Tag: Indian Ethos in Management Mumbai University BMS Notes

A project management information system (PMIS) is the logical organization of the information required for an organization to execute projects successfully. A PMIS is typically one or more software applications and a methodical process for collecting and using project information. These electronic systems “Help to plan, execute, and close project management goals.”PMIS systems differ in scope, design and features depending upon an organisation’s operational requirements.

Project Management Information System (PMIS) help plan, execute and close project management goals. During the planning process, project managers use PMIS for budget framework such as estimating costs. The Project Management Information System is also used to create a specific schedule and define the scope baseline. At the execution of the project management goals, the project management team collects information into one database. The PMIS is used to compare the baseline with the actual accomplishment of each activity, manage materials, collect financial data, and keep a record for reporting purposes. During the close of the project, the Project Management Information System is used to review the goals to check if the tasks were accomplished. Then, it is used to create a final report of the project close.

To conclude, the project management information system (PMIS) is used to plan schedules, budget and execute work to be accomplished in project management.

Characteristics of a PMIS

The methodological process used to collect and organize project information can match normalized methodologies such as PRINCE2.

A PMIS Software supports all Project management knowledge areas such as Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communications Management, Project Risk Management, Project Procurement Management, and Project Stakeholder Management. A PMIS Software is a multi-user application, and can be cloud based or hosted on-premises.

Relationship between a PMS and PMIS

A project management system (PMS) could be a part of a PMIS or sometimes an external tool beside project management information system. PMS is basically an aggregation of the processes, tools, techniques, methodologies, resources, and procedures to manage a project. What a PMIS does is to manage all stakeholders in a project such as the project owner, client, contractors, sub-contractors, in-house staff, workers, managers etc.

Strategies:

Scheduling

Because schedules are such a core component of project management as a whole, almost all project management information systems contain scheduling tools. The project schedule is communicated to stakeholders and forms the baseline for project control, that is, the project is continuously measured on the basis of its adherence to the schedule.

Estimating the task duration

The duration of each task must be estimated to determine a realistic project schedule.

Determining the task dependencies

Each task is related to at least one other task, else it would not be part of the project.

Developing the Network Diagram and Gantt chart

Once the durations and dependencies are known, the network diagram is used to determine the critical path, that is, the tasks which must complete on time or they will affect the overall project completion date. Once the critical path is determined, the gantt chart is the most useful and intuitive tool to the project manager.

Resource levelling

The network diagram and gantt chart do not take into account resource usage.  In this last step, resources are assigned to each task and the schedule is adjusted to accommodate the availability or cost of resources.

Estimating

Project estimating involves assigning a price to each of the project tasks.  Each task is then rolled up into an overall project estimate. In a perfect world, the actual project cost will always fall within the estimate, but we know that is only an ideal to be strived for.

Resources

Almost all tasks require resources for their completion. The simplest tasks often have only a project team member for a specified period of time, but that is still a resource that needs to be available and managed in order to complete the task.

Hence, a good project management information system will allow the assignment of resources to tasks. These resources should also come with meta data such as their cost per unit, efficiency rate, or maintenance requirements.

Project Documents and Data

Virtually all projects produce documents as part of their scope, for example design reports or product documentation. Most projects also import documents and data for use in project work, for example databases. Still other projects have a reference library data set that is consulted by the project. For these reasons, project document control has become a specialty in and of itself.

Every document tracked by the project is cataloged and the requirements are defined. Variables used to track documents include:

• Owner
• Storage location
• Format
• Scheduled dates: Creation, approval, and submission
• Actual dates
• Review / Approval team members
• Status

Project management methodologies require a project management information system (PMIS), which is based upon procedural documentation. The procedural documentation can be in the form of policies, procedures, guidelines, forms, and checklists, or even a combination of these. Good procedural documentation will accelerate the project management maturity process, foster support at all levels of management, and greatly improve project communications. The type of procedural documentation selected can change over the years and is heavily biased on whether we wish to manage more formally or informally. In any event, procedural documentation supports effective communications, which in turn, provides for better interpersonal skills.

An important facet of any project management methodology is to provide the people in the organization with procedural documentation on how to conduct project- oriented activities and how to communicate in such a multidimensional environment.

The project management policies, procedures, forms, and guidelines can provide some of these tools for delineating the process, as well as a format for collecting, processing, and communicating project-related data in an orderly, standardized format. Project planning and tracking, however, involve more than just the generation of paperwork. They require the participation of the entire project team, including support departments, subcontractors, and top management.

This involvement of the entire team fosters a unifying team environment. This unity, in turn, helps the team focus on the project goals and, ultimately, fosters each team member’s personal commitment to accomplishing the various tasks within time and budget constraints. The specific benefits of procedural documents, including forms and checklists, are that they help to:

• Provide guidelines and uniformity
• Encourage useful, but minimum, documentation
• Communicate clearly and effectively
• Standardize data formats
• Unify project teams
• Provide a basis for analysis
• Document agreements for future reference
• Refuel commitments
• Minimize paperwork
• Minimize conflict and confusion
• Delineate work packages
• Bring new team members onboard
• Build an experience track and method for future projects

Done properly, the process of project planning must involve both the performing and the customer organizations. This involvement creates a new insight into the intricacies of a project and its management methods. It also leads to visibility of the project at various organizational levels, management involvement, and support. It is this involvement at all organizational levels that stimulates interest in the project and the desire for success, and fosters a pervasive reach for excellence that unifies the project team. It leads to commitment toward establishing and reaching the desired project objectives and to a self-forcing management system where people want to work toward these established objectives.

