ASSIGNMENT

DRIVE

WINTER 2015

PROGRAM

MBA

SEMESTER

SUBJECT CODE & NAME

MB0049 PROJECT MANAGEMENT

BK ID

B1627

CREDIT & MARKS

4 CREDITS, 60 MARKS

NAME

DHANIRAM SHARMA

Question 1- Explain the phases of project management life cycle.

Answer: Project management is a rationally planned and organized effort to attain a specific
goal. It comprises of organizing, coordinating and managing different tasks and resources for
successful completion of project. A project lasts for a definite period of time and then
finishes. Projects are usually made up of different diverse elements or mini-tasks that are
completed separately and finally combined together to make the completed project.
Below figure depicts the phases of project life cycle which is followed by the project
management.

Let us now discuss each phase in detail.

1. Project initiation: Project initiation is the first step in the project development cycle,
and in simple terms: starting up the project. A project is initiated by defining its
reason, business goals, and scope. The cause for initiation and the suggested
solution to be implemented must be defined. A project team is put together to define
early milestones, and preliminary budget proposal. The information in project
initiation assists in performing an end of Phase study for getting a GO No GO
decision.
2. Project planning: Once the project is defined and project team is assembled, the
next phase is the in-depth Project Planning phase. This includes developing the
PMP (Project Management Plan), for guiding the team throughout the project
development stage. In this phase the required skills of development team, non-labour
resources, risks plan, detailed action items and milestones are explained.
3. Project development: On the basis of inputs received in the shape of project
feasibility study, preliminary project evaluation, project proposal and customer
interviews, the following outputs are produced:

System design specification

Programme functional specification
Programme design specification
Project plan

4. Project implementation: In this phase, the requirements are built and programmed.
The product is presented for client acceptance and full implementation after the
quality assurance analysis. If the client has accepted the final product, the project is
finished and closed down.

5. Project closure: It includes giving the final output to the customer, handing the
project documentation, manuals, source code, and network layouts. At last a Post
Implementation Review is to be carried out to identify the extent of project success
and document review outcomes.
Question 2- Write short notes on:

Answer:

Economic feasibility of a project:

Need for project planning:
Diversity management:
Rules for network construction:

A) Economic feasibility of a project:

The economic feasibility aspect of a project relates to the earning capacity of the project.
Earnings of the project depend on the volume of sales. Here, the following important
indicators are taken into consideration:
Present demand of the goods produced through the project i.e. market facility (or)
getting a feel of the market.
Future demand of the goods. A projection may be made about the future demand.
The period normally depends upon the scale of investment.
Determining the extent of supply to meet the expected demand and arriving at
the gap.
Deciding in what way the project under consideration will have a reasonable
chance to share the market.
Anticipated rate of return on investment. If it is positive, the project justifies the
economic norm in the relationship between cost and demand.
B) Need for project planning:
The purpose of project planning is to identify various areas of the project work and the
influencing factors, and subsequently define the boundaries of the project performance.
In addition, scope of the project also needs to be explicitly mentioned in the list project
objectives. Further it serves as a guide through its well defined directions to perform the
project.
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Planning is basic to all human activities and requires common sense. It is a trap laid
down to capture the future. It helps in bridging the gap between where you are to where
you want to be. In a way, the complexity of the process aids in identifying the implication
of such a plan and whether it relates to immediate future or a long term perspective.

Planning thus involves:

Brainstorming on various possible alternative courses of action,
Choosing the most appropriate one (or ones)
Agreeing what you can expect to achieve
Calculating the human and material resources needed to reach your objectives
Anticipating possible problems, and
Getting agreement among all concerned about clear targets and timetables for the
work in view.
C) Diversity management:
Diversity management is a management strategy to promote and maintain a positive
workplace environment in the organisation. It is crucial for growth in todays competitive
marketplace.
Diversity management works on the principle of acceptance. Diversity management
inspires the employees to recognise that everyone is different. They should not be afraid
or be biased about these differences. Employees are encouraged to live with the fact
that there are different interests, different values, and different physical and emotional
characteristics present in the organisation. Also, this does not have to obstruct the
productiveness or produce conflict. A strong diversity management programme
encourages the development of skills and talents of the employees. It boosts the
communication among employees and in the long run, increases the productivity of the
department.
D) Rules for network construction:
The rules to be observed in constructing the network diagram are discussed below:
Every activity must have a preceding and a succeeding event. An activity is numerically
represented by the pair of preceding and succeeding events. In the dinner project, for
instance, the activity send invitations is designated as (1-2).

