Qs 01:- Describe the three strategy levels in detail. Ans01 :Strategies can be formulated on three different levels.

Johnson and Scholes define strategy as Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. Strategy at Different Levels of a Business: Strategies exist at several levels in any organization ranging from the overall business (or group of businesses) through to individuals working in it Strategy Levels: Strategy exists at three hierarchical levels in an organization ranging from the overall business (or group of businesses) through to individuals working in it.
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Corporate Strategy:It is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". It consists of the kinds of initiatives the company uses to establish business positions in different industries, the approaches corporate executives pursue to boost the combined performance of the set of businesses the company has diversified into, and the means of capturing cross-business synergies and turning them into competitive advantage. Senior corporate executives normally have lead responsibility for devising corporate strategy and for choosing among whatever recommended actions bubble up from the organization below. Business Unit Strategy:This strategy is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of

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customers, gaining advantage over competitors, exploiting or creating new opportunities etc. Business strategy concerns the actions and the approaches crafted to produce successful performance in one specific line of business. The key focus here is crafting responses to changing market circumstances and initiating actions to strengthen market position, build competitive advantage, and develop strong competitive capabilities. Orchestrating the development of business-level strategy is the responsibility of the manager in charge of the business.
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Operational Strategy: It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. Operating strategies concerns the relatively narrow strategic initiatives and approaches for managing key operating units(plants, distribution centres, geographic units) and for specific operating activities with strategic significance (advertising campaigns, the management of specific brands, supply chain-related activities, and Website add further sales detail and and operations).Operating strategies

completeness to functional-area strategies and to the overall business strategy. Lead responsibility for operating strategies is usually delegated to frontline managers, subject to review and approval by higher-ranking managers.

Qs 02 : a) Describe the various roles undertaken by a Project Manager. b) List and explain in brief the qualities of a Project Manager. Ans02 :Various roles undertaken by a Project Manager:

a)

The role of the Project Manager is to plan, execute and finalize projects according to strict deadlines and within budget. This includes acquiring and coordinating the efforts of team members and third-party contractors or consultants in order to deliver projects according to plan. The role & responsibilities of a Project Manager is little complex and needs to be explained elaborately in clear terms for each project. Below are few important roles & responsibilities of a Project Manager: The Project Manager is the person responsible for managing the project. The Project Manager is the person responsible for accomplishing the project objectives within the constraints of the project. He is responsible for the outcome (success or failure) of the project. The Project Manager is involved with the planning, controlling and monitoring, and also managing and directing the assigned project resources to best meet project objectives. The Project Manager Controls and monitors triple constraintsproject scope, time and cost (quality also)in managing competing project requirements. The Project Manager examines the organizational culture and determines whether project management is recognized as a valid role with accountability and authority for managing the project. The Project Manager collects metrics data (such as baseline, actual values for costs, schedule, work in progress, and work completed) & reports on project progress and other project specific information to stakeholders. The Project Manager is responsible for identifying, monitoring, and responding to risk.

 The Project Manager is responsible to the project stakeholders for delivering a projects objectives within scope, schedule, cost, and quality. The reporting structure of a Project Manager will change depending on organizational structure. He may reports to a Functional Manager or to a Program Manager. In a bit exaggerating terms, Project Manager is the God of his project and he is the one who decides the success of the project. Qualities of a Project Manager: You do not lead by hitting people over the head thats assault, not leadership. How apt these words by Dwight D Eisenhower are, leadership is not about bullying people, it is about getting people to respect you with your leadership skills and qualities. People should want to be lead by the project manager. So what are the leadership qualities that a project manager should have? Should he be skilled or compassionate? Or maybe he needs to be a good communicator or a visionary? There is not right answer and there is no wrong answer. Even as I make this statement, here is a list of some leadership qualities for a project manager. Vision: Every project manager should have a vision, a vision of what he wants the project to be like, a vision of how to get things done and a vision of the near future of the project. And he needs to be able to convey this vision to his team members. Only when there is vision is there going to be real involvement on the part of the project manager and thus involvement on part of the team members. This is when the team members and project manager start feeling like a part of the organization and not just the project.

b)

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Communication skill: Most would say communication is the most important skill of a project manager and some would beg to differ. But communication is an integral part of the leadership qualities. Without communication the project manager cannot lead. Communication not only allows for great leadership but also for openness and relativity. Persuasion and negotiation are all a part of communication and the project managers qualities. Honesty: Call it honesty, integrity or loyalty, the project manager needs to have it all. The actions of the project manager set an example for the rest of the team members. The project manager is ultimately responsible for setting standards, ethically and otherwise for the rest of the team. The project manager needs to practice before preaching and to lead by example. Passion: A project manager without passion is one that is simple put, lacking dedication. The project manager has to be passionate about the project; he should have enthusiasm and the right attitude. Only then will people follow him and respect his decisions, because they need to feel he is doing it for the project. There needs to be commitment and optimism involved. Compassion: Do not mistake empathy or compassion for sympathy. These two words are independent of each other. Empathy means to understand. A good project manager needs to understand or empathize with the fact that there is a life outside the work place and that people are not machines without emotions. Skill and knowledge:

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There needs to be some skill and knowledge that the project manager needs to have. To put it simply, the project manager should know what he is doing and should be able to guide the rest of the team.
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Delegation: The project manager should be able to handle delegation with ease. He should be able to recognize skills and expertise of his team members and assign or delegate tasks according to those. Also this shows that the project manager trusts the team in doing tasks. Trust inspires confidence. Composed: We do not live in a perfect world. There are times when things do not go as expected in such a case the project needs to maintain his cool and be composed irrespective of the amount pressure he is under. This shows good leadership and strength in character. Team building: The project manager should also be a team builder. He should be able to hold and pull the team together to work under different conditions. The team starts as a group of strangers and needs to be made into a core group of people. Problem solver: An efficient project manager should be capable of solving any and all problems, either with the team or the project itself.

