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Project Management

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DOI: 10.59646/promgmt/051

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PROJECT MANAGEMENT
Authors
Dr. P. Shanthi
Assistant Professor
Department of Commerce (CS & AF),
Faculty of Science & Humanities
SRM Institute of Science & Technology,
Kattankulathur, Chengalpattu, Tamilnadu, India

Dr. Domenic T. Sanchez

Assistant Professor III
Cebu Technological University-NEC, Philippines

Mr. Jaffer Ali Khan

Head of Section-Accounting,
University of Technology and Applied Sciences -Al Musannah
Sultanate of Oman.

Dr. Alamelu Mangai Raman

Senior Lecturer
University of Technology and Applied Sciences -Al Musannah
Sultanate of Oman.

i
PROJECT MANAGEMENT
(Authors: Dr. P. Shanthi, Dr. Domenic T. Sanchez,
Mr. Jaffer Ali Khan and Dr. Alamelu Mangai Raman)

ISBN: 978-81-966147-7-5
DOI: https://doi.org/10.59646/promgmt/051
Published by
San International Scientific Publications
Email: [email protected]
Website: sanpublications.nobelonline.in

All rights reserved

No part of this publication maybe reproduced,

stored in a retrieval system, or transmitted,
in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise,
without the prior permission of the
publishers.

Publisher’s Disclaimer
The Publisher of this book states that the
Authors of this book has taken
the full responsibility for the content of this book,
any dispute and copyright violation arising
based on the content of this book
will be addressed by the editor(s), furthermore,
the authors indemnify the publisher from damages
arising from such disputes and copyright
violation as stated above.

ii
 ACKNOWLEDGEMENTS

To begin with, we express our heartfelt gratitude to Our Lord and Saviour
for continuously showering us with blessings and we also extend our appreciation
to the environment for its significant contribution to our remarkable achievement.

We would like to express our sincere appreciation to our family and friends
for their unwavering support and encouragement throughout the writing process.
Their constant motivation helped us to stay focused and committed in completing
this project.

Furthermore, we are deeply grateful to our colleagues and mentors for

sharing their knowledge and expertise with us. Their invaluable guidance has
helped shape the content of this book and we owe them a debt of gratitude.

We also acknowledge the publishers who played a critical role in bringing

this book to a wider audience. Their unwavering support and commitment were
crucial in ensuring that this book reached its intended audience.

Lastly, we would like to extend our thanks to the readers who have chosen
to engage with this book. We greatly appreciate your feedback, comments and
suggestions. Our sincere hope is that this book provides you with the knowledge
and inspiration you need to succeed in your academic or professional pursuits.
Thank you all for your contributions and support.

iii
 CONTENTS

PAGE
CHAPTER TITLE
NUMBER
CHAPTER INTRODUCTION TO PROJECT
1
I MANAGEMENT
1.1 PROJECT MANAGEMENT 1
1.2 STEPS OF PROJECT MANAGEMENT 3
1.3 GOAL 4
1.3.1 Benefits of setting project management goals 5
1.3.2 Project management goals 6
1.4 LIFECYCLES 8
1.5 PROJECT ENVIRONMENTS 13
1.5.1. Social and cultural environment 14
1.5.2. Physical environment 15
1.5.3. Political environment 15
1.5.4. Economic environment 16
1.5.5. Technological environment 16
1.5.6. Market conditions 17
1.5.7. Structure and culture of the organization 17
1.6 PROJECT MANAGER 18
1.6.1 Role of project manager 19
1.6.2 Responsibilities 20
1.6.3 Key responsibilities of a project manager 21
1.6.4 The importance of a project manager 26

CHAPTER PLANNING, BUDGETING AND RISK

31
II MANAGEMENT
2.1 THE PLANNING PROCESS 31
2.1.1 Recognizing Need for Action 31
2.1.2 Setting Objectives 32

iv
 2.1.3 Developing Premises 32
2.1.4 Identifying Alternatives 32
2.1.5 Examining Alternate Course of Action 33
2.1.6 Selecting the Alternative 33
2.1.7 Formulating Supporting Plan 33
2.1.8 Implementation of the Plan 33
2.2 WORK BREAKDOWN STRUCTURE 34
2.2.1 Uses of WBS In Project Management 34
2.2.2 Work Breakdown Structure 35
2.2.3 Types of WBS 36
2.2.4 Types of WBS Charts 37
2.2.5 WBS Elements 37
2.2.6 Work Breakdown Structure In Six Steps 38
2.3 COST ESTIMATING AND BUDGETING 40
2.3.1 Cost Estimation in Project Management 40
2.3.2 Time and Cost Estimation in Project Management 41
2.3.3 Project Budgeting 41
2.3.4 Importance of Cost Estimation in Project
42
Management
2.4 PROCESS 43
2.5 SUMMARIES 44
2.5.1 Contents of project summary 44
2.5.2 Writing a Project Summary 45
2.6 SCHEDULES AND FORECASTS 46
2.6.1 Creating Schedule Forecasts 47
2.6.2 Factors That Can Affect Schedule Forecasts 48
2.7 MANAGING RISKS 49
2.7.1 Types of project risks 49
2.7.2 Managing project risk 50
2.8 CONCEPTS 52

v
 2.8.1 Taking Risk Into Account When Making
53
Decisions
2.8.2 Strong Risk Management Culture 54
2.8.3 Risk Disclosure 54
2.8.4 Continuous Risk Management Improvement 55
2.9 IDENTIFICATION 56
2.10 RISK ASSESSMENT 57
2.11 RESPONSE PLANNING 58
2.11.1 Risk Response Plan 58
2.11.2 Risk Response Plan in Project Management 59
2.11.3 Types of Risk Response Strategies 59
2.11.4 Risk Response Strategies for Negative Risks 60
2.11.5 Risk Response Strategies for Positive Risks 60
2.11.6 Making a Risk Response Plan 61

CHAPTER
SCHEDULING & RESOURCE ALLOCATION 62
III
3.1 PERT & CPM NETWORKS 62
3.1.1 PERT 62
3.1.2 CPM 62
3.1.3 PERT vs. CPM: Key Differences 63
3.1.4 PERT and CPM in Project Management 63
3.1.5 PERT/CPM Chart Example 64
3.1.6 Benefits of Using PERT and CPM 65
3.2 PROJECT DURATIONS AND FLOATS 66
3.2.1 Importance of Estimating Project Duration 67
3.2.2 Estimating Project Duration 68
3.2.3 Project Management Float 69
3.2.4 Importance of float in project management 70
3.2.5 Choosing the Right Type of Float for Better
71
Project Management

vi
 3.2.6 The different types of float 71
3.3 CRASHING 73
3.3.1 Common Reasons for Crashing a Project 73
3.3.2 Project Crashing Steps 74
3.4 RESOURCE LOADING AND LEVELLING 75
3.4.1 Resource Loading vs. Resource Leveling 75
3.4.2 Preparing Resource Loading Chart 76
3.4.3 The Importance of Resource Loading In Project
76
Management
3.4.4 Resource leveling: Basics and benefits 77
3.4.5 Resource leveling examples 78
3.4.6 Enhancement of Resource Leveling 79
3.5 SIMULATION FOR RESOURCE ALLOCATION 81
3.5.1 Common problems of resource allocation in
84
project management
3.5.2 Importance of resource allocation in project
85
management
3.5.3 Resource allocation methods in project
87
management
3.5.4 Solvig runtime resource allocation challenges 89
3.6 GOLDRATT‟S CRITICAL CHAIN 90
3.6.1 The critical chain method vs. the critical path
90
method
3.6.2 The components of a critical chain 91

CHAPTER PROJECT ORGANISATION & CONFLICT

95
IV MANAGEMENT
4.1 FORMAL ORGANISATION STRUCTURE 95
4.1.1 Types of Project Organizational Structures 95
4.1.2 Features of an Organization Structure 99
4.1.3 Preparation of Project Organizational Chart 100

vii
 4.1.4 Factors involved in Making a Project
102
Organizational Chart
4.2 ORGANISATION DESIGN 103
4.2.1 The Impact of organization Design 103
4.2.2 Types of Organization Design 105
4.2.3 Organic Organization Designs 105
4.2.4 Organizational design principles 107
4.3 CONFLICT MANAGEMENT 108
4.3.1 Types of conflict management 109
4.3.2 Valuable skills for conflict management 110
4.4 ORIGIN & CONSEQUENCES 111
4.4.1 Negative Consequences of Conflict at Workplace 111
4.4.2 Positive Consequences of Workplace Conflict 113
4.5 PROJECT TEAMS 115
4.5.1 Typical sources of team conflict 115
4.5.2 Importance of Conflict Management in Teams 115
4.5.3 Classification: Three Types of Team Conflict 116
4.6 MANAGING CONFLICT 118
4.6.1 Managing conflicts 119
4.6.2 Importance of the conflict resolution 124
4.6.3 Resolving the team conflicts 125

CHAPTER
CONTROL AND COMPLETION 126
V
5.1 PROJECT CONTROL 126
5.1.1 Importance of Project Controls 126
5.1.2 Features of Project Controlling 126
5.1.3 Benefits of Project Controls 127
5.1.4 Steps Involved in Project Controls Process 127
5.1.5 Types of Project Controls 128
5.1.6 Processes That Define Project Controls 128

viii
 5.1.7 Project Controls Techniques 129
5.1.8 Challenges of Project Controls 130
5.2 PROJECT MONITORING 131
5.2.1 Importance of Project Monitoring 131
5.2.2 Types of Project Monitoring 131
5.2.3 Project Monitoring Process 132
5.2.4 Creating a Project Monitoring Plan 132
5.2.5 Implementing Project Monitoring 134
5.2.6 Project Control Examples 134
5.2.6 Project Management vs Project Controlling 135
5.3 INTERNAL AND EXTERNAL CONTROL 135
5.3.1 Examples of external controls 137
5.4 PERFORMANCE ANALYSIS 139
SCHEDULE PERFORMANCE INDEX
5.5 140
MONITORING
5.5.1 Terms Used in SPI 140
5.5.2 Cost Performance Index (CPI) 141
5.5.3 CPI vs SPI 141
5.5.4 Cost Schedule Index (CSI) 142
5.5.5 Schedule Performance Index 143
5.6 PROJECT EVALUATION 144
5.6.1 Principles of project evaluation 144
5.6.2 Types of project evaluation 145
5.6.3 Benefits of performing a project evaluation 146
5.6.4 Completion of a project evaluation 146
5.7 REPORTING AND TERMINATION 148
5.7.1 Contents of project management report 148
5.7.2 Types of Project management reports 148
5.7.3 Writing project management report 150
5.7.4 Benefits of using project management reports 151
5.8 PROJECT TERMINATION 152

ix
 5.8.1 Types of Project Termination 152
5.8.2 Importance of Project Termination 153
5.8.3 Different Ways to Terminate a Project 156
5.8.4 Steps of Project Termination Process 157
5.9 PROJECT SUCCESS AND FAILURE 159
5.9.1 Critical Success Factor 159
5.9.2 Main Causes of Project Failure 160
5.10 PROJECT LESSONS LEARNED 163
5.10.1 Integral part of project management 164
5.10.2 The lessons learned process 164

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 Project Management

UNIT I

INTRODUCTION TO PROJECT MANAGEMENT

1.1 PROJECT MANAGEMENT

The use of techniques, methods, skills, knowledge, and experience to accomplish

particular project goals in accordance with project acceptance criteria while staying
within agreed-upon boundaries is what we mean when we talk about project
management. Deliverables at the end of a project must adhere to strict schedule and
financial constraints in order to be considered successful. In contrast to management,
which is a continuing process, project management culminates in a tangible output at
the end of a certain amount of time. This is one of the most important characteristics
that sets project management apart from management in general. As a result of this,
a professional who works on projects has to have a broad variety of talents, including
frequently technical skills, as well as people management skills and a strong grasp of
business.

A project is an endeavour that is one of a kind and temporary, and it is conducted

with the intention of achieving predetermined goals, which may be outlined in terms
of outputs, results, or advantages. In most cases, a project is considered to have been
successful if it accomplished its goals in accordance with the acceptance criteria for
those goals, within the timeframe and budget that was originally agreed upon. Every
project is comprised of three fundamental components: time, money, and quality.
Scheduling is a set of strategies that are used to generate and publish schedules that
illustrate when work will be completed. Time is an important component of
scheduling.

Cost: How are the required money obtained, and how are the finances
handled?
Quality: How will the deliverables and management procedures be checked
to make sure they are suitable for their intended use?

Projects are distinct from the operations that are considered to be business as usual
and are undertaken by an organization when it has the intention of delivering a
solution that satisfies predetermined criteria within the timeline and budget that was
previously established. In order to successfully complete a project, it is necessary for
a group of individuals to temporarily work together under the same roof.

1
 Project Management

Consequently, productive collaboration among team members is an essential

component of successful initiatives. In order to successfully complete a project, it is
necessary for a group of individuals to temporarily work together under the same
roof. Consequently, productive collaboration among team members is an essential
component of successful initiatives. The management of projects entails overseeing
the coordination of separate chunks of labor in order to accomplish predefined goals.
The manner in which the job is directed and coordinated is contingent on a myriad of
diverse circumstances. The magnitude, relevance, and complexity of the task are
apparent aspects to consider. Relocating a small office and organizing the Olympics
share many of the same fundamental ideas, but provide quite different problems for
management. The following are some examples of ways that objectives might be
stated:

outputs (such as a new building for the headquarters);

results (such as employees being moved from several offices to the new
headquarters);
a number of advantages, including lower expenses for things like travel and
facility management.

1.1.1 Goal of project management

The ultimate goal of project management is to provide a finished product that will
bring about some kind of improvement for the company or organization that
commissioned the work in the first place. It is the beginning, planning, and
management of a variety of actions that must be completed in order to create this final
product. The following are characteristics of projects that call for formal
management:

have a distinct beginning and finish;

have a fixed timeframe;
are likely to be complicated in terms of the work or people involved;
need the management of change;
require the management of risks.

Putting money into efficient project management will provide a lot of advantages,
including the following:

increasing the possibility of accomplishing what is wanted to be

accomplished;
guaranteeing an effective and valuable use of available resources;
attending to the many requirements that the project's stakeholders could have.

2
 Project Management

Project management is performed by almost everyone, even if they aren't

technically recognized as project managers. Have you ever planned an event? You
led a group of individuals in the completion of that project, and the ability to lead
others effectively is an essential life skill. In a more formal sense, projects may be
found in various types of businesses and industries:

Transport and Infrastructure

IT
Product manufacture
Building and Construction
Finance and Law

1.2 STEPS OF PROJECT MANAGEMENT

There are several benefits to successfully completing a project on time and

within the allotted budget, which are supported by project management. The phases
of planning and carrying out a project each need their own set of abilities in project
management. A project manager is responsible for ensuring that activities such as
gathering stakeholders, maintaining technical knowledge and experience, defining
the roles and duties of the team, and meeting deadlines are completed successfully
while simultaneously working toward achieving multiple goals.

Figure 1.1: Project management

Project management is a form of management and leadership method that

varies widely from sector to industry or might be innate to each business. It is often
considered to be an essential part of the business world. It also depends on the size of
the project and the phases it is at. As the phases of a project's execution progress,
there is often a greater requirement for division of labor and specialization, which
may result in a rise in the total number of persons working on the project.

3
 Project Management

For instance, in the information technology sector, for the administration of

software projects, there may be a greater need for individuals in marketing than in the
actual development of a specific program. However, if we take the example of project
management for the construction of an apartment building, we can see that a greater
number of people are necessary on the ground for building and construction as well
as quality control checks. This is in contrast to the number of people needed for
marketing the same real estate project. The function of a project manager is an
essential component that lies underneath the management of all instruments for
project management. The role of a project manager is analogous to that of the
centralized hub in a hub and spokes model; this individual is responsible for directing
the project's execution with day-to-day responsibilities and long-term goals.

The following are some of the fundamental stages involved in project

management:

Initiation: Developing a concept for a firm, together with its objectives and
priorities, is a necessary step.
Planning: Charting and scheduling, as well as defining the scope, roles, and
duties, are all aspects of this stage.
Launch and Execution: It is a reference to the process of distributing and
managing the available resources.
Performance check and control: This stage performs a quality check, assures
compliance, monitors expenses and efforts, and searches for any hazards or
mistakes that may have been missed.
Completion or handover: Deliverables or end-products are handed over to
the client as part of the closing phase of the project, which entails approving
and documenting the outcomes at the same time.

1.3 GOAL

The planning, implementation, execution, and evaluation phases of a project

may all be guided by the project management objectives that have been established.
By increasing the probability that a project will be successful, these objectives are
beneficial to firms, managers, and personnel. Developing plans, putting strategies
into action, carrying out the project to its conclusion, and carrying out business plans
are all examples of project management aims and objectives. These objectives may
be contingent on the conclusion of a project, the actions of employees, or the
achievement of an overarching organizational objective. Typically, project managers
would design these objectives by first considering what it is that they want to
accomplish.

4
 Project Management

1.3.1 Benefits of setting project management goals

Goals established for project management may assist businesses in developing

habits or achieving targets that have relevance long after a project has been
completed. Other advantages include the following:

Increases your achievements

Creating objectives for project management might assist you in accomplishing

more when you are working on a project. Teams, for instance, can decide to make it
their mission to improve their capacities for cooperation and communication.
Personal objectives, such as improving one's level of organization or acquiring new
competencies, might be attained by individual members of a team. In addition, the
objectives of project management strive to assist the more extensive objectives of a
company, such as increasing the size of the client base or extending corporate
activities. When these objectives are met, new professional possibilities present
themselves, and management is better equipped to acknowledge the project team's
value as assets.

Creates a focus on objectives

The ability of a project team to concentrate on their work may be improved by

setting objectives. It is essential to specify anticipated results in order to enable teams
to work toward achieving those achievements. Because they are working toward a
certain objective, professionals may benefit from this approach by maintaining more
effective practices. In addition to this, it has the potential to improve morale due to
the fact that when professionals achieve their objectives, they are more likely to feel
a feeling of achievement.

Improves operational processes

Due to the fact that the objectives of project management establish clear
expectations, experts are able to investigate standard operating procedures and figure
out how to make them more effective. The enhancement of these procedures to better
conform to the objectives of a project may assist experts in achieving those objectives
more quickly and improve the company's operations going forward.

For instance, if one of the goals of the project is to finish a website by a certain date,
the experts who are designing the website may look for a more effective coding
language to use in order to complete the work. The subsequent initiatives may profit
from this higher level of efficiency.

5
 Project Management

Enables professional development

The objectives for a team or its individual members might be delegated by the
project manager. When a professional accomplishes a goal that has been set for them,
they are rewarded with increased experience and recognition in their area of
employment. This may assist foster professional development by offering
opportunities to build skills and gain experience working on large-scale projects,
which can help improve those abilities and encourage professional growth.

1.3.2 Project management goals

The following is a list of operational areas that may be supported by project

management goals:

Communication

The successful completion of projects and the enhancement of the overall

atmosphere of the workplace both benefit from effective communication. The
practices of arranging meetings, developing routes to contact other team members,
deciding on communication techniques, and promoting cooperation are all examples
of how the aims of project management may assist create or increase teams' ability to
communicate with one another. It is possible to assist the project's overall goals by
establishing communication-related objectives, and this may make teams more
productive.

Productivity

Increasing productivity is a common objective in project management since it

makes it possible for the workforce to become more efficient, which in turn may
result in more income or improved happiness among customers. As a result of the
importance of meeting deadlines, it is beneficial for project managers to identify
problems that generate inefficiency. Examples of such difficulties include
distractions and poor time management. The purpose of a project manager might then
be to enhance the delivery of projects and boost the productivity of their team.

Professional development

When members of a team take on new responsibilities and learn new

information while working on a project, they typically find that they are able to
improve upon and expand upon their existing skill set. Professional growth
opportunities also exist for project managers.

6
 Project Management

Each project that they manage may give them with new insights, and as they
effectively lead teams, upper-level management may reward them with promotions
or pay raises as they continue to demonstrate their leadership abilities.

Integration

The process of integrating different departments, operating systems, software,

or other resources together to function in tandem with one another is known as
integration. Integration is typically a goal in itself, but it may also be a goal in project
management since it often correlates with other goals. For instance, if a corporation
wishes to upgrade its operating systems, the IT staff may work toward this objective
while also installing software for other projects at the same time. Integration is
another option for project management to consider in situations when the completion
of a project involves the participation of different departments. These departments
could decide to integrate with one another, exchange ideas and procedures, and work
more collaboratively as a result.

Procedure developments

Creating new processes and enhancing existing ones is a typical objective in

project management. The majority of projects are broken down into five distinct
stages: planning, implementation, execution, completion, and review. During the
phase of evaluating, project managers are able to assess the degree to which the
processes benefited or hindered the productivity of the team. After the project is over,
they will have more time to work on improving the processes. Developing new
processes that are unique to the project could also be one of the objectives of project
management. When project teams develop an innovative product, the processes they
use to do so often need to be new as well.

Resource optimization

When an organization carefully analyzes how effectively its resources are

being used and distributed, they are engaging in resource optimization. In order to get
the most out of your resources, you should consider structuring your timetable so that
teams competing for the same resources don't run into scheduling conflicts and
scheduling maintenance on equipment that isn't being used. This objective may also
contribute to the reduction of trash. The evaluation of project plans allows managers
to determine whether or not a resource is being used to the extent that it can support.

7
 Project Management

Client satisfaction

Increasing the percentage of satisfied customers is often one of the primary

focuses of businesses. Meeting deadlines in a consistent manner while producing
high-quality work is often required to make progress toward this objective. It is often
paired with the pursuit of communication objectives. Companies are better able to
grasp the demands of customers when they have greater communication with those
customers and may change their activities appropriately. When a customer is included
in the advancement of a project, it may make them feel more confidence in the work
being done and increase the likelihood that they will provide good feedback.

Role maximization

The efficacy of each member of the team may be increased if the target is
specified by the project management. This entails giving them more tasks and
ensuring that they are contributing as much as they are able to while continuing to
operate within the parameters of their jobs. Additional training, providing assistance
to other members of the team, and doing research to assist with the execution of the
project are all examples of potential methods for role maximizing. Working to
optimize the influence of team members may help everyone maintain their
productivity and adopt more efficient methods, both of which can contribute to
meeting or exceeding the expectations of other personal and professional objectives.

1.4 LIFECYCLES

The project management life cycle is essentially a description of the overall

process and the phases required in effectively executing a project at a high level. The
project management life cycle is a process that may be characterized as an organized,
timely, and systematic technique for successfully starting, planning, and executing a
project for a successful conclusion, which is to satisfy the stated goals of the
stakeholders sponsoring the project. One way to think about the project management
life cycle is as a process that can be defined as a cycle. From the time it is conceived
until it is finished, a project is managed via a series of phases, each of which focuses
on a different facet of the process. In actuality, several of these stages may overlap or
be applied simultaneously throughout the course of a project's lifespan. This is despite
the fact that these phases are given in sequential order.

8
 Project Management

The stages of a project life cycle are adapted to meet the requirements of the
project, so giving a road map for its successful completion. A project life cycle offers
an overview of the project. The life cycle of project management may be broken down
into five distinct stages: project initiation, planning, execution, monitoring and
control, and completion.

Figure 1.2: Project Management Lifecycle

As was touched on briefly before, projects may be carried out using a

"traditional methodology" such as the "Waterfall methodology," an Agile approach,
or a hybrid of the two, which is sometimes referred to as the "Hybrid Agile" method
by a number of people. Regardless of the "execution methodology" chosen, all
projects will normally go through these 5 stages, beginning with identification and
ending with completion. This section provides a detailed description of each step.

Project Initiation

Initiation is the first stage of a project, and its primary objective is to define
the scope of the project in terms of what must be done and accomplished in order for
the project to be successful. At this stage, the stakeholders, the goals, the objectives,
and the deliverables, as well as the resources and the amount of money required to
complete the project, are decided on a high level. Stakeholders might be individuals
or corporate units who will provide funding for the project. Based on this, a
conclusion is drawn as to whether the project is "feasible or not" at a high level. The
Project Charter is the most important product that will come out of this phase.
Important stages in project management that take place during the Initiation phase

Carry out a study of the project's viability in order to determine the principal
issue that will be addressed by the project and whether or not the project will
really be able to address that issue.
Construct a business case and provide a high-level description of the project.
Draft either a Project Charter or a project start document that explains the
project's vision, objectives, and goals.

9
 Project Management

Determine the overall parameters of the project, as well as the kind of product
or service that will be produced as a result of the endeavor.
Determine the most important project stakeholders
As soon as the project is given the green light, it is time to put up the project
team and set up a project office.

In order to fulfill the need of the Initiation phase and decide whether or not the project
will be accepted, a business case, a feasibility study, and a Project Charter will need
to be completed simultaneously. After the project has been given the green light, there
may be one or more project initiation meetings conducted in order to complete the
project. At this point, the project's beginning phase is complete, and planning for the
project may begin.

Project Planning

After the Initiation phase of the project has been completed and the project has
been given the go-ahead, this phase will commence. The Project Planning phase is
the most important and demands the utmost attentiveness since it is the phase that
sets out the roadmap for the project. It requires finding out how to do the work that
needs to be done as well as identifying the job that needs to be done. This is
particularly true for big and/or complicated projects, which are normally carried out
through conventional methods. Projects that are carried out via Agile methods of
execution go through a planning phase as well; however, the plans may only be stated
at a high level, and the team is entrusted with the responsibility of planning the
detailed execution in the context of brief iterations or sprints. The manager of the
project starts off by establishing objectives by first creating a project plan.

A project plan that has been carefully prepared will define a comprehensive
project timeline, as well as a communication strategy, to provide the team with
guidance for creating quality output and managing risks. During the stage of planning,
the Project Manager is responsible for defining the scope of the project as well as the
management plan for the project, which includes the cost, quality, resources, and
deadline for the project. The project manager will use a scope statement and a Work
Breakdown Structure (WBS), which will include all of the deliverables for the
project, to define the scope of the work. Estimating the amount of work that will go
into the project as well as the resources that will be needed is another important
activity that will take place during this phase. The Project Manager, often in
collaboration with a team of subject matter experts, is responsible for providing
"rough order of magnitude" (ROM) estimates of all of the main parts of the project.

10
 Project Management

These estimates include the amount of effort that will be spent on different
phases and high-level tasks, as well as other non-labor resources and total budgets
that are dependent on these estimates. When putting up the high-level strategy for the
project, all of these inputs are taken into consideration. During the Planning phase,
key project management processes include the following:

In order to flesh out the specifics of the project deliverables, you need create
a document called a Statement of Work.
Work Breakdown Structure should be developed.
Draft a strategy for the project, divide up the work among the team members
(and any additional resources), and construct a comprehensive schedule for
the undertaking.
Determine the duties of the project team as well as the various resources that
will be needed for the project. At this point in the process, the Project Manager,
in collaboration with a project staffing department, will most likely begin the
process of identifying particular individuals to fill certain important tasks that
are essential to the success of the project.
Draft a risk mitigation plan that identifies possible dangers and formulates a
strategy to reduce the impact of those dangers.
Incorporate an efficient change management strategy in order to handle any
essential modifications in the project and to prevent bottlenecks.
Formulate a communication strategy, which should include a calendar for
coordinating with the various important parties.

Project Execution

During the phase known as "execution," the tasks outlined in the project plan
were carried out in actuality. This is when things start to get serious, and the project
will eventually become a functioning part of the world! At this point, the plan is put
into motion so that it may be executed. The project team has been created. Certain
individuals as well as other resources are delegated to carry out each of the duties
detailed in the project plan. The tasks associated with the project are carried out in
the proper sequence in order to finish all of the work in the most time and effort-
effective way feasible. The different deliverables that are created in accordance with
the established project plan are the most important results that come out of the
Execution phase. The project manager is responsible for organizing the members of
the team, establishing the workflow, and continuously monitoring progress. This
ensures that the work is completed in accordance with the plan, and maintains
effective coordination between the project team and the many stakeholders.

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Important actions in project management that take place during the Execution
phase are as follows:

Determine who will work on the project and give them their tasks. Assign
members of the team and any other resources necessary to the tasks associated
with the project, and get to work in the way that was intended.
It is your responsibility to steer the team in the right direction on the proper
way to carry out the duties.
Keep an eye on how far the squad has come.
Maintain consistent and open lines of communication with the project's many
stakeholders to ensure that the deliverables are satisfactory.

Project Monitoring & Control

Keeping the project on schedule and making sure that the goals and
deliverables of the project are accomplished are the primary focuses of this phase,
which often occurs simultaneously with the Project Execution phase. The project
manager is responsible for providing updates on how well the project is doing and
ensuring that everything is proceeding as planned. This makes it easier to keep track
of any deviations from the project's anticipated budget, timetable, and quality
objectives. Any required adjustments to the project objectives are executed after a
formal examination of the possible effect to the project goals and acceptance or
agreement of the impact by the project stakeholders. This ensures that the necessary
adjustments are made. This phase also includes regularly monitoring the project
environment for any risks or problems that are likely to damage the project
performance, and taking the required actions to avoid or mitigate them as proactively
as feasible, in order to minimize harm to any of the project objectives. During this
phase, the project environment is monitored continuously. During the Monitoring and
Control phase of the project, key project management steps include the following:

Monitoring how far along specific project tasks we are in their completion
Evaluate the project based on its performance in terms of its budget, timetable,
and quality.
It is necessary to conduct user evaluations, gather feedback, and then take any
necessary remedial steps.
Track any and all modifications that are made to the project's scope, whether
they come from members of the team or the stakeholders, and report on how
those changes affect the project's overall objectives.
Ensure that all stakeholders and the project team are on the same page on the
current state of the project.

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Project Closure

The last phase of the project management life cycle is called "Project Closure."
This phase marks the completion of the project and the delivery of all project
deliverables in their final form. The completion of a project's final delivery and the
stakeholders' acceptance of that delivery are both required for a project to be
considered closed. Other components of the project's closure may be carried out once
it has been officially agreed that the project should be closed. The project manager is
responsible for organizing a "post-project review" meeting, also known as a
retrospective, in order to discuss the takeaways from the project as well as the
difficulties that were encountered while working on the project. It offers the chance
to grasp lessons learnt in order to enhance production in the future. After the
aforementioned actions have been finished, the members of the project team are free
to work on other projects. Important actions in project management that take place
during the closure phase are as follows:

Carry out a "End of Project" Review or Retrospective and examine both the
performance of the project as well as a formal study of both its achievements
and its shortcomings.
Account for utilized and unused money, and release any residual resources for
use in future projects.
Document the completion of the project and send reports to the key
stakeholders.

1.5 PROJECT ENVIRONMENTS

The characteristics and circumstances of the setting in which a project is

carried out make up what is known as the project environment. It encompasses a wide
range of elements, such as air and water, as well as the human resources and other
people with whom interactions take place, as well as the existing social, political, and
economic situations. Additionally, they might be either within or outside the
parameters of the project. Therefore, it is safe to state that all of the internal and
external elements that have an affect are as follows:

The environment of the project is composed of the project management. Any

one of these factors has the potential to have an influence on the project, whether it
be in terms of the finances, the timeline, or the morale of the team, as well as in a
variety of other ways. In order to effectively manage a project, it is necessary to take
into account a great deal of information in addition to the actual project itself. It is
vital to have a solid awareness of the environment in which the project needs to
operate in order to have proactive project management.

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The Project Manager is responsible for developing contingency plans to

address all of the internal and external elements that have the potential to influence
the outcome of the project in some manner. Almost every project is, in some way or
another, planned and carried out. the economic, political, and environmental
framework that is responsible for some of the project's planned and/or some of the
project's unforeseen repercussions. There is a possibility that they will have both good
and negative effects. Consequently, it is essential that the Project Manager examine
the project within the context of the social, cultural, international, economic, and
political environments in which it will be carried out. These aspects of the external
environment must be taken into consideration in order for the project to be successful.
However, there is also the environment on the inside. All of the relevant stakeholders
as well as the team are included here.

The Project Manager is obligated to take into account the potential for these
individuals to have an impact on the final product of the project. In order for the
change that is supposed to be brought about by the project to be accepted in a more
favorable manner, the Project Manager has to have the abilities necessary to have a
constructive impact on the surrounding environment. And in the process of working
with the team, the Project Manager's capacity to work with the individuals on the
team plays a significant part in producing the best possible outcomes. This is of
utmost significance in the highly competitive and technically advanced world of
today, which is full of complicated circumstances. We have seen the many elements
that come together to form the atmosphere of the project. Let's take a step back and
look at the project environment in its whole, breaking it down into its component
parts and discussing what has to be taken into account within each part and how it
might have an effect on the project.

1.5.1. Social and cultural environment

In the management of projects, this is a very significant consideration that has

to be taken into account. There are certain questions that need to be thought about: In
what ways does the project have an influence on the people who live in the location
where it is being carried out, and how do those people in turn have an impact on the
project? How do the people in the community feel about the project? They have not
indicated whether or not they will support the initiative. Will they be impacted
culturally as a result of the project? Alternately, the demographics of the region may
have an impact on the overall concept for the project. All of this could call for a
comprehensive comprehension of the demographic, ethical, ethnic, educational, and
religious characteristics of the individuals whose lives would be impacted by the
project.

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If the project manager is aware of how important it is to influence the cultural

and social environment for the sake of the project's stakeholders, then the project's
chances of being successful will increase significantly. When discussing the cultural
environment, it is important to note that this also refers to the culture that exists inside
the company. In this regard, open and consistent communication is a very important
factor. Everyone who is a part of the project team, as well as everyone who is a
stakeholder, has to have the same sense that they are a vital component of the project
as everyone else who is a stakeholder and member. It is very necessary for the Project
Manager to provide enough information to an adequate number of individuals. This
will contribute to the development of trust as well as a healthy cultural climate that
emphasizes cooperation and collaboration. As a result, it is very necessary for the
Project Manager to take into consideration and strive toward the improvement of the
cultural and social project environments both internally and externally.

1.5.2. Physical environment

Another essential component of successful project management is the

following. When planning the project, it is important to give careful thought to the
physical surroundings, as this will aid in identifying and managing a number of
possible hazards. If the project does have an effect on the physical environment or
the ecology of the location where it is being carried out, what kind of impact will it
have? It is always to everyone's advantage if certain members of the team have
understanding of the local ecology and geography that may have an affect on the
project or that the project may have an impact on. It is important to take into
consideration and include into the design for the project things like the local weather,
extremes of the weather, topographical challenges, limits, if any, to reach the project
site, availability of human resources and utilities, and environmental sensitivity. All
of these are examples of external influences, and the most of them are outside the
control of the business or the project manager. Nevertheless, they play a significant
part in determining whether or not the project is successful.

1.5.3. Political environment

The political climate is another important factor that must be considered in

project management. The Project Managers are responsible for being aware of the
parameters within which they must function. It's possible that these are local or
national legislation. The political climate at the time might also have an effect on the
overall progression of a project. These kinds of considerations influence the manner
in which the Project Management team will interact with the various stakeholders.
There is a possibility that the Project Manager may be required to address problems
such as corruption and disparities between national and local legislation.

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It is possible that there may be an abrupt shift in political power, and this may
cause a change in the amount of impact that it has on the project; as a result, the team
in charge of project management will need to be able to adjust to this change. When
developing a strategy and timetable for the project, the Project Manager is responsible
for taking into consideration all of these factors.

