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MB0033
Registration No:520922527
MBA – II SEM
Financial Management - MB0033
Set – 1
Q1. Define Project Management, resource, process and project cycle. Explain the life-cycle of a
project?
Answer: Project management is the discipline of planning, organizing, and managing resources to bring
about the successful completion of specific project goals and objectives. It is sometimes conflated with program
management, however technically a program is actually a higher level construct: a group of related and
somehow interdependent projects.
A project is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be
by funding or deliverables, undertaken to meet unique goals and objectives, usually to bring about beneficial
change or added value. The temporary nature of projects stands in contrast to business as usual (or operations),
which are repetitive, permanent or semi-permanent functional work to produce products or services. In practice,
the management of these two systems is often found to be quite different, and as such requires the development
of distinct technical skills and the adoption of separate management.
Resources: In project management terminology, resources are required to carry out the project tasks. They can
be people, equipment, facilities, funding, or anything else capable of definition (usually other than labour)
required for the completion of a project activity. The lack of a resource will therefore be a constraint on the
completion of the project activity. Resources may be storable or non storable. Storable resources remain
available unless depleted by usage, and may be replenished by project tasks which produce them. Non-storable
resources must be renewed for each time period, even if not utilized in previous time periods.
Process: A project Management process is the management process of planning and controlling the
performance or execution of a project.
Input
Input
Process Process
Output
Project Management Process
Traditionally, project management includes a number of elements: four to five process groups, and a control
system. Regardless of the methodology or terminology used, the same basic project management processes will
be used.
Initiation
The initiation processes determine the nature and scope of the project. If this stage is not performed well, it is
unlikely that the project will be successful in meeting the business’ needs. The key project controls needed here
are an understanding of the business environment and making sure that all necessary controls are incorporated
into the project. Any deficiencies should be reported and a recommendation should be made to fix them.
The initiation stage should include a plan that encompasses the following areas:
• Analyzing the business needs/requirements in measurable goals
• Reviewing of the current operations
• Financial analysis of the costs and benefits including a budget
• Stakeholder analysis, including users, and support personnel for the project
• Project charter including costs, tasks, deliverables, and schedule
After the initiation stage, the project is planned to an appropriate level of detail. The main purpose is to plan
time, cost and resources adequately to estimate the work needed and to effectively manage risk during project
execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances
of successfully accomplishing its goals.
Project planning generally consists of
• determining how to plan (e.g. by level of detail or rolling wave);
• developing the scope statement;
• selecting the planning team;
• identifying deliverables and creating the work breakdown structure;
• identifying the activities needed to complete those deliverables and networking the activities in their
logical sequence;
Executing
Executing consists of the processes used to complete the work defined in the project management plan to
accomplish the project's requirements. Execution process involves coordinating people and resources, as well as
integrating and performing the activities of the project in accordance with the project management plan. The
deliverables are produced as outputs from the processes performed as defined in the project management plan.
In multi-phase projects, the monitoring and controlling process also provides feedback between project phases,
in order to implement corrective or preventive actions to bring the project into compliance with the project
management plan.
In this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope may change. Change is a normal and expected part
of the construction process. Changes can be the result of necessary design modifications, differing site
conditions, material availability, contractor-requested changes, value engineering and impacts from third parties,
to name a few. Beyond executing the change in the field, the change normally needs to be documented to show
what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a
final record to show all changes or, more specifically, any change that modifies the tangible portions of the
finished work.
Closing
Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include
the archiving of the files and documenting lessons learned.
This phase consists of:
• Project close: Finalize all activities across all of the process groups to formally close the project or a
project phase
• Contract closure: Complete and settle each contract (including the resolution of any open items) and
close each contract applicable to the project or project phase
Resources: In project management terminology, resources are required to carry out the project tasks. They
can be people, equipment, facilities, funding, or anything else capable of definition (usually other than labour)
required for the completion of a project activity. The lack of a resource will therefore be a constraint on the
completion of the project activity. Resources may be storable or non storable. Storable resources remain
available unless depleted by usage, and may be replenished by project tasks which produce them. Non-storable
resources must be renewed for each time period, even if not utilised in previous time periods.
Q2. What are the roles and responsibilities of a project manager?
