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    Q.1: Comment on the following:a. Importance of DMAIS in project management cycle

    Ans: Importance of DMAIS in a Project Management Cycle:

    Project managers consider the five steps DMAIS as generic for anysystem of a journey towards excellence. Figure 9.2 lists the five stepshidden in the acronym DMAIS. DMAIS is highly relevant in Project

    Management for the simple reason that each step gives out in detailthe actions to be taken to ensure readiness for the next step.Verification of DMAIS implementation is possible with checklists whichcan be prepared and used by employees at all levels. The teammembers can be given training to follow them.

    Five steps of DMAIS:

    1. Define This step requires that what is sought to be achieved isidentified in all its detail. The following are the inputs which will definewhat we are going to make:

    a. Benchmark: It refers to the standards achieved by the best inthe industry. A companys product is set to meet them.

    b. Customer Requirement: It refers to the documentation ofcustomer requirements. Proper understanding of customerrequirement is of utmost importance. You should deliver what acustomer requires.

    c. Process Flow Map: It shows the activities that take place toresult in the product at the end of them.

    d. Quality Function Deployment This tool compares the qualitycharacteristics in a companys product with those in theircompetitors and their relative importance to the customer. To

    achieve them, you find the technical specifications you have toincorporate in our product.

    e. Project Management Plan This includes the materials, men,activities, schedules, milestones and so on.

    2. Measure In this step, we measure the outcomes of the activities.This is done using the following methods.

    a. Data collection You need to collect the data about the workthat is done and compare as to how it corresponds with what isrequired.

    b. Defect Metrics You need to capture the deviations that are inthe effective potion of the work in defect metrics. Then you needto decide whether they are acceptable or need rectification.

    c. Sampling If the volumes are high, you need to select a few ofthem and inspect them to see whether the entire batch isacceptable.

    3. Analyze In this step, you have toanalyze the data received from thepreceding step by using the following tools:

    a. Cause and Effect Diagrams also called Fishbone Diagramsb. Failure Mode and Effect Analysis FMEA

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    c. Root Cause Analysisd. Reliability Analysis

    4. Improve In this step, you have to implement the measures toremove the defects found earlier for improving the process. This canbe done using the following measures:

    a. Design of Experiments The effect of changing values of parameters is

    done in a controlled way. This allows you to experimentally determine theeffect of variations determined. You can use the results for optimizing theprocess.

    b. Robust Design The equipment design is made robust to reduce thevariations.

    c. Tolerances The permitted deviations are made closer, so that thecapability of process is increased.

    5. Standardize When improvements have become consistent, themethods adopted are standardized.

    Q.1 b. Knowledge areas of project management

    Ans: Knowledge areas of project management

    There are nine knowledge areas consisting of integration, scope, time,cost, quality, risk, human resources, communications, andprocurement. These areas group 44 Project Management Processes. Allof the knowledge areas are interrelated and each should be taken careof during project planning

    Following are 9 project management knowledge areas:

    1. Project Integration Management: Deals with processes that

    integrate different aspects of project management.

    2. Project Scope Management: Deals with processes that areresponsible for controlling project scope.

    3. Project Time Management: Deals with processes concerning thetime constraints of the project.

    4. Project Cost Management: Deals with processes concerning the costconstrains of the project.

    5. Project Quality Management: Deals with the processes that assure

    that the project meets its quality obligations.

    6. Project Human Resources Management: Deals with the processesrelated to obtaining and managing the project team.

    7. Project Communication Management: Deals with the processesconcerning communication mechanisms of a project.

    8. Project Risk Management: Deals with the processes concerned withproject risk management.

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    9. Project Procurement Management: Deals with processes related toobtaining products and services needed to complete a project.

    In total, there are 44 processes involved in Project Management. Theseare mapped to one of nine Project Management Knowledge Areas.

    Q.2: Write few words on:

    a.Project Characteristics

    Ans: The word PROJECT comes from the Latin word PROJECTUM from theLatin verb PROICERE; which means to throw something forwardswhich in turn comes from PRO-, which denotes something thatprecedes the action of the next part of the word in time and ICERE, tothrow. The word PROJECT thus actually originally meant somethingthat comes before anything else happens.

    A project in business and science is a temporary endeavor undertakento create a unique product, service, or result. Basically, it is planned toachieve a particular aim. The aim of a project is to attain its objective

    and then terminate. Some of the reasons to start a project can be:

    A customer request or market demand

    An organizational need

    A customer request

    A technological advance

    A legal requirement

    Projects and operations differ primarily in that operations are ongoingand repetitive, while projects are temporary and unique. Generally, aproject is a means of organizing some activities that cannot be

    addressed within the normal operational limits.

