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Chapter 9 PROJECT MANAGEMENT AND CONTROL

Project Management

• Means planning,executing,scheduling, and controlling activities to provide solutions to the


identified problems.

• Use of the tools provide current information for responding to frequently asked by client
question 1. What is the status of the project and 2 when will the tasks be completed

A. PROJECT PLANNING

• Engaggemment planning begins the 1st time a potential client contact the consultant and
continue in more detail as preparation and presentation of the project.

• Project plan service as the nucleus of consulting eng. And provide guide to staff assignment
and completion dates. Project plan should be update atleast weekly

This phase of the engagemeent usually begins with engagement kick off meeting,key elements in
getting the project off to a good start

1 Review of thee engagement proposal

Summarize what has taken place to date and as a springboard for looking ahead thee project
objective and work require.
There should be a resolution on exacly how and when achievement of the benefit will measured

2 Discussion of thee work objectives

• Logicaal follow on to discussion of the engagement objectives and benefits is agreement on


the end of the project

• Final product must be formulated

3. Definition of intermediate work result

• If there is a agreement on the end of the work product. Then meeting should turn on

• Serve as beginning point for development of detailed work

• Serve as measuring point for progress project object.

• Serve break the project up into mini project w psycho and emotional

4.Responsibility assignmeent and client participation

• This includes general assignment of duties for project planning and management

• All participants should have clear understanding of their roles.

5. Project completion date


• Time venue paeticipants and agenda

DETAILED WORK PLAN

• Serve as blueprint for execution of thee engagement and means by which the consultant can
monitor project progress

• Staff who need to complete proj.

PARTS

1. Task identification and description

• Involve identifying each activity required to accomplish both intermediate and end work
result.

• Listing thee types of activities that must takes place for 1st milestone to be reached

2. Task relationship

• Task can best be approached as iterative process. Method such PERT (performance evaluation
and review technique) grantt chart bubble chart can helpful illustrating these relationship.
3.Estimating the work effort

• Terms of worker hour to complete the task. How long will take

4.Scheduling task

• Process of taking the task estimates and dependencies as well as project team assignmeent
and availability and match against calendar to determine who will perform whuch task when and
when the work effort will completed.

5. Determining review points

• Review meeting should bee held regularly bec. They are the most important aspect of project
control.

6. Staffing thee project

• Develop tentative schedule of needed staff meembers before any one persons work schedule
and availability can assess

7. Project costing

• Total no. Of hours schedule for each staff mmembers and multiply this number by staff billing
rate
8. Detailed work plan review

• Client expectation comee to the surface and the future success of tge engagement can be
affected. Work plan becomr consultant means explainining to tge client how the project result will be
accomplishe

B. ORGANIZING PROJECT TEAMD

• Team briefing should held before assigning task to members

C. PROJECT SCHEDULE

• Once project plan has completed schedule and target completion dates should prepare for
each person assign to thee project.

D. PROJECT CONTROL

• Grant chart horizontal axis shows elaapsed time required to complete activities and tasks that
are losted vertically

• PERTCPM method allowed the consultant to chart activities using earlist andvlatest start and
to predict the overall project completion dates

E. DOCUMENTATION POLICIES AND GUIDELINES

• Ensure events and agreement affecting the project findings and conclusion are properly
documented and filed
WORK PAPER

• PURPOSE consultant source of reference and support for recommendation once aan
engagement has been completed

• CONTENT document , describing key point by listing names and source info.

TIME MANAGEMENT most valuable commodities a manager has

ONE PAGE PLANS – time is usually depicted along thee horizontal axis while the different types of
activity are defined on vertical axis

TASK TO DO LIST - system that divides the project into intervals weekday o days

JOB CARD – splits the project into task types eather than time interval.

CHAPTER 10 PRESENTATION OF ENGAGEMENT REPORTS

Why consultant have difficult in presenting result

Presentation involved hard work – they require creativity discipline andd intense mental effort
Presenting result involve risks. Consultants anxiety factor to escalate as the end of the eng. Approach

Effective communication is NOT well developed skills.

