CU-MBA-SEM-IV-Project Management

a. Technical selection b. Capacity selection c. Scheduling d. All of these 4. In ___________ the opinion of the ultimate users are considered. a. Opinion polling method b. Life cycle segmentation analysis c. Both (a) & (b) d. None of these 5. In ___________ feasibility analysis, hardware & software are studied. a. Financial b. Market c. Technical d. Organization Answers 1 – a, 2 – a, 3 – d, 4 – a, 5 – a 3.11 REFERENCES Reference Books  Herroelen, Willy (2005). Project Scheduling – Theory and Practice. Production and Operations Management 14(4) 413-432.  Kloppenborg, Timothy J. (2009). Contemporary Project Management, South-western CENGAGE Learning, Mason, OH. 51 CU IDOL SELF LEARNING MATERIAL (SLM)

 Prasanna Chandra (1988), Projects, Preparation, Appraisal, Budgeting and Implementation, Tata McGraw Hill, New Delhi.  Sapru R.K., (1 994), Development Adnzinistration, Sterling, New Delhi.  United Nations ~Industrial Development Organisation (1998), Manual For  Evaluation of Industrial Projects, Oxford and IBH New York. 52 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 4- PROJECT DEVELOPMENT – II STRUCTURE 4.0 Learning Objective 4.1 Introduction 4.2 Project Planning & Scheduling 4.3 Project Feasibility Studies & Practical Aspects 4.4 Project Technical Analysis 4.5 Project Market Analysis 4.6 Case Studies 4.7 Summary 4.8 Keywords 4.9 Learning Activity 4.10 Unit End Questions 4.11 References 4.0 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. 53 CU IDOL SELF LEARNING MATERIAL (SLM)

4.1 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. 54 CU IDOL SELF LEARNING MATERIAL (SLM)

4.2 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 55 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. Late Start Schedule 56 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 4.3 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. 57 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 provides a planning function. The business plan outlines the actions needed to take the proposal from “idea” to “reality.” 58 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 4.4 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 - Technological parameters • Inputs - Raw materials - Components 59 CU IDOL SELF LEARNING MATERIAL (SLM)

- Power - Water - Fuel - Others 4.4.1 Factors Considered in Technical Analysis There are many factors needed to be considered in technical feasibility (Figure 2.1) of a project. Location selection • Technology selection and sourcing • Capacity planning • Layout planning • Raw material planning • Utility (water, power, waste, etc) planning • Government incentive considerations • Scheduling implementation 4.5 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 60 CU IDOL SELF LEARNING MATERIAL (SLM)

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: 3. 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. 4. 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, 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 61 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 4.6 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 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 62 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 4.7 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 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. 63 CU IDOL SELF LEARNING MATERIAL (SLM)

 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. 4.8 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.  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. 64 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 4.9 LEARNING ACTIVITY 1. What are the components of a project plan? _______________________________________________________________________ ______________________________________________________________________ 2. Explain the concept of Feasibility Studies. What is the need and relevance of Feasibility Studies? _________________________________________________________________________ _________________________________________________________________________ 4.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is Project Technical Analysis? 2. What is market analysis? 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 65 CU IDOL SELF LEARNING MATERIAL (SLM)

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 _____ 66 a. Technical selection b. Capacity selection c. Scheduling d. All of these CU IDOL SELF LEARNING MATERIAL (SLM)

4. In ___________ the opinion of the ultimate users are considered. a. Opinion polling method b. Life cycle segmentation analysis c. Both (a) & (b) d. None of these 5. In ___________ feasibility analysis, hardware & software are studied. a. Financial b. Market c. Technical d. Organization Answers 1 – a, 2 – a, 3 – a, 4 – a, 5 – a 4.11 REFERENCES Reference Books  Herroelen, Willy (2005). Project Scheduling – Theory and Practice. Production and Operations Management 14(4) 413-432.  Kloppenborg, Timothy J. (2009). Contemporary Project Management, South-western CENGAGE Learning, Mason, OH.  Prasanna Chandra (1988), Projects, Preparation, Appraisal, Budgeting and Implementation, Tata McGraw Hill, New Delhi.  Sapru R.K., (1 994), Development Adnzinistration, Sterling, New Delhi.  United Nations ~Industrial Development Organisation (1998), Manual For 67 CU IDOL SELF LEARNING MATERIAL (SLM)

 Evaluation of Industrial Projects, Oxford and IBH New York. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 5- PROJECT PLANNING STRUCTURE 5.0 Learning Objective 5.1 Introduction 5.2 Project Planning & Development 5.3 Project Scheduling Techniques 5.4 Scheduling Methods 5.5 Work Breakdown Structures 5.6 Project Planning Tools 5.7 Case Studies 5.8 Summary 5.9 Keywords 5.10 Learning Activity 5.11 Unit End Questions 5.12 References 5.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Understand the significance of project planning and development  Understand the need for Project Planning  Understand Project Scheduling and its Techniques  Discuss briefly project scheduling techniques such as Bar Charts, Activity Diagrams, network Diagrams etc  Understand techniques like Critical Path Method, PERT, GANTT etc  Understand Work Breakdown Structures and Work Packages  Understand project and process documentation 69 CU IDOL SELF LEARNING MATERIAL (SLM)

