Student Notes PDF

Project Management by Arul 16:59
Sivagananathan (PIM)
MBA 515 Introduction to

Project Management
Introduction to Project Management
Arul Sivagananathan
The Course
Key Elements:
Introduction to Project Management
Project planning and resourcing
Project financing & costing
Project contracts, Risk, Quality, monitoring & controls
Project (classroom team assignment – Compulsory
attendance)
1
Evaluation 
Scheme of Evaluation:
• Classroom project programme ( all groups)
Must have passed all sections to pass final PM course
Reading…. 
Recommended Reading:
• **Project Management by Harvey Maylor – published by Pearson Education
• *Jack R. Meredith and Samuel Mantel JR, Project Management – John Wiley & Sons
• *PMBOK, A Guide to the Project Management Body of Knowledge.4th Edition, The
Project Management Institute, USA.
• Kohil, U. and Chitkara, Project Management Handbook, Tata McGraw – Hill Publishing
Company Ltd
• Gunasekera, P. Mervyn, Managing Projects – Professional Management Handbook
Series, Academy of Management Science, Sri Lanka
• Berkley, T. Bruce, Project Risk Management – Tata McGraw – Hill Publishing Company
Ltd
• Hutching, F. Jonathan, Project Scheduling Handbook – Marcel Dekker Inc
2
What is a project
A project is a team of people working together to complete a particular task:
• By a specific TIME
• Within a specific BUDGET
• To a specific STANDARD
Definition of Project
“a management environment that is created for the purpose

of delivering one or more business products according to a
specific business case or requirement”
“a temporary organization that is needed to produce a

unique and pre-defined outcome or result at a
pre-specified time using pre-determined resource”
3
Project terms
• Short term – Launch of a products – (< 1year)
• Medium term – Project ICC world cup / Olympics / FIFA Game ( every 3-4 years)
• Long term – Project ‘Star Wars’ (50 years)
Evolution of projects:
Non-Numeric
• The Sacred Cow
• The Operating Necessity
• The Competitive Necessity
• Benefit / Priority Model
Numeric
• Breakeven
• Payback
• RoR (Rate of Return)
• NPV/Discounted Cash flow
4
What is project management
Project management is a discipline & a skill and not a profession
Defined as :
“the planning, monitoring, reporting and controlling all aspects of a
project and the motivation of all those involved in it to achieve the
project objectives on time and to the specified cost, quality and
performance”
Who is a project manager
Defined as :
“The person given the authority and responsibility to manage the project
and deliver the end objective”
Characteristics of a Project Manager

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•
•
•
•
•
•
5
Defining the Scope / Project

S
M
A
R
T
E
R
Defining the Scope / Project

How?
5W&1H -How will it be used
-How long is it required to What?
last -What is the problem
When? -What would be the
-When will it be used impact if not done
-What is the end result
Defining
-What was done before
Who? Project
-Who will use it Scope
-Who will manage it (Charter)
-Who will fund it Why?
-Who will support it -Why is the result required
Where? -Why doesn’t it exist already
-Where will it up used
-Where is it in our list of
priorities
6
The measure
Economical
Cost
Scope
Time Quality
Reasonable Acceptable Project Fit for Purpose
Basic Project Planning
Act PLAN
Check
DO
7
6 phases of a Project
Identify the problem to be solved or
Initiation
opportunity to be exploited
Specify the scope with an objective, by

Definition
when and with what resource
Detail forecast with specific timelines,

Planning resource, responsibility & communications
Build the tasks, monitor, report &

Control
adjust plans accordingly
Passing what has been created to

Implement the user and helping them to
ation
adjust to any changes
Assess the outcome &
Review look back and learn for
future
Types of Projects
Runners •Regular updates
Repeaters •Regular review
Strangers •Unique / one off
8
Functional structure – Adhoc

