Project management

Master of Business Administration

Semester 2

Project Management

Assignment Set- 1

Q1: Comment on the following
a. Importance of DMAIS in project management cycle
b. Knowledge areas of project management

Ans:

Importance of DMAIS in a Project Management Cycle

Project managers consider the five steps – DMAIS – as generic for any system of a journey
towards excellence. Figure 9.2 lists the five steps hidden in the acronym DMAIS. DMAIS is
highly relevant in Project Management for the simple reason that each step gives out in detail the
actions to be taken to ensure readiness for the next step. Verification of DMAIS implementation
is possible with checklists which can be prepared and used by employees at all levels. The team
members can be given training to follow them.

Five steps of DMAIS.

1. Define – This step requires that what is sought to be achieved is identified in all its detail. The
following are the inputs which will define what we are going to make:

a. Benchmark: It refers to the standards achieved by the best in the industry. A company‟s
product is set to meet them.

b. Customer Requirement: It refers to the documentation of customer requirements. Proper
understanding of customer requirement is of utmost importance. You should deliver what a
customer requires.

c. Process Flow Map: – It shows the activities that take place to result in the product at the end
of them.

d. Quality Function Deployment – This tool compares the quality characteristics in a
company‟s product with those in their competitors‟ and their relative importance to the customer.
To achieve them, you find the technical specifications you have to incorporate in our product.

e. Project Management Plan – This includes the materials, men, activities, schedules,
milestones and so on.

2. Measure – In this step, we measure the outcomes of the activities. This is done using the
following methods.

a. Data collection – You need to collect the data about the work that is done and compare as to
how it corresponds with what is required

b. Defect Metrics – You need to capture the deviations that are in the effective potion of the
work in defect metrics. Then you need to decide whether they are acceptable or need
rectification.

c. Sampling – If the volumes are high, you need to select a few of them and inspect them to see
whether the entire batch is acceptable

3. Analyze – In this step, you have to analyze the data received from the preceding step by using
the following tools:

a. Cause and Effect Diagrams – also called Fishbone Diagrams

b. Failure Mode and Effect Analysis FMEA

c. Root Cause Analysis

d. Reliability Analysis

4. Improve – In this step, you have to implement the measures to remove the defects found
earlier for improving the process. This can be done using the following measures.

a. Design of Experiments – The effect of changing values of parameters is done in a controlled
way. This allows you to experimentally determine the effect of variations determined. You can
use the results for optimizing the process

b. Robust Design – The equipment design is made robust to reduce the variations.

c. Tolerances – The permitted deviations are made closer, so that the capability of process is
increased

5. Standardize – When improvements have become consistent, the methods adopted are
standardized.

Knowledge areas of project management

There are nine knowledge areas consisting of integration, scope, time, cost, quality, risk, human
resources, communications, and procurement. These areas group 44 Project Management
Processes. All of the knowledge areas are interrelated and each should be taken care of during
project planning.

Following are 9 project management knowledge areas.

1. Project Integration Management: Deals with processes that integrate different aspects of
project management.

2. Project Scope Management: Deals with processes that are responsible for controlling project
scope.

3. Project Time Management: Deals with processes concerning the time constraints of the
project.

4. Project Cost Management: Deals with processes concerning the cost constrains of the
project.

5. Project Quality Management: Deals with the processes that assure that the project meets its
quality obligations.

6. Project Human Resources Management: Deals with the processes related to obtaining and
managing the project team.

7. Project Communication Management: Deals with the processes concerning communication
mechanisms of a project.

8. Project Risk Management: Deals with the processes concerned with project risk
management.

9. Project Procurement Management: Deals with processes related to obtaining products and
services needed to complete a project.
In total, there are 44 processes involved in Project Management. These are mapped to one of
nine Project Management Knowledge Areas.

Q.2 Write few words on:
a. Project Characteristics
b. WBS
c. PMIS
d. Project Management strategies-Internal & external

Ans.

a. Project Characteristics:

A project plan can be considered to have five key characteristics that have to be managed:

• Scope: defines what will be covered in a project.

• Resource: what can be used to meet the scope.

• Time: what tasks are to be undertaken and when.

• Quality: the spread or deviation allowed from a desired standard.

• Risk: defines in advance what may happen to drive the plan off course, and what will be done
to recover the situation.

b. WBS:

A work breakdown structure (WBS) in project management and systems engineering, is a tool
used to define and group a project's discrete work elements (or tasks) in a way that helps
organize and define the total work scope of the project. A work breakdown structure element
may be a product, data, a service, or any combination. A WBS also provides the necessary
framework for detailed cost estimating and control along with providing guidance
for schedule development and control. Additionally the WBS is a dynamic tool and can be
revised and updated as needed by the project manager

c. PMIS:

Project Management Information System (PMIS) are system tools and techniques used in
project management to deliver information. Project managers use the techniques and tools to
collect, combine and distribute information through electronic and manual means. Project
Management Information System (PMIS) is used by upper and lower management to
communicate with each other. Project Management Information System (PMIS) help plan,
execute and close project management goals. During the planning process, project managers use
PMIS for budget framework such as estimating costs. The Project Management Information
System is also used to create a specific schedule and define the scope baseline. At the execution
of the project management goals, the project management team collects information into one
database. The PMIS is used to compare the baseline with the actual accomplishment of each
activity, manage materials, collect financial data, and keep a record for reporting purposes.
During the close of the project, the Project Management Information System is used to review
the goals to check if the tasks were accomplished. Then, it is used to create a final report of the
project close.
To conclude, the project management information system (PMIS) is used to plan schedules,
budget and execute work to be accomplished in project management.

