Q.1 Explain the following a. Project Vs. Program Vs. Portfolio b.

Project work and Traditional functional work A-a) Difference between Project, Program and Portfolio Management Project Management: A project has a definite start and end date with a clearly mentioned deliverable produced and project management is the application of knowledge, skills, tools, techniques and processes to effectively manage a team to achieve this final deliverables, which means the management of a specific project. Project management focuses on delivering the specific objectives of the project. Program Management: A program is a group of related projects which are managed together to obtain specific benefits and which cannot be obtain if the projects are managed individually. Program management is focused on achieving the strategic objectives of the integrated project. Portfolio Management: A portfolio is the collection of projects or programs grouped together to facilitate effective management of effort to meet strategic business objectives and this typically includes identifying, and prioritising projects and programs to achieve specific strategic business objectives. If you consider projects as the bottom of a hierarchy then programs sit above them in the middle of the hierarchy and address a related set of projects. This allows the portfolio management level to stand at the top of this hierarchy. b) Differences between Project Work and Traditional Functional Work Project work and traditional functional work differ in many ways. It is important to understand these differences. Functional work is routine ongoing work. Each day machine operators, car salesmen, secretaries, accountants, financial analysts and quality inspectors perform functional work that is routine, notwithstanding some variations from day to day. The functional worker gets training from a manager assigned to the specific function, and the manager supervises and manages the worker according to standards of productivity and quality set for the particular function. In contrast to functional work, project work is a temporary endeavour undertaken to create a unique, non-routine product or service. A project manager manages a specific project with people and other resources assigned to him only for project management support on the specific project, and not on an ongoing basis. The project manager is responsible for the approved objectives of a project such as budget, schedule and specifications. Project terms are typically not organised in the same hierarchical structure as that of functional group.

Q.2 Compare Operation and project procurement. Also list and explain the project procurement process. ANS- The differences between the procurement carried out for the overall operation of an organisation, and the procurement carried out for a specific project, are shown below

Project Procurement Management Process The project procurement method varies depending on the category of the contracted product or service. The broad categories are: Materials or products Equipment or tools Labours Professional services Totally engineered systems Total project Project Procurement Management generally involves the following: Deciding to Make or Buy Outsourcing the work for a Buy decision. Managing risk (although risk management is often addressed separately, it is noteworthy that contracts are, at their core, risk management tools.) All procurement requires some level of planning. The intensity and the effort required in planning depend on the complexity of the scope of work in the procurement package. For a manufacturing company deciding to starts a project, the make or buy decision forms the first step in the procurement planning. This decision is based on a cost comparison between make and buy, and the timely availability of the manufacturing equipment or shop personnel for meeting deliveries without adversely affecting their other job orders. Several companies in India exist, wherein; the company or a division of the company already manufactures a product, and the company is also executing projects for its clients which require the same product as

part of another project scope. The market scenario for the product or service to be procured gives rise to any of the following three conditions: Sole Source: In this case there is only one qualified seller in the market. For example, Dow Chemicals under their patent was the only manufacturer Reverse Osmosis (RO) membranes which was utilised for desalinating saline water and all water treatment package vendors had to buy RO membranes only from them or their licensee in a country. Single Source: This is a case when your organisation prefers to work with an identified seller, even though other sellers may offer a lower price. Sometimes companies show a preference for a supplier with a view to create a long term relationship for a niche product which the company may require to procure often. Oligopoly: This is a condition where the providers of the product or service are so few in number that the actions and pricing of one seller affect the actions and pricing of the other sellers. Examples of airline fares, oil prices, and hardware prices can fall in this category. The function performed by each process is explained below. Plan Purchases and Acquisition Plan Purchases and Acquisitions is the process for deciding what to buy or acquire and when and how to buy that. It is a process of identifying the risks involved in each make or buy decision. It also reviews the type of contract with regard to mitigating the risk by determining what risks can be transferred to seller. The outputs of this process are: starting with development of procurement documentation and culminating in contract closure. which is included in the particular contract). Plan Contracting This process includes preparation of a procurement document for each contract planned. This document is issued to prospective sellers who are invited to bid. The invitation is termed Invitation To Bid (ITB), Request For Quotation (RFQ), tender notice, Request For Proposal (RFP), invitation for negotiation or contractor initial response. ITB and RFQ (both imply the same type of invitation) are focused on getting the sellers price, and not his ideas. For example if RFP asks for a price that means in addition, it necessarily asks for the sellers and ideas on how the project work should be done, which implies that there is a bit of consultancy service demanded from the sellers in their response. Evaluation criteria: The first category of evaluation relates to prequalification of a firm for receiving the ITB. Here, a prior assessment of the capability of a firm to perform the intended scope of work is made. For large value contracts, the ITB is preceded by an invitation to submit a prequalification offer, in which the seller is asked to submit his experience list for similar works carried out by enumerating the following: work. financial statements like balance sheet, Profit and Loss (P & L) account for the last 3 to 5 years.

