1.

Write a short note:

- Scientific Management
o Developed standard method for performing each job.
o Selected workers with appropriate abilities for each job.
o Trained workers in standard method.
o Supported workers by planning work and eliminating
interruptions.
o Provided wage incentives to workers for increased output.

- Bureaucracy Organizations
o Max Weber 1864-1920
o Prior to Bureaucracy Organizations
o European employees were loyal to a single individual rather
than to the organization or its mission
o Resources used to realize individual desires rather than
organizational goals
o Systematic approach looked at organization as a whole

- Administrative Principles
o Contributors: Henri Fayol, Mary Parker, and Chester I.
Barnard
o Focus:
Organization rather than the individual
Delineated the management functions of planning,
organizing, commanding, coordinating, and controlling

- Humanistic Perspective
o Emphasized understanding human behavior, needs, and
attitudes in the workplace
o Human Relations Movement
o Human Resources Perspective
o Behavioral Sciences Approach
- Abraham Maslows
Hierarchy of Needs

- Theory X& Y
o Theory X
o Dislike work will avoid it
o Must be coerced, controlled, directed, or threatened with
punishment
o Prefer direction, avoid responsibility, little ambition, want
security
o Theory Y
o Do not dislike work
o Self direction and self control
o Seek responsibility
o Imagination, creativity widely distributed
o Intellectual potential only partially utilized
o Few companies today still use Theory X
o Many are trying Theory Y techniques

- Behavioral Sciences Approach

o Applies social science in an organizational context
o Draws from economics, psychology, sociology, anthropology,
and other disciplines
Understand employee behavior and interaction in an
organizational setting
OD Organization Development

- Management Science Perspective

o Emerged after WW II
 o Applied mathematics, statistics, and other quantitative
techniques to managerial problems
o Operations Research mathematical modeling
o Operations Management specializes in physical production of
goods or services
o Information Technology reflected in management information
systems
2. Project management, Why we need it, What are its benefits?
- Definition:
o A method for organizing tasks
o A structured framework to help a group work productively
o Tool to aid in task sequencing, dependency analysis, resource
allocation, scheduling, etc.
o Tool to track progress relative to plan
- Why we need it
Complex project needs coordination of:
o Multiple people
o Multiple resources (labs, equipment, etc.)
o Multiple tasks some must precede others
o Multiple decision points approvals
o Phased expenditure of funds
o Matching of people/resources to tasks
- Benefits of Sound Project Management
o Less overall project cost
o Less strain on working capital
o Effective use of resources
o More timely project completion
o Higher quality of the final product

3. What is meant by project scope, WBS, project plan?

Scope: Poor scope definition is the major contributing factor to cost overruns in
the engineering and construction industry.
 WBS is: A deliverable-oriented hierarchical decomposition of the work to
be executed by the project team to accomplish the project objectives and
create the required deliverables.
It organizes and defines the total scope of the project. Each descending level
represents an increasingly detailed definition of the project work. . . . The
following terms help clarify this dictionary definition:

- Project Plan
o Project Charter
o Project Description
o Scope Statement
o Work Breakdown Structure
o Cost Estimates and Schedule at WBS level
o Major Milestones and Target Dates
o Resource Plan
o Risk Plan
4. Write short note on project management phases, scheduling techniques,
planning objectives?
- Project management phases
o Understanding the nature of the project
o The role of the project manager
o Setting up the project
o Planning the project
o Controlling the execution phase of the project
o Using automated tools
o The personal qualities of the project manager
o Finishing the project successfully.
- Scheduling Techniques
o Mathematical Analysis
Network Diagrams
PERT
CPM
GERT
o Bar Charts
Milestone Chart
Gantt Chart
- Planning Objectives
- Agreements on:
o Scope
o Objectives
o Work activities
o Estimates
o Resources required
o Roles & responsibilities
o How to change & update the plan

5. Write a short note on successful WBS showing in detail the meaning of

work, breakdown, and structure.( (51-53)
Work Break Down Structure:
o Work. Sustained physical or mental effort, exertion, or exercise of skill
to overcome obstacles and achieve an objective.
 o Commonly used to refer to a specific activity, duty, function, or
assignment often being a part or phase of some larger undertaking;
something produced or accomplished by effort, exertion, or exercise of
skill.
o In this context, work refers to work products or deliverables that are the
result of effort and not to the effort itself.
o Breakdown. Division into parts or categories; separation into simpler
substances; decomposition.
o Structure. Something arranged in a definite pattern of organization.
These dictionary definitions imply that a WBS has the following
characteristics:
o Supports the definition of all work required to achieve an objective,
tangible result.
o Is constructed to illustrate and define the hierarchy of deliverables. This
hierarchy is organized into parent-child relationships.
o Has an objective or tangible result that is referred to as a deliverable. In a
sense, the WBS can be thought of as a deliverable breakdown
structure.

6. Write a short note on steps for constructing WBS.Pp.60-61

1. Divide the project into major objectives

2. Partition objectives into activities
3. Divide activities with missing characteristics into sub activities
4. Repeat #3 until all sub activities have desired characteristics
5. Lowest sub activities are the basis of work packages

o Deliverables: Any unique and verifiable product, result, or capability to

perform a service that must be produced to complete a process, phase, or
project.
o The WBS provides the foundation for integrating the work package and
intermediate deliverables with all other aspects of project initiation,
planning, execution, monitoring and controlling, and closing.
7. Write a short note on the main features, uses, and development tools of
WBS.Pp.69-82
- Main features:
o Defines the hierarchy of deliverables
o Supports the definition of all work required to achieve an end
objective or deliverable(s)
o Provides a graphical representation or textual outline of the project
scope
o Provides the framework for all deliverables across the project life
cycle
o Provides a vehicle for integrating and assessing schedule and cost
performance
o Facilitates assignment of resources
o Facilitates the reporting and analysis of progress and status data
o Provides a framework for specifying performance objectives.
- Uses
A WBS can not alone ensure project success, but consider that the WBS
does the following:
o Defines all the work of the project, and only the work of the
project, thereby clarifying the project scope
o Reflects the input from all team members to ensure buy-in
o Provides the baseline for subsequent change control
- Development tools of WBS
o There are a number of project management tools that can be
used to assist a project manager with the development of a
WBS.
o These tools include outlines and organization charts, fishbone
and brainstorming techniques, and top down and bottom up
development strategies. There are many WBS templates
available, and corporate standards can be referenced or copied
for quick-starting WBS development.
o When using generic or corporate WBS templates, it will be
important to ensure that the template chosen for the project
closely matches the project type (such as a Construction WBS
template, an IT Software Development WBS template, a
commercial product WBS template, etc.) and is used as a guide
 or basic structure that is then customized to fit the needs of the
specific project being planned.

