PROJECT

MANAGEMENT

COM 412

STUDY NOTES
Goal: This course is designed to provide students with knowledge in and skills for Project
Management

General Objectives: On completion of this course, the students should be able to:
1.0 Understand the basic Concepts of Project Management
2.0 Understand the Project Lifecycle
3.0 Understand Project Requirements Analysis and Documentation
4.0 Understand Project Planning
5.0 Know how to Design Work Breakdown Structures
6.0 Know how to Design PERT Charts
7.0 Understand Project Execution and Quality Management
8.0 Understand Project Risk Management
9.0 Understand Project Costs Management

A. S. BARI
AUDU BAKO COLLEGE OF AGRICULTURE DAMBATTA
DEPARTMENT OF COMPUTER SCIENCE
2023
UNIT 1: Understanding the basic Concepts of Project Management

1.0 Introduction

A project is a temporary endeavor with a specific goal, timeline, and resources to achieve a unique
outcome.

1.1 Characteristics of project

The following are the main characteristics of a project:

1. Temporary: Projects have a defined start and end date and are not ongoing operations.

2. Unique: Projects aim to produce a unique result, different from routine operations.

3. Goal-oriented: Projects have a specific purpose, objective or goal that defines the project’s
success.

4. Interdisciplinary: Projects involve individuals and teams from different functional areas and
may require cross-functional collaboration.

5. Constrained: Projects have limited resources, including time, budget, and manpower, which
may impact the project outcome.

6. Uncertainty: Projects often involve uncertainty and risk, which may impact project outcomes
and require mitigation strategies.

7. Collaborative: Projects require the participation of multiple individuals and teams, working
together towards a common goal.

These characteristics help to define the scope and expectations of a project, and shape the
approach that project managers use to plan, execute, and close projects successfully.

1.2 Types of Project

Projects can be categorized into different types based on various factors such as industry, scope, size,
complexity, and delivery method. Some of the common types of projects include:

1. Construction Projects: Projects related to building, construction, or infrastructure, such as roads,

bridges, or buildings.

2. IT Projects: Projects related to information technology, such as software development, network design,
or data management.

3. Manufacturing Projects: Projects related to production or assembly of goods, such as product

development or process improvement.

4. Research and Development Projects: Projects focused on exploring new ideas, developing prototypes,
or creating innovative solutions.
 5. Marketing Projects: Projects related to marketing, branding, or customer engagement, such as
product launches, advertising campaigns, or market research.

6. Operations Projects: Projects aimed at improving or streamlining operations, such as process

automation or supply chain optimization.

7. Service Projects: Projects focused on delivering a service, such as customer support, training, or
consulting.

8. Environmental Projects: Projects aimed at improving the environment, such as renewable energy
development or waste management.

9. Social and Community Projects: Projects aimed at improving social and community outcomes, such
as education, healthcare, or poverty reduction.

10. Emergency Projects: Projects aimed at responding to emergencies, such as disaster relief or crisis
management.

These are some of the common types of projects, and the classification can vary based on the industry and
context. Regardless of the type of project, the principles of project management remain the same, and the
successful delivery of a project requires careful planning, execution, and control.

1.3 Project, Seminar and Term Paper

Project, seminar, and term paper are all forms of academic assignments, but each has a distinct purpose and
structure.

1. Project: A project is a practical and hands-on assignment that involves applying knowledge and skills
to produce a tangible outcome, such as a product, service, or solution. Projects often involve
teamwork, research, and experimentation, and may require the use of specific tools or techniques.

2. Seminar: A seminar is a group-based assignment focused on discussion and debate of a specific

topic. Seminars may involve presentations, group activities, and open discussion, and are designed to
encourage students to share their knowledge, perspectives, and opinions on a topic.

3. Term Paper: A term paper is a written assignment that requires students to research and analyze a
specific topic in depth. Term papers are typically individual assignments and may involve a literature
review, hypothesis testing, or analysis of data. Term papers often make up a significant portion of a
student's grade and require extensive writing and research skills.

In summary, projects focus on practical applications and hands-on learning, seminars encourage group
discussion and debate, and term papers require individual research and written analysis.

1.4 Project Scope, Milestones and Outcomes

1.4.1 Project scope

Project scope refers to the boundaries and limitations of a project, including the specific goals,
objectives, and deliverables that the project is expected to achieve. The project scope defines what is
included and excluded from the project, and helps to establish the parameters for the project team,
stakeholders, and other participants.

1.4.2 Milestones

Milestones are significant points in the project timeline that mark the completion of important tasks
or the achievement of key goals. Milestones are used to track progress and measure success, and
help to keep the project on schedule. Examples of milestones might include the completion of a
design phase, the delivery of a prototype, or the launch of a product.

1.4.3 Outcomes

Outcomes refer to the results or benefits of a project that are expected to be achieved upon
completion. Outcomes are the end goals of the project, and are used to evaluate the success of the
project. Examples of outcomes might include increased productivity, reduced costs, improved
customer satisfaction, or increased market share.

In summary, the project scope defines the boundaries of the project, milestones help to track progress and
measure success, and outcomes are the end goals of the project used to evaluate its success. Effective project
management requires a clear understanding of the project scope, milestones, and outcomes, and careful
planning and execution to ensure that these objectives are achieved.

1.5 Project Management and Its Importance

1.5.1 Project Management

Project management is the process of planning, organizing, and controlling resources to achieve specific goals
and objectives. The goal of project management is to deliver a project within scope, on time, and within budget,
while meeting the quality and performance requirements.

Project management involves a range of activities, including project planning, resource allocation, risk
management, quality control, and communication management. Effective project management requires
strong leadership, clear objectives, and a structured approach to ensure that the project is delivered
successfully.

1.5.2 The importance of project management can be seen in its ability to:

1. Improve project performance: By using a structured approach to project management, organizations

can increase the likelihood of project success, reduce the risk of delays or failures, and improve project
performance.
2. Enhance collaboration: Project management fosters collaboration among team members and
stakeholders, encouraging communication and teamwork to achieve common goals.
3. Increase efficiency: Project management helps to streamline processes, reduce waste, and increase
efficiency, resulting in improved productivity and cost savings.
4. Facilitate decision-making: Project management provides a framework for making informed decisions,
enabling organizations to make informed choices based on data and analysis.
 5. Improve risk management: Project management helps organizations to identify, assess, and manage
risk, reducing the likelihood of project failure and increasing the chances of success.

In summary, project management is a critical function that helps organizations to achieve their goals and
objectives, improve performance, and enhance collaboration and decision-making. Effective project
management is essential for the success of any project, regardless of size or complexity.

1.6 Project Management Software

Project management software is a tool that helps organizations to plan, organize, and control resources to
achieve specific goals and objectives. These tools provide a centralized platform for project management,
enabling teams to collaborate, track progress, and manage tasks and resources more efficiently.

1.6.1 Examples of project management software include:

1. Asana: Asana is a popular project management tool that helps teams to manage tasks, collaborate,
and track progress. It is used by small and large organizations across a range of industries, and is known
for its ease of use and flexible features.
2. Trello: Trello is a simple and intuitive project management tool that uses a card-based system to
organize tasks and projects. It is popular among small teams and organizations, and is known for its
flexibility and ease of use.
3. Jira: Jira is a comprehensive project management tool that is used by software development teams to
manage projects, track progress, and manage tasks and resources. It is a powerful tool that is used by
organizations of all sizes, and is known for its customization options and integration with other tools and
systems.
4. Microsoft Project: Microsoft Project is a comprehensive project management tool that provides
advanced features for planning, scheduling, and controlling projects. It is used by organizations of all
sizes, and is integrated with other Microsoft products such as Office and Teams.

1.6.2 Uses of project management software include:

1. Task management: Project management software is used to manage tasks, track progress, and
allocate resources to ensure that projects are completed on time and within budget.
2. Collaboration: Project management software provides a centralized platform for collaboration, enabling
teams to work together, share information, and coordinate efforts more effectively.
3. Reporting and analytics: Project management software provides real-time data and insights into
project performance, enabling organizations to make informed decisions and track progress.
4. Risk management: Project management software provides tools for identifying, assessing, and
managing risk, reducing the likelihood of project failure and increasing the chances of success.

In summary, project management software is a valuable tool that helps organizations to plan, organize, and
control resources to achieve specific goals and objectives. There are a wide range of project management
software tools available, each with their own unique features and uses. Effective use of project management
software can help organizations to improve performance, enhance collaboration, and make better-informed
decisions.

1.7 Roles of Project Managers

Project managers play a critical role in the success of a project. Their responsibilities include:
 1. Planning: Project managers are responsible for defining the scope of the project, creating a project plan,
and determining the resources needed to complete the project.
2. Scheduling: Project managers are responsible for creating a schedule for the project, including
determining the sequence of tasks and estimating the duration of each task.
3. Resource allocation: Project managers are responsible for allocating personnel, equipment, and
materials to the project, ensuring that the right resources are available at the right time.
4. Budget management: Project managers are responsible for developing and managing the project
budget, monitoring expenses, and ensuring that the project is completed within budget.
5. Risk management: Project managers are responsible for identifying and managing risks, including
assessing the likelihood of potential risks and developing contingency plans to mitigate those risks.
6. Communication: Project managers are responsible for communicating with stakeholders, including
project team members, sponsors, and other stakeholders, ensuring that everyone is informed and on
the same page.

