ppac session 1.ppt

7/23/2019 PPAC SESSION 1.ppt

1/76

PAN African e-Network Project

MFC

Project planning : Appraisal and Control

Semester - 3

Session - 1

Dr Loveleen


2/76

Module 1

Module I: Planning of Projects

Introduction to Capital and Infrastructure

Projects, Overview and Resource AllocationFramework,

eneration and !creenin" of Project Ideas,

Project Identification#


3/76

Planning of Projects

Project mana"ement is a professional

discipline combining systems, techniques

and people to ac$ieve a %usiness objective

within defined parameters of time, budget

and quality#

An important aspect of project mana"ement is

t$e %uildin" and maintainin" of effectiverelations$ips wit$ all t$ose involved in t$e project

t$rou"$ a participative and open communication

process#


4/76

Ori"in

&Project mana"ement& first %ecame popular in t$e earl'

19!s, driven %' %usinesses w$ic$ reali(ed t$at t$ere

were benefits to be gained from organi"ing wor# into

separate, definable units and from co$coordinatingdifferent #inds of s#ills across departments and

professions%

One of t$e first major uses of project mana"ement was

to $andle t$e &' space programmed, andgovernments, military organi"ations, and t$e

corporate world $ave all since adopted t$e discipline#


5/76

Operations and Project

)$e c$aracteristics of operations and projects are*

+ ot$ are performed %' people#

+ ot$ $ave constrained %' limited resources#

+ ot$ need to %e planned, e-ecuted, and controlled#

Projects are often implemented as a means of ac$ievin"

an or"ani(ation&s strate"ic plan#

Operations and projects differ primaril' in t$at as

operations are on"oin" and repetitive w$ile projects aretemporar' and uni.ue#


6/76

Projects are undertaken at all levels of t$e or"ani(ation#)$e' ma' involve a sin"le person or man' t$ousands# )$eir

duration ran"es from a few weeks to more t$an five 'ears#

Projects ma' involve a sin"le unit of one or"ani(ation orma' cross or"ani(ational %oundaries, as in joint ventures

and partnerin"#

Projects are critical to t$e reali(ation of t$e performin"or"ani(ation&s %usiness strate"' %ecause projects are a

means %' w$ic$ strate"' is implemented#


7/76

A project ma' %e an't$in" like*+ /evelopin" a new product or service

+ 0ffectin" a c$an"e in structure, staffin", or st'le of an

or"ani(ation

+ /esi"nin" a new transportation ve$icle

+ /evelopin" or ac.uirin" a new or modified information s'stem

+ Constructin" a %uildin" or facilit'

+ uildin" a water s'stem for a communit' in a developin"

countr'

+ Runnin" a campai"n for political office

+ Implementin" a new %usiness procedure or process


8/76

A project is s'nt$esi(in" predetermined amounts of t$e

resources of an or"ani(ation in desi"nin" and e-ecutin" its

strate"ies t$at will assist t$e or"ani(ation in desi"nin" and

e-ecutin" strate"ies#

A commercial project involves t$e followin" ke'considerations*

i2# 3$at is t$e cost of monetar' project4

ii2# 3$at is t$e time re.uired4

iii2# 3$at are t$e capa%ilities t$at it provides to t$e

or"ani(ation4

iv2# 3$et$er it will fit into t$e strate"ies of t$e or"ani(ation4


9/76

)emporar' Project )emporar' means that every project has a definite beginning and a

definite end# )$e end is reac$ed w$en t$e project&s o%jectives $ave %een

ac$ieved, or w$en it %ecomes clear t$at t$e project o%jectives will not or

cannot %e met, or t$e need for t$e project no lon"er e-ists and t$e project is

terminated# A project is considered to %e a temporar' process %ecause once t$e end

"oal is ac$ieved, t$e project is complete# For t$is reason, t$e end point of a

project needs to %e defined at t$e ver' %e"innin" of t$e project to ensure

successful completion#


10/76

)$e reason w$' some projects never end

is %ecause no one ever defined w$at

constitutes completion of a project# )$e %asic .uestions for definin" success

criteria are*

+ 3$' are we doin" t$is project4+ 3$at do we $ope to c$an"e4

+ 5ow will we measure success4


11/76

Criteria for project success are .uantifia%le and measura%le, and

are e-pressed in terms of %usiness value#

(ell$)efined *oals - Projects re.uire well6defined "oals to

determine project completion#

3it$out well6defined "oals and o%jectives, a project lacks purpose#

Project +onstraints -All projects $ave constraints and t$ese needto %e defined from t$e onset# Projects $ave resource limits in terms

