1. PROJECT
MANAGEMENT FRAME WORK:
Project is common word referred to
Organizations, Industries, and Institutions etc. We can define project as an
OBJECTIVE. Which includes organized skilled professional team working together
to achieve certain objective. Project includes Prime objective, surrounded
objective and combined together it is project. An objective is time bound and
so the rate of success of the project. Objective must be achieved in due time,
because it affects other objectives, manpower, cost etc. Delay at any point in
project delay the whole project. To achieve objective first we should prepare
feasibility report for it. It includes research work over project. We do paper
work for it. We do market research for it, whether the project concept is new,
old or general. There are number of ways to achieve the objective. And we
consider the right parameters like its simplicity, Dynamism, sensibility,
adaptability, accessibility, acceptability, user friendliness & cost
effectiveness for objective. We choose right way to do the project. More we do
the paper work for project, more the chances of success. The other important
parameter is secrecy of the objective. Sometime even team members do not know
what part or module is meant for what objective. Because project is distributed
in parts and being carried out with different team members at distant places.
Because small information leakage can affect the project. So, the
professionalism is required with teamwork. And when project is complete it
should give good returns for investments.
Project
Management:
Project Management is achieving objectives in
organized way. When we are doing project management, we mange RESOURCES for objective,
we decide TIME FRAME for objective, we look for BUDGET, we look for COST
EFFECTIVENESS, we look for MANPOWER, we look for RISK, we look for SECURITY, we
look for STATUTORY & INSURANCE etc.
All this we can do for Project Management. We can define it in detail.
1.
RESOURCE:
Resources for
Raw material in Manufacturing plant also resources where to sell after manufacturing
of the product. From smallest thing to largest one we should find out cost
effective resources which we can utilize for betterment of our organization.
Planning of resources saves time and money and provide integrated resource
network within the organization. Resource manager have detailed department wise
database for all kind of resources whether it is outside or within the
organization. Also, it manages access to resources at various levels.
2.
TIME FRAME:
It is key
feature which decide success or failure of the project. Project is divided into
modules and sub modules. Each module is attached to other module or sub
modules. Each module has dedicated skilled professional team to work. So, delay
in any team affects the other team and delay the whole project. All the team
should complete the dedicated task within stipulated time. Also, there is
competition with outside world, where same project is carried out. So, to
become winner among them it is best to beat them by time.
3.
BUDGET &
COST EFFECTIVENESS:
Before we
start the project, we prepare feasibility report for it. Project cost decides
the size of the project, whether it is small, and medium or large-scale
project. And then we look for budget we have. With Financial resources se can
manage budget flexibility, project cost effectiveness, project risk etc. The
cost effectiveness decide what cost product takes from raw material to become a
product ready to sale and what time it takes to give returns. Whether sale
product covers own cost and give profit or not.
4.
MANPOWER:
Managing Man
power requires a skilled and qualified person who has authority to recruit a
dedicated team to project. Project requires different hierarchy person like
Project Manager, Project Leader, Team Leader, Engineers etc. A team member has
dedicated job and with that job they are identified in project. So, their
recruitment is based on their qualification, expertise and eligibility for the
project. Also, we have to recruit them
efficiently which covers the budget.
5.
RISK &
SECURITY:
Project risk
we can define as criteria where project can fail. Project risk is part of
project management only. It is a
calculated risk we take to move ahead in project execution. Risk of
over-budget, cost, accidents, time delay, information leakage, security etc.
These are integral part or factors of project which can cause a risk. We have
to take counter measure to overcome it. By implementing safety norms,
information secrecy and security by setting privileged access levels to
resources etc. We have to implement best
policies and ready with back-up plan at any stage during the project
commissioning. That way we can successfully complete the project.
6.
STATUTORY
& INSURANCE:
When we
prepare feasibility report we have to count on whether the project is according
to statutory body and within the laws and norms. With prior permission of
authority only we can move further. Because With prior permission of the
authority only basic facilities and resources become available required for the
project. We have to produce complete project report with risks, security,
insurance etc. against the authority. We have to deposit security for the
project. Also, we take insurance policy to cover the risk of project and
project members. So, if during the project any accident happens, we reimburse
with amount. There are various kinds of policies like accidental (property or
manpower), financial loss, risk of delayed projects, Security and data theft,
third party insurance etc.
OPERATION
MANAGEMENT:
Operation or Execution is real-time process.
All the resources are going real-time during execution. So, doing operation
management is doing the real-time project management. The process operation
delivers throughput. It includes time management, engineering & technical
management, resource management, manpower management etc. Before going to operation,
we should equip, ready &synchronizes with all the resources and manpower.
Operation manager have final layout of operation, time scheduling, complete
resource access, skilled manpower, point to point communication, backup plans,
emergency, accident and safety management. That way he manages down time of
process by reducing errors, flaws and breakdowns. They also maintain record of
downtime to minimize it and increase productivity. Operations have larger contribution in
organization throughput & annual performance.
PROGRAM
MANAGEMENT:
Program
Management is planning and executing the sequence of the Program. We have to
prepare the program or process layout in advance. It includes the project
authorization to completion of the project. We have to program for project
Structure, Priority, Privileges, schedules, Order, flows, time frame etc. we
can explain it in detail
1.
Structure:
Program
structure is soul and body of program management. Program structure decides
program size. Whether it is small, mid-size or large scale. According to that
we program all the resources, manpower, finances, time etc. we required. Program
structure is prime objective and it requires resource planning, project cost,
skilled and labor manpower strength, administration, safety standards etc. By
programming all these gives the layout, strength and solidity of structure.
2.
Priority:
While we
commission new project, we have to program for project priorities. Priority
work is essential work to be done at earliest. It leads to next priority of the
project. This will elaborate priority work from rest of all work in buffer. Also,
with this we can identify and troubleshoot the particular program event. This
way we can do better program management.
3.
Privilege:
There is
privilege level for objective for which we are doing program management. We
have primary and surrounding objectives and we have to program them with
privilege level. Higher privileged objective or work has higher priority than
the lower one. Privilege level is set among whole program, while priority is
set within program module. By selecting privilege level, we lead to prime structure
of program.
4.
Schedule:
Program
schedule explain type and time for objective. We have basic three kinds of
schedules in program, 1. Mono schedule, 2. Multiple schedule and 3. Nested
schedule. It describes which type of program schedule happens at what time,
what number of time and how much time in program. Mono schedule program happens
once at the start of the program. Multiple schedule or routine schedule
programs happen time by time repeatedly in program. While nested schedule
program happens repeatedly in conjunction with the other program.
5.
Flow:
Program flow
describes how refined work we are proceeding with. To set a benchmark for our
project accomplished in due time we need better flow of work. It relates
real-time execution of program so the resources, skilled manpower, and
communication we require. Also, we should minimize errors, flaws, breakdowns to
achieve better flow of work. We should have sound financial resources, good
foresight, backup plans and experience project leaders to achieve quality
project furnish.
6.
Time-frame:
Time frame
defines the span of the project. It gives complete flow chart of the program.
It gives the program module time, module span and module place in the program.
It also decides the change in program like what module can be expandable for
what length and so the change in whole program. Program should accomplish in
time frame because delayed project affects manpower, budget, cost etc.
PORTFOLIO
MANAGEMENT:
Portfolio
refers to responsibility. Responsibility of any section, department or
ministry. Any organization, industry, institution or ministry runs successfully
if they are good at their management. We have Human Resource, Finance,
Administration, Public relation, Personnel, IT & Engineering, Quality
control, Fire and safety, Utility etc. common portfolio or department in any
organization. These portfolios are governing body of the organization. It
provides better management of the company. Each portfolio built up on its
strength like management education, eligibility, special skills and the most
important is experience. The position or responsibility in any section requires
these strength & quality. We can explain Each Portfolio in detail.
1.
Human
Resource:
The
department is responsible for budget monitoring, ISO monitoring, Manpower
planning. They are responsible to discover and implement new policies if
required. They avail all the resources required and also set secure access to
it. They also do induction and training for new recruitments. Also manages
their salary, accommodation, transport etc. The department has unique power and
authority.
2.
Finance:
Finance
portfolio is like foundation stone for any organization. We can put building
blocks over this foundation stone only. It manages finances from banks,
public-private investments through bonds and IPOs, government bodies etc.
Department manages this finance for organization’s betterment also finance
further small institution or private bodies. Department is responsible to share
company’s profit with their employees and shareholder through salary increments
and debentures. The department gives complete report of company’s financial
health for present and future. Department issues balance sheet, profit-loss
statements and quarterly, half-yearly and annual report copies of company’s
performance.
3.
Administration:
The real
strength of company requires good administration. The Administration section is
integrated throughout the organization like backbone. It involves in execution
and satisfies all the requirements of company. It monitors organization’s
rules- regulations, policies, ordinance implements right way. Also arrange
resources, transports, utilities for the company. They also arrange safety and
security for the employee. Administration is responsible for law and order
within the premises.
4.
Fire and
Safety:
The safe
working environment we can create by bringing it into our working practice. The
department is responsible for any accident happens in organization. They teach
safe working procedures at premises. Department conducts training session for
fire and safety, how we can skip near miss and accidents. Department also
provides safety clothing and equipment. Any organization’s working standards
decides by their safe working practice or their fire-safety department.
5.
Public
Relation:
Public relation as its names is responsible
for the communication whether it is within the organization or outside of the
organization. It makes official announcements on behalf of the company. It
arranges communication & meetings for internal or external body in conjunction
with administration. Also, it answers the queries, provide guidance to the
employees. Department conducts session for employees for new announcements,
dialogues, awareness of company policies, company performance, various kind of polling
for organization’s betterment.
6.
IT &
Engineering:
Today IT has
taken initiative to transform old and existing organizational infrastructure to
commanding and dominating industry against global standard companies. That way
industry can survive in tough competition. SAP & ERP working environment
outplay age old working practices at all.
SAP & ERP has now become strength and set global standards for the
company. Also cloud solution brought all the business online for online goods
sellers. With domain registration company goes global over net. That way
company is reachable Broadway. In telecommunication sector IT has dominated big
way in past few years. IT come up with Call centers, BPOs, Datacenters,
Software development, 3G/4G/Wi-Fi data services etc. Engineering department
looking after basic technical facilities like engines & alternators,
electrical sub stations, power station, panels, motors, starters, drives etc.
They are responsible for electrical breakdown and maintenance in the company.
In ministry
we have Home Ministry, Finance Ministry, External Affair Ministry, and
Information& Broadcasting Ministry etc. We can manage these portfolios by
handing over it to responsible eligible candidate. We fill these positions by
election, by recruitment agencies, by advertisement in newspapers, by
recommendations etc.
PROJECT
MANAGEMENT OFFICE:
Project Management Office is house of the all
resources required for the project. It is central processing system for project
department. They have access to all kind of projects they have monitored and
commissioned. Also, project data like project type, design, costs, time frame
etc. The project could be banking, finance, medical, industrial &
automotive, space and software projects. PMO is policy maker. They make policy
and implement it required for project whether it is global or domestic. They
follow norms and laws to authorize the project. They ink agreement and MOU to
bring new projects. PMO has its own kind of working culture in following
disciplines.
Ø Project Research:
o Project
report reviewed under certain privilege level and criteria. PMO do all research
work required for new project. Before project sanctioned it goes through legal,
project cost, budget, financial resources, bank guarantee, time frame, risk
& security etc. It is integrated process required NOC from all departments.
As soon project sanctioned it goes under execution phase.
Ø Project Monitoring:
o As soon
project is handover to the authority next process is monitoring of project. It
requires project progress report on regular interval. PMO representative make
sure project goes well according to plan and arranges finance & manpower
required for the project. Also, he takes feedback of project and gives required
suggestion for project.
Ø Project Submission:
o The
Submission formality comes on completion of the project. The representative of
PMO observes the project thoroughly and prepares report for each section
separately. The inspection team does verification each section and module for
its functionality. Also take trials for project ready to use commercially. Also
make it sure whether it is according norms and format. Only after clearance
from PMO project can be submitted.
Role
of Project Manager:
If we have
project then Project Management is the key to success of the project. And
person who is managing the project is Project Manager. Selection of project
manager should be done on merit, qualities and experience. Project Manager is
responsible person for success or failure of the project. Project Manager has
some key responsibilities like Time Management, Budget & Finance
Management, Manpower Management, Risk & Security Management, Insurance
& Statutory Management etc. All he has to do is to monitor and synchronize
all the processes. He has to keep watch and do internal audit on regular
interval for successful accomplishment of the project. He has to manage all the
resources and take important decision required for the project. He has to prepare project feasibility report
at the start of the project, project status report during project execution and
commissioning and finally project submission report at the end.
Organizational
Structure:
Any
organization, company or firm can be classified according to their working
nature. It can be huge Public Limited Company, Small and Medium Private Limited
Company or NGO etc. In public limited company governance of the company is
carried out with their first order directors, secretary and shareholders.
Investment and profit distribution to the shareholders is the basic economic
process in the company. First order directors and secretary has right to buy
the major portion of the share and when they want, they can sell it to shareholders
as per their convenience. While in
private limited company there is restricted stake of shareholder, to prevent power
transfer to share holder. Company can run smoothly even after any director or
secretary is removed or resign. NGO’s are basically running on charity raising
their funds through charity process for good will work. They are nonprofit
firms and works for social causes like public health, animal welfare etc., for
awareness, betterment and up-liftmen of living standards.
Rest is
distribution of responsibility among the departmental staff. Like Recruitments,
Public relations, Administrations, Finances, Logistics. Better management is
strength of any organization. In presence of experienced skill professional
company can achieve their targets and create landmark for others.
Enterprise
Environmental Factors:
In past two
decades industry and organizational environment is changed from root level. It
started with change in mind sent both from implementations side and back hand
side. IT revolution &advanced technologies produces continuous change and
improvement in working conditions of industries. Local and domestic businesses
get global presence and identity as per their requirement with their own domain
name. IT industries like ERP and SAP played role of curator for change in industries
working environment and standards. They offered packages for small, mid-size
and large-scale industries. IT department dominating rest of all departments in
industry with giving them separate identity module and all time connected to
each other in industry. With WAN and MAN offices can be connected as one unit
over geographically distant sites. Enterprise mail and messaging system make user
all time connected and updated even when user is mobile or travelling. As
online Retail and FMCG business migrated to cloud the parallel IT
infrastructure made up of enterprise cloud and data centers come to an existence.
Where buyer or user, seller (online retailer) and payment systems (banks etc.) is
connected in real time. This way enterprise world is become small village
technologically advanced and over the edge.
Also,
organizational behavior, working environments, departmental policies, ISO
standards etc. plays major role in deciding environmental factors. We can
explain this in details.
