ProjectManagement

Unit9

Unit9
Structure
9.1Introduction

GuidetoSystematicScientificProjectManagement

9.2NewHorizonsinProjectManagementNineSteps 9.2.1ConceptofTotalEconomics 9.3StagesinaProjectManagementCycleDMAIS 9.4 TheRoleofEffectiveDataManagementintheSuccessofProjectManagement 9.5MeasuringandManagingSuccess 9.6Summary TQs AnswertoSAQsandTQs

9.1Introduction
In this unit we will consider how Systematically implemented Projects are dependent on effective data management systems. Success of a project depends on the scientific methods deployed. Measuringperformancehelpsustounderstandastothefactorswhichcontributedforsuccessand trytoadoptthepracticesforprojectswhichmayhavesimilarrequirementsandactivities.Inaddition totheabovewewillstudyafewmorekeyconcepts NineSteps NewhorizonsinProjectManagement ConceptofTotalEconomics EffectiveDataManagementSuccessofProjectManagement BusinessMetrics ProjectManagementMetrics
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TeamMemberSelection TipsandTricksforsuccessfullyimplementingametricsprogramme

LearningObjectives

1. IdentifytheninestepswhichindicatethelatestdevelopmentsinProjectManagement 2. UnderstandkeyoperationalandDataCommunicationSystems 3. AnalysekeyDataElementsforhierarchyandstructureanOperationalModeland 4. Describe the way Communicationand SystemsManagement areaddressed in Modern Project
Management

9.2 NewHorizonsinProjectManagementNineSteps
Theninestepsmentionedherearenotimplementationtoolsorruleswhichhavetobefollowedfor successinProjectManagement.Theyareexpectedtoshowanewwayoflookingatthesituations byadoptingthemeitherasstepsorasguidingprinciplesinalltransactions.Thesestepsgivea newwayoflookingatvariousfunctionsofmanagement.

Step1Readinesstoacceptdiscontinuityandbeflexible Change is achieved by making incremental changes. It is because it gives an opportunity to all members to accept, implement, verify the impact of the changes on the consequences an move furtherafterconsolidatingthegains.Thusincrementalimprovementsareacceptableonlywhenthe rateofchangeisnotmuch.Moderndevelopmentprocessesareverydynamicandcallforquantum changes.ProjectManagementinthemoderncontextdemandsfasterimplementationbyusinghigh technologyandextensiveoutsourcing.Continuitycannotbeexpectedwhatiscalledforisflexibility andagility.Soaprojectmanagementteamshouldbereadytoworkatagreaterpace.

Step 2

Solving Problems by owning them and Sharing Solutions :Ownership involves

acceptance of what is and a total commitment to resolve the same. The Project Manager should
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seekthehelpofhisteammembersanddevisemeanstosolveproblemsbylookingatthemwithan open mind and evaluating all possibilities. This should become a habit for the entire team and solutionscomeoutfaster.Documentingalltheprocessesbywhichsolutionswereobtained,helpsin recognizingcontributionsaswellasareferenceforsimilarsituations.They canbesharedacross theorganisationforthebenefitofothermanagers.ThisaspecthasopenedtheareaofKnowledge Management.

Step3 BreakingtheStatusQuoMentality:Itmeansthatweacceptaswhatisgoingorisbeing doneisthebestthing.Noattemptneedbemadetomakeitbetter.Thisattitudeistheenemyof creativityandinnovativeness.Researchhasshownthatthehumanmindisalwayscreativeandby forcing it toaccept what is comfortable wearedeprived ofthe gift ofnature. We have to lookfor opportunitiesforimprovementandchangethisistheprincipleofcontinuousimprovementinTQM.

Step4SteppingoutofComfortableZone:Seekingcomfortinourworkareaisunderstandable, buttoavoidtakinganyriskwiththejobstobeperformedisnotagoodpractice.Challengeshaveto be faced, uncertainties have to be tackled and solutions found. This calls for accepting things as theycomenotcomfortablealways.Agreatdealoflearningtakesandgivesopportunitiesforthe projectteamtobuildconfidence. Riskaversionisnotagoodcharacteristicinaleader.

Step 5 Human Capital bypassing Financial :Investment in Human Resources is byfar the mostproductive.Peoplearethegreatassetsofacompany.Thatisthereasontrainingandbenefits giventothepersonnelisnolongerconsideredanexpense,butaninvestment.Thereturnsarelong term.Andtheyimprovewiththepassageoftime.Moreimportantlyqualityispossibleonlybythe effortsandcommitmentofpersonnel.Providingopportunitiesforexcellingintheirperformanceisan importantfactorforretaininggoodemployees.

