Master of Business Administration

Semester II
MB0049 - Project Management
Assignment set - 1

1. Comment on the following a. Importance of DMAIS in project management cycle b. Knowledge areas of project management Ans: Importance of DMAIS in a Project Management Cycle Project managers consider the five steps DMAIS as generic for any system of a journey towards excellence. Figure 9.2 lists the five steps hidden in the acronym DMAIS. DMAIS is highly relevant in Project Management for the simple reason that each step gives out in detail the actions to be taken to ensure readiness for the next step. Verification of DMAIS implementation is possible with checklists which can be prepared and used by employees at all levels. The team members can be given training to follow them. Five steps of DMAIS. 1. Define This step requires that what is sought to be achieved is identified in all its detail. The following are the inputs which will define what we are going to make: a. Benchmark: It refers to the standards achieved by the best in the industry. A companys product is set to meet them. b. Customer Requirement: It refers to the documentation of customer requirements. Proper understanding of customer requirement is of utmost importance. You should deliver what a customer requires.

c. Process Flow Map: It shows the activities that take place to result in the product at the end of them. d. Quality Function Deployment This tool compares the quality characteristics in a companys product with those in their competitors and their relative importance to the customer. To achieve them, you find the technical specifications you have to incorporate in our product. e. Project Management Plan This includes the materials, men, activities, schedules, milestones and so on. 2. Measure In this step, we measure the outcomes of the activities. This is done using the following methods. a. Data collection You need to collect the data about the work that is done and compare as to how it corresponds with what is required b. Defect Metrics You need to capture the deviations that are in the effective potion of the work in defect metrics. Then you need to decide whether they are acceptable or need rectification. c. Sampling If the volumes are high, you need to select a few of them and inspect them to see whether the entire batch is acceptable 3. Analyze In this step, you have to analyze the data received from the preceding step by using the following tools: a. Cause and Effect Diagrams also called Fishbone Diagrams b. Failure Mode and Effect Analysis FMEA c. Root Cause Analysis d. Reliability Analysis

4. Improve In this step, you have to implement the measures to remove the defects found earlier for improving the process. This can be done using the following measures. a. Design of Experiments The effect of changing values of parameters is done in a controlled way. This allows you to experimentally determine the effect of variations determined. You can use the results for optimizing the process b. Robust Design The equipment design is made robust to reduce the variations. c. Tolerances The permitted deviations are made closer, so that the capability of process is increased 5. Standardize When improvements have become consistent, the methods adopted are standardized. Knowledge areas of project management There are nine knowledge areas consisting of integration, scope, time, cost, quality, risk, human resources, communications, and procurement. These areas group 44 Project Management Processes. All of the knowledge areas are interrelated and each should be taken care of during project planning Following are 9 project management knowledge areas. 1. Project Integration Management: Deals with processes that integrate different aspects of project management. 2. Project Scope Management: Deals with processes that are responsible for controlling project scope. 3. Project Time Management: Deals with processes concerning the time constraints of the project. 4. Project Cost Management: Deals with processes concerning the cost constrains of the project.

5. Project Quality Management: Deals with the processes that assure that the project meets its quality obligations. 6. Project Human Resources Management: Deals with the processes related to obtaining and managing the project team. 7. Project Communication Management: Deals with the processes concerning communication mechanisms of a project. 8. Project Risk Management: Deals with the processes concerned with project risk management. 9. Project Procurement Management: Deals with processes related to obtaining products and services needed to complete a project. In total, there are 44 processes involved in Project Management. These are mapped to one of nine Project Management Knowledge Areas. 2. Write few words on: a. Project Characteristics b. WBS c. PMIS d. Project management strategies-Internal & external

Ans:a. Project Characteristics: A project plan can be considered to have five key characteristics that have to be managed: Scope: defines what will be covered in a project. Resource: what can be used to meet the scope. Time: what tasks are to be undertaken and when. Quality: the spread or deviation allowed from a desired standard.