d. Project Management strategies-Internal & external:

Projects as building blocks in the design and execution of enterprise strategies can be with either
external or internal in nature. An external project is one undertaken for or on behalf of
stakeholders who are not part of the enterprise structure such as design and construction of the
bridge, highway or new product design. In an external project the customer is located outside the
enterprise such as another company, government or military organization. An internal project is
one to be carried out primarily for the improvement of organization process such as productivity
improvement, training initiatives, organizational restructuring or reengineering. Internal projects
usually have an internal customer such as a manufacturing manager who wishes to update the
company's manufacturing equipment build new plant or develop enhanced information
system capability. Companies that are in economic difficulties often undergo downsizing or
restructuring. Improvements in organizational process can be gained from reengineering projects.
The development of new award system flexible work practices improvement in quality or the
flow of work on the production line can be accomplished by using project teams. Although many
of these projects are modest compared to large projects that are being developed for an outside
customer, for the member of the enterprise the internal projects usually indicate that a change in
the operating policies is forthcoming.

Q3: What are the various SCMo software’s available in project management? Explain each
in brief.

Ans:

Supply Chain Monitoring (SCMo)

It is possible today to establish a monitoring system aligned with an organization‟s supply chain.
Supply Chain Monitoring (SCMo) can be an add-on to existing ERP systems. SCMo makes it
more efficient to master difficult to manage supply networks.
Supply Chain Monitoring (SCMo) is an important building block for build-to-order and short
time to delivery goals.

SCMo makes it more efficient to master difficult to manage supply networks because it allows

a) Smooth and secure supply with minimal safety inventories

b) Increased speed and flexibility of supply networks

c) Reduction of non value adding cost (trouble shooting, administrative effort to Manage and
control material flow, etc.)

d) Reduction of premium freight

e) Avoidance of scrap due to obsolescence (e.g. in case of engineering changes, end of
production)

f) Best practice approach from experts of the automotive industry

g) Clear roadmap for software providers, marketplaces and deciders in the Automotive
industry

The intent of SCMo is to define the structure of the Documentation System, its content, the
method of content generation and to attain common documentation of all standard processes of
ODETTE.

The documentation is valid for the SCM group of ODETTE. The Documentation System is
intranet based to provide immediate access to current, up-to-date process documentation.
The system allows users to navigate through graphical structures to relevant documentation and
processes which were created with the ARIS-Toolset. There are various advantages of using such
a documentation system.

Supply chain monitoring can be divided in below levels

Level 0: Work Package: Level 0 shows the work packages, which represent the different part
projects. At present only the SCMo-processes are described in this documentation.

Level 1: Process: On Level 1, the processes that belong to the work package on Level 0 are
listed. They are not yet the specific processes, but rather self-contained process blocks. They
represent a higher picture.

Level 2: Sub-Process: In Level 2, the processes are graphically depicted in the form of process
chains. The process chain-model itself can be opened via the assignment.
Various SCMo softwares available in project management are

a) Standard / Best Practices: Documentation system stores and presents standards and best
processes to be adhered to across the industry. This also helps the organization to secure their
correct applications.

b) Central Repository: It also offers a central location of all processes and system related
information. This includes customizing documentation to working guidelines.

c) Adaptation: Adaptation is another unique objective achieved through documentation system.
They allow flexible and quick adaptation in case of process changes or enhancement and provide
the updated information immediately.

d) Reference: It also provides easy and quick reference to the documents. They present the
standard processes in the intranet, where users can look up the current processes whenever
necessary.

e) Availability: Process documentation system is available at every working location.

Q.4 List the various steps for Risk management. Also explain GDM and its key features.

Ans:

Steps for risk management

As seen from the figure above, there are four generic steps to manage a risk:

a) Risk Identification

b) Risk Analysis

c) Risk Management Planning

d) Risk Review

Now let us have a detailed look at each of these steps:

Risk Identification

Risk identification occurs at each stage of the project life cycle. To identify risks, we must first
define risk. As defined earlier, risks are potential problems, ones that are not guaranteed to occur.
When people begin performing risk identification they often start by listing known problems.
Known problems are not risks. During risk identification, you might notice some
known problems. If so, just move them to a problem list and
concentrate on future potential problems.
As projects evolve through project development so too does the risk profile. Project knowledge
and understanding keep growing, hence previously identified risks may change and new risks
identified throughout the life of the project. Here we will discuss various tools and techniques
available for risk identification. The best and most common methodology for risk
identification is done using a brainstorming session. The brainstorm typically takes 15-30
minutes. You have to be sure to invite anyone who can help the team think of risks. Invite the
project team, customer, people who have been on similar projects, and experts in the subject area
of the project. Involving all stakeholders is very important.
Limit the group size to nine people. In the brainstorming session, participants discuss out
potential problems that they think could harm the project. New ideas are generated based on the
items on the brainstorm list. A project manager can also use the process to refer to a database of
risk obtained from past. Here, prior experience and learning from past project plays a very

important role. The information obtained from such databases can help the project manager to
evaluate and assess the nature of the risk and its impact on the project. Also to a great extent the
judgment of the project manager based upon his past experience comes very handy in dealing
with risks.

