SYLLABUS

INTRODUCTION TO PROJECT MANAGEMENT

Defining Business Project Management
Exploring Opportunities in the project management field
Developing Project management skills
Categorizing different types of Business Projects
Understanding the difference between Projects and Programmes.
2 PLANNING ANDIMPLEMENTING YOUR PROJECT
Planning a Project
C
Developing aBusiness Project Management Plan
Assessing the feasibility of a Project
ldentifying and Managing the Risk
Managing a Project and Setting-up a Project Database
Creating an effective work schedule
Monitoring a business project
Managing Change
Address of Problems
3. BUSINESS PROJECT MANAGEMENT TECHNIQUES
ldentifying Organisational Structures
Estimation of Costs and Budget
Using CPM tools (Gantt Chart, WBS, Project Network Diagram)
Establishing the CPM
Implementing PERT Tool
Using Process improvement tools (Fishbone, SIPOC)
4. MANAGING PROJECT LSSUES AND THER COMMENGEMENT
ldentifying Project Costs
Calculating Return on Investment (ROl)
Calculating the Payback Period
Determining Net Present Value (NPV)
ldentifying the life cycle of a Project
Handling over aProject
Closing a Project
Reviewing a Project
 4. 3. 2. 1.
APPENDIX Managing Business Planning Introduction

: Project Project and

Multiple to
Implementing Project
lssues Management
Choice
and
CONTENTS
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 Introductlon to Project Managemen Business Project Management Introduction to Project Management
Business Project Management
control, which helps keep it on
project is its "A successful standard systerns development plan provides a detailed outline
" One of the siqnificant parts of a beginning, when
schedule, on budget and focused.
From the project's
post-implementation review, project
control planning regarding:
begins, to its end, after extends (a) Astrategy to align development with the organization's broader objectives
through the entire process.
(b) Standards for new systems
are finished
is in progress or later when they (c) Project management policies for timing and budgeting
Projects may be evaluated when it directed by
risk or compliance and are (d) Procedures describing the process
Formal audits are generally focused on
(e) Evaluation of quality of change
management.
common to review the project against approvo4 " Internal business projects are completed to further a company's strategy or
" Toaudit project management, it is
objectives and business project management is the administration of these
processes.
control is necessary: having toe undertakings. Their goals or content defines projects.
Every project needs to be evaluated for how much " Business projects have a specific goal in mind and it should connect to a company's
control is dangerous.
much control takes too long while having too little overall business strategy.
come at a high cost to
" Project control must be implemented correctly or it could " Internal projects, administrative projects and functional projects are just a few of
the business since it could lead to the discovery of errors and repairs.
the many terms used to describe business projects.
Areas of Project Control " It is worth remembering that regardless of the type of project, all projects must
" All of the following areas are dependent on the use of controlsystems: meet specific criterja to be considered as projects.
" Cost, risk, quality, communication, time, change, procurement and human There are two primary conditions: they must be temporary and one-of-a-kind.
resources. On top of that, auditors should consider the significance of the projects " It implies that they have a set finish date and are not recurring assignments.
to the financial statements, the importance of controls to stakeholders and the 1.2 Exploring Opportunities in the Project Management Field
number of controls available. " It is a particularly relevant issue in project management when it comes to risk.
" The auditors should evaluate the development process and the implementation " The two difficult-to-manage aspects of business management, i.e, opportunity
procedures themselves. management and risk management are undeniably inter-connected.
" It may be possible to evaluate the development process and the final product's There are at least three different kinds of projects to work on.
quality if required or requested. The first is regarding the project deliverable specifications made as a result of
" An audit firm may be involved from the beginningof the process to find problems project decisions.
SOoner and easier. Project options of the second type revolve around prioritizing work, generally in
" A control consultant can participate in the development team or in an audit as an the form of trade-offs.
independent auditor. There are couple of other opportunities that come with risks associated with
While businesses may use formal system project activities.
development processes on oCcasion, Sucn
methods are rarely appropriate. " Each of these definitions for "opportunity" is connected to the idea of risk.
" Amore traditional approach is
more effective in quaranteeing solid
controls an0 However, most types of opportunities only increase overall project risk, as they
auditors need to verify that the process is sound and serve as sources of future project problems.
adhered to in practice. 1,9
1.8
 Introduction to Project Management Business Project Management Introduction to Project Management
Business Project Management
goals for projects that are 2. Find the Right Project Management Tools
Managing project opportunities involve establishing with overall
"
business cases, adjusting project plans to link For every team, project management appears to look different.
based on compelling might
potential benefits that might or " For acoffee shop with in-person staff to have a daily checklist to give to each team
and working to realise the
project objectives inevitable. member.
these cases, risk is always
not occur. However, in all management is always central to
ideal
" On the other hand, adesign firm with remote contractors may need a cloud-based
that project opportunity
" In short, we can say pushing it too far may increase the project risk. resource.
project management. However, adequate levels of
necessary to align reasonable opportunity with Project management software is moving toward digital tools and your employees
Thus, it is always
may prefer to look at schedules or inventory ithout caling or coming into the
risk.
office.
1.3 DevelopingProject Management Skills quiCk
phrase "project management," they are Some project management software has free trials, which allow you to see what's
When small business owners hear the best for your team.
swamped with more work.
to believe that they are about to be
and employees for how you spend your time as " Small teams can utilize the functionality of Trelo and Base camp to share updates
" You are responsible to your clients and assign tasks via their smartphones.
a small business owner. also
industry promotes working more, it Rather than spending money on the latest app, spend a few days testing out what
Although the project management your staff needs.
promotes working more smarter.
getting them right the first time can
mean delivering 3. Establish Firm Goals or Objectives
" Doing projects on time and
on adeadline.
Even though this might seem basic, the keyword here is firm.
on the back and forth and " Put in place firm deadlines to reduce customer wait times and increase average
Streamlining the proofing process, cutting down
possible with this approach. order size.
completing the work within budget are all
in your small business and get higher Ensure that your employees know what their end goals are and what they will
" You can apply project management skills
even if you do not use specífic project expect to gain when they've finished a project.
employee productivity and lower costs
management practices. 4. Set Yourself up for Success with SmallWins
Small business owners need to map out Be honest with yourself about what you can and cannot do when making firm goals
" Project management begins with planning.
long-run.
their tasks in advance to save time, money and resources in the and objectives.
1. Focus on Communication Aproject due in three months is more daunting to manage than one that is due in
to
" Arecent study found that one out of five projects does not meet their goals due two weeks.

ineffective communications. Set realistic deadlines and winnable targets to improve your chances of succeeding.
" Investigate the most effective ways to talk to your clients and employees. " The process of planning the project in its entirety could be a minor success on its
" A daily email or morning meeting to discuss the tasks for the day may be Own.

necessary. 5. Understand (and Embrace) the Concept of MVP

" The paper checklist might be passed around, or the entire contents of the kitchen " Toget a product or service out the door, the minimum viable product (MVP) is the
whiteboard could be listed. smallest amount of work that can be done. Instead of polishing your business until
If you've identified a successful communication strategy,you should add it to your it's perfect, implement the MVP strategy and get your product on the market as
project management process. SOon as possible.
1.10 1.11
 Introduction to Project
Business Project Management

involves shipping your product

to consumers
for testing and
done.
Maasnsakgienmgem
to
Business Project Management Introduction to Project Management

" That prototype is only partially 8. Choose the Right People for the Right Jobs
feedback even when the a month working
designer who just spent
" single
a web
you're only
Supposewebsite nonstop
on a
to have the client come back and say they want the projecg
" It's crucial to remember that every member of a smal team is a project manager.
Meetings, messages and projects must allbe completed promptly.
wholly restarted. In that case, you could have simply sent them a minimaly viabl
Everyone must pursue their personal goals as well as the overalldeadline.
the website.
Be on the lookout for untapped potential in those around you and recruit those
" product
You would have ofdelivered
version what the client wanted at the end of the month, but only suited to their tasks.
feedback andthen Make sure the habitual procrastinator doesn't have control over enforcing
website according to their considering
after first refining the deadlines.
ideas they'd expressed.
This exercise aims to do the work and learn to improve it while doing it, rather than t might be a good idea to assign the person who is always first to the office in
charge of keeping the project board up to date.
behind.
waiting on "perfect," only to fal . You should designate a naturally charismatic person and has a gift for building
6. Get Things on Paper rapport with customers to make sure that your team is on the same page.
and then
with an employee or a client discovered that
" Have you ever had a chat Although you may have the project manager position, you should assign workers
what they meant?
they used words that didn't match tasks to complete the work efficiently.
is a paper trajl. Jf we.
In project management, the most excellent resource you have 9. Keep Clear and Accessible Schedules
responsibilities, record it
alter the order of your work or reassign someone else's " Set deadlines, assign tasks and keep a calendar where everyone can see them.
" You may even encourage your employees to share their notes after meetinns " Awhiteboard in the office,a Google calendar, a Trello board, or an app like When I
which they can record everything down on. Work could all be utilized effectively to schedule things.
" If you create a project management culture by making sure everyone leaves a trail Everyone should be clear on their own goals, the progress of others and their
of communication, decisions, expectations and project requirements, you will keep assignments.
everyone accountable for their work. 10. Ask for Feedback
You'll never wonder, "When did this happen?" or have to explain to a disgruntled Do you now that the most influential leaders are the ones who seek feedback on a
client that work was not delivered on time. more frequent basis?
You'llbe able to follow the evolution of the project and explain the changes made. Allowing your customers and employees to provide their thoughts about your work
7. Examine your Current Productivity is not asign of your failure but a strategic way to learn what is and isn't working.
" Ifa project keeps getting delayed, it's time to discover the project's weakest link. Without feedback, how will you know if you're succeeding?
(a) Is the person placing an order for supplies " Set time intervals for asking employees about the job and implementing any new
promptly? systems or procedures.
(b) Do you have employees doing work that they may
not be well-suited for?
(c) Is there any way to automate Employees are unlikely to be most productive when you use traditional project
prOcesses that require manual labour? management techniques.
" Apps like If This Then That ((FTTT) and other
apps help with daily digital tasks ano " Your staff may perform better when there is a more extended planning period and
boost your team's productivity by synchronizing and
cataloguing new emails and sending out reminders regularly. organizing new Tles when they do not need to be checked each day.
" You will not know unless you ask.
1.12
1.13
 Introductlon to Projectt

Business Project Management

Management Business Project Management Introduction to Project Management

11. Boost Morale produce better work not more of it.

To help you meet your deadlines, adjust your schedule if it is too ambitious.
management is to Make sure to bring up any information about replacing a sewer line on the job site
project changes may wish
" The goal of good
not concur.
Those who resist continue with the client and adjust the budget immediately.
However, people may
patterns. better, use project management to " It's essential to cultivate a culture that favours finding solutions over avoiding
their former work them to do
inspire issues.
team and
" To reward your
make their lives
easier. the meeting on time Adopt an open-door policy so that employees are free to repor. any problems or
for coming to
reward your team members wins. offer suggestions that you may have missed.
You can celebrate the small
a lunch out to Begin every meeting by identifying potential issues.
thanking them or plan
Expectations oth. Problems will be spotted and resolved by identifying and assigning responsibilities
12. Set Realistic
objectives, increased employee productivity and
Staying on budget, clear for informing the client, scheduling re-assignment and notifying others of progress.
realistic expectations.
by maintaining
positive results are achieved one cannot prepare
their team t 15. Organize Your Resources in One Place
manager understands that . No more need to wait for files to send or to search your glove box for receipts.
" Askilled project
accurate expectations.
SUCcess unless they provide excellens " Time spent searching for information is equivalent to a whole workday lost each
you, you cant deliver
know what to expect trom
" If customers don't week if you are doing so because you lack the information you need.
Customer service. Instead of wasting time, create a filing system to make things easier.
plan to get
contact you for more information, let them knoW when you
" If clients This system can be either digital or physical.
back to them. There are free and paid storage and sharingsolutions from Google Drive and Drop
that when making
to order new materials, consider
" Ifaflooring project takes weeks box and the Shoe boxed app that can be used to track receipts and mileage on
impossible.
your plan and don't ask for something your phone.
over-deliver.
" Always under-promise and Furthermore, the project management software allows users to attach files and
13. Emphaslze Accountability make alterations to individual tasks.
delivers their work on time.
When everyone in a project performs their role and
You may need to spend more time planning a project initially, but you will save
project management succeeds.
yourself time in the long-run.
" When you distribute the tasks among your staff, it becomes apparent very quickly
16. Host Project Debriefs
that everyone must be responsible for their share of responsibility.
" Being accountable does not mean being the snitch and reporting your co-workers
" If your project is finished, you should take some time to analyze what went well
and what didn't.
for failing to make progress.
14. Address Problems Early (a) What could've been done to improve the situation?
" Everyone dislikes conflicts and it is always unpleasant to deliver upsetting news. (b) Was the planning helpful or should there have been more in another phase?
" While it is preferable to fix issues early, doing so is always better than putting them (c) Did each person have defined responsibilities?
of. (d) Did the deadlines succeed, or did they take extra time?
1.14 1,15
 Introduction to Project
Busines Project Management should be
Management
replicated in Business Project Management Introduction to Project Management
well and the
project were executed
aspects of the " One method for making this happen is to launch a project that will create a system
(E) What
future? for evaluating market prices and then use that system to make adjustments in
reaction? answers to
(t) What was
the customer
these questions
and use the informhow costs.