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Qs 03 :a) Describe the major types of stakeholders in a project. b) Describe the major type of Organizational structure in Detail. Ans03 :-

a)

Major types of stakeholders in a project: According to PMIs guide to PMBoK, project stakeholders are individuals and organizations actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion. According to Stanford Research Institute5 stakeholders are those groups without whose support the organization would cease to exist. The major stakeholders of a project are: Project Manager Customer Performing Organization Project Team Members Sponsor Society Below figure depicts a diagrammatic representation of the major stakeholders of a project.

Project Manager: Project manager is the interface between the customer and other internal stakeholders. The project manager holds the responsibility for the successful implementation of the project and is an important stakeholder.

Customer::Customers are the internal or external group of individuals who directly affect the project. The aim of the project is to create a product, service or facility based on customer requirements and to deliver it to the customer. Hence, the project team must consider all requirements of the customer while creating the deliverable. The customer can be any one of the following: Internal customer:

They are individuals within the parent organisation. For example, the IT department is assigned to provide a software package for the accounts department. The accounts department is the internal customer. Intermediate customer: They are external to the company but not the final user of the product e.g. distributors and wholesalers. External customer: They are individuals or organisations that pay for and use the final product. Performing enterprise performing Organization:The whose the employees of the work performing are most project. organization directly the is the in

involved

Therefore,

project

contributes towards achieving the corporate goals of the performing organization. In addition, there are several other stakeholders like project owner, fund providers, suppliers or contractors, government agencies and media outlets and the society. Stakeholder roles and responsibilities may overlap. For example, when an engineering firm finances a plant it is in the designing or construction field, the role of the engineering firm changes from performing organization to sponsor for the projects undertaken by the designing or construction company. The naming or grouping of stakeholders is primarily an

aid to identify individuals or organizations who view themselves as stakeholders. Project Team Members:Team members working in their individual areas of expertise play a crucial role in the success of the project. They work directly with or under the project manager depending on the organization structure adopted for the project. The project manager, therefore, uses team building skills to ensure that the team members work as a team. Sponsor:The sponsor is an individual or a group within or external to the parent organization who arranges the financial resources in cash or in kind for the project. The sponsor may be a senior executive of an organization or a junior manager with formal authority who is responsible for the project thus, acting as a link between the project and the performing organization.

b)

Major type of Organizational structure in Detail: Organizational structure has a significant impact on the functioning of a project manager. To enable successful completion of a project, it is important that the resources required for project implementation flow freely from the organization to the project. There are three types of organizational structures: Functional organization:It is a hierarchical structure. It

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defines a clear Superior-Subordinate relationship, i.e., the line of control is clear. Each department carries out work in its area of specialization and employees in each department work with its respective expertise within the department's line of control. In a manufacturing production, organization, the different quality departments are finance, marketing, control, engineering,

administration, personnel ands so on. If a new product is to be

developed, the engineering department handles only the design development phase of the product. If answers to questions concerning manufacturing, marketing or quality control are found, the query is passed on to the respective department through formal communication channels. Project-based organizations:These are designed to provide

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near total authority to the project manager. The project manager directs work and sets priorities to employees assigned to the project manager for the project. Functional departments exist in this organization, but the groups working in these departments report directly to the project manager in the execution of various projects. Matrix-based organizations:It is the combination of the type of organizational structure, project managers and

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features of functional and project-based organizational structures. In this functional managers have equal authority, which implies that the functional staff member reports to both project manager and their functional manager. This constitutes a dual reporting system for each functional staff member.

Qs 04 :-

List and describe in brief the various qualities of the project

management process. Ans04 :Overview of Project Management Processes: PMBoK organizes Project management processes into five groups, defined as the Project Management Process Groups, each group comprising one or more processes. Project management of a single project essentially comprises a number of interlinked processes. The underlying concept for the interaction

among the processes is the Plan-Do-Check-Act (PDCA) cycle is referred in the American Society for Quality (ASQ) handbook. Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include: Initiation Planning or development Production or execution Monitoring and controlling Closing

Initiation:The initiation processes determine the nature and scope of the project. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. Any deficiencies should be reported and a recommendation should be made to fix them. Planning and design:After the initiation stage, the project is planned to an appropriate level of detail. The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. Executing:Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan. Monitoring and controlling:Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Closing:Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned.

Qs 05 :- Write a short note on the following:

a) SWOT Analysis as a Strategic Planning tool. b) Net Present Value (NPV) as a Project selection criterion. Ans05 :a)

SWOT Analysis as a Strategic Planning tool: S.W.O.T. is an abbreviation for Strengths-Weaknesses-

Opportunities-Threats. One of the most fundamental tools for strategic market planning is the use of SWOT analysis template to evaluate potential business success. This simple tool, developed at Stanford University in the late 1960's, is an extremely powerful ingredient in the recipe for business success. Used by most Fortune 500 companies in strategic planning, the SWOT matrix involves a frank evaluation of a business' Strengths, Weaknesses, Opportunities and Threats: STRENGTHS:Attributes of the organization those are HELPFUL to achieving the objective. These are the company's core competencies, and include proprietary technology, skills, resources, market position, patents, and others.
a)