7. Quality control: Project managers are responsible for monitoring the quality of project
deliverables, ensuring that they meet quality standards and that the project is delivered on
time and within budget.

8. Team management: Project managers are responsible for leading and managing the project
team, including assigning tasks, providing guidance and support, and fostering a positive
team environment.

9. Monitoring and controlling: Project managers are responsible for monitoring the progress of
the project, controlling changes to the project plan, and making adjustments as needed to
ensure that the project stays on track.

In summary, the role of project managers is to plan, organize, and control resources to achieve
specific goals and objectives. Project managers are responsible for ensuring that the project is
completed on time, within budget, and to the required quality standards. Effective project managers
possess strong leadership, organizational, and communication skills, and are able to motivate and
manage teams to deliver successful projects.
UNIT 2: Understanding Project life cycle

2.0 Introduction

The Project Lifecycle is the sequence of phases through which a project progress. The number of phases and
sequence of the cycle may vary based on the company and the type of project undergone. As part of a project,
however, they should have a definite start and end, and they are constrained by time. The lifecycle provides the
basic foundation of the actions that has to be performed in the project, irrespective of the specific work
involved.

2.1 Stages of project life cycle

• Project Definition - This refers to defining the objectives and the factors to be considered to make the
project successful.
• Project Initiation - This refers to the resources as well as the planning before the project starts.
• Project Planning - Outlines the plan as to how the project should be executed. This is where project
management triangle is essential. It looks at the time, cost, and scope of the project.
• Project Execution - Undertaking work to deliver the outcome of the project.
• Project Monitoring & Control - Taking necessary measures, so that the operation of the project runs
smoothly.
• Project Closure - Acceptance of the deliverables and discontinuing resources that were required to run
the project.

2.2 Project Management triangle

The project management triangle is used by managers to analyze or understand the difficulties that may arise
due to implementing and executing a project. All projects irrespective of their size will have many constraints.

Although there are many such project constraints, these should not be barriers to successful project execution
and for effective decision-making.

There are three main interdependent constraints for every project; time, cost, and scope. This is also known as
Project Management Triangle.

Let's try to understand each of the elements of the project triangle and then how to face challenges related to
each.

1 - Time

A project's activities can either take shorter or longer amount of time to complete. Completion of tasks depends
on a number of factors such as the number of people working on the project, experience, skills, etc.

Time is a crucial factor which is uncontrollable. On the other hand, failure to meet the deadlines in a project can
create adverse effects. Most often, the main reason for organizations to fail in terms of time is due to lack of
resources.
2 - Cost

It's imperative for both the project manager and the organization to have an estimated cost when undertaking
a project. Budgets will ensure that project is developed or implemented below a certain cost.

Sometimes, project managers have to allocate additional resources in order to meet the deadlines with a
penalty of additional project costs.

3 - Scope

Scope looks at the outcome of the project undertaken. This consists of a list of deliverables, which need to be
addressed by the project team.

A successful project manager will know to manage both the scope of the project and any change in scope
which impacts time and cost.

2.3 Project proposal

A project proposal is a project management document that is used to define the objectives and requirements
of a project. It helps organizations and external project stakeholders agree on initial project planning
framework.

The main purpose of a project proposal is to get by in decision makers. That’s why a project proposal outlines
your project’s core value proposition. It sells value both internal and external project stakeholders. The intent of
the proposal is to grab stakeholder and project sponsor attention. Once you have people’s attention the next
step is getting them excited about project summary.

2.4 Project charter

Project Charter refers to a statement of objectives in a project. This statement also sets out detailed project
goals, roles and responsibilities, identifies the main stakeholders, and the level of authority of a project
manager.

It acts as a guideline for future projects as well as an important material in the organization's knowledge
management system.

The project charter is a short document that would consist of new offering request or a request for proposal.
This document is a part of the project management process, which is required by Initiative for Policy Dialogue
(IPD) and Customer Relationship Management (CRM).

2.4.1 The Role of Project Charter

Following are the roles of a Project Charter:

It documents the reasons for undertaking the project.

Outlines the objectives and the constraints faced by the project.

Provides solutions to the problem in hand.

Identifies the main stakeholders of the project.

2.4.2 Benefits of Project Charter

Following are the prominent benefits of Project Charter for a project:

• It improves and paves way for good customer relationships.

• Project Charter also works as a tool that improves project management processes.
• Regional and headquarter communications can also be improved to a greater extent.
• By having a project charter, project sponsorship can also be gained.
• Project Charter recognizes senior management roles.
• Allows progression, which is aimed at attaining industry best practices.

2.4.3 Elements in Project Charter

Since project charter is a project planning tool, which is aimed at resolving an issue or an opportunity, the
below elements are essential for a good charter project.

For an effective charter project, it needs to address these key elements:

• Identity of the project.

• Time: the start date and the deadline for the project.
• People involved in the project.
• Outlined objectives and set targets.
• The reason for a project charter to be carried out, often referred to as 'business case'.
• Detailed description of a problem or an opportunity.
• The return expected from the project.
• Results that could be expected in terms of performance.
• The expected date that the objectives is to be achieved.
• Clearly defined roles and responsibilities of the participants involved.
• Requirement of resources that will be needed for the objectives to be achieved.
• Barriers and the risks involved with the project.
• Informed and effective communication plan.

Out of all above elements, there are three most important and essential elements that need further
elaboration.

2.5 Project teams

Project team members are the individuals who actively work on one or more phases of the project. They may
be in-house staff or external consultants, working on the project on a full-time or part-time basis. Project team
member roles can vary according to each project.

Team member responsibilities

Project team member responsibilities often include:

• Contributing to overall project objectives

• Completing individual deliverables
• Providing expertise
• Working with users to establish and meet business needs
 • Documenting the process

2.5.1 Building a project team

Suppose that you as a manager have been asked to form a team for the life of a particular project. How should
you set about choosing your people and forming them into a well-functioning group?

Selecting Your Team

Take care to choose the right people. Pick them for their skills and abilities as they apply to your particular
project. You don't necessarily need the person most qualified in absolute terms, but you need the person most
qualified for your specific project. Concentrate on the skills you need for the job in hand. Don't be seduced by
reams of paper qualifications that you will never need.

You almost certainly need a mixture of team members each with a different set of skills and abilities, rather
than a series of clones all with identical skills. Ensure that taken as a group they together represent all the skills
you need in the proportions that you need them.

Don't overlook the need to choose people who can all get along with each other and work together as a team. A
group of prima donnas is the last thing you want.

Set the Tone and the Ground Rules

Do this at your very first team meeting. Make sure that you call this at the very start of your project and that
everyone in your team comes to the meeting. Don't be late yourself and don't allow lateness in others.

This is the meeting where you have to make it clear who is in charge and what you expect from your team. This
is where the team hierarchies and reporting structures are restated. This is the time to remove any ambiguities
or potential conflicts. Make sure everyone is clear about his role and responsibilities. Delegate tasks as
appropriate and make it clear who hold the delegated authority.

Setting Clear Goals

You must set clear achievable goals. You must set them for your team as a whole and you must set them for
the individuals within your team. They must be unambiguous and they must be mutually attainable. That is to
say, no one individual's goal should in any way conflict with that of another individual. In fact you want it to be in
everybody's interest that each individual achieves his own goal. Design the goals accordingly. You must try to
build a team that works together with common aims, all working towards the same final goal.

Achievable Early Goals

Make use of your goals to build team spirit and enthusiasm. Do this by setting small, easily-attainable goals
early on in your project while your team is still bedding-in and settling down. Make them worthwhile goals, but
goals that you are almost certain can be reached. In this way your team will notch up some early successes,
which will certainly boost morale and establish a sense of pride in the achievement. Later goals that you set
can (and should) be more taxing and testing, but the early successes will do wonders for the spirit of the team.
This spirit will endure long into the future as the going gets tougher.
Communication

It is almost impossible to exaggerate the importance of communication within any organisation, and in
particular within a project team. Make it your duty to ensure that everyone within your team knows what is
going on. Make sure that everyone knows of outside events that will affect the team. Make sure that everyone
knows their own goals and objectives and those of the team as a whole. Make sure they know the objectives of
those interfacing to them and of any potential conflicts. Make sure that a problem or a delay in one area is
immediately communicated to those whom it may affect.
UNIT 3: Project requirement analysis and documentation

3.0 Introduction

Project requirements are conditions or tasks that must be completed to ensure the success or completion of
the project. They provide a clear picture of the work that needs to be done. They're meant to align the project's
resources with the objectives of the organization. The benefits of effectively gathering project requirements
include cost reduction, higher project success rates, more effective change management, and improved
communication among stakeholders.

3.1 Types of Project Requirements

In general, requirements can be categorized in three ways: business requirements, solution requirements and
stakeholder requirements.

Business Requirements

Business requirements are the overall needs of the business for making the project happen. Requirements that
fall into this category are more foundational, long-term needs that align with the long-term goals of the
organization.

Solution Requirements

Solution requirements are more product-focused and drill down a little deeper. They can be functional or non-
functional, and they ensure that the end result of the product satisfies both what the product needs to do and
what the product should do.

