Name Anil Kumar Joshi

Roll No. 520949950

Course & Semester MBA Semester – II

Subject Name & Code PROJECT MANAGEMENT – MB0033

Assignment No. Set – 1

LC name & Code NIPSTec LTD. 1640

Date of Submission

Session FEB – 2010 (Spring 2010)

Q1. Explain briefly the life cycle of a project.

Ans1. The Project Life Cycle refers to a logical sequence of activities to

accomplish the project’s goals or objectives. Regardless of scope or complexity,
any project goes through a series of stages during its life. There is first an
Initiation or Birth phase, in which the outputs and critical success factors are
defined, followed by a Planning phase, characterized by breaking down the
project into smaller parts/tasks, an Execution phase, in which the project plan is
executed, and lastly a Closure or Exit phase, that marks the completion of the
project. Project activities must be grouped into phases because by doing so, the
project manager and the core team can efficiently plan and organize resources
for each activity, and also objectively measure achievement of goals and justify
their decisions to move ahead, correct, or terminate. It is of great importance to
organize project phases into industry-specific project cycles. Why? Not only
because each industry sector involves specific requirements, tasks, and
procedures when it comes to projects, but also because different industry sectors
have different needs for life cycle management methodology. And paying close
attention to such details is the difference between doing things well and excelling
as project managers.

Diverse project management tools and methodologies prevail in the different

project cycle phases. Let’s take a closer look at what’s important in each one of
these stages:

1) Initiation

In this first stage, the scope of the project is defined along with the approach to
be taken to deliver the desired outputs. The project manager is appointed and in
turn, he selects the team members based on their skills and experience. The
most common tools or methodologies used in the initiation stage are Project
Charter, Business Plan, Project Framework (or Overview), Business Case
Justification, and Milestones Reviews.

2) Planning

The second phase should include a detailed identification and assignment of

each task until the end of the project. It should also include a risk analysis and a
definition of a criteria for the successful completion of each deliverable. The
governance process is defined, stake holders identified and reporting frequency
and channels agreed. The most common tools or methodologies used in the
planning stage are Business Plan and Milestones Reviews.
3) Execution and controlling

The most important issue in this phase is to ensure project activities are properly
executed and controlled. During the execution phase, the planned solution is
implemented to solve the problem specified in the project's requirements. In
product and system development, a design resulting in a specific set of product
requirements is created. This convergence is measured by prototypes, testing,
and reviews. As the execution phase progresses, groups across the organization
become more deeply involved in planning for the final testing, production, and
support. The most common tools or methodologies used in the execution phase
are an update of Risk Analysis and Score Cards, in addition to Business Plan
and Milestones Reviews.

4) Closure

In this last stage, the project manager must ensure that the project is brought to
its proper completion. The closure phase is characterized by a written formal
project review report containing the following components: a formal acceptance
of the final product by the client, Weighted Critical Measurements (matching the
initial requirements specified by the client with the final delivered product),
rewarding the team, a list of lessons learned, releasing project resources, and a
formal project closure notification to higher management. No special tool or
methodology is needed during the closure phase.
Q2. Examine the Tools used in project planning.

Ans2. Here are examples and explanations of four commonly used tools in
project planning and project management, namely: Brainstorming, Fishbone
Diagrams, Critical Path Analysis Flow Diagrams, and Gantt Charts. Additionally
and separately see business process modelling and quality management, which
contain related tools and methods aside from the main project management
models shown below.

The tools here each have their strengths and particular purposes, summarised as
a basic guide in the matrix below.
Matrix key:
B = Brainstorming
F = Fishbone/Ishikawa Diagrams *** -main tool
C = Critical Path Analysis Flow Diagrams ** - optional/secondary tool
G = Gantt Charts * -sometimes useful

B F C G
Project brainstorming and initial concepts, ideas,
*** **
structures, aims, etc
Gathering and identifying all elements, especially causal
* *** **
and hidden factors
Scheduling and timescales ** ***
Identifying and sequencing parallel and interdependent
* *** *
activities and stages
Financials - costings, budgets, revenues, profits,
* * ** ***
variances, etc
Monitoring, forecasting, reporting * ** ***
Troubleshooting, problem identification, diagnosis and
** *** ** *
solutions
'Snapshot' or 'map' overview - non-sequential, non-
** ***
scheduled
Format for communications, presentations, updates,
* * ***
progress reports, etc

Brainstorming
Brainstorming is usually the first crucial creative stage of the project management
and project planning process. See the brainstorming method in detail and
explained separately, because it many other useful applications outside of project
management.

Unlike most project management skills and methods, the first stages of the
brainstorming process is ideally a free-thinking and random technique.
Consequently it can be overlooked or under-utilized because it not a natural
approach for many people whose mains strengths are in systems and processes.
Consequently this stage of the project planning process can benefit from being
facilitated by a team member able to manage such a session, specifically to help
very organised people to think randomly and creatively.

Fishbone diagrams
Fishbone diagrams are chiefly used in quality management fault-detection, and in
business process improvement, especially in manufacturing and production, but
the model is also very useful in project management planning and task
management generally.

Within project management fishbone diagrams are useful for early planning,
notably when gathering and organising factors, for example during brainstorming.
Fishbone diagrams are very good for identifying hidden factors which can be
significant in enabling larger activities, resources areas, or parts of a process.