1.5.4. Economic environment

The cost of the project is impacted by the economic climate of the location in
which the project is being developed. Therefore, the project manager has to be aware
of the economic climate and determine whether or not there will be consistency in
the cost of the inputs. If we had this information, we would be able to make a more
accurate estimate of the project. The consistency of prices is a crucial component in
determining the overall success of a project. The knowledge of the economic
environment will also aid in the process of better controlling the project. This is
because it will reduce the likelihood of the project being stalled as a result of rapid
changes in the expenses, and it will also prevent the project budget from becoming
unbalanced.

1.5.5. Technological environment

The team in charge of project management has to have a solid understanding

of the technology landscape in which they will be working. The job of selecting the
suitable technology for the project is an essential one that will have an impact on the
final result of the project. In addition, the level of technical expertise that is available
to the project team may have a significant influence on both the project's goals and
its value. Therefore, it is essential for the success of the project to carefully pick the
appropriate technology tools as well as individuals who possess the needed skills and
expertise.

These factors have an effect on many facets of the project, including the
complexity of the design, the rate at which the project is completed and its
effectiveness, adherence to the project's objectives and criteria, the dependability of
the product or service, and the safe operation and execution of the project. The project
environment is undergoing significant change as a result of the rapid advancement of
technology. As a result, the Project Manager is tasked with maintaining an in-depth
familiarity with the most recent tools that are at their disposal and which have the
potential to facilitate the efficient, risk-free, and trouble-free completion of the
project.

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1.5.6. Market conditions

One of the most important factors that will determine whether or not a project
is successful is the market environment in which it will be carried out. We are all
aware that the circumstances in which markets operate are always changing, and as a
result, the performance of the project may either gain or suffer as a direct result of
these changes. The current state of the market may have a positive or negative impact
on the project, either by affecting the capacity to fund the project or by causing
alterations in the project's scope and standards. Additionally, they could have an
effect on the availability of the human resources that are required for the project.

1.5.7. Structure and culture of the organization

This one relates to the atmosphere of the organization's internal projects and
how they are managed. The organizational structure has an impact on the way a
project is handled inside the company. The structure of the organization could contain
information about the systems that are already in place and how they function. The
procedures that are being carried out in order to accomplish the objectives of the
company are also included in the structure. These have a significant bearing on the
manner in which the project is carried out. In a similar vein, the culture of the
company, which includes the culture of the workplace, also has a significant influence
on the way the project is advanced and managed. One of the factors that determines
whether or not a project will be successful is the thinking process and techniques used
by senior management. Therefore, this is an essential component of the whole project
environment, which has to be taken into careful account in order to achieve superior
levels of project management.

So far, we have discussed the environment of a project in the Project

Management course, and the following is a rundown of the many components that
make up the setting in which the project lives and functions. When developing a
strategy for a project, environmental and contextual aspects like these should be given
great attention since they have a significant impact on whether or not the project will
be successful. This also demonstrates that the job and duties of the Project Manager
have gone beyond the scope of just administering and supervising operations inside
the business. The phases of planning, scheduling, and monitoring are no longer the
only components of effective project management. To ensure the effective
completion of a project, it is now absolutely necessary to locate and establish the
connection between the project and the external environmental conditions.

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1.6 PROJECT MANAGER

Project managers are in charge of all aspects of planning, executing,

monitoring, and managing projects, as well as bringing them to a successful
conclusion. They are responsible for the complete project scope, as well as the project
team and resources, as well as the budget for the project, as well as its success or
failure. Project managers need to be proficient in a variety of skills in order to be
successful in their work. These skills include organizing resources, managing
budgets, measuring and monitoring project progress, communicating with team
members and stakeholders, and more. They are also responsible for assessing risks
and resolving any difficulties that come up during the life cycle of a project. during
the process, they are often required to make tough choices addressing complicated
and conflicting priorities in order to accomplish the intended results for the project.

The purpose of a project manager is to guarantee that there is efficient

communication across all of the various phases and departments. On top of that, the
project manager is sometimes the only line of contact that exists between a business
and its customers or clients. For instance, a project manager would concurrently
coordinate between particular needs of the customer and, at the same time, verify
with his team for the budget and schedule limitations during the construction of an
office building for a legal company.

Figure 1.3: Role of project manager

Therefore, having a team behind the execution of a project is important

because it guarantees proper budgeting and scheduling, the creation of charts for
achieving deadlines such as the Gantt Chart, and the prediction of risks and obstacles
that may arise throughout the process. At the same time, the goal of such a team is to
create conformity with the standards of the firm as well as the expectations of the
customers. As a result, the position of a project manager brings all of these processes
together to ensure the efficient flow of work and the successful completion of tasks.

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1.6.1 Role of project manager

Make coordination with the team

Take, for instance, a business that specializes in the creation of websites. You
will first start this process by constructing a more comprehensive image of the
primary characteristics to which your organization contributes. This is mostly
dependent on the demographic of your clientele or the specific market your company
services. Defining the function of Human Resources (HR) would be restricted to
recruiting techniques and other administrative-related procedures. In a similar
fashion, developers would concentrate their efforts on coding and constructing
websites. Nevertheless, as the project manager, it would be your responsibility to act
as the glue that holds the whole thing together. A project manager's responsibilities
often include ensuring that there is sufficient personnel and resources and
communicating job information to individual members of the team.

Keeping the team close-knit

Concentrate on developing a team that 'works together'. To begin, define the

key functions that each department will play. Having objectives to work for will make
this process much easier. When you have a clear idea of your objectives, it will be
much simpler to assign specific responsibilities to each department. After
responsibilities have been established in detail, the next step is to ensure that there is
harmony within the team and to cultivate trust among its members. This will allow
everyone to do more in a shorter amount of time. To do this, you need to make certain
that:

Every member of your team receives feedback on a regular basis.

Everyone is aware of what their specific responsibilities are.
Everyone is able to converse effectively.
The team has access to an adequate amount of resources and tools to facilitate
productive cooperation.

Delegating work effectively

It is essential for you, as the project manager, to be able to successfully assign

work to the members of your team. Every project manager has to be able to learn and
adapt to this particular style of leadership. You should not abuse this duty by pointing
fingers at other members of your team or putting them down in any way. ProofHub
is a comprehensive platform for the administration of projects and the cooperation of
teams. You may also use this application for real-time collaboration.

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 Project Management

Employee feedback

As a project manager, one of your primary responsibilities is to collect input

from team members, which is also the most important function you perform. It is
necessary to evaluate the performance of your team members as the project moves
forward in its progression. It is not hard to imagine that the roles that various people
play at various points throughout the course of the project may shift. As a result, this
kind of assessment will be helpful in offering feedback to the members of your team
about modifications.

It is essential to keep in mind the possibility that the company's goals have
remained the same, despite the fact that the means by which they will be achieved
may have changed. Because of this, you should always make sure to be within close
vicinity to the other members of your team.

1.6.2 Responsibilities

A project manager, along with the assistance of their team, is tasked with a
variety of activities that cover all five stages of a project's life cycle. These roles are
explained in more detail below. Each phase places an emphasis on a distinct
combination of the skills and domains of knowledge associated with project
management. These domains include integration, scope, time, money, quality, human
resources, communication, risk procurement, and stakeholder management.

Initiating phase

In the beginning stages of a project, the project managers are the ones who are
in charge of drafting the project charter and figuring out who the important
stakeholders are that are engaged in the process of obtaining the project's desired goal.

Planning phase

In order to construct a strategy for managing a project, project managers need

to first identify the scope of the project, then develop a work breakdown structure
(WBS), and then collect requirements. Additionally, they are required to plan, define,
and establish schedules and activities, as well as estimate the resources necessary to
finish the project, while also estimating the projected length of each activity. With
this information serving as a guide, they will then be able to plan and estimate
expenses, develop budgets, evaluate the demands for human resources, and devise
methods for communication and quality control.

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Execution phase

During this phase, project managers are responsible for directing and
managing all of the work that is being done for the project. This includes the
following tasks: selecting, developing, and managing the project team; managing all
aspects of communications; taking action to secure any necessary procurements;
performing all aspects of quality management; and managing all expectations held by
stakeholders.

Monitoring and controlling phase

Once work has begun on a project, the project managers in charge of that
project are responsible for monitoring the work that is being done on the project and
making any required modifications while verifying and regulating the project's scope,
expenses, and the quality of the deliverables. Additionally, project managers are
obligated to manage all stakeholder interactions, monitor all communications
between the team and stakeholders, and maintain control over procurements.

Closing phase

In order to bring an end to a project, the project managers are responsible for bringing
an end to all phases and procurements, settling budgets, handing over deliverables,
doing project post-mortems and reports, and returning employees to the resource
pool.

1.6.3 Key responsibilities of a project manager

You need to be familiar with all of the cutting-edge project management

technologies and all of the industry jargon that surrounds this topic in order to succeed
in today's competitive business climate. Project management is a complex
combination of art and science. At work, your responsibilities consist of the activities
and tasks that you are expected to do on a daily basis. All of these different actions
and responsibilities come together to help you fulfill your position as the project
manager. These roles could shift somewhat from one stage of the project to the next,
as well as for a variety of other reasons.

Planning everything from execution to delivery

In an ideal world, you should have a plan to do more with less resources. When I
say "more," I'm referring to more results, more quality, and more customer happiness.
When I say "less," I'm talking about less time and fewer resources.

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 Project Management

To put it another way, you need to create a plan that lays out the steps you need
to take in order to finish the project successfully and effectively. You are free to
utilize any methodology, such as Agile, Waterfall, or another. Keep in mind,
however, that the members of your team also need to be able to function normally in
this setting. In conclusion, your talents as a project manager should comprise many
strategic planning and planning activities.

Decomposing the project into its component parts, known as tasks and
subtasks.
Progress made consistently by breaking down work into manageable parts.
Establishing a reasonable timetable for the completion of certain deliverables.
The establishment of benchmarks.
Bringing attention to the many dependencies that the project has.

Directing the team to achieve a common goal

You need to make sure that the members of your team are headed in the proper
direction to achieve their goals. Have you ever seen the actions of a trustworthy
shepherd? He leads all of his sheep and goats down the path that leads toward the
vegetation. In a similar vein, you need to keep the people of your team engaged so
that they can keep progressing in the correct direction. It is up to you to make certain
that the abilities of your squad are used to the fullest extent possible. In some
situations, you will be required to take responsibility for the duties associated with
other areas. The characteristics of a good project manager should be comparable to
those of a good human resources manager in order to guide your team effectively.

Discussing work obligations with already employed individuals,

Both effectively managing their time and living up to the commitments they
made to the project,
It's possible that we'll need bids, and
Contracts will need to be looked at, and everyone on the team will need to be
monitored closely, in order to guarantee that the team will proceed in line with
the plan.

In addition, make sure that your teams are using agile methods. You may raise the
level of responsibility shown by the members of the team by doing so. This would
assist the team in becoming cross-functional, which would imply that you would be
contributing to the team by making it:

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 Project Management

Better able to face new difficulties and adapt to shifting demand from
customers.
Capable of better working with customers and balancing many jobs at once,
More at ease switching positions and working in a variety of specialized fields
rather than focusing on just one.

Managing time

When it comes to managing projects, time is the most important resource. This
will determine the foundation upon which the whole project will be built. It is
expected of you to be able to negotiate due dates on behalf of the other members of
your team. Planning and scheduling strategically are two of the most important
components of effective time management. You should establish a deadline and
delegate work to the members of your team. The timely completion of a project is
also dependent upon the early identification of potential bottlenecks in the process.
When you have an accurate prediction of the resources you have available, you will
be able to easily handle unexpected obstacles that are connected to resources and find
solutions to such issues.

Monitoring progress and tracking roadblocks

This is the portion of your everyday work routine that takes the biggest amount
of time. This sentence is fraught with a great deal of etiquette and protocol issues. An
excessive amount of monitoring may incite hostility among the members of your
team. And at the same time, if you do not get real-time information on the
advancement of the project, then you will not be able to make accurate projections
about when it will be finished. At this stage, software designed for managing projects
may be a real lifesaver. Proof Hub gives you full command and control over each
member of your team. You have the ability to examine the progression of tasks as
well as the burden of your team members. These specifics will assist you in
forecasting resource needs, identifying potential bottlenecks, and pinpointing areas
in which your team can improve. In addition, you do not have to overextend yourself
by taking on too many obligations. It is helpful to use automation, particularly in the
form of the automation of repetitive chores, as this helps to guarantee that the
advancement of the project is not impeded.

Conducting regular meetings

Before you start holding meetings, the first thing you need to do is make sure
you have a plan of action. By doing so, you can guarantee that everyone on your team
is familiar with the objectives of the meeting.

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 Project Management

The project approach that you are working on will dictate how often your team
should meet. Every day, the Scrum approach calls for a meeting that lasts for 15
minutes. Now is the moment for you to settle in with the new members of your team
and get things back to normal. If you are managing the project with the help of a tool,
then it is not necessary to have daily meetings or meetings that last a long time. You
may delegate individual tasks to the members of your team so long as everyone is
operating under the same set of assumptions. Meetings in today's modern workplaces
are often relatively brief and almost entirely focused on the agenda, which is
distributed well in advance of the meeting's start time. Your team may interact,
debate, and exchange files in real time on the centralized platform that serves as a
project management tool, which eliminates the need for physical meetings.

Establishing a shared vision

It is important that your vision and the company's vision are congruent. You
will be able to guide your efforts effectively in the appropriate path if you follow this
course of action. The next step is to communicate this information to the other
members of your team. It is essential for the motivation and inspiration of the team
that all of the members of the team be on the same page. You need to infuse your
team with passion and positive energy so that you can build a unified vision for the
future. Your team will be better able to comprehend the workload and put forth every
effort to turn the objectives become missions as a result of reading this.You are the
one who is responsible for establishing the suitable tone for the journey so that it goes
more smoothly. A shared vision encourages the cohesiveness of a team, stimulates
creativity and inspiration, and instils a sense of purpose that contributes to the timely
and fruitful completion of the project.

Managing documentation and reports

As the project moves along, there are going to be a number of challenges, milestones,
and other problems that may emerge. It is essential that you keep a record of both the
amount of time and money spent. These reports and documentation will come in
helpful when it comes to determining which aspects of future development initiatives
need enhancements and how those enhancements should be made. In addition, the
papers will be of use to you when preparing reports for delivery to customers. In
addition to that, the evolution of the project as a whole is affected by these papers in
two additional ways. –

To keep a record of the work that has been completed on the project as well as
the people that have contributed to it.
To guarantee that all of the criteria for the project have been met by the project.

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 Project Management

Coming up with a plan B

As a project manager, one of your primary responsibilities is to be alert at all

times. This need places a significant burden on your shoulders. Not in the literal
sense! In the process, you will injure yourself worse. In order to guarantee that the
undertaking will be completed without incident, it is necessary to be well-prepared
for unanticipated occurrences and conditions. Even when the terrain is rough, you
have to maintain pedaling continually in order to keep a bicycle going forward. In a
similar vein, if you want to make consistent headway with a project, you have to
constantly putting in the work. You should be conversant with the fundamentals of
risk management and change management if you are going to be managing projects.
You are required to have knowledge of how to:

Make preparations for more resources.

Time management is essential in challenging situations.
Ensure that you have a backup plan in order to live up to the standards set by
your customers.

Coordinating with the clients

Your duties also include acting as a liaison between the company and the
customers. This is not as simple as it may seem; in fact, it may become difficult in
some circumstances. You have the primary responsibility of discussing the needs of
the project with the customers as well as other stakeholders involved. It is essential
that you provide the customers with clarity about the manner in which they should
approach the job as well as the many things that the team can achieve for them. In
your role as project manager, you will act as a liaison between the members of your
team and the customers. Any modifications or comments provided by the customer
should be sent to each individual member of the team in the most efficient way
possible.

Figure 1.4: Roles and Responsibilities of Project Manager

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 Project Management

Take into consideration the items listed below to ensure seamless

synchronization.

It is important to regularly provide feedback in order to promote continual

growth not just inside your team but also across the whole project.
Acknowledge and appreciate good remarks, and have a party to honor your
successes.
Stay away from playing the blame game, particularly in the event that there
are bad evaluations.

1.6.4 The importance of a project manager

Figure 1.5: Importance of a project manager

Realistic planning

Planning and preparation are very necessary to the completion of a successful

project. In no event can the planning stage be undervalued. The use of arbitrary
estimations and delivery deadlines that are just approximations are certain ways to
botch a project. In this stage of the project, you are responsible for laying the
groundwork. The efficient evolution of the project and the timely conclusion of the
project are both entirely dependent on planning that is both effective and realistic.

Set clear focus and objectives

Try assigning the members of your team to work on a project that lacks clear
goals and a central focus. You are going to see them making a mess out of the project!
As the manager of the project, it is up to you to establish the parameters that will
ensure the smooth progression of the work. If you want the project to be finished on
time, you need to make sure that your team members remain on track from the very
beginning all the way through to the very end. This is analogous to leading a
sheepfold from the barn to the pasture in a secure manner.

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Quality control

A group of people can do tasks on time, but the most important thing is to
make sure the work is of high quality. In the event that quality criteria are not met,
completed projects run the risk of being rendered unusable. The establishment of
criteria and guidelines is one of the primary responsibilities of a project manager. The
members of the team are given clarity as a result of this information.

Cost factor

According to one piece of research, poor project performance accounts for the
loss of 9.9% of each and every dollar. The hiring of a project manager may result in
significant cost reductions for a firm. You should be able to enhance efficiency,
eliminate risks, and maximize resource use if you are an experienced project manager.
All of these aspects contribute to the fight against the frittering away of resources and
help the organization thrive as a whole.

Selection

In the process of managing projects, one of the most important gears in the
cycle is the project manager. Her capacity to manage a team and recognize potential
problems in the sequence of activities ranging from ideation to execution will
determine whether or not a particular project is successful. Even while every business
has its own idea of what constitutes a best practice, and every project manager is as
unique as the projects they oversee, there are certain fundamental elements to look
for that may help you figure out whether or not the option you choose will be
successful.

Leadership

It is not technical expertise that is important in project management; rather, it

is the depth of managerial abilities inside the project cycle. According to author and
certified Project Management Professional Larry Richman, the most important talent
for effective project management is leadership. Although every project manager
requires abilities such as planning, estimating, scheduling, and budgeting, leadership
is the skill that is essential for successful project management. The project manager
is responsible for leading all stages and members of the team by exerting influence
on those around them to assist in the completion of the job's deliverables. When
looking for someone to manage a project, it is important to look for someone who has
a number of critical leadership attributes.

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Communications Skills

A strong command of all modes of communication is required of a project

manager. Successful project managers communicate the project's goals in an effective
manner through holding in-person meetings, making phone calls or sending text
messages, as well as sending emails. According to management expert Fumi Kondo,
a smart project manager is also aware of all that has to be covered via each kind of
communication technique. During the life cycle of the project, the failure of the
project is possible as a result of any communication that is lost, garbled, or even
intercepted.

Conflict Resolution and Problem-Solving Skills

The administration of projects requires analytical thinking and creative

problem-solving skills. According to the author and project management specialist
Harold Kerzner, Ph.D., the leader is responsible for demonstrating fundamental
conflict management skills and having the capacity to address difficulties that
develop over the course of the project. In addition to this, the project manager is
responsible for providing his team with the tools and strategies necessary to address
difficulties. When looking for a manager to lead a project, it is important to find
someone who is creative and has the ability to solve difficulties after feasible
solutions have been developed.

Organizational Skills

A project manager is responsible for monitoring a large number of details.

Getting organized starts with making a list of resources, requirements, and supplies.
This comprises both human and nonhuman resources to the extent that they are
necessary to accomplish the goals of the project. Look for a project manager who can
keep an eye on the large picture while also paying attention to the finer points of the
project.

Organizational & Project Management Skills

It takes a certain level of organizational intelligence to be effective in

leadership roles like team leader, department head, or project manager. They also
need to be able to work effectively with people who have a variety of personality
types, they need to be able to meet deadlines, and they need to be adaptable when the
situation calls for it. In order to maintain projects on schedule and to manage staff
members effectively, time management is another ability that is essential.

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Project Planning

A capable project manager is able to plan both short-term and long-term

projects with the assistance of planning tools such as work flowcharts, financial
predictions, and staff resource allocations, all the while keeping the company's
purpose and strategic goals in mind. In this perspective, the capacity to multitask is
crucial to ensure that all aspects of a project operate together, that they are prioritized
effectively, and that they are managed for both quality and timeliness.

Staff Management

In order to correctly allocate members of a team's employees to specific duties

on a project, a manager of projects has to have the relevant skills, experience, and
expertise. The members of a project team that are able to complement one another
and work together toward similar objectives are more productive than staff members
who have personality difficulties or who are not well knowledgeable on the subject
area to which they have been assigned. One of the most important organizational
skills is having the ability to read people and put together productive groups.

Prioritization

One of the most critical skills for successfully planning, managing, and
carrying out a project is the capacity to prioritize tasks. Not only is it necessary to
determine which initiatives have more priority than others, but it is also crucial to
manage the intricacies of the project after it has already begun. Steps along the critical
path need to be mapped out in order to guarantee that project functions that are
essential to the successful completion of subsequent project activities are completed
in the correct order.

Patience and Flexibility

Organization and project management are two fields that need a significant
amount of patience and tolerance. Because aspects of a project may not always go
according to plan, the ability to adopt a reasoned approach to recognizing a problem
and brainstorming solutions is essential to maintaining forward momentum for a
project. This often involves reevaluating one's aims and objectives, shifting one's
resources and deadlines, and maintaining the flexibility to make adjustments
whenever the situation calls for it.

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Decision Making

Having the ability to make important decisions is necessary for both being
organized and managing tasks. There are times when you have to make a choice on
the spot, while other kinds of decision-making take more investigation and thought.

Figure 1.6: Project Selection

It is more efficient in terms of time, money, and people to be able to evaluate

a problem, determine viable solutions, and then make a final choice. Being unable to
make a decision may result in increased costs, missing deadlines, and disgruntled
members of the project team.

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UNIT II

PLANNING, BUDGETING AND RISK MANAGEMENT

2.1 THE PLANNING PROCESS

The function of planning is one of the most important ones that management
is responsible for. It entails determining the objectives of the firm and then managing
its resources in order to accomplish those objectives. You can probably guess that it
is a methodical procedure that consists of eight well considered phases. Let's take a
look at the process that goes into planning.

Figure 2.1: Planning Process

2.1.1 Recognizing Need for Action

Awareness of the business prospects available both inside and outside of the
company is an essential component of the planning process. These opportunities may
be found both within and outside of the company. Once such possibilities have been
identified, managers will be able to determine the steps that must be done in order to
bring them into fruition. The potential of these new chances has to be evaluated in a
practical light, and a SWOT analysis need to be carried out.

Imagine for a moment that the government intends to encourage the

development of cottage enterprises in semi-urban regions. It is possible for a company
to investigate this possibility.

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2.1.2 Setting Objectives

This is the second phase in the planning process, which is also perhaps the
most significant one. In this step, we determine the goals not just for the company as
a whole but also for each particular department. departmentalize it. While the goals
of the organization as a whole offer a broad direction, the objectives of individual
departments will be more carefully developed and specified. Both the short term and
the long term may be considered to be objectives. They point to the desired end result
that the organization hopes to accomplish. Therefore, goals will trickle down from
managers and will also lead and push workers in the right path when they are
communicated to them.

2.1.3 Developing Premises

Although preparations are usually made with the future in mind, it is

impossible to predict what will occur in the future. As a consequence of this, the job
of management will need the making of certain assumptions. These presumptions
serve as the basis of the argument. Forecasts, current plans, and policy decisions from
the past, among other things, are used as the basis for these assumptions.
Additionally, there are two categories for these planning premises: internal and
exterior. The term "external assumptions" refers to several aspects, including the
political environment, the social environment, the progression of technology,
competition, and other policies implemented by the government. The policies, the
availability of resources, the quality of management, and other topics related to
internal assumptions are listed here. These presumptions that are being made need to
be consistent across the whole business. Every manager should be familiar with these
presumptions and should accept them without question.

2.1.4 Identifying Alternatives

In the fourth stage of the planning process, you will be tasked with determining
the many options that are open to the managers. There is not a single path that must
be taken in order to accomplish what has to be done for the company; rather, there is
a wide variety of options. It is necessary to determine each of these potential divergent
paths. The management must have access to a variety of different choices. It's
possible that he goes with a creative new approach in the hopes of achieving better,
more timely outcomes. In the event that he does not choose to engage in risk-taking,
he will adhere to the more conventional plan of action. When it comes to this stage,
the challenge is not in locating the various options; rather, it is in whittling them down
to a manageable number of options so that each one may be examined in more depth.

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2.1.5 Examining Alternate Course of Action

The process of planning continues with the following stage, which is to assess
and carefully investigate each of the alternative options. Every possibility will be
investigated, and the advantages and disadvantages of each will be analyzed and
compared. It is necessary to conduct an analysis of the many potential plans in light
of the corporate goals. For instance, if it is a strategy for one's finances. The risk-
reward analysis of it will be carried out if that happens to be the case. A
comprehensive set of calculations and an in-depth analysis are carried out in order to
guarantee that the strategy is capable of accomplishing the goals in the quickest and
most effective way.

2.1.6 Selecting the Alternative

The process of preparing has brought us, at long last, to the point of making
decisions. The time has come to choose the strategy that is both the most effective
and the most practical to put into action. The optimal strategy is the one that
maximizes profits while minimizing the number of unintended effects and is also
flexible enough to accommodate changing circumstances. Evidently, the decision
was arrived at by the application of scientific research and mathematical formulae.
However, a significant amount of weight should also be given to the intuitive
judgment and practical expertise of the manager. When developing the perfect plan
for a situation, it is often necessary to integrate elements from a number of different
plans.

2.1.7 Formulating Supporting Plan

Once you have decided on the plan that will be carried out, managers will need
to devise one or more plans to support the selected plan. These subsidiary plans
contribute in some way to the overall execution of the primary plan. Supporting plans
for the primary goal, which is to introduce a new product, include making
preparations such as expanding the office, hiring more workers, and receiving
training. Therefore, each of these tertiary plans is, in reality, a component of the
primary plan.

2.1.8 Implementation of the Plan

And now we have arrived at the very last stage of the planning process, which
is the actual execution of the plan. When this phase of management is complete, all
of the previous functions of management have served their purpose, and now it is
time to put the organization's goals into action according to the plan.

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2.2 WORK BREAKDOWN STRUCTURE

A work breakdown structure, often known as a WBS, is a graphical,

hierarchical, and deliverables-focused analysis of a project. This diagram is useful for
project managers because it enables them to deconstruct the scope of their projects
and see all of the activities that must be completed in order to successfully finish their
projects. Because the work breakdown structure chart details each stage of the project
in detail, using it as a planning tool for the project is very necessary. The WBS levels
below subdivide the project scope to identify the tasks, deliverables, and work
packages that are required to accomplish the project from start to end. The final
project deliverable, as well as the tasks and work packages connected with it, lie on
top of the WBS diagram. In addition, the WBS levels below subdivide the project
scope.

A work breakdown structure is planned and carried out by project managers

with the use of tools specifically designed for managing projects. Project
management software may be extremely useful for planning, scheduling, and
carrying out projects when it is used in conjunction with a Gantt chart that combines
work breakdown structures (WBS) levels and task hierarchies. Project manager is an
online work management software that includes industry-leading project
management features such as Gantt charts, kanban boards, sheets, and more. Project
manager is accessible from any internet-connected device.

2.2.1 Uses of WBS In Project Management

The first stage in constructing a project schedule is to create a WBS (work

breakdown structure). It outlines all of the tasks that need to be completed (and in
what sequence) in order to accomplish the goals and objectives of the project.
Through this method of visualizing your project, you will be able to comprehend the
breadth of your project and allot resources appropriately for each of your project's
activities. A well-constructed work breakdown structure may assist with significant
process groups and knowledge areas related to project management, such as the
following: Planning the project, scheduling the project, and allocating funds for the
project Management of Risk, Management of Resources, Management of Tasks, and
Management of Teams all go hand in hand.

In addition, a WBS assists in avoiding typical problems associated with project

management, such as missed deadlines, expanding scope, and cost overruns, to name
a few. In other words, a work breakdown structure acts as a guide for you to follow
when navigating complex tasks.

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The scope of your project may comprise a number of phases or numerous

smaller sub-projects; even these smaller sub-projects, however, may be broken down
into tasks, deliverables, and work packages! Your WBS may assist you in managing
those things and providing insight into the specifics that are required to successfully
complete each component of the project scope.

2.2.2 Work Breakdown Structure

Let's have a look at an example of a work breakdown structure now that we've
discussed what a WBS is and why it's a useful tool for managing projects. First, let's
go over the definition of a WBS. For the purpose of our Work Breakdown Structure
(WBS) example, we will be developing a work breakdown structure in order to map
out the work plan for a construction project including a commercial building. A WBS
chart will take this potentially difficult project, reduce the scope of the project so that
it consists of more manageable tasks that are less complicated, and make the project
more manageable overall.

Figure 2.2: The phase-based work breakdown structure

Your ultimate output (in this case, the building project) is placed at the very
top of the work breakdown structure. The next level of the WBS is just behind that,
and it consists of the primary project stages that must be completed in order to finish
the project. The work bundles are shown on the third and lowest level.

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WBS charts typically contain three levels, however the number of levels may
be increased to accommodate more complicated projects if necessary. Each of these
five project phases—initiation, planning, execution, control, and closeout—also
functions as a control account and branches off the primary deliverable at the top of
the hierarchy. After this has been determined, we proceed to divide them into a
number of deliverables. For instance, the task of evaluating the location and
developing the project charter are both included in the start phase.

In addition to those project deliverables, you will also require a work package
for each one of them. During the period of our building project when we are
responsible for execution, we may examine the interior work deliverable. This
deliverable is broken down into two work packages, which include putting in the
plumbing and putting in the electrical work, respectively. When it is developed with
as much attention to detail as possible, the WBS serves as the road map that directs
you toward the successful conclusion of a project whose scope seems to be extremely
intricate. When a WBS is used, however, the planning of a project, its scheduling,
and its resource allocation all become much more manageable.

2.2.3 Types of WBS

The deliverable-based WBS and the phase-based WBS are the two primary
varieties of WBS. They are dependent on whether you choose to split the project in
terms of time or in terms of scope.

Deliverable-Based Work Breakdown Structure

Figure 2.3: Deliverable-Based WBS

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 Project Management

A focus on the delivery of The Work Breakdown Structure (WBS) first

dissects the project into all of the significant aspects of the project scope that are
control accounts, and then further dissects them into project deliverables and work
packages. An example of a deliverable-oriented WBS that outlines the control
accounts, work packages, and tasks.

Phase-Based Work Breakdown Structure

The ultimate product is shown at the top of the phase-based WBS, while the
WBS levels below represent the five stages of a project: initiation, planning,
execution, control, and closeout. The stages of the project are broken down into
project deliverables and work packages, just as they are in the WBS that is based on
the deliverables. In the preceding picture, located in the "Work Breakdown Structure
Example" section, there was an example of a WBS that was built on phases.

2.2.4 Types of WBS Charts

After deciding whether your WBS will be based on phases or deliverables, you
will next have the opportunity to choose from a variety of WBS diagrams. Let's have
a look at the many kinds of work breakdown structure charts that are available.

Work Breakdown Structure List

This is a summary of the work packages, tasks, and deliverables that make up
the project. This is likely the quickest way to create a WBS, and in certain cases, that's
all that's required. The most common form of WBS depiction is a tree structure
diagram, which is an organizational chart consisting of the same WBS elements as
the list (phases, deliverables, tasks, and work packages), but which instead depicts
the workflow or progress in a graphical format.

Work Breakdown Structure Gantt Chart

An Excel spreadsheet and a timeline in one, Gantt charts have many uses. A Gantt
chart, a kind of WBS, is more flexible than a simple list of tasks or a tree diagram. A
dynamic Gantt chart allows you to establish a baseline, connect dependencies, and
specify milestones. Most project management applications use this version.

2.2.5 WBS Elements

There are a few standard parts that make up a project's work breakdown structure. To
determine the various components of a WBS, we'll utilize the one we just created.

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WBS Dictionary: A WBS Dictionary is a reference guide that explains what

each component of a WBS is. It's a crucial feature of a WBS since it clarifies
the language used in the WBS for all parties involved in the project.
WBS Levels: A WBS element's hierarchy is set by the levels at which it
operates inside the WBS. Most WBSs have three levels, with the top level
representing the project's principal deliverable and the below two levels
representing control accounts, project deliverables, and work packages,
respectively.
Control Accounts: Packages of work may be organized and their progress
tracked using control accounts. You may use them to limit the extent of certain
aspects of your project. Several deliverables and work packages are linked to
the execution project phase in our example, thus it might serve as a control
account.
Project Deliverables: Deliverables for a project are the finished products that
are expected to result from its tasks and work packages. Within the context of
our WBS illustration, we are able to recognize many kinds of project
deliverables, including the project budget and the interior work. Both of them
are the culmination of a series of earlier endeavors and work bundles.
Work Packages: "lowest level of the WBS" is what the project management
institute (PMI) refers to when it calls a work package the "lowest level of the
WBS" in its project management body of knowledge book (PMBOK). This is
due to the fact that a work package is comprised of a collection of
interconnected jobs that are sufficiently manageable to be delegated to a
specific team member or department. Because you, as the project manager,
have the ability to estimate the prices and duration of these work packages, the
WBS component that they belong to is vital.
Tasks: Your work packages, and therefore the scope of your project, are
comprised of your tasks. A WBS will assist you in defining the requirements,
status, and description of each job, as well as the task owner, dependencies,
and length of each work.

2.2.6 Work Breakdown Structure In Six Steps

You will need the information included in the other project management papers in
order to develop a WBS for your project. The creation of a work breakdown structure
may be accomplished in six easy stages, which are shown below.

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Define the Project Scope, Goals and Objectives

Your project's goals and objectives serve as the guiding principles for determining
the scope of your project. On your project charter, you should describe the project's
scope, as well as the members of your team, your goals, and your objectives.

Identify Project Phases & Control Accounts

The next step down is the project phases: divide the bigger project scope statement
into a set of project phases that will carry it from its inception to its conclusion. You
also have the option of creating control accounts, which are essentially task categories
that may be assigned to a variety of work areas that you want to monitor.

List Your Project Deliverables

What exactly is the deliverable for your project? Create a list of all of them and make
a note of the work that has to be done in order for those project deliverables to be
considered to have been successfully provided (sub-deliverables, work packages,
resources, participants, etc.).

Set WBS Levels

According to the definition provided by the Project Management Institute in its

Project Management Body of Knowledge book (PMBOK), a work breakdown
structure is referred to as a "hierarchical deconstruction of your project scope"
because of its levels of work breakdown structure (WBS). You will need to begin
with the deliverable that will be completed at the end of the project and move
backwards through all of the work packages and other deliverables that will be
required to get there.

Create Work Packages

You should take the deliverables that were listed above and dissect them into each
and every task and subtask that is required to successfully deliver them. Those should
be grouped into work packages.

Choose Task Owners

Now that the tasks have been outlined, it is time to delegate them to the team working
on the project. Provide every member of the team with the work management tools,
resources, and authority they need to successfully complete the task at hand.