Like our example above, solution requirements might include a functional requirement such as the
implementation of the proper tools that the sales team needs to get their job done with the new CRM. A non-
functional requirement would be if the CRM tool also included a content marketing calendar to assist the
marketing team as well, but it isn’t necessarily a need.

Stakeholder Requirements

Stakeholder requirements describe your key personnel that signs off on milestones, produces the work, finalizes
deliverables and more. They can be customers, team members, business partners or key leadership. It requires
a tenacious project manager to make sure that the requirements of all stakeholders involved are well-
balanced throughout the entirety of the project. It’s essential for good stakeholder management.

3.2 Requirement Gathering Techniques

A requirement document is used to explain what is needed from the product. Among the things it defines is
the product vision and how it must be achieved by the end of the project. It doesn’t go into details about how it
will be delivered, though. It’s more to put the product in context, as to why the product is needed or what
problem it’s solving. The details of how it will do this are not included.
3.2.1 Use Case Scenarios

A use case is a document that explains how users will perform tasks on your product. It is written from a user’s
point of view and done in steps that include: who’s using the product, what they want from the product, the
user’s goal, the steps they take to accomplish their task and how the product responds to their action.

3.2.2 Brainstorming

Conduct a brainstorming session with a group of participants who can say whatever they want about the
product as long as they feel it’s important. Have a facilitator lead the group, organizing and prioritizing their
responses. Start by explaining the objective of the brainstorming session, get the group to provide as many
ideas as possible, don’t criticize or debate and when done gather all the information.

3.2.3 Mind Mapping

Mind mapping is another way to gather ideas. It involves creating a mind map, which starts by placing the
central idea in the center of a page. Then use lines, arrows, speech bubbles and different colors to show the
connection between the central theme and the ideas that stem from it. It allows for an organic development of
ideas relating to your central idea. It shows how different facts are related.

3.3 Requirement Analysis technique

Requirement analysis techniques are mainly used to map the business workflow so that you can analyze,
understand and make required changes to that workflow or process.

3.3.1 Data Flow Model

Data flow diagrams show how data is processed by a system in terms of inputs and outputs. Components of
data flow diagram includes

• Process
• Flow
• Store
• Terminator

A logical data flow diagram shows system’s activities while a physical data flow diagram shows a system’s
infrastructure. A data flow diagram can be designed early in the requirement elicitation process of the analysis
phase within the SDLC (System Development Life Cycle) to define the project scope. For easy analyzing a data
flow diagram can be drilled down into its sub-processes known as “levelled DFM”.

3.3.2 Colored Petri Nets (CPN)

CPN or colored petri nets are graphically oriented language for specification, verification, design and simulation
of systems. Colored Petri Nets is a combination of graphics and text. Its main components are Places,
Transitions, and Arcs.

Petri nets objects have specific inscription like for

• Places: It has inscription like .Name, .Color Set, .Initial marking etc. While
 • Transition : lt has inscription like .Name (for identification) and .Guard (Boolean expression consist of
some of the variables)
• Arcs: It has inscription like .Arc. When the arc expression is assessed, it yields multi-set of token colors.

3.4 Components of a requirements document

3.4.1 Technical Architecture

Technical Architecture (TA) is a form of IT architecture that is used to design computer systems. It involves the
development of a technical blueprint with regard to the arrangement, interaction, and interdependence of all
elements so that system-relevant requirements are met.

Throughout the past decade, architecture has become a broadly used term in the context of information
technology. This doesn’t come as a surprise considering how most companies had to redesign their IT
landscape to adopt digital trends like cloud computing and software as service (SaaS). This digital transition
required not only skilled developing teams but first and foremost IT architects. In their roles as IT strategists and
planners, they map out a target architecture and make sure that all IT decisions align with business goals and
requirements.

3.4.2 Project development plan

The project development plan is the creation of the final project plan. It involves the integration of the every
single plan created at different stages or processes, and the integration into the final project document.

The project team should use Work Breakdown Structure (WBS) for the project plan development process. Work
breakdown structure is the breakdown of the project into smaller components. The example of the WBS is
below:

The task of the project plan is to guide project execution, controlling the project, defining the timings, content
and costs, and organising communication between the stakeholders.

The project plan development inputs are: project components, planning outputs, any other information
relevant to the project, and organisational policies.
The project plan outputs are the project plan document – the document approved by the project participants.
The project plan contains the project activities schedule. The activities schedule should be aligned with the
project communication plan. The project plan can be changed several times during the project, in accordance
with the project progress.

The project plan tools the project manager usually uses are specialised software, and the software bases of
standard project management techniques. The tools and techniques are project planning methodology,
stakeholder skills and knowledge, project management information system (PMIS) – that is gathering,
integrating and distributing of the project planning information; the earned value management (EVM)
technique that integrates the project’s scope, schedule, and resources, and controlling techniques for the
project.

3.4.3 Testing

Testing is the process of evaluating a system or its component(s) with the intent to find whether it satisfies the
specified requirements or not. In simple words, testing is executing a system in order to identify any gaps, errors,
or missing requirements in contrary to the actual requirements.

According to ANSI/IEEE 1059 standard, Testing can be defined as - A process of analyzing a software item to
detect the differences between existing and required conditions (that is defects/errors/bugs) and to evaluate
the features of the software item.
UNIT 4: Project planning

4.0 Introduction

Project planning is a procedural step in project management, where required documentation is created to
ensure successful project completion. Documentation includes all actions required to define, prepare, integrate
and coordinate additional plans. The project plan clearly defines how the project is executed, monitored,
controlled and closed.

4.1 Project planning activities

4.1.1 Creating a project plan

Identify and meet with stakeholders

A stakeholder is anyone who is affected by the results of your project plan. That includes your customers and
end-users. Ensure you identify all stakeholders and keep their interests in mind when creating your project plan.

4.1.2 Set and prioritize goals

Once you have a list of stakeholder needs, prioritize them and set specific project goals. These should
outline project objectives or the metrics and benefits you hope to achieve. Write your goals and the stakeholder
needs they address in your project plan so it's clearly communicated and easily shareable.

Tip: If you're having trouble prioritizing, start ranking goals based on urgency and importance, or check out
these helpful decision-making tips.

4.1.3 Define deliverables

Identify the deliverables and project planning steps required to meet the project's goals. What are the specific
outputs you're expected to produce?

Next, estimate the due dates for each deliverable in your project plan. (You can finalize these dates when you sit
down to define your project schedule in the next step.)

4.1.4 Create the project schedule

Look at each deliverable and define the series of tasks that must be completed to accomplish each one. For
each task, determine the amount of time it will take, the resources necessary, and who will be responsible for
execution.

4.1.5 Identify issues and complete a risk assessment

No project is risk-free. Crossing your fingers and hoping for the best isn’t doing you any favors. Are there any
issues you know of upfront that will affect the project planning process, like a key team member's upcoming
vacation? What unforeseen circumstances could create hiccups?
4.1.6 Present the project plan to stakeholders

It's important you understand how to present a project effectively. Explain how your plan addresses
stakeholders' expectations, and present your solutions to any conflicts. Make sure your presentation isn't one-
sided. Have an open discussion with stakeholders instead.

4.2 Resource planning

Resource planning is the process of determining how a business will allocate resources in a project, such as
assigning tasks to individuals based on their skills and availability.

Project managers use resource planning to make sure they are using resources and members of their team
effectively. They also use it to forecast future needs so that they can have the available staff, space, and
products on hand when they need it.

Resource planning in project management is a crucial and recurring step throughout a project’s planning and
execution stages. It is a proactive activity that looks ahead at what is planned for the project and ensures that
the right people, materials, tools, and finances are available when the project needs them so that the project
can progress as expected.

What is included in a resource management plan varies depending on the project and its scope. However, the
following information is often included in a resource management plan:

• Resources: A list of the available resources for a project forms the foundation for your plan. This list can
be compiled at the portfolio or business level because resources are frequently shared between
projects. Resource management charts are useful in visualizing resource availability and use.
• Cost: Project managers can track both the direct cost of resources to the company as well as the billed
rate that represents the cost to the client. For human resources, project managers can record the hourly
rate so that it can be multiplied based on the time spent.
• Availability: It’s important to understand the availability of each resource to avoid a delay or resource
conflict. For physical resources, consider resource constraints like the lead time for ordering.
• Responsibilities: After you’ve identified the necessary resources, assign responsibilities so that team
members understand what is expected of them.
• Dependencies: This is the relationship between resources. There will be times in which certain resources
won’t be available or won’t function until specific tasks have been completed. It’s important to plan for
these situations because dependencies can easily derail entire projects.

4.3 Financial planning

Financial Management means planning, organizing, directing, and controlling the financial activities such as
procurement and utilization of funds of the enterprise. It means applying general management principles to
the financial resources of the enterprise.

4.3.1 Functions of Financial Management

1. Estimation of capital requirements: A finance manager has to estimate the capital requirements of the
company. This will depend upon expected costs and profits and future programs and policies of a
concern. Estimations have to be made in an adequate manner which increases the earning capacity of
the enterprise.
 2. Determination of capital composition: Once the estimation has been made, the capital structure has to
be decided. This involves short- term and long- term debt equity analysis. This will depend upon the
proportion of equity capital a company is possessing and additional funds that have to be raised from
outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has many choices like-
• Issue of shares and debentures
• Loans to be taken from banks and financial institutions
• Public deposits to be drawn like in form of bonds.