some time on the future. 2. Operational Projects

Plan to spend management efforts in
to your project you can see how your project Unlike the long-term strategy, operational projects are completed to accomplish
apply the process of things already, specific business goals.
keeping track future.
you are refined in the
be more " An active project may be needed to upgrade a software system to the latest
management skills will Weaknesses
Embrace Your
Strengths and version.
17. Identify and because you need to be
critical for a good
project manager realistic 3. Recurring Projects
" Honesty is " Projects that repeat regularly must still be one-of-a-kind and short-term.
about your capabilities.
person or do you hold morning staff meetings? Technology development projects are a great example.
you usually meet with clientsin details be left to Someone
(a) Do should more minor " Smartphone owners, especially those who own Samsung Galaxy 9 or Apple iPhone
you prefer to plan projects, or 8models, should keep their cell phone numbers a secret.
Do
else? " The project to upgrade a phone is regular, with new releases being
email? released every
better in person or over
() Do you perform the work versus managing the year or twice a year. Even so, each release has a fixed launch date and various
spending more time on
(d) Are you more interested in unique features or specifications.
work? for ve. 3 Understanding the Difference between Projects and Programmes
will help you become abetter manager
" Agood understanding of yourself customers. Defining a Project
provider for your
employees and a better service " Projects are a temporary set of activities aimed at achieving the
joining an online community if you need objective of a
" You may want to consider free classes or specific/narrow organization.
to learn new skills. " On the other hand, programs are organizational activities that co-ordinate multiple
relevant work experience to offer.
" See if your employees have other interests or projects to help achieve broader corporate goals. As aresult, programmes cover a
are more
Everyone wears multiple hats when working in a small business, but some more comprehensive range of areas than projects do.
suited to a role than others. Definingof aProgram
" In contrast, a programme is defined as a set of
1.4 Gategorizing Different Types of Business Projects inter-related projects managed
together to take advantage from those benefits that are unavailable if the
Three Types of Business Projects projects
are only managed separately.
There are three main types of business projects a company can implement:
"A programme may also include elements of operational work
1. Strategic Projects that continues over
time.
Strategic projects are geared toward business-level strategies or, may be a firm " A programme, as you know, consists of several projects and is
plans to offer its customers the lowest-priced choice. designed to fulfil an
1.16
organization's ora company's wide-ranging objectives.
1.17
 Introductlontto Project

reallzatMAnion,agmetimme
Introductlon to Project Management
Busines Projeet Management benefits Business Project Management
ways, including
programmes differin several Polnts to Remember
and
" Projects other variables. project always has
project is a short-term and singular task that varies in
length. It's done to resolve
and varioUs forexample, while a a
Stan " A
one noticeable difference: not have an end. aparticular problem for an organization, which may be to design a product or
" Time is programmes might
certain revise a process.
and an end, Programs DIffer Project management is the ability to effectively handle all aspects of aproject to
Mow Projects and
and specific. deliver allnecessary output on time and within budget.
1, Structure components are exact programmes are more likely
various Business Project Management Process
The project's
project are clear, while to be
and scope of a 1. Initiating
" The goals
alsoinclude the project 2. Planning
uncertain.
incorporate multiple
projects, programs managers 3. Execution/Implementation
" As they members of their project teams.
and the 4. Project Documentation
2. Effort undertakings. 5. Monitoring and Controlling
specific, focused to
project is connected the rest of the
" Projects are programme and each 6. Monitoring and Controlling Cycle
Projects make up a 7. Closing
program's work.
meet its goals. 8. System Control for the Project
projects helps the programme overlaps among various
" Each of the any potential projects Developing Project Management Skills
manager should assess
" The project successful completion. 1. Focus on Communication
to help ensure the program's
2. Find the Right Project Management Tools
3. Length to complete, most projects are
may take several years 3. Establish Firm Goals or Objectives
" Although some projects
relatively quick to finish. 4. Set Yourself up for Success with Small Wins
long time to
programmes, programmers may take a 5. Understand (and Embrace) the Concept of MVP
" When working on new provide more. Programs are commonk,
complete them because they aim to 6. Get Things on Paper
structured into phases or tranches. phasec 7. Examine your Current Productivity
long, it can still be divided into multiple
" Even if a project is exceptionally 8. Choose the Right People for the Right Jobs
which is less common.
9. Keep Clear and Accessible Schedules
4. Benefits 10. Ask for Feedback
the project is complete.
" Projects target actual results, meaning what you gain when 11. Boost Morale
measure.
" Program outcomes are intangible in nature and hard to
12. Set Realistic Expectations
" The benefits realized by projects define the overallvalue of aprogramme.
culture or 13. Emphasize Accountability
" The programme outcomes may include a change in a business's
practices or a shift in how an organization does business. 14. Address Problems Early
1,19
L18
 Introduction to
Project Mana
Business Project Management

in One Place
agemen
15. Organize YourResources
Detbriefs Weaknesses
Chapter 2..
16. Host Project YourStrengths
and
and Embrace
17. Identify
Types of Business
1. Strategic Projects
Projects
Planning and Implementing Your
2. Operational Projects
3. Recurring Projects benefite
Project
ways, including
Projects and programmes
and various other
differ in several
variables.
realization, time Contents
2.1 Planning and Implementing Your Project
Questions For Discussion 2.2 Developing a Business Project Management Plan
opportunitiesin Project
Project Management. Explain
1. Define
Field.
Business
Management 2.3 Assessing the Feasibility of a Project
2.4 ldentifying and Managing The Risk
Management Process.
2. Discuss the Business Project 2.4.1 Risk Management
3. Explain Project
Management Skills. 2.5 Managing a Project
Projects.
4. Explain the Types of Business 2.6 Setting Up a Project Database
and Programme ?
5. What is difference between Projects 2.7 Creating An Effective Work Schedule
6. Write Short Notes 2.8 Monitoring a Business Project
Management Field
(A) Exploring Opportunities in the Project 2.9 Monaging Change
(B) Advantages of Business Project Management 2.9.1 Tips on Chasing Successful Change Management
(C) System Control for the Project 2.10 Address of Problems
Points to Remember
Questions for Discussion
Learning Objectives..
Ater reading this chapter, the students should able to understand:
" The steps involved in Developing a Business Project Management Plan
The concept of Feasibility of a Project
" The concept of Risk Monogement
The Process of Creating an Efective Work Schedule
" About the concept of Managing Change
About the Tips for Successful Change Management
1.20 2.1
 PlanningandImplementing Your

Business Project Management Proet Business Project Management Planning andImplementing Your Project
lmplementing YourProject a design, a 2.2 Developing a Business Project Management Plan
R1 Planning
It's
and
implement astrategy, a
upto you to
plan, a model, specification, . Projects often have a project plan, which defines how the project will be carried
a policy. take. Because of out, monitored and completed.
standard, an algorithm, or shows steps you must
implementation plan
youthe exact
need to take
to this,
carry out your " The project's goals and parameters are set out systematicaly and it will serve as a
" The detailed steps yOu
is the
action quide for the project team,the organization and stakeholders.
a course of
implementation endeavours. tool that breaks down
plan is a project management teams the . The document is generated in the planning phase and it is an amalgamation of
implementation steps and organizes and
" An
implementation process into
manageable
strategic plan. resources other papers. It's much more than a schedule or task list, though both of those
things are included in it.
complete a company or project's
needed to bigger picture and how it affects
the
planning involves considering the Project management plan approval occurs at the outset of the project, getting
Strategic allocating resources and assigning responsibilities
to
organization and it is done by updated as the project moves forward.
realize the company's strategy. 1. Step 1: ldentify allStakeholders
implementation plan follows the edges of the
the strategic plan, the 2. Step 2: Define Roles and Responsibilities
To carry out ways to implement it and
the most effective
strategic plan, mapping out 3. Step 3: Hold a Kickoff Meeting
into place.
Successfully manage it when it is put
processes and actions needed to carry 4. Step 4: Define Project Scope, Budget and Timeline
" Strategic planning combines the strategies,
5. Step 5: Set and Prioritize Goals
out a project. achieve a common oes
The strategic plan describes the steps that will be used to 6. Step 6: Define Deliverables
" incorporates elements such .
comprehensive and 7. Step 7: Create a Project Schedule
Project implementation is
budget, schedule and personnel. 8. Step 8: Do a Risk Assessment
" Project implementation involves the following elements : 9. Step 9: Communicate the Project Plan
1. Defining a clear set of goals and targets 1. Step 1 :1dentify AllStakeholders
2. An outline of deliverables, including task due dates
" Many of your project's stakeholders will be involved in only some of the project's
3. Process, team and stakeholder management plans
4. Tools for communicating
details.
Project management solutions are used to plan and draft implementation plans. " Project stakeholders include the project's customers, end-users, business leaders
However, this roadmap better suits this goal due to the long-term and complicated and the staff working on the project.
nature of implementation plans. " In some cases, stakeholders may be external organizations or individuals from the
Implementation plans should allinclude solutions for, community affected by the project.
(a) Task and sub-tasks
2. Step 2: Define Roles and Responsibilities
(b) Budgets
(c) Timelines " To correctly manage your project, you need to ensure you have all the project
(d) Resources (e.g., Collaborators, etc.) management skills and competencies.
2.3
2.2
 Planning andd
Implementlng Yoour
Business Project Management
can assign
them Prsle Business Project Management Planning and Implementing Your Project

Once you have

define their roles.
your list of
stakeholders, you

person.
responsiblitles ah 5. Step5:Set and Prioritize Goals
. Once your team understands the project's objectives and has identified the phases
role is not a
rememberthata multiple roles. such as having for achieving those goals,
vital to
person may filladditional work hours to a a
(a) It is