 Risk: defines in advance what may happen to drive the plan off course, and what will be done to recover the situation. b. WBS: A work breakdown structure (WBS) in project management and systems engineering, is a tool used to define and group a project's discrete work elements (or tasks) in a way that helps organize and define the total work scope of the project. A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control. Additionally the WBS is a dynamic tool and can be revised and updated as needed by the project manager c. PMIS: Project Management Information System (PMIS) are system tools and techniques used in project management to deliver information. Project managers use the techniques and tools to collect, combine and distribute information through electronic and manual means. Project Management Information System (PMIS) is used by upper and lower management to communicate with each other. Project Management Information System (PMIS) help plan, execute and close project management goals. During the planning process, project managers use PMIS for budget framework such as estimating costs. The Project Management Information System is also used to create a specific schedule and define the scope baseline. At the execution of the project management goals, the project management team collects information into one database. The PMIS is used to compare the baseline with the actual accomplishment of each activity, manage materials, collect financial data, and keep a record for reporting purposes. During the close of the project, the Project Management Information System is used to review the goals to check if the tasks were accomplished. Then, it is used to create a final report of the project close. To conclude, the project management information system (PMIS) is used to plan schedules, budget and execute work to be accomplished in project management. d. Project Management strategies-Internal & external: Projects as building blocks in the design and execution of enterprise strategies can be with either external or internal in nature. An external project is one undertaken for or on

behalf of stakeholders who are not part of the enterprise structure such as design and construction of the bridge, highway or new product design. In an external project the customer is located outside the enterprise such as another company, government or military organization. An internal project is one to be carried out primarily for the improvement of organization process such as productivity improvement, training initiatives, organizational restructuring or reengineering. Internal projects usually have an internal customer such as a manufacturing manager who wishes to update the company's manufacturing equipment build new plant or develop enhanced information system capability. Companies that are in economic difficulties often undergo downsizing or restructuring. Improvements in organizational process can be gained from reengineering projects. The development of new award system flexible work practices improvement in quality or the flow of work on the production line can be accomplished by using project teams. Although many of these projects are modest compared to large projects that are being developed for an outside customer, for the member of the enterprise the internal projects usually indicate that a change in the operating policies is forthcoming.

3. What are the various SCMo soft wares available in project management? Explain each in brief. Supply Chain Monitoring (SCMo) It is possible today to establish a monitoring system aligned with an organisations supply chain. Supply Chain Monitoring (SCMo) can be an add-on to existing ERP systems. SCMo makes it more efficient to master difficult to manage supply networks. Supply Chain Monitoring (SCMo) is an important building block for build-to-order and short time to delivery goals. SCMo makes it more efficient to master difficult to manage supply networks because it allows: a) b) c) Smooth and secure supply with minimal safety inventories Increased speed and flexibility of supply networks Reduction of non-value adding cost (trouble shooting, administrative effort to

Manage and control material flow, etc.) d) Reduction of premium freight

e)

Avoidance of scrap due to obsolescence (e.g. in case of engineering changes, end of

production) f) g) Best practice approach from experts of the automotive industry Clear roadmap for software providers, marketplaces and deciders in the automotive

industry The intent of SCMo is to define the structure of the Documentation System, its content, the method of content generation and to attain common documentation of all standard processes of ODETTE. The documentation is valid for the SCM group of ODETTE. The Documentation System is intranet based to provide immediate access to current, up-to-date process documentation. The system allows users to navigate through graphical structures to relevant documentation and processes which were created with the ARIS-Toolset. There are various advantages of using such a documentation system. Supply chain monitoring can be divided in below levels Level 0: Work Package: Level 0 shows the work packages, which represent the different part projects. At present only the SCMo-processes are described in this documentation. Level 1: Process: On Level 1, the processes that belong to the work package on Level 0 are listed. They are not yet the specific processes, but rather self-contained process blocks. They represent a higher picture. Level 2: Sub-Process: In Level 2, the processes are graphically depicted in the form of process chains. The process chain-model itself can be opened via the assignment. Various SCMo softwares available in project management are a) Standard / Best Practices: Documentation system stores and presents standards and best processes to be adhered to across the industry. This also helps the organization to secure their correct applications. b) Central Repository: It also offers a central location of all processes and system related information. This includes customizing documentation to working guidelines.

c) Adaptation: Adaptation is another unique objective achieved through documentation system. They allow flexible and quick adaptation in case of process changes or enhancement and provide the updated information immediately. d) Reference: It also provides easy and quick reference to the documents. They present the standard processes in the intranet, where users can look up the current processes whenever necessary. e) Availability: Process documentation system is available at every working location.