Choice of factor will depend on the relative merits and demerits of each source and period of financing.

1. Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so
that there is safety on investment and regular returns are possible.
2. Disposal of surplus: The net profits decision has to be made by the finance manager. This can be done in
two ways:
• Dividend declaration - It includes identifying the rate of dividends and other benefits like a bonus.
• Retained profits - The volume has to be decided which will depend upon expansional, innovational,
diversification plans of the company.

4.4 Gantt Chart

Gantt chart is a type of a bar chart that is used for illustrating project schedules. Gantt charts can be used in
any projects that involve effort, resources, milestones and deliveries.

Gantt charts allow project managers to track the progress of the entire project. Through Gantt charts, the
project manager can keep a track of the individual tasks as well as of the overall project progression.

The Use

As we have already discussed, Gantt charts are used for project management purposes. In order to use Gantt
charts in a project, there are a few initial requirements fulfilled by the project.

First of all, the project should have a sufficiently detailed Work Breakdown Structure (WBS).

Secondly, the project should have identified its milestones and deliveries.

In some instances, project managers try to define the work break down structure while creating Gantt chart.
This is one of the frequently practiced errors in using Gantt charts. Gantt charts are not designed to assist WBS
process; rather Gantt charts are for task progress tracking.

Gantt charts can be successfully used in projects of any scale. When using Gantt charts for large projects, there
can be an increased complexity when tracking the tasks.

This problem of complexity can be successfully overcome by using computer software packages designed for
offering Gantt chart functionalities.

4.5 Pert Evaluation technique

PERT (Program Evaluation and Review Technique) is one of the successful and proven methods among the
many other techniques, such as, CPM, Function Point Counting, Top-Down Estimating, WAVE, etc.
PERT was initially created by the US Navy in the late 1950s. The pilot project was for developing Ballistic Missiles
and there have been thousands of contractors involved.

After PERT methodology was employed for this project, it actually ended two years ahead of its initial schedule.

4.5.1 The PERT Basics

At the core, PERT is all about management probabilities. Therefore, PERT involves in many simple statistical
methods as well.

Sometimes, people categorize and put PERT and CPM together. Although CPM (Critical Path Method) shares
some characteristics with PERT, PERT has a different focus.

Same as most of other estimation techniques, PERT also breaks down the tasks into detailed activities.

Then, a Gantt chart will be prepared illustrating the interdependencies among the activities. Then, a network of
activities and their interdependencies are drawn in an illustrative manner.

In this map, a node represents each event. The activities are represented as arrows and they are drawn from
one event to another, based on the sequence.

Next, the Earliest Time (TE) and the Latest Time (TL) are figured for each activity and identify the slack time for
each activity.

When it comes to deriving the estimates, the PERT model takes a statistical route to do that. We will cover more
on this in the next two sections.

Following is an example PERT chart:

4.5.2 The Three Chances

There are three estimation times involved in PERT; Optimistic Time Estimate (TOPT), Most Likely Time Estimate
(TLIKELY), and Pessimistic Time Estimate (TPESS).

In PERT, these three estimate times are derived for each activity. This way, a range of time is given for each
activity with the most probable value, TLIKELY.
Following are further details on each estimate:

1. TOPT

This is the fastest time an activity can be completed. For this, the assumption is made that all the necessary
resources are available and all predecessor activities are completed as planned.

2. TLIKELY

Most of the times, project managers are asked only to submit one estimate. In that case, this is the estimate
that goes to the upper management.

3. TPESS

This is the maximum time required to complete an activity. In this case, it is assumed that many things go
wrong related to the activity. A lot of rework and resource unavailability are assumed when this estimation is
derived.

4.5.3 The PERT Mathematics

BETA probability distribution is what works behind PERT. The expected completion time (E) is calculated as
below:

E = (TOPT + 4 x TLIEKLY + TPESS) / 6

At the same time, the possible variance (V) of the estimate is calculated as below:

V = (TPESS - TOPT)^2 / 6^2

Now, following is the process we follow with the two values:

For every activity in the critical path, E and V are calculated.

Then, the total of all Es are taken. This is the overall expected completion time for the project.

Now, the corresponding V is added to each activity of the critical path. This is the variance for the entire project.
This is done only for the activities in the critical path as only the critical path activities can accelerate or delay
the project duration.

Then, standard deviation of the project is calculated. This equals to the square root of the variance (V).

Now, the normal probability distribution is used for calculating the project completion time with the desired
probability.

4.6 Work breakdown structure (WBS)

Dividing complex projects to simpler and manageable tasks is the process identified as Work Breakdown
Structure (WBS).

Usually, the project managers use this method for simplifying the project execution. In WBS, much larger tasks
are broken down to manageable chunks of work. These chunks can be easily supervised and estimated.

WBS is not restricted to a specific field when it comes to application. This methodology can be used for any type
of project management.
Following are a few reasons for creating a WBS in a project:

• Accurate and readable project organization.

• Accurate assignment of responsibilities to the project team.
• Indicates the project milestones and control points.
• Helps to estimate the cost, time and risk.

Illustrate the project scope, so the stakeholders can have a better understanding of the same.

4.6.1 Construction of a WBS

Identifying the main deliverables of a project is the starting point for deriving a work breakdown structure.

This important step is usually done by the project managers and the subject matter experts (SMEs) involved in
the project. Once this step is completed, the subject matter experts start breaking down the high-level tasks
into smaller chunks of work.

In the process of breaking down the tasks, one can break them down into different levels of detail. One can
detail a high-level task into ten sub-tasks while another can detail the same high-level task into 20 sub-tasks.

Therefore, there is no hard and fast rule on how you should breakdown a task in WBS. Rather, the level of
breakdown is a matter of the project type and the management style followed for the project.

In general, there are a few "rules" used for determining the smallest task chunk. In "two weeks" rule, nothing is
broken down smaller than two weeks worth of work.

This means, the smallest task of the WBS is at least two-week long. 8/80 is another rule used when creating a
WBS. This rule implies that no task should be smaller than 8 hours of work and should not be larger than 80
hours of work.

One can use many forms to display their WBS. Some use tree structure to illustrate the WBS, while others use
lists and tables. Outlining is one of the easiest ways of representing a WBS.

Following example is an outlined WBS:

There are many design goals for WBS. Some important goals are as follows:

• Giving visibility to important work efforts.

• Giving visibility to risky work efforts.
 • Illustrate the correlation between the activities and deliverables.

Show clear ownership by task leaders.

4.6.2 WBS Diagram

In a WBS diagram, the project scope is graphically expressed. Usually the diagram starts with a graphic object
or a box at the top, which represents the entire project. Then, there are sub-components under the box.

These boxes represent the deliverables of the project. Under each deliverable, there are sub-elements listed.
These sub-elements are the activities that should be performed in order to achieve the deliverables.

Although most of the WBS diagrams are designed based on the deliveries, some WBS are created based on the
project phases. Usually, information technology projects are perfectly fit into WBS model.

Therefore, almost all information technology projects make use of WBS.

In addition to the general use of WBS, there is specific objective for deriving a WBS as well. WBS is the input for
Gantt charts, a tool that is used for project management purpose.

Gantt chart is used for tracking the progression of the tasks derived by WBS.

Following is a sample WBS diagram:

4.7 Project Scheduling

Scheduling in project management is the listing of activities, deliverables, and milestones within a project. A
schedule also usually includes a planned start and finish date, duration, and resources assigned to each
activity. Effective project scheduling is a critical component of successful time management, especially
for professional service businesses.

When people discuss the processes for building a schedule, they are usually referring to the first six processes
of time management:

• Plan schedule management

• Define project activities
• Sequence activities
 • Estimate resources
• Estimate durations
• Develop the project schedule

4.7.1 How to do scheduling in project management

There are three main types of project schedules:

1. Master project schedule: A master schedule tends to be a simplified list of tasks with a timeline or
project calendar.
2. Milestone schedule or summary schedule: This type of project schedule tracks major milestones and key
deliverables, but not every task is required to complete the project.
3. A detailed project schedule: This is the most thorough project schedule, as it identifies and tracks every
project activity. If you have a complex, large, or lengthy project, it’s important to have a detailed project
schedule to help track everything.

4.8 Project cost estimation

Cost estimation in project management is the process of forecasting the financial and other resources needed to complete a
project within a defined scope. Cost estimation accounts for each element required for the project—from materials to labor—
and calculates a total amount that determines a project’s budget. An initial cost estimate can determine whether an
organization greenlights a project, and if the project moves forward, the estimate can be a factor in defining the project’s
scope. If the cost estimation comes in too high, an organization may decide to pare down the project to fit what they can
afford (it is also required to begin securing funding for the project). Once the project is in motion, the cost estimate is used
to manage all of its affiliated costs in order to keep the project on budget.

4.9 Project Goals

4.9.1 SMART goals?

When it comes to goal-setting strategies, the SMART approach is one of the most widely used. It takes the core
requirements for effective goals and packages them into a clever, easy-to-remember acronym. Let’s explore
each component of SMART goals:

4.9.2 Specific

Before an employee can set out to attain a goal, they first need to understand exactly what it is. Try to avoid
vague objectives that are open to interpretation and ensure managers meet with direct reports to explain what
their goals are, why they’re important, and how they can be accomplished.

