Q1. Define project management. Discuss the need for project management.

Ans: Project Management is all about a mindset. The major characteristics of project mindset. Characteristics of project mindset a) Time: It is an important parameter in framing the right mindset. It is possible to improve the pace of the project by reducing the time frame of the process. The mindset is normally to work out a comfort mode by stretching the time limits. b) Responsiveness: It refers to quickness of response of an individual. The vibrancy and liveliness of an individual or an organisation are proportional to its capabilities to respond to evolving processes and structure. c) Information Sharing: Information is power. Information is the master key to todays business. Information sharing is an important characteristic of the project mindset today. A seamless flow of information is a key to build a healthy mindset among various stakeholders in a project. d) Processes: Project mindset lays emphasis on flexible processes. The major difference in a process and a system is in its capabilities of providing flexibility to different situational encounters. Flexible processes possess greater capabilities of adaptability. e) Structured planning: Structured planning based on project management life cycle enables one to easily and conveniently work according to the plan. It also enables efficient use of project resources and prioritisation of the activities based on resource planning. Hence having a right mindset and flexible processes in place is very important for a sound project management.

Q2. What is meant by risk management? Explain the components of risk management.
Ans: Risks are those events or conditions that may occur and whose occurrence has a

harmful or negative impact on a project. Risk management aims to identify the risks and then take actions to minimise their effect on the project. Risk management entails additional cost. Hence risk management can be considered cost-effective only if the cost of risk management is considerably less than the cost incurred if the risk materializes.

Q3. Discuss the various steps in project monitoring and control. Ans:

Q4. What is Project Management Information System (PMIS)? What are the major aspects of PMIS?

Ans: 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 organisation. It helps in maintaining discipline in the system.

Q5. What is PERT chart? What are the advantages of PERT chart?

Ans: A number of activities make a project. Due to technological necessities, some activities can

be performed only after some others have been completed. Some activities are independent of some other set of activities

Q6. Write brief notes on the following: (i) Re-engineering and (ii) Re-structuring. Ans: 1. Reengineering Reengineering implies changes of various types and depth to a system, from a slight renovation to a total overhaul. Business process reengineering (BPR) began as a private, sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks There are six standard steps, which are useful to guide a firm in its reengineering procedure,

Step 1: Target Identification. This is the most important aspect of the overall reengineering procedure. It is very essential to identify which work or operation is required to be changed or improved. It is also important to identify the known range of potential improvement i.e. we should know and be aware of limitations or extent of scopes of improvements that can be made. Step 2: Understand the work sequence Understanding the work sequence which is being evaluated is the second step in the reengineering procedure. The traditional gay of doing this is to make a detailed flow chart or process map of the various steps that are required for performing a particular activity. However in reengineering process only those steps that are capable of potential improvement are studied and alternative suggested. In situations where the alternatives suggested require capital commitment like installing of new machinery the return on investment is also taken in account.

Step 3 and 4: The creative aspect. A model of the activity which is being studied for improvement is created. This is done to identify best possible alternative design. Simultaneously the firm should also initiate steps to study and analyze external benchmarking in order to find out improved alternative approaches to the design. A final combination of the suggested alternative design of the activity would be a combination of both the internal as well as external perspectives. Step 5: Evaluation the modifications to the activity The fifth step involves evaluation the modifications to the activity which is being reviewed on the cost benefit basis. During the benchmarking exercise, various ideas would be generated. Care should be taken only to adopt those ideas, which are practical and meaningful. The focus of the evaluation should be on the accurate assessment of the expected benefits that will be accrued from the implementation of the modified activity. Step 6: Implementation. Depending upon the extent of the proposed change, it may become necessary for the firm to resort to suitable training for its employees. How effective will be the implementation will depend upon the risk involved in adopting and managing the proposed change in the activity. 2. Restructuring What Does Restructuring Mean? A significant modification made to the debt, operations or structure of a company. This type of corporate action is usually made when there are significant problems in a company, which are causing some form of financial harm and putting the overall business in jeopardy. The hope is that through restructuring, a company can eliminate financial harm and improve the business. When a company is having trouble making payments on its debt, it will often consolidate and adjust the terms of the debt in a debt restructuring. After a debt restructuring, the payments on debt are more manageable for the company and the likelihood of payment to bondholders increases. A company restructures its operations or structure by cutting costs, such as payroll, or reducing its size through the sale of assets. This is often seen

