DRIVE- FALL 2013

PROGRAM/SEMESTER- MBADS (SEM 3/SEM 5) / MBAN2 / MBAFLEX / (SEM 3) PGDPMN (SEM 1)

SUBJECT CODE & NAME-PM 0010 INTRODUCTION TO PROJECT MANAGEMENT
BK ID- B1236
CREDIT & MARKS- 4 CREDITS & 60 MARKS
Q1. Summarize the project management processes involved in the monitoring and control process
group. (Description of project management processes, Analysis, examples, Conclusion) 5, 2, 2, 1
Answer: The monitoring and control process group consists of processes performed to observe project
execution so that potential problems are identified in a timely manner and corrective actions are taken
when necessary. These processes measure performance and compare with the performance
deliverables planned, thus identifying variances from the project management plan. Changes to the
project management plan need to be controlled and preemptive action recommended in anticipation of
possible problems. Control emphasizes that only approved changes are implemented. The project
management processes involved in the monitoring and control process group are:

Monitor and Control Project Work: This process collects measures and disseminates performance
information. Monitoring work includes status reporting, progress measurement and forecasting. The
aim of the process is to recommend corrective actions by comparing actual performance with project
management plan and assessing the variances. The performance reports are made for scope, schedule,
cost, resources, quality and risk. The inputs for this process are project management plan, work
performance information, and rejected change requests. The outputs are recommended corrective and
preventive actions, recommended defect repairs, requested changes and forecasts that predict the
future status of the project and its future progress. This process covers all the other four process groups,
and is hence carried out throughout the project life cycle.

Conclusion:
The five project management process groups under which all the 44 project management
processes mentioned in PMBoK are categorized. These are the Initiating, Planning, Executing, Controlling
and Closing process groups. The process groups are generally deployed in the sequence listed as the
project progresses. In an event if a project goes off course or if the project is in severe troubles, the
project is re-planned or restarted respectively.
The objectives can get redefined in this process group. Executing process group integrates
people and other resources to carry out the project management plan for the project. Controlling
process group measures and monitors the progress to identify variances from the project management
plan in order to take corrective action. These corrective actions may require retracing the previous made
plans. Closing process group formalizes acceptance of the final product of the project and brings the
project to an orderly end.
Q2. Elucidate the importance of communication in Project Management. (Need of effective
communication, Communication for properly structured project, How information must be
communicated, Various types of communication in Project Management, Conclusion) 2 marks each
Answer: Need of effective communication
Effective Communication Management leads to a successful project. It is delivered on time, with
minimal or no defects and within the budget. Such projects provide client satisfaction.

Communication for properly structured project
Project communication should be open, regular and accurate within the various levels i.e. stakeholders,
project manager and project team members. Project staff or team should know its roles and
responsibilities, which has to be efficiently communicated by the project manager. At the same time,
right expectations with respect to budget, time constraints and quality should be set with the client and
properly communicated so as to prevent any future uncertainty. Similarly, project staff should
frequently update the project manager regarding the progress of the project. Such updates from the
project team are essential for the project manager to closely monitor the project.
How information must be communicated
Information needs to be communicated to a project team based on the rank within the organization.
The project team releases newsletters, articles and trends followed within the project on a regular basis,
so that the team members and stakeholders would get adequate project information and can scale up
accordingly. Critical project and organization information can only be communicated to the board
members of the organization. The project functionality, deadlines and other project requirements can
be communicated to the project team.
Various types of communication in Project Management

Internal and external: These are the communications done within the project team and with the
stakeholders.

Formal and informal: These include reports, logs, memos, emails, discussions and project meetings.

Vertical or horizontal: The team members discuss project issues with the managers and the peers in the
Project.

Official and unofficial: These include circulars, reports and also certain off-the- record conversations in a
project.

Conclusion:
Communication Management process includes all those processes that are required to ensure that the
information pertaining to a project is generated, collected, disseminated, stored and ultimately,
disposed of, in a timely and appropriate manner. The four elements that constitute the communication
management process are planning communication, distribution of information, managing stakeholder
expectations and performance reporting.
Q3. Explain the roles of project manager. ( Understanding client requirements, Understanding end
user requirements, Understanding project scope, Understanding the design, communicating) 2 marks
each
Answer:

Roles of a Project Manager
Leading a project is like leading a department where there are people with different backgrounds and
skills, and the project manager has to co-ordinate with all the people to get desired overall result. The
project manager should have the skills required to make the project go smoothly. This includes paying
constant attention to communication, where it has to be made sure that the project sponsors and the
team members are clear on the boundaries and expectations, documenting the project details like the
tasks, responsibilities, relationships and understanding the customer and business needs.