Title Role
Project Manager The person responsible for developing, in conjunction with the
Project Sponsor, a definition of the project. The Project
Manager then ensures that the project is delivered on time, to
budget and to the required quality standard (within agreed
specifications). He/she ensures the project is effectively
resourced and manages relationships with a wide range of
groups (including all project contributors).
The Project Manager is also responsible for managing the work
of consultants, allocating and utilising resources in an efficient
manner and maintaining a co-operative, motivated and
successful team.
Responsibilities
2. Risk prioritization – focus on the highest risk. Prioritization requires analyzing the possible effects of the
risk event in case it actually occurs. This approach requires a quantitative assessment of the risk probability and
the risk consequences. For each risk rate the probability of its happening as low, medium or high. If necessary,
assign probability values in the ranges given for each rating. For each risk, assess its impact on the project as
low, medium, high or very high. Rank the risk based on the probability. Select the top few risk items for
mitigation and tracking.
3. Risk Control: The main task is to identify the actions needed to minimize the risk consequences, generally
called risk mitigation steps. Refer to a list of commonly used risk mitigation steps for various risks from the
previous risk logs maintained by the PM and select a suitable risk mitigation step. The risk mitigation step must
be properly executed by incorporating them into the project schedule. In addition to monitoring the progress of
the planned risk mitigation steps periodically revisit project. The results of this review are reported in each
milestone analysis report. To prepare this report, make fresh risk analysis to determine whether the priorities
have
Risk Analysis
The first step in risk analysis is to make each risk item more specific. Risks such as, “Lack of Management buy
in,” and “people might leave,” are a little ambiguous. In these cases the group might decide to split the risk into
smaller specific risks, such as, “manager Jane decides that the project is not beneficial,” “Database expert might
leave,” and “Webmaster might get pulled off the project.” The next step is to set priorities and determine where
to focus risk mitigation efforts. Some of the identified risks are unlikely to occur, and others might not be
serious enough to worry about. During the analysis, discuss with the team members, each risk item to
understand how devastating it would be if it did occur, and how likely it is to occur. For example, if you had a
risk of a key person leaving, you might decide that it would have a large impact on the project, but that it is not
very likely. In the process below, we have the group agree on how likely it thinks each risk item is to occur,
using a simple scale from 1 to 10 (where 1 is very unlikely and 10 is very likely). The group then rates how
serious the impact would be if the risk did occur, using a simple scale from 1 to 10 (where 1is little impact and
10 is very large). To use this numbering scheme, first pick out the items that rate 1 and 10, respectively. Then
rate the other items relative to these boundaries. To determine the priority of each risk item, calculate the
product of the two values, likelihood and impact. This priority scheme helps push the big risks to the top of the
list, and the small risks to the bottom. It is a usual practice to analyze risk either by sensitivity analysis or by
probabilistic analysis. In sensitivity analysis a study is done to analyse the changes in the variable values
because of a change in one or more of the decision criteria. In the probability analysis, the frequency of a
particular event occurring is determined, based on which it average weighted average value is calculated.
Each outcome of an event resulting in a risk situation in a risk analysis process is expressed as a probability.
Risk analysis can be performed by calculating the expected value of each alternative and selecting the best
alternative.
Ex: Now that the group has assigned a priority to each risk, it is ready to select the items to mange. Some
projects select a subset to take action upon, while others choose to work on all of Project the items. To get
started, you might select the top 3 risks, or the top 20%, based on the priority calculation.
A subset of project management that includes the processes required to ensure that the various elements of the
project are properly coordinated. It consists of:
• Project plan development—integrating and coordinating all project plans to create a consistent,
coherent document.
• Project plan execution—carrying out the project plan by performing the activities included therein.
• Integrated change control—coordinating changes across the entire project.
A subset of project management that includes the processes required to ensure that the project includes all the
work required, and only the work required, to complete the project successfully. It consists of:
A subset of project management that includes the processes required to ensure timely completion of the project.
It consists of:
• Activity definition—identifying the specific activities that must be performed to produce the various
project deliverables.
• Activity sequencing—identifying and documenting interactivity dependencies.
• Activity duration estimating—estimating the number of work periods that will be needed to complete
individual activities.
A subset of project management that includes the processes required to ensure that the project is completed
within the approved budget. It consists of:
• Resource planning—determining what resources (people, equipment, materials) and what quantities of
each should be used to perform project activities.
• Cost estimating—developing an approximation (estimate) of the costs of the resources needed to
complete project activities.
