Q.

1 Comment on the following

a. Importance of DMAIS in project management cycle
Answer:
The Project management Life Cycle
The Project Life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives.
Irrespective of the complexities of the project, a life cycle of a project consists of –
a) Understanding the scope and objectives of the project
b) Formulating and planning various activities
d) Executing the project
d) Monitoring the project and controlling the project resources

b. Knowledge areas of project management.

Project Management Information System (PMIS)

An information system is mainly aimed at providing the management at different levels with information related to the
system of the organization. It helps in maintaining discipline in the system.
An information system dealing with project management tasks is the project management information system. It helps in
decision making in arriving at optimum allocation of resources. The information system is based on a database of the
organization. A project management information system also holds schedule, scope changes, risk assessment and actual
results.
The information is communicated to managers at different levels of the organization depending upon the need. Let us find
how a project management information system is used by different stakeholders.

The four major aspects of a PMIS are –

a. Providing information to the major stakeholders

b. Assisting the team members, stakeholders, managers with necessary information and summary of the information
shared to the higher level managers

c. Assisting the managers in doing what if analyses about project staffing, proposed staffing changes and total allocation
of resources

d. Helping organizational learning by helping the members of the organization learn about project management

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Usually, the team members, and not the systems administrators of the company, develop a good PMIS. Organizations tend
to allocate such responsibility by rotation among members with a well designed and structured data entry and analytical
format.

Q.2 Write few words on:

a. Project Characteristics
Any project may be considered to have the following characteristics:

a) Resource requirement: During the course of executing the project, it is seen that the resource requirement increases
from start to an intermediate stage of the project. It further increases at a rapid rate and becomes constant while the project
is at its 80 to 95% progress stage. Thereafter the resources requirement decreases to zero bringing the project to a finish.
Refer to the figure 2.2 for a chart.

b) Funds: The requirement of funds for the complete execution of the project also follows the same trend as that of the
resources. Both the requirements are more or less proportional. Refer to the figure 2.2 for a chart.

c) Probability of completion: The probability of completing the project can be estimated based upon the normal
distribution curve. In the initial stage of the project the probability of completing the project is low though not zero. It
gradually increases and as the project approaches finish the probability of completing the project tends to become 100%.
Refer to the figure 2.2 for a chart.

d) Risk: The risks involved in the project affecting its completion time are high at the initial stages and low at the later
stages of the project. Refer to the figure 2.2 for a chart.

e) Design changes: The project during the course of its progress may be subjected to changes because of some external
factors. The influence of such external factors on the project may result in changes in the design of the project though not
very often. It is observed that such changes, if any, are normally high during the initial stages of the project and decreases
as the project approaches finish.
b. WBS
Work Breakdown Structure (WBS)
The entire process of a project may be considered to be made up on number of sub process placed in different stage called
the Work Breakdown Structure (WBS).

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c. PMIS
Project Management Information System (PMIS)
An information system is mainly aimed at providing the management at different levels with information related to the
system of the organization. It helps in maintaining discipline in the system.
An information system dealing with project management tasks is the project management information system. It helps in
decision making in arriving at optimum allocation of resources. The information system is based on a database of the
organization. A project management information system also holds schedule, scope changes, risk assessment and actual
results.
The information is communicated to managers at different levels of the organization depending upon the need.
d. Project Management strategies-Internal & external

Internal Project Management Strategies

Projects fail for many internal reasons, some of them technical, some of them managerial. However, even the technical
failures can often be traced back to a failure on the part of the project's executive management to recognize and deal with
these inherent managerial risks.

External Project Management Strategies

On some projects, events external to the project sometimes come as a surprise to the project manager and his team and are
therefore seen as obstacles to progress. However, as noted earlier, projects generally exist only because of that external
environment and so it is essential for the project team to recognise that they must also be responsive to it.

Q.3 What are the various SCMo softwares available in project management? Explain each in brief.

Supply Chain Monitoring (SCMo)

The intent of this document is to define the structure of the Documentation System, its content, the method of content
generation and to attain common documentation of all standard processes of ODETTE.
The documentation is valid for the SCM group of ODETTE. The Documentation System is intranet based to provide
immediate access to current, up-to-date process documentation.
The system allows users to navigate through graphical structures to relevant documentation and processes which were
created with the ARIS-Toolset.There are various advantages of using such a documentation system.

The various SCMo softwares available in project management

a) Standard / Best Practices: Documentation system stores and presents standards and best processes to be adhered to
across the industry. This also helps the organization to secure their correct applications.

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b) Central Repository: It also offers a central location of all processes and system related information. This includes
customising documentation to working guidelines.

c) Adaptation: Adaptation is another unique objective achieved through documentation system. They allow flexible and
quick adaptation in case of process changes or enhancement and provide the updated information immediately.

d) Reference: It also provides easy and quick reference to the documents. They present the standard processes in the
intranet, where users can look up the current processes whenever necessary.

e) Availability: Process documentation system is available at every working location.

