Important Announcement
PubHTML5 Scheduled Server Maintenance on (GMT) Sunday, June 26th, 2:00 am - 8:00 am.
PubHTML5 site will be inoperative during the times indicated!

Home Explore CU-MBA-SEM-IV-Project Management

CU-MBA-SEM-IV-Project Management

Published by Teamlease Edtech Ltd (Amita Chitroda), 2022-11-11 07:35:01

Description: CU-MBA-SEM-IV-Project Management


Read the Text Version


First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event, Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT Unit 1- Introduction To Project Management ........................................................................ 4 Unit 2- Systems Approach To Project Management ............................................................ 20 Unit 3- Project Development – I.......................................................................................... 37 Unit 4 - Project Development – II........................................................................................ 53 Unit 5- Project Planning ...................................................................................................... 69 Unit 6 - Tools & Techniques ............................................................................................... 91 Unit 7- Structure & Responsibilities .................................................................................. 118 Unit 8- Project Scheduling ................................................................................................ 144 Unit 9- Project Scheduling ................................................................................................ 171 Unit 10- Risk Management ............................................................................................... 190 Unit 11 - Project Control ................................................................................................... 216 Unit 12 - Project Control ................................................................................................... 234 Unit 13- Project Management Information Systems – I ..................................................... 252 Unit 14- Project Management Information Systems – II .................................................... 266 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 1- INTRODUCTION TO PROJECT MANAGEMENT STRUCTURE 1.0 Learning Objective 1.1 Introduction 1.2 Definition of projects & management of projects 1.3 Functions of Project Management 1.4 Classification of projects 1.5 Project Lifecycle 1.6 Project Appraisal 1.7 Summary 1.8 Keywords 1.9 Learning Activity 1.10 Unit End Questions 1.11 References 1.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Understand the significance of projects and project management  Understand and identify the objectives and scope of project management  Understand the classification of projects and various phases of project life cycle  Understand project appraisal and its techniques 4 CU IDOL SELF LEARNING MATERIAL (SLM)

1.1 INTRODUCTION TO PROJECT MANAGEMENT Projects have a major role to play in the economic development. Projects are designed with the aim of efficient management, earning adequate return to provide for future development. Project management is an organised venture for managing projects, involves scientific application of modern tools and techniques in planning, financing, implementing, monitoring, controlling and coordinating unique activities or task produce desirable outputs in accordance with the determined objectives within the constraints of time and cost. The PMBOK® Guide definition of project management is the “application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the application and integration of the 47 logically grouped project management processes comprising the 5 Process Groups: initiating, planning, executing, monitoring and controlling, and closing” (PMBOK® Guide, PMI, 2013, p. 6). “Project management is the application of knowledge, skills, tools, and techniques to project activities to achieve project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing.” —PMBOKR Guide 1.2 DEFINITION OF PROJECTS AND MANAGEMENT OF PROJECTS Project in general refers to a new endeavor with specific objective and varies so widely that it is very difficult to precisely define it. Some of the commonly quoted definitions are as follows. Project is a temporary endeavor undertaken to create a unique product or service or result. (AMERICAN National Standard ANSI/PMI99-001-2004) Project is a unique process, consist of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective confirming to specific requirements, including the constraints of time cost and resource. (ISO10006) Examples of project include developing a watershed, creating irrigation facility, developing new variety of a crop, developing new breed of an animal, developing agro processing centre, 5 CU IDOL SELF LEARNING MATERIAL (SLM)

Construction of farm building, sting of a concentrated feed plant etc. It may be noted that each of these projects differ in composition, type, scope, size and time. Objectives of Project management There are four major objectives of project management:  Scope: Scope means what are the expectations from you as a project manager and your team. A civil contractor always has well-defined scope, like all civil works including excavation, foundation, concreting, brickwork, plastering of all walls as per the attached drawings.  Performance: A project is always expected to have a well-defined performance level. If a project is unable to adhere to the desired performance of a customer, it is certainly an unsuccessful project.  Time: A successful project is the one which is completed within the time limits perceived during the planning. As the cost is dependent on time, time management becomes a crucial activity of project management.  Cost: It is dependent on all the above objectives. Mathematically it can be written as: Cost = f (P, T, S). Therefore, cost is a function of performance, time and scope. If any of the above increases, it is surely going to increase the cost of the project. Another approach in defining the objectives is the SMART approach.  Specific: Project should target a specific goal  Measurable: It should be quantifiable  Attainable: It should be attainable with resources available  Realistic: It should be realistic in nature  Time Limit: There should be fixed time limits Importance of Project Management What has led to increased usage of the concept of project management in recent times?  Rapidly changing technologies: Technologies are changing very fast, so all manufacturing as well as service organizations have to cope up with technological changes, which provide a big scope for project management. 6 CU IDOL SELF LEARNING MATERIAL (SLM)

 High entropy of the system: Changes are very fast. So, energy levels are high. To adapt to the fast changing world, no organization can stick to old things or systems. Any modification or modernization leads to the need of project.  Squeezed life cycle of products: Product life cycle is squeezed to a great extent with innovations taking place at a very rapid rate. Projects are needed for the up gradation of products.  Globalization impact: All producers and service providers in the present world are exposed globally. They need to modify their system of operations to match the global practices, thus creating opportunity for projects.  Large organizations: They face problems of management of huge workforce and work division, so they divide their work in projects and create a team to accomplish the objectives in the form of projects. This has also helped the organization to develop a method for performance appraisal.  Customer focus: Increased customer focus has been a market trend in recent times. A few years back, cost reduction was a major formula of success for an enterprise. Thus, there was more emphasis on standardization. In recent years, customer focus has redirected market towards customization. Though it is not purely customization, it is more of a combination of standardization and customization. All this has led to the application of project management. 1.3 FUNCTIONS OF PROJECT MANAGEMENT 1. Design and specification:  We define the scope of the work painting external or internal or both.  We define the colour specifications. The paints to be used primer, acrylic or normal.  We budget the time-span we can afford for such painting, and  We also set a target for total estimated cost for such painting. 2. Organisation:  Considering the limitation of the time-span, we decide whether to firm out the painting job to a contractor, or just appoint work-force and carry out the operation with own supervision. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

 Select the work-force or the contractor, assessing their experience their performance in case of painting of our friend’s or relative’s house including their rate of charges.  Decide about the policy to be followed in procurement of the paints, their quantity, quality and the rates. Options available to us are own procurement from the manufacturer’s dealer of a specific brand or, otherwise, let the contractor procure material on our behalf.  Buy or hire the necessary accessories ladder, brushes, water pipes etc. 3. Execution and control:  Procure the necessary resources, and, at times, while the operation is in progress, monitor the actual the actual consumption of resources.  Record and update the expenditure so far incurred and compare with the total budgets both time and cost.  Considering the overall situation, we may even change the scope of work. 4. Post project evaluation:  We find out the actual performance time, cost and quality.  Compare the same with the target set and enrich ourselves with experiences which will be useful later or even for helping our friend or relation. 1.4 CLASSIFICATION OF PROJECTS Classification of Projects Based On Different Criteria Projects can be classified based on duration, quantum of investment and the risk involved 1.4.1 Classification based on duration: It can be long term, medium term and short term. Long-term rojects have a life of more than 10 years, whereas mid-term projects have a life of 5 to 10 years. Short-term projects last only for less than 5 years. 1.4.2 Classification based on investments: It is based on how much initial investment is needed to start the project. In India, investment outlay of above Rs.20 crore is considered high investment, whereas an investment outlay between Rs.5 crore to Rs.20 crore is considered medium sized industry. And investment 8 CU IDOL SELF LEARNING MATERIAL (SLM)

