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NAME: MEENAKSHI

ASSIGNMENT

MBA – II Semester

PROJECT MANAGEMENT - MB0033


Set 1 – (60 Marks)

1. Define project management, resource, process and project


cycle. Explain the life-cycle of a project.

Ans.: A project is a set of activities which are networked in and order and
aimed towards achieving the goals of a project. Upon the completion of all
the activities the goals of the project would have been achieved. A project is
undertaken to achieve a purpose.
Management is the technique of understanding the problems, needs and
controlling the use of resources, such as cost, time, manpower, materials,
etc.
• Project management is an art of controlling the cost, time,
manpower, and hardware and software resources involved in a
project.
• Resource refers to manpower, machinery, money and materials
required in the project.
• A process is part of the project which consists of simple and routine
instructions to achieve a desired result of any activity of the project. A
process is responsible to bring about the changes in the input fed to
the process and gives out desired outputs as results of the process.
• A project cycle basically consists of the various activities of
operations, resources and the limitations imposed on them.
The life cycle means the important phases that are required
by any project from start to end of the project. Normally this process of
project will go through the preparation which constitutes formulation and
modeling, planning, control, execution, monitoring, completion and review.
Understanding the project life cycle – In the preparation stage, the project
manager along with the associates and team members draft the outline of the
project. They identify the various factors required to be taken care of in the
project. Based on their discussion they formulate the plans and model the
activities for execution. Budgets are prepared. Once the model is approved it
is then recommended for implementation.
During this stage roles and responsibilities of the
various members involved in the project are listed out. Also the team works on
the feasibility report to assess the project feasibility with respect to time,
economics and technicalities. The factors which are arrived at based on risk
analysis and uncertainties are used to establish the control factors to be
exercised during the execution of the project. Various monitoring tools are set
to monitor the project progress.
The implementation stage involves the execution of the project as agreed,
while carefully monitoring progress and managing changes. The completion
stage involves the satisfactory delivery to the customer the products or
services. This is followed by project review to look into the various issues
which affected the project during the course of its execution.
Any project is undertaken to deliver either a service or a product. Project
deliverables could be a set of outputs that are expected during various stages
of the project. It could be as simple as a new product or modification to an
existing product.

A life cycle of a project consists of -


a) Understanding the scope of the project,
b) Objectives of the project,
c) Formulation and planning various activities,
d) Project execution and
e) Project monitoring and control the project resources.

Input
Input Process
Process Output
Project Management Process

Traditionally, project management includes a number of elements: four to five


process groups, and a control system. Regardless of the methodology or
terminology used, the same basic project management processes will be used.

The project development stages


Major process groups generally include:
• Initiation
• Planning or development
• Production or execution
• Monitoring and controlling
• Closing

Initiation

The initiation processes determine the nature and scope of the project. If this
stage is not performed well, it is unlikely that the project will be successful in
meeting the business’ needs. The key project controls needed here are an
understanding of the business environment and making sure that all
necessary controls are incorporated into the project. Any deficiencies should
be reported and a recommendation should be made to fix them.
The initiation stage should include a plan that encompasses the following
areas:
• Analyzing the business needs/requirements in measurable goals
• Reviewing of the current operations
• Financial analysis of the costs and benefits including a budget
• Stakeholder analysis, including users, and support personnel for the
project
• Project charter including costs, tasks, deliverables, and schedule
Planning and design

Planning Process Group Activities

After the initiation stage, the project is planned to an appropriate level of


detail. The main purpose is to plan time, cost and resources adequately to
estimate the work needed and to effectively manage risk during project
execution. As with the Initiation process group, a failure to adequately plan
greatly reduces the project's chances of successfully accomplishing its goals.
Project planning generally consists of
• determining how to plan (e.g. by level of detail or rolling wave);
• developing the scope statement;
• selecting the planning team;
• identifying deliverables and creating the work breakdown structure;
• identifying the activities needed to complete those deliverables and
networking the activities in their logical sequence;

Executing

Executing Process Group Processes

Executing consists of the processes used to complete the work defined in the
project management plan to accomplish the project's requirements. Execution
process involves coordinating people and resources, as well as integrating and
performing the activities of the project in accordance with the project
management plan. The deliverables are produced as outputs from the
processes performed as defined in the project management plan.

Monitoring and controlling


Monitoring and controlling consists of those processes performed to observe
project execution so that potential problems can be identified in a timely
manner and corrective action can be taken, when necessary, to control the
execution of the project. The key benefit is that project performance is
observed and measured regularly to identify variances from the project
management plan.
Monitoring and Controlling includes:
• Measuring the ongoing project activities (where we are);
• Monitoring the project variables (cost, effort, scope, etc.) against the
project management plan and the project performance baseline (where
we should be);
• Identify corrective actions to address issues and risks properly (How can
we get on track again);
• Influencing the factors that could circumvent integrated change control
so only approved changes are implemented

In multi-phase projects, the monitoring and controlling process also provides


feedback between project phases, in order to implement corrective or
preventive actions to bring the project into compliance with the project
management plan.

Project Maintenance is an ongoing process, and it includes:


• Continuing support of end users
• Correction of errors
• Updates of the software over time

Monitoring and controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user
problems are resolved.
Over the course of any construction project, the work scope may change.
Change is a normal and expected part of the construction process. Changes
can be the result of necessary design modifications, differing site conditions,
material availability, contractor-requested changes, value engineering and
impacts from third parties, to name a few. Beyond executing the change in the
field, the change normally needs to be documented to show what was actually
constructed. This is referred to as Change Management. Hence, the owner
usually requires a final record to show all changes or, more specifically, any
change that modifies the tangible portions of the finished work.
Closing

Closing includes the formal acceptance of the project and the ending thereof.
Administrative activities include the archiving of the files and documenting
lessons learned.
This phase consists of:
• Project close: Finalize all activities across all of the process groups to
formally close the project or a project phase
• Contract closure: Complete and settle each contract (including the
resolution of any open items) and close each contract applicable to the
project or project phase
Resources: In project management terminology, resources are required to
carry out the project tasks. They can be people, equipment, facilities, funding,
or anything else capable of definition (usually other than labour) required for
the completion of a project activity. The lack of a resource will therefore be a
constraint on the completion of the project activity. Resources may be
storable or non storable. Storable resources remain available unless depleted
by usage, and may be replenished by project tasks which produce them. Non-
storable resources must be renewed for each time period, even if not utilised
in previous time periods.

2. What are the roles and responsibilities of a project manager?

Title Role
Project Manager The person responsible for developing, in
conjunction with the Project Sponsor, a
definition of the project. The Project
Manager then ensures that the project is
delivered on time, to budget and to the
required quality standard (within agreed
specifications). He/she ensures the project
is effectively resourced and manages
relationships with a wide range of groups
(including all project contributors).
The Project Manager is also responsible
for managing the work of consultants,
allocating and utilising resources in an
efficient manner and maintaining a co-
operative, motivated and successful
team.
Responsibilities
• Budgeting and cost control
• Scheduling tasks
• Allocating resources
• Tracking project expenditures
• Ensuring technical quality
• Manage relations with the customer and company
• Managing and leading the project team.
• Recruiting project staff and consultants.
• Managing co-ordination of the partners and working groups
engaged in project work.
• Detailed project planning and control including:
• Developing and maintaining a detailed project plan.
• Managing project deliverables in line with the project plan..
• Recording and managing project issues and escalating where
necessary
• Resolving cross-functional issues at project level.
• Managing project scope and change control and escalating
issues where necessary.
• Monitoring project progress and performance.
• Providing status reports to the project sponsor.
• Managing project training within the defined budget.
• Liaison with, and updates progress to, project steering
board/senior management.
• Managing project evaluation and dissemination activities.
• Managing consultancy input within the defined budget.
• Final approval of the design specification.
• Working closely with users to ensure the project meets
business needs.
• Definition and management of the User Acceptance Testing
programme.
• Identifying user training needs and devising and managing
user training programmes.