Q.4 List the various steps for Risk management. Also explain GDM and its key features.
Answer:-

Risk Management Plan

Risk management is an important part of project management. Although often overlooked, it is important to identify as
many risks to your project as possible and to be prepared if something bad happens. A project manager prepares a table of
risk management plans to indicate the risk type, probability of each risk, impact of the risk on the project, risk exposure
and a risk mitigation plan for each risk.
Here are some examples of common project risks:

 Time and cost estimates too optimistic

 Customer review and feedback cycle too slow
 Unexpected budget cuts
 Unclear role and responsibilities
 Poor communication resulting in misunderstandings, quality problem and rework
 Lack of resources commitment
 Stakeholders input is not sought or their needs are not properly understood
 Stakeholders changing requirements after the project has started
 Stakeholders adding new requirements after the project has started
GDM?

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The Global Delivery Model (GDM) enables an industry or business to plan, design and deliver products and services to
any customer worldwide with speed, accuracy, economy and reliability. GDM enables its customer to leverage varied
locations across the globe that provides optimised value for every component of delivery. The key features of GDM are
shown in figure

a. Standardisation – It includes ingenious design and development of components and features which are like to be
accepted by 90% of world-wide customers. GDM heavily depends on Global Standards of Design focusing on highly
standardised methods and processes of manufacture or development. It adopts plug-and-socket concepts with minimum
adaptable joints or connections.

b. Modularisation – GDM requires product or solution to be split up into smallest possible individual identifiable
entities. These entities will have
limited individual functioning capability but they can become powerful and robust in combination with other modules.

c. Minimum Customisation – GDM mandates only minimum changes or modifications to suit individual customers.

d. Maximum Micro Structuring – GDM encourages splitting of the Product Modules further into much smaller entity
identifiable more through characteristics rather than application features. These Microbial Entities are standardised even
across Multiple Modules. Application of these Microbial Entities rest within multiple Projects or Products or even as add-
ons to suit customer needs later.

Q.5 Answer the two parts:

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a. Importance of data management in project management-Comment.
Answer:-
Data management consists of conducting activities which facilitate acquiring data, processing it and distributing it.
Acquisition of data is the primary function.
To be useful, data should have three important characteristics – timeliness, sufficiency and relevancy (as shown in
figure ). Management of acquisition lies in ensuring that these are satisfied before they are stored for processing 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 way you function. Most of the
data go on changing because the aforesaid sources have uncertainty inherent in them. So updating data is a very important
aspect of their management.Storing what is relevant in a form that is available to concerned persons is also important.
When a project is underway dataflow from all members of the team will be flowing with the progress of activities. The
data may be about some shortfalls for which the member is seeking instructions. A project manager will have to analyse
them, discover further data from other sources and see how he can use them and take decisions. Many times he will have
to inform and seek sanction from top management.
The management will have to study the impact on the overall organisational goals and strategies and convey their
decisions to the manager for implementation. For example, Bill of Materials is a very important document in Project
Management. It contains details about all materials that go into the project at various stages and has to be continuously
updated as all members of the project depend upon it for providing materials for their apportioned areas of execution.

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Since information is shared by all members, there is an opportunity for utilising some of them when others do not need
them. To ascertain availability at some future point of time, information about orders placed, backlogs, lead times are
important for all the members. A proper MIS will take care of all these aspects. ERP packages too help in integrating data
from all sources and present them to individual members in the way they require. When all these are done efficiently the
project will have no hold ups an assure success.

b. What is the significance of reviewing ROI?

ROI
Return on Investment (ROI) is the calculated benefit that an organisation is projected to receive in return for investing
money, time and resources in a project. Within the context of the review process, the investment would be in an
information system development or enhancement project.
ROI information is used to assess the status of the business viability of the project at key checkpoints throughout the
project’s life-cycle. ROI may include the benefits associated with improved mission performance, reduced cost, increased
quality, speed, or flexibility, and increased customer and employee satisfaction.
ROI should reflect such risk factors as the project’s technical complexity, the agency’s management capacity, the
likelihood of cost overruns, and the consequences of under or non-performance. Where appropriate, ROI should reflect
actual returns observed through pilot projects and prototypes.
ROI should be quantified in terms of money and should include a calculation of the break-even point (BEP), which is the
time (point in time) when the investment begins to generate a positive return. ROI should be re-calculated at every major
checkpoint of a project to see if the BEP is still on schedule, based on project spending and accomplishments to date.
If the project is behind schedule or over budget, the BEP may move out in time; if the project is ahead of schedule or
under budget the BEP may occur earlier. In either case, the information is important for decision-making based on the
value of the investment throughout the project life-cycle. Any project that has developed a business case is expected to
refresh the ROI at each key project decision point (that is, stage exit) or at least yearly.