    Project characteristics:

    It is temporary - temporary means that every project has adefinite beginning and a definite end. Project always has adefinitive time frame.

    A project creates unique deliverables, which are products,services, or results.

    A project creates a capability to perform a service. Project is always developed in steps and continuing by

    increments - Progressive Elaboration.

    b. WBS

    Ans: A Work Breakdown Structure (WBS) in project management andsystems engineering, is a tool used to define and group a project'sdiscrete work elements in a way that helps organize and define thetotal work scope of the project.A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides the necessary framework fordetailed cost estimating and control along with providing guidance for

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    schedule development and control. Additionally the WBS is a dynamictool and can be revised and updated as needed by the projectmanager.The Work Breakdown Structure is a tree structure, which shows asubdivision of effort required to achieve an objective; for example aprogram, project, and contract. In a projector contract, the WBS isdeveloped by starting with the end objective and successivelysubdividing it into manageable components in terms of size, duration,

    and responsibility (e.g., systems, subsystems, components, tasks,subtasks, and work packages) which include all steps necessary toachieve the objective.The Work Breakdown Structure provides a common framework for thenatural development of the overall planning and control of a contractand is the basis for dividing work into definable increments from whichthe statement of work can be developed and technical, schedule, cost,and labor hour reporting can be established.A work breakdown structure permits summing of subordinate costs for

    tasks, materials, etc., into their successively higher level parenttasks, materials, etc. For each element of the work breakdownstructure, a description of the task to be performed is generated. Thistechnique (sometimes called a System Breakdown Structure) is used todefine and organize the total scope of a project.

    The WBS is organized around the primary products of the project (orplanned outcomes) instead of the work needed to produce theproducts (planned actions). Since the planned outcomes are thedesired ends of the project, they form a relatively stable setof categories in which the costs of the planned actions needed toachieve them can be collected. A well-designed WBS makes it easy toassign each project activity to one and only one terminal element ofthe WBS. In addition to its function in cost accounting, the WBS alsohelps map requirements from one level of system specification toanother, for example a requirements cross reference matrix mappingfunctional requirements to high level or low level design documents.

    c. PMIS

    Ans: Project Management Information System (PMIS) are system tools andtechniques used in project management to deliver information. Projectmanagers use the techniques and tools to collect, combine anddistribute information through electronic and manual means. ProjectManagement Information System (PMIS) is used by upper andlower management to communicate with each other.

    Project Management Information System (PMIS) help plan, execute andclose project management goals.During the planning process, project managers use PMIS for budgetframework such as estimating costs. The Project ManagementInformation System is also used to create a specific schedule and

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    define the scope baseline. At the execution of the project managementgoals, the project management team collects information into onedatabase. The PMIS is used to compare the baseline with the actualaccomplishment of each activity, manage materials, collect financialdata, and keep a record for reporting purposes. During the close of theproject, the Project Management Information System is used to reviewthe goals to check if the tasks were accomplished. Then, it is used tocreate a final report of the project close. To conclude, the project

    management information system (PMIS) is used to plan schedules,budget and execute work to be accomplished in project management.

    d. Project Management strategies-Internal & external

    Ans: Effective Internal Project Management Strategies

    Project fail for many internal reasons, some of them Technical, some ofthem Managerial. However, even the technical failure can often betraced back to a failure on the part of the projects executivemanagement to recognize and deal with these inherent managerial

    risks. On the other hand, probably the majority of apparentlysuccessful projects do not reflect their optimum potential either.

    As a matter of project experience, a number of prerequisites havebeen identified with the successful project. While these prerequisitesdo not necessarily guarantee success of future projects, theseabsences may lead to sub-optimal success, if not outright failure. Theprojects executive has a vital role to play in achieving project successand should therefore insist on the following:

    Executive Support: The Executive must clearly demonstrate support forthe project management concept by achieve sponsorship and control.

    External Authority: The project manager must be seen as theauthoritative agent in dealing with all parties and be the responsibleand single formal contract with then.

    Internal Authority: The project manager must have the necessarymanagerial authority with in his organization to ensure response to hisrequirements.

    Commitment Authority: The project manager must have theresponsibility & authority to control the commitment of resource,including funds, with in prescribed limits. The results of these decisionsmust be both accountable and visible.

    Project Manager involved in all major decisions: No major technical,cost, schedule or performance decisions should be made without theproject manager participation.

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    Competence: The project manager and his team members must becompetent either functional personal assignment to the project mustalso be competent.

    Project Team: The Project Manager should have a say in the assemblyof his project team, which will help him to obtain their personalcommitment, support and required quality of services.

