Project Management Overview ................................................................................1-16
Challenges in Project Management
As a consequence of the economic liberalization process, geographical boundaries are becoming irrelevant in today's era of globalization. In such a situation, the infrastructure bottlenecks have become more pronounced and the support system is unable to cope with the increasing expectations of the business world.
Role of Liberalization and Globalization
The intranet is an internal internet in an organization which is exclusive network for the organization that uses the internet. The rapid economic growth in the last few years has put a heavy strain on India's infrastructural facilities.
Foreign Investment in Projects
Although the Indian government is well aware of the need for reform and is moving forward in this area, business has yet to face this situation. The story is also refreshingly different when compared to the current position of some of the other developing countries, barring a few exceptions such as China.
Project Imports and Import Substitution
The exchange rate can be higher/lower than the free market equilibrium rate. While welcome from the perspective of the external security it provides to India's external financial position, such a major improvement in India's external position is unprecedented in India's history.
Forms of International Business
Public Sector Projects
- The Importance of 3E’s
- Disadvantages of Public Corporations
This requires that public sector enterprises be able to compete on an equal footing with the private sector. Scope and Time The perspective of the Span Involved project in the public sector is macroscopic and ready to go.
Project Management Vs Functional Management
Project management requires grouping generalization and flexible approach as opposed to specialization and division of labor. Project management approach is to dedicate ourselves to finish the goal and keep the whole in focus at all times.
Types of Production Systems with Different Degrees of Flexibility
Comparison of Project and Typical Business
Zero Date of a Project
Pre-project Activities
Project Activities
- Advance Actions
Performance Indicators
Early Start Time (ES), Late Start Time (LS), Early Finish Time (EF), Late Finish Time (LF), Total Circulation (TF), Free Circulation (FF), Minimum Total Project Duration. IP Address – An IP address is the actual address of a node or computer or server on the Internet.
Concepts of Project Management .......................................................................... 17-30
Project Objectives and Functions
Manage communications to ensure relevant parties are informed and have sufficient information for project alignment. Manage costs to ensure the project is delivered at the lowest possible cost and within budget where possible.
Project Classification
Manage the scope of the project to define the goals and work to be performed, in sufficient detail to facilitate understanding and proper execution by participants.
Project Life Cycle
- Project Life Cycle Curve
- Project Visibility
- Project Cycle for an Engineering Project
Using shadow (economic/efficiency) prices for resources to arrive at the net benefit of the project. Depending on the type of organization, the authority and accountability of the project manager varies.
Project Management Definition
Elements of Project Management
Techniques for Project Management
Project management is not just about program evaluation and review techniques (PERT) or the critical path method (CPM). When we talk about tools and techniques, it should be clear that mastering them all does not mean mastering project management.
Roles and Attributes for Project Manager
Therefore, if one humbly accepts that the role of project manager is that of systems integrator, it is possible to supplement the deficiency of the project manager. The whole concept of project can be to fit in terms of finding a gap between customer needs for goods and services and filling the gap.
Government Regulations
In addition to the truly new ideas, which are based on significant technological breakthrough, most of the project ideas involve combining existing fields of technology or offering variants of current product or service. Before starting the project there is a need to establish the project scope, time and cost targets/performance.
Project Identification
- Tapping of Project Ideas
- Identify Potential Problems
Choosing the right project for future investment is crucial for the long survival of the company as well as the country.
Project Screening and Selection Criteria
- Preliminary Screening
- Selection Criteria
1 Payback Period (PBP) PBP< Target Period PBP It takes into account the time value of money and also the project's entire lifetime of assessment. Terminal Value approach: TV of the reinvested inflows at the end of the project is calculated. The first step in a feasibility study is idea generation, which depends on creativity, innovative nature or ingenuity. At this stage, the project is systematically studied in depth for various aspects such as market, technical, financial, economic, commercial, social, managerial, organizational and ecological analysis. The project manager may need to update and approve the feasibility report and work according to the specifications in the report. Objectives may be missed and even the feasibility of the project may be lost if the site of the plant has to be moved at a later date. Effluents must be discharged in a harmless manner without polluting the environment, otherwise the discharge cannot be permitted. Based on the information collected from secondary sources, and through the market survey, the market for the product/service can be described in terms of effective demand, breakdown of demand, price, distribution methods, sales promotion, consumers, supply, competition and government policy. The market survey considers the factors such as demand and growth rate, segmentation of market, choice of products, price and income elasticity of demand, characteristics of buyers, motives for buying and fulfilling needs. The shadow prices take care of the distortions in the market price through suitable adjustments in the market price. Although UNIDO approach is more popular, neither approach can be said to have universal applications. Where Ip = Investment required for proposed project Ie = Investment made for existing project