The following describes the roles undertaken by the project manager:

Understanding the client requirements: The client requirements form the basis of the project. It should
be clearly understood, planned and executed so that the project is developed to suit the client needs.
For example, if the project is for the bank then their requirements should be clearly understood by the
project manager to deliver the project to suit their requirements.

Understanding end user requirements: End user requirements of the project of the project should be
understood as the clients and the end users may be different. The project should be developed keeping
the end users who are going to use the project. For example if the project is for a bank ATM, then the
end-users should also be considered if they are going to use the ATMs for their transactions.

Understanding the project scope: The scope of the project defines the project tasks. The project has to
be planned keeping the timelines, objectives, output and the delivery date in mind. The project should
be defined according to the client requirements and the project should be managed accordingly.

Understanding the design: All the basic design requirements should be understood. The functional brief
should be developed including the design brief preparation. The design and design process should be
developed along with the development of contract documentation. The planning process and obtaining
relevant approvals should be managed.

Communicating: The client should be given regular reports which are relevant and meaningful. The
project progress report should be included in the project delivery kit. For example it may be required to
send project status report every week. Also the client should be pre-informed about any likely
delays/problems.

Q4. Explain the any FIVE types of contracts that are entered into in project procurement.
Any 5 of the following
1. Traditional lump sum fixed cost/time
2. Design + Construct or Turnkey
3. Design + Novate + Construct
4. Construction Management (CM), Project Management (PM)
5. On-call multitask contracting
6. Guaranteed Maximum Price (GMP)
7. Full cost reimbursable
Answer:
1. Traditional lump sum fixed cost/time (Fixed Price Contracts)
In fixed type contracts, the design is already developed by the owner (usually through a design
consulting firm). Subsequently, the project is tendered and awarded to a construction contractor at a
fixed price and then the construction delivery is completed. Theoretically, each of these phases, i.e.,
design, tendering and contract award is discrete and separate. First, the owner fixes a Design
Consultant, based on which a design is generated which is as comprehensive as possible. Tenders for
construction are invited for this design. Tendering can be either open tendering or pre-qualified
tendering. By pre-qualified tendering, it is implied that bidders are prequalified. The evaluation of the
bids received leads to selection of the seller at a fixed cost/time, on the premise that the design is
complete and comprehensive. The advantage of this type of contract is that the owner is aware of the
cost at the time of award based on which the design was finalized. In practice, however, the designs
always have gaps which lead to the under mentioned possible disadvantages:

The construction contractor makes extra cost claims to the owner if the design is not complete
before tendering.
Additional cost claims by the construction contractor on account of consequential damages due
to the changes are also likely.
The construction contractor is excluded from the design development phase, and thus a
substantial value addition opportunity by valuable management and constructability
information is lost.

2. Design (D), Construct (C) Notation and Turnkey (T)
Here, a Project Management (PM) or Construction Management (CM) entity enters into a contract with
the client to represent the client in leading the design team and in the management of the construction
process, with a single point of contact in the PM/CM company. There are two variations in this mode of
contracting, they are:
The PM/CM entity is an Advisor to the client and becomes an internal design and construction
group of the client. The managerial instructions given to the actual contractors by the entity are
therefore persuasive rather than directive.
The PM/CM can have a contractual arrangement with the client in which the design and
construct type of contracting takes a financial risk. The Design and Construct type of
contracting is usually considered as falling in this category, especially when the PM/CM entity is
a builder by experience. In the D + C mode of contracting, the client initially engages a design
consultant to develop concept project solution, which is used as the basis for obtaining bids
from D + C bidders. Thus, each D + C bidder gets the opportunity to involve his design team in
the bid for suggesting innovative solutions over and above this concept. This increases the
chances of the client finding a most cost effective solution for the project from among the D + C
bids received.