Preparing and presentation

Decide what to say

• Keep a list of ideas and observation as the project progress

• Add handwritten summary

• Use delphi research technique

• Try to psyche out

Decide How to say

Objective is to communicate effectively at a minimal cost to cclient

• Purpose of engagement
• Contractual requirement

• Time the consultatnt has available to preprae

• Size of the budget

• Type of presentation that best fits personality

• Logistic

WRITTEN PRESENTATION

Consultatnt also become attacheed to written reports bec they look impressive and prove that
something tangible was done in clients behalf

TYPE OF WRITTEN PRESENTATION

1.Formal Report

• Classic style of presentation

• Often required by client and consultant should develop the abiloty to prepare them when
necessary
EXECUTIVE SUMMARY. High level synopsis of finding recommendation anf bennegfit

PROJECT BACKGROUND. Short history of the project to help the reader understand the assignmneT
and to place

OBJECTIVE AND SCOPE. Restaatement of purpose and limitation eng.

ENGAGEMENT METHODOLOGY. Description of the technique and approach used in carrying out eng.

ANALYSIS AND SYNTHETIC. Description and detailing of the analysisundertaken and the basis for major
finding through analysis

FINDING AND CONCLUSIONS. Listing the major conclusion

RECOMMENDATION. Statement aimed at guiding the client toward course of action that correspond to
eng. Obj

EXPECTED BENEFIT. Highlight of the result that can be achievedby carrying out recommendation

IMPLEMENTATION GUIDE. Specific methods for implementing recommendation

APPENDICES. Necessary charts, analysis related the eng.

INFORMAL LETTERS AND MEMORANDUM

• Written report but are able to do without formality


• Avoiding pomp and flourishes

DISCUSSION OUTLET. Skeletal statement that assist conveying info. To client

GRAPHIC SUMMARIES. Discussion outline combine highlight wording with graphic symbols in order to
convey quickly aand clearly info.

CHART data processing method analysis project flowchart of various type may represent vomplete
work product for consultant.

Wordsmithing. Art of saying things properly and effectively.

CHAPTER 11 MANAGING THE QUALITY OF CONSULTING ENGAGEMENT

PROJECT CONTROL

1.ADMINISTRATIVE CONTROL

 Project control are formed at the irganization stage of the project to provide overall guidance
and control to implementation process.
 Administrative framework individuals who direct interest in quality of final product
 Prject steering committee maintain direct control over the project(most closely)
 Management advisory committee coordinate the activities of the informationprocessing

service department

2. TIME REPORTING AND ANALYSIS PROCEDURE

 to keep the project within its time schedule and budget

3. INDEPENDENT QUALITY ASSURANCE REVIEWS

 satisfi the requirement


 System being develop within timrleframr
 System satisfied the method and techq.
 Presentation and format procedure
 INDEPENDENT REVIEW not associated with proj, skill level atleast as high. They should
conducted prior to reaching implementation project milestone
 QUALITY ASSURANCE CHECKLISTS prepared by project supervisor, review by both leader and
independent reviewer. Written comment should prepared by independent reviwer

TYPE OF CONTROL

1. PREVENTIVE CONTROL

 BEnchmarked of expected performance

2.FEEDBACK CONTROL

 measuring tge actual performance and comparing it with expected performance. Monitoring
mechanism

PERFORMED SERVICE REVIEW

 should conducted for the purpose of assessing the consulting firm objectives services and record
competence

APPOINY PRACTICE DIRECTOR

in order to establish responsibility for practice competence and quality control

 PRoposed practice gols and supervise the overall service plan


 Be responsible for practice conduct

APPOINT SERVICE COORDINATOR

To administer daily operation related to the provision of management and consulting services

ENGAGEMENT ANALYSIS

record all engagement even those that were very small or which no feesshould be kept

PERFORME STAFF COMPETENCE EVALUATION

Usuaaly at the end of the eng.