1. Each event must have a distinct number. The number specified to an event can be
chosen in any way, provided this condition is fulfilled. In practice, yet, events are
numbered in the manner that the number at the head of the arrow is greater than that
at its tail.
2. There must not be any loops in the project network

3. The preceding and succeeding events are not same for more than one activity.
Question 3- What are the key steps for effective risk management?
Answer: Risks are the inherent part of every project. There should be proper project
planning and assessment to reduce the impact of risks. There are risks of cost over-runs,
jobs taking too long, insufficient product or service quality, The success of any project is
based on the future estimates by the project management team. Project risk management is
a discipline for dealing with the possibility that some future event will cause harm. Project
risk relates to the uncertain events or situations that can potentially affect a planned project
adversely, usually in terms of cost, schedule, and/or product quality. Project risk is a function
of two components: likelihood and consequence.
Risk is the potential that a chosen action or activity will lead to a loss (an undesirable
outcome). Potential loss itself may also be called "risks". Almost any human endeavor
carries some risk, but some are risky than the others. Risk marks a potential negative impact
to some characteristic value that may arise from a future event. Exposure to the
consequences of uncertainty constitutes a risk. In general, risk is often used synonymously
with the chance of an expected loss.
In risk management, the following steps should be considered for effective risk management:
Step 1 Recognition of assets at risk: The foremost step in the risk management
technique is to carefully identify the assets which might generate risks in project operations.
These assets may fall under various groups, such as tangible and intangible assets,
movable and immovable assets etc.
Step 2 Valuation of assets: The assets identified and grouped in the previous step are to
be valued and categorised into different classes such as critical and essential.

Step 3 Identifying the intimidation: Threats can be distinct as anything that contributes
to the intermission or devastation of any service/product Various compulsions can be
grouped into environmental, internal, and external threats.
Step 4 Risk consideration: The process of risk appraisal includes not only assessment
as to the provability of occurrence but also the assessment as to the impending severity of
loss, if risk materialises. This will support in determining the appropriate risk lessening
strategy, the residual risk, and the investment required to alleviate the risk.
Step 5 Emergent strategies for risk management: After risks identification and
assessment, one must apply various risk management techniques such as risk avoidance,
risk reduction, risk retention and risk transfer.
Risk analysis and management is a process which enables the analysis and management of
the risks associated with a project. Properly undertaken, it will increase the likelihood of
successful completion of a project to cost, time, and performance objectives.
There are a lot of benefits of proper risk management in projects. Organizations can
generate a lot of profit if they deal with uncertain project events in a proactive manner. You
can deliver a project on time, on budget, and with proper quality if you are able to manage
the risks properly. The proper risk management can increase the productivity and efficiency
of the project team.
A project life cycle includes the key phases like initiating, planning, executing, controlling,
and closing. The probability of project risk depends on the project life cycle.
Question 4- Explain any FIVE risk identification techniques.
Answer: Risks The risk identification is done at each stage of a project life cycle. During risk
identification, we identify and categories the risks. Risks must be carefully identified with the
help of techniques such as brainstorming or reviewing a standard list of risks. Risk
identification must be done by the concerned people such as IT people, marketing managers
or top level management.
There are basically two different sorts of risks. These are as follows:
Business risks:
These are the ongoing risks that are best handled by the business. For example, if a key
team member becomes unavailable or sick then it may delay the project and the
organisation might not be able to complete the project in the given financial year.
Generic risks:
Generic risks are those risks that are common to all projects. For example, system failure or
flaw may cause the project to be delayed.
Risks must be defined in two parts. The first part must define the cause of the risk and the
other must define the impact of the risk. For example, a risk may be defined as "The supplier
not meeting deadline will mean that budget will exceed". If the above format is used, then it
would be much easier to remove duplicates, and understand the risk.
For comprehensive identification of risks, we may adopt risk matrix as suggested by WellStametal. Vertical axis of matrix represents various phases of the project and horizontal axis
represents various points of view or perspective. Points of view for infrastructure project may
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include: technical, organizational, zoning,

financial/economic, social/community related.

political,

administrative,

legal/legislative,

For each class (phase and point of view), we may use some proven risk identification
techniques quoted in the literature to identify the possible risks.
These techniques include:

Assumption analysis:
Assumptions made in planning stage of the project are taken as true, real, or certain. A
closure scrutiny of these may reveal possible risks.