Fishbone diagrams are not good for scheduling or showing interdependent time-
critical factors.

Fishbone diagrams are also called 'cause and effect diagrams' and Ishikawa
diagrams, after Kaoru Ishikawa (1915-89), a Japanese professor specialising in
industrial quality management and engineering who devised the technique in the
1960s.

Ishikawa's diagram became known as a fishbone diagram, obviously, because it

looks like a fishbone:
A fishbone diagram has a central spine running left to right, around which is built
a map of factors which contribute to the final result (or problem).

For each project the main categories of factors are identified and shown as the
main 'bones' leading to the spine.

Into each category can be drawn 'primary' elements or factors (shown as P in the
diagram), and into these can be drawn secondary elements or factors (shown as
S). This is done for every category, and can be extended to third or fourth level
factors if necessary.

The diagram above is a very simple one. Typically fishbone diagrams have six or
more main bones feeding into the spine. Other main category factors can include
Environment, Management, Systems, Training, Legal, etc.

The categories used in a fishbone diagram should be whatever makes sense for
the project. Various standard category sets exist for different industrial
applications, however it is important that your chosen structure is right for your
own situation, rather than taking a standard set of category headings and hoping
that it fits.

At a simple level the fishbone diagram is a very effective planning model and tool
- especially for 'mapping' an entire operation.

Where a fishbone diagram is used for project planning of course the 'Effect' is
shown as an aim or outcome or result, not a problem.

The 'Problem' term is used in fault diagnosis and in quality management

problem-solving. Some fishbone diagrams can become very complex indeed,
which is common in specialised quality management areas, especially where
systems are computerised.

This model, and the critical path analysis diagram are similar to the even more
complex diagrams used on business process modelling within areas of business
planning and and business process improvement.

Project critical path analysis (flow diagram or chart)

'Critical Path Analysis' sounds very complicated, but it's a very logical and
effective method for planning and managing complex projects. A critical path
analysis is normally shown as a flow diagram, whose format is linear (organised
in a line), and specifically a time-line.

Critical Path Analysis is also called Critical Path Method - it's the same thing -
and the terms are commonly abbreviated, to CPA and CPM.

A commonly used tool within Critical Path Analysis is PERT

(Program/Programme/Project Evaluation and Review Technique) which is a
specialised method for identifying related and interdependent activities and
events, especially where a big project may contain hundreds or thousands of
connected elements. PERT is not normally relevant in simple projects, but any
project of considerable size and complexity, particularly when timings and
interdependency issues are crucial, can benefit from the detailed analysis
enabled by PERT methods. PERT analysis commonly feeds into Critical Path
Analysis and to other broader project management systems, such as those
mentioned here.

Critical Path Analysis flow diagrams are very good for showing interdependent
factors whose timings overlap or coincide. They also enable a plan to be
scheduled according to a timescale. Critical Path Analysis flow diagrams also
enable costings and budgeting, although not quite as easily as Gantt charts
(below), and they also help planners to identify causal elements, although not
quite so easily as fishbone diagrams (below).

This is how to create a Critical Path Analysis. As an example, the project is a

simple one - making a fried breakfast.

First note down all the issues (resources and activities in a rough order), again
for example:

Assemble crockery and utensils, assemble ingredients, prepare equipment,

make toast, fry sausages and eggs, grill bacon and tomatoes, lay table, warm
plates, serve.

Note that some of these activities must happen in parallel - and crucially they are
interdependent. That is to say, if you tried to make a fried breakfast by doing one
task at a time, and one after the other, things would go wrong. Certain tasks must
be started before others, and certain tasks must be completed in order for others
to begin. The plates need to be warming while other activities are going on. The
toast needs to be toasting while the sausages are frying, and at the same time
the bacon and sausages are under the grill. The eggs need to be fried last. A
Critical Path Analysis is a diagrammatical representation of what needs done and
when. Timescales and costs can be applied to each activity and resource. Here's
the Critical Path Analysis for making a fried breakfast:

This Critical Path Analysis example below shows just a few activities over a few
minutes. Normal business projects would see the analysis extending several
times wider than this example, and the time line would be based on weeks or
months. It is possible to use MS Excel or a similar spreadsheet to create a
Critical Path Analysis, which allows financial totals and time totals to be planned
and tracked. Various specialised project management software enable the same
thing. Beware however of spending weeks on the intricacies of computer
modelling, when in the early stages especially, a carefully hand drawn diagram -
which requires no computer training at all - can put 90% of the thinking and
structure in place. (See the details about the most incredible planning and
communications tool ever invented, and available for just a tiny fraction of the
price of all the alternatives.)

project critical path analysis flow diagram example

Gantt charts
Gantt Charts (commonly wrongly called gant charts) are extremely useful project
management tools. The Gantt Chart is named after US engineer and consultant
Henry Gantt (1861-1919) who devised the technique in the 1910s.

Gantt charts are excellent models for scheduling and for budgeting, and for
reporting and presenting and communicating project plans and progress easily
and quickly, but as a rule Gantt Charts are not as good as a Critical Path
Analysis Flow Diagram for identifying and showing interdependent factors, or for
'mapping' a plan from and/or into all of its detailed causal or contributing
elements.