Step6 TransformWorkCulture:TheProjectManagershouldattempttomaketheplaceofwork to makepeople wantto cometo it. Nowadays,every HR Manager is trying to devise schemes to

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make the place of work to be fun place. Values are the general criteria, standards or guiding principles that determine how people behave inresponseto events and situations. These havea bearingonthecultureofanorganisation.Weareconcernedwiththeinfluencethesehaveonthe work that the employees perform. It determines the way they interact with their colleagues and outside people. Transformation is an indirect outcome of the way business is conducted by the managers. Transparency, ethical behaviour, error tolerance, expression of appreciation, learning atmosphere, constantsearchforexcellence,forbearance,aneyefordetail,compassionaresomeoftheseen andfeltexperiencesthatbringaboutthedesiredchangeintheemployees.Itdoesnotcomeina day.Adeepunderstandingofthewaythesecontributeforbringingaboutchangeandaninnerurge to practice them even in adversity leads to success. Then work will never become a burden, but becomesanopportunitytobejoyfulandfindmeaningtoonesaction.

Step7:Meaningfulencountersmoreimportantthanyearsofexperience By tradition, we have been taught to treat the number of years of experience as a measure of knowledge,wisdomwhichwillhaveabearingonthecorrectnessofthedecisiontaken.Though,time andagain,ithasbeenprovedthatitisnotthecase.Becauseofhierarchiesandstructuresthatthe organizations have, it has been difficult to overcome this. With the explosion in knowledge and changeinworkcultureowingtothecompulsionsofcompetitionandconsequentchangesinwhich work is accomplished, it has become relevant to consider the challenges one has met and successfullyresolvedishisworkinglife.Thesewillindicatethecapabilityofapersontomeetdifficult situationsinfuture.

Step8.SeekingMeaningoutofChange Weshouldconsiderchangeonlywhenitisnecessary oradvantageoustomeetthechallengeswhenthetraditionalapproachhasnotbeensuccessful.The outcomes of change are not always beneficial. It should not be forgotten that before a change is attempted, some prerequisites have to be met. Then the time, money and energy expended in bringing about change become meaningful. We will consider the implementation of TQM as an example.Beforeattemptingtheprocess,weshouldensurethatthevariousproceduresforassuring
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qualityarebeingpracticed.Thattheinstrumentsforassuringqualityarebeingused,calibratedand thepersonneltrainedtousethem. Whenevery facility hasbeenprovided anda high standardof quality has been achieved on a sustainable basis and the existing processes are incapable of assuring zero defects or six sigma standards we should attempt to implement TQM. The organisational culture, managements commitment, the processes of procurement and many other factorsthatDemingstateshavetobeputinplace.Thenthechangeweseekwillhavemeaning.

Step9 EmotionalIntelligence Thisisqualitythatissoughtinmanagers,especiallyProject Managers.Keepingyourcoolwhenthingsgowrongisthebasictenetofthisconcept.Oneofthe most dangerous aspects of the thinking process is to expecting, assuming and favouring. Having takenallmeasuresinthehopethattheresultwillbecertainisunderstandable,butexpectingitasa certaintyputsalotofpressureononeselfandothers.Thiscoupledwiththeothertwofactorscreates biasinonemindanitshowsinthedecisionsandactions.Inaproject,wearedealingwithanumber of uncertainties, including people and their behaviour. Getting upset will reduce the quality of decisions. When the manager exhibits emotional intelligence, others understand and respond properly.

9.2.1ConceptofTotalEconomics
Anysystemofoperationsinwhichmaterialsareacquired,stored,converted,distributedandpaidfor demands that information flow along the chain is mandatory. Type of material, quantity, shape, chemicalcomposition,drawingorspecificationstobemet,supplier,price,taxes,insurance,placeof loading,destination,transport,packaging,modeofpayment andahostofotherdatamovesalong with the material. Value goes on getting added along the supply chain. Economies are effected whentheconsumptionofmaterial,power,movementandtimearereduced.Inventorycostsmoney andhastobekepttotheminimumforachievingtotaleconomy.Allthesedependonproceduresthat havebeenscientificallydesignedandimplementedefficiently.

