ASSIGNMENT SEMESTER-II

Subject-Project Management
Code-MB 0049
ANS1.
Phases of Project Management: Project management is a rationally planned and
organized effort to attain a specific goal. It comprises of organizing, coordinating and
managing different tasks and resources for successful completion of project. A project lasts
for a definite period of time and then finishes. Project are usually are made up of different
diverse elements or mini-tasks that are completed separately and finally combined together
to make the completed project.
1. Project Initiation: Project initiation is the first step in the project development cycle, and in
simple term: starting up the project. A project is initiation by defining its reason, business
goals, and scope. The cause for initiation and the suggested solution to be implemented
must be defined. A project team is put together to define early milestones, and preliminary
budget proposal. The information in project initiation assists in performing an end of phase
study for getting a GO No GO decision.
2. Project Planning: Once the project is defined and project team is assembled, the next
phase is the in-depth Project planning phase. This includes developing the PMP (Project
Management Plan), for guiding the team throughout the project development stage. In this
phase the required skills of development team, non-labour resources, risks plan, detailed
action items and milestones are explained.
3. Project Development: On the basis of inputs received in the shape of project feasibility
study, preliminary project evaluation, project proposal and customer interviews , the
following outputs are produced:
System design specification
Programme functional specification
Programme design specification
Project plan
4. Project Implementation: In this phase, the requirements are built and programmed. The
product is presented for client acceptance and full implementation after the quality
assurance analysis. If the client has accepted the final product, the project is finished and
closed down.
5. Project Closure: It includes giving the final output to the customer, handing the project
documentation, manuals, source code, and network layouts. At last a post implementation
review is to be carried out to identify the extent of project success and document review
outcomes.

ANS2.
Shorts Notes on:
1. Economic feasibility of a project: The economic feasibility aspect of a project relates to
the earning capacity of the project. Earning of the project depend on the volume of sales.
The following important indicators are taken into consideration:
Present demand of the goods produced through the project i.e. market facility getting
a feel of the market.
Future demand of the goods. A projection may be made about the future demand.
Determining the extent of supply to meet the expected demand and arriving at the
gap.
Deciding in what way the project under consideration will have reasonable chance to
share the market.
Anticipated rate of return on investment. If it is positive, the project justifies the
economic norm in the relationship between cost and demand.
Future demand can be estimated after taking into consideration the potentialities of
the export market, the charges in the income and prices, the multiple uses of the product,
the probable expansion of industries and the growth of new industries.
2. Need for project planning: The purpose of project planning is to identify various areas of
the project work and the influencing factors, and subsequently define the boundaries of the
project performance. In addition, scope of the project also needs to be explicitly mentioned
in the list of objectives. Planning is the basic to all human activities and requires common
sense. It is trap laid down to capture the future. It helps in bridging the gap between where
you want to be. Planning thus involves:
Brainstorming on various possible alternative courses of action
Choosing the most appropriate one
Agreeing what you can expect to achieve
Calculating the human and material resources needed to reach your objectives
Getting agreement among all concerned about clear targets and timetables for the
work in view.
Planning techniques can address many organisational problems and
opportunities, including institutional development of your organisation and planning of
disaster preparedness activities. Whether the priority is capacity building, disaster
preparedness, immediate emergency action, or new initiatives such as advocacy for
vulnerable groups, good planning can increase your chance of success.
3. Diversity management: Diversity management is a management strategy to promote and
maintain a positive workplace environment in the organisation. It is crucial for growth in
todays competitive marketplace. Diversity management works on the principle of
acceptance. Diversity management inspires the employees to recognize that everyone is
different. They should not afraid or be biased about these differences. Employees are
encouraged to live with the fact that there are different interests, different values, and

different physical and emotional characteristics present in the organisation. A strong