of people, mone', time, and e.uipment# 3$ile t$ese ma' %e

adjusted, t$e' are considered fi-ed resources %' t$e project

mana"er# )$ese constraints form t$e %asis for plannin" t$e project#


12/76

A project is a uni.ue set of coordinated activities, wit$

definite startin" and finis$in" points, under taken %' an

individual or or"ani(ation to meet specific o%jectives

wit$in t$e defined sc$edule, cost and performanceparameters#

0-amples of some projects*

1# Construction of a /am for %etter irri"ation facilities

7# Construction of 8ational 5i"$wa'

9# Conductin" Afro6Asian ames


13/76

ature and )istinctive

+haracteristics of Projectsature:

1# Projects differ from stereot'ped %usiness activities and

t$e' are uni.ue#

7# 0ac$ project is different in itself#

9# Projects are not $omo"eneous $owever similar t$e' ma'

%e#

:# )wo projects cannot %e compared#

;# )o perform uni.ue tasks, or"ani(ations adopt project

approac$#


14/76

+haracteristics of 'uccessful Projects

1# +lear objectives6 )$e most successful projects clearl' define o%jectives from t$e outset#

7# - good project plan 6 A carefull' t$ou"$t6out plan serves two purposes#

First, it allows ever'one involved to understand and perform t$eir part in t$e project#

It s$ows w$o is responsi%le for w$at and estimates $ow muc$ mone', people, e.uipment and

time will %e re.uired to complete t$e project#

!econd, it serves as a monitorin" tool, allowin" 'ou to take earl' action if t$in"s "o

wron"#

9# +ommunication, communication, communication 6 Project is a colla%orative effort

%etween all of t$e individuals and or"ani(ations involved# )$e' need to work to"et$er to

maintain effective and continual communication %etween t$e parties#

:#- controlled scope 6 8umerous issues will come up t$rou"$out t$e project, and not all of

t$em will contri%ute to t$e overall o%jectives# It is important to sta' focused on t$e priorities,

wit$ little wasted time or attention#

;#'ta#eholder support 6 Projects t'picall' involve several stake$olders, w$o invest time and

resources in t$e project# It is important to maintain stake$older support t$rou"$out t$e project,

so t$e project team can meet its o%jectives#


15/76

Project Parameters*

)$e parameters t$at influence a project w$ic$ is "enerall' comple- in natureare*6

'cope Covers all activities, financial


16/76


17/76


18/76

A project is a part of pro"ram, w$ic$ can %e put into t$e

%usiness as .uickl' as possi%le# It is a roup of Projectsmana"ed in a co6coordinated wa' to o%tain %enefits notavaila%le from mana"in" t$em individuall'#

All projects do not involve t$e same level of mana"erial skills,costs, tec$nolo"', or comple-it'#

/he projects can be grouped by ta#ing the degree ofuncertainty and system compleity or scope%

)egree of uncertainty ran"es from low to $i"$# It issu%divided as @ow6tec$, medium6tec$, $i"$tec$, and super6tec$#

Assem%l' projects $ave low comple-it' w$ereas Arra'projects $ave $i"$ comple-it'#


19/76


20/76

Project Mana"ement

Project management is t$e application of

knowled"e, skills, tools, and tec$ni.ues to

project activities to meet projectre.uirements#

Project mana"ement is accomplis$ed

t$rou"$ t$e use of t$e processes suc$ as*initiatin", plannin", e-ecutin", controllin",

and closin"#


21/76

)$e project team mana"es t$e work of t$e

projects, and t$e work t'picall' involves*

+ Competin" demands for* scope, time, cost,risk, and .ualit'#

+ !take$olders wit$ differin" needs and

e-pectations#

+ Identified re.uirements#


22/76

eed of Project Management

)$e decision on w$et$er or not to set6up a separate project

mana"ement division finall' is su%jective, t$at decision

depends on man' factors as6

1# Interdependencies amon" departments

7# Resource s$arin"

9# Importance of project

:# Project si(e

;# ni.ueness of project

B# Market volatilit'