8. What are the aims of Project management? Pp.94

- To complete a project:
On time
On budget
With required functionality
To the satisfaction of the client
Without exhausting the team
9. Write a short note on project cost control explaining: elements of cost
control, and key control philosophy. Pp. 249-247.
Estimate Resource Costs
Develop cost estimates for:
internal & external labor (hrs,rates)
materials
supplies
contracts
special costs
Procurement planning determines:
whether, what, and how much,
how and when,
how to manage solicitations, selection, contract administration, and
closeout
Procurement documents:
SOW - Statement of Work
RFP - Request for Proposal
Evaluation Criteria

10.Write a short note on each of the following:

a. Resource planning
b. Cost estimating
c. Cost budgeting
d. Cost control Pp.250-254
11.What is meant by the Earned Value and performance indices? Pp. 256-259

Earned value
Simply, it is a project monitoring and measurement system that:
o establishes a clear relationship between planned accomplishments and
actual accomplishments
o reinforces and rewards good planning practices
Basic concepts of Earned Value Management (EVM)
o Each task in a project earns value as planned work is completed
o Earned value can be compared to actual cost and budgeted cost to
determine variance and predict future performance
The budgeted cost (e.g., dollars, person-hours, person-days, etc.) in terms of
your baseline plan/budget of the work performed up to a specified point in
time
o Also known as Budgeted Cost of Work Performed (BCWP)
Each task in the Work Breakdown Structure (WBS) is assigned a BCWP
based on its individual cost.
o Project BCWP is total of BCWP for all tasks required to complete the
project
Components
o Planned Value (a.k.a. BCWS)
o How much work (person-hours) you planned to have accomplished at
a given point in time (this is from the WBS in your plan)
o Actual Cost (a.k.a. ACWP)
o How much work (person-hours) you have actually spent at a given
point in time
o Earned Value (a.k.a. BCWP)
o The value (person-hours) in terms of your base budget of what you
have accomplished at a given point in time (or, % complete X
Planned Value)

Performance indices
Cost Performance Index
CPI = BCWP/ACWP
Schedule Performance Index
 SPI = BCWP/BCWS
Analysis
CPI > 1.0 exceptional performance
CPI < 1.0 poor performance
Similar for SPI

12.What are the resource allocation methods? Pp.289-292

Limiting Assumptions
o Splitting activities is not allowedonce an activity is start, it is
carried to completion.
o Level of resource used for an activity cannot be changed.
o Activities with the most slack pose the least risk.
o Reduction of flexibility does not increase risk.
o The nature of an activity (easy, complex) doesnt increase risk.
Time-Constrained Projects
o Projects that must be completed by an imposed date.
o Require the use of leveling techniques that focus on balancing or
smoothing resource demands by using positive slack (delaying
noncritical activities) to manage resource utilization over the
duration of the project.
i. Peak resource demands are reduced.
ii. Resources over the life of the project are reduced.
iii. Fluctuation in resource demand is minimized.
Resource Demand Leveling Techniques for Time-Constrained Projects
o Advantages
Peak resource demands are reduced.
Resources over the life of the project are reduced.
Fluctuation in resource demand is minimized.
o Disadvantages
Loss of flexibility that occurs from reducing slack.
Increases in the criticality of all activities.

Resource-Constrained Projects
 Projects that involve resources that are limited in quantity or by their
availability.
Scheduling of activities requires the use of heuristics (rules-of-thumb)
that focus on:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number
The parallel method is used to apply heuristics
1. An iterative process that starts at the first time period of the
project and schedules period-by-period any activities scheduled
to start using the three priority rules.

13.What is Project Human Resource Management? PP 317

Project human resource management includes the processes required to make the
most effective use of the people involved with a project. Processes include
o Organizational planning
o Staff acquisition
o Team development

14.What is risk? What are the benefits, goals and principles of risk
management? pp330-335

Benefits
Goal of Risk Management
The goal of risk management is:
o scientifically sound,
o cost-effective,
o integrated actions that reduce or prevent risks while taking into
account social, cultural, ethical, political, and legal
considerations.

Risk Management Principles

The principles include:
Zero-Risk is impossible , so some level of risks must be accepted.
The determination of the acceptable risk is a societal choice
If certain risk exceeds the accepted level, that risk should be reduced
to the accepted level. (Equivalent Risk Principle)
Given a limited resource, the most effective policy for the reduction of
total risk should be implemented. (Risk/Benefit Principle)
The total risk should be managed. (integration of risks)

15.What is risk management? Who uses it? Pp. 339-342

Risk Management is a methodology that helps managers make best use of
their available resources.
Who uses Risk Management?
Risk Management practices are widely used in public and the private sectors,
covering a wide range of activities or operations.
These include:
Finance and Investment
Insurance
Health Care
Public Institutions
Governments
Effective Risk Management is a recognised and valued skill.
Educational institutions have formal study courses and award degrees in
Risk Management.
The Risk Management process is well established. (International RM
process standards.)
Risk Management is now an integral part of business planning.
16.What are the sources of risk? how to identify risk? And what are the cause
factors? Pp. 344-349

Sources of risk

Project Risk Management includes the processes concerned with identifying,

analyzing, and responding to project risk. It includes maximizing the results
of positive events and minimizing the consequences of adverse events.

Sources of Help to Identify Risk

Site investigations
Contract documents
Schedule
Team brainstorming
Body of experience

CAUSE FACTORS
Human Error - an individuals actions or performance is different than what
is required and results in or contributes to an accident.
Material Failure/Malfunction - a fault in the equipment that keeps it from
working as designed, therefore causing or contributing to an accident.
 Environmental Conditions - any natural or manmade surroundings that
negatively affect performance of individuals, equipment or materials and
causes or contributes to an accident.
SOURCES OF CAUSE FACTORS

17.What are the risk control methods? Pp. 359

Avoid
Reduce
Share
Insure
Accept
o with contingency
o without contingency
Contain
18.Write a short note on Pp. 365-369
Risk management plan.
o How you will identify, quantify or qualify risk
o Methods and tools
o Budgetyes budget
o Who is doing what
o How often
o When a risk is really a risk
o Reporting requirements
o Monitoring, tracking and documenting strategies
Identify risk
o Continuous, Iterative Process
o What is it and what does it look like
o The sooner the better
o The more the merrier
o A fact is not a risk
o Be specific
o Dont try to do everything at once
Identification techniques:
o Brainstorming
o Checklists
o Interviewing
o SWOT Analysis
o Delphi Technique
o Diagramming Techniques
Cause & effect Ishikawa or Fishbone
Flow Charts
Influence Diagrams
Risk response plan
Techniques/Strategies:
o Avoidance Eliminate it
o Transference Pawn it off
o Mitigation Reduce probability or impact of it
 o Acceptance Do nothing
Strategy should be matching with risk
o Hint: Dont spend more money preventing the risk than
the impact of the risk would be if it occurs
The Risk Response Plan/Risk Response Register
Risk monitoring and control.
Continuous, Iterative Process
Done right the risk should NEVER occur
Someone is responsible
Watch for risk triggers
CommunicateCommunicateCommunicate
Take corrective action - Execute
Re-evaluate and look for new risk constantly
Tools:
Risk Reviews
Risk Audits

