ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD                                       1.1.5    Systems, Programs and Projects      ...
3.5.4    Work Breakdown Structure (WBS)                         5.5     Logistics Support    3.6    Activities Included in...
8.1.3    Assigning Risks to Each Level of PMMM                disposition of facilities; and acquisition of furnishing of ...
Logistics Processes - (classical) requirements determination,           Study the system relationships thoroughly prior to...
Mechanize the handling process where feasible to increase                  production point and consumption point increase...
What is logistics? What does it mean to projects?                                                    6
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  1. 1. ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD 1.1.5 Systems, Programs and Projects (Department of Business Administration) 1.1.6 Defining Maturity and Excellent ***** 1.1.7 Elements of Informal Project Management PROJECT MANAGEMENT (569) 1.2 Phases of Project Life Cycles 1.3 Project Management Methodologies ASSIGNMENT No. 1 1.4 Systems Thinking for Project Management Success Semester: Autumn 2012 Unit-2: Organizing and Staffing the Project Office andLevel: MBA Total Marks: 100 Team Pass Marks: 40 2.1 Organizational Staffing Process:Note: Attempt all questions. 2.1.1 Project TeamQ. 1 (a) As a project manager in a bank, what will be your role Project Manager in the project management? (10) Difference Between (b) Discuss the stages of project life cycle. (10) Program Manager and Project ManagerQ. 2 Explain the considerations for the selection of project Role of Project Manager manager. (20) Selecting Wrong Project ManagerQ. 3 Write short notes on the following: Considerations for a) Staffing related problems in small and mega projects Selecting Project Manager (10) Code of Ethics for Project b) Handling project phase-out and transfers (10) Managers Project Managers of 21stQ. 4 (a) Describe the concept of Critical Path Method (CPM). Century (10) Project Office (b) What are the advantages of disadvantages of Functional Team PERT/CPM? (10) 2.2 Considerations for Selecting Project Management Implementation TeamQ. 5 Discuss the essentials of pricing strategies in detail. (20) 2.3 Project Organizational Chart 2.4 Staffing Related Problems in Small and Mega Projects ASSIGNMENT No. 2 2.5 Conflicts in Project Environment (Total Marks: 100) 2.5.1 Understanding Superior, Subordinate and Functional ConflictsList of Topics 2.5.2 Methods of Conflict Resolution0. Systems and Programs 2.5.3 Modes of Conflict Resolution1. Logistics Support 2.5.4 Role of Project Manager in Conflict Problem2. Participants Role in Project Planning Solving3. Problems during Cost Control4. Responsibilities of Project Manager Unit-3: Project Planning5. Reasons Behind Project Stoppage or Failure 3.1 Planning in General and its Main Components6. Procurement Process 3.2 Participants Roles in Project Planning7. Selection of Projects 3.2.1 Responsibilities of Project Manager8. Critical Success Factors for Strategic Planning 3.2.2 Responsibilities of Line Manager9. Developing Effective Procedural Documentation 3.2.3 Responsibilities of Senior Management (Project Sponsor) PROJECT MANAGEMENT (569) 3.3 Identifying and Classification of Strategic Project Course Outline Variables 3.4 Use of Life Cycle Phases in Project PlanningUnit-1: Core Concepts of Project Management and its Growth 3.4.1 Preparation of Proposals for Future Work During Feasibility 1.1 Overview of Project Management Study 1.1.1 Understanding General Systems Management 3.5 Information Requirements for Effective Project 1.1.2 Historical Perspective of Project Management Planning 1.1.3 Nature and Scope of Project Management 3.5.1 Statement of Work 1.1.4 Differentiating Product Versus Project 3.5.2 Project Specifications Management 3.5.3 Milestone Schedules
  2. 2. 3.5.4 Work Breakdown Structure (WBS) 5.5 Logistics Support 3.6 Activities Included in Planning Cycle 5.6 Economic Project Selection Criteria: 3.7 Handling of Project Phase-Outs and Transfers 5.6.1 Capital Budgeting & its Techniques 3.8 Project Charter 5.6.2 Comparing IRR, NPV, and Payback 3.9 Configuration Management 5.6.3 Differentiating Risk Analysis and Capital 3.10 Procedural Documentation Rationing 3.11 Reasons Behind Project Stoppage or Failure Unit-6: Cost ControlUnit-4: Project Management Tools 6.1 Meaning of Cost Control 4.1 Networks Scheduling Techniques 6.2 Requirements for an Effective Control System 4.2 Program Evaluation and Review Technique (PERT) 6.3 Management Cost and Control System (MCCS) 4.2.1 Graphical Evaluation and Review Technique 6.3.1 Phases of Management Cost and Control (GERT) System (MCCS) 4.2.2 Critical Path Method (CPM) 6.3.2 Cost Account Codes and Work Packages 4.2.3 Difference Between GERT and PERT 6.4 Project Budgets, Variance and Earned Value 4.2.4 Difference Between PERT and CPM 6.5 Material Costs 4.2.5 Estimating Activity Time and Total Program 6.5.1 Recording Material Costs Using Earned Value Time Measurement 4.2.6 Determining Slack Times 6.5.2 Material Accounting Criterion 4.2.7 Determining Crash Times 6.5.3 Material Variances 4.2.8 Restructuring PERT/CPM Price Variance 4.2.9 Advantages and Disadvantages of PERT/CPM Usage Variance 4.3 Project Management Software 6.5.4 Summary Variance 4.3.1 Features and Classification of Project 6.6 Status Reporting and its Benefits Management Software 6.7 Problems During Cost Control 4.3.2 Evaluation of PM Software in Terms of Performance, Quality and Versatility Unit-7: Strategic Planning for Excellence in Project 4.3.3 Problems During Software Implementation Management Stage 7.1 Strategic Planning 4.4 Project Graphics 7.1.1 Understanding Strategic Planning in General 4.4.1 Fundamentals of Project Graphics 7.1.2 Strategic Planning for Project Management 4.4.2 Bar Chart, Other Conventional Presentation 7.2 Critical Success Factors for Strategic Planning Techniques 7.2.1 Qualitative Factors 4.4.3 Constructing Logic Diagrams/Networks 7.2.2 Organizational Factors 7.2.3 Quantitative FactorsUnit-5: Pricing and Estimating 7.3 Identifying Strategic Resources 5.1 Essentials of Pricing Strategies 7.4 Selection of Projects 5.1.1 Types of Estimates 7.4.1 Strategic Selection of Projects 5.1.2 Estimate during Project Life Cycle 7.4.2 Portfolio Selection of Projects 5.2 Establishing Pricing Process 7.5 Strategic Planning for Cost Controls on projects 5.2.1 Determining Organizational Input 7.5.1 Phase 1: Budget-Base Planning Requirements 7.5.2 Phase 2: Cost/Performance Determination 5.2.2 Pricing Out the Work by Controlling Company 7.5.3 Phase 3: Updating and Reporting Resources 7.6 Areas for Continuous Improvement to Project 5.2.3 Smoothing Out Department Man-Hours Management Methodologies 5.2.4 Pricing Review Procedure 7.6.1 Existing Process Improvements 5.2.5 Systems Approach to Pricing 7.6.2 Integrated Process Improvements 5.2.6 Developing the Supporting Backup Costs 7.6.3 Behavioral Issues 5.2.7 Special Problems During Pricing Process 7.6.4 Benchmarking 5.2.8 Estimating Pitfalls 7.6.5 Managerial Issues 5.3 Project Risks 7.7 Need for Establishing Project Office or Center of 5.3.1 Meaning of Project Risks Excellence 5.3.2 Managing of Project Risks 7.8 Problems During Strategic Planning Process 5.3.3 Essentials of High Risk Projects and Low Risk Projects Unit-8: Modern Developments in Project Management 5.3.4 Disaster of Applying 10 Percent Solution to 8.1 Project Management Maturity Model (PMMM) Project Estimates 8.1.1 Five Levels of Maturity 5.4 Life Cycle Costing (LCC) 8.1.2 Overlapping Levels 2
  3. 3. 8.1.3 Assigning Risks to Each Level of PMMM disposition of facilities; and acquisition of furnishing of 8.2 Developing Effective Procedural Documentation services. -- (JCS Pub 1-02 excerpt) 8.2.1 Benefits of Procedural Documentation Logistics - The procurement, maintenance, distribution, and 8.2.2 Challenges During Procedural Documentation replacement of personnel and materiel. -- (Websters 8.2.3 How to make it Work? Dictionary) 8.2.4 Established Practices 8.2.5 Categorizing Broad Spectrum of Documents Logistics - 1. The branch of military operations that deals with 8.3 Developing Good Project Management Methodologies the procurement, distribution, maintenance, and replacement 8.4 Need for Continuous Improvement and Capacity Planning of materiel and personnel. 2. The management of the details of 8.5 Replacement of Job Descriptions with Competence an operation. Models [French logistiques, from logistique, logic (perhaps influenced by loger, to quarter), from Medieval Latin logisticus, of 8.6 Managing Multiple Projects calculation.] -- (American Heritage Dictionary) 8.6.1 Factors Supporting Managing of Multiple Projects Logistics - ...the process of planning, implementing, and 8.6.2 Considerations for Managing Multiple Projects controlling the efficient, effective flow and storage of goods, Successfully services, and related information from point of origin to point 8.7 New Dimensions of End of Phase Review Meetings of consumption for the purpose of conforming to customer requirements." Note that this definition includes inbound,Unit-9: Contracting and Procurement in Project Management outbound, internal, and external movements, and return of materials for environmental purposes. -- (Reference: Council of 9.1 Procurement Logistics Management,, 12 9.1.1 Defining Procurement and its Objectives Feb 98) 9.1.2 Factors Influencing Procurement 9.1.3 Procurement Process Logistics - The process of