# Or"ani(ation reputation


23/76

Interdependencies among departments

Interdependence amon" various departments of

or"ani(ation is one of t$e major factors t$at dominate

decision# If t$e task to %e completed re.uires t$at man'functionalit' separated activities $ave to %e put at one

place and if t$e activities depend on one anot$er, i#e#

$ave to %e carried out in a se.uence, project

mana"ement tec$ni.ues are definitel' re.uired#


24/76

0esource 'haring

Project mana"ement is re.uired w$en t$e services of speciali(ed

professionals, w$ic$ ma' %e in scarcit' in t$e or"ani(ation and also

e-pensive are re.uired for t$e project# Project mana"ement tec$ni.ues $elp

in keepin" t$e resources full' emplo'ed, t$us reducin" %ot$ direct and

indirect costs, w$ile ensurin" t$e deliver' of t$e needed services#

Importance of project

!et up of separate project mana"ement department depends on t$e

importance of project to t$e or"ani(ation# A project s$ould %e viewed upon

as somet$in" t$at contri%utes to t$e a%ilit' of t$e or"ani(ation in succeedin"in its future as well# It s$ould %e considered as an opportunit' to ac$ieve a

tar"et t$at is 'et anot$er step towards its "oals ac$ievin" its mission#


25/76

Project si"e Project si(e is a relative factor %ut it can %e said t$at

w$en an or"ani(ation re.uires su%stantiall'more

resources t$an it normall' uses, project mana"ement

can %e "ainfull' used# &niqueness of project

@ack of familiarit' or precedent to follow usuall' creates

insecurit' and disa"reement, particularl' amon" t$ose at

t$e middle and lower levels of mana"ement#


26/76

Mar#et 2olatility

3it$ increasin" competition in market nature of t$e market c$an"es

continuousl'# )ec$nolo"ical c$an"es are takin" place rapidl' and

values and %e$avior of consumers are virtuall' in a state of flu-# 3rgani"ation reputation

If failure in completin" t$e project on time is likel' to dama"e t$e

reputation of or"ani(ation su%stantiall', a project mana"ement

s$ould %e seriousl' considered# An or"ani(ations& financial position

ma' %e seriousl' dama"ed if penalties entail failure to deliver ontime#


27/76

Implementing a new computeri"ed ba#ing system

PM Includes:

1# /evelopin" a Project Plan Project oals, 5ow t$e' will %e accomplis$ed2

7# !pecif'in" $ow "oals will %e accomplis$ed

9# !pecif'in" w$at resources are needed

:# Relatin" %ud"ets D time for completion

PM disciplines are:

1# Finance EFinancial !tatements, Cost of t$e Project, etc#

7# Personnel E!electin" !killed Personnel, Project Mana"er, Project )eam, etc#

9# Purc$ases D @o"istics

:# RD / E8ew Product /evelopment D =ualit' Assurance

;# Marketin" EMarketin" Project Idea to !ponsors

B# Operations EMana"in" Activities


28/76

0elationship between Project 4 5ine Management

!uccess of a project depends upon "ood relations$ip

%etween project mana"er and various functional mana"ers

line staff2#Project Mana"er s$ould e-ercise judicious control over

resources mone', manpower, mac$iner', facilities,

materials, tec$nolo"' D information2 allocated to project %'

various functional departments#


29/76

6enefits of Project Management

Major enefits*

1# Provides tec$ni.ues for trade6off %etween conflictin" "oals D enterprise priorities#

7# etter control of project#

9# etter co6ordination#

:# Reduces developmental time

;# @owers cost

B# 5i"$ order results#

Ot$er enefits*

1# Clear description of work#7# Identification of responsi%ilities D assi"nments for specific tasks# D activities

9# )rackin" of functional responsi%ilities#

;# 0as' specification of time limits for task completion#

B# Pro%lems are e-posed in advance#

# Improved skills for future plannin"#

G# O%jectives w$ic$ cannot %e met or e-ceeded can %e identified easil'#

H# Measurement of accomplis$ment a"ainst plans is ena%led#


30/76

P0378+/ M--*8M8/ 3(58)*8 -08-', 5I8 +;+58, -)

08+&00I* -+/I2I/I8':


31/76

Or"ani(ations performin" projects will usuall' divide eac$ project into severalproject phases to improve mana"ement control and provide for links to t$eon"oin" operations of t$e performin" or"ani(ation# Collectivel', t$e projectp$ases are known as t$eproject life cycle#

0ac$ project p$ase is marked %' completion of one or more delivera%les# Adeliverableis a tan"i%le, verifia%le work product suc$ as a feasi%ilit' stud', a

detail desi"n, or a workin" protot'pe# )$e delivera%les, and $ence t$e p$ases,are part of a "enerall' se.uential lo"ic desi"ned to ensure proper definition oft$e product of t$e project#

