UNIT 1
INTRODUCTION TO PROJECT MANAGEMENT AND PROJECT INITIATION
A Project is a chapter of tasks that need to be completed at a stipulated time in order to accomplish a particular tasks. Projects can vary from simple to complex and can be managed by one people to hundred persons. A Project is generally deemed to be a success if it achieves the objectives according to their acceptance criteria, within an agreed timescale and budget. Time, Cost and Quality are the building blocks of every project.
Time :- Scheduling is a collection of techniques used to develop and present schedules that describes when task will be done.
Cost :- How are required amount of funds acquired and finance managed?
Quality :- How will fitness for purpose of the deliverables and management processes be assured?
DEFINITION OF PROJECT MANAGEMENT
To define Project Management, one must define a project. Anything that has a start, a finish and produces a deliverable is a Project. Project Management, therefore, is the method by which a project is planned, monitored, controlled and reported on, in other words, managed.
Project Management is the process of enforcing the team work to achieve the goals at a time constraints. The primary challenge of project management is to accomplish all the project tasks within the given time period. This information is usually described in project documentation, created at the initial of the development process. The initial constraints are scope, time and budget. The secondary challenge is to utilize the sharing of necessary inputs and apply them to meet pre-defined goals.
A key factor that differentiate project management from just " management" is that it has this final deliverable and a definite time period, unlike management which is an ongoing process. Because of this a project professional needs a large range of skills, often technical skills and certainly people management skills and good business awareness.
Project Management is the art of arranging all the components of a project. For example, the launching of a new service, a marketing campaign, or the development of a new product are projects. In fact, even arranging a wedding is a project that requires management.
Examples of projects may include the construction of a new bridge or building or developing software for an improved business process. A relief effort for a natural disaster , or setting up a strategy to break into a new sales geographic market are also projects.
CLASSIFICATION OF PROJECTS :-
Every Project is dissimilar in respect to other project so projects can be classified based on several different points. The classification of projects in project management varies according to a number of different factors such as complexity, source of capital, its content, those involved and its purpose. Projects can be classified based on the following factors.
1) According to complexity :-
a)Easy :- A Project is classified as easy when the relationships between tasks are fundamental and detailed planning or organizations are not required. A small work team and a few external shareholders and co- workers are common in this case. The tasks of the projects can be undertaken by a small team.
b)Complicated :- The project network is broad and difficult. There are many task interdependencies. With these projects, simplification where possible is everything. The task of executing this type of project requires proper planning.
2) According to the source of capital :-
a) Public :- Financing comes from Governmental institutions.
b)Private :- Financing comes from businesses or private incentives.
c) Mixed :- Financing comes from a mixed source of both public and private funding.
3) According to Project content :-
a) Construction :- These are projects that have anything to do with the construction of civil or architectural work. Predictive methods are used along with agile techniques. To say, construction is an engineering project and the process of planning its execution must be painstakingly done to reach the expected results.
b) IT :- Any project that has to do with software development, IT system, etc. The types of project management information systems vary across the board, but in today's world are very common.
c) Business :-These projects are involved with the development of a business idea, management of a team work, cost management, etc. and they generally follow a commercial strategy.
d) Service or product production :- These are projects that involve the development of a creative goods or service, design of a new product, etc.
4) According to those involved :-
a) Departmental :- When a certain department or area of an organization is involved.
b) Internal :- When a whole company itself is involved in the project's development.
c) Matriarchal :- When there is a combination of departments involved.
d) External :- When a company outsources external project manager or teams to execute the project. For example - digital transformations, process improvements and strategy changes.
5) According to its objective :-
a) Production :- Oriented at the production of a product or service taking into consideration a certain determined objective to be met by an organization.
b) Social :- Oriented at the improvement of the quality of life of people. This can be in the form of giving corporate social responsibility (CSR) to the people.
c) Educational :- Oriented at the education of others. This is always done to make them better.
d) Community :- Oriented at people too, however with their involvement.
e) Research :- Oriented at innovation and the gaining of knowledge to enhance the operational efficiency of an organization.
Key Takeaways
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Project consume resources of time and money. Without project management, how could we tell how many resources have been consumed and were they consumed productively or effectively for the company?
Project management is one of those things that looks easy until we try it. Below are the top ten needs of project management that will help us to answer the above arising questions.
a) Control scope creep and manage change :- Small changes in demands occur on every project. They come from management, the customer, our project team, suppliers or other shareholders. Individually, they may be acceptable, but as a whole these project demands can add up to an important project expansion( referred to as "scope creep" which can overturn our budget.
b) Deliver project results on time and on budget :- The project management process starts with a well thought out business case justification that generally comprises some type of cost calculation associated with Return On Investment(ROI). After these measures are established, the project manager ensure that on time, on budget performance is maintained, otherwise the project will never give the desired results.
c) Focus the project team on the solution :- The project team can easily go off the topic and spend their valuable time on the wrong tasks. A good project manager keeps the project team focused by using a intelligible and incisive project charter, sort out hurdles or cover the team work from unwanted difficulties.
d) Obtain project buy-in from disparate groups :- A good project manager uses the tools in the fundamental stage of project management to collect user requirements, project constraints and a feasibility study to build a strong business case justification. Utilizing input from various sources, the project manager overcomes dissent and obtains buy-in by communicating the project benefits as the different shareholders groups see them.
e)Define the critical path to optimally complete your project :- Every project is made up of a chapter of attached activities, each of which has its own limitations. The project manager identifies the critical path of activities - the optimal sequence of actions that best warrant the projects successful completion.
f) Provide a process for estimating project resources, time and costs :- Making use of project management software, earlier project experiences and a solid project fundamental stage can provide the discipline needed to decrease project estimating wrongs, increasing the likelihood that the project will finish on time and on budget.
g) Communicate project progress, risks and changes :- As a project progresses, shareholders must be kept informed of the outcomes, changes, etc. The need for project management exists partly because it creates a project communication plan to address these communication issues, provide a format and lay out a process for execution.
h) Surface and explore project assumptions :- Every projects are based , to some extent, on assumptions. A good project manager search into user requirements, project limitations and management expectations to understand what is said and not said.
i) Prepare for unexpected project issues :- Every project runs into unforeseen issues such as changes in market conditions and is hit with sudden cause variability. Accomplished project managers plan for the unexpected by lining up other courses of action.
j) Document, transfer and apply lessons learned from your projects :- The last phase of project management centre on "closing out" the project. The project manager reviews how well each prior phase - project initiation, project planning, project execution and project monitoring and control was performed.
CHARACTERISTICS OF PROJECT MANAGEMENT :-
Nowadays , project management is regarded as a very high priority as all companies or organizations, whether small or large, are at one time or another involved in implementing new undertakings, creativities and changes.