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SelfAssessmentQuestions1

1. ModerndevelopmentprocessesinthefieldofProjectManagementareverydynamicandcall
for_____ and __________.

2. Oneofthemostdangerousaspectsofthethinkingprocessisto________ , _______and
__________.

3. Valuegoesongettingaddedalongthe________.

9.3StagesinaProjectManagementCycleDMAIS
We can consider the five steps DMAIS as generic for any system of a journey towards excellence.ItishighlyrelevantinProjectManagementforthesimplereasonthatallthestepsgive out indetail the steps to be takenand that they will ensure readinessfor the next. Verificationof implementation is possible with checklists which can be prepared and used by employees at all levels.Theteammemberscanbegiventrainingtofollowthem.Wewillconsiderthemonebyone. 1. Define Thissteprequiresthatwhatissoughttobeachievedisidentifiedinallitsdetail.

Thefollowingaretheinputswhichwilldefinewhatwearegoingtomake: a)Benchmark Thestandardsachievedbythebestintheindustry.Ourproductissettomeet them. b)CustomerRequirement c) ProcessFlowMap Activitiesthattakeplacetoresultintheproductattheendofthem. d) QualityFunctionDeployment Thistoolcomparesthequalitycharacteristicsinourproductwith thoseinourcompetitorsandtheirrelativeimportancetothecustomer.Toachievethem,wefind thetechnicalspecificationswehavetoincorporateinourproduct. e) Project ManagementPlan This includesthe materials, men, activities, schedules, milestones etc.

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2. a)

Measure Measuringtheoutcomesoftheactivities DatacollectionDataabouttheworkthatisdoneandcompareastohowitcorrespondswith whatisrequired

b)

DefectMetrics Thedeviationsthatareintheeffectivepotionoftheworkwhethertheyare acceptableorcantheyberectified.

c)

Sampling Ifthevolumesarehigh,selectafewofthemandinspectthemtoseewhetherthe entirebatchisacceptable

3. Analyze Usethedataonmeasurestoperformanalyses. Toolsusedcanbe a) CauseandEffectDiagramsalsocalledFishboneDiagrams b) FailureModeandEffectAnalysis FMEA c) RootCauseAnalysis d) ReliabilityAnalysis 3. Improve Measurestoremovethedefectsfoundearlierareimplementedforimprovingthe process a) DesignofExperiments Theeffectofchangingvaluesofparametersisdoneinacontrolled way so that the effect of variations are experimentally determined and results used for optimizingtheprocess b) c) RobustDesign Toreducethevariations,theequipmentdesignismaderobust. Tolerances the permitted deviations are made closer, so that the capability of process is increased 4. Standardize When improvements have become consistent, the methods adopted are standardized.

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SelfAssessmentQuestions2
1.BenchmarkThe_____achievedbythe____inthe________. 2.CauseandEffectDiagramsalsocalled__________Diagrams. 3.Measures to remove the defects found earlier are ______________for improving _____ , _____ and_____.

9.3 TheRoleofEffectiveDataManagementintheSuccessofProjectManagement
Data management consists in conducting activities which facilitate in acquiring data, processing it anddistributingit.Acquisitionofdataistheprimaryfunction.Datatobeusefulshouldhavethree importantcharacteristicsrelevancy,sufficiencyandtimeliness.Managementofacquisitionliesin ensuringthatthesearesatisfiedbeforetheyarestoredforprocessinganddecisionstakenonthe analyses. We will have data about customers, suppliers, market conditions, new technology, opportunities,humanresources,economicactivities,governmentregulations,politicalupheavals, all of which affect the way we function. Most of the data go on changing because the aforesaid sources have uncertainty inherent in them. So updating data is a very important aspect of their management. Storingwhatisrelevantinaformthatisavailabletoconcernedpersonsisalsoimportant.Whena project is underway dataflow from all members of the team will be flowing with the progress of activities,shortfallstheyaresufferingfromseekinginstructions,reportingonactionstakenthem.He willhavetoanalysethem,discoverfurtherdatafromothersourcesandseehowhecanusethem and take decisions. Many times he will have to inform and seek sanction from top management. Themanagementwillhavetostudytheimpactontheoverallorganizationalgoalsandstrategiesand conveytheirdecisionstotheemanagerforimplementation.Theappropriatenessofdecisionstaken givenasetofcircumstancesanddataformtheknowledgebasefortheorganisation.BOMBillof MaterialsisaveryimportantdocumentinProjectManagement. It contains details about all materials that go into the project at various stages and has to be continuouslyupdatedasallmembersoftheprojectdependuponitforprovidingmaterialsfortheir
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apportionedareasofexecution.Sinceinformationissharedbyallmembers,thereisanopportunity for utilising some of them when othersdonot need them. To ascertain availability at somefuture point of time, information about orders placed, backlogs, lead times are important for all the members.AproperMISwilltakecareofalltheseaspects.ERPpackageshelpinintegratingdata fromallsourcesandpresentthemtoindividualmembersinthewaytheyrequire.Whenalltheseare doneefficientlytheprojectwillhavenoholdupsanassuresuccess. SelfAssessmentQuestions3 1.Thethreeimportantcharacteristicsofdataare________,___________and_____________. 2. _______helpinintegratingdatafromallsourcesandpresentthemtoindividualmembersinthe waytheyrequire.