emergeny
cases, a single
(b) In some contact, whichadds a
few
different projects, you may find
person'dsecshigendautey
s
that project tean
(a) break the broad goals of your project into individual goals and tasks,
(b) prioitize tasks according to significance and dependency.
member roles will Forit's essential to assign vendor relations and custOme
vary, but
include:
usual roles (c) establish a system to ensure remedial action if goals are not reached in good time.
(c) The
" In consideration of your dreams, yoU may need to adjust your timeline.
relations roles. 6. Step 6: Define Deliverables
Meeting
a Kickoffoffers the opportunity to create a shared vision, introduc
Holdmeeting
The kickoff " Project Management Institute defines a deliverable as "any unique and verifiable
3. Step 3:
relationships among them. product, result, or capability to perform aservice that is produced to complete a
foster working process, phase, or project."
team members and on
include a discussion the project
if you planned to scope,
details budge
would help " In other words, a deliverable could be,
" It because no specific
meeting agenda have beg
timeline and goals in your (a) A Product (b) Result (c) Capability
point in the project.
decided at this the roles in the Project deliverables are a necessity in the project plan because the project's
process is used to explain project and the
When this happens, the objectives define them.
project communication. If the customer wants to provide the end-users with apiece of software that
The for
" plan kickoff meeting sets thetone for the working relationship among the projects
enables them to manage their content, like a user-friendly document editor and
together.
stakeholders and influences how they work training materials to assist them in using the software, the deliverables would
Budget and Timeline include that aspects also.
4. Step 4: Define Project Scope,
defining three main items: the
" The official start date should be followed by 7. Step7:Create a Project Schedule
scope, the budget and the timeline. " A project schedule documents the following:
" To fully explain each of these things would take up an entire article on its Own e (a) To make a project schedule, divide the phases of your project into individual tasks
we'll just give brief descriptions here. and activities, then determine the dependencies, sequence the activities, and
(a) Scope estimate the resources and time required for each job.
" The project scope defines what we're doing (and not doing). (b) You may discover changes in your timelines, budgets and roles while you go
" What are the goals of this project, given the wishes of the customer and the vision through this process.
laid out by the team? (c) It is a crucialcomponent of the process of writing a simple project plan, as well as a
(b) Budget valuable part of the project planning process. You'll want to make these
" What is the expected budget of the project, taking into account the scope and adjustments before starting the project rather than later on.
resources required to meet the project objectives? 8. Step 8: Do a Risk Assessment
(c) Timeline The probability of something going wrong in a project is always there and it is
" It lists the stages of your
project and the uncertain when it will happen.
duration you expect them tO take.
2.4 2.5
 Prolect
Planning and Implementlng Your Business Project Management Planning andImplementing Your Project
Business Project Management
project risks during
rude surprise, it's crucial to recognize and mitigate " The project will be worth the money spernt on it because of the information
To avoid a
later. gathered from this project analysis.
the planning phase rather than theirthoughts on the risks you
your team or solicit " For the sake of making the feasibility assessmernt process easier to comprehend.
" Put together a meeting with
should consider. we'l be looking at a Pine Valley Furniture project. Jackíe thinks this system will
include: make easier for PVF'S marketing team to track sales trends and activity on
" Risks to consider
customer purchases. She believes that the Customer Tracking System (CTS) Would
(a) Project Scope
and physical) improve revenue and boost morale, both tangible benefits and help maintain client
(b) Resources (personnel, financial satisfaction, which is an intangible benefit.
(0) Project delays
Communication " The PVF Systems Priority Board commissioned an initiation and planning study for
(d) Failures of Technology or disaster by planning this project.
potential risk, but you can avoid
" Youcan't account for every Assesslng Economic Feasibility
for them.
Project Plan Apreliminary project plan requires afeasibility stucdy of the financials aspects.
9. Step 9: Communicate the especially the Determining the financial rewards and drawbacks of a project helps decide whether
your project plan to all stakeholders,
" It is essential to communicate or not it will be a success.
team, once you have put it together.
something you may have done while Many economists say that cost-benefit analysis (CBA) is a critical element of
Creating a project communication plan is economic feasibility.
making your project schedule.
project communication is setting clear " The precise value of all benefits and costs relating to a particular project cannot be
" One of the most important things for
channels and expectations.
determined at the start of a project. However, you need to identify and quantify
communication you expect from all stakeholders benefits and costs to do a proper economic analysis and compare project
" Make Sure you model the kind of
as a project manager.
feasibility.
Prepare review worksheets that you can use to keep track of expenses and benefits,
2.3 Assessing the Feasibility of a Project
are funded and constrained by as wellas techniques for calculating costs and benefits.
" Alarge percentage of information systems projects
budgets and deadlines. Determinlng Project Benefits
Conducting afeasibility assessment is atask that must be completed, but as it " Information systems offer aplethora of benefits to businesses.
demands that you evaluate numerous variables, it can often be a time-consuming (a) In this regard, for example, an updated or rebuilt IS can automate tedious jobs,
undertaking. decrease errors, supply lients and suppliers with innovative services and make the
While the specifics of a project will influence which factors are most important, the organization more efficient, fast, flexible and even more motivated.
following six categories generally pertain to project feasibility. Some industries are These benefits are both easily identifiable and difficult to describe.
so complex that management needs to deal with issues such as (b) There are obvious other benefits such as decreased employee costs, lower
1. Economic, 2. Operational, 3. Technical, transaction costs and higher profit margins.
4. Schedule, 5. Legal and contractual, 6. Political problems. While some tangible benefits can be quantified, others cannot.
2.6 2.7
 Planning and Implementing Your Project
Business Project Management Business Project Management Planning and Implementing Your Project
Example that gets System related Development Costs
calculate the money saved by a company
" It may not be easy to accurately There are a few primary types of " In addition to tangible and intangible costs, systern-related development costs can
of the time.
percent
to complete half of its task 50 be divided into one-time and recurring
tangible benefits: expenses.
activity, " A one-time fee is associated with starting the project and implementing the
(a) Expanded flexibility, (b) Improved speed of
(d) Control enhancements, system.
(c) Management planning,
" The costs involved typically include:
(e) Improved sales prospects.
Intangible Benefits (a) System development
or certainty,
easy to measure in terms of amount (b) New hardware and software purchases
" Many intangible benefits are not resOurces or waste
the conservation of
The improved morale of employees and (c) User training
benefits.
reduction may be the direct results of intangible (d) Site preparation
consider the potential intangible benefits
To get a project started, it is necessary to (e) Dataor system conversion
stage in the project life cycle.
that cannot be measured in monetary terms at this " To make sure that all your expenses are accounted for, you should create a
benefits of the intangible aspects of
Later stages are where you can see tangible spreadsheet. This worksheet is capable of being a two-column or multicolumn
implications of your project design.
your system as you better understand the spreadsheet.
Other intangible benefits include; " Large projects may be broken up into yearly parts.
(a) Competitive necessity
One-time cost worksheets should be developed separately for each year in these
(b) Increased organizational flexibility cases.
(c) Increased employee morale
" If the project were split-up, it would be easier to perform present-value
(d) Promotion of organizational learning and understanding calculations.
(e) More timely information
Recurring Costs
Project Costs
must be
" Once project benefits have been ascertained, the project's costs " The cost of running a system on an ongoing basis is known as a recurring cost.
discovered. Typical examples of these types of expenses include:
Figuring out the project budget even information systems with intangible expenses (a) application software maintenance,
can have an actual price tag. (b) incremental data storage costs,
Any physical payment is something you can quantify in terms of money and with (c) incremental communications costs,
total certainty. (d) new software and hardware leases,
" When one considers the costs from a systems development standpoint, these
include things like hardware and labour expenses and operational costs incurred by (e) consumable supplies and other expenses.
Fixed and Varlable Costs
employee training and building renovations.
" Anebulous cost is one you can't put a price tag on, or you're not sure how much it Fixed and variable items can be both one-time and recurring costs.
will cost. " Cost estimates billed or incurred at regular intervals, such as at a fixed rate, are
Costs that are difficult to measure can be intangible, such as a loss of customer known as fixed costs.
goodwill, employee morale, or operational inefficiency. " Afixed cost can be seen in the form of a facility lease payment.
2,8
2.9
 Project
Planning and Innplementlng Your
Business Project Management Business Project Menagement Planning and Implementing Your Project
used.
on how much is
Varying costs are expenses that fluctuate based 2. Second Step :Evaluate the Risk
expense.
Long-distance phone fees are an uncertain feasibility rely on the time value
of Once an identified risk has been explored, it is evaluated.
used to gauge economic
" Most methodologies " Risk assessment is necessary to determine the size of the danger.
the money concept (TVM). conmpared to expected returns Understanding the relationship between risk and the organization's various aspects
use of cash payments today
" The TVM relates to the isalso critical.
in the future. involved in creating an A risk's severity and significance can be established by exarining how many
and recurring expenses
There are both one-time operational functions it affects.
information system.
The Risk While there are risks that will have disastrous consequences, there are certain other
2.4 ldentifying and Managing risks that willonly cause minor issues.
Risks
1. First Step : Identifying becomes areality,
minimize the effects of a risk that " The study of risk management in manual environments is done manualy.
" A prepared company can satisfaction.
and customer After implementing a risk management solution, mapping risks to various
including losses in earnings, productivity
significant part of strategic business planning is documents, policies, procedures and business processes is an essential first step.
" For companies of all sizes, a
knowing the risks. Since it already has a pre-mapped risk framework in place that evaluates risks and
" Several methods are used to identify risks. business activities
lets you know the far-reaching effects of each threat, the system will be a helpful
looking at a company's particular tool.
" Identifying these risks requires
in-depth. 3. Third Step: Assessor Prioritize the Risks
most organizations, several others can be
" Even with all the possible threats facing Risks must be prioritized and ranked.
them.
thwarted by applying, transferring, reducing,or getting rid of There are different categories of risks within most risk management solutions and
Physical Risks each risk category corresponds to the degree of risk involved.
(a) Common physical risks are building risks. " Apossibility that may cause some trouble is rated less severe, while chances of
(b) Conjure up scenes of fires or explosions. total catastrophe are rated as most powerful.
buildings,
Organizations must do the following to address the threat posed by their Organizational risk assessment is necessary to understand the full scope of the
as well as to safeguard their workers:
emergency organization's risk profile.
(a) All employees must know the exact building address to provide to
Management may not be needed for a couple of small risks that face the business.
operators in an emergency.
(b) All workers must be aware of the locations of all exits. " While many high-risk factors may need to be addressed, it only takes one of the
(c) Ensure that fire alarms and smoke detectors are in place. highest-rated risks to demand immediate attention.
(d) To protect the physical plant, equipment, documents and of course, personnel, 4. Fourth Step : Manage the Risk
install a sprinkler system. Every possible risk should be removed or mitigated to the greatest extent possible.
(e) Make it clear to allemployees that their safety is a priority over everything else in You connect with field experts to accomplish this.
the event of an emergency. Workers should be ordered to exit the building and " To get things done in a manual environment, you need to meet with every
throw away all documents, equipment and products related to their jobs. stakeholder and explain the situation to them.
2.10 2.11
 Wennáng n unlenenting

Planning and Implementing Your Project

BusinessProjectManagement sattered
discussion is Buslness Project Management
the
concern th¡t losing your share of the market,
" is
a
phonecalls mechanism for syern Not knowing about your competitor can lead to
spreadsheetsand provides a damage, being unaware
solution riskand being oblivious to financial losses can result in economic
managemernt discussthe
Arisk stakeholders Wecan of safety hazards will give rise to accidents and so on.
small businesses may
serttoa posstble Large companies have risk management departments, while
the system can monitor the have just one risk manager or a small team.
managemert systern, oversee their business and its
Highe occUrringwthinthe Risks are managed by business leaders who
SUCCErses that are to receie within the company and look at
allows al Users environment. They examine the processes used
solution pesk
" nsed
the longerneed to outside influences that could affect the company positively or negativeBy.
systemsotheynio an advantage.
marageet Acompany that can accurately anticipate a hazard will always have
on its finances by
progres
andEvaluate
the Risk " If abusiness can accurately predict a financial risk, it will focus
Fh Step: Monitor cormpletety investing conservatively.
5. impossibile to get rid of one er2mplee cf
Some ris ae enviormertalfsks arejust the rrary risk: Companies can achieve a competitive advantage by creating ways to work safely.
marte and
For businesses, the racecourse is littered with potholes and the winner
Montoring the one
"
tamust be done eguay worhers. Thee professioras who avoids the pitfalls.
sstems use vigiart evaluate their
" Wana cortrol " A risk management process is used to identify all possible potholes,
depths and devise appropriate strategies to prevent damages.
monitors the entíire rísk frarmewot f the
r e rsc

