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Project Management Unit 14

Unit 14 Project Management Software


Structure:
14.1 Introduction
Objectives
14.2 Advantages of Using Project Management Software
14.3 Common Features Available In Most of the Project Management
Software
14.4 Illustration
14.5 Summary
14.6 Glossary
14.7 Terminal Questions
14.8 Answers
14.9 Case Study

14.1 Introduction
In the previous unit, we dealt with project close-out, steps for closing the
project, project termination, and project follow-up. The unit discussed about
the project close-out activities including completing unfinished activities,
getting client acceptance of deliverables, updating and archiving
documentation, conducting post implementation audit, preparing final report,
releasing all resources, and organising the closing meeting. In this unit, we
will deal with the advantages of using project management software,
common features available in most of the project management software,
and illustration of project management software.
In the early days, project management software was used only on main
frame computers. The software had limited capability and was relatively less
user friendly. Its application was limited. With the growth of business, more
and more projects of varying complexity have come up for managing. This
forced the qualitative and quantitative growth of software. Gradually, more
and more features and functions were added into the software.
Today, we have a large number of PC-based project management software
packages available. These are more flexible to accommodate user
requirements, capable to handle increased functions and larger size projects
with speed and accuracy, and are available at a reasonable cost.

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This unit also discusses the various aspects like the need for software, an
overview of common features available in most packages, how to get the
best of these, and general information about them.
Objectives:
 State the advantages of using project management software.
 Common Features Available In Most of the Project Management
Software.
 Illustrate the implication of project management software.

14.2 Advantages of Using Project Management Software


The following are the key advantages of using project management
software:
 Speed, effort, and accuracy: For a large project, manually carrying out
activities like drawing a network, carrying out time analysis, reporting
project progress, generation of various types of reports, updating
network, and maintaining records is quite time and effort consuming.
Accuracy level is also below par.
Use of the software package greatly reduces the time and effort needed
for these activities and at the same time enhances accuracy.
 Ability to carry out special functions: The software has the ability to
carry out some special functions like resource scheduling, what if
experiment, and export and import of data with ease and within
reasonable time. Manually carrying out these functions is extremely
difficult or not feasible.
 Affordability: The price of PC-based software is under $500 which is
affordable for an organisation.
 Easy to use: Over the years, the project management software
packages have become easy to use. The package can be handled with
minimum training.
 Maintenance of record: A project generates a lot of data, reports,
documents, etc. Manually archiving and retrieving these are time and
effort consuming. The software package can handle these functions with
relatively less time, effort, and cost.

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Self Assessment Questions


1. The project activities like drawings cannot be performed by using
project management software. (True/False)
2. The project management software package can be handled with
minimum training. (True/False)
3. The price of PC-based software is under _______________ which is
affordable for an organisation.

14.3 Common Features available in Most of the Project


Management Software
Before knowing the practical use of project management software, we
should study some of the common features available in most of the project
management software. An attempt is made to present an overview of
generic features associated with various project management software
packages available today. These generic features include:
 Data entry features
o 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.
 For example, work hours can be modified, company holidays can
be entered as non-working days, and various shifts can be
entered.
o 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.

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Table 14.1: Types of Resources and Amount Available


Type of resource Amount of resource Period
available (No.)
From To
Skilled person 10
Unskilled person 100

o Labour cost: One of the many ways to specify labour cost is as,
 Skilled worker – $ 2.0
 Unskilled worker – $1.2
o Human resources available: All software requires periods and
amount of resources that are available for the project.
o Cost of construction materials: Materials needed for each task
and their estimated costs for the project may be as given below:
Table 14.2: Materials needed and Estimated cost is to
be Entered Against each Activity
Activity ID Activity Type of Materials Estimated Cost ($)
Description
001 A Wood 200
002 B Pipe 300
… … … …
00n N Flooring compound 500

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


identifier.
o 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.
o 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. This option (Finish-Start type) is the default option in all
project management software today for linking two activities.
Figure 14.1 depicts the various options for linking activities. These
are quite useful in reflecting the real-world situation in network.
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S F S F
A B
[t]

(a) Finish to start: Activity B starts t units of time later than finish of
activity A.
S F S F
A B

[t]
(b) Start to start: Activity B starts t units of time later than start of
activity A.
S F S F
A B

[t]
(c) Finish-to-Finish: Activity B finishes t units later than the finish of
activity
S F S F
A B

[t]
(d) Start to Finish: Activity B finishes t units later than start of activity A.
S – Start, F – Finish

Fig. 14.1: Various Options to Link Activities

o 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. These include:
 An incorrect activity duration
 An incorrect activity name

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 An Incorrect precedence logic


 An Incorrect cost data
 A wrong resource entered

These errors have to be corrected manually by listing of the activity


records.