Functional Projects
CEO
CEO
Dept A Dept B Dept C Dept A Dept B Dept C Project Manager
A B C
A B C
Shared
Resource
Matrix structure
9
Project Team
PM
No of
Volume vs Complexity
Projects
Routine
Runners
Functional
Matrix Repeaters
Special
Project Strangers
Complexity
10
Choice of Structure
Will depend on:
• Commercial importance
• Amount of involvement required from each team member
• Resource and skill availability
• Project length
• Project type - % of Runner, Repeater or Stranger
• Other parallel projects running
• Cost
• Organization style & culture
Project stakeholders
Stakeholders of a
project
11
Stakeholder Analysis
Fully Generally Neutral Generally Totally
Committed Positive Opposed Against
Significant influencer to CEO
project but cannot be
influenced by the PM
Marginal influence but SME
cannot be influenced by
PM
Influence and equal to PM HR
Marginal influence but can Sponsor
be influenced by PM
Significant influence and Public
can be influenced by PM
Project life cycle

No of people,
Cost,
Level of effort
Time
Conceptualization Kick off Implementation Evaluation and Closure
12
Multiple Projects
- People
- Cost,
- Effort
Time
Aspects to consider in project

management
Consider the 10-S’s:
1. S
2. S
3. S
4. S
5. S
6. S
7. S
8. S
9. S
10. S
13
Key Success factors of a project

•
•
•
•
•
•
•
•

Project Management
Session 2 – Project Planning and
Resourcing
14
6 phases of Project
Identify the problem to be solved or
Initiation
opportunity to be exploited
Specify the scope with an objective, by

Definition
when and with what resource
Detail forecast with specific timelines,

Planning resource, responsibility & communications
Build the tasks, monitor, report &

Control
adjust plans accordingly
Passing what has been created to

Implement the user and helping them to
ation
adjust to any changes
Assess the outcome &
I.D. Please, Review look back and learn for
Checking In Road future
Activities
Project initiation, team / structure
Initiation
formation, Select PM
Sign off objective, agree resourcing, sign off business

Definition
case, consensus from stakeholders, budget sign off
Project plan, resource plan, quality plan, budget

Planning plan, risk log, project documentation, progress
report, meetings
Monitor & report progress, milestone review

Control
change to scope, budget review, quality review
Implement Testing (UAT), sign off, final review,

ation launch or go-live
Feedback, minor
Review modifications, Project
close & lessons learnt
and sign off
15
Project planning techniques

WBS, OBS, RBS, PERT, CPM & Gantt
• WBS – Work Breakdown Structure – Activity of each unit
• OBS – Organisational Breakdown Structure – Roles & Resp of units
• RBS – Risk Breakdown Structure / Resource Breakdown Structure
Launch a
Product
Marketing Production Design Purchasing Finance
Ad agency Market Survey Capacity Material price Delivery

planning Product & stocks schedule Budget
design(s)
Broken down in to Activities
Project planning tools

PERT, CPM (arrow/network diagram), Gantt
• PERT started by US Navy for missile project in 1958 where as CPM was produced by Du Pont
company for R&D
• PERT – Program / Project Evaluation Review Technique
• CPM – Critical Path Method
• Gantt Chart – Project plan with horizontal bars (also referred to as bar chart)
Transport Old
unit and debris
Remove old out
Cupboard & Fix New unit &
appliances appliances
Buy new Unit & Transport

Market New
Survey
appliances unit to Home
Finished
Start
(Kitchen
Refurbishment) Add 2nd coat
Paint the walls
Buy paint & tiles
Delivery
Electrical work Fix tiles
schedule Grout
16
Definition and Rules