ment/production machinery owned.

This data submitted by all prospective bidders is analysed to arrive at a list of prequalified bidders, eligible to receive the ITB/RFP. The second category of evaluation criteria relates to evaluating the bids received in response to the ITB/RFP. These may involve price loading criteria for technical and commercial deviations stipulated by the bidders in their bids, as well as specific criteria for price loading on utilities. Request Seller Responses While the prospective sellers are expected to submit their bids in response to the ITB/RFP as issued to them, it is a common practice in large value contracts to host a bidders conference, where all bidders are present and are permitted to ask questions concerning the SOW. This method is followed to ensure that all bidders possess the same information on which to base their prices and proposals. After satisfactory completion of this step, a due date for submission of the bid/proposal is communicated to all bidders. This process is called solicitation. The output of this process is a bunch of bids proposals from the bidders. The proposals are the sellers prepared document that describes the sellers ability to provide the requested products/services at his quoted price. Select Sellers This process involves complete evaluation (techno-commercial evaluation and price evaluation) of the bids received, followed by negotiations with the bidders. Here the bidders have been pre-qualified following a fairly extensive evaluation; the final selection of the seller is usually based on the lowest evaluated price. The outputs of this process are: The Contract: This can be a simple purchase order or a complex document. A contract is a legal document backed by the countrys legal system (as long as it does not include illegal activities). Contract Management Plan: This covers contract administration activities through the life of the contract. Contract Administration Contract administration is a process of managing the contract between buyer and seller. It is also provides: documentation of this performance. ly manage contract related changes. Contract Closure Contract closure is a process of completing the contract by resolving all open items. Sometimes, a contract may be foreclosed or terminated by mutual agreement between buyer and seller.

Q.3 Describe the role of project managers in Human resource management and communication management. ANS- Role of Project Manager in HR and Communications Management A project manager is responsible for managing various tasks, activities and processes to ensure that the project is delivered in the defined time. He is responsible for defining the goals and objectives of the project and ensures that the resources that are required for the smooth working of the project are available. He also monitors and controls the project process to keep track of the status of the work. This ensures that the progress, schedule, procedures and the cost of the project are well monitored. Apart from monitoring and controlling the implementation and execution of the project, a project manager also plays a vital role in Human Resources and communications management such as: sistency in methodology,

get the job done.

performance and correcting as necessary. Human Resource Management Process Human Resource Management includes various processes that are vital to make the most effective use of the people involved with a project. The main process involved with the HR Management process includes:

1.Acquiring a Project Team The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into subteams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organisations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated.

Important factors that are considered during the process of acquiring the team are: position to supply the required Human Resources in a project. agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation. 2. Developing a Project Team Developing a project team is a process of enhancing interaction among the team members and also the project manager. The process refers to increasing competencies of individuals and building up team spirit, which finally leads to a quality project. To achieve project success, there should be good communication among the team members. Project managers should administer the development of the project team. The project manager should create the relevant environment for teamwork, provide new goals for the team to compete and achieve. Project managers should encourage feedback from the team. The project manager should provide effective review and good support to the team staff. Open communication between the project manager and team reduces conflicts. The management should also support the project managers. The project stakeholders should provide the required support to the development of the project team. Projects are done in diversified environments. The project team may experience variance in language, industry and culture while at work. The project team should be dedicated to the project and the team members should work together, without losing their individuality. The goals for developing a project team are: lop technical knowledge about the project, this leads to quality output and meeting delivery schedules with reduced cost.

dge among team members. 3.Managing a Project Team Managing a project team is the process of delegating responsibilities and tasks, monitoring team performance, providing feedback, solving issues, and coordinating changes to enhance overall project performance. Managing the team is one of the most critical aspects of project management. The project manager should encourage building competencies among the team members and reward them accordingly. Key aspects of managing a project team are: k and observing the commitment level in each team member. -operative working relationship and ensuring effective communication among all members of the project team.