" Arst
maragement sytem organzator Asmall pothole can be avoided with a lower speed, but a large pothole must be
ra dgtal envorert avoided entirely.
inenediaey
changes, itsnoticeable to everyone
" Fanynng in thedesign contiuousiy moritoring ride The degree of risk and the likelihood of risk can help businesses plan effectively.
drertage of
" Comptes aso heve the " If companies comprehend the risks that impact them, they will recognize which
cOmgarson to peope threats are the most significant and should receive the most attention and
rsks at reguar iteva's
*or bsiress can aiso ersure continuity by trackng resources.
24.1 Risk MManagement Businesses can avoid losses by being proactive and dealing with vulnerabilities
" Arst marageert strategy is 2 valuable busness pracice that esss businesser before they actually occur.
n reogrizng Sessing and mitigating busness riss n ter operatioral 2.5 Managing a Project
envroert
1. Define Project Scope
" Erterprses creze written procedures for maraging risk, nhle Smal companies Any project in the project initiation stage starts with this step.
ray se ore roma methods You will discover what you want to accomplish in the course of your project.
" Comçens need to sere their fuure success The managemert potenta " Ensure that the project objectives and any important issues not included in the
Dsress ss is itegra to the success of this stabity. Scope are clearly defined.
" A oganzato may suffer iossesis people are unaware of the dangers that
" To ensure the details don't get lost, it's best to write everything down on paper or
in adigital file.
212
2.13
 Project
Planning and Implementing Your Business Project Management Planning and Implementing Your Project
Business Project Management
implement your
larger picture to consider how you might 6. Assign Work to Suit Available Resources
" You can look at the you should
short-term, In the initial stages of your project, . You are not required to do all the work if you are a team lead,
project's ideas in the project manager, or
businesS OWner.
complete this step. and then
project scope, start by aiming for the overall project . Delegate responsibilities to your tearm to allow you to concentrate on the oversight
As you devise your
narrow down your project focus. stakeholders and explore any and management of projects.
the CEO and any other
Share your project details with " Have your team members perform tasks that best suit their talents and capabilities.
ideas that arise. . Study your group'sabilities and use them properly to your
Things advantage
2. Know When You Have to Do 7. Record Everything
timeline of the utmost importance.
is
" Knowing your project " Agood memory is excellent, but you still need to track the project details from
finished?
(a) When will your project be beginning to end, or you may miss something.
you plan to work on each project?
(b) How long do questions. Every record is secure to keep.
answer these
" At this point, you will need to each
project plan, you may think about how long . You should keep a log of any alterations you make to your projects or additions to
" When you first draft (devise) your inflexible. the project's requirements to stay on top of things.
typically
task willtake, however, the project deadline is
Resources Review your project before the project's final delivery date to maximize your score.
3. Assess Your Available
available resources. 8. Keep a Close Eye on the Projet
" When starting the project, consider your
[Link] machinery is imperative " Ensure to monitor your project tasks, deliveries, team and any other factors that
" Analyzing the available workforce, capital,
implementation. That said,
toassess the extent of any problems in your project's may affect your project when it begins.
rare.
the situation of direct controlover your resources is likely to be 2.6 Setting Up aProject Database
" Since people are unique, their performance may vary from
project to project.
Database management systems, or DBMSS, are essential for the operation of
Aproject manager must identify and mitigate all the risks and shortcomings in the various industries.
project. " The business community uses database management systems to store and
" It might be time to try out some apps that handle risk management. organize information on both its operational needs and its marketing efforts.
4. Come up with a Project Plan
Quick and easy access to information saves time for retrieval and allows those who
" Run the first three steps of your project by getting feedback from the top
management. It includes project scope, project timeline and resources. need it to use it without delay.
1. Requirements
" Your project schedule, task workflow, critical path and network diagram are all
included in the project plan. Accomplishing a successful database management system demands that the
5. Communicate with the Team programmers and designers confer with all the stakeholders involved in the
" Once you have your project plan approved, call a meeting with your team to operationof the system to determine how it will be used. It is a critical part of how
discuss details about the project. data willbe stored and retrieved.
The meeting management software makes it easy todocument meeting minutes, The programmers must consider the kinds of data used and the storage limits and
assign meeting attendees and set-up recurring meetings. any other kinds of limitations and restrictions on its implementation.
2.14 2,15
 Planning and Implementing Your Project Buslness Project Management
Business Project Management Planning and implememting Your Project
ones, such as a
manages data, while more complex Example
Any simple client database relationships to define data, .A medical database might present several possible
more complex
medical records database,may utilize to represent the relationships diagnoses and treatrmeits to
characteristics or values in common medical professionals or nurses when they add a list of
" Such models use symotorns or conditions.
The possible treatments and causes may shift as a
between data. sign is altered or a new varnabie
is added.
2. Models
used and any
first understand how it will be Apolications are limited by the capacity of the computers they run on.
To begin designing a database,
restrictions or requirements it must meet. 4. Troubleshooting
need
a database management system, you'll
" Ifyou're thinking about implementing which design works best
Vou'll need to run the system through a series of tests to ensure
that it meets your
programmers to determine
to discuss your options with Specific requirements before you start using it.
for your company. Although there is no definíte formula for this, you can get through it
information is dependent on the model efficiently if
" The logic system used to save and retrieve Vou make a list of items to test.
that you apply. 2.7 Creating An Effective Work Schedule
information and represent the
Logical operations occur when the database receives 1. Collect Input
"if, then" functions of the database management system.
the data models (i.e.; hierarchical " It's critical to read through the project statement before
" One of the differences between the two kinds of you begin your work, as it
hierarchical models constrain information will clarify the project's goals, stakeholders' expectations, resources
data models and network models) is that and projected
based on a few relationships. timelines.
. If there were any risks identified during the project initiation stage, look
" In contrast, network models permit data to be accessed using a range of paths. back over
" You will pick amodel that's easy to understand for your users, as well as adaptable them so you can figure out how much extra time you should add to your schedule.
to changing systems. " Youshould follow-up with the proposed team to determine who is in charge of the
3. Implementation deliverables, scheduled tasks and key phase timelines.
" If you have adopted the model you wish to use, the database system . You should also ensure that team members aren't currently engaged in any
other
implementation can occur. projects, as this may restrict their availability.
" One of the most time-consuming phases of a database creation process is its 2. Set Targets and Develop Stages
database implementation. " This information will help you plan critical milestones and phases of the project.
" The development of your data tables depends on the logic you choose to " Milestones serve a vital role in measuring project progress and encourage team
implement.
members to continue their efforts.
" Either by hand or by importing it, data must be entered into the database.
" Information can include names, addresses, pictures, graphics and even sound. " Having smaller, more attainable goals along the way makes a big project seem
To define how your data will be retrieved, you need first to create and populate the more doable.
data tables using the appropriate commands. 3. Break Down of Work
" Arelationship determines how the data is accessed, making it the
essential Develop your Work Breakdown Structure (WBS) by getting a comprehensive view
characteristic of the database. of deliverables, essential tasks and milestones.
2.16 2.17
 Your Project
Planning and Implementing Business Project Management
Planning andImplermenting Your Project
Business Project Management
tasks, which E The Critical Path Must be
proposed work into smaller Constructed
Breakdown Structure (WBS) divides Critical path charts determine the fastest route of
Work increments. finishing a project by highlignting
example, in two-week
are time-boxed, for efficiency as a specific path through every task. It's vital in keeping
task. It will increase accountability and the project on track and
runs every scope creep under control.
" A single individual it quickly and easily.
determine if a job is too large for one person to finish . If you want to identify the critical path, you should
youcan owner. examine the start and end dates
project stakeholder or
unsure about anything, ask the for each task as well as dependencies.
" Ifyou are
WBS document while presenting
provide your team with the 6. Estimate Resources
" You may choose to stakeholders.
the high-level project timeline to your . To ensure resource availability, you should
compare the critical path and WBS with
Group Tasks into Categories any estimates the team gave you earlier.
4. be taken.
timeline that lists all the steps to Conflicting resource allocations and project calendars are two elements to check
After that, construct a
sure to check the settings to
project management software, be It basically includes:
" If you are utilizing
to date. (a) The time spent on activities that are not
make a schedule and keep it up project-related.
identify the dependencies
out your tasks, remember to (b Holiday breaks and vacations from work.
" When you are mapping
between tasks and milestones. ( When combined with other responsibilities and actual
activity is reliant timeframe versus one
created when a task, milestone, or dedicated to complete a task.
" A project dependency is
completed before it can begin or
(dependent) on another task or milestone being (d) Ability of the team and the team members.
be completed. (e) The outsourcing deliverables' requirements.
" You will want to look for four key dependency types: 7. Identify and Document Risks
(a) Required Dependencies " As you work through the project initiation and planning steps outlined above, you
example, code modules can't be tested
" They are logic-based dependencies. For are likely to run into issues like task dependencies or the allocation of resources
until they're written. that conflict with one another.
(b) Resource-based Planning Dependencies Please document any assumptions that may affect timelines and then revisit the
" If you had more resources, these tasks could be acComplished faster or sooner. risks to make sure they haven't changed.
(c) There are tasks in the project that could be rescheduled, but the project manager " Senior stakeholders may be slow to provide crucial feedback and this can be
has chosen this order. predicted.
(d) External Influences " Add some contingency, for example, an additional 20% to the overall timeline,
" External influences (factors) outside the project team's control must be accounted using this information.
for in the project timeline. Before proceeding, check with your co-workers about risks and review
Completing a project milestone dependent on another project's completion is an documentation from previous endeavours similar to yours within your
organization.
example of an external dependency (external influence).
2.18 2.19
 Proje
Planning and Implementing Your Business Project Management
Business Project Management Planning sndImplementing Your Project
2.8 Monitoring a Business Project
8. Formulate the Project Timeline . It is always necessary to
follow-up on the projects' activities and progress.
" It incudes the following elenments : The control function can be seen at all stages of a
resource breakdown with
assignments.
" Asmaller project doesn't
project, from start to finish
(a) Led the task and dependencies. require the same level of supervision as a larger
that included identified Larger projects tend to necessitate Project project
(b) Developed a schedule Management because their project
(c) Determined the key path.
managers require a more formal systerm of monitoring and
processes.
controlling the
required.
(d) Estimates of the resources . The individual will not be directly
(e) Identified the main risks and assumptions. involved in any project work with significant
Your Team projects.
Re-Examine and Re-assess with
9.
step back and check for " It is ital to control project work
with the team, it's crucial to because it is possible to complete it on time but it
" After reviewing your plan may fail to meet'quality requirements.
the following:
errors or adjustments. It includes Your project has had its scope increased, but it's
with the work schedule? gone way over budget and
(a) Does the budget line up deadline.
every task?
(b) Is there someone in charge of To steer the project in the right direction, the
project manager must balance the
candidate for this task? needs of various areas of knowledge to monitor and
(c) Who would be the best control project work.
potential risks?
with enough time to manage " It is common for project
(d) Have you provided yourself managers to create their own project performance
expectations, it may be necessary to measures or use existing organizational measures to identify their
Depending on the schedule and stakeholders' progress.
deal with the triple constraints of time, quality and
cost. The project manager must track the project's
performance by monitoring every
will yousacrifice quality to do so? other step they have created or used for the project.
(e) Are you willing to meet the deadline, or
the standard? 1. Change Requests
() Can the quantity be reduced while maintaining
where to strike abalance and then Changes are bound to happen. No matter how carefully a project manager plans a
(g) You and your team must now or later decide
project, they will encounter changes as the project unfolds. These
document your decisions. new projects
were added as supplements to the existing ones.
10. Regular Evaluation
Policies and procedures for the project may also be changing.
" You will probably have to deal with schedule delays and other disruptions when the 2. Preventive Action
project begins. The plan should be revised periodically to accommodate these Whereas taking corrective measures is reactionary, taking preventative
realities. measures is
proactive.
" You can do this with project management software with automated notifications " Dealing with potential deviations from the performance measurement baseline is
and project dashboards to help keep everyone informed about any changes. part of the larger picture.
" Stakeholders should be informed of any significant revisions to keep everyone in " More advanced knowledge of project management
frameworks is needed to know
the communication loop. when to take preventive actions, which are less precise than
corrective actions.
2.20 2.21
 YourProl,..
Planning and Implementing Business Project Management
Business Project Management
Planning an implementing Your Project
include: .AChange Managernent Plan is usually
" Preventive measures the acceptance criteria, made
made to pursue the organization's objectives up of provisions for changes to be
not meet
their products almost did
(a) Change a seller when specialized tasks to have everyone
cross-trained to Here are a tew key issues to keep in
team members' membere mind as you develop your change
(b) Redistributing certain technical staff management plan:
of illness or absenteeism among
control will also apply to an
work in the event 1 Distinguish your primary
Implementation Regulatory changelog. It will be employed to record and monitor all
(c) Integrated Change changes in your pertormance to track your progress over time.
remedial actions. management plan, baselinec Who are the memberS of your change
measures could update the project control team? People in this group will be
" Preventive
statement of work. responsible for accepting or rejecting each change request.
procedures, charter, contract, or 2 Make a single change request
document available. To standardize all change
3. Defect Repair requests, this will be used.
known as rework. .To start, we must first do the following six steps to
" Defect repair is also project component fails to mees create a change management
may be submitted if any
" A defect repair request plan:
specifications or output targets. management plans 1 Step 1:Identify the Change and Connect it to
necessitate adjustments to project . One thing is to articulate the changes needed
Company Goals
A defect repair may charters, or statement of work clearly, but the completely different
contracts,
baselines, policies, procedures, required. thing is to conduct a critical review against your organization's
documents, for this Perform Integrated
Change Control Process is andethical goals to make sure that your business is heading in financial, strategic
the right direction.
2.9 Managing Change
implementing and executing a
Additionally, this step will help you determine the value of the change, which will
" A change management plan
is a framework for aive youa better idea of how much effort and money you should invest.
concrete steps the
made up of an outline of the
change management process. It is 2. Step 2: Work out the Impacts and Those Involved.
company will take. " Once you understand precisely what you want to accomplish and why it is
possible
plans to deal with changes to their
Businesses employ change management to consider, then it is necessary to plan how to get there.
workflow. " After that, you can assess the effects of the change in various parts of the
" It tells us the tools and processes
needed to make alterations to the environment organization.
via people management. Try tosee how your results affect every department and how they flow through the
the following:
" A change management plan should usually aim to accomplish organization towards you.
2. Facilitate Communication Once the data is compiled, it will begin to paint a picture of the various support
1. Provide a Case for Change
3. Manage Resistance 4. Show Progress and training resources required to minimize the consequences of the
Provide Reinforcement transformation.
5. Manage Implementation Barriers 6.
Steps of Change Management Plan 3. Step 3: Make aCommunication Strategy
" A multitude of things exists beyond the influence of humanity. Individuals and Each employee should be invited to participate in the change process.
groups need to come up with ways to cope with these changes. " Make sure your employees or teams have the tools they need to get on board.
" One excellent method is to develop a change management plan that guides you as " It is essential to have a timeline and key messages in place before you begin
you put into place your differences. communicating about the change.
2.23
2.22
 Planning andImplementing Your Prola. Auglness Project Management
Business Project Management
Planning and Implementing Your Project
Effective Training A. Empowerment Through Action
4. Step 4: Provide Should be mad
the change; your employees
Once the word has spread about or structured, to help thex tincludes the process of eliminating
will be given training, either informal impediments.
aware that they
new role as the change is
rolled out. Acknowledge the value of constructive criticism as it allows you to
become more efficient in their face-to-face training sessions an. organization's weaknesses into strengths. make all of your
online learning modules or ablend of
Arange of is also possible to
to the training. energize your workforce by showing
on-the-job mentoring can be added progress and accomplishments as you move through appreciation for their
Framework the change management
5. Step 5:Apply Support both practically and
" It is essential to provide a framework to support staff, proces
circumstances. 2.10 Addresssof Problems
emotionally, in adjusting to changing
the experience they need to have more effective f we identify common problems in our
" In addition, it help them gain projects, we can look for ways to head off
their objectives efficiently. problems before they begin.
behaviour, which is essential to accomplish positions, you coula
supported as they transition to new . Some common Project Problems are as follows:
" To ensure employees feel
or a peer assistance programme.
establish an open-door policy with management 1. The project objectives and scope are unclear.
Process's Impact
6. Step 6: Determine the Change Fstimates for time and cost goals are unreliable or unrealistic.
process, a suitable framework must be
When implementing a change management 2 Projects are affected by changing business needs or
technology.
changes and ensure that the
employed to quantify the business impact of A The people working on the project are incompetent or
competencies over time. unmotivated.
organization is prepared to reinforce new
change management plan to ascertain its 5. Conflict-management procedures are inadequate.
Additionally, you must evaluate your
effectiveness and record any learnings. 6. Communication is poor.
2.9.1 Tlps on Chasing Successful Change Management 7. Suppliers fail to deliver as promised.
8. The sponsor or senior manager is not very supportive to the project.
1. Feeling of Encouragement
To achieve a quick adaptation to organizational changes, motivate your employees. 9. The project manager is an inexperienced person inmanaging people, working in a
Suggested goal setting will make it clear that this is an essential shift for everyone. particular organization, or understanding the application area of the project.
2. Forming a Vision 10. Many of the project's key stakeholders, such as customers who would use the
" Craft a strategy that is appropriate for your team. product and services the project is attempting to produce, have not been
" To make a long-term strategy and vision work, you must have adetailed vision of sufficiently involved in project decision-making.
change. " It will be easier if you break these problems down into tangible categories that
3. Building Companionship Between the Team pertain to you and your project.
Ensure that you have the right employees so that your team will adapt to the " We should always bear in mind that project success is directly linked to project
changes easily. manager competency.
You'll want to invest time in helping your team come together so that they can While it may seem like a common idea, it is crucial to distinguish a project
comprehend the need for such changes and process them collaboratively.
manager's strengths from the challenges presented by the environment.
2.24
2.25
 PlanningandInplementing Your Prolers Buslness Project Management
Business Project Management
project environment and determine what you can Planning and Implementng Your Project
Before beginning, reflect on your something, thas 1dentifying and Managing the Riske
Even if you cannot directly control
control and what you cannot. will still be possible to shape
it. To 1. First Step :ldentifying Risks
responsible for it. It
doesn't mean you aren't and rely on your suppom Second Step: Evaluate the Risk
areas, you'llneed to be creative
2.
impact outcomes in these
3, Third Step : Assessor Prioritize the Risks
network. technical
skills as a project manager can be evaluated on a A Fourth Step : Manage the Risk
" On the other hand, your cifth Step: Monitor and Evaluate the Risk
visioning, facilitation, motivation). 5.
or management level (e.g. skills relate to these issuee Managing a Project
yourself how your hard and soft
You can start by asking coordinator ta
information to find a skilled project 1. pefine Project Scope
You may benefit from using this
2. Know When You Have to Do Things
partner with you. procurement
" To avoid working with vendors
you cannot get to knOW; your 2 ASsess Your Available Resources
establish supplier controls. If you use
organization may contact them early to indirectly, you can 4 Come up with a Project Plan
outcomes
Oversight and monitoring to impact vendor E Communicate with the Team
accomplish this effectively. 6 Assign Work toSuit Available Resources
Points to Remember
management tool that breaks down the
7. Record Everything
" An implementation plan is a project g Keep a Close Eye on the Project
manageable steps and organizes teams and resources
implementation process into
Creating an Effective Work Schedule
needed to complete a company or project's strategic plan.
1. Collect Input
Developing a Business Project Management Plan
2. Set Targets and Develop Stages
1. Step 1:Identify All Stakeholders
2. Step 2: Define Roles and Responsibilities 3. Break Down of Work
3. Step 3:Hold a Kickoff Meeting 4. Group Tasks into Categories
4. Step 4: Define Project Scope, Budget and Timeline 5. The Critical Path Must be Constructed
5. Step5: Set and Prioritize Goals 6. Estimate Resources
6. Step 6: Define Deliverables 7. Identify and Document Risks
7. Step 7:Create a Project Schedule 8. Formulate the Project Timeline
8. Step 8: Do a Risk Assessment 9. Re-Examine and Re-assess with Your Team
9. Step 9: Communicate the Project Plan 10. Regular Evaluation
" Conducting afeasibility assessment is a task that must be completed, but as it " A change management plan is a framework for implementing and executing a
demands that you evaluate numerous variables, it can often be atime-consuming change management process. It is made up of an outline of the concrete steps the
undertaking. company will take.
2.26
2.27
 Planning andImplementing Your Project
Business Project Management