• Cost budgeting—allocating the overall cost estimate to individual work activities.
A subset of project management that includes the processes required to make the most effective use of the
people involved with the project. It consists of:
Risk management is the systematic process of identifying, analyzing, and responding to project risks. It includes
maximizing the probability and consequences of positive events and minimizing the probability and
consequences of adverse events to project objectives. It includes:
• Risk management planning—deciding how to approach and plan the risk management activities for a
project.
• Risk identification—determining which risks might affect the project and document their
characteristics.
• Qualitative risk analysis—performing a qualitative analysis of risks and conditions to prioritize their
effects on project objectives.
A subset of project management that includes the processes required to acquire goods and services to attain
project scope from outside the performing organization. It consists of:
• Procurement planning—determining what to procure and when.
• Solicitation planning—documenting product requirements and identifying potential sources.
• Solicitation—obtaining quotations, bids, offers, or proposals, as appropriate.
Q6. List out the macro issues in project management and explain each.
a) Evolving key success factors (KSF) upfront: In order to provide complete stability to fulfilment of
goals, one needs to constantly evaluate from time to time, the consideration of what will constitute the
success of completing a project and assessing its success before completion. The KSF should be
evolved based on a basic consensus document (BCD). KSF will also provide an input to effective exit
strategy (EES). Exit here does not mean exit from the project but from any of the drilled down
elemental activities which may prove to be hurdles rather than contributors.
b) Empowerment Title (ET): ET reflects the relative importance of members of the organisation at three
levels.
i) Team members empowered to work within limits of their respective allocated
responsibilities the major change from bureaucratic systems is an expectation from theses
members to innovate and contribute to tome and cost.
ii) Group leaders are empowered additionally to act independently towards client expectation
and are also vested with some limited financial powers.
iii) Managers are empowered further to act independently but to maintain a scientific balance
among time, cost, expectation and perception, apart from being a virtual advisor to the top
management.
a) Partnering Decision making (PDM): PDM is a substitute to monitoring and control a senior with
better decision making process with work closely with the project managers as well as members to plan
what based can be done to manage the future better from past experience. The key here is the active
participation of members in the decision making process. The ownership is distributed among all
irrespective of levels the term equally should be avoided here since ownership is not quantifiable. The
right feeling of ownership is important.
The PD process is made scientific through:
a) Management by exception (MBE): “No news is good news”. If a member wants help he or she
located a source and proposed to the manager only if such help is not accessible for free. Similarly a
member should believe that a team leaders silence is a sign of approval should not provoke comments
through excessive seeking of opinions. In short leave people alone and let situation perform the
demanding act. The bond limit of MBE can be evolved depending on the sensitivity of the nature and
size of the project.
MBA – II SEM
Financial Management - MB0033
Set – 2
2. Explain the relevance of work breakdown structure in determine responsibility area. Explain
in detail GDM and its key features?
The Global delivery model (GDM) is adopted by an industry or business such that it has a capability
to plan design, deliver and serve to any customer or client worldwide with speed, Accuracy, Economy
and reliability.
If the detailed data collection, calculation of benefits and costs, and capitalization data from which Return on
Investment (ROI) is derived was not required for a particular project, then it may not be realistic or practical to
require the retrofit calculation of ROI once the project is added to the Review portfolio. In such a case, it is
recommended that a memorandum of record be developed as a substitute for ROI. The memorandum should
provide a brief history of the program, a description of the major benefits realized to date with as much
Quantitative data as possible and a summary of the process used to identify and select system enhancements.
Some of the major benefits experienced by sites that installed the information system that would be important to
include in the memorandum are: a) Decommissioning of mainframe computers
b) Reduction/redirection of labour
c) Elimination of redundant systems
d) Ability to more cost effectively upgrades all sites with one standard upgrade package.
In each case above, identify the specific site, systems, and labour involved in determining the cited benefit.
Identify any costs or dollar savings that are known or have been estimated. The memorandum will be used as
tool for responding to any future audit inquiries on project ROI. For the Project Management Review; it is
recommended that the project leader replace the text on the ROI document through
(1) A note stating which stage of its cycle the project is in;
(2) A bulleted list of the most important points from the memorandum of record; and
(3) A copy of the memorandum of record for the Review repository.
