Project Management

Q.1 Explain the phases of project management life cycle.

Ans. Phases of Project Management Life Cycle
1. Project initiation: Project initiation is the first step in the project development
cycle, and in simple terms: starting up the project. A project is initiated by defining
its reason, business goals, and scope. The cause for initiation and the suggested
solution to be implemented must be defined. A project team is put together to
define early milestones, and preliminary budget proposal. The information in
project initiation assists in performing an end of Phase study for getting a GO No
GO decision.
2. Project planning: Once the project is defined and project team is assembled, the
next phase is the in-depth Project Planning phase. This includes developing the
PMP (Project Management Plan), for guiding the team throughout the project
development stage. In this phase the required skills of development team, nonlabour resources, risks plan, detailed action items and milestones are explained.
3. Project development: On the basis of inputs received in the shape of project
feasibility study, preliminary project evaluation, project proposal and customer
interviews, the following outputs are produced:
a. System design specification
b. Programme functional specification
c. Programme design specification
d. Project plan
4. Project implementation: In this phase, the requirements are built and
programmed. The product is presented for client acceptance and full
implementation after the quality assurance analysis. If the client has accepted the
final product, the project is finished and closed down.
5. Project closure: It includes giving the final output to the customer, handing the
project documentation, manuals, source code, and network layouts. At last a Post
Implementation Review is to be carried out to identify the extent of project success
and document review outcomes.
Q.2 Write short notes on: (a) Economic feasibility of a project (b) Need for
project planning (c) Diversity management (d) Rules for network construction.
Ans. Economic feasibility of a project: The economic feasibility aspect of a project
relates to the earning capacity of the project. Earnings of the project depend on the
volume of sales. Here, the following important indicators are taken into consideration:
Present demand of the goods produced through the project i.e. market facility (or)
getting a feel of the market.
Future demand of the goods. A projection may be made about the future demand.
The period normally depends upon the scale of investment.
Determining the extent of supply to meet the expected demand and arriving at the
gap.
Deciding in what way the project under consideration will have a reasonable
chance to share the market.
Anticipated rate of return on investment. If it is positive, the project justifies the
economic norm in the relationship between cost and demand.

Need for project planning: The purpose of project planning is to identify various areas
of the project work and the influencing factors, and subsequently define the boundaries
of the project performance. In addition, scope of the project also needs to be explicitly
mentioned in the list project objectives. Further it serves as a guide through its well
defined directions to perform the project. Planning is basic to all human activities and
requires common sense. It is a trap laid down to capture the future. It helps in bridging
the gap between where you are to where you want to be. In a way, the complexity of the
process aids in identifying the implication of such a plan and whether it relates to
immediate future or a long term perspective.
Diversity management: Diversity management is a management strategy to promote
and maintain a positive workplace environment in the organisation. It is crucial for
growth in todays competitive marketplace. Diversity management works on the
principle of acceptance. It management inspires the employees to recognise that
everyone is different. They should not be afraid or be biased about these differences.
Employees are encouraged to live with the fact that there are different interests,
different values, and different physical and emotional characteristics present in the
organisation. Also, this does not have to obstruct the productiveness or produce conflict.
Rules for network construction: The rules to be observed in constructing the network
diagram are discussed below:
1. Each event must have a distinct number. The number specified to an event can be
chosen in any way, provided this condition is fulfilled. In practice, yet, events are
numbered in the manner that the number at the head of the arrow is greater than
that at its tail.
2. There must not be any loops in the project network; a situation similar to the one
shown in Figure is not permissible.
1
3

A Network Diadram

3. The preceding and succeeding events are not same for more than one activity. This
signifies that every activity is represented by a uniquely numbered arrow and a
situation depicted in Figure is not permissible.

A Loop

4. To make sure that each activity is uniquely numbered, at times it is necessary to

introduce dummy activities. A dummy activity is an imaginary activity that can be
completed in zero time and it does not consume resources. It is symbolised by a
dashed arrow.