19.Define Pp. 371-379

a. The role of Internal Audit.
Internal Audit is an independent, objective assurance and
consulting activity designed to add value and improve an
organization's operations.
It helps an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve
effectiveness of risk management, control and corporate
governance processes.
b. Its key attributes
Independent
Objective
Knowledge of the orgaization, its people, systems and process
Skills in risk management, documentation, evaluation and
assessment
Provides services to the Board and management
 c. IA skills in RM
Systematic analysis of business process
o IA performs organization-wide risk assessment involving
management
o IA prepares an inventory of processes
o IA determines audit priorities based on the risk assessment
Objective assessments for process effectiveness
o audit projects include:
Identification of components, deliverables or
processes
Risk assessment of the unit involving management
Definition of audit priorities based on the risk
assessment
Assessment of control design
Tests on control effectiveness
Independent reporting and assessment of ways to change or
improve processes
o Audit reports include recommendations to improve :
Control design
Control effectiveness
Ability to spread good practices across the organization
o Design and offer training sessions to management
o Provide useful information through the IA web site
d. IA role in RM
Assessment of the adequacy and effectiveness of risk management processes
which includes:
o Identification of risks
o Prioritization of risks
o Design of controls
o Control effectiveness
o Reporting
Assessment of residual risks
Assessment of other specialist units also providing assurance and advice
Health and Safety
Environment
 Legal Services
Insurance
Consultants to assist the Board and management in the development of
documented risk management processes
o Risk identification and assessment
o Development of policies and procedures on risk and control
o Mechanisms to review the effectiveness of risk management and
internal control

20.What IA does not do? Pp. 380

Judge the appropriateness of the objectives of the organization
Judge the Boards strategies to achieve objectives
21.Write a short note on the basic process of PM Pp. 380-393
a. Establish the context
The strategic and organisational context in which risk management will
take place.
For example, the nature of your business, the risks inherent in your
business and your priorities.
b. Identify
Defining types of risk, for instance, Strategic risks to the goals and
objectives of the organisation.
Identifying the stakeholders, (i.e.,who is involved or affected).
Past events, future developments.
c. Analyze
How likely is the risk event to happen? (Probability and frequency?)
What would be the impact, cost or consequences of that event occurring?
(Economic, political, social?)
d. Evaluate
Rank the risks according to management priorities, by risk category and
rated by likelihood and possible cost or consequence.
Determine inherent levels of risk.
 e. Treat
Develop and implement a plan with specific counter-measures to address the
identified risks.
Consider:
o Priorities (Strategic and operational)
o Resources (human, financial and technical)
o Risk acceptance, (i.e., low risks)
Document your risk management plan and describe the reasons behind
selecting the risk and for the treatment chosen.
Record allocated responsibilities, monitoring or evaluation processes, and
assumptions on residual risk.
f. Monitor
In identifying, prioritising and treating risks, organisations make
assumptions and decisions based on situations that are subject to change,
(e.g., the business environment, trading patterns, or government policies).
Risk Management policies and decisions must be regularly reviewed.
Risk Managers must monitor activities and processes to determine the
accuracy of planning assumptions and the effectiveness of the measures
taken to treat the risk.
Methods can include data evaluation, audit, compliance measurement.
g. Communicate.

22.Write a short note on risk probability and risk severity. Pp. 401-457
Risk Probability
Frequent Individual: occurs repeatedly in career
All: continuously experienced

Likely Individual: occurs often in career

All: occurs frequently

Occasional Individual: occurs sometime in career

All: occurs sporadically or several times

Seldom Individual: remote chance of occurance

All: expected to occur sometime

Unlikely Individual: probably will not occur in career

All: possible but not probable, rare
Risk severity
Catastrophic Death or permanent total disability, system loss,
major property damage

Critical Permanent partial disability, temporary total

disability in excess of 3 months, major system
damage, significant property damage

Marginal Minor injury, lost workday accident,

compensable injury or illness, minor system
damage, minor property damage

Negligible First aid or minor supportive medical treatment,

minor system impairment, minor property
damage
Risk Probability
Recall definition:
Risk is a measure of the probability and consequence of not
achieving a defined project goal.
Proper risk management implies control over future events, and is proactive
rather than reactive.
A risk has three main components:
An event (an unwanted change)
A probability of occurrence of that event
The impact of that event (amount at stake)
Each event has an element of uncertainty and damage associated with it
The risk management process includes:
Risk Identification
Risk Analysis (mainly qualitative, sometimes quantitative)
Risk Response (in form of established contingency plans)
23.Write short note on: Risk identification, identification and response, Pp.
408-415

Risk Identification
Determine which risks might affect the project and document
their characteristics
Tools and techniques include: Documentation Reviews,
Brainstorming, Interviewing Key Experts, Assumption Analysis
Output: raw list of risks and associated symptoms or warning
signs (that require further analyses)
Risk Quantification
1. Qualitative Risk Analysis:
Assess the impact and likelihood of occurrence
Prioritize according to the potential effect on project objectives (e.g.
greater impact leads to a higher priority)
Sample risk probability ratings: 10% = surprised if it happens; 50% =
50-50; 80% = surprised if it does NOT happen
2. Qualitative Risk Analysis (continued):
 The impact scale reflects the potential severity of the effect on the
project objectives: 1 = low severity; 2 = medium severity;
3 = high severity; etc.
Output: list of prioritized risks based on the probability times impact
Risk Response
3. Risk Response - Contingency Plans:
Develop contingency plans to reduce threats to the project objectives
Identify individuals to take responsibility for each critical risk response in
the form of a contingency plan
These plans are added to the project action list to be reviewed on a
regular basis
Several risk response strategies are possible. Select the most effective
strategy for each risk. The available strategies are:
Avoidance: change the project plan to eliminate the risk
or condition inducing risk
Transference: shift the consequences of the risk to
another party (e.g. insurance)
Mitigation: reduce the probability and/or consequence of
an adverse risk event to an acceptable threshold
Acceptance: a conscious decision not to change the
project plan
Control risks by continually monitoring and correcting risky conditions:
reviews, inspections, development of fall back positions, etc.