WEAKNESSES:Attributes of the organization those are HARMFUL to achieving the objective. Weaknesses are conditions within the company that can lead to poor performance, and can include obsolete equipment, no clear strategy, heavy debt burden, poor product or market image, long product development cycle, weak management, and others. OPPORTUNITIES:External conditions those are HELPFUL to

b)

achieving the objective. Opportunities are outside conditions or circumstances that the company could turn to its advantage, and could include a specialty niche skill or technology that suddenly realizes a growth in broad market interest.
c)

THREATS:External conditions those are HARMFUL to achieving the objective. Threats are current or future conditions in the outside

environment that may harm the company, and might include population shifts, changes in purchasing, serious competitive barriers, changes in governmental or environmental regulations, and others. SWOT analysis provides an efficient way to evaluate the range of factors that influence your operation, and can give you valuable guidance in making decisions about what to do next. It also provides a highly productive way to get your key personnel involved in the management decision-making process. The exercise of going through the SWOT analysis matrix can be a great opportunity to do management team building. If you have a large team, break into 4 teams for each of the quadrants and each team can prepare and report its findings. Make sure to include not only your market planners, but also finance, operations, product development and others. SWOT Analysis is one of the effective analytical tools to evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process. There are many ways how a SWOT analysis is used. This TQM article aimed to share how SWOT analysis can be used as an essential tool to Strategic Planning Process as I practiced in my workshop conducted over the years. While detail Analysis is performed, it can become a complex process because it entails several data analysis involves external factors such as Political, Economic, Societal and Technological in short called P.E.S.T. Besides, it also examines internal factors such as operational capabilities as compared to the competitors.

b) Net Present Value (NPV) as a Project selection criterion: In finance, the net present value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash flow (DCF) analysis, and is a standard method for using the time value of money to appraise longterm projects. Used for capital budgeting, and widely throughout economics, finance, and accounting, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met. The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or discount curve and outputs a price; the converse process in DCF analysis - taking a sequence of cash flows and a price as input and inferring as output a discount rate (the discount rate which would yield the given price as NPV) - is called the yield, and is more widely used in bond trading. Each cash inflow/outflow is discounted back to its present value (PV). Then they are summed. Therefore NPV is the sum of all terms,

Where t - The time of the cash flow i - The discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk.)

Rt - the net cash flow (the amount of cash, inflow minus outflow) at time t. For educational purposes, R0 is commonly placed to the left of the sum to emphasize its role as (minus) the investment. The result of this formula if multiplied with the Annual Net cash in-flows and reduced by Initial Cash outlay will be the present value but in case where the cash flows are not equal in amount then the previous formula will be used to determine the present value of each cash flow separately. Any cash flow within 12 months will not be discounted for NPV purpose. Net Present Value (NPV) as Project Selection Criterion: NPV is the present value of the future revenues after deducting future costs. This is a very popular and valid method for selecting a project from the financial viewpoint. Some factors that companies use to enhance NPV are: Government policy. For example, special tax benefits and exemptions for an industry or a location. Economies of scale: In manufacturing, unit cost is substantially reduced by adopting high production volume. For example, petroleum refining, steel production, and mining. Product differentiation: This is achieved by innovative product features, high quality products, customised service and so on. Technology superiority: DRL outperformed its competitors in the drug-manufacturing industry because of their technology based on research and development.

Qs 06 :-Describe in brief the Human resource management process in a project. Ans06 :Project Human Resource Management:

Project Human Resource Management is a subset of Project Management that includes various processes that are essential and are required for making the most effective use of the people involved with the project. Human Resource Management includes various processes that are vital to make the most effective use of the people involved with a project. The main process involved with the HR Management process includes: Acquiring the project team. Developing the project team. Managing the project team. Acquiring a Project Team:The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organisations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated. A number of factors are considered while deciding the team members. These factors include a series of environmental factors (such as work experience, availability, and cost), derivation of clear and concise project organisation charts, and formulation of a thorough staffing management plan. Once the team is properly staffed, the next steps (or outputs) of the process involve staffing

out assignments to the team, determining availability of resources, and updating the staffing management plan. Important factors that are considered during the process of acquiring the team are: The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project. Failure to obtain the essential Human Resources for the project will affect project agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation. Developing a Project Team:Developing a project team is a process of enhancing interaction among the team members and also the project manager. The process refers to increasing competencies of individuals and building up team spirit, which finally leads to a quality project. To achieve project success, there should be good communication among the team members. Project managers should administer the development of the project team. The project manager should create the relevant environment for teamwork, provide new goals for the team to compete and achieve. Project managers should encourage feedback from the team. The project manager should provide effective review and good support to the team staff. Open communication between the project manager and team reduces conflicts. The management should also support the project managers. The project stakeholders should provide the required support to the development of the project team. Projects are done in diversified environments. The project team may experience variance in language, industry and culture while at work. The project team should be dedicated to the

project and the team members should work together, without losing their individuality. The goals for developing a project team are: To develop technical knowledge about the project, this leads to quality output and meeting delivery schedules with reduced cost. To enhance trust among team members, thus reducing conflicts. To develop cohesiveness in the project. To allow sharing knowledge among team members.