4. List the various steps for Risk management. Also explain GDM and its key features.

Ans: Steps for risk management As seen from the figure above, there are four generic steps to manage a risk: a) Risk Identification b) Risk Analysis c) Risk Management planning d) Risk Review Now let us have a detailed look at each of these steps: Risk Identification Risk identification occurs at each stage of the project life cycle. To identify risks, we must first define risk. As defined earlier, 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. As projects evolve through project development so too does the risk profile. Project knowledge and understanding keep growing, hence previously identified risks may change and new risks identified throughout the life of the project. Here we will discuss various tools and techniques available for risk identification. The best and most common methodology for risk identification is done using a brainstorming session.

The brainstorm typically takes 15-30 minutes. You have to be sure to invite anyone who can help the team think of risks. Invite the project team, customer, people who have been on similar projects, and experts in the subject area of the project. Involving all stakeholders is very important.

Limit the group size to nine people. In the brainstorming session, participants discuss out potential problems that they think could harm 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. Here, prior experience and learning from past project plays a very important role. 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. 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 splitthe risk into smaller specific risks, such as, manager 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. Paretos law studied earlier applies here. 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. This way you can gauge the probability of occurrence and the impact created. You can form a matrix based on the likeliness of occurrence and the impact created as shown in table 11.2. 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, we make 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. This is shown in figure Risk Management Planning After analyzing and prioritizing, the focus comes on management of the identified risks. In order to maximize the benefits of project risk management, you must incorporate the project risk management activities into our project management plan and work activities. There are two things you 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, you 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, you might do two things. You may plan to reduce the impact by making sure other people become familiar with that persons work, or reduce the likelihood of attrition by giving the person a raise, or by providing extra benefits. risks have been discovered. In such case, 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 summary, risk management is the planning to potential problems, and the management of actions taken related to those problems. Review Risks After you have implemented response actions, you must track and record their effectiveness and any changes to the project risk profile. You need to review the risks periodically so that you can check how well mitigation is progressing. You can also see if the risk priorities need to change, or if new Overview of Risk Management

There is a mutual benefit for corporate and major information systems project teams and many of the programs as a result of the information exchange generated by the Project Management Reviews. Corporate and major information systems are reviewed from their inception toretirement, i.e., throughout the Capital Planning and Investment Control (CPIC) phases of Identification, Selection, Control, and Evaluate. Several of the current and future corporate and major information systems initiatives have been identified in the Departmental Information Architecture Program guidance series and in the Corporate Systems Information Architecture (CSIA) document.

5. Answer the two parts: a. Importance of data management in project management-Comment. b. What is the significance of reviewing ROI?

Ans: a. Importance of data management in project management-Comment. Project management as a management discipline underpins much economic activity. In industries as diverse as pharmaceuticals, software and aerospace, projects drive business. And in the public sector, it is effective project management that translates politicians' promises of new roads, schools and hospitals into gleaming new constructions that improve everyday life. So you'd imagine that it would be possible to place some sort of figure on the importance of project management to the UK economy. Think again. As a conversation with the UK's Office of National Statistics reveals, the official Input-Output tables that record and analyze the makeup of economic activity within the UK go into no finer detail than at the level of individual industries. We know that the GDP of the UK economy in 2002 amounted to some 1044bn, up 5% from 994bn the year before. We know which industries contributed the most to that overall GDP figure, and which contributed least. But we know nothing -at least in terms of officially tabulated government statistics -about the extent of project management's contribution to that GDP. Almost by definition, innovation relies on project management. Irrespective of whether the innovation concerns a new product, or a new process, or indeed a contribution to pure science, better project management, on the whole, will see a successful outcome reached