The Challenges

Despite all these benefits, management is often reluctant to implement or fully support a formal project management system. Management concerns often center around four issues: overhead burden, start-up delays, stifled creativity, and reduced self-forcing control. First, the introduction of more organizational formality via policies, procedures, and forms might cost some money, plus additional funding will be needed to support and maintain the system. Second, the system is seen, especially by action-oriented managers, as causing undesirable start-up delays by requiring the putting of certain stakes into the ground, in terms of project definition, feasibility, and organization, before the detailed implementation can start. Third and fourth, the system is often perceived as stifling creativity and shifting project control from the responsible individual to an impersonal process that enforces the execution of a predefined number of procedural steps and forms without paying attention to the complexities and dynamics of the individual project and its possibly changing objectives.

How to Make It Work

Few companies have introduced project management procedures with ease. Most have experienced problems ranging from skepticism to sabotage of the procedural system. Realistically, however, program managers do not have much of a choice, especially for larger, more complex programs. Every project manager who believes in project management has his or her own success story. It is interesting to note, however, that many have had to use incremental approaches to develop and implement their project management methodology.

Developing and implementing such a methodology incrementally is a multifaceted challenge to management. The problem is seldom one of understanding the techniques involved, such as budgeting and scheduling, but rather one of involving the project team in the process, getting their input, support, and commitment, and establishing a supportive environment. Furthermore, project personnel must have the feeling that the policies and procedures of the project management system facilitate communication, are flexible and adaptive to the changing environment, below and provide an early warning system through which project personnel can obtain assistance rather than punishment in case of a contingency.

The procedural guidelines and forms of an established project management methodology can be especially useful during the project planning/definition phase. Not only do they help to delineate and communicate the four major sets of variables for organizing and managing the project:

(1) Tasks

(2) Timing

(3) Resources

(4) Responsibilities.

They also help to define measurable milestones, as well as report and review requirements. This in turn makes it possible to measure project status and performance and supplies the crucial inputs for controlling the project toward the desired results.

Developing an effective project management methodology takes more than just a set of policies and procedures. It requires the integration of these guidelines and standards into the culture and value system of the organization. Management must lead the overall efforts and foster an environment conducive to teamwork. The greater the team spirit, trust, commitment and quality of information exchange among team members, the more likely it is that the team will develop effective decision-making processes, make individual and group commitments, focus on problem-solving, and operate in a self-forcing, self-correcting control mode. These are the characteristics that will support and pervade the formal project management system and make it work for you. When understood and accepted by the team members, such a system provides the formal standards, guidelines, and measures needed to direct a project toward specific results within the given time and resource constraints.

Established Practices

Although project managers may have the right to establish their own policies and procedures, many companies have taken the route of designing project control forms that can be used uniformly on all projects to assist in the communications process. Project control forms serve two vital purposes by establishing a common framework from which:

• The project manager will communicate with executives, functional managers, functional employees, and clients
• Executives and the project manager can make meaningful decisions concerning the allocation of resources.

Success or failure of a project depends upon the ability of key personnel to have sufficient data for decision-making. Project management is often considered to be both an art and a science. It is an art because of the strong need for interpersonal skills, and the project planning and control forms attempt to convert part of the “art” into a science.

Many companies tend not to realize until too late the necessity of good planning and control forms. Today, some of the larger companies with mature project management structures maintain a separate functional unit for forms control. This is quite common in aerospace and defense, but is also becoming common practice in other industries. Yet, some executives still believe that forms are needed only when the company grows to a point where a continuous stream of unique projects necessitates some sort of uniform control mechanism.

In some small or non–project-driven organizations, each project can have its own forms. But for most other organizations, uniformity is a must. Quite often, the actual design and selection of the forms is made by individuals other than the users. This can easily lead to disaster.

Large companies with a multitude of different projects do not have the luxury of controlling projects with three or four forms. There are different forms for planning, scheduling, controlling, authorizing work, and so on. It is not uncommon for companies to have 20 to 30 different forms, each dependent upon the type of project, length of project, dollar value, type of customer reporting, and other such factors.

In project management, the project manager is often afforded the luxury of being able to set up his or her own administration for the project, a fact that could lead to irrevocable long-term damage if each project manager were permitted to design his or her own forms for project control. Many times this problem remains unchecked, and the number of forms grows exponentially with each project.

Executives can overcome this problem either by limiting the number of forms necessary for planning, scheduling, and controlling projects, or by establishing a separate department to develop the needed forms. Neither of these approaches is really practical or cost-effective. The best method appears to be the task force concept, where both managers and doers will have the opportunity to interact and provide input. In the short run, this may appear to be ineffective and a waste of time and money. However, in the long run there should be large benefits.