5.1 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. A project plan is an extensive document that includes project risks, budget, organization, scope, goals, objectives, and also project schedule. On the other hand, project schedules involve forecasted dates and sequences of the project activities. A plan focuses on the entire deliverables and processes. Planning starts immediately the organisation identifies the probable need for a project, and continues throughout the project life cycle. The emphasis changes from strategic planning through detailed planning to monitoring and control using the plan, and while the project is being implemented action may be required to maintain the plan and to replan if necessary. Project scheduling is a mechanism to communicate what tasks need to get done and which organizational resources will be allocated to complete those tasks in what timeframe. A project schedule is a document collecting all the work needed to deliver the project on time. Project scheduling is just as important as cost budgeting as it determines the timeline, resources needed, and reality of the delivery of the project. Project managers that have experience are better able to properly dictate the tasks, effort and money required to complete a project. 5.2 PROJECT PLANNING AND DEVELOPMENT Before commencement of any project, the first thing that we need to do is project planning. Any reasonable project manager* certainly understands the importance of planning a project well. Carefully planned project takes into account necessary aspects of a project (e.g. tasks, milestone, schedule, risks, communication, quality, etc.) and provide a plan which project team can refer during execution. This Phase describe the tasks and steps necessary to plan and schedule the activities that the Project Manager and the project team should perform to achieve a successful completion of a project. 70 CU IDOL SELF LEARNING MATERIAL (SLM)

A Project Plan is prepared which is defined as a management summary document that describes the essentials of a project in terms of its objectives, justification and how the objectives are to be achieved. It describes how all of the major activities under each project management function are to be accomplished, including that of overall project control. The project plan will evolve through successive stages of the project life cycle. A Project Plan is developed once the Business Case and Project Charter have been defined. It is assumed that the Business Case and the Project Charter have been prepared prior to the execution of this Phase and are of an acceptable quality and standard. Project planning is defined as developing the basis for managing the project, including the planning objectives, deliverables, interim work products, procedures, organisation, chain of activities, resources types and numbers, timing, routines and finances. Project planning is a complex and iterative task which typically involves: Identification of all of the tasks to be performed given the scope of the project and the technical and business. A project plan expresses the objectives & requirements of the project in terms of  Project Scope  Project Schedule  Resource Requirement  Project cost estimation  Project Quality and  Project Risk Management A project planning enables project manager to translate project requirement into Work breakdown structure (WBS), taskslist, Gantt charts, resource assignment and risk register, etc. Once project charter is approved, the project is formally initiated. Project planning activity can begin based on the project charter document, project requirement document. Why do we need project planning? The planning phase, is where the project solution is further developed in as much detail as possible and necessary steps are planned to meet the project's objective. In this step, the team 71 CU IDOL SELF LEARNING MATERIAL (SLM)

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 timeframes. 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 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. Project scheduling Project scheduling is one of the critical management tasks as it dictates the time frames in which the project will be completed, the budgets/costs in terms of resource requirements and the sequence of tasks to be completed. Project scheduling is defined as the process of determining when project activities will take place depending upon defined durations and precedent activities. Schedule constraints specify when an activity should start or end, based on duration, predecessors, external predecessor relationships, resource availability, target dates or other time constraints. Project scheduling is a complex and iterative task which typically involves:  Assigning resources to project tasks;  Balancing completion dates against the availability of the appropriate resources to complete all tasks within the available time;  Identifying dependencies between tasks so that they are scheduled in the correct sequence; 72 CU IDOL SELF LEARNING MATERIAL (SLM)

 Identifying realistic start and end points (elapsed time) to accommodate the number of mandays work for each given task; and  Critical path analysis to identify those tasks which are critical to the success and timely completion of the project. The Project Schedule includes the planned dates for starting and completing activities in one or more of the following forms:  Milestone;  Deliverable;  Planning and scheduling  Activity; and  Gantt. A Project Schedule is often confused with or referred to as a Project Plan. From the definitions above, it can be seen that the Project Schedule, whilst a key deliverable, is only one component of a Project Plan. The Project Plan assists a Project Manager in communicating with business work streams and gaining support for the project. A business manager with no technical knowledge should be able to understand the essence of the project through the project leader, the project concept and the project plan. Schedule management includes the processes required to ensure timely completion of the project. But before a project schedule is created, a project manager should typically have a work breakdown structure (WBS), the time estimate for each task, and a resource list with availabilities for each resource. A Schedule is created using a consensus-driven estimation method; the reason for this is that a schedule itself is an estimate: each date in the schedule is estimated, and if those dates do not have the buy-in of the people who are going to do the work, the schedule will be inaccurate. Setting overall completion dates must be done by the project team and key stakeholders. The project manager assists by assimilating information about scope, budget, resources, and estimating times for completion of project tasks. Once an overall schedule is set, the project manager is responsible for monitoring the progress of the project and revising the schedule if needed. This must be done in consultation with project team members who are doing the work. There will typically be give-and-take as 73 CU IDOL SELF LEARNING MATERIAL (SLM)

a project proceeds among budget, features, and schedule. It is essential for the project manager to keep all participants informed as to current schedule status The schedule development process should generate a project schedule that meets the following criteria:  Complete— the schedule must represent all the work to be done. This is why the quality and completeness of the WBS is so important.  Realistic— the schedule must be realistic with regard to time expectations and the availability of beneficiaries to participate  Accepted— the schedule must have \"buy-in\" from team members and stakeholders, especially the beneficiaries. 5.3 PROJECT SCHEDULING TECHNIQUES Here are some tools and techniques for combining these inputs to develop the schedule: Schedule Network Analysis – This is a graphic representation of the project's activities, the time it takes to complete them, and the sequence in which they must be done. Project management software is typically used to create these analyses – Gantt charts and PERT Charts are common formats.  Critical Path Analysis – This is the process of looking at all of the activities that must be completed, and calculating the 'best line' – or critical path – to take so that you'll complete the project in the minimum amount of time. The method calculates the earliest and latest possible start and finish times for project activities, and it estimates the dependencies among them to create a schedule of critical activities and dates.  Schedule Compression – This tool helps shorten the total duration of a project by decreasing the time allotted for certain activities. It's done so that you can meet time constraints, and still keep the original scope of the project. You can use two methods here:  Crashing – This is where you assign more resources to an activity, thus decreasing the time it takes to complete it. This is based on the assumption that the time you save will offset the added resource costs.  Fast-Tracking – This involves rearranging activities to allow more parallel work. This means that things you would normally do one after another are now done at the 74 CU IDOL SELF LEARNING MATERIAL (SLM)