Key Words
1) Activity – a specific task or sets of tasks required in a project which takes time and
resource to complete
2) Event – The result of completing one or more activities. Usually drawn as nodes at the
start and end of each arc)
3) Network – Combination of all activities (usually drawn as arc)
4) Path – The series of connected activities
5) Critical – Activity or event or path which if delayed will delay the project and cost
money.
6) Critical path – Sequence of critical activities from start to end of a project which is the
total time of the project
7) Non-Critical – Activities which are part of the project but non critical and some delay to
those will not delay the project due to slack time
8) Slack time – Extra time available within a non-critical activity
9) Dummy activity – related but not connected (Shown as dotted lines)
Some Rules:
1) Use straight lines and not curves
2) Lines cannot point backwards
3) All projects must have a start and end node
4) Avoid lines crossing each other.
5) Cannot have two activity lines between two nodes
Definition and Rules
Start End
Critical Path
Activity
Node
17
Project planning with cumulative

Timing
1 2 7 8 9 10 15 16 17 18 19
a b c d e f g h i j k
a. Open cupboard & Take Mug – 1 min

b. Fill kettle with water – 1 min
c. Plug & switch on & let it boil– 5 min
d. Once boiled pour in to mug – 1 min
e. Take tea bag & place in mug – 1 min
Total time
f. After 5 mins take tea bag away – 5 min 19 mins
g. Add 2 spoons of sugar & stir– 1 min
h. Add milk & stir – 1 min
i. Strain in to Cup – 1 min
j. Take a tray and place cup on tray – 1 min
k. Serve – 1 min

Critical Vs Non-Critical
1 6 7 12 13 14 15 16
b c
a
e d f g
h i j k
a. Open cupboard & Take Mug – 1 min

b. Fill kettle with water – 1 min Critical Activity
c. Plug & switch on & let it boil– 5 min
d. Once boiled pour in to mug – 1 min (Cannot delay)
e. Take tea bag & place in mug – 1 min Slack Activity
f. After 5 mins take tea bag away – 5 min
g. Add 2 spoons of sugar & stir– 1 min
(can be delayed)
h. Add milk & stir – 1 min
i. Strain in to Cup – 1 min
j. Take a tray and place cup on tray – 1 min
k. Serve – 1 min
18
PERT/CPM/Network Diagram Calculation
2 2
A B
2 2
0 7 3 1
START C D E END
0 7 3 1
6
F
6 KEY
ES Dur EF
Act
LS Dur LF

Gantt Chart / Bar Chart (all in one)
19
Resource Planning / Scheduling

A= 2 weeks, 2 FTE 2
1 C= 5 weeks, 4 FTE 4
B= 3 weeks, 2 FTE
3
FTE
8 Max 8
a
6 6 Optimum
a b
4 c c Min 4
2 c 2 c
b b
1 2 3 4 5 Weeks 1 2 3 4 5 Weeks
Must DO for a successful project delivery

• Project Delivery plan – Business case, Goal, end objective
• Communication plan, key to success to have good comms across all SH
• Risk Plan, balance risk Vs reward. As a PM will have to take some risk
• Resource plan, optimization
• Budget plan, regular reviews and scenario based
• Purchasing plan, eg where possible JIT or outsource to cut time/money
• Delivery plan eg shipment delays, port clearance
• Stakeholder Management, use stakeholder analysis
• MI
• Project update
• Project documentation
• Issue log, maintain up to date logs
• Meeting agenda and Minutes
• Stakeholder updates, proactive updates
• Lessons learnt from previous projects
• Project audit
• Project closure
20
Green Projects (balancing the

environmental impacts)
As a modern Project Manager it is important to consider the environmental
and social impact. There are many sustainable green projects and CSR projects which
are all part of the ‘balancing’ process
• Use PESTEL (Political, Economic, Social, Technological, Environmental, Legal)
analysis before embarking on a project
• Most of the projects will have an environmental impact (Example from
construction of a building to manufacturing new products which will carry some
waste back in to earth or atmosphere
• As a project manager find ways to mitigate such action and if unavoidable then
invest in sustainable projects / carbon neutral projects to counter such action
• Cost will be slightly higher than completing a projects without such initiatives
but on the long run it is important that we leave the earth resources for our
children to enjoy as well.
1. Lisa has been engaged at $100 per week as a Project Manager to organize a workshop for
Senior Leadership Team (SLT) of company X. She has listed below the list of activities
she will need to carryout and the time it will take. She has also estimated the cost of each
activity.
No Activity Time Dependency Total

