project mang

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Slide 1:


Slide 2:

2 Beijing olympic stadium

Sea link - USA:

3 Sea link - USA

CHAPTER - 1 What is a project ?:

“ A project is a temporary process, which has a clearly defined start and end time, a set of tasks, and a budget, that is developed to solve a well-defined goal or objective. “ 4 CHAPTER - 1 What is a project ?

What Defines a Project?:

• • • • • • • 5 What Defines a Project? How does a project differ from a program?

Project Management versus Process Management :

“Ultimately, the parallels between process and project management give way to a fundamental difference: process management seeks to eliminate variability whereas project management must accept variability because each project is unique.” Elton, J. & J. Roe. “Bringing Discipline to Project Management” Harvard Business Review 6 Project Management versus Process Management

Project life cycle:

7 Project life cycle

What is Project Management?:

A method for organizing tasks A structured framework to help a group work productively Tools to aid in task sequencing, dependency analysis, resource allocation, scheduling, etc. Tools to track progress relative to plan 8 What is Project Management?


9 IMPORTANCE Compression of Product Life Cycle { refer next slide } shortening of product life cycle from 10yrs to 7yrs an example. Global competition cheaper & better products  time, cost & performance Knowledge explosion product complexity due to growth ex: Japanese technos


Corporate downsizing Manpower downsizing, outsourcing management Increased customer focus Customer satisfaction Rapid development of third world economies To establish distribution channels Small projects represent big problems Multi projects – inefficiency management . accountability, flexibility, innovation, speed & continuous improvement. 10 IMPORTANCE

Slide 11:


Evolution of integrated project management system:

Piecemeal project priority system It fails to tie overall strategies of firm & fails to integrate throughout the project life cycle { ie strategic plan & managing actual projects }. Integrated of projects with Strategic plan External – oppurtunity, threats , Internal – strength, weakness Firm mission, goals, strategies – customers, profit Integrate  together to form a whole project system Diagram -  next slide 12 Evolution of integrated project management system

Integration of Projects with Strategic Plan ( integrated mngt of projects ):

. 13 Integration of Projects with Strategic Plan ( integrated mngt of projects )

Integration within process of Managing Actual Projects :-:

Fig : 1.3 Pg-13 Chapter – 1 Technical (science }– includes formal, disciplined, pure logic parts ,, project manager technically trained Sociocultural [ art ]– it combines talents of set of professionals ie teamwork Hence science + art = successful project manager . 14 Integration within process of Managing Actual Projects :-

Aligning projects with organization strategy:

15 Aligning projects with organization strategy What are we now What do we intend to be How are we going to get there


Align – to bring into proper coordination Mission – purpose, basis for decision making Objective - where firm is headed & when it is going to get there Goal – aim Strategy – what needs to be done to reach objectives , consequently SWOT & target segment Portfolio – papers,drawings,photographs etc.. Strategic implementation – how strategie`s will be realized given available resources. 16 .

Effective project portfolio management system:

Importance:- Implementation gap- Participation from all levels of orgn & clear linkages between all activities/depts Organization politics Politics – imp role project selection & individual aspirations . Hence there is need to develop system for identifying & selecting projects that Reduces impact of internal political & foster the selection of best projects for achieving the mission & strategy of the firm. 17 Effective project portfolio management system

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Resources Conflicts & Multitasking A process for evaluating & selecting projects that support high level strategies & objectives [ allocate resources & supporting multitasking operations at various stages ] . 18

Refer questions papers from 2005 to till date .:

END OF CHAPTER - 1 19 Refer questions papers from 2005 to till date .


Its framework for launching & implementing project activities within a parent organization. Structure :- Organising Projects within functional organisation – on existing hierarchy for simple management , this is for functional area plays dominant role in completing the project. Figure – 3.1 , Pg -57, Chapter-3 – next slide?????????? 20 CHAPTER - 2 PROJECT MANAGEMENT STRUCTURE

Organising Projects within functional organisation :

21 Organising Projects within functional organisation

Organizing Projects as dedicated teams- independent project teams, functional depts will assist & support project teams .:

22 Organizing Projects as dedicated teams- independent project teams, functional depts will assist & support project teams .

