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 and
Level: MBA Total Marks: 100
Team
Pass Marks: 40
2.1 Organizational Staffing Process:
Note: Attempt all questions.
2.1.1 Project Team
Q. 1 (a) As a project manager in a bank, what will be your role
2.1.1.1 Project Manager
in the project management? (10)
2.1.1.1.1 Difference Between
(b) Discuss the stages of project life cycle. (10)
Program Manager and
Project Manager
Q. 2 Explain the considerations for the selection of project
2.1.1.1.2 Role of Project Manager
manager. (20)
2.1.1.1.3 Selecting Wrong Project
Manager
Q. 3 Write short notes on the following:
2.1.1.1.4 Considerations for
a) Staffing related problems in small and mega projects
Selecting Project Manager
(10)
2.1.1.1.5 Code of Ethics for Project
b) Handling project phase-out and transfers (10)
Managers
2.1.1.1.6 Project Managers of 21st
Q. 4 (a) Describe the concept of Critical Path Method (CPM).
Century
(10)
2.1.1.2 Project Office
(b) What are the advantages of disadvantages of
2.1.1.3 Functional Team
PERT/CPM? (10)
2.2 Considerations for Selecting Project Management
Implementation Team
Q. 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 Conflicts
List of Topics
2.5.2 Methods of Conflict Resolution
0. Systems and Programs
2.5.3 Modes of Conflict Resolution
1. Logistics Support
2.5.4 Role of Project Manager in Conflict Problem
2. Participants Role in Project Planning
Solving
3. Problems during Cost Control
4. Responsibilities of Project Manager
Unit-3: Project Planning
5. Reasons Behind Project Stoppage or Failure
3.1 Planning in General and its Main Components
6. Procurement Process
3.2 Participants Roles in Project Planning
7. Selection of Projects
3.2.1 Responsibilities of Project Manager
8. Critical Success Factors for Strategic Planning
3.2.2 Responsibilities of Line Manager
9. 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 Planning
Unit-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. 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 Control
Unit-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 6.5.3.1 Price Variance
4.2.9 Advantages and Disadvantages of PERT/CPM 6.5.3.2 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 Factors
Unit-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
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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, http://www.clm1.org/mission.html, 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, and
Requirement Cycle controlling the efficient, cost effective flow and storage of raw
Requisition Cycle materials, in-process inventory, finished goods and related
Solicitation Cycle information from point of origin to point of consumption for
Award Cycles the purpose of meeting customer requirements. -- (Reference:
Canadian Association of Logistics Management,
9.2 Contracts
http://www.calm.org/calm/AboutCALM/AboutCALM.html, 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 - The
What 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 of
the right time." planning, organizing and managing activities that provide
goods or services. (The verb "to logist." Eg. She logisted the
Logistics - (business definition) Logistics is defined as a last operation. I will logist the next operation. I am logisting the
business planning framework for the management of material, current operation. We logist the operations. The operations are
service, information and capital flows. It includes the well logisted.) -- (MDC, LogLink / LogisticsWorld, 1997)
increasingly complex information, communication and control
systems required in today's 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 and
development, acquisition, storage, movement, distribution, Logistics Functions - (classical) planning, procurement,
maintenance, evacuation and disposition of material; transportation, supply, and maintenance. -- (United States
movement, evacuation, and hospitalization of personnel; Department of Defense DOD)
acquisition of construction, maintenance, operation and
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4. Logistics Processes - (classical) requirements determination, Study the system relationships thoroughly prior to preliminary
acquisition, 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 Principle
support of business operations of procurement, purchasing, Use methods and equipment which can perform a variety of
inventory, warehousing, distribution, transportation, customer tasks under a variety of operating conditions.
support, financial and human resources. -- (MDC, LogLink / Planning Principle
LogisticsWorld, 1997) Establish a plan to include basic requirements, desirable
options, and the consideration of contingencies for all material
Cradle-to-Grave - Logistics planning, design, and support handling and storage activities.
which takes in to account logistics support throughout the Simplification Principle
entire system or product life cycle. -- (MDC, LogLink / Simplify handling by eliminating, reducing, or combining
LogisticsWorld, 1997) unnecessary movements and/or equipment.
Systems Principle
Acquisition Logistics - Acquisition Logistics is everything Integrate those handling and storage which are economically
involved in acquiring logistics support equipment and viable into a coordinated system of operation including
personnel 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 Principle
upgrading logistics support capability requirements through Utilize gravity to move material wherever possible, while
the acquisition process for Air Force systems, subsystems, and respecting limitations concerning safety, product damage, and
equipment. -- (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 Principle
function that provides planning, funding, and functioning Provide safe material handling equipment and methods which
controls which help to assure that the system meets follow existing safety codes and regulations in addition to
performance requirements, is developed at a reasonable price, accrued experience.
and can be supported throughout its life cycle. -- (Reference: Space Utilization Principle
Air 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 storage
Integrated Logistics Support (ILS) (2) - Encompasses the systems when circumstances warrant for improved material
unified management of the technical logistics elements that and information control.
plan and develop the support requirements for a system. This Standardization Principle
can include hardware, software, and the provisioning of Standardize handling methods and equipment wherever
training and maintenance resources. -- (Reference: ECRC possible.
University of Scranton / Defense Logistics Agency Included Layout Principle
with permission from: HUM - The Government Computer Prepare an operational sequence and equipment layout for all
Magazine "Integrated Logistics" December 1993, Walter viable systems solutions, then select the alternative system
Cooke.) which best integrates efficiency and effectiveness.
Ergonomic Principle
Logistics Support Analysis (LSA) - Simply put, LSA is the Recognize human capabilities and limitations by designing
iterative process of identifying support requirements for a new material handling equipment and procedures for effective
system, 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 Principle
intended and to influence the design for supportability and Compare the economic justification of alternative solutions in
affordability. -- (Reference: Air Force Institute of Technology, equipment and methods on the basis of economic effectiveness
Graduate 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 comparisons
The 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
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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, 1990's, 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 million
What 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 men's 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, a
time, 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 to
without 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 one's 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 bp.nansi@projectsmonitor.com)
residence centres. The geographical distance between the
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6. What is logistics? What does it mean to projects?
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