A.1.

The project planning process involves 3 steps: o The identification process: o Steps are: Identifying initial requirements: A company identifies a need for a new or improved product for which a company will acknowledge the necessity of improving the existing product in accordance with the consumers demands. Validating them against the project objective. Identifying the criteria for assessing the success of both the final product and the process used to create it. Identifying the framework of the solution. Preparing a template of the framework of solution to illustrate the project feasibility. Preparing relevant charts to demonstrate the techniques of executing the project and its different stages. Preparing a proper project schema of achieving the defined business requirements for the project. Identifying training requirement. Making a list of the training programme necessary for the personnel working for project. Identifying the training needs of the individuals in various functions responsible. Preparing a training plan and a training calendar. Assessing the capabilities and skills of all those identified as part of the project organisation. o The review process o Steps are: Instituting a training plan to explain the project team members with the methodologies, technologies and business areas under study. Updating the project schedule to accommodate scheduled training activities Identifying the needs for review and reviewing the project scope Reviewing the project scope, the objective statement, and the non conformances in the project stages and identifying the need to use the project plan Preparing a proper project plan indicating all the requirements from start to finish of the project and also at every stage of the project Preparing a checklist of items to be monitored and controlled during the course of execution of the project o The analysis process o Steps are: Comparing the actual details with that in the plan with reference to project stages Measuring various components of the project and its stages to control the project from deviating and also monitor the performance Deciding how the task, the effort, and the defects are to be tracked; what tools to be used; and what reporting structure and frequency will be followed at various stages Identifying the preventive and corrective steps to be taken in case of any variance Performing root cause analysis for all problems encountered

A.2. o

a).Life cycle of a project: Project origination: In project origination, a project proposal is raised by a client to create a product or develop a service that can solve a problem or satisfy an evolving need in the market. The client then submits the proposal to get it investigated on its

viability, evaluation and selection. If the viability tests conducted reveal positive results the proposal gets selected, and management or the client fixes up the budget and time to execute the project. Project initiation: Soon after receiving a positive report on the proposed project from the project origination team, the client may then proceed to get it initiated. A project manager is assigned to make this project executable. The project manager will coordinate with the project sponsor to identify necessary resources and induct appropriate team members to ensure project begins on the tract within the key indicators Cost, Scope, Schedule, and Quality(CSSQ). Project planning: Project planning builds on the work done in project initiation, through the development of a project plan. The project plan defines CSSQ, and includes plans to involve and communicate with all the parties that are affected by the project, and also attempts to identify risks and threats associated with project. As projects leads to change both within and outside the organisation, managing resistance to change through transitions need to be focused on while drawing project plans. Project execution and control: This phase consumes the maximum time of the project life cycle and more than 80% of the resources get consumed in the process. The project management team ensures that all the laid out plans, schedules, procedures, and models were prepared and estimated. Unpredicted situations and overhead costs will be taken care of by the project team to minimise the impact on the project constraints. Project closeout: The project team assesses the outcome of the project with performance of the project team and the performing agency. This is accomplished primarily through soliciting and evaluating feedback. The primary purpose of this assessment is to document best practices and lessons learned for use on future projects. Key project metrics are also captured to enable the client organisation to compare and evaluate performance measurements across projects. b. A company is incorporated for the purpose of setting up a project. The promoters obviously have to start with some broad idea about the proposed industrial activity. They make mental picture that gives the demand supply pattern, probable cost of production, etc. It is quite likely that the originators get attracted by the favorable aspects of the project known to them. They may have overlooked the dark side of the picture, which can only be revealed by a detailed objective study. Too many projects have floundered at considerable loss to the investors and indeed to the national economy through waste of scarce resources, because the investment decisions were taken without objective and in-depth techno-economic feasibility studies. In modern times, business operations are complex, requiring carefully prepared plans. This feasibility study helps the promoter to make the investment decisions correctly and to obtain funds without many difficulties.

A3. CPM model was developed for projects which are comparatively risk-free. This approach starts with the development of the network and a focal point on the critical path. CPM approach is 'deterministic'. The main focus of CPM analysis is on variations in activity times as a consequence of changes in resource assignments. These variations are planned plus related to resource assignments as well as are not caused by random factors outside the control of