    Management Information System: Effective Project ManagementInformation and control system must be in place.

    Effective External Project Management Strategies

    Prerequisites for avoiding internal project failure, or at least sub-optimal result, were discussed earlier. However, it has also been notedearlier that external condition & events also represent uncertainty andrisk to the successful accomplishment of the project. These conditionshave been linked to the external stakeholders of the project. Therefore,it is essential to develop a sound stakeholder environment.

    Developing a Sound Stakeholder Environment

    Just as the means of influencing the project's cultural environment, asdescribed above, was one of developing the right attitude, so it is withdeveloping a sound stakeholder environment. Perhaps this attitude isbest reflected by adopting a mindset that reverses the traditionalorganization chart hierarchy. In other words, place the projectstakeholders at the top of the chart, followed by the front-line projectteam members, and on down to the project manager at the bottom.Perhaps the project team will then be better visualized as a trulyservice organization, designed to serve the best interests of asuccessful project outcome, both perceived and in reality.

    Some suggested steps in this process include:

    Learn how to understand the role of the various stakeholders,and how this information may be used as an opportunity toimprove both the perception and reception of the project.

    Identify the real nature of each stakeholder group's business andtheir consequent interest in the project.

    Understand their behavior and motivation. Assess how they may react to various approaches.

    Pinpoint the characteristics of the stakeholders' environment anddevelop appropriate responses to facilitate a good relationship.

    Learn project management's role in responding to thestakeholders drive behind the project.

    Determine the key areas which will have the most impact on thesuccessful reception of the project.

    Remember always that even a minor stakeholder group maydiscover the "fatal flaw" in the project and which could bring theproject to a standstill!

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    Q.3 What are the various SCMo soft wares available in project management? Explaineach in brief?

    Ans: The process documentation system is intranet based to provideimmediate access to current, up-to-date process documentation. Thesystem allows users to navigate through graphical structures torelevant documentation and processes which were created with the

    ARIS-Toolset.The content of the process documentation system includes the areasupply chain management from the Odette Supply Chain ManagementGroup. The system includes graphical process documentation, in theform of process chains, as well as the entire range of documentationrelated to the processes. The Process Documentation System gives,according to its objectives, an overview and a detailed view of therelevant processes for SCMo.The entry point in the documentations system is the model ProcessOverview SCMo. This model is the starting point for the navigation toother models. The navigation between models is done via the

    assignment symbol. The assignment symbol of a function/ processInterface indicates that there is a link to another model. The linked /assigned models can be opened by double-clicking on the assignmentsymbol.

    This can be classified into two different navigations as shown in figure:

    Supply chain Modeling

    Vertical Navigator Horizontal Navigator

    a) Vertical Navigation: The vertical navigation is the navigationon different levels. Starting on the work package level and goingdownwards into more detail, the first models of processes arefound on the sub-process level.In the model Process Overview SCMo those processes areassigned to the functions on Level 2. In the models there can beassignments for some functions, e.g. for a Function AllocationDiagram or a sub-process that describes that function. These twoexamples are currently the models on the lowest level.

    b) Horizontal Navigation: The horizontal navigation is on thesame level. Some processes have a link to other processes,which can be at the start or end or even in the process itself,when another process is imbedded in the process. Those linksare represented by Process Interfaces.Microsoft has a team project management solution that enablesproject managers and their teams to collaborate on projects. TheMicrosoft Project 2002 products in these solutions are:1. Microsoft Project Standard 20022. Microsoft Project Server 2002

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    3. Microsoft Project Server Client Access License (CAL) 2002.

    Support Software

    Heaving learnt the basic of application software; you would have a fairidea of how and to what extent project management process could beautomated. However, the challenge of Making thing work remainunchanged. While software vendor are confident of making it work,

    two yawning gaps still remains:

    1. Business processes which are not covered in such software.2. Integration of multi-vendor supported software applications.

    The enterprises are normally in a dilemma- whether to look at thesame vendors to support such customization or not. This normallyworks out too expensive for their comfort or with in their tight budgets.

    Several software vendors have seized the opportunity with offeringsthat substantially fill these gaps effectively at a fraction of the costs

    quoted by the major vendors. The order carrot which these vendorsoffer is a unilateral transfer of the facility to customize them which isseen as a huge advantage. The various support software that may beused for managing project are:-

    A) The Arrow Project:It is a consortium of institutional reposting solution, combining opensource and proprietary software. Arrow is preferred supportsoftware because it:-

    Provides a platform for promoting research output in theARROW context.