Q.6 ABC organization has been in software business since last 20 years. The senior management feels that although
they are making profits, but the profit on an average is the same each year. They decide that they would make
some additions to the business and decided to go ahead with development of some high technology for better
profits. Can you suggest some guidelines, which the management should follow in this venture?

Ans. Every business aims to commence its activities in the foreign market. The foreign market provides with both
opportunities and risks. Therefore some prefer to enter in to strategic relationships and one such is the Joint Ventures.

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A Joint Venture is an entity formed between two or more parties to undertake economic activity together. The JV parties
agree to create, for a finite time, a new entity and new assets by contributing equity. They then share in the revenues,
expenses, and assets and the control of the enterprise. Therefore the basic characteristics of joint venture can be summed
up as:

1) Based on a Contractual Agreement.

2) Specific limited purpose and duration.

3) Joint Property Interest

4) Common Financial and Intangible goals and objectives.

5) Shared profits, losses, management and control.

Reasons for setting Joint Ventures abroad

The reasons for setting up joint ventures can be contributed to three main factors and they are:

1. Internal Reasons.

2. Competitive Goals.

3. Strategic Goals.

1. The Internal reasons are as follows:

• Building on company’s strength.

• Spreading on costs and risks.
• Improving access to financial resources.
• Economies of scale and advantages of size.
• Access to new technologies and customers.
• Access to innovative managerial practices.

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2. The Competitive Goals are as follows:

• Influencing structural evolution of the industry.

• Defensive response to blurring industry boundaries.
• Creation of stronger competitive units.
• Speed to market.
• Improved Agility.

3. The Strategic Goals are as follows:

• Diversification
• Synergies.
• Transfer of technology/skill

Indian Joint Ventures Abroad

India started opening its economy a decade ago to integrate with global economy. The business ventures abroad are not a
new phenomenon in the independent India. The initiatives were taken way back in the 1960s with the first ventures of
Birlas in Ethopia in the year 1964. However, it has assumed specific significance after the Indian government started
economic reforms in the year 1991, making globalization of Indian business an integral part of economic reforms.

Significance of Indian Joint Ventures Abroad

International trade is considered to be imperative for economic development. Economic borders of various countries have
been opened on this premise under the aegis of world trade organization. In countries, whose economy has moved from
the level of necessity to comforts and luxuries levels, there are increasing pressures for newer, better and superior
products with consistent quality, high reliability and attractive finish etc. Further, with the labour becoming increasingly
costly, the firms have to go for development of capital intensive technologies. The huge investments in new product and
technology development demands higher levels of production to ensure operations of the firms above the breakeven point.

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The scale of operations required over a period of time reaches a level that is well above the entire domestic demand in
most of the developed countries, which generally have small population.

The firms thus face the problem of searching new markets and cheaper sources of raw material, labour and other
resources. Their growth and development, thus, depends upon internationalization of the business.

Advantages and Disadvantages

A business while deciding upon whether to go for a joint venture should make a thorough analysis on its business goals.

Advantages

• Financial resources can be shared.

• Allows for Investor diversification.
• Reduces local Friction.
• Reduce Fixed costs per product.
• Direct management of business activities.
• Competitive strengths of two parties can be combined.
• A local JV partner knows the market.
• Economic incentives add value to JVs.

Disadvantages

• JV profits are shared.

• Shared technologies can be used beyond JV.
• Local Management of a JV can be unknown

Broadly there are two schemes under which an Indian Party can set up a JV abroad, namely the Automatic Route and the
Normal Route/Approval Route.

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Automatic Route

Under the Automatic Route, an Indian Party does not require any prior approval from the Reserve Bank for setting up a
JV abroad (in case of investment in the financial sector, however, prior approval is required from the concerned regulatory
authority both in India and abroad).

The criteria for direct investment under the Automatic Route are as under:

• The total µfinancial commitment of the Indian Party in JVs in any country other than Nepal, Bhutan and
Pakistan is up to 100% of its net worth and the investment is in a lawful activity permitted by the host country
• The Indian Party is not on the Reserve Banks exporters caution list / list of defaulters to the banking system
published/ circulated by the Credit Information Bureau of India Ltd. (CIBIL)/RBI or under investigation by the
Enforcement Directorate or any investigative agency or regulatory authority;
• The Indian Party routes all the transactions relating to the investment in a JV through only one branch of an
authorized dealer to be designated by it.

Normal Route

Proposals not covered by the conditions under the automatic route require the prior clearance of the Reserve Bank for
which a specific application in form ODI with the documents prescribed therein is required to be made to RBI.

Requests under the normal route are considered by taking into account inter alias the prima facie viability of the proposal,
business track record of the promoters, experience and expertise of the promoters, benefits to the country, etc

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