Using System Tools in Projects 438 v1 PDF

Using System and Tools in
Projects
Sub Code 438
Developed by
Prof. Sathya Tirumala
On behalf of
Prin. L.N. Welingkar Institute of Management Development & Research
!
Advisory Board
Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe 2. Dr. B.P. Sabale 3. Prof. Dr. Vijay Khole 4. Prof. Anuradha Deshmukh
Group Director Chancellor, D.Y. Patil University, Former Vice-Chancellor Former Director
Welingkar Institute of Navi Mumbai (Mumbai University) (YCMOU)
Management Ex Vice-Chancellor (YCMOU)
Program Design and Advisory Team
Prof. B.N. Chatterjee Mr. Manish Pitke

Dean Marketing Faculty Travel and Tourism
Welingkar Institute of Management, Mumbai Management Consultant
Prof. Kanu Doshi Prof. B.N. Chatterjee

Dean Finance Dean Marketing
Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai
Prof. Dr. V.H. Iyer Mr. Smitesh Bhosale

Dean Management Development Programs Faculty Media and Advertising
Welingkar Institute of Management, Mumbai Founder of EVALUENZ
Prof. B.N. Chatterjee Prof. Vineel Bhurke

Dean Marketing Faculty Rural Management
Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Director Intraspect Development Faculty Healthcare Management
Manager Medical Air India Ltd.
Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Dean IT/Business Design Faculty Hospitality
Welingkar Institute of Management, Mumbai Former Manager-Catering Services Air India Ltd.
Prof. Sandeep Kelkar Mr. Anuj Pandey

Faculty IT Publisher
Welingkar Institute of Management, Mumbai Management Books Publishing, Mumbai
Prof. Dr. Swapna Pradhan Course Editor

Faculty Retail Prof. Dr. P.S. Rao
Welingkar Institute of Management, Mumbai Dean Quality Systems
Welingkar Institute of Management, Mumbai
Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Dean Banking Dean Marketing
Mr. P.M. Bendre Course Coordinators

Faculty Operations Prof. Dr. Rajesh Aparnath
Former Quality Chief Bosch Ltd. Head PGDM (HB)
Welingkar Institute of Management, Mumbai
Mr. Arun Gokhlay Ms. Kirti Sampat

Faculty International Business Assistant Manager PGDM (HB)
Ex Director of Quality and Safety OTIS Elevators Welingkar Institute of Management, Mumbai
Mr. A.S. Pillai Mr. Kishor Tamhankar

Faculty Services Excellence Manager (Diploma Division)
Ex Senior V.P. (Sify) Welingkar Institute of Management, Mumbai
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NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY. 1st Edition, January 2015
CONTENTS
Contents
Chapter No. Chapter Name Page No.
1 Project Management Process 4-30

2 Roles in Project Management 31-71
3 Essential tools for Project 72-108
4 Tools for Project Initiation 109-126
5 Successful Planning and Management Tools 127-155
6 Tools for Project Control 156-180
7 Tools for Project Closure 181-203
8 Project Management Software 204-229
9 Systems and Tools Consideration 230-257
10 Project Risks, Success Factors and Failures 258-287
! !3
PROJECT MANAGEMENT PROCESS
Chapter 1
Learning Objectives
The objectives of this chapter are to give an insight into:
Introduction to Project Management

Project and its Characteristics
Project Management
Phases in Project Management - Four Phases
Project Initiation Phase
Project Planning Phase
Project Execution and Control Phase
Project Close-Out Phase
Examples of Projects
Project Management Systems and Tools with Features
Systems and Tools in Projects
Project Management Systems - Present and Future
Structure
1.1 Introduction
1.2 Projects
1.3 Project Management
1.4 Project Management Phases
1.5 Examples of Projects
1.6 Project Management Systems and Tools
1.7 Systems and Tools in Projects
1.8 Project Management Systems - Present and Future
1.9 Summary
1.10 Self Assessment Questions
! !4
1.1 INTRODUCTION
Project management process is the process of managing the activities to

achieve the project objectives. It involves tasks related to the execution
and performance of the project. Every organization works towards
achieving its objectives. Organizations are faced with tasks to adapt to the
ever changing environment or problems may arise in an organization.
These could be related to addition of new line of products, capacity
expansion, purchase of fixed assets, implementing a new ERP system,
which are just a few examples that come up of an endless number of
things that management must take care to survive. These issues may have
alternative solutions and the organization has to decide to implement the
best solution. Projects are generally established to carry out these changes
and someone is always responsible for each project's successful
completion.
Project Management is the process of achieving these project objectives

through a set of activities that start and end at certain points in time and
produce visible deliverables or benefits. Project management process
relates to the activity of planning, organizing, scheduling, motivating and
controlling resources and procedures to achieve specific goals.
A project is a temporary endeavor designed to produce a unique product,

service or result with a defined beginning and end. It is undertaken to
meet specific or unique goals typically to bring about value addition or lead
to a beneficial change. Projects are usually time-constrained and face
constraints in terms of resources like funding, expertise or deliverables.
Projects are temporary in nature as compared to the organization's usual
line of business which is based on functions and activities that are mostly
repetitive, permanent or semi-permanent. Both projects and routine
business require different management techniques, hence the need for
Project Management Process which involves development of plans,
programs, strategies and distinct technical skills to achieve the project
objectives.
The primary challenge of project management is to meet the project goals

and objectives while working with an environment of constraints like scope,
time, resources, skills, quality and budget. The secondary and more
ambitious challenge is to optimize the allocation of available inputs and
utilize them to meet pre-defined objectives.
! !5
Project management process entails leading a team of skilled and capable

people in implementing a series of related activities that need to be
accomplished on a specific date with several limitations. Because of its
nature, planning and coordinating all these activities requires a process
approach and use of systems and tools enable effective and efficient
accomplishment of project objectives.
1.2 PROJECTS
A project is defined as a planned set of interconnected and unified tasks

which are to be executed over a predefined fixed period within certain cost
and other restrictions. These are related activities to achieve an objective
that has a start and finish. Nearly every activity within an organization
could be labeled as a project. All projects aim to resolve an issue, but some
projects are established to determine and define feasible alternative
solutions to problems. Projects possess unique characteristics and varying
levels of importance to the organization depending on their nature and
impact on other areas.
As per PMI, project is a temporary group activity designed to produce a

unique product, service or result. A project is temporary in that it has a
defined launch and conclusion time; and therefore defined scope and
resources. And a project is unique in that it is not a routine operation, but
a specific set of operations designed to accomplish a singular goal. And all
must be expertly managed to deliver the on-time, on-budget results,
learning and integration that organizations need.
The development of software for an improved business process, the

construction of a building or bridge, the relief effort after a natural disaster,
the expansion of sales into a new geographic market - all are projects.
It is prudent to list down assumptions about the project, evaluate and

assess the risks, do a cost benefit analysis and keep contingency plans
ready. Budget, scope and schedule may need to be monitored closely to
deliver the project objectives within the committed time and of the
expected quality. These elements need to be managed in a systematic
manner with the help of project plans to identify the roles, tasks,
completion schedule and resources needed.
! !6
Some of the development projects require a different approach and a new

way of managing due to the complexities and intricacies involved. Also the
issue of limited resources and increasing demands from all stakeholders
lead to review of current management methodology. The complex project
can be de-constructed into manageable and interconnected processes since
it provides an opportunity to the project manager to better control the
outcomes of the project and manage the challenges that arise in later
stages of the project A systems approach.
1.2.1 Characteristics of a project include:
Objective: Each project is initiated with an objective in mind. Projects are

formed to accomplish a specific goal and achieve a result or benefit. End
results have definite goals involving time, cost, manpower, performance,
quality among other aspects.
Schedule: There is a point in time in which the projects must be

accomplished. There is a well defined beginning, end, schedule and
approach to be on track and meet the objective.
Complexity: Some projects are extremely complex due to its nature and
requirements. It is imperative to identify the level of complexity of the
project and confirm if technology and resources are available to achieve
the project objectives.
Size and Nature of Task: There are some enormous projects which run
into months and years; for these projects there is a step-by-step plan of
action. Project Management Systems and Tools are used to identify the
unique tasks and allotted to the appropriate personnel.
Resources: Other than cost, projects involve resources in terms of labor,

personnel, equipment, materials, facilities, etc. Use of resources typically is
specifically allocated to the project work. Sometimes a team of people are
allocated to the projects that form the project team along with project
manager.
Organizational Structure: All projects are for meeting organization

objectives. Hence there is the concept of 'meshing' of project requirements
into the existing organization. Although the project team is separate and
identified, eventually they are part of the bigger organization structure.
! !7
Planned approach: Projects follow an organized and planned approach.

There is a well defined project plan with a timeframe to ensure deadlines
are met and red flags are addressed.
Defined outcome and deliverables: Projects are begun to meet

deliverables, every task is undertaken to meet the end result. Success of a
project is based on its outcome at the end of the project duration.
Budgets: Approval of budget is required to begin the project. These

budgets are compared against actual and variations are analyzed to
determine project go ahead. This mainly depends on expectations of
results in future and impact on organization.
Communication Systems: In order to maintain transparency and control

the deviations, the project progress and failures must be communicated.
Regular information channels are to be established and these must be
structured to handle problems through the typical lines of authority.
Each project is unique in terms of the purpose of the project, problems that
arise, priority of the project for top management, resources assigned to it,
environment in which it operates, impact of success of the project and the
project manager's attitude and working style used to guide and manage
project activities. Hence the organizational structure for the project must
be designed to fit within that project's operating constraints. Changes in
priorities, availability of resources, laws, regulations and other
contingencies may lead to change in the organizational structure of the
project during the project life cycle. Regardless of the project management
structure in place, top management must realize that a balance between
available resources and meeting the objectives of the project is of utmost
importance if project management is to be successful for their
organization. Various project management systems and tools help in
managing the project and facilitate its success.

! !8
1.3 PROJECT MANAGEMENT
Project management is the art of bringing together the tasks, resources

and personnel required to accomplish the organization's goals and
objectives within the financial budgets and the specified time constraints.
In the past organizations who had to accomplish a project typically

assigned the project and the required resources to an employee or
individual who was appointed as project manager and assumed they were
using some form of project management to complete the project. There
was very little implication of any form. The basic concepts of project
management are still the same and simple, however applying these
concepts to the current environment is not so simple. Project Management
existed informally earlier, however now it has become more formalized and
tools and systems are deployed to effectively and efficiently manage
projects.
As per PMI, Project management is the application of knowledge, skills and

techniques to execute projects effectively and efficiently. It's a strategic
competency for organizations, enabling them to tie project results to
business goals - and thus, better compete in their markets.
PMI (Project Management Institute) is the world's largest not-for-profit

membership association for the project management profession. Their
professional resources and research empower more than 700,000
members, credential holders and volunteers in nearly every country in the
world to enhance their careers, improve their organizations' success and
further mature the profession. PMI's worldwide advocacy for project
management is reinforced by their globally recognized standards and
certification program, extensive academic and market research programs,
chapters and communities of practice, and professional development
opportunities.
Project management uses a set of tools and methods to direct the use of
varied resources for the accomplishment of an exclusive, complex, one-
time task within the given constraints of time cost, and other factors. Each
task is executed as per the project plan and these tools and techniques
used are structured to fit the task environment and life cycle of the project.
! !9
Use of project management technologies tends to minimize distractions to

routine business activities of the enterprise in many cases. Since project
manager and project team members are responsible for project activities,
the day to day functioning of the business is not much affected. Every
project has its own requirements in terms of skills, resources, funds and
hence project management is unique for every project endeavor and
subject to change as it progresses to different stages of the project life
cycle.
1.4 PROJECT MANAGEMENT PHASES
The project management process is a planned effort and can be

categorized into four phases: Project Initiation, Project Planning, Project
Execution & Control and Project Close Out.
Project
Management
Phases
Project
Execution & Project
Project Initiation Project Planning
Control Close Out.
!
1.4.1 Project initiation phase:
Here the scope of the project is defined. Once it is clearly and explicitly
spelt out what the project is intended to achieve, it can be a yardstick for
the quality of what is actually achieved at the end of the project. Cost,
resources and time to be spent can be estimated and budgeted by the
organization to complete the project. The purpose of this phase is to
develop a high level project plan and conduct a risk assessment for
assessing the strategic viability of the project. Due emphasis is given to the
project sponsor's strategic requirements as well as immediate needs.
The high level deliverables form the basis for the Project Charter and for
estimates. Project charter is a statement of the scope and objectives in a
project. It serves as a focal point throughout the project and can be a
! !10
baseline document to assist with scope changes. It provides a preliminary

delineation of roles and responsibilities, outlines the project objectives,
identifies the main stakeholders, provides terms of reference and serves as
a guide for authority and responsibility of the project manager.
Key Features of Project Initiation Phase:
Understand the Customer: It is essential to get an understanding of

the customer's strategic vision for the company and their objectives for
achieving the vision. Understanding the basic problem, asking open-
ended questions, reviewing the proposed solution, determining alternate
solutions and getting hold of any documentation and company literature
that might be applicable to the project are some of the key activities
relevant to this area.
Establish rapport with customer: Expectations of the customer are

discussed and a relationship is developed with the customer and project
sponsors. Understanding the customer's organization will help to foster a
stronger relationship between the customer and project team.
Develop solutions: Project Manager develops solution with the help of

Subject Matter Experts and Technical Experts depending on the
complexity of the project. Review of potential risks and understanding of
the concerns are pertinent in this phase as it is
Formation of Core Project Team: Project Members need to have

necessary skills to implement the tasks. Training may be needed for
some members. Project Manager will have to ensure that team is
organized, working well together and available for executing the activities
on time. This involves organizing core team members to assist in
carrying out the project initiation activities.
Estimate Cost: It is important for Project Manager to communicate the

estimated costs to the client as accurately as possible. Tracking of costs
happens during the project progress hence expenses incurred must be
documented. Initial estimates that cover all types of costs will help to
prevent cost issues at a later stage.
! !11
Establish project management environment: Here the concern is
with developing team communication, reporting procedures, job
assignments, roles definition, project change procedure, how project
funding and billing will be handled. Establishing the project management
environment will enable to focus on the use of appropriate systems and
tools that assist in Project Management.
Develop Project Charter: This contains a definition of the project's

vision. It also contains the objectives, scope, assumptions, constraints,
budgets, costs, schedule, risk assessment for the project. A high level
work breakdown structure maybe defined to organize the scope of the
project.
Review with Project Owner: The project charter is reviewed with the
Project Owner who gives the go ahead signal to the Project Manager to
proceed with the Project Planning phase.
1.4.2 Project Planning Phase:
The purpose of the Project Planning Phase is to have an accurate plan and
schedule. The infrastructure that is established during the planning phase
is critical to effectively manage the project's success. At no other time
during the life of the project is the success of the project more vulnerable.
During this phase, infrastructure is established and responsibilities are
assigned. The project team will break down the high level structure into
measurable tasks, communications are established, expectations will be
developed and presented to the project team. Scope of the project, team
size, impact, risk assessment, visibility will determine various tracking
systems and use of tools for the project.
Key features of Project Planning Phase:
Detailed Planning Meeting and Work Session: The project manager

will hold a detailed planning meeting once the project team is established
to introduce the project. The team continues to work on completing the
Project Charter. In order to hold a successful detailed planning meeting
the project manager must determine the following: meeting attendees,
agenda, project office location, equipments like projectors, white boards,
take down meeting minutes, etc.
! !12
Project scope, alternatives, and feasibility: Understanding of the
content and complexity of the project is a fundamental activity. Items
include expectations, goals, problems, opportunities, success criteria,
team member responsibilities, schedule, budgets, results expected,
completion measure and the schedule for communication plan.
Task Allocation: The team should work on defining the scope and
objectives by creating a detailed Work Breakdown Structure (WBS).
Detailed WBS will help to establish responsibilities and roles for each
individual by sub dividing tasks and serves as a basis for planning.
Resourcing: Resource Plan is created to estimate resource needs and

allocate tasks to appropriate resources. Resources include personnel and
specific skills required to perform the job. This ensures resource
utilization is effectively done. Successful project management is
dependent on the leaders and team members who manage the key
functions. Hence it is pertinent to work out staffing requirements.
Management is not a one-person operation; it requires a group of
individuals dedicated to the achievement of a specific goal.
Preliminary schedule: Maintaining a schedule ensures time estimates

are assigned to each activity in the work breakdown structure to identify
the target start and end dates for the project. The project activities are
broken down into tasks to ensure tasks are performed serially to lead to
project progression.
Communication Plan: Communication procedures and protocols

between management, team members, and the customer are
established. Communication throughout the project is critical to project
success. The project manager should be the central point of
communication for all project related information exchange. During
project initiation, it is important to establish a communication network
that is based on the project owner's expectations to meet this objective.
The project manager develops guidelines for the Communication Plan
which is one of the supporting knowledge areas needed for project
success. It is often one of the areas that is most often neglected or taken
for granted by the project manager and project team. This part of the
planning phase is critical for implementing an infrastructure for tracking
and controlling the project during the entire project life cycle.
! !13
Determining project standards and procedures: The specification of
how various deliverables are produced and tested by the project team is
determined. Status Meetings and Management Review Meetings are held
to get project status, tackle issues that surface suddenly, for updating
action items and making changes as necessary.
Risk Assessment: Potential sources of risk are identified, they are

evaluated for consequences and mitigation procedures are developed.
The severity of impact determines the significance of the risk.
Quantitative methods might include monetary costs or time estimates
that can be associated with the impact. Qualitative methods may be
simply high, medium, or low estimates. Risk Management Plans are
developed to have mitigation strategies and contingency plans depending
on the severity of the risk.
Creating a preliminary budget: Summary of the planned expenses

and revenues related to the project are developed. It is in the best
interest to consider all costs relevant to the project execution however
small or big they may be.
Developing a Statement of Work: This document will list the work to

be done and the expected outcome of the project. This is a significant
documentation for the project team since the SOW usually includes
comprehensive requirements, pricing, regulations, governance terms and
conditions and is a legal document.
Setting a baseline project plan: This should provide an estimate of

the project's tasks and resource requirements. A baseline is the basis for
determining how the project is progressing according to plan. The
baseline is the original schedule, budget, project plans plus any changes
approved by project owner. Comparison of the actual project data can be
done against the baseline to determine if the project is on track. The
effort taken during the project planning phase is directly reflective of the
project's ability to reach a successful conclusion.
! !14
1.4.3 Project Execution and Control Phase:
Project Management is 20% planning and 80% execution and control. This
is the longest period where the project is carried out and the progress of
the project is tracked. Monitoring the project team is a continuous activity
to accomplish project goals. Executing, monitoring and controlling project
progress is significant to spot issues and solutions as early as possible to
get the project back on schedule to meet the objectives. Systems and Tools
are used in Project Execution and Control Phase to ensure that each
deliverable achieves the desired results, in the defined period, within the
designated cost, and using the allocated resources. The project manager
ensures that all the plans are in place and updated to be implemented as
soon as the circumstances necessitate.
Key features of Project Execution Phase:
Execute the baseline project plan: Project manager executes project

activities, assigns resources, ensures training and keeps the project on
track to ensure project deliverables are accomplished and baseline
standards are maintained.
Tracking and Monitoring: A project baseline is established which is the

standard by which progress is monitored. Variation to the baseline might
require contingency plans to keep the project on track. Some activities
happen simultaneously and may be hard to control. To be involved with
all phases of the project, the project manager establishes a project
review strategy and communication plan to collect up to date and
accurate feedback. Gantt and PERT Charts are some tools that can be
used to monitor and track project progress.
Change Management: Sometimes issues arise during project that could

cause change in scope to occur. Solution is recommended after impact of
the scope change is assessed to examine the project schedule, tasks,
cost and other areas that will be affected by the change. The project
manager and key team members inspect Change Request Form for its
schedule/cost impact. After the project manager discusses with the
project owner about the scope change request and related impact, the
project owner must sign the scope Change Request Form and either
approve or reject the changes. Scope Change Request Form duly signed
is retained in the project files for future reference.
! !15
Project Documentation: The project management office generates
reports relating to quality issues and conformance. This is in nature of
project status report and " become one of the top priority risks Quality
Audit.
Taking corrective action: To match actual progress with the plan,

corrective actions are developed to account for project costs, schedule,
quality, technical and/or performance as needed.
Conflict Resolution: The project manager should proactively work with

the project team to avoid conflict. Conflicts can be minimized or
eliminated by regular communication of the project objectives to the
team members.
Adapting resource levels as necessary: Due to the temporary nature

of the project itself, team members may experience conflicts within their
functional organizations for their time. There could be personality
conflicts among the team and difference associated with the incredible
industry growth. These clashes are to be sorted out by adapting
resources as necessary.
Adjust Schedules: There are several ways to update the schedule. The
goal is to provide adequate details to accurately compare the current
project status to the planned target. Sometimes actual start and end
dates including completion dates are reported imprecisely. This is
because of the supposition by the person providing the status of progress
that it is only important to report completion of the work. Actual progress
information is required as accurately as possible to analyze the current
status of the project and for project benchmarking. Project managers
should ensure to update their scheduling tool and project plans at least
on weekly basis.
Changing the project scope: Project managers need to understand

that they are in an environment that is characterized by constant and
rapid change. This dynamic environment can be due to changes in
project scope, shuffling of project and functional personnel due to new
priorities, other unforeseen organizational and environmental changes.
The success or failure of a project and project manager is often
measured by the ability to deal with change and hence project managers
! !16
must be willing to embrace change, evaluate project changes as

requested and reschedule the project as necessary.
1.4.4 Project Close-Out phase:
After major project execution is done, it is appraised and outstanding work

if any is to be completed. At this closure phase, all project activities are
completed and deliverables are finalized. If any testing is part of project
plan it is completed and final review is done. Plan of action for closure of
the project is worked out and documentation is completed. Customer
accepts the final project deliverable and confirms completion. It is prudent
to capture best practices and document them for future reference and work
towards continuous improvement at individual and team levels.
Key Features of Project Close-Out Phase:
Acknowledging achievement and results: It is important to

acknowledge project success and appreciate team's efforts in achieving
project results. The project manager can hold a celebration for the
project team where the entire team gets opportunity to participate in the
planning of the event. Such a team celebration provides an excellent
opportunity to felicitate contributions by individuals / teams and to
present awards if any. The celebration enables to close down the project
for all project team members and also serve to foster a team-oriented
culture that brings a sense of belonging and pride which culminates in
achieving success on future projects.
Closing down the project: The project manager is responsible for the
administrative closure at the end of the project. It is key to notify all
related parties of the completion of the project. All project
documentation and records are finalized so that final review of the
project can be conducted.
Closing the customer contract: The final activity is to ensure that all
contractual terms of the project have been met. This includes closing out
all customer and client contracts, paying and matching up invoices,
conducting performance reviews for the team members and obtaining
appropriate signatures to confirm completion of the project.
! !17
Lessons learnt: Every effort is made to avoid the mistakes and pitfalls
experienced in prior projects and the teams are geared towards a well
organized project implementation. Reference to prior documentation
helps to estimate the time for various tasks, the expertise and skills to be
sourced, any uniqueness or exclusivity arising on the project and
prepares the team to perform better in future. The project manager is
responsible for developing the lessons learned for the project with
coordination of the project team members and project owner. All project
information should be sent to the repository for future reference, if
needed. Project information includes the project notebook (with all
project plans, schedules, SOW, contracts and meeting minutes) and the
lessons learned. This information will be useful on future projects to
assist other project managers and team members by minimizing and
eliminating past issues.
Conducting post project reviews: The strengths and weaknesses of

project deliverables are determined along with the project management
process and tools used. Learning from the project experience is helpful to
reviewing the project process and systems applied and results from the
same. Feedback of the project participants and customer is critical to
measuring the success or failure of the project. Post implementation
meetings and/or case study documentation are important means to
capture the lessons learned to help steer future projects from pitfalls.
1.5 EXAMPLES OF PROJECTS
Projects can be defined as temporary rather than permanent systems

within organizations to accomplish particular tasks by teams to function
within certain constraints. Some examples of projects are:
Educational Institutions
At educational institutions like schools and universities, a project can be an
assignment given to a student which requires more effort and independent
work. Students might have to work additional hours to do fact-finding,
analysis, refer to books from library/internet, research or from gathering
data empirically. They may submit a thesis or conclusion which is a written
report of their findings.
! !18
Engineering project
Engineering projects are carried out by companies with license to carry out
engineering works. This could be for design of power plants, industrial
facilities, transportation infrastructure, etc.
Construction Projects
The project produces an object like malls, buildings, warship, millennium
dome, customer call centre, IT system office.
Research Projects
A research project produces knowledge; it may be an expansion of past
work in the same field. The primary purpose of research project is to
discover, document, interpret social, business, economic, etc for
advancement find for the benefit of humanity. There are severd kinds of
research, scientific, technology, humanity, arts, military, intellegans.
Software projects
This is different from other projects since this is based on logical work and
there is some level of invisibility since customers cannot see the outcome
in the middle of the project. There is coding, configuration and other
technical work for which skilled programmers are hired. Hence the project
management system needs appropriate tools and management skills to
cater to these kinds of projects.
1.6 PROJECT MANAGEMENT SYSTEMS AND TOOLS
Various Tools and Techniques enable to manage a project effectively. There

is no need to reinvent the wheel every time a project is undertaken but
these tools help us to become more efficient. Each project is different
however there will be a better idea of how long the various activities on
this type of project will take in future.
The techniques listed above in the four key phases of project

management enable a project team to:
- Relate project goals to stakeholder needs

- Focus on client objectives
- Respond and address customer needs
- Assemble high-performance project teams
- Work across functional limits
! !19
- Develop work breakdown structures

- Estimate project costs, schedules, resources
- Work with constraints on time, resources, budgets
- Risk Assessment Procedures
- Set up a robust project control and monitoring system
- Achieve successes
- Learn lessons for future
New or smaller businesses often take an informal and, in some cases,

haphazard approach to managing projects. The goal is usually just to get
the project or product out the door as quickly as possible. And when there
is a team of few people, a formal process can slow down output. But as
business grows there will be a point where multiple projects happen on
different timelines. To be as efficient as possible with time, resources and
money it is important to have a structure to the management and flow of
projects.
Hence the need to understand basics of project management and use the
systems and tools to help with each step of the process. A project
management system is useful to manage all the projects, milestones and
tasks associated with the activities in the business on a daily basis. It
functions as the center point of the virtual office for enterprises.
1.6.1 Which and What System is to be used?
There is a wide selection of project management systems and tools

available. Projects are different depending on the kind of industries and
business needs. Traditional project management systems are used for
projects that implement the standard approach like initiation, planning,
execution, monitoring and close out. Agile project management systems
divide roles and responsibilities among more than one team member on
the project. They are less process driven and more adaptable to the
dynamic, demand- based environment of the business needs.
There are many comments that there is no "perfect" project management

tool or system. Honestly, there is very less likely hood of finding one
system that has every feature. It is advisable to spend time in choosing
and testing out different systems until we can find the one that works best.
! !20
1.6.2 Features of Project Management Systems
Project management systems and tools are techniques that assist in the
organization with its project throughout its life cycle. Most project
management systems provide the basic features like:
- Project visibility: View of project as a whole and provides facility to

accurately predict the results of project constraints (scope, time, costs,
etc.).
- Resource visibility: Availability of resources for the project which

ensures allocating resources appropriately and prioritizes work.
- Metric visibility: Enables to understand the current status of elements

of a project in relation to the end goal and objectives.
- KPI visibility: Key Performance Indicator visibility provides improved

insight into the underlying measures of health and performance of the
business to make better decisions accordingly.
1.7 SYSTEMS AND TOOLS IN PROJECTS
Project management is a demanding task with many interrelated and

complex responsibilities. Luckily, there are many tools available to assist
with achieving the tasks and completing the responsibilities. Some project
management requires software, while others can be used manually. Project
managers should go for a project management tool that best addresses
their requirements and project needs. No one tool takes care of all the
project management needs however there is a wide variety and there are
some good tools that are very useful. Here some of the tools are briefly
discussed; this is not an exhaustive list.
Project Management Framework: A PMF supports the implementation

of project management in an enterprise. It consists of project lifecycle,
project control cycle and tools to facilitate execution of the project. The aim
is to establish a common framework by streamlining use of systems and
tools for key project management processes.
! !21
PERT known as Program (or Project) Evaluation and Review

Technique: PERT is a planning and control tool used in project
management, which was designed to define, analyze and control the tasks
involved in completing a given project. PERT is a network model to analyze
the tasks involved in completing a given project, the time needed to
complete each task and to identify the minimum time needed to complete
the total project. It allows for randomness in completion time for the
activities and has the potential to reduce both time and cost required to
completing a project. PERT was developed in the late 1950's for the U.S.
Navy's project and was primarily developed to simplify the planning and
scheduling of large and complex projects.
CPM Critical Path Method: CPM is a project management technique

based on mathematical calculations which was developed in the late1950s
and is used for scheduling project activities. It can be used in projects
where there are interdependent activities and in areas of engineering,
construction, plant maintenance, aerospace, research, defense, software
development. In the critical path method, the critical activities of a
program or a project are identified which have a direct impact on the
completion date of the project.
Critical path is the sequence of activities from start to end of a project.

Many projects have only one critical path however some projects may have
more than one critical path depending on the flow logic computed in the
project. A delay in any of the activities under the critical path leads to
delay of the project deliverables ultimately. When such delay occurs,
project acceleration or re-sequencing of activities is done to meet the
deadlines.
Gantt Chart: is a tool to show start, elapsed, and completion times of

each task within a project using graphic representations and is helpful for
tracking progress. It was developed by Henry Gantt around the year 1910
and also shows the dependency between activities. These charts serve as a
valuable budgeting tool and can show amount allocated versus amount
spent.
Work Breakdown Structure (WBS): is a project tool to help plan

effectively by breaking detailed key tasks and activities into smaller and
manageable components. This enables better scheduling and costing for
the project. WBS is like a tree structure starting with the end objective and
! !22
sub dividing it into units which include all steps necessary to achieve the
objective.
Resource Histograms: This is a chart that shows the number of

resources assigned to a project over a period of time. These are
represented in the form of bar charts and serve the purpose of resource
planning and allocation as well as coordinating staff needs for project
tasks.
Project Management Software: There is various software available in

the market which caters to Project Management and these are integrated
packages providing various functions for managing projects. There is SaaS
online project management software to other open source project
management tools; we will discuss them later in this book.
1.7.1 How systems and tools for project management differ?
Projects can be small or big, simple or complex. Differences between

systems and tools used in projects can be classified according to
differences in:
Complexity of project: High value of projects can sometimes be less

complex than low value projects depending on the level of complexity in
the tasks.
Risks involved: Can be quantitative and qualitative. Quantitative risks

involve monetary value but qualitative risks like loss of reputation or
damage to environment are very difficult to define in monetary value and
can cause bigger losses.
Budgets: Available and potential spending capacity determines the tools

and techniques to be used by project management.
Industry: The nature of the industry plays a role in determining the

project management system. Entities around the world face some
restrictive and regulated environment depending on where the business is
operating like pharmaceuticals, banking, medical services, etc.
Client: Finally client satisfaction is a key factor and determines the level of
success of any project management system.
! !23
The relationship between these is not always simple. Low value projects
can be complex and might involve significant risks to the business. Also a
construction industry might be into building a complex mall with a high
budget and high risks attached; but they might have a well-established
project management method due to being in the construction business for
many decades; so the level of complexity might be lower than for a
software industry going through change management project with a lower
project budget. Project Assessment is carried out to ensure all factors are
considered and geared towards success. Below is a diagrammatic
representation of the factors in project management.
Complex
Client Risks
Industry Budgets
1.8 PROJECT MANAGEMENT SYSTEMS - PRESENT AND

FUTURE
Systems and Tools used in Project Management have evolved from simple
spreadsheets to advanced software. These tools continue to advance in
terms of user capabilities, integration and reporting. Project management
via the cloud and SaaS (software-as-a- service) are very productive
systems in today's scenario. These are different from on- site systems that
are only accessible locally. Web based project management systems allow
projects to be managed from any kind of device with internet access. This
enables centralization of project data and provides remote access to all
! !24
from anywhere in the world. As technological advancements are increasing

at rapid pace, projects have become more collaborative.
1.9 SUMMARY
This chapter deals with overview of projects, project management and

systems and tools used in project management.
Project management process is the process of achieving project

objectives by managing the set of activities that start and end at certain
points in time. The goal is to produce results and achieve success.
Project management process relates to leading a team of skilled

resources for implementing planning, organizing and scheduling tasks to
accomplish a purpose. Projects are temporary in nature and operate in
an environment with constraints to time, resources, budgets. The need
for Project Management tools is to have a process approach to facilitate
and optimize the allocation and use of available inputs to meet pre-
defined objectives.
A project is a planned set of interconnected and related tasks to be

executed over a predefined fixed period within certain restrictions.
Projects are temporary with a start and finish time and designed to
accomplish a goal. It is practical to note assumptions about the project,
do a risk assessment and cost benefit analysis to keep alternate plans to
meet emergency situations.
Characteristics of a project include objective, schedule, complexity, size,

nature of task, resources, organizational structure, planned approach,
defined outcome, deliverable, budgets, communication systems. Projects
are unique depending on their purpose, priority, environment, success
factors and project manager's working style. Top management must
ensure balance between available resources and objectives of the project
for success of their enterprise. Several project management systems and
tools help in managing the project and assist with its success.
Project management uses various systems and tools to direct the

application of varied resources for the accomplishment of an exclusive
one-time task as per project plan within the given constraints of time,
cost, resources and other factors.
! !25
Project management process can be classified into four phases: Project
Initiation, Project Planning, Project Execution & Control and Project Close
Out.
- During project initiation phase the scope of the project is defined and a
high level project plan is developed after risk assessment. Project
Charter which is a statement of scope and objectives is derived from
high level deliverables. Key Features of Project Initiation Phase include
understanding the customer and developing a good rapport with them.
Project Manager develops solution after review of client requirements.
Roles of team members are defined as a core project team is formed.
Estimated Costs is communicated to the client and project
management environment is established. Project Charter is prepared
and reviewed with the Project Owner who gives the go ahead signal to
proceed with the next phase namely Project Planning.
- During the Project Planning Phase, an accurate plan and schedule is

developed and responsibilities are assigned. Key features of Project
Planning Phase include having a detailed planning meeting by the
Project Manager to define the agenda and project scope. Detailed WBS
is created and with a Resource Plan to estimate resource needs to
allocate tasks to appropriate resources. Preliminary schedule is
maintained and communication protocols are established. Establishing
project standards, procedures, risk assessment, preliminary budgets,
Statement of Work and setting up a baseline project plan are all part of
this planning phase.
- Project Execution and Control Phase is the longest period where the
project is carried out, monitoring is done and the progress is tracked.
Key features of Project Execution Phase include executing the baseline
project plan and tracking the project. Change Request Form is
implemented for scope changes to project. Project Workbook and
reports take care of documentation needs and the project plan is
communicated to the entire project team and related parties. Key
Features of Project Control Phase include monitoring deviation from the
plan, risk control and taking corrective action. The project manager
proactively works with the project team to avoid conflict amongst team
members and adapting resources as necessary. Schedule adjustments
are sometimes required and the dynamic environment requires project
managers to adjust the project scope as well. The success or failure of
! !26
a project and project manager is often measured by the ability to deal

with change.
- At Project Close-Out phase, all project activities including testing are

completed, review is done and deliverables are finalized. Customer
accepts the final project deliverable, confirms completion and best
practices are documented for future reference. Key Features of Project
Close-Out Phase include acknowledging project successes and
appreciating team efforts. Project is administratively closed and all
related parties are notified of the completion of the project. It is
ensured that all contractual terms of the project have been met and
lessons learnt are appropriately documented. All project information is
sent to the repository for future reference and post project reviews are
conducted.
Some examples of Projects are assignments at schools and colleges,

engineering works, construction activities, research effort, software
projects, etc.
There are many systems, tools and techniques available to manage a

project efficiently and effectively. These help to get an idea of schedule of
various interrelated activities on the project and enable better planning
and focus on client objectives. Project teams can be formed with due
consideration to constraints on resources, strategies for risk assessment
facilitate control and monitoring and drive the project towards success.
A project management system is practical to supervise all the tasks and

document lessons learnt for future reference as well.
There is no "perfect" project management tool or system, hence it is best

to spend time in testing out different systems until decision is made on
the system to address project and enterprise requirement. Project
management systems and tools assist the project throughout its life
cycle and provide the basic features like visibility to project, resource,
metrics and KPIs.
Project management is a challenging task with many interdependent and

multifaceted responsibilities. The use of appropriate tools helps the
Project Manager to watch deviations, keep things in control and provide a
! !27
means to rely upon for managing deadlines. Some project management

tools are manual whereas some are software based.
Some of the tools commonly used are: Project Management Framework,

PERT known as Program (or Project) Evaluation and Review Technique,
CPM Critical Path Method, Gantt Chart, Work Breakdown Structure
(WBS), Resource Histograms, Project Management Software. There is
SaaS online project management software to other open source project
management tools.
Systems and tools used for project management differ in terms of the
complexity, risks and budget availability of the project. It also depends
on the nature of industry and client approvals.
Complex projects may have a low value but involve significant risks to
the business which means that relationship between the various factors
is not necessarily simple. Project Assessment permits review to make
sure all factors are taken into account and focus on success of the
implementation.
Over the last many years, Systems and Tools used in Project
Management have progressed from simple spreadsheets to advanced
software due to enhancements in user capabilities, integration and
reporting features. Cloud and SaaS (software- as-a-service) provide
project management with opportunities to collaborate from anywhere in
the world.
! !28
1.10 SELF ASSESSMENT QUESTIONS
1. Briefly explain the characteristics of a Project
2. Define Project Management and list out the phases involved in Project
Management with couple of key features of each phase.
3. Give 3 examples of different projects.
4. List some features of Project Management Systems
5. Name any 5 systems or tools in Project Management and describe them
! !29
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !30
ROLES IN PROJECT MANAGEMENT
Chapter 2
Learning Objectives
Various Roles in Project Management
Project Manager's Role
Role of Project Facilitator, Sponsor and Business Visionary
Various Stakeholders and Steering Committee
Project Team with its Team Lead and Technical Coordinator
Role of Business Analyst, Solution Developer and Solution Tester
Project Management Office (PMO)
Customers and Vendors
Portfolio Managers and Coach / Change Manager
Role of Specialists
Structure
2.1 Introduction
2.2 Various Roles in Project Management
2.3 The Project Manager's Role
2.4 Project Facilitator
2.5 Project Sponsor (Champion)
! !31
2.6 Business Visionary
2.7 Project Stakeholders
2.8 Steering Committee
2.9 The Project Team
2.10 Team Lead
2.11 Technical Coordinator
2.12 Business Analyst
2.13 Solution Developer
2.14 Solution Tester
2.15 The Project Management Office
2.16 Customers
2.17 Vendors
2.18 Portfolio Managers
2.19 Coach / Change Manager
2.20 Specialists
2.21 Summary
! !32
2.1 INTRODUCTION
The foundation for the success of any project depends on the people
working on it. Every project has a supplier side and a customer side to it
with their own list of goals and set of roles with responsibilities. In order to
avoid communication barriers and minimize errors on a project, it is best to
assign clear roles and responsibilities to each person in a project. Since all
the members work very closely with each other, it helps to define roles at
the outset of the project.
Project management follows a systematic process requiring co-ordination

with multiple departments and which has involvement from various
interested parties. Project management involves many phases like
initiation, planning, execution, monitoring, control, and close out. A series
of activities take place during each of this phase and it is accomplished
with the help of a good team with well defined functions and tasks. Project
management has developed over the years and involves several activities
before the project is completed. Objectives should be specific so they can
be measured and although there may be one major project objective, there
could be many minor objectives throughout the project life cycle.
An element of risk and uncertainty exists within the project environment

and for some complex projects there are more threats which can endanger
the possibility of successful completion. The purpose of project
management is to plan, execute, organize, monitor and control activities so
that the project is completed as successfully as possible within this
dynamic environment. Project Managers play an important role in the area
of project management however they are only one piece of the puzzle.
There are many different jobs and responsibilities within this wide gamut of
project management that are fundamental to successful project
achievement. Project managers often have the most visible role within an
enterprise on the project that they are working, but a project can often
involve many team members and other project management professionals
depending on the size and complexity of the project. All these members
play an important role in taking a project to successful finishing point.
The successful completion of large projects is often determined by the

ability of all members working on the project to effectively communicate
and work together. The success or failure of a project is eventually the
responsibility of the project manager, but there are a lot of people within
! !33
their business who can help the project to become successful: the project
sponsor, portfolio managers, the project management office, project
coordinators and many more.
2.2 VARIOUS ROLES IN PROJECT MANAGEMENT
Project management is the discipline of planning, organizing, managing

and controlling various resources to ensure successful completion of
project goals and objectives. It consists of:
Roles and responsibilities