To be effective, the following ground rules can be used:

• Task forces should include managers as well as doers.
• Task force members must be willing to accept criticism from other peers, superiors, and especially subordinates who must “live” with these forms.
• Upper level management should maintain a rather passive (or monitoring) involvement.
• A minimum of signature approvals should be required for each form.
• Forms should be designed so that they can be updated periodically.
• Functional managers and project managers must be dedicated and committed to the use of the forms.

Categorizing the Broad Spectrum of Documents

The dynamic nature of project management and its multifunctional involvement create a need for a multitude of procedural documents to guide a project through the various phases and stages of integration. Especially for larger organizations, the challenge is not only to provide management guidelines for each project activity, but also to provide a coherent procedural framework within which project leaders from all disciplines can work and communicate with each other.

Specifically, each policy or procedure must be consistent with and accommodating to the various other functions that interface with the project over its life cycle.

Goal of Process Documentation

The goal of process documentation is to ensure that your business continuously, efficiently, and correctly completes processes that help you reach your business goals.

You can improve your business processes in many ways, such as working with standard operating procedures or business process management strategies. However, process documentation remains a convenient choice you can start with just one documented vital process, and build it from there.

As you’re documenting your processes, you’re also building the blueprint of your business. Will continually reviewing procedures and noting down what works make your business more productive?

Simply put, no matter if the goal is to scale, sell, or simply improve the business process documentation will help take you there.

Project Closure is overlooked during the project. To many, successful project delivery is defined by the completion of deliverables as per the objectives of time and cost. Many practitioners consider the process of project closing as an overburden, a process that has minimal significance and scope, and also believe it is only done to satisfy organizational requirements. But, many practitioners don’t realize that the “Closing a Project” Process is as impactful and significant as the initiation, planning, executing, and monitoring, and controlling processes.

Project Closing is the combination of the following aspects when applied to a project:

• Assuring that all the work has been completed,
• Ensuring that all agreed project management processes have been executed,
• Formally recognizing that the project is completed upon everyone’s approval.

Steps to Closing a Project

The close of the project is the final phase of your job, it’s the last turn of the project life cycle, and like any other aspect of a project, it requires a process. The following are five steps you should take to make sure you’ve dotted all the I’s and crossed all the T’s, as well as taken full advantage of the experience.

1. Arrange a Post Mortem

Managing a project isn’t only about tasks and resources, budget and deadlines, it’s an experience you can constantly learn from. While you should have been learning throughout the project, now is a great time to look back without the pressure and distractions that might have dulled your focus.

Gather the core team to invite feedback about what worked, and what didn’t. Encourage honesty. By documenting the mistakes and the successes of the project, you’re building a catalog that offers historic data. You can go back and look over the information for precedents when planning for new projects.

Projects are never standalone things, but part of a continuum, where the specifics might vary, but the general methods usually remain the same. There’s a wealth of knowledge produced after any project closes.

2. Complete Paperwork

As noted, projects generate reams of documents. These documents are going to have to get sign off and approval from stakeholders. Everything needs attention and must be signed for, which is the legal proof that in fact these documents have concluded. That includes closing all contracts you might have made with internal partners or vendors or any other resources you contracted with.

This includes addressing all outstanding payments. You want to make sure that all invoices, commissions, fees, bonus, what have you, are paid. Complete all the costs involved with the project. It’s not done if it’s not paid for.

Project management software can help you organize all these documents. ProjectManager acts like a hub for all your project files. You can track them on our list view, which is more than the usual to-do list app. For one thing, you can see the percentage complete for each item on the list.

3. Release Resources

You assemble a team for the project, and now you must cut them loose. It’s a formal process, and a crucial one, which frees them for the next project. Each team is brought together for the mix of skills and experience they bring to a project. The project determines the team members you’ll want to work with, and each project is going to be a little bit different, which will be reflected in the team hired to execute it.

This is true for internal as well as external resources. The external ones might be more obvious, as you contracted with them, and that contract is going to have a duration. When it’s over, make sure they’re all paid in full so they can sign off and leave. But internal resources remain, so you have to remind yourself that their time on the project is also limited, and you might be blocking other team’s projects if you don’t release your resources once the project is done.

4. Archive Documents

There are lessons to be learned from old projects, which is why you meet with your team regularly during the project and look back on the process afterwards. However, if you don’t have an archive in which to pull the old records, then whatever knowledge you gain is lost because of poor organization and management. You worked hard to have great project documentation, don’t lose it.

Before you close a project, archive all the documents and any notes and data that could prove useful. Even if you never access it, there’s a need to keep a paper trail of the work done on any project for other people in the organization. This might include legal teams, or HR teams, or even your successor. You never know when someone might have to go back and respond to a question or want to learn how an old issue was resolved. Consider it like putting away provisions for the winter.