4.9.3 Measurable

Goals are ideally quantifiable. However, results aren’t cut and dry for every position so make subjective goals
specific by applying metrics or Key Performance Indicators (KPIs) that will be used to define success.

4.9.4 Achievable

Goals should be right the balance of challenging and practical. Ambitious targets encourage motivation and
productivity. But excessive expectations cause stress, burn out, and poor morale.
4.9.5 Relevant

Employees should be asked to do work that benefits their team and the organization. They should also have
goals that are within the scope of their job responsibilities and are achievable with their skills and knowledge.

4.9.6 Timely

Goals should always have a deadline so employees work toward their targets at a steady pace. It should be
tight but not unreasonable and align with the deadlines for broader objectives.

4.9.7 CLEAR goals

Besides also using the acronym format, CLEAR goals have a lot in common with SMART goals. They include
similar themes as well as other components that are worth considering when establishing employee goals.
Let’s breakdown the CLEAR goals concept:

4.9.8 Collaborative

Employees should work together by each using their unique skills and expertise to help their team meet its
objectives. Each person’s solo achievements should build on each other and result in bigger accomplishments.

4.9.9 Limited

Like the “achievable” and “timely” components in SMART goals, CLEAR goals are limited in terms of duration and
difficulty. They have a start and endpoint and are realistically achievable within that time frame.

4.9.10 Emotional

Employees should get excited by the prospect of attaining their goals because they’ll do work they enjoy and
are good at. And when a goal is met, their manager should applaud them for a job well done so they feel good
about their achievement.

4.9.11 Appreciable

Goals should be broken into a series of smaller objectives that add up to a big win. Appreciable goals prevent
an employee from feeling overwhelmed by a large, long-term target since there is a step-by-step plan for
accomplishing it.

4.9.12 Refinable

Managers should always be willing to adjust objectives and deadlines as priorities change and unforeseen
challenges arise. This is an effective way to ensure goals never cross the line from ambitious to out-of-reach.

4.10 Project Cost estimation

Cost estimation in project management is the process of forecasting the financial and other resources needed
to complete a project within a defined scope. Cost estimation accounts for each element required for the
project from materials to labor and calculates a total amount that determines a project’s budget. An initial cost
estimate can determine whether an organization greenlights a project, and if the project moves forward, the
estimate can be a factor in defining the project’s scope. If the cost estimation comes in too high, an
organization may decide to pare down the project to fit what they can afford (it is also required to begin
securing funding for the project). Once the project is in motion, the cost estimate is used to manage all of its
affiliated costs in order to keep the project on budget.

4.10.1 Elements of cost estimation in project management

There are two key types of costs addressed by the cost estimation process:

• Direct costs: Costs associated with a single area, such as a department or the project itself. Examples of
direct costs include fixed labor, materials, and equipment.
• Indirect costs: Costs incurred by the organization at large, such as utilities and quality control.
• Within these two categories, here are some typical elements that a cost estimation will take into
account:
• Labor: The cost of team members working on the project, both in terms of wages and time
• Materials and equipment: The cost of resources required for the project, from physical tools to software
to legal permits
• Facilities: The cost of using any working spaces not owned by the organization.
• Vendors: The cost of hiring third-party vendors or contractors.
• Risk: The cost of any contingency plans implemented to reduce risk.
UNIT 5: Knowing how to Design Work breakdown structure

5.0 Introduction

A work breakdown structure (WBS) is a visual, hierarchical and deliverable-oriented deconstruction of a

project. It is a helpful diagram for project managers because it allows them to break down their project scope
and visualize all the tasks required to complete their projects.

All the steps of project work are outlined in the work breakdown structure chart, which makes it an essential
project planning tool. The final project deliverable, as well as the tasks and work packages associated with it
rest on top of the WBS diagram, and the WBS levels below subdivide the project scope to indicate the tasks,
deliverables and work packages that are needed to complete the project from start to finish.

5.1 WBS Elements

A typical project work breakdown structure is made up of several key components. We’ll use our WBS example
above to identify each of the main WBS elements.

• WBS Dictionary: A WBS dictionary is a document that defines the various WBS elements. It’s an
important component of a WBS because it allows the project participants and stakeholders to
understand the work breakdown structure terminology with more clarity.
• WBS Levels: The WBS levels are what determines the hierarchy of a WBS element. Most work breakdown
structures have 3 levels that represent the project’s main deliverable, control accounts, project
deliverables and work packages.
• Control Accounts: Control accounts are used to group work packages and measure their status. They’re
used to control areas of your project scope. In our example the execution project phase could be a
control account because it has several deliverables and work packages associated to it.
• Project Deliverables: Project deliverables are the desired outcome of project tasks and work packages.
In our WBS example, we can observe some examples of project deliverables such as the project budget
or interior work. Both of them are the result of smaller tasks and work packages.
• Work Packages: As defined by the project management institute (PMI) in its project management body
of knowledge book (PMBOK) a work package is the “lowest level of the WBS”. That’s because a work
package is a group of related tasks that are small enough to be assigned to a team member or
department. As a project manager you can estimate costs and duration of these work packages, which
makes them an essential WBS element.
• Tasks: Your tasks make up your work packages and therefore, your project scope. A WBS will help you
define each task requirements, status, description, task owner, dependencies, and duration.

5.2 How to Create a Work Breakdown Structure In Six Steps

To create a WBS for your project, you’ll need information from other project management documents. Here are
six simple steps to create a work breakdown structure.

1. Define the Project Scope, Goals and Objectives

Your project goals and objectives set the rules for defining your project scope. Your project scope, team
members, goals and objectives should be documented on your project charter.
2. Identify Project Phases & Control Accounts

The next level down is the project phases: break the larger project scope statement into a series of phases that
will take it from conception to completion. You can also create control accounts, which are task categories for
different work areas you want to keep track of.

3. List Your Project Deliverables

What are your project deliverables? List them all and note the work needed for those project deliverables to be
deemed successfully delivered (sub-deliverables, work packages, resources, participants, etc.)

4. Set WBS Levels

The WBS levels are what make a work breakdown structure a “hierarchical deconstruction of your project
scope”, as defined by the project management institute in its project management body of knowledge book
(PMBOK). You’ll need to start at the final project deliverable and think about all the deliverables and work
packages needed to get there from the start.

5. Create Work Packages

Take your deliverables from above and break them down into every single task and subtask that is necessary to
deliver them. Group those into work packages.

6. Choose Task Owners

With the tasks now laid out, assign them to your project team. Give each team member the work management
tools, resources and authority they need to get the job done.
UNIT 6: Knowing how to Design Pert Chart

6.0 Introduction

A PERT chart is a network diagram that allows project managers to create project schedules. They’re used in the
Program Evaluation Review Technique (PERT) to represent a project timeline, estimate the duration of tasks,
identify task dependencies and find the critical path of a project.

PERT charts are used by project managers to create realistic schedules by coordinating tasks and estimating
their duration by assigning three time estimates for each; optimistic, most likely and pessimistic. This makes
PERT charts useful when planning projects where the duration of activities is uncertain.

6.1 How Does a PERT Chart Work?

A PERT chart is made up of nodes and directional arrows. Nodes are numbered boxes or circles. They represent
an event or milestone in the project. The arrows are the tasks or activities that must be done before moving on
to the next event or milestone.

• Nodes: These are the symbols used to visualize milestones and project tasks. They can be represented
by circles or triangles.
• Arrows: Visual representation of the sequence of a task, diverging arrows indicate tasks that can be
completed at the same time. They can be solid or dotted, depending on the nature of the sequence.
• Slack: The amount of time a task can be delayed without causing an overall delay to the project or other
tasks, also known as float.
• Critical Path: The critical path is the longest task sequence of a project. PERT charts are used to
determine the critical path of a project to estimate its duration.
• Critical Path Activity: An activity with no slack.
• Lead Time: How much time you should complete a task or activity without impacting the following ones.
• Lag Time: The earliest time in which a task can follow another.
• Predecessor: An activity that precedes another, and must finish before its successor can start.

Time estimate table

A traditional PERT chart relies on the weighted average of three numbers that are based on the most
pessimistic (P), the most optimistic (O) and the most likey (M) estimates for the project’s length.

• Optimistic Time: The least amount of time to accomplish a task or activity.

• Pessimistic Time: The maximum amount of time to accomplish a task or activity. This is the worst-case
scenario, anything that can go wrong does.
• Most Likely Time: The best estimate of how long it’ll take to accomplish the task or activity, assuming
there are no problems.
• Expected Time: The best estimate of how long it’ll take to accomplish the task or activity, assuming
there will be problems. This would be the more realistic duration.
6.2 How to Make a PERT Chart in 4 Steps

Creating a PERT chart shouldn’t be an overwhelming process, even if you decide to draw your PERT diagram and
do the calculations yourself. Here are some simple steps to create a PERT chart:

1. Break Down Your Project Scope

Begin by identifying the project milestones and then identify the individual tasks required to achieve them.
Then, figure out the sequence of your project tasks and their dependencies.

You should have a list of milestones, tasks and their dependencies. You’ll need these elements to create your
PERT chart, either manually or using project management software.