Organization Behavior:
Every
organization is founded over certain basic principles and think tank to run
organization for that particular time according to industrial and government
policies. Norms and guidelines. And time by time as policies change so the
behavior of the company. Any organization’s decision-making authority decides
the way organization should run in favor of company and their employee.
Working Environment:
Safe working
practice comes with ISO standards. It requires safety instruments like
clothing, helmets, belts etc. Procurement departments avails the resources for that.
Also, continuous inspection to minimize accidents. Synchronize with procurement
departments, all this require recruitment of eligible candidate. Organization
runs over these professional working principles. Decision should not be
politically motivated which defer the effects of decision. It should be in favor
of everybody.
Departmental Policies:
Different
department has different policies. Like safety department has health and safety
policy, Environmental policy, Anti-drug policy etc. Human Resource department has
employment and labor policy. Following this policy brings professional working
environment in the organization. That particular company has distinction over
other companies. Even employer checks for whether company ISO standards and
policies with performance before new recruitments.
ISO standards:
The formation
of ISO or International Standard Organization is to observe, execute and take
feedback of working standards of industries, companies and organization already
exists and coming up in future. Actually, ISO role is to improve the working
practice, health &living standards of employee, pollution free environment
etc. ISO measures are accepted and certified globally. These days it is hard for
manufacturer to sell their smallest product without ISO certificates. And to
pass ISO certification, company has to raise their working standards and level
to ISO mark. Actually, ISO is shaping up the new working atmosphere. ISO
standards come up with norms and code that define precision and perfection
every way from labor working practice to smallest unit manufacturing. Also, ISO
do regular inspection and audits to the industries they have certified whether
they are maintaining ISO standards or not, failed to maintain ISO standard,
company’s certificates get cancelled.
Organizational
Process Assets:
In any
organization the core contents of any team, process, and projects are called
the asset. We can define the process variables as process assets. These
variables are complex and integrated to the process. It could be process
hierarchy, resources, legal body & statutory involvement, process history
and future prospects etc. It plays key role in success of process
accomplishment. Like quiet and efficient decision-making sense put a foundation
stone for the process. Experience and eligible team work works towards
achieving process objectives. Resource management whether it is external or
within the organization can speed up process accomplishment. Process is also
having supporting bodies to work with like legal approval bodies, financial
institution etc. to work with. In short, the process flow with integrated
process variables is called process assets.
Project
Life cycle vs. Product life cycle:
The term “Life
Cycle” refers to a product or entity is produced, runs and expires and then
recycles if it is possible. When it comes to life cycle of project and product,
we can compare it and we can have difference and similarities and pros and cons
of it. We can define it in detail.
PROJECT
LIFE CYCLE:
When we have objective,
we plan to achieve it. We prepare layout of project. The key ingredients while
defining project is like the project feasibility, project adaptability,
acceptability, viability, reusability etc. Whether project is single or multipurpose?
After we define the project if we have approval then we start working over it
like project commissioning. After commissioning we have production in one hand
and project line run & maintenance in other. So, what is next is
modification time by time to project line. And when product become obsolete either
we can go for new project layout or we use this project line for other purpose.
Also, project warranty and license renew is part of project life cycle. So,
while commissioning projects we should know what the project life is? Whether
it is for life time, re-useable, multipurpose etc. This parameter decides
project life cycle. So, project life cycle we can define as,
1.
Project feasibility layout
2.
Project approval
3.
Project commissioning
4.
Production
5.
Maintenance
6.
Project warranty
7.
Project license renewal
PRODUCT
LIFE CYCLE:
Product life cycle is integrated with project
life cycle with some key difference. While we talk about product life cycle, we
look for kind of product we are planning for production. We see its
acceptability like product is orthodox or new to market. So, the risk of
product while come to market. It decides risk factors it comes up with. Next is
its approval for production, product cost effectiveness, production line
commissioning, product market exploration, product improvements etc. So, with these
key features we can define product life cycle as,
1.
Product history
2.
Product acceptability
3.
Product approval
4.
Production line
5.
Production
6.
Product exploration
7.
Product improvements
2. PROJECT
COST MANAGEMENT:
1.
What is Project Cost Management?
Cost management is the process of estimating,
allocating, and controlling the costs in a project. It allows a business to
predict coming expenses in order to reduce the chances of it going over budget.
Projected costs are calculated during the planning phase of a project and must
be approved before work begins. As the project plan is executed, expenses are
documented and tracked so things stay within the cost management plan. Once the
project is completed, predicted costs vs. actual costs are compared, providing
benchmarks for future cost management plans and project budgets.
The Cost Management knowledge area has 4
processes:
·
Plan Cost Management
The first of
the processes within the knowledge area is called Plan Cost Management. It involves the production of a cost
management plan, which is a component of the overall project management
plan. This document describes how the
project costs will be planned, structured, and controlled. It can feature elements such as the level of
accuracy and precision, control thresholds, and rules of performance
measurement for earned value management.
·
Estimate Costs
This process
represents the tasks involved in determining the monetary resources needed to
complete the project activities. Most of
the time it involves bottom up estimating, that is, determining the monetary
resources for each project task and rolling it up into an overall project
estimate. However, a top down approach
is usually quicker and less accurate but can be appropriate for the circumstances. Each task is estimated using techniques such
as analogous, parametric, and three-point estimating.
·
Determine Budget
This process
refers to the aggregation of individual project task budgets into an overall
project budget. It refers to the
production of a time-phased project cost baseline which can provide a graduated
ceiling for project funding limits throughout the project. Management reserves (overall project
contingencies) are also allocated. For small projects, the Estimate Costs and
Determine Budget processes can be viewed as one single process, because a time
phased cost baseline is often not necessary.
·
Control Costs
Although it’s
only one single process (out of 4 within the knowledge area and 47 within the
PMBOK), it’s arguably the most important one.
Keeping project costs under control requires the application of earned
value management. At any point in time
(usually right now) the project manager collects three pieces of information
for each task within the project:
Planned
value: The value of the work planned to be
completed.
Earned
value: The
actual value of all the work completed (earned).
Actual
cost: The actual cost of all the work completed.
Four values
are then calculated which indicate the current status of the project, two from
a budget perspective (CV and CPI) and two from a schedule perspective (SV and
SPI). Four more values are calculated which extrapolate the current project
status to the end of the project (ETC, EAC, VAC, ad TCPI). These values can be
compiled into a project status report and distributed to stakeholders.
2.
Differentiate between Cost Estimating and Cost Budgeting
Cost Estimate vs. Budget
There are two processes within the cost
knowledge area and planning process group: Estimate Costs and Determine Budget.
Both are required in order to develop the project cost performance baseline.
Cost Estimate
The cost estimates are simply the costs
associated with the work packages or activities within the project schedule.
Depending on the work package or activity, the cost estimate may be determined
using parametric, three-point, or analogous estimating techniques.
It is important for all cost estimates to
include any assumptions that were made, where did the estimate originate, who
provided the information, level of confidence, etc.
Budget
The budget is built using the cost estimates
and the project schedule. The budget provides a view of how much the project is
estimated to cost both from a total and a periodic perspective. This budget
feeds the cost performance baseline which is then used as critical ingredient
in performing earned value analysis and other cost management variance analysis
techniques. The project budget must be in alignment with the organization’s
funding limits in order to ensure the funding is available and has been
appropriated.
Both cost estimates and budget are needed in
order to determine the cost performance baseline and the project funding
requirements. Cost estimates are the estimated costs for each work package or
activity, whereas the budget allocates the costs over the life of the project
to determine the periodic and total funding requirements
3.
Key Terminology in Project Cost Management
·
Actual Cost of Work Performed (ACWP)
This measures the actual cost of work done as opposed to
what was budgeted in the Budgeted Cost of Work Performed (BCWP).
·
Budget
IT is a general list of planned expenses.
·
Budgeted Cost of Work Performed (BCWP)
IT is a Measure of the budgeted cost of actual work done.
Not to be confused with the BCWS.
·
Budgeted Cost of Work Scheduled (BCWS)
The approved budget allocated for the completion of a
project deliverable (or WBS) within a specific time period.
·
Cost overruns
An excess cost that is above budget.
4.
Core Processes of Project Cost Management Knowledge Area
|
|
PLAN COST
MANAGEMENT
|
ESTIMATE COSTS
|
DETERMINE
BUDGET
|
CONTROL COSTS
|
|
INPUTS
|
·
PROJECT
CHARTER
·
PROJECT
MANAGEMENT PLAN
·
ENTERPRISE
ENVIRONMENTAL FACTORSORGANIZATIONAL PROCESS ASSETS
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
ENTERPRISE
ENVIRONMENTAL FACTORSORGANIZATIONAL PROCESS ASSETS
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
BUSINESS
DOCUMENTS
·
AGREEMENTS
·
ENTERPRISE
ENVIRONMENTAL FACTORS
·
ORGANIZATIONAL
PROCESS ASSTES
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
PROJECT
FUNDING REQUIREMENTS
·
WORK
PERFORMANCE DATA
·
ORGANIZATIONAL
PROCESS ASSETS
|
|
TOOLS AND TECHNIQUES
|
·
EXPERT
JUDGEMENT
·
DATA
ANALYSIS
·
MEETINGS
|
·
EXPERT
JUDGEMENT
·
ANALOGOUS
ESTIMATING
·
PARAMETRIC
ESTIMATING
·
BOTTOM-UP
ESTIMATING
·
THREE-POINT
ESTIMATING
·
DATA
ANALYSIS
·
PROJECT
MANAGEMENT INFORMATION SYSTEM
·
DECISION
MAKING
|
·
EXPERT
JUDGEMENT
·
COST
AGREEGATION
·
DATA
ANALYSIS
·
HISTORICAL
INFORMATION REVIEWFUNDING LIMIT RECONCILIATION
·
FINANCING
|
·
EXPERT
JUDGEMENT
·
DATA
ANALYSIS
·
TO
COMPLETE PERFORMANCE INDEX
·
PROJECT
MANAGEMENT INFORMATION SYSTEM
|
|
OUTPUT
|
·
COST
MANAGEMENT PLAN
|
·
COST
ESTIMATES
·
BASIS
OF ESTIMATES
·
PROJECT
DOCUMENTS UPDATES
|
·
COST
BASELINE
·
PROJECT
FUNDING REQUIREMENTS
·
PROJECT
DOCUMENTS UPDATES
|
·
WORK
PERFORMANCE INFORMATION
·
COST
FORECASTS
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATES
·
PROJECT
DOCUMENT UPDATES
|
5.
Earned Value Technique
Earned Value Management (EVM)
In the past, project managers used to have two
parameters: planned expenditures and actual expenditures. These two variables
help the project manager compare planned spending with actual spending.
However, this is not enough information to get the whole picture; the
information was incomplete. It was not possible to understand the relationship
between the completed work and the money spent.
Getting the cost performance of the project was not
possible. This is where Earned Value Management (EVM) comes in. It helps
project managers overcome the shortcomings of traditional project management
methods.
Elements of Earned Value Management
Earned Value Management has three essential elements:
·
Planned Value (PV)
·
Earned Value (EV)
·
Actual Cost (AC)
You can call them primary data points as well.
·
Planned Value
Planned Value is the scheduled cost of work planned in a
given time. It is also called Budgeted Cost of Work Scheduled (BCWS). The total
Planned Value of the project is the Budget at Completion (BAC).
·
Earned Value
Earned Value is the amount of money earned from the
completed work at a given time. Simply put, you can say that the Earned Value
will show you the value of the completed work if the project was terminated
today, which is also called Budgeted Cost of Work Performed (BCWP)
·
Actual Cost
Actual Cost is the money spent to date. It is also called
the Actual Cost of Work Performed (ACWP). This is the easiest element of Earned
Value Management to identify; it just takes one look at the question.
Variances
You have two variances in Earned Value Management:
Schedule Variance and Cost Variance
Schedule Variance
Schedule Variance is the difference between Earned Value
and Planned Value
Schedule Variance = Earned Value – Planned Value
SV = EV – PV
You are behind schedule if the Schedule Variance is
negative; you are ahead of schedule if the Schedule Variance is positive and on
schedule if it is zero.
Cost Variance
Cost Variance is the difference between Earned Value and
Actual Cost.
Cost Variance = Earned Value – Actual Cost
CV = EV – AC
You are over budget if the Cost Variance is negative; you
are under budget if it is positive Zero means you are on budget.
Indexes
Like variances, indexes help you compare the planned
progress with actual progress. This helps you understand how efficient your
progress is. You have two indexes in Earned Value Management: Schedule
Performance Index (SPI), and Cost Performance Index (CPI).
Schedule Performance Index
This is the ratio of Earned Value and Planned Value.
Schedule Performance Index = (Earned Value) / (Planned
Value)
SPI = EV / PV
If the Schedule Performance Index is greater than one,
you have completed more work than planned to at this time or you are ahead of
schedule. If the opposite is true, you have completed less work than planned
and you are behind schedule. Lastly, if the Schedule Performance Index is equal
to one, you have completed the work as planned and are on schedule.
Cost Performance Index
This is the ratio between the Earned Value and Actual
Cost.
Cost Performance Index = (Earned Value) / (Actual Cost)
CPI = EV / AC
You are earning less than what you are spending or are
over budget if the CPI is less than one. If it is greater than one, you are
earning more than you are spending and are under budget. If the CPI is one, the
cost spent is equal to the cost earned; you are on budget.
Visit: Schedule Performance Index and Cost Performance
Index
Variance and performance indices are examples of derived
data points.
3. PROJECT
QUALITY MANAGEMENT
We all like
to buy quality products only which cannot be same as what we use to buy.
Quality products we can define with certain quality parameters like product
genuine or original, size and shape, color and polish, toughness, healthy,
durable, guarantee& warranty etc. All these parameters are monitored and
governed by ISO. After ISO certification
it comes to market to sell. Same procedure we follow to produce genuine
products. Same procedure we follow while commissioning ISO certified projects. Which
governs quality projects in every manner to produce genuine products. We have
to follow certain policies while commissioning projects. Policies like
1.
Food & Drug policy
2.
Health & Medical
3.
Environment policy
4.
Safe working policy
The project should be in industrial sector.
It should have authentic water, electricity, drainage connections. The
construction should be according to plan and accident prone. Project should follow
pollution norms and should have hard water treatment plants. Project management
should have manpower records, their working and living standards should
monitored and all necessary facility like residential, medical, transportation
should avail to employee. Their emolument, perks, working hour records should
be monitored.