(weeks) Cost ($)
A Design the Workshop & Theme 2 - 800
B Send email to check availability of 4 A 0
all SLT
C Prepare agenda for the workshop 3 A 300
D Search for Venue 2 A 300
E Start the reservation process 2 B 0
F Develop and print workshop 6 C 1100
material
G Book the venue & pay the 50% 1 D 5000
advance
H Send email confirming the date to 2 E,F,G 0
SLT
I Inform CEO the final agenda, cost 1 H 0
& number of SLT attending
a. Lisa has turned to you for help to construct a CPM (network) diagram to work out the
critical path and also to estimate the total cost of the project? Do a forward pass and
backward pass to calculate time of each activity and the total time of the project? (10
marks)
b. Explain what is critical path in a project? Show the critical path of this project and
how Lisa can shorten the time taken in this project if required? (5 marks)
c. Explain the slack time in the activities of this project and how she can reorganize her
schedule without affecting the total time taken? (5 marks)
d. Explain five possible risks associated with this project and how Lisa can mitigate
those risks? (5 marks)
21
CPM –Optimistic, Most likely, Pessimistic; Expected
To calculate Expected time (Ex):

Ex = (Op + 4xML + Pe)/6
CPM –Optimistic, Most likely, Pessimistic; Expected

Critical Path
Op ML Ex Pe
Probability
Eg Activity B
0 1 2 3 4 5 6 7 8 9 10 time
22
Key Challenges faced by PM

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Project Management
Session 3 – Project Finance & costing
23
Project Financing
There is no single technique to finance a project. Each project is unique and
financing of each project can be unique as well. Here are few types of
funding (or combination):
• Equity financing – Parent company taking stake in the project, or issue of
new shares
• Loan / lease financing – Banks and lending agents
• Subsidised financing – Government funds
• PPP – Public Private Partnership – toll roads
• Donor funded – NGOs, WB, IMF
• Friendship – BMICH
• Profits, excess cash funded – building a house
• Budget funded – R&D
Project Costing techniques:

There are several techniques used in estimating project costs. Again there is
no single technique in costing a particular type of project. However here are
some tried and tested methods
• Activity based costing - WBS
• Analogous estimation – Using the actual cost of a previous project to estimate the
current cost with inflation added
• Cost plus – All costs as incurred plus an agreed margin (%)
• Zero based budgeting or bottom-up estimate
• Determine resource costing – where factors are constant (per hours rate)
• Parametric estimation – using average rate known – eg construction of a house
• Vendor bid estimate
• Scenario based costing
• YoY budget based – long term projects
24
Factors to be considered when costing a project

Key factors
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
Business case
Considering the key factors, building a business case to get approval for a
project will always be a challenge. Simply because each factor will be
sensitive and a change in the basis point will impact the business case:
To launch a new product (100 units):
- Sales / Marketing cost = $10,000
- Manufacturing / plant cost = $10,000
- Raw material / sourcing cost = $10,000
- Personnel cost = $10,000
Total cost = $40,000
Unit Cost = $40,000/100 unit = $400
Margin = 10%; Selling price of $440; Profits $4,000
25
Cash Flow
Value Management
Reserve
Funding required
Cost Estimate
Expected Cash flow
Time
Earned Value (EV)

Current performance is the best indicator of future performance, and
therefore using trend data, it is possible to forecast cost or schedule
overruns at an early stage in a project. The most comprehensive trend
analysis technique is the Earned Value method.
Earned Value is an approach where you monitor the project plan, actual
work, and work-completed value to see if a project is on track. Earned Value
shows how much of the budget and time should have been spent, with
regard to the amount of work done so far.
Planned Value is Budgeted Hours x Budgeted Rate:
PV = BH X BR
Actual Cost is Actual Hours x Actual Rate:

AC = AH X AR
Earned Value is Actual Hours x Budgeted Rate:

EV = AH X BR
To determine scheduled variance and cost variances:

SV = EV - PV
CV = EV - AC
26
Performance valuation for Payment

Value Estimated Total
Actual Cost
budget at
(AC)
completion
Funding requirement
Planned Value Now imagine multiple ‘S’ curves

(PV) Example 10 units, 10 weeks @ 100
Earned Value
(EV)
at a given time Date
Types of Analysis
• Payback Analysis – Only considers the cash inflow and outflow
• Eg initial investment is Rs 10M and return is 4M a year then payback period is 2.5 yrs
• IRR (Internal Rate of Return) – Set basic return criteria on time value of money
• (ie the discounted rate for which the NPV=0)
NPV $+
IRR
Discounted rate
NPV $-
• Discounted Cash Flow – Considers the time value of Money

• This is an accurate estimate of a project costs and return on investments.
• Must for a long term project.
27
NPV
Net present value (NPV) or net present worth (NPW) is time series of cash
flow, both incoming and outgoing, is defined as the sum of the present
values (PVs) of the individual cash flows.
NPV is simply the PV of future cash flows minus the purchase price.
NPV is a central tool in discounting cash flow (DCF) and is a standard
method using time value of money to appraise long-term projects.
Discount rate is the rate used to discount future cash flows to the present value. It
is the rate of return that could be earned on an investment in the financial markets
with similar risk. It is a key variable in the process (see table).
If NPV is +ve then the project is good to invest in.

If NPV is –ve then the project is not worth investing in.
Fixed cost and sunk costs are not considered in a NPV calculation.
NPV = C n / (1 + i)n
C n is the future value of the investment n years, n = years, i is the discounted rate of return
NPV example
As a PM you have been asked to recommend whether an investment of $6,000 will
provide a payback within 3 years. Assuming running cost of $3,000 in year 1 and
$4,500 from year 2 onwards. Revenue estimated to be $4,000 in year 1 and
thereafter increase by $1000 each year. It is proposed that the company sells the
investment for $5,000 after 3 years. The rate of return is 12%.
Year Outflow Inflow
28
Discount Table
Year 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

0 1 1 1 1 1 1 1 1 1 1
1 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929
2 0.9426 0.9246 0.907 0.89 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972
3 0.9151 0.889 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118
4 0.8885 0.8548 0.8227 0.7921 0.7629 0.735 0.7084 0.683 0.6587 0.6355
5 0.8626 0.8219 0.7835 0.7473 0.713 0.6806 0.6499 0.6209 0.5935 0.5674
6 0.8375 0.7903 0.7462 0.705 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066
7 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.547 0.5132 0.4817 0.4523
8 0.7894 0.7307 0.6768 0.6274 0.582 0.5403 0.5019 0.4665 0.4339 0.4039
9 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606
10 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.322
11 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875
12 0.7014 0.6246 0.5568 0.497 0.444 0.3971 0.3555 0.3186 0.2858 0.2567
13 0.681 0.6006 0.5303 0.4688 0.415 0.3677 0.3262 0.2897 0.2575 0.2292
14 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.232 0.2046
15 0.6419 0.5553 0.481 0.4173 0.3624 0.3152 0.2745 0.2394 0.209 0.1827
NPV example
As a PM you have been asked to recommend whether an investment of $6,000 will
provide a payback within 3 years. Assuming running cost of $3,000 in year 1 and
$4,500 from year 2 onwards. Revenue estimated to be $4,000 in year 1 and
thereafter increase by $1000 each year. It is proposed that the company sells the
investment for $5,000 after 3 years. The rate of return is 12%.
Method 2: Discount Table based
Year Outflow Inflow Total 12% PV
29
NPV - Example
Co X must decide whether to introduce a new product. The new product will have
startup costs, operational costs, and incoming cash flows over six years. This project
will have an immediate (t=0) cash outflow of $100,000 (which includes machinery,
and employee training costs). Other cash outflows for years 1–6 are expected to be
$5,000 per year. Cash inflows are expected to be $30,000 each for years 1–6. All cash
flows are after-tax, and there are no cash flows expected after year 6. The required
rate of return is 10%. Calculate the present value (PV) for each year and NPV.
Should Co-X invest in the new product?
Years Outflow Inflow Net (I-O) DF 10% PV
Discounted Cash Flow
Net $25,000 YoY
Time value of money
30
Cumulative Discounted Cash Flow
Misjudgment
NPV - Calculation
You are the fund manager for company Aquila. The CFO of the company wants you to
evaluate the possibility to buy a business which generates annually (Y1-10) Rs 50,000. The
initial purchase price of the company is Rs 300,000. It also required annual running cost of
Rs 25,000 each year (this incl staff & operating cost). All cash flows are after-tax, and
there are no cash flows expected after year 10 and hence the CFO wants to sell the
business on the 10th year. It is estimated the sale price at that time to be Rs 200,000. The
required rate of return is 10%. Calculate the present value (PV) for each year and NPV.
Advise the CFO?
Years Outflow Inflow Net DF 10% PV
31