5. Celebrate Success

If it sounds silly to you, then you’re not doing your job. There’s nothing silly about rewarding your team to acknowledge a job well done. It creates closure, which is what this part of the project is all about, but it also plants a seed that will bloom in later projects when you work with members of the old team.

That’s because when you note a job well done you’re building morale. It makes team members feel better. You might have been a hard taskmaster in the project, but you give them their due for a job well done. That creates loyalty, and they’re going to work even harder for you the next time. And there will be the next time, because a happy team is a team that you retain. Why would you want to close a project and lose the very resources that made it a success? Loosen up!

Project Closure Checklist

To make sure that every i is dotted and t crossed, follow this step-by-step project closure checklist.

• Start at the beginning with the project scope document you created and make sure that you’ve met all the requirements listed there.
• Make sure that all deliverables have been handed off and signed by stakeholders, getting their approval and satisfaction. Keeping track of all those deliverables can be confusing unless you’re using project management software. Project Manager has a board view that gives you transparency into the process so you can see that everything has been handed off. Customizable columns allow you to add sign-off as a step to make sure stakeholders have approved the deliverable.
• Other project documents must also be signed by the appropriate person, this includes any outstanding contracts and agreements with vendors and other contractors.
• Once documents are signed off on, then process them and pay off all invoices and close out any project-related contracts.
• Add all documents together, including finalizing all project reports, then organize and archive them as historical data to be used for future reference.
• Use collected paperwork to identify and document the lessons learned over the course of the project, including any feedback from stakeholders, so you don’t make the same mistakes in future projects.
• Assign a transition support person to shepherd the project after completion so that the project closure is thorough.
• Release or reassign the project resources, which includes your team and other project personnel and any equipment or site rentals used for the project.
• If you’ve not used a project management software, get one, as it helps control not only the life cycle of the project but also the process of closing the project thoroughly.
• Finally, but perhaps most importantly, celebrate with your project team. They did the work and deserve credit and an opportunity to blow off steam until the next project is started.

Importance of Project Closing Process

If a project is not closed correctly, the project management team along with their efforts, time, and credibility may be negatively perceived for matters that are not their fault or responsibility. Hence, just as Initiation, Planning, Execution, Monitoring, and Controlling processes, Project closing serves an essential purpose for the organization and helps it avoid unfavorable and adverse scenarios.

Modern project management is a well-understood discipline that can produce predictable, repeatable results. The methodologies of modern project management are highly analytical, usually requiring automated tools to support them on large projects. Like most other disciplines, it is learned through both practice and past experience. Project management encompasses many different skills, such as understanding the interdependencies among people, technologies, budgets, and expectations; planning the project to maximise productivity; motivating others to execute the plan; analysing the actual results; and reworking and tuning the plan to deal with the realities of what really happens as the project is executed. In order to manage a project and bring it to a successful completion, its project manager must have a complete understanding of the methodologies being used for the management of different parts of the project. Managers prefer specific project methodology, while resist and face difficulties for an opportunity to manage another project with different methodology as they do not know how much commonality exists between the preferred and the new required methodology. This paper discusses the issues involved in modern project management and compares the differences between traditional and modern project management skills and techniques.

Four Periods in the Development of Modern Project Management

Prior to 1958: Craft system to human relations. During this time, the evolution of technology, such as, automobiles and telecommunications shortened the project schedule. For instance, automobiles allowed effective resource allocation and mobility, whilst the telecommunication system increased the speed of communication. Furthermore, the job specification which later became the basis of developing the Work Breakdown Structure (WBS) was widely used and Henry Gantt invented the Gantt chart. Examples of projects undertaken during this period as supported by documented evidence include:

(a) Building the Pacific Railroad in 1850s.

(b) Construction of the Hoover Dam in 1931-1936, that employed approximately 5,200 workers and is still one of the highest gravity dams in the U.S. generating about four billion kilowatt hours a year.

(c) The Manhattan Project in 1942-1945 that was the pioneer research and development project for producing the atomic bomb, involving 125,000 workers and costing nearly $2 billion.

1958-1979: Application of Management Science. Significant technology advancement took place between 1958 and 1979, such as, the first automatic plain-paper copier by Xerox in 1959. Between 1956 and 1958 several core project management tools including CPM and PERT were introduced. However, this period was characterised by the rapid development of computer technology. The progression from the mainframe to the mini-computer in the 1970s made computers affordable to medium size companies. In 1975, Bill Gates and Paul Allen founded Microsoft. Furthermore, the evolution of computer technology facilitated the emergence of several project management software companies, including, Artemis (1977), Oracle (1977), and Scitor Corporation (1979). In the 1970s other project management tools such as Material Requirements Planning (MRP) were also introduced.

Examples of projects undertaken during this period and which influenced the development of modem project management as we know it today include: (a) Polaris missile project initiated in 1956 that had the objective of delivering nuclear missiles carried by submarines, known as Fleet Ballistic Missile for the U.S Navy. The project successfully launched its first Polaris missile in 1961; (b) Apollo project initiated in 1960 with the objective of sending man to the moon; and (c) E.I du Pont de Nemours chemical plant project commencing in 1958, that had the objective of building major chemical production plants across the U.S.