COST OF QUALITY
As we already defined quality and quality
product defined under certain essential parameters. These parameters are size,
shape, color, polish, toughness, healthiness, durability, guarantee&
warranty etc. It is particular to specific product. Which should be precise for
particular products. And this precision defines the quality. These quality
parameters should be observed and monitored continuously. Quality should be
certified with authentic government or private agency. And that is we call
quality management. Only refined products we select and defected products are
rejected. And all this quality management required paying a cost. We call this
COST OF QUALITY.
CORE PROCESS
OF PROJECT QUALITY MANAGEMENT KNOWLEDGE AREA
Quality management
process includes integrated quality check and continuous quality process
monitor. Core process further justify by ISO like standard implementation and
observation. Separate quality management department check quality of goods
before it goes to market. Quality check parameter for precision measurement
like height, width, thickness, polish, taste, solidity, rigidness, compression
etc. monitored on regular interval. Various laboratory and technical
instruments for quality checks is used during process. Also observed data is
stored and used time to time for reference. The measured difference is used for
further quality improvement. The particular batch of product fail to clear
quality measurement is disqualified and never makes the market. Today
measurement standards become stricter to improve quality of goods.
SEVEN BASIC
TOOLS OF QUALITY
There are
several basic tools we require for quality measurement and management.
1.
Product research:
Product research and documentation is required for quality
product manufacturing and production. After numbers of survey, trial &
errors only quality production is manufactured.
2.
Product base:
It decides basic ingredients required to make product we
desire to make. We also can say it the raw material and true formulae to make
particular product. We have to patent the product we make to stop piracy.
3.
Product scope:
It decides present product status and future updates in
product. With that we can decide product’s sustainability.
4.
Product class:
Decide product class according to their kind and segregate
them by size, shape, texture, volume, expiry, warranty, guarantee, etc.
5.
Product certification:
Product’s ISO and other regulatory standards and their renewal
&validity.
6.
Product recycle:
It comes with product’s durability, aging and
reusability. How long we can use product as standard or quality product even
after its warranty.
7.
Product feedback:
It
requires for further improvement and as part of quality management of product.
A feedback from product user is taken back time to time for continuous
improvement in product.
4. PROJECT RISK MANAGEMENT
PROJECT
RISK:
Project risk is
part of project management. When we prepare project report, we have to
elaborate project risk separately to get rid of risk factors. There is separate
department for project risk assessment. They look after various issues that can
cause risk. There are various kinds of risk. Risk due to lack of financial
supports, due to statutory body and permissions, due to lake of skilled
manpower, due to safety issues and accidents, due to non-sell of products or
fell short of targets etc. All these issues are being discussed and counter
measures taken in advance. Enterprise Resource Planner is specialized department,
does market research thoroughly before prepare project layout. It minimizes
risk factors for new upcoming projects. There are number of agencies which
provide this kind of services to small companies come up with new project. Big
companies already have their own ERP departments. ERP professional paid big
bucks towards their business solutions.
RISK
AND EMV CALCULATION:
Expected Monetary Value is used
to calculate risk in project management. With EMV calculation we can quantify
project risks.
1.
Assign probability of occurrence for the risk
2.
Assign monetary value of the impact of the risk when it
occurs
3.
Multiply step 1 and step 2
The value we get
after performing step 3 is EMV. It is positive with positive risks and negative
with negative risks. Project risk is e.g.at construction site
1. Labor loss due to strikes and absenteeism and
2. Building Material loss due to price change
3. Effective
Working hours loss due to bad weather
Risk turns out
positive when there is monetary gain due to drop in loss and when monetary gains
are negative due to rise in loss there is negative risk.
RISK
CLASSIFICATION:
We can classify risk into sub categories
1. Strategies
risks
·
Business environment
·
Business strategy
·
Product, distribution and sourcing policies
·
Corporate reputation or brand image
·
Design and other core expertise
2. Operation
risks
·
Management, leadership and decision making
·
Operational process (product range, distribution network,
procurement and supply chains) and their management
·
Intangible assets
·
Compliance with laws, regulations and agreements
·
Information management
·
Continuity of operations
·
Compliance with requirements and responsible practices
3. Economic
risks
·
Price development of production factors
·
Price development of operating costs
·
Financial risks
·
Financial reporting
4. Accidental
risks
·
The environment
·
Personnel
·
Property
·
Business operations
·
Stakeholders
DECISION TREE
ANALYSIS
It is schematic representation of several
decisions followed by different chances of the occurrence. It is simply tree
shaped graphical representation of decision related to the investments and the
chance points that help to investigate the possible outcomes is called as a
decision tree analysis. Once the decision tree described precisely and the data
about outcomes along their possibilities is gathered, the decision alternatives
can be evaluated as follows.
1.
Start from the extreme right-hand end of the tree and
start calculating NPV for each chance points as you proceed leftward.
2.
Once the NPVs are calculated for each chance point,
evaluate the alternatives at the final stage decision points in term of their
NPV.
3.
Select the alternative which has the highest NPV and cut
the branch of inferior decision alternative. Assign value to each decision
point equivalent to the NPV of the alternative selected.
4.
Again, repeat the process, proceed leftward, recalculate
NPV for each chance point, select the decision alternative which has the
highest NPV value and then cut the branch of the inferior decision alternative.
Assign the value to each point equivalent to the NPV of selected alternative
and repeat this process again and again until final decision point is reached.
Thus, decision tree analysis helps the decision maker to
take all the possible outcomes into the consideration before reaching a final
investment decision.
RISK RESERVE
AND CONTINGENCY RESERVE
Contingency reserve is used when risk is occurs as part
of risk response strategy. The actual impact of the risk is added to the cost
or schedule, the estimates are updated, and contingency reserve decreases.
Contingency reserve is different from management reserve.
It has got privilege level in project management. The management reserve is at
higher level of risks i.e. unknowns unknown and contingency risk is at lower
level i.e. known unknowns and it is planned risk reserve. It is addressable and
resolvable that we can plan it on paper. We can calculate EMV for contingency
reserve, it helps finding out the product of risks probability of occurrence
and the impact its occurrence is expected to have.
Risk contingency reserve is planned strategy to overcome
project’s accidental loss and monitory loss. With RCR we can calculate and add
fraction of time or amount of risk to pool of project cost. And which is
calculated and delivered at the time of risk occurrence. That way we minimize
the impact and damage due risk occurrence over project. With graphical
representation project planners can calculate project cost including risk
covers in advance which is almost works as project insurance plan.
KEY
TERMINOLOGY IN PROJECT RISK MANAGEMENT:
CORE
PROCESSES OF RISK MANAGEMENT KNOWLEDGE AREA
Risk management knowledge area includes following core
processes. They are,
Ø
Plan Risk
Management
1.
Inputs
a.
Project charter
b.
Project management plan
c.
Project documents
d.
Enterprise environmental factors
e.
Organizational process assets
2.
Tools and
techniques
a.
Expert judgement
b.
Data analysis
c.
Meetings
3.
Outputs
a.
Risk management plans
Ø Identify Risks
1. Inputs
a.
Project Management Plan
b.
Project documents
c.
Agreements
d.
Procurement & Documentation
e.
Enterprise Environmental
factors
f.
Organizational process assets
2. Tools and Techniques
a. expert judgement
b. Data gathering
c. Data analysis
d. interpersonal team skills
e. Prompt list
f. Meetings
3. Outputs
a. Risk register
b. Risk report
c. Project documents updates
Ø Perform Qualitative Risk Analysis
1.
Inputs
a.
Project management plan
b.
Project documents
c.
Enterprise Environmental
factors
d.
Organizational process assets
2.
Tools and
Techniques
a.
Expert judgement
b.
Data gathering
c.
Data analysis
d.
Interpersonal and team skills
e.
Risk categorization
f.
Data representation
g.
Meetings
3.
Outputs
a.
Project Document updates
Ø Perform Quantitative Risk Analysis
1.
Inputs
a.
Project management plan
b.
Project documents
c.
Enterprise Environmental
factors
d.
Organizational process assets
2.
Tools and
Techniques
a.
Expert judgement
b.
Data gathering
c.
Data analysis
d.
Interpersonal and team skills
e.
Representations of uncertainty
f.
Meetings
3.
Outputs
a.
Project Document updates
Ø Plan Risk Responses
1.
Inputs
a.
Project management plan
b.
Project documents
c.
Enterprise Environmental
factors
d.
Organizational process assets
2.
Tools and
Techniques
a.
Expert judgement
b.
Data gathering
c.
Interpersonal and team skills
d.
Strategies for threats
e.
Strategies for opportunities
f.
Contingent response strategies
g.
Strategies for overall project
risk
h.
Data analysis
i.
Decision making
3.
Outputs
a.
Change requests
b.
Project management plan updates
c.
Project document updates
Ø Implement Risk Responses
1.
Inputs
a.
Project management plan
b.
Project documents
c.
Organizational process assets
2.
Tools and Techniques
a.
Expert judgement
b.
Interpersonal and team skills
c.
Project management information
system
3.
Outputs
a.
Change requests
b.
Project document updates
Ø Monitor Risks
1.
Inputs
a.
Project management plan
b.
Project documents
c.
Work performance data
d.
Work performance reports
2.
Tools and
Techniques
a.
Data analysis
b.
Audits
c.
Meetings
3.
Outputs
a.
Work performance information
b.
Change requests
c.
Project management plan updates
d.
Project documents updates
e.
Organizational process assets
updates
|
|
Plan Risk
Management
|
Identify Risks
|
Perform
Qualitative Risk Analysis
|
Perform
Quantitative Risk Analysis
|
Plan Risk
Responses
|
Implement Risk
Responses
|
MONITOR RISKS
|
|
INPUTS
|
·
Project charter
·
Project management plan
·
Project documents
·
Enterprise environmental factors
·
Organizational process assets
|
·
Project Management Plan
·
Project documents
·
Agreements
·
Procurement & Documentation
·
Enterprise Environmental factors
·
Organizational process assets
|
·
Project management plan
·
Project documents
·
Enterprise Environmental factors
·
Organizational process assets
|
·
Project management plan
·
Project documents
·
Enterprise Environmental factors
·
Organizational process assets
|
·
Project management plan
·
Project documents
·
Enterprise Environmental factors
·
Organizational process assets
|
·
Project management plan
·
Project documents
·
Organizational process assets
|
·
Project management plan
·
Project documents
·
Work performance data
·
Work performance reports
|
|
TOOLS & TECHNIQUES
|
·
Expert judgement
·
Data analysis
·
Meetings
|
·
expert judgement
·
Data gathering
·
Data analysis
·
interpersonal team skills
·
Prompt list
·
Meetings
|
·
Expert judgement
·
Data gathering
·
Data analysis
·
Interpersonal and team skills
·
Risk categorization
·
Data representation
·
Meetings
|
·
Expert judgement
·
Data gathering
·
Data analysis
·
Interpersonal and team skills
·
Representations of uncertainty
·
Meetings
|
·
Expert judgement
·
Data gathering
·
Interpersonal and team skills
·
Strategies for threats
·
Strategies for opportunities
·
Contingent response strategies
·
Strategies for overall project risk
·
Data analysis
·
Decision making
|
·
Expert judgement
·
Interpersonal and team skills
·
Project management information system
|
·
Data analysis
·
Audits
·
Meetings
|
|
OUTPUTS
|
·
Risk management plans
|
·
Risk register
·
Risk report
·
Project documents updates
|
·
Project Document updates
|
·
Project Document updates
|
·
Change requests
·
Project management plan updates
·
Project document updates
|
·
Change requests
·
Project document updates
|
·
Work performance information
·
Change requests
·
Project management plan updates
·
Project documents updates
·
Organizational process assets updates
|
5.
PROJECT PROCUREMENT MANAGEMENT
Contract:
The organization or industry hires or lease any out-side
company for their own job work to do is called a contract or contract-based
work.
Types of Contract:
The efficient work output can be delivered through
distributed and organized work. We have to manage work distribution flowchart
in advance, which includes contracts, sub-contracts, in bound and out bound
resources, job work, raw materials etc. the contract term itself defines the
work or job-work to be finished in pre-define work format. The contract work is
time bound and can temporary, short-term or long-term, it could be company’s
direct or third-party contract, labor contract or labor & inventory
contract. The work format includes working hours, job finish time span, budget,
warranty settlement issues, manpower, contract condition and norms etc.
o Fixed
price or lump sum contracts
o Cost-reimbursable
contracts
Advantages and Disadvantages of contract
types:
Advantages:
Ø The
contract work is carried out with specialized and highly skilled dedicated manpower
Ø It
is time and money saving
Ø The
efficient and precision work is carried out
Ø The job
work risk factors can be minimized
Ø The
loss in contract is beard by contractors
Disadvantages:
Ø The
utilization loss of industry’s own employee and so the work throughput
Ø The
separate budget for contact work has to be made
Ø If
contract is only for labor then inventory, their warranty and damages have to
be bear by industry
Ø The
contract is based on terms-conditions and negotiation power so some time
industry have to bear in bad circumstances
Ø
The contractors labor handling is quite difficult and
once they are in premise, they complete their job and leave the premises at
their accordance
HIGH RISK BUYER
RISK LOWER RISK
|
CCPC
Cost
plus percentage of costs
|
CPFF
Cost
plus fixed fee
|
CPIF
Cost
plus incentive fee
|
CPAF
Cost
plus award fee
|
FPI
Fixed
price incentive
|
FP-EPA
Fixed-price
economic price adjustment
|
FFP
Firm
fixed price
|
LOW RISK SELLER
RISK LOWER RISK
KEY TERMINOLOGY IN PROJECT PROCURES MANAGEMENT:
Project Procure Management
·
Acquiring goods or services for project from the outside performing
organization.
Main Process
·
Planning the procurement is what to procure, when to
procure and how to do it?