2. Create Your PERT Chart

Now that you have the information that you need, you can now make the PERT diagram—we’ll show you a PERT
chart example in the section below!

During this phase, you’ll need to sequence your tasks using the PERT diagram and estimate the time required to
complete each task.

3. Estimate Your Project Duration

Now that you have drafted a PERT diagram and added task details, it’s time to add the estimated durations of
all tasks to create a project schedule. If you’re drawing your PERT diagram, you’ll use the PERT chart formula to
do so.

If you use ProjectManager’s Gantt chart, you’ll automatically create an interactive project schedule that lets you
identify task dependencies, set due dates, estimate your project duration, find the critical path and much more.

4. Find the Critical Path & Slack

Once you have a PERT chart that has your project tasks, their durations and due dates, you can calculate the
critical path and identify any possible slack. At last, you have your PERT chart! Remember, this project
management chart is a living document that must be returned to and revised as the project progresses.

6.3 Network Diagram

A project network diagram is a visual representation of the workflow of a project. A network diagram is a project
management chart that is populated with boxes noting tasks and responsibilities, and then arrows that map
the schedule and the sequence that the work must be completed. Therefore, the project network diagram is a
way to visually follow the progress of each phase of the project life cycle to its completion.

6.3.1 Terminologies used in network diagram

Earliest Start time (ES):

It is the earliest possible time an activity or operation can be started. It is equal to the earliest occurrence time
of the tail event of that activity. It is represented either EST or simply ESi
Earliest Finish Time (EF):

It is the earliest possible time for completion of an activity without delaying the project completion time.

EF= ES + duration EFj=ESi+tij

Latest Finish Time (LF):

It is the latest time the activity must be completed without delaying project duration.

It is equal to the latest occurrence time of the head event.

Latest Start time (LS):

It is the latest possible time; an activity can be started without delaying the project.

LS= LF – duration LSi=LFj – tij

6.4 How to Make a Project Network Diagram in 3 Steps

First you need to understand the chronological order in which activities need to be executed and define the
project network diagram start and end point. When you’re plotting your diagram, use arrows that go from left to
right. That’s how people read in the West, and the diagram should intuitively follow that pattern.

1. Create a Predecessor Table

A predecessor table is a simple table that lists the activities in one column and notes their preceding tasks in
another. Here’s the predecessor table for our PERT chart network diagram example. Remember that this is a
predecessor table for an arrow diagramming method, where the arrows represent activities, and nodes
represent milestones.

2. Identify the Activities for Your Project Network Diagram

Before you even put pencil to paper, you need to organize your tasks. You don’t want to start making your
project network diagrams and realize that you’ve left out some important activities. There’s also task
dependencies, where tasks can’t start or end until another activity starts or ends. Identify these with a work
breakdown structure and break the project into its phases. Then you’re ready to start designing your project
network diagram and find out the critical path.

3. Make a Rough Draft of Your Diagram

On a more basic level, start your project network diagram by penciling it out first. You can then erase and move
items around until you’ve designed the most effective schedule network diagram.

Once you’ve made the final design, think about type. Different fonts can emphasize parts of the diagram and
make your project network diagrams easier to read. A legend or key in the corner will also help the reader
understand.
UNIT 7: Understanding Project Execution and Quality Management

7.1 Project Execution

Project Execution is the phase in the project life cycle when the work is performed, and everything in the project
plan is put into action.

Project Execution is the phase in the project life cycle when the work is performed, and everything in the project
plan is put into action.

Project scheduling and planning are simply the beginning. Most of the time and work of a project are during its
execution. Therefore, execution in project management is critically important.

7.2 Project Execution Steps

The steps during project execution will change depending on the specific requirements of the project. Those
particular steps are typically laid out in the project execution plan. However, there are general activities that
should apply to all projects.

Project Execution Phase Activities include:

• Begin work
• Manage workflow for all project tasks
• Issue management
• Risk management
• Manage change orders
• Manage project communications with all stakeholders
• Verify when milestones are reached
• Conduct gateway reviews as required
• Report on project status regularly to stakeholders

7.3 Project management tools

Project management tools are specially designed to assist an individual or team in organizing and managing
their projects and tasks effectively. The term PM tools usually refers to project management software and
project management tools you can either purchase or even use for free online.

7.4 What are the key features of project management tools?

The key features of web-based project management tools, apart from basic task management are:

01. Project estimation

To ensure your project succeeds, it's important to not only track the real-time progress but also to estimate the
project constraints based on your current performance. This could be in the form of budget forecasts, EVM or
baselines.
02. Budgeting

Managing your costs to stay within the planned budget. Track expenses, track actual cost to invoice clients and
pay employees, compare planned and actual cost, forecast budget, and analyze your budget health.

03. Resource allocation

Making sure the right people work on the right tasks. Avoid overworking or under working your employees by
using the resource utilization chart. The top project management tools also help in assigning work based on the
employee workload and availability.

04. Collaboration

Keeping all the project stakeholders on the same page. Effortless collaboration is an essential aspect of an
online project management tool. Virtual collaboration tools like chat, web meetings, and forums are some great
features to have.

05. Quality management

Always put out your best work by managing the quality of your project constantly. Issue tracking and resolution
capabilities greatly help with this. Automation to escalate and deal with bugs is an added bonus.

06. Project administration

Onboarding your workforce, clients and organizational structure to a tool is important. From industry-specific
templates to various third-party integrations, there are several ways project management tools can help you
with project administration.

07. Risk management

People also use online project management software to deal with uncertainties in the estimates of the duration
of each task; arrange tasks to meet various deadlines; and juggle multiple projects simultaneously, as part of
an overall objective.

7.5 The top 5 project management tools for project teams

01. Gantt Charts

Gantt chart is one of the top project management tools. A Gantt chart is a visualization of your project timeline
and the dependencies between your various work items.

Gantt charts are helpful in keeping track of the project schedule, checking for any deviations from the project
plan and identifying delays. Businesses can stay on track of their planned schedule and budget with the help of
Gantt charts. And if things don't go as planned, Gantt charts help in identifying the critical tasks that will ensure
your project gets completed on time.

02. Work Breakdown Structure

The Work Breakdown Structure is the first and most important tool in project planning. It's a hierarchical
breakdown of your project goal into actionable work items.
WBS follows a hierarchy where your end goal is split into stages that can be further divided into tasks or sub-
tasks. This helps in planning every single aspect of your project without leaving anything to chance. The
breakdown gives clarity on the time and resources that would be needed and hence helps in setting the
planned constraints for a project.

03. Project Baseline

A project baseline is a graphical way of representing your project values by comparing the baseline which is
the standard you set for your project against your actual performance.

04. Team Building Activities

Team building activities are a way to improve morale and boost the productivity of your teams by conducting
activities or healthy competitions. From group surfing lessons to team pot luck, there's a wide range of fun
activities you can use as part of corporate team building.

05. Communications management plan

A project communication plan is a tool that ensures there's a regular, relevant flow of information between the
project members, clients, and other stakeholders. The plan includes details regarding who communicates what,
to whom and how often.

7.6 Project Inputs and outputs

Inputs

Inputs are very often confused to be synonymous with activities. However, these terms are not
interchangeable.

Inputs, in simple terms, are those things that we use in the project to implement it.

For example, in any project, inputs would include things like time of internal and/or external employees, finances
in the form of money, hardware and/or software, office space, and so on.

Inputs ensure that it is possible to deliver the intended results of a project.

Outputs

These are the first level of results associated with a project. Often confused with “activities”, outputs are the
direct immediate term results associated with a project.

In other words, they are the delivered scope. The tangible and intangible products that result from project
activities. Outputs may include a new product or service, a new ERP system replacing the old one, or employees
being trained as part of a digital upskilling initiative.

Success on this first level of results is what I call “Project Delivery Success”. It is about defining the criteria by
which the process of delivering the project is successful.

Essentially this addresses the classic triangle "scope, time, budget".

It is limited to the duration of the project and success can be measured as soon as the project is officially
completed (with intermediary measures being taken of course as part of project control processes). 
It is
always a combination of measurements on inputs and outputs.

7.7 Project testing

The testing phase is very important for quality assurance and quality control. It encompasses the project tasks
required to check that the products you have built do what you said they would. Shoddy testing results in
shoddy products, so it needs to be detailed and thorough if you want to get a quality result. Testing is not
something you want to cut.

1. Cover All Your Requirements

It sounds obvious, but make sure that your test plans include all the products and deliverables from your
project. If you aren’t going to put some part of the project through quality testing then make sure this is clearly
specified and you document the reasons (and that everyone agrees).

Deciding to omit various parts of the project from testing should not be taken lightly. Define which parts of the
project can be accomplished with automated testing tools and what test suite you’ll be using. Missing
requirements out of quality testing means you won’t end up with a robust product at the end. The
overall quality will suffer and there might be some aspects of your system that don’t work at all.

2. Prepare Your Documents Early

Don’t leave it until the testing phase of your project to prepare the test scripts or use cases. Pull them together
as soon as you can, ideally as you are documenting the requirements or while the system is being designed.

You can upload the test plans and other files to your online document storage files. Project team members can
access them while they are developing the product to help them think through how it is going to be used and
therefore how it should be developed. Also, it saves you time and lets you hit the ground running when testing is
due to start.