The five stages of team development are, I.Forming:Forming involves knowing every team member individually. The team members are inclined to work independently. They find out about each other and know whos who. II.Storming:Storming involves the actual Project Management process. This stage promises action. There is a struggle for project team control, and momentum builds as members have to lead the project team. During this phase, the team members figure out the hierarchy of the team and the informal roles of team members. III.Norming:Norming is working together, socialising, and providing constructive criticism. The team develops a strong commitment to the teams goal and work to achieve it. IV. Performing:Performing means smooth movement of project development by a well-organised project team. The team members blend into their roles and focus on completing the project work as a team. V.Adjourning:Adjourning implies completion of the project so that the team is ready for a new one. Managing a Project Team:Managing a project team is the process of delegating responsibilities and tasks, monitoring team performance, providing feedback, solving issues, and coordinating

changes to enhance overall project performance. Managing the team is one of the most critical aspects of project management. The project manager should encourage building competencies among the team members and reward them accordingly. Key aspects of managing a project team are: Assigning work and observing the commitment level in each team member. Building team. Monitoring team spirit. Providing effective performance review and appraisal to inspire the project team. co-operative working relationship and ensuring effective communication among all members of the project

Qs 01 :- List and explain in brief the inputs to the following processes. a) Acquiring a project team b) Communication plan Ans01 :a) Inputs to the Acquiring a project team: The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the

project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organizations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated. Important factors that are considered during the process of acquiring the team are: The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project. Failure to obtain the essential Human Resources for the project will affect project agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation. The inputs for acquiring a project team are: Enterprise environmental factors: Team members are available from internal and external sources. When selecting the team members, it is important to evaluate the following factors: Availability Ability Experience Interests Costs Assets of organizational process: Assets of organizational process covers

reviewing the documented policies, procedures and guidelines governing staff assignments. Roles and responsibilities:The roles and responsibilities document should

be assessed to determine a team members roles, responsibilities, skills, levels of authority, and competencies. Project organization charts:The project organization chart is an

input/output device that serves a valuable role for the Project Management

team and team leader in the process of keeping a thorough and careful organizational record of the projects processes. Staffing management plan: The staffing management plan with the

project schedule is reviewed to ascertain when team members are needed.

b) Inputs to the Communication plan: Planning communication is the process of ascertaining the information and communication needs of the project stakeholders. Communication plan helps to communicate the right information, to the right people at the right time. It is a schedule of communication events used to make sure that the project stakeholders are kept properly informed. The various factors such as the time, effort and resources that are required to perform these planned communication activities are the part of the Project Management. The communication goals, strategies and stakeholders are described in the communication plan. The best time for planning communication is at the start up phase of the project life cycle. It ensures that the plan includes the tasks needed to communicate effectively throughout the project cycle. The key features influencing the communication plan includes Project Management team structure, scope of the project and feedback from the stakeholders. There are two ways of planning communication: Constant communication: or regular communication involves

Constant

communicating to the project team, managers and project stakeholders on a regular basis. These types of communication include regular status reports, project team meetings and monthly status updates about the project. The constant communication also includes the regular stakeholder report updates Event driven communication:The event driven or one-time communication includes sessions discussing critical issues, stakeholder meetings, training schedules and wrap up sessions. The advantages of planning communication are: It facilitates team development.

It makes it easier to update stakeholders. It saves creation of additional project documentations.

The inputs for planning communication are: Stakeholder register:Stakeholder records consist of stakeholder

identification, assessment and classification documents. Stakeholder management strategy: Stakeholder management strategy

describes the method to gain support and reduce dissatisfaction from the stakeholders throughout the entire project life cycle. Enterprise environmental factors: All environmental factors such as

organizational culture, industry standards are considered as inputs for the planning communication process. Organizational process aspects: All organizational process assets are

applied while planning communications. The lessons learned and documented information is important as it gives an idea about the issues resolved.

Qs 02 :- Write short notes on the following idea generation technique: a) Mind mapping b) Delphi technique c) Brainstorming d) Nominal Group technique Ans02 :a) Mind mapping: Generation of ideas takes place in any hierarchical level of a firm. A project idea is conceived from a search for promising project ideas. Certain broad

considerations and guidelines are applied to help generate of project ideas. Some group creativity techniques to generate a large number of ideas to solve problem are discussed below. Another way to look at the human levels of thinking is the mind mapping concept. Mind mapping exercise is aimed at increasing mental energy to utilize creative thinking skills, enabling the mind to track out ideas which normally lie in obscurity on the edge of thinking. Following example is taken from the software Buzans iMind Map which was chosen for the brainstorming session aimed at planning for the future of young and developing minds. The software replicates the organic shape, form and use of colors and images to convey a thought or idea a graphic technique for stimulating creativity and unleashing the truth, often untapped potential of the mind. This was used in June 2008 at Petra, Jordan, where 30 Nobel Prize winners (scientists, entrepreneurs, academics, and humanitarians) participated in the conference focused on the theme Reaching for New Economic, Scientific and Educational horizons. Two of the many conclusions of the brainstorming session were - elimination of child poverty worldwide is essential to move forward with educational development; new and innovative learning tools are the foundation for a positive future for the next generation. b) Delphi technique: Generation of ideas takes place in any hierarchical level of a firm. A project idea is conceived from a search for promising project ideas. Certain broad considerations and guidelines are applied to help generate of project ideas. Some group creativity techniques to generate a large number of ideas to solve problem are discussed below. The Delphi Technique was originally conceived as a way to obtain the opinion of experts without necessarily bringing them together face to face. In recent times, however, it has taken on an all new meaning and purpose. The Delphi Technique is based on the Hegelian Principle of achieving Oneness of Mind through a three step process of thesis, antithesis, and synthesis. In thesis and antithesis, all present their opinion or views on a given subject, establishing views and opposing views. In synthesis, opposites are brought together to form the new thesis. All participants are then to accept ownership of the new thesis and support it, changing their own views to align with the new thesis. Through a continual process of evolution, Oneness of Mind will supposedly occur.