Risk Analysis

The first step in risk analysis is to make each risk item more specific. Risks such as, “Lack of
management buy-in,” and “people might leave,” are a little ambiguous. In these cases the group
might decide to split the risk into smaller specific risks, such as, “manager decides that the
project is not beneficial,” “Database expert might leave,” and “Webmaster might get pulled
off the project.”
The next step is to set priorities and determine where to focus risk mitigation efforts. Some of the
identified risks are unlikely to occur, and others might not be serious enough to worry about.
Pareto‟s law studied earlier applies here.
During the analysis, discuss with the team members each risk item to understand how
devastating it would be if it did occur, and how likely it is to occur. This way you can gauge the
probability of occurrence and the impact created. You can form a matrix based on the likeliness
of occurrence and the impact created as shown in table 11.2. For example, if you had a risk of a
key person leaving, you might decide that it would have a large impact on the project, but that it
is not very likely.

In the process, we make the group agree on how likely it thinks each risk item is to occur, using a
simple scale from 1 to 10 (where 1 is very unlikely and 10 is very likely). The group then rates
how serious the impact would be if the risk did occur, using a simple scale from 1 to 10 (where 1
is little impact and 10 is very large). To use this numbering scheme, first pick out the items that
rate 1 and 10, respectively. Then rate the other items relative to these boundaries.
To determine the priority of each risk item, calculate the product of the two values, likelihood
and impact. This priority scheme helps push the big risks to the top of the list, and the small risks
to the bottom. It is a usual practice to analyze risk either by sensitivity analysis or by
probabilistic analysis. This is shown in figure

Risk Management Planning

After analyzing and prioritizing, the focus comes on management of the identified risks. In order

to maximize the benefits of project risk management, you must incorporate the project risk
management activities into our project management plan and work activities.
There are two things you can do to manage risk. The first is to take action to reduce (or partially
reduce) the likelihood of the risk occurring. For example, some project that work on process
improvement make their deadlines earlier and increases their efforts to minimize the likelihood
of team members being pulled off the project due to changing organizational priorities. In a
software product, a critical feature might be developed first and tested early. Second, you can
take action to reduce the impact if the risk does occur. Sometimes this is an action taken prior to
the crisis, such as the creation of a simulator to use for testing if the hardware is late. At other
times, it is a simple backup plan, such as running a night shift to share hardware.
For the potential loss of a key person, for example, you might do two things. You may plan to
reduce the impact by making sure other people become familiar with that person‟s work, or
reduce the likelihood of attrition by giving the person a raise, or by providing extra benefits. risks
have been discovered. In such case, you might decide to rerun the complete risk process if
significant changes have occurred on the project.
Significant changes might include the addition of new features, the changing of the target
platform, or a change in project team members. Many people incorporate risk review into other
regularly scheduled project reviews. In summary, risk management is the planning to potential
problems, and the management of actions taken related to those problems.

Review Risks

After you have implemented response actions, you must track and record their effectiveness and
any changes to the project risk profile. You need to review the risks periodically so that you
can check how well mitigation is progressing. You can also see if the risk priorities need to
change, or if new
Overview of Risk Management
There is a mutual benefit for corporate and major information systems project teams and many of
the programs as a result of the information exchange generated by the Project Management
Reviews. Corporate and major information systems are reviewed from their inception to
retirement, i.e., throughout the Capital Planning and Investment Control (CPIC) phases
of Identification, Selection, Control, and Evaluate. Several of the current and future corporate
and major information systems initiatives have been identified in the Departmental Information
Architecture Program guidance series and in the Corporate Systems Information Architecture
(CSIA) document.

Q.5 Answer the two parts:

a. Importance of data management in project management-Comment.

b. What is the significance of reviewing ROI

Ans.
Importance of data management in project management

Project management as a management discipline underpins much economic activity. In industries
as diverse as pharmaceuticals, software and aerospace, projects drive business. And in the public
sector, it is effective project management that translates politicians' promises of new roads,
schools and hospitals into gleaming new constructions that improve everyday life. So you'd
imagine that it would be possible to place some sort of figure on the importance of project
management to the UK economy. Think again. As a conversation with the UK's Office of
National Statistics reveals, the official Input-Output tables that record and analyse the
makeup of economic activity within the UK go into no finer detail than at the level
of individual industries. We know that the GDP of the UK economy in 2002 amounted to some
£1044bn, up 5% from £994bn the year before. We know which industries contributed the most to
that overall GDP figure, and which contributed least. But we know nothing -at least in terms of
officially tabulated government statistics -about the extent of project management's contribution
to that GDP. Almost by definition, innovation relies on project management. Irrespective of
whether the innovation concerns a new product, or a new process, or indeed a contribution to
pure science, better project management, on the whole, will see a successful outcome reached
more quickly, having consumed fewer resources. And innovation is important to the UK
economy. As a succession of reports from the UK government's Department of Trade and
Industry (DTI) has highlighted over the years, innovative businesses are more successful, and
innovative industries grow faster, export more, are more competitive, more productive, and have
a better long-term future. Stating the benefits of innovation is one thing - defining innovation
itself, or quantifying it, is another. As successive generations of statisticians have found, the
measurement of innovation is almost as slippery a concept as the measurement of project
management. An interesting table from the current DTI Innovation Report breaks down the
innovation carried out by a number of manufacturing industries based on one widely used proxy
measure -R&D spending, commonly reported by companies in their annual accounts. Even so,
this almost certainly understates the true level of innovation activity, especially with respect to
process innovation. The engineering departments and process improvement groups of
manufacturing companies routinely make process improvements that go unrecorded as R&D, for

example.