    Safeguards digital information Gathers an institutions research output into one place

    Provides consistent ways of finding similar objects

    Allows information to be preserved over the long term

    Allows information from many repositories to be gathered andsearched in one step

    Enables resources to be shared, while respecting accessconstraints

    Enables effective communication and collaboration betweenresearchers

    The vision of project ARROW: The ARROW project will identify and testsoftware or solutions to support best practice institutional digitalrepositories comprising e-prints, digital theses and electronicpublishing. ARROW project wanted to be a solution for storing anydigital output. Their initial focus was on print equivalents such as thesisand journal articles among others. It provided solution that could offeron-going technical support and development past the end of thefunding period of the project.

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    B) Fedora:ARROW wanted a robust, well architected underlying platform and aflexible object-oriented data model to be able to have persistentidentifiers down to the level of individual data streams. Itaccommodates the content model to be able to be versionindependent.

    Since the beginning of the project ARROW has worked actively and

    closely with Fedora and the Fedora Community. The ARROW projectsTechnical Architect is a member of Fedora Advisory Board and sits onFedora Development Group.

    This association is reinforced by VTLS Inc. VTLS President is a memberof Fedora Advisory Board and VITAL Lead Developer sits on FedoraDevelopment Group

    C) VITAL:VITAL refers to ARROW specified software created and fully supportedby VTLS Inc. built on top of Fedora. It currently provides:

    1. VITAL Manager2. VITAL Portal3. VITAL Access Portal4. VALET - Web Self-Submission Tool5. Batch Loader Tool6. Handles Server (CNRI)7. Google Indexing and Exposure8. SRU / SRW Support9. VITAL architecture overview

    VITAL is part of creative development of ARROW institutionalrepositories. VITAL has the following features:

    a) Inclusion of multimedia and creative works produced in Australianuniversities.

    b) Limited exposure nationally or internationallyc) Addition of annotation capability

    d) Inclusion of datasets and other research output not easilyprovided in any other publishing channel.

    e) Being developed in conjunction with the DART (ARCHER) Project.f) Exploration of the research-teaching nexus tools that will allow

    value added services for repositories.g) Integration with or development of new tools that will allow value

    added services for repositories (for instance the creation of e-portfolios or CVs of research output of individual academics).

    D) PILIN- Persistent Identifiers and Linking Infrastructure:There has been a growing realization that sustainable identifierinfrastructure is required to deal with the vast amount of digital assetsbeing produced and stored with in universities.

    PILIN is a particular challenge for e-research communities wheremassive amount of data are being generated without any means of

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    managing this data over any length of time. The board objectives areto:-

    a. Support adoption and use of persistent identifiers and shared persistentidentifier management services by the project stakeholders.

    b. Plan for suitable, shared identifier management infrastructure that enablepersistence of identifiers and associated services over archival length oftime.

    c. Deploy a worldwide site consolidation solution for exchange server 2003 at

    Microsoft.d. Add Picture.e. Use Microsoft Exchange Server 2003 to consolidate more than 70 messaging

    sites worldwide into seven physical locations.

    In this context, let us look at Microsoft Model Enterprises (MME).

    Microsoft Model Enterprises (MME)


    Maximizing the number of management tasks performedcentrally

    Decreasing the number of sites through the consolidation of thesmaller locations into a smaller number of RDCs

    Reducing the total number of infrastructure and applicationservers

    Standardizing infrastructure and devices worldwide


    Consolidation of 75 tail sites into 6 regional data centers (RDCs)using local storage area networks (SANs)

    Key Focus Areas Proactive, detailed monitoring and analysis of WAN bandwidth

    utilization and latency

    Effective but flexible approach to project planning, scheduling,and cross-group coordination

    Coordination and control of deployment of successive pre-release versions of Office System 2003 (including Outlook 2003)

    Business Benefits:

    Four percent overall direct cost savings

    Key enabler of the Microsoft ME initiative which through fiscalyear 2003 has produced millions in overall consolidation savingsincluding USEIT Benefits

    Improved server utilization

    Improved server management

    Strengthened security

    Increased reliability

    Q4. List the various steps for Risk management. Also explain GDM and its key features?

    Ans Risk management may be classified and categorized as:

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    1. Risk assessment and identification: The assessment andidentification focuses on numerating possible risks to the project.Methods that can aid risk identification include checklists of possiblerisks, surveys, meetings and brainstorming and reviews ofplans, process and work products. The project manager can also usethe process database to get information about risks and riskmanagement on similar projects.