planning, implementing, andRequirement Cycle controlling the efficient, cost effective flow and storage of rawRequisition Cycle materials, in-process inventory, finished goods and relatedSolicitation Cycle information from point of origin to point of consumption forAward Cycles the purpose of meeting customer requirements. -- (Reference: Canadian Association of Logistics Management, 9.2 Contracts, 12 9.2.1 Defining Contracts Feb, 1998) 9.2.2 Types of Contracts Frequently Used and Their Advantages and Disadvantages Logistics - The science of planning, organizing and managing 9.2.3 Need of Incentive Contracts activities that provide goods or services. -- (MDC, LogLink / 9.2.4 Contract Type Vs Risk LogisticsWorld, 1997) 9.2.5 Essentials of Contract Administration Cycle and its Functions Logistics - Logistics is the science of planning and implementing the acquisition and use of the resources 9.2.6 Checklist of Contract Considerations and necessary to sustain the operation of a system. -- (Reference: Provisions ECRC University of Scranton / Defense Logistics Agency 9.2.7 Special Considerations During Proposal- Included with permission from: HUM - The Government Contractual Computer Magazine "Integrated Logistics" December 1993, Interaction Walter Cooke, Included with permission from: HUM - TheWhat is logistics? Government Computer Magazine.)"Logistics means having the right thing, at the right place, at Logist - To perform logistics functions or processes. The act ofthe right time." planning, organizing and managing activities that provide goods or services. (The verb "to logist." Eg. She logisted theLogistics - (business definition) Logistics is defined as a last operation. I will logist the next operation. I am logisting thebusiness planning framework for the management of material, current operation. We logist the operations. The operations areservice, information and capital flows. It includes the well logisted.) -- (MDC, LogLink / LogisticsWorld, 1997)increasingly complex information, communication and controlsystems required in todays business environment. -- (Logistix Logistic - Of or pertaining to logistics. -- (MDC, LogLink /Partners Oy, Helsinki, FI, 1996) LogisticsWorld, 1997)Logistics - (military definition) The science of planning and Logistical - Of or pertaining to logistics, logistics-like. -- (MDC,carrying out the movement and maintenance of forces.... those LogLink / LogisticsWorld, 1997)aspects of military operations that deal with the design anddevelopment, acquisition, storage, movement, distribution, Logistics Functions - (classical) planning, procurement,maintenance, evacuation and disposition of material; transportation, supply, and maintenance. -- (United Statesmovement, evacuation, and hospitalization of personnel; Department of Defense DOD)acquisition of construction, maintenance, operation and 3
  4. 4. Logistics Processes - (classical) requirements determination, Study the system relationships thoroughly prior to preliminaryacquisition, distribution, and conservation. -- (United States planning in order to identify existing methods and problems,Department of Defense DOD) and physical and economic constraints, and to establish future requirements and goals.Business Logistics - The science of planning, design, and Flexibility Principlesupport of business operations of procurement, purchasing, Use methods and equipment which can perform a variety ofinventory, warehousing, distribution, transportation, customer tasks under a variety of operating, financial and human resources. -- (MDC, LogLink / Planning PrincipleLogisticsWorld, 1997) Establish a plan to include basic requirements, desirable options, and the consideration of contingencies for all materialCradle-to-Grave - Logistics planning, design, and support handling and storage activities.which takes in to account logistics support throughout the Simplification Principleentire system or product life cycle. -- (MDC, LogLink / Simplify handling by eliminating, reducing, or combiningLogisticsWorld, 1997) unnecessary movements and/or equipment. Systems PrincipleAcquisition Logistics - Acquisition Logistics is everything Integrate those handling and storage which are economicallyinvolved in acquiring logistics support equipment and viable into a coordinated system of operation includingpersonnel for a new weapons system. The formal definition is receiving, storage, production, assembly, packaging,"the process of systematically identifying, defining, designing, warehousing, shipping, and transportation.developing, producing, acquiring, delivering, installing, and Gravity Principleupgrading logistics support capability requirements through Utilize gravity to move material wherever possible, whilethe acquisition process for Air Force systems, subsystems, and respecting