The inputs for managing a project team are: Assets of organisational process

Project staff allocations Team roles and responsibilities Project organisational plan Staff management plan Assessment of team performance Work performance Project performance reports

Communication Management Process Communication Management process provides a critical link between people, ideas, and information at all stages during the project life cycle. Apart from devoting time on project planning, execution and delivery, project manager should also value communication and communication management. Lack or excess of communication within a project team will eventually derail the project from its original course. The Communication Management processes are planning communication, distributing information, reporting performance and managing stakeholder expectations. Communication Management in a project is defined as the process of creating, gathering, distributing, storing, and retrieving the project information. The project managers systematically plan, implement and monitor the communication within the project team and with the project stakeholders. Communication Management process is a set of steps considered while communicating in a project team. A project team frequently communicates within the team, with the project manager and also with the project stakeholders. Communication Management process can make these communications, effective. It creates a link between different stakeholders engaged in the same project. Importance of Communication Management Effective Communication Management leads to a successful project. It is delivered on time, with minimal or no defects and within the budget. Such projects provide client satisfaction. In a properly structured project, project communication should be open, regular and accurate within the various levels i.e. stakeholders, project manager and project team members. Project staff or team should know its roles and responsibilities, which has to be efficiently communicated by the project manager. At the same time, right expectations with respect to budget, time constraints and quality should be set with the client and properly communicated so as to prevent any future uncertainty. Similarly, project staff should frequently update the project manager regarding the progress of the project. Such updates from the project team are essential for the project manager to closely monitor the project. Information needs to be communicated to a project team based on the rank within the organisation. The project team releases newsletters, articles and trends followed within the project on a regular basis, so that the team members and stakeholders would get adequate project information and can scale up accordingly. Critical project and organisation information can only be communicated to the board members of the organisation. The project functionality, deadlines and other project requirements

can be communicated to the project team. Various types of communication in Project Management are: Internal and external: These are the communications done within the project team and with the stakeholders. Formal and informal: These include reports, logs, memos, emails, discussions and project meetings. Vertical or horizontal: The team members discuss project issues with the managers and the peers in the project. Official and unofficial: These include circulars, reports and also certain off-therecord conversations in a project.

Q.4 If the optimistic estimate of an activity is 12 days & pessimistic estimate is 18 days. What is the variance of this activity? ANSOptimistic Time (To)= 12 Days Pessimistic Time (Tp)= 18Days Variance of activity = [(Tp-To)/6]2 = [(18-12)/6]2 = (6/6)2 =2

Q.5 Describe the following quality control tools: a. Ishikawa diagram b. Flow chart c. Pareto chart d. Scatter diagram ANS- Ishikawa diagram : This is also known as fishbone diagram or Ishikawa diagram was developed in 1960 and named after Kaoru Ishikawa, a Japanese quality control statistician. It is one of the seven basic tools of quality management. It is named fishbone diagram because of its fish-like appearance. It is a systematic way of analysing effects and causes that creates or contributes to the effects. This tool is employed by a problem solving team for assembling all inputs systematically and graphically. All the inputs given to this tool is obtained from a brainstorming session. It enables the team to focus on why the problem occurs and not on the symptoms or history of the problem. It also displays a real-time snapshot of the collective inputs of the team as it is updated. The possible causes are represented at various levels of detail in connected branches. The level of detail increases as the branch goes outwards which means that an outer branch is a cause of the inner branch it is attached to. Therefore, the outermost branches in a cause and effect relationship diagram usually indicate the root causes of the problem. Figure 11.4 shows an example of cause and effect diagram.