    2. Risk prioritization: focus on the highest risk. Prioritization requiresanalyzing the possible effects of the risk event in case it actuallyoccurs. This approach requires a quantitative assessment of the riskprobability and the risk consequences. For each risk rate theprobability of its happening as low, medium or high. If necessary,assign probability values in the ranges given for each rating. Foreach risk, assess its impact on the project as low, medium, high orvery high. Rank the risk based on the probability. Select the top fewrisk items for mitigation and tracking

    3. Risk Control: The main task is to identify the actions needed tominimize the risk consequences, generally called risk mitigationsteps. Refer to a list of commonly use drisk mitigation steps forvarious risks from the previous risk logs maintained by the PM andselect a suitable risk mitigation step. The risk mitigation step mustbe properly executed by incorporating them into the projectschedule. In addition to monitoring the progress of the planned riskmitigation steps periodically revisit project. The results of thisreview are reported in each milestone analysis report. To preparethis report, make fresh risk analysis to determine whether the

    priorities have

    Risk Analysis

    The first step in risk analysis is to make each risk item more specific.Risks such as, Lack of Management buy in, and people mightleave, are a little ambiguous. In these cases the group might decideto split the risk into smaller specific risks, such as, manager Janedecides that the project is not beneficial, Database expert mightleave, and Webmaster might get pulled off the project. The nextstep is to set priorities and determine where to focus risk mitigation

    efforts. Some of the identified risks are unlikely to occur, and othersmight not be serious enough to worry about. During the analysis,discuss with the team members, each risk item to understand howdevastating it would be if it did occur, and how likely it is to occur.For example, if you had a risk of a key person leaving, you mightdecide that it would have a large impact on the project, but that it isnot very likely. In the process below, we have the group agree on howlikely it thinks each risk item is to occur, using a simple scale from 1 to10 (where 1is very unlikely and 10 is very likely). The group then rateshow serious the impact would be if the risk did occur, using a simplescale from 1 to 10 (where 1is little impact and 10is very large). To use

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    this numbering scheme, first pick out the items that rate 1 and 10,respectively. Then rate the other items relative to these boundaries. Todetermine the priority of each risk item, calculate the product of thetwo values, likelihood and impact. This priority scheme helps push thebig risks to the top of the list, and the small risks to the bottom. It is ausual practice to analyze risk either by sensitivity analysis or byprobabilistic analysis. In sensitivity analysis a study is done to analysesthe changes in the variable values because of change in one or more

    of decision criteria. In the probability analysis, the frequency of aparticular event occurring is determined, based on which it averageweighted average value is calculated.

    Each outcome of an event resulting in a risk situation in a risk analysisprocess is expressed as a probability. Risk analysis can be performedby calculating the expected value of each alternative and selecting thebest alternative.

    Ex: Now that the group has assigned a priority to each risk, it is readyto select the items to manage. Some projects select a subset to take

    action upon, while others choose to work on all of Project the items. Toget started, you might select the top 3 risks, or the top 20%, based onthe priority calculation.


    The Global Delivery Model (GDM) is adopted by an Industry or Businesssuch that it has a capability to plan design, deliver and serve to anyCustomers or Clients Worldwide with Speed, Accuracy, Economy andReliability. The key Features of GDM are:



    Minimum Customization

    Maximum Micro structure

    Adoption of a Combination of the Greatest Common Multiple and theLeast Common Factor of a Large Mass of Microbial Components-

    a) Standardization - Ingenious Design and Development ofComponents and Features which are like to be accepted by 90%

    of Worldwide Customers. Global Standards of Design focusing onhighly standardized Methods and Processes of manufactureor Development. Adopt Plug and socket Concepts with minimumadaptable joints or Connections.

    b) Modularization - Product or Solution split up into smallestpossible individual Identifiable Entities, with limited IndividualFunctioning Capability but powerful and robust in Combinationwith other Modules.

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    c) Minimum Customization - Minimum Changes or Modifications tosuit Individual Customers.

    d) Maximum micro structuring - Splitting of the Product Modulesfurther into much smaller entity identifiable more throughcharacteristics rather than application Features. Approachthrough Standardization of these Microbial Entities even across

    Multiple Modules. Application of these Microbial Entities to restwithin multiple Projects or Products or even as add-ons suitbelated Customer Needs.

    Special Features of GDM:

    Cuts across Geographical and Time Zone Barriers

    Unimaginable Speeds of Response and Introduction.

    Common Pool of Microbial Components

    Largely Independent of Skill Sets required at Delivery Stages

    Highly automated Processes Quality Assurance as a Concurrent rather than a Control Process

    Near Shore Development, Manufacture and Delivery for betterLogistics

    Mapping of Economic Zones rather than Geographic Zones

    Continuous Floating virtual Inventory to save Time and Efforts.