Steps of Change
Management Plan Company Goals
Chapter 3.
the Change and Connect itto
1. Step 1l:ldentify and Those Involved.
Work out the Impacts
2. Step 2:
3. Step 3: Make a
Communication Strategy
Effective Training
Business Project Management
4. Step 4:Provide
5. Step 5:Apply
Support Framework
Change Process's Impact
Techniques
6. Step 6:
Determine the
projects, we can look for ways to head Of:
identify common problems in our Contents .
" If we
problems before they begin.
3.1 ldentifying Organisational Structures
Questions For Discussion
Plan. Describe the various Steps involved in
1. Explain Business Project Management 22 Estimation of Costs and Budget
Management Plarn.
Developing aBusiness Project g3 Using CPM Tools (Gant Chart, WBS, Project Network
Identifying and Managing Risks ? Diogram)
2. What do you mean by
Managing a Project. 3.3.1 Gant Chart
3. Explain the Process of Schedule.
of Creating an Effective Work
4. Discuss the Process 3.3.2 WBS (Work Breakdown Structure)
Management Plan.
5. Explain the various steps of Change
the Feasibility of a Project ? 3.3.3 Project Network Diagram
6. What do you mean by Assessing Project Database ?
Project and Setting up a 3.4 Establishing the CPM
7. What do you mean by Managing a
8. Write Short Notes
3.5 Implementing PERT Tool(Program Evaluation and Review Technique PERT)
(A) Planning and Implementing aProject
(B) Risk Management 3.6 Using Process Improvement Tools (Fishbone, SIPOC)
() Setting-up aProject Database " Points to Remember
(D) Tips on Chasing Successful Change Management Questions for Discussion
(E) Address of Problems
(F) Managing Change Learning Objectlves..
(G) Monitoring a Business Project After reading this chapter, the students should able to understond:
" About Orgonisational Structure
" About various CPM Tools

" The concept of PERT

" The concepts of Improvement Tools such as Fishbone, SIPOC etc.

2.28 3.1
 Technlgue. Business Project Management
Business Project Management Business Project Management Techniques
Business Project Management reduce time to
e To complete a project, the project manager might
Introduction structure, control
more workers which would
increase costs. decide to employ
management is all about
sUstainable and successful project . The planning, control and coordination of all
" The
sufficient attention to detail
and continuously driving
action. motivation of all thoseinvolved in it is necessary inaspects of a project and the
objectives successfully. order to achieve the project
manager is very important. ensure that project in
The role of the project
on to apply its structure and " As a discipline, Project management
" Project manager
is focused developed from several different fields of
time and cost required. application, including military projects,
sUCcessfully completed within the planning and coordination of a construction, mechanical engineering, etc
concerned with the overall " As a discipline Project management has huge SCope.
Project management is client's requiremente
completion aimed at meeting the e In the
United States, the forefather of Project
project from inception to required quality standards. lledas the father of planning and control management is Henry Gantt., he is
time, within cost and to
and ensuring completion on consultant or an techniques. He is also famously known
management is typically carried out either by a private for his use of the "BAR" CHART as a project
Project oriate of Frederick Winslow Taylor's management tool, for being an
employee of the project client. Estimation of cost theories of Scientific management and for
process of Resource planning, hie study of the work and management of Navy ship
" Project management is the building.
His work has given contribution in modern Project
Budgeting of Cost and Cost control. management. His work is the
knowledge, skills, tools and forerunner to many modern Project management tools, including the
focused on the application of
" Project management is Work
order to meet the requirements of the Rreakdown Structure (WBS) and resource allocation.
techniques to abroad range of activities in
. The 1950's is also knowWn as the beginning of the
particular project. modern Project management era.
undertaken to achieve a particular aim. Anain, in the United States, prior to the 1950s, projects were
" Aproject is a temporary endeavour managed on an ad
practices are best described in terms of their hoc basis using mostly Gantt Charts and informal techniques and tools.
" Project management knowledge and
placed into five Process Groups:
component processes. These processes can be " At that time, two mathematical project scheduling models were developed:
Initiating, Planning, Executing, Controlling and Closing. 1 The "Program Evaluation and ReviewTechnique" or PERT, developed as part of the
achieving targets while
Project management is the discipline of defining and United States Navy's Polaris missile submarine program; and
be
optimizing the use of resources (time, money, people, space, etc). Thus, it could 2 The "Critical Path Method" (CPM) developed in ajoint venture by both DuPont
classified into several models: time, cost, scope and intangibles. Corporation and Remington Rand Corporation for managing plant maintenance
Project management is the action of managing aproject. It involves many activities, projects.
from scheduling to communication. This is concerned with managing the resources In 1969, the Project Management Institute (PM) was formed to serve the interest of
needed to ensure that a project is finished on time and within budget and to the the project management industry.
satisfaction of the end user. In 1981, the PMI Board of Directors developed the Standards and norms. Further
" Project managers use tools such as CPM, PERT and Gantt charts, Networking which Guide to the Project Management Body of Knowledge. It is containing the
Diagram, etc. for scheduling all the tasks that need to be completed. They are standards and guidelines of practice that are widely used throughout the
conscious of managing time, scope and resources for a project. profession.
3.2 3.3
 Auslness Project Management
Business Project Management Technlques
Business Project Management
Business Project
Types/Forms Formal Organisatlon Management Techniques
Struetures
3.1 ldentifying Organlsational There are several types of formal
are working for the common organisation based on their structure, which
Organisation refers to a collection of people who discussed as follows:
are
vision, goals and objective.
organisation is a place where people assemble 1. Line
" In other words., it can be said that Organisation
and duties towards fulfillino
together and perform different sets of responsibilities
the organisational objectives and goals.
5. Matrix
2. Line and
Organisation Staff
Categorles of Organlsation Types of
Fomal Organisation
which are: Organisation
" There are two broad categories of organisation,
1. Informal Organisation 2. Formal Organisation
4. Project
1. Informal Organisation Organisatlon ([Link]
Organisation
" Informal organisations are those types of
organisations which do not have a