A project manager is a person who manages the project. The project


manager is responsible to carry out all the tasks of a project. Responsibilities
of the project manager include -
Life cycle of a project manager overlaps with the development life cycle
in the middle. Duties of a project manager start before the development and
continue after delivery of the product.
3. Explain the various steps in the identification process of a
project. What are the tools used in project planning?
Ans.: The main steps in the identification process of any project are :
i. Identify initial requirements.
ii. Validate them against the project objective.
iii. Identify the criteria for assessing the success of both the final project
product and the process used to create it. Ex: quality objectives, quantitative
requirements for the project.
iv. Identify the framework of the solution
v. Prepare a template of the frame work of solution to illustrate the project
feasibility.
vi. Prepare relevant charts to demonstrate the techniques of executing the
project and its different stages.
vii. Prepare a proper project schema of achieving the defined business
requirements for the project.
viii. Identify training requirement
ix. Make a list of the training program necessary for the personnel working on
the project.
x. Identify the training needs of the individuals working in various functions
responsible in the project.
xi. Prepare a training plan and a training calendar.
xii. Assess the capabilities and skills of all those identified as part of the
project organization

The tools that are used in project planning are

1. Project organization

Process Skills and activities

• Prepare an outline project justification, plan and project


budget
Initiati
• Selection and briefing of the project team, assigning roles
on
and organization
• Feasibility study- risk and key success factors

Planni • Project definition and project plan


ng • Communicate to the team

• Allocating and monitoring the work and cost


Execut
• Ensuring work and team cohesion
ion
• Reporting progress
Contro • Monitoring progress and managing changes
l • Helping the team to solve project problems

• Satisfactory delivery
Close
• Compiling lessons from project experience

1. Project structure
Development plan, project tracking and oversight.

2. Project Key personnel – Identify those business areas that are within
the scope or directly interface with the scope boundary and list them in
the “Business area” column of the project assignment worksheet
Identify the key personnel for each area and list them in the “Person”
column of the project assignment worksheet.
3. Project management team
It is a senior management team, which will be accountable for the project.
• Identify project sponsor, client representative and technical
representative.
• Stage managers- who will plan and manage the project on a day-to-day
basis for this stage
• Project coordinators- client coordinator and technical coordinator
• Clearly define these coordination, control activities and identify the brief
suitable personnel to carry them out
1. Key stakeholders
Identify management level personnel who are critical to the success of the
project.
Document the responsibilities of stakeholders
6. Stage teams
Identify appropriate personnel required for the stage, define the team
structure and appoint team leaders
Document the time commitment and responsibilities to be performed by
the team members.
7. Key resources
Individuals assigned to a key resource role may work towards gathering
“Business key resources” and “Technical key resources”. They are project
coordinators and team invitees.

8. Work Breakdown Structure (WBS)


The entire process of a project may be considered to be made up on
number of sub process placed in different stage called the Work Breakdown
Structure (WBS).
A typical example of a work breakdown structure of a recruitment process
is indicated below :

This is the technique to analyze the content of work and cost by breaking it
down into its component parts.
Project key stages form the highest level of the WBS, which is then used to
show the details at the lower levels of the project. Each key stage comprises
many tasks identified at the start of planning and later this list will have to be
validated.
WBS is produced by identifying the key elements, breaking each element
down into component parts and continuing to breakdown until manageable
work packages have been identified. These can then be allocated to the
appropriate person. The WBS does not show dependencies other than a
grouping under the key stages. It is not time based- there is no timescale o
the drawing.
Task duration
Identifying lead and lag times helps in working out task duration.
Lead time: An amount of time, which a successor task can overlap with its
predecessor task, i.e. the time before the completion of the predecessor at
which the successor can start.
Lag time: An amount of time, between a predecessor and a successor task,
i.e. the time after the completion of the predecessor that the start of the
successor is delayed

4. What is Risk Management? How can risks be prioritized?

Ans.: Risk is the effect of uncertainty on objectives (whether positive or


negative). Risks are those events or conditions that may occur and whose
occurrence has a harmful or negative impact on a project. Risk management
aims to identify the risks and then take actions to minimize their effect on the
project. Risk management entails additional cost. Hence risk management can
be considered cost-effective only if the cost of risk management is
considerably less than the cost incurred if the risk materializes.
Risk management can therefore be considered the identification,
assessment, and prioritization of risks followed by coordinated and economical
application of resources to minimize, monitor, and control the probability
and/or impact of unfortunate events [1] or to maximize the realization of
opportunities. Risks can come from uncertainty in financial markets, project
failures, legal liabilities, credit risk, accidents, natural causes and disasters as
well as deliberate attacks from an adversary.
There are four steps to manage a risk:
1. Risk identification,
2. Risk analysis,
3. Risk management planning, and
4. Risk review.
Risk Identification
To identify risks, we must first define risk. Risks are potential problems, ones
that are not guaranteed to occur. When people begin performing risk
identification they often start by listing known problems. Known problems are
not risks. During risk identification, you might notice some known problems. If
so, just move them to a problem list and concentrate on future potential
problems.

Risk identification can be done using a brainstorming session. The brainstorm


typically takes 15-30 minutes. Be sure to invite anyone who can help you think
of risks. Invite the project team, customer, people who have been on similar
projects, and experts in the subject area of the project. Limit the group size to
nine people. In the brainstorming session, people call out potential problems
that they think could hurt the project. New ideas are generated based on the
items on the brainstorm list. A project manager can also use the process to
refer to a database of risk obtained from past.
The information obtained from such databases can help the
project manager to evaluate and assess the nature of the risk and its impact
on the project. Also to a great extent the judgment of the project manager
based upon his past experience comes very handy in dealing with risks.
Another important method is to generate alternative solution or methodology
to deal with risk. Generate solution by means of group review meetings or a
brainstorm session.
During the brainstorm, consider the following items:
Selection of weak areas in a project: Such as unknown technology being used
or to be used.
Things, that is critical or extremely important to the effort, such as the timely
delivery of a vendor’s database software, creation of translators, or a user
interface that meets the customer’s needs.
Things that have caused problems in the past are loss of key staff, missed
deadlines, or error-prone software.
Example of risks is: “We may not have the requirements right,” “The
technology is untested,” “Key people might leave,” “The server won’t restart
in situation X,” and “People might resist the change.” Any potential problem,
or critical project feature, is a good candidate for the risk list.
Once you have created a list, work with the group to clarity each item.
Duplicate items can be removed.
Risk Analysis
The first step in risk analysis is to make each risk item more specific. Risks
such as, “Lack of Management buy-in,” and “people might leave,” are a little
ambiguous. In these cases the group might decide to split the risk into smaller
specific risks, such as, “manager Jane decides that the project is not
beneficial,” “Database expert might leave,” and “Webmaster might get pulled
off the project.”

The next step is to set priorities and determine where to focus risk mitigation
efforts. Some of the identified risks are unlikely to occur, and others might not
be serious enough to worry about. During the analysis, discuss with the team
members, each risk item to understand how devastating it would be if it did
occur, and how likely it is to occur. For example, if you had a risk of a key
person leaving, you might decide that it would have a large impact on the
project, but that it is not very likely.