    Q5. Answer the Two Parts:a. Importance of data management in project management-Comment.

    Ans: The Role of Effective Data Management in the Success of ProjectManagement

    Data management consists of conducting activities which facilitateacquiring data, processing it and distributing it. Acquisition of data isthe primary function.

    To be useful, data should have three important characteristics timeliness, sufficiency and relevancy. Management of acquisition liesin ensuring that these are satisfied before they are stored forprocessing and decisions taken on the analysis.

    There should be data about customers, suppliers, market conditions,new technology, opportunities, human resources, economic activities,government regulations, political upheavals, all of which affect the wayyou function. Most of the data go on changing because the aforesaidsources have uncertainty inherent in them. So updating data is a veryimportant aspect of their management. Storing what is relevant in aform that is available to concerned persons is also important. When aproject is underway dataflow from all members of the team will beflowing with the progress of activities. The data may be about someshortfalls for which the member is seeking instructions. A project

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    manager will have to analyses them, discover further data from othersources and see how he can use them and take decisions. Many timeshe will have to inform and seek sanction from top management.

    The management will have to study the impact on the overallorganizational goals and strategies and convey their decisions to themanager for implementation. For example, Bill of Materials is a veryimportant document in Project Management. It contains details about

    all materials that go into the project at various stages and has to becontinuously updated as all members of the project depend upon it forproviding materials for their apportioned areas of execution. Sinceinformation is shared by all members, there is an opportunity forutilizing some of them when others do not need them. To ascertainavailability at some future point of time, information about ordersplaced, backlogs, lead-times are important for all the members. Aproper MIS will take care of all these aspects. ERP packages too help inintegrating data from all sources and present them to individualmembers in the way they require. When all these are done efficientlythe project will have no hold ups an assure success

    b. What is the significance of reviewing ROI?

    Ans ROI - Return on Investment (ROI) is the calculated benefit that anorganization is projected to receive in return for investing money(resources) in a project. Within the context of the Review Process, theinvestment would be in an information system development orenhancement project. ROI information is used to assess the status ofthe business viability of the project at key checkpoints throughout theprojects lifecycle. ROI may include the benefits associated withimproved mission performance, reduced cost, increased quality, speed,or flexibility, and increased customer and employee satisfaction. ROIshould reflect such risk factors as the projects technical complexity,the agencys management capacity, the likelihood of cost overruns,and the consequences of under or nonperformance. Whereappropriate, ROI should reflect actual returns observed through pilotprojects and prototypes.

    ROI should be quantified in terms of dollars and should include acalculation of the breakeven point (BEP), which is the date when theinvestment begins to generate a positive return. ROI should berecalculated at every major checkpoint of a project to see if the BEP isstill on schedule, based on project spending and accomplishments todate. If the project is behind schedule or over budget, the BEP maymove out in time. if the project is ahead of schedule or under budgetthe BEP may occur earlier. In either case, the information is importantfor decision making based on the value of the investment throughoutthe project lifecycle. Any project that has developed a business case isexpected to refresh the ROI at each key project decision point (i.e.,stage exit) or at least yearly.

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    If the detailed data collection, calculation of benefits and costs, andcapitalization data from which Return on Investment (ROI) is derivedwas not required for a particular project, then it may not be realistic orpractical to require the retrofit calculation of ROI once the project isadded to the Review portfolio. In such a case, it is recommended thatmemorandum of record be developed as a substitute for ROI. The

    memorandum should provide a brief history of the program, adescription of the major benefits realized to date with as muchquantitative data as possible, and a summary of the process used toidentify and select system enhancements.

    Some of the major benefits experienced by sites that installed theinformation system that would be important to include in thememorandum are:

    a) Decommissioning of mainframe computersb) Reduction/redirection of labourc) Elimination of redundant systems

    d) Ability to more cost effectively upgrades all sites with onestandard upgrade package.

    In each case above, identify the specific site, systems, and labourinvolved in determining the cited benefit. Identify any costs or dollarsavings that are known or have been estimated. The memorandum willbe used as tool for responding to any future audit inquiries on projectROI.

    For the Project Management Review, it is recommended that theproject leader replace the text on the ROI document through

    1. a note stating which stage of its cycle the project is in2. A bulleted list of the most important points from the

    memorandum of record3. A copy of the memorandum of record for the Review repository.