below Rs.5 crore is considered low investment industry. Industry with initial outlay below Rs.50 lac is considered cottage industry. 1.4.3 Classification based on ownership: A project can be owned by government, public sector, corporate, cooperative, partnership firm or proprietorship firm. 1.4.4 Classification based on risk: This is the most commonly used basis of project classification. Projects are basically classified as Greenfield project, brown field project, divestment project and modernization or replacement project. Project Classification Elements There are a number of factors, which combine to define the project classification: Project Focus – Business Processes or Information Technology. The most fundamental difference is in the high level focus of the project – is this piece of work targeted at a new or changed business process which will be implemented without changing the existing information technology systems or is it about using information technology to enable and implement a change to the way we do business? There is a third, very uncommon type of project – the “pure” information technology project; those undertaken within the information technology team to meet technology demands. These types of project are normally technology upgrades or changes such as migrating from one platform to another. The selection between these three project types is the most fundamental choice to be made, as this will significantly impact the methodology approach to be undertaken. Project Risks – Low, Medium or High All projects have risks associated with them. Understanding the degree of risk and the nature of these risks is important to the selection of the methodology elements. 1.5 PROJECT LIFECYCLE The project manager and project team have one shared goal: to carry out the work of the project for the purpose of meeting the project's objectives. Every project has beginnings, a middle period during which activities move the project toward completion, and an ending (either successful or unsuccessful). A standard project typically has the following four major 9 CU IDOL SELF LEARNING MATERIAL (SLM)

phases (each with its own agenda of tasks and issues): initiation, planning, implementation, and closure. Taken together, these phases represent the path a project takes from the beginning to its end and are generally referred to as the project life cycle. Following are the phases in a project life cycle: 1.5.1 Initiation Phase During the first of these phases, the initiation phase, the project objective or need is identified; this can be a business problem or opportunity. An appropriate response to the need is documented in a business case with recommended solution options. A feasibility study is conducted to investigate whether each option addresses the project objective and a final recommended solution is determined. Once the recommended solution is approved, a project is initiated to deliver the approved solution and a project manager is appointed. The major deliverables and the participating work groups are identified and the project team begins to take shape. Approval is then sought by the project manager to move on the detailed planning phase. 1.5.2 Planning Phase The next phase, the planning phase, is where the project solution is further developed in as much detail as possible and you plan the steps necessary to meet the project's objective. In this step, the team identifies all of the work to be done. The project's tasks and resource requirements are identified, along with the strategy for producing them. This is also referred to as scope management. A project plan is created outlining the activities, tasks, dependencies and time frames. The project manager coordinates the preparation of a project budget; by providing cost estimates for the labor, equipment and materials costs. The budget is used to monitor and control cost expenditures during project implementation. Once the project team has identified the work, prepared the schedule and estimated the costs, the three fundamental components of the planning process are complete. This is an excellent time to identify and try to deal with anything that might pose a threat to the successful completion of the project. This is called risk management. In risk management, \"high-threat\" potential problems are identified along with the action that is to be taken on each high threat potential problem, either to reduce the probability that the problem will occur or to reduce the impact on the project if it does occur. This is also a good time to identify all project 10 CU IDOL SELF LEARNING MATERIAL (SLM)

stakeholders, and to establish a communication plan describing the information needed and the delivery method to be used to keep the stakeholders informed. Finally, you will want to document a quality plan; providing quality targets, assurance, and control measures along with an acceptance plan; listing the criteria to be met to gain customer acceptance. At this point, the project would have been planned in detail and is ready to be executed. 1.5.3 Implementation Phase During the implementation phase, the project plan is put into motion and performs the work of the project. It is important to maintain control and communicate as needed during implementation. Progress is continuously monitored and appropriate adjustments are made and recorded as variances from the original plan. In any project a project manager will spend most of their time in this step. During project implementation, people are carrying out the tasks and progress information is being reported through regular team meetings. The project manager uses this information to maintain control over the direction of the project by measuring the performance of the project activities comparing the results with the project plan and takes corrective action as needed. The first course of action should always be to bring the project back on course, i.e., to return it to the original plan. If that cannot happen, the team should record variations from the original plan and record and publish modifications to the plan. Throughout this step, project sponsors and other key stakeholders should be kept informed of project status according to the agreed upon frequency and format. The plan should be updated and published on a regular basis. Status reports should always emphasize the anticipated end point in terms of cost, schedule and quality of deliverables. Each project deliverable produced should be reviewed for quality and measured against the acceptance criteria. Once all of the deliverables have been produced and the customer has accepted the final solution, the project is ready for closure. 1.5.4 Closing phase During the final closure, or completion phase, the emphasis is on releasing the final deliverables to the customer, handing over project documentation to the business, terminating supplier contracts, releasing project resources and communicating the closure of the project to all stakeholders. The last remaining step is to conduct lessons learned studies; to examine what went well and what didn't. Through this type of analysis the wisdom of experience is transferred back to the project organization, which will help future project teams. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

1.6 PROJECT APPRAISAL Project appraisal follows the project formulation phase resulting in the preparation of feasibility report (FR). The main objective of project appraisal is to ultimately decide whether the project proposed/sponsored in the FR has to be accepted for Capital Investment, or be rejected. The initial appraisal of the project sponsored also aims at, if need be, recommending the steps or ways in which the project can be redesigned or reformulated with a view to better technical, financial, commercial and economic viabilities; also mitigate or minimize any adverse on negative environmental impact. Thus, project appraisal is an essential tool for judicious investment decision-making, full and complete data and information need to be documented/presented, and analyzed in the FR so as to facilitate the appraisal authorities to carry out: • Demand analysis to establish convincingly the need for the project, • Check on optimal location, • Technical analysis to determine whether the specification of technical parameters are sound and realistic, • Financial analysis to assess whether the project proposal is financially viable, • Commercial analysis to establish the soundness of product or service specifications, marketing plans, organization structure (both project and for operation), • Socio-economic analysis to determine whether the project is worthwhile to implement from the point of view of the nation that is society at large and the economy as a whole, and • Environment and physiographical and ecological thresholds analysis which is concerned with the identification of these constraints, and make the evaluation of chances of success (or otherwise) which the project may have to face (these constraints). Internal consistency and external compatibility are two basic attributes of a viable project. Project Appraisal Techniques 12 The project appraisal criteria can be divided under two heads: 1) Non-Discounting Techniques • Urgency • Payback Period • Accounting Rate of Return CU IDOL SELF LEARNING MATERIAL (SLM)

• Debt Service Coverage Ratio 2) Discounting Criteria Techniques • Net Present Value • Benefit Cost Ratio • Internal Rate of Return • Annual Capital Charge 3) Non-Discounting Techniques i) Urgency According to this criterion, the projects that are more urgent get preference over those that are less urgent. However, one of the problems in using this criterion is to judge the urgency of any project. The decision taken may be subject to the personal bias of the decision maker. In view of this limitation, it should not be used for investment decision making. ii) Payback Period In simple terms, the payback period is the length of time required to recover the Initial cash outlay on the project. If the cash inflows are constant, then the payback period is calculated by dividing the initial outlay by the annual cash inflow. iii) Decision making According to the payback period criterion, the shorter the payback period, the more desirable is the project. Firms using this criterion, generally specify the maximum acceptable payback period. Evaluation of this method:  It is simple in concept and application.  It favours those projects that generate substantial inflows in earlier years and discriminate against projects that bring substantial cash flows only in later years.  As this criterion emphasises on earlier cash flows, it may be a good criterion when the firm is pressed with the problem of liquidity.  It fails to consider the time value of money thus violating the most basic principle of financial analysis which says that cash flows occurring at different points of time can be added or subtracted only after suitable compounding and discounting.  Since payback period is the measure of a project's capital recovery, it may divert attention from profitability.  In spite of the shortcoming of not using the time value of money, payback period is used with advantage in apprising investments for the following reasons: 13 CU IDOL SELF LEARNING MATERIAL (SLM)