Effective project management call for having the following attributes that are necessary in becoming an effective project manager.
a) Effective communication skills :- The project manager must vividly explain the project goals as well as each member's tasks, responsibilities, expectations and feedback.
b) Strong leadership skills :- The project manager must have strong leadership qualities such as power to motivate his team to give the best performance to accomplish the goals.
c) Good decision maker :- The project manager must have decision making skills as there will always have some important decisions that need to be acted on.
d) Technical expertise :- An effective project manager needs to have sound technical knowledge to understand the issues that are related to the technical aspect.
e) Inspires a shared vision :- An effective project manager can lead his team to the right direction if he can eloquent the vision to his team members very well.
f)Team building skills :- Project managers need to know how to give the team work the importance they need by focusing on their positive attributes. He has to be fair and just in the way he treats them.
g) Cool under pressure :- As the project continues, certain incidents could take place on the project's momentum which could test the manager's patience. Therefore, it is essential that a project manager keeps his patience at each steps and not to lose himself that could adversely affect his relationship with the team.
h) Good negotiation skills :- In times, conflicts could arise due to differences in opinion, project managers need absolute negotiating skills to sort out the issue and maintain harmony and peace.
i)Empathetic :- Being grateful, understanding and caring are a few of the things that an empathetic leader shows to his members. It includes understanding the needs of the project and its shareholders.
j) Competence :- What a good manager is performing can initiate new projects as well as face the challenges that come with them.
It is essential for an effective project manager to have these characteristics for him to succeed in managing the project.
IMPORTANCE OF PROJECT MANAGEMENT :-
Project management may seem like a loose term used to describe the management of projects. However, projects tend to be complex and multifaceted, in need of effective planning, organization and monitoring.
'Why is project management important ?' is an interesting question that clients sometimes ask. They wonder if they really need project management because on paper it looks like an unnecessary tax and overhead as project managers don't really deliver anything and often get in the way of what they want the team to do.
Here, we have some of the importance of project management :-
a) Strategic alignment :- Project management is important because it makes sure what is being delivered, is right, and will deliver real value against the business opportunity. Every client has strategic goals and the projects that we do for them advance those goals.
b)Leadership :- Project management is important because it brings leadership and direction to projects. Without project management, a team can be like a ship without a rudder, moving but without direction , control or purpose. Leadership allows and enables team members to do their best work.
c)Clear focus & objectives :- Project management is important because it makes sure there's a proper plan for executing on strategic goals. Where project management is left to the team to work out by themselves, we will find teams work without proper briefs and without a defined project management methodology. Projects lack focus, can have vague or nebulous objectives, and leave the team.
d) Realistic project planning :- Project management is important as it warrants proper expectations are set around what can be delivered, by when , and for how much. Without proper project management, budget estimates and project delivery timelines can be set that are over ambitious or lacking in analogous estimating insight from similar projects.
e) Quality control :- Projects management is important because it warrants the quality of whatever is being delivered, consistently hits the mark. Without a dedicated project manager, tasks are under estimated, schedules tightened and processes rushed. The result is bad quality output as there's no quality management in place.
f) Risk management :- Project management is important as it warrants risks are properly managed and mitigated against to avoid becoming issues. Risk management is critical to project success. The temptation is just to sweep them under the carpet, never talk about them to the client and hope for the best.
g) Orderly process :- Project management is important as it warrants the right people do the right things at the right time -it makes sure proper project process is followed throughout the project lifecycle.
h) Continuous oversight :- Project management is important as it warrants a project's progress is tracked and reported properly. Continuous project oversight confirms that a project is tracking properly against the original plan, is critical to ensuring that a project stays on track.
i) Subject matter expertise :-Project management is important because someone needs to be able to understand if everyone's doing what they should. Project managers from their past experience will know a bit of delivering the projects they manage. They will build technical skills and subject matter expertise, they will know everything about the work that their teams execute, the platforms and systems they use etc.
j) Managing and learning from success and failure :- Project management is important because it learns from the successes and failures of the past. Project management can break bad habits and when one delivering projects, it's important not to repeat the same mistakes. Project managers use retrospectives, lessons learned, or upcoming project reviews to see what went fine, what didn't go so fine and what should be done in other way for the next project.
Key Takeaways
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While preparing project, view project into these three perspectives, it helps to give much better understanding of the whole process
1) How does project fit into the organization?
2) How the project will evolve over time?
3) What skills are required to manage the project successfully?
Let us have a closer look regarding the objectives of project management :
a) The successful development and implementation of all project's procedures. A project , regardless of its size, usually involves five distinctive stages of equal importance: Initiation, Planning and Design, Construction and Execution, Monitoring and Control, Completion. Running a smooth and easy going development and execution of all the above phases lead to a project succession.
b) Productive guidance, efficient communication and apt supervision of the project's team. Always one have to consider that the success or failure of a project is highly dependent on teamwork. Efficient communication is important where information needs to be presented in a vivid, unambiguous and in complete way.
c) The achievement of the project's main goal within the given constraints. The most important constraints are scope, time, quality and budget. Staying within the constraints always feeds back into the measurement of a project's performance and success.
d) Optimization of the allocated necessary inputs and their application to meet the pre-defined targets is a matter where is always space for improvement. All processes and procedures can be reformed and upgraded to enhance the sustainability of a project and to lead the team work through the strategic change process.
e) Production of a complete project which follows the client's exclusive needs and objectives. One need to shape and reform the client's sight or to work with them as regards the project's objectives, to modify them into feasible goals. Once the client's aims are vividly described they usually smash on all decisions taken by the project's stakeholders. Keeping the client's happy and fulfilling their expectations not only conduct a successful collaboration which probably eliminate surprises during project execution but also warrants the feasibility of one's professional status in the future.
In brief, project management objectives are the successful development of the project's procedures of initiation, planning, execution, regulation and closure as well as the guidance of the project team's operations towards achieving all the targets within the set scope, time, quality and budget standards.
HISTORY OF PROJECT MANAGEMENT :-
The term historical information refers to any information including funds that probably utilized by a team project leader for collecting information about projects, activities or events that had occurred previously for the purpose of providing sufficient insight and background to the team when decision is taken that will ultimately affect the current project.
Project management has been practiced for thousands of years dating back to the Egyptian era, but it was in the mid 1950s that organizations commenced applying formal project management tools and techniques to complex projects. Modern project management methods had their origins in two parallel but different problems of planning and control in projects in the United States. The first case involved the U.S Navy, which was covered with the control of contracts for its Polaris Missile project during that period. These contracts includes research, development work and manufacturing of parts that were non-identical.