What is the significance of reviewing ROI?

Return on investment (ROI) is also called the rate of return (ROR) and is a measure of the
performance of any investment. It is the ratio between the financial benefit or loss of an
investment and the amount of money invested. The return on investment can be calculated by the
following formula: ROI = (Net Income / Cost of Investment) x 100, where ROI = Return on
Investment Net Income = Income from investment - Cost of Investment
The return on investment is always expressed as a percentage. For instance, if the cost of
investment is $20,000 and the gain from the investment is $22,000, then the net income will be
$22,000-$20,000, or $2,000, and the ROI will be ($2,000/$20,000) x 100 = 0.1 x 100, or 10%.
In case the ROI is negative, it means the cost of investment is higher than the benefits (income)
from that investment. This indicates a loss and this investment should not be considered. There
are certain rules of thumb that make it easy to introduce the concept of time in ROI.

These rules assume that the annual rate of return is constant and that the ROI is compounded
once a year.

Rule of 72: This indicates how long it would take to double your investment. To calculate this,
divide 72 by the ROI. For instance, if the ROI is 10, then the time it would take to double this
investment is 7.2 (72/10) years.

Rule of 114: This indicates how long it would take to triple your money. To calculate this, divide
114 by the rate of return. In the above case, it would take 11.4 (114/10) years to grow your
money threefold.

Rule of 144: This calculates how long it will take to grow your money four times. In the example
considered, the time taken to quadruple your money is 14.4 (144/10) years. While these are fairly
good estimates, they are by no means accurate.
A proper understanding of ROI is a prerequisite for investing wisely. So, don‟t forget to calculate
and compare the ROI of the various investments you are considering.

Q6. XYZ Company implements CMMI level-03. To make further changes it decides on
starting a new division in the organization. It decides to advance the existing project
management. What are the steps to be followed by the organization to drive project
management to a new horizon?

Ans.

The following nine steps are suggestive measures to provide new dimensions to the
management of projects.

Step 1:
Believing in discontinuity and not continuity with incremental improvements Continuity or the
status quo is a function of quantum of changes. Incremental improvements are valid only when
the rate of change is not excessive. Both the continuity and incremental improvements are linked
with the rate of change and quantum. Beyond a threshold of rate of change, one cannot go with
the continuity and incremental improvements. The projectised day Internet and technological
based world has witnessed the unprecedented rate of change and
explosion in the quantum of changes. It is this process which has resulted in making continuity
theory as baseless. Continuity in principle is to preserve the past where as discontinuity breaks
the linkage with the past to the extent it can have fewer constraints to move into the future. There
is no choice except to believe in discontinuity as only then mind and body is prepared to accept
the unknowns and be ready to face it and control thereafter.

Step2:
Owning the problems and sharing the solutions. More one owns problem, more he becomes
experienced. It is not the number of years of service one has performed for a company but how
much number of problems was faced and owned is now becoming the benchmark to define an
experienced person from inexperienced. The true spirit of entrepreneurial outlook is to own
the problems and solve the same and in this process make Money. The fixed mould mentality is
to empower the problems to be faced outside than oneself and get the credit for solutions.

Step 3:
Breaking the status quo mentality No change means perpetuation of the Present into the Future.
This is in contradiction to the nature as Future is not the extension of Present. Breaking the
status quo mentality implies in taming the future as it is the future which becomes Present at
some point of time. Focusing into Future and affecting the Present is antiestablishment and
require concerted efforts to move out from the comfortable zones. Project managers can hardly
afford to have status quo mentality as day in and day out they are involved in acting in present to

affect Future. At times, when we do not get away from the status quo mentality, contradictions
fall apart every wherein the project between the two types of group- the champions of future and
those who believe in extending Present.

Step 4:
Stepping out of comfortable zone
As a part of the step 3 and in a way extension of it, the comfortable zone is to dear to break and
cross. Fear of uncertainties makes the comfortable zone more comfortable than if the fear did not
exist. The project managers of tomorrow are those who have so called comfortable zone carve
out from that area which conventionally is uncomfortable and that is the zone of uncertainties. If
we seek comforts in conquering the uncertainties with planning and indomitable spirit of
winning, then we are able to provide project leadership and inspire the team members to plunge
into risk taking.

Step 5:
Human Capital by passing Financial Capital
While the agriculture society witnessed the Nature as the foremost, the 20th century saw the
men-machine interaction as the key factor for the capital formation. 21st century in this Internet
age is beginning to see the human capital surpassing the financial capital. Venture capitalists
were all over the place to fund any idea, which they thought would create a brave new world. Its
consequent failure in the last couple of years could not be attributed to the over faith in Human
capital but absence of effective filtering mechanism from good to bad idea. While Return On
Investment (ROI) could be seen as financial driven phenomena, Return On Time Invested
(ROTI) is basically based human efforts and its deployment. ROTI will be more meaningful to
ROI in the context of new processes on their way to unfold in the beginning of 21st century.

Step 6:
Transform work culture from 5 to 7 dimensions
Conventionally we all live in the conventional 5 dimensions of space i.e. X, Y and Z, Time and
Mind. We need to supplement on these 5 dimensions the additional 2 dimensions of Passion and
Joy If we do what we want do then the gap between Wish and Reality is so little that one is in
position to provide its very best. It is his/her added 2 dimensions, which make the total
difference. The new miracles in project management will take place when we bring the work of
joy like in the art domain of music and paintings in our project work.