 The payback period may be considered roughly as the internal rate of return when annual cash flow is constant and the life of the project fairly long  The payback period is somewhat akin to the breakeven point.  The payback period also gives information about the rate at which the uncertainty associated with the project is resolved. The shorter the payback period, the faster the uncertainty associated with the project is resolved. iv) Accounting Rate of Return The accounting rate of return or the simple rate is the measure of profitability which relates income to investment, both measured in accounting terms. As there are various ways of measuring income and investment, there are a large number of measures for accounting rate of return. The commonly used ones are given: • Average income after tax Initial investment • Average income after tax Average investment • Average income after tax but before interest Initial investment • Average income after tax but before interest Average investment • Average income before interest and taxes Initial investment 1.7 SUMMARY  A project is a temporary endeavor undertaken to produce a unique product, service, or result. A project is also a problem scheduled for solution.  Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.  Project management is accomplished by applying the processes of initiating, planning, executing, monitoring and controlling, and closing. All projects are constrained by performance, time, cost, and scope requirements. Only three of these can have values assigned. The fourth must be determined by the project team.  Projects tend to fail because the team does not take the time to ensure that they have developed a proper definition of the problem being solved. The major phases of a project include concept, definition, planning, execution, control, and closeout. Project stakeholders must be identified and managed.  Project appraisal is a multifaceted exercise. The backdrop of the exercise is provided by the value system of the outside agency by or for whom appraisal is undertaken. 14 CU IDOL SELF LEARNING MATERIAL (SLM)

 The appraisal compresses total evaluation of the performance ratings of the project. It covers technological, financial as also socio-economic aspects of the project and presents to the decision-maker(s) not a single figure or numerical value as a measure of the excellence of the project, but a set of valuations embracing the total performance of the project. 1.8 KEYWORDS  Project-A temporary, goal-driven effort to create a unique output. A project has clearly defined phases, and its success is measured by whether it meets its stated objectives.  Project Management-A management process that encompasses all phases of a project, from initiation to the meeting of objectives.  Integration Planning- The process of deciding how project elements will be integrated and coordinated and how changes will be addressed throughout the project management process.  Process management-The act of planning, coordinating, and overseeing processes with a view to improving outputs, reducing inputs and energy costs, and maintaining and improving efficiency and efficacy.  Requirements-A set of stipulations regarding project deliverables. They are a key element of the project scope and explain in detail the stakeholders’ expectations for a project.  Smart approach-SMART refers to specific criteria for setting goals and project objectives. SMART stands for Specific, Measurable, Attainable, Relevant, and Time- bound. The idea is that every project goal must adhere to the SMART criteria to be effective.  Globalization- Globalization in project management means among other matters more projects executed in the multi-cultural environment.  Project classification- A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category. 15 CU IDOL SELF LEARNING MATERIAL (SLM)

 Project lifecycle- The project management life cycle is usually broken down into four phases: initiation, planning, execution, and closure. These phases make up the path that takes your project from the beginning to the end.  Project phases-A distinct stage in a project management life cycle. Each phase comprises a set of project-related activities.  Project appraisal- the process of assessing, in a structured way, the case for proceeding with a project or proposal, or the project's viability. It often involves comparing various options, using economic appraisal or some other decision analysis technique. 1.9 LEARNING ACTIVITY 1. What do you understand by Project Management? Discuss briefly. ___________________________________________________________________________ _______________________________________________________________________ 2. What does a project scope define? ___________________________________________________________________________ ______________________________________________________________________ 1.10 UNIT END QUESTIONS A. Descriptive Questions 16 Short Questions 1. What are the different phases of project implementation? 2. What is project appraisal? 3. What are project appraisal techniques? 4. Define a project 5. What could be the classification of projects based on risk? Long Questions 1. What are the 5 principles of project management? CU IDOL SELF LEARNING MATERIAL (SLM)

2. Discuss project appraisal and its techniques. 3. As a project manager, Tyler is so happy that all expected project deliverable have been accomplished by his project team. What is the next step for his project to proceed in order to verify the project scope by his project client? 4. Ask his client to conduct an inspection on all of the completed project deliverables \"Ask his client to pay for the completed project deliverables. 5. \"Award all of his project team members for such a great accomplishment. Offer a party for his project team and client to celebrate the success of the project. B. Multiple Choice Questions 1. A ____ is a set of activities which are networked in an order and aimed towards achieving the goals of a project. a. Project process b. project management c. project cycle d. All of these 2. According to the Project Management Institute (PMI), project management is defined as “the application of knowledge, _____, _____, and techniques to project activities to meet the project requirements”. a. skills, tools b. tools, analysis skills c. theories experience d. All of these 3. \"In the _____________ stage of the project life cycle, project objectives are established, teams are formed, and major responsibilities are assigned\" a. Planning b. Identifying 17 CU IDOL SELF LEARNING MATERIAL (SLM)

c. Executing d. Closing 4. In which of the following project phases is the project schedule developed? a. Planning b. Conceptual c. Implementation d. Design 5. According to the Project Management Institute (PMI), project management is defined as “the application of knowledge, _____, _____, and techniques to project activities to meet the project requirements” a. skills, tools b. skills, analysis, c. tools, analysis d. analysis, theories Answers 1 – a, 2 – a, 3 – a, 4 – a, 5 – a 1.11 REFERENCES Reference Books:  Baum W.C and Tolbert S.M. (1985) Investing in Development: Lessons of the World Bank Experience, Oxford: Oxford University Press.&Choudhary, S. (1988) Project Management, New Delhi: Tata McGraw Hill.  Harrison, EL. (1992), Advance Project Management, Metropolitan, New Delhi.  Kohli, K. N (1993), Economic analysis of investment projects: a practical approach, Oxford University Press. 18 CU IDOL SELF LEARNING MATERIAL (SLM)

 Lavagnon A. Ika, Amadou Diallo, Denis Thuillier, (2010) \"Project management in the international development industry: The project coordinator's perspective\", International Journal of Managing Projects in Business, Vol. 3 Iss: 1, pp.61 - 93. 19 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 2- SYSTEMS APPROACH TO PROJECT MANAGEMENT STRUCTURE 2.0 Learning Objective 2.1 Introduction 2.2 Systems Approach to Project Management 2.3 Systems Development Lifecycle (SDLC) 2.4 Integrated Project Management 2.5 System Analysis & Designs: Tools & Techniques 2.6 Case Studies & Scenarios 2.7 Summary 2.8 Keywords 2.9 Learning Activity 2.10 Unit End Questions 2.11 References 2.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Understand Systems Approach to Project Management  Understand Systems Development Lifecycle (SDLC) and its various stages  Understand the goals and objectives of the SDLC approach  Understand Integrated Project Management  Understand tools and techniques of SDLC 20 CU IDOL SELF LEARNING MATERIAL (SLM)