This is a systematic, interactive, forecasting method that relies on a panel whose members are carefully selected independent experts. It is based on the principle that forecasts from an unstructured group of individuals are comparatively inaccurate than forecasts from a structure group of experts. The experts answer prepared questionnaires in two or more rounds. After each round, a facilitator provides an overall summary of the experts forecasts from the previous round as well as the reasons they provided for their judgments. The participants revise their earlier answers by knowing the responses of other members of the group. The process stops after a predetermined stop-criterion like number of rounds or achievement of consensus. Usually, participants maintain secrecy even after completion of the final report. The facilitator, who is the coordinator of the Delphi method, sends out the questionnaire, collects and analyses responses, and identifies common and conflicting viewpoints. c) Brainstorming: This method aims to give people freedom of mind and action to create and reveal new ideas. All spontaneous ideas from a group are gathered to find a solution for a specific problem. The rules followed during brainstorming are as follows: No criticism of ideas Go for large quantity of ideas Build on each others ideas Encourage wild ideas Brainstorming consists of a facilitator who composes the brainstorming panel and an idea collector to record the suggested ideas. Sometimes the facilitator is also the idea collector. Some of the leading questions that a facilitator asks during the session are Can we combine these ideas? and How about looking from another perspective? The idea collector also numbers each idea for future reference. When a participant exhausts all ideas, the creativity and experience of another participant is brought out. This often makes group brainstorming sessions enjoyable experiences. This also facilitates in bringing team members together. Individual brainstorming is effective in generating many ideas, but not at developing the ideas. Brainstorming is used to generate ideas, for others to evaluate and select. The strategy is more effective when the brainstorming group evaluates and selects a solution to the problem proposed. In either case, the organization offers

incentives

so

that

participants

maintain

their

brainstorming

efforts.

Brainstorming is a lateral thinking process. It is employed particularly when new ways of thinking are called for and when there is a need to break out of old established patterns of thinking. Some instances where brainstorming is used are when there is a need to look at new opportunities, when there is a need to improve the service offered, or when existing approaches are just not giving the right results. d) Nominal Group technique: Nominal group technique (NGT) is a structured method for group brainstorming that encourages contributions from everyone. This technique encourages all participants to have an equal say in the session. Participants are asked to write their ideas anonymously. The moderator collects the ideas and each idea is voted on by the group. The process of voting can be simply by show of hands. The top ranked ideas are sent back to the group or subgroups for further brainstorming. Each subgroup comes back to the whole group for ranking the listed ideas. Sometimes the group revaluates the ideas that were previously dropped. This method requires a trained facilitator. The benefit of the technique is that the group shares and discusses all issues before evaluation, with each group member participating equally in evaluation. The evaluation works with each participant "nominating" his or her priority issues, and then ranking them on a scale of, say, 1 to 10. Nominal Group Technique is just one group process for achieving consensus. Another group consensus technique is the Delphi Method, which is used among groups of experts to make complex decisions, usually without faceto-face meetings. When to use Nominal Group Technique: When some group members are much more vocal than others. When some group members think better in silence. When there is concern about some members not participating. When the group does not easily generate quantities of ideas. When all or some group members are new to the team. When the issue is controversial or there is heated conflict.

Qs 03 :- Describe in brief the various sources of project financing.

Ans03 :Sources of Project Financing: The term project finance is used loosely by academics, bankers and journalists to describe a range of financing arrangements. Often bandied about in trade journals and industry conferences as a new financing technique, project finance is actually a centuries-old financing method that predates corporate finance. However with the explosive growth in privately financed infrastructure projects in the developing world, the technique is enjoying renewed attention. The purposes of this note are to contrast project finance with traditional corporate financing techniques; to highlight the advantages and disadvantages of project finance and ; to propose that a single structure underlies every project finance transaction; to explain the myriad of risks involved in these transactions; and, to raise questions for future research. Project Financing is a unique financing technique that has been used on many high-profile corporate projects, including Euro Disneyland and the Euro Tunnel. Employing a carefully engineered financing mix, it has long been used to fund large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydroelectric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. Project Financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. In addition, one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. A knowledge-base is required regarding the design of contractual arrangements to support project financing; issues for the host government legislative provisions, public/private infrastructure partnerships, public/private financing structures; credit requirements of lenders, and how to determine the project's borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return; tax and accounting considerations; and analytical techniques to validate the project's feasibility. Sources of Finance: Just as financial instruments range from debt to equity and hybrids such as mezzanine finance, project finance can raise capital from a range of sources. Raising finance depends upon the nature and the structure of the project. Lender and investor interest will vary depending on the goals and risks related to the financing. In assembling project financing, all available