same time. However, do bear in mind that this approach increases the risk that you'll miss things, or fail to address changes. Scheduling is the determination of the timing of activities and follows logically from the planning process. 5.4 SCHEDULING METHODS There are four basic scheduling methods that can be used:  Bar chart  Line of balance chart  Network-based diagrams Bar chart: Bar charts were first used by Henry Gantt in the early part of the 20TH century and accordingly are also referred to as Gantt charts. Bar charts are perhaps the most familiar method of scheduling Line of balance: The LOB is used when the activities or the work within a project consists of a number of units that are the same. LOB can be used for subset routines which may be a repetitious part of a network schedule. It is often used where the same activities are to be performed by the same team. Network-based diagrams: Modern planning and scheduling techniques have their origins through two developments known as CPM (critical path method) and PERT (program evaluation and review technique). There are two types of basic diagrams used in network scheduling: 1. Activity-on-Arrow (AOA) and 2. Activity-on-Node (AON) Activity-on-Arrow: AOA is the scheduling method applied when using PERT. AOA diagrams, like logic diagrams should always move from left to right, and as shown by Figure 4.1 the lines or arrows should always consist of a sloping section and a horizontal section. The AOA is also 75 CU IDOL SELF LEARNING MATERIAL (SLM)

known as the \"i-j\" method; it was referred to as the \"circle and connecting line\". In this type of diagram the nodes show events; these are activities which have no duration — that is they take no time, such as the start or finish of an activity. The arrows connecting the nodes represent the activities. The nodes are usually numbered as a means of identifying the activities in the network .In activity on arrow (AOA) diagrams, \"i\" is the designation given to the start node of an activity and \"j\" is the designation given to the finish node of the same activity. Each node should have its own unique number. The same number should not be used more than once. The best procedure is to work out the sequence of activities first without nodes and then number the nodes after a satisfactory network has been drawn. Usually \"j\" number node is greater than \"i\" number node, but this is not mandatory. Forward numbering helps prevent loops. Figure 4.1 Activity-on-Arrow diagrams The numbering of nodes is very important because the activities are normally referred to by their \"i\" and \"j\" designators. For example, if \"H\" is activity 25-35 then i=25, j=35. Both i and j represent events and points in time. Unlike activities, events do not need time for their execution. In AOA the nodes are represented by circles big enough to contain an event number, it is advisable not to use consecutive numbers. Activity-on-Node: The AON diagram is constructed using boxes containing activities, these boxes are called nodes. Arrowed lines, representing relationships with other activities, flow into the left of the node and leave on the right of the node. The arrowed lines, as in logic diagrams, show the \"flow\" or sequence of the activities. Lines in AON diagrams represent the logical relationships among the activities. It is normal to draw these lines in what is referred to as 76 CU IDOL SELF LEARNING MATERIAL (SLM)

staff format, which means the lines are either vertical or horizontal and all connections being orthogonal. In AON scheduling, the convention is that only one kind of dependency or logical relationship between activities is allowed — that is, ''finish-to-start'' (FS). In other words, the preceding activity must be complete before the succeeding activity can commence. As FS dependencies are the most common relationship found in practice between activities, then the AON network can be accepted as a valuable method of analyzing plans. Figure 4.2 Activity-on-Node diagrams 5.4.1 Critical Path Method (CPM) The most widely used scheduling technique is the critical path method (CPM) for scheduling. This method calculates the minimum completion time for a project along with the possible start and finish times for the project activities. Critical path method models the activities and events of a project as a network. Activities are shown as nodes on the network and events that signify the beginning or ending of activities are shown as arcs or lines between the nodes. The figure below shows an example of a CPM network diagram: Figure 4.3 Critical path method diagrams 77 CU IDOL SELF LEARNING MATERIAL (SLM)

5.4.2 PERT (Programme Evaluation Review Technique) The Programme Evaluation and Review Technique (PERT) are employed for planning and controlling the projects involving uncertainties. PERT is an event-oriented technique. Its basis is a network of events in which the activities are derived by connecting the events. It lays stress on measuring the uncertainty in activity times by using the three-time duration estimation method. The figure below shows a simple example of a PERT diagram. Figure 4.4 Programme Evaluations and Review Technique 5.5 WORK BREAKDOWN STRUCTURES The WBS provides a clear description of the project’s deliverables. It describes the “what is to be done” not the process or schedule. Therefore the WBS:  Is a deliverable breakdown structure  Is a hierarchical decomposition of the work – the deliverables are decomposed to a level where a work package can be defined (see work package below)  Is a graphical representation or textual outline of the project scope  Represents 100% of the work defined by the project scope and captures ALL deliverables, internal, external, and interim, including project management The WBS helps: 78  Develop the work packages  Define the project tasks CU IDOL SELF LEARNING MATERIAL (SLM)

Develop the schedule  As a tool to communicate the project to stakeholders An example of a Work Breakdown Schedule is included in Appendix “A”. Work Packages Work packages are the lowest level in a WBS decomposition where an activity duration can be reliably estimated and managed. A Work Package can be created where a Project Manager (PM) deems it necessary to help develop the project Schedule. A work package details a level of work to be completed. It would contain a description of the work, details of constraints, and agreement between the PM and the team or individual doing the work, that the work can be done within the constraints. Assumptions would be defined in the work package depending on the needs of the project. Work packages are particularly useful where contractors or other departments are involved in the project. A work package should define durations of 4 to 6 weeks. The PM would assign the work package and authorize the work to be completed according to the project Schedule. The PM would monitor and control the project at the work package level and not necessarily at the task level. An example of a Work Package is included in Appendix “B”. Activities and Tasks Tasks are the lowest level of work defined in a schedule. A task is the work to be done and contains a description, the start and end dates, the resource assigned to work on the task and any dependencies on other tasks. Task duration should be 10 to 15 days but no more than 20 days of effort in order to allow progress to be measured. A collection of similar tasks are grouped together and summarized as an Activity. This aids in the management of progress reporting and communication to stakeholders, where each task does not need to be communicated individually in detail. 79 CU IDOL SELF LEARNING MATERIAL (SLM)