2.1 INTRODUCTION The Systems Approach. ... It is the way in which a project management system operates as an entity in its environment that ultimately determines the success or failure of project management in the organization. The “systems” approach describes a way of dealing with complex problems and opportunities in organizations; this approach has received much publicity in recent years, in the professional journals and in the popular press. The literature ranges from esoteric prescriptions of the nature of the systems approach in the professional journals to “cookbook” recipes in the popular press. The systems approach is often described as a disciplined way of viewing the world, and the solution of problems and the exploitation of opportunities in that world. Some writers describe the systems approach as a process of blowing the problem up to its largest dimensions” and then redefining problems, analyzing, synthesizing, improving through feedback, and finally verifying the alternative courses of action in the decision process. Others view the world and its problems and opportunities in the systems context as “everything” being related to “everything else.” The definition of a system in dictionary terms as an “organization or complex whole; an assemblage or combination of things or parts forming a complex or unitary whole” provides a good point of departure to relate the meaning of a “system” to project management. If project management is viewed in its systems context, we might speak of a project management system which inherently contains a set of sub-systems that make up the larger system. The effectiveness of that larger system depends on the effectiveness of the supporting subsystems individually, as well as how these subsystems are synergized into the larger system as it functions as an entity. It is the way in which a project management system operates as an entity in its environment that ultimately determines the success or failure of project management in the organization. Developing a concept of project management in systems terms requires that the project management system be viewed in as large a context as possible. This context of the “systems viewpoint” must be considered when project management is introduced into an organization. 21 CU IDOL SELF LEARNING MATERIAL (SLM)

Too often a manager will realign his organization into a “matrix” form of structure without giving any real thought to what happens in the environment by way of a total “systems” change. 2.2 SYSTEMS APPROACH TO PROJECT MANAGEMENT Ultimately, all decisions and policies are made on the basis of judgments; there is no other way, and there never will be. In the end, analysis is but an aid to the judgment and intuition of the decision maker. These principles hold true for project management as well as for systems management. The systems approach may be defined as a logical and disciplined process of problem- solving. The word process indicates an active on-going system that is fed by input from its parts. The systems approach: • Forces review of the relationship of the various subsystems • Is a dynamic process that integrates all activities into a meaningful total system • Systematically assembles and matches the parts of the system into a unified whole • Seeks an optimal solution or strategy in solving a problem The systems approach to problem-solving has phases of development similar to the lifecycle phases are defined as follows: • Translation: Terminology, problem objective, and criteria and constraints are defined and accepted by all participants. • Analysis: All possible approaches to or alternatives to the solution of the problem are stated. • Trade-off: Selection criteria and constraints are applied to the alternatives to meet the objective. System thinking is vital for the success of a project. Project management systems urgently need new ways of strategically viewing, questioning, and analyzing project needs for alternative nontechnical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

The systems approach is most effective if individuals can be trained to be ready with alternative actions that directly tie in with the prediction of outcomes. The basic tool is the outcome array, which represents the matrix of all possible circumstances. This outcome array can be developed only if the decision maker thinks in terms of the wide scope of possible outcomes. Outcome descriptions force the decision maker to spell out clearly just what he is trying to achieve. System thinking is vital for the success of a project. Project management systems urgently need new ways of strategically viewing, questioning, and analyzing project needs for alternative nontechnical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management. 2.3 SYSTEMS DEVELOPMENT LIFECYCLE (SDLC) The purpose of an SDLC methodology is to provide IT Project Managers with the tools to help ensure successful implementation of systems that satisfy University strategic and business objectives. The documentation provides a mechanism to ensure that executive leadership, functional managers and users sign-off on the requirements and implementation of the system. The process provides Project Managers with the visibility of design, development, and implementation status needed to ensure delivery on time and within budget. Information system development involves various activities performed together. The stages involved during System Life Cycle are:  Recognition of need  Feasibility study  Analysis  Design  Implementation 23 CU IDOL SELF LEARNING MATERIAL (SLM)

 Post implementation and maintenance Goals of SDLC Approach:  Deliver quality systems which meet or exceed customer expectations when promised and within cost estimates.  Provide a framework for developing quality systems using an identifiable, measurable, and repeatable process.  Establish a project management structure to ensure that each system development project is effectively managed throughout its life cycle.  Identify and assign the roles and responsibilities of all involved parties, including functional and technical managers, throughout the system development life cycle.  Ensure that system development requirements are well defined and subsequently satisfied. Objectives  The SDLC methodology will help to achieve these goals by:  Establishing appropriate levels of management authority to provide timely direction,  coordination, control, review, and approval of the system development project.  Ensuring project management accountability.  Documenting requirements and maintaining trace ability of those requirements throughout the development and implementation process.  Ensuring that projects are developed within the current and planned information technology infrastructure.  Identifying project risks early A typical Software Development Life Cycle consists of the following stages: Stage 1: Planning and Requirement Analysis  Requirement analysis is the most important and fundamental stage in SDLC. It is performed by the senior members of the team with inputs from the customer, the sales department, market surveys and domain experts in the industry. This information is then used to plan the basic project approach and to conduct product feasibility study in the economical, operational and technical areas.  Planning for the quality assurance requirements and identification of the risks associated with the project is also done in the planning stage. The outcome of the 24 CU IDOL SELF LEARNING MATERIAL (SLM)

technical feasibility study is to define the various technical approaches that can be followed to implement the project successfully with minimum risks. Stage 2: Defining Requirements  Once the requirement analysis is done the next step is to clearly define and document the product requirements and get them approved from the customer or the market analysts. This is done through an SRS (Software Requirement Specification) document which consists of all the product requirements to be designed and developed during the project life cycle. Stage 3: Designing the Product Architecture  SRS is the reference for product architects to come out with the best architecture for the product to be developed. Based on the requirements specified in SRS, usually more than one design approach for the product architecture is proposed and documented in a DDS - Design Document Specification.  This DDS is reviewed by all the important stakeholders and based on various parameters as risk assessment, product robustness, design modularity, budget and time constraints, the best design approach is selected for the product.  A design approach clearly defines all the architectural modules of the product along with its communication and data flow representation with the external and third party modules (if any). The internal design of all the modules of the proposed architecture should be clearly defined with the minutest of the details in DDS. Stage 4: Building or Developing the Product  In this stage of SDLC the actual development starts and the product is built. The programming code is generated as per DDS during this stage. If the design is performed in a detailed and organized manner, code generation can be accomplished without much hassle.  Developers must follow the coding guidelines defined by their organization and programming tools like compilers, interpreters, debuggers, etc. are used to generate the code. Different high level programming languages such as C, C++, Pascal, Java and PHP are used for coding. The programming language is chosen with respect to the type of software being developed. 25 CU IDOL SELF LEARNING MATERIAL (SLM)

2.4 INTEGRATED PROJECT MANAGEMENT For many organizations, excellence in project management is fundamental to their success. In some industries like aerospace and defence and construction, projects are what they do – it is how they earn the bulk of their revenue. In other industries like manufacturing, projects are a primary way to achieve competitive advantage, the means by which to create or improve a product, service, system or process. The practice of project management has matured and evolved a great deal over the past half century and is an established discipline with tremendous resources (such as standards, frameworks, associations, certifications, books, blogs, and conferences). However, it remains a significant challenge to efficiently bring projects in on time, on budget, and delivering expected results. This is particularly true for organizations that manage a portfolio of large, materially-intensive programs and projects. Many software tools and solutions are available that support Portfolio and Project Management but very few fully model the interdependence between projects and material supply, a key project resource. In addition, most of these applications lack an ability to accurately model and evaluate the impact project schedules have upon capital and cash-flow. An integrated approach to project management enables an organization to model all their projects and their entire supply chain together in one environment. This is a quantum step forward in the evolution of project management. The integrated approach also models the payment terms, penalty and bonus clauses of a contract to fully reflect the impact a project schedule will have on expected cash-flow. In addition, the integrated approach to project management supports ‘what-if’ simulation to enable project planners and sponsors to understand the implications of various project planning scenarios under consideration (such as allocating more resources to one project versus another or mitigating the impact of a supply disruption). 2.5 SYSTEMS ANALYSIS AND DESIGN: TOOLS AND TECHNIQUES System Analysis Systems analysis is a process of collecting factual data, understand the processes involved, identifying problems and recommending feasible suggestions for improving the system functioning. This involves studying the business processes, gathering 26 CU IDOL SELF LEARNING MATERIAL (SLM)