Risk management process

There are various risk management processes in the literature and in use.
Most use the same fundamental steps
Objectives
Objectives are measurable goals.
Explicit objectives are those stated in either the public documents of an
organization or their internal documents (eg: Government priorities documents,
Business Plan)
Implicit objectives are those inherent or assumed in any organization.
Start with definition of the organizational objectives that flow from
Government priorities and Ministry/Department objectives.
Each Ministry/Department, Division, program will have its own subset of
objectives
Identify risk
Risk Assessment

Impact
An estimate of the effect that the risk will have in relation to time, cost, quality,
safety or performance called for in the organizations objectives.
Bannisters Law
The difference in circumstances between a small and
a very large loss is often marginal.
Likelihood
An estimate of the chance that loss will occur in the future. Must be time bounded
(i.e. per year).
Murphys Law
If anything can go wrong, it will, usually at the most inconvenient time.

24.Compare quantitative and qualitative risk assessment methods. Pp. 431-

436
Qualitative
The use of words to describe risk
Quantitative
The use of numbers to describe risk
Both have weaknesses and can be manipulated, meriting healthy doubt.
The interplay of both keeps each other honest.
Analyzing Risk Qualitative
Subjective
Educated Guess
High, Medium, Low
Red, Yellow, Green
1-10
Prioritized/Ranked list of ALL identified risks
First step in risk analysis!
Risk Analysis Quantitative
Numerical/Statistical Analysis
Determines probability of occurrence and consequences of risks
Should be focused to highest risks as determine by Qualitative Risk
Analysis and Risk Threshold
Qualitative vs Quantitative: Strengths
Qualitative vs Quantitative: Weaknesses

Why risk is estimated vs. measured

Uncertainty & measurement errors exist in most research statistical data.
No data - information must be assumed
Insufficient data - info must be intrapolated
Wrong data- info must be interpreted
Data wrong - mistake must be corrected (if noticed)
Data is historical (trend must be prognosticated)
Measures are wrong (info not representative of event)
Measurements are wrong (info not representative of reality

Plan & Take Action

Cost Benefit Analysis (CBA)
A framework for organizing complex thoughts about risk
Reduces risk to numbers: dollars or ratios.
Useful for comparing options and tolerability.
Full CBA can be very complex and expensive.
Value of life and discount rates are very problematic.
Other complex factors to consider: equity, fairness, ethics.
 Decision rule: Balance of cost & benefit vs. a gross disproportion
between them?
Some countries use CBA as a rule; others as a tool.
CBA process can be more useful than the outcome

Acceptable or Intolerable Risk

Dealing with Risks

Can take actions to deal with risks:
1. Share Risk in full or in part
2. Reduce Likelihood
3. Reduce Consequences
4. Avoid but not because of aversion
5. Accept/Retain but not by default

Monitoring and Reporting Risk

Show genuine interest
Go on site
Request proof/demonstration
Observe it
 Ask questions
Share information & discuss with others
Look for supporting/contradictory evidence
Learn about the risk
Document it
Stay focused on the objectives

Project Risk Management

The Risk Event Graph
25.Draw the risk breakdown structure. Pp. 447

The Risk Breakdown Structure (RBS)

Partial Risk Profile for Product Development Project

Defined Conditions for Impact Scales of a Risk on Major Project Objectives
(Examples for negative impacts only)

Risk Assessment Form

Failure Mode and Effects Analysis (FMEA)

Impact Probability Detection = Risk Value
26.Define: project risk management PRM, objectives, role of PRM in PM,
good RM practice, . Pp. 451-465

Project Risk Management Definition

project risk is an uncertain event or condition that, if it occurs, has a
positive or negative effect on a projects objectives.
Project Risk Management includes the processes concerned with
conducting risk management planning, identification, analysis, responses,
and monitoring and control on a project.
Project Risk Management Objectives
The objectives of Project Risk Management are to increase the probability
and impact of positive events, and decrease the probability and impact of
negative events in the project.
Project objectives include scope, schedule, cost, and quality.
Role of Project Risk Management in Project Management
Project Risk Management aims to identify and prioritize risks in advance of
their occurrence, and provide action-oriented information to project
managers.
This orientation requires consideration of events that may or may not occur
and are therefore described in terms of likelihood or probability of
occurrence in addition to other dimensions such as their impact on objectives.
Project Risk Management is not an optional activity: it is essential to
successful project management.
It should be applied to all projects and hence be included in project plans
and operational documents. In this way, it becomes an integral part of every
aspect of managing the project, in every phase and in every process group.
Project Risk Management addresses the uncertainty in project estimates and
assumptions.
It builds upon and extends other project management processes. For
instance, project scheduling provides dates and critical paths based on
activity durations and resource availability assumed to be known with
certainty.
Quantitative risk analysis explores the uncertainty in the estimated durations
and may provide alternative dates and critical paths that are more realistic
given the risks to the project.
 Project Risk Management requires that these project management processes
(e.g. scheduling, budgeting, and change management) be performed at the
level of the best practices available.
Project Risk Management adds the perspective of project risk to the outputs
of those other processes and adds to their value by taking risk into account.
A risk management approach is applicable throughout a projects life cycle.
The earlier in the project life cycle that the risks are recognized, the more
realistic the project plans and expectations of results will be.
Risk management continues to add value as project planning progresses and
more information becomes available.
During project execution, risk management processes monitor the changes
the project undergoes for new risks that may emerge so that appropriate
responses to them can be developed, as well as check for existing risks that
are no longer plausible.
Project Risk Management plays a role in providing realistic expectations for
the completion dates and cost of the project even if there are few options for
changing the future.
Throughout the project and during project closure, risk-related lessons are
reviewed in order to contribute to organizational learning and support
continuous improvement of Project Risk Management practice
Good Risk Management Practice
Project Risk Management is a valuable component of project management .
Project Risk Management should be conducted in a manner consistent with
existing organizational practices and policies.
Project Risk Management should be conducted in a way that is appropriate
to the project.
Project Risk Management should recognize the business challenges as well
as the multi-cultural environment .
Changes in the project management plan that result from the Project Risk
Management process may require decisions at the appropriate level of
management
Project Risk Management should be conducted in compliance with these
internal and external requirements.
Project Risk Management should always be conducted on an ethical basis, in
keeping with the Project Management code of ethics or conduct. Honesty,
responsibility, realism, professionalism and fair dealing with others.
 Effective Project Risk Management benefits from robust communication and
consultation with stakeholders.
Project Risk Management should be conducted on all projects. The degree,
level of detail, sophistication of tools, and amount of time and resources
applied to Project Risk Management should be in proportion to the
characteristics of the project under management and the value that they can
add to the outcome.

