HND in Computing

Project Management

Declaration of originality
This is to certify that this report is submitted in the fulfillment of the requirements for the HND in Computing. I hereby certify that all documentation was done by me. The work has not previously been submitted in any form to the OCBT Campus or to any other institution for assessment for any other purpose. Signed

Date

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INTRODUCTION
This assignment is based on the edexel module Project management. A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources. And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. So a project team often includes people who dont usually work together sometimes from different organizations and across multiple geographies. The development of software for an improved business process, the construction of a building or bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic market all are projects. And all must be expertly managed to deliver the on-time, on-budget results, learning and integration that organizations need. Project management, then, is the application of knowledge, skills and techniques to execute projects effectively and efficiently. Its a strategic competency for organizations, enabling them to tie project results to business goals and thus, better compete in their markets.

In this module all the topics related to project management is included by answering the questions given by the lecturer.

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TABLE OF CONTENT

Declaration of originality ................................................................................................................ 1 INTRODUCTION .......................................................................................................................... 2 TABLE OF CONTENT .................................................................................................................. 3 TABLE OF FIGURES .................................................................................................................... 5 Task P1.1......................................................................................................................................... 6 Question - a ................................................................................................................................. 7 Question b .............................................................................................................................. 11 Question c .............................................................................................................................. 17 Task P1.2....................................................................................................................................... 20 Question a .............................................................................................................................. 20 Question b .............................................................................................................................. 23 Question c .............................................................................................................................. 29 Task P1.3....................................................................................................................................... 33 Task P1.4....................................................................................................................................... 36 Q a ........................................................................................................................................... 36 Q b.......................................................................................................................................... 38 Task P2.1....................................................................................................................................... 39 Q a .......................................................................................................................................... 41 Q b.......................................................................................................................................... 43 Q c .......................................................................................................................................... 46 Task P2.2....................................................................................................................................... 51 Q a .......................................................................................................................................... 51 Q b........................................................................................................................................... 53
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Q c .......................................................................................................................................... 55 Task P2.3....................................................................................................................................... 58 Q a .......................................................................................................................................... 58 Q b.......................................................................................................................................... 62 Task P2.4....................................................................................................................................... 69 Q a .......................................................................................................................................... 69 Q b.......................................................................................................................................... 71 Task P3.1....................................................................................................................................... 75 Q a ........................................................................................................................................... 75 Q b.......................................................................................................................................... 77 Task P3.2....................................................................................................................................... 79 Task P3.3....................................................................................................................................... 83 Task P3.4....................................................................................................................................... 84 Q a .......................................................................................................................................... 84 Q b.......................................................................................................................................... 87 Task M1 ........................................................................................................................................ 88 Task M2 ........................................................................................................................................ 91 Bibliography ................................................................................................................................. 93

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TABLE OF FIGURES
Figure I project constrains ............................................................................................................. 8 Figure II project phases ................................................................................................................. 11 Figure III project initiation............................................................................................................ 13 Figure IV project planning ............................................................................................................ 14 Figure V project execution............................................................................................................ 15 Figure VI project closure .............................................................................................................. 16 Figure VII work breakdown structure........................................................................................... 20 Figure VIII PmIS .......................................................................................................................... 33 Figure IX organizational structure ................................................................................................ 39 Figure X matrix organizational structure ...................................................................................... 43 Figure XI creation of WBS ........................................................................................................... 55 Figure XII Processes based on WBS ............................................................................................ 56 Figure XIII Team development stages .......................................................................................... 62 Figure XIV creation of HR plan ................................................................................................... 72 Figure XV assigning responsibilities for the HR .......................................................................... 73 Figure XVI RAM .......................................................................................................................... 74 Figure XVII Gantt chart 1 ............................................................................................................. 77 Figure XVIII Gantt chart 2 ........................................................................................................... 78 Figure XIX cost schedule.............................................................................................................. 79 Figure XX cost control process..................................................................................................... 80 Figure XXI change control procedure .......................................................................................... 85

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Task P1.1
PROJECT The project was to design and develop a web site according to the following information. Colombo School of Business (CSB) is a newly established educational institute based in Colombo. CSB is offering courses under 3 categories. undergraduate professional postgraduate

Lectures are conducted in both full-time and part-time making the premises crowded with students all the time. CSB is planning to have an open-day on August 2012 targeting the September intake. Everyone who likes to participate needs to register in the web site providing their details. There should be a database to have the registered students details. ROLE I WAS INVOLVED WITH. I had to control the scope, cost as well as the time of the project. I had to gather all the information needed from the customer, analyze the information and plan the website according to the requirement. Therefore I can say that I was the main designer, developer as well as the project manager of the above mentioned web designing project. (Some of my peers were with me to help me as designers and assistance project manager)

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Question - a
A project manager is the person who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project. The job title is used in construction, petrochemical, architecture, information technology and many different industries that produce products and services. The project manager must have a combination of skills including an ability to ask penetrating questions, detect unstated assumptions and resolve conflicts, as well as more general management skills. Key among his or her duties is the recognition that risk directly impacts the likelihood of success and that this risk must be both formally and informally measured throughout the lifetime of the project. Risks arise from uncertainty, and the successful project manager is the one who focuses on this as the main concern. Most of the issues that impact a project arise in one-way or another from risk. A good project manager can lessen risk significantly, often by adhering to a policy of open communication, ensuring every significant participant has an opportunity to express opinions and concerns. It follows that a project manager is one who is responsible for making decisions both large and small, in such a way that risk is controlled and uncertainty minimized. Every decision taken by the project manager should be taken in such a way that it directly benefits the project. Project managers use project management software, such as Microsoft Project, to organize their tasks and workforce. These software packages allow project managers to produce reports and charts in a few minutes, compared with the several hours it can take if they do it manually. [1] All projects are carried out under constraints - traditionally cost, time and scope. These three important factors, commonly called the triple constraint, are often represented as a triangle. Each constraint forms the vertices with quality added as a central theme. Projects must be delivered within cost. Projects must be delivered on time. Projects must meet agreed scope, no more - no less.
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Projects must also meet customer quality requirements.

Figure I project constrains

More recently the triangle has given way to a project management diamond, with cost, time, scope and quality the four vertices with customer expectations as a central theme. No two customer expectations are the same so the project manager must ask what their expectations are. Controlling all the above four in an effective manner is one of the roles of the project manager. During the life cycle of a typical project, a project manager can produce up to fifty different types of documents to facilitate the planning, tracking and reporting of the project. Documents range from feasibility studies, resource plans, financial plans and project plans, to supplier contracts, post-implementation reviews, change request forms and project status reports. The fact is, the manner in which project documents are managed by project leaders can either be the driving force behind a project's success or the bottleneck that often places a project in despair resulting in its failure to meet its time line, budget and scope. As that it proves that managing

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project documents is very important in a project. Therefore managing documents will be a role of the project manager.
The tasks to be handled by a project manager to successfully manage a project include:

Integration Management - This is developing and managing the direction of the project Scope Management - This includes planning, defining and managing the scope of the project. Time and Cost Management - This covers developing a schedule, allocating resources and managing funds for the project. Quality Management - This involves taking care of the quality of the process in question such that it meets or even exceeds various quality parameters set earlier. Human Resource Management - A manager needs to take care of his team, encourage and motivate them and make sure the team moves in the right direction. Communication Management - The manager needs to prepare a communication plan and make sure that there is a healthy communication, both horizontally and vertically. Risk Management - Various risks involved in a project should be identified and a mitigation and contingency plan needs to be developed to ensure that the project is not derailed at any point.

Procurement Management - Various materials needed during the project need to be procured and managed with the vendors and suppliers for successful completion of the project.

A project manager is usually responsible for the success or the failure of the project. They first need to define the project and then build its work plan. If the scope of the project is not very clear, or the project is executing poorly, the manager is held accountable. However, this does not mean that the manager does all the work by himself (which is practically impossible). There is an entire team under the project manager, which helps to achieve all the objectives of the project. However, if something goes wrong, the project manager is ultimately accountable. Apart from this, depending on the size and the complexity of the project, they may need to take on multiple roles. The project manager may need to assist with gathering business requirements,
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help to design a database management system or may prepare project documentation. They may work full time on a large project, or may work part-time on various projects of a smaller nature; or may alternatively handle various projects as well as handle other responsibilities like business analysis and business development. At times, they may have accountability but not authority. For example, he or she may be using certain resources but might not have direct control over those resources. At such times, the manager might find certain limitations over task execution, which might not take place as they might have liked. Not having direct control over the state of finances and finance allocation might cause ambiguity. In order to be successful, the project manager must be given support and authority by senior management. [2]

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Question b
Projects are divided into phases. All the collective phases that a project progresses will form the project life cycle.

Figure II project phases

It includes, Initiation Planning Execution Closure

At each phase allows the project manager, stake holders, and project sponsor to evaluate the progress and determine of moving to the next phase. In each phase there is a deliverable or many which marks the end of each phase. Initiation involves starting up the project, by documenting a business case, feasibility study, and terms of reference, appointing the team and setting up a Project Office. Planning involves setting out the roadmap for the project by creating the following plans: project plan, resource plan, financial plan, quality plan, acceptance plan and communications plan.

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Execution involves building the deliverables and controlling the project delivery, scope, costs, quality, risks and issues. Closure involves winding-down the project by releasing staff, handing over deliverables to the customer and completing a post implementation review. Initiation The purpose of Project Initiation is to begin to define the overall parameters of a project and establish the appropriate project management and quality environment required to complete the project. Development of the Project Charter is a pivotal starting point for the project, establishing the project definition that will serve as the foundation for all future efforts. The completion of this process is marked by the Project Kick-off Meeting, in which the Project Manager presents the Project Charter. Successful projects begin with a detailed project definition that is understood and accepted by Stakeholders. Putting everything down in writing helps ensure a commitment among Project Team members and between the team and the Stakeholders. As part of Project Initiation, an initial Project Plan is developed, which comprises the Project Charter, Cost/Scope/Schedule/ Quality (CSSQ) documents, and preliminary risk identification list. These documents, once approved, ensure a consistent understanding of the project, help to set expectations, and identify resources necessary to move the project to the next level of detailed planning. Potential problems are identified so that they can be addressed early in the project. Also during Project Initiation, a high-level Project Schedule is developed as the roadmap to more detailed Project Planning and Project Execution and Control. This high-level schedule will be refined over time, and will serve as the primary source of information regarding project status and progress. An accurate, realistic, and complete schedule, rigorously maintained, is essential to the success of a project. Sponsorship of the project must be confirmed or gained during Project Initiation. Having a Project Sponsor, and securing approval early in the project management lifecycle, helps to ensure a commitment to the project. [3]

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Figure III project initiation