3. CM, PM and PM/CM
In this type of contract, the Construction Management contractor acts as a Consultant bidder and
provides advice on the practicality of the design with respect to the construction methods that can be
deployed. He also provides services of construction planning, coordination and supervision of the
construction work carried out by contractors appointed by the client, and cost control. The advantages
of this type of contract are:
Availability of construction expertise in the design phase.
Less confrontation between the design team and the team responsible for supervising the
construction.
Fewer contract variations.
An extended form of the CM contract is the PM/CM contract where the PM/CM contractor also takes
responsibility for design coordination.

4. On-Call Contracting

This mode is adopted by the owner in the beginning of the project when the owner is more familiar with
the nature of work than the consultant, but this balance shifts in the execution stage of the project.
Hence, conventional wisdom in this mode of contracting is that the consultant should assume most cost
risk at the execution stage. This scheme is implemented by the owner signing a master contract with
one consultant at the beginning of the project, and then dividing the project into Task Orders (TOs) that
are released to the consultant in stages.

5. Guaranteed Maximum Price
In this contracting mode, the contract calls for a reimbursable fee, i.e. reimbursement of actual cost plus
a fee, but there is a cap to the total amount paid, which is termed the Guaranteed Maximum Price
(GMP). This mode of contracting is adopted when the design is partially developed at the time of
contracting. The contractor makes his judgment of the cushion he must provide in fixing his GMP which
becomes part of the contract. The design is however fixed. If the actual cost exceeds the GMP, the
contractor absorbs the excess. If the actual cost is less than the GMP, a portion of the difference amount
is shared with the contractor as an incentive. This mode is similar to novated D + C as the design
development is partial at the time of contracting. But in the GMP mode, the contractor may or may not
agree to take over the design team and its initial design concept.
Q5. Write short notes on Total Quality Management (TQM)
1. TQM concept and Factors of Organizations
2. Aspects of Total Quality Management
3. Total Quality Management Focus Points
4. Basic beliefs or tenets of TQM
5. Layers of Total Quality Management System (2 marks each)
Answer:

TQM concept and Factors of Organizations

Total Quality Management (TQM) is a management philosophy concept, with continuous improvement
approach to do business through a new management model. It evolved from the continuous
improvement philosophy with a focus on quality as the main dimension of business.

Total quality management is mainly for customer focused organization that encourages bringing in
continual improvement in all the aspects of the organization. TQM is an integrative system that uses
strategy, effective Communication, and data to integrate the quality principles into the culture and
activities of the organization. The core intension of the total quality management is to have a long term
success through customer satisfaction. Figure shows the various factors of organization, associated to
implement total quality management system.


Aspects of Total Quality Management:

The goal of total quality management is to do the rights things, right from the first time which has two
main objectives to achieve:
Total client satisfaction, through quality of products and services
Continuous improvements in processes, systems, people, suppliers, partners, products, and
services.
Total quality management defines the culture of organization and supports it to attain customer
satisfaction through integrated system of tools, techniques and training. This enables the company to
improve the processes continuously, which results in high quality of products and services. There are
three aspects of TQM that are shown in the Table given below:

Total Quality Management Focus Points:

TQM is a comprehensive management system. The main areas of TQM are shown in the Table given
below:

There are universal TQM beliefs that are followed in various successful organizations across the globe.

The basic beliefs or tenets of TQM :

Donor and beneficiary satisfaction is the measure of quality.
Quality improvement is a continuous process.
Everyone has donors or beneficiaries; everyone is a donor or beneficiary.
Analyzing the processes used to create product and service is a key to quality improvement.
Measurement, employee involvement, and skilful use of analytical tools are critical sources of
quality improvement ideas and innovations.
Active, visible, consistent, and enabling leadership by managers at all the levels will sustain the
total quality management.
If we do not improve the quality of products and services, we provide continuously to our
beneficiaries, someone else will do it.

Layers of Total Quality Management System:

Figure shows the segregated layers of total quality management system of an organization.

The new attitude of organization management is price minus cost equals profit. Donors are now
demanding higher quality work at a lower cost. In an attempt to keep pace with the new attitude, a
quality management system that helps to keep the costs down is well worth implementing.