)$e conclusion of a project p$ase is "enerall' marked %' a review of %ot$ ke'delivera%les and project performance to date, to a2 determine if t$e project

s$ould continue into its ne-t p$ase and %2 detect and correct errors costeffectivel'# )$ese p$ase6end reviews are often called phase exits, stagegates, or kill points#


32/76

Project life c'cles "enerall' define*+ 3$at tec$nical work s$ould %e done in eac$ p$ase

e#"#, is t$e work of t$e arc$itect part of t$e definitionp$ase or part of t$e e-ecution p$ase42#

+ 3$o s$ould %e involved in eac$ p$ase e#"#,implementers w$o need to %e involved wit$re.uirements and desi"n2#

+ Project life6c'cle descriptions ma' %e ver' "eneral orver' detailed# 5i"$l' detailed descriptions ma' $ave

numerous forms, c$arts, and c$ecklists to providestructure and consistenc'# !uc$ detailed approac$esare often calledproject management methodologies#


33/76

Most project life6c'cle descriptions s$are a num%er of commonc$aracteristics*

+ Cost and staffin" levels are low at t$e start, $i"$er toward t$eend, and drop rapidl' as t$e project draws to a conclusion#

+ )$e pro%a%ilit' of successfull' completin" t$e project is lowest,and $ence risk and uncertaint' are $i"$est, at t$e start of t$e

project# )$e pro%a%ilit' of successful completion "enerall' "etspro"ressivel' $i"$er as t$e project continues#

+ )$e a%ilit' of t$e stake$olders to influence t$e finalc$aracteristics of t$e project&s product and t$e final cost of t$eproject is $i"$est at t$e start and "ets pro"ressivel' lower as t$e

project continues# A major contri%utor to t$is p$enomenon is t$att$e cost of c$an"es and error correction "enerall' increases ast$e project continues#


34/76

Project life c'cle can %e divided into p$ases# )$ese p$asescorrespond wit$ c$an"es in t$e level of activit' or effort put into t$eproject and uncertaint' re"ardin" t$e final outcome of t$e project#

Phase I: +onception 4 'election

Phase II: Planning 4 'cheduling

Phase III: Implementation, Monitoring 4 +ontrol

Phase I2: 8valuation 4 /ermination


35/76

)$e level of activit', in an' project, starts at a low leveland t$en rises slowl'# In conception D selection p$ase,%efore it is decided w$et$er or not somet$in" is a

wort$w$ile idea or w$ic$ of t$e several alternative ideass$ould %e proceeded wit$, t$e activit' is naturall' lowand is confined to conductin" feasi%ilit' studies,estimatin" revenues and costs, etc# In t$is p$ase amountspent is also low, as t$e num%er of emplo'ees workin"

on it#


36/76

)$e functions to %e performed %' t$e project mana"er ort$e team workin" on t$e project are*6

1# Identif'in" a need for a project

7# 0sta%lis$in" "oals to %e ac$ieved %' t$e project9# 0stimatin" t$e amount t$at t$e firm will $ave to commitfor t$e project#

:# Presentin" t$e project idea or various alternative ideas to

t$e mana"ement and "et t$eir approval#


37/76


38/76

Project Initiation and Concept

/evelopment


39/76

Project Management is an Iterative Process )$e

arrows indicate t$at project mana"ement is an iterative

process# It is not a lock6step se.uence of activities#

Project mana"ement re.uires "eneral mana"ementknowled"e# )$e principles, practices, concepts,

tec$ni.ues, tools, and skills of "eneral mana"ement are

t$e foundation for project mana"ement# )$ese skills

include t$e a%ilit' to work well wit$ people, to takeresponsi%ilit', to lead a "roup, and to make decisions#


40/76

0is# in Projects

In project mana"ement terms, risk refers to an uncertain event or

condition t$at $as a cause and, t$at if it occurs, $as a positive or

ne"ative effect on a project&s o%jectives, and a conse.uence on

project cost, sc$edule or .ualit'#

For e-ample* t$e cause of a risk ma' %e re.uirin" a classroom wit$

networked computers for t$e learners in a skills development

project# )$e risk event is t$at Internet connection is dela'ed and t$e

classroom is not availa%le for t$e anticipated start date#

A risk response plan can $elp t$e project# It identifies t$e risks t$at

mi"$t affect t$e project, determines t$eir effect on t$e project and

includes a"reed6upon responses for eac$ risk#


41/76

/he 0is# Management 'trategy

Identifying 0is#s*)$e first step in creatin" a risk response plan is to identif' risks w$ic$

mi"$t affect t$e project#

)$e project mana"er, ke' staff and project partners s$ould

%rainstorm referrin" to t$e project c$arter, calendar of activities

sc$edule and %ud"et to identif' potential risks# )$ose involved in t$eproject can often identif' risks on t$e %asis of e-perience#

