Module I
Module I
Project definition, Project Profile and standards, Feed
back information (MIS),Evaluation and
Modification, Selection, Criteria.
Project
 Project is a collaborative enterprise, involving research
or design, that is carefully planned to achieve a
particular aim.
 Projects can be further defined as temporary rather
than permanent social systems or work systems that are
constituted by teams within or across organizations to
accomplish particular tasks under time constraints.
(en.wikipedia.org)
 Planned set of interrelated tasks to be executed over a
fixed period and within certain cost and
other limitations. (http://www.businessdictionary.com)
Project
1. something that is contemplated, devised, or planne
d; plan; scheme.
2. a large or major undertaking, especially one involvi
ng considerablemoney, personnel, and equipment.
3. a specific task of investigation, especially in scholar
ship.(http://dictionary.reference.com/)
Project Management
 Project Management is the process and activity of
planning, organizing, motivating, and controlling
resources, procedures and protocols to achieve
specific goals in scientific or daily problems.
(en.wikipedia.org)
phases
1. Planning & Scheduling
2. Execution
3. Control
From http://www.projectmanagement-training.net,
1. Initiation phase
2. Definition phase
3. Design phase
4. Development phase
5. Implementation phase
6. Follow-up phase
MIS
 MIS is an information system that provides
information in the form of standardized reports and
displays for the managers.
 MIS is a broad class of information systems designed
to provide information needed for effective decision
making.
http://www.tutorialspoint.com/management_information_system/mis_tutorial.pdf
MIS
 Management:
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Management covers the planning, control, and administration of the
operations of a concern. The top management handles planning; the
middle management concentrates on controlling; and the lower
management is concerned with actual administration.
 Information
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Information, in MIS, means the processed data that helps the
management in planning, controlling and operations. Data means all
the facts arising out of the operations of the concern. Data is
processed i.e. recorded, summarized, compared and finally presented
to the management in the form of MIS report.
 System
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Data is processed into information with the help of a system. A
system is made up of inputs, processing, output and feedback or
control.
http://www.tutorialspoint.com/management_information_system/mis_tutorial.pdf
Characteristics of MIS
 Based on a long-term planning.
 It should provide a holistic view of the dynamics and the structure of the
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organization.
Complete and comprehensive system
It should be planned in a top-down way.
It should be based on need of strategic, operational and tactical
information of managers of an organization.
It should also take care of exceptional situations by reporting such
situations.
It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage.
It should create linkage between all sub-systems within the organization.
Avoid redundancy and duplicity of data
Flexible - it could be easily split into smaller sub-systems as and when
required.
A central database is the backbone of a well-built MIS.
http://www.tutorialspoint.com/management_information_system/mis_tutorial.pdf
Components of MIS
 Information systems comprise hardware and
software, telecommunications, databases, human
resources and procedures .
 MIS components includes charts, table, list, forms
and reports of information.
Functions of MIS
 Data capture and collection.
 Storage.
 Information processing.
 Distribution or dissemination of information.
PROFILE
 A project profile is a simplified description of an
eventual project. In addition to defining the purpose
and ownership of the project, it presents a first
estimate of the activities involved and the total
investment that will be required, as well as the
annual operating costs and, in the case of income
generating projects, the annual income.
 Visit : http://www.dcmsme.gov.in/
http://www.fao.org/
Profile Vs Design
 A Profile is a 'Snapshot' of the Project
 A Profile Simplifies the Replacement of Equipment
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and Machinery
A Profile Includes no Financing Costs
A Profile Uses Broad Estimations for Costs and
Income
A Profile Excludes Associated Costs
A Profile Pays Limited Attention to Project
Organization and Impact
http://www.fao.org/
Project Standards
 Capability Maturity Model – Software Engg. Inst.
 Australian Institute of Project Management Standards (AIPM)
 Australian National Competency Standards for Project Management
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(ANCSPM)
IPMA Competence Baseline V3.0 (ICB®)
Project Management Association of Japan P2M
Project Management Institute’s PMBoK®Guide 2008
PRINCE2® 2009 – Projects in Controlled Environment
SAQA National Qualifications Level 5 Standard
Team Software preocess
V- Model
IAPMM – Internal Association of Project & Program Management
GAPPS – Global Alliance for project performance Standard.