9.5MeasuringandManagingSuccess
ProjectManagersarethekeypersonsonwhomtopmanagementdependuponforaccurateperiodic reportsabouttheproject.Sothemanagersarecontinuallyconcernedaboutthemeasurableaspects oftheprojectinprogress.Notallfactswillshowameasureofsuccessofaproject. Thefacts reported may not meananything to the management. Therefore metrics used shouldbe answeringfundamental questions,theanswers to which willbe responsiveto theneeds of the top management.Metricsareimportantwhenpredictingandcontrollingtheoutcomeisimportant.We know what to correct, when to correct and how much to correct the factors that affect the measurement.Measuringisforthepurposeofeffectingcorrectionsasprojectisprogressing.Both theenddeliverablesandthe executionprocesshave to be measured. Theformertobe sure that theysupportthebusinessobjectives.Thelattertomakesurethattheprocessesareaspredicted. Wegivebelowsomemetrics,theirmeanings,measurementsandbenefits: ROI Returnoninvestmentonvariousinvestmentproposals Measure Howlongitwilltaketoforrealisingincreasedrevenueorreducedcosttopaybackthe projectinvestment. BenefitsOptimisationofperformance CustomerSatisfactionMeetingclientsneeds,expectationsandefinedscope
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MeasureDocumentneeds,andexpectationsinaclearlydefinedscope Benefits Removesambiguityofprojectacceptanceandimprovesoverallacceptance. TimeandbudgettoDate Howmuchoftheoriginalbudgetandschedulehaselapsedtodateas againstworkaccomplished Measure Hoursworked,materialsconsumed,milestonesreached. BenefitsAllowsprojectprogresstobemeasuredagainstoriginalestimates Quality Themetricthatwillbeusedtodetermineacceptabilityoftheendproducts. MeasureVariesfromprojecttoprojectcouldbeexpressedasafactorofdefects,responsetime, delayinexecution,numberofmilestonesreachedwithintime, Benefit Removesambiguityaboutprojectacceptance,clientssatisfaction.

OnthesamelineswehavemetricsfortheprojectexecutionasScheduleEstimate,Costestimates, staffproductivity,Averagetimetorepair. Thetopmanagementmaydetermineastothemetricstheywouldliketousetomeasureefficiency, which they can communicate to the client also. Then the project manager will set up suitable repottingsystemsandanalysetheprogressaccordingly.Successistheculminationofallactivities whichbringssatisfactiontoallstakeholders.Lessonslearntshouldbetheguidingfactorsforfuture projects.

SelfAssessmentQuestions4
1.Themetricthatwillbeusedtodetermineacceptabilityoftheendproductsis___________. 2.Periodicreportsshowclearlyindicatethesuccessoftheproject.True/False

9.6 Summary
Inthisunityouhavebeenabletoidentifytheninestepswhichindicatethelatestdevelopmentsin ProjectManagement.Theconceptstounderstandkeyoperationalanddatacommunicationsystems have been explained. You would have learnt how to analyse key data elements for hierarchy and how to structure an operational model. You have also got the description on the way CommunicationandSystemsManagementareaddressedinModernProjectManagement.
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TerminalQuestions:

1. 2. 3. 4. 5. 6.

Whatfactorsofinternalenvironmentareconduciveforacultureofchange?9.2 Whatarethecomponentsofinformationflowinanysystemofoperations?9.2 Stateanyfourmetricsandtheirbenefits9.4 Explaintheprocessofdataacquisition.9.3 WhatarethemainutilitiesofanERPpackage?9.3 ExplainutilityofdatamanagementforBOM?9.3

9.7AnswerstoSELFASSESSMENTQUESTIONSs.:
SELFASSESSMENTQUESTIONS1 1Hightechnologyandextensiveoutsourcing 2Expecting,assuming,favouring 3.supplychain SELFASSESSMENTQUESTIONS2 1Supplychainstandards,best,industry 2Fishbone 3Implemented, SELFASSESSMENTQUESTIONS3 1Relevancy,sufficiencyandtimeliness 2ERPpackages.

SELFASSESSMENTQUESTIONS4 1Quality 2False

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AnswerstoTerminalQuestions
1. Referto9.2 2. Referto9.2 3. Referto9.4 4. Referto9.3 5. Referto9.3 6. Referto9

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