Planning The purpose of Project Planning is to define the exact parameters of a project and ensure that all the pre-requisites for Project Execution and Control are in place. Project Planning builds upon the work performed during Project Initiation. The project

definition and scope are validated with appropriate Stakeholders, starting with the Project Sponsor and Customer Decision-Makers. Project Scope, Schedule and Budget are refined and confirmed, and risk assessment activities advance to the mitigation stage. The Initiation deliverables CSSQ, and Initial Project Plan are further developed, enhanced, and refined, until they form a definitive plan for the rest of the project. Additional Project Team members are brought on board and familiarized with the project objectives and environment, and additional resources are ready to be brought in following the finalized staff and material acquisition plans. Project Planning is an opportunity to identify and resolve any remaining issues and answer outstanding questions that may undermine the goals of the project or threaten its success. It is an opportunity to plan and prepare, as opposed to react and catch up. Project sponsorship and commitment are re-confirmed at the end of the phase, with approval signifying authorization to proceed and commit funds for Project Execution and Control.
[4]

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Figure IV project planning

Execution The purpose of Project Execution and Control is to develop the product or service that the project was commissioned to deliver. Typically, this is the longest phase of the project management lifecycle, where most resources are applied. Project Execution and Control utilizes all the plans, schedules, procedures and templates that were prepared and anticipated during prior phases. Unanticipated events and situations will inevitably be encountered, and the Project Manager and Project Team will be taxed to capacity to deal with them while minimizing impact on the projects CSSQ. The conclusion of the phase arrives when the product of the project is fully developed, tested, accepted, implemented and transitioned to the Performing Organization. Accurate records need to be kept throughout this phase. They serve as input to the final phase, Project Closeout. [5]

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Figure V project execution

Closeout The purpose of Project Closeout is to assess the project and derive any lessons learned and best practices to be applied to future projects. Project Closeout begins with a Post-Implementation Review. The review may start with a survey designed to solicit feedback on the project from the Project Team, Customers, Consumers and other stakeholders. Once feedback has been collected and evaluated, an assessment meeting is conducted to derive best practices and formulate lessons learned to inform future efforts. Ideally, the best practices and lessons learned should be stored in a centralized organizational repository, facilitating access and retrieval by managers of future projects.
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Project Closeout ends with administrative closeout providing feedback on Project Team members, updating the skills inventory, capturing key project metrics, and filing all pertinent project materials into the project repository. [6]

Figure VI project closure

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Question c
Initiation Prepare for the Project, where the Project Sponsor and initial Project Team are identified and work with the Project Manager to create the Project Charter. Define Cost/Scope/Schedule/Quality (CSSQ), where the Project Manager, along with the Project Team define the scope of the project and identify the preliminary budget, highlevel schedule and quality standards to complete the project. Perform Risk Identification, where the Project Manager and Project Team begin to identify and document any risks associated with the project. Develop Initial Project Plan by the requirement analysis of the user, where the Project Manager and Project Team identify all Stakeholders and document their involvement in the project, develop means of communicating with them, and compile all documentation created during Project Initiation to produce the Initial Project Plan. Confirm Approval to Proceed to Next Phase.

Planning Conduct Project Planning Kick-off, where the Project Manager conducts a meeting to formally begin the Project Planning phase, orient new Project Team members, and review the documentation and current status of the project. Refine Cost/Scope/ Schedule/ Quality, where the Project Team refines the cost, scope, schedule and quality components of the project to more accurately reflect the additional information is learned about the project. Perform Risk Assessment, where the Project Team and Project Manager review the list of risks identified in Project Initiation, identify new risks, evaluate each risk based on the likelihood of its occurrence and magnitude of its impact, and develop a plan to respond to each risk. Refine Project Plan, where additional management procedures and plans are developed and all updated documents created during Project Planning are compiled into the Project Plan to be utilized in Project Execution and Control.
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Confirm Approval to Proceed to Next Phase, where the Project Manager reviews and refines the Business Case, secures resources required for the Project Execution and Control phase and prepares the formal acceptance package for review and approval by the Project Sponsor.

Executing Conduct Project Execution and Control Kick-off, where the Project Manager conducts a meeting to formally begin the Project Execution and Control phase, orient new Project Team members, and review the documentation and current status of the project. Manage CSSQ, where the Project Manager must manage changes to the Project Scope and Project Schedule, implement Quality Assurance and Quality Control processes according to the Quality Standards, and control and manage costs as established in the Project Budget. Monitor and Control Risks, where the Project Manager and Project Team utilize the Risk Management Plan prepared in previous phases, and develop and apply new response and resolution strategies to unexpected eventualities. Manage Project Execution, where the Project Manager must manage every aspect of the Project Plan to ensure that all the work of the project is being performed correctly and on time. Gain Project Acceptance, where the Project Manager, Customer Decision-Makers and Project Sponsor acknowledge that all deliverables produced during Project Execution and Control have been completed, tested, accepted and approved, and that the product of the project has been successfully transitioned to the Performing Organization. Closeout Conduct Post-Implementation Review, where the Project Manager assesses the results of the project by soliciting feedback from team members, customers and other stakeholders through the use of a survey to gather lessons learned, best practices and performance patterns or trends, and communicate those results in the form of a Post-Implementation Report.

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Perform Administrative Closeout, where the Project Manager formally closes the project by providing performance feedback to team members, and archiving all project information.

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Task P1.2
Question a

Website development project

user interface

servers

databases

web pages

servelets

database schemas

css

action handlers

database tables

images

baens

DAOs

graphics

Figure VII work breakdown structure

The above work breakdown structure can be divided to smaller parts as follows. 1 WBS for Web Design Project 1.1 Planning 1.1.1 Product Definition 1.1.2 Stakeholder Approval

1.2 Definition 1.2.1 Requirements Development 1.2.1.1 Business Requirements Development

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1.2.1.2 System Requirements Development

1.2.2 Conceptual Design Development 1.2.2.1 Conceptual Data Design 1.2.2.2 Conceptual Process Design

1.2.3 Architectural Design Development 1.2.3.1 Web Design Methods Evaluation 1.2.3.2 Web Design Method Selection

1.2.4 Resource Procurement 1.2.4.1 Human Resources Procurement 1.2.4.2 Hardware Procurement 1.2.4.3 Software Procurement 1.2.4.4 Telecommunications Procurement

1.3 Construction 1.3.1 Detailed Design Development 1.3.1.1 Data Design 1.3.1.2 Business Logic Design 1.3.1.3 User Interface Design 1.3.1.4 Internal Design Standards Consultation 1.3.1.5 Industry Design Standards Consultation

1.3.2 High-Level Test Plan Development 1.3.3 System ComponentsCode, Unit Test

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1.3.3.1 Database Components 1.3.3.2 Code/Logic Components 1.3.3.3 Web GUI Interface Components

1.3.4 System Installation (Configure)

1.4 Testing 1.4.1 Testing Execution 1.4.1.1 System Test 1.4.1.2 User Acceptance Test 1.4.1.3 Performance Test

1.4.2 Analyze Defects/Correct 1.4.3 Production Readiness Verification

1.5 Deployment 1.5.1 Transition 1.5.1.1 Support Personnel Training 1.5.1.2 Support Procedures Documentation 1.5.1.3 Software 1.5.1.4 Hardware

1.5.2 Legacy System Decommissioning

1.6 Project Management

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Question b
The project scope is the definition of what the project is supposed to accomplish and the budget of both time and money that has been created to achieve these objectives. Best results are achieved when both the definition and the budget are precise and detailed. A good project scope document defines specifically what tasks are to be performed or results delivered. It defines the specific date when these deliverables are due and lists the budget allocated for them. It is not uncommon for the project scope document to also list specific items that are not part of the project scope and thus are excluded from the work to be delivered. For example, a project to build a house might stipulate that obtaining environmental permits is to be done by the owner and is outside the project scope of the contractor building the house. A projects scope and vision define the broad parameters of the project and provide the foundation for all subsequent steps in project or programmed cycle. A clear scope sets the rough boundaries for what the project will attempt to do. For example, in a project with a geographic scope that encompasses a specific protected area, while some actions may be directed outside of the project area, the project scope makes it clear what the team is focusing on and where the final outcomes will be measured. Likewise, defining a vision enables the core project team members to discuss and agree on what the broad purpose of their project will be. Although this should be a relatively easy task in many conservation projects, it becomes particularly important in multi-stakeholder efforts in which the different partners may have radically different ideas of what they would like to accomplish. If some of the stakeholders are interested in conservation and others are primarily interested in using natural resources to promote rapid economic development, then at the very least, the project manager need to negotiate how he/she will work together. Without clear boundaries, there may be considerable confusion among staff and stakeholders as to where the project ends, and there is a risk of being drawn into an ever-widening circle of interventions. A well crafted vision statement grabs and directs the project teams attention, sets their agenda, and energizes their work. This statement becomes the common starting point for discussion about more specific activities and outcomes.
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Project Scope Statement

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Project title Date

: :

Website design for the Colombo school of business. 22 April 2012

Project justification: Mr. Bandujeewa, CEO and Principal of Colombo School of Business, requested this project be done to assist the company in meeting its strategic goals. This new site will increase visibility of the companys expertise to current and potential students and parents though the sections of the courses provided. It will also help improve profitability by attracting more and more students to the school from overseas. Business Objectives:

Aim 1. -To provide popular and highly regarded undergraduate and postgraduate programmes for those in, or aspiring to join, the business and management sector. Objective 1. - To develop new business, management and business computing programmes that are attractive to students, meet recruitment targets, provide the skills and experiences to promote employability, and utilize the region as a special resource. BA degree with work placement and regional residential. MA/MBA. Develop further our expertise in environmental sustainability, leadership, social enterprise and the ethical dimension of business. Aim 2.- To become a key provider of higher education, training and continuing professional development to employers and employees. Objective 2. To meet the education and training needs of regional employers and employees by developing further a portfolio of short courses, foundation degrees and other educational and training provision that is accessible from various locations across the region, flexible in its delivery patterns, and can be accessed separately or in larger award-bearing chunks. To further develop our shell framework of flexible educational business courses at undergraduate and postgraduate level.
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To develop delivery approaches that maximize the reach of these programmes across a large sparsely populated region, making use of the full range of our campuses. To work more closely with regional businesses and representative groups to align our educational offerings with real need.

To develop further our expertise in leadership development to meet recognized generic need in the regions business community. To work separately and with partners such as Impact International to develop a range of high powered CPD courses and events utilizing the special significance. Aim 3. - To become a valued research and consultancy resource. Objective 3. - To further develop our Business School staffs expertise, consultancy and research activity, particularly in reference to the needs and opportunities in our region To build or further develop expertise and consultancy/research reputation in economic development, environmental sustainability in a business context, business ethics, social enterprise, the SME sector and leadership. To promote staffs consultancy and research development To employ our work placement focus at undergraduate level to help develop further relationships with regional businesses. To grow or appoint professors in the business area.

Aim 4. To become a popular and highly regarded provider of business programmes for the international and transnational education market. Objective 4. To further develop our international and transnational educational programmes so as to become a substantial provider of international and transnational business education. Project Objectives: It is the desire of Colombo school of business to provide a fully functioning and interactive website. Furthermore, due to budget constraints within the district, we must not go beyond the approved dollar amount allocated for the construction of the site. Do to the fact that

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circumstances beyond our control can and do occur it is the determination of our team that we will delay the arrival of our site before we go over budget or reduce the sites functionality. Requirements The new web site shall be accessed by popular web browsers, including Microsoft IE, Firefox, Mozilla and Netscape. The new web site shall run on a Linux based server. The web server software, which the new web site uses, shall be Apache. The new web site shall be a secure Internet site. All major credit cards will be accepted by the new web site.