limitations concerning safety, product damage, andequipment. -- (Reference: Air Force Institute of Technology, loss.Graduate School of Acquisition and Logistics.) Unit Load Principle Handling product in as large a unit load as practical.Integrated Logistics Support (ILS) (1) - ILS is a management Safety Principlefunction that provides planning, funding, and functioning Provide safe material handling equipment and methods whichcontrols which help to assure that the system meets follow existing safety codes and regulations in addition toperformance requirements, is developed at a reasonable price, accrued experience.and can be supported throughout its life cycle. -- (Reference: Space Utilization PrincipleAir Force Institute of Technology, Graduate School of Make effective utilization of all cubic space.Acquisition and Logistics.) Computerization Principle Consider computerization in material handling and storageIntegrated Logistics Support (ILS) (2) - Encompasses the systems when circumstances warrant for improved materialunified management of the technical logistics elements that and information control.plan and develop the support requirements for a system. This Standardization Principlecan include hardware, software, and the provisioning of Standardize handling methods and equipment wherevertraining and maintenance resources. -- (Reference: ECRC possible.University of Scranton / Defense Logistics Agency Included Layout Principlewith permission from: HUM - The Government Computer Prepare an operational sequence and equipment layout for allMagazine "Integrated Logistics" December 1993, Walter viable systems solutions, then select the alternative systemCooke.) which best integrates efficiency and effectiveness. Ergonomic PrincipleLogistics Support Analysis (LSA) - Simply put, LSA is the Recognize human capabilities and limitations by designingiterative process of identifying support requirements for a new material handling equipment and procedures for effectivesystem, especially in the early stages of system design. The main interaction with the people using the system.goals of LSA are to ensure that the system will perform as Cost Principleintended and to influence the design for supportability and Compare the economic justification of alternative solutions inaffordability. -- (Reference: Air Force Institute of Technology, equipment and methods on the basis of economic effectivenessGraduate School of Acquisition and Logistics.) as measured by expense per unit handled. _____[]_logistics plural of lo·gis·tics (Noun)NounThe detailed Energy Principle coordination of a complex operation involving many people, Include energy consumption of the material handling systems facilities, or supplies. and material handling procedures when making comparisonsThe organization of moving, housing, and supplying troops and or preparing economic justifications. equipment.____ Maintenance Principle Logistics Foji Intizam Ka Ilm Prepare a plan for preventive maintenance and scheduled (n.) That branch of the military art which embraces the details repairs on all material handling equipment.of moving and supplying armies. The meaning of the word is by Environmental Principle some writers extended to include strategy. Minimize adverse effects on the environment when selecting (n.) A system of arithmetic, in which numbers are expressed in material handling equipment and procedures. a scale of 60; logistic arithmetic. Reliability Principle 20 PRINCIPLES FOR DESIGNING A Provide reliable and dependable material handling equipment MATERIAL HANDLING SYSTEM from manufacturers who have demonstrated quality and Orientation Principle longevity in the industry. Mechanization Principle 4
  5. 5. Mechanize the handling process where feasible to increase production point and consumption point increased. And efficiency and economy in the handling of materials. logistics gained importance. Accessibility Principle Another factor has come into play recently. Since the early Readily have access to the knowledge, expertise, 1990s, the business scene has changed. The globalization, the professionalism, and industry leadership. free market and the competition has required that the customer gets the right material, at the right time, at the right What is logistics? What does it mean to projects? point and in the right condition… at the lowest cost. Gulf War You will get some idea of what logistics is, from the fact that, in the 1991 Gulf War, the US and allies airlifted half a millionWhat is your advice to budding managers? I asked a friend of people and over half a million tonnes of materials over 12,000 mine who has been several years in logistical management. km and moved additional 2.3 million tonnes of equipment by "Logistics is the word," he said. "The future