management. The major focus of CPM analysis is on time cost relationships and it seeks a project schedule that minimises total cost. o Assumptions: The usual assumptions underlying CPM analysis are: Direct costs are incurred on direct material and direct labour. Indirect costs consist of overhead items like indirect supplies, rent, insurance, managerial services, etc. Activities of the project can be expedited by crashing which involves employing more resources. Crashing reduces time but enhances direct costs because of overtime payments, extra payments, and wastage. The relationship between time and direct activity cost can be reasonably approximated by a downward sloping straight line. Indirect costs associated with the project increase linearly with project duration. o Procedure: CPM analysis seeks to examine the consequences of crashing on total cost (direct cost plus indirect cost). The bulk of CPM analysis is concerned with the relationship between total direct cost and project duration. The procedure used in this respect is generally as follows: o Step 1: Obtain the critical path in the normal network. Determine the project duration and direct cost. o Step 2: Examine the cost time slope of activities on the critical path obtained and crash the activity which has the least slope. o Step 3: Construct the new critical path after crashing as per step 2. Determine project duration and cost. o Step 4: Repeat steps 2 and 3 till activities on the critical path are crashed. o Network Cost System: To provide a vehicle for cost planning and control of projects, the network cost system was developed. This represents a very useful supplement to the traditional time-oriented network analysis. Projected costs or budgeted costs assists in analysing variances while balancing actual costs incurred on the project from time to time and keeps a proper check on the overall budget. Budgeted costs also happen to be an indicator of the extent the project can be crashed in case of emergency.

A4. Budgeted costs of project activities are prepared by estimating scheduled activities and the relative costs of the resources needed to complete each activity.

Cost estimating: inputs o Enterprise Environmental Factors: Marketplace conditions: Type of products, services, and results that are available in the marketplace, and associated terms and conditions of their availability. Commercial databases: Resource cost rate information and published seller price lists. Organisational process assets: Here existing formal and informal cost estimating-related policies, procedures, and guidelines are considered. Cost estimating policies: They are predefined boundaries within which the project operates. Cost estimating templates Historical information: Information that pertains to the projects product or service which is obtained from various sources within the organisation.

Project files: maintaining records of previous project performance that are detailed enough to aid in developing cost estimates. Project team knowledge: members of the project team may recall previous actual costs or cost estimates. Lessons learned: lessons learned could include cost estimates obtained from previous projects that are similar in scope and size. o Project scope statement o The project scope statement provides important information about project requirements that is considered during cost estimating. The project scope statement includes constraints, assumptions, and requirements. . o Work Breakdown Structure(WBS) o The projects WBS provides the relationship among all the components of the project and the project deliverables. o WBS dictionary o The WBS dictionary and related detailed statements of work provide an identification of the deliverables and a description of the work in each WBS. o Project management plan Schedule management plan: The type and quantity of resources and the amount of time those resources are applied to complete the work of the project. Staffing management plan: Project staffing attributes and personnel rates Risk register: information on risk responses when producing cost estimates. Cost estimating: tools and techniques Analogous estimating: It is the actual cost of previous, similar projects as the basis for estimating the cost of the current project. Determine resource cost rates: unit cost rates such as staff cost per hour and bulk material cost per cubic yard for each resource to estimate schedule activity costs. Gathering quotes is also one method. Bottom-up estimating: This technique involves estimating the cost of individual schedule activities with the lowest level of detail. Parametric estimating: This technique makes use of a statistical relationship between historical data and other variables (e.g., requisite labour hours) to compute a cost estimate. Project management software: This includes cost estimating software applications, computerized spreadsheets, and simulation and statistical tools. Vendor bid analysis: It is the analysis of what the project should cost. Cost of quality: used prepare the schedule activity cost estimate. Reserve Analysis: Various cost estimators include reserves as costs in many schedule activity cost estimates. Contingency reserves are estimated costs to be employed at the discretion of the project manager to deal with probable, but not certain, events. Cost estimating: outputs o Activity cost estimates: An activity cost estimate is a quantitative assessment of the likely costs of the resources required to complete schedule activities. o Activity cost estimate supporting detail: The amount and type of additional details supporting the schedule activity cost estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear, professional, and complete picture by which the cost estimate was derived.

Requested changes: The cost estimating process may generate requested changes that may affect the cost management plan, activity resource requirements, and other components of the project management plan, which are further, reviewed and deposited through integrated change control process. Cost management plan: If approved change requests result from the cost estimating process, then the cost management plan component of the project management plan is updated if those approved changes impact the management of costs. a. Generally, an organisation is divided into various divisions. Line managers have the primary responsibility of accomplishing the target goals of the organisation. They have complete decision-making authority. Line organisation is best suited where the work is of repetitive type and relationships between departments, and within the department, are relatively stable. In line organisation, the communication channels are very well defined. The line management is not conducive for project management. The matrix organisation is very much conducive for project management. In large organisations where the capital expenses are a major part in the annual outlay of the company, it is advisable to have an in-house project manager for assuring the quality of work and timely culmination of the projects. In such cases, the project management should be of line type in which the project manager should bear the full line authority and has total control over the departments he or she heads.

