SPRING ASSINGMENT

PROJECT MANAGEMENT
MB0049
NANDESHWAR SINGH
ROLL NO. 1408001255
Q1. Write a short note on A. PERT. B. CPM?
Ans. PERT MODEL: The analysis was determined the critical path event slacks and
activity floats. For this purpose, we used a single time estimates of activity duration though
initially three times estimates were developed for each activity. Now we consider the variability
of projects duration. Variability in PERT analysis is measured by measured by variance or its
square root, standard deviation. Variance of a set of numbers is the average squared difference of
the numbers in the set from their arithmetic averages. The steps involved in calculating the
standard deviation of the duration of critical path re as follows:

STEP 1: Determine 3the standard deviation of the duration of each activity on the critical path.
STEP 2 Determine the standard deviation of the total duration of the critical path on the basis of
information obtained.

CPM MODEL: PERT model was developed and for project which are comparatively risk free
CPM model .Both the approaches start with the development of the network and a focus point
on the critical path. The PERT approach is Probabilistic while the CPM APPRCH IS
Deterministic. This does not, however, mean that in CPM analysis we work with the single time
estimates. The main focus of CPM analysis is on variations in activity times as consequences of
changes in resources assignments.

Assumptions
The usual assumptions of CPM are as following.
1. The cost associate with a project can be dividing into two components: direct costs and
indirect costs. Direct costs are incurred on direct material and indirect costs are the overheads
items like indirect suppliers, rent, insurance, managerial services etc.
2. Activates of the project can be expedited by crashing which involves employing more
recourses.
3. Crashing reduces time but enhances direct costs because of factors like overtime payments,
extra payments and wastage. The relationship between time and direct activity cost can be
reasonably approximated by a downward sloping straight line.
4. Indirect costs associated with the project increases linearly with project duration Cost.
Q2.Define project type orgainisation and discuss in detail?

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

A Typical organizational chart of Project-type orgainisation

President

Division Product Z

Division Product Y

Division Product X

R&D

Manufacturing

Marketing

Finance
Advantages of project-type structure

• Clear line of authority- The project manager has authority over the project. All the
member of the project team is responsible only to the project manager.
• High level of commitment: The project team has a separate and strong identity,
and all members are committed to the project and to each other strongly.
• Swift decision making: Because the line authority is only with the project manager,
the capacity to make swift decision is increased.
• Simple and flexible: Project orgainisation are structurally flexible and simple, which
makes them comparatively easy to implement.

Q3. Answer the following questions:

1. Mention the steps involved in competitive bid?

2. Mention the point/elements that must be kept in view when

designing, developing, and operating a PMIS (Project Management

Information System)?
Ans.1 The steps involved in competitive bid are discussed below:
1. The bid or tender is invited from a required number of suppliers.
2. The bid received in prescribed condition are accepted and held in safe custody.
3. The bids are opened and made public at the stated time and place in the presence
of the bidders who are present.
4. The information received from bidders is tabulated on a comparative statement
which allows comparisons of quoted prices, validity periods, and other critical
factors.
5. The comparative statement may present various situation which include:
A. If there quoted by the lowest bidder is selected. The estimated price could be
based on past experience, price of the similar products, own estimates, and
knowledge of factors influencing the price.
B. If the lowest bidders are more than one their prices are reasonable, the
purchase manager may take one of the following actions to resolve the times:
• Divided the order among the lowest bidders.
• Request the lowest bidders to reviews and resubmitted their bids.
• Analysis the cost of factors such as quality rating, payments terms
and firms price period and non-cost factors such as lead time, past
experience, and fit with the company and choose the supplier.
B) Design of PMIS; following element should be kept in view in the design, development
and operation of a PMIS.
• The PMIS should support the full range of life cycle including project analysis and post
project review.
• Enterprise guidance and project background information must be a part of PMIS.
• PMIS include all information coming from a various sources, including formal reports,
informal sources, oberservation, and project review meetings and questioning.
• The PMIS must interface with a larger orgainisation information system to permit
smooth, well-organized interchange of information in support of orgainisational and
project goals.
• Only relevant information should be a part of PMIS.

2.
Q4. Discuss the major content of the project’s final reports.
Ans. Major Content of the project is as followings:
• Evolution of project: Narrate the variations activates undertaken from project
selection, planning, execution, control and termination phase: problems faced, what went
well, what did not, and why.
• Overall success of the project: Some typical criteria to measure the overall success
of the project are given below:
1. Business objectives: Restates the business objectives as given in the business
case including any changes incorporated later. Comment on how far these objectives
have been or likely to be met.
2. Project efficiency: State the actual cost, resource and schedule against the plan.
• Closure statement: State the circumstances under which the project is
being closed as one of the following:
1. The project has been successfully completed.
2. The project has been terminated prior to the completion. In this case describe the
reason for termination.
• Outstanding issues and deliverables: List any issues or key deliverables
not yet accepted. For each, give.
1. The nature of the issue and reason of non-acceptance.
2. Proposed resolution (include date, person responsible)
• Managing of projects: How the project’s different phases were managed?
Specifically, comment on the following aspects:
1. Quality of decision making.
2. Use of tools/techniques in selection, planning and control phase.
3. Use of best practices.
 • Lessons learnt and recommendation; A number of insight and innovation
methods have been adopted in tackling the various problems. These should be recorded
for posterity. Specifically, the following aspects are to be covered:
1. What worked well and why?
2. Recommend methods, process, procedures, best police and practices and tools which can
be gainfully used in the future.
3. Identify the areas where time, money, or resources could have been better utilized.
• Acknowledgement: Acknowledge all the individuals who have made special
contributions to the project.