1980-1994: Production Centre Human Resources. The 1980s and 1990s are characterised by the revolutionary development in the information management sector with the introduction of the personal computer (PC) and associated computer communications networking facilities. This development resulted in having low cost multitasking PCs that had high efficiency in managing and controlling complex project schedules. During this period low cost project management software for PCs became widely available that made project management techniques more easily accessible.

Examples of major projects undertaken during this period that illustrate the application of high technology, and project management tools and practices include:

(a) England France Channel project, 1989 to1991. This project was an international project that involved two governments, several financial institutions, engineering construction companies, and other various organisations from the two countries. The language, use of standard metrics, and other communication differences needed to be closely coordinated.

(b) Space Shuttle Challenger project, 1983 to 1986. The disaster of the Challenger space shuttle focused attention on risk management, group dynamics, and quality management.

(c) XV Calgary Winter Olympic of 1988, which successfully applied project management practices to event management.

1995-Present: Creating a New Environment. This period is dominated by the developments related to the Internet that changed dramatically business practices in the mid 1990s. The Internet has provided fast, interactive, and customised new medium that allows people to browse, purchase, and track products and services online instantly. This has resulted in making firms more productive, more efficient, and more client oriented. Furthermore, many of today’s project management software have an Internet connectivity feature. This allows automatic uploading of data so that anyone around the globe with a standard browser can:

(a) Input the most recent status of their assigned tasks.

(b) Find out how the overall project is doing.

(c) Be informed of any delays or advances in the schedule.

(d) Stay “in the loop” for their project role, while working independently at a remote site.

An example of a major project undertaken during this period is the Year 2000 (Y2K) project. The Y2K Project, known as the millennium bug referred to the problem that computers may not function correctly on January 1st, 2000 at 12 AM. This was a global phenomenon and was highly problematic because resolving the problem at one’s organisation did not guarantee immunity, since a breakdown in the organisation’s supply chain could affect the organisation’s operating capability. Many organisations set up a project office to control and comply with their stakeholders regarding the Y2K issue. Furthermore, use of the Internet was common practice that led to the establishment of the virtual project office. The goal of this virtual project office was:

(a) To deliver uninterrupted turn-of-the-century

(b) Monitor Y2K project efforts.

(c) Provide coordination

(d) Develop a risk management plan.

(e) Communicate Y2K compliance efforts with various stakeholders.

Thus, the virtual project office was a focal point for all the project works, and it increased the awareness and importance of risk management practices to numerous organisations.

Project termination is one of the most serious decisions a project management team and its control board have to take. It causes frustration for those stakeholders who sincerely believed and in most cases still believe that the project could produce the results they expected, or still expect. The project manager and his or her team members, very important stakeholders of the project as well, will feel that they personally failed. They also will be scared of negative consequences for their careers; their motivation and consequently, productivity will decrease significantly.

Reason for Termination:

• Technical reasons
• Requirements or specifications of the project result are not clear or unrealistic
• Requirements or specifications change fundamentally so that the underlying contract cannot be changed accordingly
• Lack of project planning, especially risk management
• The intended result or product of the project becomes obsolete, is not any longer needed
• Adequate human resources, tools, or material are not available
• The project profit becomes significantly lower than expected, due to too high project cost or too low project revenue
• The parent organization does not longer exist
• The parent organization changes its strategy, and the project does not support the new strategy
• Force majeure (e.g. earthquake, flooding, etc.)
• Necessary conditions disappear
• Lack of management support
• Lack of customer support

To Avoid:

• A clearly communicated strategy of the organization.
• Clearly communicated reasons why and how the project supports that strategy, and under what conditions it does not.
• Clearly set and communicated project success criteria (in terms of scope, schedule, and budget), if possible, clearly set and communicated termination criteria.
• High level management attention, even for smaller projects, and even then, when everything still seems to be on track.
• Periodical review meetings with the control board.
• Open discussions with the control board about problems and possible solutions or alternatives, including termination.
• In case the project has to be terminated, a clear commitment of the control board and high-level management towards the project management team in order to enable the team to follow the project closure procedures.
• Upon successful termination, similar rewards and incentives for the project manager and his or her team as with regular project closure.

Reasons for Termination of Projects

Your competitors are doing a better job

As a project manager, you may be motivated to prove your mettle and take your company ahead in the market, but think logically and determine if it is possible. Many a times, you may be motivated at the start of the project but once you begin with it and have to face grave challenges one after another, the positive drive may fizzle out and you may be left with a project that is going nowhere. Even if you realize it midway on the project, do not hesitate to pull the plug.

Expensive or does not meet company’s goal

Make an estimate of the total cost of the project in the planning stage itself. A few thousand dollars here and there are manageable, but when you see the figure going way over your approximate value, it is better to put an end to the project right in the initiation stage. Also, if the project does not go well with the strategic plan of the company, it should not be given the green signal.

Project gets out of control

When operations get way beyond control or when damages cannot be repaired anymore, you know it is time to terminate the project.