ORGANIZING THE PRACTICE

1.FINANCING REQUIREMENTS

Need for working capital to pay monthly operating exepenses. Working capital is requite for smooth out
tge fluctuation in cash flow and keep the practice going

2. Time scheduling
3. Billing and collection

BUILDING THE PRACTICE

1. Initial client base

Market place potential client

2. Positioning practice

Unique capabilities and unique experience. Market plan

3.Practice development network

MONITORING RESULT

1.Performance Measures

To know it they achieve their goal

2. Quality control standard

CHAPTER 12 MANAGEMENT CLIENT RELATIONSHIP

consultant and problem solving

Consultant and client

OPEN DOOR policy welcoming question and communicate to anyone a5 anytime

SELLING OF CONSULTING SERVICES / MARKETING PROFESSIONAL SERVICES

1.Present Client activities

Core of the most business activities for all firm

 RETENTION expose quality service at the same time monitoring satisfaction. It easir to keep
current client than to attract other.
 EXPANSION SERVICE "cross marketing " providing service beyond originall proposed
 GENERATION REFERRALS perdonal relationship with client

2. NONCLIENT RELATIONSHIP 3RD PARTY REFERRAL SOURCES ACT.

These are referral services often are fellow professionals who served mutual client

3. PROMOTIONAL AND RELATION ACTIVITIES

wide range innovational strategies.


CHAPTER 13 MANAGEMENT OF PEOPLE RELATIONSHIP

STAFF SELECTING AND DEVELOPMENT

Most critical function in mgt consulting

 Level of sucess
 Rate growth
 Future of the consulting practice

PRACTICE AND STAFFING PROFILE

1. DEVELOP PROFILE

 Select only people finding the profile that have been develop. And donot temted to accept less
qualified candidates just bec. Theyvare available

2. POSITION PROFILE

 Profile should be general in nature describing the overall role of position in the organization
 Specific responsibilities and duties

3. PERSON DESCRIPTION

 academic, experience and traits and characteristics

Experience is a common charac. Of success consultant

REQUIRED SKILLS

Technical and consulting skill

TYPES OF TRAINING

1. Formal training

2. On going training

Combination of in house and out house

3. Informal training

Resesrch materials reference manual

Every staff members are investmenys

TEAMS most important features of modern managerial life and increasingly they are taking priority over
traditional business departments

DEPARTMENTS are good way of organizing jobs marketing finance and operation
INTRINSIC FACTOR

1.GROUP SIZE

 The larger the group the more latitude there is for individuals to specialize their roles

2. STAGE IN GROUP FORMATION

 Function of the group change over time

3.INDIVIDUAL EXPERTISE AND SPECIALISM

 group offer individuals an oppurtunity to specialize their contributions to the overall venture

4.GROUP NORMS AND CULTURE

 group operates in social environment


 Social norms influence the way in which group works
 Culture is a set of rules that define as what allowed as behavior within the group

5. LEADERSHIP

 Meanrain coherance and focused towards objects.

6. INDIVIDUALS PERSONALITIES

 A good teams mix up of personalities

7. GROUP MOTIVATION

EXTRINSIC FACTORS

1.GROUP TASK

 Familiaeity
 Complexity
 Significance outcomes

2.Resources Availability

 Resources made available will influencevthe way team work if resouces is low objective is low

3. GROUP REWARD

4. INTERACTION WITH OTHER GROUPS

 A BUS. MAY consist of set of interlacking and interacting teams. Teams may exchange and share
notes

PROCESS OF GROUP FORMATION


1 FORMATION

 GOALS of the group and rolr of individuals

2. BRAINSTORMING DELIBERATION

 debate about goals and role

3.EMERGENCE OF CONSENSUS

 GRoup survive in stirming stage


 Consensus will recognize the role of individual member will play

4. PERFORMANCE

 undertake the tasks it exist to perform

MANAGING TEAM CONFLICTS

CONFLICT are inevitable feature of team working

 FUNCTION CONFLICT adpect of change processess , especially if the teams is set in its way. Good
 DYSFUNCTIONAL CONFLICT distract fron goal achievement. Bad

CHAPTER 15 FINANCIAL FORECASTING

FINANCIAL MANAGEMENT concerned with proper specification of financial goals of the firm as well as
the measurement of pwrformance relativeto achive thse object.