Tasks are usually defined by the person who will perform the task. The Project Manager, Resource Manager and others who have knowledge of the work required, would be involved with identifying the tasks and the tolerances for how long they will take using the estimation . The PMO is currently using the PERT method to determine the effort and duration required on a task or activity. Creating the Work Breakdown Structure The WBS can be structured in either of two ways. The first approach structures the WBS primarily from a deliverables perspective, in that the highest level (Level 1) entries represent the major deliverables that the project is committed to create. The second approach is from a life cycle perspective, in that the highest level entries in the WBS correspond to the major phases of the life cycle. Steps to create a deliverable-based structure: 1. Take the committed deliverables from your project charter, statement of work, or other project concept documentation. This list of deliverables becomes your Level 1 (highest level) entries within the WBS. All WBS Entries that directly correspond to deliverables should be named as noun deliverables or adjective/noun deliverables. Examples include “Specification” or “Design Specification”. 2. Take each of these highest level entries, and decompose them into their component parts (each becoming a WBS Entry). Each component must be logically distinct, as everyone who sees the WBS needs to understand what the deliverable or outcome will be from each WBS Entry. What logically distinct means is that the breakdown of a higher level deliverable to its lower level components must make sense. Each of the lower level components musts be distinguishable as unique, and they must be recognizable as part of the higher level deliverable. Continue the decomposition until you reach an appropriate level of detail. This last very vague statement is intentionally so, as the level of detail in a WBS should be based on the complexity of the project, the level of risk in the project, and the level of control that the project manager needs to plan and manage the project. However, a general guideline in many IT organizations is that each lowest level entry in the WBS should be assigned to a 80 CU IDOL SELF LEARNING MATERIAL (SLM)

single individual, and that individual should be able to complete it in 1 to 10 working days. This lowest level of decomposition is the Activity level. Activities should be named as active verb / adjective / noun deliverables. Examples include “Create Design Specification” or “Update Design Specification”. By adding the active verb, you better communicate to the assigned team member not only what the outcome is (the deliverable) but you also communicate what kind of process the assigned person is going to perform (create or update). Note: You should never use terms like “perform”, as they do not communicate what is expected. When all committed deliverables have been decomposed to the appropriate level of detail (becoming Activities), examine each WBS Entry and Activity to see if there are required deliverables that are not already in the WBS but that will be needed to create something that already is in the WBS. As an example, you may have a deliverable defined for a software component (system, subsystem, or function). However, to deliver this into the production environment, you may also need preceding deliverables such as test results, compiled code, design documentation, and requirements documentation. These preceding deliverables, even though they haven’t been committed to, still must be created and therefore must be in the WBS. Take all these required deliverables, and decompose them to the appropriate level of detail, just as you did for the committed deliverables. Level the hierarchy to the extent that it is possible. At this stage of development, the WBS may have some Activities at level two, some at level three, and so on. See if the hierarchy can be modified so that the number of levels that Activities fall into is reduced to a short range. One way to do this is to examine the number of Activities falling within a single WBS Entry. If the number is less than three to five, see if these Activities can be merged with another WBS Entry’s Activities. If the number is more than 10, see if the WBS Entry can be split into two logically distinct components, each with its appropriate Activities. The general idea is to attempt to have each WBS Entry that decomposes into Activities have approximately 7 plus or minus 2 (5 to 9) Activities. Do this for every WBS Entry, attempting to get each entry in the WBS to decompose into 5 to 9 lower level entries. This should be considered as a nice to have, and not a requirement. You should never make these changes if the merger or split of a WBS Entry does not make logical sense. 81 CU IDOL SELF LEARNING MATERIAL (SLM)

When evaluating whether to merge two WBS Entries, the question to ask is, “are these two deliverables really part of one deliverable, and is that deliverable distinct from all others?” If the answer is yes, then you should combine them, otherwise don’t. When evaluating whether to split a WBS Entry with too many components, the question to ask is, “does this WBS Entry deliverable have two or more major components, and can the already defined lower level deliverables be combined into these proposed higher level ones?” If the answer is yes, then you can split the WBS Entry. If the answer is no, then leave it as is. When you think you have a completed WBS, validate it using a bottom-up approach. A bottom-up validation works like this:  For each WBS Entry that decomposes into Activities, ask yourself the question: “If I had all the deliverables from each of these Activities, would my WBS Entry deliverable be complete?” If the answer is yes, move on to the next WBS Entry. If the answer is no, add in the missing Activities.  Once the evaluation of the lowest level WBS Entries and Activities is complete, examine the next higher level of WBS Entries. Keeping with our three-level example, for each Phase ask: “If I had the deliverables from the WBS Entries that are part of this Phase, would the Phase deliverable be complete?” If the answer is yes, move on to the next one, if the answer is no than add in the missing WBS Entries or go back to step 4 and rebalance the hierarchy, or both. When you have completed your bottom-up validation, it is now appropriate to re-evaluate the entire WBS one last time by comparing the currently defined WBS deliverables to the originally defined objectives for the project. Ask yourself the question, “If I had all these deliverables, would I achieve the planned objectives for the project?” If the answer is yes, you can move on to the next step. If the answer is no, you still have a lot of work to do. 5.6 PROJECT PLANNING TOOLS Some commonly used tools are: 82  Network Diagrams. ...  Critical Path Method. ...  Gantt Charts. ...  Project Evaluation and Review Technique. ...  Work Breakdown Structure. ... CU IDOL SELF LEARNING MATERIAL (SLM)