·
Conducting procurement: obtaining seller responses,
selecting sellers and awarding contracts
·
Controlling procurements: managing relationship with
sellers, monitoring contract performance, making changes as needed and closing
out contracts
Several procurement tools and techniques
·
Make or buy analysis
·
Expert judgement
·
Market research
CORE PROCESS OF PROJECT PROCUREMENT
MANAGEMENT KNOWLEDGE AREA
PROJECT PROCUREMENT MANAGEMENT OVERVIEW:
|
|
PLAN
PROCURE MANAGEMENT
|
CONDUCT
PROCUREMENTS
|
CONTROL
PROCUREMENTS
|
|
INPUTS
|
·
Project
charter
·
Business
documents
·
Project
management plan
·
Project
documents
·
Enterprise
environmental factors
·
Organizational
process assets
|
·
Project
management plan
·
Project
documents
·
Procurement
documentations
·
Seller
proposals
·
Enterprise
environmental factors
·
Organizational
process assets
|
·
Project
management plan
·
Project
documents
·
Agreements
·
Procurement
documentation
·
Approved
change requests
·
Work
performance data
·
Enterprise
environmental factors
·
Organizational
process assets
|
|
TOOLS
& TECHNIQUES
|
·
Expert
judgement
·
Data
gathering
·
Data
analysis
·
Source
selection analysis
·
Meetings
|
·
Expert
judgement
·
Advertising
·
Bidder
conferences
·
Data
analysis
·
Interpersonal
and team skills
|
·
Expert
judgement
·
Claims
administration
·
Data
analysis
·
Inspection
·
Audits
|
|
OUTPUTS
|
·
Procurement
management plan
·
Procurement
strategy
·
Bid
documents
·
Procurement
statement of works
·
Source
selection criteria
·
Make-or-busy
decisions
·
Independent
cost estimates
·
Change
requests
·
Project
document updates
·
Organizational
process assets updates
|
·
Selected
sellers
·
Agreements
·
Change
requests
·
Project
management plan updates
·
Project
documents updates
·
Organizational
process assets updates
|
·
Closed
procurements
·
Work
performance
·
Procurement
documentation updates
·
Change
requests
·
Project
management plan updates
·
Project
documents updates
·
Organizational
process assets updates
|
We
have several terms need to be taken care while doing procurement
·
Procurement management plan: includes developing
documentation for making outside purchase or acquisitions to contract closure
·
Statement of work: it is statement (type of scope
statement) of work required for contact work. it includes,
a.
Scope of work
b.
Location of work
c.
Period of performance
d.
Deliverables schedules
e.
Applicable standards
f.
Acceptance criteria
g.
Special requirements
·
Request for proposals: used to solicit proposals from
prospective sellers
·
Request for quotes: used to solicit quotes or bids from
prospective suppliers
·
Use of soft-wares required while doing procurement are,
a.
Word-processing
b.
Spread-sheet
c.
Databases software
d.
Presentation software
e.
E-procurement software
·
We have to follow the procedure to close the procurement
order
6. PROJECT
COMMUNICATION MANAGEMENT
COMMUNICATION:
Communication is conveying information between two or
more people in its original form at right time. In context of project
communication is the conveying each information and feedback of each stage of
project in detail every time throughout the project commissioning. By doing
this we can implement continuous flawless project commissioning. At every stage
in project, communication is essential which leads to next stage or provide
next move in project commissioning. We can manage project communication by
drawing complete process flow and recruiting responsible key persons to each
process. We have to plan, manage and control the communication for successful
project communication management.
COMMUNICATION METHODS, TECHNOLOGY AND
CHANNELS:
While establishing communication we should
know basics of communication management like:
Audience: Are the stakeholders, team members,
sponsors, customers and other interested parties. We consider anyone impacted by the project or
who influences its success.
Objective: is the motto for commissioning of
project. Also making availability of project resources, finances to decide
spending over project.
Message: Are the key ingredients of project
process to communicate, like scope, schedule budget, objectives, risks, and
deliverables.
Channel: is medium to communicate. It can be
formal report, emails, message, verbal debrief among stake holders in meeting.
BASIC COMMUNICATION MODEL:
While
defining communication model project stake holders and project managers have to
consider certain criteria like,
·
Collection and analysis of data
·
Creation of messages for communication
·
Transmission or distribution of communication
·
Storage of any communication reports, files or
documentation
·
Retrieval of any stored communications
·
Disposal of any old communications upon project closure
or a set date.
Also,
we should govern the communication activities carried out among project stake
holders, managers and other members.it should be
·
Communication went out as planned
·
Communication received by stake holders
·
The format of message understood
·
The message or feedback provided to the appropriate
project members
There
are several skills project should model should have like,
·
Strong active listening skills
·
Proficient writing skills
·
Excellent speaking ability
·
Asking questions and probing for more information
·
Setting and managing expectations
·
Motivating people to stay engaged
·
Conflict resolution skills
·
Ability to analyze and reproducing skills
KEY TERMINOLOGY IN PROJECT COMMUNICATION
MANAGEMENT:
·
There are several characters who play a key role while
establishing and managing communication:
·
Project planning
·
Project scheduling
·
Resource allocation and capacity planning
·
Budgeting and monitoring project costs
·
Quality management
·
Storing and sharing documentation and project records
·
Creating and publishing project reports
·
Tracking the actual time spent on project tasks versus
plan
·
Analyzing trends and forecasting
CORE PROCESS OF COMMUNICATION MANAGEMENT
KNOWLEDGE AREA:
|
|
PLAN
COMMUNICATIONMANAGEMENT
|
MANAGE COMMUNICATION
|
MONITOR OR CONTROL
COMMUNCATION
|
INPUT
|
·
Project
charter
·
Project
management plan
Resource management plan
Stakeholder engagement plan
·
Project
documents
Requirements documents
Stakeholder register
·
Environmental
factors
·
Organizational
process assets
|
·
Project
management plan
·
Project
documents
·
Work
performance reports
·
Enterprise
environmental factors
·
Organizational
environmental assets
|
·
Project
management plan
·
Project
documents
·
Work
performance data
·
Enterprise
environmental factors
·
Organizational
process assets
|
|
TOOLS AND TECHNIQUES
|
·
Expert
judgement
·
Communication
requirements analysis
·
Communication
technology
·
Communication
models
·
Communication
methods
·
Interpersonal
and team skills
Communication styles
management
Political awareness
Cultural awareness
·
Data
representation
Stakeholder engagement
assessment matrix
·
Meetings
|
·
Communication
technology
·
Communication
methods
·
Communication
skills
·
Project
management information system
·
Project
reporting
·
Interpersonal
and team skills
·
meetings
|
·
Expert
judgement
·
Project
management
Information system
·
Data
representation
·
Interpersonal
& team skills
·
meetings
|
|
OUTPUT
|
·
Communication
management plan
·
Project
management plan updates
Stakeholder engagement plan
·
Project
documents update
Project schedule
Stakeholder register
|
·
Project
communication
·
Project
management plan updates
·
project
document updates
·
organizational
process assets
|
·
Work
performance information
·
Change
requests
·
Project
management plan updates
·
Project
documents updates
|
7. PROJECT
STAKE HOLDER MANAGEMENT
STAKEHOLDER:
Stakeholders
are those who have an interest or stake in project strategy undertaken by
company or an organization, they will be affected in some way be the project
and so have an interest in influencing it. They may benefit from the project and
so will be supportive and positive about it. In contrast, project may damage
their interest or they may perceive it will have negative outcome for them so
they will seek to stop it or, at the very least project it in a bad light. Basically,
there are two types of stakeholders, a. internal stakeholder and b. external
stakeholder to the client organization.
STAKEHOLDER REGISTER
A stakeholder register is a project document
that has information about the project stakeholders. It identifies the people,
groups, and organizations that have any interest in the work and the outcome.
Information on a Stakeholder Register:
·
Names
·
Titles
·
Roles
·
Interests
·
Power
·
Requirements
·
Expectations
·
Type of influence
We
should create the stakeholder register once the sponsor signs the project
charter. Identify and analyze your stakeholders. Then you can draft a strategy
to manage these stakeholders.
The Content of the Stakeholder Register
You
can divide the stakeholder register information into three categories:
·
Stakeholder Identification
Name
Title
Contact information
Role in the project/organization
This is an important section. There are many stakeholders
and you may not interact with them all frequently. A few may be unknown to your
team members and this information will be useful if you need to contact these
stakeholders.
·
Stakeholder Assessment
Here you will record your assessment of each stakeholder,
such as:
Their requirements
Their communication needs
Their communication frequency
Their expectations
Their influence on the project
Their interest and power
Project management is about stakeholder satisfaction and
understanding your stakeholders’ requirements, expectations, communication
needs and their influence on the project. It will help you complete the project
with minimal obstruction.
·
Stakeholder Classification
Here you classify the stakeholders based on
various criteria.
You may categorize them based on their power
and on their interest in the project. High power stakeholders will be separated
from lower power ones.
You can assign attributes to stakeholders;
for example, internal, external, positive, supporter, resistor, or neutral.
This is vital information. Based on these attributes, you will develop your
stakeholder management strategy.
If you include a stakeholder management
strategy, it will be the fourth category.
In a big organization, stakeholder management
strategy is a separate document. However, in a smaller one, this information
can be included in the stakeholder register.
VARIOUS ANALYTICAL TECHNIQUES FOR STAKEHOLDER ANALYSIS
To classify stakeholders, you can use any
model, such as Power/Influence Grid, Influence/Impact Grid, Power/Interest
Grid, and Salience Model.
After completing the classification, you will
draft the stakeholder management strategy. This will help you manage them
according to their requirements, influence, and interest in the project. A more
influential stakeholder will require a different strategy than one with a lower
level of influence.
The stakeholder register can have sensitive
information, and you may not want your impressions of others to be known by
everyone. Therefore, keep this document in a secure place. Make sure access to
this information is limited.
Many organizations do not restrict who can
read the stakeholder register. If this is the case, you can create a separate
document for your stakeholder strategy and keep it in a secure place.
As the project progresses, you will identify
new stakeholders and their attributes can also change. Keep the register
updated throughout the project life cycle.
VARIOUS MANAGEMENT AND INTERPSERSONAL SKILLS
We,
required following documents while preparing stakeholder register,
·
Project charter
·
Contract document
·
Old lessons learned
·
Organizational process assets
You
will conduct brainstorming sessions with your team members. You may use
interviews and information gathering techniques to collect the stakeholders’
data.
KEY TERINOLOGY IN PROJECT STAKEHOLDER MANAGEMENT
You
create the stakeholder register when the project charter is signed. It has your
stakeholders’ information and strategies to manage them. Identifying
stakeholders is a continuous process, and this document should always be kept
current
Every
organization has a template for the stakeholder register; you do not create it
from scratch, just have to identify the stakeholders. Once you complete this
process, you will update your stakeholder register.
Below
are a few links for stakeholder templates.
·
First Template
·
Second Template
You
can review them for a better understanding of the stakeholder register.
Before
concluding this post, let’s revisit the key points:
Ø A stakeholder
is a person, group, or other entity that has an interest in your project.
Ø A stakeholder
register is a project document that records the details of your stakeholders.
Ø You should
update the register when you identify any new stakeholders. Any change in a
stakeholder’s attributes should be updated in the register.
Ø You should
limit access to this document as it may have sensitive information.
CORE PROCESS OF PROJECT STAKEHOLDER MANAGEMENT KNOWLEDGE
AREA
|
|
IDENTIFY STAKEHOLDERS
|
PLAN STAKEHOLDER MANAGEMENT
|
MANAGE STAKEHOLDER ENGAGEMENT
|
CONTROL STAKEHOLDER ENGAGEMENT
|
|
INPUTS
|
·
PROJECT
CHARTER
·
PROCUREMENT
DOCUMENT
·
ENTERPRISE
ENVIRONMENTAL FACTORS
|
·
PROJECT
MANAGEMENT PLAN
·
STAKEHOLDER
REGISTER
·
ENTERPRISE
ENVIRONMENTAL FACTORSORGANIZATIONAL PROCESS ASSETS
|
·
STAKEHOLDER
MANAGEMENT PLAN
·
COMMUNICATION
MANAGEMENT PLAN
·
CHANGE
LOG
·
ORGANIZATIONAL
PROCESS ASSETS
|
·
PROJECT
MANAGEMENT PLAN
·
ISSUE
LOG
·
WORK
PERFORMANCE DATA
·
PROJECT
DOCUMENTS
|
|
TOOLS AND TECHNIQUES
|
·
STAKEHOLDER
ANALYSIS
·
EXPERT
JUDGEMENT
·
MEETINGS
|
·
EXPERT
JUDGEMENT
·
MEETINGS
·
ANALYTICAL
TECHNIQUES
|
·
COMMUNICATION
METHODS
·
INTERPERSONAL
SKILLS
·
MANAGEMENT
SKILLS
|
·
INFORMATION
MANAGEMENT SYSTEMS
·
EXPERT
JUDGEMENT
·
MEETINGS
|
|
OUTPUTS
|
·
STAKEHOLDER
REGISTER
|
·
STAKEHOLDER
MANAGEMENT PLANPROJECT DOCUMENTS UPDATES
|
·
ISSUE
LOG
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATES
·
PROJECT
DOCUMENT UPDATES
·
ORGANIZATIONAL
PROCESS ASSETS UPDATES
|
·
WORK
PERFORMANCE INFORMATION
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATES
·
PROJECT
DOCUMENTS UPDATES
·
ORGANIZATIONAL
PROCESS ASSETS UPDATES
|
8.
Project Time Management
6.
What is Project Time Management
The Time Management in project can be defined as the time
required for preparing process layout at the start to the end of the project.
Time management function comes with its true character, like time required and
time invested. The time management function can be categorized into four sub category.
They are,
·
Planning
It consists
project management group identification as per its functionality, which
includes PM group usual routines and the way functions carryout routines.
·
Scheduling
It is the core
process of PM group identifies realistic time and resource it requires. It
gives real-time project execution layout.
·
Monitoring
When plan and
schedule is in the motion then monitoring comes into picture. It monitors
real-time process and gives deviated feedback against input. With the
collection of error reports, log reports it is useful to predict future plans
and required changes to work.
·
Control
It is
sub-function of time management function. It is must have time management
sub-function. Without control time management does not exist. It is responsible
to take real-time process feedbacks and on the basis of that, it takes decision
to make required changes to process. Also, it collects various process reports,
error-logs, process responses of various parameters and other feedbacks.
The sub-category further breaks into its
component with sub-functions. Together all they give glossary of time
management terms, sets forth the sub-function and content outline.
ü What is
Project Schedule
ü Gantt Charts
ü Network
Diagram
ü Estimation
ü Schedule
Network Analysis Techniques
ü PERT, PERT
Analysis, Critical Path Method and Schedule Compression
ü Core
Processes of the Project Time Management Knowledge Area
Each
time management functions further breaks into sub-functions and we can define
them into their function area. They are,
Planning:
Ø Identification
of activities carried out to meet specified objectives.
Ø Identification
resource types and quantities required to carry out each activity or task.
Ø Establishment of logical sequences of
activities of task.
