a
new company to exploit an invention or a unique know-how in some field....

Projects have been in existence for centuries, and although they may be in quite different
fields, they have numerous methodologies in common that are independent of the field
they are dealing with. These methodologies called 'project management' have to do
primarily with organization, scheduling, teamwork, communication and management.

A broader definition of a Project is as follows.
1. A project involves a single definable purpose, end time or result, usually specified in
terms of cost, schedule, and performance requirements.
2. Every project is a unique in that it requires doing something different than was done
previously. Even in routine projects such as home construction, variables such as terrain,
access, zoning laws, labor market, public services, and local utilities make each project
different. A project a one time activity never to be exactly repeated again.
3. Projects are temporary activities. An ad hoc organization of personal, material, and
facilities is assembled to accomplish a goal, usually within a scheduled time frame, once
the goal is achieved the organization is disbanded or reconfigured to begin work on a new
goal.
4. Projects cuts across organizational lines because they need the skills and talents from
multiple professions and organizations. Project complexity often arises from the


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complexity of advanced technology, which creates task inter dependencies that may
introduce a new and unique problems.
5. Given that a project differs from what was previously done, it also involves
unfamiliarity. It encompasses new technology and for the organization under taking the
project, posses significant elements of uncertainty and risk.
6. The organization usually has something at stake when doing a project. The activity
may call for special scrutiny or effort because failure would jeopardize the organization
or its goals.
7. Finally a project is the process of working to achieve a goal during the process, a
project passes through several distinct phases, called the project life cycle. The tasks,
people, organizations and other resources expenditure slowly build with each succeeding
phase peak and then decline as the project nears completion.
The most obvious characteristics of a project is that it has to achieve a particular purpose
and this is normally indicated in the projects name. Mumbai-Pune express highway
project, Reliance petroleum refinery project, Bharti telecom project, The Hindustan lever
compensation survey project, Nagarjuna fertilizers project, The chinnaswamy stadium
project, The national sports complex project, The hinduja hospital projects, etc.
This distinguishes it form routine activities which are part of an organization‘s normal
business, such as running a payroll, editing a daily news paper or producing another ten
thousand of beans, or cars, or motors or bicycles.
A project is a job that is done one time. Cooking a meal is one project. A heart surgery
is a project.
Its most useful to think a project as an instrument of change. When the project is
successfully completed, it will have an impact on people‘s lives by changing their
working patterns or by changing their environment. Managing change is clearly different
and at times much harder than managing the status quo, and it is for this reason that
projects are established to effect such change in a controlled manner.
Projects can vary huge both in their subject and in their size. A project can range from
putting a man on the moon, to selecting a new coffee making machine. Projects exists in
all sorts of different types of business, such as information systems, event management,
construction, finance, marketing, industrial research and the local municipal corporation.
Or even as personal as building your own house.
More ever no two projects are the same. A project to stage this year‘s filmafare awards
contest may look similar ton last year‘s, but its objective will be different, the
circumstances will have changed and it will involve different people.

The main characteristics of a project that:
   1. Its an instrument of change
   2. It has clearly identifiable start and finish
   3. It has a specific aim
   4. It results in something being delivered.
   5. It is unique
   6. It is the responsibility of a single person or body
   7. It involves cost, resources and time
   8. It uses a wide variety of resources and skills




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Another way ok looking at a project is that
   1. It has a start and finish
   2. It has a time frame for completion
   3. It has a unique one – timeness
   4. It has an involvement of several people on a ad-hoc basics
   5. It has a limited set of resources
   6. It has sequencing of activities and phases.

Project could be a national or international, industrial or non industrial, R&D, high
technology, conventional technology or low technology projects.             In a finer
categorization, projects could be further classified as major, medium or mini projects.
Again they could be grass – root, expansion or modification projects. Depending on the
speed needed for execution, the projects could be categorized as
    - Normal projects (where adequate time is allowed)
    - Cash projects (where additional costs are concerned to gain time)
    - Disaster projects (anything needed to gain allowed)

A project could be under taken for one of these needs

       To acquire balancing resources to correct imbalances in capacity\
       To upgrade the technology
       To replace the used up or worn out assets
       To expand projections of existing activities
       To diversify into allied and new lines

Projects are two types
Defensive projects: These are aimed to strengthen the present position e.g. Product
line, technical service, product or process improvement etc.

Aggressive projects: These are concerned with giving new ways of service or entering
new commercial lines or fields, development of an innovative project or process, or a
long range, research oriented program.

Examples of projects are:

   1.   Developing a new product or service
   2.   Making a change in structure, reorganization of staff in an organization
   3.   Designing a new vehicle
   4.   Developing a new or modified information system
   5.   Launching a new product.

Project based management has become the new philosophy through which organization
respond to change effectively to develop and exploit markets ahead of their competitors
and hence project management is the skill that all managers need in their portfolio, along
side more traditional disciplines.



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Project touch all lives, in working and social environments.

Earlier bureaucracies (also known as traditional methods) have been viewed as providing
an efficient, stable and certain environment in which to conduct businesses.
Change was mistrusted. Managing change was limited to specialist, usually technical
functions in an organization, and its introduction was carefully controlled.
That has now changed. Change is endemic, brought about by an explosion in the
development of technology and communication. Rather than being the preferred style of
management, bureaucracies are viewed as restricting an organizations ability to respond
to change and thereby to maintain a competitive edge.
Product development times and market windows are shrinking, requiring, new products
to be introduced quickly and effectively. Organizations must adopt flexible structure to
respond to the changing environment

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Q.1B). What is the “Project management”? Enumerate the activity levels during
various phases of project in an organization.

Ans: Project Management is the discipline of planning, organizing, and managing
resources to bring about the successful completion of specific project goals and



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objectives. A project is a finite endeavor—having specific start and completion dates—
undertaken to create a unique product or service which brings about beneficial change or
added value. This finite characteristic of projects stands in sharp contrast to processes, or
operations, which are permanent or semi-permanent functional work to repetitively
produce the same product or service. In practice, the management of these two systems is
often found to be quite different, and as such requires the development of distinct
technical skills and the adoption of separate management philosophy, which is the subject
of this article.
The primary challenge of project management is to achieve all of the project goals and
objectives while adhering to classic project constraints—usually scope, quality, time and
budget. The secondary—and more ambitious—challenge is to optimize the allocation and
integration of inputs necessary to meet pre-defined objectives. A project is a carefully
defined set of activities that use resources (money, people, materials, energy, space,
provisions, communication, motivation, etc.) to achieve the project goals and objectives

It‘s the application of skills, knowledge, tools & techniques to meet or exceed stake
holder requirement from a project.
The tools are to means to an end. The desired end is a successful project that contributes
to the business success of the organization as well.
Project management is too often thought in terms of discrete tools such as schedules and
status reports with a concomitant lack of understanding of its value and corresponding
lack of commitment to effective implementation.


As a discipline, project management developed from different fields of application
including construction, engineering, and defense. In the United States, the forefather of
project management is Henry Gantt, called the father of planning and control techniques,
who is famously known for his use of the Gantt chart as a project management tool, for
being an associate of Frederick Winslow Taylor's theories of scientific management, and
for his study of the work and management of Navy ship building. His work is the
forerunner to many modern project management tools including the work breakdown
structure (WBS) and resource allocation.

The 1950s marked the beginning of the modern project management era. Again, in the
United States, prior to the 1950s, projects were managed on an ad hoc basis using mostly
Gantt Charts, and informal techniques and tools. At that time, two mathematical project
scheduling models were developed: (1) the "Program Evaluation and Review Technique"
or PERT, developed by Booz-Allen & Hamilton as part of the United States Navy's (in
conjunction with the Lockheed Corporation) Polaris missile submarine program and (2)
the "Critical Path Method" (CPM) developed in a joint venture by both DuPont
Corporation and Remington Rand Corporation for managing plant maintenance projects.
These mathematical techniques quickly spread into many private enterprises

In 1969, the Project Management Institute (PMI) was formed to serve the interest of the
project management industry. The premise of PMI is that the tools and techniques of
project management are common even among the widespread application of projects



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from the software industry to the construction industry. In 1981, the PMI Board of
Directors authorized the development of what has become A Guide to the Project
Management Body of Knowledge (PMBOK Guide), containing the standards and
guidelines of practice that are widely used throughout the profession. The International
Project Management Association (IPMA), founded in Europe in 1967, has undergone a
similar development and instituted the IPMA Competence Baseline (ICB). The focus of
the ICB also begins with knowledge as a foundation, and adds considerations about
relevant experience, interpersonal skills, and competence. Both organizations are now
participating in the development of an ISO project management standard.

Project management has developed quite remarkably over the last 20 years from a
systems oriented methodology, through ‗goal-orientation‘ to project bases management.
From a topic in which computers were pre – eminent, to one in which people,
interpersonal and inter group relationship predominate.

Project management focuses on a project. A project is undertaking that has a beginning
and an end is carried out to meet established goals within cost, schedule, and objectives.
Project management brings together an optimizes the resources necessary to successfully
complete the project. The resources include the skills, talent, and co operative effort of a
team of people, facilities, tools, and equipment information, systems, and techniques and
money.

Project management is composed of several different types of activities such as:

   1. Analysis & design of objectives and events
   2. Planning the work according to the objectives
   3. Assessing and controlling risk (or Risk Management)
   4. Estimating resources
   5. Allocation of resources
   6. Organizing the work
   7. Acquiring human and material resources
   8. Assigning tasks
   9. Directing activities
   10. Controlling project execution
   11. Tracking and reporting progress (Management information system)
   12. Analyzing the results based on the facts achieved
   13. Defining the products of the project
   14. Forecasting future trends in the project
   15. Quality Management
   16. Issues management
   17. Issue solving
   18. Defect prevention
   19. Identifying, managing & controlling changes
   20. Project closure (and project debrief)
   21. Communicating to stakeholders
   22. Increasing/ decreasing a company's workers



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Project objectives define target status at the end of the project, reaching of which is
considered necessary for the achievement of planned benefits. They can be formulated as
S.M.A.R.T.
    Specific,
    Measurable (or at least evaluable) achievement,
    Achievable (recently Acceptable is used regularly as well),
    Relevant and
    Time terminated (bounded).
    The evaluation (measurement) occurs at the project closure. However a
       continuous guard on the project progress should be kept by monitoring and
       evaluating.

Project management differs in two significant ways. First, it focuses on a project with
infinite life span, whereas departments or other organizational units expect to exist
indefinitely. Second, projects frequently need resources on a part time basis, whereas
permanent organizations try to utilize resources full time. The sharing of resources
frequently leads to conflict and requires skilful negotiation to see that projects get the
necessary resources to meet objectives throughout their project life.

All projects have some basic underlying structure. What ever be the project, it will
develop over four distinct phases.

    1.   The conceptual and Definition Phase.
    2.   The planning phase.
    3.   The implementation or Execution phase.
    4.   The completion and review phase.

Project management means management of all four phases of a projects life cycle to meet
the established goals of time, cost and quality.




Typical Activity Levels During the Phases of a Project‟s Life

Defining the Project   Planning the Project   Implementing the Plan   Completing the project




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A
c
t
v
i
t
y

l
e
v
e
l

                                   Time


Keenly observe fro the graph that the time (that should be )taken in conceptualizing
defining the project and in planning the project is (and should be) high – this is important
to understand for it lays the foundation for the implementation phase and the project will
get completed smoothly.

The primary reason why many projects have time and cost over runs resulting in poor
quality. Unfinished tasks and leave a feeling of being short – changed, disgusted,
cheated, leading to litigation and unpleasantness is because they are ill – convinced.

The nature of these phases will, of course vary, depending on the type of project. So too
will the time taken to go through them, from minutes to years.
Typically a project will begin as the result of a report of feasibility study. (The work to
undertake the feasibility study may well itself have been run as an individual project).
The feasibility study will have defined the problem which is being addressed (e.g. It takes
too long to travel from Mumbai to Pune) It may have investigated what the real
requirements are (e.g. we need to be able to travel from Mumbai to Pune in less then two
hours ). It will have evaluated alternative solutions and recommended a course of action.
1. The conceptual Phase: It includes identifying needs, establishing feasibility,
searching for alternatives, preparing proposals, developing basic budgets and naming the
starting project team.
The conceptual phase of the Project life cycle defines the project, so management can
decide to pursue or not. The purpose is to yield the tools, so someone can make an
informed decision and envision the project's intent, scope, benefits and costs. There are
several tools that can be used to paint the picture for executive management.
One of the first items that needs to be completed is to determine what is required, needed,
and or desired. This is done with simplified use case modeling. Discover the actors, their



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functions, and goals. Detail these use cases in simple paragraphs to capture the essence of
the case
As you are discovering the intended usage of the system, it is a good idea to start a risk
list, and how you intend to manage each risk. It‘s best to identify and start working on
risks in the beginning instead of the end.
Since no one really refers to the same term in the same manner, another item to ha ve is a
glossary. This will help to define terms. In healthcare there are several ways to refer to
the same thing. For example the unique number for a patients visit can be either serial
number, patient case number, encounter number, account number, and so on.
After establishing the use cases at a high level, it is time to create the vision document.
This document has many components to capture the intent of the new system. One part
details the problem that is at hand in terms of the root cause. Normally for technology
business cases, the problem is a business processing problem for which a technology
solution can help or eliminate. Another part of the document details the stake holders.
This defines who will be affected by the proposed project and how they will be affected.
The document also includes a portion which covers the functional requirements of the
system.
If you think the vision statement just isn't clear enough, sometimes a prototype can help
to illustrate the solution. This isn't a defined deliverable, but if you believe it will help to
illustrate the point. It may be worth the time to invest.
Another deliverable is the implementation plan or software development plan. At this
point, it is high level, but it does capture the needed resources, and time for tasks within
the project. It‘s a work breakdown structure with people assigned to the tasks.
After there is a clear understanding of the vision of the system is going to be, the next
document that emerges is the executive summary. This document provides a high level
overview of the key findings and recommendations. It is also summarizes the current
situation and the future if enhancements go as planned.
Finally the business case takes all of these components, and analyzes them in conjuncture
with the total cost of ownership, including both one-time and recurring operational costs.
The business case includes the executive summary overview, the risk list, functional
requirements, the resource costs, and the vision of the new system. It is probably ideal to
have this in a format that can be used for multiple projects so they can be compared to
one another.
The business case should be the comprehensive document that allows executive
management to decide the feasibility of the project.

The basic processes of the Project Initiation Phase are:

       Creation of a Product / Project Description Document. This is an informal, high-
    level statement describing the characteristics of the product / project / process to be
    created.
        Development of Project Feasibility Document. This identifies project constraints,
    alternatives and related assumptions applied to the end product to be developed.
    Project feasibility is characterized by four basic components:
    o           Business Problem Description.



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    o          Approach Overview to be used to develop.
    o          Potential Solutions of the problem.
    o          Preliminary Recommendations.
       Development of Project Concept Document. It determines What is to be done?
    How will it be done? and Why is it to be done? Thus determining the business value
    achieved after project completion.
       Creation of Project Charter. Project Charter formally communicates the initiation
    of the project. It consists of Project Scope, Project Authority and Critical Success
    Factors.

During this phase, Project Team is responsible for the following activities:

       Conducting Interviews and yellow pad sessions with customers and stakeholders.
       Conduct research and brainstorming sessions for generating more necessary
    information.
       Preparation of Project Feasibility Document, Project Concept Statement and
    Project Charter.
       Preparation of other ancillary documents as defined in the organization standards.

Some common barriers and problems are faced by Project Managers during the Initiation
Phase which hamper the project to get started. Let us have a summarized look at some of
the common problems:

       Project Team Frustration builds up as the project does not seem to get started.
       There is a Lack of Commitment from the Management and Key Stakeholders.
       Customer Indecision may arise due to non-visibility of the end product by the
    customer.
      Locating the right people can be difficult while assembling the Project Initiation
    Team.
       Lack of consensus on Project Objectives can kill the project before it starts.

2. The planning phase: It involves creating schedules, conducting studies and
analysis, designing systems, building and testing prototypes, analyzing results, and
obtaining approval for production.
The effort spent in planning can save countless hours of confusion and rework in the
subsequent phases.
The purpose of the Project Planning Phase is:
     Establish Business Requirements.
     Establish Cost, Schedule, List of Deliverables and Delivery Dates.
     Establish Resource Plan.
     Get Management Approval and proceed to next phases.
The basic processes of the Project Planning Phase are:


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       Scope Planning. This specifies the in-scope requirements for the project.
       Preparing the Work Breakdown Structure. This specifies the breakdown of the
        project into tasks and sub-tasks.
     Organizational Breakdown Structure. This specifies who all in the organization
        need to be involved and referred for Project Completion.
     Resource Planning. This specifies who will do what work at which time of the
        project.
     Project Schedule Development. This specifies the entire schedule of the activities
        detailing their sequence of execution.
     Budget Planning. This specifies the budgeted cost to be incurred in the
        completion of the Project.
Project Initiation Phase defines a few facilitating processes as well that are required for
successful Project Completion. These can be:
     Procurement Planning. Planning for procurement of all resources (staff and non-
        staff).
     Communication Planning. Planning on the communication strategy with all
        project stakeholders.
     Quality Planning. Planning for Quality Assurance to be applied to the Project.
     Risk Management Planning. Charting the risks, contingency plan and mitigation
        strategies.
     Configuration Management Planning. Defines how the various project artifacts
        will get stored.
Both the basic processes and facilitating processes produces a Project Plan.
During this phase, Project Team is responsible for the following activities:
     Project Managers are responsible for developing the Project Plan thus ensuring
        that all the project planning requirements are fulfilled.
     Functional / Management personnel are responsible ensures that adequate
        resources are available for the project.
     Key Stakeholders should approve the Project Plan before moving to the next
        phase.
Project Planning is essential for a project's success. Project Planning helps team members
to understand their responsibilities and expectations from them. Project Planning Phase
identifies scope, tasks, schedules, risks, quality and staffing needs.

3.The implementation / Execution Phase:              It encompasses procuring and
implementing systems, verifying performance and modifying systems as required.
Project Execution Phase follows the Project Planning Phase and ideally starts once the
Project Plan has been approved and base lined. Project Execution is characterized by the
actual work on the tasks planned and project Control involves the comparison of the
actual performance with the planned performance and taking appropriate corrective
action to get the desired output.

During this phase, Project Team is responsible for the following activities:

       Team Members execute the tasks as planned by the Project Manager.



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       Project Manager is responsible for performance measurement which includes
    finding variances between planned and actual work, cost and schedule.
       Project manager is responsible for providing Project Status Report to all key
    stakeholders to provide visibility.
       All Project Key stakeholders are responsible for the review of the metrics and
    variances.
       All Project Key stakeholders are responsible for taking necessary action of the
    variances thus determined so as to complete the project within time and budget.

The basic processes of the Project Execution and Control can be:

       Project Plan Execution.
       Review of Metrics and Status Reports.
        Change Control Process. This defines the procedures to handle the changes that
    are introduced
       during Project Execution and Control.

The facilitating processes during Project Execution can be:

       Quality Assurance and Quality Control.
       Performance Monitoring.
       Information Distribution or Status Reporting.
       Project Administration.
       Risk Monitoring and Control.
       Scope Control.
       Schedule and Cost Control.
       Contract Administration.

Project Execution and Control Phase has a direct correlation to project progress and
stakeholder's expectations. Even the minor issues, if unnoticed, can cause major impact
on cost, schedule and risk and deviate the project from the Project Plan, thus emphasizing
the importance for the Project Execution and Control Phase.


4. The completion phase: It includes training operational personal, transferring
materials transferring responsibility, releasing resources and reassigning project team
members.

Project completion Phase is the last phase of the Project Life Cycle. The commencement
of the Project Completion Phase is determined by the completion of all Project
Objectives and acceptance of the end product by the customer.