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2.3 COST ESTIMATING AND BUDGETING

Having the required amount of personnel and supplies, both of which need
financial investment, is very vital for the project to be successful. The process of
calculating the overall cost of the project is what is meant by the term "cost
estimation" when it comes to the management of projects. To a large extent, the
precision of the cost estimate will be determined by the level of specificity and
accuracy with which the project scope, which is the scope baseline, is described. The
scope is very important for a variety of reasons because it sets the limits, which
include the timeline, the money, and the resources.

To put this another way, the cost estimate provides an indication of how much
money the project is expected to cost, while the aim of this procedure is to finish the
task while staying within the parameters of the project scope. Using software like
ActiveCollab may assist you in keeping track of your projects and allow you to
automatically collect data as you complete work on them. Customers are able to more
easily manage profitability and time, estimate expenditures and create budgets, and
generate invoices with the assistance of this fantastic application that comes equipped
with a wide variety of useful functions.

2.3.1 Cost Estimation in Project Management

You may accomplish cost estimating with the assistance of a few simple
methods. However, in order for any of these strategies to be successful, it is vital to
have up-to-date data on prior projects, in addition to the needs that are now being
worked on. Your work will be made substantially easier by using software like
ActiveCollab, which will bring all of this data together.

Bottom-up estimation: The most accurate method for predicting costs, this
approach begins with the deliverables of the project being broken down into
individual work packages. Each bundle is comprised of a certain number of
responsibilities. The team working on the project will first determine how
much it will cost to complete each individual job, and then they will total up
all of those individual prices to arrive at a definitive estimate for the overall
project.
Top-down estimation: When creating estimates for a new project, historical
costing, also known as a top-down estimate, places a greater emphasis on using
data from previously completed projects. When a corporation consistently
works on projects that are comparable to one another, it is simple to find a
parallel between the related expenses and deliverables.

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Parametric estimation: In order to use this strategy, you will first need to
divide the project into work units and determine the cost associated with each
work unit. Multiplying the cost of one unit by the entire cost will give you an
idea of the whole cost.
Three-point estimation: It evaluates the cost from three distinct viewpoints,
namely optimistic, pessimistic, and the most likely one, using a variety of
different formulae.

2.3.2 Time and Cost Estimation in Project Management

Know your team's job responsibilities and skills: The most of the time, the
initiative is solely concerned with statistics, while completely ignoring
humans. Techniques for accurately estimating projects that are successful are
founded on solid working relationships. It will be much simpler for you to
assess the work that your team members produce if you have a greater
understanding of their processes.
Know how the PM process works: After you have determined who is
responsible for what and how it is done, it is time to move on to the next step
of your project estimating, which is to get a knowledge of the process by which
work is completed in your firm or organization. For instance, many businesses
place their emphasis on methodologies such as waterfall or agile. You are the
one who has to investigate one of these processes, figure out how everything
is dependent on one another, and then proceed with your estimations.
Review the latest trends and estimation techniques: Things are going to
change, regardless of the work position you have. In addition, if you want to
make a career out of project management, you will constantly need to be up to
date on the deliverables, changes, and trends that are happening in your
business. Although dealing with this might be difficult at times, it is essential
to your success as a project manager.
Use historical data to your advantage: Historical data may be analyzed by
project managers in order to get more accurate projections.
Set up a questionnaire to improve cost estimation: When dealing with RFPs
or soliciting proposals, you should be prepared with every little detail in order
to develop an estimate that is both practical and accurate.

2.3.3 Project Budgeting

The terms "budgeting" and "cost estimates" are sometimes used

interchangeably, however it is important to keep in mind that these two concepts are
distinct from one another and should not be used in the same context.

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The project budget is formed from the schedule and cost estimates; as a result,
you should first concentrate on the cost estimate and then proceed to the budget. Now,
in order to define this phrase even further: The budget provides an overview of the
overall costs associated with the project from both a periodic and overall point of
view. To guarantee that sufficient funds is allocated toward the project, the budget
has to be kept within the financing restrictions. It is what decides the overall sum of
money that will be invested in the project. Creating a budget serves four different
purposes:

Plan: The budget serves as a blueprint for how you want to spend the specific
amount of money that you anticipate receiving.
Track expenditure: Keeping track of your expenses and the bills that need to
be paid means giving your budget a chance to succeed.
Manage money needs: A budget is an essential tool for effective money
management. At the same time, it assists you in achieving the monetary
objectives that have been set for your corporation.
Improve: When everything is laid out well, your budget may assist you in
achieving a number of different goals for your business, including the
elimination of debt, the improvement of working conditions, the acquisition
of more customers, and the completion of successful projects.

2.3.4 Importance of Cost Estimation in Project Management

Estimates of costs serve as the basis for both the planning process and the
evaluation of whether or not the project can achieve its goals.

More precise planning: In order to successfully finish your assignment, you

will need to precisely anticipate the resources and the tasks. This provides you
with further assistance in following the timetable for the project, assigning
jobs and projects to your personnel, and breaking down the calendar.
Better profit margins: During the course of a project's lifespan, a rise in costs
may result from factors such as inflation, inadequately scoped work, or
unanticipated occurrences. Because of this, having an accurate estimate will
maintain the margins of your earnings.
Improved resource management: As soon as you have gained a better
understanding of the timetables and tasks required to finish the job, you will
be able to guarantee that the members of your team has the appropriate abilities
needed to finish each deliverable.
Strong client relationship: Your customer has to be aware of the "why"
behind the costs associated with every project. If this occurs, they will be more
inclined to believe your estimate and anticipate modifications as the project

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moves forward, which will help you develop a stronger working relationship
with them.
Great reputation and more work: When you successfully complete projects
on schedule and under budget, you get a large number of satisfied clients who
have faith in your abilities as a business and are eager to collaborate with you
again.

2.4 PROCESS

Step 1. Plan for Cost Estimating and Budgeting: "Planning" for cost
estimating and budgeting is the first step in the process of developing an
accurate cost estimate. At this point, you make the decision on the kind of
estimate that is going to be associated with the stage of the project's
development. You will be constructing project breakdown structures,
identifying key cost driver qualities and linkages, gathering the information
for pricing the estimate in terms of the current market circumstances, and
defining the overall estimating methodology that will be used in your estimate.
All of these tasks will be part of your estimating process.
Step 2. Quantify the Scope: The "quantification" phase is the following stage
in the process of cost estimate after the first step.In the quantification process,
you will convert the technical scope papers that have been created by the
engineers and designers into the quantities of materials (Material Take-offs)
and labor activities to which you will assign price when you create your
estimates.After that, you must apply the basic default costs to the scope of the
project and then proceed to cost your estimations.
Step 3. Price the Cost Estimate: The next stage is "pricing" the cost estimate,
which refers to the process of altering the default costs for the specific
characteristics of the site, commercial space, or other project. You will be able
to minimize expenses while staying within your estimate if you follow certain
iterative stages.
Step 4. Develop Control Budgets: At some point in time, you will need to be
capable of translating the cost estimate into control budgets in order to support
Project Controls and particular contractual needs.
Step 5. Review, Validate, and Document the Cost Estimate: Reviewing and
validating the estimates while taking into account the potential risks and
unpredictability of the outcome is the last phase in the process of estimating
costs.

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2.5 SUMMARIES

A project summary is a document or portion of a bigger document that

provides an overview of the proposed project in a manner that is both thorough and
succinct. It should include critical facts about the project. In addition to this, it
provides an overview of the project's goals, as well as some background information
to help put the project into perspective, as well as requirements, difficulties, and an
analysis. Finally, it draws a conclusion. Although the project summary may exist on
its own or serve as a prelude to other kinds of project documents, its primary function
is to serve as an introduction for the project proposal. As was said, a project overview
has to capture the attention of the reader. The project summary has to captivate you
in the same way that a good beginning line in a book does in order to keep you
reading, and it needs to do this all the way through the proposal.

If it is done correctly, the project summary will guide the customer through
the project proposal; after they have finished reading it, they will provide their
approval for the job. It is helpful to have all of the paperwork stored in software
designed for managing projects so that you can simply convert the project overview
into a project plan. Project Manager is web-based software for managing projects,
and it has limitless file storage to serve as the central repository for all of your project
documents. If you gather the project proposal in our list view, it is simple to switch
to the Gantt chart, where you can easily make a visual timetable on a timeline. If you
do this, you will have access to all of the information you need.

A project summary need to be concise, but you don't want to skimp on the
project or fail to provide the summary with sufficient space to convince the customer
or stakeholder that the project would be beneficial. You will want to steer clear of
jargon as well as anything that is sensitive or proprietary, such as trade secrets. Use
sentence structure that is simple and straightforward. The project overview shouldn't
be too complicated for everyone to understand.

2.5.1 Contents of project summary

Project Information

You will start by providing a high-level overview of the project, including the
following information:

Project name
Project manager
Project sponsor
Date

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Project Schedule

The timetable for the project is a chronological timeline that outlines the project in
order from its commencement to its conclusion. On that timetable are listed the
actions and tasks that need to be carried out in order to complete the final deliverable
for the project. This encompasses the dates, the length of time, the milestones, and
any and all deliverables. Even if you don't have to be as detailed as you were while
preparing your project plan, you still need to provide a concise summary.

Project Budget

Although the budget is not a precise prediction of the expenditures involved in the
project, since it is often included in the timeline for the project, it is still an essential
component and should be included. You should provide some financial predictions
to demonstrate how much money the project will cost and what kind of return you
anticipate getting from it. Having a baseline for the budget is also important.

Resource Plan

You are going to want to offer a list of resources as a way to further assist stakeholders
in understanding the project. The term "resources" refers to everything that is required
to finish the project. This covers the crew working on the project as well as the
supplies, equipment, and so on.

Risk Management Overview

Every undertaking comes with its own set of inherent dangers. The stakeholders want
to know what risks you have identified as having a potential to exist in the project,
what effect those risks will have, and how you plan to minimize them. This covers
obstacles and hurdles, as well as anything else that will have an effect on the project's
scope, cost, and timeline. Provide a high-level overview of your strategy for risk
management. If the project is accepted, you will be able to go into more detail.

2.5.2 Writing a Project Summary

Although the project overview is required to be concise, the research conducted was
somewhat detailed. If you want to ensure that your work is complete, follow these
procedures.

Talk to Your Team: There is not a single individual on the planet who is
capable of tackling the issues posed by a project overview. It is essential that
you assemble the team working on the project. They are the ones who will be

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responsible for the actual execution of the project, so to say at the front lines.
They are qualified in both knowledge and expertise. When doing research for
the project, you may use them as a resource.
Know Your Audience: In order to persuade stakeholders of the importance
of the project, the research is an essential component. The second aspect is
how you display the information. You need to communicate in a way that the
stakeholders can understand. If you're speaking to a customer as opposed to a
stakeholder, you should adjust not just the tone of your voice but also the
words that you use. This is particularly true with regard to the business sector.
You are going to approach construction quite differently from manufacturing
or information technology.
Define Your Objectives: You will want to make it very obvious what the goal
of the project is, as well as the criteria for determining whether or not the
project has been completed effectively. Because of this, you will need to
provide the metrics that you will use to evaluate the project. You also need to
be familiar with the project's purpose, which is analogous to the mission
statement.
Write Your Project Summary: Collaborate with your group to produce a
project overview that is both clear and succinct. Check to ensure that you have
all of the components that were described before in this sentence. Remember
to check the project summary for any grammatical or spelling errors before
submitting it, since they might give a very unprofessional impression.

2.6 SCHEDULES AND FORECASTS

A schedule forecast is an estimate of the amount of time that will be required

to finish a project based on the information that is available at a certain point in time.
It is imperative that the person responsible for generating the timetable never uses
random guesswork. Instead, while producing their forecasts, they make use of a wide
array of tools and sources of information and then modify those predictions as the
project progresses and the criteria change.

Accurately estimating the length of time it will take to complete the project is
critical to the success of both the project and the project manager. Once the project
has begun, several things might occur that could put the workflow in jeopardy. If the
projection is wrong by a significant amount, the project could have to be scrapped or
left unfinished if the employees are unable to fulfill the deadlines or provide the
required deliverables. The use of forecasting provides project managers with extra
advantages as well. It assists you in planning for unforeseen circumstances that may
cause the project to deviate from its intended path.

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You may specifically enhance decision-making and cash flow planning, cut
expenses, and discover gaps in resource availability as well as dangers that might
slow down the process. In order for project managers or those who have the PMP
certificate to be successful in keeping their projects on time and under budget, one of
the most crucial skills they need to learn is the ability to comprehend the schedule
prediction.

2.6.1 Creating Schedule Forecasts

The use of these three essential elements is what makes schedule projections possible:
the project baseline, the task dependencies, and the snapshot baselines. The project
manager is responsible for taking into account the deadlines, determining if different
tasks may be worked on concurrently or whether they need to be done in phases, and
analyzing how the work develops during the project. A number of different methods
of forecasting are used by project managers, including the following:

Trend analysis. Utilizing data from completed projects in the past to make
educated guesses about what is required for the present one is how this method
works. It is necessary to have some familiarity with both initiatives in order to
make an informed decision on which historical tendencies are more applicable
to the present situation. This provides you with a very approximate
approximation of what may occur; thus, you should be prepared to alter
forecasts as you acquire new data during the course of the project.
Time series analysis. When broken down into its constituent parts and
analyzed from a variety of angles, historical data often reveals hidden insights
that were previously obscured. via the use of time series analysis, you are able
to examine historical project data via arbitrary fluctuations, such as seasonal
patterns. Your ability to accurately predict outcomes and identify the many
elements that influence those results may both be improved with this
information.
What-if scenarios. The use of a "what-if" scenario is a great technique for
gaining a better understanding of the interactions that exist between people
and tasks, as well as how these factors influence one another. You may, for
instance, think about the ways in which increasing the amount of money that
employees get for completing jobs might enhance productivity, as well as the
ways in which increasing production can influence quality as a whole. With
the help of this tool, you will be able to examine a variety of outcomes, and it
will also provide a structure for describing these potential results to
stakeholders.

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2.6.2 Factors That Can Affect Schedule Forecasts

The most difficult part of schedule forecasting is figuring out which aspects of the
project will have an impact on the timeline. Some of these characteristics are more
straightforward to identify than others, and it's possible that they'll shift in some way
as the project moves on. During the course of the project, for instance, a vital piece
of machinery might develop a fault. It is possible that the work will come to a halt
until the staff finds a substitute. When developing a prediction for a timetable, here
are some additional considerations to take into account:

Data accuracy: If the statistics are inaccurate, then the prediction will be
inaccurate as well.
Experience: The more experience you have working with a timetable
prediction, the simpler the process of dealing with them will become. If you
are working in the area of project management, for example as a qualified PMP
or PMI-SP, you should anticipate working with a planned forecast.
Project type: When compared to other projects, some are more difficult to
timetable than others. A project that, for instance, calls on employees with
specific skills, specialized equipment, or materials whose prices are
susceptible to dramatic changes may not be as straightforward to forecast.
Project complexity: A work that consists of numerous dependent tasks might
be more difficult to predict than one that does not because problems with
earlier tasks can have impacts that ripple through the remaining activities.
Update frequency: If you postpone the updating of the schedule prediction
for too long, you may wind up having to spend time going through an
excessive quantity of data, which will slow down your capacity to make
judgments. It should become routine practice for all professionals who are
responsible for managing project schedules, such as PMPs and PMI-SPs, to
keep their schedule prediction up to date.
Detail level: The longer the forecast takes to create and the more effort it takes
to keep it accurate, the more information you put in it.
Use of probabilistic methods: Businesses who make use of probabilistic
approaches for predicting experience a return on investment that is much
higher than that of their competitors.
Resource availability: Whether or not you have access to the resources you
need to finish the project will have a direct impact on how fast and when it can
be finished.
Number of workers: The amount of time required to finish a project is
impacted not just by the quantity of personnel you have, but also by the
degrees of competence and knowledge they possess.

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Project location: The geographical setting of a project may bring additional

environmental and regulatory considerations into play. For instance, the rules
of a particular state or municipality may prohibit some activities or demand
extra measures, such as obtaining a permission, in order to carry out work in a
particular location.
Economic climate: The health of the economy may have an impact on the
prices of raw materials, the challenges faced by supply chains, and the labor
force that is accessible.

2.7 MANAGING RISKS

There are a total of five stages involved in the process of risk management:
identifying, analyzing, evaluating, treating, and monitoring. You may lessen the
negative effects of risks by avoiding them, embracing them, lowering them, or
transferring them to another party. When it comes to managing projects, a risk is any
probable occurrence that could have an effect on the project, either favorably or
adversely. The act of recognizing potential adverse occurrences and devising
responses to them either before they occur or while they do so is known as risk
management. Risk may manifest itself in a variety of ways, including the illness of
an employee, adverse weather conditions, unanticipated financial expenses, and
delays in transportation. Inherent dangers are there in any project. Project managers
are consequently required to have one of the most critical talents, which is the
capacity to guide a project through risk.

2.7.1 Types of project risks

The amount of time and resources needed to finish a project may be directly impacted
by the risks that the project faces. There are two types of risks: internal, which are
those that are within the control of the project team, and external, which are those that
are not under the control of the project team. Take into consideration the following
categories of dangers and examples:

Dangers to the company's finances, including but not limited to: price hikes,
erroneous budget projections, growing prices of labor and supplies, stagnant
sales, and difficulties in acquiring funds.
Strategic risks are the outcome of mistakes in strategy, such as basing efforts
on a corporate culture that needs updating, suffering high personnel turnover,
investing in technology that is difficult to use or costly to use, or picking a
project management approach that doesn't work for the project.
The failure of team members to meet deadlines, delays, unclear objectives and
key performance indicators (KPIs), the use of inadequate or out-of-date market

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research, and scope creep (the process by which initial aims grow or change
away from a project's original intentions) all contribute to performance
hazards.
External risks are those that are not within the control of the project team, and
they include things like changing laws and regulations, market volatility,
severe weather, missed deadlines by vendors, labor strikes, civil unrest,
vandalism or destruction, and challenges with supply chain management.
good risks (opportunities) are unanticipated occurrences that have a beneficial
impact on your project. Some examples of good risks (opportunities) include
accomplishing work sooner than predicted or under budget, surpassing initial
targets, becoming more efficient with a new technology, or benefiting from a
change in policy.

2.7.2 Managing project risk

If you want to be able to achieve effective project results, it is vital to have a

solid understanding of typical risk management methods as well as risk reduction
measures. The process of risk management will assist you in planning for and
preparing for potential hazards, and mitigation techniques will provide you with the
tools necessary to cope with these risks in the event that they materialize. The risk
management process, also known as the risk management lifecycle, is a methodical
approach to addressing any problems that may arise with your project. The process
of risk management, also known as the lifecycle, typically consists of the phases that
are outlined in the following paragraphs, despite the fact that there are a few
exceptions. This method may be used to both positive and negative risks, depending
on the context.

Identify risks

The first thing you need to do in order to get a handle on prospective dangers
is to have an understanding of what those risks really are. During this stage of the
process, you will identify specific risks that have the potential to impact your project
by compiling a list (or spreadsheet) of potential problems that might occur. The
implementation of a new technology program for the project, having a project goal
or deliverable that is not well defined, and not having enough procedures in place to
protect the health and safety of members of the project team are all examples of
frequent hazards associated with projects. Make use of your own knowledge and
experience in project management, and research other projects that were similar in
nature to determine what kinds of obstacles you may anticipate.

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Analyze potential risk impact

During the stage of risk analysis, you will investigate not only the likelihood
that each risk will materialize, but also the possible consequences that each risk may
have for your project. A risk register is a chart that sets out each risk, followed by
information such as the priority level and mitigation measures. You might start the
process of placing this list of hazards in a risk register. You have the ability to capture
qualitative as well as quantitative information.

Assign priority to risks

At this point, you will give priorities to the risks that have been identified by
determining the risk levels of each risk based on the likelihood and effect of each risk.
This entails giving a high, medium, or low priority to each risk depending on the
elements that you've identified as being relevant. Your team will have the opportunity
to understand where they should concentrate their efforts on risk mitigation if they
take the time to evaluate your risks.

Mitigate risks

Develop a strategy to address each risk, and then make a note of these strategies
in the risk register you've created. What exactly does it mean to mitigate risk? Risks
may be minimized in a number of ways, the most popular of which are to avoid them
altogether, accept them, reduce them, or transfer them to another party. You'll need
to use your judgment and experience to figure out which strategy is the most
appropriate for each risk, since this is not an exact science and there are several
potential solutions to each problem.

Avoid: Even while there are certain dangers that can't be avoided, it's still
smart to stay away from them whenever you can. If there is a significant
possibility that a danger may materialize, you should steer clear of taking that
risk. Is there a partner vendor that has developed a reputation for doing work
of a poor quality? Make an effort to locate a different one. Are you making
preparations for an event during the wet season? The event should be moved
either inside or at a time of year with more sunshine.
Accept: When it comes to your project, accepting risks that have a low
likelihood of occurring and will have a minimal effect on the project might
make sense. In the end, even if the danger materializes, it should not be enough
to ruin your project. Consider that you have placed an order for sunflower
arrangements to be used at a wedding reception, but the florist has informed
you that there is a possibility that they may not have enough and that they will

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need to substitute part of the sunflowers with tulips. In light of the fact that the
likelihood of anything going wrong is minimal and the fact that the wedding
won't be ruined if tulips are used instead of sunflowers, you can decide to take
the chance rather than go through the trouble of finding another florist.
Reduce: Changing aspects of your strategy so that the risk's likelihood of
occurring or its potential effect on your work is reduced is what we mean when
we talk about risk reduction. Both moderate and high risks are ideal candidates
for risk mitigation. In most cases, cutting down demands some kind of effort
or financial expenditure. If a project manager notices that his or her team is
lagging behind on work, for instance, the manager may decide to add
additional members to the team. It's possible that this may need you to include
risk-mitigation strategies into your overall project strategy. Creating time
buffers for difficult or time-sensitive jobs might provide you some wiggle
room in the event that you start falling behind on your work. Having a separate
budget set out for emergencies or other unforeseen expenses may be really
helpful.
Transfer: The act of moving a risk away from one's own project and onto
another entity is what is meant by "transferring risks." This may include
purchasing an insurance policy or delegating some aspects of the task to a third
party for completion. Even if the danger materializes, the direct effect it has
on your project will be mitigated by someone or something that is not
associated with your project.

Monitor risks

As a last stage, you should establish a procedure to monitor each risk as the
project gets underway. You can guarantee that you will have a continual
understanding of where the risks are and how likely they are to happen by assigning
members of your team to keep an eye on particular risks and find ways to minimize
them. This will allow you to be prepared to deal with them if they do arise.

2.8 CONCEPTS

Any unforeseen occurrence that may have a positive or negative impact on your
project is considered a risk. Anything, including people, processes, technologies, and
resources, is susceptible to risk. It is essential to keep in mind that dangers are not the
same thing as problems in any circumstance. Problems are problems that you are
aware you will have to solve, and you may even have a good notion of when they
will arise. For example, a team member's planned vacation or a significant increase
in product demand during the holidays are both examples of issues.

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Risks are occurrences that might take place, but you may not be able to predict
when they will take place. For example, the flu season could strike your staff all at
once, or an essential product component could be on backorder. When establishing
what constitutes a risk in project management, these five factors should be taken into
consideration:

Risk event: What are some of the things that may go wrong with your project?
Risk timeframe: When do you think it will most likely take place?
Probability: What are the odds that anything like this will take place?
Impact: What kind of results are to be anticipated?
Factors: What other occurrences could serve as a warning or as a catalyst for
the risk event?

2.8.1 Taking Risk Into Account When Making Decisions

When making strategic choices, it is necessary to take into consideration the

possible risks involved, as well as the influence such risks might have on the
organization's goals. In order for companies to successfully integrate risk into
decision-making, they need to have a crystal clear awareness of both their risk
appetite and their risk tolerance levels. In other words, they need to establish the
threshold at which the organization is ready to tolerate the risk and the threshold at
which it may become necessary to take preventative measures.

In addition, businesses have a responsibility to guarantee that the process of

risk management is ongoing and involves collaboration. This requires ensuring that
risk is considered at each level of the decision-making process and that important
stakeholders are included in the process. Risk matrices and other assessment methods
like them may help prioritize and classify risks in line with their probability and
effect. When companies include risk into their decision-making processes, they are
able to make choices that are more informed and that take into consideration the
possible effect such decisions might have on their operations as well as their overall
performance. Incorporating risk into decision-making is ultimately one of the most
crucial aspects in building a successful and effective program for risk management.
Organizations are able to reduce possible risks and maximize potential benefits if they
give consideration to risk and how it influences decision-making. They will be better
able to construct a wealthy and secure future as a result of this.

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2.8.2 Strong Risk Management Culture

A robust risk management culture is essential to accomplishing effective risk

management. This encapsulates the culture of a company that places a high value on
risk management, accords it the highest priority, and acknowledges the significance
of incorporating risk considerations into every facet of the business. A senior
leadership team that demonstrates a commitment to risk management and leads by
example is the foundation of a robust risk management culture. This involves
encouraging a culture that is conscious of risks, allocating resources, and putting an
emphasis on the significance of risk management as a decision factor.

In addition, firms have an additional obligation to include all of their workers

in the process of risk management. This involves giving employees the knowledge
and training they need to be able to recognize and evaluate potential hazards. In order
to cultivate a robust culture of risk management, it is essential to promote open
channels of communication and departmental collaboration. Organizations have the
ability to lessen risks, expand possible benefits, and create a more secure and
prosperous future for themselves if they cultivate a robust culture of risk
management. Having a strong risk management culture may also help firms adapt
successfully to unanticipated occurrences. This is because all staff members
understand the importance of risk management and how to respond to it.

2.8.3 Risk Disclosure

The effective management of risk relies heavily on open communication as a

central tenet. Educating individuals of possible dangers and the impact those dangers
might have on an organization's objectives and day-to-day operations is an essential
part of this process. When organizations exchange risk information, they are able to
make better choices, concentrate their efforts on risk management, and communicate
with stakeholders in a more productive manner. In order for companies to
successfully disclose risks, they need to have a comprehensive knowledge of the risks
they face, including the chance of those risks occurring and the possible repercussions
of those risks occurring. Everyone who has a stake in the company, including top
management, workers, investors, consumers, and regulators, has to be able to
comprehend this information.

In order for enterprises to share this information in an efficient manner, they

need to have a solid risk management framework in place. This includes not only the
processes for collecting and distributing information regarding risks, but also the
methodologies for detecting, analyzing, and ranking them in order of importance.

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Additionally, organizations are obligated to be transparent on the methods for

risk management and safety safeguards that they have in place. By successfully
conveying risk information, organizations are able to coordinate their efforts in risk
management, make choices based on accurate information, and connect with various
stakeholders. As a consequence of this, the connections that companies have with
their stakeholders become better, which ultimately leads to increased future success
and safety.

2.8.4 Continuous Risk Management Improvement

It is important for the risk management procedures of a company to undergo

continuous improvement so that they can continue to be relevant and successful. The
process also involves locating potential dangers and devising plans to neutralize
them, in addition to keeping tabs on them and analyzing them. The risk management
process may be improved to assist businesses better manage risk, which in turn helps
organizations minimize possible damage and enhance potential rewards. This may be
performed by carrying out frequent internal audits, performing an assessment of the
risk management processes, and integrating input from stakeholders into the
procedures themselves.

In addition, for organizations to be capable of continual improvement, a robust

risk management culture is required. This involves the engagement of workers in the
risk management process as well as the senior leadership's dedication to risk
reduction. In addition, businesses need to ensure that they have sufficient cash,
human, and technology resources for risk management. If businesses wish to continue
continuous improvement, they must be proactive in detecting and analyzing new risks
as they develop. Only then can they maintain this level of excellence. In order to
accomplish this goal, the methods for risk management will need to be revised so that
they take into account developments in technology, shifts in market dynamics, and
modifications in regulatory requirements. To conclude, companies that wish to
operate with as little risk as possible while maximizing the potential advantages must
continually work to improve their operations. By constantly assessing and upgrading
risk management processes, we can keep them up to date and ensure that they
continue to be relevant. This will ultimately lead to a more prosperous and safe future.

Integration of risk management into a company's management system is

required in order to guarantee that the system is adaptive, dynamic, and able to react
to changes in the business environment. The more experience an organization has in
risk management, the more complex the decision-making tools it will develop as a
result of that expertise.

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2.9 IDENTIFICATION

Identifying hazards may be done in a variety of different ways. It's possible that
those in charge of managing projects may wish to employ more than one of these
approaches. For instance, at one of the weekly meetings that the project team has,
they may go over a checklist, and then during the next meeting, they may go over
their assumptions. The following are seven of my preferred methods for identifying
potential risks:

Interviews. Choose the most important stakeholders. Organize the interview

process. Specify the queries that need answering. The outcomes of the
interview should be documented.

Brainstorming. I'm not going to walk you through the steps of how to
brainstorm here. Having said that, allow me to propose the following.
Questions for your brainstorming session should be planned out in advance.
The following is a list of questions that I like to use:

○ Project objectives. What are the most important risks that are
associated with [the project goal, which may be the timeline, budget,
quality, or scope]?

○ Project tasks. What are the most important dangers connected with
[activities like requirements, coding, testing, training, and
implementation]?

Checklists. Check to see whether your organization has a list of the most
typical dangers to look out for. If there isn't one already, you should probably
make one. Following the completion of each project, you should carry out a
post evaluation in which you list the most important risks. This list can come
in handy for initiatives that come after this one. Caution: checklists are helpful
tools, but no checklist can capture every potential hazard.

Assumption Analysis. A project assumption is defined by the Project

Management Body of Knowledge (PMBOK) as "factors that are considered to
be true, real, or certain without proof or demonstration." The making of
assumptions might expose one to danger. The question, "What Assumptions
Do You Have Concerning This Project?" should be posed to stakeholders by
project managers. In addition, these assumptions and the risks connected with
them should be documented.

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Cause and Effect Diagrams. The chain of causality Diagrams have a lot of
power. The basic procedure described here may be used by project managers
to assist in the identification of causes, or the facts that give birth to hazards.
Furthermore, if we address the causes, we may lessen or perhaps do away with
the hazards.

Nominal Group Technique (NGT). There are a lot of project managers out
there who have never heard of the NGT approach. It is similar to brainstorming
but more intense. The input is gathered and ranked in order of importance. The
results of NGT are presented in the form of a ranked list of hazards.

Affinity Diagram. This method is an activity that is not only entertaining but
also healthy and innovative. The participants are being prompted to think
about potential dangers. I give each participant a post-it note and ask them to
jot down each danger. The participants will next classify the dangers into
several categories or groupings. In the last step, a name is assigned to each of
the groups.

2.10 RISK ASSESSMENT

The term "risk assessment" refers to a procedure that involves systematically

locating, evaluating, and mitigating the many threats that may be present. A
knowledgeable individual is accountable for deciding which preventative measures
are now in place, or need to be, to eliminate or mitigate risk in the workplace in
response to any and all scenarios that might possibly arise. These assessments help in
the identification of these inherent risks and provide countermeasures, processes, and
controls to decrease the detrimental consequences that they have on the operations of
the firm.

Need for Risk Management

The project risk management strategy covers the process that lies behind risk
management, and the risk assessment meeting enables the project team to identify,
classify, prioritize, and mitigate or avoid these risks prior to the start of the project.
The technique known as risk management includes an evaluation of the risks
involved. The process of determining the level of danger posed by a specific
circumstance and an identified danger is called risk assessment. Risk assessment may
be done quantitatively or qualitatively. An important part of assessing risks is
determining the likelihood that such risks will actually materialize.

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However, in any project, a project manager does not have primary duty for
conducting risk assessments. It is necessary to call a special meeting in order to
include the thoughts and suggestions of the whole team, or at the very least, the
following:

Project Manager: serves as the meeting's chairman and is responsible for its
overall facilitation.
Project Team: The manager of the project is responsible for delegating the
tasks of recorder and timekeeper to members of the project team.
Key Stakeholders: those that have been recognized as having the potential
to provide value to the process of identifying project risks and/or solutions for
mitigating and avoiding those risks
Subject Matter Experts: those individuals who have been recognized as
having the potential to specialize in a certain project activity but who are not
officially allocated to the project but may provide value
Project Sponsor: may take part depending on the nature of their involvement
and the scale of the project.

Figure 2.4: Risk Assessment

2.11 RESPONSE PLANNING

The process of controlling risk occurrences that manifest themselves as

problems inside your project is referred to as risk response. A risk response plan
serves as a roadmap for the process of responding to risks.

2.11.1 Risk Response Plan

A document known as a risk response plan is one that details the actions that
would be done to lessen the impact of potentially damaging project hazards. It is a
component of the more comprehensive risk management strategy, which is
afterwards a component of the plan for managing any project. The term "risk
response" means exactly what it sounds like. You are reacting to potential dangers.

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In order to accomplish this goal, project managers are required to collaborate

with various stakeholders, acquire resources for risk response strategies, and
designate risk owners to be in charge of deploying those methods. Identifying a
danger is the first step in developing a response to it. During the planning phase of
the project, risks are identified and evaluated. Even though the word "risk" literally
means "uncertainty," it does not follow that every possible threat to your project will
spring up out of the blue and take you by complete surprise. A solid risk response
begins with accurately identifying the risks that exist. As was said before, you may
figure out a good deal of the possible risks associated with a project by reviewing
previous projects that were comparable to the one at hand, conversing with more
seasoned members of your project team about what they believe could occur, and
making contact with stakeholders and mentors.

2.11.2 Risk Response Plan in Project Management

It should come as no surprise that having a risk response strategy is necessary

given that risks do occur. Organizing operations to fulfill deadlines and stay within a
certain budget is the most important aspect of managing a project. There is a
possibility that the timeframe may be impacted, as well as an increase in prices. The
sooner you can see potential problems and find solutions to them, the higher the
probability that your project will be completed without a hitch. As a result, a risk
response strategy is a method to lessen or do away with any hazards that may be
posed to the project. It is also possible to utilize it to improve the opportunities that
are presented by taking on positive risks. That is, if there are positive risks that might
aid the project, a well-thought-out strategy will set up how to swiftly take as much
advantage as you can from it, and it will do so in the most efficient manner possible.

There are occasions when the hazards are not going to be eliminated. The risk
response may also be seen of as a means of putting a backup plan into effect. That is,
make sure you have a backup plan in place in case you are unable to continue working
on the project in the same manner as you have been. Another benefit of having a risk
response strategy is that it provides the project manager more alternatives. It raises
awareness of the many hazards that might develop over the course of the project and
offers a variety of solutions to mitigate those risks.

2.11.3 Types of Risk Response Strategies

We have spent a lot of time discussing the need of having a risk response plan
in place to deal with both positive and negative risks when they arise within your
project. A risk response strategy is what you need in this situation.

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The project manager is provided with a selection of risk response techniques

to choose from in the event that a negative risk actually materializes. According to
the standard definition, risk is described as an element of uncertainty that may
influence the outcome of a project in either a good or negative manner. As a result,
there are techniques for making the most of the benefits that come with taking on
positive risk.

2.11.4 Risk Response Strategies for Negative Risks (Threats)

The following is a list of the four risk management strategies:

Avoid: The goal of this risk response technique is to get rid of the danger in
any way possible. Because the risk is damaging to the project, this may require
you to make modifications to the plan that you use to manage the project.
Mitigate: There are some project dangers that just cannot be avoided. Those
are the risks that need to be mitigated, which means they need to have less of
an effect on the project overall.
Transfer: In this step, you will, as the name suggests, transfer or pass the work
on addressing the project risk to a third party. For example, you may purchase
insurance or receive a warranty and guarantee.
Accept: This risk response method involves recognizing a risk and recording
all of the risk management information that is related to it. However, this
strategy does not include taking any action until the risk actually takes place.