    In subsequent Reviews of the information system, the ROI slide can beeliminated from the package. There is one notable exception to thisguidance. Any internal use software project in the maintenance phaseof its lifecycle that adds a new site or undertakes an enhancement ortechnology refresh that reaches the cost threshold established byStandard will need to satisfy capitalization requirements. It requires allagencies to capitalize items acquired or developed for internal use ifthe expected service life is two or more years and its cost meets orexceeds the agencys threshold for internal use software. The standardrequires capitalization of direct and indirect costs, including employeesalaries and benefits for both Federal and Contractor employees whomaterially participate in the Software project. Program managers areconsidered to be the source of cost information for internal usesoftware projects. If capitalization data is collected for the project inthe future, the project would be expected to calculate and track itsROI.

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    Q.6 XYZ Company implements CMMI level-03. To make further changes it decides on

    starting a new division in the organization. It decides to advance the existing project

    management. What are the steps to be followed by the organization to drive project

    management to a new horizon?

    Ans: Capability Maturity Model Integration

    (CMMI) is a process improvement approach that helps organizationsimproves their performance. CMMI can be used to guide processimprovement across a project, a division, or an entire organization.

    CMMI in software engineering and organizational development is aprocess improvement approach that provides organizations with theessential elements for effective process improvement. CMMI is atrademark owned by Software Engineering Institute of Carnegie MellonUniversity.

    According to the Software Engineering Institute (SEI, 2008), CMMIhelps "integrate traditionally separate organizational functions, setprocess improvement goals and priorities, provide guidance for qualityprocesses, and provide a point of reference for appraising currentprocesses."

    CMMI currently addresses three areas of interest:

    1. Product and service development - CMMI for Development (CMMI-

    DEV),2. Service establishment, management, and delivery - CMMI for

    Services (CMMI-SVC), and3. Product and service acquisition - CMMI for Acquisition (CMMI-ACQ).

    CMMI was developed by a group of experts from industry, government,and the Software Engineering Institute (SEI) at Carnegie MellonUniversity. CMMI models provide guidance for developing or improvingprocesses that meet the business goals of an organization. A CMMImodel may also be used as a framework for appraising the processmaturity of the organization.

    CMMI originated in software engineering but has been highlygeneralized over the years to embrace other areas of interest, such asthe development of hardware products, the delivery of all kinds ofservices, and the acquisition of products and services. The word"software" does not appear in definitions of CMMI. This generalization ofimprovement concepts makes CMMI extremely abstract. It is not asspecific to software engineering assist predecessor; the Software CMM.

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    CMMI was developed by the CMMI project, which aimed to improve theusability of maturity models by integrating many different models intoone framework. The project consisted of members of industry,government and the Carnegie Mellon Software Engineering Institute(SEI). The main sponsors included the Office of the Secretaryof Defense (OSD) and the National Defense Industrial Association.

    CMMI is the successor of the capability maturity model (CMM) or

    software CMM. The CMM was developed from 1987 until 1997. In 2002,CMMI Version 1.1 was released. Version 1.2 followed in August 2006.

    CMMI representationCMMI exists in two representations: continuous and staged. Thecontinuous representation is designed to allow the user to focus on thespecific processes that are considered important for the organization'simmediate business objectives, or those to which the organizationassigns a high degree of risk. The staged representation is designed toprovide a standard sequence of improvements, and can serve as abasis for comparing the maturity of different projects and

    organizations. The staged representation also provides for an easymigration from the SW-CMM to CMMI.

    CMMI model frameworkDepending on the CMMI constellation (acquisition, services, anddevelopment) used, the process areas it contains will vary. Key processareas are the areas that will be covered by the organization'sprocesses. The table below lists the process areas that are present inall CMMI constellations. This collection of eight process areas is calledthe CMMI Model Framework, or CMF.

    Capability Maturity Model Integration (CMMI) Model Framework (CMF)


    Name Area MaturityLevel

    REQM Required Management Engineering 2

    PMC Project Monitoring &Control

    Project Management 2

    PP Project Planning Project Management 2

    CM Configuration


    Support 2

    MA Measurement & Analysis Support 2PPQA Process & Product Quality Support 2

    OPD Organizational ProcessDefinition



    CAR Causal Analysis Support 5

    Maturity LevelsThere are five maturity levels. However, maturity level ratings areawarded for levels 2 through 5.