3. Involve Your Testers Early

Use your project resource plans to identify who will be doing the testing on the project. Then get them involved
in the project as early as you can.

The testers can help you write the test scripts and other documentation such as a test plan. More importantly,
they can also help shape how the development is done and they represent the users on the project team if you
don’t have a user rep permanently seconded to the project. The more they know about the project and what
problems the system should be resolving for users, the better they will understand the testing requirements.

4. Prepare for Bugs

Go into testing aiming for a quality result. That means testing the system to destruction! Prepare your users for
the likelihood that they will find errors and that this is a good thing. (Remember how long Google was in “beta”
with Gmail?)
Finding errors can be disheartening. However, it’s not realistic to think that there won’t be any. That’s why you
test – so they can be uncovered and resolved before the system goes live. Managing the attitude of the team
going into testing means morale won’t dip when they start logging pages of errors.

5. Break it Down

Break down your products to the smallest unit you can. That gives you very granular testing. It’s a thorough and
robust way to quality-check every single part of your project.

It’s not always possible to notice errors if you are testing at too high a level. By breaking it down you’ll cover
everything in a logical and structured way, ensuring the best quality.

6. Analyze the Test Results

The results of a quality test are ‘pass’ or ‘fail’. When a requirement fails, be prepared to work through the reasons
for that with the rest of the team or the developer in question. A deep analysis will help you get to the root cause
of the failure. That will enable the team to fix the issues more quickly and in turn save you time with retesting.

Many heads are better than one. The user’s perspective on how to resolve the problem and get a quality result
could be quite different from that of the development team. Draw on all your experiences and collaborate to
pin down exactly why something failed testing.

7. Group Your Quality Tests

Look critically at your test scripts or use cases and see how you could group them together. For example,
everything related to the user experience could be one group. Anything to do with taking payment goes in
another. Requirements related to logging in and processing transactions could be a third.

You’ve broken down your test requirements into really small blocks to test at a granular level. Now you’re
grouping them together to make it easier to manage both on your project plan and when it comes to
allocating tasks to your team.

Grouping your tests together also make it easy to find out what needs to be retested if you apply bug fixes.
Normally you would test everything that relies on new functionality again, just to ensure it hasn’t broken through
the application of a fix or additional feature. This is called regression testing. Using groups lets you quickly
identify the tests that need to be performed again.

8. Test Performance

Up until this point you’ve been testing functionality: what the system does. Don’t forget to also test how it
behaves. Performance testing uncovers issues with how systems work such as:

• Slow response times; how long it takes to refresh the screen or complete a transaction
• Security problems and vulnerabilities
• How the system responds to multiple users accessing records at the same time
• Whether you can audit the system.
9. Share the Results

Whether your quality tests result in a pass or fail result, you need to share the results with the people who
matter. Use online project management workspaces to manage the flow of information between the test team
and the developers. Online discussions and instant messaging make it easy for the relevant teams to talk to
each other and share the outcomes of the testing.

7.8 Project Quality management

Project quality management is the process of defining quality standards for the deliverables of a project, as
well as the quality assurance measures to guarantee those standards are met. However, quality can be an
elusive word.

In project management, quality is simply what the customer or stakeholder needs from the project
deliverables. Project quality management can be simply defined as the combination of quality planning, quality
assurance and quality control activities. Project managers further define these for their project through a
quality management plan.

7.8.1 Benefits of a Project Quality Management Plan

There are several benefits for abiding by or implementing a proper project quality management plan. We’ve
outlined a few of them below.

Increased productivity

It’s common that strong project quality management leads to an increase in worker productivity. With safe,
organized, and efficient systems in place, people can focus more easily on their tasks and responsibilities,
completing their work in a timely manner.

Customer Satisfaction

Project quality management directly impacts customer satisfaction by catching or correcting production
mistakes. Customers care about receiving quality products that are made well, and standard quality
management will ensure that that’s exactly what they get!

Better Teamwork

With a good project quality management program in place, employees can enjoy better teamwork and clearer
communication as they get work done. Staff will have no doubts about what they should be doing — or what
their co-workers should be doing to ensure the success of a project.

Quality standard

Relating to customer satisfaction, high-quality products are usually the result of project quality management,
which ensures that all standards are met during the production process. This helps to further solidify the
reputation of any business, small or large.
7.9 Quality assurance and Quality control

7.9.1 Quality assurance

It refers to the process or actions taken to ensure a product meets all of its requirements. Quality assurance is
often used to track compliance and maintain consistent product management output over time. This is
accomplished by ensuring that each step of the production process is thoroughly inspected and refined.

The main benefits of QA include gaining a customer's satisfaction and confidence. This leads to higher sales
and better customer loyalty over time.

Quality assurance processes have become so critical that many companies have created their own dedicated
department. You may also hear of a quality assurance system referred to as a quality management system.

7.9.2 What are the three types of quality assurance methods?

There are three types of quality assurance methods that project teams commonly use. These methods can
vary depending on the requirements of the company; however, you can count on using at least one of the
following during the process:

1. Statistical process control

2. Failure testing
3. Total quality management

Statistical Process Control

Statistical process control (SPC) is most often used for developing products with technology and/or chemistry
involved. This can include everything from consumables to cleaning supplies to software. The SPC method
monitors ongoing progress through charts and strives for continuous improvement.

The steps involved in this quality assurance method include discovery, investigation, prioritization, further
analysis, and charting. This can be done internally using project data, team input, and studies conducted by QA
and operations teams. Decisions are based on facts and figures and will likely follow the scientific method
approach.

Failure Testing

Failure testing is commonly used to test physical or virtual products.

For physical products, that means whether the product will break down under pressure or in various usability
scenarios. For example, crash testing a vehicle’s safety airbags would be considered failure testing.

For virtual products, failure testing focuses on a program’s resiliency against a number of possible high-stress
scenarios. Issues such as cybersecurity and transaction capacity are all evaluated.

Overall, failure testing aims to assess a prototype or finished product and decide if it’s ready to go to market.
Total Quality Management

The total quality management (TQM) method aims to continuously improve products by using quantitative
methods. Practically speaking, it helps build a process that is consistent and predictable. It does so using a
variety of modules that help manage the various phases of a project.

7.9.3 Quality Control

Quality control is a process that involves inspecting, testing, and reporting outputs to ensure that they meet the
requirements of the project. In order to achieve the highest possible level of conformance, decisions need to be
made in all phases of quality control.

Quality assurance (QA) and quality control (QC) are part of a quality system, along with other elements such as
goals and procedures. Quality assurance typically covers all elements of a quality system, while quality control
is a smaller subset. In other words, while QA sees the big picture (process), QC focuses on the details (finished
products).

7.10 Project Report

A project status report is a document that describes the progress of a project within a specific time period and
compares it against the project plan. Project managers use status reports to keep stakeholders informed of
progress and monitor costs, risks, time and work. Project status reports allow project managers and
stakeholders to visualize project data through charts and graphs.

Project status reports are taken repeatedly, throughout every phase of the project’s execution, as a means to
maintain your schedule and keep everyone on the same page. The status report for a project will generally
include the following:

• The work that’s been completed

• The plan for what will follow
• The summary of the project budget and schedule
• A list of action items
• Any issues and risks, and what’s being done about them
UNIT 8: Understanding Project risk management

8.1 Project risk

Risk is any unexpected event that can affect your project for better or for worse. Risk can affect anything:
people, processes, technology, and resources. An important distinction to remember is that risks are not the
same as issues. Issues are things you know you’ll have to deal with, and may even have an idea of when they’ll
occur, like a team member’s scheduled vacation, or a big spike in product demand around the holidays. Risks
are events that might happen, and you may not be able to tell when such as flu season hitting your team all at
once, or a key product component being on backorder.

8.2 Project risk management

Project risk management is the process of identifying, analyzing and responding to any risk that arises over the
life cycle of a project to help the project remain on track and meet its goal. Risk management isn’t reactive only;
it should be part of the planning process to figure out the risk that might happen in the project and how to
control that risk if it in fact occurs.

8.3 Categories of risks

Business risks

Business risks are uncertain factors, internal or external, that threaten the financial health of an organization.
Examples of external business risks would be natural disasters or cyberattacks. Internal business risks are
threats that come from within the company, such as falling out of compliance, having too much debt, or labor
disputes.

Technical risks

Technical risks are those events or issues associated with the scope definition, research and development
(R&D), design, construction, and operation that could affect the actual level of performance that is specified in
the project mission need and performance requirements documents.

Cost Risk

Cost risk is an escalation of project costs. It is the risk that the project will cost more than the budget allocated
for it. Perhaps the most common project risk, cost risk is due to poor budget planning, inaccurate cost
estimating, and scope creep. The risk is higher when clients want too much even though the project has few
resources only. Cost risk can lead to other project risks such as schedule risk and performance risk.

Schedule Risk

Schedule risk is the risk that activities will take longer than expected, and is typically the result of poor planning.
It’s closely related to cost risk, because slippages in schedule typically increase costs and also delay the
outcome of the project, including its benefits. Delays result in missed timelines and a possible loss of
competitive advantage. Schedule risk leads to cost risk because longer projects cost more. It can also lead to
performance risk, missing the timeline to perform its intended mission.
8.4 Risk management process

1. Identify the risks: ID potential risks to your project or outcomes.

2. Analyze: Analyze your risks and their likely impact on the project.
3. Prioritize risks: Rank the risks according to the likelihood they will happen and how much damage they
can cause.
4. Mitigate the risk: Take the most challenging risks and work to get in front of them before they start
causing trouble.
5. Monitor: Keep an eye on the risks you planned for and make sure you maintain awareness of new risks
that may be coming in your direction.