operational data, understand the information flow, finding out bottlenecks and evolving solutions for overcoming the weaknesses of the system so as to achieve the organizational goals. System Analysis also includes subdividing of complex process involving the entire system, identification of data store and manual processes. The major objectives of systems analysis are to find answers for each business process: What is being done How is it being done, Who is doing it, When is he doing it, Why is it being done and How can it be improved? It is more of a thinking process and involves the creative skills of the System Analyst. It attempts to give birth to a new efficient system that satisfies the current needs of the user and has scope for future growth within the organizational constraints. The result of this process is a logical system design. Systems analysis is an iterative process that continues until a preferred and acceptable solution emerges. (e) System Design Based on the user requirements and the detailed analysis of the existing system, the new system must be designed. This is the phase of system designing. It is the most crucial phase in the developments of a system. The logical system design arrived at as a result of systems analysis is converted into physical system design. Normally, the design proceeds in two stages: l Preliminary or General Design l Structured or Detailed Design Preliminary or General Design: In the preliminary or general design, the features of the new system are specified. The costs of implementing these features and the benefits to be derived are estimated. If the project is still considered to be feasible, we move to the detailed design stage. Structured or Detailed Design: In the detailed design stage, computer oriented work begins in earnest. At this stage, the design of the system becomes more structured. Structure design is a blue print of a computer system solution to a given problem having the same components and inter- relationships among the same components as the original problem. Input, output, databases, forms, codification schemes and processing specifications are drawn up in detail. In the design stage, the programming language and the hardware and software platform in which the new system will run are also decided. There are several tools and techniques used for describing the system design of the system. These tools and techniques are: l Flowchart l Data flow diagram (DFD) l Data dictionary l Structured English l Decision table l Decision tree each of the above tools for designing will be discussed in detailed in the next lesson. The system design involves: i. defining precisely the required system output ii. Determining the data requirement for producing the output iii. Determining the medium and format of files and databases iv. Devising processing methods and use of software to produce output v. Determine the methods of data capture and data input vi. Designing Input forms vii. Designing Codification Schemes viii. Detailed manual procedures ix. Documenting the 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Design (f) Coding The system design needs to be implemented to make it a workable system. This demands the coding of design into computer understandable language, i.e., programming language. This is also called the programming phase in which the programmer converts the pro- Introduction to System Analysis and Design: 7 gram specifications into computer instructions, which we refer to as programs. It is an important stage where the defined procedures are transformed into control specifications by the help of a computer language. The programs coordinate the data movements and control the entire process in a system. It is generally felt that the programs must be modular in nature. This helps in fast development, maintenance and future changes, if required. (g) Testing Before actually implementing the new system into operation, a test run of the system is done for removing the bugs, if any. It is an important phase of a successful system. After codifying the whole programs of the system, a test plan should be developed and run on a given set of test data. The output of the test run should match the expected results. Sometimes, system testing is considered a part of implementation process. Using the test data following test run are carried out: l Program test l System test Program test: When the programs have been coded, compiled and brought to working conditions, they must be individually tested with the prepared test data. Any undesirable happening must be noted and debugged (error corrections) System Test: After carrying out the program test for each of the programs of the system and errors removed, then system test is done. At this stage the test is done on actual data. The complete system is executed on the actual data. At each stage of the execution, the results or output of the system is analysed. During the result analysis, it may be found that the outputs are not matching the expected output of the system. In such case, the errors in the particular programs are identified and are fixed and further tested for the expected output. When it is ensured that the system is running error-free, the users are called with their own actual data so that the system could be shown running as per their requirements. (h) Implementation After having the user acceptance of the new system developed, the 8: Computer Applications implementation phase begins. Implementation is the stage of a project during which theory is turned into practice. The major steps involved in this phase are: l Acquisition and Installation of Hardware and Software l Conversion l User Training l Documentation The hardware and the relevant software required for running the system must be made fully operational before implementation. The conversion is also one of the most critical and expensive activities in the system development life cycle. The data from the old system needs to be converted to operate in the new format of the new system. The database needs to be setup with security and recovery procedures fully defined. During this phase, all 28 CU IDOL SELF LEARNING MATERIAL (SLM)

the programs of the system are loaded onto the user’s computer. After loading the system, training of the user starts. Main topics of such type of training are: l How to execute the package l How to enter the data l How to process the data (processing details) l How to take out the reports After the users are trained about the computerized system, working has to shift from manual to computerized working. The process is called ‘Changeover’. The following strategies are followed for changeover of the system. (i) Direct Changeover: This is the complete replacement of the old system by the new system. It is a risky approach and requires comprehensive system testing and training. (ii) Parallel run: In parallel run both the systems, i.e., computerized and manual, are executed simultaneously for certain defined period. The same data is processed by both the systems. This strategy is less risky but more expensive because of the following: l Manual results can be compared with the results of the computerized system. Introduction to System Analysis and Design: 9 l The operational work is doubled. l Failure of the computerized system at the early stage does not affect the working of the organization, because the manual system continues to work, as it used to do. (iii) Pilot run: In this type of run, the new system is run with the data from one or more of the previous periods for the whole or part of the system. The results are compared with the old system results. It is less expensive and risky than parallel run approach. This strategy builds the confidence and the errors are traced easily without affecting the operations. The documentation of the system is also one of the most important activities in the system development life cycle. This ensures the continuity of the system. There are generally two types of documentation prepared for any system. These are: l User or Operator Documentation l System Documentation The user documentation is a complete description of the system from the user’s point of view detailing how to use or operate the system. It also includes the major error messages likely to be encountered by the users. The system documentation contains the details of system design, programs, their coding, system flow, data dictionary, process description, etc. This helps to understand the system and permit changes to be made in the existing system to satisfy new user needs. (i) Maintenance is necessary to eliminate errors in the system during its working life and to tune the system to any variations in its working environments. It has been seen that there are always some errors found in the systems that must be noted and corrected. It also means the review of the system from time to time. The review of the system is done for: l knowing the full capabilities of the system l knowing the required changes or the additional requirements l studying the performance. If a major change to a system is needed, a new project may have to be set up to 29 CU IDOL SELF LEARNING MATERIAL (SLM)

