Project Management-BME654A 2025-26

MODULE-4

PERFORMING PROJECTS

Performing projects involves executing planned activities, allocating resources effectively, and
monitoring progress to ensure tasks are completed as scheduled and within budget. This phase is critical
for translating project plans into actionable steps, managing risks, and maintaining communication among
stakeholders to achieve project objectives efficiently.

PROJECT SUPPLY CHAIN MANAGEMENT

Project Supply Chain Management (PSCM) involves the planning, implementation, and control
of the flow of goods, services, and information related to a project. It encompasses sourcing, procurement,
logistics, and distribution activities to ensure that necessary resources are available at the right time and
place during project execution.

Effective PSCM aims to optimize costs, minimize risks, and enhance overall project performance
by aligning supply chain strategies with project objectives and timelines

IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

 Helps in completing projects on time.

 Reduces waste and saves money.
 Ensures that all materials and tools are available when needed.
 Helps in managing suppliers and deliveries effectively.

Steps in Project Supply Chain Management

1️ Planning – This is the first and most important step. Here, we decide:

 What materials are required?

 Where will we get them from?
 How much quantity is needed?

2️ Sourcing – This step involves finding suppliers or vendors who provide the required materials.
Engineers need to:

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 Compare prices and quality.

 Select the best supplier.
 Order the materials.

3️ Manufacturing or Assembly – In this step, the collected materials are used to make the final product or
complete the project. For example, if you are making a mini wind turbine, this is when you
assemble all the parts.

4️ Logistics & Delivery – This includes transporting the required materials to the project site or
delivering the finished product to the client. It ensures that everything reaches the right place safely
and on time.

5️ Monitoring & Managing – This step is about keeping track of all resources, checking for any delays, and making
sure everything runs smoothly.

Planning Purchasing and Acquisitions

Planning purchasing and acquisitions is an important step in project management. It involves

identifying what materials, tools, or services are needed for a project and deciding how to buy them
efficiently. This ensures that everything required for the project is available on time, within budget,
and of good quality.

Steps in Planning Purchasing and Acquisitions:

1. Identify Needs – List down all the materials, equipment, and services required for the
project.
2. Set a Budget – Determine how much money can be spent on purchases.
3. Find Suppliers – Look for reliable suppliers or vendors who can provide quality
materials at the best price.
4. Compare and Select – Compare prices, quality, and delivery time before selecting a
supplier.
5. Negotiate and Purchase – Discuss pricing, discounts, and delivery terms with the
supplier and place the order.
6. Track Deliveries – Monitor the arrival of materials and ensure they match the order.
7. Manage Inventory – Store materials properly and use them as per the project timeline.
8.

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Plan contracting
1️. Plan contracting is the process of identifying, selecting, and managing agreements with
external vendors or service providers needed for a project.
2️. It ensures that all required materials, equipment, or services are obtained legally and
efficiently. This process involves defining project needs, preparing contract terms,
selecting reliable contractors, and negotiating agreements.

3️. A well-planned contract helps avoid misunderstandings, delays, and budget overruns. It
includes setting clear expectations regarding cost, quality, timelines, and responsibilities.
Proper documentation and legal approvals are essential to ensure smooth execution.

4️. Effective plan contracting ensures that the project gets the right resources at the right time,
leading to successful completion.

Types of Contracts in Project Management

Contracts are legal agreements between two parties, commonly used in projects to define work scope,
payment terms, and responsibilities. The main types of contracts include:

1️ Fixed-Price Contract (Lump Sum Contract)

 A set price is agreed upon before work begins.

 Best for well-defined projects with clear requirements.
 Example: A company agrees to build a website for ₹5️0,000, regardless of time taken.

2️ Cost-Reimbursable Contract (Cost-Plus Contract)

 The buyer pays for actual costs plus an additional fee for profit.
 Used when project scope is uncertain.
 Example: A research project where the company pays for all expenses plus a 10% fee.

3️ Time and Materials (T&M) Contract

 Payment is based on time spent and materials used.

 Suitable for projects with unclear scope.
 Example: Hiring a software developer at ₹1️,000 per hour plus material costs.