HERMS – swiss standard
From PMI, ISO 9000 etc.,
http://www.changedesigns.net/public/team/leading_teams/projectmanagement-standards.html
Overview of Project Selection Process
 Project Management Office (PMO):
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Aligning corporate needs and project goals
Project Selection: Choose candidate
project using Evaluation Criteria
Dealing with Uncertainty: Risk Analysis
Strategically selecting best Projects:
Project Portfolio Process (PPP)
Locking up the deal: Writing a Project
Proposal
PS Models
 Idealized view of reality
 Representing the STRUCTURE of the problem,
not the detail
 Deterministic or stochastic
Criteria for Project Selection models
 Realism (technical-, resource-, market-risk)
 Capability (adequately sophisticated)
 Flexibility (valid results over large domain)
 Ease of Use (no expert needed to run model)
 Cost (much less than project benefit)
 Easy Computerization (use standard
software)
Nature of PS models: Caveat
 Project decisions are made by PM --- NOT by
PS model!
 A PS model APPROXIMATES, but does NOT
DUPLICATE reality!
Nature of PS Models: Methodology
 Start with detailed
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list of firm’s goals
Create list of project evaluation factors
(PEF’s)
Weigh every element in PEF list
Compute an overall score for project based
on weighted PEF’s
Select project that has the closest alignment
with firm’s goals
Project Evaluation Factors (PEFs)
 Production Factors
 Marketing Factors
 Financial Factors
 Personnel Factors
 Administrative and Misc. Factors
Choosing the PS Model
 Dependent on wishes and philosophy of management
 80% of Fortune 500 firms choose “nonnumeric” PS
models
 Firms with outside funding often chose scoring PS
models
 Firms without outside funding often chose profit /
profitability PS models
Management of Risk: Terminology
 Risk: Decision based on complete information about the
probability of each possible outcome.
 Uncertainty: Decision based on incomplete or
insufficient data.
 Game: Decision based under conditions of conflict.
Areas of Uncertainty
 Project timing & expected cash flow.
 Direct outcome of project, i.e. what exactly will the
project accomplish
 Side effects and unforeseen consequences of project
Window-of-Opportunity Analysis
 Estimate IN ADVANCE economic impact of
innovation before R&D is undertaken
 Set up a baseline of current process as the sum of all
current sub processes
 Compute cost / performance of new innovation as a
multiple of each sub process in the baseline system
Problems Affecting Data Used in PS Models
 Accounting: arbitrary assignment of overhead
costs, linear cost and revenue forecasts
 Measurements: (subjective vs. objective),
(quantitative vs. qualitative), (reliable vs.
unreliable), (valid vs. invalid)
 Technology shock: New technology has to overcome
initial resistance threshold.
Project Proposal: Content
 Cover letter
 Executive summary
 Description and past experience of project team
 Nature of technical problem to be solved
 How to approach solution of technical problem
 Plan for implementation of project
 Plan for logistic support and administration
Project Proposal:
Cover letter & Executive summary
 Compose a cover letter as key marketing
instrument
 Explain fundamental nature and general
benefits of project
 Minimally technical language
Project Proposal:
Past Experience of Project Team
 List all key project personnel with titles and
qualifications
 Include full resume of each principal
 Provide all pertinent references
Project Proposal:Technical Approach
 General description of
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problem to be
addressed or project to be undertaken
Major subsystems of problem or project
Methodology of solving the problem
Special client requirements
Test and inspection procedures
Project Proposal:Implementation Plan
of time, cost and materials for
each subsystem and the whole project
 Establish major milestones to break project
into phases
 List equipment, overhead and administrative
cost
 Develop contingency plans (incl. slack time)
 Estimates
Project Proposal:
Plan for Administration and Logistic Support
 Control over subcontractors
 Nature and Timing of all reports
(progress, budget,
audits)
 Change management
 Termination Procedures
 “touch of class” capabilities (artist’s renderings,
meeting facilities, video conferencing, computer
graphics)