                                            12
Project Closure includes the following tasks:

        Release of the resources, both staff and non-staff, and their redistribution and
    reallocation to other projects, if needed.
       Closure of any financial issues like labour, contract etc.
       Collection and Completion of All Project Records.
       Archiving of All Project Records.
       Documenting the Issues faced in the Project and their resolution. This helps other
    projects to plan for such type of issues in the Project Initiation Phase itself.
       Recording Lessons Learned and conducting a session with the Project Team on
    the same. This helps in the productivity improvement of the team and helps identify
    the dos and donts of the Project.
       Celebrate the Project Completion. Its party time folks!!!

The basic process of the Project Closure Phase involves:

       Administrative Closure. This is the process of preparation of closure documents
    and process deliverables. This includes the release and redistribution of the Project
    Resources.
       Development of Project Post Implementation Evaluation Report. It includes
    o          Project Sign-Off
    o          Staffing and Skills
    o          Project Organizational Structure
    o          Schedule Management
    o          Cost Management
    o          Quality Management
    o          Configuration Management
    o          Customer Expectations Management
    o          Lessons Learned

Lessons Learned form an integral part of the Project Closure Phase. It helps answer the
following typical question during Project Closure.

       Did the delivered product / solution meet the project requirements and objectives?
       Was the customer satisfied?
       Was Project Schedule Met?
       Was the Project completed within Budgeted Cost?
       Were the risks identified and mitigated?



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      What could be done to improve the process?

The outputs from Project Closure Phase provides as a stepping stone to execute the next
projects with much more efficiency and control.


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Q.5 A). Define the planning in a project? Describe various steps in planning

Ans: Planning means listing in detail what is required to successfully complete the
project along the critical parameters of quality, time & cost.

A key activity for any project process is making decisions. The managers of successful
project processes specify the format for how the team will make decisions and who will
make them. Such a format sets down guidelines for meetings, for resolving issues, and
for communication among team members.

Project planning



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Once the project has been defined and the project process organized, the team must
formulate a plan that identifies the specific tasks to be accomplished and a schedule for
their completion. Planning projects involves five steps:
1. defining the work breakdown structure
2. diagramming the network
3. developing the schedule
4. analyzing cost-time trade-offs, and
5. Assessing risks.

Having ensured to a great degree of confidence in the conceptual phase that the project is
feasible we shall now proceed to turn the concepts into reality.

Hence you will appreciate that the planning of project execution. This term ―project
execution ― includes planning monitoring and control. The monitoring and control
activities will be taken up in the implementation phase of the project.
All too often when people think of project planning, they perceive the use of only
techniques and concepts such as PERT & CPM. These techniques are important to use in
the development of a project schedule How ever project planning includes a wider scope
of activity. Project planning also deals with the organizational design to support the
project as well as the information systems and control systems which are used to model,
evaluate and reallocate resources as will be required during the execution of the project.
The basis for planning is the clarity in the scope, time, cost and quality, goals/parameters
which have been established in the conceptual phase.
Project planning begins with the end result – the three goals – and works backward to
ensure that the goals are achieved.

Planning steps:

      Establish the project objective
      Choose the basic strategy for achieving the objective
      Break the project down into sub units or steps
      Determine the performance standard for each sub units
      Determine how much time is required to complete each sub unit
      Determine the proper sequence for completing the sub units and aggregate this
       information‘s in to a schedule for the total project
      Design the cost of each sub units and aggregate cost in to the project budget
      Design the necessary staff organization, including number and kind of positions,
       and the duties and responsibilities of each
      Determine what training, if any, is required for project team members.
      Develop the necessary policies and procedures


The key to a successful project is in the planning. Creating a project plan is the first thing
you should do when undertaking any kind of project.




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Often project planning is ignored in favour of getting on with the work. However, many
people fail to realize the value of a project plan in saving time, money and many
problems

Project Goals: A project is successful when the needs of the stakeholders have been
met. A stakeholder is anybody directly or indirectly impacted by the project.

As a first step it is important to identify the stakeholders in your project. It is not always
easy to identify the stakeholders of a project, particularly those impacted indirectly.
Examples of stakeholders are:

      The project sponsor
      The customer who receives the deliverables
      The users of the project outputs
      The project manager and project team

Once you understand who the stakeholders are, the next step is to establish their needs.
The best way to do this is by conducting stakeholder interviews. Take time during the
interviews to draw out the true needs that create real benefits. Often stakeholders will talk
about needs that aren't relevant and don't deliver benefits. These can be recorded and set
as a low priority.

The next step once you have conducted all the interviews and have a comprehensive list
of needs is to prioritise them. From the prioritised list create a set of goals that can be
easily measured. A technique for doing this is to review them against the SMART
principle. This way it will be easy to know when a goal has been achieved.

Once you have established a clear set of goals they should be recorded in the project plan.
It can be useful to also include the needs and expectations of your stakeholders.

This is the most difficult part of the planning process completed. It's time to move on and
look at the project deliverables

 Project deliverables: Using the goals you have defined in step 1, create a list of things
the project needs to deliver in order to meet those goals. Specify when and how each item
must be delivered.

Add the deliverables to the project plan with an estimated delivery date. More accurate
delivery dates will be established during the scheduling phase, which is next.

Project Schedule: Create a list of tasks that need to be carried out for each deliverable
For each task identify the following:

      The amount of effort (hours or days) required to complete the task
      The resource who will carryout the task




                                             16
Once you have established the amount of effort for each task, you can workout the effort
required for each deliverable and an accurate delivery date. Update your deliverables
section with the more accurate delivery dates.

At this point in the planning you could choose to use a software package such as
Microsoft Project to create your project schedule. Alternatively use one of the many free
templates available. Input all of the deliverables, tasks, durations and the resources who
will complete each task.

A common problem discovered at this point is when a project has an imposed delivery
deadline from the sponsor that is not realistic based on your estimates. If you discover
that this is the case you must contact the sponsor immediately. The options you have in
this situation are:

      Renegotiate the deadline (project delay)
      Employ additional resources (increased cost)
      Reduce the scope of the project (less delivered)

Use the project schedule to justify pursuing one of these options.

Supporting plans: This section deals with plans you should create as part of the
planning process. These can be included directly in the plan.

Human resources:Identify by name the individuals and organisations with a leading
role in the project. For each describe their roles and responsibilities on the project. Next,
describe the number and type of people needed to carryout the project. For each resource
detail start dates, estimated duration and the method you will use for obtaining them.

Communication Plan: Create a document showing who needs to be kept informed
about the project and how they will receive the information. The most common
mechanism is a weekly/monthly progress report, describing how the project is
performing, milestones achieved and work planned for the next period

Risk management plan: Risk management is an important part of project management.
Although often overlooked, it is important to identify as many risks to your project as
possible and be prepared if something bad happens.

Here are some examples of common project risks:

      Time and cost estimates too optimistic
      Customer review and feedback cycle too slow
      Unexpected budget cuts
      Unclear roles and responsibilities
      Stakeholder input is not sought or their needs are not properly understood
      Stakeholders changing requirements after the project has started
      Stakeholders adding new requirements after the project has started



                                             17
      Poor communication resulting in misunderstandings, quality problems and rework
      Lack of resource commitment

Risks can be tracked using a simple risk log. Add each risk you have identified to your
risk log and write down what you will do in the event it occurs and what you will do to
prevent it from occurring. Review your risk log on a regular basis adding new risks as
they occur during the life of the project. Remember, when risks are ignored they don't go
away.

 Project planning is part of project management, which relates to the use of schedules
such as Gantt charts to plan and subsequently report progress within the project
environment.
Initially, the project scope is defined and the appropriate methods for completing the
project are determined. The durations for the various tasks necessary to complete the
work are listed and grouped into a work breakdown structure. The logical dependencies
between tasks are defined using an activity network diagram that enables identification of
the critical path. Float or slack time in the schedule can be calculated using project
management software. Then the necessary resources can be estimated and costs for each
activity can be allocated to each resource, giving the total project cost. At this stage, the
project plan may be optimized to achieve the appropriate balance between resource usage
and project duration to comply with the project objectives. Once established and agreed,
the plan becomes what is known as the baseline. Progress will be measured against the
baseline throughout the life of the project. Analyzing progress compared to the baseline is
known as earned value management.

   PLANNING THE QUALITY PARAMETER.
   Planning for quality requires attention to detail. The goal of quality planning is to
   assure that the output of the project will perform that it will do what it is suppose to
   do. The quality plan is also establishes the criteria of performance by which the
   project output will be measured when it is completed.
   In planning the quality parameter include specifications for the quality and types of
   materials to be used, the performances standards to be meet and the means of
   verifying quality such as testing inspection. Two techniques facilitate planning for
   quality. Work breakdown structure and project specifications.

   Creating a WBS structure:
   A WBS is the starting place for planning all three parameters of a project, quality,
   cost, and time. It is a technique based on dividing a project in to sub units of work
   packages because all elements required to complete the project are identified, you
   reduce the chance of neglecting or overlooking an essential steps. The work of a
   project is devolved thru increasing levels of details.
   A work break down structure is typically constructed with two or three levels of
   detail, although more levels may be required for vary complex projects. Start by
   identifying logical sub divisions of the projects, then break each of these down
   further. As you construct a work breakdown structure keep in mind that the goal is to




                                             18
  identify a unit of work that is discrete and that advance that project toward its
  completion.
  The WBS is a key document in the project and forms the basis of much of the
  subsequent work in planning, setting budget, cost control, defining the organization,
  assigning responsibilities and delegating work in coherent packages / sub units.
  Breaking project down in to manageable units is the key to being able to control it.
  Through the process of gradually dividing the pieces of work up into something more
  manageable, we will finally arrive at discrete pieces of work which we will be able to
  estimate to plan and control. We are also able to study each work package / sub unit
  and assess the level of risk attached, in order to determine how to manage the risk.
  WBS enables us to assess the work required to produce each sub units the required to
  assemble and commission the project from each sub units

  Project specifications:
  From the work break down structure, specification can be written for each sub units
  of the project. Specifications include all relevant requirements to meet the projects
  quality parameters materials to be used standards to be meet, test to be performed,
  etc. use extreme care in writing specifications because they became the controlling
  factor in meeting project performance standard and directly affect both budget and
  schedule.




                           Add 4 offices to building#7




                                                              Exterior

Foundation

                                                         Frame
                                                         &install,
                                                         windows


                                         19
                                                                                       Roof


Layout
                                      Form



              Pour & finish
                                                                install siding          Paint




            interior                                                              finish



    Heating/air                   Electrical
    conditioning                                                 Paint fixtures                 Electrical




                                                               Floor covering                   Cleanup
  Insulate                          Dry well



                   Doors & trim



         Planning the parameter:
         The objective when planning the time dimension is to determine the shortest time
         necessary to complete the project. Begin with the work break down structure and
         determine the time required to complete each subunit. Next, determine in what sequence
         subunits must be completed, and which ones may be under way at the same time. From
         this analysis, you will have determined three most significant time elements.
              The duration of each step
              The earliest time at which a step may be started
              The latest time at which a step must be started
         Planning the time parameter can only be done by people who have experience with the
         same or similar activities. If you personally do not know how long it takes to do
         something, you will need to rely on someone else who does have requisite experience



                                                  20
Many project managers find it realistic to estimate time intervals as a range rather than as
a precise amount. Another way to deal with the lack of precision in estimating time is to
use a commonly accepted formula for the task. Or, if you are working with a
mathematical model, you can determine the probability of the work being completed
within the estimating time by calculating a standard deviation of the time estimate.

Using a mathematical model of estimate time

Estimating time
Tm = the most probable time
To = the optimistic time within which only 1% of similar projects are completed

Tp = the pessimistic time within which 99% of similar projects are completed

Te = the calculated time estimate

     To + 4Tm +Tp
Te = -------------------
           6

δ = standard deviation

δ = Tp – To
    ------------
        6

68.26% of the time the work will be completed within the range of Te+/- standard
deviation
95.4% of the time the work will be completed within the range of Te+/-2 standard
devations
99.73% of the time work will be completed within the range of Te+/- standard devations.



PROJECT SCHEDULING MODELS
There are various methods for scheduling projects. Now we look at two simple project
scheduling models-Gantt charting and the Program Evaluation and Review Technique
(PERT). Both are schematic models, but PERT also has some mathematical model
adaptations.
        Let‟s start with:-
GANTT CHARTS
A Gantt chart is a bar chart shows the relationship of activities over time. Following table
gives the symbols often used in a Gantt chart. An open bracket indicates the scheduled
start of the activity, and a closing bracket indicates the scheduled completion. A heavy
line indicates the currently completed portion of the activity. A caret at the top of the
chart indicates current time.



                                            21
         Gantt chart symbols
Symbol Meaning
( Start of an activity
] End of an activity
H Actual progress of the activity
                 v Point in time where the project is now

NETWORK MODELING
It allows us to address project scheduling a little more formally than we can with the
Gantt chart. Although network models are based on rigorous theory and precise
definitions, we discuss only a few terms and concepts here.

Each activity is symbolized by an arc, an arrowed line segment (or, simply, an arrow).
Both the beginning and the ending of each activity are symbolized by a node, a circle at
the beginning or ending of the arrow. Joint nodes represent the precedence relationships
of the activities: An arc whose ending node is the beginning node of a second arc
represents an activity that must precede the second activity.
In the following figure there are six nodes, numbered 1-6. The arcs are named by their
beginning and ending nodes:-
      arc 1-2,
      1-3,
      2-4,
      2-5,
      4-6, and
      5-6.
The lengths of the arcs are of no significance. Nodes may be lettered, rather than
numbered, or arcs as well as nodes may be numbered or lettered. Since arc 1-3 in the
figure ends at the node that begins arc 3-6, arc 1-3 represents an activity that must
precede activity 3-6. In talking about networks, we may refer to arc 1-2, for example,
interchangeably with activity 1-2.
Well my friends, all of you must have a fair bit of an idea of PROGRAM
EVALUATION AND REVIEW TECHNIQUE (PERT), that you might have covered
under quantitative techniques or operations research papers during the earlier semesters
However I would be failing in my duty if I do not take it up again during the current
discussion. Indeed such is importance of this technique that universally almost all
projects are evaluated on the basis of this method.
Here we go.
NETWORK MODELING
Network modeling allows us to address project scheduling a little more formally than we
can with the Gantt chart. Although network models are based on rigorous theory and
precise definitions we discuss only a few terms & concepts here.

Advantages of planning:

           1. we will have more realistic plan one that gives a more accurate picture of
              what will happen as the project progress.



                                             22
          2. we will have better able to anticipate what needs to happen next
          3. will know where to concentrate your attention to be sure that the project
             stays on schedule and within budget.
          4. will be able to anticipate bottlenecks and other coordination problems
             before they occur, so that you can take action to correct a delay before it
             becomes severe.
          5. you will have valuable tool to enhance co ordination and communication
             among the project team members.
          6. you will have a toll to build commitment because it publicly identifies
             responsibilities and deadlines and creates an awareness of
             interdependencies.
          7. you will have a tool that leads to completion of projects on time, within
             budget and according to quality standards.

****************************** *****************************************




Q.5 B). Explain how programmable evaluation and review technique [PERT] is
used in project management, support your answer with suitable diagram.

Ans: PERT, the Project Evaluation and Review Technique, is a network-based aid for
planning and scheduling the many interrelated tasks in a large and complex project. It
was developed during the design and construction of the Polaris submarine in the USA in
the 1950s, which was one of the most complex tasks ever attempted at the time.
Nowadays PERT techniques are routinely used in any large project such as software
development, building construction, etc. Supporting software such as Microsoft Project,



                                          23
among others, is readily available. It may seem odd that PERT appears in a book on
optimization, but it is frequently necessary to optimize time and resource constrained
systems, and the basic ideas of PERT help to organize such an optimization.
PERT uses a network representation to capture the precedence or parallel relationships
among the tasks in the project. As an example of a precedence relationship, the frame of a
house must first be constructed before the roof can go on. On the other hand, some
activities can happen in parallel: the electrical system can be installed by one crew at the
same time as the plumbing system is installed by a second crew.

The PERT formalism has these elements and rules:
• Directed arcs represent activities, each of which has a specified duration. This is the
―activity on arc‖ formalism; there is also a less-common ―activity on node‖ formalism.
Note that activities are considered to be uninterruptible once started.
• Nodes are events or points in time.
• The activities (arcs) leaving a node cannot begin until all of the activities (arcs) entering
a node are completed. This is how precedence is shown. You can also think of the node
as enforcing a rendezvous: no-one can leave until everyone has arrived.
• There is a single starting node which has only outflow arcs, and a single ending node
that has only inflow arcs.
• There are no cycles in the network. You can see the difficulty here. If an outflow
activity cannot begin until all of the inflow activities have been completed, a cycle means
that the system can never get started!

BOOK DATA TO BE WRITTEN…




Consider the example below given diagram . Perhaps the pouring of the concrete
foundation (activity A-B), happens at the same time as the pre-assembly of the roof
trusses (activity A-D).
However, the finalization of the roof (activity D-E), cannot begin until both A-D and B-D
(assembly of the house frame), are done. Of course B-D cannot start until the concrete
foundation has been poured (A-B). All of this precedence and parallelism information is
neatly captured in the PERT diagram.
There are two major questions about any project:
• What is the shortest time for completion of the project?

Which activities must be completed on time in order for the project to finish in the



                                              24
shortest possible time? These activities constitute the critical path through the PERT
diagram.
The process of finding the critical path answers the first question as well as the second.
Of course we need to know how long each individual activity will take in order to answer
these questions. This is why the arcs in diagram are labeled with numbers: the numbers
show the amount of time that each activity is expected to take (in days, let‘s say).
The critical path is of great interest to project managers. The activities on the critical path
are the ones which absolutely must be done on time in order for the whole project to
complete on time. If any of the activities on the critical path are late, then the entire
project will finish late! For this reason, the critical path activities receive the greatest
attention from management. The non-critical activities have some leeway to be late
without affecting the overall project completion time.
The following steps find the critical path and calculate other useful information about the
project.
Step 1. Make a forward pass through the diagram, calculating the earliest time (TE) for
each event (node). In other words, what is the earliest time at which all of the activities
entering a node will have finished? To find TE, look at all of the activities which enter a
node. TE is the latest of the arrival times for entering arcs, i.e. TE = max [(TE of node at
tail of arc) + (arc duration)] over all of the entering arcs. By definition, TE of the starting
node is zero.
Step 2. Make a backward pass through the diagram, calculating the latest time (TL) for
each event (node). In other words, what is the latest time that the outflow activities can
begin without causing a late arrival at the next node for one of those activities? To find
TL, look at all of the activities which exit a node. TL is the earliest of the leaving times
for the exiting arcs, i.e. TL = min [(TL of node at head of arc) − (arc duration)] over all of
the exiting arcs. By definition, the TL of the ending node equals its TE.
Step 3. Calculate the node slack time (SN) for each node (event). This is the amount of
time by which an event could be adjusted later than its TE without causing problems
downstream. SN = TL − TE for each node.