Organizational structure
Processes
Collectively, these ensure that the people involved know what they are
doing, when they are doing it, why they are doing it. This sets out clear
lines of communication and reporting and supports the management with
expectations of result within the time, cost, quality and risk factors.
There are many different roles and positions within the field of project
management.
Each of them has its own set of duties and responsibilities. Having an
interdisciplinary team with the right mix of skills is essential to the smooth
and successful execution of any project. Team members may be able to
cover multiple roles or there may be a sub- team focused on a particular
area. Conversely, individuals may play one or more roles depending on the
dimension of the project.
There are many groups of people involved in both the project and project
management lifecycles. Resource allocation depends on various factors like
the expertise of the team members, the skill set, scope of the project and
budget available.
The purpose of having well defined roles with responsibilities is to provide

clarity to the client and project teams. Customer side members have
various important roles and responsibilities in every stage of the project
and they are directly impacted with the project's results. Supplier side
which is typically the project team have to meet deliverables to the client's
! !34
satisfaction and their performance within a set of constrains determine the

success of the project.
The role descriptions below represent typical position titles and primary
roles and responsibilities. The success of a project is very much dependent
on the clear definition of roles and understanding of associated
responsibilities by every team member.
2.2.1 Essential Roles in Project Management
Some of the essential roles are:
Project Sponsor/Owner - defines the scope and content of the project,

must be knowledgeable and well conversant about the organization and
the project to be able to make informed decisions. This person is typically
from the client site and will require significant support of all key
personnel.
Project Executive - is accountable for the success of the project. This

person is responsible for securing spending authority and resources for
the project. Ideally, the Executive Sponsor is the highest-ranking
manager in proportion to the project size and scope. This person should
have the status and authority to provide the necessary leadership and
must have the clear accountability for delivering the project outcome. For
example, a Senior Manager within technology for technology projects.
Project Manager - leads and manages the project team on a day-to-

day basis. Develops the project plan, manages resources and activities
and delivers to the plan within clearly defined boundaries by being
responsible for ensuring that the Project Team completes the project.
Project Team - delivers the required deliverables under direction from

the Project
Manager. Project Teams serve as a vehicle for the communication of

pertinent and relevant information on the development, implementation,
critical and ongoing activities of a project. The size and composition of
project teams is determined by the Project Manager or Project Leader
based on the size, complexity and type of project. Project team position
! !35
titles may also vary depending on what stage the project is and ensure the
skills and expertise of members is effectively utilized.
We shall look at most common roles within project management in detail in

the next sections. Below is a representation of the various roles and how
they are interlinked. Some projects may have more than the roles
represented below whereas smaller projects may not have the need to
have each of the roles.
! !36
Project
Sponsor
Project Business
Facilitator Visionary
Project Steering
StakeHolders Committee
Project
Manager
PMO Technical
Team Lead Co-ordinator
Business Solution
Analyst Developer
Solution
Specialists Tester
Coach/Change Customers
Manager
Portfolio
Vendors
Manager
!
! !37
2.3 THE PROJECT MANAGER'S ROLE
The Project Manager is responsible for all phases of the delivery of the
solution. This role is focused on providing high-level management direction
to the project team(s) and managing the working environment in which the
solution is developing. Project Manager coordinates to ensure that the
Project Team meets deadlines at all stages of the project. The Project
Manager develops the Project Plan with the team and manages the team's
performance of project tasks. The Project Manager can delegate the step
by step detailed planning of the actual delivery to the Team Lead and key
members of the Solution Development Team.
Sourcing for the role of Project Manager will depend on the project type
and ability and level of knowledge required. It is vital that the Project
Manager takes responsibility throughout the duration of the project from
start to finish. This must include both business and technical delivery
aspects of the project, from establishing the foundations of the project
through to the Deployment of the solution. The Project Manager is
responsible for the entire project including communication, status
reporting, risk management, escalation of issues, resolution of issues and
making sure the project is delivered on budget and schedule within scope
and constraints.
Project Managers require a varied skill set which range from leadership
qualities to communication skills to developing people. The hard skills of
project management are generally assumed to be a part of the aspiring
project manager.
Qualification for project manager jobs requires a combination of both

formal and informal qualities and on-the-job training.
! !38
2.3.1 Responsibilities of Project Manager
The success or failure of any project rests on the shoulders of the project
manager. Below are some of the key responsibilities of a Project Manager.
Planning - Solid groundwork and proper planning gets a project off to a

good start and sets the stage for resolving issues that come up later.
Inadequate time spent at planning stage is often quoted as a reason for
failure of the project.
Define the project objective - The PM must have a clearly defined goal
and establish a plan of action which will determine what the final
outcome will be and how success will be measured. If there is an unclear
direction from the project sponsors in any of the area, the PM is to
perform due diligence.
Obtain Client agreement - The PM must present the goals, plans and
outcome to the customer to arrive at a consensus. By following a "buy-
in" policy at key points at various stages of the project there will be less
tension and frustration.
Gain support of stakeholders - The PM must establish a working

relationship with the parties who have a vested interest in the project,
address any concerns they have and gain their commitment to the
overall goal. It is also the responsibility of the Project Manager to secure
acceptance and approval of deliverables from the Project Sponsor and
Stakeholders.
Develop a statement of work - The PM will formally document the

project factors including the project goal, resources and time-line for
completion of deliverables. This high level document will set the stage for
a detailed project plan.
Communicate a vision to the team - The PM must maintain

transparency and communicate clearly with the team members so that
they know the final vision. This enables the team to understand the goal,
impact, importance and how to accomplish the same. Setting the
appropriate tone in the beginning will ensure cooperation from team
members.
! !39
Communication - Contact with the senior management, project
sponsors, stakeholders, steering committee and the project governance
authorities is to be maintained with the desired frequency and formality
as necessary. The PM must ensure updating everyone on the project
status even if it is informally or at board meetings. Establishing and
following a communication plan will provide a means to prevent surprises
at inopportune times.
Develop detailed plan - Once the overall scope is established, the PM

will develop a detailed plan and involve the team members. This helps to
collaborate with the team and fosters a spirit of team work.
Set up project management information system - To track progress

the PM must employ the appropriate system and tools and ensure
respective team members know how to use it and are using it
appropriately.
Risk assessment and contingency plans - It is prudent to be aware

of inherent and other risk factors so that contingency plans can be
developed to tackle critical situations. Escalation of issues is to be made
to senior business or technical team as required. Handling problems
escalated from the Solution Development Teams is also to be taken care
of by the PM.
System Configuration - Managing the overall configuration of the

project is critical in IT or technology related projects. The PM is
responsible for managing business involvement with the Solution
Development Team to ensure the configuration meets their business
needs. There may also be a need to coach the Solution Development
Teams when handling difficult situations.
Organizing - The project manager is responsible for organizing people

and other resources in every phase of the project.
Allot resources to perform work - The PM finds team members from

internal sources or hires externally within the corporate hiring guidelines
so the project work progresses in accordance with the plan.
Motivating the teams - PM creates an environment which motivates

the team to work together to meet objectives. PM is like cheerleader and
! !40
sets the right tone and plans to keep the momentum even if there are
unexpected disruptions. PM needs to ensure to continue providing
ongoing motivation and direction to the team.
Maintain project documentation - The PM may be asked to produce

key information at any time and will have to access information to
resolve questions, hence the PM ensures that documents are maintained
in an organized manner. Depending upon the size of the project, if this
turns out to be a full-time job, the PM can delegate this role to a full time
team member.
Executing, Controlling and Monitor progress - During the middle

phase of the project which is also the longest phase, the PM has a very
important task of executing the project tasks, controlling activities and
deviations as well as monitoring project status. Mechanisms like status
reports, meetings, and informal updates enable PM to perform this
responsibility with ease.
Manage a change control process - The PM must allow for revisions

and adjustments within the plan and manage the change process
effectively
Develop corrective actions when necessary - Problems that come up

abruptly at any stage should be dealt with promptly. In fact issues are
expected in any project and these could range from falling behind on
deadlines to cost overruns, environmental changes or conflicts between
team members.
Hand off - Finally the business takes over the new process, product or
solution that was implemented by the project team. The PM will
coordinate the transition, ensure appropriate training and knowledge
transfer happens properly. While the PM monitors the results, there is
also the responsibility for analysis of project success.
The project manager is responsible for one or more projects that may be a
part of a larger project portfolio. To become a project manager there are
training programs that range from elearning to podcast and traditional
classroom to formal coaching and mentoring. Apart from gaining
certifications and degrees, it is imperative to have on-the-job training and
understand the role properly.
! !41
Apart from hard skills, project managers require soft skills like leadership,
communications, conflict resolution, problem solving, issue resolutions,
out-of-the-box thinking, and time management. There is no limit to soft
skills and the person who wants to be a project manager has to understand
the duties, enjoy the role and discharge the functions diligently. When the
concepts and skills are practiced on a daily basis, the person can become a
great project manager.
2.3.2 Why is the Role of a Project Manager crucial to the project?
Cricket teams have coaches to lead them to victory, ships need captains to
steer them safely to a destination, similarly project managers (PMs) are
needed to manage deadlines in dynamic environment within budget
guidelines and on timely basis. Without a project manager to lead the
project team, chaos reigns because there will be no single person to
monitor progress to meet the overall objective. In the absence of
coordination by a project manager, there is lot of confusion, duplication and
sometimes competing interests due to which project delivery suffers.
Having a project manager brings accountability, responsibility, leadership

and the dynamic changes. The PM is accountable for the results, he/she
accepts full responsibility for the outcome...its success or failure. The PM is
focused on the larger interest in realization of a defined goal which enables
the PM to provide leadership in planning, executing, organizing and
controlling the efforts and resources.
2.3.3 Leadership Qualities of a Project Manager
Leadership plays a crucial role in the success of any project; and the
project manager, as the leader of the team needs these skills. Some of the
key leadership qualities are listed below:
Establishing a Vision - A good leadership vision by the PM induces the

team to provide their best towards meeting milestones. It also helps to
get the work done to address client needs while inspiring the team
members.
People Based Approach - A successful leader places people first over

assets and other considerations. The project manager identifies people
characteristics, understand the proficiencies and competencies of team
! !42
members, and assigns work based on their strengths while helping them
to improve upon their weaknesses
Ethical Values - A good leader promotes ethical behavior through

honesty, trustworthiness and dependability and facilitates to ensure that
such traits permeate across the project team. The project manager also
needs to identify uncooperative behavior from team members and nip
such behavior in the bud.
Team Work - A good PM facilitates team work by engaging in true

dialogue, understanding ground realities, creates new opportunities for
the team members to aid smooth execution of projects and transform
into a learning organization.
Proactive Approach -Anticipating and taking charge to tackle issues

head on establishes power for the PM and reinforces the competence
amongst team members. It is crucial to resolve challenges, plan for
contingencies and deal with complexities promptly and in a timely
manner.
Active Involvement - A good leader helps the team members do

accomplish their tasks by inculcating a positive attitude to lead and guide
when required.
Participative Approach - Here the leader encourages team members to

share inputs and participate in the decision-making process by balancing
effectively. PM allows team to voice their opinions and views in decision-
making and gives them freedom and autonomy to do their job.
Delegation - Successful implementation of a project has team members

doing what they are required to do within tight deadlines in sync and
close coordination. The project manager needs good communication
skills to create awareness in team members of the importance of client
requirements, reward them and ensure consciousness of the implications
of non-compliance.
Establishing Accountability - A good leader provides team members

with the resources required for the work and gives the freedom to do the
work which makes the team member responsible and accountable for the
work.
! !43
Simplicity - The project manager's role should be to keep the job as
simple and basic as possible, without getting into unnecessary
complication.
Implementing the above principles allows the project manager to become

an effective leader.
2.3.4 The Many Hats of a Project Manager
The project manager wears many hats like taskmaster, problem solver and
motivational coach and has numerous responsibilities. While some are
standard and expected of any project manager, there are some surprises. A
project manager is not expected to work miracles but is responsible for
completing projects within deadlines and provide quality results. However,
an individual with the right qualities and the support of a good team will
find the experience very rewarding.
A project manager must use insight to plan how a project can be

realistically achieved. It's a challenging task to select people and utilize
resources; a project manager must set up and attend meetings with the
team on a regular basis. During friction, a project manager must gracefully
manage the situation so that all sides achieve a win-win. Being a People
Person is a necessity for any project manager and which can motivate the
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worker to change their way of working on the project for the success of the
team.
Once the project is complete, the manager must complete a thorough

review and correct any errors to ensure completion of responsibilities.
2.4 PROJECT FACILITATORS
They are individuals who help out with a project to complete tasks such as
documentation, paperwork, filing, communication, coordination with team
members etc. They work with a Project Manager and are sometimes
certified as Project Management Associates.
2.4.1 Qualities of Good Project Facilitator:
Good facilitators motivate the team to achieve the project outcome by

facilitating the process and progress of the project. Being an effective
facilitator may require the person to be detached while still handling the
team. Now what makes a good facilitator? Facilitating a team of people on
a project involves directing and guiding and the following skills help in
enhancing the role:
Open discussion about the project with all team members, keep them
involved and agree to disagree with them when required. This will gain
their trust and support at all times and respect for the facilitator.
Job rotation by changing individual's job tasks from time to time helps to
enhance team's skills. Seek expert advice for complicated assignments
and introduce them to the team if it's a new task. Ensure team members
are accountable to the facilitator and not upper management. Make sure
they understand the facilitator's role.
Listening and make sure team members are hearing each other.
Inculcate value of paying attention to other members as well.
Gather all the forces necessary to accomplish common objective,

structure a project and give it clarity for the benefit of team members.
Remain impartial and neutral but take a stand to resolve and find value
in each member of the team.
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Freedom in facilitating is important to ensure focus on a process so that
everyone can get on with the task at hand. Allow the team to learn from
mistakes and from one another.
Guide the team and give them freedom to think and analyze. Hold
meetings to assess the progress, give everyone a chance to provide their
input, be approachable.
People tend to resist change so talk to the team and communicate with
them the benefits of having a facilitator on board so that they are happy
to work with the facilitator.
Focus on the end result at all times, team project success is dependent
to a great extent on the guide it receives from the facilitator.
2.5 THE PROJECT SPONSOR (PROJECT CHAMPION)
The project sponsor (project champion) is the individual who identified the
business need for the project and acts as a liaison between the business
executives and the project manager. This role is similar to a project
facilitator, but on a higher level since Project Champion is the ambassador
between the project and the management. A project sponsor is chosen by
the management to ensure supervision of the project right from its
initiation phase to its completion phase.
A project champion acts as a single point of contact between the

executives responsible in executing a project, including the project
manager and the top management. The Project Sponsor may elect to
delegate any of the above responsibilities to other personnel either on or
outside the Project Team
2.5.1 Key functions of a Project Sponsor:
The demanding nature of the job responsibilities that a project sponsor

handles makes it vital to have a capable and good Project Sponsor. Project
champion is usually an employee of the company from the top
management team. Choosing the right project champion can be a factor in
determining the result of a project to a certain extent. Some of the traits
that the Project Sponsor possesses become an asset for the entire team.
Below are the key functions of a project sponsor (project champion):
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Launch the project - Responsible for ensuring funds and resources are
available for the project. Has a definite interest in the outcome of the
project, legitimizes the project's objectives, keeps abreast of key project
activities, is a decision-maker for the project and accepts responsibility
for seeing an improvement project through to completion.
Owns Business Case - Gain good understanding of the management's

needs and customer expectations, owns the Business Case for the
project and responsible for ensuring the ongoing viability of the project in
line with the Business Case and realization of benefits of the project.
Project Participation - Participates in project initiation, high level

planning and development of the Project Initiation Plan and Project
Charter. Approves scope changes, chairs steering committee on large
projects, signs off on major deliverables and approvals to proceed to next
phase in project. Modifies the scope of a project based on its status and
makes resourcing decisions.
Clears Obstacles - Supports the Project Manager, assists with decision

making for major issues and policy conflicts, clears obstacles and
responds rapidly to escalated issues,
Commitment - Be committed to the project, the proposed solution, the

approach to delivering it and taking over the delivered solution. Since the
project Sponsor holds a high position in the organization he/she should
be able to resolve business issues, make financial decisions and enable
progress at every stage of the project and be available for the complete
duration of the project.
Review Project results - Sets benchmarks for the project and

periodically reviews the project results in meeting the benchmarks set.
Ensures best practices are deployed by the team while executing a
project, focuses on obtaining continuous improvement while executing a
project. Reports to the top management about the status of the project.
Knowledgeable - Be well versed with the technical aspects which are

involved while executing a project.
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Inspire and motivate the team to get best performance at work,
should have the ability to handle the team and delegate work by
identifying the team's areas of strengths.
Change Management - The sponsor may need to be proactive and

address change management issues, step in to preserve the lessons
learned and any cultural shift that occurred. It is the sponsor's role to
lead the change within the organization and show everyone else what the
change truly means at all levels of the business. Sometimes the high
level objectives of the change initiative may not mean much to the
people at the grass roots of the organization. The sponsor needs to
understand the obstacles to change and work with key stakeholders and
managers to overcome any obstacles.
The project sponsor has general responsibility for keeping the project on
track toward a successful completion. To that end, the sponsor must
fulfill several key duties related to the project.
2.5.2 How Sponsors Select Projects
Risk Management and Project Selection go hand-in-hand. A complex and

high value project may be successfully implemented and deployed, but
may not lead to financial gain. Project selection is a result of several
decision-making factors like potential for profitability, life-cycle cost,
economic considerations, social responsibilities, etc. Due to limited funds,
budget and resource constraints, project selection are critical.
Another key decision making factor is the level of risk for which risk
management needs to be conducted during the process of project
selection. If some external factor is ignored during project selection, the
risks may be much higher. For example, the project involves implementing
a new software package. After spending time on careful project execution
and risk management, the project is completed successfully. At this stage
the project has to provide value to the project sponsor. However, during
project selection if the stakeholders did not consider the risk of technology
advancement it will make the software implemented obsolete. The entire
implementation would be an absolute waste. The money, time and
resources spent on this project could have been used on another project
with greater returns. Therefore, it is necessary to conduct Risk
Management and Project Selection simultaneously.
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2.6 BUSINESS VISIONARY
This is a senior level business role that is responsible for interpreting the
needs of the Business Sponsor, and ensuring they are properly embodied in
the Business Case. More actively involved than the Business Sponsor, the
Business Visionary typically provides the team throughout the project
lifecycle with tactical direction to ensure that the solution delivered will
facilitate to accomplish the benefits as per the Business.
2.6.1 Responsibilities of a Business Visionary:
Define the business vision for the project at large and translate it into a
working practice. Communicate the business vision to all interested
parties to ensure there is awareness. The Visionary owns the implications
of any business change from an enterprise side.
Monitor progress of the project and check if results are in line with the
business vision. This will ensure there are no surprises at the end of the
project.
Contribute to requirements, design and review sessions as the Visionary

has the strategies to chart out the path for the project. Approve changes
to the high-level requirements where required.
Ensure collaboration across stakeholder business areas so that the

alliance with project team is productive and serves the purpose.
Ensure resources from business side are available as needed to address

project team requirements. Key business personnel are called for by
project teams to get insight into business case and utilize their expertise
for planning, execution, testing and approval phases.
Act as an intermediary for any disagreements between team members to

ensure the project progresses smoothly and is on track
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2.7 PROJECT STAKEHOLDERS
The Project Stakeholders are all those individuals, units, groups, and
organizations that have a vested interest in the successful completion of
the project. They can influence the outcome of the project and are like
project sponsors, project team, investors, customers, client, vendors /
suppliers. They are an important part of the project life cycle and have a
profound impact on the progress and completion of the projects.
Identifying project stakeholders is a major area of any project and every
project manager needs to identify project stakeholders and verify their
needs and expectations of the project. Maintaining an effective
communication between stakeholders will ensure that everyone is on the
same page and helps in success of the project.
2.7.1 Types of Project Management Stakeholders:
Project stakeholders have a vested interest in the project's success or

failure and hence they are involved with the functioning of the project.
Stakeholders have to understand the project scope, its milestones and
objectives clearly to develop healthy relationships and decide on issues
impacting various stages of the project.
Internal and External Stakeholders:
Project Stakeholders can be internal or external. Internal stakeholders are

those directly influenced by the project, like owners, founders, employees
who are the ones who will utilize the result of the project implementation.
Project managers are also internal stakeholders because they are directly
involved in managing the project and have the responsibility for planning,
executing and completion of all phases of the project effectively and
efficiently.
External stakeholders are not a part of the organization or business, but

have an interest in the outcome of the project, like vendors, suppliers,
government entities, media and outside organizations. They supply desired
fundamentals for a project's success and are in constant touch with the
project's milestones, deliverables and goals.
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Primary and Secondary Stakeholders:
Primary stakeholders are directly impacted by the outcome of the project

and have a major interest in the success of a project. End Users and
Customers are examples of primary stakeholders; some project sponsors,
project managers, and team members are also primary stakeholders.
Project sponsors are responsible for keeping the project on schedule,
arrange funding and allocate resources for the project. Success of a project
is determined by the accountability, leadership and support of the project
sponsors.
Secondary stakeholders also help with project success. They do not have a
primary role but assist with administrative processes, financial and legal
aspects of the project. A good communication process between primary
and secondary stakeholders will ensure that everyone is on the same page
and working towards the same objective. Absence of communication can
crash the project.
Direct and Indirect Stakeholders:
Direct stakeholders are concerned with the day to day working of a project.
Team members are direct stakeholders as their work schedule is based on
project requirements.
Indirect stakeholders are not impacted by the project on a daily basis or

with any internal complications on a project. Customers and end users are
indirect stakeholders because their concern is with the completed project;
users will utilize the result of the project (new software / new plant /
additional asset, etc.).
Management of stakeholder responsibility is very significant to the victory

of a project. Hence it's important to identify the various stakeholders, their
interests, their concerns and their influence on the project and keep an
open and effective communication channel.
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2.7.2 Identification of Stakeholders:
This is the process of identifying all people and organizations having an

interest in the project and impacted by the project results. It is important
to identify the stakeholders, because communication channels are to be
established with all these individuals. Identifying all potential stakeholders,
the impact or support from stakeholders and their likely response in
various situations can assist the project team to a great extent.
Some stakeholders can have a negative impact to the project like

opponents to the project implementation. By asking project sponsors, team
members, customers, users and any other stakeholders these rivals can be
identified. They may have a great level of unofficial influence, hence it is
imperative to pass on the communication correctly to these sources.
Success in a project is not just about being on schedule, it is also

important to manage all parties. Effectively managing all stakeholders is
part of successful project execution. Following steps aid in managing them
well:
Identify all types of Stakeholders correctly to ensure appropriate

stakeholder management. Develop relationships with project's
stakeholders who will help in understanding their attitudes and key
interests.
Responsibility determination for every stakeholder ensures the project

tasks are directed at meeting their expectations which eventually means
a win situation for the entire team.
Effective Communication and information management with stakeholders

is to be maintained. Documentation must be updated which will keep
track of all activities and provide justification for each major action taken
which can be a future reference.
Value time of stakeholders as they have their own routine duties to

perform. Reach out to them when required and keep them involved for
all relevant areas.
Get support of stakeholders as the project would fail without their back
up.
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2.8 THE STEERING COMMITTEE
This includes representatives of management from the primary

organizations involved in the project management and control along with
any other key stakeholder groups that have interest and concern in the
project result. The Steering committee acts individually and collectively as
a project supporter, endorses policy decisions, approves project
deliverables and aid in issue resolutions. Further they are key to approve
scope changes and provide direction to the project progress. The steering
committee can be approached for resourcing and funding needs and is link
to executive management and project sponsors.
2.9 PROJECT TEAM
The project team is key and responsible for successfully carrying out the
tasks that are assigned to them by the project manager. Project team's
size varies depending on the type of project and consists of the Project
Manager, Team Leads and a variable number of Project Team members who
are brought in to deliver depending on the project phase and project plan.
Some teams can be very big which will require a great deal of coordination
to perform activities in the correct order and attain efficiency. Team
meetings are held regularly to keep everyone on the same page and
ensure project deadlines are attained. Each member of the project team is
a resource who performs tasks assigned as per the Project Plan and
directed by the Project Manager / Team Lead.
2.9.1 Characteristics of a Project Team
It is vital that members of project team are carefully selected to ensure

they contribute positively and effectively to the project. Each team
member's participation and performance yields client satisfaction and
appreciation for the result. Project Success is dependent on attitude,
performance and team work by all the members of the project team. A
project team may constitute members and consultants from one
department, multiple departments or even several different organizations.
The primary job of a project team is to work on the tasks as per project
plan typically for a specified time period.
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It is imperative to select the right people for every facet of the

project to achieve a positive outcome. Here are some of the
characteristics of a project team:
Team Player - Every member has to be a team player and complete

tasks with commitment.
Goal Oriented - Effective project team members will be focused on the

goal, ready to start work, willing and eager to meet deadlines and ensure
customer satisfaction.
Influence on peers - Members of an effective project team influence

their peers positively and convince key people to become involved with
the process.
Motivational - the project manager inspires the team to perform the

necessary tasks but it is vital that the project team members are also
able to enthuse and support one another as well as themselves. A
motivated team will have well defined project objectives and carry on the
project to completion.
Skills and Experience - Team members must have the skills, expertise,
experience, knowledge and familiarity necessary to complete the tasks
assigned to them. Determining the requisite project management skills
will help to have the best candidates on board.
Responsibility and Accountability - The members of an effective

project team are responsible and accountable to the project team and to
themselves as well. They are reliable and adhere to schedule to ensure
team success.
Communication - Team Members effectively listen to others thoughts,

opinions and ideas and communicate well with other team members as
well as management and other personnel.
Commitment - Team members who are committed to the project and

organization are highly effective, as they are likely to go above and
beyond when necessary. Committed team members believe in job
satisfaction
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Resourceful - They know how to make the best use of tools and
materials to succeed in their job. They can transfer thoughts and idea
with the client's perspective and provide innovative concepts to devise
solutions.
Supportive of the project - Effective project team members should be

supportive of the project, the organization and peers. A supportive team
will help team mates and work in cohesion to ensure that the project is
completed in a timely manner successfully.
Organized - Teams are organized to perform tasks and track the job
allotted. Organizational charts per project explain the roles and
responsibilities of each member.
2.9.2 Creation of teams:
!
Project teams are created for managing different tasks and activities in the
project. Team members are categorized in different groups and activities
are assigned to each team and its members depending on project
deliverables. Identify the teams that are highly performing and
collaborative to handle the complexity and the project issues. Creating
teams and assignment of roles and responsibilities to all these team
members is a fundamental step in meeting the project deliverables
successfully and smoothly.
The project team members are in a position to find out about the project
from users and hearing the concerns of employees. With regular and
frequent communication with project team members, the project manager
can remain well informed of ground level aspects and equipped for
potential issues. For a project to remain in control across all phases,
participation and contributions from all members is a must. For this a
! !55
strong project team is required with all members being aware of the of the
value addition of their active participation and involvement.
2.10 Team Lead
On larger projects, some Project Team members are Team Leads who
provide and technical and functional leadership, and sometimes maintain a
portion of the project plan. Team Leads have a leadership role and report
to the Project Manager to ensure that the Solution Development Team
meets its objectives.
The Team Lead works with the team members to plan and co-ordinate all
aspects of project deliverables at a detailed level. The most suitable person
is required to lead the team through a particular stage of the project. Team
Lead also perform Solution Development Team role like Business Analyst or
Solution Developer in addition to their team leadership.
2.10.1 Responsibilities of a Team Lead are:
Monitoring progress regularly on a day-to-day basis for all team

members and for all team activities
Reporting progress to the Project Manager with explanations for delay
Supporting the team to ensure deadlines are met, encouraging full

participation of team members and guide them to perform their defined
roles and responsibilities
Ensuring that team work integrates into the project plan, all testing and
review activity is carried out as per schedule
Managing risks and issues faced by the team, escalating to the Project
Manager as required, liaison between Project Manager and team
members
Hold daily team meetings ensuring they are focused and brief as well as
productive.
Responsible and accountable for team's deliverables and assist team

members with various problems or conflicts that might arise.
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2.11 TECHNICAL COORDINATOR
The Technical Coordinator has the Technical Plan responsibility for the
Project and ensures that the Solution Development Teams work to deliver
the results. This role ascertains that the desired technical quality standards
are maintained and rational solutions are implemented. All technical team
members are advised by the Technical Coordinator.
2.11.1 Responsibilities of Technical Coordinator:
Determining the technical environments

Approving and scheming the technical architecture
Advising and coordinating technical activities of the teams
Managing and controlling the technical configuration of the solution
Recognizing risks within the technical environment and architecture
Reporting regularly and escalating risks to the Project Manager as
appropriate
Ensuring adherence to appropriate standards and implementing best
practice
Supervising transition of the solution into live production environment
Resolving conflicts between technical team members
Providing support to the team on technical areas when required
2.12 BUSINESS ANALYST
The Business Analyst focuses on the relationship between the business and
technical roles, translating business needs to the technical solution team.
BA works towards ensuring precise and vital direction is provided to the
Solution Development Team on a day-to-day basis to devise their solution
which can be fully integrated with Solution Development Team. This role is
particularly relevant to IT projects.
The Business Analyst ensures that the business needs are properly studied,
correctly reflected in the specification, documentation provided to the
technical team and guides the team to generate the solution. Active
involvement of the business users is required for the success of a project,
hence it is imperative to ensure that the Business Analyst supports and
facilitates the communication between the key business personnel and the
developers.
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2.12.1 Responsibilities of Business Analyst:
Ensure all business needs and implications are considered and translated
to the technical team
Maintain clear and timely communication between Business personnel

and Technical developers
Manage development and approval of all documentation and products

related to business requirements and their interpretation
Ensure adequate testing of the solution with the other teams and
approval from business side
Be a good listener which will help to determine business needs and user
requirements which will be provided to the project team
Build rapport with the heads of departments in the business which will
make it easier to bring teams to work in harmony
Ensure the new project solution is more efficient and effective for the
business and users.
2.13 SOLUTION DEVELOPER
The Solution Developer interprets business requirements as provided by

the analysts and translates them into solutions that are integrated and
deployed. Solution Developer is full time role on the project they are
working on.
As use of technology has increased, organizations have unique software

needs and these are resolved by solution developers. They create
computer software for the organization to accomplish their goals, for
example custom-made software, graphic designs or large scale ERP
implementations. Solution developers spend time meeting with clients,
understanding the complexities and develop the software solutions. Hence
they need specific skills and technical expertise to perform their role, in
some cases the project seeks developers with a specific education degree
or certification and experience to ensure they are able to deliver quality
solutions.
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2.13.1 Responsibilities of Solution Developer
Work closely with users & members from business, business analysts,
solution testers to develop a model of the deployable solution
Address changes to the detailed requirements and re-work within the

solution in line with project scope and policy standards
Adhere to technical constraints as per the System Architecture Definition,

adhere to standards and best practice
Participate in quality assurance work to ensure the final delivered

software is a true fit and serves the client purpose
Carry out testing of their own work output and solution prior to prototype
testing with the testing teams and client teams.
2.14 SOLUTION TESTER
The Solution Tester performs testing in accordance with the Technical

Testing Strategy throughout the project. This role is to be given to a person
who has experience with various testing tools and test phases. The tester
needs to know more about the system software and configuration than the
solution developer and must be able to solve issues.
2.14.1 Responsibilities of Solution Tester
Create Testing products, define test cases and test plans for the evolving
solution in accordance with the Testing Strategy
Carry out all types of technical testing of the solution like unit testing,
integration testing, regression testing, user acceptance testing
Understand multiple system environments, report the results of testing

activities to the Technical Coordinator and ensure Quality Assurance.
Update the Team Lead of the results of testing activities
Assist the Business teams to enable them to carry out their tests so that
all areas are covered.
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Use good communication skills; ensure thoroughness and accuracy in
their work.
2.15 PROJECT MANAGEMENT OFFICE
The Project Management Office (PMO) plays a vital role in large

organizations, ensuring that projects are executed successfully. It is a
group within the project or enterprise that defines and maintains standards
for project management within the enterprise. PMO is the source for
standardizing and following project management policies, processes,
methods, provides guidance, ensures documentation related to the
practices involved in managing and implementing projects. A PMO may
report on project activities, issues, requirements and follows up on project
tasks through completion.
A PMO follows industry standards and plays a sizeable role in the project
life cycle like project initiation, execution, monitoring and closure activities.
When stakeholders have questions or inquiries, the Project Manager refers
to the PMO for appropriate answers.
2.15.1 The Scope of PMO
A correct understanding of scope of PMO (Project Management Office)

along with the roles and responsibilities help organizations plan and
execute projects in a better way.
The Project Management Office (PMO) is a centralized management

organization whose key role is to provide a framework to establish
standardization and performance measures based on organizational goals
and objectives.
The PMO estimates the size of the project, time and resources
requirement, lays down the project methodologies and makes available
tools and resources to achieve this.
PMO is responsible to ensure projects are on course and tracks ongoing

projects at regular intervals as well as assists project audits.
The PMO tracks projects by collecting status information from project

leads at routine intervals, compares results with baseline and
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communicates status to the management for review and implement

corrective action.
PMO has the duty to collect and archive project experiences, learning and
reusable data to improve project management methods in the future.
The PMO roles and responsibilities include providing support for the
smooth execution of the project by addressing client and stakeholder
concerns.
The roles and responsibility of the PMO varies depending on

organizational needs, size and the nature of projects. However PMO aims
at quality work with reduced costs and minimum resources and ensures
better risk management.
PMO project audit governance has a primary task of identifying the audit
type for the relevant projects and analyze audit report findings.
The PMO is concerned with the audits of projects to ascertain the level of
compliance with organizational processes, project management
processes, new product and software development process, etc. PMO
plans and coordinates the audit; analyzes the audit report and ensures
audit feedback is implemented for necessary corrective and preventive
actions in the organizational process.
The PMO determines the nature of a project, the parameters for resource
utilization, gives guidance on methodology, best practices and facilitates
the working of a project. It follows the current applicable industry
standards and all necessary governmental and environmental
regulations.
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2.15.2 The Ideal PMO Model
The best PMOs play the role of supervising and supporting the project
effectively to facilitate project completion within the budget, schedule,
resources and objectives determined by the management. The ideal PMO
aims to bring all persons involved in a project together to take mutual
decisions. The main roles of a PMO are:
The PMO would identify the need for change request on the project and
facilitate the process.
It assists in acquiring new skills where necessary and train existing

members to equip with latest skills. Identify any new tools or processes
to be introduced to the project so that the performance on the project is
in line with quality standards.
Assess the project on a continuous basis and evaluate it with industry

standards.
Analyze failures and errors on a project and pass on this information to

all the relevant members for their future guidance.
Keep track of the financial needs of the project and prioritize the funding
Orientation and onboarding new candidates are an important task which

helps the new members to blend with the team and contribute to the
project from their first day at work.
The best PMO model acts as a mentor and perform the role of an advisor, it
should be trustworthy and serve as an interface between the project and
all other parts of the organization. People skills are of great importance
because managing people well can lead to improved morale in the team
which disseminates in better performance and success to the project.
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2.16 CUSTOMERS
Customers are members who provide the project team with their subject
matter expertise. Customer Representatives have a responsibility to
accurately represent their business needs to the Project Team, to review
processes, validate the deliverables, and share project information with the
Customer community. They also test the service or product and provide
feedback to the project team. Some customers are key Decision-Makers
who have been designated to make decisions on behalf of the business. It
is their responsibility to get consensus of their business unit on project
issues and results and communicate it to the Project Manager.
Project Manager might request their presence in project meetings or be

part of the Steering Committee.
2.17 VENDORS
Vendors are third parties who provide a product and or contract to perform
agreed works on a project. Procurement processes to be followed depends
on the size of the project. For large organizations, there may be supplier/
procurement management team and they adhere to strict processes to
contract for the services or goods required for a project. However in
smaller organizations, the process may be handled by one person or a
small team. There are supplier / vendor management frameworks in place
to help project teams to leverage relationships and identify preferred
vendors. Project strategy for suppliers and vendors defines their selection
process, tendering, review and selection criteria, kind of contractual
relationship, performance standards expected (e.g. Service Level
Agreements), Statement of Work.
It is important that there is work ethics from both sides and clear rules of
engagement exist and both parties maintain respect and professionalism.
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2.18 PORTFOLIO MANAGERS
Project portfolio management is important when individual projects are

components of a much larger goal. Portfolio managers are responsible for
prioritizing projects to streamline them and perform risk analysis. Projects
are analyzed collectively to arrive at a better and clearer understanding of
their overall objectives.
2.18.1 The Basics of Project Portfolio Management
Ensure to keep work in order and remain on task with the various projects.
This includes taking stock of all available resources and align them with
prioritized projects and address business aspirations.
Follow a strategic decision-making process, monitor projects and prioritize

them on regular basis. This ensures funds are available and resources are
allocated appropriately.
Provide information and data across all active projects to organize, realign
priorities and goals which enable to keep project in order and minimize
costs.
Share information and reports between projects to create an amicable

environment for all personnel and bring out their best with respect to their
skills, expertise and experience.
Project portfolio management helps to supplement the project manager by

taking care of prioritizing tasks and allowing him/her to focus on more
important aspects of his/her projects.
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2.19 COACH / CHANGE MANAGER
This role helps the team to work collaboratively and cooperatively to meet
the project objectives. At some projects this role is done by Project
Manager and in some large complex projects a Coach or Change Manager
is appointed. This person is responsible for:
Assessment of organization's readiness to change
Assess scope of change - how big the change will be, how many
people will be affected, etc.
Communication planning - building awareness around need for change

and address needs of employees
Coaching Strategy - to coach and train manager for change
Resistance Management - Constant resistance to change can threaten

the project, hence management of employees resistance is a major task
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2.20 SPECIALISTS
In some projects the solution developer may not have all the skills needed,
hence a Specialist may be brought into the team for a specific period for a
specific solution. This might be on ad hoc basis and they must have a clear
understanding of what is expected from them.
2.21 SUMMARY
This chapter deals with various roles in Project Management and key
responsibilities of each of these roles.
The success of any project depends on all the people working on it. To
avoid confusion it is best to assign clear roles and responsibilities to each
person in a project.
Project management involves many phases where a series of activities

take place during each phase and it is accomplished with the help of a
good team with well defined functions.
There are many different roles with their responsibilities in the field of
project management. Well defined roles with duties and responsibilities
help to provide clarity to the client and project.
Some of the essential roles in Project Management are - Project

Sponsor / Project Manager / Project Team. There are many roles and
these personnel may be required on some complex or unique projects
and may not be essential on smaller projects.
The Project Manager's role is the most challenging role within project
management. A PM is like a leader who is required to successfully
manage the project with a full-time commitment. The project manager
wears many hats, must be flexible and adapt to the dynamic and
changing demands of the project and the team. The PM has many
responsibilities and is crucial to the success of the project.
Project Facilitators work with the Project Manager and help the project to
complete various tasks. Good facilitators motivate the team to achieve
success by facilitating the process and progress of the project. Being an
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effective facilitator on a project involves directing and guiding the teams

to add value to the project.
The project sponsor (project champion) identified the business need for
the project and is responsible for funding for the project. Project
Champion is the ambassador between the project and the management
and supervises the project right from its initiation to completion phase.
Has good understanding of the management's needs and customer
expectations and committed to ensuring the ongoing viability of the
project in line with the Business Case and realization of benefits of the
project.
Business Visionary is responsible for ensuring the needs of the Business

Sponsor are properly embodied in the Business Case. This role provides
the team with direction and monitors project progress to ensure that the
solution will facilitate to accomplish the benefits expected.
Project Stakeholders are an important part of the project life cycle and
have a vested interest in the successful completion of the project. There
are various types of stakeholders like internal employees and owners or
external vendors, primary stakeholders like end users and customers or
secondary stakeholders. Direct stakeholders like team members are
concerned with the day to day working of a project and indirect
stakeholders are various customers. Managing stakeholders and
maintaining an effective communication between them ensures that
everyone is on the same page and helps in success of the project.
The Steering Committee is the link to executive management and project

sponsors and involved in the project management and control. The
Steering committee endorses policy decisions, approves project
deliverables or scope changes and aids in issue resolutions.
The Project Team is responsible for successfully carrying out the tasks
that are assigned to them by the project manager. Project team's size
depends on the type of project and consists of the Project Manager, Team
Leads and a number of Project Team members who deliver depending on
the project phase and project plan. Each member of the project team is a
resource who performs tasks assigned as per the Project Plan and
reports to the Project Manager / Team Lead.
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Team Leads provide technical and functional leadership, work with the
team members to plan and co-ordinate all aspects of project deliverables
as per the project plan. Additionally Team Leads also perform Solution
Development Team role and motivate their teams to perform while
reporting progress to the Project Manager.
The Technical Coordinator determines the technical environments,

manages and coordinates technical activities of the teams and ensures
that the Solution Development Teams work to deliver the results.
Business Analyst role within IT projects is to translate business needs to

the technical solution and ensure adequate communication between the
key business personnel and the developers. They build rapport with the
heads of departments and ensure the new project solution is more
efficient and effective for the business and users.
The Solution Developer interprets unique business requirements provided

by the analysts and translates them into solutions that are integrated
and deployed. Solution developers have skills and expertise, meet with
clients, understand the complexities and develop the software solutions.
The Solution Tester has experience with various testing tools and test
phases and performs testing in accordance with the Testing Plans and
Strategy, they need to know about the system software and configuration
and be able to solve issues.
The Project Management Office (PMO) has a vital role in large

organizations to facilitate success of projects. PMO is the source for
standardizing and following project management policies, processes,
methods all phases of project life cycle. It provides guidance, ensures
documentation, archives project experiences, gives support for the
smooth execution of the project by addressing client and stakeholder
concerns.
Customer Representatives are Subject Matter Experts who are

responsible to accurately represent their business needs to the Project
Team and validate the solution. They test the deliverable and provide
feedback to the project team. Project Manager might request their
presence in project meetings or be part of the Steering Committee.
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Vendors are third parties who provide a product or service on a project.
Project strategy for suppliers and vendors defines their selection process,
tendering, review and selection criteria.
Portfolio managers are responsible for prioritizing projects by analyzing

and streamlining them and performing risk analysis. They take stock of
available resources and align them with prioritized projects to address
business goals and minimize costs. Project portfolio management helps
to supplement the project manager by prioritizing tasks and allowing him
to focus on critical aspects of the project.
Coach / Change Manager is responsible for assessment of organization's

readiness to change, assess scope of change, communication and
resistance management.
Specialists may be brought into the team for a specific period when the
solution developer does not have all the skills needed for designing the
solution.
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1. List out 10 different roles in Project Management and briefly describe

them.
2. Explain some of the key responsibilities of Project Manager.
3. Which are some of the leadership qualities of Project Manager?
4. What are the various types of Stakeholders that impact Projects?
5. What are some of the characteristics of Project Teams?
6. Team Lead has several responsibilities, list out 5 key responsibilities.
7. What is the scope of PMO and why is it required in Project Management?
8. How does Portfolio Management help Projects?
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !71
ESSENTIAL TOOLS FOR PROJECT
Chapter 3
Learning Objectives
Introduction to Essential tools for Project

Characteristics of Budgets
Purpose of Project Plan
What is Work Breakdown Structure
Gantt Chart tool for Project Schedule
Critical Path Method
Program Evaluation Review Technique and Steps
Flow Chart and Symbols
Histogram Display
Cause and Effect Diagram (Also known as Fishbone Diagram / Ishikawa
Diagram)
Check Sheet as a tool
Structure
3.1 Introduction
3.2 Budgets
3.3 Project Plan
3.4 Work Breakdown Structure
3.5 Gantt Chart
3.6 Critical Path Method
3.7 Program Evaluation Review Technique
3.8 Flow Chart
3.9 Histogram
3.10 Cause and Effect Diagram
3.11 Check Sheet
3.12 Conclusion
3.13 Summary
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3.1 INTRODUCTION
Management of Projects is a high responsibility task in today's businesses.