You can construct a Gantt Chart using MSExcel or a similar spreadsheet. Every
activity has a separate line. Create a time-line for the duration of the project (the
breakfast example shows minutes, but normally you would use weeks, or for very
big long-term projects, months). You can colour code the time blocks to denote
type of activity (for example, intense, watching brief, directly managed, delegated
and left-to-run, etc.) You can schedule review and insert break points. At the end
of each line you can show as many cost columns for the activities as you need.
The breakfast example shows just the capital cost of the consumable items and a
revenue cost for labour and fuel. A Gantt chart like this can be used to keep track
of progress for each activity and how the costs are running. You can move the
time blocks around to report on actuals versus planned, and to re-schedule, and
to create new plan updates. Costs columns can show plan and actuals and
variances, and calculate whatever totals, averages, ratios, etc., that you need.
Gantt Charts are probably the most flexible and useful of all project management
tools, but remember they do not very easily or obviously show the importance
and inter-dependence of related parallel activities, and they won't obviously show
the necessity to complete one task before another can begin, as a Critical Path
Analysis will do, so you may need both tools, especially at the planning stage,
and almost certainly for large complex projects.
Gantt chart example

A wide range of computerised systems/software now exists for project

management and planning, and new methods continue to be developed. It is an
area of high innovation, with lots of scope for improvement and development. I
welcome suggestions of particularly good systems, especially if inexpensive or
free. Many organizations develop or specify particular computerised tools, so it's
a good idea to seek local relevant advice and examples of best practice before
deciding the best computerised project management system(s) for your own
situation.

Project planning tools naturally become used also for subsequent project
reporting, presentations, etc., and you will make life easier for everyone if you
use formats that people recognize and find familiar.
Q3. Describe the various steps involved in monitoring and controlling a
project

Ans:- Project Monitoring and Control: Any project aimed at delivering a product
or a service has to go through phases in a planned manner in order to meet the
requirements. It is possible to work according to the project plan only by careful
monitoring of the project progress. It requires establishing control factors to keep
the project on the track of progress. The results of any stage in a project,
depends on the inputs to that stage. It is therefore necessary to control all the
inputs and the corresponding outputs from a stage. A project manager may use
certain standard tools to keep the project on track. The project manager and the
team members should be fully aware of the techniques and methods to rectify
the factors influencing delay of the project and its product. The various steps
involved in monitoring and controlling a project from start to end are as follows –

Preliminary work – the team members understand the project plans, project
stage schedule, progress controls, tracking schedules, summary of the stage
cost and related worksheets. All the member has to understand the tolerances in
any change and maintain a change control log. They must realize the need and
importance of quality for which they have to follow strictly a quality review
schedule and frequently discuss on the quality agendas. They must understand
the stage status reports, stage end reports, stage end approval reports.

Project Progress – The members must keep a track of the project progress and
communicate the same to other related members of the project. They must
monitor and control project progress, through the use of regular check points,
quality charts, and statistical tables, control the quality factors which are likely to
deviate from expected values as any deviation may result in changes to the
stage schedule. The project manager ensures that these changes are made
smoothly and organizes review meeting with the project management group.

Stage Control – The manager must establish a project check point cycle. For this
suitable stage version control procedures may be followed. The details are to be
documented stage wise. Project files have to be frequently updated with suitable
version control number and revision status should be maintained for each
change. Team members are identified who will exercise controls at various points
of the project.

Resources – Plan the resources required for various stage of the project. Brief
both the project team and the key resources about the objectives of every stage,
planned activities, products, organization, metrics and project controls
Quality Control – This is very important in any project. Quality control is possible
if the project members follow the quality charts and norms very strictly.

Schedule Quality Review – It is recommended that quality review be scheduled

at the beginning of the stage and also ending of every stage.

Agenda for quality review – create and distribute a quality review agenda
specifying the objective, products, logistics, roles, responsibilities and time frame.
Conduct quality review – the quality review is to be conducted in a structured and
formal manner. Quality review should focus on product development and its
quality factors. Focus on whether it meets the prescribed quality standard.

Follow up - QR complete product status revised from ‘In progresses to ‘QR

Complete’. Follow up the actions planned in strict manner which ensures
conformity to the standards.

Review quality control procedures – verify that the quality objectives for each
product are appropriate and that all participants are satisfied both with the
process and its outcome.

The Control Of The Project Process And Project Progress Control

a) Monitor Performance: The team members log in details of actual start date,
actual finish date, actual hours worked per task, estimated hours to complete the
task, elapsed time in hours to compete the task, any miscellaneous costs
incurred during a stage. These inputs become the base to monitor the
performance of the project and its stages.

b) Update Schedule-Update the schedule for actual start date for tasks started,
actual finish date for tasks finished, actual hours worked per task, latest
estimated work in hours to complete the task.