Flowchart: It is an essential project management technique. It is used by the project manager and project management team to discuss about the project. Flowchart is a specific graphical representation of order and process that must take place during the life of a project. This represents and highlights fundamental elements of project like every single mode of input, processing action, and output. Flowchart is not meant to represent a formal and unyielding plan that describes how the project must be conducted. It is a brainstorming type of activity that is meant to merely illustrate the anticipated course that the project and its anticipated components will take, with the idea that it may in fact become obsolete as the project advances. Flowcharts are also used to represent a document process flow. This is used to figure out bottlenecks or breakdowns in current processes. Flowcharts are also be used to show changes in process, when improvements are made or to show a new work flow process. The figure 11.2 given below shows the generic flowchart

Pareto Charts: This quality control tool is based on Paretos rule. The Pareto rule states that 80 percent of the problems are often due to 20 percent of the causes. The basic assumption is that most of the results in any situation are determined by a small number of causes and helps to identify the vital few contributors that account for most quality problems. The Pareto chart is a form of histogram that orders the

data by frequency of occurrence. It shows how many defects were generated, by a type of category of identified cause. For example, to determine the errors in the collection of beneficiary data, a project team identified five causes and frequency of errors, of each cause. The bars represent each category and, the line the cumulative percentage of the errors. The chart indicates that that 80% of the errors could be reduced just by improving the data collection in two categories, instead of focusing efforts to correct all categories. Below an example of Pareto chart to identify the frequency of various data errors.

Scatter Diagrams: It is a graphical technique used to analyse the relationship between two variables. It determines and shows whether or not there is correlation between two variables. Correlation means the measure of the relationship between two sets of numbers or variables. Two sets of data are plotted on a graph, where yaxis is used for the variable to be predicted and the x-axis is used for the variable to make the prediction. A scatter diagram shows the possible relationships. It should be noted that two variables might appear to be related but they might not be. Hence those who know well about the variables must evaluate the variables. Correlation does not refer a direct cause and effect relationship. variable can be predicted, based on the value of the other variables, then there exists correlation. All relationships between variables are not linear. A visible slope of line does not provide any information about the strength of correlation since the scales of the graph can be expanded or compressed on either axis of the scatter diagram. The direct or strong correlation between the variables does not necessarily imply cause and effect relationship. If a correlation is shown by scatter diagram, investigate for further confirmation. For example, volume of ice cream sold per day is strongly correlated to the daily number of fatalities by drowning. Neither of the variables is a result and strongly correlated to third variable which is the outside

temperature. The steps to draw a scatter diagram for a process are shown in the table below-

Q.6 List the benefits of WBS? Need for risk management in an organisationcomment. ANS- Work Breakdown Structure Work breakdown structure (WBS) is a fundamental component of project management process that helps in defining and organising the total scope of a project using hierarchical tree structure. According to Project Management Body of Knowledge (PMBoK), 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. The hierarchy structure approach of WBS helps the project team to know the requirements of total project more accurately and specifically. WBS can also be used to assign responsibilities and allocate resources to the project. It helps the team to monitor and control the project. Benefits of WBS Work breakdown structure represents family tree hierarchy structure of project operations required to accomplish the objectives of the project. Tasks identified in the WBS collectively describe the overall project. It serves to describe the link between the end objective and activities required to reach that objective. Implementing work breakdown structure approach in project planning offers various benefits which are given in table below:

Need of Risk Management in an Organisation The PMBoK defines risk management as the formal process by which risk factors are systematically identified, assessed and provided for. Risk management provides an opportunity and support to an organisation to gain and access better control over various factors of a project. They are: )

Risk management helps the organisation to control and monitor various activities in a project. The following points describe the needs of the risk management:

the activities carried out within the project by taking appropriate measures, as well as to remove any interruptions as quickly as possible in the event of interrupts in the project. and third parties.

The Risk Management process is a generic guide for any organisation, regardless of the type of business, activity or function. It is an integral part of business planning. It also helps project sponsors and project teams to take informed decisions regarding alternative approaches to achieve their objectives and to reduce relative risk involved, in order to increase the likelihood of success in meeting or exceeding the objectives of the project. Risk management encourages the project team to take appropriate measures to: the objectives of project with lower cost, shorter schedules, enhanced scope and higher quality.

The effectiveness of risk management strategies varies for one project to another based on their risk profiles. The following points describe the applicability of different strategy: For relatively low-uncertain projects, fast decision making can reduce the uncertainties from delays caused by regulatory changes, political changes and economic changes. For project with high level certainties, purposeful postponement of some commitments and decisions can reduce the risks through acquisition of more and better information that lead to better decisions.