1
A Dummy Activity

Q.3 What are the key steps for effective risk management? Explain any FIVE
risk identification techniques.
Ans. Steps in Risk Management: In risk management, the following steps should be
considered for effective risk management:
Step 1 Recognition of assets at risk: The foremost step in the risk management
technique is to carefully identify the assets which might generate risks in project
operations. These assets may fall under various groups, such as tangible and intangible
assets, movable and immovable assets etc.
Step 2 Valuation of assets: The assets identified and grouped in the previous step
are to be valued and categorised into different classes such as critical and essential.
Step 3 Identifying the intimidation: Threats can be distinct as anything that
contributes to the intermission or devastation of any service/product. Various
compulsions can be grouped into environmental, internal, and external threats.
Step 4 Risk consideration: The process of risk appraisal includes not only
assessment as to the provability of occurrence but also the assessment as to the
impending severity of loss, if risk materialises. This will support in determining the
appropriate risk lessening strategy, the residual risk, and the investment required to
alleviate the risk.
Step 5 Emergent strategies for risk management: After risks identification and
assessment, one must apply various risk management techniques such as risk
avoidance, risk reduction, risk retention and risk transfer etc.
Risk identification techniques:
Assumption analysis: Assumptions made in planning stage of the project are
taken as true, real, or certain. A closure scrutiny of these may reveal possible risks.
Brain storming: Brain storming is a useful tool to generate the possible risk
events in quick time. It is performed by a cross-function team following set
procedures (see chapter 8 for details).
Checklist: The checklist is developed based on past experience. It provides a
useful guide in listing foreseeable risks.
Delphi: Delphi study is carried out with the help of a group of experts. Since the
experts are people who have a deep insight into the system functioning, it is
possible to gather useful information in this way.
Interview: Interview may be held with knowledgeable people to identify or to gain
more in-depth knowledge of certain risks or to create a list of control measures.
Q.4 Write a short notes on:(a) Parametric estimating tool of cost estimating
(b) Procurement process
(c) Project teams responsibilities in project execution
(d) Project termination
Ans. Parametric estimating tool of cost estimating:

Procurement process: An effective procurement process plays in important role in the

successful implementation of a project. A procurement process starts with the
identification of the required materials and equipments. A project procurement process
covers the following functions:
Request to invite bids or tenders: This covers the listing requirements of
equipment, preparing specifications, and sending request to invite bids.
Shortlist suppliers: This includes identifying the required number of suppliers
out of the possible ones.
Invite bids: This element covers the invitation of bids to receiving them.
Evaluate, negotiate, and choose bids: This involves making comparative
statement of various elements of price, negotiate technical and commercial
aspects including price, select the lowest bidders, and get the approval of a
competent person.
Prepare and place orders: This includes writing the purchase order which
describe the products and state all the commercial terms in simple and clear
words, obtaining the signature of a competent, authorized person, and send order
to supplier and get his or her acknowledgement.
Order fulfillment: This includes monitoring the progress of manufacturing of
equipment, its quality, packaging, and associated documentation.
Transport and shipping: This covers all the formalities needed to get the
equipments from the supplier to the project site.
Receive, inspect and store equipment at site: This includes activities like
general inspection, marking the identification number, and inspecting and storing
it at a secure place.
Project teams responsibilities in project execution: The project team members
are expected to assist in the management of the project at a more functional level. The
critical project management elements for the project team to provide assistance with
include:
Performance monitoring: Implement an execution plan to measure the actual
performance as compared to planned performance. For example, the actual project
schedules will need to be reviewed periodically and compared to baseline
schedules in order to discern if the project is performing according to plan. If the
project is not performing according to baseline, steps will be taken to get the
project back on track. The same monitoring and analysing should take place on
budgets, quality, risks, scope, etc.
Provide project status: While the project manager is responsible for relaying project
status to parties outside the project team, the project team is expected to report
the status to the project manager. This includes communicating information both
on a formal and an informal basis.
Project termination: Project termination is one of the most serious decisions of a
project management team and its control board. The decision of project termination
affects all the stakeholders of the project and can put some negative impact on the
organisations growth. The following are the key reasons to terminate a project:
Technological reasons
Results of project requirements or specifications are not clear or impractical
Fundamental change in project requirements or specifications, so that the
underlying contract cannot be changed accordingly
Lack of project planning, especially risk management