carry out the change. The new project will then proceed through all the above life cycle phases. 2.6 CASE STUDIES AND SCENARIOS Background- The new automated system is destined to replace the current, manual, error-prone process. The automation of this activity has been welcomed by management for quite some time with the anticipation of significantly reducing the company’s expenses. It is hoped that this reduction will be accomplished by • creating more successful teams working with greater precision, • completing projects on time and within budget due to a better understanding of system requirements and tasks to be completed, and • starting projects on time as a result of the automated project scheduling system. Systems Requirements Statement The Project Director creates a project and a “project profile” for each project. The creation of the project profile will require the determination of project employee costs, the assignment of tasks to the project, and the assignment of a project manager. Examples of various tasks are: 1. “prepare cost benefit analysis report”, 2. “produce entity relationship diagram”, 3. “produce class diagram”, etc.). Once created, the project profile will consist of project id, project personnel cost, a list of tasks assigned, and the project manager.  The Project Director also creates the teams for a given project, assigns employees to the teams, and assigns a team leader.  The Project Manager is responsible for assigning tasks to the various teams working on the projects(s).  The Team Leader assigns tasks to the team members. For all intents and purposes, the various team leaders in the class will mimic this because they are also responsible for assigning tasks to their team members working on this case (automating these activities). 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Additional functionality includes:  Retrieve and update information about various software projects.  Retrieve and update information about various project teams.  Provide information about specific team member assignments.  Provide information that allows for better assignment of team members to specific teams.  Provide information about the location of projects, teams assigned, and members assigned to the various teams, and what the team member skill sets are.  Perform function point analysis computations to determine the personnel cost of the project to be created. This activity would be part of the process of creating the project.  Provide project costing information to Accounting so that the client can be invoiced upon completion of project phases. The costing information will be determined from the function point analysis study alluded to above.  Retrieve projects and indicate which tasks have been completed and what tasks that are currently being worked on by each project. This is expanded upon later. 2.7 SUMMARY  The systems approach may be defined as a logical and disciplined process of problem- solving. The word process indicates an active on-going system that is fed by input from its parts.  A system thinking is vital for the success of a project. Project management systems urgently need new ways of strategically viewing, questioning, and analyzing project needs for alternative nontechnical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management.  The purpose of an SDLC methodology is to provide IT Project Managers with the tools to help ensure successful implementation of systems that satisfy University strategic and business objectives. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

 The integrated approach also models the payment terms, penalty and bonus clauses of a contract to fully reflect the impact a project schedule will have on expected cash- flow. In addition, the integrated approach to project management supports ‘what-if’ simulation to enable project planners and sponsors to understand the implications of various project planning scenarios under consideration  System Analysis Systems analysis is a process of collecting factual data, understand the processes involved, identifying problems and recommending feasible suggestions for improving the system functioning.  If a major change to a system is needed, a new project may have to be set up to carry out the change. The new project will then proceed through all the above life cycle phases. 2.8 KEYWORDS  Systems Approach- is the way in which a project management system operates as an entity in its environment that ultimately determines the success or failure of project management in the organization.  Project Management- Project management is the use of specific knowledge, skills, tools and techniques to deliver something of value to people. ... Each project is unique and differs from routine operations—the on-going activity of an organization— because projects reach a conclusion once the goal is achieved.  Trade-off- Trade off refers specifically to problems which demand finding a balance between the project’s „time and cost'.  Systems Thinking- Systems thinking can be described as 'a discipline for seeing wholes rather than parts, for seeing patterns of change rather than static snapshots, and for understanding the subtle interconnectedness that gives (living) systems their unique character'  SDLC- In systems engineering, the systems development life cycle is the process of creating, releasing, and maintaining an information system, which may comprise hardware, software, or both. The typical SDLC has six sequential phases: planning, analysis, design, implementation, testing, and maintenance. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

 Requirements Analysis- Requirements analysis involves defining, analyzing, validating, and aligning stakeholders' expectations for new projects while considering all possible conflicts.  Software Requirement Specifications- A software requirements specification (SRS) is a document that describes what the software will do and how it will be expected to perform. It also describes the functionality the product needs to fulfil all stakeholders (business, users) needs.  Product Architecture- Product architecture is the organization (or chunking) of a product's functional elements. It's the ways these elements, or chunks, interact. It plays a significant role in how to design, make, sell, use, and repair a new product offering. Linking to system-level design and the principles of system engineering.  Design Document Specification- A design specification is a detailed document providing a list of points regarding a product or process. For example, the design specification could include required dimensions, environmental factors, ergonomic factors, aesthetic factors, maintenance that will be needed, etc.  What-if Analysis- A simulation technique that allows project managers to determine and compare specific conditions’ effects on project schedules and objectives.  Systems Analysis- Systems analysis is the process of examining a business situation for the purpose of developing a system solution to a problem or devising improvements to such a situation.  Systems Design- Systems design is the process of defining elements of a system like modules, architecture, components and their interfaces and data for a system based on the specified requirements.  Data Flow Diagrams- A Data Flow Diagram (DFD) is a graphical representation of the flow of data through an information system (i.e.: shows business processes and the data that flows between them).  Data Dictionary- A Data Dictionary is a collection of names, definitions, and attributes about data elements that are being used or captured in a database, information system, or part of a research project. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

2.9 LEARNING ACTIVITY 1. Define systems approach to project management. _________________________________________________________________________ _________________________________________________________________________ 2. What is SDLC? ___________________________________________________________________________ _______________________________________________________________________ 2.10 UNIT END QUESTIONS A. Descriptive Questions 34 Short Questions 1. Discuss the steps in SDLC process. 2. What benefits are derived from a systems methodology? 3. Describe Systems Analysis and Design briefly. 4. Note on SDLC 5. Explain the techniques of system analysis &design Long Questions 1. Discuss the phases in systems approach to problem solving. 2. What are the goals of SDLC? 3. What is Integrated Project Management? 4. What are stages in Systems Design and Analysis? Explain. 5. Explain the tools & techniques of system analysis & design B. Multiple Choice Questions 1. RAD stands for a. Rapid Application Development. b. Required Application Development c. Rapid Application Developers CU IDOL SELF LEARNING MATERIAL (SLM)

d. Rapid Application Disposition 35 2. Which of the following is the first step in SDLC framework? a. Communication b. Feasibility Study c. Requirement Gathering d. System Analysis 3. The 2nd step in SDLC is _____? a. Feasibility study b. System Testing c. Maintenance d. Coding 4. The detailed study of existing system is referred to as _____? a. Feasibility Study b. System Analysis c. System Planning d. Design DFD 5. The 3rd step in software development life cycle (SDLC) is _____? a. System Design b. Coding c. Maintenance d. System Testing CU IDOL SELF LEARNING MATERIAL (SLM)

Answers 1 – a, 2 – a, 3 – a, 4 – a,5 – a 2.11 REFERENCES Reference Books  Kerzner, H. R. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.  Meredith, J. R., & Mantel Jr, S. J. (2011). Project management: a managerial approach. John Wiley & Sons.  Gallaugher, J. (2012). Understanding Software: A Primer For Managers. Information Systems: A Manager's Guide to Harnessing Technology (1.4 ed.). Irvington, NY, United States: Flatworld Knowledge, Inc.  Leau, Y. B., Loo, W. K., Tham, W. Y., & Tan, S. F. (2012). Software Development Life Cycle AGILE vs Traditional Approaches. In 2012 International Conference on Information and Network Technology (ICINT 2012) IPCSIT (Vol. 37).  McMurtrey, M. (2013). A Case Study of the Application of the Systems Development Life Cycle (SDLC) in 21st Century Health Care: Something Old, Something New?. Journal of the Southern Association for Information Systems,1(1). 36 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 3- PROJECT DEVELOPMENT – I STRUCTURE 3.0 Learning Objective 3.1 Introduction 3.2 Project Planning & Scheduling 3.3 Project Feasibility Studies & Practical Aspects 3.4 Project Technical Analysis 3.5 Project Market Analysis 3.6 Case Studies 3.7 Summary 3.8 Keywords 3.9 Learning Activity 3.10 Unit End Questions 3.11 References 3.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Understand about project planning and the steps involved.  Get an overview of planning and scheduling  Understanding briefly about scheduling, early and late start schedules and examples  Discuss about feasibility study and its content and understand the difference between a feasibility study and a business plan  Discuss project technical analysis and market analysis and understand the difference between the two. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

