Q1: Describe the CPM model.

Briefly explain CPM model The Critical Path Method (CPM) is one of several related techniques for doing project planning. CPM is for projects that are made up of a number of individual activities." If some of the activities require other activities to finish before they can start, then the project becomes a complex web of activities. CPM can help you figure out: How long your complex project will take to complete0which activities are "critical," meaning that they have to be done on time or else the whole project will take longer If you put in information about the cost of each activity, and how much it costs to speed up each activity, CPM can help you figure out: Whether you should try to speed up the project, and, if so, What is the least costly way to speed up the project. Activities An activity is a specific task. It gets something done. An activity can have these properties: Names of any other activities that have to be completed before this one can start A projected normal time duration If you want to do a speedup cost analysis, you also have to know these things about each activity: A cost to complete0a shorter time to complete on a crash basis The higher cost of completing it on a crash basis

Q.2

Define risk management. What are the different types of risks that can affect a project?

Risk, according to Webster, is "a possibility of loss" Risks arise from uncertainty, our inability to foresee the future. If an uncertainty creates thepotential for loss, we refer to it as a risk. The opportunity to quantify risk is provided by the language of probability. Aprobability distribu tion (sometimes called a risk profile) characterizes a risk by describing the range of possible consequences and their probabilities of occurrence. Risk is not an additive propertythe risk of a portfolio is not the sum or average of the risks of the individual projects within the portfolio. In the case of projects, like financial investments, portfolio risk is determined by the underlying statistical relationships among the uncertainties that contribute. If these underlying statistical relationships are identified and modelled, they can be exploited to find optimal risk-based tradeoffs. Conversely, if they are ignored, large risks may be masked and opportunities to avoid them missed. Project Risk Management Project risk management has been defined as, "an organized assessment and control of project risks." Figure below shows the general, 3-step approach to risk management. Step1 is to identify the risk. Empirical data, recent events, and new regulations (which often signal regulator concern over new risks) are inputs to the risk identification process, and brainstorming and risk scenarios

(see below) are examples of techniques that can be used to define and clarify risks. Step 2 is to analyze the risks, which means characterizing risk in terms of likelihood and consequences. Step 3 is tomanage the risk, taking into account the resources available and the organization's willing-ness and ability to accept risk.

Figure: The basic steps of risk management. The appropriate level of detail required for risk management depends, obviously, on the magnitude of risk. Riskier projects, such as new product launches, global initiatives, projects involving new technology, some major regulatory-driven projects, and so forth, tend to have complex interacting elements and involve high stakes. A poor track record on similar projects is an indicator or risk. Likewise, more attention to risk is required when there is project deferral risk. Large deferral risks often occur for organizations responsible for managing systems whose failure might produce serious, large-scale health, safety, environmental or financial consequences (such as a large electric transmission network or an oil refinery). While Sophisticated risk management is most needed for the most risky project environments, some level of project risk management should be provided in all cases. Types of Risk The most common project risks are: Cost risk, typically escalation of project costs due to poor cost estimating accuracy and scope creep. Schedule risk, the risk that activities will take longer than expected. Slippagesin schedule typically increase costs and, also, delay the receipt of projectbenefit s, with a possible loss of competitive advantage. Performance risk, the risk that the project will fail to produce results consistent with project specifications. There are many other types of risks of concern to projects. These risks can result in cost, schedule, or performance problems and create other types of adverse consequences for the organization. For example: Governance risk relates to board and management performance withregard to ethics, community stewardship, and company reputation. Strategic risks result from errors in strategy, such as choosing atechnology that can't be made to work. Operational risk includes risks from poor implementation and processproblems such as procurement, production, and distribution.

Market risks include competition, foreign exchange, commodity markets,and interest rate risk, as well as liquidity and credit risks. Legal risks arise from legal and regulatory obligations, including contract risks and litigation brought against the organization. Risks associated with external hazards, including storms, floods, andearthquakes; vandalism, sabotage, and terrorism; labour strikes; and civil unrest.