defined hierarchy of authority and responsibility. Fig. 3.1: Types of Formal

(a) Line Organisation
Organisation
based on
" In such organisations, the relationship between employees is formed
.line organisation is the simplest organisation
common interests, preferences and prejudices. structure and it is the oldest
organisation structure.
2. FormalOrganisation . It is also known as Scalar or Military or
Departmental type of organisation.
" Formal organisation is that type of organisation structure where the authority and . In this type of organisational structure, the authority is well defined and it
flows
responsibility are clearly defined. vertically from the top of the hierarchy level to the managerial level and
The organisation structure has a defined delegation of authority and roles and subordinates at the bottom and continues further to the workers till the end.
. There is aclear division of accountability, authority and responsibility in the line
responsibilities for the members.
organisation structure.
" The formal organisation has pre-defined policies, rules, schedules, procedures and
Advantages of Line organisation are : Simple structure and easy to run, Instructions
programs.
and hierarchy clearly defined, Rapid decision making, Responsibility fixed at each
" The decision making activity in aformal organisation is mostly based on pre level of the organisation.
defined policies. Disadvantages of Line organisation are: It is rigid in nature. It has a tendency to
" Formal organisation structure is created by the management with the objective of become dictatorial. Each department will be busy with their work instead of
attaining the organisational goals. focusing on the overall development of the organisation.
3.5
3.4
 Ausiness Project Management
BusinessProject Management Technlqu
Business Project Management
Business Project Management Matrix Organisation Techniques
(b) Line and Staff Organisation improved version of the line organisation. . Matrix organisation is the latest form of
Line and staff
organisation is an
functional specialists are
added in line. functional and project organisation. organisation that is a combination of
organisation, the such organisations, there are two lines of
" In line and staff target effectively. e In
the line members in achieving the organisation and project authority. the functional part of the
assisting making is possible
vertical and horizontal flow management
" The staff is for divided that is why easy decision There part of the organisation and
" In this structure, work is of authority, they have
isgreater coordination
between staff and worker.
to employees. But .
provides growth and opportunity between line and che
Since the matrix organisation is a respectively.
combination of furctional and project
This organisation structure management tearns, there is an
may arise improved
distribution of authority, conflict horizontal functions. coordination between the vertical and
to the improper
members.
suggestions to the line members and
decision is taken
by Conlovees are motivated as everyone will be vworking towards one
Staff members provide ignored. to the presence of project.
staff members feel vertical and horizontal
line members, it makes the increased cost and paperwork. communication, there wil be
(c) FunctionalOrganisation
of organisation where the task t uaving multiple supervisors tor the workers leads to
Functional organisation structure is the type confusion and difficulty in
as per the function they control.
managing and directing the employees is arranged Io Project management, organ1zational
specialise. structure is used to determine the hierarchy
of members : line members, stak andauthority of people involved in a specific project.
In a functional organisation, there are three types
the accuracy of the work.
members and functional members. It helps to improve .The structure defines each team member's function and the reporting lines on a
improvement in product quality. chart for team members to reference during a project
Due to involvement of specialists, there isan
achieve coordination amonn
Functional organisational structure is difficult to . There are three types of organizational structures in project
management
workers as there is no one to manage them directly. functional, matrix and projectized.
" Conflicts may arise due to the members having equal positions. " Each project structure framework is determined by the authority, roles and
(d) Project Organisation responsibilities of the team members within the existing organizational structure.
" Aproject organisation is a temporary form of organisation structure that is formed Organlzatlonal Structures In Project Management
to manage projects for a specific period of time. Organizational
" This form of organisation has specialists from different departments who are structures in
project
brought together for developing a new product. management
In this organisation structure, the presence of many specialists from different
departments increases the coordination among the members.
Each individual has a different set of responsibilities which improves control of the Projectized Matrix
Functional Project
process. Organizational Organizatlonal Organizational
Structure Structure Structure
There can be a delay in completion of the project.
Project managers may find it difficult to judge the performance of different Fig. 3.2 :Organizational Structures in Project Management
specialists. 3.7
3.6
 Business Project Management
Business Project Management
organizational structure will
Techniqu
be exactly
Ausiness Project Management

2.
Business Project
Prolectized Organizational Structure/Project - based Management Techniques
Because no two
proiets are alike,
no
Aproojectized or project-based
organizational Organizational Structure
structure creates a dedicated
division within an [Link] project
project c0ordination operates verticalhy
same. coordinator is vital. this division. under
manager and project frameworke
project of these Proiect managers
The role of
the project
manager changes withineach Jodicated staff who maintain sole authority for
work toward project goals. the project and are assigned
" The role of coordination of each framework annd th¡
the vertical or horizontal Chief Executive Oficer
Understanding help project to develop a
"
role that the project manager will hold can Successtu
Project
Project
strategy.
Project Organizational
Structure Manager - X Manager - Y Project
Manager -Z
1. Functional structure organizes its hierarchy
" A functional
project organizational around Project
Staff -X Project Project
traditionaly functioning departments. Staff - Y Staff -Z
and reports to an
heads each department executive
" Here a functional manager the project and
These functional managers
(not other staff) coordinate they selea Project
Staff - X
Project
Staff - Y Project
Staff - Z
support the project, iin addition to a
team members from each department to
Project
functional responsibilities. Staff - X Project
Staff - y
Project
Chlef Executlve Staff -Z
Offlcer Fig 3.4: Projectized Organizational
3. Matrix OrganizationalStructure
Structure/Project-based Organizational Structure
Functlonal
" A matrix organizational structure is set-up on a grid to demonstrate staff reporting
Functional Functional
Manager Manager Manager patterns to more than one authority.
" It is a hybrid of functional and projectized
organizational structures and project
managers share authority with other program managers in this structure.
Staff

Staff + Project
H Staff

Staff + Project
Staff + Project Staff

Staff
Depending on the decision-making capacity of the project manager, a matrix
structure is one of three sub-types: weak, balanced, or strong.
(a) Matrix Weak Project Organizational Structure
" A weak structure is similar to the functional organization structure, in which
Staff Staff coordination occurs horizontally among staff without a designated project
manager.

Staff + Project
" The primary difference between a weak matrix and a functional organisation
Staff
Staff Staff structure is that the staff across departments, rather than the functional managers,
coordinate the project (but the functional manager maintains decision-making
Fig. 3.3: Functional Project Organizational Structure authority).
3.8 3.9
 Business Project Managenment
Business Project Management Technlque BuslnessProject Management

Matrix Strong Project

Business Project Maragement
Techniques
Chlef Executive
OfMcer (c)
Astrong
Organizational Structure
matrix is most similar
to a
project managerprojectized
e
fals underorgani zational structure
a dedicated
Functional " In it, a
Functional Manager department, has
dedicated functional project management
Functional
Manager
Manager
allthe project managers.
cross-functional
staff and is suppoted by a manager of
Staff " Thissub-type offers the project manager the most
Staff
Staff
matrixed environment. authority as they work across a
Chief Executive Officer
Staff Staff + Project Staff
Staff
Project Manager Functional Manager Functional Manager
Functional Marager
Staff + Project Staff Project Manager X Staff + Project Staff X Staff +
Staff + Project Staff + Project Staff Project Staff Staf +Prcject Staf X
Staff
Organizational Structure Project Manager Y Staff + Project Staff Staff + Project Staff Y
Fig. 3.5: Matrix Weak Project Staff
Organizational Structure
(b) Matrix Balanced Project nes
manager also holds a staff position and does Project Manager Z Staff + Project Staf Z
In abalanced matrix, the project capacity.
Staff
Staff + Projet Staf
utilize the project manager role to its full decisions, budget, staf Fig. 3.7: Matrix Strong Project
over project Organizational Structure
The project manager still has little authority and coordinator.
as the point of contact
etc, and primarily serves
.There is no perfect organizational structure. Instead, a project
manager must weigh
Chlef Executlve the pros and cons of resource allocation and
Offlcer optimization within each structure,
then select the most optimal structure.
. In addition to the project team's operational pros and cons, the authority
Functlonal Functlonal Functlonal (decision
Manager Manager Manager making power) of the project manager changes depending on the selected project
organization structure.
Staff Staff Staff " This means that the project manager must have both the knowiedge and the skills
to apply effective managerial and interpersonal techniques that lead to a high
functioning project team.
Staff Staff Staf + Project Staf 3.2 Estimation of Costs and Budget
" Estimation of cost in project management is the process of forecasting the financial
Staff + Project Staf + Project Staff Staff + Project Staff
and other resources needed to complete a project within a defined scope and time.
Staff
" Cost estimation accounts for each element required for the project from materials
Fig. 3.6: Matrix Balanced Project Organizational Structure
to labour and calculates a total amount that determines a project's budget.
3.10
3.11
 Business Project Menagement
Business Project Menagement

" Budgeting is a tool to estimate

the costs or necessary efforts for Technlqun
projects,
BuslnessProject Management