2.11.5 Risk Response Strategies for Positive Risks (Opportunities)

On the other hand, there are those favorable risks that you want to capitalize on. This
is the flip half of the coin. There are also three approaches of taking care of these:

Exploit: When there is a favorable risk or opportunity that you want to take
advantage of, you need to add extra tasks or adjust the management plan in
order to do so in a way that is effective. This strategy does come with certain
inherent risks, but the potential payoff more than makes up for them.
Enhance: In this part of the process, you raise the probability that your project
will experience a gain from taking a favorable risk.
Share: In this section, you will share the risk response with other partners that
are involved in different teams or projects. It is possible that this will require
sharing a talented member of the team across many projects.

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What If There’s Both a Positive and a Negative to a Risk?

There are occasions when risk might include both a potential danger and a
potential reward inside it. In this scenario, you have a few different options for risk
response tactics, including the following:Accept: In this step, you acknowledge the
possibility of negative outcomes and wait until an appropriate reaction can be
devised, such as a backup strategy or a breakdown of the associated costs and
amounts of time. This decision has to be communicated to all of the relevant parties.
In the event that the risk cannot be managed and goes beyond the scope of the
management of the project, it is moved up to a higher level, such as the management
of the program or the portfolio.

2.11.6 Making a Risk Response Plan

You won't be able to start developing a risk response strategy unless you have
a solid understanding of the various risk response tactics first. During the process of
risk response planning, you will be outlining the tactics that you will use to handle
both negative risks (also known as threats) and positive risks (also known as
opportunities). The plan will contain the identification of risks, the duties involved
with reacting to those risks, and the owner of the risk who is responsible for taking
action. Your tactics may be organized according to the plan, which will ensure that
no phases are missed in the process. When deciding how to respond to a risk, you
need to give consideration to both the likelihood of the risk occurring and the severity
of its potential consequences. The next step is to evaluate if it will be profitable,
whether it is feasible, and whether it would be fruitful if it is carried out. Everyone
who is engaged, but notably the project stakeholders, has to provide their stamp of
approval to your risk assessment.

One of the risk response tactics described above will be implemented as part
of the strategy. Following that, there will be risk triggers that start the strategy in
motion. These reactions also need to be ranked in order of priority, beginning with
those that have a low likelihood and a low effect and working their way up to those
that have a high probability and a high impact. This will assist you in determining
which threats need a response.

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UNIT III

SCHEDULING & RESOURCE ALLOCATION

3.1 PERT & CPM NETWORKS

3.1.1 PERT

The Project Evaluation and Review Technique (PERT) is a method that project
managers use to assist them in estimating the amount of time it will take to finish a
project. This is an important stage in the process of generating an accurate timetable.
The PERT method uses a graphic called a PERT chart to map three-time estimations.
One of them is the pessimistic time, which is the least amount of time that is
anticipated to be needed to complete a job.The next time estimate is the pessimistic
time, often known as the highest amount of time required to do an activity. Last but
not least, there is the most probable time, which is a fair amount of time to finish the
work if there are no delays, bottlenecks, or other such complications. After these
estimations have been written down, the project manager will proceed to do the
following calculation: (optimistic time + 4 times most probable time + pessimistic
time) /6. The next step is the PERT analysis, which is based on the project network
diagram. This diagram is composed of arrows that depict the direction in which the
work is going and nodes, which are circles that represent the job. It is known as an
activity-on-arrows chart, and it is characterized by the fact that arrows connect each
action or milestone.

3.1.2 CPM

The Critical Path Method (CPM) is used in order to ascertain the earliest
potential beginning time for every activity included in the project. In addition to this,
it will assist a project manager in distinguishing between activities that are vital and
ones that are not critical. When it comes to carrying out the job, this is helpful. In the
event that you go behind schedule, you are aware of the activities that may be avoided
without compromising the quality of the job. As a result, the critical route is the
sequence in a network diagram that takes the greatest amount of time to complete or
the lowest amount of time overall to finish the project. There are various concepts
that are used in CPM that are also utilized in PERT. These include early start, which
refers to the earliest time that a project can be begun, late start, which refers to the
latest time that a project can be started, early finish, which refers to the earliest time
that a project can be completed, and late finish, which refers to the latest time that a
project can be completed without incurring delays.

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The Critical Path Method (CPM) is a chart that displays actions on nodes and
only relates one event to the next. As you can see, figuring out CPM may be a time-
consuming process. The software for managing projects known as ProjectManager
includes a number of different project perspectives, such as interactive Gantt charts
that filter for the critical path. There is no need to do any computations at this time.
It is completed at once without any delay. After that, you may establish a baseline to
compare the amount of work you had intended to do with the amount of work you
really did in order to maintain your schedule.

3.1.3 PERT vs. CPM: Key Differences

There are distinctions between the Project Evaluation and Review Technique
(PERT) and the Critical Path Method (CPM), both of which are useful tools for
project managers. Your project schedule will benefit from your familiarity with these
distinctions between PERT and CPM. PERT is a visual method, which is its key
distinguishing feature. It aids project managers in organizing, scheduling, and
keeping tabs on activities. In addition to its statistical applications, CPM is also a
useful tool for scheduling and controlling projects. However, it does this through well
stated procedures. What PERT CPM does also sets it apart. Cost and time
management can be managed using CPM, and time management can be managed
with PERT. PERT is more of a tool for planning and study. Construction project
management is where CPM is most often used.

The estimation processes used by PERT and CPM are also dissimilar. As
we've seen, PERT use a three-point technique to make time predictions, while CPM
relies on a single metric. The benefits of using PERT over the expense of planning
make it a distinct alternative. Finding a realistic time estimate for tasks is the main
focus of CPM. The difference between PERT and CPM is clear when you consider
that PERT is used to estimate how long certain jobs will take. When such jobs become
predictable, CPM may be applied. In addition, CPM differentiates between important
and non-critical jobs, while PERT does not.

3.1.4 PERT and CPM in Project Management

PERT and CPM are cornerstones of project management planning and

controlling, as was previously noted. Time and money management are two of the
most important aspects of any project. Both PERT and CPM are used by project
managers to reduce the time and resources needed to complete complicated projects.

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PERT and CPM are used to improve the efficiency and productivity of
projects. Project management tools like PERT and CPM are useful for estimating
how long a project and its constituent activities will take. It gives them a better idea
of when to begin and when to finish those activities. They may also identify which
are optional and which are essential to the completion of the project. They may also
learn how much time can be spent delaying non-essential work while still meeting
their deadline. Different situations call for the usage of either PERT or CPM in project
management. Because of their role as estimation tools, project schedules, an integral
aspect of project management, may be developed with their help. When utilized
collectively, they indicate a more conservative timetable for not just the activities that
make up a project, but also the associated expenditures and resources.

3.1.5 PERT/CPM Chart Example

The first step in creating a PERT/CPM is listing all of the activities that will
go into completing the project. You should also identify the preceding job for each
task and any relationships between them. The next step is to calculate how long you
think each activity will take. Over the arrows, write the time you expect it to be. That's
a matter of weeks in our scenario. Days, weeks, or months are all acceptable.
Following the completion of the job estimations, the PERT chart may be constructed
from left to right. The project's start point is at the far left, while its finish point is at
the far right. Time spent on activities is represented by the direction of the arrows
connecting the nodes.

Figure 3.1: PERT/CPM Chart

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3.1.6 Benefits of Using PERT and CPM

The benefits of utilizing PERT CPM should be obvious. Project Earned Value
Analysis (PERT) is a useful method for scheduling work on projects and identifying
the key route. Together, they aid in establishing a timetable by which the project
team's activities may be coordinated.

Make Timely Decisions

PERT and CPM may also help project managers make choices quickly while
the project is being carried out. These alternatives aid in avoiding setbacks and
ensuring on-time completion of projects. What-if analyses are made much easier
using PERT, and the critical path may be used to pinpoint various sources of project
risk. Both PERT and CPM may help improve collaboration amongst teams working
on a project. By providing a wealth of information useful for project management, it
empowers cross-functional teams to make better decisions. All jobs may be analyzed
for their contribution to the project's completion time and cost.

Long-Term Project Planning With Milestones

Although learning CPM and doing the necessary calculations might be

challenging, the benefits are well worth the effort. Planning, scheduling, and
controlling a project are all made simpler with the aid of CPM, which outlines long-
term goals and prioritizes work. Increased output and more efficient use of resources
are the results. PERT, on the other hand, will determine the order in which the tasks
and milestones will occur throughout the project. Because it's a visual tool, it makes
it easier for everyone on the project team to comprehend what's going on. PERT
charts should be kept up to date for the whole of the project's life cycle in order to
guarantee its success.

Project Manager Combines PERT and CPM

You need software for managing projects in order to enjoy the advantages of
PERT and CPM without having to spend time doing the necessary computations.
However, not every piece of software for managing projects is the same. The online
project management software known as Project Manager includes Gantt charts that
have the capability to filter for the critical path and show you what aspects of
managing your project are crucial against what aspects are not critical.

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Track Progress in Real Time

The PERT and CPM need to be regularly reviewed and revised so that
managers can keep on top of the many changes that occur in their projects. Because
our software is accessible online, the data that you see will always be current. The
real-time dashboards that we provide provide you with an overview of the project as
a whole. In contrast to lightweight tools, there is no need for setup, and our dashboard
is already built for you. To ensure that your project continues to operate smoothly,
you have the ability to change the time at any point and record the amount of time
spent on tasks, workload, and expenses.

Get In-Depth Reporting

Estimates are nothing more than educated estimates, but when you're in charge
of a project, accuracy is very essential. Our real-time reports may be generated
quickly and easily with only a few clicks of your keyboard. Whether it's a status
report, task and time progress, or one of the many other available options, each can
be personalized to allow you to select and see just the real-time data that's relevant to
you. When you have access to accurate facts in the here and now, you can make better
judgments. After that, you should make the reports available to the stakeholders so
that they can remain up to date.

Gantt charts are superior than PERT charts not only because they include
filters for the critical path, but also because they let you manage tasks, subtasks, and
connect dependencies to minimize delays, as well as manage resources and a great
deal of other information. Your team can be connected regardless of whether they
work in the same department or in a different time zone since files can be exchanged,
tasks can be commented on, and anybody can be tagged to bring them in. Utilizing
our powerful software, you may go beyond PERT and CPM.

3.2 PROJECT DURATIONS AND FLOATS

The length of time it will take to complete a project, taking into account the
resources and labor that will be used, is referred to as the project's duration. In its
most basic form, it refers to the amount of time that elapses between the day on which
a project is first begun and the date on which it is finally finished. The length of the
project might be approximated in terms of hours, days, or months. For instance, the
total amount of time needed to complete a project may be equivalent to 40 hours, 5
business days, or 1 workweek. When we examine the length of the project more
closely, we may classify it into one of three categories:

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The entire number of working hours, days, or months that the team anticipates
it will take to conclude their project is referred to as the expected duration
(start-to-finish). Additionally, the period that is allotted to it in the project
schedule is referred to as the baseline duration.
The actual length of the project is the amount of time it really took for the team
to complete their task, taking into account any delays or late starts. It
demonstrates how much time has been spent in order to complete all of the
duties and bring the project to a successful conclusion. In order for the project
manager to assess the correctness of the initial project schedule and to make
any required adjustments, the actual length of the project is compared to the
expected one.
The amount of time that is left needed to finish a project is referred to as its
remaining project duration. This duration is calculated relative to the project's
completion date. This information is used by the project manager to determine
when the members of the team will be able to complete their job and turn in
their deliverables on time.

3.2.1 Importance of Estimating Project Duration

The ability to accurately forecast when a project will be completed is essential

for project managers who want to achieve outcomes while adhering to deadlines.
They need to have an accurate estimate of how long their initiatives will take in order
to do this. They are better able to make choices on changes to the team, resources,
and schedule when they have the capacity to anticipate the length of the project. For
instance, if the project manager believes that the project will be finished on time, then
he or she will need to devise a strategy for completing the task in a shorter amount of
time. Creating a new project schedule that includes timeframes, tasks, and resources
that have been revised is one method to accomplish this goal. In order for the project
team to finish their work before the deadline, the revised schedule will contain tasks
that either need less time to complete or less resources. Imagine for a moment if you
were unable to accurately predict how long your project would take. As a result of
this circumstance, you will have the following difficulties:

Because you were unable to provide an accurate time estimate, the completion
of the project may be delayed. As a result of the change in the stated timetable
for the project, you will not be able to accomplish any of the milestones that
you have set out for yourself.
It has been determined that the budget allotted to the project is inadequate.
Because of the decision made by the team to begin working on non-essential
activities, the overall cost of the project will be far higher than it should be.

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You will not be able to deploy the team in a timely manner since you do not
have accurate time estimations. They will probably carry out the tasks in an ad
hoc manner and might rearrange the sequence in which they are completed.
This will result in delays as well as difficulties with the overall quality of the
deliverables for the project.
If you do not accurately estimate how long the project will take, you will not
have sufficient data to track the progress of the work and make any revisions.
You won't be able to accurately estimate if your project is ahead of schedule
or falling behind, which may leave you vulnerable to risks and lead to issues
with the quality of the work.
Because you do not know when to anticipate changes or what to prepare for,
the amount of risk associated with the project will grow as a result.

You should make an estimate of the amount of time your project will take at the
beginning and find out how much time it is going to take for your team to accomplish
their task in order to prevent the concerns described above.

3.2.2 Estimating Project Duration

You should first establish the objective of your project and the substance of
your project before attempting to estimate the amount of time it will take to complete
it. In addition, you need to specify the resources that are at your disposal and how
they will be used in the process of performing the tasks. Depending on the difficulty
of the tasks included in your project, you may choose amongst the following five
methods for estimating the time of a project:

The estimate of time required based on the tasks involved is the quickest and
easiest technique. It is often used to predict the amount of time a member of
the team will spend carrying out his or her customary responsibility. You
should calculate how much time each member of your team needs to do the
various jobs in your project and add this information on the timetable for the
project once you have determined how much time is needed for the estimation.
One variant of the task time estimate is known as the PERT approach, which
stands for the Program Evaluation and Review Technique. When more than
one person is working on a job at the same time, it is appropriate to use this
term. This approach is predicated on the idea that there ought to be some
degree of overlap between the working time of all of the members of the team
in order to successfully complete the assignment. This methodology is used
by scheduling software such as Microsoft Project to ensure that members of
the team have sufficient time to discuss their responsibilities and evaluate their
progress.

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The Critical Path Method (CPM) is an approach to project management that

focuses on the most important tasks. It is utilized after you have identified the
important tasks in your project, which are the activities that cannot be
postponed under any circumstances in order for the project to be completed on
time. In other words, it is used once you have determined what the crucial
tasks are. In this scenario, the manager of the project has to make sure that the
length of these activities is included in the project schedule in order to
guarantee that they will be completed on time.
The Increase in Value The amount of hours that are typically invested on
studying, creating, and developing a project is used as the metric for approach.
To determine how long it will take the team to accomplish all of their work,
the project manager should include in the amount of time that was spent on
these tasks as part of the calculation for the overall project length. This method
of estimating the time required for a project is comparable to the CPM.
The analogous approach is a methodology for estimating the amount of time
needed to complete a project. This technique is based on the experience of the
project manager. It is used in circumstances in which one is unable to employ
any other strategy because there is a lack of sufficient information. The length
of the project should be estimated by the project management by applying a
formula to a previous project of a similar kind that the manager has worked
on, and this strategy may be utilized to make the estimating process more
difficult.

3.2.3 Project Management Float

The float, or "slack," in project management is the time by which a project

may be delayed without missing its deadline. Time required is often proportional to
the number of tasks and the amount of leeway allowed for completion of those jobs.
The timeliness of a project depends on many factors, although certain activities may
not be flexible. The critical path of a project is made up of activities that can't begin
until another one is finished. There is a required sequence for completing these steps
before the project is complete. Delays in critical path activities will have an
immediate and detrimental effect on the completion date of the project.

You can see an illustration of this in the picture below. There is no wiggle
space in the schedule for the four gray jobs (drywall, cabinets, plumbing/electric, and
flooring installation). They are in a really precarious position. Painting and decorating
are two examples of chores that have more leeway in terms of when they should be
done. This results in better buoyancy for them.

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3.2.4 Importance of float in project management

Each of your project managers deserves a standing ovation. They operate in

dynamic settings where they must balance several factors, teams, tasks, and a
distributed workforce. Float provides project managers with a buffer zone in which
to maneuver in the face of unforeseen setbacks. Project managers may use float to
keep tabs on how things are progressing and what has to be done first.They will be
able to refocus efforts on the most urgent tasks and better manage available resources.

Benefits of Float in Project Management: Project management float does

more than just help you stay afloat. It has several advantages, such as ensuring
that you never miss a deadline and allowing your team to stay focused on its
goals. Here are the four main gains your project management will get by using
float.
Helps with progress monitoring: Managers of projects may employ floats to
keep tabs on progress. They can see which tasks are falling behind and which
would be most negatively affected by the delay. This allows them to readjust
goals and timelines.
Improves efficiency and productivity: Float may be used as a guide
throughout the pre-production phase of any endeavor. The most time-sensitive
activities may be kept on track if the project manager is able to take advantage
of any slack. It also helps in setting out the sequence of actions in a way that
leaves no room for error.
Establishes what should be prioritized: Float is used as a priority technique
in project management. Tasks with a limited timeline or no wiggle room might
be prioritized, meaning projects with more leeway can be delayed.
Boosts workplace morale: The "Mondays" (or "Tuesdays," "Wednesdays,"
etc.) affect everyone at some point. Everyone will be in a better mood and have
an easier time getting their work done if they have access to the resources they
need. Using float in project management, leaders and workers may more easily
see which jobs are essential and which can wait.

A project manager, for instance, might reallocate resources to stalled activities in

order to keep the project on track. In another scenario, they may provide advance
notice to any teams that will be impacted by delays.

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3.2.5 Choosing the Right Type of Float for Better Project Management

In project management, float may come in a few distinct flavors. There will
be value and use in each and every one. One may update a team on the available
buffer for a specific assignment, while another updates the project manager on the
status of the buffer.

3.2.6 The different types of float

In project management, there are a few different kinds of float, but here are
the five most common ones:

Total float

The sum of time a delayed or extended job may take without extending the
project's due date. Total Float is found by deducting the "earliest" from the "latest."
This may be done either from the beginning or the end of the work, but both dates
must be on the same side of the timeline. If you get the times of day wrong, you'll
have a major issue.This means that either

Total Float = (Latest Start)- (Early Start Or Total Float)

Total Float = (Latest Finish)- (Early Finish)

Free float

In terms of computations, free float is equivalent to total float. Free float is the
amount of time a job may be postponed without influencing the next item on the
route, while total float is concerned with project completion. If a task's duration goes
beyond its free float, the next one won't be able to begin early. Consider a software
engineer building a database of client information. Before the appropriate team can
start working on the GUI, the backend development must be finished. The Free Float
may be determined by deducting the early start date of the next dependent job from
the early ending date of the present task.

Free Float = (Early Start of dependant) – (Early Finish of current)

Project float

Project float refers to the length of time that a project as a whole may be
delayed or extended before the client or customer deadline is missed. This is the most
important metric for organizations to monitor, but doing so requires the use of a
platform dashboard to keep tabs on everything having to do with the project.

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The deadline may be set by the customer as part of the conditions, or it may
be the result of the company's own decision. Your company, like many others, cannot
afford to miss a project completion deadline. In the same manner that total float is
determined, project float is as well. Although these phrases are sometimes used
interchangeably in business, we shall now have a clear distinction between the two:
Total Float refers to the completion of a particular job or activity, whereas project
float is associated with the finalization of the project as a whole. Similarly, we will
need to know the earliest a project may end in order to compute its float. In other
words, this figure is contingent upon careful preparation of both critical and non-
critical pathways. In this case, we calculate the new deadline by subtracting the
earliest or intended completion date from the most recently imposed or committed
date.

Project Float = (Latest Finish) – (Earliest Finish)

Interfering float

Interfering Float is the length of time that a work may be postponed without
causing the project to go beyond its committed deadline. In other words, the project
will suffer if the deadline isn't met. There are two outcomes possible when work is
put off. For one, it reduces the time cushion you have for other activities. Both
important and non-critical work will be affected. As your project's float is depleted,
the remaining tasks may suddenly become important since there is no more room for
error. Second, it may cause an essential duty to be put off until later. This will cause
the project to run longer than expected. The remaining float time will tell you whether
your project can be finished on time. Taking the total float and subtracting the free
float yields the interfering float.

Interfering Float = (Total Float) – (Free Float)

Independent float

The independent float, despite its name, takes into account both current and
past events. It is the amount of time that may elapse between the earliest possible start
time of a successor activity and the delayed start time of the first activity. As a result,
independent float refers to any slack in the schedule caused by work unrelated to the
project's projected early completion. That makes this kind of float completely
autonomous.

Independent Float = (Early Start of Subsequent Task)- (Late Finish of Prior Task)-
(Total Time of Prior Task)

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3.3 CRASHING

Crashing a project is one approach of condensing its timeline. It is often used

when a project manager has to shorten the duration of a project without expanding its
scope in order to meet a tight deadline. That is to say, the end product should be
unaffected, however the amount of time required to complete it might shift. To
complete a project in a shorter amount of time, it is common practice to enhance the
amount of resources available or to remove needless work. In order to establish
whether or not crashing a project is a good idea, its ROI must be determined.

3.3.1 Common Reasons for Crashing a Project

Examining the project's initial timeline, budget, and scope is essential before
deciding to crash it. That way, you'll know whether the project's parameters are
staying the same while the cost is changing. Companies who invest in project
management strategies squander 28 times less money in the long run despite the fact
that crashing a project increases costs. Project managers use this method for five
additional reasons as well.

Project Schedule Delay: There are not many options left if the project is
running behind schedule and you want to finish it on time. That's crucial if you
or your business might be fined for a delay that was beyond of your control.
Resource Availability: You may opt to accomplish a given project ahead of
schedule if more resources become available. Crashing the schedule may need
allocating more funds, adding more personnel, or deploying any number of
other resources.
Avoiding Future Delays: If you're running behind schedule on one of your
projects, it might have a domino effect on the rest of your work. You may
prevent this by crashing a project in order to guarantee the timely completion
of several others.
Time Bonuses: Some businesses would fine workers if a project is late, while
others will provide bonuses for finishing early. whether that's the case, you'll
want to figure out whether the additional money you'll spend on expediting
will be worth it.
Extra Manpower: New employees are often "onboarded" or "trained" by
their respective companies. You may crash a project with an extra workforce
by using new workers and assigning them to it while they undergo training.

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3.3.2 Project Crashing Steps

You can decide whether or not you need to employ crashing in project management
after you have a basic understanding of what it is and how it operates. We've outlined
the five most important things to do if you're about to crash a project to get you
started.

Re-Check the Critical Path: You should always apply the critical route
technique, regardless of whether you are planning with the help of a project
management program or doing it the old-fashioned manner. This method
draws attention to the activities as well as the many different aspects that
influence both the result and the length of the project. When it comes to the
management of crash point projects, you should go back over your previous
actions and examine the key path to figure out which of your tasks may benefit
from more resources in order to complete it more quickly. One crucial fact to
keep in mind is that accelerating the completion of certain tasks is not possible.
In addition to this, there is a possibility that your financial resources may be
restricted. If you do not have sufficient resources to spend in each activity, you
need to identify which of the tasks will have the most influence on the overall
timeframe of the project.
Evaluate the Pros and Cons of Every Step: When considering whether or
not to add extra resources to your project, you should always determine
whether or not the additional time saved is worth the increased expense.
Crashing is one of the most significant actions in project management, and one
of the most important activities in crashing is evaluating the advantages and
downsides of each stage. Estimating the cost of additional people is more
difficult than the financial aspect. For instance, if you decide to add new
individuals to your team, you need to think about how educated they are about
the project before making the decision to include them. The amount of time
you need to spend training them will have an effect on how soon the project
can be completed.
Pick the Most Cost-Effective Option: The organization may save a lot of
money if you figure out the most efficient way to speed up a project.
Determining the bare minimum of resources needed to complete each activity
within the allotted time frame may have a huge impact on overall productivity,
even if more are available. In certain circumstances, you may have to decide
between abruptly ending a project and speeding it up. The latter enables you
to carry out two or more activities at once instead of doing them one at a time.
Fast-tracking, however, isn't always an option since you have to complete one

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activity before moving on to the next. However, it is usually cheaper than

project crashing, therefore you may want to utilize it whenever possible.
Update Project Timeline: Once the project management crash has been
planned, the due date should be revised accordingly. Include the revised
project budget when presenting the updated plan to the customer or employer.
Whoever is in charge usually has to go through the changes again and provide
their stamp of approval on the revised spending plan. If, however, you are
providing the project's funding, you may go on to the following section.
Executing the Project: After getting approval for your plan to crash the
project and the revised budget, all that's left to do is put it into action. Make
that the extra funds are distributed as intended. You shouldn't run into any
problems if you've calculated everything accurately.

3.4 RESOURCE LOADING AND LEVELLING

The resource loading for a project is the total number of hours needed to
complete the project divided by the available time. The amount of time resources are
being used may be seen on a daily, weekly, monthly, or project basis. Over-allocating
team members is a common pitfall of resource loading. For instance, over-allocation
occurs when one team member is already at full capacity but must step in to assist or
replace another. This is a common cause of projects going over budget or falling
behind schedule. The amount of work that can be accomplished in a given time period
is called the "resource loading," and it is calculated by dividing the amount of work
by the resource's maximum capacity. Schedule time off for things like meetings,
holidays, vacations, and breaks. Resource allocation is one area where project
management software can really shine. The online Project Manager program lets you
examine the team's availability hours, including time off for holidays throughout the
world. You can keep tabs on this with the use of a color-coded, real-time workload
chart. Resources may be reassigned using the workload chart if they are over-
assigned.

3.4.1 Resource Loading vs. Resource Leveling

It's simple to mistake loading resources with maintaining their current level.
They have many similarities, yet their values are fundamentally different. Both
involve managing resources, but in different ways and with distinct resources in mind.
As we discussed, resource loading refers to your workforce. Until all available slots
are filled, workers are given specific tasks or percentages of the overall project to do.
This helps project managers allocate tasks to their teams and determine whether they
need to add additional people to the roster.

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Manpower is the primary focus of resource loading. Time, in the form of

project start and finish dates and budget constraints, is also a factor in resource
leveling. By decomposing tasks and budgets into their constituent parts (time and
money), resource leveling is able to achieve a more equitable distribution of both. It's
put to use in tasks when time is of the essence. In conclusion, resource loading is a
method for determining how much work each team member is expected to perform
in a given time frame, taking into account their availability and capability. Utilization
of resources. Priority, the project's schedule, milestones, and budget all have a role in
determining the appropriate amount of the resource allocation, which is why resource
leveling is so important. Project start and end dates determine the resource loading,
and resource levels may be changed to accommodate for resource conflicts.

3.4.2 Preparing Resource Loading Chart

Compare Team Members With Tasks: Using a matrix, create a horizontal

list of all of your team members across the top. Then, along the left side, write
down every step that must be taken for the project to be successful.
Calculate Hours Spent on Tasks: Determine how much time each team
member spends each week working on their assigned duties. Determine how
much time is being spent on each part of the project at this point. You should
do this for everyone working on the project.
Compare Actual Hours With Target Utilization: Examine the obtained
information on resource scheduling and evaluate it against your goals for
usage. With this information, you may set daily goals for team productivity.

3.4.3 The Importance of Resource Loading In Project Management

All you have is an idea without the means to make it a reality. When allocating
tasks to teams, resource loading may assist ensure that no one is overburdened. If you
don't have enough work, your productivity will suffer since you aren't using your full
ability. As a result, the project will likely go over budget and beyond time. The other
side is that it's possible to over commit assets. If you do this, you can count on low
productivity from your teams and delays in meeting deadlines. They may be able to
keep up for a while, but eventually they will have to slow down. Burnout will set in
and force many of your team members to abandon the project, or you won't be able
to keep them around. It's an issue either way since it happens when project managers
fail to account for limited resources.

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Keep Your Teams Productive: To ensure the project is completed on

schedule and within budget, resource loading is used to keep teams operating
at full capacity. In planning, resource loading is essential for producing a
feasible timetable and cost estimate. This helps managers anticipate the costs
associated with the resources they'll require for a project. Resource loading is
useful for more than just estimating time and money spent. The importance of
figuring out what tools and supplies will be required for the job cannot be
overstated. When you need them, of course, but also what you need. All of
those are necessary for effective project preparation.
Project Manager and Resource Loading: To minimize bottlenecks, Project
Manager, cloud-based project management software, can rapidly and simply
reallocate your team's resources based on their current availability and
workload.
Get a High-Level View of Resources: Real-time project monitoring is
essential for making intelligent resource reallocation decisions. You may get
a real-time status report on the project from our online dashboard. Unlike with
cheaper alternatives, there is no installation time involved. Colorful charts and
graphs make it easy to quickly assess progress, effort, costs, and more. Better
decisions can be made when these indicators can be monitored in real time.
Assign and Track Resources on Gantt Charts: Planning your resources is a
necessary first step before keeping tabs on them. While resource loading is
useful, our interactive Gantt charts make it much easier to assign resources to
team members while also monitoring budget and time constraints. Since it's
done online, it's simple to include others on your team or other interested
parties. You may establish a baseline to compare actual resource use to your
plan and connect dependencies to prevent slippage in execution.

3.4.4 Resource leveling: Basics and benefits

Leveling resources requires a grasp of how those resources are allotted first.
Allocating resources is setting aside time and personnel for each phase of a project.
Different projects need different types of resources. Team members and the budget
are two frequent examples. In order to keep the project moving forward steadily and
without any steps being delayed or cancelled due to a shortage of resources, resource
leveling must be implemented. You can keep everyone pleased on the team and in
the stakeholders' camp by judiciously distributing scarce resources and rescheduling
the project as required.

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3.4.5 Resource leveling examples

The following is an explanation on how to get the most out of resource leveling
as well as some instances of it in action:

Adjust timelines based on resource constraints: Changing the timetable of

the project is often the most effective method for balancing the available
resources. This might include moving the end dates farther out in order to
avoid allocating anybody overtime or decreasing the length of the project by
assigning the existing resources in a more optimum manner. Consider the case
of a graphic designer who has no other commitments but is scheduled to do a
work that will take 12 hours on Monday and another task that will take four
hours on Tuesday. Instead than having one day with extra compensation and
another day with wasted time, they construct two eight-hour days by
transferring four hours of the job from Monday to Tuesday.
Schedule tasks simultaneously when possible: The completion of activities
in parallel may also allow more effective use of available resources. Think
about using the critical path method (CPM), an approach for managing
projects that identifies which activities may be completed concurrently and
which ones can't be done at the same time. You may use this approach to figure
out which chain of task dependencies is the longest, which will give you a
better idea of how long the whole project will take. After then, you may
delegate more responsibilities to be carried out concurrently in order to
distribute the workload more evenly, avoid bottlenecks, and make the most
use of available resources.
Allocate resources to critical priorities first: When it comes to the planning
phase of the project, you should prioritize the activities that need the greatest
resources. In this manner, even if the needs for the resources alter in the future,
you can rest comfortable that the essential aspects of the project have been
addressed, and any shortcuts that may need to be taken will have less of an
impact.
Prioritize balanced work versus speedy execution: Even though it may be
required at times, rushing things is likely to cause an imbalance in the
resources available. These imbalances might result in issues with quality
control and potentially have an effect on the availability of resources for other
projects. On the other hand, having a workflow that is more balanced in
addition to setting realistic completion deadlines for projects has a tendency
to keep things moving more smoothly.

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3.4.6 Enhancement of Resource Leveling

The following are some of the ways that increasing your resource level might
improve your project:

Minimize delays and downtime: If you design your project using the critical
path technique, you should be able to determine the total float, also known as
the total "cushion" of time, which is often associated with activities that have
a low degree of dependency on one another. Investigate the possibility of
reassigning other responsibilities in order to fill up such time gaps. Everyone
on the team will have something to do, and no one will have to take on too
much at once. The process of resource leveling helps to prevent downtime in
this manner. The overall consequence of having fewer periods of downtime is
that there is a greater chance that the project will end on schedule and without
any delays.
Utilize your resources more consistently: Imagine that the members of your
project team possess two distinct sets of skills: one half of them are specialists
in the design of widgets, and the other half of them are experts in the
manufacturing of widgets. The design has to be finished before production can
start, but if the people who make the widgets are simply waiting around, you
are wasting resources. Instead, a technique for resource leveling may consist
of staggering projects in such a way that the widget producers are actively
manufacturing one set of widgets while the widget designers are actively
designing the next set of widgets. Now, all of the available resources are used
at all times and in a way that is constant throughout, which allows a greater
quantity of overall work to be completed.
Prioritize what matters most: The more comprehensive task of resource
management, in general, gives you the opportunity to adopt a more strategic
approach to the manner in which you distribute the various supplies of
available resources. Because of this, it will be much simpler to give priority to
the initiatives and activities that are of the utmost importance. Imagine for a
moment that you are increasing the amount of certain resources, such as
competent software programmers, for instance. You are able to send the
programmers with the greatest experience to work that are the most crucial or
challenging, and you are able to assign the programmers with the least
experience to projects that are easier. As a result, the likelihood of things going
wrong with the vital and complicated duties is decreased, while at the same
time, all members of the team continue to maintain equitable workloads that
are tailored to their capacities.

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Achieve a fairer distribution of labor: When adjusting resource levels,

preventing the excessive or insufficient use of any given resource is one of the
most important tasks that should be pursued. Imagine a company that just cut
the size of its IT department. As a result of the process of downsizing, one
member of the team ended up taking on all of the additional responsibilities
that had previously been split up among a bigger group of employees. This
particular person is now understaffed while the other members of the team
continue to have the same amount of work as they had before the team was
reduced in size. Tasks may be allocated in a manner that is more equitable if
resource leveling is applied to this scenario. In addition, a thorough evaluation
of the infrastructure may reveal duties that are unnecessary and may be
removed. This will result in a reduction in the overall burden for the team,
which will avoid the need for anybody to put in extra hours. It's also feasible
that instead of dispersing work, the most effective solution would be to hire
outside experts to help ease the burden. This is something to keep in mind. The
process of resource leveling may also entail rearranging priorities and
recalculating timetables for various activities and responsibilities.
Integrate other project management methods: The leveling of resources is
compatible with a variety of different approaches to project management. For
instance, it makes it easier to streamline projects and get rid of waste, both of
which are integral parts of the lean methodology. It also works well with
iterative agile collaboration, which calls for projects to be segmented into
manageable portions that can be finished in sprints. This method works well
with both of these methodologies. Kanban boards and Gantt charts make it
simpler to visually identify areas of a project where there is a requirement for
an excessive number of resources at the same time, as well as areas of a project
where more work may be added to maximize resource utilization. If you use
software to manage projects, you could discover that it comes with additional
tools to help you keep better track of and organize your resources.
Consequently, regardless of the project management approach that the
software is based on, putting in place resource leveling is often quite simple
and straightforward when using the program.:
Adjust timelines strategically, not haphazardly: In the same way that
projects have varying degrees of importance, the amount of leeway they have
in terms of their schedules also varies. When it comes to some projects,
extending the due date won't have much of an impact; on the other hand,
certain deadlines have to be fulfilled in order to keep the consumers satisfied.
Due to the fact that the planning stage of projects often involves a great deal
of unpredictability, it is standard practice to move deadlines around.