Q6. Describe the various supports that the project management system provides.
1. Planning support
2. Cost support
3. Quality planning support
4. Estimating support
5. Scheduling support
6. Reporting support
7. Control support
Conclusion
Answer:
A project should be managed in such a way that it supports various credentials and factors. The various
supports that the project management system provides are as listed below:

1. Planning support: The project management system should be able to provide support various Work
Breakdown Structure (WBS) methodologies. The WBS is a structure that provides a clear picture of
scope of the project in various graphical formats. The hierarchy of deliverables and services are
expressed using WBS. There are various benefits and uses of deploying WBS in the Project. Some of
them include:

It provides the number of levels of WBS in detail.
It provides a facility to maintain a library that can be loaded automatically on request.
It facilitates regular monitoring of resources such as equipments, systems, programs and files.
It provides support to estimate the dependencies of the project both internally and externally.
It provides support to projects of various sizes, to employees of the organization both internal
employees and contractors external to the company.
It maintains an inventory that monitors and keeps track of the performance and skills of the
employees of the organization.
It provides support to priorities the projects as per the wants of the company.

2. Cost support: The project management should be able to estimate and control the budget of the
project. This should provide the input cost estimates, the amount of money spent and the output cost
estimates. The management of the project should ensure that the costs of the project are kept within
the limits of the budget. The various benefits of cost support in the project management process are
that it:
Facilitates improved quality and performance results.
Provides budget and value accountability.
Facilitates satisfaction with end results.
Ensures better value for budget.

3. Quality planning support: Quality is defined as the process of meeting or exceeding the expectations
of the end users. The project management system should be able to identify and determine the
standards of the quality that are required by the end users. The support should ensure that the tasks
and activities are well planned. This is important to ensure that the deliverables are delivered in time
and with the expected quality. Thus, the project management system should be able to identify which
quality standards best suit the project to meet the requirements of the client. It includes
implementation of the quality events i.e. the project management should be able to support peer
reviews and execution of the checklist effectively. This includes considering of various quality materials
such as templates, standards and checklists as expected by the clients of the organization. It is important
for the project management to include a project quality plan to provide quality support for the
deliverables. The various quality elements that the quality plan comprises are as follows:

Responsibility of the management: It describes the quality responsibilities of all the
stakeholders.
Documented Quality Management system: It includes the existing quality procedures; these
procedures are standardized as per the wants of the customers within the organization.
Design control: This includes the procedures for design review of the requirements
Document control: This includes various processes that control the documents at each phase.
Quality audits: It is vital to conduct audits that are internal to the organization.
Training: It is vital to provide training that supports the technical skills of the members
participating in the team to adhere to the standards of the organization. This ensures that the
quality of the work is checked at every stage of the project.

3. Estimating support: The project management system should provide support for both detail
estimates and order of magnitude. A review is performed for various versions of the estimates. It
facilitates various methods to maintain guidelines that have to be estimated. It also supports multiple
versions of the estimates that have to be performed.

4. Scheduling support: The project management system should facilitate calculations that can be
automatically done using the effectiveness rate. It should provide means to calculate the critical paths of
projects. It facilitates procedures that can manage allocations of various resources such as scheduling
assignments of various projects and effectiveness rates monitoring.

5. Reporting support: The project management system should facilitate measures that can keep track of
the projects to ensure that the projects that are assigned are delivered on time. It should be able to
support the following factors:

It should keep track of Estimate to do factor. Estimate to do is defined as the time that is
remaining on a particular task allocated.
It should provide facility of a scratch pad to keep track of the various reports such as proposals
of the project, analysis of the cost and benefits, etc.
It should facilitate process to record and verify time on various assignments associated with the
project.
It should facilitate procedures that generate a variety of project reports which can highlight the
various factors affecting the progress of the project in terms of timelines and quality. For
example, reports mentioning the delay in deliverables, the feedback received from clients, the
number of errors reported etc. can be useful for management to take corrective actions.

6. Control support: The project management system should facilitate to maintain various reports that
can maintain summaries of the project. It provides the ability to bill the end users for modeling the costs
of the project.

Conclusion
Project management has many applications that are necessary to provide cost effective and quality
output as per the expectations of the clients. However, in bigger organization that manages a portfolio
of projects, requires constant monitoring of human resources as well as every phase of the development
project. It has vast applications in managing the project such as managing the scope, time, cost, quality,
Human Resources, communications, risk, procurement and integration. The managing of the project
facilitates the applications of knowledge, skills, tools and techniques of the objectives of the project to
meet the needs and expectations of the stakeholders.