PROJECT MANAGEMENT

 

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.