In subsequent Reviews of the information system, the ROI slide can be eliminated from the package. There is
one notable exception to this guidance. Any internal use software project in the maintenance phase of its
lifecycle that adds a new site or undertakes an enhancement or technology refresh that reaches the cost threshold
established by Standard will need to satisfy capitalization requirements. It requires all agencies to capitalize
items acquired or developed for internal use if the expected service life is two or more years and its cost meets
or exceeds the agency’s threshold for internal use software. The standard requires capitalization of direct and
indirect costs, including employee salaries and benefits for both Federal and Contractor employees who
materially participate in the Software project. Program managers are considered to be the source of cost
information for internal use software projects. If capitalization data is collected for the project in the future, the
project would be expected to calculate and track its ROI.
Always aim one step higher in performance usually; high technology development has a long gestation period.
By the time the product is perfected, it might have become obsolete. This necessitates that the period be
shortened. The other alternative is to make technology development futuristic i.e. keeps the aim or target one
step beyond what is required. Combination of both will yield better results. Using principles of concurrent
engineering, we can start building components as developed and assembling on ad hoc basis and testing them
and making changes taking into consideration any new requirements. Every effort to make the product
Contemporary will improve the competitive advantage. Build concurrency into every activity Building
concurrency into every activity is essential to reduce the development cycle time and to counter the technology
obsolescence. Many of the tasks that are normally done in a serial fashion can be done in parallel by
synchronizing the flow of information. The practices of the concurrent engineering where the design of the
product and all its associated processes are carried out simultaneously based on team work and participation.
Would not only help in reducing the development cycle time, but also improves the product functionality with
regard to requirements. Concurrency can be accomplished in many ways both for product development as well
as technology transfer, user evaluation and production.
The key objective of an ERP system is to integrate information and processes from all functional divisions of an
organization and merge it for effortless access and structured workflow. The integration is typically
accomplished by constructing a single database repository that communicates with multiple software
applications providing different divisions of an organization with various business statistics and information.
An ERP system would qualify as the best model for enterprise wide solution architecture, if it chains all the
below organizational processes together with a central database repository and a fused computing platform.
Manufacturing
Engineering, resource & capacity planning, material planning, workflow management, shop floor management,
quality control, bills of material, manufacturing process, etc.
Financials
Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing
(contract/service)
Human Resource
Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people management
Inventory management, supply chain planning, supplier scheduling, claim processing, sales order
administration, procurement planning, transportation and distribution
Projects
Sales and marketing, service, commissions, customer contact and after sales support
For example: The financials could not coordinate with the procurement team to plan out purchases as per the
availability of money.
• Consulting Services - are responsible for the initial stages of ERP implementation where they help an
organization go live with their new system, with product training, workflow, improve ERP's use in the
specific organization, etc.
• Customization Services - work by extending the use of the new ERP system or changing its use by
creating customized interfaces and/or underlying application code. While ERP systems are made for
many core routines, there are still some needs that need to be built or customized for a particular
organization.
The ERP implementation process goes through five major stages which are Structured Planning, Process
Assessment, Data Compilation & Cleanup, Education & Testing and Usage & Evaluation.
1. Structured Planning: is the foremost and the most crucial stage where an capable project team is
selected, present business processes are studied, information flow within and outside the organization is
scrutinized, vital objectives are set and a comprehensive implementation plan is formulated.
2. Process Assessment: is the next important stage where the prospective software capabilities are
examined, manual business processes are recognized and standard working procedures are constructed.
3. Data Compilation & Cleanup: helps in identifying data which is to be converted and the new
information that would be needed. The compiled data is then analyzed for accuracy and completeness,
throwing away the worthless/unwanted information.
Advantages of ERP Systems
There are many advantages of implementing an EPR system. A few of them are listed below:
While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here
are some of the most common obstacles experienced:
Growing realization that sustainable identifier infrastructure is required to deal with the vast amount of digital
assets being produced and stored within universities. PILIN is a particular challenge for e-research communities
where massive amount of data are being generated without any means of managing this date over any length of
time. The broad objectives are to:
I. Support adoption and use of persistent identifiers and shared persistent identifier management services
by the project stakeholders.
II. Plan for a sustainable, share identifier management infrastructure that enables persistence of identifiers
and associated services over archival lengths of time.
III. Deploying a worldwide site consolidated solution for exchange sever 2003 at Microsoft.
IV. Pictures
V. Using Microsoft exchange server 2003 to consolidate more than 70 messaging sites worldwide into
seven physical locations.