Project Management 01. What are the work around in project mgt? A Workaround is a solution to an unanticipated problem.

Not to be confused with a contingency, or backup plan, which is conceived in advance, a workaround is a far less elegant solution to the problem. Typically, a workaround is not viewed as something that is designed to be a panacea, or cure-all, but rather as a crude solution to the immediate problem. Its not unusual for the project management team to have to devise several workarounds during the course of a project. Because a workaround is designed solely to bypass, not correct, the problem at hand it should not be expected to survive long past the initial discovery of the problem. However, as a temporary fix, a workaround will do very well until a suitable permanent fix can be implemented by project management personnel. It is always important to makes notes as to the way the workaround was orchestrated so project management can put in place a more stable fix as soon as possible. It is also important to note that, while a workaround is extremely effective for the immediate problem, the moment the problem evolves beyond the parameters of the workaround it becomes useless. 02. Parts of project resources management Project roles and responsibilities must be clearly defined, preferably with no overlap of accountabilities. Only one person should be accountable for one thing or multiple things, although any number of people may contribute towards it. Two or more people should never be accountable for the same thing as this leads to confusion and potential problems y Roles must be organised into a project structure with clear lines of accountabilities and if appropriate who reports to whom or who are the leaders with sub teams within the overall project structure y Individuals must be assigned to the roles, with the ideal being 100% resource allocation. As the level of resource committed to the project falls the project manager must compensate for the time-splitting and therefore reduced level of productivity due to task switching or, worse, conflicting priorities. Usually, one individual is assigned to one role but it is possible for one role to be performed by multiple people y A clear and current project organogram is created of the project team. It must be updated if the project team changes y Extended or external project team relationships should be drawn in relation to the project team as a single entity and includes other entities such as vendors or third-party suppliers. In essence this is drawing the lines of communication between the project team and all stakeholders and is useful as an aid to transparency 03. Project Execution Activities
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1. 2. 3. 4. 5. 6. 7.

Time Management Cost Management Quality Management Deliverables Management Change Management Risk Management Issue Management
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8. Procurement Management 9. Acceptance Management 10. Communications Management 11. Execution Phase Review 04.Who should be involved in the creation of lessons learned, at closure of a project? Why? Generally, writing lessons learned for a construction project is the same as capturing lesson learned for any project (see http://projectmanagementquestions.com/2239/how-to-capturelessons-learned ), but with focus on the following areas: - Quality: Since quality is always a challenge in construction projects, we must thoroughly discuss all the issues we faced regarding the quality of work, and include "what was done correctly" and "what was done wrong" and "what should have been done" in our lessons learned. - Project location: Was the project chosen at a good location? Was there a better location? Were we familiar with the local standards? - Cost estimates: Were cost estimates accurate? How could have we done them better? - Work contracting: Were the contractors we worked with any good? Should have we chosen other ones? Should we choose the same contractors for our next project? - Schedule: Were resources properly assigned and were work estimates based somehow accurate? - Project management: Was project management properly applied? Was it efficient? Was there anything wrong with the reporting/communication? 05.PDM (. Precedence Diagramming Method) Unlike Arrow Diagramming that uses the arrows for activities and nodes for the start and end of activities, Precedence Diagramming places the activity on the nodes and uses arrows between the nodes to show the sequence between each activity. Precedence Diagramming is also called "activity-on-the-node". To illustrate the Precedence Diagramming method, the illustrations below show several different schedule fragments. You may want to compare notes between the fragments shown here for the Precedence Diagram, and their counterparts in the Arrow Diagramming method.

example 1
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Activity Prior Activity A None B A

example 2 Activity Prior Activity A None B A C A

example 3 Activity Prior Activity A None B None C A, B D A, B

As described in the section on the Arrow Diagramming method the set of all activities and their related sequence is called a "network".
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06.Top down budgeting  Budgeting in 2 Steps Ceilings (aggregate numbers) 1) Decide total spending & deficit levels (agg. ceiling) 2) Inter-sectoral allocation among major policy areas (sectoral ceilings: about 30) Intra-sectoral allocations (details) 1) Ministry/agency budgets

Benefits of Top-down Budgeting Effective for fiscal consolidation Easier to integrate with MTEF (MTBF) (ceilings are usually multi-year limits) Ensures spending is aligned with priorities Efficient in time and effort Utilizes ministries expertise Disadvantages Accuracy
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A top-down estimate is less accurate than other estimating techniques. One way of doing a top-down estimate is to break a project into a series of phases and only provide an estimate one phase at a time, going by the most current phase. If managers make a highlevel estimate for an initial phase, while they gather business requirements, the estimate could change later after they get the requirements.