diversity management programme encourages the development of skills and talents for the
employees. Its boosts the communication among employees and in the long run, increases
the productivity of the department.
4. Rules for network construction:
Each event must have a distinct number. The number specified to an event can be
chosen in any way, provided this condition is fulfilled. In practice, yet, events are
numbered in the manner that the number at the head of the arrow is greater than
that at its tail.
There must not be any loops in the project network; a situation similar to the one.
The preceding and succeeding events are not same for more than one activity. This
signifies that every activity is represented by a uniquely numbered arrow.
ANS3.
1. Steps in Risk Management:
STEP1- Recognition of assets at risk: The foremost step in the risk management
technique is to carefully identify the assets which might generate risks in project
operations. These assets may fall under various groups, such as tangible and
intangible assets, movable and immovable assets etc.
STEP2- Valuation of assets: The assets identified and grouped in the previous step
are to be valued and categorized into different classes such as critical and essential.
STEP3- Identifying the intimidation: Threats can be distinct as anything that
contributes to the intermission or devastation of any service/ product. Various
compulsions can be grouped into environmental, internal, and external threats.
STEP4. Risk consideration: The process of risk appraisal includes not only
assessment as to the provability of occurrence but also the assessment as to the
impending severity of loss, if risk materializes. This will support in determining the
appropriate risk lessening strategy, the residual risk, and the investment required to
alleviate the risk.
STEP5- Emergent strategies for risk management: After risks identification and
assessment one must apply various risk management techniques such as
avoidance, risk reduction, risk retention and risk transfer etc.
2. Five Risk Identification Techniques:
Assumption analysis: Assumptions made in planning stage of the project are taken
as true, real, or certain. A closure scrutiny of these may reveal possible risks.
Brain storming: Brain storming is a useful tool to generate the possible risk events
in quick time. It is performed by a cross-function team following set procedures.
Checklist: The checklist is developed based on past experience. It provides a useful
guide in listing foreseeable risks.
Delphi: Delphi study is carried out with the help of a group of experts. Since the
experts are people who have a deep insight into the system functioning, it is possible
to gather useful information in this way.
Interview: Interview may be held with knowledgeable people to identify or to gain
more in-depth knowledge of certain risks or to create a list of control measures.

ANS4.
Short Notes:
1. Parametric estimating tool of cost estimating: It is a technique that makes use of a
statistical relationship between historical data and other variables (e.g., square footage in
construction, lines of code in software development, requisite labour hours) to compute a
cost estimate for a schedule activity resource. This technique can generate higher levels of
accuracy depending upon the sophistication, the underlying resources quantity and cost
data build into the model. A cost-related example consists of multiplying the planned
quantity of work to be executed by the historical cost per unit to obtain the estimation cost.
2. Procurement process: An effective procurement process play in important role in the
successful implementation of a project. A procurement process starts with the identification
of the required materials and equipments. An efficient project management can avoid much
of these problems by proper planning and control of procurement and efficient postprocurement material management. A project procurement process covers the following
functions:
Request to invite bids or tenders: This covers the listing requirements of
equipment, preparing specifications, and sending request to invite bids.
Shortlist suppliers: This includes identifying the required number of suppliers out of
the possible ones.
Invite bids: This element covers the invitation of bids to receiving them.
Evaluate, negotiate, and choose bids: This involves making comparative
statement of various elements of price, negotiate technical and commercial aspects
including price, select the lowest bidders, and get the approval of a competent
person.
Prepare and place orders: This includes writing the purchase order which describe
the products and state all the commercial terms in simple and clear words, obtaining
the signature of a competent, authorized person, and send order to supplier and get
his or her acknowledgement.
Order fulfillment: This includes monitoring the progress of manufacturing of
equipments, its quality, packaging, and associated documentation.
Transport and shipping: This covers all the formalities needed to get the
equipments from the supplier to the project.
3. Project teams responsibility in project execution: The project team members are
expected to assists in the management of the project as well; albeit at a more functional
level. The critical project management elements for the project team to provide assistance
with include:
1.
Performance monitoring: implement an execution plan to measure the
actual performance as compared to planned performance. For example, the actual
project schedules will need to be reviewed periodically and compared to baseline
schedules in order to discern if the project is performing according to plan. If the
project is not performing according to baseline, steps will be taken to get the project