Step 7:
Real number of encounters replacing number of years of experience the experience profile
should be redefined by the number of encounters and problems faced instead of number of years.
The wisdom evolved based on encounters is far richer than accumulated simply by repeating the
same encounters n number of times in one‟s employee ship. The secret is to increase the
encounters meaningful to one‟s own dream or passion profile.

Step 8:
Seeking meaning out of change
Change is first degree. It is a must. Change can be threat or an opportunity. It depends how one
looks at it. If change is resisted, it becomes all the more difficult to see the real outcome of the
change as it is partly distorted. Project implies change and that too a temporary one. It is
essential to make people to have a real communication about the change. One of the major
strategies to bring about a change is to communicate, communicate and communicate.

Step 9:
Detachment from the fruits of the results
To act is within one‟s control. To get the reward as a reaction to the action is not within one‟s
purview. Too much emphasis on that part, which is not with in our control, is a wasteful exercise
instead concentrates on actions to the best of one‟s ability. The results so arrived at must be
analyzed from the cause and effect relationship and constant learning must be made out of all
such actions or group of actions. Attachment with the results of the actions often dilute one‟s
own energy and may shift one‟s focus from the main road to its detour. Detachment from the
results does not imply one should not demand or expect materialistic benefits, no, it only means
that in case you do not get what you deserve, leave it and move forward rather than brooding
over that part which is not within one‟s control. The journey comes to a standstill if we get
attached to the surroundings and to the results of the present beyond a small time frame. Project
managers and team members are never stationary. They must move on. In summary, the new
discovery or dimensions in project management heavily depends on the human factor of
breaking ceilings, getting motivated all the time, working with passion, detachment with the
results rather than with the actions, human capital surpassing that of financial capital,
breaking the status quo mentality, owning the problems and solutions and creating discontinuity.
The journey has just begun and it must continue as in the human race, there is no finishing line.

Set 2
Q1. Providing adequate resource is key to productivity - Comment.

Ans:

Key elements of a Productivity Improvement Program:

1. Obtain Upper Management Support.

Without top management support, experience shows a PIP likely will fail. The Chief Executive
Officer should issue a clear, comprehensive policy statement. The statement should be
communicated to everyone in the company. Top management also must be willing to allocate
adequate resources to permit success.

2. Create New Organizational Components.

A Steering Committee to oversee the PIP and Productivity Managers to implement it are
essential. The Committee should be staffed by top departmental executives with the
responsibilities of goal setting, guidance, advice, and general control. The Productivity Managers
are responsible for the day-to-day activities of measurement and analysis. The responsibilities of
all organizational components must be clear and well established.

3. Plan Systematically.

Success doesn't just happen. Goals and objectives should be set, problems targeted and
rank ordered, reporting and monitoring requirements developed, and feedback channels
established.

4. Open Communications.

Increasing productivity means changing the way things are done. Desired changes must be
communicated. Communication should flow up and down the business organization. Through
publications, meetings and films, employees must be told what is going on and how they will
benefit.

5. Involve Employees.

This is a very broad element encompassing the quality of work life, worker motivation, training,
worker attitudes, job enrichment, quality circles, incentive systems and much more. Studies show
a characteristic of successful, growing businesses is that they develop a "corporate culture"
where employees strongly identify with and are an important part of company life. This sense of
belonging is not easy to engender. Through basic fairness, employee involvement, and equitable
incentives, the corporate culture and productivity both can grow.

6. Measure and Analyze.

This is the technical key to success for a PIP. Productivity must be defined, formulas and
worksheets developed, sources of data identified, benchmark studies performed, and personnel
assigned. Measuring productivity can be a highly complex task. The goal, however, is to keep it
as simple as possible without distorting and depreciating the data. Measurement is so critical to
success; a more detailed analysis is helpful. The Global delivery model (GDM) is adopted by an
industry or business such that it has a capability to plan design, deliver and serve to any customer
or client worldwide with speed, Accuracy, Economy and reliability.

The key features of GDM are:-

a) Standardization: Ingenious design and development of components and features which like to
be accepted by90% of worldwide customer. Global standard of design focusing on highly
standardized method and processes of manufacture or development. Adopt block-and-socket
concept with minimum adaptable or connection.

b) Modularization: Product or solution split up into smallest possible individual identifiable
entities, with limited individuals functioning capability but powerful and robust in combination
with other modules.

c) Minimum customization: Minimum changes or modifications to suit individual customers.

d) Maximum micro structuring: splitting of the product modules further into much smaller entity
identifiable more through characteristics rather than application features. Approach through
standardization of these microbialentities even across multiple modules. Application of these
microbial entities to rest within multiple projects or products or even as add-ons suit belated
customer needs. Resource smoothing is part of the resource levelling process. In itself, resource
smoothing is the process that, notwithstanding any constraints imposed during the levelling
process, attempts to determine a resource requirement that is "smooth" and where peaks and
troughs are eliminated. For example, even if 7 units of a given resource are available at any one
time, utilizing 5 of these units each week is preferable to 4 one week, 7 the next, 2 the next and
so on. Even if there is no limit to the amount of any one resource available, it is still desirable
that resource usage is as smooth as possible. Given that the resource requirements of those
activities on the critical path are fixed, some order or priority needs to be established for
selecting which activity and which particular resource associated with this activity should be
given priority in the smoothing process. In determining which activity should be given priority,
a subjective judgment should be made about the type of resource (or resources) associated with
each activity; priority should be given to the activities whose resources are considered to be most
important. Beyond this consideration, activities should be ranked in order of total work content
and total float or slack available for that activity. A useful device for prioritizing is to consider
the ratio of total work content/ total float remaining and give priority to activities with the
highest value of this ratio