This particular project was attributed by high uncertainty, where cost and time could not be measured accurately. Hence, completion times depended on probabilities. Time estimates were based on optimistic, pessimistic and most likely. These three time scenarios were mathematically assessed to estimate the probable completion date. This procedure was called program evaluation review technique(PERT). At first, the PERT technique did not take into consideration cost. The cost attributes was later added utilizing the same estimating approach. Due to the three estimation scenarios, PERT was found and still to be best suited for projects with a high degree of uncertainty reflecting their level of uniqueness.
The second case, involved the private sector, namely, E.I du Pont de Nemours Company, which had undertaken to construct major chemical plants in U.S. Unlike the Navy Polaris project, these construction needs accurate time and cost estimates. The methodology developed by this company was originally referred to as project planning and scheduling (PPS). PPS needs sensible approximate of cost and time and a more definitive approach than PERT. The PPS technique later developed into the critical path method (CPM) that became very famous with the construction industry.
During the 1960s and 1970s, both PERT and CPM grew their popularity within the private and public sectors. NASA and large engineering and construction companies World Wide applied project management principles and tools to manage large budget, schedule-driven projects. The popularity in the use of this project management tools during this period coincided with the development of computers and the associated packages that specialized in project management. At first these computer packages were very costly and were accomplished only on mainframe or mini computers. The use of project management techniques in the 1980s was easier with the launch of the P.C and low cost project management software. By the 1990s, project management theories, tools and techniques were extensively accepted by different industries and organizations.
Key Takeaways
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An organizational structure is a system that show how certain activities are directed in order to reach the goals of an organization. These activities can include rules, roles and responsibilities.
The organizational structure regulate how information flows between levels within the company. For example, in a centralized structure, decisions flow from top to bottom on the other hand , in a decentralized structure, decisions flow among various levels of the organizations.
A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason is to create a scenario that provides interactions among the team members with a minimum amount of disruptions, overlaps and conflicts.
Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency. Organizational charts also assign responsibility, organize workflow and make sure important tasks are completed on time.
Organizational workflow:- An organization's workflow is comprised of the set of processes it needs to achieve, the set of people or other resources available to perform those processes, and the interactions among them.
Executing the business process workflows in the right manner could go a long way in redefining our organization's workflow and help automate wherever possible.
Before we begin our task, it is important to know that we require a reliable, automated and no-code business process workflow software like C flow. It simplifies the process of creating workflows, makes it easier for our employees to communicate and get things done faster leading to improved customer satisfaction.
The main phases of business process are:-
Step 1- The first phase where an action will trigger the entire workflow and this is the point where it should end.
Step 2- Bringing in the people involved in the task to successfully complete it including team members, HRs, Admins and Managers.
Step 3- The set of fields that will be filled at step 1 and will be sent for final approval to the corresponding member.
Step 4- The final result will be related back to the original person who triggered the workflow in the first place.
All major workflows follow the same pattern which reduces any confusion and allows an employee to complete the task in time without any bottleneck issues. It also automates the process by following a standard template which makes the workflow easy to understand for everyone involved and approve or reject as needed.
The major workflows every organization should automate:
1) Document approval workflow:- A document approval process begins with creating the draft, reviewing it by self and send it to the manger for approval. If rejected, it will be sent back with comments to update document and sent again for approval. Once approved, it will be saved to the database and also sent to the specific team.
2) Expense approval process:- Expense claim is an important aspect of every company for all items including HR, IT and operations.
The finance team can reduce their burden with a streamlined workflow for the process. A default form with multiple fields should be filled with comments and sent for approval. It may also have the option to reject certain items in the list or the entire request.
3)New employee on boarding workflow:- The business process workflows simplify HR department's job.
It begins by collecting an employee's personal information in a form, saves it to the database and makes sure they sign all documents digitally after which the offer letter will be sent to the employee.
4) Leave approval workflow:- Employees in an organization where they approve leaves on time and provide incremental salary hike are bound to work harder, be more dedicated.
One can promote it by automating leave approval workflow which starts when the employee creates a request. The request can be approved or rejected by the team leader or manager.
5) New customer or vendor addition workflow:- The strength of a business lies in the type of customers a company has and the sellers who help them bring out products or services. A simplified workflow process will allow new customer or vendor to simply fill in a couple of basic details. Their information will automatically be recorded in the database and their file will be allocated an identification number before a welcome kit is forwarded to them.
6) Creating a new invoice:- It is easier than ever to send invoices to a customer with a business process workflow.
The template will have a couple of fields that need to be filled before sending an invoice to a vendor or customer forth services given. Once payment is credited, it will update automatically as cleared and send reminders to avoid late payment using automation software.
Key takeaways
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Businesses develop in their own way and at their own place. Several factors influence how a business develops, from the personality of its leaders to its chosen industry to the economic climate. The results can range from a structured, vertical hierarchy run a bit like a military operation, to a loose, horizontal free form group that has more the feel of busy but enjoyable summer camp. Businesses can develop from teams splitting off and pursuing their goals, known as differentiation. Conversely, they can develop from diverse individuals coming together for a common cause, a process known as integration.
Integration relates to how the different areas of the company coordinate their operations. A highly integrated company has strong connections between departments and product lines, with each section working under a cohesive set of rules and strategies. Integrated companies are highly vertical and hierarchical in nature. These companies operate from a top-down mindset, where the management dictates the structure of each department rather than allowing the individual departments to set their own agendas.
Many Japanese firms are well-known for their practices in creating highly integrated corporate cultures. Employees may be expected to participate in group exercises, recitations of company mottos, and a style of dressing or behaving all meant to instill an integrated sense of corporate identity.
Types of Organizational Structure:-
Here we have the seven common types of organizational structures and reasons why we might consider each of them:-
1) Hierarchical org structure:- The pyramid-shaped organizational chart is known as a hierarchical org chart. It is the most common type of organizational structure- the chain of command goes from the top( the CEO or manager) down( entry-level and low-level employees) and each employee has a supervisor.
Pros
*Better defines the levels of authority and responsibility
* Shows who each person reports to or who to talk to about specific projects.
Cons
* Can slow down innovation or important changes due to increased bureaucracy
* Can cause employees to act in interest of the department instead of the company as a whole.
2) Functional org structure:- Similar to a hierarchical org structure, a functional org structure starts with positions with the highest level of responsibility at the top and goes down from there. Primarily, though, employees are organized according to their specific skills and their corresponding function in the company.
Pros
* Allows employees to focus o their role
Cons
* Can create silos within an organization
3) Horizontal or flat org structure:- A horizontal or flat org structure fits companies with few levels between upper management and staff level employees. May startup businesses use a horizontal org structure before they grow large enough to build out different departments, but some org maintain this structure since it encourages less supervision and more involvement form all employees.
Pros
* Gives employees more responsibility
Cons
* Can create confusion among the employees due to lack of supervisor to report
4)Divisional org structure:- In divisional org structure, company's divisions have control over their own resources, operating like their own company within the larger org. Each division can have its own marketing team, sales team, IT team etc. This structure works well for large companies as it empowers the various divisions to make decisions without everyone having to report to the executives.