Failure in testing process

It is sad to see a project fail during testing. However, if the team members gave it all that they could and the project still could not succeed, putting an end to the project is a sensible choice rather than spending twice the energy and resources on it again.

Important or priority project comes up

Businesses take up several projects simultaneously. However, there are some projects which need more time, energy and resources. If a certain project is stopping you from allocating the required resources in a bigger, important project, it is better to let go of the smaller project.

Process for Terminating Projects

Confirm work is done as per the requirements

Once the project is closing, all deliverables of the project must have been completed and delivered to the customer. You should also take formal acceptance of the customer for the completed work.

Complete procurement closure

Since the project is closing, you should complete any remaining payments that need to be made to the suppliers or partners. The procurement steps are also completed.

Gain formal acceptance

Formal acceptance of the project and project deliverables are taken from the customer. Usually, the customer presents a written document, it can be an email or a signed off document, which states that the project has been completed and they accept the outputs of the project.

Complete final performance reporting

The final performance of the project is calculated and recorded. These include cost performance, schedule performance, quality performance etc. For instance, whether the project has been completed under budget or if it could not be completed, how much did the project exceeded the planned budget?

Index and archive records

Collected documents are finalized. Final versions of the project management plans and all necessary documents about the project are archived in the company records.

Update lessons learned

Lessons learned is collected and gathered from all stakeholders. Lessons learned documentation is stored in the organizational process assets of the company.

Hand-off completed product

Once the project is completed, the product of the project is handed over for the use of the end customer. The handover may need a predetermined period of assistance or some documents describing how to use or how to operate with the product.

Release the resources

After the project is completed successfully, all assignments of the project resources are closed, lessons learned inputs from the project resources are collected and then these resources are released respectively.

As you see, the project closure is also as important as the other phases, so you must take these activities into consideration for better outcomes in your next projects.

Project auditing can be defined as the process of detailed inspection of the management of a project, its methodology, its techniques, its procedures, its documents, its properties, its budgets, its expenses and its level of completion.

A project audit is a key step in the process of closing a project. This audit evaluates the total project processes and outcomes. In this chapter we discussed the purpose of evaluation and the various measurement parameters used in a project audit. We also discussed the life-cycle of a project audit.

The life cycle of an audit contains six phases: audit initiation, project baseline definition, establishing a database, preliminary project analysis, preparing final report and terminating the project.

Major Goals of an Audit

1. The caliber of services and products are ensured

A project audit functions as a good guarantee application. It evaluates the task living cycle analyzing the outcomes yielded throughout the various phase, out of the look stage to setup.

When going over the style stage, a project audit reviews the concepts of the design, which includes the evaluation of alternate styles.

Also, it’s evaluated if the answer is prepared for the pilot check and lastly, throughout the setup evaluation, the review assesses as well as confirms the setup in every site in which the item is followed.

The classification of the errors over the method plays a role in the declaration of the issues and also to comprehend whether the task ought to go on by way of a go/no-go choice at every point.

2. Task management quality check

A project audit determines if the project management fulfills the requirements by evaluating whether or not it is fully compliant together with the organization’s policies, procedures, and processes. It further reviews the strategy utilized to simply help determine spaces to be able to expose the necessary enhancements.

3. Company risk identification

Audits help to identify the risk factors due to the company policy which may impact the quality, environment, time, and budget.

The review further assesses the feasibility of the task of the terminology of performance and affordability by offering transparency as well as evaluating resources, time, and costs.

4. Performance improvement

Keeping track of different phases of the Project Management Life Cycle can help the enhancement of the team’s efficiency.

The review additionally enables you to boost your finances as well as source allocation. Determining goals, preventive actions and corrective measures can result in an optimistic task result.

The troubleshooting procedure enables the team to offer answers and also aids in preventing problems that may recur down the road.

5. Learning

One can learn from experience with the help of the audit process as well as from the feedback obtained. Thus, the team can contemplate their very own performance.

Types of Project Audit in Project Management

Undertaking an audit isn’t the very best of occasions for any PM without having a clear overview of the numerous kinds of audits listed in the PMBOK.

Normal Audit

This is called even simply’ an audit’ which is an element of Monitoring as well as the Controlling method team. It’s additionally called Inspection as it’s essentially a QC operation. Assessment is completed after the item is built.

Quality Audit

This is included in the execution procedure and is a critical review of the project. They find out whether the team follows the business’s process.

Risk Audit

These audits are included in the Monitoring as well as the Controlling team. These assist with total procedure advancement. Here you can additionally audit as well as evaluate the usefulness of the project risk management process as a whole.

Procurement Audit

The procurement Audit is an element of the Closing procedure team. As a component of procurements closure, an organized general comment flushes away concerns, sets up instructions mastered, ensures troubles are solved for succeeding tasks as well as identifies positive results as well as problems which justify transfer to various other procurements.

Audit policies and activation procedures

In order to achieve the benefits expected from a project audit, each stage, element and outcome of the audit process must be clearly set out and openly disclosed, including:

Audit mission statement: This document should clearly define the purposes, objectives, authority and limits of the audit operation, as well as the type of audits to be conducted.