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However, rearranging the dates should always be done in a planned manner

whenever it is feasible in order to keep the priorities straight. Through the use of
resource leveling, it is possible to maintain high-priority deadlines while adjusting
low-priority deadlines instead, all of which takes place within the confines of
consistent work hours across the board.

3.5 SIMULATION FOR RESOURCE ALLOCATION

In the context of project management, resource allocation refers to the process

of locating and allocating the best available resources that possess the appropriate
abilities to each project for a certain amount of time. Additionally, it keeps track of
the workload of the resources throughout the life cycle of the project and assists in
reassigning them as required. An effective distribution of resources guarantees that
the appropriate personnel are working on the appropriate project at the appropriate
time and at the appropriate cost. Important aspects of project management that have
an impact on the distribution of resources. When allocating the appropriate resources
to the appropriate work and responsibilities, some things need to be taken into
consideration. These components might change depending on the project and the
requirements that come with it. The following is a list of some of the more important
ones:

Project goals and objectives

When deciding how to distribute available resources, it is important to take into

consideration the overall aims and objectives of the project. When assigning
resources, it is essential that these be done in a manner that is congruent with the
anticipated goals and strategic priorities of the project. The goals and objectives of
the project need to be determined in order to properly align the distribution of
resources with the strategic goals of the project. This will ensure that the most
important tasks get the necessary amounts of resources. In addition, setting goals and
objectives for a project enables businesses to determine the kinds of resources and
the amounts of resources that are necessary to complete the tasks. In addition,
managers are able to do an analysis of the particular capabilities, knowledge,
equipment, materials, and financial requirements essential for the accomplishment of
the project. Having clear objectives enables project managers to precisely estimate
the amount of resources needed for the project and distribute those resources
appropriately.

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Changes in project scope

Alterations to the scope of the project are an additional significant aspect that
influences resource allocation. Alterations to the project's scope result in
modifications to the tasks, activities, and deliverables. As a consequence of this, the
needed number of workers on staff will shift accordingly in response to the
adjustments. As a result, choices on resource allocation need to take into account the
particular criteria that must be met in order for a project to be successful.
Additionally, modifications to the project's scope have an effect on the availability of
resources. For instance, more resources need to be allotted if the scope of the project
grows and calls for the acquisition of new skills and knowledge. On the other hand,
if the scope of the project is reduced, the resources that were previously allocated to
the different tasks may become available to be moved to other projects. Therefore, in
order to have a balanced resource pool, project managers need to take into account
the availability of resources and alter allocations depending on the scope of the
project.

Project dependencies

The activities associated with a project are often interconnected, so that the
completion of one work will result in the beginning of another. Therefore, in order to
ensure that projects are finished on schedule, managers need to effectively distribute
resources based on the interdependence between activities and the availability of
those resources. In addition, the choices that are made about resource allocation have
to take into consideration the availability of the resource as well as its capacity when
numerous projects or tasks have the same precise demand for the same resource.
Managers have the responsibility of ensuring that the specific workforce is allocated
in such a manner that it satisfies the needs without being overburdened or producing
conflicts in the availability of resources.

Task or project prioritization

It is necessary for managers to evaluate the significance of the tasks or

deliverables. There are likely certain initiatives that have a greater priority than others
and have an immediate need for funding. In these kinds of circumstances, managers
are required to allot resources according to the priorities of the project or the job. This
ensures that the few resources that are available are allocated to the essential
activities, hence increasing the likelihood that the project will be successful. By
identifying and assigning resources to time-sensitive activities or projects,
organizations are able to more efficiently manage their time thanks to the practice of
prioritizing projects and tasks.

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Resource availability and skills

The availability of the resources and the skill sets required to work with them
are both crucial. In order to guarantee that the proper resources are allocated to the
correct tasks, it is necessary to take into account the characteristics of the resources,
such as their level of experience, skill, and capacity for taking on more work. This
guarantees that the work is successfully completed and improves the performance of
the project as a whole. Managers are required to conduct an evaluation of the
availability of resources, which is an extremely important part of resource allocation.
If a particular resource is unavailable during the time period in question, the allocation
will need to be changed appropriately. The availability of resources has an effect on
the order in which activities and tasks are scheduled to be completed.

Meeting the project deadlines

For businesses to continue to be profitable, they have to keep up with the

schedules for their many projects. To successfully complete a project on schedule and
achieve its goals, it is essential to effectively allocate its resources. The efficient
distribution of resources reduces the likelihood that the project will move forward
behind schedule by ensuring that tasks are completed in accordance with the plan.
Deadlines for projects have an effect on the availability and distribution of resources.
It is necessary to assign resources in accordance with the timeline of the project in
order to guarantee that these resources will be accessible at the appropriate times.
When resources are distributed effectively, bottlenecks and personnel shortages may
be avoided, which paves the way for effective task execution and on-time completion
of projects.

Risk assessment

The evaluation of a project's risks might play a role in the choices about
resource distribution. Managers are able to establish the possibility of each risk as
well as its possible influence on the project's goals by conducting a risk assessment.
The success of the project and the mitigation of any negative impacts may both be
improved by allocating resources to handle possible risks. The management may have
a backup plan for resources from the current pool or contingency resources to meet
these unanticipated risks that arise from unexpected occurrences if they conduct an
assessment of the possible risks the organization faces. For example, if a resource is
out of commission for an extended period of time or if there is unexpected attrition,
a contingent workforce may be swiftly substituted to guarantee that projects are
completed on schedule.

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3.5.1 Common problems of resource allocation in project management

Even though resource managers are the ones who first execute the allocation process,
the procedure is difficult since project needs are always changing. Let's examine some
of the most typical issues with allocating resources, shall we?

Use of legacy tools or spreadsheets: Due to the ease with which information
may be obtained, the process of allocating project resources is still handled by
many companies using indigenous solutions that are only partially developed,
such as spreadsheets. Unfortunately, these old technologies are unable to
deliver precise data in real time for the allocation of resources, which might
result in inconsistencies and multiple reservations. In addition, spreadsheets
require a significant investment of effort, are restrictive, and are a headache to
keep updated.
Frequent changes in project scope: When working in an agile environment,
the scope of the project might change at any moment throughout its lifespan.
The needs of the project may evolve, which may result in shifting requests for
resources. Consequently, without an up-to-date resource calendar, making
frequent allocations to satisfy the ever-changing needs might be a challenge.
The unexpected termination of a significant project will also result in an
increase in the size of the bench, which may have an effect on the bottom line.
Unable to predict resource availability: When deciding how to distribute
resources throughout a project, resource managers will often consider the
already-existing labour pool. on addition to this, rather than putting all of their
faith on one particular individual, they need to have a backup contingency
resource allocation strategy. For instance, members of the team may come
down with an illness out of nowhere, or it could be difficult to schedule time
with a shared resource due to other obligations. When it comes to allocating
resources for a project, the fact that the availability of resources might abruptly
alter can be a barrier.
Project uncertainties causing delays: Uncertainties may arise at any point in
the lifespan of the project, even though every step has been properly
completed, such as defining the project scope and identifying the limitations.
There is a possibility that the start date of the project may be pushed back, in
which case you may have to hold some resources without invoicing for them.
The dynamic allocation of resources, which may include juggling resources
within projects or reassigning them, is one way in which project managers
must swiftly adapt to the uncertainties that may arise.

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Limited resources in a multi-project environment: Some businesses take

on numerous projects at the same time and pool their limited resources in order
to deliver on all of their commitments. If you and the other project managers
are negotiating over the same resources, it's possible that one of you may end
up shifting your objectives for the project. Nonetheless, this results in one of
the other projects being halted, which then leads to it being behind schedule.
Lack of knowledge and communication: There are occasions when project
managers are lacking in their grasp of business. They are unable to provide a
timely estimate of the resource needs since there are communication
breakdowns among the team members. If the resource demand for the project
is inaccurate, the end result will either be an excess of resources or a shortage
of resources. It is discovered when the process is being carried out, which may
have a negative effect on the project. A shortage of resources may result in
delivery delays, while an abundance of such resources will drive up the cost
of the project.
Location and time zone differences: As a result of globalization, many
businesses have begun using an onshore, offshore, or nearshore approach in
order to better manage their expenses. For the purpose of the same project,
resources are allotted in many geographic locations, each of which spans a
distinct time zone. As a consequence of this, there is a lack of coordination
amongst the essential participants, which might result in delays to the project.
Because of the limited overlap in working hours between the two nations, there
is only a narrow window of opportunity for crucial meetings and the exchange
of information. Now that you understand the many challenges associated with
resource allocation, let's examine how useful this approach is in the
administration of projects.

3.5.2 Importance of resource allocation in project management

When a crucial resource is unavailable, it might slow down the progress of a

project and have a negative impact on the overall task requirements. The Project
Management Institute (PMI) reports that "50% of projects fail to deliver on time, out
of which 23% cite poor resource allocation as the primary cause." A methodical
approach to allocating resources guarantees that such resources will be accessible at
the precise moment they are needed. Let's take a look at some of the positive
outcomes that might result from properly allocating resources in project management.

Minimizes project resource cost significantly: The resource allocation tool

assists you in determining and allocating the resource that is the most
appropriate fit rather than the resource that is first apparent. It gives you the

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ability to deploy globally cost-effective resources beyond matrix borders,

which greatly lowers the expenses associated with project resources. The key
to maintaining profitability in project management is resource allocation,
which involves spreading available resources out evenly among all active
projects rather than devoting them to a single high-priority endeavor.
Maximizes profitable resource utilization: It is not enough to just assign
resources to different projects to guarantee profitability. It's possible that
they're working on administrative or operational activities that aren't being
billed for. It is important for businesses to ensure that they are making the most
efficient use of their resources, and resource allocation helps accomplish this
goal as well as others. Using real-time information and various ways of
forecasting, resource managers are able to take corrective actions in advance
to prevent the underallocation or overallocation of available resources.
Profitability may be ensured by extracting resources from non-billable activity
and shifting those resources to strategic activities that can be billed.
Enables finding the right resource using centralized visibility: Real-time
information pertaining to resources is gathered by a system that allocates
resources, and then that information is consolidated on a centralized platform.
Having visibility in every direction helps assign resources to projects
according to qualifications, abilities, and experience as well as availability,
pricing, and other factors for selection. Through centralized visibility and real-
time updates, data redundancy and inconsistencies, which may otherwise
result in double-booking mayhem, can be avoided. One of the most important
advantages of resource distribution is having this benefit.
Delivers projects on time and within budget: The success of a project,
increased customer happiness, and the reputation of your firm all depend on
its being delivered on schedule and without exceeding its budgetary
constraints. In addition to this, the elimination of under- or over-skilled project
resources is possible if the available resources are deployed effectively. Both
insufficiently skilled resources and overqualified team members may create
delays in a project, while too competent team members can drive up resource
expenses. As a result, the distribution of resources is an essential part of project
management.
Diversifies employee skill sets for increased billability: It is beneficial to a
company's billability for staff to be encouraged to acquire diverse talents. In
addition to honing their basic talents, being able to use those skills across a
variety of tasks gives students the opportunity to develop secondary skills.
They are able to increase their talents further with the assistance of targeted
training programs as well as experience gained while working.

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Solves resource constraints with smart allocation techniques: In a setting

with several projects, intelligent resource allocation means creating higher
return on investment (ROI) utilizing the resources that are already available.
The "what-if" analysis gives you the ability to construct a number of distinct
scenarios and simulate each one utilizing the available resources. The
comparison and examination of each potential result enables resource
managers to assist in arriving at the most favorable conclusion. After that, it
may be included into the allocation timetable for the project.
Improves employee engagement and productivity: When it comes to
allocating resources, one of the best practices is to allocate people to project
responsibilities based on the abilities and interests they bring to the table.
Motivating people by creating an atmosphere in which they can work on
improving themselves, their skills, and keep up with the latest developments
in technology is an effective strategy. If resource managers provide their
employees with the appropriate opportunity, they will be able to successfully
manage the bench and increase overall billability. The workers experience an
increase in responsibility and a greater sense of ownership of their work, both
of which contribute to increased engagement and output.

3.5.3 Resource allocation methods in project management

It's possible that resources will only be provided in part or in their whole.
When determining how resources should be divided up, managers of such resources
have a responsibility to take this into consideration. In a setting with several
complicated projects, what is the best way to distribute the available human
resources? In this part, the important processes in the project management process for
allocating resources are described.

Create a project plan using an appropriate tool: Each project has to be

broken down into several tasks, and those tasks need to have dependencies
established. The creation of a work breakdown structure, often known as a
WBS, is one of the fundamental steps involved in developing a plan for a
project. Depending on how the two jobs are related to one another, they may
either be carried out sequentially or in parallel. Within a project plan, the
critical route establishes the bare minimum amount of time that must be
invested to finish the project. This information may be used inside a tool for
project management in order to offer a perspective of a Gantt chart. Because
resources are divided up and given to different tasks to be completed, resource
allocation is an essential part of this process.

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Identify resource requirements for project tasks: When the project has
been properly broken down into individual jobs, the available resources may
be distributed in a manner that is most effective. Depending on the nature of
the job to be done, the assignment may need either human or non-human
resources to complete. It is essential to determine one's abilities and
competences while dealing with human resources. Before delegating a work
to a non-human resource such as a piece of machinery, it is necessary to first
identify the equipment specs.
Find available resources with matching skill set: One may easily determine
the availability of a resource within the pool for matching talents by using
software that is specifically designed for resource allocation. The process of
looking for machinery that has the required characteristics may also be
employed for a certain amount of time. In addition, the tool for allocating
resources offers a way to update the skills and capabilities of each resource in
real time while maintaining the necessary verification.
Bridge the demand-capacity gap using multiple channels: In the event that
there is not a human resource available that meets the criteria, one has the
option to acquire more help or make use of backup resources. In a similar vein,
the resourcing strategy will dictate whether the equipment may be leased or
purchased in the event that it is not readily accessible. The financial
projections for the project need to account for every applicable expense. After
deciding which resources will be needed for a particular project, the next step
in allocating resources is to do so.
Allocate resources as per demand: Following the locating and establishment
of the project's resources, such resources are then allocated to certain tasks. It
is possible that the resources will not be accessible at the moment they are
required to complete the assignment. If you decide to bring on a new employee
to handle a particular responsibility, there is always a chance that the
individual may back out at the very last minute. It is possible that you may
need to have a contingency plan for this resource. In the case of crucial roles,
the individual could be required to report for work a little bit earlier so that
they are accessible when work begins.
Re-allocate resources between projects if required: During the life cycle of
a project, it is often required to reallocate resources in order to accommodate
for a variety of reasons. For instance, a resource may have problems with its
performance, which may need its replacement. It's possible that another high-
priority project may call for a resource with specialized knowledge. Therefore,
one has to find a suitable replacement for the individual who is currently
working on the project so that it does not suffer.

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Track and monitor resource usage: In order to develop an efficient

procedure for resource allocation, it is required to monitor the performance of
each resource individually. In a perfect scenario, there wouldn't be any under-
or over-allocation of resources, and neither would there be any under- or
overuse of the labor. When you need to manage a vast pool of resources,
however, it is difficult to guarantee this for each and every one of them. When
it comes to making this decision, the expertise of the project manager as well
as some degree of subjectivity plays a vital influence. Dashboards and reports
generated by resource allocation software may be of use to one in the process
of decision-making.

3.5.4 Solvig runtime resource allocation challenges

During the beginning stages of a project, the majority of the resources that are
necessary for carrying out tasks are assigned. The duration of the projects, both in
terms of time and in terms of the resources required, might vary. It is possible that
the project may need extra resources, or that some of the already available resources
will need to be implemented. But what happens if the first resource allocation is
incorrect because you have hastily onboarded resources that are not compatible with
one another? Because of the potential for it to provide a severe obstacle during the
delivery, immediate course correction is required. This predicament is referred to as
a runtime resource allocation difficulty on our end. As part of an updated strategy for
resource allocation, using resource optimization strategies may help reduce some of
these difficulties.

Resource leveling: When this occurs, the beginning and ending times of the
projects are moved about to accommodate the limited resources available. One
is able to modify the timeframe of the project, however acquiring more
resources is not very simple. For instance, research programs could have this
type of leeway in their schedules. The manager has to do some reworking and
come up with a new timetable in order to determine the new completion date
utilizing the resources that are now available.
Resource smoothing: The resource smoothing process does not allow for any
wiggle room around the project timeframe, and the job has to be finished
within a certain amount of time. However, the project manager has the ability
to add or remove resources at any point throughout the lifespan of the project
in order to meet the requirements necessary to deliver the time-bound project.
It is presumed that there is availability of resources.

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Additional mentoring using SME: If the already available resources are not
sufficient to complete the need in its entirety, those resources may be provided
with extra learning opportunities while working. It is difficult to find qualified
candidates for positions that need a variety of talents. A person who satisfies
a certain minimum percentage of the requirements may be granted an
opportunity in exchange for more guidance. It is given by subject matter
experts (SMEs) who have been recognized in order to fast-track his
capabilities. The small- and medium-sized enterprises (SMEs) could be
anyone from outside the project or anybody working on it.
Independent audit: If there are problems with governance that have led to an
inappropriate distribution of resources, an independent audit may be
conducted to investigate the situation. In most cases, experienced project
managers carry out these tasks either alone inside the business or with the
assistance of outside consulting organizations. To bring the project back on
track, the responsible party has to initiate communication with both the
external client and the internal team. It is possible for the overall delivery
target to be derailed if the strategy for resource allocation at the outset of the
project is wrong. In addition, reevaluating the distribution of the project's
resources while it is being carried out results in significant additional costs.
Getting into such a predicament is the last thing any project manager wants to
do. However, this is sadly something that may occur owing to a number of
variables that are beyond their control.

3.6 GOLDRATT‟S CRITICAL CHAIN

Critical chain project management, often known as CCPM, is a system for

managing projects that enables users to keep track of critical resources and prioritize
dependent activities, with the ultimate goal of completing projects as quickly and
effectively as feasible. Critical chain project management is a useful method that can
be used to keep track of resources and is a smart option to consider if your team wants
to closely monitor the consumption of such resources.

3.6.1 The critical chain method vs. the critical path method

Both of these approaches to project management are quite similar, with one
significant distinction between them. The critical path technique focuses on the one
continuous chain of parallel activities that must be completed for a project to be
successful.

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The critical route outlines all of the activities that must be carried out in order
for the project to be considered successful regardless of whether or not additional
tasks also need to be finished. This method of project management is designed to
assist teams in determining the workflow that will provide the most productive
timeframe for the project. Any activities that are not included in the critical route will
have a lower priority than the others. The state of the project is evaluated based on
whether or not certain crucial tasks have been finished by a predetermined date. The
critical chain technique similarly places an emphasis on task dependencies, but in
addition to that, it takes into account the resources that are required to finish a project.
Because there are so many unknown factors that might contribute to resource
restrictions, the critical chain technique inserts resource buffers (extra resources to
function as a barrier) into the project timetable. These buffers are designed to prevent
the project from falling behind schedule. In contrast to the critical path technique,
which places its only emphasis on the timing of the completion of tasks, the critical
chain method bases the success of a project on the rate at which resource buffers are
depleted. If your team hasn't utilized any of the resource buffers yet, the project that
you're working on is making good progress.

3.6.2 The components of a critical chain

The critical route, the feeding chain, and the resource buffers are the three
essential components that make up a critical chain.

The critical path

A project's critical path is the longest series of dependent activities that must
be completed in order for the project to be successful. To put it another way, it is a
list of all of the activities that must be carried out in the specific sequence in which
they must be finished in order for the project to be considered successful. When using
the critical chain technique, it is essential to have a solid understanding of the many
layers of interdependence that might exist. If a job does not have an effect on the
critical route, then it is delegated to a separate path, which is also referred to as the
feeding chain. The critical path contains the primary level of dependencies, which are
the most important tasks for the project.

The feeding chain

The feeding chain is a supplementary chain of dependent activities that has to

operate in parallel with the critical route. These jobs are reliant on the critical path.
Each of the feeding chains will, at some point, intersect with the critical route.

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This is due to the fact that the series of occurrences in the feeding chain only has
an impact on a single one of the jobs located on the critical route. To eliminate the
possibility of any delays occurring along the critical route, the feeding chain and the
critical path itself need to operate in tandem. Let's take a look at a simple example of
the critical route and the feeding chain to see how they work. Let's say you're in
charge of organizing the office party. Your crucial route seems to be as follows:

Decide on a theme
Send out party invites
Find a venue
Host event

Despite the fact that they are still stages on the critical route, there are some
activities in a feeding chain that have to take place in conjunction with the critical
path. For instance, the group has to select who will be invited to the party before they
can send out the invites. They have to go out and get decorations that correspond to
the theme of the event and then set up the event before they can host it. All of these
responsibilities are examples of duties that are linked together in a supply line.

The resource buffers

To guarantee that a project works smoothly and without any hiccups, buffers
are protections that are integrated into the resources that make up the critical chain.
These buffers are intended to provide more wiggle room for projects in the event that
things does not go according to plan. They are modeled by the bumpers used in
bowling lanes. Within the framework of the critical chain project management
approach, there are often three distinct kinds of buffers used:

Project buffers: The additional amount of time that is left over after the
completion of the last job but before the conclusion of the project. The
members of the team will have the opportunity to complete any remaining
project work that they were unable to get to earlier if an additional block of
time is added before the anticipated due date.
Feeding buffers: The buffer zone is the period of time that exists between the
feeding chain (also called the non-critical chain) and the critical chain. By
include this buffer in the timetable, any potential delays caused by the feeding
chain will not have an effect on the crucial chain.
Resource buffers: In the event that the critical chain requires more supplies,
such as additional team members to be on hand, additional equipment.

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3.6.3 Steps for using the critical chain project management process

Identify the critical path first: When you are working on a project utilizing
the critical chain technique, the critical route serves as the project's central
nervous system. Because it is the foundation of the whole planning process, it
is of the utmost significance to identify the individual activities that comprise
the core chain.
Determine the exact amount of resources your project requires: In this
context, the term "resources" might refer to the amount of time that the
members of your team need, the real items and tools that your team employs
to generate the final result, or the actual employees who are required to do a
job. Make an estimate of the number of resources that will be required to finish
this project if at all possible. Determine how many workers will be required to
do a particular job on the critical chain and roughly how much time it will take
those individuals to finish the activity. Carry out this step for each and every
job that has been outlined on the critical chain. Taking into account these
estimates, do you believe you have sufficient resources to finish this project?
You are able to plan around any known resource limits, such as members of
the team departing because they are going on vacation, as long as you are
aware of such constraints. The majority of the project planning is completed
before the actual work on the project ever starts, which is one of the most
significant advantages of using the critical chain technique.

Place your buffers: Once you have determined the resources that are
necessary for the critical route and feeding chains, it is much simpler to
identify where buffers should be placed and how much time or resources your
buffers should contain. This will offer you the option to calculate the buffers
that you should construct depending on the requirements that you've
previously calculated while you were establishing the critical path. This will
allow you to make sure that you don't miss any important deadlines. When a
project manager is in charge of buffer management, they have the power to
assist maintain the availability of resources and avoid any bottlenecks from
occurring.
Keep team members focused: The worst thing you can do for your team is
to try to multitask. When members of your team are required to jump between
multiple projects or different activities.

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If you want to be sure that everyone on your team can adhere to the timeline for
the project, avoid assigning too many diverse jobs to any one individual. They are
more likely to maintain their concentration if you keep them focused on a single
project or assignment at a time. Context switching, which may contribute to stress
and burnout, can be prevented in part by ensuring that members of a team are not
working on an excessive number of different projects at the same time.

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UNIT IV

PROJECT ORGANISATION & CONFLICT MANAGEMENT

4.1 FORMAL ORGANISATION STRUCTURE

An organizational structure for project management is used to establish the

levels of hierarchy and levels of power held by those who are participating in a
particular project. During the course of a project, team members will be able to refer
to a chart that contains the structure's definition of their respective functions and the
reporting lines.

4.1.1 Types of Project Organizational Structures

Within the realm of project management, there are three distinct organizational
structures to choose from: functional, matrix, and projectized. Within the context of
the already-established organizational structure, the authority, functions, and
responsibilities of the team members serve as the deciding factor for each project's
structural framework. Because there is no such thing as a "typical" project, there is
no such thing as a "typical" organizational structure.

Within each of these frameworks, the function of the project manager will
shift, and the organizational structure of any individual project will be very complex.
You may improve your chances of developing a winning strategy by first gaining an
understanding of the vertical or horizontal coordination of each framework, as well
as the function that the project manager will play.

Functional Project Organizational Structure

The hierarchy of a project that has a functional organizational structure is

organized around departments that operate in the conventional sense. Every
department is led by a functional manager who answers to an executive for their
activities. Not other members of the staff, but these functional managers are in charge
of project coordination. In addition to their duties as functional managers, they are
also responsible for selecting project team members from throughout the
organization.

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Figure 4.1: Functional Project Organizational Structure

Projectized Organizational Structure

A specialized project division may be established inside an organization via

the use of a projectized or project-based organizational structure. This division is
responsible for the vertical operation of the project coordination. The project manager
is the only person who has power over the project, and they are given committed staff
members to help them achieve their objectives.

Figure 4.2: Projectized Organizational Structure

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Matrix Organizational Structure

The reporting patterns of staff members to many authorities may be shown

using a matrix organizational structure that is represented as a grid. This
organizational structure is a combination of functional and projectized organizational
structures, and within it, project managers and other program managers share power
with one another. A matrix structure may be classified as either weak, balanced, or
strong depending on the level of decision-making authority possessed by the
individual in charge of the project.

Weak Structure

A weak structure is analogous to the functional organization structure, which

is characterized by horizontal collaboration among employees rather than vertical
coordination by a designated project manager. The personnel from across
departments, as opposed to the functional managers, coordinate the project in a weak
matrix; nonetheless, the functional manager continues to have power over decision-
making. The key distinction between a functional structure and a weak matrix is that
the functional manager continues to have authority over decision-making.

Figure 4.3 Matrix(weak) Organizational Structure

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Balanced Structure

In a matrix that is balanced, the person in charge of the project also has a staff
job, and they do not perform the duties of the project manager to their full potential.
The role of the project manager is essentially to function as a point of contact and
coordinator. The project manager does not have significant control over the project's
choices, money, or personnel.

Figure 4.4: Balanced Structure

Strong Structure

A projectized organizational structure is most analogous to the structure of a

powerful matrix. In this model, a dedicated project manager reports to a functional
project management department, is supported by a manager of all the project
managers, and has dedicated cross-functional employees.

Figure 4.5 Strong Structure

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When working in a matrixed setting, this subtype of project management

provides the project manager with the greatest amount of power. There is no such
thing as the ideal organizational setup. Instead, a project manager has to consider the
benefits and drawbacks of each structure's approach to resource allocation and
optimization before deciding which approach would provide the best results. In
addition to the benefits and drawbacks associated with the operational aspects of the
project team, the authority (decision-making power) of the project manager shifts
based on the organization structure that is chosen for the project. This indicates that
the person in charge of the project has to be equipped with both the knowledge and
the abilities necessary to implement efficient management and interpersonal
strategies that will result in a project team that is able to perform its duties effectively.

4.1.2 Features of an Organization Structure

The responsibilities that people play in a project and the interactions they have
with one another, as well as the roles that projects play with one another, may be
defined by the elements of an organizational structure. The power, communication
channels, levels of coordination and supervision, and duties each play a role in
determining these partnerships. To be more specific, the following elements are the
fundamental characteristics of an organizational structure:

Hierarchy: The hierarchy need to specify the decision-making tasks as well

as the clear chain of authority that runs through it.
Division of Labor: This is a reference to the amount of work (administrative,
task-oriented, etc.) that is linked with the jobs.
Span of Control: Determine who controls who in this section. This idea will
serve as the foundation for the reporting structures.
Position Type (Line vs. Staff): A member of the team who is directly
associated with the product is considered to have a line role. Staff roles provide
assistance to individuals working in line positions but are not directly engaged
with the production of the product.
Centralization: This determines the process through which decisions are
made. In a project that is centralized, only a small number of individuals are
responsible for making choices, but in a project that is decentralized, the power
to make decisions is spread out throughout the company.

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4.1.3 Preparation of Project Organizational Chart

To create an organizational chart for a project, you must first evaluate the
objectives of the project, find the primary team members, and give each of them the
proper responsibilities inside the project. Create the organizational chart by first
determining the functions that each member of the team will be responsible for
carrying out. In order for the project manager to be able to interact with the members
of the team before the start of the project, the project manager will create an
organizational chart at the first phase of the project. It will subsequently be put to use
by the team during the project planning phase to assist in the distribution of
responsibilities among team members. When this is done, a clear knowledge of each
function is provided, team members are given the authority to fully own their duties,
and respect is shown to other positions within the project, which instantly fosters
trust. It is essential that the organizational structure for the project be adaptable, since
subsequent stages of the project may call for changes to the structure. Make sure that
any changes that are made to the organizational structure (including any choices about
personnel) are communicated to the members of the team.

Step 1: Align the Project with Organizational Strategy

The manager of the project has to have a comprehensive awareness of how the
project's objectives relate to the overall strategy of the firm or department. Because
of this, the team will be on board right from the start, shared meaning will be
developed among members of the project team, and the project will eventually be
carried out in the smoothest possible manner.

Step 2: Analyze Projects on an Organizational Level

If a company does not have a PMO, the project manager is responsible for
doing an analysis of the volume and diversity of projects before choosing an
organizational structure. The Project Management Institute (PMI) use the volume-
variety matrix, a diagram that charts an organization's volume of projects in
connection to the variety of projects on a low-to-high continuum, to aid in defining a
project organization structure approach. The matrix shows an organization's volume
of projects in relation to the variety of projects on a low-to-high continuum. On the
other hand, if there is a low variety of projects but a large number of them, it is more
likely that a functional structure would be the best match, whereas a high variety of
projects and a high volume of them would indicate a projectized structure. A matrix
structure may be thought of as being somewhere in the middle of these two spectrums.

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Step 3: Determine Roles and Responsibilities

Before you start thinking about people, you should concentrate on figuring out
the required roles and duties. It is essential for a project manager to do research on
possible team members in order to determine which individuals are the best fit for the
project if the manager has the right to choose who is on the team. No matter how the
core team is put together, it is very necessary to have a solid understanding of the
contributions that each individual member of the team makes to the endeavor. Invest
some time in getting to know everyone on the team so that you can analyze their
capabilities while simultaneously developing rapport with them.

Step 4: Structure the Chart

The process of constructing a chart may be difficult, but you can simplify it by
addressing it from the job specifics to the overall structure, or vice versa. This will
allow you to work more efficiently. To begin, an assessment of the organization's
current structure, the project tasks that still need to be finished, and the strengths
possessed by the team should be conducted. Determine which members of the group
are more suited for leadership positions, and which members are more focused on the
tasks at hand. Naturally, the organizational structure will start to take shape as one of
the available options for organizational structures once this process gets underway.
To determine whether or not a new organizational structure would be more
appropriate, it is necessary to first map out the workflow, as well as the reporting and
hierarchical responsibilities. Before you design your structure online, it could be good
to utilize sticky notes to shift team members around before you do so. This will
depend on your preferred method of learning. As you prepare, you should make sure
that the members of the team take on an equal share of the responsibilities.

Step 5: Finalize the Organizational Chart

Create a graphic depiction of the organizational structure, and then bring it to

a conclusion. Include names and contact information for each member of the team so
that they may readily communicate with one another as the project progresses. Read
through this collection of organizational structure templates that you can rapidly
design and modify to fit the needs of your project team.

Step 6: Communicate

The quality of an organizational chart for a project is directly proportional to

the number of team members who are aware of its existence. Many times, members
of a team are unaware such a chart exists, which leads to confusion over the people
to whom they report as well as the duties of others.

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This results in squandered time and conflict that might have been avoided. The
elimination of misunderstanding may be achieved by the seemingly straightforward
action of disseminating the project organization chart to all members of the team prior
to the launch of the project. You not only make it possible for team members to
understand their function prior to carrying out the task, but you also make it possible
for them to ask questions while they picture how their work will be carried out in real
time. This is a significant advantage.

4.1.4 Factors involved in Making a Project Organizational Chart

Many different elements combine to form the context in which decisions about a
project are made, which in turn shapes the organizational chart for the project. A
project's internal restrictions, both physical and operational, as well as its external
elements, such as the circumstances of the market, might be considered to be among
these considerations. When creating an organization chart for a project, these aspects
may be categorized into the following three major considerations:

Decision Making: When making judgments, the intricacy of both the physical
and the operational limits should be taken into consideration. Inquire about the
complexity of the connections. Are the duties divided out in an equitable
manner? Who will have what kind of power over what? Which responsibilities
are more important than others?
Design: It is important to keep in mind that the design process must include
all characteristics (division of labor, spans of control, etc.), and you should
take special effort to envisage how members of the project team will
collaborate with one another. It may seem like putting together a jigsaw trying
to figure out how to regulate, coordinate, and communicate. You will need to
experiment with a few different configurations in order to see how these three
C's will function in order to discover the clearest lines between team members.
Maintain a straightforward and adaptable architecture in order to
accommodate shifting responsibilities as the project progresses.
Balance: By paying attention to the distribution of tasks and duties, you may
limit the number of problems that arise on a social, administrative, and
technological level. Try to keep the number of people who report directly to
one person to a minimum.

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4.2 ORGANISATION DESIGN

The process of influencing the manner in which organizations are constructed

and conducted is referred to as "Organization Design." It encompasses a wide variety
of components of day-to-day life at work, including team formations, shift patterns,
lines of reporting, decision-making processes, communication routes, and many
more. Any kind of organization may be assisted in the pursuit of its objectives via
organizational design and redesign. There are times when a comprehensive overhaul
of the existing structure is required. At other times, more nuanced changes to an
organization's structures and methods may be required to guarantee that it will
continue to flourish.

4.2.1 The Impact of organization Design

Implementing organizational structures and processes that are in harmony with

an organization's fundamental operations is an essential part of organizational design.
When a company is expanding or wants to reduce its workforce, it often undergoes
organizational reform. On the other hand, it might be due to a shift in the
organization's leadership or strategy, or it could be the result of changes in the larger
environment in which the organization functions. When it comes to organizational
design, efficiency may provide a variety of advantages, including the following:

An improvement in work productivity.

Making decisions in a more timely and efficient manner.
An increase in the overall quality of products and services.
Increased financial gain.
Improved interactions with the clientele.
Improvements made to the working environment.
An employee base that is not just happier but also healthier and more
motivated.
An increased level of readiness for upcoming difficulties.

On the other hand, if there are defects in the way it was designed, an organization
may face major issues, such as the following:

a solution to the issue that is ineffective.

A total waste of time.
a lack of coordination amongst the many departments that make up the
company.
Variability in the quality of the job.
Violations of the rules of legal compliance.

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Damage to one's reputation.

a lack of motivation among employees, which results in a high turnover rate.
Failed attempts to meet objectives and subpar results.