as necessary when the current situation at a company is one that may lead to its collapse. Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Alternate reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning , or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Executives involved in restructuring often hire financial and legal advisors to assist in the transaction details and negotiation. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations. The basic nature of restructuring is a game. Strategic restructuring reduces financial losses, simultaneously reducing tensions between DEBT and EQUITY holders to facilitate a prompt resolution of a distressed situation. Steps: ensure the company has enough liquidity to operate during implementation of a complete restructuring produce accurate working capital forecasts provide open and clear lines of communication with creditors who mostly control the company's ability to raise financing update detailed business plan and considerations. Characteristics Cash management and cash generation during crisis Impaired Loan Advisory Services (ILAS) Retention of corporate management sometimes "stay bonus" payments or equity grants Sale of underutilized ASSETS , such as PATENTS or brands OUTSOURCING of operations such as payroll and technical support to a more efficient third party Moving of operations such as manufacturing to lower-cost locations Reorganization of functions such as sales, marketing, and distribution Renegotiation of labor contracts to reduce OVERHEAD . Refinancing of corporate DEBT to reduce interest payments

 A major PUBLIC RELATIONS campaign to reposition the company with consumers Forfeiture of all or part of the ownership share by pre restructuring stock holders (if the remainder represents only a fraction of the original firm, it is termed a STUB ). Symptoms indicating the need for organizational restructuring. -New skills and capabilities are needed to meet current or expected operational requirements. -Accountability for results are not clearly communicated and measurable resulting in subjective and biased performance appraisals. -Parts of the organization are significantly over or under staffed. -Organizational communications are inconsistent, fragmented, and inefficient. -Technology and/or innovation are creating changes in workflow and production processes. -Significant staffing increases or decreases are contemplated. -Personnel retention and turnover is a significant problem. -Workforce productivity is stagnant or deteriorating. -Morale is deteriorating. ========================== eight different types of restructuring: Relocation: when the activity stays within the same company, but is relocated to another location within the same country. This differs from outsourcing in so far as the activities which are transferred do not belong to an integrated system of a broader production (i.e. supply chain). OUTSOURCING : when the activity is subcontracted or contracted out to another company within the same country. It is the act of transferring some of the companys recurring internal activities and powers of decision to outside providers. Offshoring/delocalisation: when the activity is relocated or outsourced outside of the countrys borders. The offshored activity may either continue to be owned by the company or may be offshore outsourced. Bankruptcy/closure: when an industrial site is closed or a company goes bankrupt for economic reasons not directly connected to relocation or outsourcing. Merger/Acquisition: when two or more companies decide to transfer their assets into a single company or during an acquisition which then involves an internal restructuring programme aimed at rationalising the organisation by cutting personnel. Internal restructuring: when a company undertakes a job-cutting plan which is not linked to another type of restructuring defined above.

 Business expansion: when a company extends its business activities, hiring new workforce. Other: when a company undergoes a type of restructuring that is not one of the above types.

ASSIGNMENT- Set 2

Q1. What are the various phases of project management life cycle? Explain

Ans: Project Life Cycle and Process Flows The Project Life Cycle refers to a logical sequence of activities to accomplish the projects goals or objectives. It thus outlines the important processes that are required by any project from start to end. Normally a project will go through a sequence of processes . Project process flow In the preparation stage, the project manager, along with the associates and team members, draft the outline of the project. They identify the various factors required to be taken care of in the project. Based on their discussion, they formulate the plans and model the activities for execution. They prepare the budget. After the model is approved, they recommended it for implementation. During the planning stage, roles and responsibilities of the various members involved in the project are listed out. In addition, the project team works on the feasibility report to assess the project feasibility with respect to time, finance and technicalities. A thorough risk analysis is also performed to arrive at the uncertainty factors. The findings of the risk analysis are used to establish the control factors to be exercised during the execution of the project. Various monitoring tools are

set to monitor the project progress. All the key issues found at the planning stage of a project are documented in a project plan.

Q2. Write brief note on project planning and scoping. Ans; Q3. What is Return on Investment (ROI)? Explain its importance. Ans: Return on Investment (ROI) is the calculated benefit that an organization is projected to receive
in return for investing money (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 check points throughout the projects life-cycle. ROI may include the benefits associated with improved mission performance, reduced cast, increased quality, speed, or flexibility, and increased customer and employee satisfaction. ROI should reflect such risk factors as the projects technical complexity. The agencys management capacity, the likelihood of cost overruns, and the consequences of under or non-performance where appropriate, ROI should be reflect actual returns observed through pilot projects and prototypes. ROI should be quantified in terms of dollars and should include a calculation of the break-even point (BEP) which is the date when the investment begins to generate a positive return. ROI should be recalculated 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 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 fresh the ROI at each key project decision point (i.e. stage exist) or at least yearly.