project management--tapan & mohit tripathi

8/8/2019 Project Management--Tapan & Mohit Tripathi

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Presentation On Project Management

Presentation to::

Prof. N.Venkatesan(PGDIC, BTech)

Presentation by::

Mohit Tripathi

Tapan



Project Management

A project may be defined as a series of related jobs usually directed towards some major output and requiring a significant period of

time to perform. Project Management are the management

activities of planning, directing, and

controlling resources (people, equipment,material) to meet the technical, cost, and timeconstraints of a project



Step 1:: Risk and Return analysis

R isk Analysis::

Demand R isk

Economic R isk

R eturn Analysis::

The internal rate of return(IRR ) is a rate of return usedto measure and compare the

profitability of investments.

The IRR of an investment isthe interest rate at which thenet present value of costs(negative cash flows) of theinvestment equal the net

present value of the benefits(positive cash flows) of theinvestment.



Step 3:: Scope and Schedule of the Project

Scope of a Project::

S pecifications of each

work package.

Name of the person or

organization unit

responsible.

Schedule of a Project::

Estimated time required

to complete each work

package.

Interrelationships

among work packagesknown as networks.



A work breakdown structure defines the hierarchy

of project tasks, subtasks, and work packages.

Program

Project 1 Project 2

Task 1.1

Subtask 1.1.1

Work Package 1.1.1.1

Level

1

2

3

4

Task 1.2

Subtask 1.1.2

Work Package 1.1.1.2



Step 2:: Bankable Project Report and Financial Closure

Based on risk-return

analysis, demand

analysis, a report is

made known asBankable Project R eport

Viability check by

banks.

Loan Offering.

Purpose of consortium

of Banks.



Estimating Costs

K nown Unknowns

Costs that are known to

be going to occurs such

as digging the

foundation for a house.

The nature of task isknown.

Unknown Unknowns

Costs are unknown that

they are going to occur

e.g. work stoppages,

floods, delay in

receiving materials,accidents etc.

Contingency allowance



Step 4:: Management of a project

Analyze the critical path.

Project must be completed in time.

Estimate the cost of project in an abstract way.

Possible causes of variation in cost.

Periodic review of project.

Study of gap between actual cost and budgeted

cost. External quality control with internal quality

control.



Problem



Prerequisites for Critical Path

Methodology

A project must have:

well-defined jobs or tasks whose completionmarks the end of the project;

independent jobs or tasks;

and tasks that follow a given sequence.



Steps in the CPM with Single TimeEstimate

1. Activity Identification

2. Activity Sequencing and Network

Construction

3. Determine the critical path

± From the critical path all of the project andactivity timing information can be obtained



First draw the network

A(2) B(1) C(1)

(2)

E(5)

F(5)G(1)

A None 2

B A 1

C B 1

C 2

E C 5

F ,E 5

G F 1

Act. Imed. Pred. Time



Determine early starts and early finish times

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4

EF=9

ES=4

EF=6

A(2) B(1) C(1)

D(2)

E(5)

F(5) G(1)

Hint: Start with ES=0

and go forward in the

network from A to G.



Determine late startsand late finish times

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4

EF=9

ES=4EF=6

A(2) B(1) C(1)

D(2)

E(5)

F(5) G(1)

LS=14

LF=15

LS=9

LF=14

LS=4

LF=9

LS=7LF=9

LS=3

LF=4

LS=2

LF=3

LS=0

LF=2

Hint: Start with LF=15 or the

total time of the project and go

backward in the network from

G to A.



Critical Path & Slack

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4

EF=9

ES=4

EF=6

A(2) B(1) C(1)

(2)

E(5)

F(5) G(1)

LS=14

LF=15

LS=9

LF=14

LS=4

LF=9

LS=7LF=9

LS=3

LF=4

LS=2

LF=3

LS=0

LF=2

uration=15 weeks

Slack=(7-4)=(9-6)= 3 Wks



Crashing

It is the technique of minimizing the total

duration of a network of activities, mainly by

reducing the duration of the critical path

activities to the least possible magnitude.

Since the critical path is also the longest, the

duration of this path has to be reduced.

However any reduction in activity durationcomes at the cost of increased cost due to extra

resources required(like labor, electricity etc).



Economic Value Management

Measure of Economic value of the project as it isexecuted.

Economic Value Management (EVM) is a management

approach towards managing the shareholder µvalue¶ inan organization.

Economic Value Management, is a way of managing a business. It is a rigorous and disciplined approach, that

can provide immediate gains, better long termstrategies, ensure focused execution, and create thealignment within organizations that is critical for success.



Benefits of EVM Provides immediate gains: The Economic Value

Management methodologies, can identify significantopportunities and provide the foundation for better long-term

strategies. Provide early warning signals.

Better long-term strategy: The discipline of Economic ValueManagement helps companies in the short run, its demanding,focused approach results in better long-term strategies as well.

Better Execution: Economic Value Management creates anexecution focus and discipline often lacking in firms that

supplant accountability for real results with budgeted measuresof performance that often ignore the crucial requirements of return on investment.

Creates Alignment: Economic Value Management creates

organizational alignment. It gets everyone on the same page.



THE THR EE QUESTIONS

Q.1 Is the project going to be finished by the

scheduled date ?