Pu%lis$ed information resources are also availa%le t$at identif' risks for

man' application areas#

Common sources of risk in communit' learnin" initiatives include*

)ec$nical risks + suc$ as unproven tec$nolo"'

Project mana"ement risks + suc$ as a poor allocation of time or resources

Or"ani(ational risks + suc$ as resource conflicts wit$ ot$er activities

0-ternal risks + suc$ as c$an"in" priorities in partner or"ani(ations


42/76

/evelopin" Risk Response

!trate"ies*!everal risk response strate"ies are availa%le*

< -voidance+ c$an"in" t$e project plan to eliminate t$e risk or protect t$e o%jectives from

its impact# An e-ample of avoidance is usin" a familiar tec$nolo"' instead of an innovative

one#

/ransference + s$iftin" t$e mana"ement and conse.uence of t$e risk to a t$ird part'#

Risk transfer almost alwa's involves pa'ment of a premium to t$e part' takin" on t$e risk#

An e-ample of transference is usin" a fi-ed price contract for a consultant&s services#

< Mitigation+ reducin" t$e pro%a%ilit' and


43/76

Criteria for project success are .uantifia%le,measura%le, and e-pressed in terms of %usiness

value metrics# )$e' include* Customer#

Project containin" a purpose or an o%jective2#

!cope#

/elivera%les#

!tart and 0nd /ates#

!ponsor#

Identified Resources#

Project Mana"er#


44/76

Components to Project !uccess

)$ere are t$ree main component .uestions t$at

need to %e answered to ensure t$e success of

projects# )$e' are*1# /oes t$e product


45/76

ine nowledge -reas in

Project Phases1# Integration Management 6 Includes t$e processes re.uired to

ensure t$at various elements of t$e project are properl' coordinated#

7# 'cope Management 6 Includes t$e processes re.uired to ensure

t$at t$e project includes all t$e work re.uired, wit$out additional andunnecessar' work, to complete t$e project successfull'#

9# /ime Management 6 Includes t$e processes re.uired to ensure

timel' completion of t$e project#

:% +ost Management 6 Includes t$e processes re.uired to ensure t$at

t$e project is completed wit$in t$e approved %ud"et#

;# .uality Management 6 Includes t$e process re.uired to ensure t$at

t$e project will satisf' t$e needs for w$ic$ it was undertaken#


46/76

B# =uman 0esource Management $Includes t$e processes re.uired to make

t$e most effective use of people involved in t$e project#

% +ommunications Management 6 Includes t$e processes re.uired to ensure

timel' and appropriate "eneration, collection, dissemination, stora"e, and

ultimate disposition of project information#G% 0is# Management $ Is t$e s'stematic process of identif'in", anal'(in", and

respondin" to t$e project task#

H# Procurement Management 6 Includes t$e processes re.uired to ac.uire t$e

"oods and services to attain project scope from outside t$e performin"

or"ani(ation#


47/76

)$e relations$ip %etween t$e five project mana"ement p$ases and

t$e nine knowled"e areas are depicted in t$e Fi"ure s$own %elow*


48/76

'oftware )evelopment Projects


49/76

Project Initiation, 0esource -llocation,

Idea *eneration and +reativity

3ise allocations of resources or wise capital e-penditure

decisions are t$e steppin" stones for an' or"ani(ation&s

success#

-% 0esource -llocation* Resource allocation is "enerall'

done at two levels* One, at t$e or"ani(ation or top level

and two, at t$e department level# At t$e top level, t$e

distri%ution of resources amon" various departments oradministrative units is considered# At t$e department level,