Specification of audit competencies: A detailed specification of the auditor’s skills and experience, showing that the audit staff possess adequate expertise to audit the project.

Roles and responsibilities of the actors involved: A detailed statement of all the roles and responsibilities covered by the audit, both for the person conducting the audit and for the project team; including the project manager, team members, project sponsors, clients and any stakeholder.

‘Trigger’ audit criteria: A complete list of all the criteria on the basis of which projects will be selected for an audit. It would be too costly and time-consuming and would defeat the purpose of the audit process itself. Thus, specific criteria should be established to identify projects to be audited on the basis of risk, complexity, internal value, costs, etc.

Audit start procedures: A description of the procedures for the initiation of the audit, including the process by which individual project managers are informed of an outstanding audit and the related preparation requirements.

Audit execution procedures: A list of audit procedures that cover the methods to be used during the audit. This varies according to the type and timing of each audit, but may include personal interviews with project staff, document reviews, questionnaires and more.

Audit reporting procedures: A specification of the audit reporting procedures, which covers how and the way in which the audit results will be reported and reviewed. In order to minimize the threatening nature of the project audit, all parties should be fully aware of how the results will be disclosed and used within the organization.

Audit redress procedures: A specification of all procedures to be followed to appeal and/or dispute the reported audit results.

Project Life Cycle

Initiation

First, you need to identify a business need, problem, or opportunity and brainstorm ways that your team can meet this need, solve this problem, or seize this opportunity. During this step, you figure out an objective for your project, determine whether the project is feasible, and identify the major deliverables for the project.

Project management steps for the initiation phase

• Undertaking a feasibility study: Identify the primary problem your project will solve and whether your project will deliver a solution to that problem.
• Identifying scope: Define the depth and breadth of the project.
• Identifying deliverables: Define the product or service to provide.
• Identifying project stakeholders: Figure out whom the project affects and what their needs may be.
• Developing a business case: Use the above criteria to compare the potential costs and benefits for the project to determine if it moves forward.
• Developing a statement of work: Document the project’s objectives, scope, and deliverables that you have identified previously as a working agreement between the project owner and those working on the project.

Planning

Once the project is approved to move forward based on your business case, statement of work, or project initiation document, you move into the planning phase.

During this phase of the project management life cycle, you break down the larger project into smaller tasks, build your team, and prepare a schedule for the completion of assignments. Create smaller goals within the larger project, making sure each is achievable within the time frame. Smaller goals should have a high potential for success.

• Creating a project plan: Identify the project timeline, including the phases of the project, the tasks to be performed, and possible constraints
• Creating workflow diagrams: Visualize your processes using swimlanes to make sure team members clearly understand their role in a project
• Estimating budget and creating a financial plan: Use cost estimates to determine how much to spend on the project to get the maximum return on investment
• Gathering resources: Build your functional team from internal and external talent pools while making sure everyone has the necessary tools (software, hardware, etc.) to complete their tasks
• Anticipating risks and potential quality roadblocks: Identify issues that may cause your project to stall while planning to mitigate those risks and maintain the project’s quality and timeline.
• Holding a project kickoff meeting: Bring your team on board and outline the project so they can quickly get to work.

Execution

You’ve received business approval, developed a plan, and built your team. Now it’s time to get to work. The execution phase turns your plan into action. The project manager’s job in this phase of the project management life cycle is to keep work on track, organize team members, manage timelines, and make sure the work is done according to the original plan.

Project management steps for the execution phase

• Creating tasks and organizing workflows: Assign granular aspects of the projects to the appropriate team members, making sure team members are not overworked.
• Briefing team members on tasks: Explain tasks to team members, providing necessary guidance on how they should be completed, and organizing process-related training if necessary.
• Communicating with team members, clients, and upper management: Provide updates to project stakeholders at all levels.
• Monitoring quality of work: Ensure that team members are meeting their time and quality goals for tasks.
• Managing budget: Monitor spending and keeping the project on track in terms of assets and resources.

Closure

Once your team has completed work on a project, you enter the closure phase. In the closure phase, you provide final deliverables, release project resources, and determine the success of the project. Just because the major project work is over, that doesn’t mean the project manager’s job is done there are still important things to do, including evaluating what did and did not work with the project.

Project management steps for the closure phase

• Analyzing project performance: Determine whether the project’s goals were met (tasks completed, on time and on budget) and the initial problem solved using a prepared checklist.
• Analyzing team performance: Evaluate how team members performed, including whether they met their goals along with timeliness and quality of work
• Documenting project closure: Make sure that all aspects of the project are completed with no loose ends remaining and providing reports to key stakeholders
• Conducting post-implementation reviews: Conduct a final analysis of the project, taking into account lessons learned for similar projects in the future
• Accounting for used and unused budget: Allocate remaining resources for future projects

In the mid-1980’s, the Software Engineering Institute at Carnegie Mellon University published a framework intended to help the government assess which software contractors would be best capable of delivering complex software projects. This Capability Maturity Model was based on an assessment of the standard practices a company maintained while working on software projects. The model has since been adapted to fit a broad range of industries and functions, and there are a number of maturity models that have been developed over the years. One of these, the Project Management Maturity Model, closely aligns with the original model, but focuses specifically on the assessment of project management capabilities.