Pros
* Help large companies stay flexible.
Cons
* Can easily lead to duplicate resources
5)Matrix org structure:- A matrix org chart looks like a grid, and it shows cross-functional teams that form for special projects. For example, an engineer may regularly belong to the engineering department but work on a temporary project.
Pros
* Allows supervisors to easily choose individuals by the needs of a project.
Cons
* Can change more frequently than other org chart types
6) Team based org structure:- A team org structure is meant to disrupt the traditional hierarchy, focusing more on problem solving, cooperation, and giving employees more control.
Pros
*Promotes a growth mindset
Cons
* Might make promotional paths less clear for employees
7)Network org structure:- A network org structure makes sense of the spread of resources. It can also describe an internal structure that focuses more on open communication and relationships rather than hierarchy.
Pros
* Allows companies to be more flexible and agile
Cons
* Can quickly become complex when dealing with lots of offsite processes.
Key Takeaways
a) Hierarchical org structure b) Functional org structure c) Horizontal or flat org structure d) 4)Divisional org structure e) 5)Matrix org structure f) 6) Team based org structure g) 7)Network org structure |
An overview of the three forms of basic organization are:-
1) Sole proprietorship:- Majority of the small businesses start as sole proprietorship. These firms are owned by one person(individual) who runs the business daily. It own all the assets of the business and the profits generated by it. They also assume complete responsibility for any liabilities. In the eyes of the law and the public, the sole proprietor is one in the same with the business.
Pros
* Easiest and least expensive form of ownership to organize
* The business is easy to end up, if so required
Cons
* May have a hard time attracting high caliber employees, or those that are motivated by the opportunity to own a part of the business.
* Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are a risk.
2) Partnerships:- In a partnership, two or more people share ownership of a single business. Like proprietorships, the law does not distinguish between the business and its owners. The partners should have a legal agreement that sets forth how decisions will be made, profit will be shared, disputes will be resolved , how future partners will be admitted to the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnerships when needed. They also must decide up how much time and capital each will contribute.
Pros
* The profits from the business flow directly through to the partner's personal tax return.
* The business usually will benefit from partners who have complementary skills.
Cons
* Since decisions are shared, disagreements can occur
* Some employee benefits are not deductible from business income on tax returns
3) Corporations:- A corporation, chartered by the state in which it is headquartered, is considered by law to b a unique entity, separate and apart from those who own it. A corporation can be taxed, it can be sued, it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.
Pros
* Shareholders have limited liability for the corporation's debts or judgments against the corporation
* Corporation can raise additional funds through the sale of stock
Cons
* The process of incorporation requires more time and money than other forms of organization
* Corporations are monitored by federal, state and some local agencies, and as result may have more paperwork to comply with regulations.
Strategic Business Unit(SBU) in Project Management:- In business, a strategic business unit(SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign even though they may be a part of a larger business entity.
An SBU may be a business unit within a larger corporation, or it may be a business into itself or branch. SBUs, each of which is responsible for its own profitability. General Electric is an example of a company with this sort of business organization. SBUs are able to affect most factors which influence their performance. Managed as separate businesses, they are responsible to a parent corporation. General Electric has 49 SBUs.
Companies today often use the word segmentation or division when referring to SBUs or an aggregation of SBUs that share such commonalities.
SBU is a fully functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. It reports to the headquarters about its operational status. It operates independently and is focused on a target market. It is big enough to have its own support functions such as HR, training departments etc. There are several benefits of having an SBU. This principle works best for organizations which have multiple product structure. The best example f SBU are companies like Proctor and Gamble, LG etc. These companies have different product categories under one roof. For example, LG as a company makes consumer durables.
It makes refrigerators, washing machines, air- conditioners as well as televisions. These small units are formed as separate SBUs so that revenues, costs as well as profits can be tracked independently. Once a unit is given on SBU status, it can make its own decisions, investments, budgets, etc. It will be quick to react when the product market takes a shift or changes start happening before the shift happens.
Some of the characteristics of SBUs are:-
* Separate business or a grouping of similar businesses, offering scope for autonomous planning.
* Own set of competitors.
* A manager who is accountable for strategic planning, profitability and performance of the division.
A SBU is specially formed to target a particular market segment, which needs expertise in production or management, no present in the parent company.
c) PROJECT INITIATION:
I) PROJECT SELECTION:
Key takeaways
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Project selection is a process to assess each project idea and select the project with the highest priority. Selection of projects is based on:
i) Benefits: A measure of the positive results of the project. These are often describes as "the reasons why you are undertaking the project". The types of benefits of eradication projects include:
* Biodiversity
* Economic
* Social and cultural
* Fulfilling commitments made as part of national, regional or international plans and agreements.
ii) Feasibility: A measure of the likelihood of the project being a success, i.e. achieving its objectives. Projects vary greatly in complexity and risk. By considering feasibility when selecting projects it means the easiest projects with the greatest benefits are given priority.
Importance of project selection: In project management, selection of project is the foremost activity. Since it is the foundation on which all the project management is based, it should be given top priority by keeping in view the organization's strategy and business. Several factors influence the project selection process. This study focuses on the factors influencing the Information Technology(IT) project selection process. A survey was conducted in two mid-sized IT organizations, one public and another private, and nine small sized IT companies to study their business practices in selecting projects, and major influencing issues were identified. Along with developing a framework, the study presents a System Dynamics(SD) influence diagram and describes the type of influence among the issues and ultimately on project selection.
Often we will have number of suggested projects but not enough resources, money or time to undertake all of the projects. The ideas for eradication projects may have come from many sources including: the community, funders, local and national governments and Non- Governmental Organizations (NGOs). We will therefore need a way of deciding on a priority order and choosing a project.
If our organization has limited experience in conducting eradications then it is recommended to concentrate on a small number of projects, ideally one project at a time, until the people in our organization have developed the skills and experience. Grow capacity and build up to undertaking multiple projects at any one time. Do the easy projects first. Work towards the most difficult and rewarding projects. Use the easy projects to help answer or solve issues for the more difficult projects. Use the best opportunities to learn.
We may have a mix of straight forward and difficult eradication projects and do not know where to start. The project selection stage will assist us by providing a process to compare the importance f the projects and select the most suitable project to undertake.
The benefits of completing the project selection are-
* A transparent and documented record of why a particular project was selected
* A priority order for projects, that takes into account their importance and how achievable the project is.
Criteria for Project Selection( Models):-
There are 7 criteria in the project selection process are discussed below:
1. The priority of the business: This is ranked No.1 criteria of project selection. We need to answer the questions based on the internal and external environment whether the business can take this project. Will the project bring benefits to the organization? Can the organization sponsor this project? Is it a high priority number to be taken as a project for the organization?
