ROUNAK KHANDELWAL

1408019475

ASSINGMNET
DRIVE
PROGRAM
SEMESTER
SUBJECT CODE & NAME

SPRING DRIVE 2015

MBA/ MBADS/ MBAFLEX/ MBAHCSN3/ PGDBAN2
II
MB0049 PROJECT MANAGEMENT

BK ID
CREDIT & MARKS

B1632
4Credits, 60 marks

1) Write Short notes on:

a) PERT MODEL: The analysis was focused on the determination of the critical path,
event slacks, and activity floats. For this purpose, we used single time estimates of
activity duration though initially three time estimates were developed for each activity.
Now we consider the variability of project duration. Measures of variability- Variability
in PERT analysis is measured by variance or its square root, i.e. standard deviation.
Variance of a set of numbers is the average squared difference of the numbers in the set
from their arithmetic average. The steps involved in calculating the standard deviation of
the duration of critical path are as follows:
i.

Determine the standard deviation of the duration of each activity on the critical
path.

ii.

Determine the standard deviation of the total duration of the critical path on the
basis of information obtained in following step 1.

iii.

Probability of completion by a specified date.

iv.

Armed with information about mean (T) and standard deviation (a) for critical
path duration, which is normally distributed, we can compute the probability of
completion by a specified date (D) as follows. Find Z = (D T) / S.D, where Z is
known as standard normal variate with mean and variance.

v.

Obtain cumulative probability up to Z by looking at the probability distribution of

the standard normal variety.

b) CPM MODEL: The main focus of CPM analysis is on variations in activity times as a
consequence of changes in resource assignments. For projects considered uncertain, the
PERT model was developed and for projects which are comparatively risk-free the CPM
model was developed. Both the approaches start with the development of the network and
a focal point on the critical path.
The PERT approach is 'probabilistic' while the CPM approach is 'deterministic'. This does
not, however, mean that in CPM analysis we work with single time estimates. Actually
the main focus of CPM analysis is on variations in activity times as a consequence of
changes in resource assignments. These variations are planned plus related to resource
assignments as well as are not caused by random factors outside the control of
management as in the case of PERT analysis. The major focus of CPM analysis is on time
cost relationships and it seeks a project schedule that minimizes total cost.

Assumptions: - The usual assumptions underlying CPM analysis are: The costs
associated with a project can be divided into two components. They are direct
costs and indirect costs. Indirect costs associated with the project increase linearly
with project duration.

Procedure: - CPM analysis seeks to examine the consequences of crashing on total

cost (direct cost plus indirect cost). The procedure used in this respect is generally
as follows:
i.

Obtain the critical path in the normal network. Determine the project
duration and direct cost.

ii.

Examine the cost time slope of activities on the critical path obtained and
crash the activity which has the least slope.

iii.

Determine project duration and cost. Construct the new critical path after
crashing as per step 2.

iv.

Repeat steps 2 and 3 till activities on the critical path (which may change
every time) are crashed.

2) Define project type organization and discuss in detail?

a. Define project type organization in your own words: Organizations will have defined
structures either in the form of line structure as the case of armed forces, functional
structures as any private sector companies, or a mixture of bot In an organization, a
proper and effective human relation system is necessary for the successful completion of
a project. If such a system is not present, the other systems of project management are not
likely to work well, however good they may be.

b. Give a brief outline of project type organization: In a project-type organizational

structure, the employees work for different projects in a team-like structure. Examples are
construction companies, where different teams work on different projects. Teams are put
together for a project. Each project is headed by a project leader.Each team will have
employees to suit its demands and complete the project successfully. Only employees
with requisite specialized skills are considered for project teams. These members of
project team will join back their parent company once the project gets finished. Project is
handled like a small company. All the essential resources and paraphernalia needed to
execute projects are procured for full-time till the project closes out. Employees having
specialized knowledge and exposure to similar project environment will be appointed on
contractual terms to work in a group and deliver the project expectations.

c. Advantages of project type organization: Clear line of authority: The project manager
has complete authority over the project. All the members of the project team are
responsible only to the project manager.

High level of commitment: The project team has a separate and strong identity, and
all members are committed to the project and to each other strongly.
Swift decision making: Because the authority is only with the project manager, the
capacity to make swift decisions is increased.
Simple and flexible: Project-type organizations are structurally flexible and simple,
which makes them comparatively easy to implement.
d. Disadvantages of project-type structure: Duplication of effort: Each project team
is fully staffed, which can result in a duplication of effort in every area from clerical
staff to technological support.
Cost inefficient: The project organization structure can be cost inefficient because of
underutilization of resources or stockpiling equipment for future use.

Stretching out work during slow periods: During slack times, team members may
not work at high level of productivity.

Low level of knowledge transfer: There is low level of knowledge transfer between
projects as employees are committed to working only on one project. So, there is no
source of knowledge transfer and shared functional expertise.

Job insecurity: At the completion of a project, the employees may be fired if there is
no similar type of project.
e. Give a few examples of project type organization: Rapid transit projects,
Construction projects and IT projects. Following the project organization structure of
a company selling rapid transit projects.