Project Boundaries Out-of-Scope features discussed but not implemented at this time: Users can have additional payment methods besides credit cards, for example, Paypal and Google Checkout. Users can get invoice in a PDF format. Users have the capability to cancel a transaction even after it is done. Users have the capability to remove particular service even after it is booked. Users can ask for refund if booked price is higher than the current price.

Project Acceptance Criteria Delivery of the web site by the end of 2012 The new web site shall provide on-line queries and register online The new web site shall operate 24 hours a day, 7 days a week. Expenditures on the project not exceeding $1400 Reduce web site maintenance cost by 20%. Increase revenue by 25% within three quarters post-launch Increase customer satisfaction by 25% among the existing customer

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Assumptions The website development team must make the following assumptions to execute the site on time, and complete: There will be no change in our budget. There will be no change in campus and or district plans. Our stakeholders will continue to support our efforts through to completion.

Project deliverables Web policy submitted to administration Project definition document completed Project schedule complete Site construction plan complete Preliminary site shown to staff Full launch of site

Project Success Criteria: Our goal is to complete this project within six months for no more than $1400. The project sponsor has emphasized the importance of the project paying for itself within one year after the site is completed. In order to meet this financial goal, the site must be designed with strong user inputs, and we must develop a method for capturing the benefits of the site while it is being developed, tested, and after it is rolled out. If the project takes a little longer to complete or costs a little more than planned, it will still be viewed as a success if it has a good payback and helps promote our companys image as a world-class consulting organization.

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Question c
An organization can have different investment alternatives available, where investment appraisal will be used to determine where the organization should make the investment. There are different methods of investment appraisal available where the organization can use a mix of methods in selecting the investment. Investment appraisal decision making model can be divided into three. Creation phase Decision phase Implementation phase

In the creation phase the organization should determine the objectives of the organization. Thereafter the objectives of the investment should be in line with the organizations objectives. Then the organization should evaluate different investment opportunities that are available at a given period of time and identify the nature of the investment. In the decision phase the organization should consider all the possible outcomes for each investment alternative considered. Then the organization should calculate the return expected and based on those financial and non financial factors the organization should select the project. In the implementation phase the selected investment project is implemented. There are four types of technique of investment appraisal Payback method Internal rate of return Net present value Accounting rate of return

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Discounting cash flow A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one. Calculated as:

If on the basis of above estimate the value of a company or asset is higher than its current cost than it is considered as profitable investment otherwise not. So in simple words it a method which tells an investor who is looking to buy into the stocks of a company whether the value of stock is higher or lower than what it should be and hence investor can take a decision either to buy if the stock is undervalued or sell if it is overvalued according to discounted cash flow method of valuation. However only this method cannot be relied on while taking a decision regarding whether to buy or sell a stock but it certainly forms the base or starting point for any investor to take any future decisions regarding the stock in which he or she is interested in. In carrying out an investment appraisal, discounted cash flow is very important It can be applied for valuing business as a whole and also for valuing individual business components of a company or firm. It is simple to understand and apply and also if needed it can be modified to deal with complex circumstances also. The Discounting Cash Flow method is forward-looking and depends more future expectations rather than historical results. Therefore it considers the money value and due to that the value wont be a false value.

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The DCF method is more inward-looking, relying on the fundamental expectations of the business or asset, and is influenced to a lesser extent by volatile external factors . Considering the above mentioned project of designing a website, the discounting cash flow looks more into the internal factors such as designing, implementation, requirement gathering, etc. The DCF analysis is focused on cash flow generation and is less affected by accounting practices and assumptions. At times in some projects though it shows a accounting profit in the income statement, in actual terms there wont be real cash in hand. Therefore the company wounds up. As that if the investment appraisal doesnt consider the future cash flows, and then it wont be a realistic way. For an example, If it happens so, regarding the above mentioned project then the project manager wont have enough sum of money to even pay the designers. The DCF method allows expected (and different) operating strategies to be factored into the valuation. The DCF analysis also allows different components of a business or synergies to be valued separately. It can be used by both equity shareholders because on the basis of DCF valuation they can compare two companies and take decision whether to invest or not, and also debt holders can use DCF method to take decision regarding the company. Finally, according to the above justification, we can say that the discounting cash flow is very important in the stage of investment appraisal of a project. Net Present Value (NPV) The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project.

NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. Formula:

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There are numerous advantages to using the NPV. It is good for appraising long-term projects because it considers any potential future incoming cash flow. It will also measure the excess of cash flows. Then be able to consider the risks of future cash flow and problems with overall net cash flow. NPV is an indicator of how much value is in a certain investment or project. Therefore considering the above mentioned project, it takes few months to complete. Because of that the calculating the net present value is very important. When the project is started the value of money would be less then the value of money at the end of the project. Therefore bringing down all the values for the present will be the best way of doing investment appraisal. Finally, as that w can say that the discounting cash flow as well as the net present value is very important in carrying out an investment appraisal.

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Task P1.3
PMIS, an acronym for Project Management Information System, is a framework or an initiative which measures the success rate of a project and provides necessary information for monitoring and controlling the project. A project management information system (PMIS) can be a framework to guide the progress of a project and help to increase its success rate. It brings accurate and relevant information to management within the required time frame, and helps to speed up the decision making process and any action necessary to ensure that the project is on track in terms of time, budget and objectives.

Figure VIII PmIS

The PMIS should enable a project team to pinpoint the variances in terms of time, money, and resources and see if they can find the reason why these have occurred. It should enable the team to track the status of each part of the project and assess the work that is completed and the work that remains to be done. When this information is available the project team will be able to reallocate the necessary resources to see that each part of the project contributes to the success of the project. It should be able to help the project leaders to assess the impact on the project from any future risks caused by time and cost overruns, and also to ensure that the quality of the project does not suffer. It should help the team to understand which of the parts of the project require revised guidelines and how these are to be implemented.
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For an effective PMIS, it is necessary that the preliminary estimates and technical specifications are very precise and all encompassing. Cost control and feedback systems have to be always up to date. Project milestones need to be very clearly identified and linked to the resources that are required to reach them. Vendor selection, materials management, human resources have to be individually looked into to ensure that each of these areas fit within the parameters for the project. Document control and its coding and movement is another vital area of PMIS. [7] Considering the above project of designing a web site for a school, will also have a scope, cost, time and quality as constrains. To manage the project effectively all those should be efficiently used and controlled. Therefore the project information management system will be really useful in managing the project effectively. Project management software facilitates communication among project team members regardless of their geographical location. At any time, members can log in to the system to communicate with each other. Team leaders and individual team members can use this software to manage every facet of the project. For example, they can assign tasks to each other, prioritize those tasks, and create personalized "to-do" lists. The tracking feature common to project management software allows project members to track progress, milestones, deadlines and cost. Priorities and resources can be adjusted accordingly throughout the project. Team members are forced to be more accountable for their tasks because their daily progress is tracked by the software and viewable by the group. If one member fails to meet a deadline, another can fill the void. Project management software offers transparency because every action related to the project is recorded in the system. This provides an objective overview of the project from its launch through to completion. By looking at the general advantages of software applications (increased memory, faster processing, virtual rendering, etc.) and taking into consideration that good reporting requires both good data and an effective means of processing and presenting it as relevant information we
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get the obvious conclusion that there are such benefits. If it is easy for employees to see what tasks they must complete, communicate and collaborate with each other then the project manager can spend less time managing these business aspects and spend more time on other things. But to achieve its objectives, project management tools needs to manage the following types of data: Resources Skills, experience and other attributes Working calendars and resources availability

Projects Tasks describing the activities required to produce each key deliverable, which are normally labeled as milestone tasks Assignments work estimates needed to achieve each task, for each resource Cost rates needed to compute the actual costs and the value of work done, to be compared with the budget

Finally, according to the above information we can say that there are many advantages in having a project information management system such as. Easily manage a companys projects Get resources and finances under control Bring projects critical issues to your attention (over allocated resources, critical path) Track project evolution in terms of completion, time and costs what if scenarios capability is offered via multiple undo and redo levels Provide a clean way to break down your project, build schedules, allocate resources and manage budgets All the above can be easily applied to the web site designing project as well.

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Task P1.4
Q a
A project includes the project closure phase that is essential to ensure that the project has been completed, and the resources may be re-assigned, or released if not required for other projects. The project closure phase also signifies that no subsequent funds may be allocated to the project. Project management consists of five process groups, namely initiating, planning, execution, monitoring and control, and closing. The project closure phase consists of the processes that are performed to officially finish and close all the assignments in a project or phase. The concluding action in this group will usually include the approval and transfer of the project deliverables to the user or customer. It is important that all actions that are included in the closing group are performed thoroughly, since only then will a project be considered as closed. The essence of this group is that all the stakeholders agree that the project has met its assigned objectives, and additional charges will not be assigned to the project. Furthermore, the staff and other resources can be assigned to other projects, or relieved if not required. The three activities in the project closure phase are. Acceptance of deliverables Finalize the lessons learned Project report

Acceptance of Deliverables: This is the most important action that is taken during the project closure phase. The project deliverables are reviewed by the customer according to the agreed acceptance criteria, and formally accepted. The acceptance criteria relate to the functional capability of the project deliverables, and are essentially a contract according to which a project is executed. Finalize the Lessons Learned: It is important that lessons learned during the project are formally completed in the project closure phase, before the project team is assigned to other projects, or relieved. In order that the lessons learned are properly documented, a questionnaire may be circulated to the stakeholders for completion. Generally, the questions are aimed to obtain unbiased views, and include the critical success achieved during the project execution,
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and the factors that contributed to the achievements. Similarly, the difficulties encountered, and the actions that could have avoided this situation need to be explained. This information will be an important guide for subsequent projects. Other aspects that may be included in the lessons learned are the technology used, acceptance criteria of the deliverables, monitoring of the project, internal and external communications, involvement of user, and the implementation of the project schedule. Project Report: A project report is completed at the project closure phase that is submitted to the project sponsor. This document essentially includes the project summary, starting from initiation till closure. The significant topics that are included in this report are the project purpose, objectives, plan, schedule, and a comparison of the initial baseline schedule and the actual schedule. Details are provided regarding the changes incorporated, processes tailored, and their effects on the project. Financial aspects are important to be included in this report. This post execution examination is an assessment of the project's effectiveness, and its preparedness for future projects. [8] There are some more activities in the project closure phase. The project documents are prepared at the project initiation, and amended or updated as the project is executed, till the project closure phase. Updating of project documents is essential so as to be useful for future projects. Finally, these documents are archived for future reference. These documents are extremely useful when planning and executing future projects, and act as a useful template. Efforts undertaken during the project in preparing the project plans, and other documents are beneficially utilized for future projects, and thus repetition is avoided. Other important activities that are undertaken during the project closure include the finalization of procurement, open issues, customer training regarding the deliverables, release or reassignment of resources, project team appraisals, vendors performance, final payments to contractors, and administrative closure.