 Project Documentation. All the techniques have been discussed earlier in the chapter. Project Documentation Large software development projects, irrespective of application, generate a large amount of associated documentation. If this were all to be printed, the documentation would probably fill several filing cabinets for moderately large systems; for very large critical systems, that must be externally certified, it may fill several rooms. A high proportion of software process costs, especially for regulated systems, is incurred in producing this documentation. Furthermore, documentation errors and omissions can lead to errors by end-users and consequent system failures with their associated costs and disruption. Therefore, managers and software engineers should pay as much attention to documentation and its associated costs as to the development of the software itself. The documents associated with a software project and the systems being developed have a number of associated requirements:  They should act as a communication medium between members of the development team.  They should be an information repository to be used by maintenance engineers.  They should provide information for management to help them plan, budget and schedule the software development process.  Some of the documents should tell users how to use and administer the system.  They may be essential evidence to be presented to a regulator for system certification. Satisfying these requirements requires different types of document from informal working documents through to professionally produced user manuals. Software engineers are usually responsible for producing most of this documentation although professional technical writers may assist with the final polishing of externally released information. For large projects, it is usually the case that documentation starts being generated well before the development process begins. A proposal to develop the system may be produced in response to a request for tenders by an external client or in response to other business strategy documents. For 83 CU IDOL SELF LEARNING MATERIAL (SLM)

some types of system, a comprehensive requirements document may be produced which defines the features required and expected behavior of the system. During the development process itself, all sorts of different documents may be produced – project plans, design specifications, test plans etc. The set of documents that you have to produce for any system depends on the contract with the client for the system, the type of system being developed and its expected lifetime, the culture and size of the company developing the system and the development schedule that it expected. However, documentation produced during a software project normally falls into two classes: Process documentation: These documents record the process of development and maintenance. Plans, schedules, process quality documents and organizational and project standards are process documentation. 2. Product documentation This documentation describes the product that is being developed. System documentation describes the product from the point of view of the engineers developing and maintaining the system; user documentation provides a product description that is oriented towards system users. Process documentation is produced so that the development of the system can be managed and is an essential component of plan-driven approaches to software engineering. An important goal of agile approaches is to minimize the amount of process documentation produced as this adds overhead without contributing to the functionality of the system being developed. Product documentation is used after the system is operational but is also essential for management of the system development. The creation of a document, such as a system specification, may represent an important milestone in the software development process. An argument that is made by proponents of agile methods is that the requirement for documentation is one of the major problems with ‘traditional’ software processes. It costs a lot and takes a lot of time to produce and maintain the documentation and this, inevitably, slows down system production. They argue that as requirements change so quickly, documentation is out-of-date almost as soon as it is written and so is, essentially, worthless. I have a great deal of sympathy for this view. It is often the case that documentation is unread and out of date and, as I discuss in the next section, I think that it is possible to minimize the amount of process documentation required. However, there is still a need to produce product documentation, which describes the system to users and potential system buyers. This product documentation may be user manuals that can be printed or may be web-based documentation that describes the system features and how they can be used. When systems are developed by distributed teams, especially if these are in different countries, the informal communication mechanisms 84 CU IDOL SELF LEARNING MATERIAL (SLM)

favoured by agile methods such as regular, short meetings, may not work effectively and more formal written documentation may be needed to facilitate developer communication. The contract between a contractor and sub-contractors may specify the documentation that will be produced by the contractor and the corresponding documentation generated by each sub-contractor. Documentation may also be required for long-lifetime systems, irrespective of the development technique used. The critical documentation for such systems is not necessarily detailed information about the system design – rather, it is documentation about the critical dependencies in these systems and the rationale for the design decisions that have been made. So, in situations where you rely on other systems, you should always document the systems and the features used. Then, if changes to these systems are made and problems occur, these can be located and, hopefully, quickly repaired. 5.7 CASE STUDIES HISARNA – DEVELOPING A SUSTAINABLE STEEL PRODUCTION PROCESS The steel industry in Europe was looking for a way to increase the efficiency of steel production, and redesign the production process in order reduce emissions in order to meet the European Union’s targets of cutting the emissions by 80-95% of the 1990 levels by 2050. The steel industry formed a consortium along with universities and research organizations to identify technologies to help reduce carbon emissions, ensure energy efficiency, and achieve flexibility in the selection of raw materials in the steel industry. The consortium chose the European unit of India-based steel maker Tata Steel to execute a project to develop new steel making technology. The result was a new steel making technology HIsarna. This was developed and tested in Tata Steel’s IJmuiden plant in the Netherlands. The case describes the way in which the project was developed, executed, by bringing in different technologies, knowledge, and skills from various stakeholders. 5.8 SUMMARY  Before commencement of any project, the first thing that we need to do is project planning. Any reasonable project manager* certainly understands the importance of planning a project well.  Project planning is a complex and iterative task which typically involves Identification of all of the tasks to be performed given the scope of the project and the technical and business. 85 CU IDOL SELF LEARNING MATERIAL (SLM)