                                              9
                  D                                               F
        3                          7               10                       3
                                                                      3
                                          E                                       H
  A                5
                              8                              7               5
       4
                  B                                                   G
                                          C
                                              25
                                                     4
                           5

Step 4. Calculate the total arc slack time (SA) for each arc (activity). This is the amount
of time by which an activity could be adjusted later than the TE of the node at its tail with
causing problems later. SA = (TL of node at arc tail) − (TE of node at arc head) − (arc
duration). Step 5. The critical path connects the nodes at which SN = 0 via the arcs at
which SA = 0. It should be no surprise that the critical path connects the nodes and arcs
which have no slack. If there is slack, then the activity does not need to be done on time,
which is exactly the opposite definition of the critical path!
As an example, let‘s find the critical path for the PERT diagram in Figure 11.1. Note that
there is an implied order in which the TE‘s can be calculated in Step 1. For example, the
TE of node D cannot be found until the TE of node B is known. The starting node in
Figure 11.1 is node A, and by definition the TE of the starting node is 0. To calculate TE
at a node, we need to know the TE of the node at the tail of every entering arc, so we can
next only calculate the TE of node B. This is simple since there is only one inflow arc,
from node A, so TE(B) = TE(A) + (duration of A-B) = 0 + 4 = 4. The complete set of TE
calculations follows:
TE(A) = Starting node = 0
TE(B) = TE(A)+(duration A-B) = 0+4 = 4
TE(D) = max{TE(A)+(duration A-D), TE(B)+(duration B-D)} = max{0+4, 4+5} = 9
TE(C) = TE(B)+(duration B-C) = 4+5 = 9
TE(E) = max{TE(D)+(duration D-E), TE(B)+(duration B-E),
TE(C)+(duration C-E)} = max{9+7, 4+8, 9+6} = 16
TE(F) = max{TE(D)+(duration D-F), TE(E)+(duration E-F)} = max{9+9, 16+10} = 26
TE(G) = max{TE(E)+(duration E-G), TE(C)+(duration C-G)} = max{16+7, 9+4} = 23
TE(H) = max{TE(F)+(duration F-H), TE(E)+(duration E-H),
TE(G)+(duration G-H)} = max{26+3, 16+3, 23+5} = 29
The shortest time in which the project can be completed is now known: it is the same as
the TE of the ending node, node H, i.e. 29 days. But we still need to complete the
remaining 4 steps of the algorithm to positively identify the critical path.
The backwards pass in Step 2 begins with the ending node H. By definition, the TL of the
ending node is equal to its TE so TE(H) = 29. This makes sense: otherwise the whole
project would be pushed later! As for the forward pass, there is an implied order in which
the node TL values can be found, determined by the outflow arcs for which TL is known.
The complete set of calculations follows.
TL(H) = ending node = TE(H) = 29
TL(F) = TL(H)−(duration F-H) = 29−3 = 26
TL(G) = TL(H)−(duration G-H) = 29−5 = 24
TL(E) = min{TL(F)−(duration E-F), TL(H)−(duration E-H),
TL(G)−(duration E-G)} = min{26−10, 29−3, 24−7} = 16
TL(C) = min{TL(E)−(duration C-E), TL(G)−(duration C-G)} = min{16−6, 24−4} = 10
TL(D) = min{TL(F)−(duration D-F), TL(E)−(duration D-E)} = min{26−9, 16−7} = 9
TL(B) = min{TL(D)−(duration B-D), TL(E)−(duration B-E),
TL(C)−(duration B-C)} = min{9−5, 16−8, 10−5} = 4


                                             26
TL(A) = min{TL(D)−(duration A-D), TL(B)−(duration A-B)} = min{9−3, 4−4} = 0
It‘s no surprise that TL of the starting node is 0. If it wasn‘t it would mean that we could
start the whole project late and yet still finish on time!
In Step 3 we find the node slack time (SN) for each node (event) as shown below:
Node A B C D E F G H SN 0 0 1 0 0 0 1 0
This small PERT diagram is quite tight: only two of the nodes have nonzero slack. Larger
diagrams with many parallel activities often have much more slack in the nodes.
In Step 4 we find total arc slack time (SA) for each arc (activity) as shown below.
Arc AB AD BC BD BE CE CG DE DF EF EG EH FH GH
SA 0 6 1 0 4 1 11 0 8 0 1 10 0 1
The arcs have quite a bit more slack time than the nodes in this small example. Later we
will see how this slack can be put to good use in adjusting resource demands.
Finally, in Step 5, we find the critical path by linking the nodes having no slack via the
arcs having no slack. Figure 11.2 shows the critical path for our example PERT diagram.
The nodes and arcs having no slack are shown in boldface. If you‘ve been watching
closely, you might have noticed that the critical path through the PERT diagram is
actually the longest path through the network. If you only needed the critical path and its
length, it‘s easy to convert Dijkstra‘s shortest route algorithm to a longest route algorithm
to find it. Sometimes a situation arises in which one activity must precede two different
events. How can this happen when a single arc can terminate only at a single event node?
The solution lies in the use of dummy arcs which have a duration of zero. Dummy arcs
are normally shown as dashed lines, as in the diagram fragment in which activity A-B is
the immediate predecessor of both event C and event D.

                                             9
                  D                                              F
        3                         7               10                       3
                                                                     3
                                         E                                      H
  A                5
                             8                              7              5
       4
                  B                                  4               G
                                         C
                             5
Determination of the critical path and hence of the duration of the entire project
obviously depends very heavily on accurately assessing the duration of each
individual activity. How is this done in practice? There are two main approaches:
direct estimates, and the three-estimate method.
In direct estimation, a single number is stated directly, perhaps based on long experience
with similar projects. In the three-estimate approach, 3 estimates with specific properties
are used in a weighted average. m is the most likely value, obtained in a manner similar
to the direct estimate. a is an optimistic estimate, i.e. the time needed if everything goes
just right (the weather is good, building materials arrive on time, crew is on time). Finally




                                             27
b is the pessimistic estimate, i.e. the time needed if everything goes wrong (it‘s raining,
materials are late, crew books off sick, etc.). Given these three estimates, the final uration
is set as (a+4m+b)/6.
Probabilistic PERT
Estimating is an inexact art, so we expect that our initial duration estimates have some
error in them. What we would really like to know is how much this error is going to
affect our estimate of the total project duration. Fortunately, with a few assumptions and
very little extra work we can make some judgments about the likely amount of variation
in the total project time. To do this we start with the three-estimate approach to
estimating the activity durations. Next we make the following assumptions:
• The activity durations fit a Beta distribution.
• The range from a to b in the three-estimate approach covers 6 standard deviations.
• The activity durations are statistically independent.
• The critical path now means the path that has the longest expected value of total project
time.
• The overall project duration has a normal distribution.


                                    A

                                        5

                                    B

                               0            0

                          C                     D



TO BE CONTD…..




******************************** ***************************************




                                                28
Q.6 What do you Understand by implementation? Explain various actions carried
out in a project in this stage?

Ans: In the project life cycle, we now come to the implementation phase. We have
spent a great deal of effort and have gone in to great details during the conceptual and
planning phases. This time spent and attention to detail will definitely pave the way for
the smooth implementation phase. Although planning and organizing have been
intensive activities for the project manager, it is controlling the project which consumes
the most time and requires a great deal of skill.



                                           29
Controlling project is about ensuring that the three project objectives are met, specifically
those of time, cost and quality.

Control is the process of monitoring, evaluating and comparing planned results with
actual results to determined the status of the project, cost, schedule and technical
performance objectives.

Control is the constraining of resources through corrective action to confirm to a project
plan of action. Monitoring and control are universal activities indispensable to effective
execution.

Control is a fact finding and remedial action process to facilitate meeting the project
objectives and goals. The primary purpose is not to determine what has happened, but
rather to predict what may happen in the future if present condition continue & there is no
change in the management of the project.
Control is made up of two parts. Monitoring and then taking action.

Implementation is defined as ―putting the plan in to action‖. The English dictionary has
interesting definitions.

Implement: To bring about / carry out/ complete / effect / enforces / execute / fulfill /
perform / out into action / realize / carry into effect.

Implementation: Accomplishment

What happens in the implementation stage:
During the implementation phase, the project manager coordinates all the elements of a
project. This involves a number of responsibilities. Controlling work in progress to see
that it is carried out according to plan, providing feedback to those working on the
project, negotiation for materials, supplies, and services, and resolving differences among
those involved with project. These responsibilities require a variety of skills.
This section presents took and techniques to help project managers during the
implementation stage.

Key duties during implementation

      controlling work in progresses.
      Providing feed back
      Negotiations for materials, supplies and services
      Resolving difference


1. Controlling Projects monitoring

Why do we control?
Managing change



                                             30
The awkward things about projects is that they never quite turn out as you expect them
to. No matter how through your planning no matter how much senior management
commitment you have solicited, no matter how well organized you have been… things go
wrong.

Factors which change projects

    The planning assumptions may have been wrong
    there may more to do then you anticipated
    it might be harder than you anticipated
    resources you depend on might not be a available

      The requirement may change (very common)
      The deadline may change (usually earlier)
      The budget may be cut
      The priority of the project in the mind of senior management might change
      Barriers / resistance to change.
      People make mistakes (usually large ones)
      Acts of God

All of these things and many more will conspire against your project and try to force it
further and further away from achieving its objectives.
Naturally, you don‘t know what will go wrong at the outset of the project, all though you
will have allowed yourself a certain amount of contingency in terms of time and budget,
simply because you know that something will go wrong.
By maintaining a high degree of control on the project and this must extend beyond the le
to immediate project team you will be able to spot these potential dangers early enough to
be able to do something about them.
Controlling projects is about identifying problems, working out what needs to be done to
ameliorate them, and then doing it.
It is important that controls is seen by the project team in this positive light. There is
always a tendency to view control as merely an enormous chore for all those involved,
whose only purpose is to give the project manager an opportunity to blame the guilty.
It should be portrayed as a process which is actually designed to help project staff in the
work they do, to provide a mechanism by which they can flag problems they are suffering
with and through which solutions can be sought and implemented.

What do we control?
We control divisions from the duration of the activities listed in the gantt bar chart or
PERT network to ensure that there is no time over run.
We closely monitor the critical path giving those activities on the critical path greater
attention to see that there is no slippage.
Experience has shown that if there is no time over run it is unlucky that there will be cost
over run.
We control divisions from the cost budget for each of the sub units of the work break
down structure to ensure that there is no cost over run.



                                            31
We control division from the quality standards established the customer expectations
which from the basis for the award of the project.
The quality standards for each sub unit from the basis for judgment.

Time:-- During the planning phase we will have established dates for major milestones
on the projects. We have, therefore, a great interest in ensuring that these are adhered to.
We also defined start and end dates for all the activities which contributes to the attaining
of this mile stones. These also should be adhered to.
How ever it is of little use to us if we get to our first major mile stone date and discover
that we have not made it. By recording basic data about the progress of tasks we can
derive considerable amount of information to assist us in its interpretation.

Time Related progress data:

      Status (future started or complete)
      Elapsed time spent
      Days efforts spent
      Estimate of days effort to go
      Estimate of elapsed time to go

We must choose carefully what is the minimum information you need to able to answer
the following questions.

* have I made the progress I planned?
* Will I finish when I through I would?

When determining progresses it is important to remember that if you have spent half the
time that you planned on a task it does not necessarily mean ―that you are half way
through it‖.

The most useful piece of information you can acquire about a task is how much longer (in
terms of both effort and elapse time) it will take to complete. By comparing this against
your outstanding planned time to complete you can. Easily see if the task has slipped.

Cost: By monitoring cost the project manager will glean vital information abut
progresses and the value of the work done cost can be used as a measure of progresses.

Remember senior management tend to be particularly sensitive to cost, specially when
things go wrong. The degree of sophistication applied to the control of cost various
according to the type and size of project, it can be simple measurement of the number of
people working on it, to complex accounting and control systems.

For most projects, how ever it is more important to have a feel for the size of the cost
then to have detailed analysis describing how every penny was spent. Some planning
tool will go a long way to driving statistic but you should always remember that the




                                             32
quality of what you get out is directly proportional to the quality of what you put in. The
most important statistics are

Estimated at completion (EAC)
What the total cost of the project will be as calculated by looking at the plan as its stands
i.e. cost incurred to the date plus scheduled cost.

Budgeted at completion (BAC)
The total cost derived from the plan any work begin.

Actual cost of work performed (ACWP)
The amount of money spent so far

Budget cost of wok performed (BCWP)
What you should have spent to get this far i.e the total budget cost for the project
multiplied by the prestige percentage achieved.

Budgeted cost of work scheduled (BCWS)
What you should have spent by this point in time, that it the total budgeted cost for the
project multiplied by the % of elapsed time past.

We may appear to be suffering from information over load, but by presenting costs in this
way as a measure of performance, we can use the figures to make estimates of future
spend, effort and time.


Project cost           =       BAC (ACWP/BCWP)

Earned value index =           BCWP/ACWP

Cost efficiency        =       (BCWP/BAC)* (EAC/ACWP)

Projected duration =           elapsed duration + (to go duration/cost efficiency)

Cost at completion
                   1. Cost to complete must be re estimated monthly on in progresses
                      tasks and quarterly on all incomplete tasks. Depending on duration
                      of the project, the frequency could be short end, but not
                      lengthened.
2. Cost at completion must be for cast at least monthly at the task, intermediate and total
project levels.

Cost at completion is the sum of
   i)      Cost of all completed tasks.
   ii)     Cost to date + estimate to complete all in progresses tasks and
   iii)    Current estimate to complete all future tasks.



                                             33
              Partial cost and control report
                                Current month                  Cumulative to date              Cost at completion

               Actvitiy                                                                                 Latest
               description                          Variance                        Variance            revised
WBS cost       Area - B Civil   Budgeted   Actual   over       Budgeted    Actual   over                estimate      Over      % of
code           construction B   cost       cost     (under)    cost        cost     (under)    Budget   (projected)   (under)   budget
02.01.01       Earth work       0          0        0          4000        6000     2000       4000     6000          2000      50%
02.01.01.01    Excavation       0          0        0          2000        3500     1500       2000     3500          1500      75
02.01.01.02    Backfill         0          0        0          2000        2500     500        2000     2500          500       25
               Foundation&
02.01.02       structure        0          500      500        40000       44000    4000       40000    44000         4000      10
02.01.02.01    fromwork         0          0        0          16000       18000    2000       16000    18000         2000      13
02.01.02.02    Rebar            0          0        0          12000       13000    1000       12000    13000         1000      8
02.01.02.03    Embedments       0          0        0          2000        2000     0          2000     2000          0         0
02.01.02.04    Concrete         0          500      500        10000       11000    1000       10000    11000         1000      10
02.01.03       Architecural     1500       1200     [300]      4000        3000     [1000]     4000     3000          [400]     [10]
Finishes
               Civil
2.01           construction     1500       1700     200        48000       53000    5000       48000    53600         5000      5




              Causes of cost problems:

                 1. Unrealistic, low original estimate, bids and budgets.
                 2. Management decisions to reduce bid price and budgets to meet competitive
                    pressure or offset assumed padded estimates.
                 3. Uncontrolled, unnoticed increase in scope of work.
                 4. Extra scope work on proposals for change or extension, or in response to
                    customer or managements enquires.
                 5. unforeseen technical difficulties.
                 6. scheduled delays that require overtime or other added cost to recover, or change
                    idle labour to project.
                 7. inadequate cost budgeting, reporting and control practice and procedures

              Quality:
              Unlike time and cost, where we have units of measure such as days and rupees, the
              yardstick by which we measure quality is not so easy to find. Because it is difficult, it is
              often neglected.
              The setting of quality standards involves having a clear specification of what the end
              product of the task should be, including what ever quality factors may be appropriate.
              The emphasis on quality control must therefore be on ensuring that quality is built in to
              the process land not applied afterwards. Systematic reviews, walk throughs and
              inspections are valuable and necessary activities for all deliverables and this should be
              planned in to the process.




                                                                  34
Quality control is an important aspect particularly in manufacturing process but a pre
requisite for it is quality assurance establishing the right environment for quality to
flourish. Quality should be injected in to the process from the outset. A common way of
doing this is to develop a quality plan, which expresses your objectives for quality and
how you will set about ensuring it.
This then becomes a key project document which is maintained to show when and how
quality targets have been achieved, and any deviations from the quality plan.
The quality plan:

      Define working methods and procedures
      Define standards for deliverables
      Define standards for supervision and review
      Define project check points
      Define user involvement

A commitment to quality from the project team is vital to achieving it. It should be
implicated amongst the staff as being an essential, not a luxury and ingrained in the
culture of the project.

Progresses reporting:
Conducting interim progresses reviews
Interim progresses reviews typically occur on a fixed time schedule, such as daily or
weekly. They may also occur when some problem in performance is observed or at the
completion of a significant step toward the accomplishment of the project.
Three topics are usually on the agenda.

      review of progresses against plan
      review of problems encountered and how they will handled
      Review of anticipated problems with proposed plans for handling them

Monitoring of time cost and quality requires the project manager to have detailed
knowledge of the status of all the task currently being executed. There are number of
ways in which this information can be gathered.

Progresses reporting:

      Progresses report
      One to one progresses meeting
      Group progresses meetings
      Wondering about

You should use all four of these techniques as each will enable you to discover different
pieces of information or different perspectives on the same information.

Mile stone charts: A mile stone chart presents a board, brush, pictures of a project
scheduled and control dates. It list those key events that are dearly verifiable by others or



                                             35
that require approval before the project can proceed. If this is done correctly, a project
will not have many mile stones. Because of this lack of detail, a milestone chart is not
very helpful during the planning phase when more information is required.
How ever it is particularly useful in the implementation phase because it provides a
concise summary of the progresses of the project.


Area - B project mile stone
status                                                      Date : 10th August

                                        Scheduled
Description of event                    time                Actual date completed   Delay (days)
complete earth work B                   30-Mar              15th Apr                15
Complete        main       foundation
concrete                                15th Apr            30th Apr                15
Equipment B received on site            15th Apr            15th May                30
Complete          equipment         B
foundation                              30th May            30th May                0
Piping     B     installation   20%
complete                                31st July           ----                    -30
                                          th
Install main transformer                15 Aug              -                       -
Start area B pre operational tests      1st Oct             -                       -
Complete electro mechanical B           1st Dec             -                       -
Complete test begin operations          30th Dec            -                       -



Progress reports:
The production of progress reports should be carried out on a strictly regular basis by all
those who are responsible for any planned activity. If this means that every single
member of staff reports progress then so be it. The project manager does not necessarily
have to read them all they can be summarized by team leaders, junior managers and so
on, to give overall progress reports for activities higher up the hierarchy on the WBS.
We have already mentioned that the whole area of control should be portrayed as
genuinely being in the interests of the project staff.

Progress report should therefore, be as easy to complete as possible. A standardized form
which shows the work done in a period, deviation from the plan, work for the next
period, and any known problems, is ideal. An example is shown below.
                              WEEKLY REPORT

              For -------------------- Project Team

              Week pending------------------------

              Forcast completion date

              CURRENT             LAST                               TARGET

Activities completed this                                 Critical Path (Y/N)


                                                     36
 week
 ▪                                                          CP
 ▪
 ▪
 ▪
 Activities in progress                           Target completion CP (Y/N)
 ▪
 ▪
 ▪
 ▪
 Activities planned for next
 week                                             Target completion CP (Y/N)
 ▪
 ▪
 ▪
 ▪
 Changes to plan


 To be resolved


                               ………………. Project Leader

You will notice that the report calls for the writer to make comparison with the project
plan and to reconsider the estimates to complete the work. Although you may often see
it, asking people to give a percentage complete figure is usually less than satisfactory as it
is only too easy to give a figure which reflects the percentage of planned time spent. By
forcing staff to activity reconsider how more time is really needed you will get a much
more accurate picture of the genuine progress.
Progress report is not, however, all one way. The project manager himself will be
expected to report a number of, other people / bodies.

Progress reports:

       From project team to project manager (many repots, weekly)
       From external suppliers to project manager (many reports, weekly)
       From project manager to project team (one report, weekly)
       From project manager to senior user management (one report monthly)

Like all reports, the frequency , style, amount of detail and actual content will be varied
to suit the particular audience. Remembering that one of the key roles of the project
manager as a communicator is to maintain commitment to the project, it is often a good
idea to give some of these reports (especially those to senior management ) in the form of
presentations.