Activity
List example of some commercially used project management
software and their characteristics?
 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:
o Resource leveling where unlimited and flexible resources are
available
o Resource allocation problem where resources are limited

In resource leveling, activities are scheduled to minimise 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.
The project management software uses heuristics to solve both types of
problems. For a moderate size problem involving 100 activities, it
becomes extremely difficult to carry on resource scheduling. PM
software is an invaluable tool to deal with this problem.
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 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 customised.
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.
Filtering enables the user to select only certain data that meet some
specified criteria. Sorting, on the other hand, allows the user to view
information in a desired order such as pay rates from highest to lowest
or in alphabetical order. Most software allows multiple level of sorting
(for example, by year and then by dates).
Among the reports generated by the software include:
 Project schedule: Network (based on AON systems), linked Gantt
chart, Gantt chart
o Work-to list
 Cost related report: Budgeted vs. actual cost (daily and cumulative)
o Resources utilisation report
 Progress report: Overall project, milestone chart, critical path
o Chart showing responsibility of department/function to carry out
particular activities
o 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:
o A change to the project parameter, an unexpected increase or
decrease in the resource available, changed cost rate, or new
target dates.
o A change in network logic due to change in project scope, design
change, etc.
o To have a new schedule that take into account the progress
made to date.

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 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.
 What if analysis: This is a useful feature of PM software. This permits
to know the effect of changes in project variable (people, cost, and
change in scope) on project objective. This analysis helps the project
manager in taking an appropriate decision.

Self Assessment Questions


4. Resource allocation problem is concerned with _____________
activities in such a way so as to find the shortest project schedule.
5. The process of producing a fresh set of schedule is known as
______________.
6. _____________ allows the user to view the information in a desired
order, such as pay rates from highest to lowest or in alphabetical order.
7. ________________ enables the user to select only certain data that
meet some specified criteria.
8. Most software allows single level of sorting. (True/False)

14.4 Illustration
Gantt Charts is a tool for examining and scheduling more complex
projects. It facilitates to plan tasks that need to be completed and provide a
basis for scheduling when these tasks will be carried out. When a project is
under way, Gantt Charts helps to monitor whether the project is on schedule
or not. If it is not, it helps to locate the corrective action which is required to

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put it back on schedule. Now, let us illustrate how actually Gantt chart
works:
Consider the following illustration of some features of MS project on a
sample project:
A sample project is described by the following data depicted in table 14.3:
Table 14.3: Sample Project Data
Activity Duration Immediate Manpower Material Cost (`)
(Days) Precedence Required
A 2 - 2 100 (2 units, 200%)
B 4 A 4 50 (1 unit, 100%)
C 5 A 4 50 (1 unit, 100%)
D 6 A 4 150 (3 unit, 150%)
E 8 B,C 6 100 (2 unit, 100%)
F 2 D 4 200 (4 unit, 400%)
G 7 E,F 4 50 (1 unit, 100%)
H 8 D 4 50 (1 unit, 100%)
I 4 G,H 4 50 (1 unit, 100%)

Labour cost rate = Rs. 25/hour


With maximum labour available as unlimited and 8 persons, prepare the
following using MS project:
1. Network diagram
2. With unlimited resources
(i) Gantt chart
(ii) Time analysis
(iii) Resource graph
3. With limited resources (8 persons)
(i) Gantt chart
(ii) Time analysis
(iii) Resource graph
4. Tracking Gantt chart
5. Network diagram showing work status
Solutions
Using MS Project, solutions for the above questions pertaining to the
sample project were obtained and these are depicted in Figure 14.2 to
Figure 14.6. Based on these outputs, some observations are given below.
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ID Task Duration Early Start Early Finish Late Start Late Finish
Name
1 A 2 days 01-01-10 02-01-10 01-01-10 02-01-10
2 B 4 days 03-01-10 06-01-10 04-01-10 07-01-10
3 C 5 days 03-01-10 07-01-10 03-01-10 07-01-10
4 D 6 days 03-01-10 08-01-10 08-01-10 13-01-10
5 E 8 days 08-01-10 15-01-10 08-01-10 15-01-10
6 F 2 days 09-01-10 10-01-10 14-01-10 15-01-10
7 G 7 days 16-01-10 22-01-10 16-01-10 22-01-10
8 H 8 days 09-01-10 16-01-10 19-01-10 26-01-10
9 I 4 days 23-01-10 26-01-10 23-01-10 26-01-10
Fig. 14.2: Network Diagram
Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