 Allocate to fixed and current


 Focused on risk return relationship and maximizationof return gor a given level risk

FINANCIAL FORECASTING allow the firm to anticipate the event before they occur, particularly the need
raising funds externally

1. How much money need

How much money generat

How much additional /external financing needed

CHAPTER 15 WORKING CAPITAL AND FINANCING DECISION

WORKING CAPITAL "CURRENT ASSET"

NET WORKING CAPITAL "excess CA over CL"

Working Capital Management determination of level quality and maturity of each major current asset
and current liab. Also administration and control asset
The faster growth in sales the more likely is that an increasing percentage of financing will external to the
firm

1. Working capital represent a margin of safety for short term creditors

2. Amount of working xapital represent the extent to which current asset are financed from long term
sources

WORKING CAPITAL POLICY

1. App. Level for current asset both total and by specific accnts?

2. Houw C.A be financed

FACTORS AFFECTED C.A

1. General nature

Trafing and manum are usually higher than services

2. Effectbof sales patter

Changev8n sale activity

3 length the longer the time required to manufactured the higher level working capital required

4.industry practice

 Greater proportionate of asset readily convertlible to cash can afgord lower working capital ang
high liab

5. Term puch and sale

The longer credit period the lower working capital

The longer the higher

ALTERNATIVE CURRENT ASSET INVESTMENT POLICIES

1.CONSEVATIVES/RELAXED

 RElative large amount of cash, marketable sec. And inventories carried and under sales by liberal
crefit policy

2. AGGRESSIVE /RESTRICTED

 Firm fewer liquid asset eith which to prevent possible financial failure
3. MODERATE C.A

 between 1 and 2

ALTETNATIVE CURRENT ASSET FINANCING POLICY

1. MATURITY MATCHING / SELF LIQUIDATING approach

 C.A financing involve matching to extent possible the maturities of asset and liab.
 "Hedging policy" use permanent financing lonterm debt and equity

2. AGGRESSIVE APPROACH

 Firm finance all fixed asset with long term capital but part of its permannet C.A is financed with
short term nonspontaneous.

3. CONSERVATIVE APPROACH

 permanent or long term source to finsnce all permanent asset and alsi part of tempo. C.A and
then hold tempo surplus funds

RISK RETURN TRADEOFF

AGGRESSIVE POLICY greatest use of short term debt . Has highest expected return but short financing
bring

CONSETVATIVE for leadt. Lowest expected return but lowest risk.

CHAPTER 16 MANAGEMENT OF CURRENT ASSETS

Management of liquidity

 Total amount of liquidity necessary to aboid the risk insolvency


 Amount of cash versus near cash (marketable securities) to have in the liquidity mix for
transaction purposes

CASH COVERTION CYLE

 average lenght of time involve from payment of raw mat to the collection of accounts rec.

A. Inventory conversion = Inventory/sales per day

B. Rec. Collection period = Receivables /sales/365

C. Payable deffered = Paayable /purchased per day or payable /Cos/360

A+b+c = cash conversion cycle


CASH MANAGEMENT

involves the maintenance of cash and marketable securities investmentlevel whixh will enable the
vompany to meet its cash requirements and the same time optimizing the income idle fund

 Meet finnacial disbursement


 Minimize funds commited to transaction
 Avoid misapropriation and handling losses in normal course

REASON FOR HOLDING CASH

1.Transaction mode

 Facilities normal transaction busi

2.Precautionary Motive

 To provide beffer against contigencies such unexpected slowdown in AR collection

3. Speculative Motive

 Cash held for profit making / investment oppurtunities that may come up as ablock of raw
materials inventory.