4️ Unit Price Contract

 Payment is based on a fixed rate per unit of work completed.

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 Used in construction and manufacturing projects.

 Example: Paying ₹5️00 per square foot for flooring installation.

Each contract type is chosen based on project requirements, risks, and budget constraints to ensure
smooth execution.

Project Partnering and Collaborations

Project partnering and collaboration refer to working together with other individuals, teams, or
organizations to achieve a common goal. It helps in sharing resources, skills, and expertise, making
the project more efficient and successful.

In partnering, two or more organizations build long-term relationships to complete projects with
mutual trust and shared risks. It improves teamwork and reduces conflicts.

In collaboration, different teams or experts contribute their knowledge and skills to complete specific
tasks in a project. This improves innovation and efficiency.

For example, if students are working on a solar-powered car project, they can partner with a battery
company for high-quality batteries and collaborate with mechanical engineers for design
improvements. Effective partnerships and collaborations help in better decision-making, cost
reduction, and successful project completion.

Project Supply Chain Management

Project Supply Chain Management (SCM) is the process of planning, sourcing, managing, and
delivering materials, services, and resources needed to complete a project successfully. It ensures that
everything required for the project is available at the right time, in the right quantity, and at the right
cost.

Components of Project Supply Chain Management:

1️ Planning – Identifying project needs, materials, and resources.

2️ Sourcing – Finding and selecting suppliers or vendors for materials and services.
3️ Procurement – Purchasing the required items while ensuring cost and quality control. 4️
Logistics & Delivery – Transporting and storing materials efficiently.

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5️ Inventory Management – Keeping track of materials to avoid shortages or excess stock. 6️

Risk Management – Identifying and reducing risks related to delays, costs, and quality.

Example:

If a team is building a wind turbine, supply chain management includes:

 Planning: Listing all required components like blades, motors, and batteries.
 Sourcing: Finding suppliers for quality materials at the best price.
 Procurement: Buying the materials within the budget.
 Logistics: Ensuring safe and timely delivery of parts.
 Inventory Management: Keeping track of available and used materials.
 Risk Management: Preventing delays due to supplier issues or damaged parts.

Efficient supply chain management helps complete projects on time, reduces costs, and ensures quality
outcomes.

Project Progress and Results

Project progress refers to tracking and measuring how a project is advancing toward its goals. It
involves checking if tasks are completed on time, resources are used efficiently, and any issues are
addressed. Progress can be monitored using reports, meetings, or project management tools.

Project results are the final outcomes after completing the project. This includes whether the
objectives were met, the quality of the final product, and the impact of the project. Results are
evaluated based on performance, cost, and customer or stakeholder satisfaction.

Example:

If a team is working on a robotics project, progress tracking includes checking if:

 The robot's frame is built on time.

 Components like sensors and motors are installed correctly.
 Programming and testing are completed as planned.

Final results are evaluated by:

 Whether the robot functions as expected.

 If it meets the project goal (e.g., a robot that follows a path).
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 Feedback from users or evaluators.

Tracking project progress ensures smooth execution, and analyzing results helps in learning from
mistakes.

BALANCED SCORECARD APPROACH

The Balanced Scorecard is like a special tool that helps a company see how well it's doing in different
areas, not just in making money. It looks at four main things to help the company improve and
succeed in the long run.

The Four Areas of the Balanced Scorecard

1. Financial (Money)
o This area looks at how much money the company is making.
o It asks: "Is the company earning enough profit?"
o Example: It's like checking your report card to see how well you're doing in math or
science grades.
2. Customer (Satisfaction)
o This area focuses on how happy customers are with the company’s products or
services.
o It asks: "Are the customers happy? Do they like the products?"
o Example: If you’re a good student, your teachers and classmates are happy with your
work. You get a good reputation.
3. Internal Process (How things work inside)
o This area checks how well the company is doing things inside.
o It asks: "Are the company's processes and operations running smoothly?"
o Example: It’s like asking if you have good study habits—do you finish homework on
time? Are you organized?
4. Learning and Growth (Improvement)
o This area focuses on how the company is getting better over time.
o It asks: "Is the company learning new things, improving its work, and preparing for the
future?"