• Update costs - Update the stage cost summary worksheet with actual
costs incurred this period, estimated remaining costs. Miscellaneous costs
will be automatically updated from the scheduler, since they are calculated
from actual work.
• Re-plan stage schedule-Review the tracking Gantt and Cost workbook
and identify any deviation from the baseline. Establish why the deviation
has occurred. Refer back to the project control factors to help determine
the appropriate corrective action and adjust the schedule accordingly.
Determine if the stage has exceeded the progress, cost and quality
tolerance levels agreed with the project management team. Review status
of open issues and determine any further action required on these issues.
Review the status of any outstanding quality reviews Review any new
change requests.
 • Conduct team status review- Conduct a status meeting with the project
team. Items for discussion are achievements this period planned activities
that are incomplete or overdue, activities for the next period, new issues
identified this period, issues closed this period, summary of results of
quality reviews , summary of schedule and cost status, suggested
revisions to the plan.
• Create status report – The status report provides a record of current
achievement and immediate expectations of the project. The status has to
be effectively communicated to all interested parties.
• Create Flash report - summarize the accomplishments for the month,
schedule status, upcoming tasks for the month and any major issues.
Distribute to the project team and project management team
• Project Status Reports - As discussed earlier, the status report provides a
record of current achievements and immediate expectations of the project.

- A weekly status report includes:

- Accomplishments during the period

- Items not completed during the period

- Proposed activities for the next period

- Any predicted slippage to the stage schedule, along with cause and
corrective action.

- Any predicted cost overrun along with cause and corrective action.

Approvals – Project stage reviews and the decisions taken and actions planned
need to be approved by the top management. The goals of such review are to
improve quality by finding defects and to improve productivity by finding defects
in a cost effective manner. The group review process includes several stages like
planning, preparation and overview a group review meeting and rework
recommendations and follow-up.

Change Control
Controlling the changes in the project is possible through a proper change
management process and using necessary tools for controlling the change.
Change control is necessary to control the increase of work at various stages of
project and to manage effectively the disruptions in the stages, if any. These
factors may affect the progress of the project, resulting in deviations from the
stage schedules, project and stage cost and project scope.

Changing Project Management Process

The processes involved in bringing about a change are the following:
i. Request for a change- Identify need for a change based on which a formal
request from either a member of the project team or a client or a coordinator or
Key stakeholder to make a change is to be made.

ii. Identify Alternate Solutions – Evaluate the change request and identify several
alternative solutions. Assess the alternatives with respect to the functional scope,
schedule, effort and cost.

iii. Decide on the Actions for the change – Present the change request,
alternative solutions and recommendation to the project management team. The
project management team is required to accept the recommendation, choose an
alternative solution, or request further investigation.

iv. Implement change – make appropriate schedule and other project plan
adjustments to accommodate the change, communicate these to team members,
monitor progress and execute quality control on the changes.

Tools for Changing a process

There are various tools which can be used to bring about a change in a process.
All such tools can be mainly classified into the following two types-

a) Change Management System (CMS) – It is a methodology which requires

collection of all formal documented procedures, defining how project
performance will be monitored and evaluated, how project plans could be
updated, how various measures can be implemented to control the change
process. These procedures may be unique to an organization based on their
project needs. It also includes procedures to handle the changes that may be
approved without prior review, so that the evolution of baseline can be
documented.

b) Configuration Management (CM) – Identify the configuration items and define

the naming and numbering scheme, structure the changes, define a backup
procedure, and follow the methods for tracking the status of configuration items.
Identify and define the responsibility and authority of the CMS.

To Understand The Post Closure Activities Along With The Way Of Reporting
And Documentation

Project Closure

Any project that is planned properly and executed as per the plan will also close
successfully. For successful completion of a project every aspect of the project
should be monitored and controlled.

Completion of all activities and benefits

The closure of a project may result in the following benefits –

1. It implies that on successful completion of a project, it has not drifted from

its intended course and plans. Otherwise it would have resulted in a
change and may also kick start another project affecting the main project.
2. The project member are acknowledged for the completion of the project,
motivating them to take up more projects wherein the members would be
able to confidently handle and take care of all the problems based upon
their learning from earlier project.
3. It results in setting up of processes for continued development and
improvement of the final product of any project forthcoming.
4. It results in setting up of improved standard process and estimating
models for this type of future projects.
5. It enables resource redeployment.

The deliverable at the end of each stage could be –

• A set of specified outputs for each stage of the project

• New products or modified existing product
• Items that may be less easy to distinguish like parameter setup data
transfer, staff training etc.

Post Implementation Review

After every stage of a project is implemented, it may so happen that there could
be a minor change or modification which has to be reviewed. A review may by in
the following form –

a) Final product review – The product obtained after every stage must meet the
requirements of that stage. If it completely meets the stated objectives then focus
on the issues of maintenance of the processes and product performance. If the
final product does not completely meet the objectives then identify the variations
in the product and analyze the variation. Study the factors responsible for the
change and evaluate each one separately.

b) Outstanding project work review – many a times it is found that there may be
some item of the project which is still not in its stage finished form. It may be
insignificant as it may be a byproduct of that stage not required immediately for
the next stage. Then the items that are open should be resolved and necessary
steps be taken to close such open items.

c) Project Review- Every aspect of a project from start to end has to be reviewed.
The objectives, performance criteria, financial criteria, resource utilization, slips
and gains of time, adherence to the project definition and plans have to be
reviewed. All such review details and reports have to be well documented for
future use.
d) Process review – Every process is important in any project. One may review
the process to see if any changes can be made to improve its performance.
Q4. Explain the term ‘knowledge factor’.

Ans4.