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Qb
Projects are done by businesses. There are mainly two types of businesses. Profit maximizing Not for profit

In both types of organizations there Are many various objectives too. When considering the projects. Always the project has an outcome, and that outcome must be in line with the business objectives. In the closure of the project the project team should check whether the outcome of the project matches the business objectives. For an example, when considering the given project of designing a website for Colombo school of business, the objective of the company is to maximize its profits by enrolling more and more students to the school. Through a school website the company is having the chance of attracting many students and also acquiring overseas students at higher rates. Therefore we can consider that the project outcome is in line with the business objective.

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Task P2.1
The organization is having a functional organizational structure.

CEO HR manager Staff Finanace manager Staff Production manager Staff Marketing manager Staff

IT manager

Staff

Figure IX organizational structure

The functional areas will have personnel with varied skills, but those skills are grouped on their similarities. The people who have identical skills can be grouped easily and they can be placed in separate units and a aforesaid organizational structure is formed. The ultimate controlling authority coordinates with all levels which are commonly called the top management. When an organization handles a solitary product, the aforementioned functional organizational structure is most suited and most frequently used. In such as model, the purchasing function concentrates on purchase activities. Human Resources personnel handle the hiring, training, and firing activities. The accounting department takes care of financial activities. Manufacturing focuses on rolling out the finished product. The sales team takes the role of promoting the finished product in the marketplace. Marketing activities market the product with a long range goal of staying competitive in the market. The organizational structure with functional focus tries to allocate the available people according to their roles, forming what is referred to as a functional department. Each department usually has a department head with the title of department manager, or something similar. At times, these department heads may be given a title of Director, if the board gives their function such a representation. Imagine that a functional organizational structure operates in silos, due to the controlling nature used in such structures. When project management is necessary, each project is performed inside a single departmental unit. In the necessity of drawing information or efforts from other
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departments occurs for project management, it is done by requesting assistance from the other unit. The procedure for getting this cooperation between departments is to route the request through the head of the unit to the other head of the other unit from whom the information is sought. In other situations, the communication flow is restricted inside the functionally silo of the department. The project team is more loyal towards the functional managers. The project manager has no title. It goes as a project coordinator or a project leader.

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Qa
Structure determines the way employees and jobs are arranged to meet its needs and objectives. In a functional structure, employees are departmentalized by task similarity, and projects are performed inside the departmental unit. Accounting, marketing and human resources departments are examples of units grouped together based on the functions they perform.

Project teams within a functional structure benefit from clearly defined reporting relationships. Functional structures are managed through a coherent top-down approach, with employees generally reporting to only one manager. Fewer layers of management means employees are more likely to know what is expected of them, and from whom.

Another main advantage of projects performed inside a single department is that the unit has complete control over the results. Project goals are determined internally, not by an external project owner, and thus are better suited to meet departmental need. Additionally, an atmosphere driven by self-government fosters a supportive environment in which growth and skill development thrive.

Under the functional structure, project decision making is swift and authoritative. Although conflicts may still arise, similar backgrounds and perspectives generally facilitate quicker turnaround times and less wasteful deliberation.

As with quick decision making, clustering people together according to professional similarities also fosters communication and knowledge sharing between co-workers. Instead of reliance on costly seminars and workshops, more experienced project team members serve as mentors to colleagues with less experience. Effective application of this knowledge results in a stronger, more productive project team.

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Functional structures create a clear career ladder for project members to follow. Project managers within a functional structure are usually experts within their particular unit who have been promoted to that role due to high performance. These leaders possess a superior skill level that helps make their job easier and makes them better equipped to monitor the individual performance of their team members to distribute recognition, rewards and punishments accordingly.

There are several disadvantages to this type of structure. First, no one has overall responsibility for a given project. Each has his own piece of the pie. Second, many employees within a group are not gainfully employed all the time. Often they are challenged with attempting to find ways to fill up their work day. Third, customers become frustrated when trying to understand the status of their product. Each functional manager may know a specific aspect of the products development but none have a full knowledge of product development. This type of organization structure is very weak in product development integration. Therefore as mentioned above, there are advantages as well as disadvantages of having a functional organizational structure.

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Qb
Many corporations today have moved toward the matrix form of organization structure. This structure has been found to alleviate many of the deficiencies with the functional form. As seen in the figure below, lines of authority flow both vertically and horizontally. Hence, the term matrix.

Figure X matrix organizational structure

While employees still report administratively to their functional managers, they are assigned to project managers for the duration of their need. Once their support to a project is completed they return to their functional group ready to be assigned to another project. Project managers extract employees from the functional organizations as needed. In many cases employees are assigned to multiple projects. This creates the problem of spreading an employee over too many projects resulting in lost time as they transition physically or mentally between projects. As the number of projects supported increases so does the lost time due to transitioning. An employee assigned to four projects is not available for 25% of their time to each one as might be expected. The available time is actually closer to 19%.3 the lost time, 6% is due to transitioning.
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The tendency to spread employees over too many projects is precipitated by functional managers who are required to keep their assigned budgets to a minimum. In order to accomplish this they must assign their employees to projects which have their own budgets. These same pressures on functional managers cause them to hire fewer people than needed to prevent unassigned personnel from charging against their budgets. A matrix environment is classified as weak, strong, or balanced, depending on the amount of authority the project managers have over their teams: Weak matrix: Project team members receive most of their direction from their functional managers. Project managers have little, if any, direct authority over team members and actually function more like project coordinators than managers. Strong matrix: Companies with strong matrix structures choose project managers for new projects from a pool of people whose only job is to manage projects. The companies never ask these people to serve as team members. Often these project managers form a single organizational unit that reports to a manager of project managers. In addition to directing and guiding project work, these project managers have certain administrative authority over the team members, such as the right to participate in their performance appraisals. Balanced matrix: This type of matrix environment is a blend of the weak and strong environments. People are assigned to lead projects or serve as team members based on the projects needs rather than on their job descriptions. Although the project manager may have some administrative authority over team members, for the most part, the project manager guides, coordinates, and facilitates the project. A matrix environment offers the following benefits: Teams can assemble rapidly: Because you have a larger resource pool from which to choose your project team, you dont have to wait for a few people to finish current assignments before they can start on your project. Specialized expertise can be available for several different projects: Projects often require a small amount of effort from a person with highly specialized knowledge or skills.

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Getting buy in from team members functional units is easier with the matrix structure than with the functional or projectized structures: Unit members who work on a project or who are affected by its outcome are more likely to support the project if theyre confident that the team hears their concerns and issues.

A matrix environment introduces the following challenges, which the project manager must successfully address: Team members working on multiple projects respond to two or more managers. Each team member has at least two people giving her direction a project manager and a functional manager. When these two managers are at similar levels in the organization, resolving conflicting demands for the team members time can be difficult. Team members may not be familiar with one anothers styles and knowledge: Team members may require some time to become comfortable with one anothers work styles and behaviors. Team members may focus more on their individual assignments and less on the project and its goals: For example, a procurement specialist may be responsible for buying equipment and supplies for all her projects. In such a case, the specialist may be less concerned about a projects target date for the purchases and more concerned about correctly following her departments procurement procedures. [9]

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Qc
Projects of different sizes have different needs for how the people are organized. In a small project, little organization structure is needed. There might be a primary sponsor, project manager and a project team. However, for large projects, there are more and more people involved, and it is important that people understand what they are expected to do, and what role people are expected to fill. This section identifies some of the common (and not so common) project roles that may be required for your project. Analysts The Analyst is responsible for ensuring that the requirements of the business clients are captured and documented correctly before a solution is developed and implemented. In some companies, this person might be called a Business Analyst, Business Systems Analyst, Systems Analyst or Requirements Analyst. Change Control Board The Change Control Board is usually made up of a group of decision makers authorized to accept changes to the projects requirements, budget, and timelines. This organization would be helpful if the project directly impacted a number of functional areas and the sponsor wanted to share the scope change authority with this broader group. The details of the Change Control Board and the processes they follow are defined in the project management processes. Client This is the people (or groups) that are the direct beneficiaries of a project or service. They are the people for whom the project is being undertaken. (Indirect beneficiaries are probably stakeholders.) These might also be called "customers" Client Project Manager If the project is large enough, the business client may have a primary contact that is designated as a comparable project manager for work on the client side. The IT project manager would have overall responsibility for the IT solution. However, there may be projects on the client side that are also needed to support the initiative, and the client project manager would be responsible for
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those. The IT project manager and the client project manager would be peers who work together to build and implement the complete solution. Database Administrator A Database Administrator is a specialist that models, designs and creates the databases and tables used by a software solution. This role combines Data Administrator (logical) and DBA (physical). Considering the selected project, he is the person who is in charge of creating the database of students. Designer The designer is responsible for understanding the business requirements and designing a solution that will meet the business needs. There are many potential solutions that will meet the client's needs. The designer determines the best approach. A designer typically needs to understand how technology can be used to create this optimum solution for the client. The designer determines the overall model and framework for the solution, down to the level of designing screens, reports, programs and other components. They also determine the data needs. The work of the designer is then handed off to the programmers and other people who will construct the solution based on the design specifications. Developer The Developer is responsible for the actual building of the solution. Project Manager This is the person with authority to manage a project. This includes leading the planning and the development of all project deliverables. The project manager is responsible for managing the budget and schedule and all project management procedures (scope management, issues management, risk management, etc.).

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Project Team The project team consists of the full-time and part-time resources assigned to work on the deliverables of the project. This includes the analysts, designers, programmers, etc. They are responsible for: Understanding the work to be completed Planning the assigned activities in more detail if needed Completing assigned work within the budget, timeline and quality expectations Informing the project manager of issues, scope changes, risk and quality concerns Proactively communicating status and managing expectations

The project team can consist of staff within one functional organization, or it can consist of members from many different functional organizations. A cross-functional team has members from multiple organizations. Having a cross-functional team is usually a sign that your organization is utilizing matrix management. Quality Manager On a large project, quality management could take up a large amount of project management time. In this case, it could be worthwhile to appoint someone as quality manager. Sponsor (Executive Sponsor and Project Sponsor) This is the person who has ultimate authority over the project. The Executive Sponsor provides project funding, resolves issues and scope changes, approves major deliverables and provides high-level direction. They also champion the project within their organization. Depending on the project and the organizational level of the Executive Sponsor, they may delegate day-to-day tactical management to a Project Sponsor. If assigned, the Project Sponsor represents the Executive Sponsor on a day-to-day basis and makes most of the decisions requiring sponsor approval. If the decision is large enough, the Project Sponsor will take it to the Executive Sponsor for resolution.

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Stakeholder These are the specific people or groups who have a stake, or an interest, in the outcome of the project. Normally stakeholders are from within the company, and could include internal clients, management, employees, administrators, etc. A project may also have external stakeholders, including suppliers, investors, community groups and government organizations. Steering Committee A Steering Committee is a group of high-level stakeholders who are responsible for providing guidance on overall strategic direction. They do not take the place of a Sponsor, but help to spread the strategic input and buy-in to a larger portion of the organization. The Steering Committee is usually made up of organizational peers and is a combination of direct clients and indirect stakeholders. Some members on the Steering Committee may also sit on the Change Control Board. Subject Matter Expert A Subject Matter Expert (SME) has superior (expert) knowledge of a discipline, technology, product, business process or entire business area. Suppliers / Vendors Suppliers and vendors are third party companies or specific people that work for third parties. They may be subcontractors who are working under direction, or they may be supplying material, equipment, hardware, software or supplies to the project. Tester The Tester ensures that the solution meets the business requirements and that it is free of errors and defects. Users These are the people who will actually use the deliverables of the project. These people may also be involved heavily in the project in activities such as defining business requirements. In other cases, they may not get involved until the testing process. Sometimes you want to
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specifically identify the user organization or the specific users of the solution and assign a formal set of responsibilities to them, like developing use cases or user scenarios based on the needs of the business requirements. Considering the selected project the employees of the school will be the users.