Q.2 Compare the following:

a. Traditional Vs. Projectized Organization.

b. Bottom-up Vs. Top-down estimation

Ans:

TOP-DOWN VS. BOTTOM-UP PLANNING

In project management, top-down planning gives senior management control of the decision
making process. Top-level managers are often reluctant to accept advice or guidance from lower
level employees. Therefore, upper management should be specific with their expectations if they
want those who aren‟t part of the planning process to follow the plan. Often this type of
planning, which can invoke fear or rely on incentives, creates problems with motivation and
moral.
Some critics might hold that using top down planning in project management is not taking full
advantage of talented employees who could have much to offer the project. On the other hand,
top down planning allows for the division of a project into steps which can be studied and tasks
properly assigned.
With bottom-up planning, a greater number of employees are involved, each with a specialized
area of expertise. Team members work together and and take their plans to the next higher level
until reaching the senior management level for approval.
Advantages to bottom-up planning is that lower-level employees take a personal interest in the
plan which can improve motivation and moral. Though lower-level team members help to
develop and implement the plan, it is primarily the project manager‟s responsibility to see that
the project is completed within budget and on time.
A blend of the two approaches is probably best in most cases. Needs can be determined at the top
with accountability falling at lower levels. By combining the vision of senior management with
the skills of lower-level team members efficiency and project success are more likely.

Traditional Vs. Projectized Organization.

A lot has been said about the advantages of projectized structures (such as efficient
communication in the project) but very little has been said about their disadvantages? Are there
actually any disadvantages of a projectized structure, and if there are none, then how come a lot
of organizations have not adopted this type of organization yet.

Nothing is perfect, and there are (quite a few) disadvantages to a projectized structure (this is
why a lot of traditional organizations have not adopted this type of structure). Disadvantages
include:

- Since resources are allocated to the same type of projects, there is no cross-fertilization of the
resources, meaning that resources will not gain experience from other departments in the
organization.

This leads to two direct problems:

1) Efforts are duplicated across projects, and

2) Resources are demotivated as they're always working on the same kind of projects.
- Very hard to implement especially in traditional organizations, as it doesn't consider the current
role and the weight of the managers, and completely shuffles all the roles and the
responsibilities.

Q3: List out the macro issues in project management and explain each.

Ans:

Evolving Key Success Factors (KSF) Upfront:

In order to provide complete stability to fulfillment of goals, a project manager needs to
constantly evaluate the key success factors from time to time.

While doing so, he needs to keep the following aspects of KSFs in mind:

The KSF should be evolved based on a basic consensus document (BCD).

KSF will also provide an input to effective exit strategy (EES). Exit here does not mean exit
from the project but from any of the drilled down elemental activities which may prove to be
hurdles rather than contributors.

Broad level of KSF should be available at the conceptual stage and should be firmed up and
detailed out during the planning stage. The easiest way would be for the team to evaluate each
step for chances of success on a scale of ten.

KSF should be available to the management – duly approved by the project manager – before
execution and control stages.

KSF rides above normal consideration of time and cost – at the levels encompassing client
expectation and management perception – time and cost come into play as subservient to these
major goals.

Empowerment Title (ET): ET reflects the relative importance of members of the organization
at three levels:

Team members are empowered to work within limits of their respective allocated
responsibilities. The major change from bureaucratic systems is an expectation from these
members to innovate and contribute to time and cost.

Group leaders are empowered additionally to act independently towards client expectation and
are also vested with some limited financial powers.

Managers are empowered further to act independently but to maintain a scientific balance among
time, cost, expectation and perception, apart from being a virtual advisor to the top management.

Partnering Decision Making (PDM): PDM is a substitute to monitoring and control. A senior
with a better decision making process will work closely with the project managers as well as
members to plan what best can be done to manage the future better from past experience. The
key here is the active participation of members in the decision making process. The ownership is
distributed among all irrespective of levels – the term equally should be avoided here since
ownership is not quantifiable. The right feeling of ownership is important.
This step is most difficult since junior members have to respond and resist being pushed through
sheer innovation and performance – this is how future leaders would emerge.

The PDM process is made scientific through:

Earned value management system (EVMS)

Budgeted cost of work scheduled (BCWS)

Budgeted cost of work performed (BCWP)

Actual cost of work performed (ACWP)

Management by Exception (MBE): “No news is good news”. If a member wants help he or she
locates a source and proposes to the manager only if such help is not accessible for free.
Similarly, a member should believe that a team leader‟s silence is a sign of approval and should
not provoke comments through excessive seeking of opinions. In short leave people alone and let
situation perform the demanding act.
The bend limit of MBE can be evolved depending on the sensitivity of the nature and size of the
project. MBE provides and facilitates better implementation of effectiveness of empowerment
titles. MBE is more important since organizations are moving toward multi-skilled functioning
even at junior most levels.

Q4: List and explain the traits if a professional manager.