Most projects ranging from software and application development to
security defense projects use project management in some form.
A set of systems and tools help a project manager and the business to plan
a project carefully and execute it successfully. These can be common tools
used regularly by many companies or specifically designed tools to be
adopted for project management work. Use of such systems and tools
makes the project managers work easily manageable as it standardizes the
work and compiles a routine for the project manager and the project team.
Following are some of those tools used by project managers in all

domains:
3.2 BUDGETS
A budget is a forecast and a reflection of project work and the timing of

that work. It is a quantified financial plan of action which lists down
planned income and expense item wise. A comprehensive budget offer
management with an understanding of funds utilization and expenses over
a period of time for projects or operations.
Budgetary planning creates a budget as part of the planning process.

Budgetary control compares budgets to actual to quantify variances or
deviations from the project plan. Using this tool systematically at regular
intervals helps to take control on actions and deviations to align actual with
the plans.
The below diagram (with S-Curve) shows the estimated cumulative

expenditures of the project over time. A project spends slowly, then ramps
up rather quickly as operations increase and resources are more utilized
and then tapers off during completion period of the project. This can be a
tool to know the timing of expenses on a project and will aid management
in planning appropriately.
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S-Curve
Cost
Time
High-level estimates, provided by management in advance of a project's

start are targets and not called budgets. The accuracy of a budget depends
on identifying all the work to be accomplished within schedule and types of
resources needed to complete the work effectively.
The purpose of budget is to plan, utilize resources, integrate, motivate and

evaluate the budgets and actual.
Budgets can be top down (management or board defines the budget) or

bottom up (project manager with project team defines the budget).
3.2.1 Characteristics of a good budget are:
There is a budget manual that consists of instructions, responsibilities,

reporting lines, timetable, deadline, analysis of costs and revenues to
achieve the enterprise objective.
It is expressed in quantitative or monetary terms and can also have non

monetary information.
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It is prepared before the period in which it commences and is for a fixed
period of time.
Teams and people are involved in arriving at a budget. Budget

Committee is the central team to co-ordinate and administers the
process of producing budgets and communicates with other departments
to consolidate budgets. Budget Officer assists the budget committee in
various activities.
Flexible enough to accommodate the changing environment and is

practical to implement.
Prepared on the basis of established standards of performance.
Performance of the organization is constantly monitored on the basis of a

budget and serves as an important tool to achieve financial and
operational goals.
3.2.2 Advantages of budgets are:
Helps planning as budgets force the manager to think about the project
and company's competitive and financial position and how to improve it.
Budgets facilitate linking objectives and resources which aid to achieve

project results. Improves decision making because emphasis is on future
events and connected opportunities.
Expectations can be easily communicated; resources and requirements

can be identified. Aids coordination between departments to attain
efficiency and productivity.
Profitability review can be done by a properly structured budget which

points out profitable versus loss making areas, this in turn helps project
management to reflect on and advise go ahead with projects.
Information from the budget can be used to plan for funding needs to
support project operations. Permits thinking to make operations and
resources more productive, competent, viable and profitable which leads
to cost reduction.
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Provides an accurate analytical technique and fosters cautious study
before arriving at decisions. Projects can use the budgeting process to
find bottlenecks and concentrate on actions to be taken to work around it
for success.
Allows projects to monitor, control, and direct activities. As a control tool,

deviations between budget and actual are highlighted; early signals of
upcoming threats and opportunities are provided which give time to
make alternative plans.
Provides a motivational device and measure for self evaluation by setting

a standard for employees to achieve and perform more effectively.
3.2.3 Disadvantages of budgets are:
The signs of budget weaknesses must be spotted so that corrective action

may be taken. Such signs include:
It can be very time-consuming to create a budget, especially in an

unorganized environment where it might lead to many iterations of the
budget and takes too long to get it ready.
Budgets are primarily concerned with financial outcomes and do not deal
with more subjective issues, like the quality of products or services
delivered to clients or end users. It will be advisable to have these issues
also as part of the budget.
Budgets can become a reason for rigidity if the management keeps its
focus entirely on meeting the targets outlined in the budget.
Environmental changes and market shifts will require projects to be
flexible with changes in original budgets.
The budget document is excessively long or confusing or contains too

much information which seems unusable to projects.
Significant unfavorable variance that repeatedly occurs is an indicator of

poor and unrealistic budgeting and it is too late to correct their causes.
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3.2.4 Conclusion
Budgeting involves cost and time to prepare and hence the benefits of
budgeting must outweigh the drawbacks. It should be coordinated,
comprehensive, organized, integrated and clear to accomplish best results.
Budget is a tool that aids in anticipating problems before they become
serious and aids planning and identifying the best course of action.
If forecasts are inaccurate budget will also be misleading resulting in

terrible management decisions leading to losses. Hence it is not unusual for
the Project Manager to make adjustments to the project to keep it within
the budget parameters.
The budget is a major control mechanism for revenue, costs and

operations where the purpose is to augment profitability and decrease
costs and meet other project objectives as quickly as possible.
Spreadsheet or a simple template might suffice to create budgets for small

projects. For bigger or more complicated projects, a better software
solution might be better.
3.3 PROJECT PLAN
All projects to be managed by a project manager should have a project

plan. A project plan is a formal, approved document that contains many
aspects of the project and is a tool used to guide, manage and control
project execution. A good project plan is the key to a successful project
and is the most important document to be created when starting any
project.
Purpose of Project plan is to:
Document and communicate stakeholder and project expectations

Control schedule and delivery
Calculate and manage associated risks
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3.3.1 Characteristics of Project Plan are:
It details out the project scope and the strategy for meeting project
objectives. The strategy is the core of the project plan and could vary
depending on the project purpose and unique requirements.
The scope baseline consists of all the deliverables on the project and
identifies all the work to be done. The deliverables confirmed in the
scope statement are to be developed into a work breakdown structure.
Baseline management plans are created to manage variances to these
plans.
Project plan is to be explained to all key stakeholders to get their

commitment and approval. The information contained is important for
the project manager as well as all stakeholders of the project
The resource allocation and delivery schedule are other two main
components of the project plan. Roles and responsibilities are defined for
key players like project sponsor, project manager, project team, end
users, auditors, etc. This consists detail of each activity as well who
executes the task and activity and when it is to be performed.
Analyze project quality and risks where it consists of ensuring that the
end product not only addresses the customer needs but is one that the
sponsor and end users actually want to use, Risk management includes
assessing the risks, minimizing errors and developing risk management
plans to communicate response to the high-risk events.
3.3.2 Advantages of Project Plan are:
Enables organized working as project plan enables to focus the team on

the key elements of a task by compelling the group to sit down and plan
out the project on paper.
It helps the project teams and concerned parties understand from initial
stages itself the type of work to be done and the kind of questions they
need to answer about the project.
Conflict resolution provisions included in plan help to resolve

disagreements and deal with difficult team member. In the event of a
! !78
dispute the team can refer to the plan and charter, which has been
agreed to and signed and this allows them to use their own prior
judgment to resolve many disputes.
There is clarity on what the milestones are as there is awareness of the

dependencies and what other work is happening.
A Plan provides the ability to clearly track progress and hence teams are
unlikely to miss something major which avoids confusion at later stage.
It helps companies to become more productive, enhance their

communications and effectively allocate resources.
3.3.3 Disadvantages of Project Plan are:
A Project Plan is definitely useful and disadvantages come only if it is not

used in the right way.
Plans are of little use if they are not created with genuine effort, this
process can be time consuming, and many meetings could be needed to
create project planning documents.
One disadvantage that teams find with using project plans is that they
are sometimes created and then never used. If a document is created at
the beginning of a project and then filed away and never looked at again,
their occasional lack of use can convert the whole process into a waste of
time.
Assumption that every task as set in concrete reduces flexibility to

change the order of deliverables around and the expectation is still to
meet the end date.
Getting bogged down in the details of the plan can cause one to lose
sight of the big picture.
If too much time is spent tweaking other tools like Gantt charts to get
everything lined up, the project plan takes a great deal of time to
update.
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Increases the risk that time is spent managing the plan instead of
managing the people and resources and accomplishing the tasks.
3.3.4 Conclusion:
A well-developed project plan is one of the critical factors and a
prerequisite for project success. The project plan provides a roadmap for
project managers to follow and is the project manager's premier
communications and control tool throughout the project.
3.4 WORK BREAKDOWN STRUCTURE (WBS)
The Work Breakdown Structure (WBS) is a hierarchical structure which

helps to plan effectively for a project. The project team identifies the major
deliverable and subdivides them into sub-deliverables which are more
manageable and sets their duration. These sub-deliverables are further
broken into smaller tasks and activities until a single person can be
assigned.
WBS is often represented in forms like diagrams, tables, or outlines. They

can also, like the budget, be created using spreadsheet.
The Project Management Body of Knowledge (PMBOK) defines the work

breakdown structure as a "deliverable oriented hierarchical decomposition
of the work to be executed by the project team."
The work breakdown structure visually classifies the project scope into
manageable activities that the team can comprehend. Each level of the
work breakdown structure provides further classification and detail. These
smaller units of work with details help to deliver better scheduling, costing
and resourcing for the project. Figure below depicts a sample work
breakdown structure with three levels defined for a social networking site.
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3.4.1 Characteristics of WBS:
Enables the Project Manager to identify independent tasks

Needed resources are allocated for each task
WBS tasks are assigned to the appropriate stakeholder
The top level represents the final and key deliverable
WBS organizes the team's work into manageable sections
Definition of the work, duration and costs for the tasks are included
3.4.2 Advantages of WBS:
Project work is well defined and better organized. Allocating time and
cost estimates enable to develop a project schedule and budget quickly.
A project budget can be allocated to the deliverable at the top level of

work breakdown structure, and smaller unit budgets can be planned
based on the tasks and sub tasks.
Specific segment of the work breakdown structure can be tracked to

identify project cost performance and identify issues and problem areas.
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Project work breakdown structures can also be used to identify potential
risks in a given project.
By integrating the work breakdown structure with an organizational

breakdown structure, the project manager can also formulate a
communication plan.
Referring to the work breakdown structure will provide analysis of the

major deliverables impacted by a late sub- task.
Color coding can be used as an effective way to produce a heat-map of

project progress and gain management's attention to key areas of the
work breakdown structure.
Allocation of tasks helps in ensuring completion of the tasks or activities.

The most efficient sequence to accomplish the tasks can be implemented
which provides for effective time allocation.
Delegation of responsibility enables to accomplish control through better

accountability and efficient resource planning saves costs on project staff.
Tool for better forecasts for project can be used for ongoing risk
management monitoring. If an activity is not well defined then it
represents a scope definition risk which can be tracked via log and
reviewed depending on project progress.
3.4.3 Pitfalls to be avoided in WBS:
Developing a WBS can be a painstaking process and time consuming.

The larger the project scope, the more deliverables and more steps are
required which can take many, many hours to develop. WBS requires
effort and knowledge to be developed effectively.
Sometimes it is difficult to find the correct level of detail and all relevant
tasks to include in the WBS and decide what tasks should not be part of
WBS. Grouping of non-similar tasks should be avoided.
The WBS can become outdated quickly when the project schedule
changes during the execution of the project but WBS is not up to date.
Hence it is imperative to keep track of the project status and
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continuously refine the WBS elements accordingly. Project changes leads

to changes in the WBS.
When deciding how specific and detailed to make the work packages,
care must be taken to not get too detailed. This will avoid the risk of
becoming cumbersome and unmanageable.
Project manager might have tendency to micromanage the project if the

WBS is too exhaustive which might eventually slow down project
progress. Due care must be taken to ensure WBS is controllable and not
unwieldy.
3.4.4 Conclusion:
The overall advantages of using WBS as a project tool outweigh the known
challenges. The WBS cannot be used as a replacement for the project plan
or schedule. Having a good WBS makes project planning, execution,
managing and controlling easier and lays the foundation for tracking and
accountability for the project team and all key stakeholders.
3.5 GANTT CHART
Gantt chart was developed by Henry Gantt in the 1910s which

demonstrates a project schedule. It is a type of bar chart that illustrates to
the project manager the start and finish dates of each element and the
interdependencies of each activity. Gantt charts are used for any type of
project from construction to software development.
Now Gantt Charts are regarded as a common charting tool, however they
were considered extremely revolutionary when first introduced. There are
many ways to create a Gantt chart. For a small project Gantt chart can be
created in Excel template. However for a project with hundreds of
activities, it can be a complex task.
In today's world there are many computer applications supporting the use
of Gantt charts for project management, information technology projects,
employee scheduling, etc. Below is a visual illustration of a simple Gantt
Chart for SAP project implementation that follows the ASAP methodology.
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3.5.1 Characteristics of Gantt Charts:
A tool commonly used in project management and is one of the most

popular and useful ways of showing activities displayed against time.
All of the activities needed for a project are to be identified and tasks
required for completion to be established. For each task its earliest start
date and its estimated duration is noted.
Identify which tasks are parallel and which are sequential. Where tasks
are dependent on others understanding their relationship will help to
organize your project which is required to start scheduling activities on
the Gantt chart.
Left of the chart shows a list of the activities represented by a bar and
along the top is a time scale. The position and length of the bar reflects
the start date, duration and end date of the activity.
At a glance it shows the various activities, the beginning and end for
each activity, how long each activity is scheduled to last and overlap of
activities.
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These Activities are input into a template or Software. Some of the tools
are cloud-based which means the project manager and team can access
the document simultaneously from any location.
Gantt chart is updated to reflect changes as soon as they occur and keep
track of project progress. This is a good tool to help keep plans, team,
and stakeholders up to date.
3.5.2 Advantages of Gantt charts are:
They serve as an excellent presentation tool for projects and illustrate

milestones and demonstrate individual resources scheduled to time.
Project can get status report to show how much of the plan has been
accomplished as Gantt Charts display the progress of an activity in a
parallel bar or using color.
It is a visible tool and helps project management to organize thoughts

and set realistic time frames.
Teams can see complex ideas represented in the form of a picture which
greatly aids in understanding of the various critical and complex
deliverables for the project.
Presentation format is more appealing than writing paragraphs.
3.5.3 Disadvantages of Gantt charts are:
There is tendency for Gantt charts to become extremely complex and

consume resources of the project manager who has to manage and
prioritize a lot of deliverables.
The length of the bar depicted is not an indicator of the amount of work.
Before the chart is drawn the estimates must be completed and they
need to be constantly updated.
It can turn into a laborious task as changes to the schedule require

redrawing of the chart.
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It is difficult to show two sets of dates when using earliest start and
latest start, there are challenges to reflect slack and critical path or
highest risk of stoppage.
It is hard to see the chart on one sheet of paper and some resource
assignments cannot be easily illustrated.
Multiple scheduling possibilities and dependencies cannot be

demonstrated on a sheet of paper while using Gantt charts.
3.5.4 Conclusion:
Gantt chart shows what activities have to be done and when they are
scheduled. They show the relationship between the tasks in a project as
some tasks will have to be completed before the next one can begin and
others end when the preceding ones have ended. For example, project
team will have to ensure internet or Wi-Fi is available at the location to
access WebPages at a project site. So the relationship between access to
web and updating work on the web is dependent on availability of internet.
As any other tool, it has limitations and can lead to drifts. Gantts can be
used as a tool to visually breakdown the project, to order and specify
dependencies between tasks and to review completeness of deliverables
expected from the project and team. It is useful when the project
management team is able to show relevant information about the various
tasks during different phases of the project, how the tasks relate to each
other, their progress and resources being used for each task.
3.6 CRITICAL PATH METHOD
The Critical Path Method (CPM) also known as Critical Path Analysis is an
important tool for effective project management. CPM is a visual
presentation of a mathematically based algorithm for scheduling a set of
project activities. It can be used with various forms of projects like
construction, aerospace, defense, software development, research, product
development, engineering, plant maintenance and many others. This
method of scheduling was developed by U. S. Navy in 1950s and can be
applied by any project with interdependent activities.
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3.6.1 Technique of CPM
At any project the methodology of CPM is to:
List all activities required to complete the project along with the time
duration for each activity to complete and the dependencies between the
activities.
Calculate the longest path of planned activities to the end of the project
and the earliest and latest that each activity can start and finish without
delaying the project longer.
Determine critical activities on the longest path and prioritize activities

for effective execution.
It is based on establishing time-cost relationship and scheduling variations

to arrive at the most favorable balance between time-cost factors.
In project management this tool of critical path is used to arrive at the

sequence of project network activities which add up to the longest overall
duration. This establishes the shortest time possible to complete the
project. Delay of an activity on the critical path directly impacts the
planned project completion date which means that there is no float on the
critical path. A project can have several, parallel, near critical paths. When
an additional parallel path through the network is determined with the total
durations shorter than the critical path it is called a sub-critical or non-
critical path.
CPM analysis tools allow the project team to select a logical end point in a
project and quickly identify its longest series of dependent activities which
will be its longest path. These tools can display the critical path that flows
from the project's start to the selected logical end point.
This is represented as the activity-on-node diagram, where activities are

shown as a box or node and the arrows represent the logical relationships
going from predecessor to successor as shown in the diagram in this
section.
! !87
These results, including the drag computations, allow managers to

prioritize activities for the effective management of project completion, and
to shorten the planned critical path of a project by pruning critical path
activities, by "fast tracking" (i.e., performing more activities in parallel),
and/or by "crashing the critical path" (i.e., shortening the durations of
critical path activities by adding resources) and / or with "total
float" (activities that can be delayed without making the project longer).
Let's look at a simple network logic diagram for a small sample

project.
!
Each activity's duration is measured in weeks and the arrows depict how
each activity is dependent on other activities to complete before they can
start themselves.
A must finish before C can start, C must finish before D can start and so
on. Also activity C can only start once both A and B have finished.
There are three separate paths in this diagram:
Start - A - C - D - Finish: Time 8 weeks
Start - B - C - D - Finish: Time 9 weeks S
Start - B - E - F - Finish: Time 7 weeks
Since the critical path is defined as the longest, here it will be path B-C-D
with a critical path of 9 weeks. That means if one of the activities on this
critical path is delayed the entire project is delayed!
! !88
For instance if activity D is delayed 1 week, the project will be delayed by 1

week.
But if activity E is delayed by 1 week it will not delay the project as the
path that E is on will now be complete in 8 weeks and still be done one
week ahead of the BCD path at 9 weeks due to delay.
The critical path is made up of activities and delay in any of them will delay
the finish of the entire project.
Now if activity E is suddenly delayed 3 weeks then in that case the path B-
E-F becomes the new critical path of 10 weeks and the entire project finish
is delayed. Now the project manager has to determine how to handle this
delay or work with this as the new critical path.
A project can have more than one critical path and it is essential for the
project manager to know all of them.
CPM is used to determine if the project will be delayed due to an activity

being delayed. If the activity is on any critical path it will lead to project
delay. If not, it depends if the delay in activity leads to a new critical path.
If not, then there is no change in critical path.
Since Projects have hundreds of complex activities and dependencies than

the above example, software is used to set up the activities and
dependencies and the critical paths are calculated by the software.
The critical path is a critical tool for Time Management and correct use of it
will be helpful to manage the project.
3.6.2 Advantages of Using a CPM
It takes into consideration the project requirements well in advance to

complete the deliverables in the most efficient way.
Assists project managers in planning schedules, monitoring tasks and

controlling the project expenses.
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Charting in a CPM makes it easier to evaluate parallel activities, handle
delays and judge the outcome of a task. It enables the managers to
minimize the project length by monitoring the critical path.
The charting in a CPM also enables the managers to determine start

time, end time, slack time and float time associated with each activity of
the project.
With this tool the project managers can determine the duration and cost
of the project. It helps to predict completion date of every phase,
anticipate problems if any, and address the issues accordingly.
As a result the Project Manager is able to monitor human resources as

well as the direct and indirect costs associated with the project.
Displays dependencies to help scheduling and makes planning process

easier on project team.
Creates network for efficient handling of a multitasked project and

motivates the team in timely completion of the tasks in a project.
This step-by-step process provides the project management with a visual

representation of potential bottlenecks throughout the course of the
project.
3.6.3 Disadvantages of Using a CPM
CPM can become extremely complicated and very time consuming in a

big dimension project or if the project is too bulky and lengthy.
If it is not well-defined and stable, CPM can become ineffective and

difficult to manage.
It is very difficult to redraw the entire CPM chart if the project plan
suddenly changes halfway.
The project managers have to spend a lot of time to calculate the critical
path very carefully.
! !90
Estimating activity completion times can be difficult due to various other
external factors.
3.6.4 Conclusion:
The Critical Path Method has been used for decades now and today the
modified and improvised forms of CPM benefit several projects around the
world. Critical path method is not the solution, it is just a tool and the
solution lies in making use of this tool properly.
It gives enough control to the project manager that if some delay is

expected, the manager could work to expedite certain areas to meet the
deadline. No matter how big or small the project is, the most important
concern is to quickly and efficiently finish it. Here's how critical path
method serves as an essential component of any type of project planning:
Through critical path method, the PM is on top of everything and can

have a perspective of all the processes that enable the project to move
forward.
With the critical path method, there is know-how of all available

resources and deployment of more resources can be done to achieve the
best results.
With critical path method, even the most difficult tasks look easier and all
the factors that could delay the project can be handled properly in
advance.
The critical path method provides a bigger sense of responsibility as it

can hold an employee or an individual responsible for the delay in a
project or process for tasks assigned to that individual.
Setting priorities and preferences is also an important part of project

management and critical path method is a mechanism to work with those
things.
It has been proven over time that critical path method helps smaller and
bigger projects equally and hence critical path method is an invaluable
tool for project management.
! !91
3.7 PROGRAM EVALUATION AND REVIEW TECHNIQUE

(PERT)
PERT, which stands for Program Evaluation and Review Technique is a

planning and control tool used for defining and controlling the tasks
necessary to complete a project. It was first developed by US Navy in
1950s as a way to put boundaries around overall project durations and is
used in conjunction with the critical path method (CPM). The PERT estimate
is a simple risk-mitigation approach that considers the best case and worst
case of a task estimate and also includes a most likely estimate that is
between the two and is heavily weighted. The three estimates are
averaged using the PERT formula to create the PERT estimate for the task.
A PERT analysis starts with a network diagram. Each task duration is
estimated three times, the best case, worst case, and most likely case. A
worst case schedule is developed using only worst case estimates. A best
case schedule is developed using only best case estimates. A PERT
estimate is determined for each task. A PERT project schedule is then set
using the PERT estimates.
While CPM is easy to understand and use, it does not consider the time
variations that can impact the completion time of a complex project. The
PERT is a network model that allows for randomness in activity completion
times and has the potential to reduce both time and cost required to
complete a project.
PERT charts and Critical Path Method (CPM) charts are often used
interchangeably; the only difference is how task times are computed. Both
charts display the total project with all scheduled tasks shown in sequence.
The displayed tasks show which ones are in parallel and those tasks that
can be performed at the same time. A graphic representation is called a
"Project Network" and is used to portray the interrelationships of the
elements of a project and to show the order in which the activities must be
performed.
! !92
3.7.1 Steps in PERT planning involve the following:
1. Identify the activities and milestones - The activities are the tasks
that are required to complete the project. The milestones are the events
that mark the beginning and the end of one or more activities.
2. Determine sequence of activities - Sometimes activity sequence is

apparent in tasks and in some cases it requires analysis to determine
the exact order in which they should be performed.
3. Construct a network diagram - Using the activity sequence

information, a network diagram can be drawn showing the sequence of
the successive and parallel activities. Arrowed lines represent the
activities and circles or "bubbles" represent milestones. For large
complex projects there are software packages that help to convert large
volumes of tabular data into network diagram.
4. Estimate activity time - A distinguishing feature of PERT is its ability

to deal with uncertainty in activity completion times. Weeks are a
commonly used unit of time for activity completion, but any consistent
unit of time can be used.
5. Determine the critical path - The critical path is determined by

adding the times for the activities in each sequence and determining the
longest path in the project. The critical path determines the total
calendar time required for the project. The amount of time that a non-
critical path activity can be delayed without delaying the project is
referred to as slack time.
6. Update as the project progresses - As the project progresses, the

estimated times can be replaced with actual times. If there are delays,
additional resources may be needed to meet deadlines and the PERT
chart is modified to reflect the new circumstances. An example of a
PERT chart is provided below:
! !93
There are 9 milestones from start to end including A to G for the entire
project of 28 months. In case of PERT specific nodes cannot be reached
until previous nodes have been accessed which depicts the various
milestones and how all the key dependencies are inter-related in a project.
The PERT model usually includes three time estimates for each
activity:
Optimistic time - the shortest time in which the activity can be

completed.
Most likely time - the completion time having the highest probability.
Pessimistic time - the longest time that an activity may take.
Based on this, the expected time for each activity can be calculated using
the following weighted average:
Expected Time = (Shortest time + 4 x Most Likely time + longest time) /

6
It is helpful to determine the following four times for each activity if the
Critical Path is not obvious. Expected time for the relevant activities are
used to calculate these.
! !94
ES - Earliest Start time
EF - Earliest Finish time
LS - Latest Start time
LF - Latest Finish time
The earliest start and finish times of each activity are arrived at by
determining the earliest time at which an activity can start and finish
considering its predecessor activities and is a forward approach.
The latest start and finish times are the latest times that an activity can
start and finish without any delay to the project and these are arrived at by
working backward through the network.
The difference in the latest and earliest finish of each activity is that
activity's slack. The critical path is the path through the network in which
none of the activities have slack.
The variance in the project completion time is calculated by totaling the

variances in the completion times of the activities in the critical path. With
this, the probability that the project will be completed by a certain date
assuming a normal probability distribution for the critical path can be
calculated.
3.7.2 Advantages of PERT Chart
Better planning and scheduling of activities as the early start, late start
and slack for each activity is identified.
Knowledge of relationships of activities enables better forecasting of

resource requirements.
Ability to see the critical path helps to reschedule activities to reflect

inter-project dependencies
Provides identification of the expected project completion time,

probability of completion prior to a specified date, the critical path
activities that affect completion time and activities with slack time.
! !95
PERT provides for potentially reduced project duration due to better
understanding of dependencies which allows for enhanced overlapping of
activities and tasks where feasible.
The large volume of project data can be organized & presented

diagrammatically to aid decision making.
Lessons learned from repetitive planning patterns can be followed in

other projects which improves efficiency.
Useful when scheduling and controlling large projects and in monitoring

schedules and costs as well.
Straightforward concept with graphical networks helps to perceive

relationships among project activities.
Project documentation and graphics point out who is responsible for

various activities.
Can be used by a wide variety of projects.
3.7.3 Disadvantages of PERT Chart
Project activities have to be clearly defined, independent and stable in

their relationships to draw a PERT chart.
Precedence relationships must be specified and networked together
Time estimates can be subjective and there is an inherent danger of too

much emphasis being placed on the critical path.
There can be hundreds or thousands of activities and individual

dependency relationships so PERT is not easily scalable for smaller
projects.
The network charts tend to be large and bulky and involves a lot of time
from the project management.
! !96
3.7.4 Conclusion
The Program Evaluation and Review Technique is a project management

technique or tool which is suitable for projects with unpredictable activities
while the Critical Path Method is a project management tool which is
suitable for projects with predictable activities.
PERT is a variant of Critical Path Analysis that takes a more skeptical view
of the time needed to complete each project stage. CPM uses a single
estimate for the time that a project can be completed while PERT uses
three estimates for the time that it can be completed.
CPM is a deterministic project management tool while PERT is a

probabilistic project management tool.
3.8 FLOW CHART
Flowchart is one of the basic quality tools that can be used for analyzing a
sequence of events. The tool maps out a sequence of events that take
place sequentially or in parallel. It can be used to comprehend a complex
process in order to find the relationships and dependencies between
events.
A flowchart is a graphical diagram that represents a workflow or process

where the steps are depicted using various kinds of boxes and by
connecting them with arrows their flow is orderly represented. Each step in
the process is represented by a different symbol and contains a short
description of the process step. The flow chart symbols are linked together
with arrows showing the process flow direction. This diagrammatic
representation illustrates a solution model to a given problem. Flowcharts
are used in analyzing, designing, documenting or managing a process or
program in various fields and to illustrate events involving processes of any
complexity. A brief idea about the critical path of the process and the
events involved in the critical path can also be obtained with flowcharts.
There are specific software tools developed for drawing flow charts, such as
MS Visio or some of the open source flow chart tools can be downloaded
freely.
! !97
3.8.1 Flowchart Symbols
Different flow chart symbols have different meanings. Some basic flowchart
shapes are:
A simple flow chart showing the symbols described above can be seen
below:
! !98
! !99
3.9 HISTOGRAM
A Histogram is a graphical display of data using bars of different heights. It

is used for illustrating the frequency and the extent in the context of two
variables. Histogram is a chart with columns and represents the
distribution of data by mean. In the case of a normal histogram, the graph
is in the shape of a bell curve. Else it may take different shapes based on
the condition of the distribution when it is not normal. Histogram is used to
measure one thing against another thing and involves two variables.
In a histogram, the independent variable is plotted along the horizontal

axis (X-axis) and the dependent variable is plotted along the vertical axis
(Y-axis).
Histogram was first introduced by Karl Pearson and is an estimate of the

probability distribution of a continuous variable. The tabulated frequencies
are represented by adjacent rectangles over discrete intervals. The total
area of the histogram is equal to the number of data.
A histogram is used to display continuous data such as time,

measurements and temperature. A problem faced with using histograms is
that it is difficult to compare two sets of data and exact data cannot be
read.
Use of histogram tool is to represent statistical findings of a project like

resource utilization.
! !100
3.10 CAUSE AND EFFECT DIAGRAM (FISHBONE DIAGRAM /

ISHIKAWA DIAGRAM)
Cause and effect diagrams (Ishikawa Diagram) are mainly used for
understanding organizational or business problem causes. There are
problems everyday in businesses and understanding the causes of these
problems will help to solve them effectively. Cause and effect diagrams
exercise is usually teamwork. Brainstorming sessions are conducted to
come up with an effective cause and effect diagram. The main components
of a problem area and possible causes from each area are listed. Most
likely causes of the problems are identified to carry out auxiliary analysis.
! !101
Fishbone diagrams are primarily used in business process improvement,

quality management, fault-detection and are also very useful in project
management planning and task management.
Cause and Effect diagrams are useful as a project tool for early planning
notably when gathering and organizing factors during brainstorming and
the like. They identify hidden factors which can be significant in enabling
larger activities, resources or processes.
Fishbone diagrams are not good for scheduling or showing interdependent

time-critical factors.
Cause and effect diagrams are also referred to as Fishbone diagrams and
Ishikawa diagrams. Kaoru Ishikawa, a Japanese professor specializing in
industrial quality management and engineering devised the technique in
the 1960s. And it got the name as a fishbone diagram because its
appearance is like a fishbone.
There is a central spine from left to right around which a map of factors is
built and which contributes to the final result. For each project the main
categories of factors are identified and shown as the main bones leading to
the spine.
The cause and effect diagram is a very effective planning model and tool -
especially for 'mapping' an entire operation. This concept is still considered
one of the seven basic tools of quality control For project planning the
'Effect' is shown as an aim or outcome or result and not necessarily as a
problem. The diagram above is a very simple one where the causes are
depicted as bones leading to the spine and the effect is
"Miscommunication". One of the causes is a language barrier on the project
and sub cause is lack of accent training.
! !102
Some of these diagrams can become very complex when plotted for
specialized quality management areas with computerized systems.
3.11 CHECK SHEET
A check sheet is a structured form for collecting and analyzing data. A

check sheet is one of the seven basic tools of quality control. This is a
generic tool that can be adapted for a wide variety of purposes. With the
help of software packages like Microsoft Excel further analysis graphs can
be derived and automated through available macros. It is a good idea to
use a software check sheet for information gathering and organizing needs.
Check sheet is a versatile tool for both qualitative and quantitative data
gathering and analysis. The check sheet can be called a tally sheet when
the data is quantitative. Data are recorded by making marks ("checks") on
it. A typical check sheet is divided into sections, and marks made in
different sections have different importance. Data are read by observing
the location and number of marks on the sheet.
A check sheet is an appropriate tool when the data can be observed and
collected repeatedly by the same individual or the same location. It is also
an effective tool for collecting data on frequency and identifying patterns of
events, problems and defects.
! !103
Check sheets aid in systematic collection and organizing data and are a
useful tool in all phases of the project like Lean Six Sigma DMAIC (define,
measure, analyze, improve and control) framework.
3.12 CONCLUSION WITH VARIOUS TOOLS
Project management is a demanding task with many multifaceted

responsibilities. Fortunately, there are many systems, tools and techniques
that assist the Project Manager with accomplishing the tasks and executing
their responsibilities efficiently. There are many features, advantages and
disadvantages while using these tools at projects. Some tools are for a
specific purpose only while some are well suited for simple or complex
projects. No one tool addresses all project management needs and a
combination of systems might address the client requirements. Project
managers should choose a project management tool that is most accurate
for the project requirements and best meets their management style.
! !104
3.13 SUMMARY
There are numerous systems, tools and techniques that are used to aid
project managers in their overwhelming task of planning, executing and
controlling project activities. These tools and techniques are used to
facilitate project implementation and meet client requirements. Some of
the project tools that are available include:
Budget is a project management tool that is used the most throughout

the life cycle of the project. It lists down the expenses and income for a
project and forecasts the utilization of funds and expenses over a period
of time.
Project Plan is a very important document that is created during start of

the project and a useful tool to track project progress. It lists out the
project scope, delivery schedule, resource allocation and identifies the
work to be done.
Work Breakdown Structure is a hierarchical structure that sub-divides the

major deliverables into more manageable tasks and activities. It can be
used to identify and track project cost and allocate tasks which makes it
a great tool for forecasting and improving accountability.
Gantt Chart is an illustrative bar chart that charts the start and finish
dates of each element in the project. It is most commonly used for
tracking project schedules and an excellent tool to present activities,
milestones, resources and set time frames.
Critical Path Method (CPM) is a visual presentation for scheduling a set of

interdependent project activities. This tool is used to arrive at the longest
duration for sequence of activities which is the shortest time possible to
complete the project. In case of an activity delay on the critical path it
directly impacts the planned project completion date. CPM benefits
project managers as it helps to expedite certain areas of work in case of
delays in some activities.
Program Evaluation and Review Technique (PERT) is a planning and

control tool that considers the best case and worst case of a task
estimate and also includes a most likely estimate to complete a project.
! !105
PERT charts and Critical Path Method (CPM) charts are often used
interchangeably, however PERT considers the time variations that can
impact the completion of a complex project. PERT also gives a visual idea
of the relationship of activities and is useful for projects with
unpredictable activities.
Flowchart is a graphical diagram representing a workflow where the steps

are shown using various kinds of boxes and connected with arrows to
show the process flow direction. It is a quality tool for analysis of
sequence of events and their relationships.
Histogram is a graphical chart where the independent variable is plotted

along the horizontal X-axis and the dependent variable is plotted along
the vertical Y-axis. It is a tool to represent statistical findings that are
relevant to the project like resource utilization, frequency of events, etc.
Cause and Effect Diagrams are useful as a project tool in business

improvement or quality management for gathering and organizing factors
during brainstorming. It is effective for mapping an entire operation and
is one of the seven basic tools of quality control.
Checksheet is one of the seven tools of quality control for both

quantitative and qualitative data gathering and analysis. They aid in
systematic collection and organizing when data can be observed and
repeatedly collected.
The project management team uses a tool they believe is the most
accurate and best for the project and one which satisfies the client.
Ultimately this is a judgment call based upon their understanding of the
project and the fulfillment of goals.
! !106
1. Name 5 tools used in project management and briefly explain their

characteristics.
2. What advantages does the project get from using WBS and what are the
pitfalls to be aware of?
3. What are the advantages of using a Project Plan and identify

disadvantages if any?
4. How is Gantt Chart useful as a Project Management tool?
5. What is the difference between PERT and CPM?
! !107
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
! !108
TOOLS FOR PROJECT INITIATION
Chapter 4
Learning Objectives
Introduction to Tools for Project Initiation