financing sources should be evaluated. Following are some sources of capital used in project financing Equity:Equity is often raised in the stock markets and from specialized funds. Equity is generally more expensive than debt financing. Equity can be raised in the domestic capital markets as well as in the international capital markets. Delhi Metro Rail Corporation is form by the joint venture of Government of India (GOI) and Government of National Capital Territory of Delhi (GNCTD).Both GOI and GNCTD holds 50-50% equity. This 50% each of GOI and GNCTD equity holds only 30% of the project cost. Developmental loan:A developmental loan is debt financing provided during a projects developmental period to a sponsor with insufficient resources. Developmental lenders, who fund the project sponsor at very risky stage of the project, desire some equity rewards for the risk taken, hence, it is not unusual for developmental lender to secure rights to provide permanent financing for the project as part of the development financing agreement. Subordinated loan:Subordinated loans, also called mezzanine financing or quasiequity, are senior to equity capital but junior to senior debt and secured debt. Subordinated debt usually has the advantage of being fixed rate, long. term, unsecured and may be considered as equity by senior lenders for purposes of calculating debt to equity ratio. They are usually used to cover over-runs during the construction stage. Senior debt:Commercial banks and institutional lenders are an obvious choice for financing needs of a project. Senior debt of project finance usually constitutes the largest portion of the financing. These loans usually format least 50% of the capital needs. The prime reason is that it is cheaper than equity financing. They fall into two categories secured and unsecured loans. Secured loans are loans where the assets securing the loan have value as collateral. Such assets are marketable and can readily be converted into cash. Unsecured loans basically depend on the borrowers general creditworthiness, as opposed to perfected security arrangement. Nearly 60% of total estimated cost of Delhi metro project is finance by JBIC (Japan Bank of International Cooperation).Recently operational planning for Phase III is going on. JBIC appraisal team has given clearance for their next tranche for the Phase III. Syndicated loan:A syndicated loan is a loan that is provided to the borrower by two or more banks and is governed by a single loan agreement. The loan is arranged and structured by a lead arranger and is managed by an agent bank. The best part about a syndicated loan is that the funding can be gathered from the international lending market, which means such a lending can be used for projects which need enormous amounts of capital.

World Bank group financing sources:Multilateral institutions such as the World Bank provide finds to infrastructure development projects worldwide. The scope and extent of involvement of such institutions in financing project is very limited. World banks provide funding through its (a) loan program; (b) guarantee program and (c) indirect support for projects.

Bonds:In recent years the use of the bond markets as a vehicle for obtaining debt funds has increased. Bond financing is similar to commercial loan structure, except that the lenders are investors purchasing the borrowers bonds in a private placement or through the public debt market.

Investment funds:Investment funds mobilize private sector funds for investment in infrastructure projects. E.g. asset funds or income funds, investment management companies, venture capital provider and money market funds.

Institutional lenders:These include life insurance companies, pension plans, profitsharing plans and charitable foundations. These entities can be a substantial source of funding.

Host government:The host government can also be a direct or indirect source of financing. This is more evident in the emerging markets where the governments are usually eager to fund and support infrastructure projects. They provide indirect support through tax incentives. GOI and GNCTD have financed approximately 30% of project incurred cost.

Qs 04 :- Explain the important concepts in Research design? Ans04 :The research designer understandably cannot hold all his decisions in his head. Even if he could, he would have difficulty in understanding how these are inter-related. Therefore, he records his decisions on paper or record disc by using relevant symbols or concepts. Such a symbolic construction may be called the research design or model. A research design is a logical and systematic plan prepared for directing a research study. It specifies the objectives of the study, the methodology and techniques to be adopted for achieving the objectives. It constitutes the blue print for the plan is the overall scheme or program of

research. A research design is the program that guides the investigator in the process of collecting, analysing and interpreting observations. It provides a systematic plan of procedure for the researcher to follow elltiz, Jahoda and Destsch and Cook describe, A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Components of Research Design: It is important to be familiar with the important concepts relating to research design. They are: 1. Dependent and Independent variables: A magnitude that varies is known as a variable. The concept may assume different quantitative values, like height, weight, income, etc. Qualitative variables are not quantifiable in the strictest sense of objectivity. However, the qualitative phenomena may also be quantified in terms of the presence or absence of the attribute considered. Phenomena that assume different values quantitatively even in decimal points are known as continuous variables. But, all variables need not be continuous. Values that can be expressed only in integer values are called non-continuous variables. In statistical term, they are also known as discrete variable. For example, age is a continuous variable; whereas the number of children is a non-continuous variable. When changes in one variable depends upon the changes in one or more other variables, it is known as a dependent or endogenous variable, and the variables that cause the changes in the dependent variable are known as the independent or explanatory or exogenous variables. For example, if demand depends upon price, then demand is a dependent variable, while price is the independent variable. And if, more variables determine demand, like income and prices of substitute commodity, then demand also depends upon them in addition to the own price. Then, demand is a dependent variable which is determined by the independent variables like own price, income and price of substitute. 2. Extraneous variable: The independent variables which are not directly related to the purpose of the study but affect the dependent variable are known as extraneous variables. For instance, assume that a researcher wants to test the hypothesis that there is relationship between childrens school performance and their self-concepts, in which case the latter is an independent variable

and the former, the dependent variable. In this context, intelligence may also influence the school performance. However, since it is not directly related to the purpose of the study undertaken by the researcher, it would be known as an extraneous variable. The influence caused by the extraneous variable on the dependent variable is technically called as an experimental errors Therefore, a research study should always be framed in such a manner that the dependent variable completely influences the change in the independent variable and any other extraneous variable or variables. 3. Control: One of the most important features of a good research design is to minimize the effect of extraneous variable. Technically, the term control is used when a researcher designs the study in such a manner that it minimizes the effects of extraneous independent variables. The term control is used in experimental research to reflect the restrain in experimental conditions. 4. Confounded relationship: The relationship between dependent and independent variables is said to be confounded by an extraneous variable, when the dependent variable is not free from its effects. Research hypothesis:When a prediction or a hypothesized relationship is tested by adopting scientific methods, it is known as research hypothesis. The research hypothesis is a predictive statement which relates a dependent variable and an independent variable. Generally, a research hypothesis must consist of at least one dependent variable and one independent variable. Whereas, the relationships that are assumed but not be tested are predictive statements that are not to be objectively verified are not classified as research hypothesis.