Organizing projects within Matrix arragement:

23 Organizing projects within Matrix arragement

Organizing projects within Matrix arragement:

To optimum utilize resources – working on multiple projects along with normal functional duties. Project A – design & expansion Project B – development of new product Project C – forecasting changing needs of customers 24 Organizing projects within Matrix arragement

Organizing projects within Network Organization :-:

Here project manager is assigned by the bicycle firm to work with the inventor & other parties to complete the project. Ex:= assemble line industries , NIKE . Fig : 3.5 Pg-68 Chapter – 3 25 Organizing projects within Network Organization :-


26 DEFINING THE PROJECT SCOPE It sets the stage for developing a project plan. It states the end result or mission of your project – a product or service for your client/customer or expectations for delivery to clients. Project scope checklist :- Project objective – overall ie what, when & how much Deliverables- expected outputs for project life Milestones- major segment of work & rough estimates of time, cost & resources for the project.


Technical requirements :- to ensure proper performance Limits & exclusions = probable failures , to be mentioned clearly Reviews with customer – customer expectations = actual deliverables ?????????? 27 DEFINING THE PROJECT SCOPE – contd


Success = Fig : 4.1 Pg-103 Chapter – 4 Matrix  Fig : 4.2 Pg-105 Chapter – 4 – example Constrain- fixed completion date, specifications & budget . Enhance-adding value to project ie reduce cost & shorten time schedule Accept-to reduce performance or go over budget ie apart from fixed constraints. It clearly establishing priorities with customers & top mngt to create shared expectations & to avoid misunderstandings for planning process & adjustments can be made in the scope, schedule & budget allocation . 28 ESTABLISHING PROJECT PRIORITIES


WBS – project work subdivided into smaller work elements through hierarchical process ( map ) & integration of project with current organization Fig : 4.3 Pg-108 Chapter – 4 > as per hierarchical breakdown of WBS. Work package – short duration tasks that have definite start & stop point, consume resources & represent cost  complete on time, within budget & as per technical specifications. Fig : 4.4 Pg-109 Chapter – 4 – sample work breakdown structure 29 CREATING THE WORK BREAKDOWN STRUCTURE ;-


Here consolidate & integration of process in WBS & OBS for managing the project. Fig : 4.7 Pg-116 Chapter – 4 - sample project budget roll up Organization breakdown structure OBS– how firm organized discharge work responsibility in hierarchical pattern , horizontally { management interest , work packages work} Work breakdown structure WBS– units for performing the work in orgn, vertically { clients interest, subdeliverables responsibility } Intersection of both OBS & WBS = project control ie work & responsibility, set of work packages necessary to complete the subdeliverables Specific budgets expected for projects, but rearrange as per availability. 30 PROJECT ROLLUP


For design & build projects that have tangible outcomes . Fig : 4.8 Pg-117 Chapter – 4 Project organize in phases to communicate what needs to be done to complete. 31 PROCESS BREAKDOWN STRUCTURE

Responsibility Matrices:

It summarizes the tasks to be acomplished & who is responsible for what on a project. It consists of chart listing all the project acitivities & participants responsible for each acitivity. Fig : 4.9 Pg-118 Chapter – 4 32 Responsibility Matrices

Refer questions papers from 2005 to till date .:

33 Refer questions papers from 2005 to till date . END OF CHAPTER - 2


Importance :- Decision making Schedule work Determine project duration & its cost Project s worth Develop cash flow needs Determine project progress Develop time phased budget & project baseline. 34 CHAPTER  3 ESTIMATING PROJECT TIME & COSTS

Slide 35:

Methods :- Macro approach  Consensus -- the experts ie senior/middle managers estimate the duration & cost , discess, argue & ultimately reach a decision . Ratio -- used in the concept or need phase of a project to get an initial duration & cost estimate for the project. Ex: - contractor use square feet for calculation of house or renovations etc… Apportion -- 35