Various Project Initiation Activities
Checklist as a tool
Project Charter Document and its advantages
RACI Matrix with explanation of roles
Stakeholder Register and its advantages
Requirements Document and importance of requirements
Successful Collection of Requirements in Projects
Project Vision Statement and its advantages
Project Scope importance in Initiation Phase
Conclusion of tools at initiation stage
Structure
4.1 Introduction
4.2 Project Initiation Activities
4.4 Checklist
4.5 Project Charter
4.6 RACI Matrix
4.7 Stakeholder Register
4.8 Project Requirements Document
4.9 Project Vision Statement
4.10 Project Scope
4.11 Conclusion
4.12 Summary
! !109
4.1 INTRODUCTION
Project Initiation is the process of formally authorizing that the project

should continue to the next phase. Boundaries of a project or a particular
phase are defined and appropriate stakeholders approval is obtained to
commence work related to project planning and project execution.
Project initiation is specific to the organization. There are many standard or

common tools of project planning, however the project initiating tools must
network with the organization's business environment and strategy
planning process. Hence they may be informal.
The project goals and objectives are directly linked to the business
strategies. These are different for each business and subject to changes
with the evolving environment and time. Approval of project by
stakeholders is based upon a combination of the organizational structure
and the priorities involved.
Once the project manager and team are oriented with the organization,
they will need tools to help in project management work. This is a very
important phase and should not be rushed through since various tools
enable to develop a solution into a project.
Various phases of project are depicted below and project initiation is a

crucial phase that leads to project success or failure.
! !110
4.2 PROJECT INITIATION ACTIVITIES
There are various things that the Project Manager and project team need
to consider during initiation phase of the project. The diagram below shows
the different areas that require planning during initiation; this is not
exhaustive and there may be other areas as well to consider depending on
the type of project.
Key features of project initiation phase have been discussed in the first
chapter of this book. Activities that are undertaken at this phase require
the use of systems, tools, techniques and methods.
Defining the project vision is to understand what the project is seeking to

achieve and the purpose of project initiation. Scope defines the boundaries
and exclusions for the team so tools are to be used that will assist these
processes.
Involvement of stakeholders and sponsors during initiation phase are key

to the success of the project. Schedule established at this stage estimates
the time required to accomplish the deliverables with available resources.
Working on risk analysis like identifying and preventing risks, management
and monitoring processes are established from initiation phase itself to
mitigate and minimize risk occurrence.
! !111
A Benefits Monitoring Plan will be a useful tool to keep track of the

expected benefits, and this should be reviewed throughout the project to
ensure that the project is on target to deliver the expected benefits.
4.3 PROJECT INITIATION TOOLS
The sophistication of systems and tools or methodology used will greatly

depend on the organizational structure and its maturity. Project- oriented
and PMO-enabled mature organizations usually have a myriad of project
management related systems, tools and processes to facilitate them
through various phases of the project. A possible disadvantage could be
that they may be strict and enforced even if there were alternative
solutions to address the situation. However advantages far outweigh the
drawbacks.
A small or a weak matrix organization may not likely have a formal project
management methodology. In an average sized organization probably at
least a Charter, Plan and Status Report templates may be available and
implemented. These tools are a plus to help with establishing a proper
methodology for the organization and project.
Adopting proper project management standards, methodologies and

procedures that work well in the given circumstances is a must which
means avoiding shortcuts. Some project managers have experienced their
best and easiest project by applying project management methodologies
taken from the industry best practices and tailored to address the project
and organization's uniqueness.
There are many instances where Microsoft Project is the tool used by
projects. As long as it's facilitating the project in various phases, it's ok to
use it as a tool. Whichever tool is used for project management application,
it must be only after a detailed methodology and process is established to
make sure that the project is right and done right. An established and
stable baseline helps to avoid the inevitable re-work imposed by changes.
The Project Management Institute has identified several outputs from the
project initiating processes which are namely the Project Charter, a Project
Stakeholder Register and a Stakeholder Management Strategy. On smaller
or plain projects all these could be rolled into one document. On bigger
more complex projects each of these are created as separate deliverables
! !112
during project initiation. Depending upon the project complexity and

uncertainty various tools and techniques are used to create these
documents.
4.4 CHECK LIST
A start up check list is a good administrative tool to ensure that all start up
tasks are completed prior to starting the project. Once the check list is
developed, it can be used by the project team to ensure that the tasks
necessary to the project are completed.
While the check sheets discussed in previous chapter are all for capturing
and categorizing observations, the checklist is intended as a mistake-
proofing aid when carrying out multi- step procedures, particularly during
the checking and finishing of process outputs.
A project check list is a way for project manager to organize and

communicate tasks prior to starting the project.
For large scale projects, some of the tasks related to start up like the initial
planning steps and the initial phase can be faced with impatience. Hence
use of the project check list can be a trigger to complete tasks that teams
tend to overlook.
The check list is a blend of action list and a tool to verify that required
tasks and steps have been accomplished. A system within the project team
to use check list as a tool that ensures prioritization of items to be
completed and all information has been reviewed and approved must be
lauid out.
Project Manager is the owner of start-up Check list with inputs from the
entire team. The format of check list can be according to the needs of the
project and can be modified as required. Each item on the check list should
have an area for status (Y=Yes, N=No, P=Pending) and additional
comments.
! !113
4.5 PROJECT CHARTER
The Project Charter is a short document that refers to a statement of

objectives in a project. It sets out the basic attributes of the project,
detailed project goals, roles and responsibilities and the project
boundaries. It identifies the main stakeholders, level of authority of the
project manager and captures understanding of the project by the project
sponsors and senior management when they approve the project to go
forward into a planning phase.
The charter is not an in-depth project plan but is a high-level document.

The expectation of the customers and the senior management for the
project results is described. Charter is normally developed by the sponsors
of the project, not the project team.
The charter may be a one-page document on small and simple projects as

against larger projects where the charter may run into many pages. It can
be a guideline for future projects and an important article in the
organization's knowledge management system.
The project charter would consist of new offering request or a request for
proposal and is part of the project management process required by
Customer Relationship Management (CRM).
The charter document is used by the project team to assist in the planning
process. Development of a project plan with the potential of achieving the
project objective within the project schedule and budget boundaries can be
found in the charter. It should state clearly who is responsible for what on
the project. This statement will frequently become very handy for the
project team and a good reference.
! !114
4.5.1 Advantages of Project Charter
Some of the prominent benefits of Project Charter for a project are:
Works as a tool to improve project management processes

Defines roles and responsibilities of senior management and project
teams
Project sponsorship is assured with the existence of a Project Charter
Improves and lays the way for good customer relationships
Communications can be improved to a greater extent
Aims at implementing industry best practices.
4.6 RACI MATRIX (RESPONSIBLE, ACCOUNTABLE,

CONSULTED, INFORMED)
RACI matrix is a great tool which can be used after arriving at the high
level deliverables of a new project and after identifying the key
stakeholders. The RACI is a visual depiction of who is responsible and
accountable and who should be consulted or informed. This tool can help
the project manager to have a sound and thorough communication plan at
the initiation phase of a project.
It is incredibly vital to identify the various tasks and identify the roles of
people or teams and finally their responsibilities for every task. All roles
may not have a responsibility towards a task and a given task may not be
related to all roles. A task is usually associated with at least one role or in
some cases multiple roles. Connection of a role with a task can be divided
into four key types:
Responsible - Responsible is the one who performs the work. He/she is

the 'doer' of the task or activity. The person 'Responsible' for the task
need not be accountable for that task. However in some cases the same
person can be 'Responsible' and 'Accountable'. The degree of
responsibility can vary and multiple roles may share responsibility of a
single task. The RACI matrix helps to identify if a role has too many or
too few responsibilities and the project manager can try to adjust the
work load to achieve positive results.
Accountable - Accountable is the person or role who has the final

authority and accountability for a task. There is only one role or
! !115
individual accountable per task and it cannot be delegated to other roles

or individuals.
Consulted - Consulted are the people/roles that are consulted and

opinions sought before and during the task. If there are many people
who are assigned Consulted roles the time taken to accomplish the task
increases. If there are few or no Consulted roles assigned to a task it
means that there is no counsel for the task and it runs the risk of being
under performed.
Informed - Informed are the people/roles who are informed after the
task is completed. It is important to make sure the right people/roles are
informed after the task is performed successfully and kept up to date on
the progress.
The above four key links of a role to a task are shown in a simple task vs
Role diagram which is called RACI matrix. It is a responsibility assignment
matrix to assign tasks, activities, responsibilities, accountability, decision
making, supporting to team members of a process/project and clarify
expectations on the level of their participation.
4.7 STAKEHOLDER REGISTER
The Stakeholder Register is started during the initiating process and

documents the stakeholder planning process. However it is continuously
updated throughout the life of the project. The Stakeholder Register tracks
the new stakeholders and the changes in role or interest of stakeholders
due to changes in the priorities or reorganization. It guides the project
manager in making decisions with respect to stakeholder interaction
planning.
A project manager uses the Stakeholder Register as a tool to guide

elements of the Project Communication Plan. Project risks, reviews and
meetings are often structured based upon the strategies that are
documented in the Register.
! !116
4.7.1 Advantages of Stakeholder Register are:
This is one of the most important process tools where all stakeholders
engage with the manager to know and understand each other better.
Communication expectations are agreed upon and the manner in which

communication is managed between the stakeholders is established.
It provides a platform to both the manager and stakeholder to discuss,

concur and agree upon a common set of Values and Principles, which all
stakeholders will stand by.
Identification of all the stakeholders involved, whether internal or

external can be done by creating a stakeholder map.
Stakeholder Register paves the way for an honest and transparent

stakeholder relationship.
4.8 PROJECT REQUIREMENTS DOCUMENT
Project Requirements Document is a formal document describing all of the

requirements for a project. It defines the issue that is to be resolved with
the solution but does not provide the technical solution. The requirements
document addresses the planning and execution of the project and is an
essential element in the project management process. They are used as
the basis for creating a design or implementation, developing test plans
and determining project completion as well as project assessment. The
document can contain all of the technical and managerial requirements
appropriate for the enterprise and the type of project work. The document
can easily be hundreds of pages in length as it can cover process,
integration, prioritization, security, training, quality, change management,
etc.
Requirement collection is key to every project and for the project

management function. Understanding what the project will eventually
deliver is critical for the success of the project team. The project manager
can agree on the end deliverables of the project and how they address the
client's specific requirements.
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Requirements collection might seem straightforward; however many

projects have failed due to wrong or insufficient requirements gathering.
We will discuss on this in the following section.
Following is an illustration indicating where the requirements

collection comes in a project:
4.8.1 The Importance of Requirements
Once the project is initiated, the business analyst team collects the project
requirements with various methods which are then converted into technical
requirements after which the project implementation begins.
In some cases the business analysts are unable to capture all the
requirements or tend to overlook some requirements related to the project
and even the client does not recognize the requirements gaps of the
project at this stage. The missing requirements have a significant impact
on the cost and schedule of the project. Hence the requirement collection
process is a very important phase of any project.
Process for Requirements Collection
There are a few methods used by the business analysts to gather

requirements depending on the project, client and nature of industry.
Potential end-users of the system can provide valuable inputs via face to
face interviews or workshop method can be used if there are many end
users. The most effective way of discovering all the necessary
requirements is by questioning and cross questioning as well.
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Questionnaires can be used effectively as a supporting tool for interviews

or a workshop.
Points for Successful Requirements Collection
Following are some of the features for making the requirements

collection process successful:
Verification with the customer about their requirements when in doubt

without making assumptions.
Involvement of end-users involved from the start will help to get their
support
Clear definition of the scope and obtaining customer's agreement helps

to successfully focus on project scope.
Ensure that the requirements are realistic, specific, measurable and

attainable.
Requirement document is the main way to get the client's agreement and
it is better to get client sign off at this stage. Hence there should not be
scope for any gray area in this document.
Until the requirements are crystal clear it is better not to commit about
the solution or deliverable to the client.
A prototype to visually illustrate the requirements would be a good idea.
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4.9 PROJECT VISION STATEMENT
The project vision statement is a tool used by the project manager / leader
to create a common vision for the team. This also enables to motivate the
team to do their best for client satisfaction and achieve project excellence.
The vision statement should include objectives from the client's side, be
clear and have measurable criteria for success. By building the case for
undertaking the project, negotiating the scope and providing guidelines for
teamwork, the statement is able to align and gain consensus with the team
on project definition.
Vision is drafted in the early initiation phase to crystallize the enterprise's

rationalization for the project and for driving client justification for the
project. Team meetings and brainstorming sessions with representatives
from all cross-functional groups is the best way to begin creating this
statement. Items can be reviewed and then edited after discussions to
finalize the project vision statement. Assigning actions to resolve open
issues, investigating alternatives to address client requirements, and
revising the Vision iteratively as decisions are made due to changes are
some features to ensure this document is a useful tool. At the end of the
project, this Vision Statements becomes like a contract for the project
documenting what accomplishments has been agreed by the team.
4.9.1 Advantages of Project Vision Statement
Building this statement early on during project initiation phase helps to

hash out the project definition.
Organizations can verity if there is alignment on what matters most to

the customer before the team plunges into detailed requirements specs.
Since goals are clearly defined, it guards against scope creep
Customers are identified and what benefits the project deliverables must
provide to them is listed out.
It is possible to arrive at an estimate and understanding the effort and

resources to deliver the draft vision.
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As the project goes forward, the vision document helps to ensure all
team members are staying true to the project's goals in every phase.
Focus on customers and benefits are achieved by alignment at vision

level.
It is important to maintain visibility for this document throughout the

project life cycle so that it keeps the key objectives at the forefront and
wards off scope creep.
4.10 PROJECT SCOPE
When it comes to project planning, defining the project scope is the most
critical step.
It is critical to clearly define the project scope during initiation. Failing to do

so can jeopardize the success of the project as scope creep can lead to an
increase in costs, a longer schedule and impacts the quality of project
result. Getting the project initiation right establishes the foundations for
the project and can make the difference between a successful and
unsuccessful project. If a project is started with an unorganized approach
without knowing what is supposed to be delivered to the client and what
the boundaries of the project are, there is very little chance to success.
Without a good and well defined project scope, project execution is almost
impossible. Clearly describing the scope boundaries with the client's
agreement will keep the project in control.
There are a set of defined objectives for the project to get funding and
project objectives can be used for arriving at the project scope.
Once the main deliverables of the project are compiled, by asking

questions about the processes and different aspects of the project to the
client, lot of necessary information can be obtained. Identifying the out of
scope also helps to understand the real scope of a project. It is pertinent to
document all items and revisit these to elaborate later.
Having successfully defined the scope of the project getting the sign-off
from the related and applicable parties will be a key item for proceeding
with the next phases of the project like requirements gathering.
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4.11 CONCLUSION
Project initiation phase can be overwhelming due to a lot of areas to be

considered. The purpose of project initiation is to get the project off to the
best start, gathering the right information, talking to relevant stakeholders
and planning the project in more detail.
The project initiation process will allow the Authority Group to decide
whether or not the project should continue to the implementation stage
based on the forecasted benefits and whether or not it is aligned with the
corporate strategy. The Project Initiation process should include input from
customers, end users, relevant stakeholders, project team members and
management team.
When planning the project during initiation it is always useful to use the
various tools and systems as these can be invaluable to prevent from
making a mistake in the longer run. Lessons learnt and reviews from other
similar projects can be used to make some sound judgments in the
initiation phase.
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4.12 SUMMARY
The project initiation phase is also called as project pre-planning phase

and is a critical phase within the project life-cycle. It consists of various
activities like developing a business case, feasibility study and project
charter. Establishing schedule within budget and resource constraints as
well as risk management is also performed in this phase.
Various tools are available to help with establishing a proper

methodology for the organization and project. Adopting proper project
management systems and tools that are appropriate in the given
circumstances is a pre-requisite for project success. The strategy is
dependent on the project size and complexity; however the use of any
tool must facilitate the project in various phases.
Project Checklist is a way for project managers to ensure all start up

tasks are completed prior to beginning the project. It also helps to
organize and communicate tasks and serves like an action list for multi-
step procedures.
The project charter provides outline for the project and gives the project
team and management a sense of direction for the project from start to
finish. It is an effective tool to articulate and evaluate key aspects of a
proposed project, and to provide information necessary to review and
determine whether the project should be initiated.
RACI matrix (Responsible, Accountable, Consulted, Informed) depicts the

involvement by various roles in finishing tasks for the project. It is a
useful tool in project initiation phase to clarify roles and responsibilities
for projects and processes with cross functional departments or teams.
Stakeholder Register guides the project manager in making decisions

with respect to stakeholder communications and tracks the stakeholders.
It is an important tool where all stakeholders engage with the project
manager to know and understand each other better.
Requirement collection is the most important step of a project. It will be

a big risk if the project fails to capture all the necessary requirements for
their deliverable and lead to disputes and disagreements in the future.
Requirement collection is a key responsibility of the project team. Until
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the customer signs off on the requirements it is better to hold off on

promise or comment on the nature of the solution or the type of
deliverable.
Project Vision Statement is like a document of deliverables agreed by the

project team after several meetings and discussions. It helps to clearly
define the project, focus on customers and prevents scope increase.
Defining the project scope at initiation phase is very crucial as it lays the
foundation of the project. Having a clear scope is fundamental to the
project to get funding and go further.
All the above systems and tools used in initiation phase help to launch
the project and avoid any inaccuracies in scope or objectives.
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1. Name any 3 project initiation tools and briefly describe their features.
2. What is Project Charter and why is it needed for a Project?
3. What is RACI matrix and how is it useful for project initiation?
4. Explain the importance of Requirements Document for any project.
5. How can a Project Vision Statement assist a project?
! !125
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !126
SUCCESSFUL PLANNING AND MANAGEMENT TOOLS
Chapter 5
SUCCESSFUL PLANNING AND MANAGEMENT
TOOLS
Learning Objectives
Systems and Tools used on projects
Tools in Project Scope Planning like Traceability Matrix, Project Scope

Statement and Deliverables Deployment
Tools and Techniques used in Project Schedule like Milestone Chart, Task
List, Calendar View, Critical Chain, Resource Leveling and Schedule
Acceleration
Resource Planning Tools as in Team List, Responsibility Matrix and

Staffing Management Plan
Tools in Project Budget Planning akin to Budget and Appropriations

Request
Systems and Tools such as Expert Judgment, Bottom Up Analysis, Project

Simulation and End Date for Project Management Estimation
Project Communication Plan as a tool
Tools and Techniques useful for Project Risk Management with details on
Delphi Technique, SWOT and Tollgate (Phasegate).
! !127
Structure
5.1 Introduction
5.2 Project Scope Planning Tools and Techniques
5.3 Project Schedule Planning Tools & Techniques
5.4 Project Resource Planning Tools & Techniques
5.5 Project Budget Planning Tools & Techniques
5.6 Project Management Estimating Tools & Techniques
5.7 Project Management Communication Tools & Techniques
5.8 Project Risk Management Tools & Techniques
5.9 Summary
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5.1 INTRODUCTION
In the previous chapter we have seen some essential systems and tools.
However there are many more tools that can be used by Project Managers
and Leaders depending on the project needs, client requirements, project
phase and the type of implementation. Software projects are different from
construction or defense projects due to the inherent nature, complexity,
risks, security, timeline, cost and various other factors. In this chapter we
will look at some more systems and tools that are used at various stages of
the project life cycle. It is possible that the Manager might decide to use
one or few tools or may need more tools than what is discussed here.
Nonetheless some of the common and useful tools are discussed here in
project phases like planning scope, schedule planning, resource planning,
budget planning, management estimating and communication tools. Key
tools used in project risk management are also dealt with towards the end
of the chapter.
5.2 PROJECT SCOPE PLANNING TOOLS AND TECHNIQUES
Project planning is at the heart of project management for every venture

and a clear scope is to be defined. Without a project plan and an
understandable scope it is not possible to manage and control project
activities. It becomes difficult or impossible to know if the right activities
are happening and if resourcing is adequate or if the project can be
completed within the preferred time. The project plan is like a roadmap
that guides the project team members throughout the project activities.
The development of a project plan may require several iterations to

become acceptable and approved. The planning process tries to minimize
the impact of risk by minimising risks on high priority and takes greater
risk on lower priority items. This optimization is based on management of
significant elements of scope, schedule, resource and budget which is
illustrated in the figure below.
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Systems and Tools are used in each of these cases to maximize the
benefits and success of projects. These are not to be ignored as they are a
noteworthy aspect in the success of projects.
The project scope includes all the deliverables and all the activities required
to create the deliverables. Project scope planning is linked with schedule
planning, resource planning and budget planning since each task or activity
must be scheduled to occur at a particular time within the allocated budget
and requires an individual or organization be assigned to do the work.
The project scope includes many additional activities that are unique to
managing the project like preparation for meetings, reviews, supplier
management and documentation. If a project manager considers only
product scope while planning the project, there is tendency to under plan
the amount of time, budget and resources needed to complete the project,
hence they have to consider beyond the product scope to arrive at project
scope.
Some organizations have customized tools to assist the project team with
scope planning. Following scope planning tools or techniques are helpful,
depending upon the uncertainty and complexity of the project.
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These are the Traceability Matrix, the Scope Statement, a Deliverables

Deployment, Work Breakdown Structure (WBS), and the WBS Dictionary.
5.2.1 Traceability Matrix
The Traceability Matrix is usually used on complex projects. It is a table

that traces each requirement through any related sub-project's
requirements and through the life cycle of the project to ensure that it is
fully satisfied. It can serve as a planning tool and tracking tool, as it helps
with the project's planning to meet the requirements, and tracks the
analysis results to show how much the requirement has been met.
Some of the types of requirements included in a traceability matrix

typically are organization's business goal, business processes, logistics,
regulatory requirements, security or product safety. At sub project level, if
necessary, interfaces control documents are used to control the interaction
of requirements between sub-projects.
5.2.2 Project Scope Statement
The Project Scope Statement is a document that describes the major

deliverables and provides a high-level description of acceptance criteria. It
also includes constraints and project exclusions and forms the basis to
provide clarity for the project team and stakeholders. For a simple project
the scope statement can be a paragraph and for a complex project the
scope statement may be several pages in length.
The Scope Statement is like a reminder of what the project is supposed to

do, and what it is not supposed to do. It is referred to during reviews to
ensure the project stays on course; work is accomplished and does not
suffer scope creep.
5.2.3 Deliverables Deployment Diagram
This is a scope planning technique for intense projects where the starting
point is to identify the deliverable of the project and then work on
requirements and resources to create that deliverable. This technique is
very powerful when the project deliverable changes which calls for a
revised scope. The key project is broken down into actionable activities and
a diagram or many diagrams are produced to show sufficient detail to
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deploy the components of the project. For example, in a software project

with various configurations, a deployment diagram will be drawn up for
each configuration.
Major project deliverables can be decomposed by subdividing deliverables

and described in the Deliverables Deployment Diagram. They can also be
decomposed based upon business process or department wise or project
phase. This tool assists to control the project as rolling up lower levels of
deliverables or activities provide a high-level assessment of project status.
5.3 PROJECT SCHEDULE PLANNING TOOLS & TECHNIQUES
Project Schedule is a key part of project management and tells when the
activities should be done, in what sequence and what has been
accomplished. The schedule is reviewed periodically due to uncertainty on
the project and various changes. The project schedule is a time-based
sequenced description of all the project activities. It functions as a time-
based plan of the project's vision and becomes a basis to monitor and
control project activities.
Time is a constraint for most projects and hence use of various tools allows
the project to meet its goals within the scope, schedule, resources and
budget. These systems and tools help to determine time delays, resource
reallocations, impact on project and tracking the progress. Some of these
tools are discussed below.
There are an array of tools and techniques for displaying and analyzing the
project schedule. Depending upon the project objectives and risks,
different techniques are used to focus on the relevant aspect of the project.
Some of the commonly used techniques for displaying the schedule are the
Gantt Chart, Network Diagram, Milestone Chart, Task List, Calendar View.
Gantt Chart and Critical Path Network diagram have been discussed in
Chapter 3, so we will briefly look at the other tools here.
Schedule analysis tools used are Critical Path Method, Critical Chain
analysis, PERT analysis, Resource Leveling analysis and a variety of
Schedule Acceleration Techniques.
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5.3.1 Milestone Chart
This is one of the best tools the project manager can use to verify whether
the project progress is on track. The milestone chart is portrayed on a
project time line and displays the key project milestones. These milestones
are used by project manager as major reporting points to the sponsor and
senior management. Large complex projects may have several hundreds of
tasks and rather than providing senior management with status reports at
that level of detail, the milestones provide interim reporting points. A
focused sub-project for each milestone gives the Leads a framework for
planning and tracking project activities. A simple Excel template can also
serve the purpose of a milestone checklist for a small project. The
milestone chart of checklist should be a live document that should be
updated once or twice a week.
Below is a simple example of how Project Milestone Chart is displayed for a

project from April through August and with different phases.
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5.3.2 Task List

The Task List is a simple schedule display tool which can be very useful for
the project manager to manage team members. It is an action item list
that contains all the tasks that the member is responsible for completing.
In large projects there may be numerous tasks but each member is
assigned only a small number of those tasks depending on their skill set
and expertise. With this task list, the team member can review their "to do
jobs" and understand what they must do on the project without having to
go through hundreds of tasks. Even for global projects with teams spread
across multiple countries and continents, this tool is the best method for
communicating, scheduling and tracking of the work from the extended
team members. Another advantage of this tool is that it provides a focus
for the individual as to what they need to do and improves accountability.
5.3.3 Calendar View

A calendar view of the project gives an outlook on the current activities for
the day or week or month. Every activity that should be happening on any
given day is listed in that day on a calendar of the week / month / year.
The usefulness of this tool is because it provides an excellent perspective
of what tasks need to be accomplished on each day. The primary purpose
for this view is to aid in the daily staffing and assigning resources to
achieve completion of tasks / activities. This is most commonly used when
the resources are assigned every day from a pool of resources like testing
personnel or operators.
5.3.4 Critical Chain

The Critical Chain tool is used when resource leveling (changes to project
schedule) has delayed the end date of the project. Critical chain
reprioritizes the work and provides simple tracking principles to accelerate
the project and ease the burden on project management. In this approach
the network diagram and the critical path are developed and resource
leveling calculation is done. Once this is already completed, the
constraining resource or most constrained one if there are several
constraining resources is determined and a chain of project tasks that the
constraining resource must contribute to is determined. The estimates are
reviewed for those tasks, and work that can be shifted to an unconstrained
resource is reallocated. This sequence of tasks is known as the critical
chain and is scheduled based upon the availability of the constrained
resource. All other tasks are then scheduled to occur in parallel with the
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critical chain to ensure that the tasks and sequences complete prior to the
need for their results by a critical chain task.
5.3.5 Resource Leveling
Resource leveling is the project management function of resolving project

resource over- allocation where a resource has been assigned more work
than can be accomplished in the available time. In most scenarios, over-
allocations can be remedied by moving the tasks to accommodate the
resource's availability.
In some instances, project managers compete for the most critical

resources in an attempt to align them with the most critical initiatives
which will impact project schedules. In these situations the resources'
assignments need to be managed not only in the current project, but also
planned and are to be proposed for assignments in other projects as well.
Hence resource leveling technique is used to smooth out the peaks and
valleys with the required and available project resources. The best
allocation of resources assigned to the project can be determined which
leads to changes in the project schedule and this is applied when the
project has been planned with a high degree of parallelism. The float in
case of the different parallel paths is used to reposition tasks so that the
resources required to conduct that task are not needed simultaneously on
another task.
To do resource leveling, resources are assigned to critical path tasks first.

Only after that the resources are assigned to the other tasks using float to
relocate tasks between their earliest start and latest finish time and at a
time when resources are unallocated. If there is still an insufficient amount
of resources at some time in the project even after using float, then the
tasks are stretched past their latest finish time until there is resources
availability. The consequence is extension of the end date of the project.
For large projects, software is used to manage resource leveling technique.
Various factors like project constraint dates, estimates to complete

forecast, non-alignment with the constraints and some dependencies play a
role in deciding whether the project manager would choose leveling tool or
adjust the project schedule manually.
! !135
5.3.6 Schedule Acceleration
Schedule acceleration tools and techniques are used to shorten the overall
duration of the project. As they reduce the planned total duration of the
project, some other aspect of the project might become risky. Hence they
need to be deployed carefully with an update to the project risk
management plan. There are different schedule acceleration tools and
techniques, selection of one or a combination depends on the uniqueness
of the activities to be accelerated and the general risk sensitivity in the
project.
Buffer Management - Project managers tend to use a conservative

estimate to allow for buffer due to uncertain activities. This is a conscious
decision to manage the unknowns that might happen. Buffer management
removes or reduces the buffer from the activity estimate and results in
creating an aggressive activity estimate and result in reduced activity
duration. The project manager needs to maintain a project-level schedule
reserve to balance for the activities that risk being late.
Crashing - Some activity durations are restricted by constraints of resource

availability. In these cases more resources would enable a faster
completion and here tools like crashing accelerate an activity by adding
additional resources. This can be done for some activities and will lead to
increase in the overall cost of the project for the additional resources.
Fast-tracking - This tool accelerates the project by beginning activities prior

to the completion of all the predecessor activities. This technique is feasible
when the predecessor activity has a preliminary deliverable that the project
management team considers to be stable and when there is a preliminary
result of the predecessor activities.
Split-to-Phases - When the project has multiple and separable objectives

the scope of the project is divided into phases that are based upon the
activities unique to a project objective. This allows focus of resources on
the activities supporting one of the project objectives at the expense of the
activities supporting a different objective. Although this results in an early
achievement of a portion of the project, it causes delay in some other
portion of the project and can also lead to increase in cost.
! !136
These methods can be used separately or in combinations. Whenever a

schedule acceleration technique is used, the risk assessment must be
updated to include the associated risk that can arise if the tool or technique
fails to deliver the potential benefit.
5.4 PROJECT RESOURCE PLANNING TOOLS & TECHNIQUES
The project resource plan gives an account of how the various resources
will be applied to the project activities. Resourcing plan includes the
identification and deployment of human capital and the impact of their
hours worked and activities on the project progress. Resource planning is
connected to schedule planning and scope planning since the resources are
required to perform the activities within the project scope at a particular
schedule.
Many organizations have customized tools to assist the project team with
resource planning which can be safely used depending on the complexity of
the project. Some of the resource planning tools are Team List,
Responsibility Matrix and Staffing Management Plan, all of which deal with
assigning and managing human resources on the project.
5.4.1 Team List
This is a very simple, nonetheless a vital project management tool which

contains a list of all the project team members and their contact
information. The Team List is used to ensure that a representative from
each function or department that is required to perform activities on the
project has been identified and is reachable.
Team List combines ease-of-use with practical business sense to give

projects and teams the peace of mind that work will not be halted and
there is continuity on project. Another way to look at it is from the
perspective of team collaboration and how teams can reach out to
members.
! !137
5.4.2 Responsibility Matrix

The Responsibility Matrix (also called the Accountability Matrix or the Roles
and Responsibility Matrix) is a table that provides transparency and clarity
for all the project team members regarding their expected level of
involvement at various phases of the project. The project tasks or activities
are listed down the vertical side of the matrix and the project team
members on the horizontal side of the matrix. The matrix helps the project
team member responsible for planning that each task identified in the
matrix is executed properly and shows the role of each team member for
every activity. The Responsibility Matrix serves as a tool for communicating
assignments to the team members with respect to their capacity and
capability.
5.4.3 Staffing Management Plan

The Staffing Management Plan is like a spreadsheet that specifies how the
pool of available human resources will be deployed across various sub-
projects associated with the complex project. In case of large and complex
projects, the execution is managed by dividing the total work into a set of
inter-related focused smaller projects. The Staffing Management Plan
shows how a particular resource or pool of consultant's time is to be
allocated to each sub project, for instance 40% to sub-project A, 35% to
sub-project B and 25% to sub-project C for a period of time. This is useful
when key resources and teams are likely to be working on several of sub-
projects. The Staffing Management Plan must therefore be integrated with
the high-level schedule of each sub-project so that resources are deployed
at the appropriate time and so that the program manager will be aware
when resources will be available for redeployment to other sub-projects.
! !138
5.5 PROJECT BUDGET PLANNING TOOLS & TECHNIQUES
The project budget plan is a description of the planned financial impact of

the project on the financial accounts, statements and reports of the
organization. Budget planning is interlinked with resource planning,
schedule planning and scope planning since resources are required to
deliver the project scope following the time schedule and within the
allotted budgets.
5.5.1 Project Budget
The Project Budget shows the team's objective to utilize the resources on
project activities. It can be in the form of a spreadsheet listing the project
activities row wise and designating each column as a time period. The total
for each column is shown and a cumulative total is arrived at that shows
the total budgeted costs from project start through time period in each
phase. This Project Budget data is transferred to the business's financial
planning and management system and to project financial tracking
systems. Budgeting templates, forms and screens are used to assist the
project team with the budgeting process.
Graphs are also used to represent the total budgets to assist in

communicating the spending needs of the project.
5.5.2 Project Appropriations Request
Many projects lead to creation of an investment asset that is reflected as

an asset in the Balance Sheet. Various asset related transactions like
depreciation, additions to asset have an impact on the Balance Sheet,
Earnings Statement and impact on taxes and reporting to shareholders.
The project team communicates the investment details to the
organization's financial management through the Project Appropriations
Request process.
Some of the elements in this process are - Identification of the asset,

purchase price or cost of the asset, date the asset will be available for use.
Project Appropriations Request also provides additional information such as

the financial benefit of the asset to the organization, return on investment
! !139
calculation, depreciation schedule for the asset, asset's residual value once
it is fully depreciated.
5.6 PROJECT MANAGEMENT ESTIMATING TOOLS &

TECHNIQUES
Some of the challenges faced by a project manager are estimating the

effort, time and resources needed to complete project activities. This is
because projects are unique and there is the inherent uncertainty
associated with many activities.
If there is uncertainty in one aspect of an estimate it leads to uncertainty

on the other aspects also. For example if the effort needed to complete the
project scope is uncertain then the time and resources needed for this
aspect will be uncertain. If there is uncertainty of resource availability, then
the time or number of hours required to complete the activity will be
uncertain.
5.6.1 Expert Judgment Estimating

Expert Judgment estimating is easy when there is an expert on the project
who can provide an estimate based upon their understanding of the project
requirements. If the expert is knowledgeable there is the advantage of a
quick and often the most accurate estimate for uncertain activities.
However there is the disadvantage that an expert may not be easily
available and even if the expert is available there may be no solid rationale
for their estimate. Nonetheless this is a widely used tool by most project
managers since getting some expert advice and guidance on the project
based on the expert's experience and skills is definitely worth it. It can be
in the form of a simple report or if advanced software is used for high tech
projects then this kind of estimate might be very detailed and
comprehensive.
5.6.2 Bottom Up Analysis

A Bottom Up analysis is a technique where the project team decomposes
the work into very small activities. The idea being the smaller the project
activity, the easier it is to draw estimate since the scope of work will be
very small. Finally all the estimates of these small activities are added up
into subgroups to arrive at the project total. This kind of estimate is usually
more accurate since the work is better understood at micro level. This
! !140
technique can be very time consuming and it may be impossible to

decompose activities that cannot be easily defined.
5.6.3 Project Simulation
A Project Simulation is a way of combining the uncertainty to understand

the likely project outcomes. The project, relationship between activities
and the degree of uncertainty for the activities is modeled and entered into
the project management software being used for simulation. A simulation
is then run to arrive at the various feasible outcomes and their probability
which is based on a result of different inputs for the uncertain variables.
In projects, the goal of simulation tool is to analyze and arrive at different

possible outcomes and help in reducing the project risk by choosing the
best project plan.
5.6.4 Estimating Based upon Project End Date

For some projects the end date is set even before the scope and
deliverables are defined. For example Y2K projects where the date was
determined and deliverables had to be complete to meet the Y2K
challenges. In such instances, a high-level time line is created beginning
with the end date and going backward to the present time. With the
amount of time available for the major activities, the project team works
on the required deliverables, available resources and budgets allocated
during the time period. Basically, the schedule is fixed and the scope,
budget and resources are varied to create a viable project. This might
require an iterative estimating approach in which case the high level plan is
first established and estimates for the activities are developed following
which iterations are done by varying resources, budgets and scope until a
viable estimate can be arrived at.
! !141
5.7 PROJECT MANAGEMENT COMMUNICATION TOOLS &

TECHNIQUES
Communication is a fundamental ingredient of project management.