1. With unlimited resources (14 men or more), the project will take 26 days
to complete.
2. With limited resources of 8 persons, the project duration would be 33
days.
3. We get early start, early finish, late start, late finish, and total slacks of
each activity.
4. Tracking chart and network diagram may be used to track the progress
of work.
Above are only a few application of MS project. Many more applications
including project tracking, what if analysis, and others can be done with the
help of the package.

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Assumption:
(i) 7 day working for manpower
(ii) No constraint on manpower
With Unlimited Manpower:

Table 14.4: WBS for the project

a. Gantt Chart

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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b. Time analysis
ID Task Duration Precedence Early Early Late Late Total
name (days) start finish start finish float
1 A 2 - 01-01-10 02-01-10 01-01-10 02-01-10 0
2 B 4 1 03-01-10 06-01-10 04-01-10 07-01-10 1
3 C 5 1 03-01-10 07-01-10 03-01-10 07-01-10 0
4 D 6 1 03-01-10 08-01-10 08-01-10 13-01-10 5
5 E 8 2,3 08-01-10 15-01-10 08-01-10 15-01-10 0
6 F 2 4 09-01-10 10-01-10 14-01-10 15-01-10 5
7 G 7 5,6 16-01-10 22-01-10 16-01-10 22-01-10 0
8 H 8 4 09-01-10 16-01-10 15-01-10 22-01-10 6
9 I 4 7,8 23-01-10 26-01-10 23-01-10 26-01-10 0
c. Resource graph

Fig. 14.3: Gantt Chart, Time Analysis, and Resource Graph with
Unlimited Manpower
Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

For Limited Manpower (8 no.):


Table 14.5: WBS with Total Slack

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a. Gantt chart

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

b. Time analysis
ID Task Duration Predecessors Early Early Late Late Total
Name Start Finish Start Finish Slack
1 A 2 days 01-01-10 02-01-10 01-01-10 02-01-10 0 days
2 B 4 days 1 06-01-10 06-01-10 03-01-10 09-01-10 3 days
3 C 5 days 1 05-01-10 07-01-10 03-01-10 09-01-10 2 days
4 D 6 days 1 07-01-10 12-01-10 03-01-10 12-01-10 0 days
5 E 8 days 2,3 15-01-10 20-01-10 08-01-10 22-01-10 2 days
6 F 2 days 4 21-01-10 22-01-10 13-01-10 22-01-10 0 days
7 G 7 days 5,6 23-01-10 29-01-10 23-01-10 29-01-10 0 days
8 H 8 days 4 22-01-10 28-01-10 13-01-10 29-01-10 1 day
9 I 4 days 7,8 30-01-10 02-02-10 30-01-10 02-02-10 0 days

c. Resource graph

Fig. 14.4: Gantt Chart, Time Analysis, and Resource


Graph with Limited Manpower (8 no.)
Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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Tracking Gantt Chart:

Note: Dark Lines within the Gantt chart bars indicate the completion status of the activity. Here activities
A, B, and C are fully completed and activity D is partially complete

Fig. 14.5: Tracking Gantt Chart (Status as on 15th Jan 2010)


Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

Note: Fully crossed boxes denote the completed tasks and half crossed denote the
partially completed tasks
Fig. 14.6: Network Showing the Work Progress
Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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Activity
Take any project of your choice. What are you trying to achieve with the
project? What need does it satisfy for your customer? Who exactly is
going to actually use the project deliverable(s) when it is finished? (That
is, who is your real customer?) What will distinguish your deliverables
from those already available to the customer?