Experimental and control groups:When a group is exposed to usual conditions

in an experimental hypothesis-testing research, it is known as control group. On the other hand, when the group is exposed to certain new or special condition, it is known as an experimental group. In the afore-mentioned example, the Group A can be called a control group and the Group B an experimental one. If both the groups A and B are exposed to some special feature, then both the groups may be called as experimental groups. A research design may include only the experimental group or the both experimental and control groups together.

 Treatments:Treatments are referred to the different conditions to which the

experimental and control groups are subject to. In the example considered, the two treatments are the parents with regular earnings and those with no regular earnings. Likewise, if a research study attempts to examine through an experiment regarding the comparative impacts of three different types of fertilizers on the yield of rice crop, then the three types of fertilizers would be treated as the three treatments.

Experiment:An experiment refers to the process of verifying the truth of a

statistical hypothesis relating to a given research problem. For instance, experiment may be conducted to examine the yield of a certain new variety of rice crop developed. Further, Experiments may be categorized into two types namely, absolute experiment and comparative experiment. If a researcher wishes to determine the impact of a chemical fertilizer on the yield of a particular variety of rice crop, then it is known as absolute experiment. Meanwhile, if the researcher wishes to determine the impact of chemical fertilizer as compared to the impact of bio-fertilizer, then the experiment is known as a comparative experiment.

Experiment unit:Experimental units refer to the predetermined plots,

characteristics or the blocks, to which the different treatments are applied. It is worth mentioning here that such experimental units must be selected with great caution.

Qs 05: Explain the following: a) Project Vs. Program Vs. Portfolio b) Project work and Traditional functional work Ans05 :a) Project Vs. Program Vs. Portfolio: Project A temporary endeavor undertaken to create a unique product, service, or result. Program A group of related projects managed control in a coordinated from way to obtain benefits and not available managing them individually. Portfolio A collection grouped effective

of

projects to

or

programs and other work that are together facilitate of that management

work to meet strategic business

Hopefully we all know what as to a a create project is. PMBOK defines a project temporary undertaken a unique or service endeavour product,

This is where the confusion seems to start. A program is a group of related projects managed together to obtain specific benefits and controls that would likely not occur if these projects were managed individually. management delivering program focused strategic benefits program. The (ERP) ERP implementation system system is will of an Enterprise Resource Planning often include individual Finance, Materials performed as a program. The several projects Purchasing, specific (i.e. of While the project on specific is the and focuses

objectives. A portfolio projects together strategic or to

is

collection

of

programs facilitate

grouped effective

management of efforts to meet business objectives. These projects or programs are not necessarily interdependent or directly related. Portfolio management is the centralized management of multiple projects, programs and possibly portfolios. This typically includes identifying, prioritizing specific objectives. The group of within division projects a could be and an and strategic authorizing business projects and programs to achieve

result. In my terms, a project has a specific start and end date with a clearly defined produced. of and deliverable the

objectives of the project management on achieving the objectives

Project management is application knowledge, skill, tools, techniques processes to effectively manage a team towards this final deliverable. In real life this means the management of a specific project a (e.g. new implementing accounting

integrated

programs business

specific

example of a portfolio. This might include the implementation of a Customer Management (CRM) Relationship program;

system).

This project will start on a specific date and end according to our project plan with the delivery of your new accounting system.

Management, etc.). Each of these specific projects should be run by a project manager using overall a formal of project these management approach. The grouping related projects will be run by a Program Manager. The Program Manager will be responsible for the rolling up of information from each of the projects and ensuring the overall program is driving

Sales Data Warehouse program; Commission Tracking project; And a project to launch a new product within the Sales & Marketing Division. In this case the Portfolio Manager is managing this broad range of somewhat unrelated programs and projects towards a specific set of strategic divisional business objectives. The Portfolio Manager will become very involved in of the frontend activities identifying,

towards business

achieving objectives.

the This

prioritizing and initiating projects and programs. will All be of within these the activities

requires each of the project managers to manage their individual projects in a fashion that easily integrates into the overall program plan (easily practice). The Program Manager is also responsible for tracking and analysing across the entire program. This involves considering risk management strategies not only for each individual across same project but also The analysing the collective risk the goes program. for quality schedule cost said in more actual challenging

context of achieving the strategic business objectives. The Portfolio Manager will also track these projects/programs to ensure they continue to deliver towards the expected strategic outcome in terms of quality, cost, schedule and scope. They will also be responsible for analysing and tracking elements leverage reduce probability delivering results. project across economies risk and of expected management the of entire scale, the

portfolio looking for ways to improve

successfully business

management, management, management, communications, etc.

b) Project work and Traditional functional work: Project work and traditional functional work differ in many ways. It is important to understand these differences. Functional work is routine on-going work. Each day machine operators, car salesmen, secretaries, accountants, financial analysts and quality inspectors perform functional work that is routine, notwithstanding some variations from day to day. The functional worker gets training from a manager assigned to the specific function, and the manager supervises and manages the worker according to standards of productivity and quality set for the particular function. In contrast to functional work, project work is a temporary endeavor undertaken to create a unique, non-routine product or service. A project manager manages a specific project with people and other resources assigned to him only

for project management support on the specific project, and not on an ongoing basis. The project manager is responsible for the approved objectives of a project such as budget, schedule and specifications. Project terms are typically not organized in the same hierarchical structure as that of functional group.