Projects are unique one-of-a-kind set of activities due to the inherent
nature of project work as compared to process work. In a process oriented
industry, the same steps are repeated in the same sequence in the same
way with the same set of people and communication skills would not be as
significant. But project work is always different which makes good and
effective communication imperative. Project team members need to
understand what is required on the project, when it is required, how it
should be done, and all the other integration activities. Without good
communication, projects become chaotic.
The methods and frequency of communicating depends on the nature, size

and complexity of the project. Simple and focused projects require
minimum communication since there are few persons and maybe only one
or few stakeholders involved. The project manager can often handle the
communication through informal channels such as one-on-one meetings or
calls to all of the team members and stakeholders. When dealing with
complex full-scale global projects, the communication focus needs a big
shift. The project manager needs to spend dedicated time to keep
everyone on the same page and keep the team and concerned parties
aware of project status, issues, and changes. The project manager ends up
spending virtually all of his or her time communicating with various team
leads, team members, sponsors, stakeholders.
It will not be an exaggeration if we say that communication is risk

management. The program manager or project manager is constantly
communicating between the various teams that manage sub-projects to
ensure all the activities and sub projects integrate well. This also ensures
guarding against an issue in any sub-project or team cascading into all of
the others.
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5.7.1 Communications Plan
This is a primary tool and technique used by project managers to aid in

communicating with the teams. Having a Team List and conducting an
assessment will help the Project Manager to have a practical
communication plan. Use of good presentation skills, good writing skills
and good interpersonal skills during meetings and interactions are very
valuable. In some organizations, Human Resources or Training department
provide some training on these areas and cross country cultures especially
when there are global teams on multi-national projects.
5.7.2 Need for Communication Plan
Since project work is often new or unique, the chance for

misunderstanding is prevalent due to translations, background noise in
meetings and phone conferences.
Listening is a process of hearing, understanding and taking action. Team

members must be present in the meeting to hear the message. For virtual
team members appropriate channels of communication like teleconference
or net meetings can be arranged to ensure they actually hear the message.
Once the team members understand the message they translate the
message into desired actions leading to progress within the project.
Team members who are from a different country or culture and do not
understand the acronyms or whose native language is different than the
normal communication language within the project may not fully
understand the message although they can hear the message clearly. The
project manager or team leader can have a direct conversation to ask them
what they think the message requires them to do.
To minimize misunderstanding in projects, there is no established

prototype, rather it is strongly encouraged to have a Communication Plan
and inculcate the habit of "Repeat it back" for all team members and judge
from the performance of the team.
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5.7.3 Project Communication Plan
Communication Plan is present in most projects in some form. Many

project managers do not consciously develop one but tend to adapt
something that exists or leverage from a previous project. They may also
follow a procedure instituted by the PMO or have ad hoc communications.
A conscious decision as to what communications need to occur will pave
the path for a successful project. Some of the relevant factors are:
Management meetings tend to provide managers with information that

they need or want. This is to be managed in the required frequency and
the content. The management meetings whether face-to-face or virtual
should be planned and conducted properly. A poor management meeting
jeopardizes support for the project and reflects badly on the project team
and the project manager / team lead capabilities.
Project team meetings can be regularly scheduled on weekly / daily basis,

short ad hoc conversations, conference call updates, chats or any variety of
other communication approaches. Depending upon the nature of the
project and size of the team, these are required for the project manager to
track the day to day work of the project and resolve issues in the initial
stages itself. These meetings also allow bringing to the table any
integration issues with sub-projects and ensures all team members are
aware of the happenings and requisite action is taken to perform as
required.
Periodic management reports are provided by project managers to the

management team usually in standard template formats. These are for
review by managers who are not direct stakeholders but who are
interested in the project and its status.
Project records are the method that the project team uses to communicate
to the future business team members, the next generation project, or
archive as records for lessons learned.
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5.7.4 Communication Technology Assessment
The type of communication technology used by the project manager will

depend on the organizational limitations of the project team and
stakeholders. Factors like the team being co-located, confidentiality of any
information, communication facilities available and the organization's
culture for conducting discussions influence the choice of technology like
formal meeting, informal chat, email, teleconference, webex, etc. Each of
the communication technology has its advantages and disadvantages for
use in a project environment and must be used depending on the ideal and
effective communication needs.
5.8 PROJECT RISK MANAGEMENT TOOLS & TECHNIQUES
All projects have risks and it is the job of the Project Manager to identify
and analyze these risks as well as develop appropriate response and
monitor the risks as part of the Risk Management Planning Process. While
these personnel are often key participants for risk identification, all project
personnel should be encouraged to identify risks Risk identification is an
integrative process and risks can be positive or negative. Negative risks are
the ones that are likely to result in project failure and hence the tendency
is to focus on these more. However positive risks might be identified early
in the planning phase as they provide opportunities for the project team to
perform better and the project manager can take advantage of them for
the benefit of the project. Negative risks also referred to as threats can be
circumvented if addressed early.
Various systems and tools are used to monitor and track the risks
throughout the life of the project. Some of them are - Delphi Technique /
Root Cause Analysis / SWOT Analysis/ Cause and Effect Diagramming /
Influence Diagramming / Flow Charting / Brainstorming
/ Interviewing. We shall look at few tools here.
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5.8.1 Delphi Technique
In this technique a facilitator distributes a questionnaire about important

project risks to experts, responses are summarized (anonymously) & re-
circulated among the experts for comments. This technique is used to
achieve a consensus of project risk experts and other technology experts
which helps to receive unbiased data, ensuring that no one person will
have undue influence on the outcome. The advantage is that this is a
systematic forecasting method with structured interaction among a group
of experts on a topic. The Delphi Technique typically includes at least two
rounds of experts answering questions and giving justification for their
answers, providing the opportunity between rounds for changes and
revisions. This process continues until all participants reach a consensus.
The multiple rounds, which are stopped after a pre-defined criterion is
reached, enable the group of experts to arrive at consensus on the subject
being discussed.
The experts at each round have a full record of what forecasts other
experts have made, but they do not know who made which forecast.
Anonymity allows the experts to express their opinions freely, encourages
openness and avoids admitting errors by revising earlier forecasts.
The aim is to clarify and expand on issues, identify areas of agreement or

disagreement and begin to find consensus.
5.8.2 SWOT Analysis
SWOT analysis is one of the most useful management tools for assessing a
project and the factors that will help or hinder them in realizing the
objective.
There is a direct relationship between SWOT and risk management. The

presence of risk may mean a threat or opportunity (double side of risk) for
the project being analyzed. Assessment aids in getting an overview of
options on how to lower probability of threat and increase probability of
opportunity. This method is used for assessment of possible risk in the
future where SWOT analysis is a good source of suggestions. The principle
lies in determination of strong and weak sides from possible chances and
risks resulting from environment and other factors inherent to the project.
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SWOT is simple in concept and easy to remember, it can help to uncover

opportunities that can be well exploited. And by understanding the
weaknesses of the business, threats can be eliminated and managed better
rather than being caught unawares.
With the use of SWOT framework, a strategy can be formulated to

distinguish from the organization's competitors which also helps to
compete successfully in the market.
Below is a picture of SWOT analysis.
Steps in SWOT Analysis are:
1. Describe the objective relevant to projects
2. Describe the following for the project
- Strengths - this is often internal to the organization and gives an

advantage to the organization over others
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- Weaknesses - this can be internal or external and are the

disadvantages of the organization relative to others
- Opportunities - Generally external factors and potential aspects of the

organization or operating environment that could be exploited to its
advantage
- Threats - Generally external factors and potential aspects of the

organization or operating environment that could lead to damage
3. With the objective or direction that these all suggest, the results are
displayed in a simple matrix that can be arranged in various ways as
shown in the diagram earlier.
Potential items may happen which is exactly the same as risks (can be
opportunities or threats). There is a link between SWOT and risk
management. Threats and Opportunities in SWOT analysis will be
directly applicable to risk assessment.
Strengths and Weaknesses are actually positive (upside) or negative

(downside) incidents or issues which may not be preventable but their
impacts can be affected by dealings.
The advantage is that SWOT analysis and risk assessment are completely
integrated and the items identified can be managed with Actions.
5.8.3 Tollgate/Phasegate Planning
Tollgate planning also known as Phasegate planning divides the project

tasks into phases and is used to control high project risk. Each phase is
structured to be able to resolve a major risk issue on the project. A
Tollgate planning and review will help to determine if all the goals in a
phase have been completed successfully and if the project can move to the
next phase. The risks are addressed in each phase in a manner that
minimizes the impact on later phases. The main task is to define tollgates
and checklist items to be completed for each tollgate.
A Tollgate Review, as the name indicates, is like a checkpoint at which the

various team members meet and determine whether the work has been
performed as indicated in the project plan and whether the objectives
! !148
mentioned have been achieved. For projects based upon the DMADV
methodology, tollgate reviews would be established after each of the 5
phases: Define, Measure, Analyze, Design and Verify.
Some of the tools that can be utilized to assist Tollgate planning and review
are Check Sheets, Project Deliverables Document and List of Milestones.
The Tollgate planning tools are excellent for managing risk because as eac
h phase completes, a business decision meeting (tollgate) is scheduled to
review the results of the work from the preceding phase to determine
whether the risk has been adequately mitigated. This is shown in the
simple illustration below.
Depending on the risk mitigation level, the project may continue to the
next phase or continue to complete the current phase. If the organization
needs have changed and the activities needed to resolve the risk are more
than the sponsors are willing to undertake the project is canceled.
Tools like network diagram or Gantt Chart help to create a schedule of the
tasks supporting each of the milestones. Purpose is to conduct tollgate
meetings at appropriate points in the project and decide to continue,
rework or cancel the project.

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5.9 SUMMARY
Various tools are used in different phases of the project to aid with
implementation. The project manager might decide to use a few or all or
just one tool depending on the project needs, size and client
requirements.
A well defined project scope includes all deliverables and activities.

Project scope planning is linked with schedule planning, resource
planning and budget planning since each task or activity is performed
with some resources within allocated budget and are scheduled to occur
at a particular time. Some tools that assist this phase include Traceability
Matrix, Project Scope Statement and Deliverables Deployment Diagram.
- The Traceability Matrix tool helps with project by tracing each

requirement through any related sub-project's requirements and
through the life cycle of the project. This ensures that requirements are
met and analyzes how much the requirement has been met like
business goal, regulatory requirements, etc.
- The Project Scope Statement provides a high-level description of major

deliverables, acceptance criteria, constraints and exclusions for the
project. It serves as a reference to ascertain the work accomplished
and ensure the project is on schedule.
- The Deliverables Deployment Diagram identifies the deliverable and

works on requirements and resources to create that deliverable.
Diagrams are used to show the components of the project after the key
project is broken down into clear activities. Major project deliverables
are decomposed by sub deliverables or business process to provide
high level project assessment.
Project Schedule is a time-based sequenced plan and description of all

the project activities and the tools enable progress tracking. Use of
various tools facilitate the project to reach its goals within the scope,
schedule, resources and budget.
- Milestone Chart displays the key milestones of the project which

provides a framework for planning and tracking project activities. It can
be in the form of a simple excel file as well but needs to be updated
! !150
regularly to ensure it is a live working document that serves its

purpose.
- Task List contains all the tasks assigned to a team member who is
responsible for its completion. It is like an action list and good tool for
ensuring accountability as well.
- Calendar View provides a list of tasks to be accomplished everyday and

even on a weekly or monthly basis. This is a tool that aids in scheduling
resources of every kind and staffing personnel on need basis.
- Critical Chain is a scheduling tool used when there are delays in project
results. Sequence of tasks is the critical chain and its tracking approach
helps to accelerate the project schedule.
- Resource leveling is very useful when multiple assignments compete

for the same resource. This approach of assigning resource to critical
path especially critical resource and then reassigning depending on
priorities helps in overall project and program accomplishments.
- Schedule Acceleration facilitates to reduce the planned duration of the

project and is to be used carefully. Buffer Management, Crashing, Fast
Tracking and Split to Phases are some methods used to step up the
project.
Project Resource Planning Tools identify allocation and use of resources

who can contribute better on project activities.
- Team List contains contact information of team members which ensures

at least one person per function is reachable at all times.
- Responsibility Matrix provides transparency and clarity of roles and

accountability for each team member. Depending on the person's
capacity and capability work can be appropriately assigned.
- Staffing Management Plan shows how human resources will be

deployed across various sub-projects. This tool can be used to ensure
people are aligned aptly according to requirements and when the
project is at a complex or larger scale.
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- Project Budget Planning Tools and Techniques help to budget the

financial impact of the project which also interlinks with resource,
schedule and scope planning.
- Project Budget depicts how utilization of resources is planned for a

project. It can be via a spreadsheet, forms, graphs, etc.
- Project Appropriations Request provides additional financial information

to the enterprise of the financial benefit that incurs from the project.
This is commonly used when the project investment leads to creating
of an asset that provides long term advantage.
Project Management Estimating Tools are employed to estimate time,

effort and resource needs on project. The need for estimating arises due
to the uncertain nature of activities associated with projects.
- Expert Judgment Estimating can be provided by an expert who has

solid knowledge of the project and can provide estimates for uncertain
activities.
- Bottom Up Analysis consists of breaking down the task into sub-tasks

and activities to be able to estimate better. Since this is done at micro
level it can be a more accurate estimating technique.
- Project Simulation combines the uncertainty associated with activities

to understand the probable outcome of project. Simulation software
can be used to plot the relationships and enable projects to arrive at a
better plan.
- Estimating based upon project end date begins with end date
estimation and going backward to the present time to work on the
deliverables to be met. For example in Y2K projects the end date was
set and scope, budget and resources are allocated to meet the
schedule on the specific date.
Project Management Communication is a key factor since projects are

teams of people who strive to achieve a common objective. Effective and
appropriate communication is essential to integrate all resources and
activities into the entire project.
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- Communication Plan can be a good form of Risk Management as it aids

in communicating with teams rightly. Good presentation and writing
skills as well as interpersonal skills are valuable during meetings and
interactions.
- In today's global project scenarios and virtual teams, there is a need

for sound Communication Plan to ensure team members are on same
page. Project Manager can facilitate training, good listening and
minimize misunderstandings to enhance co-operation amongst teams.
- Communication technology can be used appropriately to facilitate

valuable messages are conveyed to all concerned.
Projects are faced with positive and negative risks and risk identification
is an ongoing process. Risk Management Tools are used to identify
opportunities and risks early to enable project manager to make rational
decisions to perform better.
- Delphi Technique includes at least two rounds of experts answering

questionnaires anonymously. With freely expressed opinions and ideas
of agreements, consensus is arrived at on project risk topics.
- SWOT Analysis is a simple but useful framework for analyzing the

organization's strengths and weaknesses, and the opportunities and
threats that are faced. It helps to focus on the strengths, improve upon
weaknesses, minimize threats and take the greatest possible
advantage of opportunities available. Risks to the project can be
mitigated with appropriate strategy frameworks and appropriate
actions.
- Tollgate (Phasegate) Planning divides the project into phases and

review is conducted at each phase to determine if goals have been
accomplished. The project can then move to the next phase after risks
in each stage are addressed successfully. This should be done at the
appropriate points in the project life cycle and decisions can be made to
continue or abort the project.
Various tools are available for use by project managers, they can be
supplemented with other option-generation tools where appropriate or
used independently depending on the circumstances.
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1. Identify any two Project Scope Planning Tools and Techniques that are
used on projects.
2. How does Schedule Acceleration as a tool help in Project Scheduling?
3. Team List and Responsibility Matrix are resourcing tools in Project, what
is the purpose of each of them and how are they different?
4. What is the need for Project Communication Plan?
5. Explain SWOT analysis with a simple diagram.
! !154
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
! !155
TOOLS FOR PROJECT CONTROL
Chapter 6
Learning Objectives
Introduction to Tools for Project Control and Monitoring
Control Charts as a tool
Project Cost Control and various steps
Step by step approach to Benchmarking process
Pulse Meetings
Features of Variance Reports
Types of Project Reviews
Project Forecasting as a Control tool
Project Dashboard
Change Management Log as a tracking tool
Earned Value Analysis and its use in Project Management
Structure
6.1 Introduction
6.2 Project Management Monitoring and Controlling Tools & Techniques
6.3 Control Charts
6.4 Project Cost Control
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6.5 Benchmarking Process
6.6 Pulse Meetings
6.7 Variance Reports
6.8 Reviews
6.9 Project Forecasting
6.10 Project Dashboards
6.11 Change Management Log
6.12 Earned Value Analysis
6.13 Summary
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6.1 INTRODUCTION
The way a project is managed and executed is the key to its success.
Particular attention must be paid to update all related with project status,
execution of work, manage quality control and monitor risk. This must be
done in parallel to other processes to ensure all activities are executed to
meet project requirements. Monitoring and Controlling ensures the team is
working on correct tasks on schedule and within budget. Further the
quality of work must be acceptable to the client and control activities must
be performed if deviations happen as these will keep the project organized.
Here we will see some of the tools to use through the Project Control
stage.
6.2 PROJECT MANAGEMENT MONITORING AND

CONTROLLING TOOLS & TECHNIQUES
Project Control and Monitoring is the process whereby the project manager
tracks, reviews and revises the project activities to ensure the project
produces the deliverables in accordance with the project goals. Active
control is required on projects because of their unique and temporary
nature and to guide work towards effective utilization of resources and
correct problems.
Projects are inherently unstable as the tasks are unique to each project
and the sequence of activities; and resources are only temporarily assigned
to be associated with the project and are redeployed when the project
completes. This is unlike a process where the same sets of activities are
performed repeatedly which keeps the expectations stable.
Hence Project Control is significant for projects to assess actual against

plans, confirm the continuity of the project work. This is the phase that is
required mainly during implementation and execution of the project,
however it is depicted as beginning after project planning phase. Cost,
schedule and progress variance enables to arrive at information for project
control and monitoring.
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The main results of the Monitoring and Controlling procedure are the
project performance reports as well as implementing project changes.
Project management focus is analyzing the project performance to decide
whether a change is needed in the plan for the rest of the project activities
to achieve the project goals and objectives.
Most projects require a change to the plan at some point in time.

Traditional projects turn out to be more stable than extreme projects
because the requirements and the activities are clear and better
understood. Success of complex and extreme projects depend on very
close control and refinement of activities of later phases based upon the
outcome of prior phase activities.
Tools and techniques are used by project managers for Monitoring and
Controlling of a project. In this chapter we will look at some of the systems
and tools that are used in this phase of the project for different purposes.
6.3 CONTROL CHARTS
Control chart is one of the best tools that projects can use for monitoring
the performance as they can monitor any processes related to any function
of the organization.
A control chart is used to determine the stability of a process and whether

it contains any special cause variation. Common cause variations are
possible as they are the predictable and expected variation present in the
process due to its inherent nature. Special cause variation is introduced in
the process due to external factors or nonrandom events which makes the
process unstable.
Control chart is a great tool for use within an improvement project and is
effective in the following situations:
! !159
- Monitor and determine process stability

- Identify and understand process variation
- Ensure control of ongoing processes
- Finding and correcting problems as they occur
- Predicting the expected range of outcomes from a process
- Analyze patterns of process variation from special or routine causes
- Aim to prevent specific problems or make fundamental changes to the
process
- Discover variations to take appropriate action.
Different types of control charts are used to help projects for any
monitoring situation depending on the need and requirement. Depending
on the data type charts can be:
Variables control charts - Variable data are measured on a continuous

scale like time, distance, temperature that can be calculated in fractions
or decimals. This is applied to data with continuous distribution. For
example, periods and interest rates with averages.
Attributes control charts - Attribute data is when the presence or

absence of something is determined like success or failure, absent or
present, accept or reject, correct or incorrect. Attribute data are counted
and cannot have fractions or decimals. This is applied to data having
discrete distribution. For example, there can be ten issues on a project
but not five and a half issues.
These charts allow identifying conditions related to the process

that has been monitored.
!
TYPICAL CONTROL CHART
! !160
6.4 PROJECT COST CONTROL
Projects need to be guided correctly throughout to receive the required and

expected output at the end. In addition to meeting project goals, control of
various costs is also a very important task for any project manager. For
project management to be effective the project manager has to succeed in
this area as it would determine whether or not the organization would
make a profit or loss. Tasks and activities are to be managed for effective
controlling of the costs to ensure expenses are within budget. Several tools
and techniques can be used for ensuring efficient project cost control.
1. Planning the Project Budget

Creating a budget at the beginning of the project plan phase will help to
make payments and calculate costs that will be incurred during the project
life cycle. Lot of research and critical thinking goes into preparing budgets
and there has to be room for adjustments to take care of flexible costs.
Adherence to the project budget at all times is key to ensure there is
success and profit from the project implementation.
2. Keeping track of Costs

By maintaining a time-based budget the project manager will be able to
keep track of the actual cost vs. budget in each phase. Tracking actual
costs against the periodic targets that have been set out in the budget is
an important technique as long as the project work is going on. For any
additional work, estimations will be required to see if final amount of
budget can accommodate it else 'Change Requests' may have to be
approved by the client for additional payment for the new work and
changes.
3. Time Management
Time Management is a very effective tool with regard to project cost
control. Inability to meet project deadlines lead to increase in cost of the
project on various fronts like resources, manpower, consequent costs, etc.
The longer the project is dragged on, the higher the costs incurred which
results in exceeding budgeted costs. The project manager has to constantly
remind the team of the critical deadlines of the project and facilitate
completion of work on time.
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4. Project Change Control

Every change to the scope impacts project deadlines and tend to increase
project cost due to increased efforts and resources. Use of project change
control is a vital technique to manage change control systems and consider
potential changes that could occur during the course of the project.
5. Earned Value
To identify the value of the work that has been carried out, it is very useful
to use the accounting tool commonly known as 'Earned Value'.
Conclusion:
A watchful eye on the actual costs remaining close to the figures in the
initial budget is a key technique. Risks associated with cost escalation are
to be prevented and use of the above tools and techniques help to
constantly monitor the project costs.
6.5 BENCHMARKING PROCESS
In order for organizations to be successful, it needs to follow a consistent

approach to evaluate its performance. Hence businesses need to set
standards for their processes and measure their performance against
industry best practices or recognized industry leaders. This approach is
known as benchmarking in management parlance.
The benchmarking process is relatively simple. With some knowledge and a

practical experience project management can make this process a success.
Let us look at a Step-by-Step Approach to the benchmarking

process below:
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Identification Of Activities
Choice of Appropriate
Evaluation and Assessment
Measures
Data and Information

Implementation
Collection
Analysis of Data
!
1. Identification of activities
Prior to begin the process of benchmarking, it is imperative that

stakeholders identify the activities that are to be benchmarked. To reap the
optimal benefits of benchmarking, inputs and outputs need to be
redefined; activities chosen should be measurable and comparable to
arrive at metrics for benchmarking.
Consideration is to be given to core activities those are likely to give the

business a competitive edge and processes with a high cost, volume or
value. The total process in detail is to be thought of so that omissions are
avoided and minimized enabling the organization to get a clear idea of its
key business processes, strategic objectives, customer expectations and
critical success factors.
A candid appraisal of the organization's strengths, weaknesses and

problem areas (SWOT analysis kind of exercise which we have referred to
! !163
in one of the chapters in this book) would prove to be of immense use

when fine-tuning the end-to-end processes.
2. Choice of appropriate benchmark measure
Choosing an appropriate benchmark to measure performance is an

important aspect and it can be with industry standards or with a collective
group of companies that operate at optimal efficiency. To reach the goals if
the company adopts a comparable strategic approach with respect to other
companies that operate in similar environment the benchmarking would be
more relevant.
Alternatives must be planned based on the functioning of other companies.

A capable team should be formed to carry out the benchmarking process
so that project manager can ensure smooth and timely implementation of
the project. As usual, it is always prudent for a business to ascertain its
objectives before plunging into the benchmarking process.
The output is to be documented to ensure maximum value out of

benchmarking and necessary action to be taken to do justice to the entire
process.
3. Data and Information Collection
Market research, informal conversations, interviews and questionnaires are

still some of the most popular methods of collecting information. Internet
and several trusted and safe websites also provide loads of information.
The company needs to redefine its data collection methodology before
undertaking the benchmarking process to ensure it is valid and relevant
data.
Information can be classified as primary data and secondary data. Primary

data refers to direct collection of data from the benchmarked company/
companies itself, while secondary data refers to information gathered from
the press, publications or websites.
In order for the benchmarking process to be a success, a questionnaire or

a standardized interview format can be designed to compile the
observations and answers obtained via telephone, e-mail, face-to-face
interviews or on-site observations and research.
! !164
4. Analysis of Data
Appropriate analysis of data collected is of foremost importance. The data
collected is to be presented well preferably in graphical format for easy
reference and results of data can be used for future projection by the
business. Identifying the root cause for performance gaps in processes can
be carried out based on the scrutiny of data.
5. Implementation
Ensuring that the management and concerned staff are fully committed to
the process is critical in making the benchmarking process, a success.
Sufficient resources are required to be in place to facilitate the necessary
improvements required as a result of benchmarking. Changes are to be
implemented so that performance gap between the ideal and the actual is
narrowed and eliminated wherever possible to achieve desired results. A
formal action plan can be formulated and circulated within the team so that
there is better awareness and acceptance of the process.
6. Evaluation and Assessment
Ensuring systematic evaluation on a regular basis, assimilating required

information, assessment of the progress made and making any necessary
adjustments are all part of the monitoring process for benchmarking.
Benchmarking as a project control and monitoring tool can add value to the
organization's workflow and structure by identifying areas for improvement
and rectification. It is indeed invaluable in an enterprise's quest for
continuous improvement and enhancement of processes.
6.6 PULSE MEETINGS
In order to gather project performance information about the activities that

are in progress, Pulse meetings are conducted which are short team status
meetings. Project management team conducts these meetings frequently
and they are only a few minutes in duration. They can either be face-to-
face or virtual and the beginning and completion of project activities is
reported in these meetings. Also the status of any activities that are
happening is communicated to the project management team and issues
are identified. There may be a separate meeting to resolve issues
immediately after the Pulse meeting. The frequency of the Pulse meeting
depends on the status of the project. For a complex project the Pulse
! !165
meeting might happen multiple times a day in contrast to simple and

smooth projects that may need to have one meeting probably once a
week.
6.7 VARIANCE REPORTS
A variance report is a tool for management and executives to gauge their

company's performance by comparing one set of figures to another.
Typically this means comparing planned values to actual values. Variance
reports are commonly used to analyze how close actuals are to meeting
forecasted sales targets or if budgetary goals have been met.
Key Features of variance analysis reports are:
They help quantify and identify the difference in actual expenditures or

revenues.
Comparison can be between fiscal years and quarters or budget to actual

or only on actual of various periods.
Are formal reports generated by systems like quality control.
Comparison of what has actually happened on a project against what was

expected to have happened on the project is obtained.
Can indicate both the absolute value of the difference as well as a

percentage representation of the difference.
A well-rounded budget variance report will address trends, overspending
and under spending.
Variance analysis can uncover both positive and negative project risk.
Favorable and unfavorable variances can be studied to benefit the

project.
Various aspects like scarcity of resources, quality control issues, cost

escalations can be identified.
The actual performance accomplished on a project activity seldom matches

the performance estimated at the time of project planning. However
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estimates cannot be accurate always hence it is imperative for the project

management team to identify the variances to know what the actual
scenario is on the project. Variance Reports provide trends in challenging
environments which helps project teams and management to carefully
monitor overspending and underspending. Budget might need to be
revisited and checked to see if there are any budget lapses whether minor
or major.
Project variance reports are a great tool to indicate how well the resources
were able to perform project activities in accordance with the project plan
and throughout the project lifecycle which is very useful information for
project management.
6.8 REVIEWS
Project reviews are learning and control tools to generate information and
feedback that contribute to a continuous improvement framework in the
execution and delivery of the projects. It is critical that the findings of
reviews are made relevant to related people within the organization.
Features of a good project review are:
Identifies key lessons both positive and negative to put in place

measures to better manage the problems in future.
Identifies opportunities for further improvement in design, delivery and

in the operations.
Provides a forum for open and honest conversation and constructive
feedback.
Values and encourages end user input and innovative ideas to the project
requirements.
Establishes a clear action plan to implement improvements.
6.8.1 Program Reviews
Meetings are held with the project team members and team leads to
review the current status of the program and it is compared with the
original program plan. On complex and large scale projects this is a very
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useful tool that focuses on the big picture and integration between
activities and sub-projects within the project's program. Any interference
or lack of assimilation between the program activities and the sub-projects
are identified.
Frank and honest appraisal of the status of program work from project
team members is key to ensure this tool meets its objective. Reviews are
conducted to evaluate the cost, schedule and performance status of a
program and provide senior management with status reporting. This
functions as a forum for feedback and an exchange of improvement ideas.
The Project Manager must cover all relevant information on the status of
the program or project as this is on a much broader area.
6.8.2 Technical Reviews
Formal meetings are conducted with subject matter experts who are
typically members outside of the project team. The SMEs have in depth
knowledge, experience and skills on the technical aspects within the
project.
The reviewers who are qualified perform an in-depth analysis of the project
deliverables and activities to determine whether the project work has been
accomplished fully and correctly. A list of actions that are pending will be
revealed which may require additional testing or analysis. In extreme cases
it could lead to redesigns of systems, software or processes to meet the
project objectives and client satisfaction.
The results of these reviews are most effective when they are completed
before a project can proceed to a toll-gate meeting and the reviews are
reported to senior management. Some instances where technical reviews
are inevitable are process design, technical code reviews, security reviews,
or risk strategy reviews.
6.8.3 Management Reviews
Formal meetings are held with the project manager and leads along with
key stakeholders to review the current status of the project vis--vis the
original project plan. Management Reviews are with key stakeholders and
the emphasis is on whether the project performance and progress are
satisfactory to deliver on the overall project objectives. Results of these
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meetings are documented for audit reference purposes. If the project is

facing issues like resource constraints or scope creep, it is discussed with
the stakeholders during these meetings who try to provide assistance to
the project team to overcome these issues.
These meetings address the topics that are most important to the
stakeholders and project sponsors. Review can be a formal meeting or an
informal discussion with a written report or project dashboard. In the case
of a formal meeting, the project manager must be well prepared and
prepare an Action Item list or Issue log for any questions that are raised in
these reviews. Taking down minutes from these meetings should be
mandatory to be retained as part of the project records.
6.9 PROJECT FORECASTING
Based on the present project status information the project performance is

extrapolated to the end of the project. This kind of forecasting is useful for
project duration, cost, performance or any combination of these.
Adequate information is prerequisite to realistically forecast performance. A

key element in forecasting is to review the risk events that occurred and
the remaining risk triggers. When doing forecasting it is important to
ensure the project phase is at least 25% complete.
When forecasting project duration, the scheduled performance and risk of

the activities on the critical path will drive the project completion date.
However on a project with scarce or unpredictable resource availability,
forecasting can be very difficult because the critical path will vary
depending on resources and expert judgment might be used. When it is
central for the project to finish by a certain date it goes into a countdown
mode and number of days before project completion is measured.
When forecasting total project cost, forecasting methods embedded in the

Earned Value Management system or trend forecasting is followed. Trend
forecasting takes and extrapolates the current rate of project spending till
the end of the project. When forecasting the performance or quality of
project deliverables, prototypes and preliminary analysis is the best way to
go. The principle of the "Rule of Ten's" can be applied which means the
cost to correct a technical issue goes up by a factor of 10 as the project
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progresses to the next phase. This makes it imperative to identify

performance issues as early as possible.
6.10 PROJECT DASHBOARDS
A dashboard is a great tool for capturing a snapshot of a project and

presenting to management and stakeholders.
Project and program managers need to know exactly how the projects
they're responsible for are doing. But they are loaded with many
responsibilities and priorities that they may not have the time to go
through detailed status reports for every area of the project.
Dashboards are used by project managers to focus the project team on the
few key items that are critical and drive project performance. They contain
a small subset of project status information that is treated as indicator of
whether the project is on track. For example, the critical path activity is
tracked for schedule status or the most demanding activities are tracked
for project performance and quality. The dashboard is a tool that provides
information useful to make decisions for changes to projects or to the
portfolio. Dashboards have flourished as more organizations are managing
projects within the context of a portfolio of projects and they are an
excellent tool when working with a virtual project team.
A Project Dashboard provides immediate and up-to-date information about

the status of a project. A common approach to using the dashboard is to
use red, yellow or green symbols that quickly identify whether the thing
being measured is in good shape and according to plan (green), there are
some problems that require attention (yellow), or is critical condition and
problem is severe (red). This type of scoring with colors indicate project
status on key metrics.
The top management team and Project Management Office use the
Dashboard to monitor status, make appropriate decisions, control
deviations and to have Project Management Reviews.
Below is a pie chart diagram that functions as a Project Dashboard for

Issues Resolution Status.
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6.11 CHANGE MANAGEMENT LOG
This is a straight-forward tool and is very much needed as the project

becomes more complex. In large scale projects there are many sub
projects and tasks as well as integration between modules and functions.
Hence there is tendency for changes happening in project deliverables
more often due to various factors. The changes could be due to moving
milestones, impact of prior deliverables, external factors or change in client
requirements. The changes in one sub-project spill over into changes in
another sub-project.
The Change Management Log is for tracking changes across the sub-
projects. It is also used to track the implementation of the change and its
impact on the project. In bigger project the activities are spread across
multiple locations and are conducted in different phases. Use of the Change
Management Log enables to track the activities completion stage and
serves like an Action Log for the project manager.
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All business financial transactions are composed of the amount of the

transaction and the date of the transaction. These two components are
very important in financial planning and tracking systems.
6.12 EARNED VALUE ANALYSIS
This is a project management tool that can objectively status schedule and
cost performance in real time. EVA tracks costs and schedule in an
objective, reliable and easy to use model for the project deliverables. It
provides "project at a glance" model with easily understandable visual
display of quantitative information.
EVA is used by large multi discipline projects spread in different locations

and is common in engineering, construction, aerospace, architecture
companies.
Some of the traditional project reporting tools and charts tend to bury or
conceal schedule and cost problems. EVA negates these situations due to
the following factors:
- EVA is an easy to learn tool adaptable to projects of any size and

complexity.
- It requires minimal effort to track and report in real time from task to
activity levels leading to the entire project progress.
- EVA is clearly an objective tool for early problem identification as it

unlinks project performance from tracking technical deliverables.
- It provides readily understandable visual display of quantitative

information which is almost self explanatory.
- EVA shows graphically and immediately budget status, late or early

completion as it begins to happen whether activities are being or yet to
be performed.
- It provides "Project at a Glance" paradigm by graphically showing project

performance and pointing out developing problems as anomalies.
- It leads to regular project financial reporting period.
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6.12.1 What is EVA?
EVA compares the calculated value of work performed and what has been
earned, to actual cost and projected cost of work performed. There could
be deviations in the form of cost, time, or both, and can be expressed in
currency terms (like Rupees / Dollars / Euros), time or calculated further
as per cent complete or a performance index. EVA is a tool for the project
management of scope, cost and schedule based on earned value of tasks
performed in time.
Sometimes traditional planning, monitoring and tracking tools do not fit the
project framework. For example, the traditional financial tools are linked to
budgeting cycles and not project schedules. Traditional financial tools are
based on the assumption that the business will be in the mode of
continuous operation leveling the resource requirements and eliminating
spikes and valleys in resource needs. However, projects do not necessarily
operate in this way all the time. Project resources are assigned and
reassigned from the project plan throughout the project life-cycle activities.
As a result some of the major assumptions on which financial tools are
based are invalid in the actual project control and operating environment.
EVA can be done by calculating how much time the work has taken and the
resources utilized to complete the work. These values are compared with
the time and resource values planned. If the time taken for the particular
task is greater than the plan, it means that the project is running behind
schedule. Similarly, if the utilization of resources exceeded the plan, it
shows that the project has not been managed efficiently in terms of
resources.
6.12.2 Need for Earned Value Analysis as a tool in Project

Management
Earned Value Analysis functions as a Cost Control tool in Project

Management. It works like a forecaster and tracker for computing the
project progress in terms of work done and resources utilized which are
inter-related during execution of a project.
A baseline with a plan with some scope for approved changes is a good
benchmark to determine whether and how well the project is meeting its
goals.
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A tolerance point for the constraints in a project namely time, cost and
scope is maintained. If the actual values exceed these threshold values, it
is like a warning signal and required steps should be taken to address it
immediately by making changes to future plans to contain the
discrepancies without much aggravating the situation.
Earned value analysis includes some simple mathematical

formulae.
Meeting project deadlines within a reasonable budget is very important but

a herculean task. Hence focus is needed on both the parameters and
adequate monitoring and controlling the project is required without which it
is almost impossible to complete it within the scope, time and cost
considerations. Compromising on any of these three factors can lead to
over utilization of the other one which becomes unpleasant and may lead
to contractual penalties. Hence judicious use of the given resources is
required to complete the project in the given timeframe not only at the
beginning of a project but also during its implementation. A project has to
become adaptable to external changes and absorb irregularities that come
in all phases.
This is where Earned Value Analysis is a useful tool for cost control. It is
helpful in determining how the project is progressing in terms of cost,
scope and time like whether the cost is under control and in how much
time the project would be completed.
Thus Earned Value Analysis supports the project plan and facilitates to
make changes depending on the current scenario and other internal and
external factors which influence the project deliverables. Below is a
diagram showing time on X-axis and cost on Y-axis.
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Let us look at an explanation of Earned Value with some example.
Earned Value analysis per period 2 2 3 4 Total
Work Scheduled (Planned Value PV) 25 25 25 25 100
Actual Cost (AC) 22 20 25 25 92
Variance VAR = PV-AC 3 5 0 0 8
Earned Value (EV) Accomplished 20 20 20 20 80

Value
Scheduled Variance SV=EV - PV -5 -5 -5 -5 -20
Cost Variance CV = EV-AC -2 0 -5 -5 -12
There are four periods where work of value 100 is expected to be

completed and this is Planned Value (PV). What was actually spent in each
period is mentioned as actual cost (AC). From an accounting perspective, it
appears that this project is experiencing an underun of 8.
It was expected to cost 100, actual cost is 92. However how much work
actually was completed or "performed" is not available.
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The next 3 rows give a better picture. There is a schedule variance of -20
since schedule was to complete 100 of work, and only 80 is completed. In
addition, the value of work accomplished is 80 thereby creating a cost
variance of -12.
The Earned Value Analysis (EVA) technique considers the project

framework for the planned and actual expenditures and integrates the
project scope, schedule and resources into a comprehensive set of
measurements.
The Earned Value (EV) comes from an assessment by the project

management team of the progress they have made on each task in the
project. It is difficult to measure accurately and is based upon a judgment
call by individuals responsible within the project. It is easy to determine EV
for tasks that have been completed (EV is the task PV) and for tasks that
have not started (EV is zero). The difficulty comes when estimating the EV
for a task that is underway. Organizations have set some specific ground
rules in this area to ensure the EV is not under-stated or over-stated.
Selecting the appropriate timing is important so as not to create confusion

later when we determine variances. A variance due to planning the timing
of a task expense that is different than the time when the expenses
actually occurs, even though the amount is accurate, still generates the
need for a variance report. Creating a task-level budget that accurately
reflects the timing of expenses will reduce the need for a variance report
for timing reasons. Variance reports will focus on true under-runs or over-
runs.

