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Project Management - Tapan & Mohit Tripathi
Project Management - Tapan & Mohit Tripathi
Project Management - Tapan & Mohit Tripathi
Presentation to::
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 time constraints of a
project
Step 1:: Risk and Return analysis
Risk Analysis:: Return Analysis::
• The internal rate of return
• Demand Risk (IRR) is a rate of return used to
• Economic Risk measure and compare the
profitability of investments.
• The IRR of an investment is the
interest rate at which the net
present value of costs (negative
cash flows) of the investment
equal the net present value of
the benefits (positive cash
flows) of the investment.
Step 3:: Scope and Schedule of the Project
• 1 • Project 1 • Project 2
A None2
B A 1
C B 1
D C 2
E C 5
D(2)
F D,E 5
G F 1
E(5)
Determine early starts and early finish times
ES=4
EF=6
Hint:
Hint:Start
Startwith
withES=0
ES=0
and
andgogoforward
forwardininthe
the E(5)
network
networkfrom
fromAAtotoG.
G.
Hint:
Hint:Start
Startwith
withLF=15
LF=15or
orthe
the
total
total time of the project andgo
time of the project and go
backward
backwardininthethenetwork
networkfrom
from
Determine late starts ES=4
EF=6
GGto
toA.A.
and late finish times
ES=0 ES=2 ES=3 D(2) ES=9 ES=14
EF=2 EF=3 EF=4 EF=14 EF=15
LS=7
LF=9
A(2) B(1) C(1) F(5) G(1)
ES=4
LS=0 LS=2 LS=3 EF=9
LS=9 LS=14
LF=2 LF=3 LF=4 LF=14 LF=15
E(5)
LS=4
LF=9
Critical Path & Slack
ES=4
EF=6 Slack=(7-4)=(9-6)= 3 Wks
LS=4
Duration=15 weeks
LF=9
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 duration
comes 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 is
executed.
• Economic Value Management (EVM) is a management
approach towards managing the shareholder ‘value’ in
an 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 term strategies,
ensure focused execution, and create the alignment
within organizations that is critical for success.
Benefits of EVM
• Provides immediate gains: The Economic Value Management
methodologies, can identify significant opportunities and provide the
foundation for better long-term strategies. Provide early warning
signals.
• Better long-term strategy: The discipline of Economic Value
Management helps companies in the short run, its demanding,
focused approach results in better long-term strategies as well.
• Better Execution: Economic Value Management creates an
execution focus and discipline often lacking in firms that supplant
accountability for real results with budgeted measures of
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 THREE QUESTIONS
Q.1 Is the project going to be finished by the
scheduled date ?
Q.2 Is the completed work going to meet the
stated 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 Reports
• Trouble Reports
• Progress Reports
• Financial Reports
TROUBLED REPORTS
• They report both on trouble that has already
happened 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 is
documented to keep as a record
PROGRESS REPORTS
• These compare actual schedule and costs with
planned schedule and costs
• Overhead activities not directly involved with
the project can also be calculated similarly
• Variances associated with price, schedule
delays and similar factors can be identified
and measured quantitatively
FINANCIAL REPORTS
• 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 quickly
is 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 also
show the dependency (i.e. precedence
network) relationships between activities.
Other related aspects
• Quantity of reports
• Percent complete
• Summarizing Progress
• Punch List
QUANTITY OF REPORTS
• 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 because
managers normally know which reports or
section of reports are important
Project Execution