Project Management
Session 4 - Contract, Controls and
Monitoring
Contract
What is a contract and contract law?
Contract is about 3 ‘R’

• Rules
• Risks
• Relationships
Contract is Bargain
Contract is Risk
Contract is Money
Requirements in a contract Law:

1. Capacity – Of the parties involved
2. Legality – The purpose
3. Certainty – Of the terms of the deal
4. Consideration – The bargain for the risk
5. Offer & acceptance – Proof that the parties agreed the terms and they made the contract
32
Project Contracting
In any commercial projects, where there is finance, time and quality
involved, usually a contract is executed.
General Contract
• Offer & Acceptance
• Intension to create legal relationship
• Lawful consideration
• Capacity of parties of competencies
• Free and genuine consent
• Lawful object
• Agreement not declared void
• Certainty and possibility of performance
• Legal formalities
Business Contract
Agreement between 2 or 3 parties in writing , to do, or not to do certain
things. Business contracts are enforceable at law. This will usually involve
monitory transaction. Else it is not a business contract.
• Issue of tender notice in papers or NIT (Notice Inviting Tender)

Enquiry
• Submission of tender document by the bidder

Offer
• Evaluate & Communication in writing by the party accepting the bid

Acceptan and acceptance of the same by the bidder.
ce
• Offer and consideration as acceptance given a legal form and content

Agreeme duly signed by authorized individuals of both authorities
nt
• Contract consists of an agreement on a stamped paper with agreed

Contract variation and the original tender document. This is now a legal form
33
Contract Types:
Each project is unique and so is each contract. There are several variations
to the execution of the contract as required by the project:
• BOT
• BTO
• BRT
• BOOT
• BOO
• BOD
• BOL
• You can have several combinations to this by adding other factors:

• FBOT
• DBOT
• Etc etc
Other types of project contracts
1) Turn-key
2) Lump sum
3) Cost+
4) Profit sharing
5) Purchase order
6) Deed
7) Lease
8) HP
9) Insurance\Guarantee
10) LOI – Letter of Intent – Quasi Contract
etc
34
Discharge/End of Contract
• Performance
• Breach
• Frustration
• Mutual
• Discharge
Dispute Resolution
Usually arises due to time, cost, quality or resource
• Litigation
• Arbitration
• ADR – Alternative dispute resolution
• Expert resolution
• Negotiation
35
Delivery Contracts
Apart from Contract law, there are other factors that needs to be considered
when doing international trade
• Ex-Work
• FAS
• FOB
• C&F
• CIF
Project Monitoring & Control system

Project stages
Monitor & Implement Closure /

Initiate Define Plan
Control / Go-Live Review
Why?
• To track progress against time
• To make payments for work completed
• To check quality
• To update stakeholders on progress’
• Understand issues & risks
• Change requests / changes
• Budget assessment
• Legal requirements
• Environmental impact analysis
• Contract obligations
36
Project Monitoring & Control system