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6.13 SUMMARY
Monitoring and controlling of the project work is an on-going activity and

it is important to strike a balance between how much time is spent
tracking activities and the value derived from the effort as the intention
is not to micro-manage the team. Monitoring the project effectively will
allow to perform appropriate control of the project.
Controlling the project is a critical project management step that must be

done in order to deliver a successful project. Controlling the project
refers to the actions that project manager takes to ensure project
progresses according to the plan and correct actions are taken when a
change to the original plan is required.
Projects are unique in nature and temporary with tasks and sequence of
activities unique to each project. Resources are temporarily assigned to
the project and are redeployed on project completion. Project monitor
and control processes and tools are significant to assess project meets
completion criteria.
Control Chart is a useful tool in quality improvement project for

determining the stability of a process and identify any special cause
variation. These charts can be based on variables or attributes.
Project Managers need to have Cost Control for various costs along with
meeting project goals. Methods of Budgetary Planning, Cost tracking,
time management, change requests and earned value aid in monitoring
the actuals and controlling as required.
Benchmarking is to evaluate project performance against industry

standards and best practices. Key steps include identification of activities,
choosing an appropriate benchmark measure, collection of information,
analysis of data, implementing the process, evaluating and assessing the
progress.
Pulse Meetings are short term status meetings of less duration to discuss
with project management about the status of activities that are
happening.
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Variance Report is a tool to compare one set of values to another which
leads to analysis of how close actuals are to forecasts. They can indicate
variations of actuals from budgets and also how well resources were
utilized in accordance with the project plan.
Project reviews are a form of learning tools which encourages user input
and recognizes key lessons learned.
Program reviews is a useful tool in complex projects where team

members provide feedback on the status of the project.
Technical reviews are conducted with subject matter experts with

profound skills and knowledge on the technical aspects of the project.
Management reviews are for comparing the current status of the project
with the original project plan.
They address the topics that are key to stakeholders and sponsors and
can be done in a formal or informal way.
Project Forecasting is done based on the current project performance

status information and by using some reasonable method to forecast
performance in future.
Project Dashboard is a great tool used by project managers to focus on

the few critical items that drive performance. Commonly red, yellow and
green symbols are used to identify the situation and provide instant and
pressing details.
Change Management Log is a simple but very much needed system

especially in large projects where there are changes happening more
frequently. This tool helps to track changes and its impact on the project
serving like an Action Item Log.
Earned Value Analysis (EVA) is a project management tool that tracks

costs and schedule in an easy to use model for project deliverable.
Providing with a visual display of quantitative information it tracks and
reports "Project at a Glance" model.
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EVA is a great cost control tool which forecasts and tracks the project
progress regarding work completed and resources utilized. Value Analysis
calculations can be done at any point of time in the project life cycle.
EVA is a project tool to objectively measure project performance by

integrating scope, time and cost data. It provides a means to forecast
future performance based on past performance.
EVA helps to make quick changes that are essential for the success of the
project. It is a good practice to review the budget, trends, reports on
financial information on a constant and regular basis to keep track of the
progress and minimize overspending before it is too late.
Needless to say, early detection of problems and issues help in early

prevention and quick remediation measures.
1. Which are the two types of control charts that are used to monitor
performance?
2. Name any three tools or processes that aid in Project Cost Control and
briefly describe them.
3. How is benchmarking used as a tool in project control and monitoring?

What are the main steps in this process?
4. What are the different kinds of project reviews?
5. How does Earned Value Analysis support as a tool in Project Control?
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !180
TOOLS FOR PROJECT CLOSURE
Chapter 7
Learning Objectives
Introduction to Tools for Project Closure
Need for Project Closure
Project Closure Report and its aim
Purpose of Project Transition Plan
Activities in Project Closeout Approach
Stakeholders Acceptance meeting and key aspects
Project Punch List as a technique for project closure
Lessons learned from projects and applying them to future projects
How Feedback can be used as a tool
How to avoid Project pitfalls
Importance of Post Project Audit
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Structure
7.1 Introduction
7.2 Need for Project Closure
7.4 Project Transition Plan
7.5 Project closeout Approach
7.6 Stakeholder Acceptance Meeting
7.7 Project Punch List
7.8 Lessons Learned Process
7.9 Feedback as a tool
7.10 Project Pitfalls - How to avoid it
7.11 Post Project Audit
7.12 Summary
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7.1 INTRODUCTION
Project closure is the last stage of a project's life cycle and a major stage
too. When all defined project tasks and milestones have been completed
and the project has launched it can be termed as completion of project
closure.
Some essential tools make this project closure phase smooth and
satisfactory. These tools and techniques are used by the business
management team and the project management team to enable
completion of all necessary project activities.
Project Closeout is the process of finalizing the hand off of the project
deliverables to the business team and finishing the administrative aspects
of closing the project. At this time the project management activities are
mostly administrative and are unique to the organization. In this phase of
the project life cycle the project is closed formally and its overall level of
success is reported to the sponsor. While handing over the final
deliverables to the client, all the documentation is also given to them; staff
as well as equipment if any are released and stakeholders are informed of
the project closure.
Once the project is closed, a Post Implementation Review is completed to

determine the project's success and identify the lessons learned. Several
activities are taken to close a project efficiently:
Assess the project status and confirm project completion criteria

Hand over deliverables to the client with documents
Gaining stakeholder acceptance of the project deliverables
Report status of project success to sponsors
Integrate project resources back into the organizations pool of resources
Close any supplier contracts or agreements
List outstanding items
Capture lessons learned from the project for use on future projects
Archive Records
As can be seen below, project closure is the last phase in the project life
cycle. Providing support to the client and troubleshooting might continue
for some time after completion of the project and this depends on the
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terms of the contract. However for all practical purposes, project closure is
the final phase.
7.2 NEED FOR PROJECT CLOSURE
In every project there are two deliverables - One is the final product or
service that the project is to deliver and the other is the knowledge
acquired and the learning process while executing the project.
The problem with a PM getting into a relaxing mode while the project is
getting nearly completed is that the project team members will also tend to
follow and relax. This will impact the final deliverable as there is still plenty
of work to be accomplished to ensure project is hundred percent complete
and successfully handed over to the customer.
Whether it is short term or long term project the principles to be applied in

completing the project are the same. The PM and the team needs to have
continuous momentum and provide the final urge to get the project to the
finish line. Hence a formal project closure is an important phase in every
project lifecycle.
In fact during the final stages of a project, there is a lot to be done to keep
the team motivated. The Project Manager must continue communications
with the team as well as customer management / stakeholders /sponsors.
PM has to discuss final issues and be present for all the meetings and final
implementation as well as go live and support.
There are some systems and techniques that are useful when managing
the Project Closeout. It can be an overwhelming process to manage closure
and hence the below tools and methods smooth the process of closure.
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7.3 PROJECT CLOSURE REPORT
A Project Closure Report is a document which is usually prepared by the

Project Manager and it formalizes the closure of the project. It is then
presented to the client or project sponsor for sign-off after review and
consensus.
At the completion phase of a project, the project closure report helps to

summarize the process, methodology, findings, constraints and specific
lessons learned during the entire project. Ideally the PM should seek
participation from the entire project team, client management team, key
business personnel, end-users and other stakeholders. The Project Closure
Report also enables the PM to portray the client's view of the project after
completion.
The Project Closure Report aims to provide confirmation that the project
has met success standards and project sponsor does the sign-off to close
the project.
Sometimes there are some tasks that can't be completed in a project due
to factors beyond control or that need to be done much later. Hence it is
crucial to identify responsible person to whom outstanding issues are to be
handed over. After all activities are complete, a Post Implementation
Review as well as Post Project Audit is undertaken to measure success of
the project and record lessons learned for future projects.
7.4 PROJECT TRANSITION PLAN
The purpose of a Project Transition Plan is to layout the tasks and activities
that are to take place to efficiently delivering a project from development
to production, operations and maintenance environment.
The transition plan identifies the organization, transition team and its
responsibilities. The plan also identifies the process, methods, systems and
tools needed to perform an efficient and effective transition. Contingency
planning and risk mitigation are also included in the transition plan. The
potential impact of transition to existing infrastructure, operations,
personnel and user community is also clearly stated.
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The transition plan is used in conjunction with the Project Charter and
Requirements Documents and does not intend to repeat information
already appearing in those documents.
A template can be maintained for project transition plan which is a detailed

guide for transitioning a completed project. The project transition plan
template includes sections dedicated to the project overview, details of
product or service, transition schedule, support resources, budgeting,
reporting and communication procedures.
A successful transition means the new facility, product or software is ready

on day one without interruption to normal operations. The key is to
manage seamless transition with minimum impact to staff, schedule and
budget.
7.5 PROJECT CLOSEOUT APPROACH
The activities for project close out depend on the type of organization and
the nature of the project being implemented. However the following are
included in project closeout approach.
Project Inclusion - This is the simplest form of project closeout where

the project team, who has developed the project deliverables, becomes
the key maintainer of the deliverables. The project team essentially
hands off the project deliverables to itself and the transition is mostly
seamless in nature. The project management team has to close
administrative files that are associated with development and reopen
them for operational deployment of the project deliverable.
Project Extinction - In this case the project activities are immediately

terminated and resources may be released or redeployed if they were
part of the organization. This could be due to reasons that are beyond
the control of the project team.
Project Integration - In this case the project team has accomplished

the objective and deliverables are completed. The organization is
prepared to use the deliverable and implement them appropriately to
achieve the business benefit. If the project team faces resistance from
the customer side, appropriate change management activities can help to
perform the closeout activities. A transition phase to the project with
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pilot runs and other transition activities to enhance acceptance by

stakeholders will ensure better acceptance. This form of closeout is the
most difficult.
7.6 STAKEHOLDER ACCEPTANCE MEETING
After completion, the project team meets with stakeholders to review the
deliverables of the project, ensure there is consensus and the deliverables
are acceptable to the stakeholders. Acceptance Meetings are as much
about attainment of consensus as sharing of information. Adequate project
visibility ensures that all stakeholders, from sponsors to staff, share a
common aim and sense of purpose and commitment.
This meeting may be held by Program or Project Managers with all sub-
project teams if it is a complex program. This is also useful when doing
projects under contract to ensure that there is a clear endpoint to the
project.
The format of this meeting is often based upon the Project Charter where
the deliverable for each item from the Charter is presented and explained
to the stakeholders.
Stakeholder Acceptance Meeting will be a breeze if effective stakeholder

management has been in place. Communicating appropriately with
stakeholders to affect a change will help to keep arguments or resistance
at bay. Having a good rapport with stakeholders may benefit with a "win-
win" approach during these meetings.
It is advantageous for the PM to work collaboratively to build the project

team brand and even enhance the larger project management profession.
A collaborative approach will be to build the best outcome by addressing as
many as possible needs, wants and ideas embedded in the final solution.
This collaborative solution will result in an overall better outcome for
everyone by transforming even problems into a win-win solution.
! !187
Some key aspects that help in getting Stakeholders acceptance

during this meeting are:
Stakeholders must attend meetings and give input during the change
management process itself.
They are decision makers who assist in evaluating the need for change.
Stakeholder's participation as a requirement enables them to understand

project requirements.
They are able to assign importance to the project and changes.
Change requests are not taken as a surprise since stakeholders are

involved in the process.
Projects tend to be more successful as they meet or exceed key

stakeholder expectations.
Creates a sense of purpose by linking project success to the

organization's goals.
Gaining acceptance from stakeholders on the deliverables, change requests

and agreeing that implementation was correct is the main goal of
Stakeholders Acceptance Meeting.
7.7 PROJECT PUNCH LIST
The Punch List is a technique commonly used in construction projects. It is

a list of tasks that are to be completed to satisfy the terms of a
construction contract. Generally in the final phases of construction this list
is generated as people walk around the site and note down any issues that
need to be resolved. This tool is very useful for project management
because it provides a list of easy-to-miss small details which can become
awkward later.
When a list is created, it forces the team and customers to think about the
terms of the contract and take note of anything that is not perfect. In
larger projects, it helps to clearly spell out expectations in the contract
before work begins.
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This punch list can be extended for use as an effective tool during closure
phase in all kinds of project.
Gaps often come up between what the stakeholders wanted from the
deliverables and what has been delivered by the project team. The Punch
List can be an excellent tool to manage the closure of those gaps. When a
deliverable is presented, any gaps or deviations are listed in the Punch List.
The project team estimates the impact on cost and schedule for completing
the Punch List items. Both the project team and stakeholders manage the
effort within the Punch List by reaching an agreement for the items that
are priority and that must be completed with end dates.
The Project Team strives to complete all the items on the list as per
contract and Stakeholders cannot keep on adding items to the punch list.
The term "punch list" was chosen by projects from the fact that earlier
people used to punch a hole in the paper next to completed tasks. In
today's projects these lists may be managed like a simple written checklist
or in electronic form. With the availability of advanced technology
electronic lists can be distributed to many people and may be updated
instantly, allowing everyone to see progress. For virtual and global projects
with multiple locations this can be important feature when multiple people
are responding to the issue and updates are to be online. Appropriate use
of this technique will smoothly and quickly drive the project to closure.
7.8 LESSONS LEARNED PROCESS
Projects vary in terms of size, purpose, cost, budget, magnitude and

timelines involved. Also the requirements of clients, stakeholders, user
community are different and project teams also change depending on the
project.
Yet, they all have some common features and the lessons learned from one
project can easily be incorporated in another project depending on the
circumstances.
! !189
Lessons Learned
If there is a Project Management Office (PMO) then the Lessons Learned

process is normally a formal part of project closeout. In the absence of a
PMO, the Lessons Learned activities are done informally.
7.8.1 Main steps in the lessons learned process
Let us look at some of the key steps in the process of lessons to be

learned.
Evaluate the Business Case - The main question is whether the project
created the business benefit that justifies approving the project. The
focus is on project selection and approval process since the lessons
learned at this point improve the ability of the organization to select and
approve desirable and realistic projects.
Evaluate the Project Plan - Here the focus is on how well the project
was managed by the project manager and the project team. Extent of
adherence and impact to budget, schedule, risk mitigation, integration
and communication is evaluated and documented for future reference.
Evaluate the Project Management Methodology - This determines

whether the procedures and systems were beneficial for the project or
not, whether they are current and relevant and if mandated reviews were
conducted appropriately.
Evaluate Team Performance - This is an evaluation of how well the

team executed the plan and adhered to the methodology. During this
process of self-assessment by the team, performance appraisal is also
conducted in accordance with HR policies and practices.
! !190
7.8.2 List of project lessons
Below we look at some lessons learned from project experiences, however

this is not an extensive list of all the project lessons learned, just a few of
the most relevant ones to all projects are stated herewith:
Project success is heavily dependent on the skills and strengths of the

human resources who are directly involved with the project. Therefore, a
committed, talented and experienced team focused on a common goal is
imperative.
Project Manager needs solid leadership skills and is to be aware of the

strengths and weaknesses of the team members so that appropriate
staffing is done to connect the skill set to the task and have an overall
strong and capable team.
Building good rapport and strong line of communication with the decision
makers will reap benefits in the long run.
Procrastination is not a solution; decisions are made based on available

information. Timely correction can be made for wrong decisions if they
are discovered early and right decisions must be implemented without
postponement.
There are no excuses when things go wrong, as they invariably will. Be

ready and prepared with an alternative course of action or remedial
propositions depending on the project and risk factors.
Blame causes more of a hostility environment, rather working together

and searching for solutions will bring the team together and pave the
way for success.
It cannot be stressed enough that to be pro-active is the best approach

as reactivity may not be good enough.
Accept and be open to change. Do not resist change as sometimes

situations and solutions need to change at a certain point in time under
very specific conditions.
! !191
Get to know the customer and objectives of the project to be able to
deliver the result. Significant changes are made only after approval from
the customer or key business personnel.
Support the leader and their decisions even if it is contrary to one's idea
of what should have been done. It is fine to voice reasonable objections
to disagreements, but once an action has been decided upon, it is
appreciated if all support it and try to make it a success.
Sometimes situation demands action, and hence it may be required to

take calculated risks.
Be transparent and always disclose information to those who need it.

Sharing crucial information with right people will ensure they play a
pivotal role in making the project a success.
Keep abreast of modern technology advancements and use time tested

management skills and tools for the benefit of the project.
Practice good and effective communication which will give an advantage

and stop mistakes from becoming failures.
Careful thought and enough time needs to be given prior to finalizing

decisions, as this will save time in the long run by minimizing the need to
redo work.
In order to effectively utilize resources and also make the people feel
valuable for the project, it is essential to know what resources are
available and how to procure required resources.
It is important to give time and effort for documentation and some

paperwork which are necessary for reporting or legal purposes.
Understand the bottlenecks to the original objective of the project and

what steps to take to overcome the same.
Study and understand the impact of all known facts. When things go
wrong, it is required to know who can help to tide over the crisis.
! !192
7.8.3 Conclusion
This exercise can avoid repetitive mistakes and when the project lessons
learned are documented, the future team leaders can make use of the
varied learning experiences to avoid the same or similar pitfalls
themselves. Ultimately lessons learned should provide value to the project
manager as well as for future projects.
We must get value from lessons learned both as individuals and as

organization (or teams) that can be used to deliver in future projects.
Purpose of the project is the key where focus is on what was or wasn't met
as a goal, what worked or didn't work in the use of the methodology and
resources and what happened and didn't happen within the project team
and its members.
To be aware of what can be improved on a project, it is fundamental to

look at the original objective, the initial assumptions and the project
management plan. A narrow view solely at the end result and cause-and-
effect elements might generate a lengthy report but will not lead to
actionable improvements to positively impact the organization's future.
A lessons-learned review is effective when it is based on the questions

asked about the project results, the purpose for the postmortem being
done and the implementation of findings from the review into the
organization. A powerful review could be the key factor which can help in
the success of future projects as well as organizational improvements.
7.8.4 Applying Lessons Learned to Future Projects
Future Projects
Lessons Learned
!
In real life how often do organizations apply the lessons learned from past
projects to new projects?
! !193
The answer might be "rarely" and this is very discouraging. Although many
tools, systems and processes exist for capturing lessons learned at the end
of a project, very few organizations take the effort to use them. Most
common reasons were -lack of time, unavailability of key people, blame
culture, absence of team support, dearth of budget to support any good
closure, etc.
However it is known that transferring lessons learned as well as knowledge

and experiences from one project to another can tender enormous
benefits. In order to ensure that project teams can better use the lessons
learned captured, some factors that matter are:
Project teams can start sharing knowledge at the beginning of the

project itself rather than at the closure phase.
Active involvement of all team members in all phases will enable pooling
the ideas.
Set up a practice to capture lessons learned when they occur and not
later.
Continuous learning from the beginning will encourage people to express

their failures and successes better.
There will be a culture and practice of learning and sharing knowledge at

all times.
Involvement of all members of the project team as well as client, users,

sponsors is possible if lessons learned are captured in a ceaseless
process.
Incorporate the initial knowledge sharing meeting into a normal practice.
Use good timing and techniques to formalize the learning process.
If a methodology is adopted for creating project logs, then critical items

can be documented and this log can be used as reference for new and
rotating team members. Project logs are a useful tool for documenting the
lessons learned and for use by future projects.

! !194
7.9 FEEDBACK AS A TOOL
It is important for a project manager to be able to give and receive

feedback effectively. Feedback best happens on a one to one basis soon
after the event that triggers its need.
Some tips for giving feedback are:
Feedback is for stating the positives as well as the negatives.

Feedback is always more powerful when solicited.
Think well about when and where to give feedback.
Think carefully about what to say and how to say it.
Keep comments clear and impartial without being emotional.
Use of examples and instances help to illustrate the feedback.
Pay attention to the other person's body language.
Provide opportunity for discussion and actively listen.
Understand that feedback may be accepted or rejected.
Work together for arriving at a solution of improving the situation.
Some tips while receiving feedback are:
Be enthusiastic and fearless to ask for feedback.

Pay attention and listen carefully to the feedback.
Don't leap to get defensive.
Ask questions to ensure understanding and clarity.
Request for specific examples and instances of positive and negative
feedback.
Give time to enable to absorb the feedback.
! !195
Be polite in discussions to agreements and disagreements.
Work together for a way of making things better in self interest.
Appreciate the time and effort of the person providing feedback.
Feedback is a powerful tool often especially in project management and

underutilized many times. When used appropriately it can motivate people,
help with a person's growth, uncover some low lying issues and even solve
problems. Regular, honest and relevant feedback helps to foster an
environment of open communications and a win-win situation for all.
7.10 PROJECT PITFALLS - HOW TO AVOID IT
Project Closeout may be perceived as the least important of all of the

project tasks, but its value cannot be underestimated. The experience
gained, knowledge gathered, expertise developed, lessons learned, the
best practices adopted have to be documented promptly and thoroughly
through post implementation review and its results to be disseminated
appropriately throughout the organization. Some common project pitfalls
are listed below and they can be avoided by following right measures:
1. Absence of feedback
Even if the project is a success, project manager (or PMO) should not
neglect to solicit immediate feedback from the Project Team and other
stakeholders. Projects are full of challenges which are forgotten when the
final outcome is a successful project deliverable. As soon as the Project
Closeout begins it is imperative to seek feedback so as to get immediate,
honest and complete information regarding the project successes, failures
and anything relevant.
! !196
2. Failure to review
Whatever be the outcome, there is a tendency to "close the chapter" and
move on. For the organization's benefit, and for all the other Project
Managers to come, it is important to spend the time to review the project
and understand what was done right and what went wrong. Review of the
approach and techniques with an objective standpoint of the project team,
customers and management is very much required.
Project Managers tend to avoid review if the project was a miserable failure
and they prefer to avoid review to put the wretched experience behind and
not provide an opportunity to the concerned to complain. Even if some
aspects on the project were ok, the PM may think better not to jeopardize
the situation by giving everybody a chance to bring up all the things that
could have been done better during the review sessions.
3. Absence of PMO
Sometimes Project Managers are tempted to facilitate the close out
meeting by themselves since it is their project being reviewed. This might
lead to lack of concentration on the purpose of the meeting and PM fails in
obtaining all relevant feedback. It is a good idea to have a PMO team;
dedicated resources or trained facilitators do the job of facilitating, be a
scribe and ensure all administrative aspects are taken care of properly.
4. Getting lost in the feedback and learning the wrong lessons

It is important to concentrate on what's important and not get lost during
the feedback process and review meetings. For example, the facilitator can
ask the group to prioritize their feedback (both positive and negative) as
well as list out the things that impeded the project the most. Getting a
consensus on top five things that affected the project the most and
identifying specific items that may be useful to other projects too is a great
way to avoid pitfall and gather crucial messages. Lesson learned will help
to anticipate and prepare for similar risk on another project.
5. Absence of documentation policies
There are situations where the project is a success and there have been
great Project Assessment Meetings with a host of brilliant strategies for
other Project Managers to emulate and list of pitfalls to avoid. These are
happily recorded into the project repository and filed away.
! !197
However if the organization does not have a strategy to disseminate this

hard-won knowledge and there is no central repository of historical project
data then the entire effort is a waste. There must be a department or
person who can take ownership to collect, organize, and make available
information about the projects. That way there will be someone assigned to
actively teach lessons learned or faithfully implement best practices.
To share organizational knowledge, start by accumulating the knowledge

from the projects implemented, present the organizational knowledge
repository idea to management and encourage them to take action.
Ownership is to be assigned to the appropriate individuals for
implementing best practices and lessons learned throughout the
performing organization and create a track record of successful utilization.
It is also important to share this knowledge with the Project Management

Office or the Consulting Group organization to let everyone learn and
benefit from the experiences.
6. Failure to celebrate success
Approaching the Project Sponsor to inquire about funds that may exist for
hosting a celebration function and appropriately taking time to celebrate
the success is an important aspect of Project closeout. It can be simple like
a coffee meeting or may be a sponsored party or event. In any case, the
entire Project Team should have good memories of their experiences on
projects management and feel excited with an opportunity to work with the
Project Manager and team again.
Having a good cross-section of the Project Team attend the Project

Assessment Meeting and with a good facilitator to lead the session there
will be a lot of valuable feedback. It is important to make good sense of all
the feedback collected and document them appropriately.
! !198
7.11 POST PROJECT AUDIT
Audit of a project is undertaken at the conclusion of the project and before

the final project report is submitted. The purpose of project audit is to
analyze the project completed, the status of success (or failure), the
significance of deliverables, effectiveness of the project team and gathering
client feedback. This audit can also help to document lessons learned.
Some of the objectives of post project audit are:
Project Vision - Sometimes projects tend to change from the concept to

completion phase and it may be for the better. It is good to identify if the
project accomplished what was intended.
Project Track - An honest assessment is made whether the project was

on track in terms of scope, time and budget. Explanations are sought for
any deviations and why the project was not able to perform within the
boundaries set.
Deliverable of Value - The final product or service that the project

delivers must be able to add value to the client in terms of increase in
profits via its streamlined process or increase in productivity. Value to
business is identified to show the positive Rate of Investment and Return
of the project.
Post project Audit should not be skipped as it is an extremely valuable tool

for every project and project manager. It can also serve as a great tool for
reporting the work completed and value provided to the organization due
to the project implementation. These reports also help to share knowledge
and provide documentation for lessons learned for future reference.

! !199
7.12 SUMMARY
Projects are always temporary in nature and for this reason the Project
Manager must make sure a controlled and structured closure takes place
before officially declaring the project closed. Project closure activities
cover a range of tasks both from a management and a delivery point of
view. Post project activities are performed and tools and systems are
used for smooth management of closure.
A Project Closure Report is prepared by the Project Manager to formalize

the closure of the project and presented to the client or project sponsor
for sign-off. The PM must make sure the objectives have been met and
all expected results have been achieved before preparing the report.
The purpose of transition plan is to outline the steps to turn the project's
product or service over to the business unit and support staff. It is very
important as it pulls together the tasks necessary for handling the new
product or service to the client or customer.
Project Close-out finalizes all completed project activities across all

phases of the project to assess the project and ensure completion to
formally close the project. It may be applied as Project Inclusion, Project
Extinction or Project Integration.
A Stakeholder Acceptance meeting is exactly what the name implies and

is a factor that ensures success to the project. Project acceptability to
stakeholders might be in the form of variables like achieving financial
targets, key performance indicators or sustaining change in the
organization. Stakeholder Management Acceptance is very strongly
required for project and it is crucial that project manager manages the
project by developing a good rapport and explain the details to the
stakeholders.
Project Punch List which is common in construction projects can be used

as an effective tool for appropriate closure. It is a simple method in
which variations or breaches are listed and impact is estimated on the
project cost and schedule. These are items that must be completed to
formalize the project close.
! !200
Lessons learned process is a formal process in the presence of a PMO or
it may be done informally. This involves evaluation of business case,
project plan, methodology and team performance and there can be a list
of lessons learnt depending on the project. Applying exercises that can
avoid repetitive mistakes, documenting the key points and avoiding
drawbacks in future are the value derived from this process.
Project teams must ensure that they can better use the lessons learnt by
documenting the critical items in a Project Log.
Feedback is a powerful tool in project management and consists of both

giving and receiving feedback by the project manager to project teams
and concerned parties. There could be good and low points in a project
and by taking time to think about the causes and reviewing feedback,
things can be improved in the future.
The main goal of project management is to complete the project

successfully which also means steering clear of the potholes that come in
the way. Being aware of the common pitfalls helps to avoid some of the
problems that plague unsuccessful projects.
Post Project Audit is more of an evaluation of the project's achievement

as measured against the project plan, budget, deadlines and quality of
deliverables. The log of the project activities serves as baseline data for
the audit and client satisfaction measurements.
! !201
1. What is project closure and what is the significance or need for closure?
2. Explain Stakeholders Acceptance Meeting and what are some aspects

that can get their acceptance?
3. List out at least six lessons that are learnt based on experience with
projects.
4. What are the project pitfalls and how can they be avoided?
5. How is Post Project Audit useful as a tool in project management and

what are its objectives?
! !202
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !203
PROJECT MANAGEMENT SOFTWARE
Chapter 8
Learning Objectives
Introduction to Project Management Software
Simple v/s Comprehensive Project Management Software
Types of Project Management Software
- Desktop
- Server
- Web based
- Integrated
Characteristics of Project Management Software
Need for project management software by projects
Need for Project Management Software by businesses
Project Management software applications
Agile Project Management including Scrum
! !204
Structure
8.1 Introduction
8.2 Simple v/s Comprehensive PM Software
8.3 Types of Project Management Software
8.4 Characteristics of Project Management Software
8.5 Need for project management software by projects
8.6 Need for Project Management Software by businesses
8.7 Project Management software applications
8.8 Agile Project Management
8.9 Summary
! !205
8.1 INTRODUCTION
Project management is one of the core functions of an organization and it

should duly be supported by appropriate software. Centuries ago or even in
the early part of 20th century, when software for project management was
not available, project management was dependent on paper work. This
eventually produced a whole lot of paper documents which had
disadvantages of storage space and security risks. Further searching
through them for information was very time consuming and not a pleasant
experience.
When software was invented in the middle of last century, project

management software ran on big mainframe computers which could be
used only in large projects. These systems had some limitations and were
not suitable for all kinds of projects. In the 1970s and 1980s as the
software industry grew rapidly, computer companies were able to develop
relatively low cost software to manage projects and project management
methods were better established. But project schedules slipped during test
runs, especially when confusion occurred in the gray zone between the
user specifications and the delivered software. With various inventions and
technological advancements, project management software and methods
focused on addressing project and user requirements and software became
available at an affordable cost for the business; as a result many software
development companies started developing project management software.
Now different kinds of software are available depending on the project
needs and complexity. Since industries and project team reaped multitude
benefits with the use of software, they became quite popular among all the
industries and these project management software were quickly adopted
by the project management community.
! !206
8.2 SIMPLE V/S COMPREHENSIVE PM SOFTWARE
There is availability of simple or comprehensive software for managing

projects and these can be used depending on the type and size of project.
They cater differently to address the needs of the project team and project
manager. Typically simple and comprehensive project management
software mostly have the same features but the simple ones may lack
extensive tools to track resources and finances.
However, even without these add on features, simple project management

software offers quite a bit to the businesses, mainly an easy way to stay
organized, focused and keep track of tasks and projects.
Comprehensive software comes with the functionality for collaborating with

other team members on a global level and sharing files within the system.
They have integration capability with email which allows team members
and project managers the flexibility to work on projects from anywhere
without ever logging into an office or office site.
Simple project management software can be more budget-friendly than

more comprehensive software. Sometimes projects need a simple software
just to ensure their project is appropriately managed and delivered, so
choice of software depends entirely on project needs and the desire to
achieve success.
! !207
8.3 TYPES OF PROJECT MANAGEMENT SOFTWARE
We can classify the types of project management software available for use
by project managers into the following types:
1. Desktop
In the case of Desktop project management applications the data is stored

in a file generally. Some desktop applications may have the ability to store
their data in a central database. In some cases, they are also able to
collaborate with other users or if access is with only one user at a time;
multiple users may be able to share file-based project plans or data held
on a database.
Microsoft Project is a good example of desktop software. The entire project

can be managed using MS Project, however to collaborate with other users
the electronic documents will have to be shared.
All the involved people will have to update the same document on a regular
basis and care should be taken to ensure nothing is missed and any
duplication is avoided as well. Project needs to understand the limitation of
! !208
desktop project management software and keep track of how and when it
should be updated and maintained if there are inputs by more than one
person.
Organizations can buy a desktop package which gives them a responsive

and graphically- intense style of interface. Another advantage is that it can
be implemented on the desktop of each user. Such software works well in
single user environment or if control of the software is with one responsible
person.
2. Server
In the case of client/server approach to online project management, the

key feature is use of an intranet. An intranet is similar to the Internet as
both use protocols to send and receive information. However, access to
intranet is only from within a company and not from outside, unlike the
Internet.
Client/server approach offers a more secure method of online project

management as the employees of a company or project team members
with requisite access to the company's intranet can access the project work
from any computer within the network that has access to the system's
management software. This approach is useful for projects that are internal
to the company, since sharing information with external organizations can
pose problems.
Server-based project management applications are able to collaborate well

and designed to support multiple users who work on different parts of a
project internal to the organization. These systems hold data centrally and
enable users to share knowledge and expertise.
3. Web Based
In the case of web-based project management software the users can

access the web application and make changes to the project management-
related activities. This is a good solution to solve the limitation of desktop
software and is useful for distributed projects across departments and
geographies. The concerned management and project manager or
stakeholders can access the project details at any given time from
anywhere.
! !209
In these cases the project management software is implemented as a web

application which can be accessed using a web browser through the
internet or even the intranet or extranet.
The main advantage of web-based project management applications is the

fact that they can be accessed from any type of computer without installing
special software. It is also possible to access the application via a
Smartphone or tablet. Typically for a monthly charge the software is
maintained by the service provider or vendor. This would include automatic
updates to the software and the monthly charge might be cheaper than
trying to buy and maintain the application.
The nature of the system has the feature of multi-user capability, however;
web-based project software tends to be slower to respond than desktop
applications. Also project information is not available when the user is
offline but the data can be downloaded and referred to as required.
This model is best suited for globally spread virtual teams that can operate
on the Internet.
4. Integrated
Integrated project-management software combines database, worksheet,

graphics and word-processing capabilities to support many of the activities
that are normally associated with planning and performing the project.
Integrated project-management packages offer benefits, as well as

drawbacks. The benefits include linking of the package's functions and
availability of a variety of predesigned report templates. It integrates
project management with budgeting, scheduling, bug tracking issues and
facilitates merging every detail into one common system.
! !210
8.4 CHARACTERISTICS OF PROJECT MANAGEMENT

SOFTWARE
There are many things to consider when choosing project management

software. All the projects may not require all the features of project
management software. Hence it is important to have a good understanding
of the project requirements and needs prior to using a software. Some of
the essential aspects of project management software that can help in
choosing the right one are:
1. Collaboration
Collaboration with the team members and access to project documents is a

key factor for deciding on the project management software to be used.
The project manager and leads / members must be able to update relevant
project documents and the authorized stakeholders as well as key business
personnel should also be able to access and give their recommendation or
inputs to the project documents whenever they want to. Adequate access
control and authentication policies must be in place to provide access to
the concerned people to the project management software.
Software that enables a collaborative approach helps to reduce the risk,

uncertainty and inefficiencies in business relationships which lead to
increase in competitiveness, innovation, productivity and profitability.
Hence this is a very important aspect especially for larger and longer
running projects that have teams spread at different locations.
Collaboration enabled project management software might be slightly
expensive but in the long run it will be beneficial as it can be tailored for
the organization and saves time and money.
2. Scheduling
Scheduling is one of the main features that should be considered while

going in for any project management software. Scheduling tools like Gantt
Charts can be useful to sequence project activities. Modern project
management software can provide the ability to draw Gantt charts for
activity scheduling or the software might even include support for resource
assignments, critical path and simulation where changes can be done
automatically.
! !211
Some of the project management software offer Baselining. In Project

Management, once the project plan gets approved the project manager
saves it as a baseline plan. It helps to monitor and evaluate the success of
a project as baseline can make comparison of the current status of the
project with the initial estimated one.
Ideally, the project baseline once created should not be changed anymore,
but sometimes new requirements or schedule changes bring about major
change to scope or cost and make it inevitable to adjust the baseline set.
When requirements are changed and new requirements are added to the
project later, project management team can compare the new schedule
with the baseline schedule automatically to understand the project scope
and cost deviations. Hence this feature is a key consideration for projects
that could be subject to change and schedule variation.
3. Issue Tracking
Every project faces many issues that need constant tracking and
monitoring. Therefore, the project management software should have
options to track and monitor the issues that come up during the project life
cycle.
Web-based software are available that help to manage test cases and track
defects. Some tools provide a great user experience along with incident
and problem management, powerful ticketing, enhanced impact analysis,
change and release as well as Knowledge Management.
Organizations will prefer software that captures, investigates & manages

cases. With customizable and flexible features like ticket tracking, service
requests, email management, live chat at affordable cost project
management software with these options is a powerful tool for use by
project managers. An added advantage offered by these tools is a
proactive approach to uncover issues which help risk minimization and
change management, they also address budget and scope changes. Risk
Management contributes to improving safety and regulatory compliance as
well for the companies.
! !212
4. Project Portfolio Management
Project portfolio management is one of the key aspects when an

organization is associated with more than one project. Here it becomes
important to measure and monitor multiple projects to understand the
overall projects progress.
There is availability of fully integrated project portfolio management

software solution which enhances ability to select and prioritize the right
projects that align with the business strategy. They offer benefits of
detailed cost/benefit forecasting, make go / no-go stage gate decisions and
strategic risk analysis. This provides a clearer picture to allocate and decide
on long term resource capability planning.
For a smaller organization with only a couple of projects this feature may
not provide any value and it might just prove to be more expensive.
However for large organizations with several projects this feature results in
enhanced reporting and a better understanding of the probable
consequences of every change in project scope.
5. Document Management
Projects generate many documents and there are many team members,
client personnel and key stakeholders who need access to these
documents. Therefore, the project management software should be able to
provide document management system with appropriate access control
system. Some of the features available include centralized repository for all
documents, organizing capability, printing and distribution of documents
via email or fax, share documents and minimize the space required for
document storage. In addition, the document management feature should
support document versioning as and when they are updated.
Again this feature is useful for middle level and larger organizations as it
enables efficiency and automates business process workflow. Encryption,
access control and security governance are required to be in place when
such systems are implemented.
! !213
6. Resource Management
Resource management (human resources and other resources) of the

project is one of the key expectations from project management software.
The project management software should show the utilization of each

resource throughout the entire project life cycle.
In today's global economy, regardless of their physical location, it makes

sense to have the right resources in a project team. Forecasting and
capacity planning, increase resource utilization, deployment of resources
based on employee's skills, interests, experience and availability, billing
and payment in the right currency are some of the features that are
available in resource management software.
Project Management has the benefit of making strategic decisions based on

real time information for complex data and resource needs by having the
most appropriate software for their project needs.
Conclusion:
With current global projects that are highly modern and advanced, project
management practice requires the assistance of project management
software at various phases. The use of software helps the modern project
management practice which is complicated to a great extent.
When choosing project management software, the project manager and

leaders need to evaluate the characteristics of software and match with
project management requirements so that maximum benefit is derived.
It is not wise to choose one with more features than required, as usually
project management software comes with a high price tag. Also having
more than the required features could create more confusion from the use
of the software rather than be of help.
! !214
8.5 NEED FOR PROJECT MANAGEMENT SOFTWARE BY

PROJECTS
Project management software products are expected to help any

organization to manage projects from start to finish successfully, effectively
and efficiently.
They also allow employees at different levels to have an input into the
process as much as the project team or stakeholders.
Project management software thus does far more than just manage the
projects themselves. As seen in the earlier part of this Chapter, various
project applications can also carry out scheduling, resource allocation, cost
control, budgeting, collaboration, communication, quality management,
issue tracking, documentation and administration. Whatever be the kind of
software with as much number of features, the aim is to handle all aspects
and complexities of larger projects and help keep costs down. Not to be
disregarded is the fact that smaller projects are also able to use simple
software to help them manage projects well.
8.6 NEED FOR PROJECT MANAGEMENT SOFTWARE BY