Even though a certain configuration had good results in the past, this does not
guarantee that it will continue to do so in the future. It is essential for companies to
maintain a careful watch on their organizational structures as their businesses grow
and as the environment in which they operate undergoes change. When it reaches the
point where it can no longer fulfill its intended function, then it is time to move on to
the next step of the Organization Design process. The following three concerns often
serve as the impetus for new organizational designs:

Changes in the Environment: It's possible that we're talking about internal
or external shifts here. It's possible that you've just acquired some cutting-edge
technology, or that a competitor has moved into your region. It's possible that
a crucial piece of law that affects your company went through a recent update.
Some of the changes could be thrilling, while others might make you nervous.
However, each one calls for a reaction, which most likely entails making some
adjustments to the method in which you do business.
You've Launched a New Strategy: For any variety of reasons, a company
could make the executive choice to approach its job in a different manner. This
might be a strategic decision. It is also possible that it will alter the criteria by
which success is determined. For instance, a publishing business may choose
to reduce the amount of material it puts out in print, increase the amount of
information it makes available for free online, and focus on generating a
greater portion of its revenue from advertising. In that situation, it would need
to establish new objectives for website engagement and advertising income,
which, in turn, would cause it to need to rethink its organization and structure
in order to effectively meet its new strategic objectives.
Your Current Design Is Not Fit for Purpose: The process of change is often
slow and subtle; yet, there comes a moment in time when an organization
reaches a "tipping point" and realizes it must adjust to the changes that are
occurring. It's possible that your company has maintained a very rigid,
hierarchical structure and has been hesitant to give flexible working choices
up until this point; however, it's been apparent in recent times that this has had
a detrimental impact on recruiting and worker retention. Absences are also on
the rise, but participation levels remain dismal. It's time to face facts: your
company's organizational design needs a makeover in order for you to
continue attracting and retaining the skilled workers you need in order to
remain in a competitive position.

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4.2.2 Types of Organization Design

Frequently, Organization Design may be broken out into two completely

different styles: The following table compares hierarchical and organic designs in
terms of complexity, formality, degrees of involvement, and communication
methods. The table also displays some of the important elements of hierarchical and
organic designs.

Hierarchical Organization Designs: Designs for hierarchical organizations

often fall into one of two primary categories:
Functional structures: Different departments, such as accounting, marketing,
human resources, and so on, each have their own top executives in charge of
them and report directly to the CEO. Because experts are employed by the
whole firm, this structure has the potential to be extraordinarily effective
because it makes it possible to achieve economies of scale. Nevertheless, there
must be open channels of communication and clear points of responsibility.
There is also the risk that the organization's functional goals may wind up
taking precedence over its broader objectives, and there is often very little
room for cooperation across different teams.
Divisional structures: Offices and customers provide the basis for the
company's organizational structure. Each department operates independently
and is led by a manager who is accountable to the chief executive officer. One
of the primary benefits of having a structure like this one is that each section
is able to focus only on its own efficiency, allowing its employees the
opportunity to develop strong ties to the community. On the other hand, this
may result in redundant tasks being performed. People may also have a sense
of disconnection from the organization as a whole and have less opportunity
to get training in a variety of business functions as a result of this.

4.2.3 Organic Organization Designs

The following are examples of organic organizational designs:

Simple/Flat structure: The majority of small enterprises use this format for
their organizational structure. It is possible that there are just two or three
layers of management, with everyone working together as a single, huge team
and reporting to the same individual at each level. This manner of working
may be quite effective due to the fact that duties are defined and there is a
helpful amount of latitude for adaptation. On the other hand, if the firm
continues to expand to the point that the company's founder or CEO no longer
has the time to make all of the choices, this might impede forward growth.

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Matrix structure: In this setting, most individuals are responsible for two or
more lines of report. This kind of organization may incorporate both functional
and divisional lines of responsibility. This gives it the ability to concentrate on
the performance of individual divisions while simultaneously sharing
specialized abilities and resources. However, matrix structures have the
potential to grow excessively complicated, requiring them to properly support
two distinct hierarchies, which may begin to compete with one another. In
some circumstances, the effect of this might even be increased stress and
conflict.
Network structures: This style of organization contains central, core
operations that are responsible for operating the strategic company, and it
outsources or subcontracts the non-core tasks. This structure is sometimes
referred to as a "lean" structure. This structure is very adaptable, and it can
quickly adjust to meet the requirements of emerging market difficulties.
However, since it is dependent on third parties, there is an unavoidable loss of
control. This loss of control is compounded by the myriad of possible
difficulties that arise from managing teams that are outsourced or
subcontracted.

Create a Collaborative Plan of Action

When you have given these and any other pertinent considerations your full
attention, you will most likely have a good structure in mind. Therefore, the next
stage is to make certain that you have picked the alternatives that are the most suited
for the situation, and then to establish an action plan that will assist you in putting the
new design into place. You may accomplish this goal with the assistance of a variety
of methods, such as PEST and SWOT analyses carried out with the assistance of
focus groups and surveys, internal audits, and collaborative process reviews.If you
do this, you will not only be able to acquire buy-in from individuals all across the
business, but you will also be able to make sure that it fits the aims of both the
organization and the workers of the organization.

Communicate and Provide Support

A good organizational design not only entails modifying the processes by

which individuals carry out their jobs, but also providing assistance to those workers
so that they may effectively adjust to the new circumstances. For instance, the results
of your study could convince you to switch to a matrix-based organizational structure.
However, this won't be successful unless workers are given the assistance they need
to work in areas outside of their previous departments.

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You will need to make certain that communication is crystal clear and
efficient, and that performance management strategies are current and equitable.
Create a detailed strategy for the manner in which it will function within the context
of your business, using your ideal design as a guide to follow while you do so. It is
important to be specific about roles and duties, as well as to explain precisely how
your new processes and systems will function. After that, you should arrange your
personnel so that they can follow this new design. There is a possibility that there
may be shifts in both the people and the working areas. See to it that the functional
requirements of everyone in the organization are satisfied so that they may carry out
their assigned tasks.

4.2.4 Organizational design principles

What we are developing now is one of the aspects of organizational design

that is particularly challenging. "The organization" is the obvious response to this
question. Nevertheless, what is it precisely that we are developing for the company
at this point? This is where the five fundamental principles of organizational design
come into play. Five principles of organizational design have been proposed by Goold
and Campbell. The creation of an organization is a game of tug-of-war between these
five guiding concepts. Each principle has its own test that may be used to determine
whether or not the present circumstance satisfies the principle.

Specialization principle: According to this guiding idea, there should be

defined limits in order to foster the growth of specialized abilities. The
question that has to be answered here is whether or not any specialist cultures,
which are parts of the organization that must be distinct from the rest of the
organization, have enough safeguards against the impact of the dominant
culture.
Coordination principle: According to this guiding concept, all of the work
that is carried out should be organized as a single entity. This unit could be a
business unit, a business function, an overlay unit for horizontal coordination,
a sub-business, a core resource unit, a shared service unit, or a project unit.
The question that has to be answered here is whether or not there needs to be
collaboration amongst departments, which is a difficult task. The term
"difficult links" refers to connections that, via typical networking, will not
deliver any advantages in terms of coordination. In such circumstance, either
the process of coordination needs to be simplified or the responsibility ought
to be centralized inside a single entity. As we shall see in the next section,
organizational design may make use of a wide variety of various units.

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Knowledge and competence principle: According to this guiding concept,

tasks and duties should be delegated to the individual or group that is most
capable of doing them. This indicates that higher levels keep hold of jobs on
the basis of the knowledge and advantages they possess over lower levels. In
the event that this is not the case, they need to be placed lower on the
organizational hierarchy. This indicates that the Chief Executive Officer
(CEO) should not be engaged in every decision, and particularly not choices
that entail experts with much greater understanding on the subject area. The
role of the CEO is to look at the large picture and strike a balance while making
difficult choices that will have an effect on the business and its strategy.
Control and commitment principle: This idea entails, on the one hand,
having effective control while, on the other side, retaining involvement and
commitment. There should always be a balance here. The litmus test for this
situation is to have a control procedure that is in line with the responsibilities
of the unit, is easy and inexpensive to execute, and is inspiring for the people
who work in the unit. This indicates that the Chief Executive Officer is not
going to provide the "go" signal on the purchase decision for the $30 keyboard;
doing so would be very demotivating, and power over such tiny expenditures
need to be located lower in the company in order for it to be adaptable anyhow.
Innovation and adaptation principle: According to this guiding concept,
organizational structures should have an amount of flexibility that allows them
to adjust to a dynamic environment. The organizational design must be able to
pass this test by demonstrating that it will facilitate the creation of new
strategies and the adaptability to upcoming changes. In the following sections,
we will provide a case study of a business that suffered as a result of its
inability to adapt to a quickly changing environment, which negatively
impacted both its internal operations and its bottom line.

4.3 CONFLICT MANAGEMENT

The process of identifying and resolving conflicts in the workplace is referred

to as "conflict management," and it consists of a range of approaches. In light of the
fact that conflict is an inevitable aspect of every working environment, the objective
of conflict management is not to eradicate conflict entirely but rather to identify and
lessen the bad impacts that it has. The resolution of disputes in a way that is both fair
and effective requires the application of conflict management. By doing so, you may
minimize bad communication between coworkers, reduce stress in the office to boost
productivity, and maintain employee morale high at the same time.

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4.3.1 Types of conflict management

There are five different approaches to managing conflict, and the one you choose
will depend on the sort of personality you are interacting with. These approaches are
as follows:

Accommodating: This method of resolving conflicts involves giving in to the

demands of the other party in order to maintain harmony. When you feel that
the topic at hand is not as essential to you as it is to the other person, you may
find it useful to adopt a more flexible stance. If you are aware that you are in
the wrong or if you desire to maintain the peace in the workplace, it may be
suitable for you to choose this mode of communication. You may also employ
this method of conflict management by empathizing with the other person and
putting yourself in their shoes in order to better understand their position. One
example of this would be a consumer who requests a refund despite the fact
that they do not have a warranty. You are aware that you are in the right, but
you make the decision to give in since you value the customer's business and
the goods in issue does not have a particularly high price tag.
Avoiding: This approach to managing conflict consists of doing nothing more
than ignoring the current problem. In this scenario, you would steer clear of
the individual or the problem at all costs. Utilize this mode of writing when
you believe that you do not have enough time to address the subject or when
you consider the issue to be unimportant. You may also profit from using the
avoiding approach if you are unsure how to reply to anything or if you have
not yet adequately developed an opinion on the matter. When your coworkers
are pushing for a more comfortable dress code, but you are too busy working
on end-of-year financial filings to get engaged in the discussion, this is an
example of the sort of conflict management known as "conflict avoidance."
Compromising: This approach to managing conflicts provides you with the
option to discover a solution that is acceptable to all parties engaged in the
issue. When trying to find a solution, using a style that is more willing to
compromise is going to be more beneficial to everyone than trying to win an
argument. For instance, you might divide up the tasks among the team
members so that the project may be completed before the allotted time.
Collaborating: This approach to managing conflict goes beyond locating a
happy medium and instead focuses on finding a solution that will satisfy all
parties involved. When the connection between the people involved is more
important than the disagreement, use the collaborative method of conflict
resolution. To illustrate, one way to maintain a healthy connection with
shareholders would be to find a solution to their disagreement.

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Competing: Using this approach to managing conflict requires you to remain

steadfast in your argument while simultaneously rejecting that of others until
you achieve your goals. When a choice has to be made fast, when a problem
that has been going on for a long time needs to be settled, or when you are
standing up for your rights or the rights of others, use this approach.

4.3.2 Valuable skills for conflict management

The ability to effectively handle conflicts depends on one's possession of the

appropriate abilities. The following is a list of the most critical abilities that you will
probably require in order to manage conflicts while you are working:

Communication: The capacity to express oneself courteously while

maintaining the potential to persuade others of one's point of view
Discussion: The capacity to engage in debate over a variety of topics, as
opposed to restricting one's expression of opinion to those with whom one
agrees.
Positivity: The capacity to refrain from playing the blame game and
acknowledge that everyone is capable of making errors in order to forestall the
escalation of conflict.
Listening: The capacity to listen attentively to another person without forming
quick judgments or assuming anything about what they are saying.
Impartiality: The capacity to resolve a quarrel by focusing on the problem
rather than the people involved in it.
Patience: The capacity to exercise patience and refrain from engaging in
confrontation that is not required.
Facilitation: The capacity to bring together competing groups in order to
reach a consensus and solve a problem.
Mediation: The capacity to act as a facilitator in the process of finding a
solution while also mediating conflicts.
Assertiveness: The capacity to remain steadfast in one's beliefs and to
advocate for one's own rights as well as the rights of others
Emotional intelligence: The capacity to exert self-control over one's emotions
in order to prevent such feelings from gaining the upper hand during a dispute.
Empathy: The capacity to put oneself in the position of another individual in
order to feel what it is that the other individual is experiencing
Open communication: The capacity to speak one's mind openly and honestly
during a dispute in order to more easily reach a conclusion
Avoiding criticism: The capacity to state your case without attacking the
viewpoint of the person who disagrees with you.

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Responsibility: The capacity to accept responsibility for one's own acts when
those activities have caused consequences
Stress management: The capacity to exercise appropriate stress management
in order to avoid making a bad situation worse worse
Nonverbal communication: The capability to treat your opponent with
respect in your nonverbal communication by not rolling your eyes or imitating
them in any way.
Humor: The capacity to make proper use of humor to defuse potentially tense
situations and make it easier to find a resolution to problems
Problem solving: The capacity to address issues in a time-effective manner
Perception: The capacity to see a situation from several perspectives in order
to find a resolution.
Decision making: The capability to make choices on whether or not to
continue engaging in the fight.

4.4 ORIGIN & CONSEQUENCES

Conflict in the workplace is something that is inevitable in every business. But

if these disagreements aren't handled in a timely manner, then there will be major
repercussions for everyone involved, including the business, the leadership, and the
personnel. Conflict in the workplace has a variety of effects on both workers and
employers. It has the potential to bring about lower levels of production and morale
as well as higher levels of stress. In addition to this, it may result in absenteeism,
turnover, and legal problems. It is the responsibility of every leader and manager to
first identify the factors that contribute to conflict in the workplace and then devise a
strategy for resolving disputes in a manner that is beneficial to all parties involved.
Although the word "conflict" only ever alludes to unfavorable events, there are
sometimes advantageous results to conflicts.

4.4.1 Negative Consequences of Conflict at Workplace

Conflict in the workplace may lead to a number of undesirable effects, including the
following:

Reduced productivity: When there is a problem, staff have to spend their

valuable time trying to manage that issue. In the workplace, they engage in
activities such as talking, taking sides, and playing political games. All of this
drains their positive energy, and they find it harder and harder to concentrate
on the work at hand, which eventually results in a decrease in their level of
productivity.

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Low morale: Conflicts have a negative impact on both the morale and
motivation of the members of a team. Employees will naturally experience
increased levels of tension and will be unable to concentrate on their work if
disagreements are not handled. When disagreements continue for an extended
length of time, workers tend to feel uneasy about both their current job and
their future prospects. This state of mind is the primary contributor to their
lackluster morale.individuals whose morale is poor are more likely to be
frustrated, and dissatisfied individuals are more likely to cause further
problems in the workplace. This is yet another disadvantage associated with
conflict and low morale.
Increased employees’ turnover: Employees who are subjected to ongoing
disagreements at work may finally come to the conclusion that they want to
quit the firm. They reach this conclusion after experiencing a great deal of
mental strain and frustration as a result of the poisonous circumstance. When
top executives or managers leave their positions because of unresolved
dispute, it is a devastating blow to the organization. This deals a significant hit
to both the reputation of the organization and its performance.
Absenteeism: Conflict in the workplace might result in increased absenteeism
because workers feel the need to take time off in order to cope with the stress.
They've reached their breaking point as a result of the never-ending drama at
work. They also get the impression that they are powerless to fix the dispute
and begin to avoid working in surroundings that are unpleasant and poisonous
due to the presence of conflict. Absenteeism among workers makes the issue
even more difficult to manage since it reduces overall productivity and drives
up labor costs by necessitating more frequent searches for substitute workers.
Mental health Issues: Employees are more likely to have negative
consequences on their well-being and particularly their mental health if there
is conflict in the workplace. They could have symptoms such as headaches,
disturbed sleep, decreased appetite, feelings of worry and despair. When they
are at a standstill and unable to find ways out of an ongoing argument,
members of the team experience increased levels of stress. According to the
findings of one piece of research, workers who report that disagreements in
the workplace are resolved via conversation had a lower risk of experiencing
bad health effects. Those who claim that there are no efforts made to mediate
disagreements at their place of employment report much higher levels of
stress. Moreover, stress levels are higher overall in the population.

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Financial cost: Furthermore, wars are quite expensive. Businesses that are
unable to handle disagreements in the workplace are forced to absorb financial
damage as a result. According to research that was carried out by CPP Inc. in
the year 2008, workers in the United States spent an average of 2.8 hours per
week settling disputes, and the financial cost of these disagreements was close
to 359 million dollars. When there is a high turnover rate among employees
because of disagreements, companies have to pay additional costs for the
recruitment and education of replacement workers. Conflicts that are not
addressed result in the loss of clients for an organization, which in turn leads
to a loss of finances and a poor reputation.
Poor Communication: Unresolved conflict in the workplace is another factor
that contributes to ineffective communication. When workers are continuously
arguing and fighting with one another in the office, their capacity to
communicate effectively is negatively impacted. This results in
misunderstanding, distrust, and poor morale, all of which contribute to further
deterioration of the situation. The ability to communicate clearly and
effectively is essential to performance. And the failure to communicate
effectively leads to decreased production, increased employee turnover, and
monetary loss.
Violence: When a problem is not addressed or resolved, it has the potential to
escalate into severe fighting, which may subsequently incite acts of violence.
It takes place when workers' voices are not acknowledged and there is no
significant attempt made to address the disagreement. When there is violence
in the workplace, businesses suffer enormous losses not just legally but also
financially and in terms of their brand. In addition to this, workplace violence
has been shown to have a detrimental effect not just on the workers' physical
and mental health, but also on their morale and their level of productivity.

4.4.2 Positive Consequences of Workplace Conflict

Creativity and problem-solving skills: When workers are dedicated to

resolving their differences, they will sit down together to brainstorm
innovative approaches to problem-solving and conflict resolution. They are
forced to reconsider their previous opinions and starting positions in light of
new information. This promotes innovative ways of thinking in order to come
up with one-of-a-kind answers. Therefore, workers become more creative as
a result of conflict, and their capacity to discover solutions to their issues
improves as a direct result of this increased ability.

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Empathy: When employees sit down together to settle a problem, they get a
deeper understanding of each other's feelings and distinct perspectives on the
situation. Given that disagreements in perspectives and tensions of personality
are the most common causes of conflict. Therefore, it would be beneficial for
members of the team to develop and acquire empathy, since this would allow
them to lessen the chance of future confrontations.
Emotions expressed: Employees get a chance to express their genuine
sentiments and emotions via the conflict resolution process. It is very
necessary to allow one's sentiments, particularly negative ones such as distrust,
grievance, wrath, and fear, to be expressed on several occasions. This is
especially true for negative emotions. In the event that these feelings are not
addressed in a timely manner and in the appropriate manner, then it may
trigger in an unanticipated way, causing more harm. Their anger shouldn't be
allowed to build up over a longer length of time than necessary. When workers
express these feelings during their argument with one another, even if they
don't go beyond a specific limit in their expression, there is a decreased
likelihood of physical violence occurring.
Emergence of new leaders: It is a common observation that disagreements in
the workplace result in the emergence of new leaders. Conflicts in a team
sometimes force people who have previously kept to themselves into a
position where they are forced to display their leadership abilities. This occurs
when those who have the potential to become leaders are given the chance to
hear opposing viewpoints and arguments. They make their presence known
and provide a new point of view to the process of resolving disagreements.
And as a result of being put through this ordeal, they emerge as powerful
leaders who are capable of guiding their team, particularly when things are
difficult.
Changes in Communication style: It is through conflict that members of a
team are brought closer together and have the chance to better grasp each
other's perspectives and points of view. It is helpful in identifying the areas in
which communication breaks down and misunderstandings emerge. The
members of the team are able to figure out what the appropriate
communication style for the future should be after communication gaps have
been correctly recognized and examined. What were the important takeaways
regarding the establishment of efficient communication, and which routes of
communication have to be used in the future in order to steer clear of
disagreements of this nature?

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4.5 PROJECT TEAMS

Team conflict is an unfavorable, interpersonal issue that arises between two or

more members of the same project team. Because it has an impact on the outcomes
of collaboration, it causes the team to perform below its potential. The scenario that
arises when the equilibrium between the members of the project team's views, aims,
and/or values is disrupted is what causes the disputes that occur on project teams. As
a result, these individuals are no longer capable of working successfully together, and
the climate of this team will never allow them to accomplish their common objectives.

4.5.1 Typical sources of team conflict

Let's go through some of the common reasons for disagreements in groups.

One's own perspectives: Reality and what a person sees it to be in a given

circumstance are not always the same thing. As a consequence of this, the
members of the team could have various understandings of the exact same
circumstance or incident, and they might not be able to come to an agreement
with one another. This has the potential to be a point of contention for the
team.

Moral principles: People live their lives according to a diverse set of beliefs
and ideals, and these variances may lead to disagreements amongst individuals
over how they conduct themselves in the workplace. The atmosphere of the
team may experience tension as a result of divergent points of view if the
members' core beliefs prompt them to adopt opposing stances when
confronted with a specific challenge.

The targets: Different people may have the same goal in mind, but their
motivations for working toward it may be quite different. Because it causes
members of the team to argue with one another on the most effective approach
to taking to complete this assignment, this is also a source of conflict within
the team.

When disagreements arise as a result of any of these variables, they have the potential
to have negative effects on the overall effectiveness of teams and projects.

4.5.2 Importance of Conflict Management in Teams

Even while disagreements between members of a team are often perceived as

a negative feature, they may really assist the team achieve greater achievements. If
we properly manage them, then the statement in question is accurate.

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It is primarily due to the fact that disputes may have an advantageous influence
on a project that competent conflict management is necessary for productive
cooperation within a project setting.
Managing project conflicts is not only an essential procedure that may assist
teams in achieving a higher level of performance, but it is also the means by
which they can attain a common objective.
Individuals have a significant challenge while attempting to work
collaboratively since they are forced to contend with a variety of factors. It is
possible that there will be a greater number of disparities amongst the
individuals who are working on this project if the project duties are more
intricate.

To put it another way, a rise in the complexity of the project tasks will lead to an
increase in the frequency of team disagreements. As a consequence of this,
individuals of the team will be required to collaborate more closely with one another,
which may result in an increase in the amount of conflict that occurs among them.

4.5.3 Classification: Three Types of Team Conflict

Classification of employee disputes is the cornerstone of efficient team

conflict management. Having a clear understanding of the nature of a conflict enables
team leaders to choose the most effective tools for conflict resolution and to deploy
methods that are tailored to the specific nature of the conflict being managed.

By Functional Attribute

To begin, disagreements between members of a team might either have a

constructive or dysfunctional purpose.

Functional conflicts are disputes that do not substantially influence the

performance of the team, which allows the team to continue to operate and be
in a position to accomplish the outcomes that have been envisioned.
Conflicts between workers that disrupt collaboration and prohibit members of
the team from pursuing common objectives are referred to as dysfunctional
conflicts. As a consequence, the team as a whole becomes dysfunctional, and
it is unable to accomplish the outcomes that are wanted.

The many kinds of team conflict that are described here are defined by taking into
account the functional aspect of project teams.

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By Origin of Conflict

Investigating how a dispute has developed or concentrating on where the

problem originates from are two other ways to categorize workplace disagreements
between employees. In keeping with this notion, the following factors should also be
taken into consideration as origins of group conflict:

Values of team members. Although every member of the team has their own
set of values, they are expected to adhere to the team's ideals. A discrepancy
between the ideals may give birth to conflict if and when it becomes apparent.
Goals versus Expectations. When objectives are not adequately created, they
often do not connect to the real expectations of the group, which may lead to
conflict within the organization.
Roles and responsibilities. A disagreement amongst employees is likely to
occur if the appropriate tasks and functions are not distributed to the
appropriate individuals.
Lack of resources. Because of this, every team is forced to make do with a
certain amount of resources, which raises the potential for conflicts within the
group.

Team leaders are able to use their abilities in conflict resolution, such as
intervention and feedback, to investigate the underlying causes of a group dispute
when faced with these sorts of team conflicts.

By Behavior

In addition to this method of researching disputes within a team, there is also

another method that may categorize conflicts into the following categories:

Conflicts that are healthy for the team. When members of a team develop
individually and expand their qualifications, conflicts of this kind are certain
to happen. Constructive team disputes lead to the discovery of a solution to an
issue and foster a sense of unity among the members of the team.
Conflicts that are harmful to the team. They occur when the method that teams
use to solve problems is unsuccessful, meaning that no solution is produced
and the issue is still there. Conflicts that are destructive amongst members of
a team defocus the collective effort and drain energy away from things that
should be emphasized. These kinds of disagreements are destructive to the
team's morale and cause it to become divided.

Because they will be able to explore the nature of team disputes and come up with
the appropriate resolution, team leaders will be able to accomplish better.

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4.6 MANAGING CONFLICT

The following is a list of typical strategies for conflict management:

Collaborating: This approach to managing conflicts has the greatest long-

term benefits, despite the fact that it is typically the one that is the most
challenging and time-consuming to implement. After taking into account the
requirements and requirements of both parties, a solution that is beneficial to
both sides and satisfactory to both sides is discovered. This usually involves
all of the people involved sitting down together, talking about the dispute, and
negotiating a solution to the conflict together. When it is essential to preserve
the connections between all parties or when the solution itself will have a
substantial effect, the collaborative conflict management approach is used as
a method for managing disagreements.
Competing: The alternative method of dealing with conflict is one that does
not accept compromise and does not give in to the thoughts or wishes of other
people. One of the parties is unwavering in their stance about the manner in
which they think a predicament should be addressed, and they refuse to give
in until they achieve their goal. This might occur in circumstances in which
one's morals demand a certain course of action, when there is no time to try
out an other option, or when a choice that is likely to be controversial has to
be taken. Disputes may be settled quickly, but there is a significant possibility
that morale and production will suffer as a result.
Avoiding: The goal of a conflict manager with strong conflict management
abilities is to limit the amount of conflict that exists by either ignoring it,
eliminating the people who are in conflict, or avoiding it in some other manner.
It is possible to dismiss members of the team who have disagreements about
the project's direction, extend the deadlines, or transfer personnel to other
departments. This method of managing conflict might be useful when it would
be helpful to take a break from the disagreement for some time, or when you
need more time to think about where you stand with regard to the issue itself.
However, avoidance should not be used in lieu of appropriate conflict
resolution. Putting off dispute resolution indefinitely may and will lead to
additional (and greater) issues down the road. Avoidance should not be used
as a substitute for good conflict resolution.

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Figure 4.6: Conflict management styles

Accommodating: To handle conflict in an accommodating manner is to

prioritize the requirements of the other party above one's own requirements
wherever possible. You concede defeat and let them have their way. When
you do not care as much about the topic as the other person does, when it is
not worth your effort to continue the dispute, or when you think that you are
in the wrong, accommodation is the strategy that you should take. This strategy
is avoiding conflict wherever possible, using only as much effort as is
essential, and being aware of when and how to assert yourself.
Accommodation, despite the fact that it could seem to be a weak alternative,
can sometimes be the greatest approach to overcome a small quarrel and move
on to more serious matters. This approach is quite cooperative on the side of
the one who is resolving the conflict; nonetheless, it may result in animosity.
Compromising: In order to resolve conflicts with this method, both sides are
asked to compromise on some parts of what they want in order to achieve an
agreement. This method searches for a middle ground. This approach is
frequently referred to as "lose-lose," which comes from the fact that both sides
will have to give up a few items in order to achieve an agreement on the more
significant problem. This is used in situations in which there is a time
limitation or when a solution just has to take place rather than being ideal.
When trying to resolve a problem, excessive use of compromise as a method
might lead to feelings of resentment, hence it is best to use this strategy
sparingly.

4.6.1 Managing conflicts

Be aware of conflict

Always keep your eyes and ears alert for any changes in the mood of the
workplace as well as any early symptoms of a dispute brewing. Avoid turning a blind
eye to the signs that there is a concealed dispute.

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The only circumstances in which it is prudent to overlook a conflict are those in

which it is just temporary and unlikely to escalate. Ignoring a problem may seem like
a simple solution in the beginning, but in most circumstances, it is not helpful and
will make the matter more difficult to settle in the future.

Take a considerate and rational approach to conflict

Maintaining composure and ensuring that you can respond to a given

circumstance in a way that is deliberate, reasonable, and objective are two of the most
effective techniques for managing conflict. If you have a personal stake in the matter,
you may want to consider delegating the problem to another party. Try to resist the
urge to respond in a "fight or flight" manner by following your natural instincts.

Avoid passive behaviour

Do not adopt a position that is apologetic and be willing to accept all points of
view, regardless of whether they are correct or incorrect. In a same vein, refrain from
engaging in hostile behavior; do not adopt an authoritarian stance and ignore
arguments that are supported by reason. Instead, you should make it a priority to adopt
a posture that is aggressive, treat all persons involved with respect, and listen to all
points of view. When interacting with individuals who are participating in conflict
situations, it is important to be mindful of the words you use as well as your body
language. First and foremost, maintain your impartiality and center your attention on
the facts.

Investigate the situation

Spend some time gathering information to determine what has occurred, who
is involved, how individuals are feeling, and what the problems are. Don't form hasty
judgments or assume the worst about the situation. Talk to people involved one-on-
one and in confidence, and make sure you give careful attention to what they have to
say by actively listening to what they have to say. Make an effort to discover any
underlying reasons of the disagreement, some of which may not be immediately
apparent. For instance, a member of the staff may have the impression that they are
involved in a fight with their coworkers, but the real issue may be that they believe
their supervisor is treating them unjustly. Be conscious of the fact that different
people could have contrasting interpretations of the same event.

Decide how to tackle the conflict

After doing an investigation into the circumstance, consider what course of

action would be most effective in resolving the problem. Consider the following:

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Should I take this situation seriously, or is it more of a joke? Is there a

chance that it will become worse?
Should we resort to organizational punishment or the grievance process?
Should the situation be brought to the attention of a superior, or does it fall
within your purview to handle it?
Do you know whether there are any legal difficulties involved? Before
taking any action in a predicament where the law may be involved, it is
best practice to discuss the matter with the HR department of your
company.
Do you think it would be acceptable for a representative from a labor union
to be present?
Is it better for you to decide how to go with the matter on your own, or do
you think that a casual get-together to talk about the subject could be more
beneficial? Will the parties agree to abide by your decision?
Is it necessary to wait for the intensity of the feelings to go off before
moving on?

The answers that you provide to these questions will assist you in deciding
what course of action to pursue. In certain circumstances, official procedures, such as
legal actions, may need to be initiated for a variety of different reasons; if you are
unsure whether or not this is the case, contact your organization's human resources
department. However, many problems may be handled without the need to resort to
time-consuming and expensive legal battles. A solution that is imposed that is not
mutually agreed upon by all parties is likely to be less successful than a solution that
is mediated and that is agreed upon by all parties.

Let everyone have their say

If you are able to bring the people involved together, you will likely be able to
find a solution that is to everyone's satisfaction. Approach the gathering with an
attitude that is upbeat, kind, and aggressive, and begin by laying out the parameters
for the discussion. The parties involved will be encouraged to communicate their
opinions in an honest and open manner, as well as to get an understanding of the
factors that led to the dispute and to locate potential resolutions. Make it a point to
give everyone an opportunity to voice their opinions and concerns when the
opportunity arises. If people believe that their point of view has been acknowledged
and their worries have been taken into account, they will be more prepared to give up
entrenched stances and accept the possibility of reaching a compromise.

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Identify options and agree on a way forward

This is the most crucial and sometimes the most challenging component of the
strategy for conflict management. The following procedures might be beneficial in
obtaining a consensus:

Establish a setting in which all participants feel comfortable speaking freely

and candidly with one another.
It is important to acknowledge emotional concerns since they are often at the
core of the problem and must thus be treated.
Consider very carefully the amount to which you are required to maintain
control of the gathering and make contributions to the conversation that is
taking place.
Investigate the factors that led to the divergence of opinion.
Figure out if there are any misunderstandings or misperceptions that are
preventing progress.
Encourage the parties to consider their own stances and look for areas in which
they might find common ground with the opposing side.
Seek for issues that could be open to negotiation, and look for win-win
solutions that take into consideration the needs and concerns of all involved
parties.
Request from the parties involved that they provide their preferred options.
Ensure that there is time for introspection.
Determine the merits of each alternative, and then assist the parties in reaching
a consensus over which choice offers the most promising next step.
Ensure that all parties are committed to any agreement, and get a consensus
on when the agreement will be reviewed.

In the event that no progress is achieved, a time of contemplation may be

helpful; but, in the end, it may be required to bring in another conflict manager or to
consider seeking assistance from an outside source, such as a mediator, an ADR
(alternative dispute resolution) professional, or an arbitrator. In these challenging
situations, when reaching total agreement is unattainable, you should strive to find a
solution that can be accepted by everyone, even if it is not the alternative that each of
the people involved would choose if given the choice.

Implement what has been agreed

It is essential to make certain that everyone understands what has been decided
and that they are willing to accept personal responsibility for any actions that have
been agreed upon. There are circumstances in which a written agreement could be

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suitable. Be cautious in this situation if there is any potential for any of the persons
involved to feel embarrassed, such as if it includes making public apologies.

Evaluate how things are going

Do not make the assumption that the problem has been fixed for good.
Maintain a close watch on the developing issue, and periodically assess how
effectively the proposed remedy is functioning. If there is a recurrence of the issue, it
is possible that more action may be required.

Consider preventative strategies for the future

Consider the events that transpired during the disagreement and how they were
resolved. What can you take away from those experiences? How may things be
different the next time around? What are some ways that you might improve your
ability to handle conflicts? You may want to think about getting some kind of training
or other sort of professional development on tactics for influencing others, mediating
conflicts, or resolving disagreements, either for yourself or for a colleague. When
taking a more macro view of the situation, it is important to assess what steps might
be made to strengthen working relationships and foster an environment that values
open dialogue and consultation. It is possible to reduce the likelihood of future
conflict by encouraging workers to feel as if they are contributing to a shared goal
and cultivating a sense of collective identity among the workforce.

Team methods for resolving conflict

Disagreements among team members over the aims, procedures, or

requirements of the team may lead to conflict within the team. Dissimilar
personalities are another factor that might contribute to disagreements. At first, these
disagreements may seem to be nothing out of the ordinary; nonetheless, if they are
not resolved, it might have a negative impact on both production and general morale.
In the event that disputes emerge between members of a team, discussing these
differences of opinion and arriving to a consensus enables everyone to continue
working together in a way that is amicable and fruitful. The ability to mediate and
resolve conflicts is an essential leadership attribute. People who are able to identify
disputes, recognize differences, and find swift and amicable settlements to those
differences are crucial to any company.