As indicated by these examples, project risks include both internal risks associated with success fully completing each stage of the project, plus risks that are beyond the control of the project team. These latter types include external risks that arise from outside the organization but affect the ultimate value to be derived from the project. In all cases, the seriousness of the risk depends on the nature and magnitude of the possible end consequences and their probabilities. In addition to project risk, project deferral risk can be important. Project deferral risk refers to the risks associated with failing to do a project. Like project risk, project deferral risk can arise from any of the bulleted risk sources listed above (the second list). Project deferral risk can also occur if there is only a limited window of opportunity for conducting a projectif the project is not conducted now, there may be a risk that it might never be possible to effectively do it later. Oftentimes, external risks contribute more to portfolio risk because they impact multiple projects simultaneously. For example, a pharmaceutical company's R&D projects affected by the uncertain outcomes surrounding the specific compound involved, however many projects could be impacted by a change in regulations. Similarly, petroleum firm's exploration project depends on uncertainty over whether oil is present at the given location, but uncertainties over the market price of oil affect many projects. Likewise, a construction company might have many projects threatened by the external risk of an increase in steel or commodity prices. Q3. Briefly discuss the steps to close the project. A lot of text and attention is given to how to start projects, and how to run projects. But process of properly closing down a project is overlooked. Why? Well, since I can say from experience that Ive been guilty of this in the past, here are my reasons, at least:

Implementation and transition to support happened so moving on seems reasonable Have 4-5 other projects Im also managing Just received a new, hot project and Im preparing for kickoff Problem-free implementation means no worries, right?

Look at that listnone of them are good excuses for just basically dropping the ball and the customer post-deployment. Things still need to happen, proper hand-offs may still need to be taken care of, information needs to be transitioned. It will happen anyway through frantic phone calls and emails, so why not take care of it in an organized fashion? Because we say were too busybut that needs to change. Here are my list of five key activities that should happen to ensure proper closure of the project youve just finished. Make sure all pertinent documents and deliverables have been signed off by the customer. You dont want this coming back to you after the project is over especially if there are any question marks our payments outstanding.

Get a final signoff on implementation/solution acceptance. You may have the best relationship in the world with your customer, but dont skip this step. Conduct a lessons learned session with the customer and your team. The information you glean from this type of session can be invaluable to you as a project manager going forward, to your customer as they go forth with the implemented solution, and to your tech support as they provide the ongoing support for the solution with the customer. Hold a proper handoff to tech support. Make sure they have all necessary information in order to properly support the client post-deployment. Keep in touch with the customer post-deployment. You may have a 30 or 60-day agreement to remain available to the customer and for your team to remain available before the formal transition to tech support. But dont just drop them at that point, keep checking back. Its good for your reputation with the customer and for your companys reputation.

Q4. Discuss the various steps of PMIS planning. The success of a PMIS depends on its effective planning. The PMIS is used for many purposes by a project manager like budget estimation of costs, creating a schedule, define the scope, etc. Hence, these should be considered while planning for PMIS. The planning of PMIS includes the following steps: 1. Identify the information needed 2. Capture data 3. Process data into information and store it 4. Communicate information to stakeholders Identify the information needed: Identification of the information that is needed is necessary for improving the decision making and the structure of the PMIS. information requirements of project stakeholders include the recipients of information, the type of information that is needed, which includes format, contents, and level of details, the time the information is required and how (by what media) will it be communicated to them. Capture data: Term Capture data" is used to state a process of preparing and collecting data i.e., as element of a process improvement or similar project. The function of data collection is to attain information to maintain record, to make decisions for vital issues, and to pass information on to others. Data can come from actual observation or from records. Data collected from records is known as secondary data. Data collected from direct observation is known as primary data. It should be ensured that all relevant groups are represented in the data. A formal data collection process is essential as it makes certain that the gathered data are both defined and precise and that subsequent decisions based on opinion embodied in the findings are valid. Data possibly be arranged in tabular form, data array or frequency distribution. Process data into information: An organisation, to achieve its aims, needs to process the data collected into meaningful information. it should be presented in its most useful formats. Data must be processed in a context to give it meaning. Data is transformed into information using mathematical, statistical, or other tools including computer software. Information can be stored in electronic form or hard copies represented in the most useful form.

Communicate information to stakeholders Communication is the process by which information is exchanged between individuals through a common system of symbols, signs, or behavior.