In the process below, we have the group agree on how likely it thinks each risk
item is to occur, using a simple scale from 1 to 10 (where 1 is very unlikely
and 10 is very likely). The group then rates how serious the impact would be if
the risk did occur, using a simple scale from 1 to 10 (where 1 is little impact
and 10 is very large). To use this numbering scheme, first pick out the items
that rate 1 and 10, respectively. Then rate the other items relative to these
boundaries. To determine the priority of each risk item, calculate the product
of the two values, likelihood and impact. This priority scheme helps push the
big risks to the top of the list, and the small risks to the bottom. It is a usual
practice to analyze risk either by sensitivity analysis or by probabilistic
analysis.

In sensitivity analysis a study is done to analyze the changes in the variable


values because of a change in one or more of the decision criteria.
In the probability analysis, the frequency of a particular event occurring is
determined, based on which it average weighted average value is calculated.
Each outcome of an event resulting in a risk situation in a risk analysis process
is expressed as a probability. Risk analysis can be performed by calculating
the expected value of each alternative and selecting the best alternative.

Ex. : Now that the group has assigned a priority to each risk, it is ready to
select the items to mange. Some projects select a subset to take action upon,
while others choose to work on all of the items. To get started, you might
select the top 3 risks, or the top 20%, based on the priority calculation.
Risk Management Planning
There are two things one can do to manage risk. The first is to take action to
reduce (or partially reduce) the likelihood of the risk occurring. For example,
some project that work on process improvement make their deadlines earlier
and increases their efforts to minimize the likelihood of team members being
pulled off the project due to changing organizational priorities. In a software
product, a critical feature might be developed first and tested early.

Second, we can take action to reduce the impact if the risk does occur.
Sometimes this is an action taken prior to the crisis, such as the creation of a
simulator to use for testing if the hardware is late. At other times, it is a simple
backup plan, such as running a night shift to share hardware.
For the potential loss of a key person, for example, we might do two things:
Plan to reduce the impact by making sure other people become familiar with
that person’s work, or reduce the likelihood of attrition by giving the person a
raise, or by providing day-care.
Review Risks
You want to review your risks periodically so you can check how well
mitigation is progressing. You can also see if the risk priorities need to change,
or if new risks have been discovered, you might decide to rerun the complete
risk process if significant changes have occurred on the project. Significant
changes might include the addition of new features, the changing of the target
platform, or a change in project team members. Many people incorporate risk
review into other regularly scheduled project reviews.
In short, risk management is the planning to potential problems,
and the management of actions taken related to those problems.
Prioritization of risks:
In ideal risk management, a prioritization process is followed
whereby the risks with the greatest loss and the greatest probability of
occurring are handled first, and risks with lower probability of occurrence and
lower loss are handled in descending order. In practice the process can be
very difficult, and balancing between risks with a high probability of
occurrence but lower loss versus a risk with high loss but lower probability of
occurrence can often be mishandled.
Intangible risk management identifies a new type of a risk that has
a 100% probability of occurring but is ignored by the organization due to a
lack of identification ability. For example, when deficient knowledge is applied
to a situation, a knowledge risk materializes. Relationship risk appears when
ineffective collaboration occurs. Process-engagement risk may be an issue
when ineffective operational procedures are applied. These risks directly
reduce the productivity of knowledge workers, decrease cost effectiveness,
profitability, service, quality, reputation, brand value, and earnings quality.
Intangible risk management allows risk management to create immediate
value from the identification and reduction of risks that reduce productivity.
Risk management also faces difficulties in allocating resources.
This is the idea of opportunity cost. Resources spent on risk management
could have been spent on more profitable activities. Again, ideal risk
management minimizes spending and minimizes the negative effects of risks.

6. What is Project Management Knowledge Areas? Explain briefly


PMIS.

Ans.: It comprises of various techniques needed to manage projects, the


practical methodologies adopted in formulating a project and managing the
resources which would affect the project completion.

PROJECT INTEGRATION MANAGEMENT

A subset of project management that includes the processes required to


ensure that the various elements of the project are properly coordinated. It
consists of:

• Project plan development—integrating and coordinating all project plans


to create a consistent, coherent document.
• Project plan execution—carrying out the project plan by performing the
activities included therein.
• Integrated change control—coordinating changes across the entire
project.

PROJECT SCOPE MANAGEMENT

A subset of project management that includes the processes required to


ensure that the project includes all the work required, and only the work
required, to complete the project successfully. It consists of:

• Initiation—authorizing the project or phase.


• Scope planning—developing a written scope statement as the basis for
future project decisions.
• Scope definition—subdividing the major project deliverables into
smaller, more manageable components.

PROJECT TIME MANAGEMENT

A subset of project management that includes the processes required to


ensure timely completion of the project. It consists of:

• Activity definition—identifying the specific activities that must be


performed to produce the various project deliverables.
• Activity sequencing—identifying and documenting interactivity
dependencies.
• Activity duration estimating—estimating the number of work periods
that will be needed to complete individual activities.
PROJECT COST MANAGEMENT

A subset of project management that includes the processes required to


ensure that the project is completed within the approved budget. It consists
of:

• Resource planning—determining what resources (people, equipment,


materials) and what quantities of each should be used to perform project
activities.
• Cost estimating—developing an approximation (estimate) of the costs of
the resources needed to complete project activities.
• Cost budgeting—allocating the overall cost estimate to individual work
activities.

PROJECT HUMAN RESOURCE MANAGEMENT

A subset of project management that includes the processes required to


make the most effective use of the people involved with the project. It
consists of:

• Organizational planning—identifying, documenting, and assigning


project roles, responsibilities, and reporting relationships.
• Staff acquisition—getting the needed human resources assigned to and
working on the project.
• Team development—developing individual and group skills to enhance
project performance.

PROJECT RISK MANAGEMENT

Risk management is the systematic process of identifying, analyzing, and


responding to project risks. It includes maximizing the probability and
consequences of positive events and minimizing the probability and
consequences of adverse events to project objectives. It includes:

• Risk management planning—deciding how to approach and plan the risk


management activities for a project.
• Risk identification—determining which risks might affect the project and
document their characteristics.
• Qualitative risk analysis—performing a qualitative analysis of risks and
conditions to prioritize their effects on project objectives.

PROJECT PROCUREMENT MANAGEMENT

A subset of project management that includes the processes required to


acquire goods and services to attain project scope from outside the
performing organization. It consists of:
• Procurement planning—determining what to procure and when.
• Solicitation planning—documenting product requirements and
identifying potential sources.
• Solicitation—obtaining quotations, bids, offers, or proposals, as
appropriate.
Project Management Information System (PMIS) is an information
system consisting of the tools and techniques used to gather, integrate,
and disseminate the outputs of project management processes. It is used
to support all aspects of the project from initiating through closing, and can
include both manual and automated systems.
The project management information system (PMIS) is a Tool and
Technique in Direct and Manage Project Execution of the Execution Process
Group, part of the enterprise environmental factors, provides access to an
automated tool, such as a scheduling software tool, a configuration
management system, an information collection and distribution system, or
web interfaces to other online automated systems used during the Direct
and Manage Project Execution effort.
We all know that accurate, timely, and relevant
information is essential to the decision-making process of a project and that
relying on an inadequate information system puts a project at risk. We all
know that information is a valuable resource for project managers. Despite
the fact that we all know these things, project managers often fail to deliver
the types of information needed to ensure project success. Implementing a
project management information system (PMIS) is one way to address
critical project information needs.

One of my major clients, an international engineering


firm, decided to break the cycle of miscommunication and derailed projects
by ordering the development and implementation of a PMIS that is able to
provide upper management with adequate information about all the
projects in the organization’s portfolio. Traditionally, engineers and project
managers do not communicate project status adequately with upper
management and functional departments. They believe that projects are
their responsibility and they have the authority to deliver them.
Furthermore, functional departments are often reluctant or do not have
time to provide information to project engineers. These circumstances
often lead to late, over budget, and low quality projects.