The network is developed from the information of Work Breakdown structure. A network depicts the project activities the must be completed, the logical sequences, the interdependencies of the activities to be completed. It is the framework for the project information system that will be used by the project managers to make decisions concerning project time, cost & performance. Models - samples 36 NETWORK MODELS

Importance of network models:

Different employees/staff to be used for work packages & activities Work breadown structure is poorly constructed & not ouput oriented – effectiveness project . Identify dependencies Sequencing- because works are measurable Timing of activities How info used to develop a project network 37 Importance of network models


. 38 . Constructing a Project Network Terminology Activity: an element of the project that requires time. Merge activity: an activity that has two or more preceding activities on which it depends. Parallel (concurrent) activities: Activities that can occur independently and, if desired, not at the same time. A C B D


. 39 . Constructing a Project Network (cont’d) Terminology Path: a sequence of connected, dependent activities. Critical path: the longest path through the activity network that allows for the completion of all project-related activities; the shortest expected time in which the entire project can be completed. Delays on the critical path will delay completion of the entire project. D C A B (Assumes that minimum of A + B > minimum of C in length of times to complete activities.)


. 40 . Terminology Event: a point in time when an activity is started or completed. It does not consume time. Burst activity: an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it). Two Approaches Activity-on-Node (AON) Uses a node to depict an activity Activity-on-Arrow (AOA) Uses an arrow to depict an activity B D A C Constructing a Project Network (cont’d)


. 41 . Basic Rules to Follow in Developing Project Networks Networks typically flow from left to right. An activity cannot begin until all of its activities are complete. Arrows indicate precedence and flow and can cross over each other. Identify each activity with a unique number; this number must be greater than its predecessors. Looping is not allowed. Conditional statements are not allowed. Use common start and stop nodes.


. 42 . From Work Package to Network FIGURE 6.1 WBS/Work Packages to Network


. 43 . From Work Package to Network (cont’d) FIGURE 6.1 (cont’d) WBS/Work Packages to Network (cont’d)


It’s a type of network diagram method also known as precedence diagram method which is represented by a node ( box ) . Basic relationships :- For graphic flow chart of the sequence & logical interdependencies of project activities Predecessor Activities – to be completed immediately before this { Fig – A, B} Successor Activities – must immediately follow this { Fig – B } Concurrent or Parallel – can occur while this activity taking place {Fig- B 44 ACTIVITY-ON-NODE FUNDAMENTALS


. 45 . Activity-on-Node Fundamentals – Contd……. FIGURE 6.2


. 46 . Activity-on-Node Fundamentals (cont’d) FIGURE 6.2 (cont’d)

Network Computation Process:

47 Network Computation Process Computation  calculation: the procedure of calculating; determining something by mathematical or logical methods , calculation: problem solving that involves numbers or quantities Types Forward Pass—Earliest Times ( here project begins with start time ie zero. How soon can the activity start ? ( early start—ES ) How soon can the activity finish ? ( early finish—EF ) How soon can the project finish ? ( expected time—ET )

Forward Pass—:

Here the project begins with start time ie zero Here the assumption is every activity will start instantly in time the last of its predecessors is finished. LF – late finish under critical path ie total time that can be consumed SL , LS – not applicable to forward pass because its pertaining to late completion criteria. 48 Forward Pass—

Network Information – sample for AON forward pass network:

49 Network Information – sample for AON forward pass network TABLE 6.2

Activity-on-Node Network – basic network to be constructed:

50 Activity-on-Node Network – basic network to be constructed FIGURE 6.5


. 51 . Activity-on-Node Network Forward Pass FIGURE 6.6

Backward Pass—Latest Times :

How late can the activity start ? (late start—LS) How late can the activity finish ? (late finish—LF) Which activities represent the critical path- CP ? How long can it be delayed ? (slack or float—SL) 52 Backward Pass—Latest Times


. 53 . Activity-on-Node Network Backward Pass FIGURE 6.7

Backward Pass Computation.:

. Subtract activity times along each path in the network (LF - Duration = LS). Carry the late start (LS) to the next activity where it becomes its late finish (LF) unless... The next succeeding activity is a burst activity, in which case the smallest LF of all preceding activities is selected. 54 Backward Pass Computation.