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4.6.2 Importance of the conflict resolution

The ability of any team to successfully resolve conflicts is critical to that team's
overall success. Leaving a quarrel unresolved may have a detrimental effect on both
morale and productivity, leading to an atmosphere at work that is hostile and
uncomfortable for everyone involved. The successful resolution of disputes in the
workplace enables teams to gain confidence in one another and to collaborate more
effectively in order to accomplish their objectives. The settlement of conflicts enables
members of a team to have a deeper mutual understanding of one another and more
harmonious working relationships in the future. The following is a list of four distinct
forms of team disputes that are typical in working environments:

Task-based conflicts: When team members are dependent on one another to

execute a job or project, task-based disputes arise. Failure on the part of one
team member to execute their assigned work might have a domino effect on
the progress of the other members. If an employee, for whatever reason,
consistently submits reports late, the accountant will inevitably fall victim to
the same problem. Make sure everyone on the team understands their role and
how they can contribute to completing projects effectively and on time to
prevent these types of disagreements.
Leadership conflicts: Disagreements may arise when leaders have different
approaches. Every team leader has their unique style. Some leaders are more
commanding than others, while others are more democratic and foster
teamwork. Recognizing and appreciating these variances among team
members may help avert leadership style disputes. You should know your
personal leadership style and how you engage with your team if you're in a
managerial position. Depending on the people of your team and their
individual circumstances and quirks, you may need to modify your approach
to leadership.
Work style conflicts: Different leadership styles need various approaches to
the job. Work style disputes arise when team members have divergent
expectations for completing the same work. Some people like to work fast and
move on to the next job as soon as possible, while others want to take their
time and focus on each step. Some individuals can be trusted to get things done
with little oversight, while others need to be micromanaged at every turn.
Recognizing that everyone's work style is different and finding methods to
cooperate to reach the same objective despite those variances is the greatest
approach to prevent these sorts of confrontations.

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Personality clashes: Some of the most prevalent causes of tension in a team

are differences in personality. Disagreements of this kind arise when members
of a team have vastly different character traits. It's impossible to get along with
everyone you meet, whether they're friends, family, or coworkers. Working
with someone whose personality clashes with yours may be difficult.
However, it's crucial that they learn to put aside their disagreements and
cooperate in order to achieve their goals.

4.6.3 Resolving the team conflicts

Misunderstandings and poor lines of communication are common contributors

to workplace confrontations. Team members are able to improve their working
relationships and output when disagreements have been addressed effectively. Here
are some helpful approaches to settling disputes at work:

Stay calm: Maintain your composure and act professionally when a

disagreement develops. Before trying to resolve the disagreement, it's
important to take a few deep breaths and calm yourself. Create a strategy to
end the fight before things become worse.
Communicate (and listen): Locate a quiet area to address the problem
without being overheard. It's crucial that everyone concerned be able to voice
their opinions and get feedback. Focus on the other person and their feelings
while yet conveying your message clearly.
Acknowledge the conflict and find a resolution: Recognizing the existence
of a disagreement is a first step in resolving it. When the problem is identified,
everyone must work together to find a solution. Focus on where you and your
coworkers agree instead of where you disagree, and make an effort to see the
problem from their perspective. This will enable you to work together to find
a solution by understanding their perspective.
Involve leadership or HR: If you're having trouble resolving a problem,
whether it's because someone is refusing to collaborate or because of
something far more severe like harassment or discrimination, you may need to
consult your company's human resources department or a supervisor.

Conflict resolution in the workplace calls for cooperation and an appreciation of one
another's perspectives. After disagreements have been settled, the next step is to
accept that slip-ups are inevitable. When employees are ready to work together to
address workplace disputes, the team as a whole benefit.

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UNIT V

CONTROL AND COMPLETION

5.1 PROJECT CONTROL

Project controlling entails collecting and analyzing information on the time

spent and money spent on a project to ensure that it remains on track. Evaluating the
project's present state, making predictions about the future based on current
measurements, and then taking corrective action are all part of the controlling process.
Controlling projects may be difficult since things don't always go as planned in a
dynamic and unpredictable project environment.

5.1.1 Importance of Project Controls

The level of satisfaction felt by all parties involved in a project is proportional

to how well the project is managed. The accumulation of several little problems may
have a devastating effect on a project's timeline, budget, quality, and risk.In order to
keep the project on schedule, the project control process identifies and resolves such
minor difficulties as they arise. Whether they're overseeing a large construction
project or a website launch for a small firm, project managers know that unforeseen
obstacles, including extra expenses or delays, may pop up at any time. However,
without proper project controls in place, these problems may delay or derail the
project.

5.1.2 Features of Project Controlling

Applied at Every Level: When it comes to managing a project's resources,

controlling is a top-down procedure in which upper management sets out the
big picture goals and financial limitations that must be adhered to.
Ongoing Process: The controlling process is an ongoing method through
which progress is tracked and deviations are mitigated, and it must be used for
the whole of the project. As a result, the company is able to take a preventative
rather than corrective stance.
Regular Feedback: The project gets continuous feedback on its progress or
deviations by assessing actual results versus forecasts on a regular basis.
Flexible: Depending on the specifics of a project and its current stage, the
project control procedure may be modified as needed.

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5.1.3 Benefits of Project Controls

Optimized Resource Consumption: By routinely monitoring the processes

and checking to see that the project is progressing as planned, this procedure
helps to guarantee that all available resources are put to good use.
Facilitates Decision Making: Maintaining close tabs on processes and
outputs allows management to react quickly to any deviations and bring the
project back on track.
Accountability: Controlling a project effectively helps in defining roles and
responsibilities.
Better Coordination: More openness and greater coordination between the
teams to address issues early on is a result of the frequent evaluation of the
processes and the effect of each action assessed against the intended objective.
Regular Reporting: Process performance is monitored on a regular basis and
compared to expected outcomes. This means that reports on the project's
progress are made often.
Avoiding Gold Plating and Scope Creep: Project controlling helps to
prevent "gold plating," in which unnecessary additional features are added to
a product, and "scope creep," in which the scope of a project is expanded
without a formal change request being submitted.

5.1.4 Steps Involved in Project Controls Process

The following are quick explanations of the four stages that make up project
control:

Standards and Baselines: Establishing the criteria (qualitative or

quantitative) that must be met by the outputs. The performance of the project
deliverable is measured against the baseline, which is an established plan
adopted at the planning stage.
Measurement: Project operations and outputs may then be evaluated in
relation to the specified standards and baselines. There are progress reports,
dashboards, and checklists provided.
Analyzing the Data: Checking the gathered information against the
established norms and benchmarks for discrepancies.
Corrective Steps: If the discrepancies are more than acceptable and can be
fixed, this phase is working to close the gap.

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5.1.5 Types of Project Controls

Feedback Control: This form of control employs inspection and feedback to

guarantee that the final product meets all of the specified criteria.
Concurrent Control: This kind checks in to see whether the project is on
track by monitoring progress against key milestones and identifying any
necessary course corrections.
Predictive Control: The projected performance or cost at the project's
conclusion is based on measurements of the present performance of the project
or the actual cost expended to the current date.

5.1.6 Processes That Define Project Controls

Perform a root cause analysis in the event of a deviation for a more effective
project control method. That is why tracing the deviation in outcome back to its
source is so important. Therefore, we want a unified feature for project control that
can provide an overview of all activities.

Project Planning: This is the phase of the project when the project managers
and control managers work together. In this phase, decisions are made on the
project's budget, timeline, and scope statement, and progress is tracked against
these targets.
Budgeting: Integrating the budgeting process into project operations is crucial
for comprehending the root causes of variations. Transparency in the form of
time phased budgets provides top management and project teams with a
standard against which to measure the project's success.
Risk Management: The project control role has significant ramifications for
risk management. The project control process aids in limiting the effect on the
budget and schedule by identifying possible risks, monitoring and analyzing
the impact of risks, and devising measures to minimize risks.
Change Management: Several factors contribute to project deviations, and
none of them can be isolated as the root cause. As part of the process of
managing change, it is necessary to identify and evaluate the effect of each
change request before choosing whether or not to accept it. As a result of this
procedure, accepted change requests may be reflected in updated baselines and
unambiguous responsibility can be established.
Forecasting: Project managers may foresee how well a project will do after
it's finished by comparing its present performance to predetermined baselines
on a regular basis. In order to arrive at the final estimate, a number of statistical
techniques are used. If a project is getting off track, the project manager may
use this estimate to make adjustments.

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Performance Management: Corrective measures in the project control

process may be more effectively implemented with the help of Key
Performance Indicators (KPIs) used to assess the state of the project and
predict future trends.
Project Administration: Collaboration and open information sharing may be
fostered by putting in place appropriate procedures and infrastructure. The
goal of this procedure is to free up the team's time to concentrate on the
execution of the project rather than the mundane duties that get in the way of
getting the job done.

5.1.7 Project Controls Techniques

Small Work Packages: Estimates are more reliable, and the project's
activities are easier to manage when broken down into manageable chunks.
The capacity to notice a delay or issue is much improved and helpful for
managing the project when work packages are expected to be completed
within one or two reporting periods. Preventative and remedial actions may be
implemented and their effects on other important aspects mitigated if they are
detected early.
Baselines: In the project control process, the baselines play a crucial role since
project progress is compared to them.The process involves determining
whether or not a baseline needs to be maintained or updated based on an
accepted modification request, which includes creating a baseline, measuring
against the baseline, and reporting on the results.
Status Meetings: The status meeting is the most typical method since it is also
the simplest. Transparency, accountability, and responsibility may be
maintained for smaller task packages by holding status meetings on a regular
basis. The members of the project team may utilize this to manage
expectations and keep in constant contact with one another.
Completion Criteria: What constitutes "done" for the project team may not
correspond to the client's perception of completion. In this way, everyone
involved in the project may work from the same playbook. This aids
productivity and helps clear up any confusion in progress reports.
Reviews: Deliverables in a project might benefit from evaluations to ensure
they continue to meet both quality and expectations. Key deliverables will go
through a cycle of evaluation, feedback, and correction. Design reviews,
process reviews, audits, walkthroughs, and inspections are all examples of
review types.

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Milestones and Checkpoints: An essential method of project control is the

use of checkpoints and milestones to assess the project's development, deal
with critical concerns, and make course corrections if required. Management
and project backers may reassess their financial commitments and reallocate
resources if necessary, with the help of this method.
Track Requirements: A traceability matrix may be used to keep a project
under control and prevent modifications to the original scope. A traceability
matrix may be used to determine the relationship between the stated needs, the
delivered product, and the justification for the demand.
Formal Sign Offs: A systematic method of overseeing the project and making
sure the key stakeholders are frequently engaged with the project's
development, client acceptance checks guarantee that the project's deliverable
is accepted and conforms with the requirements.
Independent QA Auditor: In this method, a Quality Auditor is hired to keep
tabs on the project and ensure that the final products are up to par with what
was discussed at the outset. The outcomes and procedures of project
management may both benefit from this kind of analysis.
V Method: The V-method is a process that employs verification and
validation to guarantee that the final product meets all of the project's
prerequisites.

5.1.8 Challenges of Project Controls

The project control department usually gets the short end of the stick when
projects bomb, are behind schedule, or go over budget. It's crucial to make sure the
proper project control procedures are in place before finger-pointing, however. The
following are examples of some of the difficulties project managers have when
attempting to apply project control:

Unsupportive Senior Management: Ineffective project management occurs

when upper-level executives fail to back the necessary precautions or aren't
fully invested in the process. To keep the project on track, the controlling
process requires the project manager to actively monitor its progress and to
take any necessary corrective steps.
Perception: There is evidence to show that if the project control process is
executed appropriately, it may help the firms save considerably more than the
cost of project control, which is why it is classified as an overhead expenditure.
Obsolete Processes: Manual and inconvenient processes slow down the
project control process because it takes more time to gather all the relevant
information needed to initiate a corrective step.

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5.2 PROJECT MONITORING

The term "project monitoring" describes keeping tabs on a project to make

sure everything is moving forward as planned. It includes actions to identify
bottlenecks and fill them for better project performance. It's a subset of project
management called "control and monitoring." The tracking of a project begins at the
same time as the project itself. It's natural to ask why keeping tabs on a project is
necessary. In order to ensure the success of the strategy, monitoring projects is
essential. With a good system in place to track the project, we can easily tell how far
along it is. Furthermore, monitoring the project guarantees that it will be finished on
time and within the set budget.

5.2.1 Importance of Project Monitoring

Results from a plan can only be realized with the help of careful project
monitoring. As a result, the project manager has to pay great attention to each phase
of monitoring and adjust accordingly. Typically, there are several tasks involved in a
project, and they all take a considerable amount of time. Thus, project monitoring
guarantees that work is completed accurately and that questions and problems are
addressed in a timely manner. The benefits of project monitoring are:

First, verify that the allocated funds are being used properly and that
adjustments may be made if necessary.
Keeping the chosen job on track and within the given time frame.
To foster a sense of individual responsibility among team members in
reference to the work they have been given.
To redirect the efforts of the workforce toward a certain activity if doing so is
necessary.
To improve the level of communication amongst the members of the team in
order to speed up the process and enhance productivity.

5.2.2 Types of Project Monitoring

The following are some of the several forms of project monitoring:

Process monitoring: Activity monitoring is another name for this practice.

On the other hand, the primary objective of process monitoring is to keep tabs
on resources and inputs while simultaneously gaining a knowledge of how
outputs and outcomes are generated.
Beneficiary monitoring: The fundamental objective of this is to keep track of
the people who are supposed to benefit from the initiative.

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In relation to this project, this may also contain the participants' complaints as
well as their pleasure. They may use either a direct or an indirect approach.
Compliance monitoring: It serves the purpose of determining whether or not
the project is in accordance with the grants, local laws, contracts, ethical
standards, and general compliance with the project.
Financial monitoring: It is used to monitor how efficiently the project is
using its financial resources. In addition to this, it is helpful in conducting an
analysis of how the allotted money was spent.
Result monitoring: It is useful in determining whether or not the project is
headed in the proper direction to get the desired goal. Additionally, it aids in
the collection of data on the overall impact and impacts of the project.

5.2.3 Project Monitoring Process

Let's have a better understanding of the process of project monitoring.

Initiation: During this stage, an overview of the project, including its potential
phases and the method that will be involved, is created.
Planning: throughout this stage, the process's overall scope as well as the
specifics of how it should be carried out throughout the execution are
developed.
Executing: It entails carrying out all of the actions that were outlined in the
planning section.
Closing: At this point, the project plan is supposed to be finished, and the
stakeholders are supposed to be informed.
Control and Monitoring: During this phase, you will be responsible for
checking to see that the project is proceeding as planned and that all of the
tasks are being done as specified.

5.2.4 Creating a Project Monitoring Plan

After completing the project monitoring training, you will be taught how to
create a plan for monitoring the project. The procedure for developing a reliable
strategy for the monitoring of a project is outlined in the following steps.

Figuring out the goal: You need to determine the purpose of the project
before you can make any plans. You need to determine the goal of the project,
the objective of the stakeholders, the reason they desire this project, as well as
who the members of your team will be.
Creating a blueprint: Making a plan for the monitoring of a project is
analogous to drawing out floor plans for a house. You need to take into

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consideration everything, including the money, the staff, the time, and the
expectations of the stakeholders. It is essential to ensure that your
expectations, as well as those of your team, are not unrealistically high. An
overestimation will result in losses for both the corporation and the project.
Collecting and mapping: You are now in a position to begin outlining the
project now that you have access to all of the relevant information. Bring all
of the material together and organize it into objectives, a budget, a timeline,
deliverables, and scope. Your research might also be included on a separate
page if you choose.
Share it with your team: It is imperative that you go through this strategy
with the other members of your team before you send it out to the stakeholder.
Gather your team together, and describe the whole project as well as your goal
to them. The project might suffer if there are communication breakdowns
between you and your coworkers. Make sure they are aware of the standards
that you want them to uphold. You might inquire about their thoughts and
include them into the strategy if you believe doing so would make it more
successful.
Finish making the plan: After going through the plan with the other members
of your team, you are now ready to decide on a strategy. Because this is the
version of the plan that you will offer to the various stakeholders, you may
want to look it through one more. You may also include the problems that arise
while you are planning and the solutions that you have thought of to fix them.
You should do your best to delegate the duties to your team during this phase.
Doing so will make it easier for stakeholders to contact with team members in
the event that they have any questions about a certain assignment.
Take the help of a Gantt chart: You can keep a close eye on the task's
progress with the use of a Gantt chart. You can make this using the spreadsheet
program Microsoft Excel. Keep the sheet up to date every day.
Putting the plan to motion: Begin carrying out the plan as soon as the
planning stage has been completed to the point where it is ready to be shared
with the relevant stakeholders and the members of your team. Keep a daily log
of the progress, and check each item off the list as it is finished.
Project post-mortem: After the project has been finished, this step is carried
out. Figuring out how well the strategy worked and the challenges that arose
along the process should be your primary focus at this point. To begin, you
need to compare this strategy with the one you first devised to observe how
things came out. Then, draw the significant conclusions you can from this
project so that you may steer clear of all of the inefficiencies in the subsequent
endeavor.

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5.2.5 Implementing Project Monitoring

After the strategy is put into action, the next step is monitoring the project. In order
to keep tabs on the project, you will need to do a few actions. To begin, you will need
to divide the labor among your coworkers in proportion to their capabilities. You need
to determine the potential problems that might arise with your finances and your
timeline. Third, you must divide the labor between your colleagues in proportion to
the strengths of each individual.

Tracking the project: You will need to have task tracking in order to monitor
the project. This will make it easier for you to keep track of all of the activities
that your team completes. To begin, you will need to determine which tasks
really must be completed and which ones may be put off until a later time. The
next step is to have an understanding of where the budget is being spent.
Determine who is capable of working more effectively and whether or not a
given activity requires more time or money than was first anticipated.
Communicate with your team: It is an essential instrument for carrying out
project monitoring. Every member of the team is responsible for being aware
of their responsibilities. Maintain consistent and regular contact with your
team in order to monitor the tasks' progression. Request frequent updates on
the status of the tasks that have been allocated to you. You should probably
establish certain protections for your team so that they may have some
breathing room and complete the assignment effectively.
Post-mortem of the project: You should consider your strategy and the
methods you use to monitor the project, and you should draw inspiration from
them. Examine the results of the project to determine which tasks required less
monitoring and which needed more care.

5.2.6 Project Control Examples

Financial controls: This control is used so that the project budget may remain
within the parameters that have been established. For instance, there should be
a standardized procedure for vetting and authorizing payments to vendors.

Budget Forecasts: measuring the present performance and making

projections on the project expenses, which should include the expenditures
associated with overtime and timetable delays.

Schedule: measuring the present timelines, predicting the timetable, and

keeping an eye out for any concerns with the schedule.

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Scope: In order to monitor, regulate, and evaluate the modifications that have
been requested for the parameters of the project, a Change regulate Board
(CCB) will need to be established.

Quality Assurance (QA): evaluating the quality of the deliverables produced

by the project in accordance with the criteria established in the project plan.

5.2.6 Project Management vs Project Controlling

The primary distinction between project management and project control is

that the former concentrates on the management of a variety of different projects,
whilst the latter concentrates on making certain that the projects are carried out in
accordance with the plan. The following aspects of a project are at the center of
project controlling as it relates to the project:

Project Scope
Project Budget
Quality of the Deliverables

Keeping a project on schedule and ensuring that it does not break from its original
design are both aspects of project managing. In addition to that, it outlines the
remedial actions that need to be taken in order to bring the project back on track.

5.3 INTERNAL AND EXTERNAL CONTROL

Both an organization's internal and its external controls have an impact on the
manner in which the corporation governs its business processes. The processes that
an organization puts in place to regulate its own operations and ensure a level of
uniformity in the workplace are referred to as internal controls. A company's core
beliefs and the most effective methods for achieving its objectives are examples of
these. When it comes to picking business partners, suppliers, and manufacturing
processes, for instance, a firm that places a high value on the environmental
sustainability of its operations employs that quality as an internal check. Some
internal controls are modeled after their counterparts in external systems. For
instance, if the government adopts a legislation that places restrictions on certain
financial operations, a corporation can engage an internal auditor to analyze its
financial practices in anticipation of the law's implementation. The importance of
external controls lies in the fact that they guarantee businesses will be held
responsible for their activities and will conform to a certain behavioral norm. External
controls are used to guarantee that enterprises in a number of different sectors offer
their workers with a safe working environment and provide customers with access to
items of a high quality.

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The following is a list of some of the most important reasons why there are
external controls:

Creating consistent industry standards: The objective of external controls

is to ensure that all companies operating within a given industry adhere to the
same performance and operational behavior standards. They make sure that all
of the firms operating in the same industry adhere to the same standards and
utilize governance techniques that are comparable to one another.
Improving work conditions: Companies maintain working conditions for
their staff members by strictly following to external controls, and they
consistently work to enhance the quality of life for the people who make up
their teams. Employees' access to safe working conditions in the workplace
are ensured by external restrictions such as laws governing labor and
regulations imposed by the federal government.
Promoting transparency: A significant number of the external controls put
an emphasis on openness about the workings of organizations and mandate
that businesses provide information on their policies and governance. This
provides members of the public and potential customers with information
about the goods and services they intend to buy.
Upholding corporate responsibility: Organizations are encouraged to take
more responsibility for the ways in which their activities impact the
community and the environment via the use of external controls. This may
lead to employment policies that are more inclusive, manufacturing techniques
that are more sustainable, and other long-term effects that are beneficial to
operations.

External controls are used by managers and other company leaders in order to
establish and maintain policies for their team. Because compliance professionals need
to comprehend all applicable rules and regulations in order to determine whether or
not their team, department, or project satisfies all required standards, external controls
are also essential for anybody who works in a compliance function. This is due to the
fact that compliance professionals are responsible for ensuring that all necessary
requirements are met. External controls are something that may be used in any sector,
but they are of utmost significance for those working in the following fields:

Finance and accounting

Human resources and labor
Construction and manufacturing
Healthcare and pharmaceuticals

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You may also think about working in the area of regulatory affairs, which is where
the external controls that affect how companies function are created. When it comes
to the establishment of industries with high standards for both consumers and
professionals, individuals who play a significant role include not only those who draft
legislation but also those who ensure internal compliance with external controls.

5.3.1 Examples of external controls

The following is a list of many kinds of external controls, along with a

description of each type:

Government regulations

Government rules and laws are one of the forms of external controls that have
the greatest direct impact on the ways in which businesses may conduct their
operations. They are also very successful due to the fact that quick repercussions are
imposed on firms that do not comply with the regulations. If a company fails to
comply with a government rule about how business should be conducted, the
company may be required to either pay a hefty fine or be subject to certain operating
restrictions. Regulations established by the government apply to every facet of
organizational governance, including employment policies and the manner in which
a business promotes its wares. The following are some instances of restrictions
implemented by the government externally:

Regulations that restrict the geographies from which oil corporations may
extract resources
Rules that dictate how businesses must use and distribute the information they
collect from consumers
A legal document that specifies how much tax companies are required to pay
on certain forms of corporate income

Industry standards

An additional kind of external control is standards established inside an

industry. To obtain respect and acclaim in their field, professional organizations have
the authority to establish their own norms and standards of behavior for how
businesses and professionals should conduct themselves. To become a member of
some professional organizations, one must fulfill extra prerequisites and fulfill
additional expectations; this raises the bar for one's level of achievement in their
chosen sector. Industry associations could also engage in lobbying efforts to modify
laws and regulations, or they can mobilize public opinion to put pressure on particular
businesses to alter their internal governance arrangements.

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Information releases

When businesses make information public, such as the results of their annual
financial reports, such information has the potential to serve as an external control.
Even the awareness that information will, at some point in the future, be available to
the public might drive executives of companies to make more responsible and ethical
decisions about their company's operations. Sharing information among employees
of the organization, providing information to shareholders, or making reports
available to the general public are all examples of this. For instance, in order to
maintain a level of financial responsibility, several government rules mandate that
corporations must disclose certain financial information to the general public.

Changes in leadership

It is possible for there to be an increase in understanding of the organization's

internal governance structure if one firm acquires another, if there is a merger, or if a
corporation just employs a new individual in a leadership role. A change in
leadership, particularly in big public firms, may draw the attention of the public and
the media to the business practices of the organization. This is especially true in large
public corporations. improvements to the governance structure may be made by the
present leaders of the firm before a change in leadership. These improvements may
be made to increase compliance or just to make the organization better structured for
the successor.

External audits

Through the use of external audits, external controls may be exercised across
different departments and business partners. Before committing to forming a
commercial partnership with another firm, one company may decide to have its own
business operations audited by an independent auditor hired from the outside.
Retailers and their suppliers, as well as other businesses, often engage in this kind of
external control when they wish to guarantee that they are doing business with
organizations that uphold moral and environmentally responsible governance
standards.

Media relations

The way the public and the media perceive an organization may also have an
effect on the internal rules and processes that the company uses.Investigative
journalists may publish a report on a problem that exists inside a corporation and then
attempt to convince the leaders of that organization to modify their practices by using
public pressure.

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5.4 PERFORMANCE ANALYSIS

The practice of investigating or assessing the performance of a given situation

in relation to the goal that was intended to be attained is referred to as performance
analysis. In finance, performance analysis may be done based on return on investment
(ROI), earnings, and other metrics. An employee's contribution to a project or task
that was given to him or her may be evaluated using performance analysis, which is
a tool used in human resources. The performance analysis process is comprised of
the following three fundamental steps:

Data Collection

Data pertaining to the effectiveness of a program are gathered using this method,
which is a process. In most cases, they are compiled into a file, and in certain cases,
a real user may be shown the data in real time. The following are the fundamental
methods of data collection:

Profiles: It keeps track of the amount of time spent in each component of the
software. The process of doing this is incredibly significant since it helps
expose performance issues. They are harvested without human intervention.
Counters: It keeps a record of the accumulated frequency or number of
occurrences. It may call for assistance from the programmer.
Event: It keeps a record of every instance of the many different events that are
defined. As a result, a significant quantity of data is produced. It is possible
for it to be made automatically, or with the participation of a programmer.

Data Transformation

It is used often to lessen the amount of data that is stored. For instance, a profile
that keeps track of the amount of time spent in each subroutine task on each processor
may be altered to calculate the amount of time spent in each subroutine on each
processor in addition to the standard deviation from the mean.

Data Visualization

Despite the fact that data reduction methods might cut down on the amount of
data, it is still sometimes required to investigate raw data. The use of methods for data
visualization might be of considerably greater assistance to this process. The
following factors are taken into consideration in order to decide which tool would be
most appropriate for a certain job:

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Accuracy: The accuracy of the performance data that we get via the sampling
method is lower than the accuracy of the data that we obtain through the use
of counters or timers.
Simplicity: The finest tools are ones that can gather data in an automated
manner with very little input from the programmer.
Flexibility: A tool that is versatile may have its functionality expanded to
gather more information or to give various perspectives on the same data.
Intrusiveness: When doing data analysis, we are required to take into account
the overhead costs.
Abstraction: The data may be evaluated at an appropriate level of abstraction
for the programming model of parallel programs, which is something that a
good performance tool should be able to do.

5.5 SCHEDULE PERFORMANCE INDEX MONITORING

Earned Value Management (EVM), a standard method for tracking the

progress of a project, includes SPI as one of its constituent parts. EVM illustrates how
the work that has been completed to far compares to the estimates that were set during
the phase of the project that is devoted to planning. The Schedule Variance (SV)
measure, which is part of the EVM, and the SPI are used to identify whether or not a
project is running behind, on, or ahead of schedule. SPI is the percentage of
completed work to scheduled work, while SV measures how much the actual work
deviates from the intended timetable. SV is how far the actual work deviates from the
planned timeline. It provides the project's status in percentage terms concerning the
timeframe, as well as assesses the efficiency of the scheduling process.

5.5.1 Terms Used in SPI

The equation for the schedule performance index (SPI) and the accurate
calculation of the SPI in project management both need a few elements that are
essential components.

Earned Value Management: This method is used in the process of evaluating

the success of a project. The SPI method incorporates Earned Value
Management as one of its steps.
Planned Value: The Planned Value (PV) provides an indication of where you
had anticipated being in relation to the project's timeline. PV demonstrates
how much you aim to accomplish by a certain date in the future. This is often
measured in terms of the number of hours spent and, on rare occasions, units
produced.

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Earned Value: The Earned Value (EV) provides an accurate picture of where
a project now stands in relation to its timeline. This should be extremely close
to or exactly the same as the number that was predicted, suggesting that
everything is proceeding as expected. This can be shown using an SPI
computation.
Schedule Variance: The EVM method includes still another sort of analysis
known as Schedule Variance (SV), and it is essential to have an understanding
of how this analysis differs from the schedule performance index. The term
"schedule variance" refers to the extent by which a project's current timetable
deviates from its initial schedule. On the other hand, the SPI determines the
ratio of work that has been accomplished to work that has been planned
(scheduled).

5.5.2 Cost Performance Index (CPI)

There is a common misunderstanding that the cost performance index is the

same as the SPI. The value of work in relation to its cost is what the cost performance
index assesses. To put it another way, the amount of effort is proportional to the
expense. The cost performance index (CPI) and the schedule performance index (SPI)
are not interchangeable since the former assesses cost efficiency while the latter
measures time efficiency.

5.5.3 CPI vs SPI

Earned value is represented by the CPI as a measure. While CPI assesses how
well the project manages its costs, SPI analyzes how effectively it manages its
timeline. It is the ratio of the amount of work that was completed to the total amount
of money that was spent to perform the assignment. In order to get the Consumer
Price Index (CPI), just divide the Earned Value (EV) by the Actual Cost (AV):

CPI = EV / AC.

If the computation for the CPI is:

Greater than 1: The cost of the project is less than anticipated. The value of
the job that was completed exceeds the amount of money that was invested.
Equal to 1: The cost of the job is acceptable.
Less than 1: The expenditures for the project are more than expected. The
value of the job that was done is lower than the amount of money that was
spent.

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In order to compute the EV, also known as the Earned Value, you must first
multiply the proportion of the total work that has been finished by the Budget At
Completion (BAC):

EV = % Completed work x BAC

BAC is the project's total budget.

To determine AC, first collect all of the expenditures that are connected to the
tasks that were carried out. It covers things like equipment, labor, travel, and software
licensing, among other things.

5.5.4 Cost Schedule Index (CSI)

An additional earned value metric, the cost schedule index, evaluates the
overall efficacy of the project and calculates how viable it will be to recover a project
that is straying from its baselines. Both of these objectives are addressed by the earned
value concept. The Customer Satisfaction Index (CSI) is arrived at by multiplying the
Cost Performance Index (CPI) by the Scheduled Performance Index (SPI):

CSI = CPI x SPI.

The farther CSI moves away from 1.0, the less likely it is that a project that is
over schedule or over budget will be able to recover. The SPI for the project may be
determined by dividing the Earned Value (EV) or Actual Value (AV) by the Planned
Value (PV):

SPI = EV / PV.

If the SPI value is:

Greater than 1: The project has been completed earlier than expected. The
quality of the work has been exceptional.
Equal to 1: The project is proceeding according to plan. The work is
progressing in the anticipated manner.
Less than 1: The project is running far behind schedule. There has been far
less progress made on the project than was anticipated.

The formula that was just discussed above may be used to determine the value that
has been earned. To get the PV, multiply the proportion of the project that has been
finished (planned) by the budget that was in place when it was finished.

PV = % of the planned project completed x BAC.

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5.5.5 Schedule Performance Index

Calculating the schedule performance index at regular intervals during the

duration of a project is a straightforward way to avoiding going behind schedule,
which is one of the major reasons of project failure and can be easily avoided. It is
possible to arrange the regular intervals at which the SPI will be computed when the
schedule is being created. This is necessary since the length and nature of the project
both have the potential to affect the timetable.

Tips to Work With the Schedule Performance Index

When dealing with SPI, it is essential to keep in mind the following factors
since SPI has some constraints that must be taken into account.

A Good SPI Isn’t Always Good

Since SPI in project management is unable to discern between crucial and

noncritical activities, this indicates that insignificant tasks that are perhaps ahead of
time might potentially disguise critical work that have gone behind schedule. As a
consequence of this, SPI in project management may provide the impression that the
project is moving forward at a satisfactory rate even while this is not the case. In
addition, the SPI is always set to 1 at the conclusion of each and every project,
regardless of the date that the project was really finished. Therefore, even if the
project was finished with a delay of six months, the SPI will still state that it was
finished on time.

SPI is Only as Good as the Data You Keep.

It is quite necessary that the data that are supplied for the SPI be accurate. If
the data that you're dealing with has errors, such as delayed cost reporting or an
incomplete job breakdown, then the SPI won't be of much value to you.

SPI Shouldn’t Be Used on Its Own

If the SPI shows one thing and the CPM indicates another, then the values of
the SPI should be analyzed in conjunction with other project management
approaches, notably CPM or the critical path method, in order to provide an accurate
picture of the project's schedule performance (CPM).

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5.6 PROJECT EVALUATION

Evaluating a project is an approach that may be used to assess if a project,

program, or policy was successful and what influence it had. In order to conduct an
analysis of the process and results of a particular project, it is necessary for the
evaluator to acquire relevant information. Evaluation of a project may lead to
adjustments being made in the internal workflow, the identification of patterns among
the project's intended audience, the formulation of plans for future initiatives, or the
reporting of the value of projects to external stakeholders.

5.6.1 Principles of project evaluation

There are a few guiding principles that should be followed while conducting
project evaluations. Following these guidelines will help guarantee that the
evaluations are legitimate and will contribute to the overall success of the company.
These guiding concepts serve as a foundation that may be used throughout the whole
of the assessment process. Among the assessment concepts for projects are:

Seek to improve performance: Each review provides your staff with the
opportunity to acquire new ways, which may help to contribute to the ongoing
development of your processes.
Contribute to organizational learning: Establishing a routine of providing
feedback has the potential to support ongoing learning and organizational
progress.
Share project participation: The outcomes of the project assessment should
be made available to all stakeholders. This will improve the amount of
engagement from those who are not part of your team, which will convey
transparency and dependability.
Focus on results: It is possible that doing frequent assessments may assist in
guiding your efforts in the direction of attainable objectives.
Build relationships with stakeholders: It is possible to increase stakeholders'
faith in both you and your team's capabilities by including them at each step
of the project assessment process.
Use credible processes: When carrying out an assessment of a project, it is
essential to make use of methods, techniques, and strategies that can be
independently verified and relied upon.
Conduct evaluations ethically: Ethical considerations need to be given
considerable attention when selecting and putting into practice a method of
project assessment, both for the welfare of your workforce and the significance
of the project.

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Evaluate continually: Developing a culture of assessment inside a company

aids to better equip teams and enhance the results of projects.

5.6.2 Types of project evaluation

The following are some popular methods of project assessment that you may use in
your projects:

Pre-project evaluation: Your team should determine, prior to initiating a

project, if it is possible to effectively finish the project as planned. This often
happens on its own throughout the development stage of projects, and it is
essential to the successful execution of the project that it does so. Before work
can begin, it is essential that everyone engaged has a clear understanding of
the objectives and goals.
Ongoing evaluation: It is possible to utilize metrics all the way through the
project's life cycle in order to verify that tasks have been completed. This
covers the budget, the proportion of jobs that have been accomplished, and the
general quality of the work that has been performed up to this point. As the
project moves forward, you should make every effort to keep your initial
objectives and targets in mind. This will help ensure that your team stays on
track.
Post-project evaluation: It is essential, after the project has been finished, to
conduct an investigation into the results and consequences of the project. The
degree to which the project was successful in accomplishing its aims and
achieving its goals may be evaluated based on the outcomes. The extent to
which the initiative was effective in bringing about a discernible shift in the
behavior of the target population may be gleaned from the impacts.
Self-evaluation: A self-assessment may be carried out by an individual at any
time over the course of the project's life cycle. Through self-evaluation, one
may determine whether or not their job is contributing to larger aims and
objectives. The capacity of an individual to successfully contribute to a team
effort may be improved by identifying their individual strengths and
shortcomings, quantifying their accomplishments, and analyzing the extent of
their influence.
External evaluation: A further alternative is to contract with third-party
organizations to carry out reviews of your various initiatives. These
organizations do not generally have any previous connection or engagement
in the project, which results in a high degree of objectivity while doing the
assessment and coming to a conclusion about it.