2. Customer satisfaction: Whether the project is going to be completed as per the requirements of the customer? Whether the organization can benefit from this customer? Whether the organization can learn and execute the project to meet the expectation of the customer? Is it possible to keep the customer for the longer term? This is the second criterion to be fulfilled while making the project selection.
3. Resource availability: Before selecting the project we must analyze whether the organizations can bring to the table the staff working in the project whether the types of equipment are available or can be procured to start the project and complete the project.
4. Timelines: The next criteria the organization to evaluate is whether the timelines can be met to complete the project within the stipulated time. Time is an important parameter when considering project selection. Is this the right time to select the particular project at this moment?
5. Profit and benefits: Is the project that we are making the selection contribute to the organizational growth in terms of the profit, return of investment and other intangible benefits such as reputation, positivity, becoming the market leader and beat the competition. The profit in terms of money and value add is an important criterion to be achieved for the organization.
6. Required information availability: This step is important to consider for the project selection as it points out whether the technical depth, the functional depth, and requirements clarity is readily available in the organization to select the project and complete it. If these parameters are not available then we cannot complete the project within the cost, time and scope.
7. Success rate: The last criterion for making the project selection is the success rate. Whether the project can be completed on time, within budget and by meeting scope and quality to successfully meet the agreed upon requirements of the customer? If not the project cannot be considered for the selection.
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There are 11 types of project selection methods. They are:-
1. Benefit/cost Ratio:- It is the ratio of the cost incurred in present value of inflow or the cost invested in the project to the present value of outflow which is the value of return from the project.
2. Economic Model:-It calculates the value creation of the organization while defining the return of revenue. It is also defined as the net profit after the deduction of taxes and capital expenditure.
3. Scoring Model:-This model scoring is done for the projects based on the weights of importance and priorities. The project with the highest summed up weights is selected.
4. Payback period:- It is the ratio of the total cash to the average per period cash. It is the time necessary to recover the cost invested in the project. The payback period is a basic project selection method. The project that has the shortest payback period is preferred.
5.Net present value:- It is the difference between the project's current values of cash inflow to the current value of the cash outflow. The NPV must always be positive. When picking a project, one with a higher NPV is preferred.
6. Discounted cash flow:- This evaluates the future value of money when compared to the current value. For example, $ 20,000 won't have the same worth ten years from now.
7. Internal rate of return:- It is the annualized effective compounded return rate or the discount rate that makes the net present value of all cash flows( both positive and negative) from a particular investment equal to zero.
8. Opportunity cost:- It is the cost that is not coming to us when selecting another project. For example, the project with the least opportunity cost is selected.
9. Constrained optimization methods:- Constrained optimization methods also known as the mathematical model of project selection, are used for larger projects that require complex and comprehensive mathematical calculations.
10. Non-Financial considerations:- There are non-financial gains that an organization must consider, these factors are related to the overall organizational goals. The organizational strategy is a major factor in project selection method that will affect the organizations choice in the choice of project. Customer service relationships are chief among these organizations. An important necessity in today's business world is build effective, cordial customer relationships.
11. Benefit measurement methods:- Benefit measurement is a project selection technique based on the present value of estimated cash outflow and inflow. Cost benefits are calculated and then compared to other projects to make a decision.
Understanding Risk & Uncertainty in Project Selection:-
A project risk is an uncertainty that can be a negative or positive factor and it can affect the achievable performance to a significant extent.
Risk management involves determining those factors, planning how to avoid their negative effects or just simply accepting them if they are not affecting performance negatively.
Often times, the project team draws up contingency plans for significant risks. From there, they set those plans ready and apply them when necessary.
Project managers always try their best to conform to all the elements and avoid uncertainty in project management with the hope to confirm success in their undertaking. However, nobody can predict the future and project managers are not spared by the fact that may get in the way and cause some fear and uncertainties during the project development.
Project managers provide estimates of the project that is more than its actual estimate of completion because they include some allowances for uncertainties to happen. While it is almost impossible to eliminate uncertainty in project management, there are ways to reduce the elements. When there are only fewer elements to be considered in the estimation, the estimate becomes more reliable, and uncertainty becomes lower.
After reducing uncertainties, it is time to take a look at the remaining factors and check on a few strategies to use depending on the constraints:
* A fixed scope can give a fixed schedule by allocating about 30% of the schedule for uncertainties to happen.
* In high-uncertainty projects, the scope can be adjusted and commit only to the schedule as this is the only thing that can be controlled.
* In projects with the greatest uncertainty because the scope is unknown and there is no fixed schedule such as in reactive companies and departments like customer support, employees are trained to handle urgent matters quickly.
Getting used to uncertainty in project management means learning how t manage risks -coping with uncertainty factors and reducing them. No project manager can predict the uncertainties that can happen but they can learn to gauge the uncertainty degree in the project and find ways to adapt or prevent them.
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II ) PROJECT MANAGER:-
A project manager is the person responsible for leading a project from its inception to execution. This includes planning, execution and managing the people, resources and scope of the project.
Project managers are organized, passionate and goal-oriented who understand what projects have in common, and their strategic role in how organizations succeed, learn and change. He is a professional in the field of project management. Project managers are first point of contact for any issues or discrepancies arising from within the heads of various departments in an organization before the problem escalates to higher authorities as project representative.
Role of Project Manager:- A project manager is a person who has the whole responsibility for the initiation, planning, design, execution, monitoring, controlling and closure of a project. Construction, petrochemical, architecture, information technology and many different industries that produce product and services use this job title.
The project manager must have a combination of skills including an ability to ask penetrating questions, detect unstated assumptions and resolve conflicts, as well as more general management skills. Key among a project manager's duties is the recognition that risk directly impacts the likelihood of success and that this risk must be both formally and informally throughout the lifetime of a project.
Risk arise from uncertainty, and the successful project anger is the one who focuses on this as their primary concern. Most of the issues that impact a project result is one way or another form risk. A god project manager can lessen risk significantly, often by adhering to a policy of open communication, ensuring every significant participant has an opportunity to express opinions and concerns.
A project manager is a person who is responsible for making decisions both large and small. The project manager should make sure they control risk and minimize uncertainty. Every decision the project manger makes must directly benefit their project.
Project managers use project management software, such as Microsoft Project, to organize their task and workforce. These software packages allow project managers to produce reports and charts in a few minutes, compared with the several hours it can take if they do it by hand.
The role of a project manager encompasses many activities including:
Planning and defining scope, Activity planning and Sequencing, Resource planning, developing schedules, Time estimating, Cost estimating, developing a budget, documentation, creating charts and schedules, risk analysis, managing risk and issues, monitoring and reporting progress, team leadership, strategic influencing, business partnering, working with vendors, scalability, interoperability and portability analysis, controlling quality and benefits realization.