. Determining Slack (or Float):

. Free Slack (or Float) The amount of time an activity can be delayed without delaying connected successor activities Total Slack The amount of time an activity can be delayed without delaying the entire project The critical path is the network path(s) that has (have) the least slack in common. It helps project managers for close attention to the critical path activities to be sure they are not delayed. 55 . Determining Slack (or Float)


. 56 . Activity-on-Node Network with Slack FIGURE 6.8

Refer questions papers from 2005 to till date .:

57 Refer questions papers from 2005 to till date . END OF CHAPTER - 3

Project Risk Management:

Risk means Inability to control chance events Anticipated consequences Price reduction Cost over in materials Schedule slippage 58 Project Risk Management Positive Negative

Risk Management:

Attempts to recognize & Manage potential & unforeseen trouble spots what can go wrong What can be done about the event before project begins & the contingency plans/funds to cover Risk event may occur when the project is implemented. 59 Risk Management

Risk management process:

Pg:209 Identify project risk & deciding response before project begins is practice rather reactive Project manager utility  Better control over the future improve chances of reaching project objective on time, within budget & require technical environment 60 Risk management process

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Usually external risk will be excluded Ex: Inflation , Market acceptance exchange rates, Govt. regulations. Fig: 7.2 pg 209 Step-1 Risk Identification Focus on events that could produce Consequences  poor estimates, shipping delay adverse weather Identifying risk of Project Small- work Breakdown structure Big-multiple risk teams 61

Step-2 Risk assessment:

We have to climinate inconsequential or with less relevant ones in terms of importance & need for attention Analysis Scenario Probability 62 Step-2 Risk assessment

Scenario analysis:

To assess Undesirable event all the outcomes of the events occurrence Magnitude or severity of events impact Chances/ probability of the event happening When the event might occur Interaction with other parts of this or other projects Fig 7.4, pg 212 63 Scenario analysis

Probability Analysis(Statistical tools):

Here focus will be on completion of project on time & within budget Net present value(NPV)  Cash flow risks, Correlation & S-curves. PERT- review activity & risks cost 64 Probability Analysis(Statistical tools)

Step-3 Risk response development:

Mitigating Risk:- To reduce the impact & the risk if it occurs. Ex: price fluctuations Avoiding Risk:- Some changes in project plan. Ex: southwestern monsoon Transferring Risk: Fixed price contracts to contractors insurance. Ex:general insurance Sharing Risk :- Allocate Risk in proportions to different parties. Ex: contracts to share Retaining Risk:- Ex –Earthquake or floods not feasible , to transfer or reduced risk of event changes of occurrence is less 65 Step-3 Risk response development

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To overcome this  budget reserve CONTINGENCY PLANNING = Project success :- Alternative plan for feasible foreseen risk to reduce impact What When Where How much action will take place Fig: 7.7 pg no: 218 66 Includes cost estimate & sources of funds

backhoes :


Botanical garden:

Design – plan for developing garden Layout & Scarify - To break up the surface of (topsoil or pavement). Botanical garden

Management reserves:

Management reserves This is dependent on budget revenue identified & funds established. It covers major unforeseen risks & hence applied to total project. This is controlled by owner & top management of the company regulated by project manager Fig. 7.1 , pg no 224

Time buffer:

Against potential delay in the project. More time reserved for schedule is extra time – dependent on uncertainty. Buffer- store time Time buffer


Risk response control: Executing risk response strategy, monitoring triggering events, initiating contingency plans & watching for new risks. Step-4

Scheduling resource:

Scheduling resource Organization objective Available resources No delay, Loss Feasible Flexible (New project) Realistic Scheduled & duration sequence

Types of project constraint:

The sequence in which project activities must occurs a) Technical or logical constraints Logic Types of project constraint Start Frame Pour Roof End

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Technical End Test Code Design Start b) Physical constraints Based on contractual or environmental conditions Ex: Renovation of ship compartment One person is enough due to space limitation