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o Example: It’s like studying new subjects or learning new skills so you can do better in
school next year.

Why is it Called "Balanced"?

 It's called "Balanced" because it helps the company look at all these areas equally—so it
doesn’t just focus on money, but also on keeping customers happy, improving how it works,
and growing for the future.

Example to Make it Clearer:

Imagine a company that makes smartphones. They will use the Balanced Scorecard to measure how
they are doing in different areas:

1. Financial: Are they making enough money from selling smartphones?

2. Customer: Are customers happy with the smartphones (quality, features)?
3. Internal Process: Are they making smartphones efficiently (good factory processes, fast
production)?
4. Learning and Growth: Are they learning new technologies to make better phones in the
future?

Internal Projects and Customer Issues

When working on an internal project, it's common to face challenges related to internal processes,
customer satisfaction, and financial issues. Here's how each of these aspects can impact the project:

1. Internal Project Issues

Internal issues in a project often arise from problems within the team's workflow or the company’s
processes. These could include:

 Inefficient communication: If team members aren’t communicating effectively, tasks can get
delayed or misunderstood.
 Lack of resources: Not having the right tools or enough manpower can slow down progress.
 Poor planning: If the project isn't planned well, there can be confusion about deadlines, roles,
or goals.

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 Overlapping responsibilities: If different departments or team members are unclear about

their responsibilities, it can lead to duplication of work or missed tasks. 

Solution: Regular meetings, clear role definitions, proper resource allocation, and efficient planning
can help resolve these issues.

2. Customer Issues

Customer-related problems can arise when the product or service doesn’t meet the expectations or
needs of the customer. Common issues include:

 Unclear requirements: If the customer hasn’t communicated what they really need, the final
product might not be what they expected. 
 Delays: If the project gets delayed, customers may become frustrated and lose trust.
 Quality concerns: The customer might be unhappy if the product doesn’t meet the expected
quality standards. 

Solution: Clear communication with customers from the start, frequent updates, and ensuring the
product meets the specified quality can help avoid these issues.

3. Financial Issues

Financial problems can affect the project in various ways:

 Budget overruns: If the project costs more than expected, it can put the financial stability of
the company at risk.
 Insufficient funding: If there isn’t enough money to cover all project expenses, parts of the
project might get delayed or canceled.
 Unforeseen expenses: Sometimes unexpected costs, such as additional resources or
technology, can arise during the project. 

Finishing the projects

 To finish an internal project successfully, the team needs to manage everything carefully
and work together.

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 First, it's important to make sure everyone knows their role and responsibilities, and that
communication is clear between all team members.

 This will help prevent mistakes or delays. Next, it's important to keep the customer happy
by making sure their needs are understood and met, and by delivering a good product on
time.

 The team also needs to keep an eye on the budget to avoid overspending and making sure
money is used wisely. By staying organized, solving problems quickly, and staying flexible,
the team can overcome any challenges and finish the project successfully, meeting both the
company's goals and the customer's expectations. Regular check-ins will help make sure
everything stays on track.

TERMINATE PROJECTS EARLY

Sometimes, it might be best to end a project early if things aren't going well. This doesn’t mean the
project is a failure, but rather that it’s better to stop before wasting more time or resources. Here are
some common reasons to stop a project early and how to do it properly:

Why Stop a Project Early?

1. Unclear Goals: If the goals of the project aren’t clear or have changed so much that the original
plan doesn’t work anymore, it might be better to stop.
2. Lack of Resources: If the project doesn’t have enough money, people, or materials to finish,
continuing might not be possible.
3. Poor Performance: If the project is always behind schedule or going over budget, and nothing
is improving, it might be time to stop.
4. Shifting Focus: Sometimes the company might change its focus, and the project no longer fits
with its goals.
5. Customer Issues: If the project isn't meeting the customer’s needs and it’s clear it can’t be
fixed, stopping might save the company’s reputation.