 The planning phase, is where the project solution is further developed in as much detail as possible and necessary steps are planned to meet the project's objective.  Project scheduling is one of the critical management tasks as it dictates the time frames in which the project will be completed, the budgets/costs in terms of resource requirements and the sequence of tasks to be completed.  Schedule management includes the processes required to ensure timely completion of the project. But before a project schedule is created, a project manager should typically have a work breakdown structure (WBS), the time estimate for each task, and a resource list with availabilities for each resource.  A work package details a level of work to be completed. It would contain a description of the work, details of constraints, and agreement between the PM and the team or individual doing the work, that the work can be done within the constraints. Assumptions would be defined in the work package depending on the needs of the project.  Documentation may also be required for long-lifetime systems, irrespective of the development technique used. The critical documentation for such systems is not necessarily detailed information about the system design – rather, it is documentation about the critical dependencies in these systems and the rationale for the design decisions that have been made. 5.9 KEYWORDS  Project Scheduling Techniques- Project scheduling is one of the most important processes which combines time, tasks, resources, and costs in a project. Basically, work schedules are created by listing the activities, determining activity durations, and assigning activity relationships. Gantt Charts, PERT Charts, and CPM are the most common project planning and scheduling techniques and methods used for creating work schedules. One or all of these network scheduling techniques can be used based on the requirements and the complexity of the project.  Network Diagrams- A network diagram is a visual representation of a computer or telecommunications network. It shows the components that make up a network and how they interact, including routers, devices, hubs, firewalls, etc 86 CU IDOL SELF LEARNING MATERIAL (SLM)

 PERT Chart- A PERT chart is a project management tool that provides a graphical representation of a project's timeline. The Program Evaluation Review Technique (PERT) breaks down the individual tasks of a project for analysis.  GANTT Chart- A Gantt chart is a type of bar chart that shows all the tasks constituting a project. Tasks are listed vertically, with the horizontal axis marking time. The lengths of task bars are to scale with tasks’ durations.  Activity Diagrams- An activity diagram is a behavioral diagram i.e. it depicts the behavior of a system. An activity diagram portrays the control flow from a start point to a finish point showing the various decision paths that exist while the activity is being executed.  Scheduled Compression- A schedule compression technique speeds up projects without affecting scope by decreasing the duration of a project’s critical path  Critical Path Analysis-Critical path analysis (CPA) is a project management technique that requires mapping out every key task that is necessary to complete a project.  Network Diagrams-network diagram is a schematic depicting the nodes and connections amongst nodes in a computer network or, more generally, any telecommunications network. Computer network diagrams form an important part of network documentation.  Project Documentation- Project documentation is the process of recording the key project details and producing the documents that are required to implement it successfully. Simply put, it's an umbrella term which includes all the documents created over the course of the project. 5.10 LEARNING ACTIVITY 1. What is the difference between Project Planning and Scheduling? _________________________________________________________________________ _________________________________________________________________________ 2. What are Project Scheduling Techniques commonly used? 87 CU IDOL SELF LEARNING MATERIAL (SLM)

_________________________________________________________________________ _________________________________________________________________________ 5.11 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Discuss 3 commonly used Scheduling Tools. 2. What are the keys to Project Planning? Discuss in detail. 3. Discuss the differences between PERT and GANTT. Which would you recommend for an ITES organization? 4. Note on CPM 5. Explain project planning tools Long Questions 1. What is a Project Plan? Discuss its scope. 2. What are the various Project Scheduling Techniques? Discuss briefly. 3. Discuss PERT method briefly 4. What are Work Breakdown Structures? Discuss briefly 5. Discuss the significance of Project Documentation 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 88 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Critical Path is always a. The longest path b. The shortest path c. Middle path d. most profitable path 3. A bar chart is drawn for a. time versus activity b. activity versus resources c. resources versus progress d. progress versus slack 4. The estimate of shortest possible time under ideal conditions is called a. optimum time estimate b. optimistic time estimate c. pessimistic time estimate d. average time estimate 5. Which of the following is a project scheduling method that can be applied to software development? a. Both PERT and CPM b. PERT chart c. CPM d. CMM Answers 89 CU IDOL SELF LEARNING MATERIAL (SLM)

1 – a, 2 – a, 3 – a, 4 – a, 5 – a 5.12 REFERENCES Reference Books  Ahn, T. and S. SeIcuk Erenguc (1998): The Resource Constrained Project Scheduling Problem with Multiple Crashable Modes: A Heuristic Procedure. European Journal of Operational Research 107,250-259.  B1azewicz, J.; J.K. Lenstra, and A.H.G. Rinnooy Kan (1983): Scheduling Subject to Resource Constraints: Classification and Complexity. Discrete Applied Mathematics 5, 11-24  Larson, Erik W., and Clifford F. Gray. 2011. Project Management: The Managerial Process, Sixth Edition. New York: McGraw-Hill Education.  Rouse, Margaret. 2015. “Critical Path Method CPM).” WhatIs.TechTarget.com. January.  Ratajczak-Ropel E and Skakovski A 2018 Project scheduling models Studies in Systems, Decision and Control 108 25–32 90 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 6- TOOLS & TECHNIQUES 91 STRUCTURE 6.0 Learning Objective 6.1 Introduction 6.2 Kepner Tregoe, Prince 2 & Log Frames 6.3 Systems Model 6.4 Work Packages 6.5 Work Packages in ERP 6.6 Case Studies & Scenarios 6.7 Summary 6.8 Keywords 6.9 Learning Activity 6.10 Unit End Questions 6.11 References 6.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Understand about project management and its various tools.  Understand network diagrams and its assumptions  Understand critical path method, various activities and slack times.  Understand PERT and GANTT charts and their various features.  Understand work breakdown structures and their deliverables  Understand KEPNER TREGOE model and its steps  Understand and discuss about PRINCE 2, its steps and deliverables  Understand E=MC systems model, work packages and their role in ERP. CU IDOL SELF LEARNING MATERIAL (SLM)