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C) Resource constraints Ensure availability in right quantities at right time Ex: many persons managing wedding hall decoration simultaneously Purchase refreshments Decorate hall Reception Plan Hire band

Single person managing:

Single person managing Reception Purchase refreshment Decorate Hall Hire band Plan Resources constraints People Materials Equipments Working capital

Resource allocation methods:

Time Assumptions Resource Resource allocation methods Time: If four on resource utilization . Here preduce the peak requirement for the resource injcrease the utilization of the resource. Minimize to risk of delaying the project Fig: 8.2 pg 246

Cash flow decisions:

Cash flow decisions To solve cash flow problems at future days. Price protection risks: Price risks should be evaluated item by item rather on all the item & ensure control of average of contingency funds.

Funding risks:

Funding risks Budget cuts evaluation of funding policy. Ex: govt projects political agenda Contingency funding & Time Buffers: When, where, how much money will be spent until risk event occurs: depended on uncertainty inherent in the project.

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Budget revenue: For identified risks & based on its occurrence, funds will be utilized. Technical risks: Need to develop methods to resolve technical uncertainities Ex: CAD programs

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Schedule risks: use of slack: completing activity on time is reducing schedule risk Imposed duration dates: Completion of project by specific date. Compression of project schedules: Shorter the project duration

Slide 86:

Cost risks: Cost overruns  heavy consequences Time/cost dependency link Time dependent cost Technical

Reducing project duration Real practice – project duration:

Politician Speech (unscientific) Increase project cost & inflexible Scientific Calculations Based on constraints Reducing project duration Real practice – project duration


Options: Adding resources: i.e additional staff & equipments

Reducing project scope:

Reducing project scope Reduce of scale back scope of project Reduce functionality of project

Establish case reject team:

Dedicated case team of professionals avoid hidden cost of multitasking in which projects are forced to meet the demands of multiple projects. Do it twice-fast & correctly First try building quick & dirty to meet short term deadline & then go back to do it the right way. Establish case reject team

i) Fast tracking:

These rearrange the logic Outsourcing project work: To sub contractors  technology & expertise Scheduling overtime Extra hours of work to avoid additional costs of condition & communication encountered when new people are added So not just adding new projects but schedule overtime for existing i) Fast tracking

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Big savings Time money Reduce scope  no compromise in specification Compromise quality: Reduce quality- time Rarely acceptable Suitable for rethinking of project scope Customer needs Timings

Project network::

so that critical activities are done parallel rather sequentially Critical chain: Experimentation of small project completion within short span of time EX: built a house in 4hrs Project network:

Slide 94:


Reducing project duration:

Project cost Duration graph: Logical method reducing project time &cost Sound, quick (only certain activities can be modified) Direct & Indirect cost are considered. Pg:288 fig:9.1 Project cost duration graph 95 Reducing project duration

Project indirect costs:

Overhead costs- supervision, administration, consultants & interest They vary based on time Direct costs: Labour, materials, equipments, sub contraction etc. 96 Project indirect costs


Find total direct cost Find total indirect cost Find sum = direct cost + indirect cost Shortening an activity = crashing time Time for deistically completion (compressed direction) Reducing time per unit of time Direct cost for completing activity- crash cost Fig: 9.2 pg:290 97 Steps:

Slide 98:

Cost=Risk/Run =Crash cost-normal cost / Normal cost-crash cost = 800-400/10.5=$ 80 per unit of time 98

Chapter-5 Managing project teams:

Project management has to know/assess his subordinates 99 Chapter-5 Managing project teams

Features of Project team members:

A) Share & excuse of common purpose- objective of project B) team identifies individual talents & expertise = project needs C) Roles are balanced/ shared D) team - problem solving E) encourage – opinions freely F) earnings- risk hiking, creativity G) set standards of performance = objectives 100 Features of Project team members

Slide 101:

H) Identify & consider both professional & personal growth Team diligent mantel: Fig:11.1 pg: 345 101


Understand scope of project members Find out what are acceptable role, performance, relation Storming: Control the group resolve conflicts lenders accepted group moves next 102 Forming:

Slide 103:

Close relationship develop Share responsibility Common set of expectations- how work together Performing: Here fully functional & accepted Start accomplishing project goals 103


High wrapping up of project Some members Busy depressed Accomplishing over friendship Building high performance Project teams: Fg: 11.3 pg:348 104 Adjourning:

Slide 105:

Project managers uses situation functions team Interactive management style development Recruit project team members: Based on important of project Management structure (matrix, functional, dedicator) Volunteers by experience project management Experience knowledge skill 105

Volunteers :

Problem solving ability Identify & solving skills Availability Commitment Technological expertise Specific technology 106 Volunteers


Enhance team reputation Winners lends confidence Political connections: Already good working relationship with that group Ambition, initiative ecology of team members in project 107 Credibility:

Conduct project meetings::

I. Preliminary, introductions. Overview of project Scope, objective, general schedule, method procedures II. Team members Who how will are will I able I fit to 108 Conduct project meetings:

Establishing time identity:

Make team member- Tangible Effective use of meetings-forum for communicating project information C0- location of team members-creation of project office with gantt charts, cost gragrthm: & other documentation Creation of project team name- Appropriate name & logo & on stationary shirts, coffee management etc 109 Establishing time identity

Establish ground risk:

How team will work Procedures Subsequent meetings Several kinds for completion of project Status problem Audit report solving meeting meeting meeting 110 Establish ground risk

Creating shared vision::

Fig: 11.4 pg: 357 Its tangible aspects of project performance After completion how it look How work together How customer accept Communicate- essential quality Strategic sense- challenging, redistic Insiperotus - belive 111 Creating shared vision:


Passing: strong feeling, emotion, heat, love Build record system:- Encourage team performance extra effort Letters of recommendation performance appraisals Public recognition for outstanding look Announce in review meeting 112

Job assignments:

Good work= desirable job assignments Flexibility : Exception to rules Allow members to work at home work at home when sick 113 Job assignments

Manage decision making::

114 Manage decision making: Stake holders Project managers Team members Decision making

Project managers will:

Consult teem members Solicit idea Determine optimum solutions Builds trust & commitment  to decision taken Group decision making: Project manager will facilitate group decision making within the group commences for solution 115 Project managers will

Problem identification:

Problem identify  any alternative available solutions Generating alternatives: Soil solutions is evaluating ideas create as many alternatives as possible Reaching a decision: Project manager build consensus among the group 116 Problem identification

Follow up: :

Decisions ---effectiveness--  solutions Manage conflicts: Conflicts are normal to happen Fig:11.5, pg: 363 117 Follow up: Support hinder/hamper Goals Conflicts

Encourage functional conflicts:

Shared goals Team harmony  members reluctant to voice objection Better solution Avoid mistakes 118 Encourage functional conflicts

Managing dysfunctional conflicts::

Highly talented professionals hate each other’s guts in heat of competition  irrational personality clashes Identify conflict Mediate conflict Suggest alternatives 119 Managing dysfunctional conflicts:

Arbitrate conflicts::

Impose solutions resolution of disputes outside the courts fact b/w parties with a view to recouncile differences Control the conflict: Reduce intensity of conflict Ex: 2 parties don’t have to work together. Accept it: importance of conflict in projects 120 Arbitrate conflicts:

Eliminate the conflict::

Project manager remove the members involved in the conflict. Rejuvenating the project team: Act of restoring to a more youthful condition or freshness being restored The project manager will institute new ritudes like toy ‘roaches’ Bowling etc to a team. 121 Eliminate the conflict:

Slide 122:

Finally steps for remedying problem setting targets for Who will do what, when  self confidence more respect for another capabilities greater commitment to team work. 122

Managing virtual project team::

123 Managing virtual project team: Challenge s Developing trust Effective communications Because distant members- graphical separations

Trust :

Face to face meeting know personnel background, set clear roler for each members Reliabilities Consistency Responsiveness Enthusiasm by project manager Communication: Advance & expensive systems real time interaction to allocate problem in communication 124 Trust

Slide 125:

Face to face meet Keep team members informed on how the overall project is going don’t let team members vanish establish code of conduct to avoid delays. Establish clear norms & protocols for surprising consumptions & conflicts 125

Project control process:

Its process of comparing actual performance against plan to identify deviations, evaluate possible alternative causes of action & take appropriate connective action 126 Project control process

Slide 127:

127 Setting a base line plan Measuring progress & performance Comparing plan against actual Taking action

Setting a base line plan::

Measuring performance from cost & duration information from work breakdown structure from time sequence date from network & resource scheduling decisions 128 Setting a base line plan:

Measuring progress & performance:

Quantitative Time Critical path, early start, slack Budget Compare actual versus budget Qualitative Customer technical specifications Product functions 129 Measuring progress & performance

Comparing plan against control:

Through status of the project, compare actual versus expected plans  to detect variations from plan & early correction of causes 130 Comparing plan against control

Taking action::

If thre is any duration, corrective action has to be taken to bring back project into original or revised plan. Monitor time performance: Performance measurement & evaluations Gantt charts: Typical tools used for communicating project schedule status . 131 Taking action:

Slide 132:

Its easy to understand is visual formats for communicating project schedule status Especially to top management. Fig:13.1, pg: 414 132

Slide 133:

Control charts: another tool to monitor past project schedule performance, current performance & to stimate future trends. Or difference b/w schedule time on critical parts & actual point on critical path. Its useful for giving warning of potential problems so appropriate action can be taken. Here we can monitor program Through milestones – major accomplishments, -major events Fig: 13.2, pg: 415 133

Project audit::

Importance: Forecasts date by using performance measures Check on organization structure & whether it is being implemented. Project team functioning Reviews factors related to project & managing future projects 134 Project audit:

Types of project audits:

Types of project audits In process audit Post project audit Early Corrective changes Project & performance Detail & depth Complete Management of future projects Organization size Project type, risks, size problems 135

Project audit process:

136 Project audit process Initiating & staffing Data collection & analysis Reporting

Initiating & staffing:

Depends on organization size & project size initiating In small organizations—initiating audit may be informal & another staff meeting. In medium sized organization—( several projects simultaneously) Initiating of audit – formal project review group i.e automatic In large size organizations – may be planned for major accomplishments 137 Initiating & staffing


Auditor qualities Pro direct interest in project Respect of senior management Listening Independence & authority Decision making & perception experience 138 staffing:

ii. Data collection & analysis:

Two perspectives A) Organization view: By small group not having direct interests in the project B) Project team view: By team members group along with independent persons to evaluate objective. 139 ii. Data collection & analysis

Organization view::

Organization culture supportive? Seniour management supportive? Project = purpose? Risks = identified / assessed? Right people = project? After completion of project Staff— assigned new projects? 140 Organization view:

Project team view::

Project planning & control system = project? Budget & schedule = project? Communication  stakeholders? After completion of project Project team = resources? 141 Project team view:

iii. Reporting:

Finished / current project lesson learned need changes to manage future projects A) classification of project To be selective in use of audit report content by readers Project type - construction, marketing, systems etc Size- monitory values 142 iii. Reporting

Number of staff::

Technology – low, medium, high, new B)Analysis: Project mission & objectives Procedures & system used Organization resources used 143 Number of staff:

c) Recommendations::

Major corrective actions D) lesson learned Reminder of mistake E)Appendix: Data of analysis F)Summary of booklet: Major lessons learned references from audit reports 144 c) Recommendations:

Project closure :

Audit recommendation is necessary Conditions Normal Completed project turnkey projects – building new facilities hand over to owner Development projects- find design of production & new product creation 145 Project closure

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2) Premature Early completion of projects Ex: new product development project 3) Perpetual Some projects never seem to end because of delays in changes. Audit recommend for closure to wait of resources. Interest with stake holders also ( perpetual –automatically) abounded 146

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4) Failed projects: New project fails Project has to be abandoned. 5) Changed priority: Continuous revising project priorities have impact on project life cycle - crash 147


All the best for your exams 148 THANK YOU

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