8.5 Risk Mitigation, Monitoring, and Management (RMMM) plan

A risk management technique is usually seen in the software Project plan. This can be divided into Risk
Mitigation, Monitoring, and Management Plan (RMMM). In this plan, all works are done as part of risk analysis. As
part of the overall project plan project manager generally uses this RMMM plan.

In some software teams, risk is documented with the help of a Risk Information Sheet (RIS). This RIS is controlled
by using a database system for easier management of information i.e creation, priority ordering, searching,
and other analysis. After documentation of RMMM and start of a project, risk mitigation and monitoring steps
will start.

8.5.1 Risk Mitigation

It is an activity used to avoid problems (Risk Avoidance).

Steps for mitigating the risks as follows:

1. Finding out the risk.

2. Removing causes that are the reason for risk creation.
3. Controlling the corresponding documents from time to time.
4. Conducting timely reviews to speed up the work.

8.5.2 Risk Monitoring

It is an activity used for project tracking.

It has the following primary objectives as follows.

1. To check if predicted risks occur or not.

2. To ensure proper application of risk aversion steps defined for risk.
3. To collect data for future risk analysis.
4. To allocate what problems are caused by which risks throughout the project.

8.5.3 Risk Management and planning

It assumes that the mitigation activity failed and the risk is a reality. This task is done by Project manager when
risk becomes reality and causes severe problems. If the project manager effectively uses project mitigation to
remove risks successfully then it is easier to manage the risks. This shows that the response that will be taken for
each risk by a manager. The main objective of the risk management plan is the risk register. This risk register
describes and focuses on the predicted threats to a software project.
Example:

Let us understand RMMM with the help of an example of high staff turnover.

Risk Mitigation:

To mitigate this risk, project management must develop a strategy for reducing turnover. The possible steps to
be taken are:

• Meet the current staff to determine causes for turnover (e.g., poor working conditions, low pay,
competitive job market).
• Mitigate those causes that are under our control before the project starts.
• Once the project commences, assume turnover will occur and develop techniques to ensure continuity
when people leave.
• Organize project teams so that information about each development activity is widely dispersed.
• Define documentation standards and establish mechanisms to ensure that documents are developed
in a timely manner.
• Assign a backup staff member for every critical technologist.

Risk Monitoring:

As the project proceeds, risk monitoring activities commence. The project manager monitors factors that may
provide an indication of whether the risk is becoming more or less likely. In the case of high staff turnover, the
following factors can be monitored:

• General attitude of team members based on project pressures.

• Interpersonal relationships among team members.
• Potential problems with compensation and benefits.
• The availability of jobs within the company and outside it.

Risk Management:

Risk management and contingency planning assumes that mitigation efforts have failed and that the risk has
become a reality. Continuing the example, the project is well underway, and a number of people announce that
they will be leaving. If the mitigation strategy has been followed, backup is available, information is
documented, and knowledge has been dispersed across the team. In addition, the project manager may
temporarily refocus resources (and readjust the project schedule) to those functions that are fully staffed,
enabling newcomers who must be added to the team to “get up to the speed“.

8.6 Risk exposure

Risk exposure in any business or an investment is the measurement of potential future loss due to a specific
event or business activity and is calculated as the probability of the event multiplied by the expected loss due
to the risk impact.

How to Calculate Risk Exposure?

Although specific risk involved in business cannot be predicted and controlled, the risk which is predictable and
can be managed are calculated with the following formula:
Risk Exposure formula = Probability of Event * Loss Due to Risk (Impact)
UNIT 9: Understanding Project cost management

9.1 Cost management

Cost management is the process of planning and managing the budget of a business or project. In the case of
a project, it helps the project manager estimate what the project will cost and set controls to reduce the
chances of the project going over budget.

Cost management is one of the most important responsibilities of a project manager; projects always need
resources such as materials, labor and equipment, which generate costs. Those costs must be estimated and
controlled throughout the project life cycle to complete the project.

9.2 Project cost

Project Cost is the total funds needed to complete the project or work that consists of a Direct Cost and Indirect
Cost. The Project Costs are any expenditures made or estimated to be made, or monetary obligations incurred
or estimated to be incurred to complete the project which are listed in a project baseline.

9.3 Cost escalation

Escalation in project management is an anticipated rise in uncommitted costs of resources (labor, material,
equipment) over time, due to reduced purchasing power of money.

9.4 Cost Overrun

Cost overrun is an unexpected change in the project budget that ends up increasing the total project cost.

It can happen due to three primary reasons:

1. Economic factors that occur due to inaccuracies in project budget or scope

2. Technical reasons, including erroneous estimates or incorrect data gathering
3. Psychological causes, including the presence of scope creep or any decrease in project commitment
levels.

9.5 Cost of quality

COQ refers to the costs associated with having high-quality deliverables or the consequences that occur after
an imperfect one. In other words, it measures the total cost of preventing defects, identifying them, and dealing
with them.

9.6 Prevention Costs

When it comes to product quality, prevention is better than cure. Prevention can include many different things
such as activities that are specifically designed to curb poor quality before it has a chance to happen or work
on eliminating risk factors that may contribute to a bad outcome. The cost of preventing a problem from
happening is much less than the price you'll pay for finding and fixing the problem once something goes wrong.

Prevention is necessary for activities that have the purpose to lower the number of mistakes. Organizations
employ many techniques to prevent mistakes and errors, including statistical process control, quality
engineering, and training.
9.7 Appraisal Costs

A few costs that are related to appraisals include inspection, appraisal, and testing. This comes into play with
defective products -- if you examine them beforehand, the defective products won't reach customers. But
performing these activities alone does not guarantee defect-free products. The old idea of a team of
inspectors is outdated -- modern managers have realized that inspections need to take place throughout the
process, not just at the end.

9.8 Cost Control Techniques

Following are some of the valuable and essential techniques used for efficient project cost control:

1 - Planning the Project Budget

You would need to ideally make a budget at the beginning of the planning session with regard to the project at
hand. It is this budget that you would have to help you for all payments that need to be made and costs that
you will incur during the project life cycle. The making of this budget therefore entails a lot of research and
critical thinking.

Like any other budget, you would always have to leave room for adjustments as the costs may not remain the
same right through the period of the project. Adhering to the project budget at all times is key to the profit from
project.

2 - Keeping a Track of Costs

Keeping track of all actual costs is also equally important as any other technique. Here, it is best to prepare a
budget that is time-based. This will help you keep track of the budget of a project in each of its phases. The
actual costs will have to be tracked against the periodic targets that have been set out in the budget. These
targets could be on a monthly or weekly basis or even yearly if the project will go on for long.

This is much easier to work with rather than having one complete budget for the entire period of the project. If
any new work is required to be carried out, you would need to make estimations for this and see if it can be
accommodated with the final amount in the budget. If not, you may have to work on necessary arrangements
for 'Change Requests', where the client will pay for the new work or the changes.

3 - Effective Time Management

Another effective technique would be effective time management. Although this technique does apply to
various management areas, it is very important with regard to project cost control.

The reason for this is that the cost of your project could keep rising if you are unable to meet the project
deadlines; the longer the project is dragged on for, the higher the costs incurred which effectively means that
the budget will be exceeded.

The project manager would need to constantly remind his/her team of the important deadlines of the project in
order to ensure that work is completed on time.
4 - Project Change Control

Project change control is yet another vital technique. Change control systems are essential to take into
account any potential changes that could occur during the course of the project.

This is due to the fact that each change to the scope of the project will have an impact on the deadlines of the
deliverables, so the changes may increase project cost by increasing the effort needed for the project.

5 - Use of Earned Value

Similarly, in order to identify the value of the work that has been carried out thus far, it is very helpful to use the
accounting technique commonly known as 'Earned Value'.

This is particularly helpful for large projects and will help you make any quick changes that are absolutely
essential for the success of the project.

9.9 Cost estimation methods

Estimate to complete (ETC)

The Estimate to complete (usually abbreviated ETC) is the project management measure that shows you the
remaining cost you expect to pay in order to complete a project.

Note that ETC isn’t the final overall expected project budget this is called Estimate at Completion (EAC).

Instead, Estimate to Complete refers to the costs from the present moment until the end of the project; it never
includes the project expenditures prior to that moment.

Estimate at completion (EAC)

Estimate at completion refers to the forecasted cost of the project as it progresses. You can determine the EAC
in a number of ways.

The most common method is the bottoms-up calculation. This is where you take the actual costs (AC) of your
project and add them to the forecasted remaining expenses (the Estimate to Complete).

Here’s the formula:

EAC = actual costs (AC) + Estimate to Complete (ETC)

As you can see, the Estimate to Complete (ETC) is about forecasting how much more money you need to spend
in order to complete the project. It doesn’t take into account the actual costs (AC) the project incurred so far.
You can’t calculate your project’s Estimate at Completion (EAC) without the ETC.