27.What is the project managers role in PRM? Pp. 465-469

The project manager has particular responsibilities in relation to the
Project Risk Management process.
The project manager has overall responsibility for delivering a successful
project which fully meets the defined objectives.
The project manager is accountable for the day-to-day management of
the project, including effective risk management.
The Role of The Project Manager May Include:
Encouraging senior management support for Project Risk
Management activities.
Determining the acceptable levels of risk for the project in
consultation with stakeholders.
Developing and approving the risk management plan.
Promoting the Project Risk Management process for the project.
Facilitating open and honest communication about risk within the
project team and with management and other stakeholders.
Participating in all aspects of the Project Risk Management
process.
Approving risk responses and associated actions prior to
implementation.
Applying project contingency funds to deal with identifi ed risks
that occur during the project.
Overseeing risk management by subcontractors and suppliers.
Regularly reporting risk status to key stakeholders, with
recommendations for appropriate strategic decisions and actions to
maintain acceptable risk exposure.
 Escalating identified risks to senior management where
appropriate: such risks include any which are outside the authority
or control of the project manager.
Monitoring the efficiency and effectiveness of the Project Risk
Management process.
Auditing risk responses for their effectiveness and documenting
lessons learned

28.What are the tools and techniques to identify risk? Pp. 485-491
A range of tools and techniques is available for risk identification. These
fall into the following three categories:
o Historical reviews are based on what occurred in the past, either
on this project, or other similar projects in the same organization,
or comparable projects in other organizations., which would
o Current assessments rely on detailed consideration of the current
project, analyzing its characteristics against given frameworks and
models in order to expose areas of uncertainty.
o Unlike historical review approaches, current assessment techniques
do not rely on outside reference points, but are based purely on
examination of the project.
o Creativity Techniques A wide range of creativity techniques can
be used for risk identification, which encourages project
stakeholders to use their imagination to find risks which might
affect the project.
o The outcomes or effectiveness of these techniques depend on the
ability of participants to think creatively.
o These techniques can be used either singly or in groups, and
employ varying degrees of structure.
o These techniques depend on the ability of participants to think
creatively, and their success is enhanced by use of a skilled
facilitator.
o Each category of risk identification technique has strengths and
weaknesses, and no single technique can be expected to reveal all
knowable risks.
o Consequently, the Identify Risks process for a particular project
should use a combination of techniques, perhaps selecting one
from each category.
 o For example, a project may choose to use a risk identification
checklist (historical review), together with assumptions analysis
(current assessment) and brainstorming (creativity).
29.What are the tools and techniques to perform quantitative /qualitative risk
analysis and what are the critical success factors? Pp. 492-513
Purpose and Objectives of the Perform Qualitative Risk Analysis Process:
a. The Perform Qualitative Risk Analysis process assesses and
evaluates characteristics of individually identified project risks and
prioritizes risks based on agreed-upon characteristics.
b. Assessing individual risks using qualitative risk analysis evaluates
the probability that each risk will occur and the effect of each
individual risk on the project objectives.
Critical Success Factors for the Perform Qualitative Risk Analysis Process
Use Agreed-Upon Approach The process is based on an agreed-upon
approach to this assessment that is applied across all of the identified risks in
any project.
By the nature of project risk, all risks may be assessed according to
probability of occurrence and impact on individual objectives should the risk
occur.
Other factors may be considered in determining the importance of a risk as
follows:
Use Agreed-Upon Definitions of Risk Terms
Collect High-Quality Information about Risks
Perform Iterative Qualitative Risk Analysis
The tools and techniques used for assessing individual risks will identify the
risks that are important to the projects success. This process is shown in the
following figure:
 PERFORM QUANTITATIVE RISK ANALYSIS
Purpose and Objectives of the Perform Quantitative Risk Analysis
Process
The Perform Quantitative Risk Analysis process provides a numerical
estimate of the overall effect of risk on the objectives of the project,
based on current plans and information, when considering risks
simultaneously.
It is generally accepted that analyzing uncertainty in the project using
quantitative techniques such as Monte Carlo simulation may provide more
realism in the estimate of the overall project cost or schedule than a non-
probabilistic approach which assumes that the activity durations or line-item
cost estimates are deterministic.
It should be recognized that quantitative risk analysis is not always required
or appropriate for all projects.
Critical Success Factors for the Perform Quantitative Risk Analysis
Process
Prior Risk Identification and Qualitative Risk Analysis :
o The Perform Quantitative Risk Analysis process occurs after the
Identify Risks and Perform Qualitative Risk Analysis processes
have been completed.
Appropriate Project Model:
o An appropriate model of the project should be used as the basis for
quantitative risk analysis.
o Project models most frequently used in quantitative risk analysis
include the project schedule (for time), line-item cost estimates (for
cost), decision tree (for decisions in the face of uncertainty) and
other total-project models.
o Quantitative risk analysis is especially sensitive to the
completeness and correctness of the model of the project that is
used.
Commitment to Collecting High-Quality Risk Data:
o Often high-quality data about risks are not available in any historic
database and should be gathered by interviews, workshops, and
other means using expert judgment of those present. Collection of
risk data requires resources and time as well as management
support.
Unbiased Data:
 o Success in gathering risk analysis data requires the ability to
recognize when biases occur and combating that bias.
Overall Project Risk Derived from Individual Risks:
o The Perform Quantitative Risk Analysis process is based upon a
methodology that correctly derives the overall project risk from the
individual risks.
o In risk analysis of cost and schedule, for example, an appropriate
method is Monte Carlo simulation.
o A decision tree is an appropriate method for making decisions
when future events are not certain, using the probability and
impact of all risks, and combining their effect to derive an overall
project measure such as value or cost.
Interrelationships Between Risks in Quantitative Risk Analysis:
o Attention should be given to the possibility that the individual risks
in the project model are related to each other.
Tools and Techniques for the Perform Quantitative Risk Analysis Process
Comprehensive Risk Representation
Risk models permit representation of many, if not all, of the risks that
have impact on an objective simultaneously. They also permit the
representation of both opportunities and threats to the projects
objectives.
Risk Impact Calculation
Quantitative models facilitate the correct calculation of the effect of
many risks, which are typically identified and quantified at a level of
detail below the total project, on the project objectives, which are
typically described at the level of the total project.
Quantitative Method Appropriate to Analyzing Uncertainty
Probability models use a quantitative method that addresses uncertainty.
Specifically, the methods should be able to handle the way uncertainty is
represented, predominantly as probability of an events occurring or as
probability distributions for a range of outcomes.
Data Gathering Tools
Data gathering tools used in this process include assessment of historical
data and workshops, interviews, or questionnaires to gather quantifi ed
informationfor example, on the probability of a risk occurring, a
 probability distribution of its potential impacts on cost or time, or
relationships such as correlation between risks.
Effective Presentation of Quantitative Analysis Results:
Results from the quantitative tools are generally not available in
standard deterministic project management methods such as project
scheduling or cost estimating. include the following:

Probability of achieving a project objective such as finishing on time or within

budget.
Amount of contingency reserve in cost, time, or resources needed to provide a
required level of confidence
Identity or location within the project model of the most important risks.
The elements of a quantitative risk analysis are illustrated in the following figure:

Iterative Quantitative Risk Analysis

The success of the Perform Quantitative Risk Analysis process is
enhanced if the process is used periodically throughout the project.
It is impossible to know in advance all of the risks that may occur in a
project.
 Often quantitative risk analysis should be repeated as the project
proceeds.
Information for Response Planning
Overall project contingency reserve in time and cost should be
reflected in the projects schedule and budget.
Quantitative risk analysis provides information that may be used to
modify the project plan.
If the overall risk to time and cost indicates that an adjustment in
scope is needed, the scope changes are agreed upon and documented
and a new quantitative risk analysis is carried out to reflect the new
aspects of the project.
Documenting the Results of the Perform Quantitative Risk Analysis
Process
The results of a quantitative risk analysis are recorded and passed on
to the person and/or group responsible for project management within
the organization for any further actions required to make full use of
these results.
30.What are the purpose and objectives of the plan risk responses process and
what are the critical success factors? Pp. 514-529

31.The objective of the Plan Risk Responses process is to determine the set of
actions which most enhance the chances of project success while complying
with applicable organizational and project constraints.
32.The planning entails agreeing upon the actions to be taken and the potential
changes to budget, schedule, resources, and scope which these actions might
cause planning.
33.The responsibility for monitoring the project conditions and implementing the
corresponding actions should be clearly assigned.
34.The risk owner is responsible for ensuring that the risk response is effective and
for planning additional risk responses if required,
35.All the approved, unconditional actions arising from risk response planning
should be integrated into the project management plan.
36.The corresponding organizational and project management rules should also be
invoked, including the following:
a. Project change management and configuration control;
b. Project planning, budgeting, and scheduling;
c. Resource management; and
 d. Project communication
Critical Success Factors for the Plan Risk Responses Process

Communicate: Communication with the various stakeholders should be

maintained in an open and appropriate manner.
Clearly Define Risk-Related Roles and Responsibilities: The risk
response success will be dependent upon the full support and involvement of
the project team and other stakeholders.
Specify Timing of Risk Responses: Agreed-upon responses should be
integrated into the project management plan and will therefore be scheduled
and assigned for execution.
Provide Resources, Budget, and Schedule for Responses: Each response
should be planned in detail in accordance with the methodology of the
project and integrated into the project management plan. Managements role
at this stage is vital for supporting the project manager in developing risk
responses and authorizing the corresponding resources.
 Address the Interaction of Risks and Responses: Responses may be
developed to address risks related either by cause and effect or by common
root cause.
Ensure Appropriate, Timely, Effective, and Agreed-Upon Responses: In
general, responses should be appropriate, timely, cost-effective, feasible,
achievable, agreed-upon, assigned, and accepted.
Any proposed risk response plan needs to be assessed against the following
criteria:
Consistency with organizational values, project objectives, and stakeholder
expectations;
Technical feasibility;
Ability of the project team or risk action owners outside the project to
carry out the corresponding actions; and
Balance between overall impact of the response on the project
objectives and the improvement in the risk profile of the project.
Address Both Threats and Opportunities Risk response planning should
combine responses that address the threats as well as those that provide for
opportunities into a single, integrated plan. If either threats or opportunities
are not fully addressed, the combined set of response strategies will be
incomplete and may even be invalid.
Develop Strategies before Tactical Responses Risk response planning
should be carried out in an open-minded manner rather than adopting the fi
rst response that seems to be feasible.
Risk Response Strategies The project manager should develop risk
response strategies for individual risks, sets of risks, and project level risks.
Avoid a Threat or Exploit an Opportunity This strategy involves taking
the actions required to address a threat or an opportunity in order to ensure
either that the threat cannot occur or can have no effect on the project, or
that the opportunity will occur and the project will be able to take advantage
of it.
Transfer a Threat or Share an Opportunity This strategy entails
transference to a third party that is better positioned to address a particular
threat or opportunity.
Mitigate a Threat or Enhance an Opportunity Mitigation and
enhancement are the most widely applicable and widely used response
strategies. Here, the approach is to identify actions that will decrease the
 probability and/or the impact of a threat, and increase the probability and/or
the impact of an opportunity.
Accept a Threat or an Opportunity This strategy applies when the other
strategies are not considered applicable or feasible. Acceptance entails
taking no action unless the risk actually occurs, in which case contingency or
fallback plans may be developed ahead of time, to be implemented if the risk
presents itself.
Applying Risk Response Strategies to Overall Project Risk In addition to
responding to individual risks, the four risk response strategies can be
applied to address overall project risk as follows:
Cancel the project, as a last resort, if the overall level of risk remains
unacceptable.
Set up a business structure in which the customer and the supplier
share the risk.
Re-plan the project or change the scope and boundaries of the project,
for example, by modifying the project priority, resource allocations,
delivery calendar, etc.
Pursue the project despite a risk exposure that exceeds the desired
level.
There are four categories of tools and techniques, as follows
Creativity tools to identify potential responses,
Decision-support tools for determining the optimal potential response
Strategy implementation techniques designed to turn a strategy into
action, and
Tools to transfer control to the Monitor and Control Risks process

32. What are the purpose and objectives of the monitoring and
control process and what are the critical success factors? Pp. 532-
539

2. The primary objectives of risk monitoring and controlling are to track

identified risks, monitor residual risks, identify new risks, ensure that risk
response plans are executed at the appropriate time, and evaluate their
effectiveness throughout the project life cycle.
3. As the project progresses, additional information becomes available and the
project environment may change as some risks occur, whether foreseen or
unforeseen, and others become or cease to be relevant.
 4. The planning should therefore be kept current and the project manager
should ensure that periodic risk reassessment, including risk identification,
analysis, and response planning, is repeated at reasonable intervals, or in
response to project eventswithout generating excessive administrative
overhead.
5. Typical reasons for risk reassessment are:
31. Occurrence of a major or unexpected risk,
32. Need to analyze a complex change request,
33. Phase end review, Project re-planning or major plan elaboration, and
34. Periodic review to ensure that the information remains current.
35. An overview of the steps involved in the Monitor and Control Risks
process is given in the following figure