more quickly, having consumed fewer resources. And innovation is important to the UK economy. As a succession of reports from the UK government's Department of Trade and Industry (DTI) has highlighted over the years, innovative businesses are more successful, and innovative industries grow faster, export more, are more competitive, more productive, and have a better long-term future. Stating the benefits of innovation is one thing - defining innovation itself, or quantifying it, is another. As successive generations of statisticians have found, the measurement of innovation is almost as slippery a concept as the measurement of project management. An interesting table (see Table 1) from the current DTI Innovation Report breaks down the innovation carried out by a number of manufacturing industries based on one widely used proxy measure -R&D spending, commonly reported by companies in their annual accounts. Even so, this almost certainly understates the true level of innovation activity, especially with respect to process innovation. The engineering departments and process improvement groups of manufacturing companies routinely make process improvements that go unrecorded as R&D, for example. b. What is the significance of reviewing ROI? Return on investment (ROI) is also called the rate of return (ROR) and is a measure of the performance of any investment. It is the ratio between the financial benefit or loss of an investment and the amount of money invested. The return on investment can be calculated by the following formula: ROI = (Net Income / Cost of Investment) x 100, where ROI = Return on Investment Net Income = Income from investment - Cost of Investment The return on investment is always expressed as a percentage. For instance, if the cost of investment is $20,000 and the gain from the investment is $22,000, then the net income will be $22,000-$20,000, or $2,000, and the ROI will be ($2,000/$20,000) x 100 = 0.1 x 100, or 10%. In case the ROI is negative, it means the cost of investment is higher than the benefits (income) from that investment. This indicates a loss and this investment should not be considered. There are certain rules of thumb that make it easy to introduce the concept of time in ROI. These rules assume that the annual rate of return is constant and that the ROI is compounded once a year.

Rule of 72: This indicates how long it would take to double your investment. To calculate this, divide 72 by the ROI. For instance, if the ROI is 10, then the time it would take to double this investment is 7.2 (72/10) years. Rule of 114: This indicates how long it would take to triple your money. To calculate this, divide 114 by the rate of return. In the above case, it would take 11.4 (114/10) years to grow your money threefold. Rule of 144: This calculates how long it will take to grow your money four times. In the example considered, the time taken to quadruple your money is 14.4 (144/10) years. While these are fairly good estimates, they are by no means accurate. A proper understanding of ROI is a prerequisite for investing wisely. So, dont forget to calculate and compare the ROI of the various investments you are considering.

6. XYZ Company implements CMMI level-03. To make further changes it decides on starting a new division in the organization. It decides to advance the existing project management. What are the steps to be followed by the organization to drive project management to a new horizon? Ans: The following nine steps are suggestive measures to provide new dimensions to the management of projects. Step 1: Believing in discontinuity and not continuity with incremental improvements Continuity or the status quo is a function of quantum of changes. Incremental improvements are valid only when the rate of change is not excessive. Both the continuity and incremental improvements are linked with the rate of change and quantum. Beyond a threshold of rate of change, one cannot go with the continuity and incremental improvements. The projectized day Internet and technological based world has witnessed the unprecedented rate of change and explosion in the quantum of changes. It is this process which has resulted in making continuity theory as baseless. Continuity in principle is to preserve the past whereas discontinuity breaks the linkage with the past to the extent it can have fewer constraints to move into the future. There is no choice except to believe in discontinuity