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Task P2.2
Qa
Measuring progress is generally known as monitoring and evaluation (M&E). The two terms are almost always mentioned together - but in fact, talking about two different activities. Monitoring and evaluation always serve different purposes and should be carried out by different people. So keep a clear distinction between the two. Its happened to nearly every project manager sometime in their career. Theyre given the requirement to provide detailed performance reporting on a project and end up spending most of their time entering hours worked into work packages in Microsoft Project and estimating percent complete on these packages on a daily basis. Whether the requirement for that level of reporting was real or perceived, the project manager finds that hes unable to manage the day to day activities of his project because hes too busy trying to measure the projects performance. When a successful company invests time, money, and other resources in a project, its primary concern is always what it is getting in return for its investment. It is the responsibility of the project manager to ensure these projects stay on schedule and within their approved budget. Performance measurement provides the project manager with visibility to make sure he is operating within the approved time and cost constraints and that the project is performing according to plan. It also alerts management if a project begins to run over budget or behind schedule so actions can quickly be taken to get the project back on track. Project Management Office (PMO) managers responsibility to ensure that project performance is being captured and reported. It is also his responsibility to ensure that the level of reporting is achievable and doesnt unnecessarily overburden or distract the project managers. Your PMO should define the size of the work packages in the work breakdown structure (WBS). There are two typical standards; 4 to 40 hours and 8 to 80 hours. It should decide which size best fits the organization based on typical project size and level of management detail. .Measuring project performance is an important part of project and program management. It allows the PMO and project manager to identify cost and schedule problems early and take steps for remediation quickly. It starts with setting the standards for the size of work packages,
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applying credit for work performed, and which earned value metrics to track, which should be included in the projects Cost Management Plan. Measuring project performance provides the organization with a clear picture of the health of its projects and can instill confidence in the project teams. Additionally, these performance measures can help the PMO establish continuous improvement initiatives in areas where projects commonly perform at lower levels. The usefulness of measuring project performance is evident and as long as organizations do not become overwhelmed with them, these measures will remain important contributors to organizational success.

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Q b
Management just needs a quick view of the projects performance. Project performance is measured by comparing the project execution to the performance measurement baseline, which is an approved integrated plan for scope, schedule, and cost for the project, as explained here Cost baseline - This is the planned budget for the project over a time period, used as a basis against which to measure, monitor, and control the cost performance of the project. The cost performance is measured by comparing the actual cost to the planned cost over a time period. Schedule baseline - This is a specific version of the project schedule developed from the schedule network analysis and the schedule model data. This is the approved version of the schedule with a start date and an end date, and it is used as a basis against which the project schedule performance is measured. Scope baseline - This is the approved project scope that includes the approved project scope statement, the WBS based on the approved project scope statement, and the corresponding WBS dictionary.

For most projects track the Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI) Cost Performance Index (CPI).

These four values provide a reliable measurement of the projects performance. Schedule Variance (SV): If SV is zero, then the project is perfectly on schedule. If SV is greater than zero, the project is earning more value than planned thus its ahead of schedule. If SV is less than zero, the project is earning less value than planned thus its behind schedule.

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Cost Variance (CV): If CV is zero, then the project is perfectly on budget. If CV is greater than zero, the project is earning more value than planned thus its under budget. If CV is less than zero, the project is earning less value than planned thus its over budget. Schedule Performance Index (SPI): If SPI is one, then the project is perfectly on schedule. If SPI is less than 1 then the project is behind schedule. If SPI is greater than one then the project is ahead of schedule. A well performing project should have its SPI as close to one as possible. Cost Performance Index (CPI): If CPI is one, then the project is perfectly on budget. If CPI is less than 1 then the project is over budget. If CPI is greater than one then the project is under budget. A well performing project should have its SPI as close to one as possible. As that there are many methodologies which the project can be evaluated by measuring the progress. Mainly measuring the performance and the variances of the triple constrains is the main way of measuring the performance.

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Qc
WBS stands for Work Breakdown Structure. It is something that helps breakdown the whole projects scope into smaller and more manageable pieces. This is also a very important process in project management. To be able to actually execute the project, the project scope is broken down into manageable tasks by creating a work breakdown structure (WBS). In other words, a WBS is a deliverable-oriented hierarchy of the work that must be performed to accomplish the objectives of and create the deliverables for the project. Just like other documents related to project planning & management, the WBS is created using a set of inputs, by applying a set of tools & techniques to create the WBS. The picture below is a high level summary of how the WBS is created.

Figure XI creation of WBS

The project scope statement contains the list of deliverables and the product description. The requirements documentation describes the product and project requirements. Information in these two items provides the basis for creating the WBS. You should always consider organizational process assets while going through this and several other processes. In this case, the organizational policies and procedure related to creating the WBS, as well as relevant project files and lessons learned from previous projects, are some examples of organizational process assets that can be helpful. Furthermore, even though each project is unique, there are similarities among sets of projects in an organization. These similarities can be used to prepare templates that will be used as a starting

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point for the WBS, to avoid the duplication of work. With or without templates, you will need to go through breaking down the deliverables, a very important step in creating the WBS. [10] As the work break down structure describes all the tasks which have to be completed in order to complete the project. As part of managing the project, there are many processes that are directly based on the WBS as part of the Scope Baseline. They are:

1. Cost Estimation 2. Quality Planning 3. Risk Identification 4. Procurement Planning 5. Defining Activities for Project Schedule 6. Budget Determination

Figure XII Processes based on WBS

Therefore by preparing a work break down structure, the project team will know tasks should be done each day, and the project team will be clearly indentified the milestones and the days they

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should be achieved. As it is mentioned clearly, the project manager can compare with variances and measure the performance easily. And also according to the work break down structure the project team can plan the risks they are going to face and then they will be able to take necessary actions accordingly. As risk management is an essential function in a project, itll be easy to the risk manager to identify risks and to be prepared for them. The work break down structure mainly states the scope of the project. The budgets such as production, material usage, material purchases etc are prepared according to the scope, the work break down structure helps the budget committee as well. As the budgets are the main documents which is needed when measuring performance, at last we can say that the it acts a igger role is measuring performance. Finally we can state that, WBS helps the project in developing project monitoring and controlling systems.

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Task P2.3
Qa
They are organized, passionate and goal-oriented who understand what projects have in common, and their strategic role in how organizations succeed, learn and change. Project managers are change agents: they make project goals their own and use their skills and expertise to inspire a sense of shared purpose within the project team. They enjoy the organized adrenaline of new challenges and the responsibility of driving business results. They work well under pressure and are comfortable with change and complexity in dynamic environments. They can shift readily between the "big picture" and the small-but-crucial details, knowing when to concentrate on each. Project managers cultivate the people skills needed to develop trust and communication among all of a project's stakeholders: its sponsors, those who will make use of the project's results, those who command the resources needed, and the project team members. They have a broad and flexible toolkit of techniques, resolving complex, interdependent activities into tasks and sub-tasks that are documented, monitored and controlled. They adapt their approach to the context and constraints of each project, knowing that no "one size" can fit all the variety of projects. And they are always improving their own and their teams' skills through lessons-learned reviews at project completion. Project managers are found in every kind of organization -- as employees, managers, contractors and independent consultants. With experience, they may become program managers (responsible for multiple related projects) or portfolio managers (responsible for selection, prioritization and alignment of projects and programs with an organization's strategy). And they are in increasing demand worldwide. For decades, as the pace of economic and technological change has quickened, organizations have been directing more and more of their energy into projects rather than routine operations.

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Today, senior executives and HR managers recognize project management as a strategic competence that is indispensable to business success. They know that skilled and credentialed practitioners are among their most valuable resources. There are many skills which a project manager should be having, Inspires a Shared Vision

An effective project leader is often described as having a vision of where to go and the ability to articulate it. Visionaries thrive on change and being able to draw new boundaries. It was once said that a leader is someone who "lifts us up, gives us a reason for being and gives the vision and spirit to change." Visionary leaders enable people to feel they have a real stake in the project. Good Communicator

The ability to communicate with people at all levels is almost always named as the second most important skill by project managers and team members. Project leadership calls for clear communication about goals, responsibility, performance, expectations and feedback. There is a great deal of value placed on openness and directness. The project leader is also the team's link to the larger organization. The leader must have the ability to effectively negotiate and use persuasion when necessary to ensure the success of the team and project. Through effective communication, project leaders support individual and team achievements by creating explicit guidelines for accomplishing results and for the career advancement of team members. Integrity

One of the most important things a project leader must remember is that his or her actions, and not words, set the modus operandi for the team. Good leadership demands commitment to, and demonstration of, ethical practices. Creating standards for ethical behavior for oneself and living by these standards, as well as rewarding those who exemplify these practices, are responsibilities of project leaders. Leadership motivated by self-interest does not serve the well being of the team. Leadership based on integrity represents nothing less than a set of values others share, behavior consistent with values and dedication to honesty with self and team members. In other words the leader "walks the talk" and in the process earns trust.
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Enthusiasm

Plain and simple, we don't like leaders who are negative - they bring us down. We want leaders with enthusiasm, with a bounce in their step, with a can-do attitude. We want to believe that we are part of an invigorating journey - we want to feel alive. We tend to follow people with a cando attitude, not those who give us 200 reasons why something can't be done. Enthusiastic leaders are committed to their goals and express this commitment through optimism. Leadership emerges as someone expresses such confident commitment to a project that others want to share his or her optimistic expectations. Enthusiasm is contagious and effective leaders know it. Empathy

What is the difference between empathy and sympathy? Although the words are similar, they are, in fact, mutually exclusive. Empathy, on the other hand, presupposes the existence of the object as a separate individual, entitled to his or her own feelings, ideas and emotional history (Paul, 1970). As one student so eloquently put it, "It's nice when a project leader acknowledges that we all have a life outside of work." Competence

Simply put, to enlist in another's cause, we must believe that that person knows what he or she is doing. Leadership competence does not however necessarily refer to the project leader's technical abilities in the core technology of the business. As project management continues to be recognized as a field in and of itself, project leaders will be chosen based on their ability to successfully lead others rather than on technical expertise, as in the past. Having a winning track record is the surest way to be considered competent. Expertise in leadership skills is another dimension in competence. The ability to challenge, inspire, enable, model and encourage must be demonstrated if leaders are to be seen as capable and competent. Ability to Delegate Tasks

Trust is an essential element in the relationship of a project leader and his or her team. You demonstrate your trust in others through your actions - how much you check and control their work, how much you delegate and how much you allow people to participate. Individuals who

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are unable to trust other people often fail as leaders and forever remain little more that micromanagers, or end up doing all of the work themselves. Cool Under Pressure

In a perfect world, projects would be delivered on time, under budget and with no major problems or obstacles to overcome. But we don't live in a perfect world - projects have problems. A leader with a hardy attitude will take these problems in stride. When leaders encounter a stressful event, they consider it interesting, they feel they can influence the outcome and they see it as an opportunity. Team-Building Skills

A team builder can best be defined as a strong person who provides the substance that holds the team together in common purpose toward the right objective. In order for a team to progress from a group of strangers to a single cohesive unit, the leader must understand the process and dynamics required for this transformation. He or she must also know the appropriate leadership style to use during each stage of team development. The leader must also have an understanding of the different team players styles and how to capitalize on each at the proper time, for the problem at hand. [11]

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Qb
work team is a common arrangement within today's business organizations, managers need to understand group behavior and team concepts. Team building requires a manager to follow a systematic planning and implementation process to assess whether his or her team can improve the organization's goal attainment; remove barriers to team building; and build an effective team through training, empowerment, and feedback. Managers must also decide on team size and member roles to gain the maximum contribution from all members. Generally, when organizations form teams, these organizations have specific projects or goals in mind. A team is simply a tool that accomplishes a project or goal. But no matter what the reason teams are formed, they go through four stages, according to a 1965 research paper by Bruce Tuckman of the Naval Medical Research Institute at Bethesda. The following sections describe Tuckman's four stages.