Overlooks Lower Levels of Input

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This approach provides less scope to get lower levels of input. Considering that the estimate is from the top down and provides a global view of the project, this method overlooks a lot of lower-level details. Another aspect of the omission is that businesses often may not use the input of lower-level managers.

Potential to Mislead One way of doing a top-down estimate is to use input from projects an organization carried out in the past. While this is a convenient way of making an estimate, it has the potential to mislead. If the project the business bases its estimation on is not similar to the one for which it makes the estimate, the business may decide to go ahead with a project it should have shelved. Alternately, the business may decide not to go ahead with a potentially profitable project. Bottom up budget
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Bottom-up budgeting, also called participatory budgeting, is a somewhat modern approach to planning the use of a company's financial resources. Reserved for somewhat larger organizations, it differs from top-down budgeting where the high level executives make all of the decisions. Participatory budgeting provides the opportunity for employees to be involved in setting their own goals and expectations for a given financial period. It gives them ownership of the decisions, motivating them to meet budgetary constraints that otherwise might seem unattainable or unrealistic if they were delivered by someone without as much understanding of their day-today operations. Along with this increased participation, bottom-up budgeting also helps to create a more accurate picture of how much each department needs in order to function effectively. Of course, adjustments may need to be made for new hirings, special projects, and equipment replacement, but these can be communicated directly to the departments themselves before a budget is finalized. The important thing to remember when constructing any budget, whether it is bottom-up, topdown, or a mixture of the two, is that it be taken seriously at all levels of the organization. Though a budget alone cannot guarantee the success of any particular business, it can certainly prevent failure in most cases.

Disadvantages of bottom-up budgeting One of the primary disadvantages of bottom-up budgeting is that it can lead those who are in charge of tasks and also project managers to ask for more funding than will actually be needed. This is done in order to ensure that enough money is procured for each task to be accomplished, since most people assume that they will not be given all of the money that they request. This situation can lead to a waste of money and also a situation of distrust between various members of projects and different managers. Another drawback to bottom-up budgeting is that it is difficult to actually draw up a complete and thorough list of every step and task that will be necessary for the completion of a project. It is easy to overlook a step of a project or a task, a problem that will lead to major issues in the overall budget. Advantages of bottom-up budgeting One of the major advantages of bottom-up budgeting is that the budget can be quite accurate for individual tasks. As long as no tasks have been forgotten, then this can work quite well. Also, bottom-up budgeting involves all members of a particular project, which can be a benefit in terms of company morale and involvement. 07. Types of PDM A project is a series of interconnected activities that can be represented by the project network diagram. Various techniques exist for constructing network diagrams. One of the most common is the precedence diagramming method (PDM).
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The PDM uses nodes to represent project activities and connecting arrows to show activity dependencies. This technique is also called the activity-on-node (AON) network approach. To construct a network diagram, you need to consider four types of precedence relationships: finish-to-start (FS), start-to-start (SS), start-to-finish (SF), and finish-to-finish (FF).
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finish-to-start (FS) The FS relationship is one in which activity A must finish before activity B can begin. This is the most commonly used type of precedence relationship. start-to-start (SS) The SS relationship is one in which activity A must start before activity B can start. As an example, let activity A be compiling a phone list, and Activity B be calling the people on the list. In this example, compiling the phone list (A) must start before calling the people on the list (B) can start. start-to-finish (SF) The SF relationship is one in which activity A must start before activity B can finish. Let activity A be breathing on one's own. Let activity B be breathing with the aid of a respirator. Breathing on one's own must start (A) before breathing with the aid of a respirator (B) can finish.

finish-to-finish (FF) The FF relationship is one in which activity A must finish before activity B can finish. Let activity A be a telemarketing department compiling a phone list. Let activity B be calling the people on the list. Compiling the phone list (A) must finish before calling the people on the list (B) can finish. 08. What are the basic elements of communication explain with the help of a management model?
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The transmitter, message, medium, receiver, and feeback 09. Steps to Take in Termination
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y y y y y

Finalize all outstanding contracts to vendors, suppliers or customers including final payments (in some cases, according to federal regulations, project-related revenue that is earned on or before project termination is considered program income. If it is earned after project termination, it is an external sale.) Transfer any responsibilities necessary Reassign the project team members to other duties Release all remaining resources such as materials Complete the final accounting on the project such as totally final costs, paying bills, etc so you can "close the book" Document the results of the project and make recommendations for future projects (opportunity for learning and anticipating new risks)
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y y

Presentation of the system and approval (or rejection) of the system by the client according to acceptance criteria set forth in the Project Agreement Installation and field testing as applicable

10. Project selection process 1. Focus on data integrity; front-end load the project 2. Install a systematic idea-to-launch process and makes the gates work 3. Adopt an incremental commitment or options approach 4. Know when to walk away 5. Remember, one size does not fit all 6. Triangulate since there is no one best way to pick projects 7. Try scorecards, one of the top-rated but overlooked methods 8. Use success criteria, too 9. Use the right financial approaches 10. Build in periodic portfolio reviews to force rank your projects 11.Resposibility Matrix A Responsibility Assignment Matrix (RAM)[1], also known as RACI matrix (pronounced / re si /) or Linear Responsibility Chart (LRC), describes the participation by various roles in completing tasks or deliverables for a project or business process.[2] It is especially useful in clarifying roles and responsibilities in cross-functional/departmental projects and processes.[3] RACI is an acronym derived from the four key responsibilities most typically used: Responsible, Accountable, Consulted, and Informed.