Ce = Installed capacity for existing project Cp = Installed capacity for proposed project. Where Ip = Investment required for proposed project Ie = Investment made for existing project Te = Revenue for existing project. The need is to develop future profiles of the current system and the projected profiles of alternative proposed systems. Sensitivity analysis: This uses some of the same statistical techniques as risk and uncertainty analysis to analyze how sensitive it is to changing the ranking of alternatives based on major cost drivers. Depending on the size and complexity of the project, this can be as simple as a white paper or briefing paper, or it can be more formalized. Loan terms: Long-term loans (5 to 10 years) are provided by financial institutions and commercial banks. There are two broad types of term loans available in India: rupee term loans and foreign currency term loans. Leasing and hire purchase financing: represent a form of borrowing that is different from conventional term loans and bond loans. The International Finance Corporation (IFC) is a subsidiary of the World Bank and provides funds specifically for the private sector. United Nations Development Program (UNDP) and United Nations Industrial Development Organization (UNIDO) These two United Nations agencies provide funding for industrial projects around the world. Then convert all net cash flows to the base year (0) and obtain the current factor (P V Fi, n) for the various years corresponding to a discount rate of 9%. Current rate of net cash flow in year n = net cash flow in year 'n' x PVFi,n where I = 9%. Project Scope Statement: provides a documented description of the project in terms of its output, approach and content. Resource plan: describes the main resources needed to continue with the execution of the project. Concept of Systems Types of Systems Information Bound System Often, activities that are not on the critical path can be delayed without causing a delay in the completion of the project. The LF for the last activity is normally set equal to the EF for the project. Project Management System Only reducing the duration of the critical activities in the project network can reduce the total project duration. Assigning the update time as the earliest occurrence time of the project's tail event. Organizational Breakdown Structure (OBS) Resource Planning It also explores the ethical and financial responsibility of the staff involved in the project. At this point, we have the EF of the final activities, which is the earliest possibility to complete the project (if the activities require an estimated time). Responsibility is a mental attitude, which cannot be conveyed in writing, cannot be delegated but only authority can be delegated. When authority is delegated, the delegator remains accountable to the delegatee for the use of the authority. Delegation occurs when authority is given to make commitments, use resources, issue instructions, demand compliance, and take necessary steps to accomplish the task. The delegation must be in writing as far as possible, but in the case of institutional delegation it must be in writing, appear formal and also have legal overtones. How to Delegate? Documenting Project Authority Unlike Moslow's hierarchy, ERG theory allows different levels of needs to be pursued simultaneously. ERG theory recognizes that if higher-level needs go unmet, the person may fall back to lower-level needs that seem easier to satisfy. The project manager integrates the contribution of the staff in different functional departments to realize project goals. In some activities, the task force's staff are in effect seconded to the project manager. Auditing can be done by department or budget as a whole depending on the size of the project. FS for the completion of activities will be taken as 0 (Zero) The minimum duration of the project is 18 weeks. Project Manager’s Duties: Multidisciplinary in Nature Therefore, it is a certain percentage of the invoice value that is withheld by the project authorities at the time of payment. The staff must be informed in time about the completion of the project for the following reasons: The schedule is likely to be in the form of a bar chart because the details included are so few and so broad-based that the development of networks would not increase accuracy. Generally, a built-in allowance of 20% is applied in schedule, as in the case of cost estimate for correct correspondence between them. Contract is an arrangement for obtaining authority over the external organizations for participation in the implementation of the project. Financial close is the process of completing all financial and budgetary aspects of the project being completed. Progress Measurement For performance measurement at each stage the requirements of subsequent stages must be known so that the progress achieved in previous stages can support the progress required in the successive stage. It is a matter of concern if the actual progress at any stage of the project falls below the minimum requirement to support feasible progress of the downstream stages and the project as a whole. Generally, retention money can be paid after completion of the project or after the maintenance period. Investigate Issuance of NIT (Notice Inviting Tender) to selected parties or to the notification papers by the project authority and sale of tender document. The tender document can be obtained from the office of the Deputy Conservator, XYZ Port Trust, Administrative Building XYZ 100001 with a written request on payment of Rs. Tender The buyer does not have sufficient authority to exercise sound judgment in making decisions that create awkward situations. Unjustified and shaky policies are sometimes adopted by the buyer in rejecting goods, when they are not needed. The buyer does not adhere to the recommended operation and maintenance manuals and communicates about observed problems that are not reported immediately. The owner's impression that 'lump sum contract is more economical than cost plus' may not be correct, as during the construction of details he has to take contingencies. Payment of the agreed amount to the contractor will take place on the basis of a completion certificate issued by the engineering firm. In this method, the contractor uses his own materials and labor and carries out the work according to drawings and specifications. EPC represents the traditional approach where MSC (multi-part