Critical Success Factors for the Monitor and Control Risks Process
Integrate Risk Monitoring and Control with Project Monitoring and
Control From the start, the project management plan should include the
actions required to monitor and control project risk.
Continuously Monitor Risk Trigger Conditions Risk response planning
will have defined a set of actions to be carried out as part of the project.
Maintain Risk Awareness Risk management reports should be a regular
item on every status meeting agenda to ensure that all team members remain
 aware of the importance of risk management and to ensure that it is fully
integrated into all of the project management decisions.
Managing Contingency Reserves: Reserves may have been allocated
separately to cover time-related and cost-related risks.
Tracking Trigger Conditions Trigger conditions and the corresponding
metrics are defined during the Plan Risk Responses process. Tools are
required to evaluate and track these conditions against the project baseline or
specified thresholds, based on actual status.
Tracking Overall Risk Tools are required in order to determine, as the
project progresses, whether the responses are having the expected effect on
the projects overall level of risk.
Tracking Compliance In order to monitor the quality of the execution of
the risk-related plans and processes, a set of quality metrics such as degree
of variation from the baseline, should be tracked and recorded.
The final control action of risk monitoring and controlling is to record actual
data for future use. This includes all of the relevant information relating to
risk management from start to finish of the project.
32. What are the inputs-tools-output for;
e. Plan risk management
f. Identify risks
g. Perform qualitative analysis
h. Perform quantitative analysis
i. Plan risk response
j. Control risk
33. What Do Many Risk Managers Do?
Buy Insurance
Supervise Safety
Handle Claims
Administer Insurance Policies
Report to Management on:
Losses
Insurance marketing results
Loss Prevention Programs
34. What Do Some Risk Managers Do?
Identify Hazard Related Exposures
Identify and negotiate insurance product solutions to finance related risks
and move them to third party insurers
Hope to get the policies in less than 6 months
Assess where prevention techniques are most useful and worthy of
resourcing and make the business case to management for funding
Aggressively attempt to minimize the payment of loss dollars for claims and
litigation, especially those self insured, to minimize the cost of risk.
Report to management of premium and claim dollars saved, losses prevented
and the total cost of risk against a typically industry based benchmark
Work with brokers and selected internal functions, to achieve all of the
above
35. What 2 Things Should Risk Managers Do?
Be well versed in all key aspects of core company operations, key staff
functions and business strategy, that generate or have the potential to
generate, the most significant exposures to the firm.
Apply a comprehensive and customized risk management model to all
significant or material risks, operational, financial or business/strategic and
regardless of whether insurable or not.
36. Write a short note on traditional Approach
Hazard Focused
Insurance solution oriented
Limited perspective on the risks of the entity
 Heavily dependent on intermediaries
Low to medium management priority
No to low governance priority
Executable with dedicated, part time or outsourced resources
First, remember that each companys needs drive the response to this question.
Pros:
Narrow focus easier to execute well
Well understand sources of loss; readily available solutions to finance and
transfer
Much available talent to manage
Cons:
Ignores what are likely to be the most significant risks to the firm
Heavy dependence on third parties may jeopardize effectiveness
37. Write a short note on progressive Approach
Recognizes the need to look beyond insurable risks
Recognizes process ownership
Recognizes that process owners cant be risk owners and that risk owner
engagement is critical to successful risk management
Higher management and governance priority attached to managing risk
Less executable with heavy dependence on external sources of expertise
Success depends on full time dedicated, internal expertise trusted by
management and governance
Recognizes the need for alignment with key risk stakeholders

Pros:
More likely to be prepared for uninsurable events
More management and governance attention to risk issues
Less dependency or third party services
Cons:
Usually in the developing stage and often difficult to sell and gain
permanent traction with management
Difficult to find external sources of expertise that comprehensively
understand the firms exposures and how they can best be managed
38. Write a short note on advanced Approach (answers for Q33 to Q38: Pp.
548-565)
Full acceptance of need for comprehensive, state-of-the-art and urgent risk
management methods, tools and techniques
Clear delineation between process and risk ownership
Recognition of insurance as just one of many mitigation strategies
Typically complete integration with strategic planning processes
Pros:
Surfaces key risk issues quickly and effectively
Evidences engagement by all key risk stakeholders and owners
Minimizes the likelihood that risk values will exceed tolerances or that controls
will be less than effective
Cons:
Expensive to implement
Expertise difficult to find and keep
CRO as scapegate for all that goes wrong

39. Why RM Initiatives Fail. Pp. 567

40. What is quality and its eight dimensions? Pp. 569-577
The quality of a product or service is a customers perception of the degree to
which the product or service meets his or her expectations.
The degree of excellence of a thing.
Concise Oxford Dictionary.
Totality of features and characteristics of a product or service that bears
upon its ability to satisfy stated or implied needs.
International Standards Organisation.
Means many things to many people - it is usually associated with cost.
Fitness for purpose - J M Juran
Conformance to requirements - P B Crosby
Providing customers, both internal and external, with products and
services that fully satisfy their negotiated requirements.
Fitness for purpose and use, and foreseeable misuse
"Quality is conformance to specifications.
British Defence Industries Quality Assurance Panel
"Quality is synonymous with customer needs and expectations.
R J Mortiboys
"Quality is a predictable degree of uniformity and dependability, at low cost
and suited to the market.
Edwards Deming
"Quality is meeting the (stated) requirements of the customer- now and
in the future.
Mike Robinson
"Quality is the total composite product and service characteristics of
marketing, engineering, manufacturing and maintenance through which the
product and service in use will meet the expectations by the customer."
Armand Feigenbaum
"Totality of characteristics of an entity that bear on its ability to satisfy
stated and implied needs. ISO 8402 : 1994
JAPAN - Perfection
GERMANY - Conformance to Specification
FRANCE - A Luxury
AMERICA - It Works Doesn't It!
 The Four Absolutes of Quality
Quality is conformance to requirements
o Do what you said you would do.
The system for producing quality is NOT prevention, NOR is it appraisal.
o Solve problems permanently
The performance standard is ZERO defects.
o Right first time and every time.
Quality is measured by the cost of Non-Conformance.
o Repair / re-work is paid for out of profits.

The Eight Dimensions of Quality

Performance
Reliability
Durability
Serviceability
Aesthetics
Features
Perceived Quality
Conformance to Standards

41. Write a short note on TQM. Pp. 580-588

In the 1950s, the Japanese asked W. Edwards Deming, an American
statistician and management theorist, to help them improve their war torn
economy. By implementing Deming's principles of total quality
management (TQM), Japan
experienced dramatic economic growth. In the 1980s, when the United
States began to see a reduction in its own world market share in relation
to Japan, American business rediscovered Deming.
Total quality management experts or gurus, Joseph Juran and Philip
Crosby, also contributed to the development of TQM theories, models,
and tools.
TQM is now practiced in business as well as in government, the military,
education, and in non-profit organizations.
TQM is "a system of continuous improvement employing participative
management and centered on the needs of customers".
 Key components of TQM are employee involvement and training,
problem solving teams, statistical methods, long-term goals and thinking,
and recognition that the system, not people, produces inefficiencies.
TQM is seen as primarily a management-led approach in which top
management commitment is essential.
The emphasis is on quality in all aspects and functions of the company
operation, company-wide, not just the manufacturing function or
provision of a major service to the external end-customer.
Employee awareness and motivation are essential. The chart below
depicts how the management process constantly strives for continuous
improvement, deliver customer value, and excellence.