Technical know how and Business Project Manag

packages or activities in project management. work 4.
Expenses on foreign engineeriandng fees Techn
" Cost budgeting includes the
estimation of costs, setting a fixed budget
and
5.
Miscellaneous fixed assets technicians training of Indian
managing and controlling the actual costs.
Resource
6
7.
Preliminaryand
capital issue expenses technicians abroad
Planning g Pre-operative expenses
9. Margin money for working capital
Initial cash losses
Some countries, the
Cost Project Cost
Management
Cost
Estimating)
" In
regulatory agency or
estimated cost for a
project must either be
Control
conform to certain norms
financial institutions in this laid down by approved by a
regard. the
government or
The primary purpose of such
decisions and provide a measSure regulations is to impart
protection to prudence to project financing9
Cost of
Budgeting)
. In
addition, the
assistance
norms of
to projects
financial institutions, investors.
which often provide
Fig. 3.8: Project Cost Management Process
decisions.
significantly shape and circumscribe substantial
project financing
Stages of Project Cost Management
boy business
Project cost management includes four stages: Resource Planning, Cost Estimatino
Cost Budgeting and Cost Control.
considerationswhich are
decision are:cost, risk, control and flexibility,. relevant for the project financing
(A) Cost Estimation
1. Resource Planning includes People, Equipment, Material needed for project
completion. Coct estimation is the process of quantiftying the costs
2. Estimation of Cost includes development of an approximation of overall cost resources required to execute the project. associated with all the
resources needed for project completion. Toperform cost calculations, we need the following
information:
3. Cost Budgeting is focused on allocation of overall cost estimate to project budget. (a) Resource requirements
4. Cost Control
focused on controlling changes and cost to the project budget. L Price of each resource (e.g., staffing
cost per hour, vendor hiring costs, server
Conceptually, the Estimation of cost represents the total of all items of outlay procurement costs, material rates per unit, etc.)
associated with a project which are supported by long-term funds.
" It is the sum of the outlays on the (C) Duration that each resource is required
following: (d) List of assumptions
1. Land and site development
2. Buildings and civil works (e) Potential Risks
3. Plant and machinery (0 Past project costs and industry benchmarks, if any
3.12
(g) Insight into the company's financial health and reporting structures
3.13
 BuslnessProject Menagement
Business Project Management
Business Project Management
" Cost Estimation is arguably the most difficult of the steps involved in Techniquey
Cost Similarly, in manufacturing
Business Project Management
projects, the goal is to Techniques
here.
is thetokeyconsider
accuracyhave
replacement charges. minim1ze future service costs and
Also, project asmanagers
" management factors such as fixed and variable COsts, Sometimesthe estimation process also
engineering, for allows teans to evalvate
value of money. Value example, helps to gain the and reduce costs
overheads, inflation and the time down.
The greater the deviation
between estimation and
actual costs, the less likely it
is while bringing costs optimal value from a project
" estimation
many models to O Cost Budgeting
for a project to succeed.
However, there are
choose Cost
budgeting can be viewed as part of
from.
Analogous estimnation is a good choice if you have plenty of historical cost data estimation or as its own separate
Budgeting is the process of allocating costs to a certain process.
individual tasks or modules, for a chunk of the project, such
from similar projects.
approaches such as parametric model:
as specific time period.
" Some organizations prefer mathematical Budgets include contingency reserves allocated to
or program evaluation and review technique (PERT).
Example manage unexpected costs.
" Then there is the choice between employing a top-down versus bottom-
Let's say the total costs estimated for a
:an project that
runs over three years is 2
approach.
proie 20,00,000). HOwever, Since the budget allocation is a function of time the
" Top-down typically works when past costing data are available. In this, project manager decides toconsider just the first two
managers usually have experience executing similar projects and can therefore ta aN identify the work items to be completed andguarters now.
for
a good call.
s2s00o for this time period and these work items. allocate a budget of., say.
" Bottom-up works for projects in which organizations do not have a lot .
anroiect manager uses the WBS and some of the
experience with and therefore, it makes sense to calculate a cost estimate at a to at this number. estimation methods to arrive
level and then roll it up to the top.
(B) Cost Estimation as a Decision Enabler
Rudaeting creates a COst baseline against which we
can continue to measure and
evaluate the project cost performance.
" It's useful to remember that cost estimation is done at the planning stage and Tf not for the budget, the total
therefore, everything is not yet set in stone. estimated cost would remain an abstract fiqure and
it would be difficult to measure midway.
" In many cases, project teams come up with multiple solutions for a project and cost
estimation helps them decide which way to go. . Evaluation of project performance gives an opportunity to assess how
much
There are many costing methodologies, such as budget needs to be released for future phases of the project.
activity-based costing, job costing,
and lifecycle costing that help perform this comparative analysis. Another reason to firm up budgets is that organizations often rely on
expected
" Lifecycle costing, for instance, considers the
complete end-to-end lifecycle of a future cash flows for their fundina.
project. During the initial phases, the project manager has a limited financial pool and has
" In IT projects, for example, to set targets accordingly.
maintenance costs are often ignored, but lifecycle
costing looks long-term and accounts for resource usage until " It's similar to building the foundation and one floor of the house in the initial few
the end of the cycle.
3.14 months and later completing the rest of the project, as you save more.
3.15
 BusinessProlect Managenment
BusinessProject Management Technlqu guslnessProject Management

pisadvantages Business Project Management

Importanco of Budget resources to project Techniques
plans for allocating organizational activities. Since managers are not part of the
0 Budgets are
[Link]-making process, they
costs.
quantities, timing and much motivation to ensure their
orecasting required resources, may not feel
() Since senior managers are not much
") organizationalobjectives.
Budgets tie project tooverall departments, they may set aware of the
()
are used as atool by
upper management to monitor and
guide projects, unrealistic
finding it difficult to meet the set
day-to-day operations of the
targets. This results in
(i) Budgets numbers. lower-level managers
Approaches of Project Budgeting (i) Such type
of budgeting may often lead to over or
approaches of project budgeting: (b) Bottom-up Budgeting under allocation of resources.
" There are three
Bottom-up budgeting is also atype of
(a) Top-Down Budgeting
top-down budgeting. budgeting, but it's the exact opposite of the
(b) Bottom-up Budgeting
" The bottom-up budgeting starts at the
(c) Activity based Costing top management. department level and then moves up to the
(a) Top-Down Budgeting Moder this, the departmental heads or
organization or a company managers create their own budget and then
" Itis a crucial method of preparing a budget for an submit it to the top management.
prepares a high-level budget on Theyprepare the budget on the basis ot present
" Under this method, the senior management information and past experiences.
Also, manages to give a proper explanation for each item in
basis of the company's (overall) objectives. the budget.
the amounts for the individual The top management approves, revises or sends it back for modifications
" The top management then allocates
who use that amount to prepare their own budget.
department, .After top management approves all the department budgets, it comes up with
a master budget.
Advantages Advantages
) Such type of budget focuses on the overall growth of the organization. o Such type of budget focuses on the overall growth of the organization.
(Gi) This is atask which project team has already completed in the past. The scope i (i) The bottom-up approach to. project management means that you begin with
clear, the timeline defined and the sub-tasks are straight forward. brainstorming possible solutions to meet that final deliverable.
(Gi) t makes departments aware of what the top management expects from them. (ii) The bottom-up approach involves all members of the team working together to
determine the necessary tasks to reach that final end product.
(v) It is a quick way of preparing a budget and helps to overcome inter-departmentl (iv) Teams are embarking on an entirely new product based on feedback from
issues.
customers. Project need input from the entire team as this is a process you've
(v) It saves time for lower management as well. Rather than preparing the budget from never been through before. Abottom-up approach works best in this situation.
scratch, each department gets a set goal. This saves both time and resources. () Since managers are part of the budget-making process, they may feel much
motivation to ensure their success.
(vi) Under top-down budgeting, management creates only one budget, rather than
operations of the
allowing the department to create their own budget and combine them later. (vi) Since senior managers are much aware of the day-to-day
results in lower-level managers
departments, they may set realistic targets. This
Hence, it is a less tedious approach.
finding it easy to meet the set numbers.
3.16 3.17
 Business Project Management
Business Project Management

Disadvantages
Techniqu 3.3
t Management
Business Project

Using CPM Tools (Gantt Chart, Business Praject

Management Techniques
management you know what WBS, Project
() In the bottom-up approach to project the projec Evolutlon of Network Techniques
goal is, but are not sure how to get there. By the
end of 18th
century,
the
Network Diagram)
empowered to make decisions and
() When multiple employees are
proposg
having egos clash when staff members
the managerial capabilities, deciencession-andmakiacaderni
experi ng process was mainly
century, the pioneers of background of depended
c
changes, your business runs the risk of the early stage of 19th on
affects your workplace
managers.
disagree. This can cause disharmony that
can also interfere with work flow and
productivity. environment. developing the scientific
During World War L Henry L
management techniques. scientific management
Gantt
started
modified to developed
When decisions are being made at multiple levels, your business runs the scheduling which was later on Gantt
(i) risk of production scheduling. Bar chart for the chart for production
operatingwithout a clear strategy. purpose of project and
(iv) It is time consuming approach. The network techniques of PERT and CPM were
(c) Activity Based Costing " In the beginning, CPM was used for concurrently
planning developed in 1957
and scheduling of
assigns overhead and
Activity-based costing (ABC) is a costing methodthat projects.
constructional
costs to related products and services.
indirect " It was
also used for scheduling the maintenance shutdow.
the relationship between Construction industry in general and the
This accounting method of costing recognizes costs, " The
overhead activities and manufactured products, assigning indirect coste were the major areas of CPM applications petrochemical industry in particular
products less arbitrarily than traditional costing methods. However, some indi
pgDT was developed by Us Navy for
scheduling the research and development
for the Polaris Fleet Ballistic Misiles
difficult to assian +
costs, such as management and office staff salaries, are Programmed whose activities were
product.
eubiect to a considerable degree of uncertainty.
Process
Initially, this technique was named as "Programmed Evaluation and Review
Techniaue". After 1958, this technique was used by Russian Scientists for the
The activity based costing include the following process:
utilization and management of their huge ammunition.
() Identify all the activities required to create the product. Rut after 1960, this technique came up as a revolutionary technique for the
(Gi) Divide the activities into cost pools, which includes all the individual costs related purpose of decision-making.
to an activity such as manufacturing. Calculate the total overhead of each cost
. With the passage of time, PERT and CPM applications started overlapping and now
pool.
they are used almost as single technique and the difference between the two is
(ii) Assign each cost pool activity cost drivers, such as hours or units. onlyof the historical and academic interest.
(iv) Calculate the cost driver rate by dividing the total overhead in each cost pool by " Project management is a systematic way of planning, scheduling, executing,
the total cost drivers. monitoring, controlling the different aspects of the project, so as to attain the goal
(V) Divide the total overhead of each cost pool by the total cost drivers to get the cost made at the time of project formulation.
techniques, which
driver rate. " PERT and CPM are the two network-based project management
and events.
(vi) Multiply the cost driver rate by the number of cost drivers. exhibit the flow and sequence of the activities
3.19
3.18
 psnessProlect Management
Business Project Management Business Project Management Business Project Management
Techniques Modern Gantt charts also
show the Techniques
" Program (Project) Management and Review Technique (PERT) is appropriate for a relationships between activities. dependency (ie, precedence networ)
projects where the time needed tocomplete different activities are not known charts can be used to show
" On the other hand, the Critical Path Method or CPM is apt (suitable)
Gantt.
current schedule status u_ing
for the shadingsandla vertical|"TODAY" line.
projects which are recurrinq in nature.
" The two scheduling methods use a common approach for designing Gantt charts
are sometimes equated with bar
percent-complete
the netwOrk charts.
and for ascertaining its critical path. Gantt charts are usually created initially using an early
scheduled to start start time
They are used in the successtul completion of a project and hence
conjunction with each other.
Used in
eachtask is
" Thismethod
immediately when its tasks. areapproach,
maximizes the float time available for al prerequisites
where
complete.
" Nevertheless, the truth is that CPM is different from PERT in a way that 3.3.2 WBS(Work Breakdown Structure)
concentrates on time while the former stresses on the time-cost trade-off
the latter
work-breakdown structure (WBS) in
" Network Diagrams, Critical path method, Gantt charts, Project Evaluation ana A project management and systemis
Review Technique, Work Breakdown Structure, Project Documentation etc ars engineering is a deliverable-oriented
breakdown of a project into smaller
components.
major the tools of Effective Project Planning.
3.3.1 Gantt Chart Awork--breakdown structure is a key project deliverable that organizes the
team's
" A
Gantt chart is acommonly used graphical depiction of a project schedule. work into manageable sections.
" It's a type of bar chart showing the start and finish dates of Definition
a project's elemente
such as resources, planning and dependencies. The Project Management Body of Knowledge (PMBOK)
defines the work
" AGantt chart is a type of bar chart that keeakdown structure as a "hierarchical decomposition of the total scope of work
illustrates a project schedule, named after
its inventor, Henry Gantt (1861-1919), who to be carried out by the project team to accomplish the project
designed such a chart around the years objectives and
1910-1915. create the required deliverables."
Modern Gantt charts also show the dependency
and the current
relationships between activities A WOrk-breakdown structure element may be a product, data, service, or any
schedule status.
combination of these.
Definitlon
"AGantt chart is a type of bar chart that AWBS also provides the necessary framework for detailed cost estimation and
illustratesa project schedule". controlwhile providing guidance for schedule development and control.
" This chart lists the tasks to be
performed on the vertical axis and time intervals on " The concept of work breakdown structure developed with the Program Evaluation
the horizontal axis.
The width of the horizontal bars in the and ReviewTechnique (PERT) by the United States Department of Defense (DoD).
graph shows the duration of each activity. " PERT was introduced by the U.S. Navy in 1957 to support the development of
Gantt charts illustrate the start and
finish dates of the Terminal its Polaris Fleet Ballistic Missile Program.
Summary elements of a project. Terrminal elements and
constitute the work breakdown structure of the elements and summary elements " While the termn "work breakdown structure" was not used, this first implementation
project. of PERT did organize the tasks into product-oriented categories.
3.20
3.21
 BUslnessProject Management
Business Project Management
Business Project Management
decomposition of the project
Technlqus
into 34
Estalblishing The
critical path method
CPM Business Project
Manaement Ted
" WBS is a hierarchical and
incremental
deliverables and work packages.
phases, The
late
195Os by Morgan R. (CPM) IS aproject
Walker arnd JamesE. modeling technique developed in the
Kelley.
effort required to achieve peflnltlon
structure, which shows a sub-division of
" It is atree critical path
contract.
project and
The method
analgorithmfor schedulinggaa set (CPM), or
objective,; for example a program, starting with the end objective of critical path analysis
In a project or contract, the
WBS is developed by commonly project activities". (CPA). S
"
components in terms of It is used in
and successively sub-dividing it into manageable technique (PERT). conjunction with the program evaluation and
components, tasks. review
systems, sub-systems, critical path is
duration and responsibility (e.g., determinedby
activities and measuring the time identifying the longest stretch of
to
tasks and work packages)
which include all steps necessary achieve the required to complete then from start todependent
Critical Path Method or CPM is a finish.
objective. well-known project modelling
3.3.3 Project Network
Diagram
management. technique in project
CPM is mainly used in projects to
Definition
"
helpoin preventing conflicts
determine critical as well as non-critical tasks
will and reduce that
about choosing the path bottlenecks.
representatio
In Project management jargon the network diagram is "the logical " In
essence, CPM is
act amount of time that is in a project that wil help in
work on a project". required to complete a task with the leastcalculating
of tasks that define the sequence of
organization or ners of wastage. amount
dates, task names and the
It may include start and end
The Critical Path Method or CPM has been used in
many industries
responsible for the delivery of each task. defence, construction, starting from
needs to happen and in what order to
deliee software, aerospace, etc.
" It should show, at a glance what Advantages of CPM