Figure XIII Team development stages

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Stage 1: Forming During the forming stage, team members not only get to know each other but also familiarize themselves with their task and with other individuals interested in the project, such as supervisors. At the end of the forming stage, team members should know the following: The project's overall mission The main phases of the mission The resources at their disposal A rough project schedule Each member's project responsibilities A basic set of team rules

Stage 2: Storming Storming is characterized by competition and conflict within the team as members learn to bend and mold their feelings, ideas, attitudes, and beliefs to suit the team organization. Although conflicts may or may not surface as group issues, they do exist. Questions about who is responsible for what, what the rules are, what the reward system is, and what the evaluation criteria are arise. These questions reflect conflicts over leadership, structure, power, and authority. Because of the discomfort generated during this stage, some members may remain completely silent, while others attempt to dominate. Members have an increased desire for structural clarification and commitment. In order to progress to the next stage, team members must move from a testing-and-proving mentality to a problem-solving mentality. Listening is the most helpful action team members and the team leader can take to resolve these issues. Stage 3: Norming In Tuckman's norming stage, team relations are characterized by cohesion. Team members actively acknowledge all members' contributions, build community, maintain team focus and mission, and work to solve team issues. Members are willing to change their preconceived ideas or opinions on the basis of facts presented by other members, and they actively ask questions of one another. Leadership is shared, and cliques dissolve. As members begin to know and identify
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with one another, the trust that individuals place in their colleagues fosters cohesion within the team. During this stage of development, team members begin to experience a sense of group belonging and a feeling of relief as a result of resolving interpersonal conflicts. Stage 3 is characterized by the flow of data between team members: They share feelings and ideas, solicit and give feedback to one another, and explore actions related to the task. Creativity is high. If this stage of data flow and cohesion is attained by the group members, their interactions are characterized by openness and sharing of information on both a personal and task level. They feel good about being part of an effective group. The major drawback of the norming stage is that members may begin to fear the inevitable future breakup of the group; they may resist change of any sort.

Stage 4: Performing The performing stage is not reached by all teams. Those teams that do reach this stage not only enjoy team members who work independently but also support those who can come back together and work interdependently to solve problems. A team is at its most productive during this stage. Team members are both highly task-oriented and highly people-oriented during this stage. The team is unified: Team identity is complete, team morale is high, and team loyalty is intense. The task function becomes genuine problem solving, leading to optimal solutions and optimum team development. There is support for experimentation in solving problems, and an emphasis on achievement. The overall goal is productivity through problem solving and work. Adjourning Teams assembled for specific project or for a finite length of time go through a fifth stage, called adjourning , when the team breaks up. A planned conclusion usually includes recognition for participation and achievement and an opportunity for members to say personal goodbyes. Disbanding a team can create some apprehension, and not all team members handle this well.
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The termination of the team is a regressive movement from giving up control to the team to giving up inclusion in the team. This last stage focuses on wrapping up activities rather than on task performance.

Belbin team roles are behavioral tools that provide an understanding of team member traits. Its application in project management allows a cluster of project activities with team members behaviorally suited to handle such activities, and helps in the formation of balanced teams. The nine roles described by in the Belbin team role theory group is divided into three major categories: Action-oriented roles people-oriented roles thought-oriented roles

Action Oriented Roles Shaper The shaper describes an energetic and highly motivated task-focused leader who displays drive and courage to handle pressure and overcome challenges and obstacles. He inspires others to the accomplishment of tasks through his or her dynamism. The Shaper is prone to provocation, and displays aggression, which may offend others feelings. Project teams would do well to have a shaper, but the presence of more than one shaper could mean face offs between them, leading to in-fighting. Implementer Implementers are disciplined, reliable, and conscientious individuals who work relentlessly to fulfill team obligations, or to implement ideas. They derive strength from their tough-minded and practical attitude. Implementers remain inflexible and conservative and slow to respond to new possibilities. Any project team nevertheless requires implementers to turn ideas or aims into practical action.
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Completer or Finisher The Completer or Finisher brings conscientiousness into the team. Like Implementers, they consistently focus on fulfilling tasks, and paying attention to detail, focused on doing a thorough job in a time bound manner. Much like implementers, Completers or Finishers play a critical role in project execution. Finishers tend to remain anxious and worry unduly, however. People Oriented Roles Coordinator Coordinators are matured and confident chairpersons who clarify goals, promote decisionmaking, and delegate tasks to other team members. The coordinator thrives through his or her confidence and ability to sympathize with others but still reject their demands, and elicit work out of such persons at the same time. Such traits, while allowing them to perform, usually gives them a tag of a manipulator who offloads personal work. The project team leader or project manager is usually the Coordinator. Team Worker Team Workers are cooperative, mild, perceptive, and diplomatic individuals who enable difficult characters within the team to use their skills to positive ends, promote cooperation among team members, and intervene to avert potential friction. Team Workers thrive because of their superior listening skills, ability to remain social with awkward people, and remain sensitive to other's concerns. They work through their diplomatic skills and sense of humor. The major shortcomings of Team Builders are their indecisive moments in a crisis and reluctance to do things that might hurt others. Such people play a major role in resolving day-to-day conflicts and ensuring smooth progress of work to meet project deliverables. Resource Investigator Resource Investigators are extroverts and communicative team members who explore opportunities and develop contacts. They seek out information and support and develop ideas that work. They thrive through their negotiation skills, social skills, and enthusiasm.

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Resource Investigators are good initiators but lose their enthusiasm once the actual work starts. They also tend to be over optimistic. Thought Oriented Roles

Plant The Plant solves complex problems through a creative, imaginative, and unorthodox approach. They take a radical approach to macro level team functioning and problems, without bothering about the incidentals. They tend to disregard practical realities, and remain preoccupied with their tasks to communicate effectively. Plants nevertheless play a key role in complex and uncertain projects and are considered to be essential when looking at Belbin team roles. Monitor or Evaluator Monitors or Evaluators are sober, discerning, judicious, prudent, and intelligent people with low achievement orientation. They bring forth blunt and objective judgment of the situation after considering all perspectives. Their ability to see the full picture and evaluate complete proposals makes them invaluable during times of crucial decision-making. Monitors or Evaluators remain slow in decision-making owing to their tendency to consider things repeatedly. While making discerning judgments, they lack the ability to inspire others. Specialist The Specialist role is a later addition to the original Belbin team roles. Specialists are dedicated, committed, single-minded, and self-starting individuals who provide the team with special or focused knowledge and skills in rare supply. Specialists tend to dwell on the technicalities, and contribute only to a narrow area. They have their relevance in highly focused projects that require technical expertise.

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The Belbin team roles describe the primary role of a team member, and back the concept with an inventory that allows evaluation of a team members dominant trait. Such awareness allows a company to deploy the right person for the right project, and for individual team members to work with their strengths and manage their weakness. The Belbin team model also allows project teams to identify gaps and overlaps in roles, and make necessary changes. The hallmark of a successful team is balance. An ideal team generally has a Coordinator or a Shaper but not both, a Plant to stimulate ideas, a Monitor/Evaluator to maintain honesty and clarity, and one or more Implementer, Team Worker, Resource Investigator and/or Completer to drive work. [12]

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Task P2.4
Qa
In todays businesses, the right approach and management of the companys employees can greatly affect the companys overall performance. A strategic approach in Human Resource Management is vital especially in growing companies. Starting from right staffing to maintaining performing employees, HR management is key in developing not only the employees, but the whole organization itself. Human Resources encompasses a broad scope in management. An expanding company dependent on its current success can maintain and further develop its business starting with the right staffing. As demands for the product or services increase, additional manpower is needed to comply with them. The current manpower should be checked but not simply if they can comply with the demands, but it has to ensure that it can still keep its quality and standards. Mass production or bulk orders should not be an excuse in decreasing quality, hence, increased customer dissatisfaction and decreased sales. For a company that is already recognized in the industry and is eyeing on expansion, their status and reliability should be maintained. The leaders of the company can now focus on the products itself and expansion, and let the HR Department handle the development of the organization. Keeping an eye on the companys long-term goals, mission and vision, the development of performance standards is essential to identify potential problems, non-performing employees and compliance to tasks and standards. Minor employee and performance problems should be seen immediately to avoid any future inconvenience and potential problems to the customers and thus become a liability to the company. HRM professionals can also identify the processes and the proper staffing for each of these activities, and in effect, the systems and approach in terms of the companys front line operations can be improved to decrease manpower hours, improve quality, streamline processes, and elevate standards. Project human resource management involves organizing and managing a project team. The team is usually made up of people with specific skills and responsibilities. The project team, also known as project staff, should be involved in plans and decision making from the beginning of
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the project. Team members should feel invested in the outcome of the project. This will increase loyalty and commitment to project goals and objectives. The number of team members and their responsibilities can change as the project develops.

The project management team, also called the core, executive, or leadership team, is responsible for project planning, controlling, and closing and takes directives from the project team. Smaller project responsibilities can be shared by the team or designated by the project manager. The project management team and the project sponsor work together to secure funding, simplify scope questions, and influencing team members.

Project human resource management processes include human resource planning, acquiring the project team, developing the project team and managing the team. Processes are used multiple times, usually occurring at least once in a project or several times in different phases if the project is made up of many phases. In reality, processes intersect with each other and with other phases and are not as definite and concrete as illustrated here.

Project human resource management planning may be required if more experienced members are added to the team. The project management team should also prepare for risk management and changes to project.