Brain storming:
Brain storming is a useful tool to generate the possible risk events in quick time. It is
performed by a cross-function team following set procedures.

Checklist:
The checklist is developed based on past experience. It provides a useful guide in
listing foreseeable risks.

Delphi:
Delphi study is carried out with the help of a group of experts. Since the experts are
people who have a deep insight into the system functioning, it is possible to gather
useful information in this way.

Interview:
Interview may be held with knowledgeable people to identify or to gain more in-depth
knowledge of certain risks or to create a list of control measures.

Observations:
We may visualize the risks by directly examining/observing the current process.

Previous documentation:
Past experiences recorded in company files, reports, third party reports, or news-paper
reports on electronic or paper format provide help in listing risks.

Modelling:
Use of risk tool kits or simulation by computer or other aids may uncover risks.

There are a number of diagrams like cause and effect diagram, fault tree, event tree,
influence diagram, etc. to capture risks.
Question 4: Write a short notes on
Answer 4:
Parametric estimating tool of cost estimating: It is a technique that makes use of a
statistical relationship between historical data and other variables (e.g., square footage in
construction, lines of code in software development, requisite labour hours) to compute a
cost estimate for a schedule activity resource. This technique can generate higher levels of
accuracy depending upon the sophistication, the underlying resource quantity and cost data

build into the model. A cost-related example consists of multiplying the planned quantity of
work to be executed by the historical cost per unit to obtain the estimated cost.
Procurement process: An effective procurement process plays in important role in the
successful implementation of a project. A procurement process starts with the identification
of the required materials and equipments. Delayed delivery, manufacturing defects, incorrect
specifications, belated replacement, pilferage, shortage, etc. are common problems in
almost all projects. An efficient project management can avoid much of these problems by
proper planning and control of procurement and efficient post-procurement materials
management.
A project procurement process covers the following functions:
Request to invite bids or tenders: This covers the listing requirements of
equipment, preparing specifications, and sending request to invite bids.

Shortlist suppliers: This includes identifying the required number of suppliers out of
the possible ones.

Invite bids: This element covers the invitation of bids to receiving them.

Evaluate, negotiate, and choose bid(s): This involves making comparative

statement of various elements of price, negotiate technical and commercial aspects
including price, select the lowest bidder(s), and get the approval of a competent
person.

Prepare and place orders: This includes writing the purchase order which describe
the products and state all the commercial terms in simple and clear words, obtaining
the signature of a competent, authorised person, and send order to supplier and get
his or her acknowledgement.

Order fulfilment: This includes monitoring the progress of manufacturing of

equipment, its quality, packaging, and associated documentation.

Transport and shipping: This covers all the formalities needed to get the
equipments from the supplier to the project site.

Receive, inspect and store equipment at site: This includes activities like general
inspection, marking the identification number, and inspecting and storing it at a
secure place.

(C) Project teams responsibilities in project execution: The project team members are
expected to assist in the management of the project as well; albeit, at a more functional
level. The critical project management elements for the project team to provide assistance
with include:
Performance monitoring: Implement an execution plan to measure the actual
performance as compared to planned performance.

Provide project status: While the project manager is responsible for relaying project
status to parties outside the project team, the project team is expected to report the
status to the project manager. This includes communicating information both on a
formal and an informal basis.
(D) Project termination: Project termination is one of the most serious decisions of a
project management team and its control board. The decision of project termination affects
all the stakeholders of the project and can put some negative impact on the organisations
growth. So it is important to critically evaluate all the aspects before taking the decision. The
project manager and his or her team members will feel that they personally failed. It can also
put a negative impact on the team members motivation level and their productivity.
The following are the key reasons to terminate a project:
Technological reasons
Results of project requirements or specifications are not clear or impractical
Fundamental change in project requirements or specifications, so that the
underlying contract cannot be changed accordingly
Lack of project planning, especially risk management
The planned result or product of the project turn into obsolete, is not any
longer needed
Sufficient human resources, tools, or material are not accessible
The increase in project cost leads lower profit than expected
The parent organisation do not exist longer
The change in strategy of parent organisation, leads towards the project does
not support the new strategy
Essential conditions disappear
Lack of management support
Insufficient customer support