project. cOM orovides an outline for long-term coordination and

planning of aproject.
what needs to be done and in 2. It recognizes critical activities.
" In Project management, Network Diagrams show
what order it needs to be done. tis easy to plan, schedule and control project with the help of CPM.
Advantages of Project Network Diagram A It improves productivity and manages the resource needed.
1. It enable the calculation of the critical path by showing the predecessors and
5. Itimproves decision making within the project team.
successorsof each task required to deliver the project.
6 It helps the project team to make time optimization.
7 t helps to manage and organise large and complex projects.
2. It helps to demonstrate how the project can be delivered and allow the project to Disadvantages of CPM
be scheduled against time and resources. 1. For beginners, its difficult to understand and software toOo expensive.
3. Network diagrams are useful because they show the sequence of tasks and the 2. Sometimes, to structure CPM is too time-consuming task.
dependencies between them. 3. It cannot control and form the schedule of a person involved in the project.
CPM.
4. Allocation of resources cannot be monitored properly in
4. It reveal milestones in the project which are then used for monitoring and control. 3.23
3.22
 Business Project
Business Project Management Management BusinessProject Menagement

3.5 Implementing PERT Tool (Program Evaluation and Technlque PERT qives management Business Project
ability to plan the best Management Techniques
the
Technique- PERT)
Program (Project) Evaluation and
Review Technique (PERT) is an
Review 4
achieve a given goal within the
PERT enables the
overall and cost possibie use f resources to
project executives tirne
understand the planning, aranging, scheduling,
coordinating and activity of loa
governing opposed| to repetitive
product ion
to
situations
manage liamtvariety
ations. of
project.
technique of a study taken to 6 PERT
helps the
project
programming where no manager to handle the
programmes as
This program helps to understand the
.project, identifythe least and minimum
time taken to complete the
wholecompl
aim of the cost and time of a projeectte.
a
network analysis as a base
standard time data are uncertaitinties involved in
method of approach to available utilises the time
" PERT was developed in the 1950s, with the machinery and capital determine manpower. matenal
recognise, identify and project. requirements.
atype of network analysis employed to of PERT needs a
" PERT is
inter-connected links in acomplex system over an extended period of
time control all 7. The use clear definition
levels: the feedback and review of the
of
goals for proper
" PERT provides a framework for handling a wide range of problems in
the management to take corrective
communication at al!
different stages of the project
field of measures and formulate strategies for heBps the
Project management. thelimited resources in case of allocating
Definition emergencies overruns. Because of the logical inter-
relationships between the planned
the amount
elements. the project can think of
"PERT is one Project management tool used to calculate of
time it vendors. alternative
will take to realistically finish a project."
3.6 Using Process Improvement Tools (Fishbone, SiPOC)
Advantages of PERT (A) Fishbone Diagrams
PERT enables the optimum utilization of the resources by their transfer -t-bone diagrams, Ishikawa diagrams (also called fishbone
1.
slack to busy segments in the network in order to accomplish the stipulated
from the diagrams, heringbone
goal. It ianrams, cause-and-effect diagrams, or Fishikawa) are causal diagrams
created
is useful for pre-crisis planning and buying when the force major clauses ara k Kaoru Ishikawa that show the potential causes of a specific event.
operative because the responsibilities to project executives are allocated well in Defnitlon of Fishbone Diagram
advance to tackle such emergencies.
nEishbone diagram or Ishikawa diagram is a modern quality management tool
2. PERT is useful for balance-sheet preparation, annual shutdown and overhauls to
that shows the cause and effect relationship for any quality issue that has
identify the critical activities. It is particularly useful in construction and RAD emerge."
projects because it makes room for uncertainties associated with futuristic
Common uses of the Ishikawa diagram are product design and quality defect
decisions on project planning. It not only helps the management in deciding when
prevention to identify potential factors causing an overall effect.
toinitiate the follow-up and provide the materials, but also gives an estimate of the
Each cause or reason for imperfection is a source of variation. Causes are usually
consequences of not meeting such demands. Thus, it helps avoid last minute variation.
delays and panic buying resulting in cost. grouped into major categories to identify and classify these sources of
perform a cause and effect
3. PERT is an effective mechanism for planning, scheduling and coordinating the " Afishbone diagram is a tool that can help you
type of analysis enables you to
different activities in project buying. The tenders for many public sector projects analysis for a problem you are trying to solve. This
insist on PERT network charts to be submitted along with the quotations. discover the root cause of a problem.
3.25
3.24
 Business Project
Management BuslnessPProjectManagement
Business Project Management
diagram or an Ishikawa Techniq Bsiness Project
" This tool is also
called a cause and effect

names can be used interchangeably.

diagram, Thesa Advantages
helpsto draw problem
Management Techniques
the diaaram is where
the causes are listed.
The
causes are
1. It
helpsto identify root
statement and major cause
" The left side of 2. It caUses. it enables catdisecover
[Link]
ibnroten the
identify will be placed
categories. The causes you problem. you to
out into major cause roct cause of
you build the diagram. visual a
appropriate cause categories as
effect is written
3. Highly brainstorming tool which can spark
" The right side of the
diagram lists the effect. The as
the Quicklyidentify if the root
cause is found further exarnoles of root
statement for which you are trying
to identify the causes.
Effect
problem 4.
causaltree.
see
multiple times in the same or causes
different
Cause AlloWS oneto all causes
Equipment Process People
s

6.
Good visualization for simultaneously.
presenting issues to stakeholders.
plsadvantages
Problem time consuming process of cause and
Seconday
1. It is effect.
cause Complex defects might yield aalot of
Primary 2. causes which might become visually
cause
Materials Environment )[ Management) 3. Inter-relationships between causes are not easily cluttering
4. This process required expert human identifiable.
Fig.3.9: Fishbone Diagram resource.
s It is cost consuming process.
Source-[Link] (B) SIPOC
Ishikawa_ diagram#/media/File:lshikawa_ ishbone_ [Link] ASPOC (suppliers, inputs, process, outputs, customers) diagram is avisual tool for
" The diagram looks like the skeleton of afish, which is where the documenting a business process trom beginning to end prior to
comes from.
fishbone name SIPOC (pronounced sigh-pock) diagrams are also referred to as implementation.
high level process
How to Create a Cause and Effect Diagram maps because they do not contain much detail.
" A
cause and effect diagram can be created in six steps.. In process improvement, a SIPOC (Sometimes COPIS) is a tool that summarizes the
1. Draw Problem Statement inputs and outputs of one or more processes in table form.
2. Draw Major Cause Categories . It is used to define a business process from beginning to end before work begins.
3. Brainstorm Causes " The acronym SIPOC stands for Suppliers, Inputs, Process, Outputs and Customers
4. Categorize Causes which form the columns of the table.
$. betermine Deeper Causes " Itwas in use at least as early as the total quality management programs of the late
1980s and continues to be used today in Six Sigma, lean manufacturing,
6. Identify Root Causes
and business process management.
3.26 3.27
 Business Project
Management puslnessProject Management
Business Project Management

" Toemphasize
putting the needs of the
customer foremnost, the tool is
process infomation is filled
in starting with the
TSomecehtinTimgues Matrix Organizational Structure Business Project Mansgement
Techniaes
called COPIS and the
working upstream to the supplier. procesS improvement at
customer 3.
(b)
Matrix
Weak Project Organizational
Structure
(a) Matrix Balanced Project Organizational Structure
presented at the outset ot
" The SIPOC is often
during the "define" phase of the DMAIC process efforts Such Matix Strong Project
(c) Estimation of cost in Organizational
Structure
as Kaizen events or audience. project
" It has three typical
uses depending on the . resources
and other
needed management a
to
is the process of
forecasting the financal
complete project within a
define
Budgeting is the of allocating
costs to a certain chunk of scope and time
prOcess
Customers
Suppliers Inputs Process Outputs
2s individual tasks or
modules, for a specific time period the project, such
Gantt chart is a
" A commonly used graphical depiction of a project
" A work-t-breakdown structure
(WBS) in project schedule
Fig. 3.10 : A SIPOC Diagram management
used by a process improvement team to
engineering is a
deliverable-oriented breakdown of a project andinto systerms
A SIPOC diagram is a tool
relevant elements of a process improvement
project that may not be
project before work
well scoped.
identifyhelps
begins and al
components.
Project management, Network Diagrams show what needs
smaller
to be done and in
to define a complex
what order it needs to be done
Advantages of SIPOG Diagram
The critical path method (CPM) is a project
1. Itensures that all team members are on
the same page. modelling technique developed in the
late 1950s by Morgan R. Walker and James E. Kelley
2. Increases transparengy across an organization.
Oroaram (Project) Evaluation and Review Technique (PERT) is an activity
3. It creates a template that can be reused for various processes and projecte to
derstand the planning, arranging, scheduling, coordinating and
4. Provides an overview of a project for stakeholders. governing of a
project.
5. Can be used as a training tool for newer employees.
Ciehhone diagrams, Ishikawa diagrams (also called fishbone diagrams,
6. Helps with problem-solving initiatives. herringbone
Aiagrams, cause-and-effect diagrams, or Fishikawa) are causal diagrams reated
Points to Remember
hy Kaoru Ishikawa that show the potential causes of a specific event.
" Project management is concerned with the overall planning and coordination s.
A SIPOC(suppliers, inputs, process, outputs, customers) diagram is a visual tool for
project from inception to completion aimed at meeting the client's requiremente
documenting a business process from beginning to end prior to implementation.
and ensuring completion on time, within cost and to required quality standards
Organisation refers to a collection of people who are working for the common Questions For Discussion
vision, goals and objective. 1. Explain Organizational Structures.
" Organizational Structures in Project Management 2. What is Estimation of Costs and Budget ?
1. Functional Project Organizational Structure 3. Explain CPM and PERT.
Projectized Organizational Structure/Project - based Organizational Structure 4, State the various Types of Formal Organization.
3.28 5. What are the different Approaches of Project Budgeting ?
3.29
 Business Project
Management
Business Projert Management
6. What is Project Network
Diagram ?State its Advantages. Technl Chaplen 4...
7. Define CPM. State its Advantages
8. Define PERT. State its Advantages
State its Advantages and
Disadvantage: Managing Project
ncement lssues and Their
9. What is Fishbone Diagram ?
its Advantages.
10. What is SIPOC Diagram ?State
11 Write Short Notes
Coommen
Project Management
(A) Organizational Structures in
(B) Cost Estimation
Contents...
() Cost Budgeting
Project Costs
(D) Gantt Chart A.1 ldentifying
(E) Work-Breakdown Structure 4.2 Calculating Return on Investment (ROI)
() Activity Based Costing Period
A3 Calculating the Payback
(G) Project Network Diagram Net Present
(H) Fishbone 4.4 Determining Value (NP
) SIPOC 6ldentifying the Life Cycle of aProject
4.6 Hondling Over a Project
4.7 Closing a Project
4.8 Reviewing a Project
Points to Remember
Questions for DiscUSsion
Learning Objectives..
Ater reading this chapter, the students should able to understand:
" About various Projects Costs
" About Calculating Return on Investment (ROI)
About the Payback Period
Determining about NPV
Concept of Closing a Project
" Concept of Reviewing a Project
3.30 4.1