$ow t$e department or unit s$ould utili(e t$e resources

allocated to it is decided#


50/76

ii2 0esource -llocation at the )epartment5evel: If resources are allocated to different

departments of an or"ani(ation %ased on

formula, t$en t$e units $ave to t$ink of t$e %est

wa's to deplo' t$em# If allocation is %ased on

open competition or free %ar"ainin", units will

$ave to %e read' wit$ t$eir investment plans#


51/76

Anal'sis of its strate"ic a%ilities itself ma' often

lead t$e unit to t$e identification of areas w$ere

it can invest and w$ere it s$ould not# Identif'in"

investment alternatives can %e descri%ed in two

steps*6

1# 0nvironment anal'sis

7# !trate"ic capa%ilities anal'sis


52/76

8nvironment -nalysis:

Jarious tec$ni.ues are used to anal'(e t$e various

components or factors in t$e environment#

Pest and Porter&s five forces model is t$e %est to anal'(e

environment#

P8'/ -nalysis:

0nvironment is divided into four componentsK

1# Political factors

7# 0conomic factor

9# !ocio6cultural factor

:# )ec$nolo"ical factor


53/76

Porter>s Model: )$e PorterLs ; Forces tool is a simple %ut powerfultool for understandin" w$ere power lies in a %usiness situation# )$is

is useful, %ecause it $elps 'ou understand %ot$ t$e stren"t$ of 'our

current competitive position, and t$e stren"t$ of a position 'ouLre

lookin" to move into#

3it$ a clear understandin" of w$ere power lies, 'ou can take fairadvanta"e of a situation of stren"t$, improve a situation of

weakness, and avoid takin" wron" steps# )$is makes it an important

part of 'our plannin" toolkit#

Conventionall', t$e tool is used to identif' w$et$er new products,

services or %usinesses $ave t$e potential to %e profita%le# 5oweverit can %e ver' illuminatin" w$en used to understand t$e %alance of

power in ot$er situations too#


54/76


55/76

'trategic capabilities

analysis:1% 0esource -udit: )$e firm considers w$at all t$e resources availa%le to itare# Classif'in" w$erever possi%le into t$ose t$at are readil' availa%le and

t$ose t$at can %e o%tained w$en re.uired# ot$ .ualit' and .uantit' %ein"

consider#

?% 2alue +hain -nalysis: )$e value c$ain is a s'stematic approac$ toe-aminin" t$e development of competitive advanta"e# It was created %' M#

0# Porter in $is %ook, Competitive Advanta"e 1HG2# )$e c$ain consists of

a series of activities t$at create and %uild value# )$e' culminate in t$e total

value delivered %' an or"ani(ation# )$e Lmar"in& depicted in t$e dia"ram is

t$e same as added value# )$e or"ani(ation is split into Lprimar' activitiesL

and Lsupport activities#L


56/76


57/76

Primary -ctivities

Inbound 5ogistics

5ere "oods are received from a compan'Ls suppliers# )$e' are stored until t$e' are needed on

t$e production


58/76

'upport -ctivities

Procurement

)$is function is responsi%le for all purc$asin" of "oods, services and materials# )$e aim is to secure

t$e lowest possi%le price for purc$ases of t$e $i"$est possi%le .ualit'# )$e' will %e responsi%le for

outsourcin" components or operations t$at would normall' %e done in6$ouse are done %' ot$er

or"anisations2, and ePurc$asin" usin" I) and we%6%ased tec$nolo"ies to ac$ieve procurement

aims2#

/echnology )evelopment

)ec$nolo"' is an important source of competitive advanta"e# Companies need to innovate to reduce

costs and to protect and sustain competitive advanta"e# )$is could include production tec$nolo"',

Internet marketin" activities, lean manufacturin", Customer Relations$ip Mana"ement CRM2, and

man' ot$er tec$nolo"ical developments#

=uman 0esource Management @=0MA

0mplo'ees are an e-pensive and vital resource# An or"anisation would mana"e recruitment and selection, trainin" and development, and rewards and remuneration# )$e mission and o%jectives of t$e

or"anisation would %e drivin" force %e$ind t$e 5RM strate"'#

irm Infrastructure

)$is activit' includes and is driven %' corporate or strate"ic plannin"# It includes t$e Mana"ement

Information !'stem MI!2, and ot$er mec$anisms for plannin" and control suc$ as t$e accountin"

department#


59/76

Portfolio -nalysis

)$e 6+* matri aka #C## anal'sis, C6matri-, oston o-, oston

Matri-, oston Consultin" roup anal'sis2 is a c$art t$at $ad %een created

%' ruce 5enderson for t$e oston Consultin" roup in 1H to $elp

corporations wit$ anal'(in" t$eir %usiness units or product lines# )$is $elps

t$e compan' allocate resources and is used as an anal'tical tool in %rand

marketin", product mana"ement, strate"ic mana"ement, and portfolio

anal'sis#

Cash cows are units wit$ $i"$ market s$are in a slow6"rowin" industr'#

)$ese units t'picall' "enerate cas$ in e-cess of t$e amount of cas$ needed

to maintain t$e %usiness#

Dogs, or more c$arita%l' called pets, are units wit$ low market s$are in amature, slow "rowin" industr'# )$ese units t'picall' N%reak evenN,