Finally, senior management must give a project manager support and authority if he or she is going to be successful.
Importance of Project Manager :- Some of the importance of project manager are:-
1. Alignment:- A project manager is important as he confirms that the deliverable is what the concerned clients wants, it is in the right shape and the real value is delivered to the client. He makes sure that the project architectural design is rigid and fits the broader picture of the client and its strategic framework. The project manger confirms that the objectives to the final deliverables are well aligned with the strategic goals of the client. The project is aligned and re-aligned in its entire course.
2. Leadership:- A project manger brings in leadership to the project and then the entire process. If the project manager is absent then the project is like a ship without its captain-moving without any direction, control and motive. A project manager and leadership both bring the best out of a team. He confirms there is no confusion, no hassles in the course of the project and its completely smooth.
3. Clear purpose:- A clear purpose is an important factor of a project manager that confirms there is proper planning in order to execute the project efficiently and the final goals are achieved. In the absence of a project manager, one can find the team working without any direction, do not have any purpose. Project managers make the projects under them time- bound and make the functioning feasible by breaking the project into smaller chunks where every team member is given each chunk. A good project manager needs to have the vision to adopt such an approach.
4. Achievable objectives:- Effective project mangers negotiate achievable deadlines with the client, team and management. Most of the tasks take longer than anticipated. A good project manager is able to analyze and balance the required timeline with all the available resources and come up with a realistic schedule.
5. Quality:- If the project quality has been compromised, the team, specially the project manager is answerable to the client, stakeholders and the management as he is the one responsible and accountable for the project. It will not result in dissatisfaction but also a loss to the business.
6. Managing risk involved:- A project manager helps to avoid risk against various hassles that come in the way of project completion. An efficient project manager analyzes the project well and notes down all the anticipated risks and issues beforehand.
7. Expertise on the subject:- A project manager is an expert in his area and knows every aspect of project management very well. He observes the project process meticulously ad keeps it moving smoothly and swiftly. Any kind of risk known to him beforehand, he devises a plan to tackle it.
8. Continuous supervision :- A project manager continuously tracks a project on a daily basis and maintains the status . He constantly reports to the client and confirms a friendly outcome.
9. Meticulousness:- Just as we keep our house in order, it is also very important to keep the project process in order. When things at home are in order any discrepancy can be easily noticed. Similarly, when the project process is in order any lacuna in the project can be immediately spotted.
10.Learning at the end:- The result of the project or any event is not measured by the efforts put in. It can be both favorable and unfavorable. If it is favorable then the project is a success and w can follow the same process in the near future. But if it is not favorable, then it is a failure and there is a need for modifying for future projects.
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Most definitions explain management consultants through their roles and duties and services which they provide using the tools as well as the skills they have in delivering a task assigned through the client or who owns the project.
* Prepare activity wise listing of dates( task scheduling):- Project preparing, scheduling, monitoring as well as coordinating the works of along with numerous. Agencies &vendors, along with economical execution along with quality assurance as well as completing the project inside stipulated time with safety measure as well as respecting the particular labor laws.
* That contain time & cost more than runs:-Preparing the actual micro level schedule duty thinking about the limitations of all kinds, identifying the reason why for delay & lapses as well as suggesting solutions & remedial techniques to curtail/ retain the cost and time overruns.
* Quality control & guarantee :- Quality control & assurance include in examining the quality of works like workmanship, finishing, materials bought, prepared as well as fabricated according to standards , testing all of them in laboratories, rejecting the non-standard materials, keeping the registers, strategies for fixing the duty if low standard s are located, reconciliation of materials, sustaining the dimensional report i.e., measurements/ dimensions pre and post execution.
* Time Vs high quality Vs cost:- The plan as well as scheduling shall be in a way how the quality won't be compromised. Time takes precedence more than cot as well as quality takes priority over loyalty of the vendor. Variation on price and time will certainly be informed towards the employer, nevertheless steps will be taken up to cover the delays towards the extent possible. Time, quality& cost will be in a proportionate manner that certainly should not overcome another.
* Additional/ extra items :- Additional/ extra pieces of work or deletion & addition of pieces of work as a direct result employer's decision as well as which will be taken up to carry on the further works, will be incorporated within the Master Routine without disturbing work schedule so far as possible. The Necessary Deviation Statement will be prepared every time they are observed.
* Safety precautions:- Safety code will be successfully implemented according of men, material, assets , animals as well as machinery. Necessary steps will be taken to guard the men, material as well as assets in the office by arranging required helmets, shoes, mitts, goggles, aprons, torch lights, first-aid boxes, barricading, distractions, fixing danger signals, fire safety arrangement and so on.
* Confirming system:- Planning & furnishing daily as well as weekly improvements report according of program & improvement of works, man strength engaged & work surrendered by all of them, the equipment deployed& their running hours, material receipts & consumption as well as in respect of other resources whether or not they are in commensuration using the progress.
* Checking of amounts, billing & repayment schedule:- Actual measurements from the quantities of materials as well as works will be checked through joint measurement as well as checking the specs as reported by the B.O.Q., deriving the rates of additional items according to the specs of items already utilized in BOQs, preparing operating account bills as well as final bills as per accepted measures in vogue recommending for recoveries as well as payments according to contract circumstances &eligibility.
Selecting Criteria for Project Manager :- A good project manager may not have advanced subject matter expertise in specific project activities. If the project manger has too much at stake in the project, objectivity can be threatened. In a major project, advanced expertise is often provided by sub- project managers who are charged with overseeing specific parts of the overall project. In some organizations fulltime project managers have no responsibilities outside of project work or they are contractors who provide their services on a project basis. In fact, fulltime PMs are a growing profession. When choosing a project manager, some criteria to consider include:
* Experience in managing projects
* Mastery of the project management process and tools
* Ability to dedicate the time necessary for project success
* Attention to detail
* Obsession with achieving objectives on-time ad on-budget
* Ability to communicate, orally and in writing
* Skills and experience managing and influencing people including those who are not direct reports
* Ability to juggle multiple responsibilities
*Flexibility- Tenacity- Patience
Choosing the right project manager is essential to project success. Choose wisely and dramatically improve the chances that our next project will come in on-time , on-budget and with the anticipated results.
The success of a project may be made more likely in having a qualified project manager. In an attempt to make it easier to select the best candidate for project manager, a profile of integrated requirements, with their associated predictors, was developed and formed into a model. A literature review revealed related articles on similar subjects. This review was used to create a list of specifications suitable for use in the selection process. A basic model framework was then created to streamline the process. The model consist of twenty one predictors that are grouped into five sets. The five sets are: problem solving, administration, supervision and project team management, interpersonal relationships and other personal qualities. The profile for the selection is represented by the formula PERFORMANCE= ABILITIES (MULTIPLY) MOTIVATION (MULTIPLY) PERSONALITY. While there are some limitations to this method of selection process, it should help make the project manager selection process less arbitrary.