6. List out the macro issues in project management and explain each?

a) Evolving key success factors (KSF) upfront: In order to provide


complete stability to fulfilment of goals, one need to constantly evaluate
from time to time, the consideration of what will constitute the success
of completing a project and assessing its success before completion. The
KSF should be evolved based on a basic consensus document (BCD). KSF
will also provide an input to effective exit strategy (EES). Exit here does
not mean exit from the project but from any of the drilled down
elemental activities which may prove to be hurdles rather than
contributors.
b) Empowerment Title (ET): ET reflects the relative importance of
members of the organisation at three levels.
i) Team members empowered to work within limits of their
respective allocated responsibilities the major change from
bureaucratic systems is an expectation from theses members to
innovate and contribute to tome and cost.
ii) Group leaders are empowered additionally to act independently
towards client expectation and are also vested with some limited
financial powers.
iii) Managers are empowered further to act independently but to
maintain a scientific balance among time, cost, expectation and
perception, apart from being a virtual advisor to the top
management.
a) Partnering Decision making (PDM): PDM is a substitute to
monitoring and control a senior with better decision making process with
work closely with the project managers as well as members to plan what
based can be done to manage the future better from past experience.
The key here is the active participation of members in the decision
making process. The ownership is distributed among all irrespective of
levels the term equally should be avoided here since ownership is not
quantifiable. The right feeling of ownership is important.

The PD process is made scientific through:

i) Earned Value management system (EVMS)


ii) Budgeted Cost of work scheduled (BCWS)
iii) Budgeted cost of work performed (BCWP)
iv) Actual cost of work performed (ACWP)

a) Management by exception (MBE): “No news is good news”. If a


member wants help he or she located a source and proposed to the
manager only if such help is not accessible for free. Similarly a member
should believe that a team leaders silence is a sign of approval should
not provoke comments through excessive seeking of opinions. In short
leave people alone and let situation perform the demanding act. The
bond limit of MBE can be evolved depending on the sensitivity of the
nature and size of the project.

Set – 2

1. Providing adequate resources is key to productivity – comment.


Ans.: Key elements of a Productivity Improvement Program:
1. Obtain Upper Management Support. Without top management support,
experience shows a PIP likely will fail. The Chief Executive Officer should
issue a clear, comprehensive policy statement. The statement should be
communicated to everyone in the company. Top management also must be
willing to allocate adequate resources to permit success.
2. Create New Organizational Components. A Steering Committee to
oversee the PIP and Productivity Managers to implement it are essential.
The Committee should be staffed by top departmental executives with the
responsibilities of goal setting, guidance, advice, and general control. The
Productivity Managers are responsible for the day-to-day activities of
measurement and analysis. The responsibilities of all organizational
components must be clear and well established.
3. Plan Systematically. Success doesn't just happen. Goals and objectives
should be set, problems targeted and rank ordered, reporting and
monitoring requirements developed, and feedback channels established.
4. Open Communications. Increasing productivity means changing the way
things are done. Desired changes must be communicated. Communication
should flow up and down the business organization. Through publications,
meetings, and films, employees must be told what is going on and how they
will benefit.
5. Involve Employees. This is a very broad element encompassing the
quality of work life, worker motivation, training, worker attitudes, job
enrichment, quality circles, incentive systems and much more. Studies show
a characteristic of successful, growing businesses is that they develop a
"corporate culture" where employees strongly identify with and are an
important part of company life. This sense of belonging is not easy to
engender. Through basic fairness, employee involvement, and equitable
incentives, the corporate culture and productivity both can grow.
6. Measure and Analyze. This is the technical key to success for a PIP.
Productivity must be defined, formulas and worksheets developed, sources
of data identified, benchmark studies performed, and personnel assigned.
Measuring productivity can be a highly complex task. The goal, however, is
to keep it as simple as possible without distorting and depreciating the data.
Measurement is so critical to success; a more detailed analysis is helpful.
2. Explain the relevance of work breakdown structure in determine
responsibility area. Explain in detail GDM and its key features?

Ans.: The Global delivery model (GDM) is adopted by an industry or business


such that it has a capability to plan design, deliver and serve to any customer
or client worldwide with speed, Accuracy, Economy and reliability.

The key features of GDM are:-

a) Standardization: Ingenious design and development of components and


features which like to be accepted by 90% of worldwide customer.
Global standard of design focusing on highly standardized method and
processes of manufacture or development. Adopt block-and-socket
concept with minimum adaptable or connection.
b) Modularization: Product or solution split up into smallest possible
individual identifiable entities, with limited individuals functioning
capability but powerful and robust in combination with other modules.
c) Minimum customization: Minimum changes or modifications to suit
individual customers.
d) Maximum micro structuring: splitting of the product modules further into
much smaller entity identifiable more through characteristics rather
than application features. Approach through standardization of these
microbial entities even across multiple modules. Application of these
microbial entities to rest within multiple projects or products or even as
add-ons suit belated customer needs.
3. What do you understand by Resource Smoothing? What is the
significance of reviewing ROI?
Ans.: Resource smoothing is part of the resource levelling process. In itself,
resource smoothing is the process that, not withstanding any constraints
imposed during the levelling process, attempts to determine a resource
requirement that is "smooth" and where peaks and troughs are eliminated. For
example, even if 7 units of a given resource are available at any one time,
utilizing 5 of these units each week is preferable to 4 one week, 7 the next, 2
the next and so on. Even if there is no limit to the amount of any one resource
available, it is still desirable that resource usage is as smooth as possible.
Given that the resource requirements of those activities on the critical path
are fixed, some order or priority needs to be established for selecting which
activity and which particular resource associated with this activity should be
given priority in the smoothing process. In determining which activity should
be given priority, a subjective judgment should be made about the type of
resource (or resources) associated with each activity; priority should be given
to the activities whose resources are considered to be most important. Beyond
this consideration, activities should be ranked in order of total work content
and total float or slack available for that activity. A useful device for
prioritizing is to consider the ratio of total work content/total float remaining
and give priority to activities with the highest value of this ratio.
Return on Investment (ROI) is the calculated benefit that an organization is
projected to receive in return for investing money (resources) in a project.
Within the context of the Review Process, the investment would be in an
information system development or enhancement project. ROI information is
used to assess the status of the business viability of the project at key
checkpoints throughout the project’s lifecycle. ROI may include the benefits
associated with improved mission performance, reduced cost, increased
quality, speed, or flexibility, and increased customer and employee
satisfaction. ROI should reflect such risk factors as the project’s technical
complexity, the agency’s management capacity, the likelihood of cost
overruns, and the consequences of under or non performance. Where
appropriate, ROI should reflect actual returns observed through pilot projects
and
Prototypes.ROI should be quantified in terms of dollars and should include a
calculation of the breakeven point (BEP), which is the date when the
investment begins to generate a positive return. ROI should be recalculated at
every major checkpoint of a project to see if the BEP is still on schedule, based
on project spending and accomplishments to date. If the project is behind
schedule or over budget, the BEP may move out in time; If the project is ahead
of schedule or under budget the BEP may occur earlier. In either case, the
information is important for decision making based on the value of the
investment throughout the project lifecycle.
Any project that has developed a business case is expected to refresh the ROI
at each key project decision point (i.e., stage exit) or at least yearly.
If the detailed data collection, calculation of benefits and costs, and
capitalization data from which Return on Investment (ROI) is derived was not
required for a particular project, then it may not be realistic or practical to
require the retrofit calculation of ROI once the project is added to the Review
portfolio. In such a case, it is recommended that a memorandum of record be
developed as a substitute for ROI. The memorandum should provide a brief
history of the program, a description of the major benefits realized to date
with as much
Quantitative data as possible and a summary of the process used to identify
and select system enhancements.
Some of the major benefits experienced by sites that installed the information
system that would be important to include in the memorandum are: a)
Decommissioning of mainframe computers
b) Reduction/redirection of labour
c) Elimination of redundant systems
d) Ability to more cost effectively upgrades all sites with one standard upgrade
package.
In each case above, identify the specific site, systems, and labour involved in
determining the cited benefit. Identify any costs or dollar savings that are
known or have been estimated. The memorandum will be used as tool for
responding to any future audit inquiries on project ROI. For the Project
Management Review; it is recommended that the project leader replace the
text on the ROI document through
(1) A note stating which stage of its cycle the project is in;
(2) A bulleted list of the most important points from the memorandum of
record; and
(3) A copy of the memorandum of record for the Review repository.
In subsequent Reviews of the information system, the ROI slide can be
eliminated from the package. There is one notable exception to this guidance.
Any internal use software project in the maintenance phase of its lifecycle that
adds a new site or undertakes an enhancement or technology refresh that
reaches the cost threshold established by Standard will need to satisfy
capitalization requirements. It requires all agencies to capitalize items
acquired or developed for internal use if the expected service life is two or
more years and its cost meets or exceeds the agency’s threshold for internal
use software. The standard requires capitalization of direct and indirect costs,
including employee salaries and benefits for both Federal and Contractor
employees who materially participate in the Software project. Program
managers are considered to be the source of cost information for internal use
software projects. If capitalization data is collected for the project in the
future, the project would be expected to calculate and track its ROI.