as only then mind and body is prepared to accept the unknowns and be ready to face it and control thereafter. Step2: Owning the problems and sharing the solutions. More one owns problem, more he becomes experienced. It is not the number of years of service one has performed for a company but how much number of problems was faced and owned is now becoming the benchmark to define an experienced person from inexperienced. The true spirit of entrepreneurial outlook is to own the problems and solve the same and in this process make Money. The fixed mode mentality is to empower the problems to be faced outside than oneself and get the credit for solutions. Step 3: Breaking the status quo mentality No change means perpetuation of the Present into the Future. This is in contradiction to the nature as Future is not the extension of Present. Breaking the status quo mentality implies in taming the future as it is the future which becomes Present at some point of time. Focusing into Future and affecting the Present is antiestablishment and require concerted efforts to move out from the comfortable zones. Project managers can hardly afford to have status quo mentality as day in and day out they are involved in acting in present to affect Future. At times, when we do not get away from the status quo mentality, contradictions fall apart every wherein the project between the two types of group- the champions of future and those who believe in extending Present. Step 4: Stepping out of comfortable zone As apart of the step 3 and in a way extension of it, the comfortable zone is to dear to break and cross. Fear of uncertainties makes the comfortable zone more comfortable than if the fear did not exist. The project managers of tomorrow are those who have so called comfortable zone carve out from that area which conventionally is uncomfortable and that is the zone of uncertainties. If we seek comforts in conquering the uncertainties with planning and indomitable spirit of winning, then we are able to provide project leadership and inspire the team members to plunge into risk taking. Step 5:

Human Capital by passing Financial Capital While the agriculture society witnessed the Nature as the foremost, the 20th century saw the men-machine interaction as the key factor for the capital formation. 21st century in this Internet age is beginning to see the human capital surpassing the financial capital. Venture capitalists were all over the place to fund any idea, which they thought would create a brave new world. Its consequent failure in the last couple of years could not be attributed to the over faith in Human capital but absence of effective filtering mechanism from good to bad idea. While Return On Investment (ROI) could be seen as financial driven phenomena, Return On Time Invested (ROTI) is basically based human efforts and its deployment. ROTI will be more meaningful to ROI in the context of new processes on their way to unfold in the beginning of 21st century. Step 6: Transform work culture from 5 to 7 dimensions Conventionally we all live in the conventional 5 dimensions of space i.e. X, Y and Z, Time and Mind. We need to supplement on these 5 dimensions the additional 2 dimensions of Passion and Joy If we do what we want do then the gap between Wish and Reality is so little that one is in position to provide its very best. It is his/her added 2 dimensions, which make the total difference. The new miracles in project management will take place when we bring the work of joy like in the art domain of music and paintings in our project work. Step 7: Real number of encounters replacing number of years of experience the experience profile should be redefined by the number of encounters and problems faced instead of number of years. The wisdom evolved based on encounters is far richer than accumulated simply by repeating the same encounters n number of times in ones employee ship. The secret is to increase the encounters meaningful to ones own dream or passion profile. Step 8: Seeking meaning out of change Change is first degree. It is a must. Change can be threat or an opportunity. It depends how one looks at it. If change is resisted, it becomes all the more difficult to see the real outcome of the change as it is partly distorted. Project implies change and that too a

temporary one. It is essential to make people to have a real communication about the change. One of the major strategies to bring about a change is to communicate, communicate and communicate. Step 9: Detachment from the fruits of the results To act is within ones control. To get the reward as a reaction to the action is not within ones purview. Too much emphasis on that part, which is not with in our control, is a wasteful exercise instead concentrates on actions to the best of ones ability. The results so arrived at must be analyzed from the cause and effect relationship and constant learning must be made out of all such actions or group of actions. Attachment with the results of the actions often dilute ones own energy and may shift ones focus from the main road to its detour. Detachment from the results does not imply one should not demand or expect materialistic benefits, no, it only means that in case you do not get what you deserve, leave it and move forward rather than brooding over that part which is not within ones control. The journey comes to a standstill if we get attached to the surroundings and to the results of the present beyond a small time frame. Project managers and team members are never stationary. They must move on. In summary, the new discovery or dimensions in project management heavily depends on the human factor of breaking ceilings, getting motivated all the time, working with passion, detachment with the results rather than with the actions, human capital surpassing that of financial capital, breaking the status quo mentality, owning the problems and solutions and creating discontinuity. The journey has just begun and it must continue as in the human race, there is no finishing line.