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5.6.3 Benefits of performing a project evaluation

The appraisal of a project may provide a variety of benefits, ranging from

personal development to financial advancement. The following are some of the
advantages that come from evaluating projects:

Tracks team performance: Maintaining records of previous assessments

allows you to monitor progress made across several projects.
Highlights the areas that need improvement: The identification of trends
and patterns is the first step in gaining a knowledge of how the team might
perform better.
Measures the tangible impact of the project: Your team is able to see the
effect that the project is having in the public domain, together with the actual
measurements and feedback that are being used to quantify it.
Incorporates stakeholders in the process: Important stakeholders may be
reassured about the quality of the finished and assessed projects if they are
involved in the process.
Facilitates team reflection and accountability: Each member of the team is
responsible for themselves as well as for holding the others in the team
accountable.
Sharpens the planning process based on past evaluations: Develop a
strategy for forthcoming projects taking into account what you've learned
about how the team works.

5.6.4 Completion of a project evaluation

Planning and carrying out the assessment of the project are required steps. The
following is a list of the actions that need to be taken in order to finish an assessment
for your project:

Create an evaluation plan

In order to provide your team some direction and structure while you work on
the project, it's a good idea to write down some goals and objectives. These aims and
objectives also guide your choice of assessment method for the project. You may
include as many or as few tools and procedures in your assessment plan as you see
fit depending on the nature of the evaluation you're doing. Metrics of task completion
analysis, for instance, is a method of assessment that demonstrates development in
productivity rates if one of the objectives is to boost staff productivity.

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Identify the source of evaluation and get organized

After settling on an approach to assessment, pinpoint the data sources that will
be used in the analysis. Pick out all the individuals you'd want to talk to if you decide
to do interviews. Gather all the resources you'll need for each approach, such
interview questions and a data collection system. Prepare for the execution of your
assessment strategy by assigning responsibilities and creating a thorough schedule.

Implement the project evaluation

The specifics of how you put your assessment strategy into action may vary
depending on the specifics of the evaluation you're doing. Here's a rundown of some
key considerations for designing and executing assessments:

Pre-project evaluation: Prior to starting a project, it's important to sit down

and think about what you want to achieve.
Ongoing evaluation: Schedule, cost, and output quality are all things that may
be tracked during a continuous assessment.
Post-project evaluation: Evaluation of a project's results after its completion
takes both effect and outcome into account.

Analyze the data

Once you have collected all the information you need for your assessment, you
may look for patterns, strengths, and weaknesses, as well as determine how well the
project met its objectives. Use a tracking system for organizing and storage based on
the data type you obtained. Then, analyze the information in light of the team's stated
objectives.

Develop a report for your team

Create a report that does double duty as both an interpretation of the data and
a summary of the findings. Format this report to meet the requirements of your group
and any other interested parties. This is a good idea since it may help you see where
things went wrong, how far you really came in meeting your goals, and what you
accomplished as a team.

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5.7 REPORTING AND TERMINATION

A project management report is an organized and, most of the time, complete

explanation of a project. This description includes data about the project's present
state as well as plans for the project's future. Reports on project management may
perform a variety of roles, including the following:

Keeping managers and other stakeholders up to date on the status of projects;

Assisting project managers in maintaining project timelines;
Anticipating possible hazards before they become a problem;
Managing project expenditures;
Communicating actions to the team.

5.7.1 Contents of project management report

The following are some of the most crucial components that should be
included in a report on project management:

The budget that is anticipated for the project

Potential dangers and the solutions to avoid them
An itemized list of the activities necessary to bring the project to fruition
The present standing of those responsibilities
The most up-to-date version of the project schedule
Important Points in the Project
Any other data that the relevant parties have requested

5.7.2 Types of Project management reports

There are many different reports that may be used at various phases of a project
due to the many processes involved and the extensive amount of preparation that is
required. For the purpose of effectively finishing the project, each of these reports is
designed for a specific purpose. The following are some examples of popular kinds
of reports used in project management:

Availability reports: Before commencing a project, it is helpful to have a

solid understanding of the components, team members, and other resources
that are at your disposal. The amount of work that each member of the team is
responsible for is detailed in an availability report, which helps establish how
much time they have to commit to a new endeavor. It is also possible to make
a note of the availability of necessary materials, such as detailing the access
that your organization has to the necessary equipment in order to install new
hardware in an office. This might assist you in determining what you already

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own as well as what additional you will need in order to complete the job
successfully.
Status reports: In the status reports, tasks that have been finished, tasks that
have not been completed, and tasks that are actively getting attention from the
team are all listed. These reports either serve to keep a project on track or allow
for adjustments to the schedule so that it may better match the project's current
requirements.
Project health reports: The status reports of a project are represented in a
more graphic format by the project health reports. They take certain
information on the progress of a project and convert it into visuals, which
enables members of a team as well as managers to understand what work has
been finished and what areas need more focus. They may often quickly
comprehend the material only by scanning the report since it is presented in a
graphical fashion.
Risk assessment reports: Reports on risk assessments categorize and
prioritize both anticipated and existing hazards associated with a project. They
may assist teams in being ready to face possible obstacles by outlining those
obstacles and, in certain cases, explaining solutions to circumvent those
obstacles. Noting the significance of each risk helps to prioritize how much
time should be devoted to addressing each one in order to keep the project on
track with its timeline.
Time management reports: The real amount of time that your team spends
on each job needed by a project will be detailed in the time management
reports. You'll be able to evaluate how much of your financial plan is eaten up
by each activity if you keep track of time in this manner, compare the actual
amount of time spent to the estimated amount, and alter either factor as
necessary.
Project baseline reports: A thorough estimate of a project's activities,
together with the amount of time needed to complete those tasks, is included
in the baseline report. These reports, which are often presented in the form of
a graph, provide you the ability to superimpose your own estimate on top of
the real timelines that your team follows during the duration of a project. You
may obtain a better understanding of how much time is required for different
jobs and how to better estimate them if you monitor the actual timings versus
your initial estimate.
Summary reports: Summary reports are a compilation of the information
included in other kinds of reports. What is included in a summary might vary
from project to project; nevertheless, they often consist of information on

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budgets, timetables, and risks. This allows managers and stakeholders to

understand the general state of the project as well as its forecast for the future.
Variance reports: Variance reports make a comparison between the initial
projections of certain metrics, such as a project's budget or its expected
earnings, and the actual values that are needed by the project. This makes it
easier for managers and other stakeholders to comprehend how much such
initiatives truly cost and how lucrative they may be in the future.

5.7.3 Writing project management report

Creating a successful report for project management may be accomplished by

following these stages, even if the specific actions may change depending on the
nature of the project and the kind of report you are preparing:

Keep it concise: When drafting a report on a project, it is essential to zero in

on the most significant facts and to reduce the paper to a minimum length. You
may want to use bulleted lists rather than extensive paragraphs if you want the
report to be easier for people to read.
Use visual aids: Using visual aids is a terrific approach to communicate vital
information in a manner that is easily understandable. You may want to
highlight the development of your team as well as other important information
utilizing graphs and charts.
Include key information: When putting up a report on the management of a
project, it is essential to include all of the information that the stakeholders
may want. This might contain the present expenditure, the anticipated budget,
the progress of the project, the deadlines and timetables, a description of the
tasks, and any other information that the stakeholders have asked.
Write in an accessible tone: It's possible that certain stakeholders won't
understand the technical language that you and your team employ in certain
situations. Make an effort to utilize language that is understandable and
common, and divide the material into manageable chunks.
Be transparent: It is critical that your reporting be open and honest in the
event that your project will finish behind schedule or will go over its allotted
budget. Stakeholders will be able to swiftly find solutions to problems and get
the project back on track as a result of this.
Feature call to action: In some circumstances, the success of your team's
project could be contingent on the participation of one or more of the project's
stakeholders. In such case, you should make certain that your report contains
specific demands or calls to action.

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5.7.4 Benefits of using project management reports

Reporting is a typical technique used by project managers and corporate

executives since it may be effective in many parts of operating a firm. One of these
elements is the management of finances. The following is a list of the most often
experienced advantages of using reports for project management:

Allow for more accurate budgeting: Businesses are able to more correctly
estimate how much each project may cost if they have a better awareness of
the real expenses associated with the different parts of a project. Before
launching a project, businesses are able to confirm that they have the funds
available to finish it using this method. This enables them to decide if a
proposed project is worthwhile based on the expected profitability of the
project.
Create realistic schedules: Due to the fact that project reports often include
the real amount of time required to complete activities, they may assist
businesses in selecting just those projects that are feasible given the constraints
of their schedules. Accurate schedules not only assist with the creation of
reasonable budgets, but also in determining when and where potential
problems may arise.
Increase project visibility: Throughout the duration of the project, keeping
communication constant between project managers, their managers, and the
many stakeholders is made easier by the use of project management reports.
The reports make it possible for many more individuals with expertise to
contribute their useful views and recommendations on how to boost project
productivity, cut costs, or any other advise that can support a successful
completion. This visibility is increased by raising the exposure of the reports
in this manner.
Reduce risks to a project: Reports on project management might identify
potential hazards, which provides managers with the opportunity to plan for
or even eliminate such risks. It is possible to reduce the overall cost of a project
while simultaneously boosting productivity and reducing the amount of time
needed to finish it.
Improve management: Project managers and executives may significantly
improve their capacity to correctly manage a project by making use of the
wealth of information that is included inside project management reports.
They assist people in charge in comprehending all elements of a project, which
enables those in charge to make modifications as required, add activities that
are required, eliminate jobs that are thought superfluous, and convey updated
expectations to the team.

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Improve for the future: The reports generated by project management

provide managers with a wealth of information that can be used to enhance the
quality of future projects. Each report may assist guarantee that the planning
process of future projects incorporates the actionable information obtained
from previous ones by teaching what works best in projects or where
improvements can be made. This may be accomplished by understanding what
areas there are for improvement.

5.8 PROJECT TERMINATION

In the life cycle of a project, the stage known as "Project Termination" is an

essential one. On the other hand, in contrast to other procedures, which are required
in order to properly carry out a project, project termination is only carried out if the
project is unable to produce the value promised or achieve the goals that were
established. The reduction of financial losses sustained by a company as a result of
project execution is the primary objective of project termination. These are only some
of the typical variables that are related with the termination of a project; additional
factors include the following:

A failure to fulfill the established timeframes

Modifications to the requirements
A large increase in the cost of the project in comparison to the predicted
amount of money it will bring in
A deficiency in both the available resources and the project planning
An increase in cost above the allotted budget and utilities
A breakdown in the level of cooperation that existed between the company
and the customer. Because of the various issues discussed above, including
those listed above, the project is cancelled regardless of whether or not it has
been finished, and its resources are reallocated to other initiatives.

5.8.1 Types of Project Termination

You will be better able to define project termination as well as comprehend the
relevance of it if you get an understanding of the many forms of project termination.
The following are the two distinct ways that a project may be finished:

Natural Project Termination: When a project achieves its close, effectively

accomplishes its goals, receives approval from the customer, and is not
stopped in the middle of its execution, this is referred to as a natural project
termination. It has been determined that it was able to effectively accomplish
its conclusion, and the case has been concluded. A natural project termination

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will eventually lead to a formal closure, which will involve the final run-
through of the product, formal approval from the client, acceptance, then
handover of the project or product to the client or sponsor, completion of the
project records, and finally, proper documentation to mark the end of the
project life cycle. After the team has successfully completed one project, they
are free to take a break, begin working on another endeavor, or go on to
working on other projects.
Unnatural Project Termination: There are situations in which the execution
of a project needs to be suddenly halted in the midst of its completion for a
variety of reasons, which results in the project having an abrupt ending. The
only way to cope with a project that is not working out the way it was intended
or that is no longer relevant to the demands that are being placed on it at this
time is to actively arrange its closure. As was said before, there are a variety
of reasons why an unnatural conclusion of a project could become necessary.
When a client reports going over their allotted spending money, which forces
the project to come to an abrupt halt, this is an example of an unnatural
conclusion of the project.

5.8.2 Importance of Project Termination

The different circumstances under which a project may be canceled are

outlined in detail within the concept of "project termination." The last phase of a
project is called the termination phase, and during this phase, all of the activities that
were scheduled for the project are completed and brought to a logical end. It is
possible to have a comprehensive understanding of the need of a project's cancellation
by carefully analyzing a great deal of relevant information. In light of this, prior to
formulating and carrying out a plan for the termination of a project, it is necessary to
investigate the factors that led to the project's cancellation.

Lack of Budget/ Budget Overspill

The process of managing and planning a project entails a number of different

steps, one of which is allocating a budget for the endeavor and identifying its key
costs. This involves taking into consideration all of the overheads and verticals that
are necessary for the execution of the project, as well as the expenses that are incurred
owing to a third party and auxiliary services and new investments that would be
required to carry out the project. Nevertheless, there is a clear indication that there
was an error in the design of the project when the expenditures begin to exceed the
expected budget despite the fact that the goals and objectives of the project have not
been reached. In order to prevent incurring losses, the project has to be scrapped.

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Lack of Market Understanding

Every project that a company embarks on is done with the intention of growing
the company's market share and profit margins. In addition to that, the competition
has to be adjusted appropriately in light of the result. If at any point in the course of
the project it is determined that there are better options available in the market that
are both more cost-effective and give a higher value to the customer, it is
recommended that the project be canceled and an alternative, more effective solution
be devised. A stubborn advance in the face of negative conditions may prove to be
both expensive and fruitless for the organization that is sponsoring it.

Faulty Management of a Project

There are times when a project is mismanaged, or when unplanned or

unexpected events occur in the course of the project, which may lead to the sudden
conclusion of the project management. Incorrect resource allocation, budget
overruns, creeping scope, and unaccounted for deviations are all potential causes of
damage that cannot be undone, leaving project termination as the sole option for
preventing additional harm.

Change in Organizational Strategy and Priority

During the course of a project, a company may opt to alter either its marketing
or operations strategy, depending on the circumstances. It's possible that
policymakers aren't seeing appropriate returns on their investments, or that after
doing some introspection, they've discovered that the resources they've deployed
aren't being used effectively to produce faster and more effective outcomes. As a
consequence, the choice that has been made is to call an end to the project with
immediate effect.

Failure of Landmark Targets Within the Project

It is possible for there to be unanticipated mistakes or misjudgments in the

project design or execution strategy, even if the planning and management of the
project have been quite thorough. It is possible that landmark segments will not pass
the field test required for their successful completion as a consequence of this. It is
possible that the only solution is to call off the project altogether if the error keeps
occurring despite attempts to correct it. The product cannot be distributed to retailers
at this time.

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Erroneous Safety Measures

In order to reduce the risk of injuries and deaths throughout the course of a
project, it is essential to prepare and carry out all of the necessary safety procedures
in advance. In the event that the consumer or the execution team sustains an injury or
impairment to their emotional, mental, or psychological health as a result of the
project, this indicates that the standards for safe consumption have not been reached.
In such a scenario, the project must be canceled immediately, with no more delays
allowed.

Inadequate Investment

During the course of a project, there will inevitably be times in which more
funding will be required in order to keep the high-quality product standards that were
promised to the sponsor. It is possible that the project will not be able to attain the
necessary level of quality in its deliverables if the stakeholders refuse to authorize the
deployment of additional financial and human resources. Under these conditions,
calling off the project is often suggested as the best course of action.

Project Length

When projects go beyond their allotted amounts of time, they usually end up
costing more money than was originally planned for, which means they have to be
scrapped immediately. Before a project begins eating up resources and going over its
allotted budget, it is best to call it quits and put a stop to it if there is no clear timeline
for its completion that can be predicted.

Unfulfillment of Client Expectations

There is a possibility that a customer may have expectations of the vendor

organization that are beyond the capability of its staff. Because of this, the customer
is often left unhappy and unsatisfied with the service. In this case, the best course of
action is to terminate the project unless the vendor is able to improve the skills of the
already deployed team and satisfy the demands of the customer.

Naturally Occurring Circumstances

When natural disasters strike, it is sometimes necessary to give up on a project

or start over from scratch. These include natural disasters such as earthquakes,
pandemics, storms, and floods. In the event that one of these catastrophes occurs, a
project that is already underway may be put on hold until it can be finished off
gradually owing to the damage that has been caused to infrastructure and property.

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Other factors may be to blame, such as restrictions imposed by technology or

finances, a lack of understanding on the nature or extent of the task to be done, or
even unrealistic and irrational expectations. The type of the project, its deadlines, and
the timing of both its debut and termination all play a role in determining whether the
project was successfully closed or ended abruptly. In the event that the project is not
finished on time, the owner of the project stands to lose a significant amount of
money, and the customer stands to lose potential revenue. As a result of this, the
project is considered to have reached its conclusion if it is determined that there is no
need for the project to continue.

5.8.3 Different Ways to Terminate a Project

Each project comes with its own unique algorithm that must be adhered to in
every detail. The termination of a project in project management is the definitive plan
in the event that it is not adhered to adequately. This is done in order to limit capital
damage, neutralize threatening hazards, and recognize the faultiness of the concept.
Even if project management has its own methods of carrying out tasks, there are a
variety of perspectives from which a project termination plan must be established in
order to prevent any further losses and guarantee a seamless end of operations. The
suitable method that the vendor takes in order to finish off a project successfully is
critical to its overall success. There are primarily four exit strategies for a project that
may be explored. They are as follows:

Project Termination by Extinction

A project that has either been finished or does not seem like it will be successful
may be terminated using this approach. The following are some of the situations that
call for this particular kind of termination:

The client has accepted the handover in its entirety, and all of the closing
procedures have been started for the project. The project's scope has been
finished.
The project is no longer relevant as a result of changes in market circumstances
and other developments; as a result of recent technical improvements, the
project has to be revised.

Software that was successfully released to the public is one example of project
termination by extinction. Another example is a medication trial that did not meet
regulatory criteria and was ended at the completion/closure stage of the project life
cycle. Both of these examples include projects.

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Project Termination by Addition

A process known as "project termination by addition" is one in which a project

is onboarded so that it may become a member of the organization that it was being
terminated from. This occurs when the project is originated and carried out by the in-
house team of an organization, with the understanding that the members of the
organization are working on the project with the specific intention of it being
employed inside the business. As soon as the project is finished, the final product is
added to the parent body, which then formally incorporates it as a component of itself.
One example of such a project may be the establishment of a brand-new department
inside an existing institution that makes a significant contribution to the day-to-day
operations of the university.

Project Termination by Integration

This is the most common and widely acknowledged approach of taking care
of a project that is either highly difficult or has already been finished satisfactorily.
The results of the project are gradually incorporated into the day-to-day business
operations of the customer or the parent company. There is also the possibility that
the project that will be scrapped may be incorporated into some of the other existing
projects that are more substantial, or that it will become a part of the activities that
are already being carried out. The resources for the project are redistributed by the
organization, and as a result, the initiative loses its unique identity.

Project Termination by Starvation

When a customer or sponsor enters this mode, it indicates that they do not
intend to make any more money or resource contributions in the project. However, in
order to proceed with the implementation of the project, extra financial investment
must be made. Any additional authorisation for the use of resources or finances is
withheld by the client or the parent organization. This results in the project collapsing
as a consequence of a lack of support, which is then purposefully discontinued.

5.8.4 Steps of Project Termination Process

The completion of a project in an official capacity involves more than just

achieving its goals. It is necessary to adhere to a procedure that is administrative,
financial, and operations-oriented. The following is a list of the stages involved in the
process of terminating a project:

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Step 1: Confirm Work is Done as per the Requirements: During the phase
that is called "closing," it is necessary to list, finalize, and hand over to the
customer all of the deliverables. Everyone who was a part of the project has to
provide their stamp of approval and sign the paperwork that follows as a proof
that it has been finished.
Step 2: Complete Procurement Closure: After the customer has provided
their permission, it is necessary to finalize the contracts that have been
established with the various providers. In order to do this, the paperwork for
the project should be examined, all of the parties' overdue payments should be
made, and all of the outstanding bills should be paid in full. In the event that
this procedure is skipped, it might lead to unbalanced accounts when the fiscal
year comes to a close.
Step 3: Gain Formal Acceptance: After the product has been delivered in its
final form by the team in charge of project management, it is necessary to seek
the client's official approval of the product. The client is obligated to provide
written confirmation that the project has been successfully concluded and that
the results are satisfactory. If information is not provided, the seller may be
subject to unfavorable and unanticipated legal repercussions.
Step 4: Complete Final Performance Reporting: In this stage, you will
compile a report that contains every aspect of the project. The report includes
information on the timetable, the budget, the resources that were used, any
roadblocks that were encountered, and any remaining difficulties. The
complete report, which resembles a project ending document, also includes
calculations and reports on quality and budgetary performances, which are
recorded and kept for future reference.
Step 5: Index and Archive Records: All of the data, such as project plans
and designs, as well as post-project termination documentation, are compiled,
systematically indexed, and stored away in the company's records for future
reference. These records may be used to generate blueprints for future projects
and as a guide for avoiding hazards throughout the progression of a project.
Additionally, these blueprints can be used as a reference to prepare for future
tasks.
Step 6: Update Lessons Learned: Every time a project is finished, the project
manager and the rest of their team pick up new skills that contribute to their
collective body of knowledge. Formal and in the form of a report, each of the
project's stakeholders shares their perspective on the work that was completed.
The organization's assets library, sometimes referred to as the organization's
process assets, is where these learnings have been placed for safekeeping and
future reference.

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Step 7: Handing Over the Completed Project: The result of the project is
delivered to the client after the work on it has been finished. After the goods
has been handed over, there is a time period during which the consumer is
provided with hand-holding or assisted in learning how to utilize the device.
This period continues until the consumer is comfortable using the product or
for the amount of time that was previously agreed upon by both parties.
Step 8: Reassigning Resources: After the project stages have completed, the
resources that were assigned to those phases and assigned to specific tasks are
officially released after they have filed their closure reports or the necessary
documents. They are either moved to work on other projects or made available
for release.

5.9 PROJECT SUCCESS AND FAILURE

5.9.1 Critical Success Factor

CSFs are activities that adhere to a high level of quality, help you reach the
objectives you set for the project, and help you prioritize the tasks you need to do in
order to meet the goals you anticipated. CSFs, when effectively implemented, make
it evident which steps your team has to handle first and what they should pay
particular attention to. CSFs also make it clear what they should focus on. They also
make it possible for members of the team to collaborate more effectively with one
another.The following are some instances of essential success factors:

Intensive Planning: Before beginning a project, you should take the time to
sit down for an in-depth planning session, during which you should set your
performance objectives, reach an agreement with your clients on the
appearance of a project that has been finished, and finalize your plan with
them. Inadequate planning at the beginning of the project might lead to you
missing important underlying issues or subtleties that could lead to
complications later on in the process.
Strategy: It is easy to lose sight of the strategic aim of the organization and
forget why you are working on the project in the first place if you allow
yourself to get preoccupied with new techniques or technologies. First, you
should concentrate on effective project management best practices, and then
you can create your approach from there.
Clear Communication: Without clear and effective communication, even the
most effective project management success elements would be in vain. The
level of buy-in from shareholders and workers alike may be increased by
having talks that are open and informative, and this will allow them to
participate in the accomplishment of the objectives that your CSFs have

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outlined. Consider taking the initiative to discuss any concerns that may
develop with the project. Avoid waiting until the customer identifies a problem
to address it.
Actionable Results: Put the jargon out of your mind and present your
customers with tangible answers that include quantifiable benchmarks,
performance objectives, and a plain route to success that will be offered by the
services and products that are developed by your project. Providing the
customer with an accurate timetable and outcomes that are attainable, and then
following through on those objectives, will have a significant influence on the
client's level of satisfaction.
Collaboration: Maintaining contacts and getting in touch with other
professionals is now simpler than it has ever been before because to the
abundance of internet communication tools that are available today. In your
role as project managers, you need to make sure that cooperation is built into
the project from the very beginning, starting with the planning stage. Teams
that work together to plan and execute the project more effectively and with
more engagement are more likely to achieve the desired results. A successful
collaboration requires not only working in tandem, but also monitoring the
project to ensure that everyone is on the same page. Because of this, it is
essential to make use of contemporary tools for collaboration, such as a shared
digital workspace or a Gantt chart, in order to ensure that everyone is kept
informed and that everyone is working in tandem.

5.9.2 Main Causes of Project Failure

There are many different reasons why projects do not succeed in finishing on
time, within their budget, or within their scope. Even though a project manager is not
solely to blame for every failed endeavor, there are critical blunders they must steer
clear of and preventative measures they must take to be certain their endeavors do not
end in catastrophe. As a project manager, you should try to prevent these
circumstances that might cause a project to fail:

Failure to Plan Effectively

Effective planning is a critical success aspect in project management that

simply cannot be ignored, despite the fact that it is a step that is self-explanatory. The
creation of a detailed project proposal, the establishment of a reasonable time frame,
the estimation of expenses, the determination of milestones, the documentation of
deliverables, and the establishment of the scope of the project are all necessary components
of effective project planning. Utilizing a project management platform to help you stay
organized is one of the ways that may assist you in planning efficiently.

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Disregarding Risk Management

When it comes down to it, we are all aware that initiatives almost never turn
out the way they were intended and almost always fail. You are asking for failure by
failing to prepare for potential obstacles in your path. Create a risk log that includes
an action plan, and store it in a place where members of your team and any
stakeholders who are involved in the project can view it. Your team members will be
able to access the information they need quickly and easily if it is stored in a single
database. This will also make it easier to get new team members up to speed on
projects. If you have a sound risk management strategy in place, you will also have
the ability to take prompt action in the event that you see warning indicators
indicating that failure is on its way to you.

Inadequate Scope Document

Inadequate documentation of the project's scope, or the absence of any

documentation at all, is often the cause of failed initiatives; this is a more prevalent
problem than you may believe. Changes to the project's scope are the responsibility
of the management of the project, who are also responsible for determining if the
changes are essential. When the scope of a project changes, as it unavoidably will,
project managers will need to think about how that shift could effect the timetable
and budget of the finished project, and they might need to contact the client to ask
them to alter the budget appropriately. This interaction with the customer will be
simpler if you have an official document outlining the scope of the work, which has
been authorized by the client, and which contains pricing adjustments in the case that
the scope of the work is altered. In the end, establishing the scope of your project is
something that should be achieved at the planning and goal-setting stage of your
project using a document that is designated as the scope. When things unavoidably
change, it is helpful to keep everyone on the same page by defining how you will
manage changes to the scope of the project and how you will monitor those changes.
This will help keep team members as well as customers on the same page.

Not Selecting the Right People

It is the role of your resource and recruitment departments to identify the

proper individuals for the work; but, as the project manager, it is your obligation to
guarantee that you have a cohesive team by allocating duties appropriately and
ensuring that the correct people are assigned to those tasks. Assign members of your
team to positions in which they will be able to thrive, and make use of your central
resources to assist in keeping everyone on the same page as you and your team work
toward the conclusion of your project.

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Any time a project runs into problems or suffers a setback, your job as project
manager will be made substantially more challenging if your team is not appropriately
designed to deal with these challenges.

Lack of Communication

Ineffective communication almost always results in catastrophe and is one of

the primary causes of project failure. As the manager of a project, it is your duty to
ensure that the team you are working on is fully informed, to ensure that there is
transparency, and to encourage team members to voice any issues or
recommendations they may have. When you are working on a project, it is critical to
the project's success that you adhere to your timeline. All members of the team should
be kept up to date on the status of the project via effective communication between
the leaders of the team and the members of the team. It offers minimal room for
ambiguity as to what is expected of each member, which will reduce excessive
downtime between jobs, which may have a negative impact on deadlines. If you have
ever been a member of a team that has had trouble communicating with one another
in the past, you should make sure to adopt a communication strategy when you
establish your project plan in order to prevent problems right from the beginning.
Find a communication route that is effective for your team as well as the stakeholders,
and be sure to keep a record of previous conversations as well as any errors that
occurred so that you can avoid making similar mistakes in the future. Do not allow
your project to fail merely because you were unable to communicate in a clear and
concise manner.

No Management Support

Make certain that you have the backing and approval of management before
you even begin work on your project. If a project does not have the backing of
management, it may never be authorized, and even if it is, it has a considerably greater
chance of failing without the support of the leadership team. This element in the
failure of a project is typically the result of imprecise project objectives and a failure
to articulate the value that the project contributes to the company or the issue that it
addresses. It would be tough for you to have adequate funding allotted to your project
if you are unable to describe the value that your initiative offers to the table.
Additionally, other current projects that need management support may make it more
difficult for a specific project to acquire the financial backing it requires since
resources may be committed to other regions and projects. This is because the
management assistance that is required is shared among several projects.

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Weak Project Closure

Projects are not intended to be worked on indefinitely, and if you do not

specify a set of conditions for project closure, they will use an excessive amount of
your resources. To bring a project to a successful conclusion, you must first have an
understanding with your customers that all of the project's important success elements
have been satisfied, and that the project itself has been produced, tested, and released
according to the specifications of the customers. You may even go so far as to ask
your customers to fill out a satisfaction survey so that you can obtain their comments
and get the project closer to completion. Make sure you have a clear picture in your
head of what the final product of a project should look like, and set some milestones
that will help you monitor how far along the project is getting. Additionally,
milestones will keep you informed of any problems or delays as they occur and will
inform you as to whether the project will be finished on time or if the existing
schedule will not be able to meet the deadline that was agreed upon. When it comes
to finishing projects successfully, one of the finest practices is to deal with the
challenging components of the project as soon as they arise. Do not put off till the
last minute the completion of a mountain of work that might have been completed
earlier on.

5.10 PROJECT LESSONS LEARNED

The significant experiences gained during the course of a project's lifespan as

well as after the completion of that project are known as "lessons learned." These
experiences may be either good or bad. You may turn what you've learned from this
knowledge and understanding into the steps that are necessary to enhance the existing
systems and processes and ensure the success of future projects by reflecting on what
you've learned and comprehending it. During the closing phase of a project, some
companies engage in a less formal process called "lessons learned in project
management" in which they discuss and record their previous project experiences. In
certain companies, the completion of each stage of a project is marked by the holding
of a "lessons learned" session. Lessons learned sessions are open to participation from
project managers, members of project teams, and team leaders. During these sessions,
participants may go through reports detailing what was learned and decide how to put
what they've learned into practice. Lesson learnt meetings may be held at the end of
each phase of the project, at the completion of the project, or in real time while the
project is being carried out. The timing of these sessions is determined by the
complexity of the project.

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5.10.1 Integral part of project management

Failure may be avoided and the likelihood of it occurring is decreased if the

lessons gained are recorded and distributed across the business. Additionally, it
assists in the development of best practices, which may then be implemented into
future projects. Lessons learned meetings, when properly run, serve to establish trust
among the members of the team. By letting individuals contribute their own
perspectives on what went well and what might have been improved throughout the
project, participants will have the opportunity to feel more engaged in the process and
will be encouraged to be more supportive of the project management procedure. In
the end, the lessons learnt may have a significant influence on the procedures of the
firm as well as the way the teams do their jobs.

5.10.2 The lessons learned process

There are five stages to the process of learning from past mistakes. They are
designed to harvest valuable lessons learnt throughout the project from the
participants of the meeting, as well as to determine how that information may be
effectively used to achieve greater outcomes with future initiatives. These are the
steps:

Figure 5.1: Lessons learned process

Step 1: Identify the lessons learned

To begin, reflect on what aspects of the project you've just finished were
successful, what aspects were less successful, and what aspects still need to be
improved. This should be done at the session on lessons learned, in which the major
stakeholders of the project are expected to participate. In order to better prepare for
the meeting, the facilitator should send out a survey to all of the attendees. It need to
contain questions that are particularly pertinent to the many facets of the project, such
as its management, its resources, its communication, its requirements, and so on.

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It is of equal importance to gather their comments on what aspects of it

worked, what aspects did not work, and what aspects might be changed. The
participants' responses to the survey will not only help them better prepare for the
session, but the answers themselves will also help influence the conversation that they
have with one another throughout the session. During the session, you should
summarize the survey findings and examine them together with any other relevant
reports in order to determine which aspects of the project were successful and which
were not. At this point, it ought to be possible to deduce some suggestions for
enhancing further iterations of the project.

Step 2: Document the lessons learned

The procedure will continue with the following stage, which is to compile a
comprehensive report on the findings. It must to contain the participant's input on the
merits and flaws of the project, as well as ideas for its further development. When
the report is finished, it should be sent to the appropriate project stakeholders both
within and outside the organization. You are able to provide the leadership with a
summary of the thorough report, and you can also send the entire report as an
attachment for future reference.

Step 3: Analyze the lessons learned

Analyze and arrange the lessons that were learnt up to this point so that you
can figure out how to put them into practice throughout this stage of the process. After
that, decisions are made on the needed training for staff as well as adjustments to the
procedures involved in project management. Create an action plan including the
required actions, relevant parties or departments, resources, and a timetable as a next
stage in the process.

Step 4: Archive the lessons learned

Keep track of all papers relating to lessons learned in a place that is simple to
get to, such as a shared drive (like Google Drive), so that the project team, along with
other teams in the company and stakeholders, may quickly and easily access them.

Step 5: Retrieve the lessons learned

When trying to enhance the procedures currently being used for the project,
refer to the documentation detailing the lessons learnt. Create folders for each kind
of project, and then carefully organize the papers inside those folders according to
the date or the project name, for maximum retrievability of the documents.

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5.10.3 Avoiding Project Failures with Lessons Learned

In order to assure the success of your project, here are a few measures that you
may implement into the process of learning from your project.

Conduct lessons learned sessions frequently: A great number of outcomes,

both positive and negative, are possible for a project, particularly if it is a vast
and complicated endeavor. Since this is the case, it would be beneficial to
capture important information as soon as possible rather than waiting until the
project is finished. As time passes, it's possible that you won't be able to
remember crucial information, and in the event that your attempt is
unsuccessful, you can choose to ignore some details.
Have a standard process and set of tools: Because they lack a clearly defined
procedure, many businesses often miss the opportunity to document the
lessons learnt throughout project execution. Having a good set of processes
in place makes it appear more necessary and may help the team get into the
habit of documenting the lessons learnt during the course of the projects. In a
similar vein, having a specified set of tools to utilize for obtaining the
information, storing the reports and papers, and distributing them throughout
the business would further assist simplify the process. This will help the
organization save time and effort.
Make use of lessons learned during risk planning: When doing a risk
assessment for a brand new project, it is helpful to consult the reports of
previously completed projects that were pertinent to the project in order to
quickly identify possible dangers. After that, you may go to the next step,
which is devising mitigation plans.
Have a lessons-learned team: You may use the approach of "lessons
learned," or you could actively document your experiences, insights, and
impressions as they happen in real time during the project. Make it clear how
you want to put the strategy into practice, and then choose a group to join in
which you will play an active part. It is a great practice to include individuals
of the project who are involved in various aspects of the project in order to
obtain a variety of viewpoints. Maintain a member count on the team that
ranges from 3 to 10 total. Keeping a record of project experiences such as this
one can assist facilitate more efficient lesson learnt sessions.

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