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Qb
As mentioned above in the task p2.4 question (a), managing human resources is an important activity in a project. The key areas in managing projects will be as follows. Organizational planning Staff acquisition Team development

ORGANIZATIONAL PLANNING Developing the staffing management plan is perhaps the most challenging phase for human Resource project managers, especially in extremely large projects. Techniques most effective in human resource planning are networking activities such as Attending trade conferences, having informal conferences or lunch meetings, where project Managers can learn about staffing Appling

management options, especially when challenged with Unfamiliar projects.

organizational theories to human resource management plans Helps project managers by using proven theories to make their plans more effective. Templates derived from previous projects help keep focus on deliverables and compile organizational charts, position descriptions, and performance appraisals. Checklists help verify competencies, roles and responsibilities, safety considerations and compliance with government regulations, policies and contracts. Hierarchical Charts and Responsibility Assignment Matrixes (RAM) are useful for depicting positions, responsibilities or work breakdown structures and levels of authority. RACI charts depict responsibility, accountability, consultation, and identify whom to contact on each task. Resource Breakdown Structures (RBS), provide a breakdown of the types of resources required for a project. Microsoft Project is an exceptional software tool that used in human resource scheduling, including resource loading and leveling. Resource loading is the amount of
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individual resources an existing schedule requires during specific periods, and resource leveling is a technique for resolving resource conflicts by delaying tasks. Microsoft Project takes in all the employees data, along with assigned tasks, financial information as well as development timelines and deadlines for project completions and produces a visual representation of workloads. Ease of producing Gantt charts, histograms and timelines make the identification of resource shortages seamless for a project manager. Balancing the workload is one of the challenging tasks a project manager must perform. Project managers need to be careful when using Microsoft Project as the automatic leveling tool can push deadlines or reallocate resources, so the program should best be used by someone with Great knowledgeable of the program.

Figure XIV creation of HR plan

ACQUIRING One of the first tasks a project manager needs to take on is to acquire a team, making the task of retaining team members a priority. This challenge is often resolved by working in collaboration with various departments in order to find appropriate individuals with the right skill sets for the project. Staffing plans should be created so that mangers have a record of each employees skills and training, as reference, when looking for team members. Incentives can works as a tool in attaining and retaining valuable employees, such as IT professionals. An example of such incentives can be the ability to work from home; this is often the case when geographically distributed professionals would best suit the project. Another frequent challenge when acquiring

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resources is the need to consider individual schedules to work around or eliminate scheduling conflicts such as vacation schedules. DEVELOPING The development of the project team is the next challenge a human resource manager must address. A project team is not simply a group of individual professionals possessing expertise that best meet the needs of the project, but they must also be able to work well together to secure the projects success. During the life cycle of a project, a manager would apply a variety of techniques such as training, team-building activities, reward and recognition systems,

development of ground-rules, and co-location, bringing the team together either in person or by means of remote conferencing technology. [13] Therefore, Considering the web site designing project, In order to avoid confusion, first I understood the logical relationships among the project, activity resource requirements, roles, and responsibilities as follows

Figure XV assigning responsibilities for the HR

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Then by preparing a responsibility assignment matrix (RAM) the project manager is able to map the work of the projects as described in the work break down structure, to the people responsible for performing the work as described in the organizational break down structure.

Figure XVI RAM

Then preparing the human resource histogram is the main stage. A resource Histogram is a column chart that shows the number of resources required for or assigned to a project over time. In planning projects, project managers usually often create such histograms to know the number of people required for each period or skill category. The resource histogram is a tool that is often used by the project management team and or as a means of providing a visual representation to the team and to all of those interested parties. Specifically speaking, the resource histogram is specifically a bar chart that is used for the purposes of displaying the specific amounts of time that a particular resource is scheduled to be worked on over a predetermined and specific time period. Resource histograms may also contain the comparative feature of resource availability, used for comparison on for purposes of contrast. Resource histograms are indeed handy tools to utilize for
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the project management team and or the project management team leader because they allow a quick and easy single page view of exactly what resources are available, what resources are being utilized at the present time and how long those resources are expected to be tied up. [14] Therefore by using a resource histogram and a resource assignment matrix I planned to optimize the human resource requirement for the selected project.

Task P3.1
Q a
Project scheduling is concerned with the techniques that can be employed to manage the activities that need to be undertaken during the development of a project. Scheduling is carried out in advance of the project commencing and involves:
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identifying the tasks that need to be carried out; estimating how long they will take; allocating resources (mainly personnel); scheduling when the tasks will occur.

Once the project is underway control needs to be exerted to ensure that the plan continues to represent the best prediction of what will occur in the future: based on what occurs during the development; often necessitates revision of the plan.

Effective project planning will help to ensure that the systems are delivered: within cost; within the time constraint; to a specific standard of quality.

Two project scheduling techniques will be presented, the Milestone Chart (or Gantt Chart) and the Activity Network. Complex project, like the above example, require a series of activities, some of which must Be performed sequentially and others that can be performed in parallel with other activities. This collection of series and parallel tasks can be modeled as a network. CPM models the activities and events of a project as a network. Activities are shown as Nodes on the network and events that signify the beginning or ending of activities are shown as arcs or lines between the nodes.

4d 1 4d ( 13 d
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Qb
A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project. Gantt charts may be simple versions created on graph paper or more complex automated versions created using project management applications such as Microsoft Project or Excel. A Gantt chart is constructed with a horizontal axis representing the total time span of the project, broken down into increments (for example, days, weeks, or months) and a vertical axis representing the tasks that make up the project Horizontal bars of varying lengths represent the sequences, timing, and time span for each task. The following figures are from the Gantt chart which is created by the data of the selected web designing and development project. For the creation, the Microsoft Project 2007 is used.

Figure XVII Gantt chart 1

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Figure XVIII Gantt chart 2

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Task P3.2
In a project the cost is as a S shaped curve. This is because the project spending starts slowly and gradually increases over the projects life until it reaches a peak. Then tapers off again, as the project wraps up.

Figure XIX cost schedule

Controlling cost means monitoring and controlling updates and changes to costs, budget, and the cost baseline of the project. Monitoring and controlling costs has two dimensions to it: expenditure of project funds and the work performed as a result of those expenditures. One major aspect of cost monitoring and controlling is to determine the relationship between the expenditures and the accomplishments. The cost performance depends on this relationship. The other main aspect is to control the changes to the approved cost performance baseline. Cost is monitored and controlled by using the Control Cost process illustrated by the picture below:

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Figure XX cost control process

The input items to this process are the project management plan, work performance information, project funding requirements, and organizational process assets. The items in the project management plan useful for controlling cost are the cost management plan and the cost performance baseline. The cost management plan describes how the cost will be monitored and controlled. The cost performance baseline or cost baseline in short is an approved budget; that is, the cost with the timeline for the project attached to it. Work performance information contains performance related data from the execution of the project, including how much cost has been incurred in performing certain tasks. This cost can be compared to the planned cost to make the cost performance measurements. Project funding requirements are part of the cost baseline. Organizational process assets that can influence the cost control includes cost control related policies, procedures, and guidelines; monitoring and reporting methods; and tools used in controlling cost.

The Control Cost process converts the cost related project performance information into project performance measurements by using some tools and techniques, such as the earned value technique, variance analysis, and forecasting. These tools and techniques will be discussed separately. Performance reviews compare the actual progress to the planned progress. Project management software can be used for earned value management.

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Work performance measurements made by comparing the work performance information to the planned performance are the obvious output of the Control Cost process. The analysis of the project performance can result in making some change requests to keep the project on track. The budget forecasts can be made from the earned value analysis. The causes of the variance of the progress from the planned progress and the lessons learned become part of the organizational process assets that can be used in future projects. A common input to controlling scope, schedule, and cost is work performance information, and a common output is work performance measurements. That means these three processes use work performance information to make performance measurements. [15] The key techniques of cost controlling is Budget estimations Performance analysis Status tracking

Budget Estimations A project's cost forecasts starts with the budgeting, as managers take into account the available resources and time it takes to produce the project. Additionally, market conditions can affect the cost of resources, from supplier's shipments to outsourcing possibilities. A more accurate budget helps reduce the risk of rising project's costs through its lifecycle. Thus, managers use budgeting estimating techniques, such as the analogous estimation, which takes into account the cost of similar past projects. If this background information isn't available, managers can use parametric estimation, or mathematical equations to gauge a project's expenditures. "Pert" is an example of a mathematical equation that can help produce a more accurate budget scenario. A three-point analysis, Pert takes the most-likely scenario and pegs it against both optimistic and pessimistic cost projections. Status Tracking Status tracking can help project managers stay abreast of the project's costs through every step in the lifecycle. In the project's budget and plan, a specified amount of capital and human resources are allocated to each stage, and tracking systems can help uncover any departmental leaks that
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could result in overspending. Managers can use information tracking systems to monitor the status of these resources. Manual tracking systems are usually Microsoft Excel formatted charts that contain various mathematical equations. As the project progresses, a manager can input various cost data and better assess the surpluses and deficits in the project. A more complex version of this system is where the financial data is added by various departments and is calculated by cost-evaluating software. This software usually alerts the manager to overspending or any budgetary conflicts. Performance Analysis When there are conflicts that arise in a project, a performance analysis can help determine the best course of action. One such technique is the plan-variance analysis which determines all the available options when deviations from the original plan must be made. For example if a construction project runs out of a necessary specially treated timber, the project manager might need to source a lumber supplier. The plan-variance analysis would help her understand all domestic and foreign options available. When all the options are sourced, the manager can use a cause-and-effect analysis to weigh the costs, time and risks associated with each option. In weighing all the lumber options, the manager might choose an international supplier that might be cheaper, even if it pushes the production schedule back a week due to shipping times. Using these techniques, the manager will have a better gauge on the most cost-effective plan for proceeding. [16]

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Task P3.3
BCWP or Budgeted Cost of Work Performed or Earned Value This is the cost originally budgeted to accomplish the work that has been completed as of the analysis date. It answers the question how much work has actually been completed?. BCWS or Budgeted Cost of Work Scheduled or Plan This is the total budgeted cost up to the analysis date. It answers the question how much did we plan to spend as of this date? A variant of this question is how much work should have been completed by this date? BCWS can be computed from the projects plans, as illustrated in the sequel, or it can be approximated by multiplying the total budget by the fraction of total project duration at the analysis date. Thus, for example, if the project budget is $100 and 20% of the projects time has elapsed, the approximate BCWS is $20. ACWP or Actual Cost of Work Performed This is what it actually cost to accomplish all the work completed as of the analysis date. It answers the question how much have we actually spent?. This is usually determined from the organizations accounting system, or can often be approximated by multiplying the number of people by the number of hours or days or weeks worked.

BCWS- Budgeted cost for work scheduled it the cost which is budgeted to be according to the scheduled work. Considering the project selected above, the budgeted cost was nearly equal to the BCWP (Budgeted cost for work performed.) it is because the wages of the designers and the developers were paid in hourly basis. Therefore adjusting the scope in a smaller scale does not vary the cost in a larger scale. As that we can say that nearly the BCWP = BCWS. But the Actual Cost of Work Performed (ACWP) had a bit of a difference. It was mainly due to the external factors. Such as inflation, money value etc. those costs were uncontrollable to the company and because of that there was a variation ion the cost performance indicators.