contracts) require the implementation (execution) of the project to be carried out in different phases by different contractors. Sub-contract Team Building Earnest Money Deposit (EMD) Retention Letter of Intent (LOI) Ensuring Better Contract Management It is the project manager's responsibility to prepare the report with input from the entire team, customers and the major stakeholders. Both CPM and PERT share the same approach to constructing the project network and to determining the critical path of the network. Factors Responsible for Project Failure The quality of the selected plant and equipment determines the cost of utilities, repairs and maintenance. The plant's performance cannot be measured until the project goes into commercial production, but the project manager is fully responsible for both installed costs per ton and production costs per ton, otherwise a project can become ill. Schedule Variance = Budgeted Cost of Work Performed – Budgeted Cost of Work Schedule SV = BCWP-BCWS. ECP Index = Budgeted Cost of Total Work/Actual Cost of Work Done+Incremental Cost of Completion. The owner opened a letter of credit for the shipment of items declared ready by the turnkey contractor. The contractor sent everything that was finished, while the owner insisted that the ready-made contractor had to ship the items in the order in which they could be built. Because project duration is controlled by activities on the critical path, the duration of some activities on the critical path may be shortened. New information and knowledge that will affect the duration of the activities to be carried out. The bar chart does not indicate which tasks should be prioritized in terms of resources (i.e. people, money, materials, machines, etc.). It is therefore not clear from a Gantt or bar chart which activities are dependent on each other and which are dependent. They provide a fairly accurate estimate of the length of time it will take to complete the project and the activities that must be kept on time to meet the schedule. It provides a way to estimate the time and cost impact of changes in the project plan at any stage. The technique was developed to help guide the development of the Polaris missile-submarine system. Since many of the activities involved in this project had never been done before, the time they might require was uncertain and was therefore treated as a probabilistic variable. Finally, the cost of applying critical path methods to a project is sometimes used as a basis for criticism. When used with additional features for work breakdown structure and various reports, it is more expensive, but rarely exceeds 5% of the total project cost. This is the earliest time at which the event from which the activity arrow originates occurred. This is the earliest time the event from which the activity arrow originates occurred, plus the duration of the activity. The total duration of time available for each job is the difference between its earliest start time and its latest finish time. This is the latest display time for the node at which the activity arrow ends minus the duration for the activity. In general, the AON convention is easier to learn because it consistently uses only arrows to indicate precedence. In contrast, some arrows (solid) are activities, and other arrows (dashed) indicate priority requirements when the AOA convention is used. Project duration can be shortened by systematic analysis of critical path activities, collision costs and the corresponding cost effect of indirect costs. Cyberspace refers to the location of the user as he traverses the virtual geography of the Internet. Fulkerson Rules for Numbering Nodes Statistical Method of Deriving: Single Time Estimate Time by which the end of an event can be delayed beyond the earliest end time without affecting the earliest start of a subsequent (subsequent) activity. It is the part of the total float within which an activity can be manipulated without affecting the floats of subsequent activities. Critical Path Since there is another critical path and other paths that could become critical, the probability of completing the project in 35 weeks is actually less than 0.19. Example 11: Consider a project for which time estimates are given in the following table, construct the PERT network what on the critical path. If it is possible that additional resources can be diverted from non-critical road activities and consequently the increase in duration of such activities and consequently the increase in duration of such activities is less than the slack, such diversion will not otherwise increase the cost of the project it costs The critical path is 1-3-4-5 with the normal duration 20 days and minimum project length is 12 days. Updating is also defined as the process of replanning and rescheduling based on the results, which serve to guide decisions by carrying out calculations made by taking into account the new knowledge and latest information of an intermediary in the project, which changes the original network. Also, the earliest start time and latest end time of each event is calculated based on the project's original start date. Resource Allocation From the network diagram, if we allocate the resource without considering the float available for non-critical activities, there is a maximum demand of men on the 7th and 8th day (5 men for activity 5-9.3 for activity 4-7,3 for Activity 4-6 and 2 for activity 3-10 (which is not yet finished) We find that the maximum demand of men has decreased from (13 for the 7th and 8th day) to 8 . So, this wonderful interoperability is due to the TCP/IP communication package used by the systems connected on the Internet. The existence of the Internet is attributed to a cooperative association of the users of the Internet. Inventory consists of finished goods, service parts, and other items whose demand arises most directly from the uncertain market environment. It consists of raw materials, components and subassemblies used in the production of parent or final items. MRP Versus Order-point Systems Aggregate Planning Material Requirement Planning (MRP or MRPI) Capacity Requirement Planning (CRP) Bill of Materials (BOM) Master Production Schedule (MPS) Benefits of MRP Closed Loop MRP Manufacturing Resource Planning (MRP II) This characteristic of the Internet has made it the most treasured medium of communication worldwide in the modern age. These regional networks are