A5. o

o b. The strategies used to reduce risks are : Risk avoidance: It includes not performing an activity that could carry risk. Avoiding activities may seem to a very easy way of dealing with risks, but it also means losing out on the potential gain that performing the activities with risk may have allowed. Risk reduction: It involves methods that reduce the severity of loss from occurring. This method may cause a greater loss by water damage and therefore may not be suitable. Risk retention: Risk retention is a feasible strategy for small risks where the cost of insuring against the risk is likely to be higher over time than the total losses sustained. Risks which are not avoided or transferred are retained by default. This comprises risks that are so disastrous that they either cannot be insured against or the premiums would not be feasible. Also any amount of potential loss (risk) over the amount insured is retained risk. This can be accepted if there is a small chance of a very large loss or if the cost to insure for higher coverage amounts is so high it would hamper the goals of the organisation. Risk transfer: It means causing another party to accept the risk, usually by means of contract or by hedging. An example of a risk that uses contracts is insurance.

Q6. Discuss the concept of quality and project quality management. A6. Quality can be referred to as a state in which value entitlement is realized for the customer and supplier in every aspect of the business relationship. Let us discuss these steps in detail: Plan: Establish the objectives and processes essential to deliver results in agreement with the expected output (goals). Do: Execute the plan, implement the process, and make the product. Check: Study the results achieved and compare against the expected results Act: Request corrective actions on considerable differences between actual and expected results. o o o Project quality management Project quality management begins by defining the quality standards to be used for the project. The knowledge area of project quality management includes the organisational processes that determine the quality policies, objectives, and responsibilities. It consists of quality planning, quality assurance, and quality control.

Quality planning: Quality planning is the process of identifying the quality standards that are related to the project and determining how to these standards can be achieved. A good quality planning process starts with a clear definition of the goals of the project. This includes measuring the risks to success, setting high standards, documenting everything, and defining the methods and tests to attain, control, forecast and validate success. o Inputs to quality planning Quality policy: refers to the overall intentions and direction pertaining to quality. Scope statement: comprises the key objectives of the project. Product description: includes the details of influencing technical issues and other concerns. Standards and regulations o Tools and techniques to quality planning Benefit/cost analysis Benchmarking Flowcharting Design of experiments o Outcomes from quality planning Quality management plans: provides input to the overall project plan Operational definitions: explains what something is and how it is measured? Checklists: helps in verifying if a set of required steps has been performed. Inputs to other processes: discover a need for further activity in some other area. Quality assurance: Quality assurance means all the systematic and planned activities executed within the quality system give confidence that the project will meet the applicable quality standards. It also comprises the examination of data at stations and centres to validate that the data are in line with the quality system goals, and to identify errors so that the required action could be taken on time. QA Tests make use of a system of metrics to decide whether or not the quality plan is progressing in an acceptable manner. These tests or quality audits will assist you in forecasting and verifying the accomplishment of goals and identify need for corrective actions.

o Inputs to quality assurance Results of quality control measurements: records of quality control testing and measurement for comparison and analysis. o Tools and techniques for quality assurance Quality audit: It is a structured review of other quality management activities and carried out by properly trained in-house auditors or by third parties. o Outputs from quality assurance Quality improvement: It includes all the actions taken for increasing the effectiveness and efficiency of the project to provide added benefits to the project stakeholders. Quality control: Quality control involves scrutinising particular project results to determine if they abide by relevant quality standards and identifying ways to removing causes of unsatisfactory results. Quality Control (QC) refers to a system of routine technical activities that assists in measuring and controlling the quality of the project as it is being developed. This includes identifying, analysing, and correcting problems. o The quality control system: Provides routine and consistent checks to make sure that data is reliable, correct and complete; Identifies and deals with errors and omissions; Documents and collects inventory material, and records all quality control activities. o It comprises general methods like accuracy tests on data acquisition and calculations and the use of accepted standardized procedures for emission calculations, measurements, estimating uncertainties, recording information and reporting. It also comprises technical reviews of source categories, activities and emission factor data, and methods. o Inputs to quality control Work results: It includes both process results and product results. o Tools and techniques for quality control Inspection Control charts: graphic display of the results, over time, of a process. Pareto diagrams: Histogram ordered by frequency of occurrence that shows how many results were generated by type or category of identified cause. Statistical sampling: It determines the number of items to sample. Flowcharting: It is used in quality control to help analyse how problems occur. Trend analysis: mathematical techniques to forecast the future outcomes on historical data. o Outcomes from quality control Acceptance decisions: The items inspected will be either accepted or rejected. Rework: action taken to bring a defective item into compliance. Completed checklists: It should become part of the projects records. Process adjustments: includes key preventive and corrective actions taken as a project control measure.