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Task P3.4
Qa
Software applications and web applications goes through phases before it is finally released on the market. These phases include design, development, testing, and implementation. Even though the software application has gone through these phases, it is still never finished. This is because the client or customer will want to make changes to it. It could be adding a new field, new group with different access rights or upgrades. If a company is smart, it will have software change control procedures in place. These procedures help to control the number of change requests so that they don't get out of control. Change control process is used for identifying and maintaining changes to baselines of a project. Change Control Procedure is a process of creating a formal method for identifying,documenting, evaluating, and communicating all changes to projects. The major roles and responsibilities involved in change control process are Project Manager who is responsible for creating a changesensitive environment from the beginning of the project by educating project participants about need of change control. Project team members provide estimate of effort needed to evaluate change request. Evaluates change request to determine potential alternatives for implementing changes,

recommend alternatives, and estimate the effort to implement. Project board reviews and approves change request referred from the Project Manager. The Change Request Form is a formal document where the requester describes the changes that need to be applied to the system. The form records the required change as well as recommended changes and estimated costs of making the change. The Change Request Log provides a register of all requested changes to the project. The Project Manager monitors the status of Change Request and takes action as necessary to ensure sufficient progress towards acceptance/rejection. The flow of Change control procedure is as follows: Submit request for change Estimate effort to evaluate change request Determine whether change request should be evaluated
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Analyze change request Assess need for escalation Make implementation decision Anonymous

Figure XXI change control procedure

To take Corrective Actions Project management uses integrated change control to determine whether corrective actions should occur when a problem arises. The process evaluates how the corrective action should fix the problem, whether more problems would arise or whether the corrective action would have any effect in the project. By evaluating the possibilities before engaging in the changes, integrated change control can fully understand the nature of the change and anticipate any adverse effects. To take Preventive Actions Integrated change control evaluates when changes occur in the project that were unforeseen. Project management determines whether certain preventive actions are required to alleviate or avoid any possible risks. These preventive requests usually happen the further the project
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progresses as project management is given a clearer, detailed view of how the project will reach its result To go according to the Project Management Plan All activities involving the project are gathered into a project management plan. Activities include the scope of the project, estimated time and cost, possible risks and the working schedule for project development. Project management relies on this plan for the integrated control changes. By determining whether proposed changes fall within plan guidelines, project management can decide which changes benefit the project overall without increasing costs or time. Work Performance Information Project management evaluates the work performance information. Based on the status of the project, progress that's been made and problems the project team might have encountered, management can determine how to handle the requests. The integrated change control allows for monitoring the project team's work and at the exact points a change would benefit the completion of the project. [17]

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Qb
Considering the selected project, the scope was to design a website for the Colombo school of business. Mainly according to the project sponsor, his requirement was to create the website for the students to register to the open day. But suddenly he wanted the requirement of the students who are in need of registering online to register through the website. It was really a difficult task because the project team was done half way through according to the scope. The work breakdown structure, the cost budgets and many more was planned according to the previous requirement. Therefore the project team had to manage the change in the scope. First the project team checked whether the scope change can be done without making a difference in the cost and the scheduled time. It a variance occurs the team has to take necessary actions against it. To take permission, prepare budgets and all should be done if it is so. Then the project team should consider whether they are having the required resource3s to change the scope. In this matter if the required resources are not there, then the resources needed too should be included in the changed budget. Then the project team should check whether the scope change affects the critical path of the project. If so then the project manager should inform it to the project sponsor in order to take permission for the relevant extension. As that changing the scope had many issues. But by considering all the aspects of the project the scope change can be managed in a proper correct way.

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Task M1
Cash flow evaluation There are four financial measures that most decision makers expect to see in a business case that is based on a cash flow analysis: NPV Perhaps the most widely-used technique for analyzing a potential investment opportunity, or project, is the net present value of cash flow or NPV approach. Using the NPV of cash flow technique, we would discount all cash flows in our business case at the opportunity cost of capital. In most cases, the discount rate would be the weighted average cost of capital for a company. The business rule that is applied with this analysis is to accept all projects or investments where the NPV of cash flows is greater than zero. We're looking for positive NPVs. The strength of calculating NPV is that we are recognizing the value of a dollar today is greater than the value of a dollar received a year from now. That's the time value of money concept. The other strength of this measure is that it recognizes the risk associated with future cash flow. It's less certain. The weaknesses of the NPV approach are related to the measure's simplicity. Our NPV rule tells us to accept all investments where the NPV is greater than zero. However, the measure doesn't tell us when a positive NPV is achieved. Does it happen in five years or 15? Another limitation of the NPV approach is that the model assumes that capital is abundant; that is there is no capital rationing. If resources are scarce, then the analyst has to look carefully at not just the NPV for each project they are evaluating, but also the size of the investment itself. Fortunately, there is another measure that can help overcome this weakness: The calculation of internal rate of return.
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Net Present Value of Cash Flows / NPV of Cash Flows Internal Rate of Return or IRR Profitability Index Payback or PB

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IRR The internal rate of return, or discounted cash flow rate of return, offers analysts a way to quantify the rate of return provided by the investment. The rule of thumb with capital budgeting or when evaluating a project is to accept all investments where the IRR is greater than the opportunity cost of capital. Under most conditions, the opportunity cost of capital is equal to the weighed average cost of capital (WACC). There is no doubt that IRR is an extremely important measure when it comes to evaluating the financial flows of money for a project. Its strengths consist of the wide-scale acceptance of the measure in the financial community, and it's also based on discounted cash flows. The measure also recognizes the time value of money. When used properly, the measure provides excellent guidance on a project's value. There are, however, three well known pitfalls of using IRR that are worth discussing: Multiple Rates of Return - if you're evaluating a project that has more than one change in sign for the cash flow stream, then the project may have multiple IRRs, or no IRR at all. Changes in Discount Rates - the IRR rule tells us to accept projects where the IRR is greater than the opportunity cost of capital or WACC. But if this discount rate changes each year, then it's impossible to make this comparison. IRRs Do Not Add Up - one of the strengths of the NPV approach is that if you need to add one project to an existing project you can simply add the NPVs together to evaluate the entire project. IRRs, on the other hand, cannot be added together. Projects must be combined or evaluated on an incremental basis. ANALYZING PROFITABILITY INDEX The profitability index, also known as the benefit-cost ratio, is another measure that uses a simple rule of thumb to evaluate cash flow results for a given project. In this case, the profitability index rule would tell managers and executives to accept all projects that have an index value that is equal to or greater than 1.

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One of the strengths of profitability index is that it will provide us with the same result as the net present value method. If the NPV of cash flows is positive, then Profitability Index will be greater than one. Likewise, the pitfalls of profitability index would be the same as the NPV method mentioned above. PAYBACK METHOD Payback allows us to see how rapidly a project returns the initial investment back to the company. In practice, companies establish "rules" around payback when evaluating a project. For example, a company might decide that all projects need to have a payback of less than five years. This is also referred to as the cutoff period. Payback can be calculated based on two methods: simple payback and discounted payback: Simple Payback - with this approach, payback is calculated based on the after-tax cash flows. Discounted Payback - when calculating discounted payback, all cash flows are shown on an after tax-basis, and then discounted using the proper discount rate, which is normally the weighted average cost of capital.

Evaluating whether the requirements are met In the initiation phase in a project, a member of the project team gathers the information according to the requirement of the sponsor. Then at the end of the project the project team should evaluate whether they have met the requirements. Testing If the project is a software project, then the project can be tested according to the testing criteria. The software can be given to the user and evaluate. Or else the project team can evaluate it in the many more ways available to test software.

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Task M2
A successful project manager knows how to bring together the definition and control elements and operate them efficiently. That means you will need to apply the leadership skills you already apply in running a department and practice the organizational abilities you need to constantly look to the future. In other words, if youre a qualified department manager, you already possess the skills and attributes for succeeding as a project manager. The criteria by which you will be selected will be similar. Organizational and leadership experience. An executive seeking a qualified project manager usually seeks someone who has already demonstrated the ability to organize work and to lead others. He or she assumes that you will succeed in a complicated longterm project primarily because you have already demonstrated the required skills and experience. Contact with needed resources. For projects that involve a lot of coordination between departments, divisions, or subsidiaries, top management will look for a project manager who already communicates outside of a single department. If you have the contacts required for a project, it will naturally be assumed that you are suited to run a project across departmental lines. Ability to coordinate a diverse resource pool. By itself, contact outside of your department may not be enough. You must also be able to work with a variety of people and departments, even when their backgrounds and disciplines are dissimilar. For example, as a capable project manager, you must be able to delegate and monitor work not only in areas familiar to your own department but in areas that are alien to your background. Communication and procedural skills. An effective project manager will be able to convey and receive information to and from a number of team members, even when particular points of view are different from his own. For example, a strictly administrative manager should understand the priorities of a sales department, or a customer service manager may need to understand what motivates a production crew.

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Ability to delegate and monitor work. Project managers need to delegate the work that will be performed by each team member, and to monitor that work to stay on schedule and within budget. A contractor who builds a house has to understand the processes involved for work done by each subcontractor, even if the work is highly specialized. The same is true for every project manager. Its not enough merely to assign someone else a task, complete with a schedule and a budget. Delegation and monitoring are effective only if youre also able to supervise and assess progress.

Dependability. Your dependability can be tested only in one way: by being given responsibility and the chance to come through. Once you gain the reputation as a manager who can and does respond as expected, youre ready to take on a project.

As that we can identify that there are many types of skill which are required for a project manager. And those skills are very important when providing good service for your client. [18]

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Bibliography
[1] Duncan Haughey. project smart. [Online]. http://www.projectsmart.co.uk/the-role-of-theproject-manager.html [2] Tony Jacowski. project smart. [Online]. http://www.projectsmart.co.uk/role-of-projectmanagers.html [3] "initiation," in GUIDE BOOK 2. usa. [4] "planning," in guide book 2. usa. [5] "executing," in guide book 2. usa. [6] "closeout," in guide book 2. usa. [7] Finn Orfano. (2009, july) bright hub. [Online]. http://www.brighthub.com/office/projectmanagement/articles/44058.aspx [8] Kevin-F. (2011, may) bright hub. [Online]. http://www.brighthub.com/office/projectmanagement/articles/102293.aspx [9] stanely E Portny. dummies. [Online]. http://www.dummies.com/how-to/content/using-amatrix-structure-to-administer-your-projec.html [10] pmp. [Online]. http://getpmpcertified.blogspot.com/p/pmp-certification-study-guide.html [11] Timothy R. Barry. project smart. [Online]. http://www.projectsmart.co.uk/top-10-qualitiesproject-manager.html [12] N.Nayab. (2011, may) bright hub. [Online]. http://www.brighthub.com/office/projectmanagement/articles/103192.aspx [13] kevin haghighat, "project management knowledge areas," december 2008. [Online]. http://kevinhaghighat.com/Papers/HRManagement.pdf

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[14] project

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[Online].

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knowledge.com/definitions/r/resource-histogram/ [15] (2011, july) GET PMP certified. [Online].

http://getpmpcertified.blogspot.com/2011/07/chapter-86-controlling-cost.html [16] b.Shennu. (2011) ehow. [Online]. http://www.ehow.com/list_7619853_project-cost-controltechniques.html [17] michelle Hickman. (2011, june) ehow. [Online].

http://www.ehow.com/info_8646123_three-change-control-project-management.html [18] mindtools. [Online]. http://www.mindtools.com/pages/main/newMN_PPM.htm

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