Question 5: What is Quality planning? Explain the inputs, tools and techniques and
outcomes of quality planning.
Answer 5:
Definition of quality planning: Quality planning is the process of identifying the quality
standards that are related to the project and determining how to these standards can be
achieved. It is one of the significant processes of project planning and should be performed
on a continuous basis and in parallel with the other project planning processes.
A good quality planning process starts with a clear definition of the goals of the project. What
is the product or deliverable likely to achieve? What does the product look like? What
functions will it perform? How do you evaluate customer satisfaction? What determines the
success of a project?
Description of the inputs to quality planning:

Quality policy: Quality policy refers to the overall intentions and direction of an
organisation pertaining to quality, as formally expressed by top management.

Scope statement: The scope statement comprises the key objectives of the project
that are needed by different stakeholders.

Product description: It includes the details of technical issues and other concerns
which may influence quality planning.

Standards and regulations: The project management team must acknowledge all
the relevant standards or regulations that may influence the project.

Description of the tools and techniques to quality planning

Benefit/cost analysis: The quality planning process should acknowledge

benefit/cost trade-offs. The benefits should cover higher productivity, lower cost and
high customer satisfaction.

Benchmarking: In this, we compare actual or planned project practices to practices

of other projects to produce ideas for improvement and to find a suitable standard to
measure performance.

Flowcharting: It is a diagram that depicts how different elements of a system relate

to each other.

Design of experiments: It is an analytical technique that helps identifying which

variables affect the overall income the most.

Description of the outputs from quality planning

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Quality management plans: It provides input to the overall project plan and must
deal with quality control, quality assurance, and quality improvement for the project.

Operational definitions: It particularly explains what something is, and how it is

measured by the quality control process.

Checklists: It is a structured tool that helps in verifying if a set of required steps has
been performed.
Inputs to other processes: The quality planning process may discover a need for
further activity in some other area.

Question 6 Describe the various types of project performance evaluation

techniques. List any FOUR benefits of performance measurement and evaluation.
Answer 6:
Performance evaluation is an important tool for the assessment of a system or service
according to the measurements specified. We can define it as the systematic process of
assessment of effectiveness against predetermined norms, standards, or expressed goals.
In management evaluation of any service, process or activity typically refers to "determining
its worth".
Evaluations of project performance are an independent study which is systematically
conducted from time to time to identify the progress of a project and often these studies are
conducted by including both experts from within and outside the project.
Types of project performance evaluation
The following are the types of project performance evaluation techniques:
(i)

Process (or implementation) evaluation: It is also called formative

evaluations which are designed to improve the implementation of a program,
policy or strategy as it unfolds. In this type of evaluation we measure the level
to which a program is effective as it was planned. It usually considers the
program activities conformance to statutory and regulatory requirements,
program design, and professional standards or customer expectations.

(ii)

Outcome evaluation: It is also called summative evaluations which are

designed to judge a program, policy or strategys relevance, success and/or
cost-effectiveness which includes its relative contribution to the intended
outcomes. This type of evaluation measures the level to which a program
attains its outcome-oriented objectives. It mainly focuses on outputs and
outcomes including unintended effects to evaluate program effectiveness but
may also consider program process to understand how outcomes are
produced.

(iii)

Impact evaluation: This is a type of outcome evaluation that measures the

net effect of a program by evaluating program outcomes with an estimate of
what would have happened in the absence of the program. This type of
evaluation is used when external factors are known to influence the programs
outcomes, in order to isolate the programs contribution to achievement of its
objectives.

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(iv)

Cost-benefit and cost-effectiveness analyses: Cost-benefit and cost

effectiveness analyses compare a programs outputs or outcomes with the
costs (resources expended) in order to produce them. When applied to
existing programs, they are also regarded as a variety of program evaluation.
It measures the cost of meeting a single goal or objective, and can be used to
identify the least cost alternative to meet that goal.

Benefits of performance measurement and evaluation:

1. Policy and programme planning and development: Results may confirm policy
and programme direction or identify gaps that need to be addressed.
2. Decision making about funding: Finding out what works well/not so well can be
used to guide future funding decisions/priorities.

3. Clarifying goals: At the outset, developing a road map clarifies goals, explains the
big picture and ensures that everyone shares a common focus.
4. Reporting results: Promotes accountability and communicates what works well to
facilitate improvement and ongoing development.

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