"eneratin" %arel' enou"$ cas$ to maintain t$e %usinessLs market s$are#


60/76

Question marks also known as pro%lem c$ild2 are

"rowin" rapidl' and t$us consume lar"e amounts of

cas$, %ut %ecause t$e' $ave low market s$ares t$e' do

not generate much cash#

Stars are units wit$ a $i"$ market s$are in a fast6

"rowin" industr'# )$e $ope is t$at stars %ecome t$e ne-tcash cows


61/76


62/76

*eneration of Project ideas

)$is is possi%le t$rou"$ creativit', w$ic$ is

t$e a%ilit' to com%ine, or s'nt$esi(e t$e

availa%le information and e-perience to"enerate new project ideas# )$e two t'pes

of creativit' are*

+ Individual Creativit' and

+ roup Creativit'#


63/76

Individual +reativity:1# Attri%ute @istin" @istin" of attri%utes attac$ed to t$e final products and

desi"nin" t$e products %ased on t$ese attri%utes2#

7# C$ecklist C$ecklist of .uestions to %e prepared and tr'in" to find solutions

to t$e same2#

9# lack o- Availa%le and re.uired inputs as well as desired outputs are listed

and an attempt is made to envision $ow t$e outputs are possi%le from t$e

inputs2#

:# /irected /reamin" )$e pro%lem solver tries to "o to sleep w$ile t$inkin" of

t$e pro%lems, wit$ t$e $ope t$at t$e su%conscious will t$rou"$ up a solution2#


64/76

*roup +reativity:1# 6rainstorming A "roup sittin" to"et$er and "o on "eneratin"

solutions to t$e pro%lems on $and, welcomin" improvement of ideas and

s'nt$esi(in" two or more ideas2#

7# )elphi 0stimates are called from a panel of e-perts, w$o are not

allowed to meet and discuss or de%ate eac$ ot$er&s opinions# Individual

e-perts are asked to "ive t$eir opinions independentl'# A panel of

coordinators reconciles after second round of opinions and consensus2#

9# ominal *roup /echnique It is a structured tec$ni.ue administered

%' a coordinator %ased on t$e ; steps* !ilent idea "eneration, Round6

ro%in presentation, Idea classification, Jotin" and rankin", and

/iscussion of results# )$e ideas "enerated are ranked and t$e %est is

c$osen


65/76

Project 'creening* )$is is for prima facie turnin" down

t$ose project ideas, w$ic$ do not meet t$e %asic criteria ofpreliminar' appraisals# )$e projects are identified, primaril',

on t$e %asis of t$e knowled"e of t$e surroundin"s and t$e

internal !3O) anal'sis# In ot$er words,

+ selection and formulation of project ideas must %e matc$ed wit$

+ )$e promoters& personalit' traits, resources, and returns

+ Prero"atives of a nation socio6economic motifs2

+ alancin" t$e raw material crunc$

+ !tances of t$e present and future market+ Cost %enefit anal'sis considerin" t$e economies of scale

+ Risk6return vettin"


66/76

Project Identification

)$e ke' feature of t$is activit' is reco"ni(in" t$at identif'in" candidate

projects is somet$in" t$at an or"ani(ation s$ould do on a re"ular %asis,

not just once eac$ 'ear#

Process )escription

Project Identification is a repeata%le process for documentin",

validatin", rankin" and approvin" candidate projects wit$in an

or"ani(ation%

Process Purpose

/ue to t$e c$an"in" financial conditions wit$in t$e total or"ani(ation, it

is necessar' to esta%lis$ a sta%le process for approvin" projects for

initiation#


67/76

Process low

+80/I; 6&'I8'' +-'8

1# )ocument 6usiness +ase 0valuate all Candidate Project Information t$at $as

%een provided %' t$e re.uestin" or"ani(ation or t$at $as %een "at$ered %' a

tec$nical anal'st# If additional information is needed, issue an Information

Re.uest to t$e re.uester# Format t$is information into a usiness Case# Assi"n t$eCandidate Project a new Project Code#