interconnections based on the geography as well as the management functions of the organization. Enterprise Resource Planning The concept of Supply Chain Management (SCM) is the application of a 'systems approach' to managing the entire flow of information, materials and services from raw material suppliers through factories and warehouses to the end customer. Thus, a "make or buy" decision is made that helps the company focus on its main mission, in addition to allowing flexibility and leanness of the mare. To establish a connection between two or more computers, it is necessary to define the address of the computer. Through some of the websites, the user can shop and carry out financial transactions online. Although the Internet is a network with a heterogeneous mix of technologies and operating systems, communication between them is not a problem because of TCP/IP (Transmission Control Protocol/Internet Protocol). The Internet is a network of interconnected networks that span millions of servers and hold countless amounts of data. People can use their computers connected to a gateway (physical network-meeting point) through a modem or leased line to take advantage of the services of an ISP (Internet Service Provider) to send messages or exchange files with people using their computers in another region. , in another country or anywhere that is similarly connected to an Internet gateway in its part of the region. ISPs provide registration services and support for the connected network under the auspices of the Internet Assigned Numbers Authority (IANA). For example, every computer connected to the Internet is owned by someone or a company. Point-to-Point Protocol (PPP): This is used when accessing the Internet using a telephone line. It is a utility to copy files from the remote hosts to the user host and vice versa. This is the most popular system, which allows easy access to the abundance of information on the Internet. The landing page of a website generally signifying the top of the page hierarchy and providing relevant links to other web pages on the website is known as the Home Page. Users can access a website of a particular company and get relevant information about the company's profile, products and future plans. A firewall is a computer or set of computers that uses filtering and specialized routing to prevent people from using information resources of the organization that do not belong to the organization. The people of the organization may or may not use all the resources of the greater Internet, depending on the design of the Internet. This results in a push for consistent new product development and research based on customer feedback. This can enhance the business potential of the business houses by increasing their sales and improving their image in the business world. Since the Internet offers 24-hour access, customers can go directly to the latest and centrally maintained information sources. The Internet can save time and money and improve order accuracy by eliminating unnecessary intermediaries in the business chain between buyer and seller. E-cash Electronic Data Interchange (EDI) Information Technology Act What is Quality? Characteristics of Quality Quality Attributes for Products and Services Cost of Quality Traditional View of Costs and Zero Defect Costs Evolution of Quality Management TQM Definitions TQM Triangle Major Consequences of Total Quality Valuable Tools for Quality Taguchi Approach Deming Approach Quality Circles: Small Group Activities Control Charts ISO 9000 Certification: a Business Decision Information at Initiation Stage Information at Planning Stage Information at Execution Stage Information at Control Stage Computer Project Management System (CPMS) Future of Project ManagementInvestment Alternatives Evaluation
Establishing the Project Scope
Project Feasibility Report
Market and Demand Study
Primary and Secondary Information
Social Cost Benefit Analysis (SCBA)
Project Cost Estimates
Cost-Benefit Analysis (CBA)
Source of Finance
Financial Structure
Financial Institutions
Demand Forecasting
Project Planning
Design of Systems
Work Breakdown Structure (WBS)
Schedule Development
Organizing Human Resources ................................................................................ 71-84
What to Delegate?
When to Delegate?
Motivation
Organization Structures
Comparison of Functional, Matrix and Project Organization
Methods and Techniques for Developing Project Managers
Project Direction, Co-ordination and Control .................................................... 85-92
Bar Chart
Management Efforts Schedule
Project Control through Line of Balance (LOB)
Committed Activity Targets and Reserved Activity Targets
Contracts Management .......................................................................................... 93-105
Contracts
Tendering Procedure
Role of Responsibility, Reimbursement and Risk in Contracts
Types of Contracts
Types of Reimbursements Vs Types of Contracts
Boot Projects
Project Management Performance and Close Out ......................................... 106-117
Performance Indicators
Approaches to Performance Analysis
Performance Improvement
Project Close Out
Network Tecniques ................................................................................................... 118-164
Problems with the Bar Charts
Scheduling
Network Based Scheduling Techniques
Steps in Using Network Techniques
Some of the Assumptions in PERT or CPM are Given Below
Precedence Relationships
Networking Conventions: AON and AOA
Rules for Network Construction
Determination of Floats and Slack Times
Probability of Completion Time
Crashing of Network (Time Cost Relationship)
CPM Updating a Project
Resource Smoothing
Illustrative Case Study
Material Requirement Planning ...................................................................... 165-175
Type of Inventory
Comparison between MRP-I and MRP-II
Supply Chain Management
Business Process Re-engineering (BPR)
Internet and E-commerce .................................................................................. 176-188
Internet
Network of Networks
Common Protocols Used in Internet
Common Use of Internet
Internet Address
Intranet
Commercial Benefits of Internet
Electronic Commerce (E-Commerce)
Total Quality Management ................................................................................ 189-205
Information Technology and Future of Project Management ................... 206-212