One to one progress meetings:



                                             37
Meetings with the individual members of the project team, although time consuming, are
probably the best means of assessing progress. It is important, however these meetings
are well structured and reasonably formalized. The purpose of the meeting is to assess
progress and discuss any problems it is not to have a generalized chat about how things
are going.

The best vehicle for structuring the meeting is the progress report. Each activity on it
should be discussed – even if there are no problems associated with it. Particular
problems which have been identified on the progress report should be discussed in more
detail in order to gain a real understanding of why the problem has occurred and what can
be done about it.

Adopting right style for the meeting is crucial to their effectiveness. There should be no
atmosphere of blame or recrimination. Staff should be encouraged to approach the
meetings with an honest and open attitude and not in fear that they are to be hauled over
the coals. Praise should be lavished generously when things have gone well.
One to one meetings are also the best opportunity for the project manager to inspect
quality himself. It is very easy for tasks to be 95% complete when you are told that they
are finished reports/the user‘s sign off / the testing certificate or whatever. There is no
substitute for seeing it yourself.

During one to one progress meetings, the team member will also be more relaxed and
place his / her difficulties more openly then in a group / project meeting at which he / she
may be embarrassed to blame a fellow member on whom he / she is dependent upon for
an input.

Group project progress meetings:
Meetings of the entire project team (or groups within it if the project is too large to bring
it all together regularly) are useful but need to be carefully managed.

Their primary purpose is to ensure that all parts of the project are aware of what other
parts are doing, and any issues that have arisen. Whilst it is important that team spirit is
fostered, you should always be aware that people will show greater reluctance to disclose
problems in their own areas in a large group. If there are problems to be discussed at this
level, then these should have been identified and corrective action agreed between the
relevant parties and the project manager before the meeting.
Of greater significance, how ever is the danger of losing the focus of the meeting. In a
large group, where many people will hold storing opinions on the issues being raised,
there is a great temptation to allow the meeting to digress to discuss issues which are best
resolved elsewhere. It should me made clear, therefore, that group progress meetings are
arranged to report progress, and not resolve issues.
For meetings to be effective, they should be kept short, and to the point. Value each
other‘s time. A meeting longer than half an hour can get to be boring and you may find
the team members losing interest.

A daily meeting, first thing in the morning for half an hour is most effective.



                                             38
Wandering about:
Do it you will find about more about the project by doing this any other way. By talking
to your staff, especially the ones doing the actual work, in an informal environment you
will be able to grasp that intangible ‗feel‘ of how will the projects is going, and you will
also be able to pick up on issues and problems as they arise, and before they have had
time to embed themselves.

Look for signals, body language, pensive appearances to instinctively judge that your
member has a problem that needs to be addressed.

S Curve:




Project
cost %
                         time


At the conceptual and planning phase, time is spent to carry out the activities you have
seen necessary. Not much cost has been incurred except human / professional cost.
Hence the curve is relatively flat along the X axis.

In the implementation phase, the plan is put in to action. Purchases are made equipment
and machinery are paid for and funds committed to her project are expended. The
progress shoots up in an experimental manner.

Once equipment is purchased and installation is carried out, the project is given its
finishing touches. Commissioning (start up), polishing etc come under this category.
Not much money is spent in this completion project but time is definitely spent.

The S Curve:

The Project progress is directly proportional to cost spent on the project as on the date.
The last 5% of a project progress and the first 5% of a project progress can take longer
than the middle 90% if a project is badly planned.
In any case the first 5% and the last 5% of a project are not equal to 5% and 5% of the
original project time estimate from start to finish. They could vary depending upon.

           a. complexity of engineering detailing
           b. lead time for procurement / manufacturing



                                             39
           c. complexity of installation
           d. complexity of commissioning
           e. mistakes and rework and delays due to poor planning at any stage of the
              project.
Construction project‘s schedule and progress, as shown by a gantt chart with S-curves
super imposed.


                Area B                                            Months
 Code         Activity       Weight %   1   2   3   4    5   6    7   8    9   10     11   12   Progress %


                                                                                                   100 ----


 02.01.01     Earthwork      3                                                                      80 ----


              Foundation
 02.01.01     & structures   22                                                                     60    ---
                                                                                                           ---

              Arcitechures
 02.01.03     finishes       1.8
                                                                                                    40 ----
              Electrical &
 02.02.01     control        11
                                                                                                           ---
 02.02.02     Piping         1.5
                                                                                                   20 -----
 02.02.03     Equipment      45
                                                                                                   0     -----
              Preoperation
 2.03         tests          5.7




Cumulative expenditure


Total budget


                                                                          Predicted
Milestone 2
                                                         Actual




                                                    40
Milestone 1




                              Time
Expenditure Curve

The S curve is the best way to pictorially depict the progress of a project and compare the
actual progress with the plan.

2. CONTROLLING PROJECTS – TAKING ACTION.

As discussed the ways in which the project manager can gather information which will
tell him the status of work being undertaken on the project. Now we will look at what we
must do with all that information, how to keep the project on course and see it to a
successful conclusion.
Controlling projects:
Assessing the situation
Impact analysis
Resolving issues and problems controlling change
Completing the project.

Control is the heart of what the project manager does.

Assessing the situation:
Prevention is, of course, better than cure, and this is why we have expended so much
effort on producing a plan for time, cost and quality in which we have confidence, how
ever things will start happening differently from how you expected almost from the
moment the project begins. Activities will start or complete late, costs will escalate and
quality will fall.
Must be able to assess the impact of these occurrences on the overall project. To do this
we need to ask our self number of questions.


Assessing the situations

How much will this effect other activities?
What must I do to correct this particular problem?
What must I do to put the project back on track?
Why did it happen?
What must I do to ensure that it does not happen again?




                                            41
Most problems can be rectified provided that they are caught early enough. This is why
we have emphasized the importance of regular and honest progress reporting. We will
stand very little chance of putting things right if you only find out a day before the impact
is left.
Problems comes in all sorts of shapes and sizes so it is hard to generalize about an
approach to their resolution. A one day slip on the plan may have no impact whatsoever
if there is sufficient slack in the plan to cover it. On the other hand, there may be a one
day window in which something has to be done has to be done / and missing it might be
disastrous.

Impact analysis: Establishing the impact of changes whether brought about internally
or through something happening out side of the project, can not be done by the project
manager single handedly.
The effect of change anywhere in the project is likely to be felt anywhere else. This
rippling effect should not be under estimated, and within reason and depending on the
sensitivity of the circumstances consultation should be as wide as possible.

Where we can look for a degree of help, though in the impact of problems and changes
on the plans. If you are using automated planning tools, into which you have recorded
the dependencies between tasks, you can very quickly feed in the revised effort estimates
from the impact analysis, and so calculate revised end dates for all tasks and the project
itself.
The dependency network diagram which we constructed as part of the planning process
can be used to see which tasks are directly affected by one particular task slipping its
planned completion date.
The planning tool will also give you a clear picture on costs and how your resourcing
profile is affected. If it is a major change, you may be forced into some substantial re
planning.

Taking the corrective action:
As a project progress and we monitor performance, they will be times when actual does
not measure up to plan. This calls for corrective action. How ever don‘t be too quick to
take action. Some deficiencies turn out to be self correcting, it is unrealistic to expect
steady and consistent progress day after day. Sometimes you will fall behind and
sometimes you will fall behind and sometimes you will be ahead, but in well planned
project you will probably finish on schedule and within budget.
When the project begins to fall behind in schedule, there are three alternatives that may
correct the problem. The first is to examine the work remaining to be done and decide
whether the lost time can be recovered in the next steps. If this is not feasible, the second
is to consider offering an incentive for on time completion of the project. The incentive
could be justified if you compare this expenditure to potential losses due to late
completion. Finally the third is to consider deploying more resources. This too will cost
more, but may off set further losses from delayed completion.
When the project begins to exceed budget, consider the work remaining and whether or
not cost overruns can be recouped on work yet to be completed. If this is not practical,
consider narrowing the project scope or obtaining more funding from your client.



                                             42
RESOLVING ISSUES AND PROBLEMS:
Although action to resolve issues will be as varied as the different types of problem that
will occur as a project, it can be generalized into several basic categories.

      Genuinely creative solutions to problems
      Using contingency
      Applying more resources.
      Slipping the completion dates
      De – scoping
      Making sure it does not happen again.

There is no do nothing option. Problems will not go away of their own accord, nor will
they become more tolerable with time. They should be identified and resolved at the
earliest possible opportunity.

Although problems are different they will nearly always manifest themselves as the
project manager being faced with more work to be done in less time. Apart from the first
and second approaches given above, resolving most problems implies a degree of
compromise on the objectives of cost, time or quality.

Genuinely creative solutions:
This is the ideal way to resolve a problem, but naturally the hardest. We can all lie awake
at night seeking that flash of inspiration which will provide us with the answer to some
acute problem. It rarely comes. We cannot cover creative problem solving as a topic
here, but one area where it is worth looking for ideas in the original plan. As we said
projects change, they sometimes do so in your favor.
Re examine the plan and particularly the planning assumptions. What may we appeared
to be the only way to do something when you devised the plan might now be one of a
number of ways, some of which may be better (hopefully cheap and faster)
Resource may constraints may have forced you into doing things as certain times and in a
particular order. Check if there resources constraints still exist as it might be possible to
juggle some of the work. On particularly long projects you may find that emergent
technology or new techniques allow you to review your estimating assumptions.
Look again at the dependencies that are built in to the plan. Ask your self if they really
are finish to start dependencies, or if the second task can actually start with an incomplete
input. (apply cautions here ; it may impact quality and running tasks in parallel which are
ideally done one after the other requires very careful management.

Using contingency:
You had the foresight to build contingency into the plans for this very eventually, so use
it! Be aware though that once it is all gone you cannot get it back again, and might be
times when your need of it will be greater. So user your contingency only when you
really have no choice and monitor and control it carefully.

Applying more resources



                                             43
Assigning more people to an activity which is running late is the most common means of
rectifying a potential slippage. It is less desirable than whatever imaginative brainwaves
we may have come up with earlier, but more so than the other two as it should not
adversely affect your objectives of time and quality. It will, of course, but in the majority
of projects time and quality tend to be considered more important.

Additional resources can be applied to tasks by moving staff off less important tasks (or
at least task which are further away from the critical path). Be aware, though, that you
may simply be deferring problems until later by doing this.
Alternatively, staff can be brought in from outside the project on a temporary basis, either
from elsewhere in the organization or by hiring contractors or consultants with specialists
skills. Be aware, though, that this may be resented by the project staff who may see it as
an unfavorable reflection on their own performance, and ensure that it is presented in a
constructive and non threatening manner.
Improvements in productivity tend to involve longer term measures than you might be
considering but you will always have the option of asking the staff to work additional
hours, overtime and weekends. This must, however, be seen as a short term, solution of a
recognizable crisis. In the long term it will sap morale and probably reduce overall
productivity.
Some further words of caution regarding applying additional resources.
Firstly, not all tasks can be completed more quickly simply by applying extra resources.

Secondly, brining in staff from outside of the project may involve existing staff spending
a lot of time teaching and supervising the newcomers. Do not under estimate either the
amount of time it takes for people to get up to speed on the intricacies and issues of the
project (no two projects are alike) and do not underestimate the impact it will have on
other people‘s work.

Thirdly, beware of robbing peter to pay paul. There is no point in moving staff onto a
critical task if the first task is going to suffer as a result.

Slipping the completion dates.
This is, of course, a highly undesirable course of action to have to take, although there
may be times when you have no alternatives. This may mean that a particular task will
be late, achievement of published milestones or slippages of the overall project will
usually require the authority of the project sponsor.
Whilst completion of the project on time at all costs should not necessary be regarded as
an inviolable tenet, allowing the project to slip may have a demoralizing effect on staff
and reduce their confidence in both their ability to deliver and your commitment to timely
delivery.
Be aware too of the tendency of work to fill available time. If you announce that the end
date for the project has been differed by a month, in a matter of days that month will have
been fully accounted for. If you have to do it, do it well in advance and ensure that the
reasons are well publicized and understood.

De-scoping



                                             44
De scoping means delivering less than you originally intended. It is a classic means of
delivering something on time, the appropriate only if none of the above approaches will
work and the project is in danger of being cancelled it is, of course, a serious
compromising of the quality objective, but by delivering the minimum requirement on
time, and leaving the nice to haves until later, you at least preserve the organization‘s
investment in the work done to date.
Again, this should normally only be done with the consent of the project sponsor and in
consultation with the user‘s of the project‘s major deliverables.

Making sure it does not happen again
By and large the above approaches will involve taking the tactical steps to resolve an
immediate problem. It is equally important to ensure that the problem does not recur,
either later on this project, or on other projects elsewhere in the organization. You should
therefore examine in a non recriminatory manner the root causes of the problem and what
measures can be put in place to ameliorate them.

MULTI PROJECT MANAGEMENT.
Determine the long term and short term priorities between projects to enable appropriate
decisions regarding allocation of limited resources.

Time management:

      Distinguish between subjects of true importance and those of apparent pressing
       urgency.
      Applying pareto‘s principle to time by using 80% of managerial time of 20% of
       selected subjects
      Scheduling time as opposed to scheduling work, since time is the limited resource
       and work must be prioritized and subordinated to available time.

Despite providing contingency at the outside spot potential dangers early enough
It is important to remember that if you have spent half the time that you planned on a
task, it does not necessary mean that you are halfway through it.

Interdependence between & within projects.
Projects & activities when projects can be inter related in three basic ways

                   1. Result of action
                   2. common unit of resources
                   3. rate of use of common resources



 Conflict between activities               Priority to be given to

 1. Critical                               Project with overall current priority

 2. Critical Vs non critical               Critical activity (regardless of over all
                                                project priority)
                                             45
 3. Non critical Vs Non critical           Activity with least slack (allowable delay).
                                           If equal slack – shortest or longest activity
                                           duration.
                the value of
                  TIME
A fraction of time can not be brought by a tonne of gold

You cannot control how much time you have
But you can control the way to use it
You can not choose whether to spend time or not,
Buy you can decide how to spend it
You cannot manage time
But you can learn to manage yourself in relation to time
Time cannot be expanded, accumulated
Mortgaged, hastened, or retrieved
Hence you should value time

As man‘s most precious commodity and have optimum utilization of every fraction of a
second.

NETWORK ANALYSIS IN THE CONTROL OF PROJECTS
As we discussed simple critical path theory, and mentioned that our project control
procedures are the means where by we recognize that there exist many uncertainties in
the execution of projects and seek to account of them. When we have drawn a project
network and derived an acceptable time schedule from it, how do we ensure that our
schedules are implemented and the project completed on time ? and what can we do to
ensure that project costs are kept under control and that the necessary resources of
manpower, equipment, etc., will be available when they are needed these are the
questions we shall seek to answer in our discussion on project control.

The control cycle
Uncertainty will exist in our critical path schedules for some or all of the following
reasons.

      The estimates of activity duration may prove to be inaccurate
      The technical specification of the project may lack much detail when the early
       schedules have to be produced.
      The circumstances existing when the activities come to be executed can only be
       guessed at. Suitable staff and equipment may not be available in the right


                                           46
       numbers, the weather might delay work, and materials might prove faulty or
       equipment fail tests.
      The customer from whom project is being undertaken may change his mind as to
       what he wants, what he is prepared to pay, and when he wants it.

It is impossible to anticipate all these factors. What we must do in these circumstances is
to prepare the best network and schedules that we can and then review them from time to
time. We say that a control period passes between those reviews, and these may be at
either regular or irregular intervals. At the end of a control period we collect the details
of what actually took place during the intervals. At the end of a control period we
collect the details of what actually took place during the control period in terms of events
which occurred and activities which completed or were partially completed, together with
our growing knowledge of the technical nature of the project and the circumstances in
which it will take place, and we revise our network and produce completely new
schedules. The new schedules are then issued to activity managers for use during the
next control period, and so the control cycle repeats itself. The project management, or
progress, meeting should be timed to take place shortly after the new schedules have been
received and examined, so that problem areas which have been highlighted can be
discussed by the activity managers and suitable action taken. It should be emphasized
that the prime purpose of this control procedures is to keep the future schedules for the
project as sensitive as possible to current achievement and growing project knowledge,
regardless of what was intended should happen. It is of secondary importance only that
we should be collecting facts for use in other projects that might come along later and for
post mortem enquires into what went wrong during the control period. If we do not insist
on this order of importance the estimates we receive from the activity managers may be
biased in undesirable directions.

Determining the length of control periods
The determination of the time length of the control cycle most appropriate to a particular
project is a matter for nice judgment. On the one hand we do not wish to involve
ourselves in time consuming schedule reappraisals more than is strictly necessary. On
the other hand we wish to ensure that the volume of achievement and technical project
information collected at the end of the control period does not result in schedules
highlighting serious and unpredicted difficulties. We must relate the order of magnitude
of activity durations the length of the control period and this rule pre supposes that we
have, even before the network is drawn, some notion of the appropriate length of the
control period. If activity durations, foe e.g. are falling in the range between one and 15
weeks with a mean at around 4 weeks, we will not know from this alone whether the
control period should be 2, 4 or 8 weeks long. In practice, we would usually be wise to
take a longer than a shorter period initially and be prepared to shorten it if this appeared
desirable. In the above example we would start with an 8 weeks control period and
reduce it to 4 weeks if this became necessary at some stage in the life of the project.
If it has been decided that revised schedules will only be produced at irregular intervals
whenever major projects upsets have occurred, it can prove difficult in practice to decide
exactly when such a revision should be undertaken. This may be a sound reason for not




                                            47
pursuing this policy, especially where an extensive set of information collection
procedures have to be set in motion at short notice in order to make such a revision.
In projects of short total duration, of the order, say of two or three weeks such as we find
in plant maintenance a further factor has to be considered. A certain irreducible time is
required to collect, process, and analyse the information at the end of a control period. If
this time is three days, we clearly will get little or no value from a control period of four
days. In general we might say that control periods lengths should in no circumstances be
less than double the time it takes to make a review.

Procedures for schedules revision
Whether schedules are revised regularly or not, the steps which have to be taken in
making each revision are the same. Firstly, we have to collect two kinds of information
from those responsible for activities, historical and future. The historical information is a
statement of which events have occurred and which activities have been completed, or in
the case of partially completed activities what time remains before they are complete.
The future information must contain confirmation that time estimates for activities not yet
started are still valid, or, if they or not, re estimates must be given. It is most important
that this opportunity to correct early estimates which are judged to be inaccurate is taken
at each review. In addition, we are dependent on activity managers to tell us when fresh
light has been thrown on the technical nature of the project so that the network structure
itself may be modified so that it accords with the most up to date knowledge of the
project. The total of this information when combined with the network and schedules as
they were at the preceding review enable us to produce an up to date network and new
schedules.
It is most important that we recognize the difficulties that may lie in our way in
collecting all this new information. As in most control systems, ultimate success will
depend on the accuracy, completeness, and promotions of this feed back from the field of
operations. Inaccurate, missing or late information can disrupt or invalidate the
effectiveness of project control. It is therefore most necessary that all our activity
managers should understand not only the details of the reporting procedure but also the
theory of network analysis sufficient to enable them to make proper interpretations of
schedules. In addition, since those responsible for the operating of the control procedures
will usually be in a staff function relative to the line function of activity managers, the
support of top management is vital in maintaining good human relations within the
project control systems. In particular, it is top management who can enforce promptness
in reporting, and ensure that activity managers are not made to feel that duration
estimates are target commitments which might lead them to build in reserves of time.
On small projects with control periods of two weeks or more it is usually quite feasible
for the reporting information to be collected by one or more men visiting all the activity
mangers. Where this is not possible, because for e.g. the activity managers are
geographically dispersed, or the volume of information is too great, it becomes necessary
to institute a more formal procedure involving direct reporting by activity managers. In
all cases, the most fool – proof routine is to mark all change information on copies of the
most recent schedules, since these act as a check list.
Before the new schedules are issued they must be examined so that we may be sure that
they are valid and capable of implementation. There are many reasons why this may not



                                             48
be so, and adequate time for a vetting process should be allowed as a matter of routine.
No matter how careful we have been, errors may have crept into either the basic
information or into the calculations. If a computer is being used a good computer
program will be vary helpful in spotting these errors, although some are such that they
cannot be identified in this way. In any event, all schedules, however produced, should
be carefully examined for errors. The process is made substantially easier if all input
information appears on the schedules themselves, so that the activity managers can assist
in this checking process.