Ans:

The traits if a professional manager are:

The project manager is an important team member who often makes the difference between
project success and failure. A project manager should have the skills to unite diverse individuals
and have them function as one cohesive team. There are certain traits that enable a manager to be
effective in his functioning. The top management will look for these in a person who they want
to employ for project management. Let us discuss some of these traits in detail.

a) Leadership:

These managers lead by exhibiting the characteristics of leadership. They know what they should
do, know why they are doing it, how to do it and have the courage and vision to execute it. They
have the power of taking along others with them. They lead by making themselves as an example
for the entire team. He is about to trust his team members and assign the right job to the right
person.

b) People Relationships:

Any leader without followers cannot be successful. They need to have excellent human
relationship skills. The manager should:

build up his team based on the core values of sincerity, objectivity, dedication and ethics

ensure that his subordinates get opportunities for growth based on performance

make his subordinates a part of the decision making process, thus ensuring cooperation and
commitment during implementation

delegate freely and support them and give enough room for expression of thoughts and also
make things challenging for team members

keep aspirations of the team members into considerations

c) Integrity:

Highest levels of trust, fairness and honesty are expected while dealing with people both within
and outside the organization. This includes the customers, shareholders, dealers, employees, the
government and society at large. They ensure that functioning is clean. Their transactions will be
transparent. Ethics is something they practice diligently.

d) Quality:

The quality philosophy should not cover only the product quality, but every process that has
gone into making it. Economy of words when instructions are given, acknowledging compliance,
arriving on time, remembering the promises and above all a keen eye for details and patience to
make others know what they want are components of quality.

e) Customer Orientation:

It is now recognized that every organization has two sets of customers – internal customers and
external customers. Internal customers are people in the organization – employees, directors and
team members. External customers are clients and all members of society the company comes in
contact in connection with the business.

f) Innovation and creativity:

Professional managers think beyond the obvious. They exhibit a keenness to go behind a
problem and attempt to find the root cause of the problem. They will draw from their experience
from diverse fields, seek further information and consider all possible alternatives and come out
with some new and unique solution. This happens when they have open minds.

g) Performance Management:

The professional manager not only ensures that his performance is at peak all times, but
motivates his entire team to perform the same. This comes by appreciation and encouragement.
In case of shortfalls, he arranges training for them so that their performance improves. Thus the
team members know that they are expected to perform, that they get help to do so and their effort
is recognized and rewarded too. This is the simple path of performance management.

Managers can follow a seven step performance management model.

Set Objectives/Performance Standards

Communicate these to the employees

Review/monitor

Check actual performance Vs. Standards set

Identify gaps

Jointly decide on corrective action, if needed

Reset objectives for next period

h) Identification with the organization:

A sense of pride and belonging goes with the “ownership” of the job, the project, team members
and organization. This is brought about by the culture and communication system in the
organization. Information sharing brings in trust and promotes belongingness. The tendency seen
is that most managers strongly identify with their own departments, units or divisions and they
lack a sense of organization.

i) Empowering employees:

The professional manager should possess the ability to empower his employees down the line.
Empowerment is the process by which employees are encouraged to take decisions pertaining to
their area of work. This leads employees developing a sense of pride in their jobs. But managers
often hesitate to empower their subordinates as they feel insecure and show a sense of
uncertainty. The professional manager practices empowerment and encourages employees to
grow and develop in their positions.

j) Coping with changes:

There is a saying – „The only constant in this world is change‟. A professional manager has the
ability and capacity to cope with change. He accepts the fact that change is inevitable and is
ready to implement change at the workplace.
To implement change successfully, it is essential that employees are involved in the
implementation of change. Moreover, the positive and negative consequences of change need to
be discussed and understood before implementation. Thus a professional manager has the
attitude to accept change as a way of life and takes it in his stride.

Q.5 List the major participants of project review process. Also highlight roles and
responsibilities of each.

Ans.

Project management

Project management, tools, process, plans and project planning tips.

Here are rules, processes and tools for project planning and project management.

While project management skills are obviously important for project managers, interestingly the
methods and tools that project manager’s use can be helpful for everyone.

A 'task' does not necessarily have to be called a 'project' in order for project management
methods to be very useful in its planning and implementation. Even the smallest task can benefit
from the use of a well-chosen project management technique or tool, especially in the planning
stage.

Any task that requires some preparation to achieve a successful outcome, will probably be done
better by using a few project management methods somewhere in the process. Project
management methods can help in the planning and managing of all sorts of tasks, especially
complex activities.

Project management is chiefly associated with planning and managing change in an organization,
but a project can also be something unrelated to business - even a domestic situation, such as
moving house, or planning a wedding.

Project management methods and tools can therefore be useful far more widely than people
assume.

Project management techniques and project planning tools are useful for any tasks in which
different outcomes are possible - where risks of problems and failures exist - and so require
planning and assessing options, and organizing activities and resources to deliver a successful
result.

Projects can be various shapes and sizes, from the small and straightforward to extremely large
and highly complex.

In organizations and businesses, project management can be concerned with anything,
particularly introducing or changing things, in any area or function,

For example:

People, staffing and management

Products and services

Materials, manufacturing and production

IT and communications

Plant, vehicles, equipment

Storage, distribution, logistics

Buildings and premises

Finance, administration, acquisition and divestment

Purchasing

Sales, selling, marketing

Human resources development and training

Customer service and relations

Quality, health and safety,

Legal and professional

Technical, scientific, research and development

New business development

And anything else which needs planning and managing within organizations.