6.1 INTRODUCTION Project management tools and techniques that really work; that’s the problem statement. We live in a world where we are bombarded with different scenarios and projects in our daily work life. Eventually, these variables affect us to the extent where productivity suffers at multiple levels. We simply can’t wrap our heads around such complexities, even if we have a proper strategy or a leader with an effective mind-set that can help us get through that ordeal. These strategies and tools are properly necessary so that we can get the job done without spending more and more of our revenue and manpower, because if we spend that much energy on work activities without a proper direction in mind then we are in for serious trouble down the road. Project management involves decision making for the planning, organizing, coordination, monitoring and control of a number of interrelated time bound activities. Project Manager therefore, often depends on tools and techniques that are effective enough not only for drawing up the best possible initial plan but also capable of projecting instantaneously the impact of deviations so as to initiate necessary corrective measures. The search for an effective tool has resulted in development of a variety of techniques. Tight deadlines, limited resources, tricky stakeholders and demanding customers – for anyone who has ever managed a project, these things are all too familiar. As a manager you want to deliver high quality projects to meet the specification, stakeholder needs, deadline – and budget! You know that you need all the help and resources you can get, and central to success is the need for project planning. Effective project planning is even more vital when you’re in charge of a new and unfamiliar project, with a high degree of uncertainty and risk. So the challenge is: how do we go about organising people and resources – and preparing for unforeseen challenges? The answer is to use one or more of the established project planning models out there. But how do you choose the one that’s most relevant to your project? Project Management is not a simple science. It is a complex amalgam of a wide variety of concepts that cover strategy to people management, IT communications to number crunching. 92 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Network Diagrams: These diagrams are one of the most important tools in project management that can be used in the process of project planning. Also known as an “Arrow” diagram, because the diagram consists of different arrows that can be used to connect different activities and also to display precedence. By using these arrows you can also show interdependencies between different activities of a project. In the process of forming the Network Diagram, there are always some assumptions to be made. The first assumption to be dreamt up is that all pending or on-going activities have been completed before starting new ones. The second assumption that has to be made is that all the arrows used in the Network diagram indicate a logical priority. What that means is that the direction of the arrow is displaying the unique sequence that needs to be followed for the proper execution of activities. The last but not the least assumption is that Network Diagrams have no choice but to start with a single event and end with a single event because there is no place for dual start and endpoints. If the project manager wants to calculate the total duration of a specific project, they need to define a total of four dates for each specific task. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

The first two are the start dates. The first date in these two is Early Start which is the earliest date on which the task can be started. The second date in those or Late Start is the date on which the task absolutely has to start if it hasn’t already. This same logic goes for the latter two of the four dates mentioned above. Those are the end dates. Another important element in the Network Diagram is the Slack time. This is the time that is allowed for the task to be delayed but not more than that. Why? Because eventually, it will cause a delay in the overall timeline. 2. Critical Path Method: CPM is an essential tool that is thoroughly used by project managers. This is because this tool can monitor and assess the progress of the project in real-time. It is to ensure that all the on- going projects performed by the team are going to finish in time. The Critical Path of the project is the longest sequence of activities performed on the network diagram. It is also characterized as having zero slack time for all activities that are involved in a particular sequence. So, if there’s the slightest delay in any activity, it will cause a delay in the overall project deployment. Zero Slack time is bad but also good in some ways. Good because the project managers will remain more vigilant when they will know that the slightest error can hinder the progress of the project. Also, project managers can divert resources from a specific project to some other project if they need to. This makes sure that the appropriate resources are used somewhere important and the project is not delayed. But while doing that, the project manager has to ensure that the activity in question does not become a critical path activity due to the reduction in the number of resources. 94 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Gantt Charts A Gantt chart is a visual representation of all the tasks related to your project scheduled overtime. They are used to plan projects of all sizes and shapes. Why? Because they are an incredible tool to show the work that is scheduled to be done on a project on a specific day. They also show the whole tenure of a particular project in one simple view. Here are some of the features of a project you can monitor on a Gantt Chart.  The start and end dates of a project  What are the project tasks  Who are the team members involved in each project  Who is working on each individual task  What is the duration of each individual task  How all of the tasks are linked or are they dependent on each other 4. Project Evaluation and Review Technique (PERT) The Project Evaluation and Review Technique, more commonly known as PERT is a form of Network Diagram PM tool that is also used to figure out the critical path of the project. This 95 CU IDOL SELF LEARNING MATERIAL (SLM)

technique makes scheduling complex projects easier while creating realistic estimates of the duration of each individual activity. It is a form of Network Diagram but it’s different in a way that it uses three kinds of estimates rather than just one. The first estimate, also known as T-O, assumes that the activity will never falter and all the factors that are related to the activity are going to be in favour of it. The second estimate, also known as ‘most likely’ assumes that the activity will eventually encounter some issues during the execution phase. It will also provide some contingency buffers to fix the issues. The final estimate is known as the pessimistic estimate which assumes that whatever factor that can possibly go wrong and ruin the activity is bound to happen no matter what. 5. Work Breakdown Structure: WBS is an amazing tool in the project management paradigm. It shows a hierarchical breakdown of work activities that are used to define the scope of the project. It is also used to identify all of the required deliverables that are needed in the development of the project. Having all these details spread out in the open enables not just the project managers but also all the other stakeholders to understand the project scope. Also, it helps the teams to understand exactly what needs to be developed. The beauty of WBS is that it divides the project deliverables and the work required into very small components that are easily manageable. The lowest level items also known as Work Packages can be monitored, assessed, controlled and easily cost estimated. 96 CU IDOL SELF LEARNING MATERIAL (SLM)