3.1 INTRODUCTION Fundamentally, 'Project planning' is all about choosing and designing effective policies and methodologies to attain project objectives. While 'Project scheduling' is a procedure of assigning tasks to get them completed by allocating appropriate resources within an estimated budget and time-frame. The project planning phase refers to:  Developing a project to make it ready for investment  Determines the jobs/tasks required to attain project objectives The project scheduling phase refers to:  Estimation of human resource and material requisite at every stage of the project; and approximate calculative time to complete each of these tasks.  Indicates the start and end date of each project task and logical connectivity among various project tasks/activities. Planning and scheduling are distinct but inseparable aspects of managing the successful project. The process of planning primarily deals with selecting the appropriate policies and procedures in order to achieve the objectives of the project. Scheduling converts the project action plans for scope, time cost and quality into an operating timetable. The translating of the project criteria for scope, time, cost, and quality and the requirements for human resources, communications, risk and procurement into workable “machinery” for the project team a critical interface juncture for the project team. Taken together with the project plan and budget, the schedule becomes the major tool for the management of projects. In addition, the integrated cost-time schedule serves as the fundamental basis for monitoring and controlling project activity throughout its life cycle. The planning and scheduling of large projects requires the integration of all the processes of project management. Project scope management is a balancing game of time, cost, and quality. The human element is ever present in dealing with the procurement, risk and communications aspects. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

3.2 PROJECT PLANNING AND SCHEDULING Planning is answering questions: what must be done, by whom, for how much, how, when, and so on? The basic planning steps are as follows:  Define the problem to be solved by the project.  Develop a mission statement, followed by statements of major objectives.  Develop a project strategy that will meet all project objectives.  Write a scope statement to define project boundaries (what will and will not be done).  Develop a work breakdown structure (WBS).  Using the WBS, estimate activity durations, resource requirements, and costs (as appropriate for your environment).  Prepare the project master schedule and budget.  Decide on the project organization structure—whether matrix or hierarchical (if you are free to choose).  Create the project plan.  Get all project stakeholders to sign off on the plan A major problem in project planning is determining how long tasks will take and what it will cost to do them. Inaccurate estimates are a leading cause of project failures, and missed cost targets are a common cause of stress and recrimination in project management. In the planning phase, the project structure is planned based on project appraisal and approvals. Detailed plans for activity, finance, and resources are developed and integrated to the quality parameters. In the process major tasks need to be performed in this phase are:  Identification of activities and their sequencing  Time frame for execution  Estimation and budgeting  Staffing Project Scheduling 39 CU IDOL SELF LEARNING MATERIAL (SLM)

Scheduling the project is the act of producing a time-table of work for the project showing when each activity is to begin and finish. The critical activities schedule themselves, but it is necessary to decide when all the non-critical activities are to take place. In other words there is no flexibility in scheduling the critical activities, but floats available with non-critical activities provide flexibility in scheduling them. The choice available in this respect is bounded by two schedules: Early Start Schedule and Late Start Schedule. Early Start Schedule The early start schedule refers to the schedule in which all activities start as possible. In this schedule- all events occur at their earliest because all activities start at their earliest starting time and finish at their earliest finishing time; Example: Figure 1  there may be time legs between the completion of certain activities and the occurrence of events which these activities lead to; and  all activities emanating from an event begin at the same time. The early start schedule suggests a caution attitude towards the project and a desire to minimize the possibility of delay. It provides a greater measure of protection against uncertainties and adverse circumstances. Such a schedule, however, calls for an earlier application of resources. 40 CU IDOL SELF LEARNING MATERIAL (SLM)

Late Start Schedule The late start schedule refers to the schedule arrived at when all activities started as late as possible. In this schedule  all events occur at their latest because all activities start at their latest finishing time;  some activities may start after a time lag subsequent to the occurrence of the preceding events; and  all activities leading to an event are completed at the same time. Example of Late Start Schedule The late start schedule reflects a desire to commit resources late-as late as possible. However, such a schedule provides no elbow room in the wake of adverse developments. Any anticipated delay results in increased project duration. In the above examples, project schedules are shown as graphs with a horizontal time scale. One of the primary features that distinguishes project management from general management is the special attention to scheduling. We will be exploring Project Scheduling and its techniques in detail in subsequent chapters. 3.3 PROJECT FEASIBILITY STUDIES AND PRACTICAL ASPECTS The growth and recognition of project management during the last few years has raised the need for feasibility studies. Quickly stated, a feasibility study is the initial design stage to any project or plan. As the name implies, a feasibility study is an analysis into the viability of an idea. 41 CU IDOL SELF LEARNING MATERIAL (SLM)

Feasibility studies help answer the essential question, “should we proceed with the proposed idea?” The objective study may be completed in conjunction with a SWOT planning process, which looks at the strengths, weaknesses, opportunities, and threats that may be present externally (the environment) or internally (resources). Feasibility studies help determine: a) Does the company possess the required resources or technologies; and b) Does the proposal offer a reasonable return vs. risk from the investment? Contents of a Feasibility Study The most-common feasibility study should include the following sections:  An Executive Summary  Description of Product or Service  Technology Considerations  Product or Service Marketplace  Identification of Specific Market  Marketing Strategy  Organization Structure  Schedule  Financial Projections Types of Feasibility Studies  Technical – hardware and software; existing or new; staffing skills  Financial – initial and future stakeholder investors; ROI benchmarks  Market- industry type; marketing characteristics; market growth; competition environment; sales projections  Organization- structure; legal; management team’s competency Feasibility Study vs. Business Plan A feasibility study is not a business plan. The separate roles of the feasibility study and the business plan are frequently misunderstood. The feasibility study provides an investigating function. It addresses the question of “Is this a viable business venture?” The business plan 42 CU IDOL SELF LEARNING MATERIAL (SLM)

provides a planning function. The business plan outlines the actions needed to take the proposal from “idea” to “reality.” The feasibility study outlines and analyzes several alternatives or methods of achieving business success. The feasibility study helps to narrow the scope of the project to identify the best business scenario(s). The business plan deals with only one alternative or scenario. The feasibility study helps to narrow the scope of the project to identify and define two or three scenarios or alternatives. The person or business conducting the feasibility study may work with the group to identify the “best” alternative for their situation. This becomes the basis for the business plan. The feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible. If a proposed business venture is considered to be feasible, a business plan is usually constructed next that provides a “road- map” of how the business will be created and developed. The business plan provides the “blueprint” for project implementation. If the venture is deemed not to be feasible, efforts may be made to correct its deficiencies, other alternatives may be explored, or the idea is dropped. The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made. 3.4 PROJECT TECHNICAL ANALYSIS Technical analysis is based on the description of the product and specifications and also the requirements of quality standards. The analysis encompasses available alternative technologies, selection of the most appropriate technology in terms of optimum combination of project components, implications of the acquisition of technology, and contractual aspects of licensing. Special attention is given to technical dimensions such as in project selection. The technology chosen should also keep in view the requirements of raw materials and other inputs in terms of quality and should ensure that the cost of production would be competitive. In brief the technical analysis included the following aspects. • Technology - Availability - Alternatives - Latest / state-of-art - Other implications • Plant capacity - Market demand 43 CU IDOL SELF LEARNING MATERIAL (SLM)

- Technological parameters • Inputs - Raw materials - Components - Power - Water - Fuel - Others 3.4.1 Factors Considered in Technical Analysis There are many factors needed to be considered in technical feasibility (Figure 2.1) of a project. Location selection 44 • Technology selection and sourcing • Capacity planning • Layout planning • Raw material planning • Utility (water, power, waste, etc) planning • Government incentive considerations • Scheduling implementation CU IDOL SELF LEARNING MATERIAL (SLM)