BUSINESSES
Projects can be simple or complex and dependent on many different factors

both internal and external, divisions and outcomes.
For business, project management software can help to determine which

events depend on one another, how each action impacts the other events
and what the consequence is if situations change or go wrong.
They assist with resource scheduling which can program resources (people,
finances, physical, any kind of resource) to work on various tasks and
detail the need for the resources. Business can also use project
management software to deal with uncertainties in the estimates of the
duration of each task and rearrange to meet deadlines and deal with
multiple projects simultaneously, as part of an overall organization program
objective.
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8.7 PROJECT MANAGEMENT SOFTWARE APPLICATIONS
Let us look at some of the Popular Project Management software

applications:
1. Microsoft Project
Microsoft Project is a powerful desktop tool to analyze and plan resources,
budgets and timelines. It can estimate resource needs, measure project
progress and serves as an effective tool to collaborate project teams to see
tasks, flag issues and minimize risks. This software can plan easily for
projects and empower teams with real time reporting on project statuses,
effectively evaluate ideas, align vision and effort to prioritize initiatives to
choose optimal project portfolios to deliver the intended business value.
Microsoft Project is a widely accepted package offering a web interface and
deep integration which enables collaborating from virtually anywhere and is
the most popular tool for project managers, project teams and decision
makers.
2. Matchware MindView
MindView is a professional software that allows mind mapping and visually
brainstorm, organize and present ideas. It can turn ideas into action fast,
integrates with MS Office, has unique project management features and
enables productivity and efficiency. It has an easy to use spreadsheet with
professional templates available for use and can collaborate with team
members and clients in real time. Mind view is useful to visualize ideas and
concepts, turn brainstorming sessions into action plans and run meetings
more effectively. It can create work breakdown structures, Gantt charts,
timelines and export and synchronize tasks with outlook.
3. Project Kickstart
Project KickStart is an easy-to-use project management package that
easily specifies requirements, tasks and resources to generate a full Gantt
schedule including task dependencies. It integrates well with other
applications like PowerPoint, Outlook, Excel, Word, Microsoft Project. This
tool helps to identify problems and provides potential solutions where the
entire project plan and schedule can update automatically based on revised
dates and other changes.
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4. RationalPlan Multi Project
This is a very powerful project management software that is useful to

project managers and teams to create consistent project plans, manage
resources and budgets, analyze workload, track progress and estimate
project costs.
The program's interface is plain and extremely easy to navigate as each

step of the project management process is listed in a tree hierarchy.
RationalPlan Multi Project has features to manage multiple projects and
offers a variety of different views and charts to help project managers track
each project's progress and cost.
5. Basecamp
Basecamp runs in the cloud and is a low-cost web-based project

management and collaboration software tool for projects. It offers an
intuitive suite of tools that are affordable with valuable premium features
and an environment that scales well as the business grows.
The project management Web portal acts as the central place where all
activity around a project occurs. Each user has a profile, login credentials
and dashboard that show only the information relevant to the user. Within
Basecamp, project managers can create a project and manage all the
project work and accesses to the users to the information contained
therein along with tracking communication and assets to the project.
6. Smartsheet
This is a comprehensive solution to seamlessly manage the project team,
time and tasks and collaborate project management for projects of any
scale and size. Project managers use Smartsheet to coordinate a wide
variety of projects and processes ranging from complex to simple. It is a
tool that provides real-time visibility across people, projects and
deliverables. It has a familiar spreadsheet layout that makes it easy to get
started, is interactive and provides status updates, resource management,
automated workflows and file sharing features.
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7. AceProject
AceProject is a web-based project tracking software that streamlines the
project management process by viewing and reporting progress across the
entire portfolio. Visually tracks project and task progress, view deadlines
and task dependencies that help manage projects from end to end. This
online project collaboration and time tracking application is available as
software-as-a service that can be quickly implemented. It is ideal software
for project managers for tracking projects for successful planning,
monitoring and implementation and suited for small-to-medium sized
businesses as it provides many useful features at scalable and affordable
costs.
8. Assembla
This is a set of cloud based tool delivering innovative tools and processes
for software developers based on the idea of continuous delivery. Assembla
is instrumental for moving teams from the typical Scrum agile towards a
more continuous, distributed and scalable management tool. It integrates
tasks and code into one agile product and is used in more than 100
countries. Assembla provides tools and services to accelerate cloud- based
Agile development and has a track record of hosting repositories and
providing task management and collaboration tools to thousands of
projects.
9. Central Desktop
Central Desktop is one of the leading cloud-based collaboration platform

providers for Project Management and File Sharing.
Customers can tie their processes to the Central Desktop software's

professional services automation and financials which gives the project
manager greater visibility into project costs and profitability.
Central Desktop's files and discussions feature enables sharing files

conveniently with a geographically dispersed group, finalize and save the
relevant files at a central location.
Projects are managed better as it can connect people well with Central
Desktop's web meetings feature to hold virtual meetings to discuss the
progress on the project. Being able to connect over the web rather than in
person is a big advantage of Central Desktop's collaboration platform as it
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exploits the power of cloud collaboration to simplify and improve the way
projects and teams work and deliver wins.
10.Copper
Copper is a web-based project management software tool that helps
projects to collaborate and manage client information, tasks, files, contacts
and calendars. Project tasks, timelines and progress can be reviewed and
teams including clients can actively contribute to this information.
Copper Project can be deployed as SaaS or hosted on the customer's

server within their office.
11.Atlassian JIRA
JIRA provides planning, issue tracking and project tracking for software
development project teams to improve code quality and the speed of
development. JIRA Cloud provides advantage of a number of pre-
configured integration features like linking between applications.
JIRA can capture and organize project's tasks, issues, prioritize and take
appropriate action so the project manager and team can spend time
effectively building great software. This tool is used extensively by
Software project development teams and help desk systems.
12.Mavenlink
Mavenlink is advanced online project management tool with resource
planning and financials capabilities. It is a form of SaaS that provides
software to manage projects, people, resources, collaborate tasks and
profits. Mavenlink centralizes and prioritizes all activities, tasks and
financials at one convenient location which facilitates organizing and
utilizing time efficiently for the success of the project.
13.Microsoft Sharepoint
SharePoint is a web application framework and platform developed by

Microsoft that can be configured to run on Intranet, Extranet and Internet
sites and provides content and document management.
It is a browser-based collaboration and enterprise information portal that is

used by Project Managers and teams. It is a great tool for content
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management which allows teams to set up a centralized, password

protected space for document storing, sharing, downloading, editing and
then uploaded for continued sharing. SharePoint can help improve the
organization's effectiveness by streamlining the management of and access
to data.
Projects are using SharePoint as it provides central management,

governance, and security controls for implementation of these
requirements. SharePoint can integrate well with projects implementing
ERP or CRM packages as it has system and process integration as well as
workflow automation capabilities.
SharePoint is used by several Fortune 500 companies across the world as it

is a flexible service-oriented architecture (SOA) that can be scaled down to
operate entirely from one machine, or scaled up to be managed across
hundreds of machines.
14.SAP Portfolio and Project Management
The SAP Portfolio and Project Management application can help to invest
the right resources in the right projects to advance strategies while
completing quality work on schedule and within budget. Projects rely on
SAP portfolio and project management software tool to help link ideas and
strategies with project data, workflows and business processes. SAP is the
world leader in enterprise software and software related services.
Enterprises in all industries must respond to a volatile market evolving at

internet speed with available resources. SAP controls and innovates
projects, processes, products and services across their lifecycles with tools
to standardize project execution processes and reduce administrative
burden. This application tool can facilitate to:
Do the right things at the right time within budget
Align initiatives with strategic objectives to demonstrate and increase

their business value
Synchronize with corporate strategy for better insight into the pipeline of
projects
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Balance projects portfolio based on business objectives and investment
type
Increase transparency for early identification of project opportunities,

anomalies, bottlenecks and risks and make adjustments
Improve resource utilization by capturing, prioritizing and allocating to

desirable projects
Lower Total Cost Outflow with prebuilt, services-based integration to

disparate back-end systems
Get the most out of capital projects which have special challenges,
complexity and high risk
Uses auditable planning and budgeting processes
Monitor performance by analysis of activities and costs
Stay on track downstream in the product lifecycle
Collect feedback to power future innovation initiatives
15.LiquidPlanner
LiquidPlanner is an excellent tool that helps project managers be more
strategic and seize control of their projects, manage their resources with
ease, and deliver schedules with confidence. It provides visibility at all
levels to projects, tasks, estimates, schedules and risks that help to
estimate schedules with confidence and manage and forecast resource
availability.
LiquidPlanner helps to be one step ahead of the curve as it shows how

changes to one project will impact other projects and the resources
attached to those projects. It aids optimization and is a priority-based
scheduling engine that shows how likely it is that the project will be
delivered on time. If a new initiative suddenly becomes a top priority, it can
be dragged to the top of the list and the schedule is automatically updated.
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16.Clarizen
Clarizen is an extremely successful cloud-based online project

management software with project management and innovative
collaboration tools. It is cross-platform and supports multiple languages
and currencies and integrates with most popular business solutions.
Clarizen provides most of what project managers need to manage projects,

improve performance, ensure stakeholders' confidence and help teams
communicate. This project management software also helps to manage
budgets, time and complex scheduling.
It provides efficient, insightful multi-project portfolio management and

modules such as task management, reporting, issue management and
financials to make the project successful. This tool has the ability to
manage advanced interdependencies and perform complex risk analysis,
produce baseline comparisons and support the critical path method.
17.Vorex
The Vorex Project Management Software is a web based project, time and
expense tracking tool that integrates everything to run the business
efficiently. It is a cloud based tool that provides visibility and complete
control through a single integrated interface that gives access to all
projects.
18.Teamwork
TeamWork is an intuitive, secure, web-based project management software
and online collaboration tool that facilitates to run projects more efficiently,
increase collaboration and accountability among team members. It
provides transparency, establishes responsibility, all teams members are in
sync and stay on track, reprioritizes milestones and improves productivity
for internal and client projects.
19.ZohoProject
The Zoho Projects toolset is a comprehensive cloud-based PM tool, and is
ideal for orchestrating projects across a virtual team of internal and
external resources. There's a built-in Chat option which is a nice add-on if
all communication is to be captured. There's also a meeting scheduler that
ties into the work calendar that offers more flexibility than simply setting
up meetings as tasks. Zoho Projects makes planning projects easy via use
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of web interface that allows to quickly defining tasks, set dependencies and
monitor progress of projects with dependencies which ensures deadlines
are met.
20.Citrix Podio
Citrix Podio is a collaboration tool where workspaces can be set up to

support preferred workflows and help project deliverables to be more
effective. Apps can be built, work is better organized and it can be
customized to fit projects and run them most efficiently which makes it a
flexible project management software.
8.8 AGILE PROJECT MANAGEMENT
Agile Project Management is a revolutionary method of project

management practice that is more applied to software development
projects. Reason being with the advancement of software development,
technologies and customer needs, the traditional models are not forceful to
take care of all the requirements.
Software development models that are more flexible were developed to

address these requirements.
Since agile development model is different from conventional models, agile

project management is a specialized area in project management.
8.8.1 Agile v/s Traditional model of project management
In agile model the entire team is a tightly integrated unit including the
project manager, developers, quality assurance and the customer
whereas in traditional project management the project manager is the
owner of the project.
Open communication is one of the key factors which ensure that
communication flows freely between all team members. Teams
experiment to see which solution works best for the project, hence
meetings are held more frequently to identify dependencies.
In Traditional model, there is more of leadership style which works on

the concept of commanding and controlling. Directions to work and
deliver flow from top to bottom.
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Agile is cross functional, welcomes change, integrates and gets customer
involvement with less focus on formal processes.
Traditional is also called as Waterfall methodology where it is more

document driven with resistance to change and more serious about
processes; customer is involved but keeps some distance from the
project team.
Agile delivers short term work to clients to get rapid feedback whereas in
Traditional framework the solution or product is extensively planned,
executed and tested.
8.8.2 Scrum
Scrum way of working is relevant with Agile framework. Scrum is a

framework for effective team collaboration on complex project teams.
Scrum supports teams to deal with difficult situations by creating small set
of rules for teams to be able to focus their innovation on solutions,
encourages creativity and leverages the traits of human resources to do
things better together.
Going forward projects using Agile methodology will have to implement it

appropriately in their business so that they can respond to competitive
market forces with innovation, rapidly and agility.
8.8.3 Scope of Agile Project Management
The entire team is responsible in managing the project deliverables and it

is not just the project manager's responsibility. Common sense prevails
over documented policies and procedures. Systems and tools used enable
the team including customer to express their views and feedback honestly
and quickly. This minimizes delay in management decision making which
helps project to progress faster.
The purpose of Agile project management is best fulfilled when it meets

client needs, delivered with minimal costs, within schedule and enables
companies to achieve results and profits faster than traditional project
management tools.
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8.9 SUMMARY
There are different ways in which project management software is made

available by vendors and service providers.
If people start their large information management projects without a

clear plan and project management tools, it is a recipe for failure down
the line. Use of right tools and expertise elevates business leading to
increase in productivity and profitability.
Project management software is competent to assist with the planning,

organizing, managing and implementing needs of the project. It can
estimate and manage resource allocation, plan activities, schedule,
c o n t r o l c o s t , b u d g e t m a n a g e m e n t , c o l l a b o ra t i o n s o f t w a r e ,
communication, decision-making, quality management and
documentation or administration systems. Today, numerous PC &
browser based project management software exist and they are finding
their way into almost every type of business.
Simple and comprehensive project management software has various

different or similar features to assist the project manager. Simple ones
may be more economical than comprehensive software which offers
more collaboration and integration features.
There are literally dozens of good project management software

applications out there, with Microsoft Project being one of the most
popular mid-range project management packages. Open source project
tools are also available to download or use via a web browser. Some of
the types of project management software are:
- Desktop software works well when there is a single person to manage

the documents. Microsoft Project is a good example which is very
popular.
- Server uses intranet and is accessible to the members within the

organization only. Data is centrally maintained and this concept enables
sharing information with the employees and project teams.
- Web based project management software provides the facility to users

to access the web application and make requisite changes. Team
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members can access it from anywhere in the world and this is

extensively used by geographically dispersed remote teams.
- Integrated software is able to collate the database as well as several

predefined templates, it enables merger of various systems with the
project management systems.
Good thought is to be given to choice of project management software as

they have various features and it is best to select the most economical
one which offers the required capabilities.
- Collaboration helps to reduce risk and inefficiencies leading to

increased productivity and profit margins.
- Scheduling is useful to sequence project and take care of changes in

project schedule, scope and cost.
- Issue Tracking will provide organizations with tracking and monitoring

capabilities which minimizes risk and addresses change management.
- Project Portfolio Management is important when there are many

projects and there is a need to prioritize the ones that are in line with
business needs.
- Document Management automates workflow and access controls as it

maintains a repository of project documents for reference.
- Resource Management Software tries to maximize the resource

utilization in the best manner and especially when there is shortage or
critical need of resources.
Project Management software is needed by projects to accomplish

projects well from beginning to end.
They are also needed by businesses to resolve event sequence,

scheduling and meet deadlines.
There are various project management software applications available in

the market, some of them are:
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- Microsoft Project
- Matchware MindView
- Project Kickstart
- RationalPlan Multi Project
- Basecamp
- Smartsheet
- AceProject
- Assembla
- Central Desktop
- Copper
- Atlassian JIRA
- Mavenlink
- Microsoft Sharepoint
- SAP Portfolio and Project Management
- LiquidPlanner
- Clarizen
- Vorex
- Teamwork
- ZohoProject
- Citrix Podio
Agile Project Management is prevalent in software projects since traditional

methods are not sufficient to cope with the technological demands of
software industry.
Agile model is cross functional, integrated and is change oriented with

client involvement.
Scrum is a simple and leading Agile development framework but

incredibly powerful set of principles and practices that help teams deliver
solution in short cycles. It fosters fast feedback, continual improvement
and rapid adaptation to change.
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1. Explain the difference between simple and comprehensive project

management software.
2. Classify the available project management software and explain them

(hint - there are 4 types).
3. What are the characteristics of Project Management Software?
4. Name and describe any five popular project management applications.
5. How is Agile different from Traditional project management?
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !229
SYSTEMS AND TOOLS CONSIDERATION
Chapter 9
Learning Objectives

Introduction to consideration on use of Systems and Tools for Project
Features for selection of systems and tools
Criteria for choosing Project Management Software
How to choose online services
Project Management Information System, its features and challenges
Pitfalls to be aware of and avoided in software selection
Software as a Service (Saas)
Cloud Computing and difference between Cloud and SaaS
Virtual Teams and its advantages and disadvantages
Structure
9.1 Introduction
9.2 Features for systems and tools selection
9.3 Criteria for Project Management Software
9.4 How to Choose Online Services
9.5 Project Management Information System
9.6 Pitfalls to be aware of in software selection
9.7 Software as a Service (SaaS)
9.8 Cloud Computing
9.9 Virtual Teams with the advantages and disadvantages
9.10 Summary
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9.1 INTRODUCTION
The question is when there are so many systems, tools and techniques
available in the market how can projects or project managers decide to
choose and implement the right tool. Just because one organization was
successful with the use of a particular tool it does not mean that all
organizations will be successful with use of that tool. Every organization
and project has their own unique needs and the tool must be able to
enhance their productivity and success.
What is important in selecting the appropriate tool? The answer lies in

identifying the needs and how the tool will be used. Many tools offer a free
trial period that allows the teams to understand the functionality and how
it will integrate within the organization. By making use of this opportunity
teams can understand key features that are pertinent to their project, what
metrics are critical to their organization, which type of reporting is required
to meet their needs. It gives a chance for project manager and teams to
see a full view of what they can expect while running a project by doing a
trial run and creating reports.
9.2 FEATURES FOR SYSTEMS AND TOOLS SELECTION
Although there are some specific expectations of the tools, some of the
following features will help to decide if the project is ready to pay and use
the tool:
Budget
The amount of funds available determines the kind of tool or software for a
project. Desktop tools might be able to achieve the expected at low cost. If
there are more funds or if project manager is looking to scale up across the
organization with a dedicated team, it could be worth considering a
collaborative cloud based tool. These tend to have more powerful
functionalities and are multi-purpose allowing various capabilities and
training.
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Project environment
Nature of the project, its size and complexity are major determinants of
deciding on the usage of any system or tool or technique. Practically all
projects are planned and implemented in a social, economic and
environmental context for a specific purpose. The end result may be a
grand success but the entire project lifecycle can have positive and
negative impacts. The project team especially the project manager should
always consider the project in its social, cultural, economic, international,
political, and physical environmental contexts. This will help the team to
determine the tool they need to use to be better prepared for any issues,
plan for risks, understand the factors at work and gear all efforts towards
meeting objectives.
Customer Organization
Knowing what one is getting into can sometimes be half the battle. The
climate and happenings in the customer organization tend to affect the
project positively or may inhibit the ability to be successful on it. Having
the right tools with the capacity to work on the client's requirements can
be a great help to the project's progress.
Team members' comfort and familiarity with computers and

software
The time and effort that team members take to learn and use the package
is very crucial when using a tool or software for a project. Having a tool or
software package with state-of-the-art analysis and reporting capabilities is
no help if people don't know how to use it or if too much time and cost is
spent in training the team members to use it effectively.
Systems and Tools in use

If there are several systems, tools and software packages in use already
and they are equal in most aspects, it is better to choose one that is
already available and in use because team members most likely have
experience with it. Rather than investing time, effort and cost in a new tool
it might be advantageous to use an existing one since there will be lot of
folks who know the intricacies of the tool and can readily help with any
issues in the usage. Unless the client demands a specific tool, project
manager can leverage one that is being used already on similar projects.
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Reporting features
A tool that supports the format and features of reporting required with
minimum customization will be a consideration while deciding on a project
tool or software.
Integration with Client's software

The project tool and software should allow communication and coordination
easily with client's software so that it achieves maximum benefit. Ability to
collaborate with client's systems is a key factor and it saves time and
money in various phases of the project cycle.
Conclusion:
Not all project systems and tools are created equally, so the key is in
choosing the one that has the required programs to be able to work on the
project from start to finish and accomplish project goals. Some of the
different functions that a specific system could have include organizational
tools, budgeting tools, tables, graphs, applications for drawing diagrams,
add in charts, report generation, resource allocation and other helpful
features. Before deciding on the tool, it is better to spend time to consider
what feature is needed and what is not needed. Projects may already have
a tool that best handles the resourcing or budgeting needs in which case
they can save some money by choosing a project management system that
need not have such repetitive features but focus on the other requirements
for the project needs. This involves thinking about long term project goals
and how best to get there without having to spend a fortune.
9.3 CRITERIA FOR PROJECT MANAGEMENT SOFTWARE
Market is flooded with various kinds of project management software.

Project Manager or Leader must be able to compare the different software
tools and decide which meets their requirements. After understanding the
tools, creating a comparison chart or evaluation sheet will help to evaluate
the features of each tool and depending on the project they can select the
right software tool.
Focus should be to follow a good process to select the right system by

listing the broad features that are needed along with some key evaluation
criteria as well. Below is a list of criteria that can help to zero down on
software:
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Adaptability
Project Management Software should be able to adapt to the organization's
unique needs. Project team and client must not have to change their
processes to adapt to the software.
Flexibility
The Software should be flexible enough to blend in with the organization's
different systems and address the purpose without requiring any
modification or major adjustments.
Cost and Pricing

Software cost that fits within the budget is the preferred one provided it
meets most of other criteria as well. Going overboard for a software and
not having funds to use on the project implementation does not make
sense.
Further the pricing of the software needs to match the value to be derived
from the software use on the project.
Reporting
The main reason to use a software tool is the ability to access key data at
the right time and use the same to make decisions. Hence reports are a
fundamental part for any software tool. Ability of the project management
software to generate, modify and utilize the reports to make sound
judgment is a key criterion in selecting the software.
Database
Project management software that can provide solid database capability is
another feature that is sought by many project managers. It is useful for
storing and retrieving large amounts of data for analysis and presentation,
it can be referred to for facts and figures to be provided to stakeholders,
management and client members. It is imperative to ensure that the
software is able to maintain the security and confidentiality of the data.
Ease of Use
This is a common criteria desired in every software. Users must be able to
use the system without an overabundance of training. Typically software
vendors allow a trial run, this is when it can be found out how much
training users will need and the time that will have to be spent on learning
to use the software. In order to use the new software effectively, the users
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must be able to navigate and perform their functions with minimum

difficulty once it is installed.
Compatibility with other systems

If the project management software will have to interface with other
systems like accounting or reporting software already in use, then the new
software should be able to interface seamlessly with these pre-existing
systems.
Support and Response

It is better to go for software that the vendor is willing to support for some
period of time. Some aspects like helpdesk team, the setup, startup and
long term technical support, help documentation to use the software can
make a big difference in purchasing software for the project.
Future Expansion
Evaluation should be made of whether the software will meet future
expansion if any. If the project team bags more assignments with the same
client or group of organization or from different clients in same industry, it
would be prudent to invest a little more in the software that would
accommodate the future expansion needs of the project.
Add on features
In case of stand-alone software, project managers might look for some

specialties like creating progress reports and maintaining project log. Some
of the features to look for are graphics for project presentations or
developing charts for visual display if they can help the project
management.
Spreadsheets for performing calculations, comparison reports, accounting

for project income and expense are some other features that might be
useful if available in the software.
Others
Input and experiences from other projects of the use of the software,
rating guides and online reviews can be looked into before making a final
selection of project management software.

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9.4 HOW TO CHOOSE ONLINE SERVICES
Even if the project manager's organizational skills are the best it is a boon
to have project-management software especially for complex projects.
Software can be used for a wide variety of tasks like storing data,
retrieving, analyzing and updating that information, preparing
presentations, generating reports and results of analyses. Availability of
online services is a boon for today's project managers as it not only
addresses project management needs but goes over and above to provide
the services online and accessibility is not restricted to office space or
working hours. Below are the criteria that we used to evaluate online
project management services:
Handle Project Basics

Popular and well known top online management solutions support
traditional project management methodologies and incorporate evolving
technology requirements and new processes as well. They should be able
to handle the basics like budgeting, issue tracking, task assessment, risk
assessment and reporting.
Resource Management
The online tools will be effective if they can offer advance resource
management features like availability, staffing plan, search filters, tracking
plan and resource allocation to manage resourcing plan for the project.
Collaboration
Online tool or software must enable team interaction like file sharing,
announcements, discussion and facilitate project monitoring. It will be a
great feature if users can rely on one tool to collaborate effectively with
team members for attaining project goals.
Ease of Use
Project team members will tend to abandon difficult applications or not use
it to full capacity which makes the investment in online tools less valuable.
It must be easy to understand and have convenient features such as
project templates, import tools, customization and automated functions
with ample training from vendor through webinars or one-on-one training
to help the team learn to use the online tool quickly.
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Integration
The new project management online tool or software should work well with
all existing systems. Having features that matter most to the project team
is important and if it's a large team where many people will use the
software, it may be better to get on-site training and direct-support
options.
Security
Security of the project and client's data is an essential need especially in
case of sensitive data. By using a secure project management tool there
may be avenues for many more lucrative projects in future.
Document Management
Storing documents, keeping track of different versions, having a search
engine option for all electronic documents are great features that an online
tool can offer. This also helps audit trail and content management.
Online project management tools help to change the cluttered project

management habits. A good tool will get the job done by preventing waste
of resources due to inefficiency, and help to obtain efficiency and visibility
for the project in the eyes of client and stakeholders.
9.5 PROJECT MANAGEMENT INFORMATION SYSTEM
Means and methods of communication used by the project team to share

plans and results of project activities are called as Project Management
Information System (PMIS). It is a process of organizing, collecting,
distributing and using project information in electronic means to initiate,
plan, execute and complete projects.
Some years ago the project teams had a central location where information
could be posted for all the team members, client team and stakeholders to
see the status. These were called "Project War Rooms" but in today's
scenario they are called Project Management Information Systems as they
are in electronic system. It can be a website, a common folder on a shared
drive or an e-room with different levels of access for review and update.
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9.5.1 Features of Project Management Information System (PMIS)

are:
It is used by upper and lower management to communicate with each

other.
PMIS is a web-based, centralized database created and used by the

project team. It is collaboration software with centralized stores of
integrated information with rules for access that serve the project team.
PMIS help plan, execute and carry out management goals. During the
planning process, project managers use it for budget framework, cost
estimation, scheduling and baseline scope definition.
The PMIS describes the program and the projects' scope, cost, time and
quality. It characterizes the organization, project team and their roles.
It helps to manage agreements and documents like contracts,

commitments and approvals.
PMIS steers collaboration by providing information to ensure the team

members have a common understanding and are on same page.
It enables exchange of best practices to be followed for policies, workflow

and document management in a reliable way.
It is a form of performance measurement and educative process directed

at improvement for team members and project management.
During execution phase of the project, information is collected into one

database and PMIS is used to compare the baseline with the actual,
manage materials and collect financial information for reporting purposes.
During the close of the project, PMIS is used to review the goals against
tasks accomplished after which a final report of the project close is created.
Project management information system is used to plan schedules, budget
and execute work to be accomplished in project management.
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9.5.2 Approach to implementing PMIS
PMIS can be in one of the following forms depending on the project team
dynamics and organizational culture.
Project management software file available in a shared location

In the case of complex and large projects, PMIS can be in the form of a
software file in a shared location. The project complexity is extremely high
and project management software is used for its enhanced capability to
track inter-relationships between project activities and project resources.
There has to be adequate training for all team members to use the features
and they must be competent at using it. The full potential is achieved when
they create a project plan, update the status of project, maintain all project
information and frequently use the software.
Spreadsheet file(s) available in a shared location

If the project is a simple one it is possible that project activities can be
planned and updated using a spreadsheet which is quite easy for project
team members to access and understand. The spreadsheet is a great way
to manage project data and information; however it can become
cumbersome to track complex interactions between activities.
Physical Meeting room or Virtual Meeting space

Meeting rooms are used which are also referred to as "War Rooms" where
team members meet regularly to plan, discuss, track project activities and
changes. A Whiteboard may be used to post information or Post-it notes
can be used to highlight activities or tasks. With the advent of modern
technology this can take the form of a virtual room instead of a physical
meeting room. In this case team members post project information with
the help of tools of the virtual room technology. This provides ability to
instantly communicate with the entire team geographically dispersed and
quickly react to changing project conditions. However all team members
must have access to the virtual room and be well trained in the use of the
technology tools.
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9.5.3 Challenges of PMIS implementation
There might be a bumpy startup as the team has to adjust to the discipline
of information management to realize the full potential of the tool.
Maintaining timely and reliable information flow is a challenge and top
management as well as the project manager must provide full support to
the team. PMIS has interfacing capability with different software which
makes it easy to maintain data and avoid duplication.
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9.6 PITFALLS TO BE AWARE OF IN SOFTWARE SELECTION
There are some common pitfalls that one must be aware of in selecting the
software so that these problems can be avoided.
If software has a declining user base, it is a sign to be aware of. The

vendor might discontinue the software or halt future development or
discontinue support to clients.
Software acquired from a different country can pose confusions in use of

terminology and language. For example date format may be DD/MM/YY
or DD/ MM/YYYY or MM/DD/YYYY. To gain a full appreciation of the
software, adequate vendor training and support is required.
Ensure software is compatible with the hardware within the organization.
To ensure that the software or tool addresses project management

needs, all team representatives should be involved in selection and not
just the IT function.
Being ready for induction process for personnel, training, hiring

specialists are all part of implementing the software.
9.7 Software as a Service (SaaS)

Software as a Service (SaaS) is a software delivery method that provides
remote access via Web based service to software and its functions. As a
result organizations can access business functionality at a cost typically
less than paying for licensed applications since SaaS pricing is typically
based on a monthly fee. Clients rent or lease storage space from a third-
party SaaS provider where data is transferred from the client to the service
provider via the Internet. The client organization accesses their stored data
using software provided by the storage provider. It is also used to perform
common tasks like data backups and data transfers. Storage as a Service
may also be called hosted storage as it remotely collects, processes and
stores user-specific data.
Companies don't need to invest in additional hardware because the

software is hosted remotely and this results in cost savings. SaaS
eliminates the need for organizations to manage the high costs associated
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with installation, set-up and often daily upkeep and maintenance of

software.
Software as a Service is popular with SMBs because there are usually

minimal or no start-up costs as they don't have to invest in servers, hard
disks, technical IT and maintenance staff, etc. Payment is only for the
amount of storage space used.
9.7.1 Features of SaaS are:
Improves human productivity by providing access to staff over the

internet.
Streamlines organizational processes by delivering a broad range of

business applications over the Internet.
With a single software platform, a broad spectrum of users can be

supported across many functional areas.
Reduces implementation, training, and ongoing support time for the

client organizations. Reduces internal operating costs and helps lower
total cost of ownership for customers. Implementation time is shortened
and greater user acceptance is achieved.
Minimizes overall business risk with greater data accessibility and

security.
As organizations continue to adopt outsourced models for automating

critical business processes, SaaS is becoming more attractive model as
software features can be easily enabled or disabled by customer or user
based on a specific industry, work environment, or other criteria.
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9.8 CLOUD COMPUTING
Several enterprise applications have drifted to cloud and project

management is no exception. So let us look at what are cloud computing,
how it works, benefits and concerns around it.
Employees need to have the right hardware like desktop, laptop so that
they can do their jobs. But computers alone isn't enough, they need
software as well to work.
Instead of installing a suite of software for each computer, there will be a

need to load only one application which would allow employees to log into
a Web-based service that hosts all the programs needed by the users for
doing their job.
Remote machines owned by another company would run all programs and
this is called cloud computing.
In a cloud computing environment local computers do not have to manage

all the running applications, rather it is managed by the network of
computers within the cloud.
The main thing required is that the user's computer must be able to run
the cloud computing system's interface software, like a simple Web
browser and the cloud's network takes care of everything else. This leads
to decrease in hardware and software requirements on the user's side.
Cloud computing is experienced in everyday life, like an e-mail account

with a Web- based service like Gmail, Hotmail or Yahoo! Mail. The software
and storage for these emails are not on any personal computer but it's on
the service provider's computer cloud. So we can only imagine and enjoy
the advantages cloud computing can bring to project management life.
The diagram that follows will enable to understand cloud computing better
and how end users are able to access applications.
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9.8.1 Cloud Computing Architecture
Cloud computing systems have a front end which is what the user sees and
the applications required to access the cloud computing system. All the
work is done at the back end which is the cloud section. They connect to
each other through a network which is usually the Internet. Cloud
computing systems do not necessarily have the same user interface. Email
services are web-based and leverage existing Web browsers like Internet
Explorer or Firefox. Other systems provide network access to the
customers through some unique applications.
Middleware is software that allows networked computers to communicate

with each other.
Protocols are a set of rules that are followed by a central server to

administer the system and monitor traffic and client demands to ensure
everything runs smoothly.
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Server virtualization is a technique of maximizing the output of individual

servers and reduces the need for more physical machines since servers
have unused processing power most of the time.
Redundancy is a process within cloud computing where the system makes

a copy of all its clients' information to be stored on other devices which
enable the central server to access backup machines to retrieve data that
otherwise would be unreachable.
Cloud Computing Applications are practically limitless and with the right
middleware the system can execute all the programs that are run by a
normal computer. It is not an exaggeration to state that everything from
generic word processing software to customized computer programs can
work on a cloud computing system.
9.8.2 Benefits of Cloud Computing
Definitely there must be some benefits for a company to want to rely on

another organization's computer system to run programs and store its
data, so some of the reasons are:
Ability to access their applications and data from anywhere at any time
using any computer linked to the Internet. Data is not confined to a hard
drive on any single user's computer.
Employees can be more productive which enables organizations to get

more work done and on timely basis as the users can access work
information from anywhere. Employees are also happy as they can work
remote instead of commuting long distances.
Reduction in the need for advanced hardware on the client side is a great
cost saving facility. Cloud system would take care of memory needs and
client can just have an inexpensive computer terminal with a monitor,
keyboard and just enough processing power to run the middleware
necessary to connect to the cloud system. All client information is stored
on in cloud on a remote computer.
Cloud computing systems provide organizations with company-wide

access to computer applications without having to buy specialized
software or licenses for every user.
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Companies have the option of storing data on the service provider's
hardware so that the companies don't need physical space on the front
end and this reduces space need for servers and digital storage.
Savings for the clients since they don't have to have IT support or pay
for specialized services.
With a grid computing system the calculations can be sent to the cloud
for processing which can tap into the processing power of all available
computers on the back end, significantly speeding up the calculation for
various critical jobs.
9.8.3 Cloud Computing Concerns
Surely the biggest concerns about cloud computing is security. Allowing

another company to handle important data will be a cause for worry.
However companies offering cloud computing services live and die by
their reputations. They are able to survive only because these companies
have the best and most reliable security measures in place. It's in the
service provider's interest to employ the most advanced techniques to
protect their clients' data, else they might lose all their clients.
Protection of the client's privacy is another concern since the client can
log in from any location to access data and applications. Cloud computing
companies will need to find ways to protect client privacy. Cloud
computing companies have advanced authentication techniques like user
names and passwords and they have authorizations in place so that user
can access only the data and applications they are authorized for. In this
way there is an assurance that privacy will not be compromised.
Impact on jobs is another area because if companies use cloud

computing, their need for IT resources reduces. However the need for IT
jobs will migrate to the back end of the cloud computing system and
there will be different kinds of jobs.
Cloud Computing is now a household term and we see these applications

everywhere including smartphone apps. We can conclude that cloud
computing is a huge success and projects also rely a lot on these
services for their success. Companies are investing heavily in cloud
project management applications because they are priced affordably and
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offer all kinds of services including customer relationship management,

tracking and many other project management features that help to
complete projects on time within schedule and on budget.
9.8.4 Difference between SaaS and Cloud Computing
People tend to use the two terms Saas and Cloud Computing
interchangeably. However they are not the same even though they are
related.
SaaS led to the development of cloud computing which is in essence a

larger platform. SaaS resides in the cloud. Cloud computing offers
additional services other than just SaaS, while SaaS is software delivered
to an end user from a cloud environment.
One of the key differences is that in the case of SaaS all the data resides
with the service provider and unless otherwise indicated the data can be
used in any way it sees fit. However the benefits of SaaS outweigh these
concerns of data ownership and security. For example, we use a free email
service that manages and stores all our data for us and we feel relatively
comfortable using the services even though we might want to know the
company's privacy policies.
With cloud computing the client has more control. Even if the servers are
not local, the customer manages the data and software and can take
backups and store data in the cloud. Data can also be transferred out of
the cloud environment to their own local repositories.
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!
Conclusion
SaaS is a type of cloud computing and is often better suited for smaller
companies that need inexpensive solutions. Cloud computing is preferred
by larger firms that require more control of sensitive data, have more
resources to deal with and can afford the higher cost.
Software as a Service (SaaS) has become a common and popular delivery

model for many business applications, including Project Management,
Project Management Information System (PMIS) and Project Portfolio
Management (PPM).
9.9 VIRTUAL TEAMS
A virtual team is a team where the primary method of interaction is

through electronic mediums like e-mail communications to video
conferencing. This consists of a group of individuals or team members who
work in geographically dispersed locations which could be in different
continents, cultures and time zones. Advanced information technologies
bring them together to accomplish tasks for the attainment of an objective.
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Some virtual teams do not have face-to-face interaction or they may

physically meet up occasionally or have regular meetings through
conference calls and video calls. They are able to work towards their
project goals and act as a single entity just by telecommuting.
9.9.1 Features of Virtual Teams
The evolution of internet and related technologies helped to enhance

communication across the globe and there are projects that do not require
the person to be present in physical sense. A good example is a web
development team where there is no physical delivery of goods but all
deliverables are done electronically.
Consulting companies have offices in different countries and team

members are located in different demography. If a team member with
specialized skill set is located in a different location, the project can still
benefit by having the resource work virtual. Some features associated with
virtual teams are:
It is cheaper to work virtual rather than have the resources travel to

project office regularly; these cost savings can be passed on to the client
which gives the project a low cost advantage.
Team members might work in different time zones to support the client
or customer during go-live or support role. They need not be physically
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present to address issues which can be resolved and monitored by

working remote.
With team members working virtual, the need for a larger office space is
minimized leading to cost savings on logistical side.
The project work may require high level of creativity, so the resources
might be able to focus better when they work from a place they are
comfortable with (home).
Virtual teams cannot be effective without the use of advanced technology

so it plays a vital role in forming virtual teams. Internet offers many
facilities for the virtual teams like E-mail, VoIP (Voice over IP) for
teleconferencing, Video conferencing, Google Docs for sharing and
storing documents, Microsoft Live Meeting and WebEx for training. The
virtual teams should be equipped with necessary hardware as well as
software to be able to function efficiently and effectively, for example a
laptop with inbuilt web camera.
Virtual teams are created due to different reasons and for varying
purposes. There are organizations that have most of their employees
operate virtually and can have them come to project sites as and when
required. At project, task teams are created for a specific assignment
and some resources with specialized skill set are in different locations so
here a part of the team is working virtual.
9.9.2 Advantages of Virtual Teams
Let's look at the advantages of operating as a virtual team.
Flexibility - Team members can work from anywhere and in some cases
they can set their own work schedule and work any time of the day as
long as they deliver results.
Availability of skills - Project gains from the pool of people with skills
and suitability to the job. Since location does not matter, they can hire
people from anywhere to deliver the work.
Cost saving - Project saves cost as they do not have to pay to bring
resources to a office, the resources also save money as they don't need
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to commute and there is saving on attire as well. Companies don't have

to maintain physical office and this saves cost on space, furniture,
infrastructure, etc. These savings can be used to compensate the
employees and the client benefits as well in case of time and expense
paid projects.
Increase in productivity - Since there is flexibility for the resources,

there is increase in productivity as they are able to work better without
rigidity.
Knowledge transfer - There is continuous knowledge transfer as

members keep team members updated on various aspects. Online tools,
document management systems, wireless technology, VOIP enables
prompt communication and resolutions.
9.9.3 Issues with Virtual Teams
Along with the above-mentioned advantages, following are few areas to be

aware of while using virtual teams:
Lack of self discipline - To be productive in virtual environment,

individuals need to have a lot of self-discipline and focus to deliver the
result.
Absence of team spirit - Team members rarely meet face-to-face or do

not meet at all, hence there is lack of teamwork spirit.
Communication issues - There is definitely better communication face-

to-face and body language also adds some advantage. Limitations in
virtual communication mediums, poor internet accessibility, varying time
zones can lead to some obstacles and incorrect interpretations by team
members. In global projects, failure to understand or interpret the accent
and lack of knowledge of cultural differences can lead to frustration
amongst team members which can translate into failure for a project.
Management Issues - Managing incompetent team members virtually

is very difficult and can lead to issues within the project and impact the
deliverables negatively.
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Preferences - Some people prefer to work from a physical office and
they are less productive in virtual environments.
Conclusion
We can see that virtual teams are on the rise due to the advantages and
technological offerings. Best resources can be recruited from across the
globe for ensuring project has the requisite skill set. Companies minimize
their operating costs and maximize the profit margins due to the remote
working pattern. On an average employees also tend to be happy and
productive while working in a flexible schedule from their home
environment. Hence projects should reap the benefits appropriately by
setting up virtual teams for the right project tasks whenever possible.