The new schedule may highlight a serious situations, perhaps an unacceptable delay in
project completion, which requires some fundamental investigation before a more
satisfactory schedule can be produced. In such a case, the best procure might be to issue
the schedules together with a statement of the difficulties and suggested remedial action
to those concerned. It may be possible to rectify the schedules in the time available but
this not be allowed to delay in their issue. Whenever this kind of situation occurs must
always satisfy ourselves on one important point. Is the project in real difficulty, or are we
guilty or a failure to use network analysis to adequately represent our project? If the
project is in real difficulty we must immediately report the fact to our management , but
if our networking is at fault, we must rectify this as soon as possible.

In addition to continually improving our network description of the real life project, we
may decide to explore the possibility of executing the project in a different way. This
procedure of, exploration and testing the alternative possibilities we can simulation.
Simulation is the process of answering a number of ‗what if‘ questions, such as what
happens if we change the sequence of activities? Or what if we switch resource effort at
some date in the future? Used in the right way, simulation is a powerful tool in the
network analysis project control. Simulation may often be used in the time between
reviews.

We should recognize that there are two parts of new schedules. The short term portion
covering the duration of the next control period, and the long term portion extending
beyond it. We should be particularly careful to ensure that the short term portion really
does have the detail necessary for the day to day control of operations by activity
managers.

The long term portion may often lack this specific detail and should always be regarded
as an area where improvements can be incorporated before it becomes a short term.


The use of float values:
In the simple critical path theory we defined total, free, and independent float we now
discuss where these different kinds of float occur and how they are used in project
management.

The float is zero on the critical path and is therefore positive on all other activities. On
large projects only some 5% of all activities are on the critical path and we therefore find



                                             49
positive total float values on some 95% of all activities. This identification of the
important small minority of all activities which determines the shortest time in which the
project can be completed is of great value to management in meeting delivery
commitments.

When we take advantage of total float on a non critical activity, we allow its completion
to be delayed beyond its earliest possible completion by up to the amount of its total
float. We do this in the know ledge that we will not delay the completion of the entire
project, but we will make some following activities more critical. Specifically all
activities which follow the one on which the delayed completion which incurred up to
the points where they merge with a more or equally critical path will have their earliest
start dates delayed, and their total float values reduced by the amount of initial delay.
Clearly an uncontrolled use of total float early in the life of a project will tend to make a
large proportion of activities critical later in its life. Free float and independent float,
both with the characteristic that they are amount of time by which the completion of an
activity can be delayed beyond its earliest possible completion without delaying the start
of any activities which follow, are introduced to help in overcoming this draw back.

Free float is always less than or equal to the total float of an activity. Positive values of
free float appear on all but one of the activity is preceding an event, and in no other
circumstances. This fact means that we will find positive values of free float on only a
minority of activities, perhaps about 20%, all the others being zero.
Independent float is always less than or equal to the free float of an activity. Positive
values of independent float appear only on one of three activities forming a simple
triangular configuration in the network, the one with the largest total float independent
float above zero is usually even rarer than free float, & appears on perhaps some 5% of
all activities.
So far we have not described a kind of float which appears on all non critical activities
and which can be used by activity managers without delaying those who follow.
Total float is quite unsuited for this purpose, and free and independent float appear only
as a minority of activities but are otherwise suitable. What can be done to remedy this
situations? We can take the advantage of the position in networks where free float
appears as described above, and we will illustrate this point by referring the figure
below. Suppose that activity 13-14 has zero free float. Activity 12-14 will therefore
have positive free float, and activities 10-11 and 11-12 will have zero free float we can
split the free float on activity 12-14 in to 3 parts and assign them to the three activities in
the path 10-11 - 12-14. in making such split we can use any rules we wish, and it could
be pro rata to number of activities, prorate to activity duration, or it could be a matter
subjective judgment based on a technical knowledge of the activities themselves. This
idea can be extended to the point at which a portion of free float has been assigned to all
non critical activities in a network

A method for placing greater emphasis on desired project completion dates:
So far we gone thru a method of scheduling in which we make the latest date for the
objectives event the same as earliest date we have just calculated. This leads us to critical
path with zero total float and zero slack and all other values of float and slack are either



                                              50
zero or positive. We say, that this is how we produced a schedule showing how the
project may be completed as soon as possible.

A more common scheduling objective is to show how the project can be completed by its
desired completion date. we can reflect this objective in our scheduling procedures by
making the latest date for the objective event equal to its desired date, regardless of what
the calculated earliest date for this event is. This will give either to a positive or negative
or zero float and slack values, depending on whether the earliest date for the objective
event is earlier or later than the desired date, and the original critical path will be unlikely
to have zero float and slack. Of course negative float and slack values appearing in a
schedule demonstrate the impossibility of completing the project on time with the
network and its data as its stands. How ever, the areas where improvements are needed
are very clearly indicated and the immediate task is to so change the data that the
negative signs are removed. This minor modifications to the standard scheduling
technique places a great emphasis on project completion on time.

Resources and cost implications of time schedules\
In all our discussions so for we have concentrate on time considerations only and have
ignored the problems of finding the resources to execute activities when needed, and the
problems of the project cost. Suppose some category of labor is in short supply and it is
known that it will probably cause activity delay, and suppose we have tight budget to
project expenditure, how can we take account of this further factors in deriving our
schedules? We can see clearly that there will be times when a failure to observe this
concentrate will result in schedules which may be satisfactory from the timing point of
view but which are incapable of being implemented.
There are two approaches to this problem on the one hand we can use project resource
and cost characteristic to influence the time schedules as they are being calculated, and
the other hand we can examine the resources and cost implications of meeting and
acceptable time schedule. Let us examine a simple example of this letter approach.
In the below figure we can see a bar chart schedule for the simple network developed in
the section simple critical path theory. The category and the number of units of resources
required for each activity is shown, and activities start and finish at there earliest dates. A
summary of total resources requirements is given at the bottom, if we limits the
availability of resources units to one each of X and Y, this schedule is infeasible because
two units of Y are shown as being needed in periods 3 to 6. we now examine the
activities contributing to this overload with a view to spotting one or more with float
sufficient to allow them to be delayed in to a period where capacity is available. Infact,
activity 2-4 has 8 periods of total float and can be rescheduled to start on period 9, instead
of period 3 without delaying project completion. The another below figure the new
schedule which is now feasible from the resources as well as the timing points of view.
A delay activity of 6 periods inserted immediately before activity 2-4 in the network will
ensure that this infeasibility will not appear in the schedules again. the method just
described is essentially one of trail and errors & may be used on projects of a ny size. It
should be remembered that a complex chain reaction can be set up when an early activity
is delayed in a large project, involving delays in starting activities which follow. It is
good practice to make only a few such delays before recomputing the schedules, so that



                                              51
the effect of a small number of changes can be seen before others are made. A similar
procedures can be used in fitting activity cost into a limited budget.


The place of network analysis in the organization, and staffing considerations
Since network analysis is likely to take over wherever bar charts have been the usual plan
technique, there should not be much difficulties in visualizing the place of network
analysis in the organization. How ever, in using these techniques there is a change of
emphasis and three basic functions should be recognized, how ever they are carried out in
a particular organization.
Firstly, there is the project manager in charge of one or more projects and amongst other
things, responsible for coordination and completion on time. His projects pass thru the
various line departments, but he usually occupying a staff position in the organization and
is not therefore responsible for these departments. Next, there la the activity manager
responsible for the work on one or more individual activities, and he will be one of the
line managers. Lastly, there is the planning office responsible for the network charts and
the production of schedules. The planning office is always a staff function. This three
function must work harmoniously together it network analysis is to be a success, and
clearly all three are dependent on each oilier. The project management, or progresses,
meeting is the idle place in which to discuss difficulties and should, if possible, be
arranged to co inside with the issue of new schedules and be attended by the
representatives of all three functions.
All three of this functions need to be experienced in the use of network analysis in
different degrees, and there remains the problem of how this can be achieved. Where
there is no experience in the organization, a pilot exercise is essential. The project on
which such an exercise is carried out should be of the main stream of company concern
where the learning process can proceed without a glair of publicity. It is important that
such an exercise should be carried out right thru to completion of the project, since the
real effectiveness often does not appear until the end such an exercise will develop a
nucleus of people in all these function who are experienced in network analysis. There
after major projects cane be undertaken with a greater confidence.
                                                   13



      10             11                       12                     14




                                                                                       Period No.
         Resource      No. of       Total
Activity category      Units        float      1        2    3   4        5   6   7     8    9     10       11       12       13       14
1-2      X                      1         3    1        1
1-3      X                      1         0    1        1    1   1        1   1   1     1
2-3      X                      1         3                  1   1        1
2-4      X                      1         8                  1   1        1   1   --    --   --   --       --       --       --       --
3-4      X                      1         3                                                  1         1        1        1        1        1
NO.OF UNITS X                                  1        1    1   1        1   0   0     0    1         1        1        1        1        1



                                                        52
REQUIRED
NO.OF UNITS Y
REQUIRED                                   1   1    2   2   2   2   1   1   0        0       0       0   0   0




                                                                    Period No.
                       Resourc
                           e      No. of                                         1       1       1   1   1
     Activity          category   Units        1 2 3 4 5 6 7 8 9                 0       1       2   3   4
       1-2                X         1          1 1
       1-3                X         1          1 1 1 1 1 1 1 1
       2-3                X         1              1 1 1
       2-4                X         1                          1                 1       1       1
       3-4                X         1                          1                 1       1       1   1   1
  NO.OF UNITS X
   REQUIRED                                    1 1 1 1 1 0 0 0 1                 1       1       1   1   1
  NO.OF UNITS Y
   REQUIRED                                    1 1 1 1 1 1 1 1 1                 1       1       1   0   0




RISK MANAGEMENT :

If it is possible to avoid the effect, can you reduce the impact?
For example whether can hold up projects and cannot be avoided
The solution is to examine the weather history for the area and the time of year, and to
build in to the schedule a reasonable amount of delay. E.g excavation for a building
construction is not usual done during the monsoon. You would have just removed all the
water by pumping it out, and the same night, these could be pouring rain!



Periodically look at the risk registrar and swing into action when the early warning
signals appear. The early warning signal is also known as the direction capability

Let us go through the process for simple examples

Example1: temperature rise in a car

Risk identification: if a car heats up, it will cause damage to the engine
Risk qualification: the damage can be huge if not attended early enough



                                               53
Risk response development: a]. in older cars, you had to check if there is enough water in
the radiator. Putting enough water is the response. b]. in newer cars, an automatic water
recirculating system containing a coolant was installed. In both cases, and even in the
latest cars, a temperature indicator was fitted on the dashboard. This is the detection
capability. c]. in the latest cars, an increase in temperature would automatically stop the
cars, thus reducing human error.

Risk response control in cases a and b above, the risk response control mechanism is to
manually stop the car to prevent damage.

Other examples: The same process can be followed to understand why: i] air bags are
placed in a car to cushion / minimize the effect of a head on collision. ii] fires sensors are
installed in large buildings along with fire extinguishing systems. iii] seat belts are
installed in cars iv] we guard against foreign exchange risk.- possible increase in the
value of the US dollar in case you have placed an order on an international company for
supply of goods.
In a development project such as the space shuttle, it is the risk of failure of each one of
the parts and the evaluation of their damaging effect that drives the decision. Regardless
of their cost , a relatively inexpensive item and cause harm to human life as was sadly
experienced on the Columbia shuttle.
In the challenger space shuttle disaster, it was a simple O – ring failure that caused great
harm to the astronauts. Some member of the project team felt that the probability of O -
ring failure at the low launch temperature was quite low. However, the severity of the
failure was 10, because the astronauts ‗on board would be killed.
In risk management as the saying goes ―expect the unexpected‖.


*********************************** ************************************




Q.7 Describe the role of a project manager in an organization, also explain the tasks
of teams and individual manager in each phase of a project in an organization.

Ans: Some organizations prefer to name two project managers – one for the
conceptual phase, to bring it up to confirming the project‘s feasibility (if the organization
is the end – user) or, to be a techno – commercial executive to assist / take the lead in
securing the order for the contracting company. (if the organization is the systems
development organization – SDO), the other to take over from the project feasibility /
order stage and see it though the planning, implementation, and completion phases.




                                             54
In the review phase that is desirable to follow the completion phase, both project
managers play a part to recommend and implement improvements in the system to enable
better execution in future projects from ―concept of commissioning‖.

1. Organizing projects:
The project organization having established the WBS, you will now have a fairly detailed
view of what the project looks like in particular, what needs to be done.

The next stage is determining who is going to do it and how they should be organized.
Although it would be wrong to suggest that correct organization will solve all your
problems, it is without doubt that a flawed organization will cause major problems on a
project.
These will manifest themselves as difficulties in communication, responsibility and
commitment. The organization you select for your projects should, therefore, try to
address these issues.
Logically, your WBS is your project organization, we stated that for each work unit
which appeared on the WBS there was a single person responsible for the delivery of the
end product associated with it. We should, therefore, be able to map bottom level tasks
on to individual workers, higher – level tasks on to their managers, and so on.

Structure and flexibility

―What a bureaucracy. I can‘t get anything to move in this organization.‖
―you are lucky there‘s bureaucracy to complain about there is not any organization on
our project. I don‘t know where my job stops and another persons starts.‖
These views reflects opposing complaints about the structure of an organization. The
first is a reaction to rigid structures, which funnel information along routes mapped out
by flow diagrams and organization charts. The approach allows little flexibility for
making expeditious projects moves. The second complaint emanates from a less
structured organization characterized by unclear levels of authority and responsibility. In
this organization, flexibility is so great that work boundaries become blurry and the result
may be a project that, like the proverbial cooking pot, have too many cooks watching
over it - or, conversely, none at all.
In designing organizations, project decision makers must create structures that will meet
widely diverse project needs. If the structure is too rigid – or too loose – the organization
may provoke reactions similar to those given in the opening dialog. Simply drawing an
organization chart falls far short of designing a project‘s organization. In addition to
sketching out who reports to whom, the over all design should respond to the question,
―how will the organization really work‖? it must provide for effective interaction among
all of the project‘s players. An organization‘s purpose is to facilitate the interaction of
the people to achieve goals.

      to create an organization design which provides a permanent setting in which
       managers can influence individuals to do their particular job.
      To achieve the pattern of collaborative effort among individual employees, which
       is necessary for successful operations.



                                             55
      To create an organization which is cost effective that is one which not only
       achieves the first two goals, but does so with minimum of duplication of effort,
       payroll costs etc.
A structure that fosters human interaction, that minimizes barriers to such interaction, is
required in setting up project organizations.
Three classic structures prevail in project work. Although subtle variations exist, the
cornerstones of organization design are represented by the following forms.

1. Functional or hierarchical organization. Reportedly the most prevalent             type of
organization in the world, the hierarchical structure is pyramid-shaped, with stratified
management levels subordinated by distinct horizontal tires. Work activities are divided
functionally by specialties and disciplines.
2. task force organization. In the task force organization, human resources pooled for a
project team are largely separated from other company personal ties. Centralized project
management directs the project efforts.
3. matrix or horizontal organization. The matrix organization is a hybrid structure aimed
at optimizing strength and minimizing weakness of the functional and task force
structures. It is a loose functional structure in which extended lateral mobility exists.

A properly designed organization can be hailed as a major contributor to project success.
Establishing the structure itself is only part of designing the organization, but it is a
crucial part. An organization structure performs the following key functions.

      when unveiled, after being modeled to specific needs, it represents a
       psychological ―kick off‖ indicating that the project can move ahead at an
       increased clip.
      It formally establishes relationships among project team members and others.
      It implicitly or explicitly maps out work activities.

The key to successful organization design is understanding that most project interaction
takes place through people, not through systems or things. Its people who make the
organization go, and cause significant things to happen. A project must be organized so
as to optimize the human interaction required to carry out the activities necessary to meet
final goals.

The functional organization:
The hierarchy, or functional organization, is an outgrowth of the classic bureaucracy.
The hierarchy strives to be rational, efficient, and professional by establishing fixed
authority relationships and defined spheres of competence.
In project management however where multidisciplined projects must be completed
within limited time frames and within predetermined budgets, the functional organization
is often inadequate. Multispecialty ventures call for a horizontal form a coordination a
characteristic very foreign to vertically oriented bureaucracies.
How ever a lack of lateral flexibility does not mean that functional organizations are
entirely useless for managing projects. Projects can be directed from a functional base
using an approach that is called ‗influence project management‘.



                                             56
One type of project where the hierarchical organization is most appropriate is where the
bulk of the work is carried out by one particular function or skill. This tends to be the
case for technical projects particularly, where the impact of change is more on the
technology than on the environment.

Functional organization with „influence project management‟ position


                               General Manager




           Project activator
           (influence
           project
           management)




  Design                  Production          Erection                  Testing




            Contact                Quality                  Administrati
            management             control                  on



Task force organization

The task force organization has been called ―pure‖ project management. It is team effort
created specifically to accomplish the projects objective or mission. The project manager
deals from a character establishing strong authority. Within the task force the manager is
unencumbered by functional strappings and assumes a position of prestige, authority, and
responsibility. Many major construction projects and special manufacturing projects,
qualify as project oriented or task force organizations. A sample task force organization
is shown in below figure. The task force appears to many to be the ideal way to mange
project and is often referred to as the projectized form of organization. It is task oriented
team oriented, unhampered by restrictions imposed by the external organization and



                                             57
buffered from external conflicts. This advantages make the task force a strong preference
for many projects managers.
The task force carries with it, how ever some significant disadvantages. Mobilization and
de mobilization of personal are a major difficulty because the nature of the work is
temporarily. Where do the people came from? Where do they go? Once the project is
completed? Technical expertise is difficult to maintain in projectized structures qualified
specialist may turn down temporary project assignments in favor of more permanent
positions in functional sittings. Also, because the cast of the task force organization are
segregated they may appear high in comparison with those of alternative organizational
modes, where cost are included with overhead


                                                                  General manager




                          Project manager                         Other Operations




  Design                  Production                   Eraction                  Testing




    Contract management                Quality control             Administration




Matrix organization:
Structures that are either purely functional or purely projectaized are becoming relatively
rare. More commonly found are organizations representing some type of matrix
formation. While these organizations are often carry strong functions or projects over
tones, the interconnecting web of relationship and responsibilities characteristic of matrix
philosophy is always present. The figure below shows in a simple form how a typical
matrix structure might exist for a manufacturing projects. In this section the advantages
and disadvantages of the matrix as opposed to those of the functional and the projectaized
structures and discussed.