Q.2 Is the completed work going to meet thestated specifications ?

Q.3 Is the work going to be done with the

estimated cost ?



The Trade Off

It is sometimes desirable to make trade offs

among time, specifications and cost using the

financial model and other available

information.



Types of R eports

Trouble R eports

Progress R eports

Financial R eports



TR OUBLED R EPOR TS

They report both on trouble that has alreadyhappened and also anticipated future trouble

There is a need to reach the appropriate manager

so that corrective action can be taken Any medium can be chosen

Precision is sacrificed in the interest of speed

If the matter reported is significant it isdocumented to keep as a record



PR OGR ESS R EPOR TS

These compare actual schedule and costs with

planned schedule and costs

Overhead activities not directly involved withthe project can also be calculated similarly

Variances associated with price, schedule

delays and similar factors can be identified

and measured quantitatively



FINANCIAL R EPOR TS

These are actual reports of project costs that must

be prepared as a basis for progress payments

These reports are less important for management

control purposes than the cost information

contained in progress reports

They are carefully checked for their accuracy

Approximate information that is available quicklyis more important to project management



Gantt Chart

A Gantt chart is a type of bar chart that

illustrates a project schedule. Gantt charts

illustrate the start and finish dates of the

terminal elements and summary elements of a

project. Terminal elements and summary

elements comprise the work breakdown

structure of the project. Some Gantt charts alsoshow the dependency (i.e. precedence

network) relationships between activities.



Other related aspects

Quantity of reports

Percent complete

Summarizing Progress Punch List



QUANTITY OF R EPOR TS

Sometimes more than optimum numbers of

reports are prepared

This incurs extra costs and spends extra time Sometimes important information is

overlooked

Though this is not a serious problem becausemanagers normally know which reports or

section of reports are important



Project Execution

Schedule and Budget

The three questions???? Trade Off ± Is it required ????



PER CENT COMPLETE

Percentage of completion of each work

package must be estimated as a basis for

comparing actual time and actual costs with

budgeted costs

In case of R&D and Consulting projects the

percentage of completion is subjective



SUMMAR IZING PR OGR ESS

Progress payments often are made when

specified milestones are reached

Individual work packages are aggregated In labor intensive project ratio of actual

person-hours on project to total person-hours

for the project



PUNCH LIST

List of items yet to be accomplished

List of corrections yet to be corrected

Punch List is negotiated with the projectmanager



INFOR MAL SOUR CES OF

INFOR MATION

Tangible reports are less useful than

information that the project manager gathers

from people

Nevertheless, formal reports are necessary



R EVISIONS

A trade off between scope, schedule and cost

Is it better to track future progress against the

revised plan or to track the original plan ? R evised plan may be a rubber baseline

Comparison with the original plan may also be

futile as it is obsolete Solution lies in comparing actual cost with

both the original plan and the revised plan



PR OJECT AUDITING

It is done either during the progression of

project or conclusion of project

The earlier case is preferable Operational Auditing ± concerned with

managing standards

Grave danger of second guessing persists



PR OJECT EVALUATION

It has two aspects ±

1) Performance in execution of the project

2) R esults obtained from the project

The purpose of the former is to assist in decisionsregarding project managers

The purpose of latter is to discover better ways of

conducting future projects Evaluation of project is subjective and also entails

external factors



COST OVERR UNS

When actual costs exceed budgeted costs

At best the budget represents what the costs

should have been Although reasonable people can differ and

only one set of conclusions is incorporated in

the budget



HINDSIGHT

There can be difference between the informationwhich is represented in the report and theinformation which was available with the

manager at the time of report generation The sponsor may overlook budget overruns

Evaluation may lead to changes in rules or procedures

Evaluation may indicate reviews conductedduring the project were inadequate or timelyaction was not take based on these reviews



EVALUATION OF R ESULTS

Comparison of results with the results that

were anticipated when the project was

approved

Assumptions are made and these assumptions

are documented

Project can not be evaluated until enough time

has elapsed



CR ITER IA FOR SELECTING

Project should be important enough

The results should be quantifiable

Effects of unanticipated variables should beknown

R esults of the evaluation should have a good

chance of leading to action



Case



Metro Project

Delhi Metro R ail Corporation (DMR C) wasestablished by the Government of India and theGovernment of Delhi in March 1995.

Project is divided into three phases. Phase I has been completed and cost INR 105.7bn

($2.3m).

In February 2009, the Delhi Metro project becamethe first railway project in the world to beregistered for carbon credits by the United

Nations.



Cont«

DMR C saved 112,500MW of power by usingregenerative brakes in the trains, and reduced

carbon emissions by 900,004tn between 2004 and

2007. It is estimated that more than 100,000tn of

carbon dioxide will be offset each year oncePhase II becomes completely operational.

Delhi will have 244 km of Metro rail network.

After the completion of phase 1, DMR TS willcarry 21.8 lakh passengers perday, resulting in

2500 less buses on road.



Cont«

Average speed of road buses increased from

10.5 kmph to 14 kmph, saving 20 lakh man

hour per day and saving of fuel cost worth

500 crores per year.

Prime Minister declared Mr. Shreedharan to be

role models for future generation.

project management--tapan & mohit tripathi

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