·
Project objectives
·
Time management scope
·
Constraints
·
General sequencing milestones for control
·
Policies
·
Methods and procedures
·
Authority and responsibility
·
Level of detail
·
Breakdown and logic
·
Project segments
·
Task types
·
Restraint types interfaces
·
Analysis
·
Time periods
·
Workloads
·
Alternatives
·
Feasibilities
Scheduling:
·
Real time
·
Input milestones
·
Input restraints
·
Input priorities
·
Logic and data refinements
·
Calculations
·
Real resources
·
Input limits
·
Input priorities
·
Data refinement
·
Calculations
·
Analysis
·
Verifications
·
Alternatives
·
Interpretation
·
Recommendations
·
Displays
·
Lists
·
Graph
·
Distribution
·
Discussion
·
Assistance
·
Documentation
Monitoring:
·
Data collection
·
Calculation
·
Time
·
Resource
·
Performance
·
Progress and performance analysis
·
Variance identification
·
Impact/variance interpretation
·
Verification
·
Reporting
·
Discussions
·
Recommendations
·
Documentation
Control:
·
Evaluate
·
Receive information
·
Comprehend situation
·
Assess information
·
Recognize alternatives
·
Decide
·
Rank alternatives
·
Select
·
Test
·
Direct
·
Instruct
·
Follow-up
2. WHAT IS PROJECT SCHEDULING?
Project scheduling is core process of project
time management. It gives realistic time and resources required for real-time
execution of project layout. Before execution
in real-time, system should be equipped with required parameters, interfaces,
feedback inputs etc... The scheduling function is responsible to organize each
execution sequence successfully in real-time. The scheduling further breaks
into sub functions like,
Real-Time:
·
Real time: The project execution calendar date affected
due to application of external time functions causing delay in execution of
other processes too.
·
Input milestones: The project completion time decided by
the target events accomplishment.
·
Input restraints: the input date reflected due to other functions
and target date reflected outputs required by other functions, such items as
float allocation and constraints.
·
Input priorities: the current process execution priority
and sequences w.r.t. previous one.
·
Logic and data refinements: the current conclusive data
refinement obtained as feedback from past processes as input to upcoming
process.
·
Calculations: The mathematical calculations required for
real-time process execution on scheduled date.
·
Real resources: the scheduling of plan affected by
real-time resource limitations.
·
Input limits: The balance of process output with resource
schedule management.
·
Input priorities: Resource balance or limitations can
cause of failure in establishment of input sequence of priority or preference on
all activities.
·
Data refinement: The modification of planning assumptions
which conflict resource limitations.
·
Calculations: The schedule calculations in terms of
resource applications and limits which affect time.
·
Analysis: Assessment of schedule with relation to the
effect of real-time and real resources on the required objectives
·
Verifications: Assurance of the resulting schedule
matches the overall required objectives.
·
Alternatives: Investigation of alternative methods of
meeting objectives when schedule does not meet objectives or for purposes of
improving project.
·
Interpretation: Lack of information to appropriate and
understandable terms and explanations.
·
Recommendations: considered conclusions which suggest
decisions.
·
Displays: Verbal, written, tabulated, graphical, findings
and results are displayed.
·
Lists: tabulations of organized in meaningful
information.
·
Graph: Pictorial representations of relative variables.
·
Distribution: Dissemination of information.
·
Discussion: Dialogue explaining implications and impacts
on objectives.
·
Assistance: conveyance of understanding, comprehension
and use of schedule.
·
Documentation: Back-up information, user information and
references.
3. GRANT
CHARTS
4. NETWORK DIGRAM
5.
ESTIMATION
6.
SCHEDULE NETWORK ANALYSIS TECHNIQUES
We
can employ schedule network analysis by various methods,
·
Critical path method
A critical path is the longest path in a network diagram.
The following steps are carried out in a critical path method: Longest path is
determined through the network diagram earliest and latest time when an
activity can start is determined earliest and latest date when an activity can
be completed is also determined.
·
NEAR-CRITICAL PATH
A near-critical path is close in duration to the critical
path. If the critical path and near-critical path are closer to each other in
length, it increases the risk of the project. The project manager should focus
on monitoring and controlling activities on both critical and near-critical
paths to avoid any delays to project completion. FLOAT (SLACK) Floats are
mainly of three different types:
o Total
Float (slack): The amount of time the activity can be
delayed without delaying the project end date. Total float is considered as a
primary type of float.
o Free
Float (slack): The amount of time the activity can be
delayed without delaying the early start date of the successor(s)
o Project
Float (slack): The amount of time the activity can be
delayed without delaying the externally imposed project completion date
required by the management or by the customer. The float is an advantage for
the project.
A float can be used by the project manager to:
o Effectively
manage the project
o Achieve
better allocation of resources
For example, if you have a new resource that is still
learning and if you feel he will take longer to complete the task, you can
allocate him to the activity which has maximum float. Thus, even if the
activity is taking longer, it is less likely that the project will be delayed.
The amount of float also indicates the time flexibility the project members may
have for each activity. Formula for calculating float: Float = Late Start (LS)
– Early Start (ES) Float = Late Finish (LF) – Early Finish (EF) Either formula
will give the same result.
USING CRITICAL PATH METHOD
A forward and a backward pass need to be performed
through the network diagram to determine the earliest and latest each activity
can start and the earliest and latest each activity can finish. For the “early”
figures, calculations are required from the beginning of the project to the end
of the project, following the dependencies of the network diagram – a “forward”
pass through the network diagram. For the “late” figures, calculations are
required from the end of the project to the beginning, following the dependencies
of the network diagram – a “backward” pass.
A few important points of critical path method include:
o There
can be multiple critical paths for a project
o A
project manager does not prefer to have multiple critical paths in a project as
it increases risk
o The
critical path can change during the course of the project
o If
the float is negative, the project is behind schedule
o The
critical path has zero float
o In
case if the project has a negative float, the project manager should compress
the schedulelIf the
critical path has a negative float, corrective actions or changes are required
to the project
·
Schedule compression
The unrealistic time frame is one of the most common
problems of any project. If the customer or stakeholders have requested for a
date that cannot be met, or if the project has deviated considerably from the
baseline, the project schedule requires compression. It is the responsibility
of the project managers to push back, present options, and make sure the
project is achievable by properly planning the project and using schedule
network analysis techniques like schedule compression. The schedule compression
technique helps in determining if the desired project completion date can be
met and if not, what can be changed to meet the requested date. This can be
done right at the project planning stage. This technique is also used during
integrated change control to look at the impacts changes to other parts of the
project (i.e. cost, scope, risk, resources, quality, etc) have on the schedule.
The objective is to compress the schedule without changing the scope of the
project.
o FAST-TRACKING
o This
technique involves doing critical path activities in parallel that were
originally planned in a series. Some of the disadvantages of fast-tracking are:
o Results
in rework
o Increases
risk
o Requires
more attention to communication
For example, using the network diagram shown here, which
activity would you a fast track to shorten the project length? Assuming the
dependencies are discretionary, activity H could be fast-tracked by making it
occur at the same time, or in parallel with, activity G. Any other pair of
activities on the critical path could be fast-tracked. Activities C and H could
also be fast-tracked by having part of activity C done concurrently with
activity H. CRASHING In crashing maintaining the project scope is important.
This technique involves making cost and schedule trade-offs to determine how to
compress the schedule the most for the least cost. Crashing always results in
increased cost. It trades time with money.
·
What-if scenario analysis
In creating a finalized, realistic schedule, it is
helpful to ask “What if a particular factor changed on the project? Would that
produce a shorter schedule?” The assumptions for each activity can change and,
therefore, the activity durations can also change. One of the ways to calculate
the effect of these changes is through a Monte Carlo Analysis.
MONTE CARLO ANALYSIS
The outcome of the project is simulated by computer
software in the Monte Carlo analysis. It is based on the three-point estimate
(optimistic, pessimistic, and most likely) for each activity and network
diagram. Following are the benefits of the simulation:
o It
suggests the probability of completing the project on any specific day
o It
suggests the probability of completing the project for any specific amount of
cost
o It
suggests the probability of any activity actually being on the critical path
o It
suggests the overall project risk
o It is
more accurate than other methods as it simulates the actual details of the
project and calculates the probability.
Monte Carlo analysis help deal with “path convergence”,
places in the network diagram where multiple paths converge into one or more
activities, thus adding risk to the project. Monte Carlo analysis is also used
as a risk management tool to quantitatively analyze risks.
·
Resource leveling
A resource-limited schedule is produced using resource
leveling. If resources are limited, leveling lengthens the schedule and
increases the cost and other constraints.
PROJECT SCHEDULE
The schedule can be shown with or without dependencies
(logical relationships) and can be shown in any of the following formats,
depending on the needs of the projects:
o Network
diagrams
o Milestone
chart
o Bar
chart (also called Gantt Chart)
CONTROL SCHEDULE
Schedule control means looking for things that are
causing changes and influencing the sources of the change. If the project can
no longer meet the agreed-upon completion date (the schedule baseline), the
project manager might recommend the termination of the project before any more
company time is wasted. Bar charts are weak planning tools, but they are
effective for progress reporting and control. They are not project
management plans. Bar charts do not help organize the project as
effectively as a WBS and a network diagram do. They are completed after the WBS
and the network diagram in the project management process.
·
Critical chain method
Critical Chain method uses a network diagram and develops
a schedule by assigning each activity to occur as late as possible to still
meet the end date. You add resource dependencies to the schedule, and then
calculate the critical chain. Starting at the end date, you build duration
buffers into the chain at critical milestones. These reserves, spread
throughout the project, will provide cushions for delays in the scheduled
activities. You manage these buffers so that you meet each individual milestone
date and thus the project milestone completion date as well.
7. PERT,
PERT ANALYSIS, CRITICAL PATH METHOD AND SCHEDULE COMPRESSION
PERT
Program
Evaluation and Review Technique
A
manageable task is one in which the expected results can be easily identified;
success, failure, or completion of the task can be easily ascertained; the time
to complete the task can be easily estimated; ant the resource requirements of
the task can be easily determined.
Program
evaluation and review technique (PERT) charts depict task, duration, and
dependency information. Each chart starts with an initiation node from which
the first task, or tasks, originates. If multiple tasks begin at the same time,
they are all started from the node or branch, or fork out from the starting
point. Each task is represented by a line, which states its name or other
identifier, its duration, the number of people assigned to it, and in some
cases the initials of the personnel assigned. The other end of the task line is
terminated by another node, which identifies the start of another task, or the
beginning of any slack time, that is, waiting time between tasks.
Each
task is connected to its successor tasks in this manner forming a network of
nodes and connecting lines. The chart is complete when all final tasks come
together at the completion node. When slack time exists between the end of one
task and the start of another, the usual method is to draw a broken or dotted
line between the end of the first task and the start of the next dependent
task.
A
PERT chart may have multiple parallel or interconnecting networks of tasks. If
the scheduled project has milestones, checkpoints, or review points (all of
which are highly recommended in any project schedule), the PERT chart will note
that all tasks up to that point terminate at the review node. It should be
noted at this point that the project review, approvals, user reviews, and so
forth all take time. This time should never be underestimated when drawing up
the project plan. It is not unusual for a review to take 1 or 2 weeks.
Obtaining management and user approvals may take even longer.
When
drawing up the plan, be sure to include tasks for documentation writing,
documentation editing, project report writing and editing, and report
reproduction. These tasks are usually time-consuming; so, don’t underestimate
how long it will take to complete them.
PERT
charts are usually drawn on ruled paper with the horizontal axis indicating
time period divisions in days, weeks, months, and so on. Although it is
possible to draw a PERT chart for an entire project, the usual practice is to
break the plans into smaller, more meaningful parts. This is very helpful if
the chart has to be redrawn for any reason, such as skipped or incorrectly
estimated tasks.
Many
PERT charts terminate at the major review points, such as at the end of the
analysis. Many organizations include funding reviews in the project life cycle.
Where this is the case, each chart terminates in the funding review node.
Funding
reviews can affect a project in that they may either increase funding, in which
case more people have to make available, or they may decrease funding, in which
case fewer people may be available. Obviously more or less people will affect
the length of time it takes to complete the project.
Critical Path
It is the longest complete path of a project.
Significance of CPM/PERT
There are many variations of CPM/PERT which have been
useful in planning costs, scheduling manpower and machine time. The main
significance of using CPM/PERT is that, they answer the following important
questions of a project,
O How long
will the entire project take to be completed? What are the risks involved?
O Which are
the critical activities or tasks in the project which could delay the entire
project if they were not completed on time?
O Is the
project on schedule, behind schedule or ahead of schedule?
O If the
project has to be finished earlier than planned, what is the best way to do
this at the least cost?
Answer to this question, is prior to the start of project
gives an in-detailed idea of the project and foreseen problems that the project
will or can face in the future.
Before we know about CPM or PERT, there is an import tool
or method that is used to ease the work known as GANTT CHART
CPM
Critical Path Method
Basically, PERT, CPM are the 2 popular project management
techniques, which have been created out of the need of Western industrial and
military establishments to plan, schedule and control complex projects.
Critical Path Method (CPM)
charts are similar to PERT charts and are sometimes known as PERT/CPM. In a CPM
chart, the critical path is indicated. A critical path consists that set of
dependent tasks (each dependent on the preceding one), which together take the
longest time to complete. Although it is not normally done, a CPM chart can
define multiple, equally critical paths. Tasks, which fall on the critical
path, should be noted in some way, so that they may be given special attention.
One way is to draw critical path tasks with a double line instead of a single
line.
Diagram
Tasks, which fall on the critical path,
should receive special attention by both the project manager and the personnel
assigned to them. The critical path for any given method may shift as the
project progresses; this can happen when tasks are completed either behind or
ahead of schedule, causing other tasks which may still be on schedule to fall
on the new critical path.
A Gantt chart is a matrix, which lists on the
vertical axis all the tasks to be performed. Each row contains a single task
identification, which usually consists of a number and name. The horizontal
axis is headed by columns indicating estimated task duration, skill level
needed to perform the task, and the name of the person assigned to the task,
followed by one column for each period in the project’s duration. Each period
may be expressed in hours, days, weeks, months, and other time units. In some cases,
it may be necessary to label the period columns as period 1, period 2, and so
on.
The graphics portion of the Gantt chart
consists of a horizontal bar for each task connecting the period start and
period ending columns. A set of markers is usually used to indicate estimated
and actual start and end. Each bar on a separate line, and the name of each
person assigned to the task is on a separate line. In many cases when this type
of project plan is used, a blank row is left between tasks. When the project is
under way, this row is used to indicate progress, indicated by a second bar,
which starts in the period column when the task is actually started and
continues until the task is actually completed. Comparison between estimated
start and end and actual start and end should indicate project status on a
task-by-task basis.
Variants of this method include a lower
chart, which shows personnel allocations on a person-by-person basis. For this
section the vertical axis contains the number of people assigned to the
project, and the columns indicating task duration are left blank, as is the
column indicating person assigned. The graphics consists of the same bar
notation as in the upper chart indicates that the person is working on a task.