Data base with technical or personal data in order to produce some useful
information for a certain task. However, analyzing the requirements of problems
CEOs have when they like to apply knowledge management as a technology
leads to the fact that the terms data, information and knowledge are used
synonymously, that there is usually more than one source from which the “useful
information” is extracted, and that there is no architectural structure which may
be used to describe neither the requirements nor the realization of the problem.

A generic architecture will be presented which is based on the semiotic paradigm

of information theory. The formal framework allows an adaptation of the
architecture to special realizations and as such it covers standard information
systems and data base application systems. The architecture will be the kernel
the metaphorical description of a knowledge factory an may be enhanced with a
collection of helpful software agents.

“Knowledge management is not a product in itself, nor a solution that

organizations can buy off-the-shelf or assemble from various components.
It is a process implemented over a period of time, which has as much to do
with human relationships as it does with business practice and information
technology” (Benjamins, Fensel, Perez 1998)

DATA, INFORMATION, AND KNOWLEDGE

One major problem with knowledge management is the fact that despite of the
intensive academic discourse on the terms data, information, and knowledge, in
industrial practice they are used in an uncoordinated way. In the classical
interpretation data is associated with syntax, information corresponds to
semantic and knowledge takes the pragmatic part. I.e. data per se has no
meaning and may be seen as raw material for information. Information is context
sensitive and meaningful in the sense that it is interpreted data. Since context is
user (application) dependant information then may be enhanced by its use, i.e.
the pragmatic.

knowledge.
The semiotic correspondence of data, information, and knowledge thus interprets
information as being the result of the transmitting knowledge and data as being
the result of gathering information.

Turning the direction of reasoning leads to recent action oriented interpretations.

According to (Nonaka 1994) knowledge is justified belief (i.e. information) that
increases an entity’s capacity for effective action, while information is the flow of
messages or meaning which may add to, restructure, or change knowledge
(Probst, Raub, Romhardt 1998). In that sense information is raw material for
production of knowledge and information transforms to knowledge in the context
of actions. However, it would be wrong to imply a pure set inclusion between the
three, i.e. knowledge is a subset of information which is a subset of data.
Information may consist of many data items and knowledge may consist of
information plus action rules.

An example may be digital pictures: While on the data level only bit streams are
represented the information level may contain additional format descriptions
(especially those which identify the data as being a picture). Several and different
information may be derived from the same data. On the knowledge level there
may be semantic descriptors identifying the type of the picture (e.g. a landscape).

Now searching for landscape pictures in the data base would have no result. The
information system may select pictures from the data base and only on the
knowledge level a landscape painting could be distinguished from a portrait.

A GENERIC KNOWLEDGE MANAGEMENT ARCHITECTURE

Enterprises are recognizing that the enterprise knowledge management rather

than information gathering and data collection is becoming one of their main
business factors. Total Quality Management and Business Process
Reengineering support the companies to produce better products and to become
more effective. However, these activities are usually not based on the
enterprise’s experience and especially they do not support the talents of their
best performers. Closest to knowledge management is the use of customized
OLAP (Online Analytical Processing) tools to support planning activities.

However, OLAP systems operate on large data bases tying to solve

multidimensional requests for marketing, finance, and quality requests.
Concerning the discussion in the last section, this means that information is
generated out of data. The resulting information gives rise to (knowledge based)
decisions made by human planners. In some cases expert systems are placed
on top of OLAP tools in order to realize management support systems. If the
expert system took care of using the companies expertise and practices, then it
is a vertical knowledge management system in the sense of (Bejamins, Fensel,
and Perez 1998). In the following we are interested in defining a horizontal
knowledge management system which in contrast is not designed for a special
business situation, but usable for different settings.

The Idea
The aim is to develop a generic architecture for knowledge management systems
and processes which should

• respect the differentiation of data, information, and knowledge

 • be used as a scheme to classify various types of enterprise business
systems and

knowledge processes

• support the flexible, though system-consistent modeling of knowledge

management systems

To visualize the knowledge management architecture the picture of an onion

might be taken. It consist of circles which contains either container of material or
tools to produce more complex material. To be more precise, the container are
data, information and knowledge bases. The tools are systems which use for
instance data to produce information, like OLAP systems as discussed above.
Cutting a piece from the center to the outside would then represent a specific
knowledge management system, while the whole structure would represent the
knowledge management facilities of an entire enterprise.

THE KNOWLEDGE FACTORY

The architecture introduced in the previous section uses objects and methods or
from the view of abstract data types data and operations in the traditional sense.
Since the knowledge management architecture should be used in different
contexts and by various people, it would be worthwhile to extend the presentation
by incorporating the “agents” who will use the tools. Hence, there is a change
from the rigid architectural description to a more vivid picture which we call the
“knowledge factory”. It extends the traditional view of having material and tools to
work on in a natural way. Like in a factory beside the production there are the
people who produce. In our scenario these are the “knowledge workers” and they
will be incorporated into the framework by adding one more dimension. The
following figure shows the new structure of the knowledge factory.