4. Explain the concept of concurrency in High Technology


Development.

Ans.: Always aim one step higher in performance usually; high technology
development has a long gestation period. By the time the product is
perfected, it might have become obsolete. This necessitates that the period be
shortened. The other alternative is to make technology development futuristic
i.e. keeps the aim or target one step beyond what is required. Combination of
both will yield better results. Using principles of concurrent engineering, we
can start building components as developed and assembling on ad hoc basis
and testing them and making changes taking into consideration any new
requirements. Every effort to make the product
Contemporary will improve the competitive advantage. Build concurrency into
every activity Building concurrency into every activity is essential to reduce
the development cycle time and to counter the technology obsolescence.
Many of the tasks that are normally done in a serial fashion can be done in
parallel by synchronizing the flow of information. The practices of the
concurrent engineering where the design of the product and all its associated
processes are carried out simultaneously based on team work and
participation. Would not only help in reducing the development cycle time, but
also improves the product functionality with regard to requirements.
Concurrency can be accomplished in many ways both for product
development as well as technology transfer, user evaluation and production.
The following give some guidelines in the form of rules which would help
organization to be strong in this area.

Rule 1: Identify the critical technologies and make a deliberate choice for
indigenous development
One of the main reasons for lack of high technology base is that no attempt
has ever been made for indigenous development. Hence, the first step in the
critical technology development is a deliberate decision for making the
process wholly indigenous. That a new track has to be laid invariably has
inherent risks. Time that may elapse before anything tangible is found will be
long. The quality of the outcome has to be proven with a lot of
experimentation, which costs money. The clients may suspect that the best is
not being given to them. Many persons, even in higher hierarchical positions
want the easy way out – import. But experience has shown that once the
process is started, it will be found that certain technologies are easier to
develop than acquire from outside sources. The knowledge that gets acquired,
experience that is gained and confidence that it endows, makes the
organization self-sufficient.
The encouragement that people get makes it worthwhile.

Rule 2: Always aim one step higher in performance


Usually, high technology development has a long gestation period. By the time
the product is perfected, it might have become obsolete. This necessitates
that the period be shortened. The other alternative is to make technology
developments futuristic i.e. keep the aim or target one step beyond what is
required. Combination of both will yield better results. Using principles of
concurrent engineering, we can start building components as developed and
assembling on ad hoc basis and testing them and making changes taking into
consideration any new requirements. Every effort to make the product
contemporary will improve the competitive advantage.

Rule 3: Focus on Multiuse technologies – Multiuser and Multirole systems


During the course of development, the customer preferences may undergo a
great change, and the intended application of the technology or the product
may no longer exist. This uncertainty demands that we should aim at
multiuser products. The possibility of making products which can address
Multifunction should be considered. All these are to be conducted on a
continuous basis so that obsolescence is avoided.

Rule 4: Spot the competence of Divsio and empower them for technology
development
Every division of an organization has certain inherent strength, sometimes
unique to itself. We must identify and build around this strength to realize
maximum contribution. The strength may be
Software skills, large trainable power, culture and value system or excellence
in academics, It can be translated into the required competence through
innovation management.

Rule 5: Ensure Redundancy for critical systems and technologies


It has been observed that critical technologies have a tendency of acquiring
high uncertainties. Multitechnology routes are devised so that the target is
reached in spite of blocks on any other route,
Even multiple sourcing is deployed to ensure availability without any failure.
The redundancy needs extra resources, but then we cannot allow critical
systems to stop for any reason. The project and its success within the time
slot allotted is worth making sacrifices for.

Rule 6: Focus efforts through programme / project / mission oriented


approach
The traditional way of technology development is carried out without any link
to the product development of activities. The outcome of these activities will
be in the form of models, publications and working prototypes to some
designed / assumed specifications. The development is not normally bound by
any time frame or the cost or the product is not directly usable for any
application.
This approach is not suitable for the development of high technology systems
in a resource Constrained environment. Projecting the technology
development provides a sense of purpose and direction to the development
efforts and integrates all the efforts towards the common goal. The outcome
of the development efforts will be channelled into useful products.

Rule 7: Build concurrency into every activity


Building concurrency into every activity is essential to reduce the
development cycle time and to counter the technology obsolescence. Many of
the tasks that are normally done in a serial fashion can be done in parallel by
synchronizing the flow of information. The practices of the concurrent
engineering where the design of the product and all its associated processes
are carried out simultaneously based on team work and participation. Would
not only help in reducing the development cycle time, but also improves the
product functionality with regard to requirements.
Concurrency can be accomplished in many ways both for product
development as well as technology transfer, user evaluation and production.

Rule 8: Build long term Partnership with all the stake holders
High technology development is a dynamic process with large information
exchange, teamwork, problems, failures and successes. It requires long term
partnership and commitment from all stakeholders including the development
partners, production partners and customers. This can be achieved by
tailoring suitable management structure and review system such that at each
stage of the project all the stakeholders are involved. Many institutions
including R & D organizations, industries, academia will be useful in our
endeavors. It is essential to build suitable organizational interface with each
type of organization based on their priorities.

Rule 9: Focus on problem forecasting and prevention


The traditional project monitoring and control approach is based on solving
the problems as they arise during the project execution. In high technology
development projects that would involve delays which become very costly. At
every stage we need to ascertain that we are moving in the right direction.
Failures in the early stages of the projects are less costly and harmful than at
later stages. Forecasting can be done by trying to analyze all possible
situation during planning stage and trying to answer ‘what if’ questions can
obtain answers. They can be bases for effective prevention steps. Once the
practice starts, it may even become a standard method of starting a project.

Rule 10: Ensure continuous and integrated Performance Measurement


Measurement means evaluating the achieved outcomes against expected. The
process improves the actual activities which take us towards our goal and also
verify whether what we expected was right. Haphazard or ad hoc
measurements are worse than no measurement. When all persons know that
evaluation will be done on a continuous basis, they know that all that they do
get measured; there is emphasis on all activities. This means quality in the
performance.