Monitor & Implement Closure /
Initiate Define Plan
Control / Go-Live Review
Scope Procurement
Time (Schedule
(definition and (Purchase
control)
progress) control)
Communication Cost Integration Implemen

Planning &
Execution
(Performance (Budget (Integrated tation /
reporting) control) change control) Go-live
Resource Contract
Quality
(Resource (Risk & contract
(Quality Control)
Control) control)
Monitoring & Controls

Monitoring and controlling consists of those processes performed to observe project execution so that
potential problems can be identified in a timely manner and corrective action can be taken, when
necessary, to control the execution of the project. The key benefit is that project performance is
observed and measured regularly to identify variances from the project management plan.
Monitoring and Controlling includes:

• Measuring the ongoing project activities ('where we are');
• Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and
the project performance baseline (where we should be);
• Identify corrective actions to address issues and risks properly (How can we get on track again);
• Influencing the factors that could circumvent integrated change control so only approved changes are
implemented
In multi-phase projects, the monitoring and control process also provides feedback between project
phases, in order to implement corrective or preventive actions to bring the project into compliance with
the project management plan.
Project Maintenance is an ongoing process, and it includes:

• Continuing support post go-live or completion
• Correction of errors and quality compliance
• Update or maintain as per agreed contract over time
When changes are introduced to the project, the viability of the project has to be re-assessed. It is
important not to lose sight of the initial goals and targets of the projects. When the changes accumulate,
the forecasted result incl cost may not justify the original proposed investment in the project.
37
Project Risk Assessment Matrix
Activity Relevance Progress Remarks

Low (4-5)
1 1 Activity 1 XX YY
5 3 2 Activity 2 XX YY
3 Activity 3 XX YY
High (1-2) Medium (3-4)
4 Activity 4 XX YY
2
RISK
4 5 Activity 5 XX YY
6 Activity 6 XX YY
6
Key Risks & mitigation:
• Activity 4
• Activity 6
High (4-5) Medium (3-4) Low (1-2) • Activity xx
Critical Path / Progress
Project Risk Log
Type Details Likeli Impact Mitigation Status Owner Alternate

hood (L/M/H) Strategy Plan
(L/M/
H)
38

Project Management
Project Quality Management
Quality aspects in Projects

• In Project Management quality control requires the project manager and
the project team to inspect the accomplished work to ensure it's
alignment with the project scope. Fit For Purpose.
• Quality Management - all the activities that are intended to bring about the
desired level of quality (output). – ensure Fit for purpose
• Quality Assurance – Constant review to ensure right end result is delivered
• Quality Audit - the procedural controls that ensure participants are adequately
following the required procedures.
39
Quality stages
Define
Monitor & Review &
Quality Implement
Control Audit
scope / Plan
Agree the Implement Monitor Review the

project quality measure and progress and quality and
scope and agree report quality audit output.
define reporting output. Apply Variance to be
measure (CTQ) methods and corrective corrected or
and tolerance measure action where discounted
levels techniques required
Quality Planning
It is good project management practice, as well as a Quality Management process, to identify
in advance all the anticipated deliverables.
For each project, you should identify:
• Nature, description and purpose of the deliverable (ie scope),