Self Assessment Questions


9. _____________ is a tool for examining and scheduling more complex
projects.
10. When a project is under way, Gantt Charts helps to monitor whether
the project is on schedule or not. (True/False)

14.5 Summary
Let us recapitulate the important concepts discussed in this unit:
 Earlier, PM software was run on mainframe computers. Its capability
was limited, and it was relatively not easy to use. Its application level
was low.
 Generally, more and more projects of varying sizes and complexities
emerged forcing the PM software to grow in quantity and quality.
 Today, we have a large number of PC-based PM software packages
available. They are more flexible with improved capability and can
handle large size projects with speed and accuracy.
 The unit has discussed many common features of available packages
which include data entry features, graphics, time analysis, resource
scheduling, output reports, updating, importing/exporting, project
monitoring, and tracking.
 The unit gives guidelines to make the best use of software. Finally,
general information about software package has been presented.

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14.6 Glossary
Filtering (editing): It is a feature of PM software that enables the user to
select only certain data that meet some specified criteria.
Importing/exporting: The process of bringing information into the PM
software from other applications such as word processing, spreadsheet, etc
is called importing. Similarly, sending information from PM software to other
applications is called exporting.
Sorting: It is a feature of PM software that enables the users to view the
information in a desired order (alphabetical order, ascending or descending
order, of value).
What-if analysis: What-if analysis evaluates the effect of change(s) in
project variable(s) (people, cost, change in scope, etc) on project objectives.
This analysis enables the project manager to take appropriate decisions.

14.7 Terminal Questions


1. Discuss the advantages of using PM software package.
2. What are the common features available in PM software packages?
3. Define filtering. How is it different from sorting?

14.8 Answers

Self Assessment Questions


1. False
2. True
3. $500
4. Scheduling
5. Updating
6. Sorting
7. Filtering
8. False
9. Gantt charts
10. True

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Terminal Questions
1. Project management software enhances the speed, effort, and accuracy
of the project. It is also helpful in maintaining record and time efficiency.
For more details, refer to section 14.2.
2. There are some common features which are associated with all the
project management software like data entry, time analysis, maintaining
graphics, etc. For more details, refer to section 14.3.
3. Filtering enables the user to select only certain data that meet some
specified criteria; on the other hand, sorting allows the user to view the
information in a desired manner. Refer to section 14.3.

14.9 Case Study


Microsoft Project AMS
The company
AMS is a global business and IT consulting firm to the government, financial
services, and communications industries. AMS applies both proprietary and
partner technologies and provides solutions through business consulting,
system integration, and outsourcing. Founded in 1970, AMS is
headquartered in Fairfax, Virginia, and has offices worldwide. The company
has approximately 6300 employees.

The challenge
Several years ago, AMS developed an internal project management system
called Project in a Box. Based on Lotus Notes, the homegrown system was
becoming inefficient and costly to operate, particularly because it was
designed as a standalone, non-collaborative product. When a new
consulting project was set up, a new instance of the database was created,
leading to a chaotic system with literally hundreds of separate databases.
Without any kind of centralised information sharing, it was difficult to use
information from one project on another project. The system also prevented
AMS’s managers from viewing companywide metrics, such as project
completion rates and whether projects were being completed on time and
on budget. AMS’s executives needed a system to allow them to have a
portfolio view of the health of the company’s projects in progress. A
collaborative project management system would allow AMS managers to:

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 Measure project performance and Earned Value Metrics (EVM) allowing


for improvements in on-time and on-budget delivery to customers
 Standardise processes
 Understand the impact of task dependencies within complex projects
 Share information across different product lines

The strategy
Many AMS project managers were already using Microsoft Project as a
desktop application, developing project plans and Work Breakdown
Structures (WBS) on their individual PCs. However, these individual
installations were not networked together and did not feed critical project
performance information to executives.
Therefore, in October 2002, when AMS began the vendor selection process
for a company-wide project management solution, Microsoft Project was the
natural choice, both because many internal users were already experienced
with the application’s scheduling and planning functionality and because
Microsoft offered the best price point.
In March 2003, AMS chose Microsoft as its project management software
vendor and began a pilot programme. In June 2003, AMS selected the
public sector product engineering group as the first department to begin the
pilot programme. AMS divided this initial pilot programme into four distinct
phases:
 Phase 1: In early July, AMS installed Microsoft Project for and trained
15–20 project managers working on a common product line.
 Phase 2: In late August, AMS expanded the installation to 170 people in
another product line within the same group.
 Phase 3: In late September, AMS rolled out Project’s decision support
capabilities to ten executives, allowing them to mine data for reporting
purposes.
 Phase 4: If the pilot is successful, AMS will expand the Project
programme to 4,000 users company wide in a staged rollout.