5. What are the main utilities of an ERP package?


Ans.: Integration is Key to ERP Systems
Integration is an exceptionally significant ingredient to ERP systems. The
integration between business processes helps develop communication and
information distribution, leading to remarkable increase in productivity, speed
and performance.

The key objective of an ERP system is to integrate information and processes


from all functional divisions of an organization and merge it for effortless
access and structured workflow. The integration is typically accomplished by
constructing a single database repository that communicates with multiple
software applications providing different divisions of an organization with
various business statistics and information.

The Ideal ERP System

An ERP system would qualify as the best model for enterprise wide solution
architecture, if it chains all the below organizational processes together with a
central database repository and a fused computing platform.

Manufacturing

Engineering, resource & capacity planning, material planning, workflow


management, shop floor management, quality control, bills of material,
manufacturing process, etc.
Financials

Accounts payable, accounts receivable, fixed assets, general ledger, cash


management, and billing (contract/service)

Human Resource

Recruitment, benefits, compensations, training, payroll, time and attendance,


labour rules, people management

Supply Chain Management

Inventory management, supply chain planning, supplier scheduling, and claim


processing, sales order administration, procurement planning, transportation
and distribution

Projects

Costing, billing, activity management, time and expense

Customer Relationship Management

Sales and marketing, service, commissions, customer contact and after sales
support

ERP Systems Improve Productivity, Speed and Performance


Prior to evolution of the ERP model, each department in an enterprise had
their own isolated software application which did not interface with any other
system. Such isolated framework could not synchronize the inter-department
processes and hence hampered the productivity, speed and performance of
the overall organization. These led to issues such as incompatible exchange
standards, lack of synchronization, incomplete understanding of the enterprise
functioning, unproductive decisions and many more.

For example: The financials could not coordinate with the procurement team
to plan out purchases as per the availability of money.

Implementation of an ERP System


Implementing an ERP system in an organization is an extremely complex
process. It takes lot of systematic planning, expert consultation and well
structured approach. Due to its extensive scope it may even take years to
implement in a large organization. Implementing an ERP system will
eventually necessitate significant changes on staff and work processes.

• Consulting Services - are responsible for the initial stages of ERP


implementation where they help an organization go live with their new
system, with product training, workflow, improve ERP's use in the
specific organization, etc.
• Customization Services - work by extending the use of the new ERP
system or changing its use by creating customized interfaces and/or
underlying application code. While ERP systems are made for many core
routines, there are still some needs that need to be built or customized
for a particular organization.
The ERP implementation process goes through five major stages which are
Structured Planning, Process Assessment, Data Compilation & Cleanup,
Education & Testing and Usage & Evaluation.
1. Structured Planning: is the foremost and the most crucial stage where
an capable project team is selected, present business processes are
studied, information flow within and outside the organization is
scrutinized, vital objectives are set and a comprehensive
implementation plan is formulated.
2. Process Assessment: is the next important stage where the prospective
software capabilities are examined, manual business processes are
recognized and standard working procedures are constructed.
3. Data Compilation & Cleanup: helps in identifying data which is to be
converted and the new information that would be needed. The compiled
data is then analyzed for accuracy and completeness, throwing away the
worthless/unwanted information.
Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of them


are listed below:

• A perfectly integrated system chaining all the functional areas together


• The capability to streamline different organizational processes and
workflows
• The ability to effortlessly communicate information across various
departments\
• Improved efficiency, performance and productivity levels
Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations


implementing an ERP system, here are some of the most common obstacles
experienced:

• The scope of customization is limited in several circumstances


• The present business processes have to be rethought to make them
synchronize with the ERP
• ERP systems can be extremely expensive to implement
• There could be lack of continuous technical support

Q6. Explain three levels of SCMo documentation. Explain PILIN.


Ans.: It is possible today to establish a system aligned with an organization
supply chain. It can be an add-on to existing ERP systems.
The main objectives are:
i. Prevention of stock-out and over supply
ii. Early warnings, elimination of bull-whip effect
iii. Optimized allocation in bottleneck situations due to network-wide
inventory and demand transparency.
The main principles behind is the integration of supply chain participants,
exchange of demand and inventory information, transparency & visibility of
inventories and demands for multi-level supply chain. It also eliminates time
lags in the information flow and ensures synchronization of demand
information. SCMo set up (initialisation): The main steps for the set are;
a) Determination of the potentially critical part of the supply network
criteria.
b) Mapping of structures a) high shortage risk and effect, long lead and
reaction times, high total inventory cost, frequent engineering changes.
Main features- The main features of such systems are:
i. Releases and Interactions Planning- it is a simple way to create
project plan.
ii. Dashboard- It is a quick project status reporting tool.
iii. To-Do lists_ Identify and list the integrated assignments
iv. Integrated QA_ Bug tracking, test cases management, user story-
to-bugs traceability, QA stats and charts.
v. Time Tracking- Create more accurate estimate of time.
A typical iteration plan methodology
a) Add release (iterations will be generated automatically)
b) Add user stories
c) Assign user stories on iterations (control team velocity)
d) To plan next iteration just assign required user stories and control
remaining velocity units.
e) View assigned tasks and bugs
f) Change bugs status
g) Add spent time
h) Spent time report could be added form To-do list. To simplify time
calculation today’s time shown in the form.
i) Bugs status could be changes right from the To-do list as well. So
developer spends less time on frequent actions.
PILLIN

Growing realization that sustainable identifier infrastructure is required to deal


with the vast amount of digital assets being produced and stored within
universities. PILIN is a particular challenge for e-research communities where
massive amount of data are being generated without any means of managing
this date over any length of time. The broad objectives are to:

I. Support adoption and use of persistent identifiers and shared persistent


identifier management services by the project stakeholders.
II. Plan for a sustainable, share identifier management infrastructure that
enables persistence of identifiers and associated services over archival
lengths of time.
III. Deploying a worldwide site consolidated solution for exchanges sever
2003 at Microsoft.
IV. Pictures
V. Using Microsoft exchange server 2003 to consolidate more than 70
messaging sites worldwide into seven physical locations.

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Name:

ShivaRanjani

Subject:

MANAGEMENT INFORMATION

SYSTEMS

Roll Number:

Assignment Number:

MB0031 – SET 1

Study Center :

Date of Submission:

March, 2009

MBOO31 – MANAGEMENT INFORMATION SYSTEMS


Page 1
SET – 1

SOLVED ASSIGNMENT

Q 1: Define MIS ? What are the characteristics of MIS?

Answer:

MIS is an Information system which helps in providing the management of an

organization with information which is used by management for decision making.

A management information system (MIS) is a subset of the overall internal controls of a business covering the application of
people, documents, technologies, and procedures by management accountants to solving business problems such as costing a
product, service or a business-wide strategy. Management information systems are distinct from regular information systems
in that they are used to analyze other information systems applied in operational activities in the organization. Academically,
the term is commonly used to refer to the group of information management methods tied to the automation or support of
human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed
to carry out the functions of management. According to Philip Kotler "A marketing information system consists of people,
equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to
marketing decision makers."

The terms MIS and information system are often confused. Information systems include systems that are not intended for
decision making. The area of study called MIS is sometimes referred to, in a restrictive sense, as information technology
management. That area of study should not be confused with computer science. IT service management is a practitioner-
focused discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements
that are not necessarily focused on decision support.
MIS has a major impact on the functions of any organization. The organization derives

benefits from the systems in the following form:

a) Speedy access to information,

b) Interpretation of data,

c) Quick decisions,

d) Speedy actions,

e) increased productivity and thereby increase in the profit

f) Reduced transaction cost.

MIS characteristics

In any organization managers will have varieties of tasks to manage. MIS is mainly

designed to take care of the needs of the managers in the organization.