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III) PROJECT PLANNING:-
Project planning plays an important role in helping guide stakeholders, sponsors, teams and the project manager trough other project phases. Planning is needed to identify desired goals, reduce risks, avoid missed deadlines and ultimately deliver the agreed product, service or result. Without careful planning, project performance is almost guaranteed to suffer. Project planning is an important step in the overall project management:
1. Ideation - The project planning is an important step to collate ideas from the customer, vendors, our team, top management and our thoughts and put them in learning. This entails us to research further and know the gaps if there any.
2. Reflect from the previous projects - The project planning is used to document and correct the ways and identify the risks and treat them so that this project does not go wary.
3. Document the project pan - Document everything necessary such as risks, previous project failure and work around, the resources needed, time frame, cost and budget, contingency plan etc. This ultimately helps the project for the successful completion.
Besides , there are also a few reasons that a project plan is important to most projects -
* It provides a shared vision for what the project will achieve- this common understanding can bind the team together in completing actions that satisfy the project's goals.
* It gives clarity on the responsibilities of team members and other organizations in contributing to the goals of the project.
* It organizes the work of the project and can be used to prevent extraneous work from crowding out legitimate project activities.
* It can be a very powerful communication mechanism, supplementing verbal interactions. This is an important written reference for the team, and can also be used with other stakeholders.
Functions of Project Planning:- The functions of project planning are:-
1. Market survey- Market survey, in a broad sense is a commercial survey for the suitability of business. It provides necessary statistics helpful for forecasting ad planning a project. The main objective of market survey is to find out the future of the proposed products. Before starting a business, market survey is very essential to know about what must be produced, how much be produced, who are the purchasers and where they are located, margin of profit.
2. Project Capacity - While deciding the capacity of the project, following are the factors which should be considered; demand of the product in the market, whether the demand is regular or fluctuating, quantity of power, water, land and raw material available, type of business organization, nature of the product, investment capacity.
3. Selection of site - While selecting the site technical, commercial and financial aspects should thoroughly be considered. Site should be selected in two stages, in first stage general location for factory should be decided and in second stage exact site should be selected in this location.
4. Plant layout - While deciding the plant layout, some important considerations are: whether single store building will be more useful or a multistory building, provisions for future expansion, material movement is kept to the minimum, flexibility for future changes, easy to supervise etc.
5. Design and drawing - The work of design should be done very carefully by the experienced designer considering all the relevant factors. After designing the product, its detailed drawings are prepared so that no doubt is left for future.
6. Material requirement - The list of material required for manufacture is prepared from the drawings. This list is known as " Bill of Material". This bill passes through the storekeeper who keeps the records of material available in the store.
7. Operation planning - The work of planning department is to select the best method of manufacturing, so that the wastage of material, labor, machine and time can be eliminated, to have more production with least fatigue. This work is done in two phases namely method study and time study.
8. Machine loading - Number of machines to be installed in a plant should be decided very carefully, as excess machines will lead to machine idleness, and shortage of machine means difficulty in achieving the target of production.
9. Sub-contract consideration - Earlier, all the components of the product was manufactured in the factory but with the development of technology and specialization, it is difficult to manufacture all the components in the same factory because specialized skilled workers for each component cannot be afforded by a single concern. The decision is taken by planning department whether to purchase or to manufacture after making a thorough study.
10. Equipment requirement - Results obtained from the "time and method study" and the "machine loading" helps in calculation the equipment requirement.
11. Organization layout and staff requirement - Now with all the available information, layout of organization is decided by considering the nature of work, type of industry, size of industry etc. Organizational set up should be able to give the co-ordination among men, material ad machine in such away to have maximum output easily at minimum cost.
12. Material handling - The material handling problem must b studied before the erection of the factory building and plant layout. It is a prime consideration in designing the new plant building.
13. Budgeting - Budgeting is a forecasting ad preplanning for a particular future period using past experience and market trends. Planning department prepares the budget.
14. Cost calculation - Total cost of a product can be calculated by adding the following expenses incurred during a particular period on a product: material expenses, labor expenses, factory expenses, administrative expenses, selling expenses, distribution expenses.
After calculating the total cost of a product, next step s to decide the profit to be taken on each product, which when added to the total cost gives the selling price of a product.
15. Break- Even point - Break- Even point is he level of the production/ sales where the industrial enterprise shall earn neither profit nor incur loss. It indicates the gestation period and likely moratorium required for repayment of loans.
16. Critical report on feasibility -In the end, a critical report is prepared on the basis of the cost information available from the above mentioned facts. The rate of return on the invested capital is taken as the criteria for analyzing the feasibility of the project. If the rate of return is too less than some other project may be taken up which may give the highest rates of return on the investment.
Key Takeaways
- Project planning plays an important role in helping guide stakeholders, sponsors, teams and the project manager trough other project phases.
System integration involves integrating existing (often disparate) subsystems and then creating unique and new value for the customer or end user. Successful integration planning efforts must encompass a broad scope to warrant that an initiative meets all specific business requirements. In order to maximize success and minimize re-work, a business evaluation should start and guide each systems integration effort.
Systems integration consists of assuring that the pieces of a project come together at the right time and that it, then functions as an integrated unit. However to achieve the integration process, all the various types of interfaces must be monitored and controlled, because integration, for the most part , is just another way of saying interface management. In addition, the number of interfaces can increase exponentially as the number of organizational units increase, and the life of a project manager can become very complex.
It makes little difference whether "the system" is a missile, a nuclear power plant, a petroleum refinery or a transportation system, the principles of systems integration are applicable. Similarly, it makes little difference whether the project manager has a pure project organization or is in a matrix organization, his integration function is the same. Although his interface problems are greatly intensified in a matrix organization.
A number of positive actions that the project manager must make assure that integration takes place have been suggested. The most important one is that of maintaining communication links across the organizational interfaces. Proving once again that the principle function of the project manager is to serve as a catalyst to motivate his project team.
Project Management Life Cycle:- The project management life cycle is a series of activities that are necessary to full fill project goals or objectives.
At the start of a project, the amount of planning and work needed can seem overwhelming. There may be dozens, or even hundreds of tasks that need to be completed at just the right time and in just the right sequence.
Seasoned project managers know it is often easier to handle the details of a project and take steps in the right order when we break the project down into phases. Dividing our project management efforts into these five phases can help give our efforts structure and simplify them into a series of logical and manageable steps:
1. Project Initiation:- Initiation is the first phase of the project lifecycle. This is where the project's value and feasibility are measured. Project managers typically use two evaluation tools to decide whether or not o pursue a project:
* Business case document- This document justifies the need for the project, and it includes an estimate of potential financial benefits.