• Quality standard (eg discussion draft, final quality, reviewed or tested, measures and
tolerance)
• Dependencies (what must be completed prior and what further deliverables depend upon
this project)
• Date, time, standard required,
• Agree Author/creator/responsibility,
• People who have to review it,
• People who have to approve it,
• People who should receive it for information or use (but who do not get the opportunity
to review or approve)
• Other distribution (eg third parties, auditors, publishing, filing)
• Security/secrecy requirements - ie who can not see or use it
• Audit and sign off documentation
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Quality Planning
Type of content Description Examples
Objectives What are the objectives of Quality •Acceptable levels of functionality
Management? To what extent is quality to achieve
a requirement in preference to •Acceptable levels of security and
timescales, costs, functionality etc? tolerance levels
•Investment in testing & review
Requirements What specific requirements are to be •Review and sign-off of specific
addressed deliverables or work by specified
people
•Types and depth of review
required
•Availability of specified functions
Quality Methods What approaches and methods •Iterative development in
specified stages
•Methodology to be followed
•Peer review of all deliverables
Standards What format and detail should •Output standards
deliverables be in •measure standards
•documentation standards
Procedures Specified procedures for project tasks •documentation control procedure
•issues management procedure
•Closure prcedure
Quality Techniques
• TQM – The Toyota way
• Six Sigma - 3.4 defects per million opportunities
• 5 ‘S’ (More for an office environment)
• SEIRI means Organisation or sorting
• SEITON means straighten or prepare correctly or Straightening
• SEISO means Cleanup or Cleanliness
• SEIKETSU means Standardisation
• SHITSUKE means Discipline or Sustain
• ISO – International Organisation for Standadization
• FMEA – Used is projects where there are processes
• Continuous Improvement
• Fish Bone analysis - used more in projects
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Fish bone analysis for projects

Fish bone analysis will enable you to do an analysis of your current state, your ultimate
goal and therefore all the steps in between. The tool will help you analyse any external
events that may occur between present day and successful goal completion and will
enable project managers to take action to ensure success. Example below;
Man Machine Material
(Management/Pe (Equipment /
ople / Resource) systems/ tools)
Effect /
Issue /
Defect
Reason
(price hike, shipment)
Cause
(delay in delivery)
Money Minute
(cost / funding) (Time)
42

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Project Management by Arul 16:59

MBA 515 Introduction to

• Classroom project programme ( all groups)

Must have passed all sections to pass final PM course

A project is a team of people working together to complete a particular task:

• Within a specific BUDGET

“a management environment that is created for the purpose

“a temporary organization that is needed to produce a

• Long term – Project ‘Star Wars’ (50 years)

What is project management

Project management is a discipline & a skill and not a profession

“the planning, monitoring, reporting and controlling all aspects of a

project and the motivation of all those involved in it to achieve the

project objectives on time and to the specified cost, quality and

Who is a project manager

Characteristics of a Project Manager

Defining the Scope / Project

Defining the Scope / Project

Reasonable Acceptable Project Fit for Purpose

Basic Project Planning

Specify the scope with an objective, by

Detail forecast with specific timelines,

Build the tasks, monitor, report &

Passing what has been created to

Runners •Regular updates

Repeaters •Regular review

Strangers •Unique / one off

Functional structure – Adhoc

Dept A Dept B Dept C Dept A Dept B Dept C Project Manager

Project life cycle

Conceptualization Kick off Implementation Evaluation and Closure

Aspects to consider in project

Key Success factors of a project

MBA 515 Introduction to

Specify the scope with an objective, by

Detail forecast with specific timelines,

Build the tasks, monitor, report &

Passing what has been created to

Sign off objective, agree resourcing, sign off business

Project plan, resource plan, quality plan, budget

Monitor & report progress, milestone review

Implement Testing (UAT), sign off, final review,

Project planning techniques

Marketing Production Design Purchasing Finance

Ad agency Market Survey Capacity Material price Delivery

Broken down in to Activities

Project planning tools

Buy new Unit & Transport

Definition and Rules

Definition and Rules

Project planning with cumulative

a. Open cupboard & Take Mug – 1 min

Project planning tools

a. Open cupboard & Take Mug – 1 min

PERT/CPM/Network Diagram Calculation

Project planning tools

Resource Planning / Scheduling

Must DO for a successful project delivery

Green Projects (balancing the

No Activity Time Dependency Total

CPM –Optimistic, Most likely, Pessimistic; Expected

To calculate Expected time (Ex):

CPM –Optimistic, Most likely, Pessimistic; Expected