back on track. The same monitoring and analyzing should take place on budgets,
quality, risks, scope, etc.
2.
Provide project status: While the project manager is responsibility for
relaying project status to parties outside the project team, the project team is
expected to report the status to the project manager. This includes communicating
information both on a formal and informal basis.
3.
Project termination: Project termination is one of the most serious decisions
of a project management team and its control board. The decision of project
termination affects all the stakeholders of the project and can put some negative
impact on the organisations growth. So it is important to critically evaluate all the
aspects before taking the decision.
4. Project Termination. Project termination is one of the most critical choices a project
management team and its control board have to make. It causes frustration for those
stakeholders who sincerely believed - and in most cases still believe that the project
could produce the results they expected, or still expect. The project manager and his or her
team members, very important stakeholders of the project as well, will feel that they
personally failed. They also will be scared of negative consequences for their careers; their
motivation and consequently, productivity will decrease significantly.
ANS5.
1. Definition Of Quality Planning: Quality planning is the process of identifying the quality
standards that are related to the project and determining how to these standards can be
achieved. It is one of the significant processes of project planning and should be performed
on a continuous basis and in parallel with the other project planning processes.
2. Inputs To Quality Planning:
Quality policy: Quality policy refers to the overall intentions and direction of an
organisation pertaining to quality, as formally expressed by top management.
Scope statement: The scope statement comprises the key objectives of the project
that are needed by different stakeholders.
Product description: It includes the details of technical issues and other concerns
which may influence quality planning.
Standards and regulations: The project management team must acknowledge all
the relevant standards or regulations that may influence the project.
3. Tools And Techniques To Quality Planning:
Benefit/cost analysis: The quality planning process should acknowledge
benefit/cost trade-offs. The benefits should cover higher productivity, lower cost and
high customer satisfaction.
Benchmarking: In this, we compare actual or planned project practices to practices
of other projects to produce ideas for improvement and to find a suitable standard to
measure performance.
Flowcharting: It is a diagram that depicts how different elements of a system relate
to each other.
Design or experiments: It is an analytical technique that helps identifying which
variables affect the overall income the most.
4. Outputs From Quality Planning:

Quality management plans: It provides input to the overall project plan and must
deal with quality control, quality assurance, and quality improvement for the project.
Operational definitions: It particularly explains what explains what something is,
and how it is measured by the quality control process.
Checklist: It is a structured tool that helps in verifying if a set of required steps has
been performed.
Inputs to other processes: The quality planning process may discover a need for
further activity in some other area.

ANS6.
1. Types Of Project Performance Evaluation Techniques:
Process (or implementation) evaluation: It is also called formative evaluations
which are designed to improve the implementation of a program, policy or strategy
as it unfolds. In this type of evaluation we measure the level to which a program is
effective as it was planned. It usually considers the program activities conformance
to statutory and regulatory requirements, program design, and professional
standards or customer expectations.
Outcome evaluation: It is also called summative evaluations which are designed to
judge a program, policy or strategys relevance, success and/or cost-effectiveness
which includes its relative contribution to the intended outcomes. This type of
evaluation measures the level to which a program attains its outcome-oriented
objectives. It mainly focuses on a outputs and outcomes including unintended effects
to evaluate program effectiveness but may also consider program process to
understand how outcomes are produced.
Impact evaluation: This is a type of outcome evaluation that measures the net
effect of a program by evaluating program outcomes with an estimate of what would
have happened in the absence of the program. This type of evaluation is used when
external factors are known to influence the programs outcomes, in order to isolate
the programs contribution to achievement to its objectives.
Cost-benefit and cost-effectiveness analyses: Cost-benefit and costeffectiveness analyses compare a programs outputs or outcomes with the costs
(resources expanded) in order to produce them. When applied to existing programs,
they are also regarded as a variety of program evaluation. It measures the cost of
meeting a single goal or objective, and can be used to identify the least cost
alternative to meet that goal. This analysis aims to recognize all relevant costs and
benefits, generally expressed in dollar terms.
2. Benefits Of Performance Measurement And Evaluation:

Policy and programme planning

and development

Decision making about funding

Results may confirm policy and

programme direction or identify
gaps that need to be addressed.
Finding out what works well/not
so well can be used to guide
future funding decisions /

Clarifying goals

Tracking progress

priorities.
At the outset, developing a road
map clarifies goal, explains the
big picture and ensures that
everyone shares a common
focus.
Enables monitoring and if
required, permits adjustments to
be made along the way.