The value of this lower chart is evident when it shows slack time for the
project personnel, that is, times when they are not actually working on any
project.
Framework for PERT and CPM
Essentially, there are six steps which are
common to both the techniques. The procedure is listed below:
1. Define
the Project and all of its significant activities or tasks. The Project (made
up of several tasks) should have only a single start activity and a single
finish activity.
2. Develop
the relationships among the activities. Decide which activities must precede
and which must follow others.
3. Draw
the “Network” connecting all the activities. Each Activity should have unique
event numbers. Dummy arrows are used where required to avoid giving the same
numbering to two activities.
4. Assign
time and/or cost estimates to each activity
5. Compute
the longest time path through the network. This is called the critical path.
6. Use
the Network to help plan, schedule, and monitor and control the project.
The Key Concept used by CPM/PERT is that a
small set of activities, which make up the longest path through the activity
network control the entire project. If these “critical” activities could be
identified and assigned to responsible persons, management resources could be
optimally used by concentrating on the few activities which determine the fate
of the entire project.
Non-critical activities can be replanned,
rescheduled and resources for them can be reallocated flexibly, without
affecting the whole project.
Five useful questions to ask when preparing
an activity network are:
O Is
this a Start Activity?
O Is
this a Finish Activity?
O What
Activity Precedes this?
O What
Activity Follows this?
O What
Activity is Concurrent with this?
Some activities are serially linked. The
second activity can begin only after the first activity is completed. In
certain cases, the activities are concurrent, because they are independent of
each other and can start simultaneously. This is especially the case in
organizations which have supervisory resources so that work can be delegated to
various departments which will be responsible for the activities and their
completion as planned.
When work is delegated like this, the need
for constant feedback and co-ordination becomes an important senior management
pre-occupation
Drawing the CPM/PERT Network
Each activity (or sub-project) in a PERT/CPM
Network is represented by an arrow symbol. Each activity is preceded and
succeeded by an event, represented as a circle and numbered. At Event 3, we
have to evaluate two predecessor activities – Activity 1-3 and Activity 2-3,
both of which are predecessor activities. Activity 1-3 gives us an Earliest
Start of 3 weeks at Event 3. However, Activity 2-3 also has to be completed
before Event 3 can begin. Along this route, the Earliest Start would be 4+0=4.
The rule is to take the longer (bigger) of the two Earliest Starts. So, the
Earliest Start at event 3 is 4.
Similarly, at Event 4, we find we have to
evaluate two predecessor activities – Activity 2-4 and Activity 3-4. Along
Activity 2-4, the Earliest Start at Event 4 would be 10 wks., but along
Activity 3-4, the Earliest Start at Event 4 would be 11 wks. Since 11 wks. is
larger than 10 wks., we select it as the Earliest Start at Event 4.
We have now found the longest path through
the network. It will take 11 weeks along activities 1-2, 2-3 and 3-4. This is
the Critical Path
8. CORE
PROCESS OF PROJECT TIME MANAGEMENT KNOWLEDGE AREA
|
|
PLAN SCHEDULE MANAGEMENT
|
DEFINE ACTIVITIES
|
SEQUENCE ACTIVITIES
|
ESTIMATE ACTIVITY DURATION
|
DEVELOP SCHEDULE
|
CONTROL SCHEDULE
|
|
INPUTS
|
PROJECT
CHARTER
PROJECT
MANAGEMENT PLANEN
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT
MANAGEMENT PLAN
ENTERPRISE
ENVIROMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT
MANAGEMENT PLAN
PROJECT
DOCUMENTS
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT
MANAGEMENT OLAN
PROJECT
DOCUMENTSENT
ERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT
MANAGEMENT PLAN
PROJECT
DOCUMENTS
AGREEMENTS
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT
MANAGEMENT PLAN
PROJECT
DOCUMENTS
WORK
PERFORMANCE DATA
ORGANIAZTIONAL
PROCESS ASSETS
|
|
TOOLS AND TECHNIQUES
|
·
EXPERT
JUDGEMENT
·
DATA
ANALYSIS
·
MEETINGS
|
·
EXPERT
JUDGEMENT
·
DECOMPOSITIONROLLING
WAVE PLANNING
·
MEETINGS
|
·
PRECEDENCE
DIAGRAMING METHOD DEPENDENCY
·
DETERMINATION
AND INTEGRATION
·
LEADS
AND LAGS
·
PROJECT
MANAGEMENT INFORMATION SYSTEM
|
·
EXPERT
JUDGEMENT
·
ANALOGOUS
ESTIMATING
·
PARAMETRIC
ESTIMATING
·
THREE-POINT
ESTIMATING
·
BOTTOM-UP
ESTIMATINGDATA ANALYSIS
·
DECISION
MAKING
·
MEETINGS
|
·
SCHEDULE
NETWORK ANALYSIS
·
CRITICAL
PATH METHOD
·
RESOURCE
OPTIMIZATION
·
DATA
ANALYSIS
·
LEADS
AND LAGS
·
SCHEDULE
COMPRESSION
·
PROJECT
MANAGEMENT INFORMATION SYSTEM
·
AGILE
RELEASE PLANNING
|
·
DATA
ANALYSIS
·
CRITICAL
PATH METHOD
·
PROJECT
MANAGEMENT INFORMATION SYSTEM
·
RESOURCE
OPTIMIZATION
·
LEADS
AND LAGS
·
SCHEDULE
COMPRESSION
|
|
OUTPUTS
|
·
SCHEDULE
MANAGEMENT PLAN
|
·
ACTIVITY
LIST
·
ACTIVITY
ATTRIBUTESMILESTONE LIST
·
CHANGE
REQUESTSPROJECT MANAGEMENT PLAN UPDATES
|
·
PROJECT
SCHEDULE NETWORK DIAGRAMS
·
PROJECT
DOCUMENTS UPDATES
|
·
DURATION
ESTIMATES
·
BASIS
OF ESTIMATES
·
PROJECT
DOCUMENT UPDATES
|
·
SCHEDULE
BASELINE
·
PROJECT
SCHEDULE
·
SCHEDULE
DATA
·
PROJECT
CALENDERS
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATES
·
PROECT
DOCUMENTS UPDATES
|
·
WORK
PERFORMANCE INFORMATION
·
SCHEDULE
FORECASTS
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATESPROJECT DOCUMENT UPDATES
|
9. Project
Scope Management
26. What is Project Scope Management?
Project
Scope Management refers to the set of processes that ensure a project’s scope
is accurately defined and mapped. Scope Management techniques enable project
managers and supervisors to allocate the right amount of work necessary to
successfully complete a project—concerned primarily with controlling what is
and what is not part of the project’s scope.
The
project scope management is about project deliverables or features of project.
The project deliverables are derived from project requirements. The project
scope is termed as, “the work that needs to be accomplished to deliver a
product, service or result with the specified features and functions.”
Project
scope management consist basically three processes. They are,
1.
Planning: It is initial stage which is about the defining
the task or work is needed to be done.
2.
Controlling: It is about governing, monitoring and doing
required changes the process parameters for process control.
3.
Closing: This final phase of process activity includes
the audit of deliverables and assessment of outcomes against the original plan.
The Scope Statement
The
scope of a project is the clear identification of the work that is required to
complete or deliver a project successfully. One of the project manager’s
responsibilities is to ensure that only the needed work (the scope) will be
performed and that each of the deliverables can be completed in the allotted
time and within budget.
The
documentation of the scope of the project will explain the boundaries of the
project, establish the responsibilities of each member of the team, and set up
procedures for how a work that is completed will be verified and approved. This
documentation may be referred to as the scope statement, the statement of work,
or the terms of reference
Steps Involved in Project Scope Management
As a
project manager, you’ll need to define project scope no matter what methodology
you choose. Here’s one example of a systematic process to capture, define, and
monitor scope.
Define Project Needs
Defining
the needs of the project is the first step to establish a project timeline,
allocate project resources, and set project goals. Only with these defined
steps, you will be able to understand the work that needs to be done, meaning,
the scope of the project needs to be defined. Once that is done, team members
can be allocated tasks and provided direction to deliver a project in the given
time and budget.
Understand the Project Objectives
To
define the project scope, it is important first to establish the objectives of
the project, which may include a new product, creating a new service within the
organization, or developing a new piece of software. There are several
objectives that could be central to a project; the project manager ensures the
team delivers results according to the specified features or functions.
Define the Project Scope
The
resources and work that goes into the creation of a product or service are
essentially what defines the scope of the project. The scope generally outlines
the goals that will be met to achieve a satisfactory result.
Steps for Defining the Scope of a Project
·
Project objectives
·
Goals
·
Sub-phases
·
Tasks
·
Resources
·
Budget
·
Schedule
To
define the scope of the project, identify the above parameters.
Once
these parameters are established, the limitations of the project need to be
clarified, and the aspects that are not to be included in the project
identified. By doing this, the project scope will make clear to stakeholders,
senior management, and team members what will and will not be included in the
final product or service.
27. Product Scope vs. Project Scope
PRODUCT: A product is an artifact or a quantifiable
that can either be an end item in itself or a component item. These items are
also called materials or goods. In other words, a product is defined as a
substance or article produced during a natural, chemical, or manufacturing
process. You can characterize a product in many ways, such as by its physical
properties and chemical properties.
PROJECT: A project is a temporary endeavor undertaken
to create a unique product, service, or result. The first half of the
definition says the nature of the project is temporary. This means that once
you deliver the output, your project will cease to exist because you’ve
achieved the objective. The second half says that the project produces a
deliverable. Projects are undertaken to produce a particular output, which can
be tangible or intangible.
SCOPE: The scope is the sum of the products,
services, and results to be provided as a project. A scope can be defined as
the range, detail, or a boundary of a term it is attached to. The word scope is
not always standalone; it is used as a suffix or a prefix of another term. If
used with the term product, it means the details of the product, or when used
with project, then it means the details of the project.
Product Scope determination
Most
of the time, the product scope is defined by the people who have higher levels
of business expertise. Usually, a business analyst defines the product scope,
and although the project manager can be consulted, their role is limited.
The
business analyst will meet with every stakeholder to understand their
expectations and requirements regarding the final product. Once these are
finalized, the analyst will get them signed by stakeholders and then process
them for approval.
Make
sure that none of the requirements are left out during this process, as adding
more towards the end of the project can be costly. A slight change in the
product scope can cost you a lot more money than an initial change in the
project scope statement. The product scope should be well defined because the
project scope is defined according to the product scope.
The
product scope is what binds you and your organization to the user who will use
the product. You should make every effort to get these specifications exact and
complete.
However,
if you have a contract to deliver the product to the client, you will find the
product scope attached to the contract document.
Project Scope determination
The
project manager defines the project scope, which depends on many factors.
For
example, if you receive a firm fixed price contract, the client will give you a
well-defined product description, which helps you in developing the project
scope statement. In this case, you won’t have to worry too much about the
project scope. However, this isn’t always the case. Let’s consider another case. Your
organization initiates a project, and you are the project manager.
In
this case, you may have to build the project scope statement from scratch. You
contact the concerned stakeholders to collect the requirements and compile them,
and then you get them approved by management.
Likewise,
there might be several factors that determine the project scope, such as the
client asking you to do everything on their behalf.
A
well-written scope statement makes the life of a project manager much more
comfortable, and the project will be completed with fewer obstacles. Project
scope is an agreement between you and the client or your organization.
Project
scope binds you and your project team to your organization; therefore, it
should be very lucid and detailed. This document must complete at an early
stage of the project. An effective scope statement is necessary to guide a
project to successful completion.
Determining
the project scope is the first step in establishing the project’s schedule, budget,
and resource allocation. Project management plans are made after the project
scope is defined.
Project Scope and Product Scope
You
get a project to construct a school building. The client gives you their
requirements, such as the size of the building, number of rooms, details of the
playground, number of toilets, and paint color.
You start working on the project. You estimate the budget, develop the
plan, and create a schedule. After developing and approving the plan, you
gather the team and move on to the execution phase. You bring workers to the
site and start construction. You complete the school building and then verify
with the client whether it is as per their requirements. Once the client is
satisfied, you hand the school building over to them, get the final payment,
and the project is closed.
There
are two parts to the above example.
In
the first part, the client asks you to make a school building and gives you
their requirements for it. The school building is the “product,” and the
requirements are the “scope.” Therefore, the client gave you is the “product
scope.”
In
the second part, you construct the school building within the specified time
and budget, meeting all the client’s requirements. Lastly, you deliver the
product. In this part, the work you have done to construct the school building
is the “project scope.”
The Difference between Project Scope and Product Scope
These
are a few differences between project scope and product scope:
Project
scope is the work that delivers the product while the product scope is the sum
of all features, functions, and characteristics of the product.
Product
scope is oriented towards the “what” (functional requirements), while project
scope is oriented towards the “how” (work related).
Product
scope is defined by the business analyst, though the project manager may have a
role. The project scope is totally defined by the project manager.
An
example of project scope is constructing a bridge, while its product scope
might be its technical specifications such as length, width, and the amount of
load it has to withstand.
28. Core Processes of the Project Scope
Management Knowledge Area
|
|
PLAN SCOPE MANAGEMENT
|
COLLECT REQUIREMENTS
|
DEFINE SCOPE
|
CREATE WBS
|
VALIDATE SCOPE
|
CONTROL SCOPE
|
|
INPUT
|
·
PROJECT
CHARTERPROJECT MANAGEMENT PLAN
·
ENTERPRISE
ENVIRONMENTAL FACTORS
·
ORGANIZATIONAL
PROCESS ASSETS
|
·
PROJECT
CHARTER
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
BUSINESS
DOCUMENTS
·
AGREEMENTS
·
ENTERPRISE
ENVIRONMENTAL FACTORS
·
ORGANIZATIONAL
PROCESS ASSETS
|
·
PROJECT
CHARTER
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
ENTERPRISE
ENVIRONMETAL FACTORSORGANIZATIONAL PROCESS ASSETS
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
ENTERPRISE
ENVIRONMET FACTORS
·
ORGANIZATION
PROCESS ASSETS
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
VERIFIED
DELIVERIBLESWORK PERFORMANCE DATA
|
·
PROJECT
MANAGEMENT PLAN
·
PROJECT
DOCUMENTS
·
WORK
PERFORMANCE DATA
·
ORGANIZATIONAL
PROCESS ASSETS
|
|
TOOLS AND TECHNIQUES
|
·
EXPERT
JUDGEMENT
·
DATA
ANALYSIS
·
MEETINGS
|
·
EXPERT
JUDGEMENT
·
DATA
GATHERING
·
DATA
ANALYSIS
·
DECISION
MAKING
·
DATA
REPRESENTATION
·
INTERPERSONAL
AND TEAM SKILLS
·
CONTEXT
DIAGRAMPROTOTYPES
|
·
EXPERT
JUDGEMENT
·
DATA
ANALYSIS
·
DECISION
MAKING
·
INTERPERSONAL
AND TEAM SKILLS
·
PROJECT
ANALYSIS
|
·
EXPERT
JUDGEMENT
·
DECOMPOSITION
|
·
INSPECTION
·
DECISION
MAKING
|
·
DATA
ANALYSIS
|
|
OUTPUT
|
·
SCOPE
MANAGEMENT PLAN
·
REQUIREMENTS
MANAGEMENT PLAN
|
·
REQUIREMENTS
DOCUMENTATIONS
·
REQUIREMENT
TRACEBILITY MATRIX
|
·
PROJECT
SCOPE MANAGEMENT
·
PROJECT
DOCUMENT UPDATES
|
·
SCOPE
BASELINE
·
PROJECT
DOCUMENT UPDATES
|
·
ACCEPTED
DELIVERIBLES
·
WORK
PERFORMANCE INFORMATION
·
CHANGE
REQUESTS
·
PROJECT
DOCUMENT UPDATES
|
·
WORK
PERFORMANCE INFORMATION
·
CHANGE
REQUESTS
·
PROJECT
MANAGEMENT PLAN UPDATESP
·
ROJECT
DOCUMENT UPDATES
|
i- Define Scope Management
When we have project, we have to explore and
envisage possibilities in every manner to success the project. So, securing the
future and managing the scope of the project is called project scope management.