The Knowledge Factory Structure

The first column shows the hierarchical structure of the different types of basic
objects: Knowledge bases are built on information bases which are built on data
bases. With each level are associated the operator or tools used to work on the
basic objects. Connecting the two columns with the arrows mirrors the simple
parts of the operator definitions, namely Local (forth and back on the same level)
and Lift (diagonal up). The Combi operators are implicitly presented with the third
column. It represents the worker who use the tools of the second column. So the
information worker applies tools of the data level and tools of the information
level in order to produce new information or knowledge units. In contrast to the
first and second column there is also a cooperation between the workers. Notice
that we choose a hierarchy respecting model, i.e. it is not allowed to skip a level
neither vertically nor horizontally. It may be a matter of discussion whether this
strict proceeding is necessary. However, theoretically all missing cases can be
constructed by combining the possible activities and on the practical side it is
more secure if not everyone can do everything.
Q5. What roles do cross functional teams play for project efficiency?
Explain with examples.

Ans5. The most simple definition of cross-functional teams (or CFTs) is teams
that are made up of people from different functional areas within a company—
marketing, engineering, sales, and human resources, for example. These teams
take many forms, but they are most often set up as working groups that are
designed to make decisions at a lower level than is customary in a given
company. They can be either a company's primary form of organizational
structure, or they can exist in addition to the company's main hierarchical
structure.

Cross-functional teams have become more popular in recent years for three
primary reasons: they improve coordination and integration, span organizational
boundaries, and reduce the production cycle time in new product development.
Bringing people together from different disciplines can improve problem solving
and lead to more thorough decision making. The teams foster a spirit of
cooperation that can make it easier to achieve customer satisfaction and
corporate goals at the same time.

Team Characteristics

Leadership
Although fading in popularity, matrix structured organizations still exist. In a
matrix environment, team members report directly to both their functional
manager as well as one or more project managers: literally a multi-manager
scenario. Teams in a weak matrix environment, especially where the project
manager’s influence on team members is less than the functional, are frequently
mislabeled as crossfunctional teams. However, they are not truly so because of
the reporting structure. This situation causes priority conflicts and animosity that
result in inefficiencies to both functional groups and project teams. Teams with
project managers that are lower on the organizational chart than the rest of the
core members, are also frequently mislabeled as a cross-functional team.
Common results include biased scope, poor implementation of project
management standards, and a lack of true leadership. Just as each member of
the project team is an expert in their subject matter, the project manager is the
subject matter expert in regards to project management methodology, and most
likely one of the members who best understands the projects interdependencies.

To be a true cross-functional team, to be efficient and meet business

requirements, the project manager should lead the team and control the project
lifecycle as neither a second superior nor a subordinate of the core team
members.
Size
Teams need to have expertise related to the anticipated issues and tasks, and
the more ideas the better. So larger teams, right? No, overwhelmingly team
dynamic studies have shown larger teams produce less ideas, less productivity,
decreased team member buy-in, less participation, a decrease in cost
effectiveness, and less accountability. There are many reasons for these
outcomes. Too much stakeholder involvement and large team size both create
withdrawn members and a groupthink atmosphere. More assertive members end
up making the majority of decisions; literally making the decision team smaller,
reducing the cost benefit of each member, and frequently creating biased
decisions.

Planning
Frequently in an effort to appease the timeline and cost expectations of business
sponsors, project teams move into the design phase with inadequate
requirements or even into development with deficient design specifications. The
amount of rework needed, which adds to cost and timeline, will almost if not
always out-weight the time and money saved on planning. The correct response
to a decreased timeline is to increase the efficiency of the planning phase; the
most important phase of the project. This may include a business analyst and IT
Lead role to efficiently document requirements and design. But always requires
the roles and responsibilities of the core project team to be clearly defined.

Estimating
A key piece of planning is the estimation of cost and timeline. It is vital to have an
idea of where you are going before you can decide how you are going to get
there, how long it will take, and how much it will cost; time, scope, and budget
balanced justly. Estimation tools based on high-level scope and historical
performance can be developed to not only get ballpark figures in the infield, but
give a better start toward maintaining cost and timeline during the execution
phase. Estimation tools tuned by each department provide accountability to
project teams and functional departments, as well as increase project efficiency.

Project Kick-off
The invite list to project kick-off meetings should be based on both the perceived
importance and true priority of the project. Projects of high importance would
have large kick-offs that enable the high-level scope and timeline to be
communicated throughout the organization. This not only establishes the core
team as described earlier, but brings up possible issues outside the core team,
allows cross-functional communication of key project issues and tasks, builds
teamwork across divisions, and increases employee buy-in to the corporate
strategies being met by the project.
Organizational Characteristics
Project Management Office

A Project Management Office (PMO) is a department responsible for

establishing, maintaining and enforcing project management standards
throughout an organization. The PMO must have the authority to set standards
via the support of executive management. Development of a true organizational
PMO, regardless of the reporting department, is imperative to the implementation
of effective cross-functional teams as well as the successful prioritization of
projects to the overall corporate strategies. PMO Project Managers must be
capable of providing expertise, vision, and leadership to project teams.

Enablement

The number one dynamic that fosters success is enabling cross-functional teams
the ability to succeed or fail. Micromanagement leads to less buy-in, less
creativity, and groupthink; leading many individuals to focus on making sure the
project is simply not a failure and where to place blame if it does fail. Instead,
management should support cross-functional project teams with the ability to fail;
to have the ability to take risks, to be creative, and to develop team based
solutions that increase buy-in, productivity, and success. Management that
continually second guesses team decisions demonstrates a lack of trust and will
decrease motivation. This enablement is not a license to proceed with reckless
abandonment either. In fact, it will increase accountability.