Organizations will have different departments like marketing, production, sales, inventory, maintenance etc. Each of these
departments function individually and also in relationship with other departments. Information is available in abundance.
MIS aids in integrating the information generated by various departments of the organization.

MIS helps in identifying a proper mechanism of storage of data. The data is

maintained in such a way that the unnecessary duplication of data is avoided.

MIS also helps in establishing mechanism to eliminate redundancies in data.


MIS as a system can be broken down into sub systems. Each such sub system may be
programmed. This results in easy access of data, accuracy of data and information. It helps in
maintaining the consistency of data.

Function of MIS

The main function of MIS is to help the managers and the executives in the

organization in decision-making.

Large quantities of data like customers information, competitors information, personnel records, sales data, accounting data
etc is collected from internal sources like the

Company records and external sources like annual reports and publications.

The collected data is organized in the form of a database.

The data from the database is processed and analyzed by using different tools

and techniques.

The results of the analysis are properly presented to the managers to help

them in decision-making.

==================================================================
====

Q 2: Explain strategic MIS categories in detail. Give relevant examples.

Answer:

Strategic Information System

A Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. A strategic information
system has been defined as, "The information system to support or change enterprise's strategy."

A SIS is a type of Information System that is aligned with business strategy and structure. The alignment increases the capability to respond
faster to environmental changes and thus creates a competitive advantage. An early example was the favorable position afforded American
and United Airlines by their reservation systems, Sabre and Apollo. For many years these two systems ensured that the two carriers' flights
appeared on the first screens observed by travel agents, thus increasing their bookings relative to competitors. A major source of
controversy surrounding SIS is their sustainability.
SISs are different from other comparable systems as:

1) they change the way the firm competes.


2) they have an external (outward looking) focus.
3) they are associated with higher project risk.
4) they are innovative (and not easily copied).

It is mainly concerned with providing and organization and its members an assistance to perform the routine tasks efficiently
and effectively. One of the major issue before any organization is the challenge of meeting its goals and objectives. Strategic
IS enable such organization in realizing their goals. Strategic Information System (SIS) is a support to the existing system
and helps in achieving a competitive advantage over the organizations competitors in terms of its objectives. This unit deals
with the critical aspects of the strategic information system. This units indicates the theoretical concepts and the way in
which the same are realized in practice. The flow of the unit is in such a way that it starts with the development of
contemporary theory about strategic uses of corporations' internal information systems leading to systems which transcend
the boundaries of particular organizations. The process whereby strategic information systems are created or identified is
then examined. A number of weaknesses in the existing body of theory are identified, and suggestions made as to directions
in which knowledge is or may be progressing. A strategic information system is concerned with systems which contribute
significantly to the achievement of an organization's overall objectives. The body of knowledge is of recent origin and highly
dynamic, and the area has an aura of excitement about it. The emergence of the key ideas, the process whereby strategic
information systems come into being is assessed, areas of weakness are identified, and directions of current and future
development suggested.

Information system is regarded as a tool to provide various services to different management functions. The tools have been
developing year by year and the application of the tool has become more and more diverse. In management it is now a very
power means to manage and control various activities and decision making process. The original idea of automating
mechanical processes got quickly succeeded by the rationalization and integration of systems. In both of these forms, IS was
regarded primarily as an operational support tool, and secondarily as a service to management. Subsequent to the
development, it was during the last few years that an additional potential was discovered. It was found that, in some cases,
information technology (IT) had been critical to the implementation of an organization's strategy. An organization’s strategy
supported by information system fulfilling its business objectives came to be known as Strategic Information System. The
strategic information system consists of functions that involved gathering, maintenance and analysis of data concerning
internal resources, and intelligence about competitors, suppliers, customers, government and other relevant organizations.
==================================================================
======

Q 3: Write a detailed note on the planning and development of MIS?

Answer:

Information is a corporate resource, as important as the capital, labour, know-how etc. and is being used for decision-
making. Its quality, therefore, is required to be very high. A low quality information would adversely affect the
organizational performance as it affects decision-making. The quality of information is the result of the quality of the input
data, processing design, system design, system and procedures which generate such a data, and the management of the data
processing function. Quality, unlike any other product, is not an absolute concept. Its level is determined with reference to
the context and its use, and the user. Perfect quality just as perfect information is non- achievable and has cost-benefit
implications.

However, it is possible to measure the quality of information on certain parameters. All these parameters need not have a
very high value. Some parameters may have lesser importance in the total value on account of their relevance in the
information and its use.
The quality parameters which are generally considered are shown in the table

Individual

differences

Explanation

Effect

on
information
processing
Examples

Locus of control

internal or external

The degree of perception

in assessing the control

More information

gathering

and

The
production

decisions, selection

to the situation.

which is internal to the organization or external to the organization.


analysis, if internal.

of tools and materials

etc.

Personal

dogmatism.

The degree of faith in beliefs, opinions and past experience.


Low dogmatism, then

more

information

collection

and

processing.

The

pricing,
advertising in a
Competitive
environment.
Risk propensity.

The ability to take the

risk.

Higher, then more

information gathering

and analysis.

The top management decision-making in a strategic planning.


Tolerance

for

ambiguity.

Level of clarity required in

the

information.

The ability to read through the information.


Tight tolerance then

more

information

collection
and

analysis.

Manager Constantly

asking

for

more

information.

Manipulative

intelligence.

The ability to manipulate the data and information vis-à-vis


the

stored

information

and

knowledge.

High ability, then less

information and more

self analysis.

Experienced

and

skillful

managers rely on the

manipulative

intelligence.

Experience

in

decision-making.

Extent of experience at
particular level of decision
making.
High, then correct

filtering of data and


appropriate choice of
decision
making-

process.

The managers with a wide experience in the different fields

of management call for precise and less but


pertinent
information.

Knowledge of the task, tools and technology.


The extent of knowledge

in the application of the

tools and technology.

Higher, then less

information relevant to and tools correct analysis.


The

Technocrat

scientists,

and

managers

of

technology

have

definite information.

The quality of these important parameters is ensured by conducting a proper systems analysis, designing a suitable
information system and ensuring its maintenance from time to time, and also subjecting it to audit checks to ensure the
system integrity.
The quality of the parameters is assured if the following steps are taken.

1. All the input is processed and controlled, as input and process design.

2. All updating and corrections are completed before the data processing begins.

3. Inputs (transactions, documents, fields and records) are subject to validity

checks.

4. The access to the data files is protected and secured through an authorization

scheme.

5. Intermediate processing checks are introduced to ensure that the complete

data is processed right through, i.e. run to run controls.

6. Due attention is given to the proper file selection in terms of data, periods and

so on.

7. Backup of the data and files are taken to safeguard corruption or loss of data.

8. The system audit is conducted from time to time to ensure that the information

system specifications are not violated.

Page 5
9. The system modifications are approved by following a set procedure which begins with authorization of a change to its
implementation followed by an audit.
10.Systems are developed with a standard specification of design and

development.

11. Information system processing is controlled through programme control,

process control and access control.

12. Ensure MIS model confirms consistency to business plan satisfying information

needs to achieve business goals.

The assurance of quality is a continuing function and needs to be evolved over a period and requires to be monitored
properly. It cannot be assessed in physical units of measure. The user of the information is the best judge of the quality.
==================================================================
=

Q 4: Explain in detail the necessity and importance of System Design in MIS.

Answer:

==================================================================
===

Q 5: Explain the challenges before an E-business management.

