Q- 1) Explain the concept of Project Management? What are the various activities in PM?

Concepts of Project Management

A project is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables) undertaken to meet unique goals and objectives, usually to bring about beneficial change or added value. Project management is a carefully planned and organized effort to accomplish a specific (and usually) one-time effort for example, construction of a building or implementation of a new computer system. Project management includes developing a project plan, which includes defining project goals and objectives, specifying tasks or how goals will be achieved, what resources are need, and associating budgets and timelines for completion.

Activities involved in project Management

Initiation of the project

The initiation processes determine the nature and scope of the project.[21] 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. Planning the work

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. Estimating the resources

Here existing and required resources are estimated, so that the team is prepared with all the requirements in hand. Organizing the work

Organizing process involves arranging people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. Acquiring human and material resources

Required human and material resources are acquired, the requirement could be for all the time till the project is completed. Or the requirement could be for a shorter period of time. Assigning tasks

At this stage the activities are assigned to different people and for different periods according to the requirements of the task. Directing Activities

Project management requires a continuous directing and reviewing of activities. Controlling project execution

Continuous monitoring and controlling is essential part of any activity, so as to understand the status of the project and actions plans in the project. Following diagram demonstrates this activity.

Q-2) What are the important variables in a Project? Explain each in brief.
Following are the five variables in project management Time The amount of time required to complete the project. Typically broken down for analytical purposes into the time required to complete the components of the project, which is then further broken down into the time required to complete each task contributing to the completion of each component. Cost Calculated from the time variable. Cost to develop an internal project is time multiplied by the cost of the team members involved. When hiring an independant consultant for a project, cost will typically be determined by the consultant or firm's hourly rate multiplied by an estimated time to complete. Quality The amount of time put into individual tasks determines the overall quality of the project. Some tasks may require a given amount of time to complete adequately, but given more time could be completed exceptionally. Over the course of a large project, quality can have a significant impact on time and cost (or vice versa). Scope Requirements specified for the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be or accomplish . Risk Potential points of failure. Most risks or potential failures can be overcome or resolved, given enough time.

Q-3) what are the 2 ways in which basic Project Management is implemented? Explain the Matrix form in detail.
The basic project management could be implemented in 2 widely used formsPure projectIn this, a complete, self contained organization is created. The resources are inherent and are not required to be borrowed. Matrix ManagementIn this case, the organization is created by using elements allocated from permanent functional units. The project must time share the resources with other concurrent projects and with the functional areas from where they borrow. The advantages of a matrix include:

Individuals can be chosen according to the needs of the project. The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. Project managers are directly responsible for completing the project within a specific deadline and budget.

The disadvantages include:

A conflict of loyalty between line managers and project managers over the allocation of resources. Projects can be difficult to monitor if teams have a lot of independence. Costs can be increased if more managers (ie project managers) are created through the use of project teams.

Q-4) what is feasibility in a Project? What are its various dimensions?

Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. Following are the dimensions of feasibility study

Economic Feasibility Organizational and Cultural Feasibility Technical Feasibility Schedule Feasibility Resource Feasibility Human-factors Feasibility Legal and Regulatory Feasibility

Economic feasibility Economic analysis is the most frequently used method for evaluating the effectiveness of a new system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits and savings that are expected from a candidate system and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system. An entrepreneur must accurately weigh the cost versus benefits before taking an action. Cost-based study: It is important to identify cost and benefit factors, which can be categorized as follows: 1. Development costs; and 2. Operating costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system. Organizational and Cultural feasibility In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project. Schedule feasibility A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are

the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable. Resource feasibility This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, Legal feasibility Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts.

Ques-5) What are objectives and constraints in a Project?

An objective is a desired result a person or a system envisions, plans and commits to achievea personal or organizational desired endpoint in some sort of assumed development. Examples Increase by 25 percent the number of loan applications that can be processed during an eight-hour shift Decrease by 50 percent the time required to reschedule a production lot when a workstation malfunctions

Constraints are the factors that can create problems in completion of a project. The primary impact of project constraints is the likelihood of delaying the completion of the project. There are three types of project constraints: Technological, resource & physical The technological constraints relate to the sequence in which individual project activities must be completed. For example, in constructing a house, pouring the foundation must occur before building the frame. Resource constraints relate to the lack of adequate resources which may force parallel activities to be performed in sequence. The consequence of such a change in network relationships is delay in the completion date of the project.

Ques-6) What is estimation in a Project? What are the factors that are estimated?
Estimation is the calculated approximation of a result. In project Management the estimation is the basis of sound project planning . The accuracy of project estimates can have a dramatic impact on profitability. Followings are estimated for a sound project

Cost Estimation Schedule estimation Time estimation

Cost estimations are mathematical algorithms or parametric equations used to estimate the costs of a product or project. The results are typically necessary to obtain approval to proceed, and are factored into business plans, budgets, and other financial planning and tracking mechanisms. Following are a few techniques of cost estimations Analogous / Top Down Bottom up Parametric Computerized

Schedule estimation is an inexact process in that it tries to predict the future. While it is not possible to know with certainty how long a project will take, there are techniques that can increase your likelihood of being close. If you are close in your planning and estimating, you can manage the project to achieve the schedule by accelerating some efforts or modifying approaches to meet required deadlines. While preparing a schedule estimate, we must consider that transition between activities often takes time. Organizations or resources outside the direct control may not share the sense of schedule urgency, and their work may take longer to complete. We have to be aware of all external dependency relationships. Uncertain resources of talent, equipment, or data will likely result in extending the project schedule. For time estimation Murphys rule of thumb can be used which uses the following steps

Very early, estimate how long the project will take Double this number Raise the number to the next order of magnitude Example

3 weeks 6 weeks 6 months

Ques-7) What are the basic techniques of Cost estimation in a Project?