12. Functional Structure

Functional Organization This structure is by far the oldest of the organizational methods but remains one of the most successful. This method performs best when used for routine work
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functions and the upholding of quality and work standards. Functional Organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments for them to each contribute. Alternatively, projects can be shuffled around to different departments where each department manager ensures that their parts of the work have been completed. This method does not work very effectively when used in facilitating complex projects. One of the major criticisms of this organizational structure is the lack of built-in employee recognition, measurement and reward for project performance. Similarly, there is very little individual accountability for any project management tasks that need to be performed. Project Organization Project Organization is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project.

Matrix Structure A matrix organization employs a structure that uses functional managers, or, in other words, managers who lead groups of employees that have similar roles. In a silo style organization, workers with specific skills (such as typing or engineering) are placed under a single functional manager. This manager will usually control all administrative and managerial functions of the group such as promotions and holiday leave. The manager is general someone who is expert or at least has senior understanding of the groups function.

13.

Resource

Loading:

It

is

just

assigning

resources

to

activities.

Resource Leveling: Any form of network analysis in which scheduling decisions (start and finish dates) are driven by resource management concerns (e.g., limited resource availability or difficult-to-manage changes in resource levels). 14.Financial Analysis Financial analysts often assess the firm's: 1. Profitability -its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term; 3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the company's balance sheet, which indicates the financial condition of a business as of a given point in time. 4. Stability- the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use

of both the income statement and the balance sheet, as well as other financial and non-financial indicators. 15. Pure Project Organization: Pure project organization is proposed when an organization has less number of projects but with longer duration. For each project manager is appointed and he is responsible to conduct all the activities associated with the project. The project manager is inturn responsible to the program manager. The project manager has fully authority for the execution of the project and he reports to the program manager in the parent organization. The lines of communication are shortened as the project manager directly communicates with the parent project organization members.

Matrix Organization: In Matrix Organization, two complementary organization structures, i.e. the project organization and functional organization are merged together in order to create a matrix structure. Matrix organization is compromise between the project and functional organization. The idea of matrix structure originated form aerospace technology in the USA for the construction of a new airport. It is concept useful for successful execution of large projects which require diverse technical enterprise.

Definations of Matrix Organization: According to Kenneth Knight, Matrix Organization is a balanced compromise between departmentation on the basis of functions and deparmentation on the basis of specific products or projects or project to be complemented. Features of Matrix Organization: 1. Matrix Organization is a compromise between functional organization and project organization. 2. The functional heads are given authority as regards the technical aspects of the project. 3. The subordinate employees under matrix organization are under dual control. 4. It is suitable to large projects. 5. Effective communication system is essential for the smooth functioning of matrix organization. 6. Training of managers as well as subordinates is essential for the effective working of matrix structure. 7. Authority flows both down and across. Advantages of Matrix Organization:

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1. Better Co-ordination and control: Co ordination is not a serious problem in matrix organization. Due to vertical and horizontal communication, the project manager can coordinate many inter-related aspects of particular project. 2. Higher Motivation: People are satisfied when the project is complemented in time. This feeling of satisfaction raises their morale and motivates them to work for the new project. 3. Excellence in inter- disciplinary specialization: In a matrix organization it is possible to expand the technical excellence into many inters disciplinary activities. 16.CPM The essential technique for using CPM [6] is to construct a model of the project that includes the following: 1. A list of all activities required to complete the project (typically categorized within a work breakdown structure), 2. The time (duration) that each activity will take to completion, and 3. The dependencies between the activities 17. Graphical Evaluation & Review Technique GERT (Graphical Evaluation Review Technique) is a stochastic1 network analysis technique used in project management that allows for conditional and the probabilistic treatment of the logical relationships between the projects activities following randomly determined sequence of observations. The logical relationships between the projects activities are primarily based on the dependency between the two project activities or the dependency between a project activity and milestone. The key objective of the GERT is to evaluate on the basis of the network logic and estimated duration of the activity and derive inference about some activities that may not be performed. The GERT can be used along with a complementary and other popular network analysis evaluation technique used in project management, PERT (Program Evaluation and Review Technique).

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