Answer:

Managing an E-business & Challenges before an E-business - Due to Internet

capabilities and web technology, traditional business organization definition has undergone a change where scope of the
enterprise now includes other company locations, business partners, customers and vendors. It has no geographic boundaries
as it can extend its operations where Internet works. All this is possible due to Internet and web moving traditional paper
driven organization to information driven Internet enabled E-business enterprise. E-business enterprise is open twenty-four
hours, and being independent, managers, vendors, customers transact business any time from anywhere. Internet capabilities
have given E-business enterprise a cutting edge capability advantage to increase the business value. It has opened new
channels of business as buying and selling can be done on Internet. It enables to reach new markets across the world
anywhere due to communication capabilities. It has empowered customers and vendors / suppliers through secured access to
information to act, wherever necessary. The cost of business operations has come down significantly due to the elimination
of paper-driven processes, faster communication and effective collaborative working. The effect of these radical changes is
the reduction in administrative and management overheads, reduction in inventory, faster delivery of goods and services to
the customers.
In E-business enterprise traditional people organization based on 'Command Control'

principle is absent. It is replaced by people organization that is empowered by information and knowledge to perform their
role. They are supported by information systems, application packages, and decision-support systems. It is no longer
functional, product, and project or matrix organization of people but E-organization where people work in network
environment as a team or work group in virtual mode. E- business enterprise is more process-driven, Technology-enabled
and uses its own information and knowledge to perform. It is lean in number, flat in structure, broad in scope and a learning
organization. In E-business enterprise, most of the things are electronic, use digital technologies and work on databases,
knowledge bases,
Page 6
directories and document repositories. The business processes are conducted through enterprise software like ERP, SCM,
and CRM supported by data warehouse, decision support, and knowledge management systems. Today most of the business
organizations are using Internet technology, network, and wireless technology for improving the business performance
measured in terms of cost, efficiency, competitiveness and profitability. They are using E-business, Ecommerce solutions to
reach faraway locations to deliver product and services. The enterprise solutions like ERP, SCM, and CRM run on Internet
(Internet / Extranet) & Wide Area Network (WAN). The business processes across the organization and outside run on E-
technology platform using digital technology. Hence today's business firm is also called E-enterprise or Digital firm.
The paradigm shift to E-enterprise has brought four transformations, namely:

Domestic business to global business.

Industrial manufacturing economy to knowledge-based service economy.

Enterprise Resource Management to Enterprise Network Management.

Manual document driven business process to paperless, automated,

electronically transacted business process.

These transformations have made conventional organization design obsolete.

In E-enterprise, business is conducted electronically. Buyers and sellers through Internet drive the market and Internet-based
web systems. Buying and selling is possible on Internet. Books, CDs, computer, white goods and many such goods are
bought and sold on Internet. The new channel of business is well-known as Ecommerce. On the same lines, banking,
insurance, healthcare are being managed through Internet E-banking, E-billing, E-audit, & use of Credit cards, Smart card,
ATM, E-money are the examples of the Ecommerce application. The digital firm, which uses Internet and web technology
and uses E-business and Ecommerce solutions, is a reality and is going to increase in number.

MIS for E-business is different compared to conventional MIS design of an organization. The role of MIS in E-business
organization is to deal with changes in global market and enterprises. MIS produces more knowledge-based products.
Knowledge management system is formally recognized as a part of MIS. It is effectively used for strategic planning for
survival and growth, increase in profit and productivity and so on. To achieve the said benefits of E-business organization, it
is necessary to redesign the organization to realize the benefits of digital firm. The organization structure should be lean and
flat. Get rid of rigid established infrastructure such as branch office or zonal office. Allow people to work from anywhere.
Automate processes after reengineering the process to cut down process cycle time. Make use of groupware technology on
Internet platform for faster response processing. Another challenge is to convert domestic process design to work for
international process, where integration of multinational information systems using different communication standards,
country-specific accounting practices, and laws of security are to be adhered strictly.

Internet and networking technology has thrown another challenge to enlarge the scope of organization where customers and
vendors become part of the organization. This technology offers a solution to communicate, coordinate, and collaborate with
customers, vendors and business partners. This is just not a technical change in business operations but a cultural change in
the mindset of managers and workers to look beyond the conventional organization. It means changing the organization
behaviour to take competitive advantage of the E-business technology.
The last but not the least important is the challenge to organize and implement

information architecture and information technology platforms, considering multiple

Page 7
locations and multiple information needs arising due to global operations of the

business into a comprehensive MIS.

E-COMMERCE is a second big application next to ERP. It is essential deals with buying and

selling of goods. With the advent of intent and web technology, E-Commerce today covers an entire commercial scope online including
design and developing, marketing, selling, delivering, servicing, and paying for goods. Some E-Commerce application add order tracking
as a feature for customer to know the delivery status of the order.
The entire model successfully works on web platform and uses internet technology. E-

Commerce process has two participants, namely


Buyer and
Seller, like in traditional business model.
And unique and typical to E-commerce there is one more participant to seller by authorization

and authentication of commercial transaction.

E-Commerce process model can be viewed in four ways and categories:

B2C: Business Organisation to Customer

B2B: Business Organisation to Business

C2B: Customer to Business Organisation

C2C: Customer to Customer

In B2C Model, business organization uses websites or portals to offer information about product, through multimedia clippings, catalogues,
product configuration guidelines, customer histories and so on. A new customer interacts with the site and uses interactive order processing
system for order placements. On placements of order, secured payment systems comes into operation to authorize and authenticate payment
to seller. The delivery system then take over to execute the delivery to customer.

In B2B Model, buyer and seller are business organizations. They exchange technical & commercial through websites and portals. Then
model works on similar line like B2C. More advanced B2B model uses Extranet and Conducts business transaction based on the
information status displayed on the buyer’s application server.

In C2B Model, customer initiates actions after logging on to seller’s website or to server. On the server of the selling organization, E-
Commerce application are present for the use of the customer. The entire Internet banking process work on C2B model where account
holders of the bank transact a number of requirements such as seeking account balance, payment and so on.

In C2C model, Customer Participates in the process of selling and buying through the auction website. In this model, website is used for
personal advertising of products or services. E- Newspaper website is an Example of advertising and selling of goods to customer.
In B2B Model, the participants in E-business are two organisation with relations as

buyer=seller, distributor-dealer and so on.

E-Collaboration every business has a number of work scenarios where group of people work

together to complete the tasks and to achieve a common objective. The group could be teams or virtual teams with different member
strength. They come together to platform a task to achieve some results. The process is called Collaboration. The Biggest Advantage ofE-
Collaboration is that it taps the collective wisdom, knowledge and experience of the members.

The collaboration team or group could be within the organization and between the organisation

as well.

Since, E-Collaboration works on an internet platform and uses web technology, work

group/team need not be at one physical location.


E-collaboration uses E-Communication capabilities to perform collaborative tasks or project assignment. Its effectiveness is increased by
software ‘GroupWare’ that enables the members of the group to share information, invoke an application and work together to create
documents and share them and so on.
Page 8

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samuelquayeleft a comment
Spring 2010 (Jan-June) Master of Business Administration- MBA Semester 4 MF0008 –
Merchant Banking & Financial Services - 2 Credits (Book ID:B0857) Assignment Set- 2
(30 Marks) Note: Each question carries 10 Marks. Answer all the questions. 1. Briefly
explain “factoring” . Distinguish between “factoring” and “forfeiting” . 2. What do you
mean by depository services? Discuss the role played by NSDL

07 / 18 / 2010

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SasankaSekharBoraleft a comment
Please any one send me the Assignment MB0045 – Financial Management
05 / 12 / 2010

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Assignment MB0045 – Financial Management

05 / 12 / 2010

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I couldn't c this page"Error loading document info:'Error#2032'"

12 / 24 / 2009

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