6. Project Documentation Lastly, project documentation is to conclude all of the work that we discussed above in one document. These documents provide all the details about the project and everything inside it. There are created to eliminate any confusion about the project and also prevent any conflict between the stakeholders on the status of the project. All the above techniques have been discussed in detail in the previous chapter. 6.2 KEPNER TREGOE, PRINCE 2 AND LOG FRAMES Kepner-Tregoe The model is a comprehensive systematic step-by-step approach to problem solving and decision-making. Kepner-Tregoe is especially useful when you’re dealing with a complex stable project system and trying to work out what the variances are or might be. For example it was used to help analyse what went wrong during the Apollo moon shots when launch processes went wrong. It was developed by Dr. Charles Kepner and Dr. Benjamin Tregoe based on their research into critical thinking. The model is broken down into four distinct processes, each designed to address a specific aspect of project management:  Definition: weighing up the need for the project and identifying specific results. Clarifying the timing, cost, resources and performance parameters.  Planning: determining ‘who with’, ‘do what’ and by when, and managing risk.  Implementation: the delivery, monitoring and evaluation of the project.  Project management communication: this process is woven throughout definition, planning, and implementation. It includes people management and addressing stakeholder involvement and satisfaction. The Kepner-Tregoe approach is designed to enable decision makers to respond to complex, repetitive challenges. So it’s particularly useful for ‘closed’ projects – which are essentially repeat projects – where the outcome can be clearly defined from the beginning. The downside is that it’s not as applicable to ‘open’ or ‘messy’ projects, which involve new or unknown situations, or where the project outcomes are uncertain. PRINCE 2 97 CU IDOL SELF LEARNING MATERIAL (SLM)

PRINCE2 (Projects in Controlled Environments) was launched as a project management tool in 1996 but it first originated as PRINCE 1 in the 1970s as a framework for the development and support of Information Technology systems through a structured project management approach. The PRINCE approach is rigorous, with very formalised roles, responsibilities and channels of communication for each aspect of the project. It is ideal for breaking down large and complex projects, which run over a period of time into manageable stages. The strong responsibility element ensures resource commitment from management as part of the approval to proceed. It is now the UK’s standard model for project management widely used by Local Authorities and the NHS. The model consists of eight processes, which detail what must be done to bring about a particular outcome including; making decisions, gathering information and identifying results: A useful feature of PRINCE2 is the business case – the justification behind the project – though this is really only explored at the start of a project. PRINCE2 can only work if organisations abide by the key principles – they cannot pick and choose from the methodology. Because of this, use of this model is a more major organisational undertaking than working with less prescriptive project management tools. The advantage of PRINCE2 is that the output and deliverables are clearly defined, with organisational benefits and risks outlined explicitly. However, PRINCE2 serves better as a project implementation tool because it does not necessarily prompt you to consider the business case systematically. The focus inevitably moves to the deliverables and this can result in a lack of big picture or strategic thinking. In addition, the strong focus on documentation can also lead to documents becoming an end, while the project itself falters. There is a danger that the process can become bureaucratic and so is often too labour intensive for smaller projects. Log Frames The term ‘Log Frames’ is a shortened version of Logical Frameworks. It was developed as a tool for strategic planning and adopted by the United States Agency for International Development (USAID) in 1969. Since then it has beenadapted further and is now used widely by INGOs. Part of this popularity is less to do with its effectiveness and more to do with its link to funding agencies. Log Frames combines both a top down approach of identifying the 98 CU IDOL SELF LEARNING MATERIAL (SLM)

activities in a project with a rigorous risk and assumptions analysis. It does this by cross- referencing seven key areas in a 4x4 matrix: The terms in the matrix above can be defined as:  Goal / Objective: why are we doing this project?  Purpose: what results do we expect, what will the impact or effect of our project be?  Outputs: what are the deliverables?  Activities: what needs to be done in order to deliver the outputs?  Indicators of achievement: how will we know we have been successful?  Means of verification: what sources of data are there to check our results/ progress? E.g. documents, surveys  Risks and assumptions: what assumptions about external factors underly the structure of our project and what are the risks inherent in those assumptions? The strength of Log Frames is that it can be used as a participatory tool in project planning. It is also simple in that captures all the project aims and objectives on one sheet of paper so it can be understood at a glance. Log Frames also force you to think through the structure of a plan. Its simplicity should promote transparency both the approach and the use of funds. However, because it is used by some many funding agencies there is a danger that it can be seen as a funding-bid tool, rather than a planning tool, so can therefore become ‘tick box’ exercise. The risks are that your hard work then becomes a meaningless document – or worse – an inflexible blueprint. The rigidity of the structure also means it can be slow to adapt in a changing environment. Okay, so none of the models are perfect, but is there a project management model which can meet all your project needs? 99 CU IDOL SELF LEARNING MATERIAL (SLM)

Well, we believe that there is. We designed the Systems Model – a flexible planning tool suitable for all types of projects, and encompasses all the considerations of Kepner-Tregoe, PRINCE2, and Log Frames. 6.3 SYSTEMS MODEL The Systems Model was developed by =mc to address the needs and challenges of the not- for-profit sector. Much of the work of the not-for-profit sector is based around ‘open’ or ‘messy’ projects – that is those where the outcome is may change during the project cycle and or may involve multiple considerations and needs and is therefore not simply ‘tangible’. The Systems Model clearly emphasises defined success criteria linked to both the output and the purpose, with a consistent focus on reviewing and monitoring along the way. In this sense it is very different from PRINCE where the ‘how’ often takes over, and from Kepner- Tregoe/Logrames where the emphasis is on sticking to the predetermined framework. A final benefit is that the model emphasises the importance of stakeholders – so it constantly asks the question “who is this for and is it meeting their needs and interests?” Based on systematic thinking, developed by Ralph Coverdale, the Systems Model is about balancing:  ensuring you are clear on the information and have before you planning and allocating activities and resources  recognising that in projects which are ‘messy’ or open there is likely to be greater uncertainty 100 CU IDOL SELF LEARNING MATERIAL (SLM)