How to End a Project Early:

1. Understand the Problem: Figure out why the project isn’t working. Is it fixable, or is it time
to stop?
2. Talk to Others: Discuss with your team and anyone else involved before making the decision
to stop the project.
3. Communicate Clearly: If you decide to end the project, explain clearly why it’s being stopped
and what will happen next.
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4. Learn from It: Write down what went wrong and what lessons can be learned, so you can
avoid the same mistakes in future projects.
5. Save What You Can: Try to keep any useful parts of the project, like designs or ideas, to use
later.

Ending a project early can actually save time and money in the long run, and by doing it carefully, you
can move on to more successful projects.

Make or Buy Decision

 A make or buy decision is when a company decides whether to make a product or part by itself
or to buy it from another company. For example, if a company makes bicycles, it might decide
whether to make the tires itself or buy them from a tire company. This decision depends on
many things, like cost, time, and quality.
 If making the item at home is cheaper and the company has the right tools and workers, they
might choose to make it. But if buying it saves time and money, or the company doesn’t have
the right machines, they might buy it from someone else. Companies also think about how fast
they can get the product, if they can trust the supplier, and whether they want to keep their
product designs secret.
 In short, companies make this decision to save money, improve quality, and focus on what
they do best.

Post Project Activities

 After a project is finished, there are some important steps to do. These are called post project
activities. They help make sure everything is completed properly and lessons are learned for
the future.
 First, the team checks if all the work was done correctly and meets the goals. This is called
project review. Then, they see what went well and what could be better next time. This helps
improve future projects.
 Next, they make sure all records, reports, and documents are saved safely. This is called
documentation. Also, any tools or equipment used in the project are returned or stored properly.
 Finally, the team thanks everyone who helped and may give a final report to the boss or client.
These steps help close the project in a good way and get ready for the next one.

Finishing a Project on Time

 Finishing a project on time means completing all the work before or by the deadline. To do
this, a team needs to plan well, stay organized, and work together.

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 First, the team makes a clear plan with all the tasks and when they should be done. This helps
everyone know what to do and when. Next, they follow the plan and check their progress
regularly. If there are any problems, they try to solve them quickly so they don’t get delayed.
 Good communication is also important. Team members should talk to each other and help
when needed. Time should not be wasted, and everyone should stay focused on their work.
 In short, to finish a project on time, plan well, work hard, solve problems fast, and stay on
track.

Securing Customer Feedback and Approval

 Securing customer feedback and approval means getting the customer’s opinion on the work
done and making sure they are happy with the results before the project is considered complete.
 After finishing a project or delivering a product, the team asks the customer what they think.
This is called feedback. The feedback helps the team know what the customer liked and what
might need improvement.
 Once the customer is happy with everything, they give approval, which means they agree that
the project or product is complete and ready. This is important because it shows the customer
is satisfied and gives the team the go-ahead to wrap up the project.
 In short, securing customer feedback and approval is about making sure the customer is happy
with the work and officially says the project is finished.

Knowledge Management

 Knowledge management is the process of collecting, sharing, and organizing the information
and skills that people in a company or group have. It helps make sure that important knowledge
is not lost and can be used by everyone to improve work and solve problems.
 For example, if someone learns a new way to do something more efficiently, that knowledge
should be shared with others so everyone can benefit. Companies use tools like databases,
shared documents, and meetings to store and share this information. This way, employees don’t
have to start from scratch every time they face a problem.
 In short, knowledge management is about keeping and sharing useful information so everyone
in a team or company can do their job better and faster.

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Administrative and Contract Closure

 When a project is finished, it's important to officially close it by completing two main steps:
administrative closure and contract closure. These steps ensure that everything is wrapped up
properly and that all parties are satisfied.
 Administrative Closure involves finalizing all internal project activities. This includes
confirming that all tasks and deliverables are completed, obtaining approval from stakeholders,
and documenting lessons learned for future projects. It's like checking that everything is done
as planned and learning from the experience.
 Contract Closure focuses on finalizing agreements with external parties. This means ensuring
that all terms of the contract are met, settling any remaining payments, and officially closing
out contracts. It's about making sure that all obligations are fulfilled and that there are no loose
ends.
 By completing both administrative and contract closure, a project team ensures that the project
is officially finished, all parties are satisfied, and valuable insights are captured for future
projects.

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