Q5. What are the important approaches to project control? Project control: The term control has several meanings. Those new to project management are initially dismayed by the use of the term control, because they mistakenly equate it with the concept of uthority. In the world of project management, control has very little to do with telling people what to do, dictating their actions or thoughts, or trying to force them to behave in a certain way all of which are common interpretations of control. In project management, the term control is much more analogous to steering a s hip. Its about continually making course adjustments with one main objective in mind bringing the ship into safe harbor, as promised at the start of the voyage. And the successful project voyage includes identifying a specific destination, carefully charting a course to get there, evaluating your location throughout the voyage, and keeping a watchful eye on what lies ahead. Control of the project is exercised through formal and informal processes exercised by the project manager, project team, and stakeholders. The process of conducting reviews and monitoring reports exerts a degree of control over the project. This discussion will, however, focus on the formal processes of control established by the project plan. As a project has a lot of associated uncertainties, project control is essential. (a) Identify output and performance objective. There are three basic performance objectives/standards for a project which a manager is expected to control. These include time schedule (project duration), project cost, and conformance to design specifications which ensure quality. Two common methods to evaluate these objectives are variance analysis and earned value method. However, variance and earned value analysis are not applied to the objective, quality, as there is difficulty in quantifying it. In this case, the project manager may develop his or her own standards or adopt available ones and tries to ensure that they are met. (b)Performance monitoring for schedule and cost. This tells who is to monitor the information and at what frequency. Normally, for a moderate size project, a separate project monitoring cell is created for collecting, analyzing, and reporting information to all concerned for the purpose of information and controlling the project. The task of the group may include: Monitor progress. Calculate variance/earned value. Prepare variance/earned value report and other reports and send them to all concerned. Present the report in review meeting. Compile the measures arrived at in the meeting to deal with variances. Follow up the implementation of suggested measures Frequency of monitoring depends on nature, duration, and importance of projects and the stakeholders need. Time between monitoring may vary from continuous to several days. Elements of project control Manpower-related control - it is lay-off/fire any under-performing staff, Hire staff with needed skills and Assign staff with specific skills to specific activities. Issues comes under this are:

1) PM may be seen as a stern disciplinarian, 2) PM must avoid heavy handed actions, and 3) Fix problems without blaming people Machinery-related control - It is de commission any under-performing equipment, Bring in equipment with appropriate capabilities and Re-assign specific equipment to specific activities. Issues comes under this are: 1) equipment decisions may involve some economic analysis, 2) Equipment-based control easier than manpower- based control and 3) Some trade-off may exist between manpower and equipment utilization. Money-related control - How much money should be spent? , How should it bespent? And PM assisted by: Project accountant and Project Finance Manager Material-related control - Discontinue use of sub-standard material and Seek newsources of superior material.

Importance of Project Controls: The successful performance of a project depends on appropriate planning. The PMBOK Guide defines the use of 21 processes that relate to planning out of the 39 processes for project management, (Globerson & Zwikeal 2002). The execution of a project is based on a robust project plan and can only be achieved through an effective schedule control methodology. The development of a suitable Project Control system is an important part of the project management effort (Shtub, Bard & Globerson 2005).Furthermore, it is widely recognised that planning and monitoring plays a major role as the cause of project failures. Despite the continuous evolution in the project management field, it appears evident that the traditional approach still shows a lack of utilisation of Project Controls and there have been a number of articles published to support the importance of controlling the achievement of project objectives. It has been proved time and again that Project performance can be improved if dedicated Project Controls systems are in place. An IBC2000 Project Control Best Practice Study carried out by IPA identified that good Project Control practices reduce execution schedule slip by 15%. Project Controls cost range from 0.5% to 3% of total project, (including cost accounting), therefore, to break even, Project Control needs to improve cost effectiveness by around 2%. A sample study carried out by the IBC Cost Engineering Committee (CEC) in 1999, showed cost improvements for the projects in the study, was more than 10%. It is noted also that NPV (Net Project Value) also benefits from schedule improvements. Success factors are based on good Project Control practices, which result in good cost and schedule outcomes.

Q6. Describe the project planning process and explain it in detail. Project planning is an essential part of project management. Successful completion of a project is heavily dependent on effective planning. A project plan allows you to complete a project within a specified timeline and a specified budget. Project planning is fundamental in order to avoid failure and disappointment. In project management, effective planning is absolutely required if the individual or group wishes to deliver a finished project on time and on budget. A project schedule will provide all involved with an outline and detailed activities to minimize risk to the final result and delivery. The basics you will get from the schedule include how long the project or any single stage within it will take. But a good schedule should also inform you of the following particular s:a) Who is accountable for each aspect of the project b) The approach chosen to target the problem with c) Major deliverables from the project d) Exact timing of key decisions and points for review Every successful project delivers your future organization and helps it to accomplish its strategic goals. If organizations must flourish and keep up with competitive, its members must be effective at project management. Appropriate, careful planning will ensure that projects will not overrun deadlines and/or pile on unexpected costs. Such a situation would only endanger the anticipated corporate benefits of the organization. The project schedule is the framework on which the actual resource plans and cost breakdowns are mapped.