Q.5 Write a short note on:

1. Roll of risk management in overall project management.
2. Quality assurance.
Ans It is a process which enables the analysis and management of the risk associated which
enables the analysis and management of the risk associated with a project. Properly
undertaken, it will increase the likelihood of successful completion of a project to cost, time
and performance objectives. There are a lot of benefits of proper risk management in the
projects. Orgainisation can generate a lot of profits if they deal with the uncertain project
event in a proactive manner. You can deliver a project on time, on budget and with proper
quality if you are able to manage the risks properly. The proper risk management can
increase the productivity and efficiency of the project team.
A project life cycle includes the key phase like initiating, planning, executing, controlling
and closing. The probability of project risk depends on the project life cycle. It depicts the
relation between the risks and their probability of happening.

Planning
Executing Initializing

Controlling

Closing
 Probability of risks versus stages of project life cycle

It shows that the probability of risks is higher in the initial phases in comparison to closing
phases. The highlighted point shows the maximum probability of risk happening.
In comparison to probability of risk, the impact of risks is opposite. The impact of the risk is
less in the initial stages of a project life cycle and higher in the closing phases.

Controlling Closing

Executing

Planning

Initiating

Impact of Risks versus Stages of Project life cycle

Q6. What are the common features of Project Management Software?
Ans The advantage of Project Management Software is that they are easy to use, affordability,
Helps in maintains the records, speed, efforts, and accuracy, ability to carry out special functions.
Common features of the Project Management Software are as following.

Data entry features

• Project data and calendar: 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.
The calendar can be modified for each resource.
For example, work hours can be modified, company holiday can be entered as non-
working days, and various shifts can be entered.

• 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 the activity description in network.

• Labour cost : One of the many ways to specify labour cost is as,
• Skilled worker - $2.0
• Unskilled worker - $1.2

• Human resources available: All software requires periods and amount of resources
that are available for the project.

• Cost of construction material: Material need for each task and their estimated for
the project may be as given below.

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

• Activity description; Each activity has a description. The number of characters
should be within the number of characters specified by the software for the activity name
field.

• Precedence relationship: There are various options to show that linkage between
two consecutives activates in a network. One common can start is finish- start type. It
means that the succeeding activity can start only if all proceeding activates to it have
been completed.
• Data entry error: All good management software contains error detection routines
that identify and reports errors. However, there are certain errors which cannot be
detected by software. These includes:
1. Incorrect activity duration.
2. An incorrect activity name.
3. Incorrect precedence logic.
4. An incorrect cost data.
5. A wrong resource entered.
• Graphics: There are involving a large number of activates, drawing a correct network,
and manually takes a lot of time and efforts. 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.
• Time analysis: If there is unlimited and flexible resources or if resources can be
outsourced, the network may be prepared at the earliest start time of activates. In the real
world, many projects are managed on this basis.
• Resources scheduling: Resources scheduling problems are two types:
1. Resources leveling where unlimited and flexible resources are available.
2. Resources allocation problems where resources are unlimited.
In resources leveling, activates are scheduled to minimize the variation in level of
resources development.
Resources allocation problem is concerned with scheduling activities in such way so as to
find the shortest project schedule.
• Output reports: Generally PM Software packages have extensive reports generation
capabilities. They can generate a range of reports in various forms. The reports are
standard or customized. 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. Among the reports generated by the software
include:
• Project schedule: Network, linked Gantt chart, Gantt chart work to list.
• Cost related reports: Budgeted vs. actual cost resources utilization report.
• Progress reports: Overall project, milestones chart, critical path
1. Chart showing responsibility of department? Function to carry out particular
activates.
2. Progress summery reports
• Updating: I t is the process of producing a fresh set of schedule and other reports to
take account of one or more of the following: 1. A change to the project parameter, an
unexpected increase or decrease in the resources available, change cost rate, or new target
dates.
 2. A change in network logic due to change in project scope, design change, etc.
3. To have a new schedule that takes into account the project made to date.
• Importing/exporting: The process of bringing information into the PM software
from other application such as word processing, spread sheet, etc is called importing.
Similarly, sending information from PM software to other application is called exporting.
• Project monitoring and tracking: Tracking the progress about schedule and cost
is an important aspect of project management. Most PM software package permits the
users to define a baseline plan and compare the actual progress with respects to those in
the baseline plan.