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9.10 SUMMARY
With a myriad of tools available in the market for project management,

there comes the difficulty of choosing the right one. It is more important
to select the one that helps the project to meet its objectives.
Some of the features to be considered while going in for systems and

tools are:
Budget which is the funding available to invest in the tool
Environment under which the project is functioning, its size, etc.
Customer Organization which is the client's business
Comfort and familiarity for team members with the tool
Existing systems and tools that can be used and are compatible with
new ones
Reporting features available
Integration with client's systems and software
There is also various project management software available which help

with project management. Some of the criteria that are to be evaluated
include:
- Adaptability
- Flexibility
- Cost
- Reporting
- Database
- Ease of Use
- Compatibility
- Support and Response
- Future Expansion
- Add on features
- Prior experiences
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With all the advancement such services are available online also which is
a fortunate thing in many ways.
However some criteria needs to be fulfilled to go for these services, these

online software must:
Handle Project Basics
Resource Management
Collaboration
Ease of Use
Integration
Security
Document Management
Communication methods used by the project team to share plans and

results of project activities are called as Project Management Information
System (PMIS).
It is the entire process of assimilating and using project information in

electronic means to meet project goals.
However issues like self discipline, communication barriers and lack of

team spirit will have to be addressed properly to ensure virtual teams are
productive and enhance project management.
Features of PMIS are - communication, centralized, web based,

collaboration, integration and performance evaluation. It can be in the
form of:
Project management software file available in a shared location
Spreadsheet file(s) available in a shared location
Physical Meeting room or Virtual Meeting space
PMIS is not without challenges and care must be taken to ensure that the
use is regulated and teams are in sync for its usage.
There are some pitfalls or problems as well faced with software tools like
declining user base, discontinuance of technical support, country specific
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issues, etc. It is better to be aware of these while going in for any

software and take decision after due consideration.
Software as a Service (SaaS) provides remote access via Web based

service to organizations to access their business systems. Software is
remotely hosted by the provider and companies can access it after
payment of a fee. It eliminates the need to invest heavily in hardware
and provides access to employees over the internet.
Cloud Computing is when machines are owned remotely by another

company who runs all the programs. Users will access via web browser
and interface with the system software, for example Gmail, Yahoo! Mail
or Hotmail. User does not need to install all the hardware and software.
With cloud computing architecture the user sees the front end and all
back end work is done in the cloud. Internet is the network used to
connect the front end to the back end.
The advantages of cloud are many like accessibility from anywhere and
employees can work from anywhere leading to increase in productivity.
It leads to cost savings due to minimum investment from client side on

hardware and less storage requirements.
Of course, there are concerns of security, data privacy and these things
can be tackled with authentication and authorisations
SaaS is typically accessed by users using a thin client via a web browser
and it resides in the cloud. Saas led to the development of cloud
computing which is much larger and offers additional services. Cloud
computing is preferred by bigger companies whereas Saas is suitable for
smaller concerns.
Virtual Teams are members of a project or group who are mostly working
remotely; they could be spread out geographically and may meet face to
face once in a while. Telecommuting enables them to have conference
calls and connect with each other.
It offers the advantage of sourcing specialized skill set from anywhere in

the globe, reduced travel cost and office space.
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1. What are some of the features to be considered while selecting systems

and tools for projects?
2. List out some criteria used to choose online project management

services.
3. Identify some key features of PMIS.
4. How is SaaS different from Cloud Computing?
5. What are the advantages and issues of Virtual Teams?
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REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !257
PROJECT RISKS, SUCCESS FACTORS AND FAILURES
Chapter 10
PROJECT RISKS, SUCCESS FACTORS
AND FAILURES
Learning Objectives
Types of Project Risks

Characteristics of Risks
Project Risk Management
Effective Risk Management
Success Factors in Projects
Project Management Success Causes
Key Factors and Less Measured Keys to Success
Failures at Projects
Health Check at Projects
Structure
10.1 Introduction
10.2 Types of Project Risks
10.3 Project Risk Management
10.4 Success Factors
10.6 Project Failures
10.7 Project Health check
10.8 Summary
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10.1 INTRODUCTION
Risk is a factor that may potentially interfere with the success of the
project. It is an uncertain event that, if it occurs, has a positive or negative
effect on the prediction of accomplishment of project objectives and goals.
Any good project has a number of risks, after all the character of business
is taking risks and dealing with uncertainty. There are some constraints in
projects along with uncertainty, so risk is a combination of constraint and
uncertainty. Risk in the project can be minimized either by eliminating and
minimizing constraints or by identifying and reducing uncertainty.
There is almost no project that is risk free. Achievement of big

organizations and projects cannot be done by hiding, only if they are able
to face the risks and manage it better can they achieve their feat.
Risk management is about maximizing chances of project success by

identifying risks as early as possible and managing them well.
Projects have both expected and unexpected risks, they can be internal to
the organization or involve external factors that can hinder the success of
the project and lead to loss or embarrassment to the organization and
parties involved with the project. Risks can be quantitative or qualitative
for a project and can be defined at any time during the project life cycle.
Risk assessment is undertaken where the project manager identifies the
potential risks and the strategies to minimize the risk impact.
10.1.1 Characteristics of Risks
Every project and organization has different types of risks based on the
nature of the business, kind of product or service that the project is to
deliver and also depends on the management skill of the project team and
use of various tools and techniques. Some of the common characteristics of
risks are:
Uncertain event: something may or may not happen
Probability: the likelihood that the risk will occur
Impact: the degree to which the risk affects the project
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Exposure: the magnitude of the risk.
Effect: project risk can be positive (a new market segment might open
due to some external factors) or negative (cost escalation, environmental
factors)
Risk Category: depends on types of risks
Precision: matrix showing the probability and risk severity
Defining a risk, understanding its probability, impact and exposure enables

the project and organization to prepare a strategy to implement, minimize
and overcome if the risk occurs.
10.2 TYPES OF PROJECT RISKS
There are various types of risks that a project comes across. Complex
projects always see a variety of risks. The Project Manager has
responsibility to manage these risks and prevent them from disrupting the
project. The major risks involved in a typical project are:
1. Risk in Project Scope

There is a risk of error or omission in scope definition where some activities
might be missing from project scope. Further the project grows in
complexity as clients requirements increase and uncontrolled changes take
place leading to scope changes. Inaccurate consideration of dependencies
and incorrect estimates impact the schedule and costs of the project.
2. Resource Risk
A big project might have hundreds of employees and there could be
various personnel related issues. It is essential to manage the attrition
issues and leaving of key personnel since resource turnover leads to delays
and cost overrun. Inability to secure adequate resources for the project can
slow down the project. Inexperienced candidates or members who are new
to the industry or profession tend to make more mistakes and productivity
is affected which can significantly slow down the project progress.
There is a skill related risk too when the project team needs new skills or
there is non- availability of training for specialized skills, the learning curve
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leads to delays and cost overrun. Resources may not be fully productive in
a new skill and perform below expectations.
3. Team Attitudes
Team members with negative attitudes towards the project may actively or
passively sabotage project efforts. Long running projects face the risk of
low team motivation.
4. Technology Risk
There is a risk of delay arising out of defects in software & hardware or the
failure of a service provider or platform implemented no longer supports
some of the enterprise's functions. Technology components may be of
different quality and may not be scaled to meet performance demands.
Components might lack standard interface or may not be compliant with
best practices. Sometime technology lacks stability, may not be extendable
to new capabilities or may be difficult to maintain due to complexity and
these can become a risky situation for the enterprise and project team.
Similarly a technological invention will turn the current system into an
obsolete one.
5. Security vulnerabilities
These are another type of key risk. Some security incident like leakage of
critical information during the project can be damper on project
advancement.
6. Scheduling Risk
Due to numerous reasons the project might not proceed as per schedule.
Unexpected delays can happen due to natural factors, estimation errors,
delays in supplies from vendors or government sanctions. Use of systems
and tools like Work Breakdown Structure (WBS), Gantt charts help in
better scheduling and taking care of delays.
7. Lack of Management Support

Top management support is fundamental to the success of the project.
When the project team does not get the full support, the project fails as
the project team may lack the authority to achieve project objectives.
Conflict and disagreements between executive stakeholders disrupts
project. Management ignores project communications and meetings which
lead to issues in the project. Stakeholders fail to support project when they
have disagreements and build up a negative attitude towards the project.
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8. Change Management
A formal Change management is critical to project success which ensures
the personnel from the organization and project have visibility into changes
that impact the project. Lack of a proper change management system
might lead to complexity of the project and give way to stakeholder
conflicts. A large number of change requests might lead to perception of
project failure and lead to neglect of its original targets.
9. Communication
Misinterpretation of requirements by the project team creates a gap
between expectations, requirements and output. Communication is a
challenge whereby there has to be adequate and appropriate
communication and the same idea is explained many times in proper way
to different sets of people.
10.User related
Users have inaccurate expectations of the project results and may not
understand the product that's coming their way. If they are not informed
but impacted, the users might throw up project roadblocks.
11.Project Management
Lack of project management and dearth of effective project managers
leads to project failure. Lack of accountability can bring a project to a
complete halt. Learning to direct teams toward a common goal is an
important aspect of project management training. Project managers can
master best strategies through training programs and use of appropriate
systems and tools in project management.
12.Organization Culture
If the project fails to match the organization's culture there will an issue.
There could be significant organization changes like mergers & acquisitions
that need to be considered during project planning and implementation.
13.Architecture
If the architecture fails to pass governance processes and lacks flexibility, it
is incapable of supporting change requests and needs to be reworked. At
times architecture is infeasible because it might be very costly or does not
meet the requirements.
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14.Design
Infeasible or poor design does not support the requirements and makes
change requests difficult and costly. Review of the design by experts will
minimize the chances of faulty design.
15.Cost Management
If estimates and forecasts for costs and budgets are inaccurate the
enterprise is at risk of facing increase in actual spending. When costs are
incurred in foreign currencies, exchange rate variations can have a major
impact on imports and exports as well as salary and payments for staff
that travel internationally.
16.Integration
Failure to integrate with business processes is a risk that the product will
fail to integrate with the existing systems which means the project can
become a waste. When the project is focused on delivering something
specific and fails to look at the organization as a whole there is a big risk
that the project fails to integrate with the organization. Using appropriate
tools to ensure that all departments are involved with the project can help
to minimize the risk.
17.Requirements fail to align with strategy

If project requirements conflict with the business's strategy and fail to align
with the business needs, it can be listed as a risk. Sometimes requirements
are ambiguous and incomplete which can hinder the project work.
18.Vendor Relationships
Conflict with vendors lead to project issues and there is a risk of a late
start and delay for the project. At times vendor fails to meet specific
requirements, supplies low quality materials or even consulting services by
Contractors could be unfit which can be an item of risk.
19.Approvals & Red Tape

Delays to stakeholder approvals and financial approvals impact the project
as funding is on hold and deadlines are not met. If organizations have
specific and detailed processes to be followed, it can be time consuming
and there is the risk of missing deadlines.
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20.Regulations
Legal & regulatory changes that are to be complied must be considered
during project life cycle.
21.Acts of nature
Force Majeure like floods, earthquake and storms impact project if either
the organization or any project related parties are affected by these forces
of nature.
22.Commercial Risks
Changes like a market crash at national or international level can impact
business. There can also be demand risk for the new product, quality
issues harm customers and affects brand image and reputation. Users
might also reject the new system and software and want to go back to the
original legacy system. Using appropriate systems, communications and
techniques to prevent these risks is very important to project success.
10.3 PROJECT RISK MANAGEMENT
Any organization implementing project is subject to risks. Risk

Management is the process of systematically managing the risk exposure
by using systems and tools to analyze, identify, measure, classify and
manage risk to achieve objectives. The intent is to provide an efficient and
effective plan that minimizes the adverse impact of risk on the project's
success as well as on the business's earnings.
Risk management is an important facet of project management. Project

Risk management is the identification, prioritization and assessment of
risks followed by coordinated and systematic use of resources to minimize
and control the impact of uncertain events to make the most of realization
of opportunities available.
The advantages of risk management in projects are vast. It is better to

deal with uncertain project events in a proactive manner to minimize the
impact of project threats and grab the opportunities. This enables to
deliver projects on schedule within budget and give expected quality
results. Team Members and Clients are happier as there is no "fire fighting"
scenario and last minute hassles to address the situations arising due to
risks.
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10.3.1 Effective Risk Management
Risk Management includes risk assessment and risk control. Risk

Assessment consists of identifying the risks, prioritizing and analyzing the
risks. Risk Control involves mitigation, planning for emergencies and
controlling the risks. The below diagram shows some guidelines for
effective risk management and the same are described in detail as well to
enable successful project management.
Identify Risks
Communicate Risks
Risk Log
Risk Management Embedded
(Threats and Opportunities)
Prioritise Risks
Response to Risk
Analyze Risks
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1. Embed Risk management

Since Risk management is critical to the success of project risk
management, to reap the benefits it has to be embedded in the project.
Some projects are either ignorant of risks or very confident that no risks
will occur in their project. A good professional project management team
makes risk management part of their day to day operations and ensures
the team and all personnel are aware of it.
2. Identify Risks
The process of risk identification is to be conducted throughout the project
lifecycle to identify potential project risks. The severity of risks is based on
its threat to the project's success and impact to the schedule, cost, result,
productivity and quality. Risks can be known or unknown. Known risk can
be identified and analyzed like lack of resources. Examples of unknown risk
are natural disasters, unexpected regulatory changes which can be
managed proactively by keeping contingency plans. By using different
identification methods it will be possible to spot some unexpected risks
that can occur.
3. Risk Communication
It is a good idea to include risk communication regularly in the team
meeting and make project risks part of the default agenda. This can send
out a message that project manager is keen to manage risks and gives
team members a forum to discuss them and communicate new ones. It is
important to ensure that major risks are brought to the notice of client or
project sponsor and decisions are made by them and implemented by the
project manager accordingly.
4. Prioritize Risks
Some risks have a higher impact than others. Hence it is important to
spend time on the risks that can cause the biggest losses and gains.
Showstoppers can derail the project and are top priority. All the risks are to
be prioritized objectively based on a set of criteria. Project teams can
consider the consequence of a risk and the probability of its occurrence to
focus on the big risks.
5. Analyze risks
Analysis of Risk occurs at different levels to understand the nature and
extent of the risk. It is significant to think about the causes that give rise
to these risks and effects of the risks immediately after its occurrence and
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long term impact as well. A detailed analysis brings up the magnitude of

effect in categories like costs, time or quality. It is also good to focus on
the events preceding a risk occurrence and identify the causes and the
circumstances that decrease or increase the likelihood of its repeat
incidence.
6. Plan and implement response

Executing and implementing a risk response adds value to your project as
it prevents a threat from occurring or minimizes negative effects. Having a
sound risk response plan that focuses on the big wins goes a long way in
avoiding risk or minimizing the risk that occurs. With adequate strategic
planning a risk is prevented by influencing the causes or decreasing the
negative effects.
7. Maintaining a risk log

This enables to view progress and make sure that risks are not forgotten.
It also serves as a communication tool to inform team members and
stakeholders about the cause, effect, plan and actions. Maintaining a
record of project risks and the effective responses implemented is one of
the features of a good project management.
8. Threats and Opportunities

There are both positive and negative risks on a project. Positive risks are
opportunities and uncertain events that are beneficial to the project and
enterprise. Hence it is important to consider and deal well with
opportunities that present a pay-off to the project as well as take care of
threats.
These rules and guidelines are useful on how to implement risk

management successfully in the project.
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10.3.2 Tools and Techniques for Risk Management
There are tools and techniques (some advanced) to assist with risk
identification which can be used depending on the project and the types of
potential risks. Some of these techniques are:
- Delphi Technique
- Root Cause Analysis
- SWOT Analysis
- Cause and Effect Diagramming
- Influence Diagramming
- Flow Charting
- Brainstorming
- Interviewing
10.4 SUCCESS FACTORS
!
The classic definition of a successful project is when it achieves all of the
agreed "project objectives". Perhaps because schedule, budget and
performance are the most visible dimensions these are used to assess wins
for the project.
Various studies have indicated that the stage of the project and life cycle of
the end item must be factored into project success criteria. In many cases
the success of the project is determined once a project is over and the
product produced by the project has time to be used because it is to be
seen if the end item addressed client needs or customer requirements. In
such situations the assessment of the project's impact on the profitability
of the business or increase in customer base can be measured after a year
or so of the project implementation.
The best criterion for project success is the satisfaction of both sides which
is the project manager with the team and the client or end user. If all their
expectations were met and exceeded the project is definitely a success.
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10.4.1 Definition of Project Success
It might look like defining success of a project is relatively simply, but in

practice different people define success in different ways based on their
perspective. Let's look at some definitions that help to determine
successful projects:
- if it delivers everything as per the scope definition regardless of schedule

or budget performance
- if it delivers as promised on schedule and within the agreed budget
- if it delivers as promised on schedule within the agreed budget and

meets expected quality standards
- if it delivers on all agreed project objectives (including scope, schedule,

budget, quality and results)
- if the project deliverable creates significant value addition for the

organization after completion.
Below is a pyramid representation of success for a project, the 3 layers

from the bottom represent success due to sound project management and
the top 2 layers represent success which happens over a period of time,
especially the incremental value to the business over a period of time.
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Due to differing outlooks a project's relative degree of success or failure

may change over time depending on when the benefit is realized and
accounted at large. Also the success of the project can mean differently for
different people depending on their level of participation in the project.
10.5 PROJECT MANAGEMENT SUCCESS CAUSES
Many success factors in project lifecycle have proved to be key contributors

to its victory. This includes items that may seem obvious, such as buy in
and support of top management, clearly defined scope, requirements
gathering, solid testing, good communication, and having the right
resources with commitment and involvement by key staff members.
However there are some less obvious factors also which are not evident
until the situation arises like hand holding post go live, clear definition of
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roles and responsibilities, etc. When projects ignore the key factors it is
likely to result in:
delays in meeting project schedule dates

different expectations on project deliverables
pending issues resolution
confusion on requirements
lack of clarity on status of the project
lack of buy-in from stakeholders and the end users
stressed environment at project, client and related parties
reduced satisfaction from the client on the final deliverable.
10.5.1 Key Factors for Success
Various tools and strategies exist for managing a project. The following
factors will ensure high level of success for the project at all phases from
initiation to completion.
1. Involvement by Key Staff and Resources

The organizational structure of the project is a major indication of the
success of a project and is of prime importance to start the project. It is a
must to identify the Project Sponsor to authorize and fund the project.
Project Team is to be formed and groups identified to perform the project
work at various phases. An experienced and committed Project Manager is
responsible for ensuring that work is on track and manages the project and
team.
2. Staffing the Project Team

The project team must ensure to include individuals who understand the
business and have a representative from each segment of the business to
identify processes and business needs. Some projects have a superuser to
serve as business experts and perform testing, train the users and serve as
first line support for end users.
3. Formal Project Plan

A formal Project Management Plan should be agreed and documented to
manage the project. Documentation for schedules, change management
and communication methods should be considered. This can be utilized to
guide project management of various areas and as a reference for agreed
terms and conditions if deviation occurs.
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4. Well Defined Project Scope

A formal approved Project Scope is to be ready before the project
execution begins. Well documented deliverables, assumptions,
expectations, milestones are key to have clarity on project. Further clear
understanding of the project scope by all project team members is critical
to accomplishment of project plan.
5. Solid Contract
It is always best to have agreements in writing rather than a verbal
agreement. This applies to contracts with vendors, project documentation,
payments, performance criteria, penalties, handling delays, documentation,
test system, training system, escalation policy and support during and
after go live. Defining these items contractually in writing will provide the
leverage to hold the right people accountable to their deliverables.
6. Project Schedule
Schedule is the essential tool to manage project's activities and keeping on
track. Documenting the tasks, with names and due dates to each task can
be a sound tracking mechanism and enables to report milestones. Items
that risk a delay should be completed as soon as possible and items on the
critical path should be monitored to ensure there is no holdup.
7. Issues Log
A central repository to log issues is invaluable. Sharing the issues list with
entire project team, tracking it actively and updating it with resolutions and
new items will be a useful tool for issue management. Issues should be
expressed clearly with assignment of name of person for resolution, due
date, status and priority.
8. Solid Testing
Testing is critical to understand how the final software or application or new
asset will work in the production environment. Testing is also carried out to
identify issues, to confirm if it performs as expected to identify problems
and provide an error free solution prior to the live event. Documenting the
type of testing (database, unit testing, integration testing, front end
testing, etc.), having detailed Test Scripts with all standard and non
standard scenarios and involvement of end users with testing and
validating the results will ensure product or service is accepted by client or
end user.
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9. Training Program
Identify all users to provide proper training so that they are prepared to
use the final deliverable, provide practice scenarios with user manuals and
tips to facilitate training programs.
10.Readiness Checklist
A review of all deliverables and tasks is to be done to prepare for the go
live date. Issues should be scrutinized so that decisions can be made
regarding their potential impact to the production environment. Provision
of support team and helpdesk ensures that issues can be tracked,
addressed or escalated as required.
11.Change Management
The objective of change management is not to prevent change, but rather
to manage change so that there is a clear understanding of the purpose of
the project, benefits, impact and justification of the funding of the project.
It is critical to manage change to have a better predictable project delivery.
Decisions about changes are to be transparent and are based on detailed
study whether it is a viable investment. All project team members, Project
Sponsor and key stakeholders must be involved in change process. Change
Management should be part of Project Plan so that it can be tracked and
controlled. A formal change control enables to determine the amount of
work and its affect on the project's cost and timeline and the project is able
to make informed judgments.
12.Communication
Communication Management is vital to a successful project. Ensure to keep
all teams informed including stakeholders, project teams, end users and
third parties. Team meetings should occur regularly as planned which is an
effective way to get everyone on the same page and provide a forum to
share information with all team members to assure everyone is in line with
what is expected. Status Reports should be completed and shared with all
concerned individuals. Users must be educated of the development of the
project because the more they are involved with the project, the more they
will accept the change. Communication is crucial to the success of a project
as it allows for establishing expectations and keeping everyone informed.
Most of these success strategies will be valuable to any project whether it

be application related or product related.
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10.5.2 Less measured Keys to Success
Indeed the key factors are critical to the success of a project but there are
some less obvious but no less important keys as well to a project
management win. This means factors that tend to get overlooked or that
get short shrift when the going gets tough on a project like some of the
below listed factors.
1. Clearly Defined Success

Project success must be expressed in terms that are meaningful to the
organization. Even if the project is completed on schedule within budget
and addresses all requirements, it may be a viewed as a failure if it cannot
deliver the expected business value. Hence the project team must quantify
success where possible or discuss the significance of project result to the
business.
2. Project Governance
Good project governance assures the people who are involved with the
project understand what they need to do. When project governance is
lacking there is inconsistent project execution which raises the risk of
failure.
3. Well Defined Roles and Responsibilities

Roles and responsibilities need to be charted and documented to ensure
people involved in the project know what they are supposed to contribute.
Projects can fail if the members do not understand their role and hence do
not perform or there is overlap.
4. Tough decisions
Peter Drucker, the management guru, quotes "Making good decisions is a
crucial skill at every level" and another one is "Whenever you see a
successful business, someone once made a courageous decision.
Every decision has a consequence so there really is no way to know which

the best decision is. At times it is important for the project manager to
make tough decisions about priorities and resources for projects rather
than just please everyone. It is important to do the right thing even if it is
uncomfortable to many folks
! !274
5. Risk Management
Risk management is critical and should be incorporated in every phase as it
permits the project team to control the risks that might threaten a project.
6. Quality Assurance Process

Quality assurance is a systematic process of checking to detect, correct
and ensure that a product or service being developed is meeting specified
requirements. It helps to eliminate defects and increase customer
satisfaction. Getting early feedback from clients and users is one of the
most effective ways to reduce the risk that a project doesn't meet end-
users' needs and thereby prevent failure.
7. Effective Documentation
Documentation is to be adequate and relevant, it is a form of
communication to help improve the visibility of a project's status to
respond better. Proper documentation ensures project teams capture the
right functional and technical requirements for a project.
8. End-User Training and Support

Quite often systems implementations fail because end-users haven't been
trained well to adopt the new system. Hence user training and adequate
hand holding post go live is critical which should not be ignored.
None of the success factors are exhaustive and it finally depends on the
expectations of the project and satisfaction of the client and end users.
! !275
10.6 PROJECT FAILURES
Definition of Project Failure
A project is considered a failure when it does not deliver what was required
in line with expectations. A successful project delivers on time in budget
within schedule and meets benefits as expected.
Results that are undesirable for those involved with the system like top
management, end users or clients indicate project is unsuccessful. A failed
project does not address the expectations or the situation is worse off than
before.
Failure does not happen in isolation, there are features or defects in the
system that allowed the failure to take place. It might seem like the
requirements for success are clear and absolute, however it's not that
simple. If key stakeholders agreed that the project had to exceed its
budget and schedule, the project may still be considered a success if it
finally provides value to the key members. Likewise, even if a project met
everything as per the detailed project plan, it might be considered a failure
if it didn't include fundamental elements to the satisfaction of the key
stakeholders. Project success and failure isn't just about the facts or about
what was delivered - it's also, critically, about how the project and final
result is perceived.
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Below are some of the factors and cause of projects failure:
10.6.1 Reasons for Project Failure
1. Undefined business goals

If the project is does not have the business goals for the purpose of project
implementation it will affect the functioning of the project and will be
meaningless. Rather than vague business objectives or assumptions, it is
of the essence to identify the exact objective of the project so that all
resources can be utilized effectively and efficiently towards fulfilling the
objective.
2. Impossible Business case

Having an impossible task makes it hard on project management to get
project satisfaction from any angle. With an approved unviable mission, its
delivery is the responsibility of the project manager and if the project
doesn't deliver what the organization really needs, this will negatively
affect its perception. Review of business case by the project manager helps
to validate, identify and clarify expectations leading to better successes.
3. Wrong requirements
If the business requirements are not obtained rightly, however well the
project is delivered, the client will be dissatisfied. It sounds harsh but this
is why it's important to conduct a thorough business requirements analysis.
The project manager and team should look at the project requirements in
detail and use expertise and judgment to ensure these are deliverable.
Making certain that all required resources are available like manpower,
hardware, software, budget, time and being realistic will help to prevent a
project from getting into trouble.
4. Governance
Lack of a project sponsor or absence of effective project governance lead
to costly delays and several obstructions in the deliverable. Hence Project
Sponsor who is key and committed to making the change happen through
the project is vital to ensure the project's success. Governance bodies like
steering group provide direction, regulation, and critical appraisal of the
project's progress. Governance groups can look at the project from a
different perspective. Good project governance is concerned with ensuring
that the project has processes, competent people, robust systems and a
progressive culture for facilitating the project execution and completion.
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5. Poor Implementation Skills

The project manager has a heavy responsibility and inadequately-trained
project managers may not be able to control the project and find delivering
change can be complex and hard. Poorly-trained managers assigned to
complex projects are a recipe for failure. Therefore, other than being
competent the PM must have good implementation skills and various tools
can be used to manage scope, issues, risks, team and schedule.
6. Environmental changes
If the business's needs change due to external factors then the business
case can become outdated before the project is completed. This leads to
review of original requirements and goals partway through the project to
make a decision on how to proceed leading to scope changes or in the
extreme situation cancelation of the project.
If the environment is subject to changes then the risk of project failure can
be minimized by making timely decisions, appropriate communication,
considering smaller pieces of projects and managing expectations by the
involvement of key project stakeholders in critical decisions.
7. Team issues
Lack of clearly defined roles and responsibilities results in confusion.
Failures to provide team with appropriate training, insufficient team
members, team weaknesses, dearth of Subject Matter Expertise are some
causes of project failure. Project Manager's irresponsibility to address poor
team dynamics leads to a low performing and under motivated team.
8. Risk management
Failure to proactively address potential problems is a classic reason for
failures on a project. Risk management is to be incorporated as an integral
part of the planning process and be embedded in every phase of the
project to overcome issues.
9. Information management
Failure to maintain documentation or versions control results in
misunderstanding over the current and compatible data which gives rise to
other issues that disrupt progress. Use of adept tools to organize and
manage information helps in better control of key information which is
essential to solid project management.
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10.Poor leadership at any level

The "leader" is typically the project manager, however the management
team from business side also has great responsibility of making sure the
project is a success. All key personnel have to work together to ensure that
the company's exact requirements are understood. It is important to
assign management roles only to those individuals who have the
capabilities to take on and perform.
11.Inaccurate cost and schedule estimation

If the cost of an undertaking is grossly underestimated, the project
exceeds budget and runs out of resources leading to project idling and
missing schedules. This can be mitigated by using requisite tools to plan
and estimate the cost / resources taking into consideration contingency
and other factors.
12.Lack of communication
Communication between project manager, various teams, the
management, stakeholders, end users and external parties is always
important. There has to be an open environment where everyone feels free
to come forward to express their concern and give suggestions. Holding
regular meetings with concerned parties, broadcasting information are
some steps to manage communication effectively.
13.Disregard project warning signs

Most importantly when a project is on the verge of failing, there will be
some warning signs and these should not be disregarded. Taking action
immediately at the right time can save the project and prevent the whole
endeavor from draining.
14.Some more causes of project failure are:
- Stakeholder conflict and politics internal to the organization

- Inadequate testing processes and lack of user input
- Competing priorities leading to lack of management commitment
- Lack of prioritization and project portfolio management
- Bad decisions with unrealistic timeframes and tasks
- Insufficient resources (funding and personnel)
- Lack of a solid project plan and change control process
- Lack of focus on the project's benefits
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For a project to be successful, it's not enough simply to manage the project
competently, and deliver a good quality product. To avoid failure, it is
important to identify the right business requirements, put strong project
governance into place, and have a well managed high-quality
implementation focused on goals and benefits. Managing the expectations
of stakeholders, end users, management and team members is essential
for their support. Finally it is the end users, stakeholders and management
who will decide on the success of the project.
Different perspectives on the success of a project are also the factors for
conflicts on projects. The differing perceptions dictate project success or
failure.
10.7 PROJECT HEALTH CHECK
Projects need not always go as planned. There could be a struggle to

deliver the benefits or a missed deadline or escalating cost or exit of key
resources which threatens the project's business case. At times these
challenges become unmanageable for the project and complicate its
execution.
A Project Audit provides an opportunity to uncover the issues, concerns

and challenges faced during the project execution. It is commonly referred
to as a "Project Health Check" which enables the project manager, project
sponsor and project team to get a provisional view of things that were
successful and things that need to be improved for successful completion
of project. If Project audits are done at the close of a project, in future it
can be referred to for development of "success criteria" for projects by
! !280
providing some insight into challenges and also into areas that were
managed well. With this kind of detail, organizations can identify future
course of action so that mistakes are not repeated on upcoming projects.
10.7.1 Purpose of Project Health check
Project Health checks cost time and money, so it is best to invest in them
only when they are needed. If the project is under pressure for deliverables
and meeting deadlines the health check can help to:
- Get a complete picture of the project's progress
- Validate how different stakeholders view its success
- Understand in depth all the areas that are crucial to the successful
delivery of the project
- Identify the areas where focus is most needed according to business

priorities
- How exposure to risk is being managed
- Whether good project practice and governance is being maintained
- Review of feedback from project team members and client key personnel
- Implement corrective action to get things back on track
- Develop a practical and detailed action plan by revising the current

project plan
- Make an informed and improved decision on how to proceed with the

project
- Increased collaboration across functional and business boundaries
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Project health checks and audits include:
A complete review of project documents including the business

requirements, project scope, project plan, risk assessment, change
requests, other communication, etc.
Meeting all members of the project team, individually and as a team as

well as meeting with the sponsor, end users, stakeholders, management,
vendors, and other parties who are directly influenced by the project.
Review of all processes, tools and documentation implemented on

projects.
There are various tools and techniques to help project teams assess the
'health' of their project. They are designed to help determine the
effectiveness of current project governance and highlight areas of the
project management process that need focus. An attitude of openness and
cooperation is indispensable to achieve an effective and valuable health
check report.
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10.8 SUMMARY
Risks can potentially interfere with the project success. Almost all
businesses deal with risks and uncertainty hence projects too have a
number of risks that interfere with their functioning and success.
Risk management involves identifying risks as early as possible and

managing them well to maximize chances of project success. Risks at
projects can be expected, unexpected, internal, external, quantitative or
qualitative leading to loss to the organization and involved parties.
Risks are characterized by uncertainty and probability. Risk has an

impact and effect which depends on the magnitude and type of risk.
Project comes across various types of risks especially complex projects.

Some of the major risks in a typical project are related to risk of error or
omission in scope definition, resource related issues, teams with negative
attitudes, technological defects in hardware or software, security
vulnerabilities, delays in scheduling, lack of management support and
inadequate change management.
Challenges in communication and project management skills, inaccurate

expectations of users, mismatch in organization culture and architecture
or designs of the product are also some risks within a project.
Inaccurate estimates, failure to integrate and align with strategy,

conflicts with vendor or stakeholders and various regulatory, red tape
and commercial risks are also faced by the projects.
Risk management is an important part of project management where the

Project Manager has responsibility to manage the risks and prevent them
from disrupting the project. Defining a risk, understanding its probability,
impact and exposure enables the project and organization to prepare a
strategy to implement, minimize and overcome if the risk occurs.
Risk Management includes risk assessment and risk control. Various

guidelines for effective risk management like embedding it in project and
identifying risks permit successful project management. Regular
communication about project risks, prioritizing and analyzing them as
well as having log of risks can help to plan and implement response.
! !283
Threats and Opportunities can be both positive and negative on a project
where positive risks are beneficial to enterprise and negative risks are
threats that should be taken care of.
Tools and techniques can be used to aid with risk identification depending
on the project and the types of potential risks.
A project is successful when it achieves all of the agreed "project

objectives. Visible dimensions are schedule, budget and performance of
the project.
In many cases the success of the project is determined after the project
result has been used by the customer.
Different people define success in different ways based on their

perspective, ultimately satisfaction of project manager and the business
is the best criterion for declaring project success.
Many success factors in project lifecycle are key to its victory. This
includes items that may seem obvious or less obvious ones which are not
evident until the situation arises.
Some of the key factors for success of project are active involvement by
resources, having the desired project team with a formal Project Plan and
well defined project scope and schedule. Agreements and contracts must
be in writing, ensuring adequate testing, training and maintaining issues
log prevent breakdown of the project. Effective change management and
communication must be implemented and a readiness checklist before go
live will be valuable to the win of the project.
There are some less measured keys to success which must not be
ignored like having a clearly defined success and project governance with
well described roles and responsibilities. Project Manager may have to
make tough decisions which are right depending on priorities and
resources. Risk management is critical and so is quality assurance
process as well as effective documentation to improve the visibility. End
user training and support is important to enable them to adopt the new
system. The success factors are not exhaustive and it depends on the
expectations of the project and satisfaction of the client and end users.
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A failed project does not deliver what was required in line with
expectations or the situation is worse off than before.
Some of the reasons for project failure are undefined business goals,
impossible business case and wrong requirements.
Lack of a project sponsor or effective project governance lead to costly

delays and several obstructions in the deliverable. Poor implementation
skills of the PM, poor leadership and team issues result in confusion and
failure to provide solutions. Failure to respond proactively to
environmental changes and risks, inaccurate estimation as well as lack of
documentation and communication results in misunderstanding and other
issues that disrupt progress.
When a project is on the brink of failure, there will be some warning

signs which should not be overlooked. Taking immediate action on timely
basis can save the project and prevent the whole venture from
malfunction.
Use of systems and tools help to organize and manage information and
address factors leading to failure.
Project Health Check or Project Audit enables the project manager,

project sponsor and project team to get insight into things that were
successful and things that need to be improved for successful completion
of project.
Tools and techniques are designed to help determine the effectiveness of

project management processes, asses the 'health' of the project and
highlight areas of the project management process that need focus.
! !285
1. Identify some characteristics of project risks and briefly explain at least

ten types of project risks.
2. What factors enable successful project risk management?
3. Define project success and identify key factors obvious for project
success.
4. List and explain 5 factors that are considered less measured keys to
project success.
5. Define project failure and identify ten factors leading to breakdown of

projects.
6. What is the purpose of project health check?
! !286
REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
! !287

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Using System and Tools in

Program Design and Advisory Team

Prof. B.N. Chatterjee Mr. Manish Pitke

Prof. Kanu Doshi Prof. B.N. Chatterjee

Prof. Dr. V.H. Iyer Mr. Smitesh Bhosale

Prof. B.N. Chatterjee Prof. Vineel Bhurke

Prof. Venkat lyer Dr. Pravin Kumar Agrawal

Prof. Dr. Pradeep Pendse Mrs. Margaret Vas

Prof. Sandeep Kelkar Mr. Anuj Pandey

Prof. Dr. Swapna Pradhan Course Editor

Prof. Bijoy B. Bhattacharyya Prof. B.N. Chatterjee

Mr. P.M. Bendre Course Coordinators

Mr. Arun Gokhlay Ms. Kirti Sampat

Mr. A.S. Pillai Mr. Kishor Tamhankar

COPYRIGHT by Prin. L.N. Welingkar Institute of Management Development & Research.

Chapter No. Chapter Name Page No.

1 Project Management Process 4-30

The objectives of this chapter are to give an insight into:

Introduction to Project Management

Project management process is the process of managing the activities to

Project Management is the process of achieving these project objectives

A project is a temporary endeavor designed to produce a unique product,

The primary challenge of project management is to meet the project goals

Project management process entails leading a team of skilled and capable

A project is defined as a planned set of interconnected and unified tasks

As per PMI, project is a temporary group activity designed to produce a

The development of software for an improved business process, the

It is prudent to list down assumptions about the project, evaluate and

Some of the development projects require a different approach and a new

1.2.1 Characteristics of a project include:

Objective: Each project is initiated with an objective in mind. Projects are

Schedule: There is a point in time in which the projects must be

Resources: Other than cost, projects involve resources in terms of labor,

Organizational Structure: All projects are for meeting organization

Planned approach: Projects follow an organized and planned approach.

Defined outcome and deliverables: Projects are begun to meet

Budgets: Approval of budget is required to begin the project. These

Communication Systems: In order to maintain transparency and control

1.3 PROJECT MANAGEMENT

Project management is the art of bringing together the tasks, resources

In the past organizations who had to accomplish a project typically

As per PMI, Project management is the application of knowledge, skills and

PMI (Project Management Institute) is the world's largest not-for-profit

Use of project management technologies tends to minimize distractions to

1.4 PROJECT MANAGEMENT PHASES

The project management process is a planned effort and can be

1.4.1 Project initiation phase:

baseline document to assist with scope changes. It provides a preliminary

Key Features of Project Initiation Phase:

Understand the Customer: It is essential to get an understanding of

Establish rapport with customer: Expectations of the customer are

Develop solutions: Project Manager develops solution with the help of

Formation of Core Project Team: Project Members need to have

Estimate Cost: It is important for Project Manager to communicate the

Develop Project Charter: This contains a definition of the project's

1.4.2 Project Planning Phase:

Key features of Project Planning Phase:

Detailed Planning Meeting and Work Session: The project manager

Resourcing: Resource Plan is created to estimate resource needs and

Preliminary schedule: Maintaining a schedule ensures time estimates

Communication Plan: Communication procedures and protocols

Risk Assessment: Potential sources of risk are identified, they are

Creating a preliminary budget: Summary of the planned expenses