7# 0eview 6usiness +ase )$e usiness Case will %e e-amined %' a screenin" %od'

wit$ t$e corporate aut$orit' to accept or reject a Candidate Project# 3$en a

usiness Case is accepted, t$e Candidate Project is captured in a repositor' for

rankin" and selection# If additional information is re.uired on a usiness Case,

note it as pendin" and issue an Information Re.uest to t$e re.uester# If ausiness Case is rejected, send t$e information to t$e re.uester wit$ an

e-planation for t$e rejection# Remain t$is information in a repositor'#

9# &pdate 6usiness +ase 3$en additional information is received on a Candidate

Project, o%tain t$e pendin" usiness Case from t$e repositor' and revise t$e data#

)$is usiness Case s$ould now %e reconsidered %' process#


68/76

0an# +andidate Projects 3$en re.uested, all Candidate Projects t$at

are in t$e repositor' s$ould %e o%jectivel' ranked in order of

si"nificance# )$e rankin" criteria s$ould include

1# )ar"et due dates

7# Impact on t$e total %usiness

9# Impact on t$e tec$nolo"' arc$itecture

:# Impact on ot$er applications

;# Project si(e, cost and duration

B# Project risk


69/76

8valuate 0esources An updated !kills Inventor' s$ould %e maintained for all

corporate usiness nit and Information )ec$nolo"' /epartment2 resources

t$at are availa%le for project assi"nment#

)etermine 0esource eeds ' evaluatin" t$e !kills Inventor' and t$e

Candidate Project repositor', t$is process will identif' anticipated re.uirementsfor .uantities and capa%ilities of future resources# )$is information will

provide

1# )$e identification of critical trainin" needs

7# A %asis for emplo'ment opportunities

9# Criteria for contract personal

)$is process s$ould %e reviewed on a re"ular %asis %' Resource Mana"ers

wit$in t$e or"ani(ation and can %e used for staff career counselin"#


70/76

-pprove Project

1# 'elect Project ased on t$e information provided %' t$e rankin" process, t$e Core

Process Owners of t$e %usiness will aut$ori(e a specific project for initiation# )$is project

s$ould now %e removed as a Candidate Project#

7# -ssign 0esources 0ven t$ou"$ a project $as %een selected, it does not %ecome an

active project until resources are approved and deplo'ed a"ainst it# It is critical to

remem%er t$at w$en resources are assi"ned from t$e !kills Inventor', t$is deplo'ment

$as a proportionate impact on t$e resource&s availa%ilit'# )$e or"ani(ation must %e ver'

careful to not over6commit limited resources in an attempt to look more productive#


71/76

=uestions

1# 3$ic$ of t$e followin" statement is true4

a# A project is an ad $oc activit' of t$e firm#

%# A project s$ould %e viewed as t$e main activit' of t$e

firm#

c# A project s$ould %e viewed as somet$in" t$at contri%utes

to t$e a%ilit' of t$e or"ani(ation

d# A project is a t$in" w$ic$ contri%utes to t$e a%ilit' of t$e

project mana"er#e# 8one of t$ese


72/76

7# 3$ic$ of t$e followin" is a correct se.uence of life c'cle

of a project4

a# Plannin", !election, !c$edulin", )ermination

%# !election, Implementation, !c$edulin", Monitorin",)ermination

c# Plannin", Implementation, Control, 0valuation

d# !election, !c$edulin", Implementation, 0valuation,

Control

e# Plannin", Implementation, !c$edulin", )ermination


73/76

9# 3$ic$ of t$e followin" factors call for t$e

project mana"ement4

a# Interdependencies amon" t$e activitiesundertaken %' various departments#

%# !$arin" of resources#

c# !i(e of task involved#d# ot$ a2 and %2 a%ove#

e# All of a2, %2 and c2 a%ove


74/76

:# /urin" w$ic$ sta"e of t$e life c'cle of a

project is t$e level of activit' $i"$est4

a# Conception and selection#%# Plannin" and sc$edulin"#

c# Implementation, monitorin" and control#

d# 0valuation#

e# )ermination#


75/76

;# 3$ic$ of t$e followin" is not considered w$ile

anal'(in" t$e %usiness environment as per

P0!) Model4

a# Forei"n trade re"ulations

%# /isposa%le income levels

c# @evels of education

d# 5uman resource mana"ement of t$e firm

e# Rates of o%solescence#


76/76

ppac session 1.ppt

Documents