                                                  58
The matrix and the camel.
The camel is set to have been conceived by the committee whose initial task was to
design a horse. The give take compromise of the committee members resulted in and
awkward looking and cumbersome creature that was never less highly effective in the in
hospitable desert environment for which it was created.
The matrix may be regarded as the organizational as the organizational cousin of camel.
Surely the original goal was not ambiguous, conflict – raising structure that finally
evolved. Despite its ungainliness, the matrix model has proved to be effective in certain
complex organizational environments that are perhaps as hostile as the camel‘s desert
locate. Outside of their natural environments, both the camel and the matrix appear
strange, clumsy, and very much out of place.
Three basic conditions are required for the matrix organization to be effectively applied,
1.outside pressure for dual focus 2. pressure for high information – processing capacity
and 3. pressure for shared resources. Where at least two of these conditions exist, the
matrix structure should be considered an organizational solution, where non or only one
of the conditions appears, establishing a matrix should be questioned. Outside pressure
for a dual focused may represent a need to meet customer desires through a central
spokes person, even though the worth is developed on a specialty basis within the
company. The matrix can relieve the pressure for high information processing capacity
because, in terms of speed and agility, its horizontal and informal communication
patterns give it a sizable advantage over other forms. The problem of pressure for shared
resources can be meet by the matrix by, which is more resource efficient than say, a
cluster of numerous independent project structures, which are bound to result in
redundancies. The cumulative positive effect of these conditions may be sufficient to off
set the difficulties of dealing with the conflict prone, fuzzy organizational compromise
called the matrix.
The matrix approach leaves staff working on the project within their own departmental
structures it allows the project to remain fully integrated with the mainstream
organization / and encourages decision making to remain within the organization, rather
than isolated within the project in order to avoid this conflict of priorities and
accountabilities there needs to be agreement between the project management and the
departmental management about the amount of time and commitment that individual
members of staff can spend on the project.




            Matrix organizational for a manufacturing project


                          General manager




  Design                Production               Erection                Testing




                                            59
                      Contract                  Quality control                 Administration
                      management




Pro        Design     Contrac      Product      Quality       Erectio      Admini        Product
ject       persone    t            ion          control       n            stration      ion
Mg         l          manage       persona      persona       persona      persona       persona
r
                      ment         l            l             l            l             l
―A
‖                     persone
                      l
Pro
ject
Mg
r
―B
‖


       Conclusion:
       Three distinct structures serve as a basis for designing project related organization
       functional, task force and matrix. At one extreme is the ―projectized ―task force, and at
       the other is the functional structure. The matrix organizational is a continuum in
       between, covering a range of variations.
       Functional organizations are hierarchical, verticalized structures that establishes clear
       lines of authority and foster competence within disciplinary specialties. Projectaized
       structures use the task force team approach marshaling necessary resources around a
       strong project manager in order to accomplish the projects goals. Matrix organizations
       result from attempts at making ―the best of two worlds‖ by cross breeding the functional
       and projectaized forms. The matrix of spring combines the attributes of relative
       efficiency (through utilization of human resource) and effectiveness (through task
       oriented coordination). With the not so desirable side effects of ambiguity and conflict.
       Each type of organizational structure meets project needs to greater or lesser degrees.
       The comparative performance of each as related to basic criteria is shown below table,
       which is based on studies done in research and development organizations




       Comparative performance under project matrix, and functional organizations for
       R&D project.



       Criteria                       Project                     matrix                     Functional

       Achievement of due dates       Very good                   poor                       poor

       Technical qualities            poor                        good                       very good


                                                       60
Resource utilization           poor                    good                    very good

Cost control                   very good               good                    poor

Job satisfaction
             Specialists       poor                    good                    very good

  Non specialists              very good               good                    poor

Client feed back & control     very good               good                    poor

Unidisciplinary                poor                    good                    very good

Multidisciplinary              very good               good                    poor

Conflicts                      Low                     high                    Low


Decision making responsibilities:

Establishing who decides what is a major prerequisites for any project. If clear decision
making responsibilities are not defined, then either crucial decisions will not be made and
the project will suffer from inertia, or the project team itself will take decisions, resulting
in alienation and reduced commitment from the users.
As a general rule, decisions should be made by those who normally make them within the
organization, or have some accountability for the consequences. Accountants should
make decisions about the accounts, technicians about technical problems etc.
Levels of authority should also be defined, especially authority to spend money or deviate
from the terms of reference. This should include escalation procedures to help resolve
conflicts between irreconcilable decisions made by different decision makers.

Having decided upon the type of structure of the organization, which is suitable for a
specific project we now turn to the project manager.

He/she may be either the project leader or sub-project leader. In both cases
responsibility, accountability and trust are the three conferment bestowed or a project
manager.




                                              61
                                                            Sub project team




                      Project leader


                      Sub project leader

                      Team member

A project manager is an agent of the proprietor and assumes the role of the proprietor in a
construction project where the proprietor lacks the technical and organizational skills for
the task. As such, the project manager becomes responsible for preparing a brief, and
appointing and coordinating the consultants. The proprietor‘s requirements are conveyed
to the project manager who ensures that they are acted upon by the consultant and
contractor. He may, if engaged for a total service, be responsible for such matters as site
selection, feasibility studies, preparation of consultants briefs, selection of consultancy
team together with negotiation and documentation of conditions of engagement,
evaluation of design profiles, supervision of documentation,
implementation of programme, selection of contractual system, contract financial control,
supervision of letting as well as many other services

A project manager should have the following skills:
1. A high level of leadership and communication skills;
2. Ability to manage the client issues;
3. Ability to manage the local government approval process;
4. Ability to manage the design process;
5. Ability to manage the construction process; and
6. Ability to manage risks.

A project manager should undertake the following roles:
1. Understanding of the client
• Understand the nature of the client as a non-profit entity in relation to decision making,
financial capability, high level of volunteers, lack of technical understanding and
limited knowledge of contractual issues.
• Understanding of the end user requirements (including club members, community
groups, other sport or recreational groups).
• Resolve any conflicts between users to achieve the optimum design and cost outcomes.
2. Understanding of the project



                                             62
• Understanding of scope.
• Understanding of Funding (including funding sources, conditions of funding,
constraints and limitations on availability).
• Understanding of time constraints (including sporting season, major events).
• Understanding of budget (including benchmark costs, market fluctuations, locality
issues).
3. Understanding of design
• Understand all legislative requirements
• Develop functional brief
• Prepare design brief
• Align scope and budget
• Manage sketch design and developed design process
• Manage development of contract documentation
• Manage the planning process and facilitate gaining all relevant approvals.
4. Understanding of tender process
• Understand requirements of State Purchasing Policy
• Evaluation of value for money
• Ability to revise scope to meet tender price
• Understand equity and probity issues as applied to the use of public funds
5. Understanding of the construction process and technical requirements of a building
project.
• Understanding of the relevant building disciplines
• Understanding of relevant building contracts
• Understanding of contract administration and roles and responsibilities of
Superintendent
• Management of time, cost and quality of overall project
• Undertake regular reviews of cost and program
6. Development of Risk Management strategies
• Review, manage and mitigate risks around technical, financial, environmental and
political issues.
• Develop proactive risk management strategies.
7. Communication
• Provide regular reports to the client that is relevant and meaningful
• Include the client in the decision making process.
• Provide the client with the tools to make sound decisions.

MANAGING A PROJECT TEAM


PHASE                                                   TASK

       Conceptual                                Define scopes- meet/talk to client
                                                 and sponsor
                                                 Deliverable: Defamation
Planning                                         Plan tasks, deliverables, risks,
                                                 milestones.



                                         63
                                                   Dependencies, expenditures &
                                                   responsibilities
                                                   Deliverable: Project schedule &
                                                   budget
Implementation                                     Monitor progress against project
                                                   schedule /budget
                                                   Modify the plan as necessary
                                                   Identify and record changes to scope
                                                   Liaise with sponsor and client

                                                   Deliverable: Project deliverable

Completion / handover                              Confirm objective meet
                                                   Hold official handover event
                                                   Produce end user instructions

                                                   Deliverable: completed project

Review                                             Conduct post – project review. Agree
                                                   learning points

                                                   Deliverable: project review
                                                   document




                        MANAGING A PROJECT
                        TEAM

PHASE                   TEAM                               INDIVIDUAL
                        * name the project - this will
                        give the team a point of           * Identify the people you would like to
                        reference as it forms              take part take preliminary surroundings
                        * negotiate a team building        on availablity and interest.
CONCEPTUAL              budget                             *Assemble the planning team




                                        64
                           * Hold preliminary team
                           meetings to establish roles and     * Select individuals
                           ground rules * Produce the          * Delegate tasks
                           product organization chart          *Identify skills shortfalls and agree
                           *Set up a group diary and e-        personal development goals.
                           mail address group                  *Open a personal file on each tean
PLANNING                   *Agree dates for review             member

                           * Communicate progress to all
                           team members                        * Monitor initial delegation
                           *Maintain the profile of the        *Delegate further tasks
                           project via minutes, articles and   *Bring in new people as required
                           briefings. *Resolve disputes if     *Caoch individuals
                           they arise.    *Integrate new       *Hold individuals review meetings
                           team members         *Arrange       *Maintain an appropriate level of
IMPLEMENTATION             regular social events               individual social contact.
                           * Involve the team member to
                           hand over                           * Debrief individual performances.
                           *Represent team in success or       Agree any feedback that will be passed
                           failure                             to manager
                           *Pass on feed back and              * Reward success
COMPLETION/HANDOVER        rewards to team                     *Thank individuals
                           * Combine the post project
                           review with a social event to       * Write reports on individuals noting any
REVIEW                     say than you to all participants    skills




EIGHT PARADOXES OF PROJECT MANAGEMENT

According to the American management guru tom peters, there are eight key paradoxes
in a good project manager. The truly successful project manager needs to be able to
balance the qualities in the left hand column with their opposites on the right.

TOTAL EGO                             NO EGO




                                           65
Confident in his / her own ability and    Not one to pull rank - a true
right to make demands of people           servant leader.
AUTOCRAT                                  DELEGATOR
Decisive and authoritative where          Encourages team members to
necessary                                 act on their own initiative
LEADER                                    MANAGER
Has a vision of the future and inspires   Manages the nuts and bolts of
people                                    implementation
COMPFERTABLE WITH AMBIGUITY               OBSESSED WITH PRECISION
Projects are surrounded by ambiguity      Some things do need precise
searching for exactitudes causes          definition. The project manager
paralysis.                                has a nose for what these are
GOOD FACE TO FACE                         GOOD COMMUNICATOR IN
COMMUNICATOR                              WRITING
Is confident and persuasive in face to    Has the discipline to write things
face briefings. Builds rapport with       down and ensures paperwork is
people.                                   kept up to date.
                                          LIKES TO KEEP THINGS
UNFAZED BY COMPLEXITY                     SIMPLE
                                          Believes that simple rules are not
Recognizes that the direct route is not   most likely to be kept and simple
the best one                              solutions most often work
AWARE OF THE BIG PICTURE                  ATTENTION TO DETAIL
                                          Pays attention to the small but
Is able to take account of the            vital components of a project that
environment(Political, economic or        can mean the difference between
business) that surrounds the project      failure and success.
IMPATIENT                                 PATIENT
                                          Sometimes listening is more
A project manager often needs to          effective than speaking.
agitate to overcome resistance and        Unnecessary checking slows
achieve a result                          progress

The changing roles of a project manager during the different phases of the project life
cycle show that the ―human management‖ skills are the most important




Personal qualities of the project manager

      Motivating
      Directing
      Communicating
      leading



                                              66
Role of the project manager

      To plan
      To organize
      To coordinate
      To control
      To lead

Human factors in project management
        1. Project blending – building the project team
        2. planning & strategy
        3. Organizing projects
        4. Project interfacing
        5. using managerial time
        6. handling conflict
        7. Communication
        8. Negotiating
        9. Decision making & problem solving
        10. managing change across changing frontiers
        11. Managing behavior

      Two premises make up the cornerstone of this ‗human side‘ of project
       management.
   1. People are the cause of a projects problems
   2. A projects problems can be solved only by people

      no matter what type of project or what industry problems occur either because
       people
   1. Make them occur, or
   2. Do not tale action to prevent them from occurring

At least 50% of the problems that exist on projects are either totally or partially
behavioral in nature. The percentage has reached 75% in some groups.
The role of a project manager is essentially to keep an objective view of the whole project
its trends, problems and activities. From an informed view point it is important that the
project manager does not become, for example the engineering manager or the
construction manager on the project but stands back and ensures that engineering and
construction are performed and properly managed.
If he has to write a letter to the client in which some points may be disputed, he first takes
the proposed letter to the client unsigned, gets his creation to it, and then sends it to him.
He is tactful and realistic.
It is necessary to ensure that the actions taken are based on good information and on
frank and open exchange of ideas and data relating to the issues. In my experience the
need to provide people with time to think before precipitating action is an important
function of the project manager. That has to be coupled with making sure that analysis of




                                             67
the circumstances is an complete and as objective as possible. Thus the project manager
must firmly control discussions and actions in these circumstances.
As the size and significance of the projects increase, coupled with their technical
complexity, the need grows to have increased dialogue and understanding between a
client and contractor if both are to contribute what is needed to bring large projects to
successful conclusions.

In handling project overseas, there is a constant need to bear in mind how the
environment, the society and its religion and customs will impact on the working of the
project, for example, while many people speak English, it is not their mother tongue, and
there is need to use mutually understood vocabulary and avoid idioms.
Project interfacing is a project management function and where the project manager plays
a key role. This includes coordinating between various external agencies and internal
departments.
Positive approach to environmental problems
The environment is complex and changing, and it is impossible to define it precisely or to
predict its impact in control terms it will neither go away ignored nor be passive. It is no
respecter of authority or feeling and it is definitely not computer friendly. Yet an
interactive relationship is possible between the project manager and the environment. He
/ she anticipate involvemental problems and so minimize their effect and can even lobby
people to adopt a positive attitude to his or her project. It is necessary to develop and
awareness of and sensitivity to the cultural, political & involvmental situation, and then
to use imagination, judgments, and persistence in selecting and following up specific
issues.
First the manager has to appreciate what aspects of the environment relevant to the
project. This is not easy, because the significance of different factors vanes considerably
from project to project. There will be no clearly established written guidelines to
compare with a standard checklist, and research and investigation will be called for. It is
necessary to develop social awareness rather than consider only the technology and this
emphasizes the need to stand back occasionally from technical matters to view the forest
as well as the trees. How ever ignoressing the immediate tasks, they can often be tackled
better by maintaining a balanced perspective.
Second, the manager has to be alert to changes and trends. The situation is never static.
Apart from the environment / project interrelationship, which itself induces change, the
expectations of both the public in general and those more directly involved in the project
can have a profound effect on their behavior. Trends and expectations may not have been
anticipated fully or correctly at the project inception. It is not sufficient merely to
understand the environment. More positive results can be obtained by attempting to
influence and change it.         Communication and participation play a role here.
Implementation phase have been discussed below.


                           Project manager‘s role during interim
                           progress reviews




                                            68
      Listener                                                        contributor




      Integrator                                                      Leader



Project manager role during an interim progress review is to achieve your objectives of
knowing the status of operations and influence the course of future events as necessary.
During the discussion, he may have any of the following roles.

Listener: listen as the individual update you on progress, deviation from plan, problems
encountered and solutions proposed. Listen not only to what is said, but also to how
things are said. Is the person excited, frustrated, discouraged? Help clarify what is being
said by asking questions, and verify what you think is being said by restating your
understanding both facts and feelings.
Contributor:in many interim reviews, progress, is in line with plans. However, you
will occasionally have problems to deal with. When its occurs, you can contribute their
solution by directing the other person toward possible course of action. Use your
knowledge and experience as necessary to move the project forward.
Integrator: An important role of project manager is to integrate the individual parts of
project into a compatible whole. Is something being neglected? Is there duplication of
effort? How can the people available be last deployed?
Leader:perhaps the most important role of the project manager is that of leader.
Through a variety of techniques, you must keep the team‘s effort directed toward the
common goal of completing the project according to specifications, on time, and within
budget. You must confirm and recognize good performance, correct poor performance,
and keep interest and enthusiasm high.

PROVIDING FEED BACK
  Intentions                  Actions                      Results



                              Feed back
Project managers find many opportunities to provide feed back to those who have a hand
in completing the project. Through feed back, individuals learn about the effect their
behavior has on others and on the projects success. It serves to maintain good
performance and correct poor performance. To be effective, however, feed back must be
handled properly. This illustration shows the continuous loop that exists when there is
good feed back.

Handling negative feedback:



                                            69
           1. describe the observed actions and results.
           2. ask the individual if those were his or her results.
           3. with a typical ‗No‘ response, ask what different actions would likely
               produce the desired results.
           4. discuss different alternative courses of action.
           5. agree upon a way to handle similar situations if they should occur in the
               future.
Check your feed back style
Rate your self by placing a check mark in front of each action that is typical of how you
handle gibing feed back. The ones you don‘t check represent opportunities for
development.

      Describe rather than evaluate. By describing observed action and results, the
       individual is free to use or not to use the information. By avoiding evaluation,
       you reduce the likelihood of a defensive reaction.
      Be specific rather than general. Avoid using ‗always‘ and never. Rather, discuss
       specific times and events. Avoid generalized conclusions such as ‗you‘ re too
       dominating. Rather be specific by saying, when you don‘t listen to others, you
       may miss a valuable idea.
      Deal with behavior that can be changed. Frustration is increased when you
       remind someone of a shortcoming over which he or she has no control.
      Be timely, generally, feed back is most useful at the earliest opportunity after the
       behavior.
      Communicate clearly. This particularly important when handling negative feed
       back. One way to ensure clear communication is to have the receiver rephrase the
       feed back to see if corresponds to what you had in mind.

NEGOTIATING FOR MATERIALS, SUPPLIES, AND SERVICES.
Negotiating is an important process that takes up as much as 20% of a manger‘s time.
Negotiating is one way to resolve differences, and it can contribute significantly to the
success of your project.
The ideas presented here will prepare you to negotiate effectively.

Definition:- Negotiation is a discussion between two parties with a goal of reaching
agreement on issues that separate them when neither party has the power (or the desire to
use its power) to force an outcome.



Ten guidelines for effective negotiation:

           1. Prepare: Do the home work. Know what outcome want and why. Find
              out what out come the other party wants. Avoid negotiating when your
              are not prepared ask for the time you need. As a part of your preparation,
              figure out what you will do if you are unable to come to an agreement.




                                            70
               Your power in negotiation develops from attractive alternatives the greater
               your ability to walk away, the stronger your bargaining position.
           2. Minimize perceptual differences: The way you see something can be quite
               different from how the other party sees it. Don‘t assume you know the
               other person‘s view ask questions to gain understanding and restate your
               understanding so it can be confirmed or corrected by the other party.
           3. Listen: Active, alternative listening is mandatory to effective negotiation.
               Let the other side have an equal share of the air time. (if you are talking
               more than 50% of the time, you are not listening enough). In the process,
               respect silence. Occasionally people need to collect their thoughts before
               moving ahead. Don‘t try to fill this time with talking
           4. Take notes: you need to know where you are what has been agreed to,
               what remains to be resolved. Don‘t rely on memory. Take notes and then
               summarize your agreement in a memorandum.
           5. be creative: early closure and criticism stifle creative thinking. Be willing
               to set some time aside to explore different and unusual ways to solve your
               problem. During this time, do not permit criticism of ideas offered. All
               negotiations can benefit from nonjudgmental creative thinking.
           6. Help the other party: good negotiations recognize the other party‘s
               problem is their problem as well. Put yourself in the other‘s position and
               work to find a solution that meets everyone‘s needs. After all, no
               agreement will hold up unless both parties support it.
           7. make trade offs: avoid giving something for nothing. At least get some
               goodwill or an obligation for future payback. The basic principle to
               follow is to trade what is cheap to you but valuable to the party for what is
               valuable to you but cheap to the other party.
           8. Be quick to apologize: An apology is the quickest / surest way to de
               escalate negative feelings. It need not be a personal apology. An apology
               for the situation you are in can be just as effective also, don‘t contribute to
               hostility by making hostile remarks. Hostility takes the discussion away
               from the issues and shifts it to a defense of self where the goal is to
               destroy the opponent.
           9. Avoid ultimatums: An ultimatum requires the other party to either
               surrender or fight it out. Neither outcome will contribute to future
               cooperation. Also avoid boxing someone in. this happens when you offer
               only two alternatives, neither of which is desirable to other person.
           10. Set realistic deadlines: Many negotiations continue too long because no
               deadline exists. A deadline requires both sides to be economical in their
               use of time. It permits you to question the value of certain discussion and
               encourages both sides to consider concessions and trade offs in order to
               meet deadline.