Following are the basic techniques of cost estimation in a project Analogous / Top Down Bottom up Parametric Computerized

Analogous Cost Estimation is:

A method in which top managers use their experience,

historical information from similar projects and expert judgement to determine a total project cost or time estimation.
Often called "top-down" estimation since estimations are

generated for top levels of the WBS and then apportioned downward through the levels of WBS. Analogous Cost is used when:
You have a limited amount of detailed information about

the project.
You have a similar project to use for comparison. The work package owners preparing the estimations have

the requisite expertise.

Bottom-up estimating is an extremely helpful technique in project management as it allows for the ability to get a more refined estimate of a particular component of work. In bottom-up estimating, each task is broken down into smaller components. Then, individual estimates are developed to determine what specifically is needed to meet the requirements of each of these smaller components of the work. Parametric estimating refers, primarily, to an estimation technique which utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables Computerized estimation uses spreadsheets, project management software, or other software to help estimate costs

Ques-8) Write a note on the role of a Project Manager.

The project manager's role in a nutshell is the overall responsibility for the successful planning, execution, monitoring, control and closure of a project. A project manager is often a client representative and has to determine and implement the exact needs of the client, based on knowledge of the firm they are representing. The ability to adapt to the various internal procedures of the contracting party, and to form close links with the nominated representatives, is essential in ensuring that the key issues of cost, time, quality and above all, client satisfaction, can be realized. A project manager must have is technical skills. This relates to financial planning, contract management, and managing creative thinking and problem solving techniques are promoted The project manager must set the final goal for the project and must motivate his workers to complete the project on time The role of the project manager is one of great responsibility. It is the project manager's job to direct, supervise and control the project from beginning to end. Project managers should not carryout project work, managing the project is enough. Here are some of the activities that must be undertaken: 1. The project manager must define the project, reduce it to a set of manageable tasks, obtain appropriate resources and build a team to perform the work. 2. The project manager must set the final goal for the project and motivate his/her team to complete the project on time. 3. The project manager must inform all stakeholders of progress on a regular basis. 4. The project manager must assess and monitor risks to the project and mitigate them. 5. No project ever goes exactly as planned, so project managers must learn to adapt to and manage change.

A project manager must have a range of skills including:

Leadership People management (customers, suppliers, functional managers and project team) Effective Communication (verbal and written) Influencing Negotiation Conflict Management Planning Contract management Estimating Problem solving Creative thinking Time Management

Ques-9- What are the barriers in Project Management?

Many things can go wrong in project management, here are some possible barriers: 1. 2. 3. 4. 5. 6. 7. 8. Poor communication Disagreement Misunderstandings Bad weather Union strikes Personality conflicts Poor management Poorly defined goals and objectives

A good project management discipline will not eliminate all risks, issues and surprises, but will provide standard processes and procedures to deal with them and help prevent the following: 1. Projects finishing late, exceeding budget or not meeting customer expectations. 2. Inconsistency between the processes and procedures used by projects managers, leading to some being favoured more than others. 3. Successful projects, despite a lack of planning, achieved through high stress levels, goodwill and significant amounts of overtime. 4. Project management seen as not adding value and as a waste of time and money. 5. Unforeseen internal and/or external events impacting the project.

Ques-10- Explain the process of Risk Management in a Project.

In order to manage risks we have to understand what is a risk. 'A risk is a combination of constraint and uncertainty'. We all face constraints in our projects, and also uncertainty. So we can minimize the risk in the project either by eliminating constraints or by finding and reducing uncertainty. There are two stages in the process of Project Risk Management, Risk Assessment and Risk Control. Risk Assessment can take place at any time during the project, though the sooner the better. However, Risk Control cannot be effective without a previous Risk Assessment. Similarly, most people tend to think that having performed a Risk Assessment, they have done all that is needed. Far too many projects spend a great deal of effort on Risk Assessment and then ignore Risk control completely. Risk Assessment has three elements: Identify Uncertainties Explore the entire project plans and look for areas of uncertainty. Analyze Risks Specify how those areas of uncertainty can impact the performance of the project, either in duration, cost or meeting the users' requirements. Prioritize Risks Establish which of those Risks should be eliminated completely, because of potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention. In the same way, Risk Control has three elements, as follows: Mitigate Risks. Take whatever actions are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan. Plan for Emergencies. For all those Risks which are deemed to be significant, have an emergency plan in place before it happens. Measure and Control. Track the effects of the risks identified and manage them to a successful conclusion.

Apart from the above mentioned process there are several other ways of risk management which are

By calculating the severity number, Qualitative risk analysis By quantifying the risks through the tools like probability and impact matrix, top ten risk item tracking and expert judgment, Sensitivity analysis

Ques-11- Write a note on the Work Breakdown Structure (WBS).

A complex project is made manageable by by first breaking it down in to individual components in a hierarchical structure, known as the Work Break Down Structure (WBS). This structure defines tasks that can be completed independently of other activities, facilitating resources allocation, assignment of responsibilities and measurement and control of project. The WBS is the foundation of project planning. It is developed before dependencies are identified and activity durations are estimated. A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control. Additionally the WBS is a dynamic tool and can be revised and updated as needed by the project manager. The Work Breakdown Structure is a tree structure, which shows a subdivision of effort required to achieve an objective

A work breakdown structure is illustrated in the diagram below