Accountability
The first step of project accountability is to have agreed upon project
management processes. For example, a document controls process that
includes review and sign-off by key personnel at stage gates of a project. These
mutually agreed to processes are under constant improvement and tuning from
the feedback and review of project outcomes, resulting in further accountability.
The next step is the shared accountability of project outcomes to those within the
cross-functional teams and all functional areas involved; including the PMO and
business areas. Often functional areas will (intentionally or not) limit project
involvement or allow business decisions to be made by I.T. and then hold them
responsible for any failures. It is human nature to push off accountability, and it
takes effort to control the natural impulse of focus on oneself. Teamwork
improvements, group rewards, enablement, and cultural shifts; do what it takes to
improve accountability and at the same time maintain or increase buy in to
teamwork.

Proactive Vision
Too often organizations react to unfavorable situations. They experience a real
loss before making any sincere change. Then, because of the loss, there is a
demand for a timely and sometimes very rushed and under thought answer to
the issue. The fact of the matter is, many risks can be avoided and efficiencies
can be realized when organizations proactively adapt to coming change. This
requires proactive leadership with a vision of turning risks into opportunities, who
are willing and able to take educated risks. Individuals, who contend for the
success of the corporation and the survival of all, should be encouraged and
rewarded.

Information Technology
It is surprising that in this technological age, some organizations still view
information technology as little more than a necessary evil. Information
Technology is not just a service department, a supporter of those who do the real
work, but a viable part of the development and execution of the business
strategy. The I.T. vs. “The Business” mentality does not stem from an inefficient
IT Department, but inefficient cross functional teams and a lack of accountability
on both sides of the table. Information technology takes the brunt of the blame
and the solution is not for senior management to micromanage I.T., but to
become more actively involved in the development of the cross-functional teams
that execute business strategy.

Organizational Structure
Communication of the corporate strategy is frequently too vague and hard to
quantify at both the functional and project level. Projects exist for corporate
strategy to be realized; simple concept but frequently overly complicated. It is the
job of management to ensure that corporate goals are communicated to the
entire organization. Companies must turn strategic priorities into assigned,
measurable action plans for not only project teams, but for each functional
department.

Rewarding
Organizations of course need to support the time and effort required for
development of team skills. One frequently missed medium for accomplishing
this objective is through a reward system related to project work. Rewards should
be based on strategic results: both short-term and long-term successes.

Conclusion
Change is the only constant, and the key variable to effectively meeting
corporate objectives is proactive responses to threats and opportunities. Most
organizations support the project management process, however a strong focus
on project team efficiency is still a significant cultural shift, and most are
reactively addressing the coming changes. With global commerce, approaching
workforce shifts, industry transformations, and economic downturn, organizations
must proactively create and align efficient cross functional project teams with
corporate strategy to stay competitive.
Example:

Cross-functional teams are not new. Northwestern Mutual Life insurance

company pioneered their use in the 1950s when the CEO of the company
brought together people from the financial, investment, actuarial, and other
departments to study the impact that computers would have on the business
world. As a result of that first CFT, Northwestern was among the first companies
in the country to create an information systems department that gave the
company a large competitive advantage as computers gained in popularity. The
company now relies on cross-functional teams in almost every facet of its
organization. Based on success stories like this one, CFTs slowly grew in
popularity throughout the 1960s and 1970s before exploding in popularity in the
1980s when faster production time and increased organizational performance
became critical in almost every industry.

Cross-functional teams are similar to conventional work teams, but they differ in
several important ways. First, they are usually composed of members who have
competing loyalties and obligations to their primary subunit within the company
(for example, a marketing person serving on a cross-functional team has strong
ties to his or her home department that may conflict with the role he or she is
being asked to play on the CFT). Second, in companies where CFTs are being
used on a part-time basis as opposed to a permanent organizational structure,
they are often temporary groups organized for one important purpose, which
means group members are often under considerable pressure. On these
temporary teams, the early development of stable and effective group interaction
is imperative. Finally, CFTs are often held to higher performance standards than
conventional teams. Not only are they expected to perform a task or produce a
product, but they are also expected to reduce cycle time, create knowledge about
the CFT process, and disseminate that knowledge throughout the organization.

For cross-functional teams to succeed, several factors have been identified that
are imperative:

• Team members must be open-minded and highly motivated.

• Team members must come from the correct functional areas.
• A strong team leader with excellent communication skills and a position of
authority is needed.
• The team must have both the authority and the accountability to
accomplish the mission it has been given.
• Management must provide adequate resources and support for the team,
both moral and financial.
• Adequate communications must exist.

Without any one of these elements, any cross-functional team will be fighting an
uphill battle to succeed.
Q6. Do core groups enhance the performance of projects?

Ans6. The scope of the joint project will be the development of a new video
coding standard and the assessment of its performance at the completion of the
work using formal subjective testing procedures.

The intent is that the ITU-T Recommendation and ISO/IEC International

Standard be technically aligned, fully interoperable with each other for all of the
video codec’s conformance points specified during the term of this joint work, and
offer the best possible technical performance under the practical constraints of
being implementable on various platforms and for various applications enabled
by the relevant ITU-T Recommendations and ISO/IEC International Standards.
Common text will not be used in the interest of minimising co-ordination
overhead.