3) Answer the following questions

Mention the steps involved in a competitive bid: 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:
i.

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.

ii.

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 is arranged in tabular form, data
array or frequency distribution.

iii.

Process data into information: An organization, 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.

iv.

Communicate information to stakeholders: Communication is the process by

which information is exchanged between individuals through a common system of

symbols, signs, or behavior. To show the importance of communication, Cleland

quotes the following statements: Peter Ducker states that the ability to
communicate, heads the list of criteria for success. Harvard Business Review
reports that the ability to communicate was at the top among 22 personnel
attributes in promotions. A project manager uses communication more than any
other force to manage the project.
Mention the elements/points that must be kept in view when designing, developing and
operating a PMIS (Project Management Information System):
Following elements should be kept in view in the design, development and operation of a
PMIS: The PMIS should support the full range of life cycle including project analysis and
post project review.

Enterprise guidance and project background information must be a part of PMIS.

PMIS include all information coming from a various sources, including formal
reports, informal sources, observations, project review meetings and questioning.

The PMIS must interface with larger organizational information system to permit
smooth, well-organized interchange of information in support of organizational and
project goals.

Only relevant information should be a part of PMIS.

Design of PMIS consists of following four sub-systems: Capture data involves capturing
data from primary as well as secondary sources. Processing data into information. Storing
data/information/reports. Distribute/communicate information.
Each sub-system consists of the following components:
1) Hardware: A computer and its peripheral: Input, output, and storage device. It also
includes communication equipment that facilitates fast transmission and reception of
text, pictures, sound, and animation in the form of electronic data.

2) Software: Sets of instructions that tell the computer how to take data in, how to
process it, how to display information, and how to store data and information.
3) People: It includes IT professionals and users, who analyze information needs,
design, and construct information system, write computer program, and operate and
maintain the system.
4) Procedure: Procedures include priorities in running different applications and the
security measures to achieve optimal and secure operations of the system.
4) Discuss the major contents of the projects final report
Explain the purpose of the project final report: The last step in the project is to summarize
the different stages into a final report. It is very important that the final report contains all the
necessary information regarding your project. Try to keep in mind that you should write the
report so that the reader would be able to recreate all of your steps, if they so desire. There are
a number of factors that can weaken the impact of your final report. These factors include,
but are not limited to: use of unclear or incorrect visuals, poor organization and lack of proofreading. List suggested content of project final report.

The report will need to consist of at least all of the following content:

Abstract

Introduction

Project Design

Implementation of the Project Design and Data Summary

Data Analysis and Inference

Results and Discussion

References

Explain each content and what it should contain:

Abstract: The Abstract is a one page summary of your project that explains your
research question and the most significant findings of your project. You should
consider the abstract as a one page advertisement for your project

Introduction: The Introduction should describe and discuss the research question
you seek to explore. In this section you should propose a study, state its purpose and
explain what questions you hope to answer and why these particular questions are of
interest. The introduction should answer questions such as: How did you choose your
research topic? What is interesting about your question? Why do you think it is
important?

Project Design: The Project Design section should explain how you planned the data
collection portion of the project. For example, if you conducted a survey this section
should, among other things, discuss how you formulated the survey questions, how
you decided what sample size was needed and how you chose your random sample.
For experiments, it should include a detailed description of your experimental design
protocol.

Implementation of the Project Design and Data Summary: The Implementation

of Project Design and Data Summary section should explain how the data was
collected and organized. Discuss whether there were any unexpected difficulties or
problems that occurred during the data collection, and whether these factors may
somehow affect your final analysis. You do not need to hand in the raw data

Data Analysis and Inference: In the Data Analysis and Inference section, you
should include a description of the data analysis and inference you performed on the
data, as well as your conclusions. Make sure that you edit the output you get from
STATA, and only show the output that is relevant to the final results of your project.
Make sure to include all the methods you used and all relevant graphs.

Results and Discussion: In the Results and Discussion section you should give a
detailed interpretation of the major findings of your study. In addition, you can

discuss the following aspects of the project (not necessarily all or restricted to only
these).

References: Finally, at the end of the report, it is important that you include all the
relevant references you used in conducting the project in a separate Reference
section.

5) Write short notes on:

Role of risk management in overall project management: Risk analysis and management
is a process which enables the analysis and management of the risks associated with a project.
Properly undertaken, it will increase the likelihood of successful completion of a project to
cost, time, and performance objectives.
There are a lot of benefits of proper risk management in projects. Organizations can generate
a lot of profit if they deal with uncertain project events in a proactive manner. You can deliver
a project on time, on budget, and with proper quality if you are able to manage the risks
properly. The proper risk management can increase the productivity and efficiency of the
project team. A project life cycle includes the key phases like initiating, planning, executing,
controlling, and closing. The probability of project risk depends on the project life cycle.
Following the relationship between the risks and their probability of happening
Probability of Risks versus Stages of Project Life Cycle: The probability of risk in
different stages of project life cycle. It shows that the probability of risks is higher in the
initial phases in comparison to closing phases. The highlighted point shows the maximum
probability of risk happening. In comparison to probability of risk, the impact of risks is
opposite. The impact of risks is less in the initial stages of a project life cycle and higher in
the closing phases.
Quality assurance: Quality assurance means all the systematic and planned activities
executed within the quality system give confidence that the project will meet the applicable
quality standards. It also comprises the examination of data at stations and centers to validate
that the data are in line with the quality system goals, and to identify errors so that the
required action could be taken on time. A quality system should incorporate procedures that