Key benefit areas


With the pilot programme well under way, AMS is already seeing benefits
from Microsoft Project. The system has helped AMS to meet its goal of
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creating a more collaborative project management system that allows


managers to view metrics and create schedules with a view of resources
across projects and across the entire organisation. The collaborative nature
of Microsoft Project Server allows team members, team leaders, and project
managers to complete EVM reporting more quickly, leading to more
available time for billable hours. The quantifiable benefits from the Microsoft
Project deployment include:
 Productivity gains from automated weekly reporting process.
Consultants and developers now spend less time each week creating
weekly status and performance reports, leading directly to more time
available for billable hours.
 Productivity gains from automated EVM analysis. Team leaders and
project managers now spend less time processing and analysing status
and performance reports from team members, allowing them to also
have more time available for billable hours.
 The Microsoft Project deployment also allows AMS project managers to
get a better sense of project status metrics in real time. This leads to
fewer project budget and cost overruns, because project managers can
quickly make adjustments to keep projects profitable.

Key cost areas


The largest cost area for AMS’s deployment of Microsoft Project was the
software license cost, making up 63% of the total cost of the project. Other
cost areas over the 3-year period included consulting, training, ongoing
maintenance, and personnel costs associated with the everyday use of the
system.

Lessons learnt
Overall, AMS’s Microsoft Project implementation went smoothly. AMS’s
managers attribute the project’s success to their careful planning and staged
pilot programme approach. AMS’s managers recommend that companies
considering similar implementations should not underestimate the change
management necessary to make Microsoft Project work effectively. Project
managers, especially those without PMI certifications, will often need to
undergo training on how to build effective WBS’s, how to plan and schedule
complex projects, and how to adjust WBS’s to changing project conditions.

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A successful Microsoft Project implementation also requires a high level of


communication between team members and project managers. This is
especially important with regard to communicating the inputs, steps,
expected output, and dependencies of complex business processes.
AMS’s managers also recommended that companies carefully look at their
internal processes for building WBS’s, especially the ones for complex
projects that require more than 500 tasks. Some of AMS’s projects
contained upwards of 2500 tasks, which was well above Microsoft Project’s
practical limit of 500 tasks for a single project.
Calculating the ROI
Nucleus Research analysed the costs of software, personnel, consulting,
and training over a 3-year period to quantify AMS’s investment in Microsoft
Project. Direct and indirect benefits were also quantified over a 3-year
period. Direct benefits quantified included productivity gains for both team
members and team leaders when creating EVM reports. Because AMS was
an early adopter and because it agreed to participate in trade shows and in
marketing ventures, the company received consulting services from
Microsoft at no cost, though AMS did use internal consultants for a portion
of the implementation.
Companies currently considering Microsoft Project for similar enterprise
implementations must take consulting costs into account when evaluating
potential ROI. Benefits not quantified because of the early stage of AMS’s
Project deployment included reduced project budget and schedule overruns.
However, Nucleus recommends that companies considering Microsoft
Project evaluate this potential benefit.
1. What difficulties were encountered by AMS while dealing with
information transfer problem in the company? What strategy is used by
AMS for dealing with this problem?
Hint: Without any kind of centralised information sharing, it was difficult
to use information from one project on another project
2. How project management through pilot programmes became successful
in above mentioned case. Explain?
Hint: initial pilot programme, With the pilot programme well under way,
AMS is already seeing benefits from Microsoft Project., cost benefits
Source: http://nucleusresearch.com/library/microsoft-roi/d134.pdf

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References:
 Clements/Gido, Effective Project Management, Publication: Thomson.
 Gray, C. F/ and Larson, E. W. Project Management, Publication: Tata
McGraw Hill.
 Lock, D. Project Management, Ninth Edition, Publication: Gower.
 Nagarajan, K. Project Management, Third Edition, Publication: New Age
International.
 Chandra, P. Projects-Planning, Selection, Financing, Implementation,
and Review, Sixth Edition, Publication: Tata McGraw Hill.
 Rao, P.C.K. Project Management and Control, Publication: Sultan
Chand & Sons.
 Desai, V. Project Management, Second Revised Edition, Publication:
Himalaya Publishing House.

E-References:
 www.projectsmart.co.uk. retrieved on 14/02/2012
 www.projectmanagement.com. retrieved on 15/02/2012
 www.pmearth.com. retrieved on 15/02/2012

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