It makes explicit each stage and activity, which combine to form the entire project. This greater visibility encourages accurate real time status reports and analyses from multiple perspectives. So the ability to build and manage a project schedule is a top priority if one needs to succeed at ones project. Another immense benefit to planning is that in case a problem arises, it functions as an alarm mechanism. At such a point risk management and going through contingencies for various scenarios can occur in order to restrict the damage or compromise resulting from the Problem. One final word of advice, though: a good plan is also a flexible one, so dont be too preoccupied with maintaining its rigid form all through the duration of the project. To establish and operate an effective organization, all managers perform several major functions or activities. These functions enable managers to create a positive work environment and to provide the opportunities and incentives .The key management functions include planning, organizing, directing, controlling. Each of these functions are critical to the success of any manager and organizations. Planning is the process of analyzing the situation, determining the goals/ objectives that will be pursued in the future, And deciding in advance the actions that will be taken to achieve the goals. The following are the steps involved in PLANNING PROCESS 1. Reviewing the current operation situation. 2. Conducting the current operation strengths/ weaknesses. 3. Studying the External environmental factors affecting the operation. 4. Studying the expectations of the operations. 5. Determine the opportunities for improvements/growth and negatives constraints. 6. Based on the above analyses, determine the goals and objectives for the operation for the future period. 7. Based on the objectives, determine your strategy how you are going to achieve the objectives. 8. Based on the strategy, determine the action plans that have to be implemented. 9. Your action plan will determine the resources required manpower, finance and materials 10. Finally a system to monitor the plan / its progress. The steps involved in each process of project planning. The main steps in the identification process of any project are: Identifying initial requirements. For example, when a company identifies a need for a new or improved product due to R & D results or a consumer survey, the management of that company will acknowledge the necessity of improving the existing product in accordance with the consumers demands. Validating them against the project objective. Identifying the criteria such as quality objectives and quantitative requirements for assessing the success of both the final product and the process used to create it. Identifying the framework of the solution. Preparing a template of the framework of solution to illustrate the project feasibility. Preparing relevant charts to demonstrate the techniques of executing the project and its different stages. Preparing a proper project schema of achieving the defined business requirements for the project. Identifying training requirement. .

Making a list of the training programme necessary for the personnel working on the project Identifying the training needs of the individuals working in various functions responsible in the project. Preparing a training plan and a training calendar. Assessing the capabilities and skills of all those identified as part of the project organization. The review process The main steps in the review process of any project are: Instituting a training plan to explain the project team members with the methodologies, technologies and business areas under study. Updating the project schedule to accommodate scheduled training activities Identifying the needs for review and reviewing the project scope Re-evaluating a project with respect to its stages and progress by organising a plan for the review, fixing an agenda to review the project progress and maintaining the reports ready for discussion about stage performance Reviewing the project scope, the objective statement, and the non conformances in the project stages and identifying the need to use the project plan Preparing a proper project plan indicating all the requirements from start to finish of the project and also at every stage of the project Preparing a checklist of items to be monitored and controlled during the course of execution of the project The analysis process The main steps in the analysis process of any project are: Comparing the actual details with that in the plan with reference to project stages Measuring various components of the project and its stages frequently to control the project from deviating and also monitor the performance Deciding how the task, the effort, and the defects are to be tracked; what tools to be used; and what reporting structure and frequency will be followed at various stages Identifying the preventive and corrective steps to be taken in case of any variance Performing root cause analysis for all problems encountered If all the above steps are performed successfully, scoping and planning become effective and the ideal outcomes are achieved. The team must strategies as to how they will work the project with the customer and how they will achieve the end goals of the project successfully and to the customers satisfaction. Then they must write a scope statement to define the project boundaries. The scope, such as what will and will not be done on the project, should be part of the project plan. Developing a Work Breakdown Structure (WBS) is the next step in project planning. This involves detailing all the tasks and sub-tasks that will go into production of the final. Subsequent to preparing WBS, the team plans the project schedule and budget. This comprises of the tasks identified in the work breakdown structure and allocating resources or at least resource positions, if the actual resource names have not been identified yet. The step that follows is deciding on the project organization structure and documenting the proposed project organization structure as a part of the project planning process. Now, the team must identify whether it will be a matrix or hierarchical reporting structure. At last, the manager must put the formal project plan through a formal review process by his project team, possibly senior management if its a visible enough project, and definitely the customer. Now, he must get a formal approval sign-off from the customer and store the document with all other project materials.