The planned result or product of the project turn into obsolete, is not any longer
needed
Sufficient human resources, tools, or material are not accessible
The increase in project cost leads lower profit than expected
The parent organisation do not exist longer
The change in strategy of parent organisation, leads towards the project does not
support the new strategy
Essential conditions disappear
Lack of management support
Insufficient customer support

Q.5 What is Quality planning? Explain the inputs, tools and techniques and
outcomes of quality planning.
Ans. Quality planning: It means identifying the relevant standards to the project and
determining how to satisfy them.
Inputs to quality planning
Quality policy: Quality policy refers to the overall intentions and direction of an
organisation pertaining to quality, as formally expressed by top management.
Scope statement: The scope statement comprises the key objectives of the
project that are needed by different stakeholders.
Product description: It includes the details of technical issues and other
concerns which may influence quality planning.
Standards and regulations: The project management team must acknowledge
all the relevant standards or regulations that may influence the project.
Tools and techniques to quality planning
Benefit/cost analysis: The quality planning process should acknowledge
benefit/cost trade-offs. The benefits should cover higher productivity, lower cost
and high customer satisfaction.
Benchmarking: In this, we compare actual or planned project practices to
practices of other projects to produce ideas for improvement and to find a suitable
standard to measure performance.
Flowcharting: It is a diagram that depicts how different elements of a system
relate to each other.
Design of experiments: It is an analytical technique that helps identifying which
variables affect the overall income the most.
Outcomes from quality planning
Quality management plans: It provides input to the overall project plan and
must deal with quality control, quality assurance, and quality improvement for the
project.
Operational definitions: It particularly explains what something is, and how it is
measured by the quality control process.
Checklists: It is a structured tool that helps in verifying if a set of required steps
has been performed.
Inputs to other processes: The quality planning process may discover a need
for further activity in some other area.
Q.6 Describe the various types of project performance evaluation techniques.
List any FOUR benefits of performance measurement and evaluation.
Ans. Types of project performance evaluation

1) Process (or implementation) evaluation: It is also called formative evaluations

which are designed to improve the implementation of a program, policy or strategy
as it unfolds. In this type of evaluation we measure the level to which a program is
effective as it was planned. It usually considers the program activities
conformance to statutory and regulatory requirements, program design, and
professional standards or customer expectations.
2) Outcome evaluation: It is also called summative evaluations which are designed
to judge a program, policy or strategys relevance, success and/or costeffectiveness which includes its relative contribution to the intended outcomes.
This type of evaluation measures the level to which a program attains its outcomeoriented objectives. It mainly focuses on outputs and outcomes including
unintended effects to evaluate program effectiveness but may also consider
program process to understand how outcomes are produced.
3) Impact evaluation: This is a type of outcome evaluation that measures the net
effect of a program by evaluating program outcomes with an estimate of what
would have happened in the absence of the program. This type of evaluation is
used when external factors are known to influence the programs outcomes, in
order to isolate the programs contribution to achievement of its objectives.
4) Cost-benefit
and
cost-effectiveness
analyses:
Cost-benefit
and
costeffectiveness analyses compare a programs outputs or outcomes with the
costs (resources expended) in order to produce them. When applied to existing
programs, they are also regarded as a variety of program evaluation. It measures
the cost of meeting a single goal or objective, and can be used to identify the least
cost alternative to meet that goal. This analysis aims to recognize all relevant costs
and benefits, generally expressed in dollar terms.

Benefits of Performance Measurement and Evaluation

Benefits of Performance
Policy
and
programme
planning and development
Decision
making
about
funding
Clarifying goals
Tracking progress
Reporting results

Measurenent and Evaluation

Result may confirm policy and programme direction or
identify gaps that need to be addressed.
Finding out what works well/not so well can be use to
guide future funding decisions/priorities.
At the outset, developing a road map clarifies goals,
explains the big picture and ensures that everyone
shares a common focus.
Enables monitoring and if required, permits adjustments
to be made along the way.
Promotes accountability and communicates what works
well to facilitate improvement and ongoing development.