belongs to sea, in a short time frame. That kind of movement is more than Logistics." That is right and we will see why, but first thing physical handling. That is logistics. first. Wars have been won and lost through logistics capability or What is logistics? lack of it. Generals have understood the importance of logistics A widespread idea prevails that logistics is movement of since early days, but the business has learnt it fairly recently. goods. That is a narrow concept. Logistics is much more and And the logistics capability gives an edge to the business. much wider than mere physical handling of goods. Logistics involves several other functions such as purchasing, plant RevLog location, plant layout, etc., and even the disposal of wastes. It Another dimension to logistics is Reverse Logistics (RevLog).covers astonishingly varied professional disciplines. They are: Goods return from the consumer point to the original supply * Facility location point, for various reasons. Bad delivery, over-supply, damage, * Planning expiry, failing inspection tests at the customer point, goods * Forecasting and order management unsold etc., are some instances where the material traverses * Transportation: the mode and the route back. That is Reverse Logistics. The material that has to come * Inventory management: all inventories back to the original point, or to the original supplier, has also to * Warehousing be handled effectively and efficiently. Maintain a RevLog I Protective packaging system. That will give you more edge. I Information: maintenance and flow The future Definitions What will be logistics for future? This can be discussed at Many definitions are given for logistics. Here are some: length, but, looking at the trends today, four pillars can be "Logistics is… recommended: * strategically managing the procurement and movement of 1. Train, develop and maintain a team of logistics experts in goods and storage of inventory in all forms." your company. Make this team a part of strategy developers. * the process of strategically managing the procurement, 2. Develop and make your suppliers, of materials and services, movement and storage of materials, parts and finished aware to work and respond as a link in your logistics, including inventory (and the related information flows) through the RevLog organisation and its marketing channels in such a way that 3. Make your logistics as an IT-based operation. Remember current and future profitability are maximised through the that information flow is the crux of efficient and effective cost-effective fulfillment of orders" logistics.* the study and management of goods and service flows and the 4. Have a goal of your logistics as customer satisfaction rather associated information that set these in motion." than meeting marketing mens targets, fulfilling demands etc. These definitions give the idea of the wide range of functions that logistics covers. A simple definition is: "Logistics is the Logistics for projects delivery of the required goods, at required place, at required To projects, logistics means success or failure. After all, atime, in required state and to the required person…efficiently." project is a time-bound assignment. Generally, as of today, project procurement ends with specifying date and place of Importance delivery. After that the Project Manager loses the control of Logistics is the one important function in business today. No delivery and all he can do is have expediters chase the goods. marketing, manufacturing or project execution can succeed That will have to change. The project manager will have towithout logistics support. For companies, 10 per cent to 35 per innovate a logistics system for all deliveries. The project cent of gross sales are logistics cost, depending on business, manger then will cut down delivery time. That will reduce the geography and weight/value ratio. project duration. Having ones own logistics system will change Logistics is comparatively a new term, but not the operation. the way a project is executed. The system is an asset. Logistics has existed since the beginning of civilisation. Raw Remember, logistics is the future: more so for projects.material and finished products had always to be moved, though on a small scale. Things began changing with the advance in (Prof. Nansi was with Tata Consulting Engineers for 21 years.transportation. Population began moving from rural to urban He has handled assignments on various aspects of a project, areas and to business centres. No longer did people live near including project procurement. He can be contacted at production centres, nor did production take place near residence centres. The geographical distance between the 5
  6. 6. What is logistics? What does it mean to projects? 6