Joint Group
The work of the project will be conducted by a jointly-constituted experts group
which will be known as the Joint Video Team (“JVT”).
JVT will operate as a joint group under the ordinary policies and procedures of
both organisations. In the event of differences between policies of ISO/IEC and
ITU-T not covered by these ToR, the JVT Rapporteur|Chair will decide the issue,
based on the consensus of the experts and if necessary in consultation with the
parent bodies, in the best interests of standardization.

Deliverables of the Joint Project

The deliverables are a new video codec informally called the JVT codec, to be
approved by ITU as an ITU-T Recommendation and by ISO/IEC as an
International Standard. These deliverables will be developed with requirements
as described.

Dissolution
The joint group will dissolve when the approval process for the new
Recommendation and International Standard in both organisations is completed.
The joint group may also be dissolved at the initiative of one or both the parent
bodies if unexpected conditions materialise that require one or both of the parent
bodies to take this action.

Potential new joint work beyond the duration of this project (e.g., extensions,
corrigenda, amendments, etc.) will require the agreement of the two parent
bodies. It is anticipated that such agreement would be reached in case the need
for a corrigendum is discovered.
Meetings
JVT meeting venue and dates will be proposed by the JVT Rapporteur/Chair,
and authorized by the parent bodies under the customary practices of both
organisations.

JVT meetings will be held as an entity that is separate from the two parent
bodies, and will operate under rules set forth in Annex 3 of this ToR.

The meeting dates and locations should be co-ordinated with those of meetings
of the ITU-T SG16 and ISO/IEC JTC 1/SC 29/WG 11 (e.g. on an alternating
basis if feasible for the progress of the project) in order to reduce the amount of
travelling for participants and will be preferably co-located with a parent body
meeting and held immediately before, during, or after the corresponding SG16
meetings or during the corresponding WG 11 meeting dates.

Management
The management of the JVT will consist of a jointly-appointed Rapporteur/Chair
and two Associate Rapporteurs/Co-Chairs (one each as appointed from the
parent bodies with joint consent), reporting to the parent bodies. Changes in the
management team must be agreed by the two parent bodies.

Documents and Contributions

JVT will maintain a document registry and electronic distribution archive. The
registry and archive will be linked to both the ITU-T Q.6/SG16 and ISO/IEC JTC
1/SC 29/WG 11 web sites. Any document from a participant in the meeting
should be available to all the participants before the meeting through the use of
electronic document handling. A registration and uploading deadline several days
in advance of the start of the meeting will be announced for each meeting. A
“late, unannounced” document hand-carried to the meeting should be accepted
only with the consensus of the meeting participants. This policy will be stated in
the invitation letter that is provided for every meeting to both organisations.

All documents and contributions will be in electronic form (preferably MS Word).

In order to facilitate cross-organisational communication, all input and output
documents will be public unless the contributor of an input document indicates
otherwise. In that circumstance, the document will be accessible only through a
private, password-protected site accessible only to ITU/ISO/IEC members and
invited experts regularly attending the JVT meetings. Invited experts not regularly
attending JVT meetings may be given access to such documents upon approval
of its author.

Working Methods
General Policies and Procedures
All group decisions will be made by the consensus of the JVT experts as
determined by the JVT Chair|Rapporteur. All contributions related to the joint
project must be addressed to JVT for the duration of the joint project, rather than
to the individual parent bodies. Additionally, these may also be submitted to any
of the parent bodies (according to their specific document submission
procedures), if the author of the contribution so determines.

Working relationship between JVT and the parent bodies

The parent bodies may like to provide inputs (either in the form of written
documents or by holding meetings with the appropriate parent body sub-groups)
on the work carried out by JVT. A non-exhaustive list includes:

1. New requirements dictated by new applications that may be served by the

new video coding
2. Complexity analysis of the solutions being adopted
3. Partitioning of the video coding tool space in profiles
4. Definition of levels
5. Requirements for the design of verification tests
6. Profiles to be tested in the verification tests.

JVT will consider the inclusion of these inputs in its work, also considering the
impact of such inputs in the other parent body’s requirements. JVT will report
back to the originating organisation on the action taken.

Document Control
JVT will maintain a single master draft document and a single reference software
codebase for the developing video coding standard, each under the control of a
single editor, appointed by the JVT

Chair|Rapporteur with the consensus of the experts. The document and

codebase will contain the exact text to be submitted to the parent bodies for
approval.

Meeting Reports
A meeting report will be provided by the JVT management shortly after the
conclusion of each meeting and will be submitted to ITU TSB and ISO/IEC JTC
1/SC 29/WG 11, posted on the group’s FTP sites, and distributed to the experts.

The report should include:

• Dates and venue

• Chairpersons/Rapporteurs of the meeting
• Attendance list with affiliation
• Agenda of the meeting
• List of documents considered with source
• Summary of results and an outline of any outstanding issues or resolutions
• Any outgoing liaison statements/communications sent to other organisations
• Future activities
Promotion and Public Relations Activities
Any public relations or promotional activities regarding the joint group, its project,
and its results and deliverables will be approved by the JVT Chair/Rapporteur
with the consensus of the experts. All promotion and public relations activities will
undergo review and consent by both parent bodies (VCEG and MPEG, if
necessary in consultation with higher-level committee management).