RESOLVING DIFFERENCES:
The strategy one chooses to resolve differences tends to result from an interplay of
assertiveness and co operation. This process can be clouded by emotion jilt times, and
when this happens, it is difficult to achieve a satisfactory outcome. Therefore, when you



                                             71
sense that either you or the other persons thinking clouded by emotion, ask to delay
discussion a while. The following issues influence assertiveness and cooperation

Assertiveness:
    People tend to be more assertive when an issue is important to them
    People tend to be more assertive when they are confident of their knowledge
    People tend to be more assertive when things are going against them.
    People tend to be less assertive when they feel they are at a power disadvantage

Cooperation:
    People tend to be more cooperative when they respect the other person
    People tend to be more cooperative when they value the relationship
    People tend to be more cooperative when they are dependent on the other person
      to help carry out the decision.

Motivating:
No matter how well planned and organized a project may be, its chances of success
without the commitment of the project team are limited. It is largely up to the project
manager to ensure that the project enjoys a culture and an atmosphere which is
conductive to achieving the project objectives.

Here are some guidelines
    Quality of work (interesting, challenging, and useful)
    Sense of belonging (to project team)
    Feeling of involvement
    Sense of achievement
    Recognition of success and effort.
    Opportunity for development and progression
    Fulfillment of skills and abilities
    Increased responsibility

Delegating:
For any manager, delegation is a critical skill. It is particularly challenging in the context
of a project where work groups are temporary and lines of authority are less clearly
defined.




                BENEFITS OF DELIGATION

 For the              For the project         For the project team member
 organization         manager (delegator)     (delegate)
 Allows fullest use   Frees up time to gain   Gives opportunity to learn or
 of available         an overview of          practice new skills
 resources.           progress




                                              72
 Encourage              Ensures highest          Enables them to work on more
 broadest spread of     quality results          important aspects of company
 expertise                                       business
 Develops highest       Allows work to be        Exposes them to new and
 level of team work     done quicker through     challenging situations
 and morale             concurrent activity



Styles of delegation:

 1. DO AS I       2. ASK MY               3. ASK MY            4. TELL ME WHAT       5. HAVE MY JOB
 SAY              PERMISSION              DEVICE               YOU'VE DONE
 Use when you     As delegator you        You pass control     you have enough       The ultimate aim of
 need             retain control but      to the delegatee,    confidence in the     the true delegator s
 immediate        expect the              but retain a         delegate to allow     to prepare the over.
 action or when   delegatee to            clsoe interest in    him / her to brief    Recognition over that
 explaining a     come to you wth         what he/she          you retrospectively   you are prepared to
 fixed process    ideas                   proposes to do                             move to level 5 can
 that must be                                                                        often be a powerful
 followed                                                                            motivator to the
                                                                                     delegatee and is the
                                                                                     mark of a good
                                                                                     manager.

BLOCKS AND DELEGATION

Many of project managers freely admit that they are overloaded with tasks while your
team members do not delegate as much as they should. This is discontented because they
are not entrusted with is usually either because they have a negative responsibility, so it is
important to recognize attitude to delegation or because they are stopping you. The
following factors are simply unaware of how and when to do it. That is among the most
common blocks to delegation, if you find up difficult to delegate you may end up.

 FEAR                        OVER ENTHUSIASM                    POWERLESSNESS
                                                                The mistaken beliief that there is
                             we sometimes continue to do        no one delegate to.
                             takes we should delegate           Powerlessness is first and
 of loosing control          because we enjoy them.             foremost a state of mind
 of up setting
 subordinates
 of failure
 of being outshone by
 able subordinates

 GUILT                      INSECURITY                          LACK OF
                                                                ASSERTIVENESS
 at not delegating soon     People who fear for their own       Inexperienced managers
 enough                     positions often refuse to           sometimes overlook
                            delegate for fear that they will    opportunities to delegate
                            become dispensable                  that require them to be
                                                                assertive



                                                 73
Communication within projects:
The project manager has a vital role as the facilitator of communications both within the
team and between the project and the wider group of stake holders end
users/client/superior.

SELECTING THE BEST METHOD OF COMMUNICATION
             High logical complexity                               Low logical complexity
Low emotional             High emotional              Low emotional            High emotional
complexity                complexity                  complexity               complexity
e.g. here is my           e.g. we want these          e.g. Can I have
complete client           three changes made to       another copy of that     e.g. The project will not
database                  the scope of the project    document                 be ready on time
                                                      Suggestion: E-mail         Suggestion: Best done
                           Suggestion: Deliver this   would be ideal for this,   face to face or
                           message face to face.      or the telephone.          occasionally on the
Suggestion: Put it in      The recipient will not     Don’t waste time with a    phone. If it is required
writing. If the            doubt want to ask          face to face               in writing, precede with
intermation is needed      questions. Arrange a       interruption unless the    an adhoc meeting or
fast, use fax or e-mail.   formal meeting.            request is urgent.         phone call.

Handling conflict:
This is major role performed by the project manager during all phase of the project life
cycle.

Conflict & people.

Conflict is an off spring of disagreement between individuals. It is a basic to human
behavior inevitable in all endeavors involving people. Each unique person is bound to
have views that differ from those of others & differing views tend to generate conflict
which may range from mild irritations to no holds barred defiance.

Types of conflicts:
Projects conflicts can be grouped in to 3 major categories,

            i.       Interpersonal, where the individual struggles internally with conflict
                     that may or may not be caused or effected by others.
            ii.      Inter personal, where interaction takes place between individuals, and
            iii.     Inter group where the departments or other groups are at odds. A brief
                     description of these common project conflict mode follows.

      Intra personal conflict. Conflict occurs within an individual when personal
       professional or job related expectations or hopes are frustrated. The conflict may
       stem from personal limitations or anxieties that have nothing to do with the
       project. If inner project do not over flow and turn in to inter personal clashes,
       they may remain latent and actually not effect the project at all.
      Inter personal conflict. This may be originate from difference in project
       management styles, competing aspirations, or personality differences.


                                               74
       Interpersonal conflicts involve two or more people and can focus on just above
       anything. This type of friction calls for custom made solution, which depend on
       the specific situation and the players.
      Inter group conflict. When one group or team is pitted against another, inter
       group conflict results. Just about any subject whether or not its related to the
       project ca be the cause of the project. Inter group conflicts are normally the result
       of interpersonal friction between influential project leaders. They can be partly
       managed by dealing with the conflict on a personal basis through those influential
       leaders.

While conflict may be exclusive, with only one type exiting at a given time, two or more
types might also occurs simultaneously. For instance a intrapersonal conflict over a
project cost, quality, trade off (―should I take the risk‖) could set of a interpersonal clash.
This might consequently cause respective staff groups to rally around the major
participants touching of and inter group dispute.

Conflicts in project management:
Although conflicts crops up in all human endeavors, projects may offer environments
particularly susceptible to generating strife. What are the reasons for conflicts in project
work? Thamhain and wilemon conducted extensive research on conflict in project
management. In an article published in sloan management review, they identify the
following seven primary focal points for projects conflict.

1. Project priorities. Differing views over activity sequence for accomplishing project
goals.
2. Administrative procedures. Differences regarding how the project will be managed,
included reporting and interface relationships, definition of responsibilities, and
procedures for administrative support.
3. technical opinions and performance trade offs. Disagreements over technical issues
performance specifications, technical trade offs, and performance issues.
4. manpower resources. Differing viewpoints on staffing and personal utilization
5. Cost objectives. This agreements over cost estimate from support areas.
6. Schedules. This agreement related to timing, sequencing, and scheduling of project
related task.
7. personality. Interpersonal difference as opposed to technical issues, often ego
centered.



Benefits of conflict:
The positive value of conflict is under estimated. Properly managed, conflict is valuable
tool, particularly when conflictive situation are confronted in their early stages.
A side from its role as a sensor, conflict has other positive effects. It offers increased
challenge for finding new solutions and give groups and individual opportunities for
jointly solving a project‘s problems.




                                              75
Dissent in projects, if handled properly, can constitute a fundamental tool for achieving
results. Thrusting the subject into an arena of potential conflict may set off discussion
that will ultimately lead to the timely completion of the project. Conflict serves as a
signal that something is wrong, thus calling for remedial action.

Detrimental effect of conflict
Conflicts negative repercussions may be easier relate to then its benefits, since troubles
and friction are generally considered to be synonymous with conflict. This unfavorable
reputation is not without justification, of course since conflicts adverse side, if not
properly managed, can easily over power potential blessings. Here are some of the drw
backs.

      conflicts causes stress. While part of thriving life forms, stress, in some cases,
       meets out an unhealthy after math. Stress effects human both physically and
       emotionally breeding ulcers, back pains, and other superiors palpitations. It
       brings on sleep less nights, irritable out bursts, and periods of inner with drawal,
       taking its tall in bodily and mental strain.
      Conflicts creates an un productive atmosphere. In highly conflictive situations,
       people‘s productively levels may fall because of the uncertainly generated by
       clashing views. As long as the conflict persists confusion and ambiguity keep
       people from producing at their optimum.
      Conflict may cause loss of status or position power. Depending on how the
       conflict is handled and who the players are, dispute may put one of the parties in
       a ―losing ―pose. Paradoxically, this may mean a loss not only for the loser, but
       ultimately for the winner as well, because the winner has on going stakes in the
       project over all success.
      Conflicts is one of the less easily taught aspects of management. To be effective;
       a manager must be able to lead to inspire other to follow him; this need is all the
       ives in project management because a project relies so much on the commitment
       and loyalty of those involved.
        Unfortunately charisma cannot be bottled and applied in liberal does every
       morning . however , a number of adjective spring to mind when describing
       leaders.

Leadership:
Leadership one of the easily thought aspects of management. To be effective, a manager
must be able to lead, to inspire others to follow him. This need is all the stronger in
project management because a project relies so much on the commitment and loyalty of
those involved.
Unfortunately charisma can not be bottled and applied in liberal doses every morning.
How ever a number of adjectives spring to mind when describing leaders.

Leadership qualities:

* Dynamic      * Confident
* Visionary    * Imaginative



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* Flexible     * Analytic
* Creative     * Decisive
* Patient      * Sympathetic
* Persistent   * Organized
* Assertive    * Goal driven
* Persuasive   * Charismatic

Each of these qualities will be called upon during a project, the successful leader will
instinctively know the right approach to take in the right circumstance.

Choosing a project manager
Project management is not something which can be done by any one, and all too often
there is an assumption that if some one can manage a department then that same person
can manage a project. The role of the project manager is an important one and
fundamental to the success of any project. Organizations make large investments in
projects and should make similar investments in the people they call upon to manage
those projects.
It calls for additional skills and characteristics over and above those which are normally
required for line management. These are skills which can mostly be learnt through
training and, above all, experience. Many organizations have now instituted project
management development programs which reflects its position as professional discipline
in its own right.

Project manager‟s check list

1. Define a project                   2.Select strategy
3. Develop specifications             4. Develop a schedule
5. Develop a budget                   6. Organize the project team
7. Assign duties & responsibilities   8. Train new team members
9. Monitor progress                   10. Take corrective action
11. Provide feed back                 12. Test final outcome
13. Delver outcome to client          14. Write operational manual
15. Train client personal             16. Reassign project staff
17. Dispose of surplus equipment-     18. Release facilities
Materials & supplies.
19. Evaluate project performance      20. Complete final audit
21. Complete project report           22. Review project with management

********************************* *************************************


Q.8 Write any Four short notes

A. RISK MANAGEMENT:




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Risk management is a structured approach to managing uncertainty related to a threat,
through a sequence of human activities including: risk assessment, strategies
development to manage it, and mitigation of risk using managerial resources.

The strategies include transferring the risk to another party, avoiding the risk, reducing
the negative effect of the risk, and accepting some or all of the consequences of a
particular risk.

Some traditional risk managements are focused on risks stemming from physical or legal
causes (e.g. natural disasters or fires, accidents, death and lawsuits). Financial risk
management, on the other hand, focuses on risks that can be managed using traded
financial instruments.

The objective of risk management is to reduce different risks related to a pre selected
domain to the level accepted by society. It may refer to numerous types of threats caused
by environment, technology, humans, organizations and politics. On the other hand it
involves all means available for humans, or in particular, for a risk management entity
(person, staff, organization

Steps in the risk management process:

Establish the context:

Establishing the context involves

   1. Identification of risk in a selected domain of interest
   2. Planning the remainder of the process.
   3. Mapping out the following:
          o the social scope of risk management
          o the identity and objectives of stakeholders
          o the basis upon which risks will be evaluated, constraints.
   4. Defining a framework for the activity and an agenda for identification.
   5. Developing an analysis of risks involved in the process.
   6. Mitigation of risks using available technological, human and organizational
      resources.

 Identification:
After establishing the context, the next step in the process of managing risk is to identify
potential risks. Risks are about events that, when triggered, cause problems. Hence, risk
identification can start with the source of problems, or with the problem itself.

      Source analysis Risk sources may be internal or external to the system that is the
       target of risk management. Examples of risk sources are: stakeholders of a
       project, employees of a company or the weather over an airport.
      Problem analysis Risks are related to identified threats. For example: the threat
       of losing money, the threat of abuse of privacy information or the threat of


                                             78
       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. For example: stakeholders
withdrawing during a project may endanger funding of the project; privacy information
may be stolen by employees even within a closed network; lightning striking a Boeing
747 during takeoff may make all people onboard immediate casualties.

The chosen method of identifying risks may depend on culture, industry practice and
compliance. The identification methods are formed by templates or the development of
templates for identifying source, problem or event. Common risk identification methods
are:

      Objectives-based risk identification Organizations and project teams have
       objectives. Any event that may endanger achieving an objective partly or
       completely is identified as risk.
      Scenario-based risk identification In scenario analysis different scenarios are
       created. The scenarios may be the alternative ways to achieve an objective, or an
       analysis of the interaction of forces in, for example, a market or battle. Any event
       that triggers an undesired scenario alternative is identified as risk - see Futures
       Studies for methodology used by Futurists.
      Taxonomy-based risk identification The taxonomy in taxonomy-based risk
       identification is a breakdown of possible risk sources. Based on the taxonomy and
       knowledge of best practices, a questionnaire is compiled. The answers to the
       questions reveal risks. Taxonomy-based risk identification in software industry
      Common-risk Checking In several industries lists with known risks are
       available. Each risk in the list can be checked for application to a particular
       situation. An example of known risks in the software industry is the Common
       Vulnerability and Exposures.
      Risk Charting This method combines the above approaches by listing Resources
       at risk, Threats to those resources Modifying Factors which may increase or
       reduce the risk and Consequences it is wished to avoid. Creating a matrix under
       these headings enables a variety of approaches. One can begin with resources and
       consider the threats they are exposed to and the consequences of each.
       Alternatively one can start with the threats and examine which resources they
       would affect, or one can begin with the consequences and determine which
       combination of threats and resources would be involved to bring them about.




Assessment:
Once risks have been identified, they must then be assessed as to their potential severity
of loss and to the probability of occurrence. These quantities can be either simple to



                                            79
measure, in the case of the value of a lost building, or impossible to know for sure in the
case of the probability of an unlikely event occurring. Therefore, in the assessment
process it is critical to make the best educated guesses possible in order to properly
prioritize the implementation of the risk management plan.

The fundamental difficulty in risk assessment is determining the rate of occurrence since
statistical information is not available on all kinds of past incidents. Furthermore,
evaluating the severity of the consequences (impact) is often quite difficult for immaterial
assets. Asset valuation is another question that needs to be addressed. Thus, best educated
opinions and available statistics are the primary sources of information. Nevertheless,
risk assessment should produce such information for the management of the organization
that the primary risks are easy to understand and that the risk management decisions may
be prioritized. Thus, there have been several theories and attempts to quantify risks.
Numerous different risk formulae exist, but perhaps the most widely accepted formula for
risk quantification is:

Rate of occurrence multiplied by the impact of the event equals risk

Later research has shown that the financial benefits of risk management are less
dependent on the formula used but are more dependent on the frequency and how risk
assessment is performed.

In business it is imperative to be able to present the findings of risk assessments in
financial terms. Robert Courtney Jr. (IBM, 1970) proposed a formula for presenting risks
in financial terms. The Courtney formula was accepted as the official risk analysis
method for the US governmental agencies. The formula proposes calculation of ALE
(annualised loss expectancy) and compares the expected loss value to the security control
implementation costs (cost-benefit analysis).

Limitations:
If risks are improperly assessed and prioritized, time can be wasted in dealing with risk of
losses that are not likely to occur. Spending too much time assessing and managing
unlikely risks can divert resources that could be used more profitably. Unlikely events do
occur but if the risk is unlikely enough to occur it may be better to simply retain the risk
and deal with the result if the loss does in fact occur.

Prioritizing too highly the risk management processes could keep an organization from
ever completing a project or even getting started. This is especially true if other work is
suspended until the risk management process is considered complete.

It is also important to keep in mind the distinction between risk and uncertainty. Risk can
be measured by impacts x probability.

Risk management activities as applied to project management

In project management, risk management includes the following activities:



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      Planning how risk management will be held in the particular project. Plan should
       include risk management tasks, responsibilities, activities and budget.
      Assigning a risk officer - a team member other than a project manager who is
       responsible for foreseeing potential project problems. Typical characteristic of
       risk officer is a healthy skepticism.
      Maintaining live project risk database. Each risk should have the following
       attributes: opening date, title, short description, probability and importance.
       Optionally a risk may have an assigned person responsible for its resolution and a
       date by which the risk must be resolved.
      Creating anonymous risk reporting channel. Each team member should have
       possibility to report risk that he foresees in the project.
      Preparing mitigation plans for risks that are chosen to be mitigated. The purpose
       of the mitigation plan is to describe how this particular risk will be handled –
       what, when, by who and how will it be done to avoid it or minimize consequences
       if it becomes a liability.
      Summarizing planned and faced risks, effectiveness of mitigation activities, and
       effort spent for the risk management

************************************ ***********************************




B. GANTT CHART

A Gantt chart is a popular type of bar chart that illustrates a project schedule. Gantt
charts illustrate the start and finish dates of the terminal elements and summary elements
of a project. Terminal elements and summary elements comprise the work breakdown
structure of the project. Some Gantt charts also show the dependency (i.e., precedence
network) relationships between activities. Gantt charts can be used to show current
schedule status using percent-complete shadings.




                                           81
The first Gantt Chart was developed in 1896 by Karol Adamiecki, who called it a
harmonogram. Because Adamiecki did not publish his chart until 1931, it now bears the
name of Henry Gantt (1861–1919), who designed his chart in 1915.

The 1980s, personal computers eased the creation and editing of elaborate Gantt charts.
These desktop applications were intended mainly for project managers and project
schedulers. In the late 1990s and early 2000s, Gantt charts became a common feature of
web-based applications, including collaborative groupware.

Although now regarded as a common charting technique, Gantt charts were considered
revolutionary when they were introduced. In recognition of Henry Gantt's contributions,
the Henry Laurence Gantt Medal is awarded for distinguished achievement in
management and in community service.