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    Maturity Level 2 Managed

    CM - Configuration Management

    MA - Measurement and Analysis

    PMC - Project Monitoring and Control

    PP - Project Planning

    PPQA - Process and Product Quality Assurance

    REQM - Requirements Management

    SAM - Supplier Agreement Management

    Maturity Level 3 Defined

    DAR - Decision Analysis and Resolution

    IPM - Integrated Project Management +IPPD

    OPD - Organizational Process Definition +IPPD

    OPF - Organizational Process Focus

    OT - Organizational Training

    PI - Product Integration

    RD - Requirements Development

    RSKM - Risk Management

    TS - Technical Solution VAL Validation VER Verification

    Maturity Level 4 -Quantitatively Managed

    QPM - Quantitative Project Management

    OPP - Organizational Process Performance

    Maturity Level 5 Optimizing

    CAR - Causal Analysis and Resolution

    OID - Organizational Innovation and DeploymentCMMI models

    CMMI best practices are published in documents called models, each ofwhich addresses a different area of interest. The current release ofCMMI, version 1.2, provides models for three areas of interest:

    development, acquisition, and services.

    CMMI for Development (CMMI-DEV), v1.2 was released in August2006. It addresses product and service development processes.

    CMMI for Acquisition (CMMI-ACQ), v1.2 was released inNovember 2007. It addresses supply chain management,acquisition, and outsourcing processes in government andindustry.

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    CMMI for Services (CMMI-SVC), v1.2 was released in February2009. It addresses guidance for delivering services within anorganization and to external customers.

    CMMI Product Suite (includes Development, Acquisition, andServices); v1.3 is expected to be released in 2010. CMMI Version1.3Plans for the Next Version

    Regardless of which model an organization chooses, CMMI best

    practices should be adapted by an organization according to itsbusiness objectives.


    An organization cannot be certified in CMMI; instead, an organization isappraised. Depending on the type of appraisal, the organization can beawarded a maturity level rating (1-5) or a capability levelachievement profile.

    Many organizations find value in measuring their progress by

    conducting an appraisal. Appraisals are typically conducted for one ormore of the following reasons:1. To determine how well the organizations processes compare to

    CMMI best practices, and to identify areas where improvement canbe made

    2. To inform external customers and suppliers of how well theorganizations processes compare to CMMI best practices

    3. To meet the contractual requirements of one or more customers

    Appraisals of organizations using a CMMI model must conform to therequirements defined in the Appraisal Requirements for CMMI (ARC)document. There are three classes of appraisals, A, B and C, whichfocus on identifying improvement opportunities and comparing theorganizations processes to CMMI best practices. Appraisal teams use aCMMI model and ARC-conformant appraisal method to guide theirevaluation of the organization and their reporting of conclusions. Theappraisal results can then be used (e.g., by a process group) to planimprovements for the organization.

    The Standard CMMI Appraisal Method for Process Improvement(SCAMPI) is an appraisal method that meets all of the ARCrequirements.

    A class an appraisal is more formal and is the only one that can resultin a level rating. Results of an appraisal may be published (if theappraised organization approves) on the CMMI Web site of the SEI:Published SCAMPI Appraisal Results. SCAMPI also supports the conductof ISO/IEC 15504, also known as SPICE (Software Process Improvementand Capability Determination), assessments etc.

    Achieving CMMI compliance

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    The traditional approach that organizations often adopt to achievecompliance with the CMMI involves the establishment of anEngineering Process Group (EPG) and Process Action Teams (PATs).Thisapproach requires that members of the EPG and PATs be trained in theCMMI that an informal (SCAMPI C) appraisal be performed, andthat process areas be prioritized for improvement. More modernapproaches that involve the deployment of commercially available,CMMI-compliant processes can significantly reduce the time to achieve

    compliance. SEI has maintained statistics on the "time to move up" fororganizations adopting the earlier Software CMM and primarily usingthe traditional approach. These statistics indicate that, since 1987, themedian times to move from Level 1 to Level 2 is 23 months, and fromLevel 2 to Level 3 is an additional 20 months. These statistics havenot been updated for the CMMI.

    The Software Engineering Institutes (SEI) Team Software Processmethodology and the Capability Maturity Modeling framework can beused to raise the maturity level.


    The SEI published that 60 organizations measured increases ofperformance in the categories of cost, schedule, productivity, andquality and customer satisfaction. The median increase in performancevaried between 14% (customer satisfaction) and 62% (productivity).However, the CMMI model mostly deals with whatprocesses should beimplemented, and not so much with how they can be implemented.These results do not guarantee that applying CMMI will increaseperformance in every organization. A small company with fewresources may be less likely to benefit from CMMI; this view issupported by the process maturity profile (page 10). Of the smallorganizations (

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    (Nawrocki et al., 2002). For example, the XP requirementsmanagement approach, which relies on oral communication, wasevaluated as not compliant with CMMI.

    CMMI can be appraised using two different approaches: staged andcontinuous. The staged approach yields appraisal results as one of fivematurity levels. The continuous approach yields one of six capabilitylevels.The difference in these approaches is felt only in the appraisal;

    the best practices are equivalent process improvement result.