3.5 PROJECT MARKET ANALYSIS Before the production actually starts, the entrepreneur needs to anticipate the possible market for the product. He has to anticipate who will be the possible customer for his product and where his product will be sold. This is because production has no value for the producer unless it is sold. In fact, the potential of the market constitutes the determinant of possible reward from entrepreneurial career. Thus, knowing the anticipated market for the product to be produced become an important element in business plan. The commonly used methods to estimate the demand for a product are as follows: 1. Opinion polling method In this method, the opinion of the ultimate users. This may be attempted with the help of either a complete survey of all customers or by selecting a few consuming units out of the relevant population. 2. Life Cycle Segmentation Analysis It is well established that like a man, every product has its own life span. In practice, a product sells slowly in the beginning. Barked by sales promotion strategies over period its sales pick up. In the due course of time the peak sale is reached. After that point the sales begins to decline. After sometime, the product loses its demand and dies. This is natural death of a product. Thus, every product passes through its life cycle. The product life cycle has been divided into the following five stage: Introduction, Growth, Maturity, Saturation and Decline. A project evaluation begins with an idea, which gets refined with every attempt to formulate and evaluate it. It is an iterative process that continues until project implementation. At the very core of this idea lies the market need that the products of the project will aim to satisfy. The formulation of the project and its market should stem from the definition of this underlying market need. Needs are the building blocks from which markets are made. At a rather abstract level, we may thus think of the markets for thirst, hunger, health, shelter, sex, affection, entertainment, 45 CU IDOL SELF LEARNING MATERIAL (SLM)

education, information and knowledge, professional competence, adventure and excitement, leisure, or a combination of these and a multitude of sub-needs that stem from these fundamental needs. Market needs vary with people and situations. However, it should always be possible to define a market in terms of consumer needs. Defining the market need of the project also directs market research for assessing the competitiveness of the project and for estimating market penetration forecasts. Following the definition of the project's market the analyst should analyse the relevant market in three inter-dependent phases as follows:  understand and segment potential customers  study the competitors  assess project capabilities The object of studying the market is to provide the understanding needed to achieve a good match of the project's capabilities to the needs of potential customers taking into consideration the competitive profile of existing and potential suppliers. Hence, the three stages of analysing the market are strongly inter-related. The best depth is achieved by following a circular flow of analysis whereby research into one stage stimulates further research cues which when pursued enhance the understanding of the other stages. This iterative process should continue until a meaningful strategic appraisal for the project can be attempted. 3.6 CASE STUDIES CASE STUDY 1: Market Survey & Forecasts in a Health Segment—Best Practices, Opportunities, and Potential Acquisitions We conducted an extensive study for an industry-leading, global manufacturer. Our task was multi-faceted and complex. In particular, we sought detailed information about services and products provided to hospitals and clinics. We worked with the Client to determine market opportunities and go-to-market strategies. The work included numerous, in-depth interviews with end-users who direct specialty departments at hospitals. Key Project Details 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Our project required an analysis of the market for specialty health-related products and services. This included market size, potential growth, current competition, the regulatory environment, lists of current market prices, and points of pain at end-users. In addition, we provided SWOT and analysis of current competitors in the marketplace, and ranked competitors as possible acquisition targets. Data to be targeted within the hospital/clinic industry was very specific, including:  Market size and growth potential  Product offerings and price lists of competitors  Best operational practices and marketing practices  Distribution models and possible distribution partners  Barriers to entry  Go-to-market ideas, acquisition targets Recommendations We were able to identify, analyze and create a target list of hundreds of competitors, product offerings and distributors. We researched and listed go-to market concepts, best practices, and market opportunities. We conducted in-depth interviews with executives at end-user facilities in multiple locations to gain extremely valuable insights We provided an analysis of product and services innovations and marketing practices of current markets. 3.7 SUMMARY  Planning is answering questions: what must be done, by whom, for how much, how, when, and so on.  In the planning phase, the project structure is planned based on project appraisal and approvals. Detailed plans for activity, finance, and resources are developed and integrated to the quality parameters.  Scheduling the project is the act of producing a time-table of work for the project showing when each activity is to begin and finish.  There is no flexibility in scheduling the critical activities, but floats available with non-critical activities provide flexibility in scheduling them. The choice available 47 CU IDOL SELF LEARNING MATERIAL (SLM)

in this respect is bounded by two schedules: Early Start Schedule and Late Start Schedule.  A feasibility study is the initial design stage to any project or plan. As the name implies, a feasibility study is an analysis into the viability of an idea.  A feasibility study is not a business plan.  The feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible.  The feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible.  The formulation of the project and its market should stem from the definition of this underlying market need. 3.8 KEYWORDS  Project Planning- Project planning is usually the longest phase of the project management life cycle. It involves determining cost, schedule, and scope baselines and using these to create a detailed roadmap for executing project activities and producing deliverables.  Project Scheduling- Scheduling in project management is the listing of activities, deliverables, and milestones within a project. A schedule also usually includes a planned start and finish date, duration, and resources assigned to each activity.  Work Breakdown Structures- A Work breakdown structure is a comprehensive, hierarchical model of the deliverables constituting the scope of a project. It details everything a project team is supposed to deliver and achieve.  Project Master Plan- A master plan is a long-term dynamic planning document that provides a conceptual framework to drive project.  Start Schedule-A schedule which determines start date for a project.  Feasibility Studies- An evaluation of how likely a project is to be completed effectively, or how practical it is, taking resources and requirements into consideration. 48 CU IDOL SELF LEARNING MATERIAL (SLM)

 SWOT Analysis- SWOT stands for strengths, weaknesses, opportunities, and threats. It's a strategic planning technique that project managers use to help them analyze their projects' strengths and weaknesses, as well as to analyze and review any opportunities and threats they may face in the upcoming future.  Technical Analysis- Technical analysis represents study of the project to evaluate technical and engineering aspects when a project is being examined and formulated. It is a continuous process in the project appraisal system which determines the prerequisites for meaningful commissioning of the project.  Market Analysis- Market and demand analysis are carried out by the project manager in the process of evaluating a project idea. ... Market analysis studies market needs and consumer preferences for a given project idea and demand analysis aims at calculating the aggregated demand for a particular product or service.  Segmentation Analysis- Market segmentation analysis is the study of customers, divided into smaller groups, to understand their specific characteristics like behavior, age, income, and personality. 3.9 LEARNING ACTIVITY 1. What are the components of a project plan? ________________________________________________________________________ ______________________________________________________________________ 3. Explain the concept of Feasibility Studies. What is the need and relevance of Feasibility Studies? ___________________________________________________________________________ _______________________________________________________________________ 3.10 UNIT END QUESTIONS A. Descriptive Questions 49 Short Questions 1. What is Project Technical Analysis? 2. What is market analysis? CU IDOL SELF LEARNING MATERIAL (SLM)

3. Determine the budget Select the team organizational model. Determine project constraints. 4. What is project technical analysis 5. Note on project market analysis Long Questions 1. Define Project Planning and its tasks 2. Discuss early and late start schedule in project management 3. What are the contents of a Feasibility Study? Explain 4. Define Life Segmentation Analysis and give examples 5. What is the first step in project planning? \"Establish the objectives and scope. B. Multiple Choice Questions 1. While assessing your project processes, you have identified some uncontrolled process variations. Which of the following would be the appropriate chart you may use for this purpose? a. Control chart b. Pareto diagram c. PERT chart d. Critical path 2. What factors are used to determine the project lifecycle approach that will be used? a. Project uncertainty and organization culture b. Time and money c. Industry standards and resource availability d. Don’t know 3. Factors which are considered in technical analysis are _____ 50 CU IDOL SELF LEARNING MATERIAL (SLM)

Like this book? You can publish your book online for free in a few minutes!
Create your own flipbook