Successful project management, for projects large or small, tends to follow the process outlined
below.

The same principles, used selectively and appropriately, also apply to smaller tasks.

Project management techniques are not just for project managers - they are available for anyone
to use.

Project management process

Agree precise specification for the project - 'Terms of Reference'

Plan the project - time, team, activities, resources, and financials - using suitable project
management tools.

Communicate the project plan to your project team - and to any other interested people and
groups.

Agree and delegate project actions.

Manage and motivate - inform, encourage, enable the project team.

Check, measure, monitor, review project progress - adjust project plans, and inform the project
team and others.

Complete project - review and report on project performance; give praise and thanks to the
project team.

Project follow-up - train, support, measure and report results and benefits.

Q.6 ABC organization has been in software business since last 20 years. The senior
management feels that although they are making profits, but the profit on an average is the
same each year. They decide that they would make some additions to the business and
decided to go ahead with development of some high technology for better profits. Can you
suggest some guidelines, which the management should follow in this venture?

Ans.

Every business aims to commence its activities in the foreign market. The foreign
market provides with both opportunities and risks. Therefore some prefer to enter in to strategic
relationships and one such is the Joint Ventures. A Joint Venture is an entity formed between
two or more parties to undertake economic activity together. The JV parties agree to create, for
a finite time, a new entity and new assets by contributing equity. They then share in the revenues,
expenses, and assets and the control of the enterprise.

Therefore the basic characteristics of joint venture can be summed up as:

1) Based on a Contractual Agreement.

2) Specific limited purpose and duration.

3) Joint Property Interest

4) Common Financial and Intangible goals and objectives.

5) Shared profits, losses, management and control. Reasons for setting Joint Ventures abroad the
reasons for setting up joint ventures can be contributed to three main factors and they are:

1. Internal Reasons.

2. Competitive Goals.

3. Strategic Goals.

1. The Internal reasons are as follows:

Building on company‟s strength.

Spreading on costs and risks.

Improving access to financial resources.

Economies of scale and advantages of size.

Access to new technologies and customers.

Access to innovative managerial practices.

2. The Competitive Goals are as follows:

Influencing structural evolution of the industry.

Defensive response to blurring industry boundaries.

Creation of stronger competitive units.

Speed to market.

Improved Agility.

3. The Strategic Goals are as follows:

Diversification

Synergies.

Transfer of technology/skill

Indian Joint Ventures Abroad

India started opening its economy a decade ago to integrate with global economy. The business
ventures abroad are not a new phenomenon in the independent India. The initiatives were taken
way back in the 1960s with the first ventures of Birla‟s in Ethiopia in the year 1964. However, it
has assumed specific significance after the Indian government started economic reforms in the
year 1991, making globalization of Indian business an integral part of economic reforms.

Significance of Indian Joint Ventures Abroad

International trade is considered to be imperative for economic development. Economic borders
of various countries have been opened on this premise under the aegis of world trade
organization. In countries, whose economy has moved from the level of necessity to comforts
and luxuries levels, there are increasing pressures for newer, better and superior products with
consistent quality, high reliability and attractive finish etc. Further, with the labour becoming
increasingly costly, the firms have to go for development of capital intensive technologies.
Thehuge investments in new product and technology development demands higher levels of prod
uction to ensure operations of the firms above the breakeven point. The scale of operations
required over a period of time reaches a level that is well above the entire domestic demand in
most of the developed countries, which generally have small population. The firms thus face the

problem of searching new markets and cheaper sources of raw material,
labour and other resources. Their growth and development, thus, depends upon
internationalization of the business.

Advantages and Disadvantages

A business while deciding upon whether to go for a joint venture should make a thorough
analysis on its business goals.

Advantages

Financial resources can be shared.

Allows for Investor diversification.

Reduces local Friction.

Reduce Fixed costs per product.

Direct management of business activities.

Competitive strengths of two parties can be combined.

A local JV partner knows the market.

Economic incentives add value to JVs.

Disadvantages

JV profits are shared.

Shared technologies can be used beyond JV.

Local Management of a JV can be unknown Broadly there are two schemes under which an
Indian Party can set up a JV abroad, namely the Automatic Route and the Normal
Route/Approval Route.

Automatic Route

Under the Automatic Route, an Indian Party does not require any prior approval from the
Reserve Bank for setting up a JV abroad (in case of investment in the financial sector, however,
prior approval is required from the concerned regulatory authority both in India and abroad).

The criteria for direct investment under the Automatic Route are as under:

The total µfinancial commitment of the Indian Party in JVs in any country other than Nepal,
Bhutan and Pakistan is up to 100% of its net worth and the investment is in a lawful activity
permitted by the host country

The Indian Party is not on the Reserve Banks exporters caution list / list of defaulters to the
banking system published/ circulated by the Credit Information Bureau of India Ltd.(CIBIL)/RBI
or under investigation by the Enforcement Directorate or any investigative agency or regulatory
authority;

The Indian Party routes all the transactions relating to the investment in a JV through only one
branch of an authorized dealer to be designated by it.

Normal Route

Proposals not covered by the conditions under the automatic route require the prior clearance of
the Reserve Bank for which a specific application in form ODI with the documents prescribed
therein is required to be made to RBI. Requests under the normal route are considered by taking
into account inter alias the primafacie viability of the proposal, business track record of the
promoters, experience and expertise of the promoters, benefits to the country, etc.

Project management

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