Project scope concludes prime objectives, surrounded objectives, project
environment, project essentials, required parameters etc. which is based on
project history, project research, project acceptability, project cost,
maintenance cost, project warranty and expiry etc. All this shape and secure
the future of the project. It guarantees project life and its flexibility&
extendibility. So, project scope management is nothing but project layout or
blue print before project execution.
PRODUCT
SCOPE VS. PROJECT SCOPE:
The term Product scope and project scope is
interconnected and inter depended. Already as we have described product scope
refers to product history, research, acceptability, exploration, improvements
and modification. This is the basic process requires as foundation for shaping
product scope. While exploring project scope we can define project or more than
one product, we can design different variants of product with single project.
Also, we can extend project validity further for another product even after
current product expiry. So, this way both differ in their scope.
CORE
PROCESS OF THE PROJECT SCOPE CORE MANAGEMENT KNOWLEDGE AREA:
Core management requires professional
attitude, working environments and sound administration towards project scope
objectives. By bringing it into practice we can lead the path for core
processes of project scope core management. As we described in scope of project
each core process must be addressed separately. The basic core processes are
1.
Project history
Whether
project concept is new or old. If the concept is new the best way to achieve it
cost effectively out of number of ways. And if the concept is old then the best
way still existing and in practice.
2.
Project research
It requires
research work to make it successful. Research work required for project scope,
premises, facility, finances, risks, warranty and insurance etc.
3.
Project run
There are
three basic features for successfully project run are product: 1. Acceptability
2. Adaptability 3. Accessibility. By
governing these we can assure successful project run.
10. Project
Human Resource Management
1.
What is Human Resource Management
Each
organization works towards the realization of one vision. The same is achieved
by formulation of certain strategies and execution of the same, which is done
by the HR department. At the base of this strategy formulation lie various
processes and the effectiveness of the former lies in the meticulous design of
these processes. But what exactly are and entails these processes? Let’s read
further and explore.
The following
are the various HR processes:
Ø Human
resource planning
·
Recruitment: It aims at attracting applicants that match
a certain Job criterion.
·
Selection: The next level of filtration. Aims at short
listing candidates who are the nearest match in terms qualifications, expertise
and potential for a certain job.
·
Hiring: Deciding upon the final candidate who gets the
job.
·
Training: Those processes that work on an employee
onboard for his skills and abilities up-gradation.
·
Induction: it is the process of employee selection on the
basis of their skill, knowledge, education, extra-curricular activities towards
their application for job.
·
Orientation: it is the selected candidate's scope towards
the job profile requirements, the process of profile assorting and selecting
the relevant one.
·
Evaluation: it is the process of assorting short-listed
candidates on the basis of required criteria.
·
Promotion and Layoff: it is the process decides
employee’s performance and rewards for the same. It could be monthly, yearly or
project base. While layoff is as per company’s policy. They are Casual live,
preparative live, paid live or live without pay etc.
·
Employee remuneration and Benefits Administration: The
process involves deciding upon salaries and wages, Incentives, Fringe Benefits
and Perquisites etc. Money is the prime motivator in any job and therefore the
importance of this process. Performing employees seek raises, better salaries
and bonuses.
·
Performance Management: It is meant to help the organization
train, motivate and reward workers. It is also meant to ensure that the
organizational goals are met with efficiency. The process not only includes the
employees but can also be for a department, product, service or customer
process; all towards enhancing or adding value to them.
Nowadays
there is an automated performance management system (PMS) that carries all the
information to help managers evaluate the performance of the employees and
assess them accordingly on their training and development needs.
·
Employee Relations: Employee retention is a nuisance with
organizations especially in industries that are hugely competitive in nature.
Though there are myriad factors that motivate an individual to stick to or
leave an organization, but certainly few are under our control.
Employee
relations include Labor Law and Relations, Working Environment, Employee health
and safety, Employee- Employee conflict management, Employee- Employee Conflict
Management, Quality of Work Life, Workers Compensation, Employee Wellness and
assistance programs, Counseling for occupational stress. All these are critical
to employee retention apart from the money which is only a hygiene factor.
All processes
are integral to the survival and success of HR strategies and no single process
can work in isolation; there has to be a high level of conformity and
cohesiveness between the same.
2.
Roles and Responsibilities of the Project Sponsor
3.
Functional Manager vs. Project Manager
4.
Core processes of Human Resource Management Knowledge
Area
Human
Resource Management Body of Knowledge – CORE Knowledge Areas
·
Human Resource Management
Human
Resource Management Body of Knowledge – Workforce Planning and Employment
·
Staffing Organizations
Human
Resource Management Body of Knowledge – Human Resource Development
·
Training Methods
Human
Resource Management Body of Knowledge – Compensation and Benefits
·
Compensation Planning and Management
Human
Resource Management Body of Knowledge – Employee and Labor Relations
·
Labor/Management Relations
Human
Resource Management Body of Knowledge – Occupational Health, Safety, and
Security
·
Occupational Safety and Health
The
key processes are,
Human
Resource Management is the process of providing human resources to an organization
to meet both permanent and short-term work requirements. The purpose of project
Human Resource Management is to ensure that the project has sufficient human
resources, with the correct skill sets and experience, for the project to be
successfully completed. A project Human Resource Management Plan document
describes the end-to-end processes that a project will use to meet its human
resource requirements. The key objective of this plan is to describe:
·
The resources are required;
·
The core skills and experience they need to have;
·
The resources will be acquired;
·
The long resources will be needed;
·
The resources will be needed;
·
The resources will be developed;
·
The day-to-day management will be formed; and
·
The resources will be transitioned into and out of the
project following the completion of their project assignments.
Projects
require specialized resources with the skills, competencies and experience to
fill a variety of critical roles. This applies to all project resources
including the Project Manager. Equally important to determining which skills
and how much experience is needed for project roles is the requirement to fill
those roles with resources that actually possess those skills and competencies.
Examples of specialized and dedicated resources on large projects are a Risk
Manager or Communications Manager, as they must have a background and
experience in their expertise. In some cases, where appropriate,
project-specific training and development will take place to ensure that the
project is not impacted by performance gaps.
Human
Resource Management is closely linked to the cost and time management planning
processes and consists of the following four activities:
·
To develop HR Plan;
·
To acquire project team;
·
To develop project team; and
·
To manage project team.
5.
Conflict Management
Basic Definitions:
Before
we explore the steps in conflict resolution, let's take a moment to define a
critical term. Conflict is a struggle or disagreement between at least two
people over a difference in opinions or goals. When applied to a business
environment, a conflict can be a fight between co-workers over resources used,
project approaches, schedules, etc. Conflicts are disruptive for a workplace,
so quickly resolving them is key to a positive, healthy environment. Conflict
resolution is the process of finding a solution to that conflict.
The Steps in Conflict Resolution
So,
you may be asking yourself, how does the HR department help with conflicts? How
does it take a hostile situation and find a beneficial solution that allows
employees to continue working together? Let's say you're the head of HR and two
employees have asked for your assistance in resolving a conflict. The following
steps outline the process of many HR departments in conflict resolution.
1.
Create a Healthy Environment Ultimately, avoiding a conflict altogether is the
best scenario. While that is not always possible, creating an environment that
can solve a conflict once it occurs is key. For example, let it be known that
everyone will be treated with respect. Also, encourage those involved to be
open and honest with their opinions and choices by not intimidating them to
feel or act a certain way.
2.
Identify the Problem Obviously a conflict means that there is a problem, so
being able to correctly identify it is important. This means digging through
all the layers of conflict and points of view to figure out exactly why
everyone is upset. It is important to point out that in order for conflict
resolution to work, everyone involved needs to agree on what the problem is.
3.
Listen effectively once the problem is identified, you need to listen to what
both sides have to say about the problem. What has everyone so upset? What are
their opinions? Listening will enable you to learn why the conflicted situation
is a problem, how it started, and how each side would like it resolved.
4.
Guide Self-Resolution In a perfect case, once the problem has been identified,
everyone would be able to work it out together without further intervention
from the HR department. While not always possible, this type of solution is a
great way for the employees to build teamwork, mutual respect, and a foundation
for repairing their relationship.
5.
Consider Solutions Ultimately a solution needs to be found. If the two sides
cannot resolve the conflict themselves, you, as head of HR, need to use your problem-solving
skills to come up with a solution. Often this involves input from both sides
and a little creativity.
6.
Decide on a Solution Once both sides have been heard, and brainstorming has
concluded, it is time to make a final decision. Look at the solutions you have
considered and decide on the one that will best resolve the problem. Then
notify each side about the chosen solution.
6.
Motivation Theory
American
Psychologist Abraham H. Maslow developed Needs Hierarchy Theory of motivation.
Human being is a wanting animal. He has various needs. These needs have
hierarchy of importance. The need which is satisfied loses its importance;
hence it ceases to be a motivator. Maslow has categorized human needs into
five.
Categories
of Human Needs:
1.
Physiological Needs:
These
are the basic physiological needs at the lowest level of hierarchy. These are
also known as biological needs which are essential for survival and preserving
human life. These are the basic needs. These needs include all the necessaries
of life such as food, clothing, shelter, water, air, sex, sleep etc. Some of
these needs are recurrent e.g. food, drink, clothing, sleep. We need them again
and again. These needs are the foremost and powerful motivator. These are
everyone’s needs.
2.
Safety Needs:
Safety
and security needs are second in priority. Any person is in need of economic
security and wants physical protection. These needs include a secured income, job
security, provisions for old age. He wants to be protected from danger to his
life and property, any kind of threat and deprivation. Management can fulfill
these needs through granting pension, insurance plan and assuring the employees
their job security by removing fear of dismissal.
3.
Social Needs:
Man
is a social animal and is always in need of group or association. He wants to
be loved by others and wants affection from others. Social needs refer to the
need for love and affection, acceptance by others, for belonging and
recognition. These needs are infinite and are not physical but of the mind.
They are secondary in nature. These needs can be fulfilled through effective
communication, supervision and work groups etc. These needs serve as the strong
motivators.
4.
Esteem Needs:
Esteem
needs are egoistic needs. Esteem needs can be classified into:
(a) Self-esteem
which includes self-respect and confidence, competence, special achievement if
any, freedom and potentialities and knowledge.
(b)
Other’s esteem which includes recognition, reputation, status, power etc. These
needs are also infinite and serve as strong motivators.
5. Self-Realization
Needs:
Self-realization
or actualization needs represented by self-fulfillment, recognizing one’s
potentialities for development, creativity and self-expression is a desire to
achieve what one is capable of or what one wants to be. It is realizing one’s
mission of life. The opportunities available for self-actualization are
limited.
Out
of these five categories of needs of Maslow, the first two i.e. physiological
and safety needs are known as lower level needs and are finite and cannot
dominate other needs of higher order. The next three needs i.e. social; esteem
and self-actualization needs are higher level needs and are infinite.
After
satisfying first category of needs, the second category needs start dominating
and so on. This is an endless process. This sequence of needs is not always
rigidly followed. The need pattern of Maslow operates most of the time.
11.
Project Integration Management
1.
What is Project Integration Management
Project
integration management is the coordination of all elements of a project. This
includes coordinating tasks, resources, stakeholders, and any other project
elements, in addition to managing conflicts between different aspects of a
project, making trade-offs between competing requests and evaluating resources.
One example would be if a project is not on track, you may need to decide
between going over budget or finishing the project late in order to complete
it. Assessing the situation and making the decision is a key part of project
integration management. The Integrated project management helps ensure projects
are not managed in isolation. It takes into account not only how aspects of
your project relate to each other but also how other parts of the organization
relate to your project.
2.
Role of Project Team
Projects
are complex, with a lot of different parts that need to be managed. For
example, a project manager needs to oversee all of the following:
·
Schedule
·
Cost
·
Scope
·
Quality
·
Resources
·
Risks
·
Changes
·
Stakeholders
Keeping
track of everything and knowing how one impacts the others can be very
challenging. However, if it is not done properly, it can lead to project
failure. For example, if you don’t understand how a scope change will impact
your schedule, costs, and resource requirements, then how do you manage the
change? It increases the chances that you won’t have people you need, go over
budget, deliver your project late, or all three. To make things even more
complex, decisions about your project can impact other projects and other areas
of the business. For example, what if you suddenly need a software developer to
work on your project another month? Without integration management throughout
the organization, it can be hard to see how this impacts the business. Is that
resource supposed to be on another project at the same time? Is he or she
supposed to be covering someone’s vacation during that period? Without
integration management, it’s difficult to identify conflicts in advance and
know how to resolve them.
3.
Role of Project Sponsor
A
sponsor is the one who provides financial resources for the project. For the
purpose of PMP exam, a sponsor could also be a customer, senior management,
others. Management serves as a protector of the project.