4. CONTRACTUAL MOTIVE

 may required by the bank to maintain a certain compensating balance in its demand deposiys

DETERMINE THE CASH NEED

1.CASH BUDGET

2. CASH BREAK EVEN

 show the company cash needs and cash sources

3.OPTIMAL CASH BALANCE

 "Baumol model" model balance the oppurtunity cost of holding cash against trnsaction cost
asssociated with replenishing cash account by selling off marketable sec or borrowing

TECHNIQUES OF LESSENING CASH NEEDS

1. ACCELERATING COLLECTIONS

 Prompt billing and trade discount


2.SLOWING DISBURSEMENT

 CENTRALIZED PEOCESSING OF PAYABLES - petmits finance managdr to evaluate the payment


coming due for the entire firma and to schedule tha availability of funds toeet these needs on a
company wide base. MORE EFFICIENT monitoring payables
 ZERO BALANCE ACCOUNT special disbursement acnt having 0 balance on check written
 DELAYING PAYMENT not going to take advantage of any offered trade discount for early payment
, pay on last day
 PLAY THE FLOAT advantage of the time it takes for company's check to clear banking system
 LESS FREQUENT PAUROLL instead of paying workers weekly they mqy just paif semi monthly

Factors infuencing the choice of marketable Sec

1. RISK

 DEAFAULT RISK issuer of sevurity cannot pay the principal or interedt


 INTERRDT RATE RISK risk decline in market values of security due to rising interest rates
 INFLATION RISK reduce the real value of investment

2. MATURITY

3. YIELD/RETURN ON SECURITIES

 The higher a securitus risk,t he higher its required return the

4. MARKETABILITY

 risk that the sevuritoes cannot be sold at close to quoted market price

FACTORS DETERMINING AR POLICY

1. CREDIT STANDARD

 IF credit is relaxed sales may increase but suffer AR


 OPTIMAL CREDIT POLICY extending credit more liberally until marginal profitability on additional
sales equal yo the investment receivables.

2 CREFIT TERMS

 length of current period discount given

3. COLLECTION PROGRAM

 Credit analysis is 8nstrumental in determining amount of credit risk to be accepted

4. DELINQUENT AND DEFAULT

VOST ASSOCIATED W AR
1.CREDIT ANALYSIS

 hiring crefit manager

2. CAPITAL COST

 if extend credit. Must raise fund in order to finance ot

3.DeLINQUENCY COST

 customer laye paument

4. DEFAULT COST

 bed debts

MARGINAL ANALYSIS

 systematic comparison of the incremental returns and incremental cost result in changes in the
firm credit policy

INVENTORY

 STOCKPILE OF PRODUCT FIRM

1PIPELINE /TRANSIT INVENTORIES

 moved / transport from one location to another

2.ORGANIXATIONAL / DECOUPLING INVENTORIES

 provide each link in thr production disyribution chain a certain degree of independence from
others.

3.SEASONAL /ANTICIPATION STOCK

 anticipation of heavy selling price

4.BATCH OR LOST SIZE INVENTORIES

 maintained whenever the user makes or buys materials in larger lots than are nedded for
immediate purpose.

5.BUFFER Or SAFETY STOCK

 maintained to protect the company from uncertained

INVENTORY PLANNING
 Determination of what inventory quality quantity timiming and location

INVENTORY CONTROL

 regulation of inventory within predetermined limits

1. FIXED ORDER QUALITY SYSTEM

 Inventory goes down to predetermined level known as reorder point an order for fixed quantity
is placed . PERPETUAL INVENTORY IS NEEDED
 TWO BIN SYSTEM

2.FIXED REORDER CYCLE SYSTEM

 also called PERIODIC REVIEW orders are made after a review of inventory at regular intervals

3. OPTIONAL REPLENISH SYSTEM

 system represent combination of the important controlmechanisms of the order of 2 above

4.ABC CLASSIFICATION

 A highest possible control including most complete, accurate records


 B normal control good record EOQ
 C. simplest possible control such periodic review of physical inventory wno records

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