Qs 06 :- Describe the following quality control tools:

a) Ishikawa diagram b) Flow chart c) Pareto chart d) Scatter diagram

Ans06 :a) Ishikawa diagram: Ishikawa diagrams (also called fishbone diagrams, cause-and-effect diagrams or Fishikawa) are causal diagrams that show the causes of a certain event -- created by Kaoru Ishikawa (1990). Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped into major categories to identify these sources of variation. The categories typically include: People: Anyone involved with the process Methods: How the process is performed and the specific requirements for doing it, such as policies, procedures, rules, regulations and laws Machines: Any equipment, computers, tools etc. required to accomplish the job Materials: Raw materials, parts, pens, paper, etc. used to produce the final product Measurements: Data generated from the process that are used to evaluate its quality Environment: The conditions, such as location, time, temperature, and culture in which the process operates Ishikawa diagrams were first used in the 1940s, and are considered one of the seven basic tools of quality control. It is known as a fishbone diagram because of its shape, similar to the side view of a fish skeleton. The Ishikawa Diagram resembles a fishbone (hence the alternative name "Fishbone Diagram") - it has a box (the 'fish head') that contains the statement of the problem at one end of the diagram. From this box originates

the main branch (the 'fish spine') of the diagram. Sticking out of this main branch are major branches that categorize the causes according to their nature.

Mazda

Motors

famously

used

an

Ishikawa

diagram

in

the

development of the Miata sports car, where the required result was "Jinba Ittai" or "Horse and Rider as One". The main causes included such aspects as "touch" and "braking" with the lesser causes including highly granular factors such as "50/50 weight distribution" and "able to rest elbow on top of driver's door". Every factor identified in the diagram was included in the final design. b) Flow chart: A flowchart is a diagrammatic representation that illustrates the sequence of operations to be performed to get the solution of a problem. Flowcharts are generally drawn in the early stages of formulating computer solutions. Flowcharts facilitate communication between programmers and business people. These flowcharts play a vital role in the programming of a

problem and are quite helpful in understanding the logic of complicated and lengthy problems. Once the flowchart is drawn, it becomes easy to write the program in any high level language. Often we see how flowcharts are helpful in explaining the program to others. Hence, it is correct to say that a flowchart is a must for the better documentation of a complex program. Flowcharts are usually drawn using some standard symbols; however, some special symbols can also be developed when required The following are some guidelines in flowcharting: In drawing a proper flowchart, all necessary requirements should be listed out in logical order. The flowchart should be clear, neat and easy to follow. There should not be any room for ambiguity in understanding the flowchart.

The usual direction of the flow of a procedure or system is from left to right or top to bottom.

Only one flow line should come out from a process symbol.

c) Pareto chart: The Pareto Chart is named after Vilfredo Pareto, a 19th century economist who postulated that a large share of wealth is owned by a small percentage of the population. This basic principle translates well into quality problems. A Pareto Chart is a series of bars whose heights reflect the frequency or impact of problems. The bars are arranged in descending order of height from left to right. This means the categories represented by the tall bars on the left are relatively more significant than those on the right. This bar chart is used to separate the vital few from the trivial many. These charts are based on the Pareto Principle which states that 80 per cent of the problems come from 20 per cent of the causes. Pareto charts are extremely useful because they can be used to identify those factors that have the greatest cumulative effect on the system, and thus screen out the less significant factors in an analysis. Ideally, this allows the user to focus attention on a few important factors in a process.

A Simple Example: A Pareto chart can be used to quickly identify what business issues need attention. By using hard data instead of intuition, there can be no question about what problems are influencing the outcome most. In the example below, XYZ Clothing Store was seeing a steady decline in business. Before the manager did a customer survey, he assumed the decline was due to customer dissatisfaction with the clothing line he was selling and he blamed his supply chain for his problems. After charting the frequency of the answers in his customer survey, however, it was very clear that the real reasons for the decline of his business had nothing to do with his supply chain. By collecting data and displaying it in a Pareto chart, the manager could see which variables were having the most influence. In this example, parking difficulties, rude sales people and poor lighting were hurting his business most. Following the Pareto Principle, those are the areas where he should focus his attention to build his business back up.

Understanding the Pareto Principle (The 80/20 Rule): Originally, the Pareto Principle referred to the observation that 80% of Italys wealth belonged to only 20% of the population. More generally, the Pareto Principle is the observation (not law) that most things in life are not distributed evenly. It can mean all of the following things: 20% of the input creates 80% of the result

 20% of the workers produce 80% of the result 20% of the customers create 80% of the revenue 20% of the bugs cause 80% of the crashes 20% of the features cause 80% of the usage The Pareto Principle is an observation, not a law of nature.

d) Scatter diagram: A scatter diagram is a tool for analysing relationships between two variables. One variable is plotted on the horizontal axis and the other is plotted on the vertical axis. The pattern of their intersecting points can graphically show relationship patterns. Most often a scatter diagram is used to prove or disprove cause-and-effect relationships. While the diagram shows relationships, it does not by itself prove that one variable causes the other. In addition to showing possible cause and-effect relationships, a scatter diagram can show that two variables are from a common cause that is unknown or that one variable can be used as a surrogate for the other. Scatter diagram is used to examine theories about cause-andeffect relationships and to search for root causes of an identified problem. It can also be used to design a control system to ensure that gains from quality improvement efforts are maintained.

In the above example, the points are plotted by assigning values of the independent variable X to the horizontal axis and values of the dependent variable Y to the vertical axis. The pattern made by the points plotted on the scatter diagram usually suggests the basic nature and strength of the relationship between two variables. The scatter diagram also shows that, subjects with large waist circumferences also have larger amounts of deep abdominal AT. These impressions suggest that the relationship between the two variables may be described by a straight line crossing the Y-axis below the origin and making approximately a 45-degree angle with the X-axis.