Gantt charts are a project planning tool that can be used to represent the timing of tasks
required to complete a project. Because Gantt charts are simple to understand and ea sy to
construct, they are used by most project managers for all but the most complex projects.
In a Gantt chart, each task takes up one row. Dates run along the top in increments of
days, weeks or months, depending on the total length of the project. The expected time
for each task is represented by a horizontal bar whose left end marks the expected
beginning of the task and whose right end marks the expected completion date. Tasks
may run sequentially, in parallel or overlapping.
As the project progresses, the chart is updated by filling in the bars to a length
proportional to the fraction of work that has been accomplished on the task. This way,
one can get a quick reading of project progress by drawing a vertical line through the
chart at the current date. Completed tasks lie to the left of the line and are completely
filled in. Current tasks cross the line and are behind schedule if their filled-in section is to
the left of the line and ahead of schedule if the filled-in section stops to the right of the
line. Future tasks lie completely to the right of the line.
In constructing a Gantt chart, keep the tasks to a manageable number (no more than 15 or
20) so that the chart fits on a single page. More complex projects may require subordinate
charts which detail the timing of all the subtasks which make up one of the main tasks.
For team projects, it often helps to have an additional column containing numbers or
initials which identify who on the team is responsible for the task.


If it is expected to produce a Gantt chart and to keep it up to date for use in planning your
project.

Need to follow these guidelines in creating chart:

       Use weeks as the time unit
       Include the Mid-project review, Design Show, and Final report due as milestones.
        We suggest about 4-10 milestones for your project.




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          Show       more      detail     on     design      tasks,  less      detail    on
           reports/documentation/presentation tasks. Should have about 3/4 design tasks, 1/4
           documentation/presentation related tasks.
          Getting parts can take 2 weeks or more, depending on the part. If your company is
           building parts for your prototype, getting your part scheduled can take a long
           time. Build these delays into your planning chart.
          Review and update Gantt chart every 14 days, more often if needed.

Project Planning Basics

A "Project" is a set of activities which ends with specific accomplishment and which has
(1) Non-routine tasks, (2) Distinct start/finish dates, and (3) Resource constraints
(time/money/people/equipment).

"Tasks" are activities which must be completed to acheive project goal. Break the project
into tasks and subtasks. Tasks have start and end points, are short relative to the project
and are significant (not "going to library", but rather, "search literature"). Use verb-noun
form for naming tasks, e.g. "create drawings" or "build prototype". Use action verbs such
as "create", "define" and "gather" rather than "will be made". Each task has a duration.
Very difficult to estimate durations accurately. Doubling your best guess usually works
well.

"Milestones" are important checkpoints or interim goals for a project. Can be used to
catch scheduling problems early. Name by noun-verb form, e.g. "report due", "parts
ordered", "prototype complete".

Your plan will evolve so be flexible and update on a regular basis. It also helps to identify
risk areas for project, for example, things you don't know how to do but will have to
learn. These are risky because you may not have a good sense for how long the task will
take. Or, you may not know how long it will take to receive components you purchased
for a project.

Work Breakdown Structure

A work breakdown structure (WBS) is a categorized list of tasks with an estimate of
resources required to complete the task. An example WBS appears below.




                                Est
WBS Task
                                Person Who     Resources            M&S
#   Description
                                -Hrs
5         Profile motor power
5.1       Design test stand     20     SE, JM Pro/E
5.2       Build test stand      15     SE, JM Frame & brake parts $35


                                              83
5.3    Test 3 motors           3     SE, JM Stroboscope             $75
5.4    Plot torque vs. speed 2       JM      Excel

(M&S = Materials & Supplies)

Using Excel to Make Gantt Charts
A sample Gantt chart made using Microsoft Excel appears in the figure which
accompanies this document. If today's date were May 13, Task A would be behind
schedule, Task B ahead and Task C right on schedule. The events marked by fat dots are
milestones.

Gantt charts made with Excel are easy to update and maintain. Here's how to do it.

Select tasks from your work breakdown structure. Your WBS also indicates the person-
hours of effort and people responsible for the tasks. Assign each task tentative start and
stop dates (or durations) based on the information in the WBS. Also list important
milestones and their dates. If you have more than 15 or 20 tasks, split your project into
main tasks and subtasks, then make an overall Gantt chart for the main tasks and separate
Gantt charts for the subtasks which make up each main task.

Decide what resolution to use in the timeline. For projects of three months or less, use
days, for longer projects use weeks or months, and for very short project use hours. For
these instructions, we will assume you have chosen a resolution of days.

Fire up Excel. Under Page Setup, select landscape orientation, and then select the options
to center the chart horizontally and vertically on the page. Also under Page Setup,
activate the "fit to one page" button. (Note that if the text comes out too small, you may
have to print your chart on two pages and paste together. Even better, adjust the
resolution of your date scale or drop less important tasks to make your chart fit
comfortably on one page.) Still under Page Setup, set header and footer to be blank. (It's
better to write the title right on the spreadsheet rather than use the header for the title.
Finally, under Page Setup, turn off the option to print gridlines.

Set up the cells. You can use the sample (found elsewhere on this web page) as a guide.
Use the border command to draw boxes around the appropriate cells. Enter your
scheduling data. To make the gray bars which indicate length of task, select the
appropriate cells, then the fill command (one of the buttons near the top).

As the project progresses, fill in the gray bars with black to denote the fraction of a task
that is complete.

Project Management Packages

You can also create Gantt charts using a project managment computer package. A sample
chart made using Microsoft Project appears below. Project is the most widely used


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scheduling tool for small projects. It is available on the PC's in MechE 308 for use by IT
students.




We strongly recommend that you use MS Project to create your Gantt charts, if nothing
else because it will give you experience using this important package.

To embedd a Project Gantt chart into a Word document, get the chart showing on the
screen, then Edit > Copy Picture... > to GIF file. From there you can import the gif file
into Word. You may have to rotate it 90 degrees in MS Paint to get it to fit and be
readable.

Advantages & limitations:

Often the project has important events which you would like to appear on the project
timeline, but which are not tasks. For example, you may wish to highlight when a
prototype is complete or the date of a design review. You enter these on a Gantt chart as
"milestone" events and mark them with a special symbol, often an upside-down triangle.

Gantt charts have become a common technique for representing the phases and activities
of a project work breakdown structure (WBS), so they can be understood by a wide
audience.A common error made by those who equate Gantt chart design with project
design is that they attempt to define the project work breakdown structure at the same
time that they define schedule activities. This practice makes it very difficult to follow
the 100% Rule. Instead the WBS should be fully defined to follow the 100% Rule, then
the project schedule can be designed.



                                           85
Although a Gantt chart is easily comprehended for small projects that fit on a single sheet
or screen, they can become quite unwieldy for projects with more than about 30
activities. Larger Gantt charts may not be suitable for most computer displays. A related
criticism is that Gantt charts communicate relatively little information per unit area of
display. That is, projects are often considerably more complex than can be communicated
effectively with a Gantt chart.

Gantt charts only represent part of the triple constraints of projects, because they focus
primarily on schedule management. Moreover, Gantt charts do not represent the size of a
project or the relative size of work elements, therefore the magnitude of a behind-
schedule condition is easily miscommunicated. If two projects are the same number of
days behind schedule, the larger project has a larger impact on resource utilization, yet
the Gantt does not represent this difference.

Although project management software can show schedule dependencies as lines
between activities, displaying a large number of dependencies may result in a cluttered or
unreadable chart.

Because the horizontal bars of a Gantt chart have a fixed height, they can misrepresent
the time-phased workload (resource requirements) of a project. In the example shown in
this article, Activities E and G appear to be the same size, but in reality they may be
orders of magnitude different. A related criticism is that all activities of a Gantt chart
show planned workload as constant. In practice, many activities (especially summary
elements) have front-loaded or back-loaded work plans, so a Gantt chart with percent-
complete shading may actually miscommunicate the true schedule performance status.

******************************* ****************************************




E. „S‟ CURVE:




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Project
Cost%


             Time
S- Curve is a phenomenon showing the typical path of product performance in relation to
investment in R&D. At first performance rises fast and from then on, once a deadline in
the slope occurs the productivity is unlikely to increase much by heavy R&D expenses.
More likely, a technological discontinuity will occur where an innovative technology is
introduced and rapidly creates massive gains in productivity. At the start of the curve, a
significant effort is needed to get an achievement, but once this basic learning has been
done, productivity can advance significantly with little marginal effort. After a few years
further advances get more and more fractional. As technology generation change, few
incumbents survive because of a lack of adapting to the new technology.


The s-curve function allows the user to define a smooth response yet still maintain a high
acceleration. In many applications the ideal step response is not one where the maximum
speed is reached instantaneously. The jarring effect of high acceleration and deceleration
can damage the application, yet a slow acceleration can slow down production
dramatically. In these applications the ideal step response is to have a slow initial
acceleration, leading into a high acceleration to a low deceleration to the required speed.
The resultant speed curve is what is known as an s-curve

The S Curve is a well known project management tool and it consists in "a display of
cumulative costs, labour hours or other quantities plotted against time".The name derives
from the S-like shape of the curve, flatter at the beginning and end and steeper in the
middle, because this is the way most of the projects look like.

The S curve can be considered as an indicator and it's used for many applications related
to project management such as: target, baseline, cost, time etc. That's why there is a
variety of S Curves such as:
-Cost versus Time S Curve;(appropriate for projects that contain labour and non-labour
tasks).
-Target S Curve;(This S Curve reflects the ideal progress of the project if all tasks are
completed as currently scheduled)
-Value and Percentage S Curves;(Percentage S Curves are useful for calculating the
project's actual percentage complete)
-Actual S Curve;(This S Curve reflects the actual progress of the project to date)

In order to be able to generate a S Curve, A Baseline and Production Schedule are
necessary because they contain important information for each task: -the Baseline -
contains information about Actual Start date and finish date.
-The Baseline - can also contain information about Man Hours and costs.
-The Production Schedule contains information about the actual percentage complete.



                                            87
There are some software scheduling packages that generate automatically S Curves. For
example MS Project does not have this possibility so a third party software application is
needed to process the Baseline and Production Schedule data and generate the needed S
Curve.( for example S Curve Generator that integrates with MS EXcel to generate S
Curves).

Sample project s Curve




Project managers often track project schedules and milestones as a mechanism for
managing the project and detecting risk. The monitoring is usually at a task level of detail
and often quite labor intensive. As it turns out, there is another mechanism for monitoring
project state. While its not at the finely grained level of detail as the individual task, it
does provide wonderful insight into the nuance of a project.
You see projects have a tempo to their development that is usually consistent over time
and that can be represented graphically by plotting cumulative effort vs. time. The tempo
usually takes the form of an S Curve which represents the normal ramping of a project.

An S Curve is a graphical display of cumulative cost, value, labor hours or in our case
Active Time vs. time. The name derives from the S like shape of the curve, flatter at the
beginning and end and steeper in the middle, which is typical of most software projects.
The beginning represents the typical slow, methodical start to projects, as the team sorts
through the work and determines how to approach the project. The end represents a
deceleration as the work runs out and the middle is the acceleration period as the team
attacks the work.

Steps in the S curve process:
                  4. Analyse technology expenditure (both financial & economic ) and
                      achieved gains in productivity.


                                             88
                  5. Observe the development of this relation over tie and prepare for
                     strategic realignment when the process slows down from rapid
                     growth.

           Rules of thumb for detection:
      Feeling among management the R&D productivity is dedining.
      More and more missed R&D deadlines.
      Sales-growth shifts to monitor segments.
      Trend of small firms in industry to invest in radically new technology
      Overall loss of productivity in industry.

   Strength of the S-Curve Benefits
    Indicates the strategic alignment when productivity gains deadline.
    Havior.

Limitations of the S-Curve:
    The model does not give any clear hints to managers on how to attract in the face
      of technological discontinuity.
    It cannot be inferred from the model, how big the gains will be from new
      technologies.
    The model does not imply how a new technology will look like and by whom it
      will be introduced.
    The model is a generalization of observed technology paths. In reality the size
      and structure of the S can vary

******************************** ***************************************




F. USE OF COMPUTER SOFTWARE IN PROJECT MANAGEMENT

Project management software is a term covering many types of software, including
scheduling, cost control and budget management, resource allocation, collaboration
software, communication, quality management and documentation or administration
systems, which are used to deal with the complexity of large projects.

Tasks of project management software‟s:



                                           89
One of the most common tasks is to schedule a series of events, and the complexity of
this task can vary considerably depending on how the tool is used. Some common
challenges include

      Events which depend on one another in different ways or dependencies
      Scheduling people to work on, and resources required by, the various tasks
       commonly termed resource scheduling
      Dealing with uncertainties in the estimates of the duration of each task
      Arranging tasks to meet various deadlines
      Juggling multiple projects simultaneously to meet a variety of requirements

 Calculating critical path: In many complex schedules, there will be a critical path, or
series of events that depend on each other, and whose durations directly determine the
length of the whole project (see also critical chain). Some software applications (for
example, Dependency Structure Matrix solutions) can highlight these tasks, which are
often a good candidate for any optimization effort.
 Providing information: Project planning software needs to provide a lot of information
to various people, to justify the time spent using it. Typical requirements might include:

      Tasks lists for people, and allocation schedules for resources
      Overview information on how long tasks will take to complete
      Early warning of any risks to the project
      Information on workload, for planning holidays
      Evidence
      Historical information on how projects have progressed, and in particular, how
       actual and planned performance are related

Approaches to project management software:

Desktop: Project management software can be implemented as a program that runs on
the desktop of each user. This typically gives the most responsive and graphically-intense
style of interface.

Desktop applications typically store their data in a file, although some have the ability to
collaborate with other users (see below), or to store their data in a central database. Even
a file-based project plan can be shared between users if it's on a networked drive, and no
two people want to access it at once.

Desktop applications can be written to run in a heterogeneous environment of multiple
operating systems, although it's unusual.

 Web-based: Project management software can be implemented as a Web application,
accessed through an intranet or extranet using a web browser.

This has all the usual advantages and disadvantages of web applications:




                                            90
      Can be accessed from any type of computer without installing software
      Ease of access-control
      Naturally multi-user
      Only one software version and installation to maintain
      Typically slower to respond than desktop applications
      Project information not available when the user (or server) is offline.
      Some packages do allow the user to "go-offline"

 Personal : A personal project management application is one used at home, typically to
manage lifestyle or home projects. There is considerable overlap with single user
systems, although personal project management software typically involves simpler
interfaces. See also non-specialised tools below.

 Single user : A single-user system is programmed with the assumption that only one
person will ever need to edit the project plan at once. This may be used in small
companies, or ones where only a few people are involved in top-down project planning.
Desktop applications generally fall into this category.

Collaborative : A collaborative system is designed to support multiple users modifying
different sections of the plan at once, for example, updating the areas they personally are
responsible for such that those estimates get integrated into the overall plan. Web-based
tools, including extranets, generally fall into this category, but have the limitation that
they can only be used when the user has live Internet access. To address this limitation,
client-server-based software tools exist that provide a Rich Client that runs on users'
desktop computer and replicate project and task information to other project team
members through a central server when users connect periodically to the network and
other tasks. Some tools allow team members to check out their schedules (and others' as
read only) to work on them while not on the network. When reconnecting to the database,
any changes are synchronized with the other schedules.

Integrated : An integrated system combines project management or project planning,
with many other aspects of company life. For example, projects can have bug tracking
issues assigned to each project, the list of project customers becomes a customer
relationship management module, and each person on the project plan has their own task
lists, calendars, and messaging functionality associated with their projects.

Similarly, specialized tools like SourceForge integrate project management software with
source control (CVS) software and bug-tracking software, so that each piece of
information can be integrated into the same system.

 Non-specialised tools : While specialized software may be common, and heavily
promoted by each vendor, there are a vast range of other software (and non-software)
tools used to plan and schedule projects.

      Calendaring software can often handle scheduling as easily as dedicated software




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      Spreadsheets are very versatile, and can be used to calculate things not anticipated
       by the designers.

    Criticisms of project management software

The following may apply in general, or only to specific products.

      May not be derived from a sound project management method. For example,
       displaying the Gantt chart view by default encourages users to focus on task
       scheduling too early, rather than identifying objectives and deliverables.
      May be inconsistent with the type of project management method.
      Focuses primarily on the planning phase and does not offer enough functionality
       for project tracking, control and in particular plan-adjustment. There may be
       excessive dependency on the first paper print-out of a project plan, which is
       simply a snapshot at one moment in time. The plan is dynamic; as the project
       progresses the plan must change to accommodate tasks that are completed early,
       late, re-sequenced, etc. Good management software should not only facilitate this,
       but assist with impact assessment and communication of plan changes.
      Does not make a clear distinction between the planning phase and post planning
       phase, leading to user confusion and frustration when the software does not
       behave as expected. For example, shortening the duration of a task when an
       additional human resource is assigned to it while the project is still being planned.
      Offer complicated features to meet the needs of project management
       professionals, which must be understood in order to effectively use the product.
       Additional features may be so complicated as to be of no use to anyone. Complex
       task prioritization and resource leveling algorithms for example can produce
       results that make no intuitive sense, and over allocation is often more simply
       resolved manually.
      Some people may achieve better results using simpler technique, (e.g. pen and
       paper), yet feel pressured into using project management software by company
       policy (discussion).
      Similar to PowerPoint, project management software might shield the manager
       from important interpersonal contact.
      New types of software are challenging the traditional definition of Project
       Management. Frequently, users of project management software are not actually
       managing a discrete project. For instance, managing the ongoing marketing for an
       already-released product is not a "project" in the traditional sense of the term; it
       does not involve management of discrete resources working on a something with
       a discrete beginning/end. Groupware applications now add "project management"
       features that directly support this type of workflow-oriented project management.
       Classically-trained Project Managers may argue whether this is "sound project
       management." However, the end-users of such tools will refer to it as such, and
       the de-facto definition of the term Project Management may change.




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When there are multiple larger projects, project management software can be very useful.
Nevertheless, one should probably not use management software if only a single small
project is involved, as management software incurs a larger time-

There are many PERT & CPM computer programs available, each with its own variations
and it is well worth shopping around to discover the system which best suits ones own
needs.
All computer programs have good user guides. How ever it must be noted here that
computer programs are not a substitute for the basic skills that you must posses to
manage projects.
A computer program which is in effect, a user friendly network analysis program is only
a tool in the planning, evaluation and control of projects.
Over a million copies of project management computer software have been sold. You
would think that with somany scheduling programs around, the world would run like
clock. But you still here about projects being finished late, over spent under scope, and at
less than required performance.

The simple fact is the project management is more than just scheduling.

Software: Purpose built computer software packages are available to help project
managers plan and coordinate projects. If your project is too complex to plan and co
ordinate manually, you will almost certainly find a package to suit you.

Do you really need it?
Project software is no more than a vehicle to carry your project plan. If you plan is
relatively simple, the demands of the software may be out of all proportional to the
benefits you can derive from using it. You may even find that instead of making your job
easier, the software is creating extra work.

Computerized diary system
If you are running a project substaintly on your own and with a relatively simple budget,
and electronic dairy system may suits your scheduling needs. These now come as
standard with many major office software packages. They can schedule tasks for
particular time or days, post reminders for you and others, and allow you to monitor
progress.

If you and your project team are all on the same computer network, you can have access
to each others dairies, making it easy to co ordinate meetings and monitor activity.

Spread sheet applications:
A standard spread sheet application may be able to generate graphs showing budget and
actual cost and time usage with far less fulls then specialist software. The advantage of a
standard package is that you can decide how much are how little detail to include. In
addition if you are already familier with the program you will not have to spend time
learning a new systm.




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Specialist project software:
If you are certain that you need a specialist software, decide in advance what you need,
then loom for the program that will deliver this. Do not design your specification around
what the program can do. If you do features that you donot really need may seem
essential as soon as you are aware that they exist.

Deciding what you want:

Some questions that may help you to clarify what you need are

      How many people need access to the software
      What software are they already used to?
      How much additional training will they need?
      What package can we supported in your companies IT environment?
      What reports do I need?
      How do I want to display my plan?
      How much is my budget?


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