* Feasibility study - This is an evaluation of the project's goals, timeline and costs to determine if the project should be executed. If balances the requirements of the project with available resources to see if pursuing the project makes sense.
Teams abandon proposed projects that are labeled unprofitable and unfeasible. However, projects that pass these two tests can be assigned to a project team or designated project office.
2. Project Planning:- Once the project receives the green light, it needs a solid plan to guide the team, as well as keep them on time and on budget. A well- written project plan gives guidance for obtaining resources, acquiring financing and procuring required materials. The project pan gives the team direction for producing quality outputs, handling risk, creating acceptance, communicating benefits to stakeholders and managing suppliers. The project plan also prepares teams for the obstacles they might encounter over the course of the project, and helps them understand the cost, scope and timeframe of the project.
3. Project Execution:- This is the phase that is most commonly associated with project management. Execution is all about building deliverables that satisfy the customer. Team leaders make this happen by allocating resources and keeping team members focused on their assigned tasks.
Execution depend heavily on the planning phase. The work and efforts of the team during the execution phase are derived from the project plan.
4. Project Monitoring and Control:- Monitoring and control are sometimes combined with execution because they often occur at the same time. As teas execute their project plan, they must constantly monitor their own progress.
To guarantee delivery of what was promised, teams must monitor tasks to prevent scope creep, calculate key performance indicators and track variations from allotted cost and time. This constant vigilance helps keep the project moving ahead smoothly.
5. Project Closure:- Teams close a project when they deliver the finished project to the customer, communicating completion to stakeholders and releasing resources to other projects. This vital step in the project life cycle allows the team to evaluate and document the project and move on the next one, using previous project mistakes and successes to build stronger processes and more successful teams.
Although project management may seem overwhelming at times, breaking it down into these five distinct cycles can help our team manage even the most complex projects and use time and resources more wisely.
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Project managers have to know how to resolve conflict to confirm a high-performing team. A project manager wears many hats during a project. One of the two hats that the project manager always seems to wear is that of a negotiator. Negotiations can occur during any phase of the project and multiple times during each phase. Project managers can negotiate with the project team, customers, and stakeholders. Some project managers are very good at negotiating, while others are not quite as good. A good negotiator knows there are two main classifications of negotiations: competitive and collaborative.
A competitive negotiation is a type of negotiation that is like a winner-takes-all battle royal. One side tries to get all of the resources and not share. This is a dangerous type of negotiation as bridges can be burned and feelings hurt.
A collaborative negotiation is the opposite of a competitive negotiation. This type tries to make both parties winners, also known as win-win negotiations. Most project managers look to use collaborative negotiations, as it will build long term alliances and decrease the chance of conflict later.
Tips on Negotiating
The following tips will help a project manager negotiate no matter if he will be using competitive or collaborative negotiations. The first tip is planning; the project manager should do his homework and gather as much information on the situation as possible. The second tip is to set the scene of the negotiation. Discuss why the negotiation is needed and the potential outcomes, both positive and negative. Tip three is bargaining. The project manger should plan on giving and taking to help with the negotiations. The final tip is to put the final agreement is writing.
So those were 'do' tips, there exists don'ts also. The project manger should never go into negotiations unprepared, start with unreasonable statements, keep badgering when not being productive or not stay calm when things don't go his way.
Conflict Resolution
The second hat that a project manager always seems to wear is the conflict resolver. Conflict resolution, just like negotiations, can occur during any stage of the project and can occur between the project team, stakeholders and customers. So, how does a project manager resolve conflict? Well the first thing he should do is:
Separate
The first item of a project manager must do is separate the conflict down into issues and people. The project manager must always remember that people have feelings and can harbor hard feelings for a while. He must remember people are people, and issues are, well, issues that is a long-winded way of saying work is work. After separation, the project manager can confront the parties, withdraw from the conflict, or step in and provide are solution.
Confront
On a project, the project manager is the final authority when it comes to conflict resolutions. The project manager confronts both parties and hears them out for a quick resolution. He has the power to make decisions in favor of one or the other party.
Withdraw from Conflict
This is where the project manager will withdraw from the conflict and let things work themselves out. Years of experience have taught veteran project managers this is not a good way to solve conflict.
Compromise
The project manager will negotiate a collaborative solution to the conflict. He will try to find a happy medium to allow both parties to walk away feeling as though they won. This will help smooth things over with each side.
Concede
Some conflict are not worth the time of both parties. When the project manager determines what the issue is, he can arrange for one party to have a win and the other party to walk away. This would be like competitive negotiations.
Planning Cycle & Master Production Scheduling:-
The project planning cycle refers to the step-by-step process, used by many project managers, for running through different project phases. This life cycle is a standard format and offers a framework for many small to medium sized projects.
The steps of planning cycle are:-
1. Analysis of the situation:-
i. The first step in health planning is the analysis of the current situation.
ii. The different aspects to be studied are:
* Population- age and sex structure,
*Morbidity and mortality values,
* Existing health care facilities, etc.
2. List out the objectives and goals:-
i. If there are no clear objectives and goals, a plan cannot be implemented efficiently,
ii. At the central level, the objectives would be more general and with each successive level, the objectives will become more specific.
3. Assessment of resources:-
The available material, capital, and human resources should be assessed.
4. Fix priorities:-
i. There may not be enough resources to attain all the objectives,
ii. So priority goals should be listed out and resources should be allocated to these.
5. Write up formulated plan:-
i. Once priorities are laid out, a systematic plan should be made to attain them,
ii. All the major steps should be included with the resources required for each step and the expected result.
6. Programming and implementation:-
i. Once the plan has been approved, it has to be implemented,
ii. If not properly implemented, even a good plan will fail,
iii. Implementation requires proper administrative support.
7. Monitoring
i. Monitoring refers to the assessment of the day to day functioning of the program,
ii. Any suggestions for improvement should be implemented.
8. Evaluation:-
i. Evaluation refers to the assessing the final result of the plan,
ii. A good plan should have an in built evaluation system.
A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts and other resources in order to optimize production, to identify bottlenecks and to anticipate needs and completed goods. Since a MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPSs are created by software with user tweaking.
Due to software limitations, but especially the intense work needed by the "master production schedulers", schedules do not include every aspect of production, but only key elements that have proven their control affectivity, such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply. The choice of what to model varies among companies and factories. The MPS is a statement of what the company expects to produce and purchase.
The MPS translates the customer demand, into a build plan using planned orders in a true component scheduling environment. Using MPS helps avoid shortages, costly expediting, last minute scheduling and inefficient allocation of resources. Working with MPS allows businesses to consolidate planned parts, produce master schedules and forecasts for any level of the Bill of Material (BOM)for any type of part.
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Reference-
- The Lazy Project Manager by Peter Taylor
- Project Management by K. Nagaranjan