allow feed back into the measurement and quality control process to avoid the errors from
occurring again. We can apply quality assurance in real-time post measurement, and can also
feed into the quality control process for the subsequent process of a quality system, but
usually it tends to operate in non-real time.
Quality assurance tests make use of a system of metrics to decide whether or not the quality
plan is progressing in an acceptable manner. You can measure project quality with customer
satisfaction effectively by using both qualitative and quantitative metrics. These tests or
quality audits will assist you in forecasting and verifying the accomplishment of goals and
identify need for corrective actions. Additionally, quality assurance tests will also help you in
mapping quality metrics to quality goals, thereby allowing you to report on quality status at
periodic project review meetings in most cases, quality assurance provided by a quality
assurance department or similarly titled organizational unit, but it is not mandatory that only
these departments do this. Quality assurance may be provided to the team managing the
project. It may also be provided to the management of the performing organization (internal
quality assurance) or it may be provided to the customer and others not actively involved in
the work of the project (external quality assurance).

6) What are the common features of project management software? Explain the use of the
features.
Data entry features: Project data and calendar:-A project start date is specified. A calendar
can be used to define the working days and hours for each individual resource on a project.
The calendar is used in calculating the schedule for the project. Most systems provide a
default for the standard working period, such as Monday to Friday from 8:00 AM to 5:00
AM, with an hour for lunch. The calendar can be modified for each resource.
Human resources: Suppose a particular activity needs 2 unskilled person and 1 skilled
person to complete the task. These two resources may be entered separately and will appear
as 2L and 1S on activity description in network. Human resources available: All software
requires periods and amount of resources that are available for the project cost of construction
materials: Materials needed for each task and their estimated costs for the project.

Activity identifier: Each activity of the project is assigned a code or identifier.

Activity description: Each activity has a description. The number of characters should be
within the number of characters specified by the software for the activity name field.
Precedence relationship: There are various options to show the linkage between two
consecutive activities in a network. One common option is Finish-Start type. It means that the
succeeding activity can start only if all preceding activities to it have been completed.
Data entry error: All good management software contains error detection routines that
identify and reports errors. However, there are certain errors which cannot be detected by
software.
Incorrect activity duration: An incorrect activity name. Incorrect precedence logic. An
Incorrect cost data. A wrong resource entered.
Graphics: For a project involving a large number of activities, drawing a correct network,
manually takes a lot of time and effort. One of the important features of PM software is its
ability to generate a variety of charts including network diagram, activity-linked Gantt chart,
and Gantt chart quickly. Further, changes in base line plan are quite easy.
Time analysis: If there is unlimited and flexible resource or if resource can be outsourced,
the network may be prepared at the earliest start time of activities. In the real world, many
projects are managed on this basis. PM packages carry out time analysis which includes
calculation of early start, early finish, late start, and late finish; free slack and total slack with
ease. Manually carrying out time analysis is tedious.
Resources scheduling: Resources scheduling problems are of two types: Resource leveling
where unlimited and flexible resources are available -Resource allocation problem where
resources are limited. In resource leveling, activities are scheduled to minimize the variation
in level of resource deployment. Resource allocation problem is concerned with scheduling
activities in such a way so as to find the shortest project schedule.
Output reports: Most PM software packages have extensive report generation capabilities.
They can generate a range of reports in various forms (graphical, tabular, or textual). The
reports are standard or customized. The content of each report for a recipient is based on a

need-to-know basis and is presented in a particular order. These requirements are met by
two features of the software namely, filtering (editing) and sorting.
Project schedule: Network (based on AON systems), linked Gantt chart, Gantt chart &
Work-to list.
Cost related report: Budgeted vs. actual cost (daily and cumulative) Resources utilization
report.
Progress report: Overall project, milestone chart, critical path Chart showing responsibility
of department/function to carry out particular activities & Progress summary report.
Updating: Updating is the process of producing a fresh set of schedule and other reports to
take account of one or more of the following:

A change to the project parameter, an unexpected increase or decrease in the resource

available, changed cost rate, or new target dates. & A change in network logic due to
change in project scope, design change, etc. & to have a new schedule that take into
account the progress made to date.

Importing/exporting: The process of bringing information into the PM software

from other application such as word processing, spread sheet, etc is called importing.
Similarly, sending information from PM software to other application is called
exporting. The exporting and importing obviates typing/data entry effort and
eliminates the possibility of associated error.

Project monitoring and tracking: Tracking the progress about schedule and cost is
an important aspect of project management. Most PM software packages permit the
users to define a baseline plan and compare the actual progress with respect to those
in the baseline plan.