42. What are the determinants of quality and cost of quality. Pp. 595-598

Determinants of Quality
o Quality of design
o Quality capability of production processes
o Quality of conformance
o Quality of customer service
o Organizational quality culture
Costs of Quality
Scrap and rework
rescheduling, repairing, retesting ....
Defective products in the hands of the customer
recalls, warranty claims, law suits, lost business ....
Detecting defects
inspection, testing .
Preventing defects
training, product/process redesign .
43. What are the quality tools 599=608
THE MAGNIFICENT SEVEN
1. Histograms and Statistical Graphical Data presentation.
2. Check sheet
3. Pareto chart
4. Cause-and-effect diagram
5. Defect concentration diagram
6. Scatter diagram
7. Control chart
44. Write a short note on:
a. Walter A. Shewart
Walter A. Shewart (1891-1967)
Trained in engineering and physics
Long career at Bell Labs
Developed the first control chart about 1924
Bell Telephones engineers had been working to improve the reliability of
their transmission systems.
 In order to impress government regulators of this natural monopoly with the
high quality of their service, Shewhart's first assignment was to improve the
voice clarity of the carbon transmitters in the company's telephone handsets.
Later he applied his statistical methods to the final installation of central
station switching systems, then to factory production.
When Dr. Shewhart joined the Western Electric Company Inspection
Engineering Department at the Hawthorne Works in 1918, industrial quality
was limited to inspecting finished products and removing defective items.
That all changed on May 16, 1924. Dr. Shewhart's boss, George D. Edwards,
recalled
"Dr. Shewhart prepared a little memorandum only about a page in length.
About a third of that page was given over to a simple diagram which we
would all recognize today as a schematic control chart.
That diagram, and the short text which preceded and followed it, set forth all
of the essential principles and considerations which are involved in what we
know today as process quality control."
Shewhart's work pointed out the importance of reducing variation in a
manufacturing process and the understanding that continual process-
adjustment in reaction to non-conformance actually increased variation and
degraded quality.
Shewhart framed the problem in terms of assignable-cause and chance-cause
variation and introduced the control chart as a tool for distinguishing
between the two.
Shewhart stressed that bringing a production process into a state of statistical
control, where there is only chance-cause variation, and keeping it in
control, is necessary to predict future output and to manage a process
economically.
Dr. Shewhart created the basis for the control chart and the concept of a state
of statistical control by carefully designed experiments.
While Dr. Shewhart drew from pure mathematical statistical theories, he
understood data from physical processes never produce a "normal
distribution curve" (a Gaussian distribution, also commonly referred to as a
"bell curve").
He discovered that observed variation in manufacturing data did not always
behave the same way as data in nature (Brownian motion of particles).
 Dr. Shewhart concluded that while every process displays variation, some
processes display controlled variation that is natural to the process, while
others display uncontrolled variation that is not present in the process causal
system at all times.
Shewhart worked to advance the thinking at Bell Telephone Laboratories
from their foundation in 1925 until his retirement in 1956, publishing a
series of papers in the Bell System Technical Journal.
His work was summarized in his book Economic Control of Quality of
Manufactured Product (1931).
From the late 1930s onwards, Shewhart's interests expanded out from
industrial quality to wider concerns in science and statistical inference.
The title of his second book Statistical Method from the Viewpoint of
Quality Control (1939) asks the audacious question: What can statistical
practice, and science in general, learn from the experience of industrial
quality control?

b. W. Edwards Deming
Taught engineering, physics in the 1920s, finished PhD in 1928
Long career in government statistics, USDA, Bureau of the Census
During WWII, he worked with US defense contractors, deploying
statistical methods
Sent to Japan after WWII to work on the census
Japanese adopted many aspects of Demings management philosophy
Deming stressed continual never-ending improvement
Deming lectured widely in North America during the 1980s; he died
24 December 1993
Dr. Deming outlines his fourteen points for management.
He understood that managers of people need to understand that all
people are different. Not rank people but understand that largely the
area that he works in, and is the responsibility of management governs
the performance of anyone.
Below we can see what Dr. Deming taught in his style of
management.
Deming Chain Reaction
 Demings System of Profound Knowledge
Appreciation for a system
Understanding variation
Theory of knowledge
Psychology
Demings 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission statement and commit to
it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. 10. Eliminate exhortations for work force.
11. 11. Eliminate numerical quotas and Management By Objectives
M.B.O. Focus on improvement.
 12. 12. Remove barriers that rob people of pride of workmanship.
13. 13. Encourage education and self-improvement.
1. 14. Take action to accomplish the transformation.
c. Joseph M. Juran
Born in Romania (1904), immigrated to the US
Emphasizes a more strategic and planning oriented approach to quality than
does Deming
Juran Institute is still an active organization promoting the Juran philosophy
and quality improvement practices
The Juran Trilogy
1. Planning
2. Control
3. Improvement
These three processes are interrelated
Control versus breakthrough
Project-by-project improvement

J M Juran sees quality planning as part of the quality trilogy of quality

planning, quality control and quality improvement
The key elements in implementing companywide strategic quality planning
are in turn seen as:
identifying customers and their needs;
establishing optimal quality goals;
creating measurements of quality;
planning processes capable of meeting quality goals under operating
conditions;
and producing continuing results in improved market share, premium
prices, and a reduction of error rates in the office and factory
. Juran's 'Quality Planning Road Map' consists of the following steps:
1. Identify who are the customers.
2. Determine the needs of those customers.
3. Translate those needs into our language.
4. Develop a product that can respond to those needs.
5. Optimize the product features so as to meet our needs as well as
customer needs.
 6. Develop a process, which is able to produce the product.
7. Optimize the process.
8. Prove that the process can produce the product under operating
conditions.
9. Transfer the process to Operations.

Juran concentrates not just on the end customer, but identifies other external
and internal customers.
There has been a mention of seven deadly sins to total quality management
every organization should not deviate from: Flight to nowhere;
One size fits all;
Substituting TQM for leadership;
Inside - Out indicators;
Mandatory religion;
Quality kept as a separate activity;
Teaching to the test.
Maintaining focus and linking your organization back to the four principles
of TQM will assist you in reaching your goals and the vision that you have
set forth.
Jurans Quality Trilogy
Quality planning
Quality control
Quality improvement

d. Philip B. Crosby
e. Armand V. Feigenbaum
f. Kaoru Ishikawa
g. Genichi Taguchi. Pp. 628-686
45. What re the elements of TQM? Pp. 689-695
46. Write a short note on project:
a. Quality planning
b. Quality assurance
c. Quality control. Pp. 639-738