Ø Role of A
Sponsor: The
role of a sponsor prior to (or during) project initiation:
Ø Advocates for
or champions the project, especially while the project concept is being put
together
Ø Serves as a
voice for the project or spokesperson to those who do not know about the
project, including upper management
Ø Gathers the
appropriate support for the project
Ø Ensures
buy-in throughout the organization
Ø Provides
funding
Ø Provides the
project statement of work
Ø Provides
information regarding initial scope of the project
Ø May dictate
milestones, key events, or the project end date
Ø Determines
the priorities between the constraints
Ø Provides
information that helps develop the project charter
Ø Gives the
project manager authority as outlined in the project charter
Ø Helps
organize work into appropriate projects
The role of a sponsor during project planning:
·
Provides the project team with time to plan
·
May review the WBS
·
Supplies list of risks
·
Determines the reports needed by management to oversee
the project
·
Provides expert judgment
·
Helps evaluate trade-offs during crashing, fast tracking,
and re-estimating
·
Approve the final project management plan
·
The role of a sponsor during project execution,
monitoring and controlling:
·
Protects the project from outside influences and changes
·
Enforces quality policies
·
Provides expert judgment
·
Helps evaluate trade-offs during crashing, fast tracking,
and re-estimating
·
Resolves conflicts that extend beyond the project
managers control
·
Approves or rejects changes or authorizes someone representing
him or her to do so
·
May direct that a quality assurance review is performed
·
Clarifies scope questions
·
Works with the project manager to monitor progress
The role of a sponsor during project closing:
§ Provides
formal acceptance of the deliverables
§ Supports the
collection of historical records from past projects
4.
Project Selection Methods
Project
selection methods can include the following numeric methods:
v Benefit
Measurement Model (or Comparative Approach): The payback period and the
cost-benefit analysis (rate of return).
v The
Mathematical Model (or Constrained Optimization): Linear, multi-objective
approaches to the project.
Also,
there are certain criteria on the basis of project is selected. They are,
The
Project Steering committee sits at the highest level to provide guidance on
objectives, reconcile budgetary allocations, prioritize work and resolve
issues. As such, internal and external stakeholders forming this
committee/board play a pivotal role in influencing the project planning and execution
strategy. After all, their expertise in a particular knowledge area lets them
field questions project managers pose concerning the project roadmap. While the
actual implementation is carried out by a project manager and project teams,
PMOs contract the project manager to feed project status reports to the
steering committee based on the action items documented on previous minutes.
The project selection criteria worth remembering here are:
1. The 80/20 rule:
The
Pareto law lets you choose 20% of projects that can effectively respond to 80%
of threats or opportunities. In other words, it lets you take up opportunities
immediately, positioning you to dominate the market by being the first to
capture consumer needs. Conversely, it lets you identify and contain risks
immediately by deploying the appropriate controls. This way, neither will the
same risks spill over to projects running in parallel nor make a repeat
entrance in future projects. By standardizing your risk register, you’re saved
the task of assessing the impacts if you already know what’s coming and what
measures have proven to work in the past.
2. Strategic Fit:
Given
the number of stakeholders verbally expressing their projections for achieving
a strategic fit between potential opportunities and enterprise-wide objectives,
a thorough understanding of the organization’s mission statement and business
goals lets you deploy your core resources and capabilities in the right areas.
While all opportunities look good on paper, not all can be implemented. Your
strategic plan should ideally compare the opportunity costs against true
feasibility in taking in project commitments, letting you instantly deselect
projects that dilute the organizational focus.
3. Question Project Outcomes:
A
quick hack to the selection of projects from an expansive pool of opportunities
is to ask the following outcome-centric questions:
1.
What outcomes intrinsically plug in your objectives?
2.
Why is it right for your enterprise?
3.
How will it add value?
These
questions let you make decision trade-offs against realistic expectations.
Unclear project responsibilities add to the time, scoping and budgeting
constraints, making it difficult for your staff to guarantee project delivery
while racing against unrealistic time frames. Moreover, it lets you restore the
balance between competing interests and funnel the right knowledge upgrades and
project expertise in line with strategic direction.
4. Assess Core Competencies:
Your
competencies set you apart, especially in times of market uncertainties.
Mapping your competencies not only lets you identify desirable traits but also
lets you acquire a sufficient quantity of the right ones ahead of the curve.
When you base your projects on core competencies, you can select projects that
utilize your strengths and are propelled towards value proposition.
Consequently, your staff can be oriented around the right competencies and
estimate their own effort investments against the practical application of
these competencies.
5. Resource Capacity Building:
Building
a capacity inventory lays the groundwork for establishing a resource
sufficiency from the very beginning. It prevents you from overcommitting to
projects by giving your insight into utilization rates, where and how effort
investments took place and how teams fared in comparison to previous project
delivery.
Without
the right skill-matches in place already, you risk overloading existing
resources with tasks far beyond their current capabilities. Without the
requisite training schemes and non-BAU support, their lack of knowledge leads
to project briefs being misinterpreted, hindering the learning curve When you
overlook the quantity of qualified staff on the bench, you end up exceeding
your resourcing spend by outsourcing project components that could have easily
been worked on by in-house specialists. A deviation in budgetary disbursements
for resource and equipment allocations arises, causing you to pass up or
entirely miss the right opportunities.
5.
Core Processes of the Project Integration Management
Knowledge Area
|
|
DEVELOP PROJECT CHARTER
|
DEVELOP PROJECT MANAGEMENT PLAN
|
DIRECT AND MANAGE PROJECT WORK
|
MANAGE PROJECT KNOWLEDGE
|
MONITOR AND CONTROL PROJECT WORK
|
PERFORM INTEGRATED CHANGE CONTROL
|
CLOSE PROJECT OR PHASE
|
|
INPUT
|
BUSINESS DOCUMENTS
AGREEMENTS
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT CHARTER
OUTPUT FROM OTHER
PROCESSES
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT MANAGEMENT
PLAN
PROJECT DOCUMENTS
APPROVED CHANGE
REQUESTS
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT MANAGEMENT
PLAN
PROJECT DOCUMENTS
DELIVERABLES
ENTERPRISE
ENVIRONMENTAL FACTOS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT MANAGEMENT
PLAN
PROJECT DOCUMENTS
WORK PERFORMANCE
INFORMATION
AGREEMENTS
ENTERPRISE
ENVIRONMENTAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT MANAGEMENT
PLAN
PROJECT DOCUMENTS
WORK PERFORMANCE
REPORTS
CHANGE REQUESTS
ENTERPRISE
ENVIRONMETAL FACTORS
ORGANIZATIONAL
PROCESS ASSETS
|
PROJECT CHARTER
PROJECT MANAGEMENT
PLAN
PROJECT DOCUMENTS
ACCEPTED
DELIVERABLES
BUSINESS DOCUMENTS
AGREEMENTS
PROCUREMENT
DOCUMENTATIONS
ORGANIZATIONAL
PROCESS ASSETS
|
|
TOOLS AND TECHNIQUES
|
EXPERT JUDGEMENT
DATA GATHERING
INTERPERSONAL AND
TEAM SKILLS
MEETINGS
|
EXPERT JUDGEMENT
DATA GATHERING
INTERPERSONAL AND
TEAM SKILLS
MEETINGS
|
EXPERT JUDGEMENT
PROJECT MANAGEMENT
INFORMATION SYSTEM
MEETINGS
|
EXPERT JUDGEMENT
KNOWLEDGE MANAGEMENT
INFORMATION
MANAGEMENT
INTERPERSONAL AND
TEAM SKILLS
|
EXPERT JUDGEMENT
DATA ANALYSIS
DECISION MAKING
MEETINGS
|
EXPERT JUDGEMENT
CHANGE CONTROL TOOLS
DATA ANALYSIS
DECISION MAKING
MEETINGS
|
EXPERT JUDGEMENT
DATA ANALYSIS
MEETINGS
|
|
OUTPUT
|
PROJECT CHARTER
ASSUMPTION LOG
|
PROJECT MANAGEMENT
PLAN
|
DELIVERABLES
WORK PERFORMANCE
DATA
ISSUE LOG
CHANGE REQUESTS
PROJECT MANAGEMENT
PLAN UPDATES
PROJECT DOCUMENT
UPDATES
ORGANIZATIONAL
PROCESS ASSETS UPDATES
|
LESSONS LEARNED
REGISTER
PROJECT MANAGEMENT
PLAN UPDATES
ORGANIZATIONAL
PROCESS ASSETS UPDATES
|
WORK PERFORMANCE
REPORTS
CHANGE REQUESTS
PROJECT MANAGEMENT
PLAN UPDATES
PROJECT DOCUMENTS
UPDATES
|
APPROVED CHANGE
REQUESTS
PROJECT MANAGEMENT
PLAN UPDATES
PROJECT DOCUMENT
UPDATES
|
PROJECT DOCUMENTS
UPDATES
FINAL PRODUCT,
SERVICE OR RESULT TRANSITION
FINAL REPORT
ORGANIZATION PROCESS
ASSETS UPDATES
|
PMI® Professional and Social Responsibility
Objectives
·
After completing the Professional and Social
Responsibility lesson, you will be able to:
·
Identify the professional and social obligations of
Project Managers
·
Explain how to ensure the individual integrity
·
Identify ways to contribute to project management
knowledge base
·
Explain how to enhance professional competence
·
List the ways to promote stakeholder collaboration
·
In the next section, we will discuss the Code of Ethics.
Ø Code of
Ethics
·
The PMI® has established a set of guidelines for Code of
Ethics and Professional Conduct for certified PMP professionals to follow.
·
It describes the expectations that the project managers
should have of themselves and their fellow practitioners in the global project
management community.
Ø Project
managers hold a great deal of responsibility for:
·
The projects they undertake
·
The solutions provided
·
The management of costs
·
The impact on the performing organization
·
Any impacted environments or groups
·
Dollars spent
·
Vendors/contractors hired
·
The Values that Support the Code of Ethics
Ø PMI has
identified four core values across the global project management community that
are most important to project managers. These are:
·
Responsibility
·
Respect
·
Fairness
·
Honesty
Each section
of the Code of Ethics and Professional Conduct includes both Aspirational
Standards and Mandatory Standards.
The
aspirational standards describe the conduct that the Project Managers strive to
uphold as practitioners. Although adherence to the aspirational standards is
not easily measured, it is expected that Project Management Professionals
adhere to them. It is not optional.
The mandatory
standards establish firm requirements, and in some cases, limit or prohibit
practitioner behavior. Practitioners who do not conduct themselves by these
standards will be subject to disciplinary procedures before PMI’s Ethics Review
Committee.
In the next
few sections, we will discuss each of these core values in detail.
Responsibility
Practitioners
of Project Management are held to the highest standards and acknowledge their
responsibility to take ownership of the decisions that they make or fail to
make, the actions that they take or fail to take, and the resulting
consequences.
Responsibility
includes Aspirational Standards and Mandatory Standards. They are explained in
detail below.
Responsibility:
Aspirational Standards
Aspirational
Standards include:
·
Making decisions and taking actions based on the best
interests of the: Society, Public Safety, and Environment
·
Accepting only those assignments that are consistent with
their background, experience, skills, and qualifications
·
Fulfilling the commitments undertaken
·
Owning and correcting errors or omissions promptly
·
Errors are communicated immediately to the appropriate
body
·
Accountability is accepted along with any resulting
consequences
·
Proprietary and confidential information is protected
·
Upholding ethical code and holding each other accountable
to it
Responsibility: Mandatory Standards
Mandatory Standards include:
·
Inform and uphold policies, rules and regulations and
laws that govern their work, professional, and volunteer activities.
·
Report unethical or illegal conduct to appropriate
management and, if necessary, to those affected by the conduct.
Responsibility: Ethics Complaints
·
As a part of the responsibility, PM includes reporting
violations of the PMI code of ethics and professional conduct by other project
managers.
·
Ethics complaints must adhere to the following PMI
standards:
·
Bring violations of this Code to the attention of the
appropriate body for resolution
·
File ethics complaints when they are substantiated by
facts
·
Pursue disciplinary action against an individual who
retaliates against a person raising ethical concerns
A. How to Ensure Individual Integrity
Upholding
Individual Integrity
The PMI Code
of Ethics and Professional Conduct addresses the following four elements:
responsibility, respect, fairness, and honesty.
Responsibility
Responsibility
is a major part of upholding integrity. It involves taking ownership for our
actions, being proactive in doing the right thing, and doing what is necessary
to resolve a situation that results from an initial lack of responsibility.
there are a variety of elements that touch on
the concept of responsibility, such as:
·
Ensuring a high level of integrity
·
Accepting only those assignments we are qualified for
·
Following rules, regulations, laws, and policies
·
Respecting confidential information
How
to Contribute to Project Management Knowledge Base
·
Ethnocentrism
Ethnocentricism can be define as one is being centered in
one’s own culture
·
Code of Ethics
·
Professional Responsibility
1. Balance stakeholder's interest
Let
the customer requirements take precedence
If
there is any conflict with those of customer, the customer’s needs normally
take precedence. Because the end user of the product or outputs of the project
is the customer. Therefore, if stakeholder requirements are conflicting with
the customer requirements, usually the customer’s requirement will beat the
other one.
2. Ask for Management Support
If a
conflict cannot be resolved, ask for management support. In some cases,
requirements of powerful stakeholders might compete with each other. For
instance, for a marketing feature development project in an IT company, Chief
Marketing Officer can ask for the project to be completed in 6 months. But the
Chief Technical Officer can say that they can complete the project in 9 months
due to technical and resource constraints. If you cannot resolve this conflict
between these two powerful stakeholders, you can ask the support of your
management.
3. How to resolve competing stakeholder requirements?
Competing
stakeholder requirements must be resolved smoothly. If resolving a requirement
conflict will make any side unhappy, this might bring a risk to your project.
An unhappy stakeholder might not support the project or he can underperform
when you need his support in the project. Therefore, the Project Manager should
resolve competing stakeholder requirements by accepting those which most match
to these aspects of the project stated below.
4. Let the customer requirements take precedence
If
there is any conflict with those of customer, the customer’s needs normally
take precedence. Because the end user of the product or outputs of the project
is the customer. Therefore, if stakeholder requirements are conflicting with
the customer requirements, usually the customer’s requirement will beat the
other one.
5. Ask for Management Support
If a
conflict cannot be resolved, ask for management support. In some cases,
requirements of powerful stakeholders might compete with each other. For
instance, for a marketing feature development project in an IT company, Chief
Marketing Officer can ask for the project to be completed in 6 months. But the
Chief Technical Officer can say that they can complete the project in 9 months
due to technical and resource constraints. If you cannot resolve this conflict
between these two powerful stakeholders, you can ask the support of your
management.
6. How to resolve competing stakeholder requirements?
Competing
stakeholder requirements must be resolved smoothly. If resolving a requirement
conflict will make any side unhappy, this might bring a risk to your project.
An unhappy stakeholder might not support the project or he can underperform
when you need his support in the project. Therefore, the Project Manager should
resolve competing stakeholder requirements by accepting those which most match
to these aspects of the project stated below.