The Five PMMM Levels

There are five levels in the PMMM that reflect increasingly sophisticated organizational behaviors. In order to determine the level a company operates under; it’s evaluated across a number of key areas of project management practice. The PMMM can be viewed as a continuum of behaviors rather than as a rigid scale, as most companies will typically find areas in which they do well and others where there’s room for improvement.

Typical areas of assessment will be the management of risk, scope, schedule, resource, quality, and overall project integration. The full list of key assessment areas will depend on who’s doing the actual assessment. In some cases, the type of industry the company being evaluated is involved with will determine what additional factors are measured.

The five levels used in the PMMM as proposed by the Project Management Institute are labelled Initial Process, Structured Process and Standards, Organizational Standards and Institutional Process, Managed Process, and Optimizing Process. Let’s explore what these signify.

Level 1: Initial Process

The Initial level reflects a company that operates in a relatively random manner. Since there’s very little control, it’s hard to predict how the organization will react, particularly when faced with a crisis situation. While success on projects is possible, a company stuck in the Initial level is unlikely to be able to reproduce success on a consistent basis.

Level 2: Structured Process and Standards

Companies operating in the Structured level will adhere to some basic project management practices, but often only at an individual project level. Overall project success is likely to depend on key individuals or specific management support rather than on adoption of broad standards throughout the organization. While better than a random or ad-hoc situation, organizations operating at Level 2 are still often viewed as being reactive in nature.

Level 3: Organizational Standards

As it’s name suggests, the Organizational level indicates that well-defined project management procedures are documented and used as a standard of operations. Because these procedures are defined at an organizational level, they’re more likely to be well understood and backed by management. The organization is generally seen to act proactively, not reactively.

Level 4: Managed

The Managed level reflects an organization that measures project performance using well-defined metrics. Standards are agreed to across the organization, and common metrics are used to manage business decisions and processes.

Level 5: Optimizing

A company that focuses on deliberate and continual process improvement can be said to be operating in the Optimizing level. Companies at this level will seek to continuously improve their project management performance, often using innovative techniques not seen at other organizations.

Advantages of Project Management Maturity Model:

• It consists decisive and organized steps to evolve various management planning.
• This model is certainly flexible and broad to implement in any type of organizational structure.
• This model is thoroughly easy and effective to implement and understand in real life practice.

Limitations of Kerzner Project Management Maturity Model:

• It is generic model which can be limitation for complex projects and also not useful in complex strategic management.
• Maturity level planning is considerably late in the model hence it is impair to guide organization in several critical directions.
• Project maturity model is very helpful in basic strategic policy planning hence it is not useful in directive and overall organization policy planning.

After the project is commenced the next step is to ensure that the project gets completed by achieving the desired objectives. But sometimes things go wrong when we try to implement them.

So it becomes very important to control and monitor the projects especially in the implementation stage. Another reason for this control is the amount of cost involved with the projects.

So one way of doing this is the control of in-progress projects. Therefore, it refers to the assessment and monitoring of the projects which are currently in progress. It helps to implement any changes to be done at an early stage so that if something goes wrong it can be treated well in time.

There are two aspects of control of in-progress projects:

• Establishing procedures for internal control: it refers to setting up certain procedures through which we can keep control of the ongoing project internally. It may be done through assigning a dedicated supervisor for this or can be done by investing in technology related to this.
• Regular progress reports: regular progress reports may be maintained so as to judge the daily progress of the project. This progress report can also be used to track the planned performance with the actual performance. This will help the company know about areas where we may be lacking.

Post-Completion Audit

Even after the project is completed it is so important to audit the project. The main aim is to compare the actual performance with the planned performance or we can say that to know whether the project has produced desired results or not.

If the results are desired, we aim to look for things which performed well and is there any scope for improvement or not and if the results are not desired then we may aim to find out the shortcomings due to which the project suffered and how can we improve them.

Post-completion audits also help a business find out what were the biases that we made in our judgements. We will also be able to include healthy caution.

It will also help us to determine who were the best performers who put in extra efforts to make the project success and we will also be able to serve this audit as a training ground for potential executives.

Abandonment Analysis

Project management is certainly a very dynamic process. Anything can happen in this fast-changing dynamic world. Here is where abandonment analysis comes into the picture.

Abandonment analysis is a technique which is used for existing projects and even for new projects that whether the existing project terminated or is to be continued.

The rules to consider are:

If PVCF<SV<DV then it is highly advised to divest the project because the divestiture value is highest in the case and makes the most sense to divest.

If PVCF<DV<SV then the project must be terminated because the SV value is highest and we will get the most benefit by terminating the project.

If SV<PVCF<DV then we should divest the project because at this stage we are getting the most value by divesting the project.

If SV<DV<PVCF then we should continue with the project because we will get the most benefit by continuing the project.

If DV<SV<PVCF then in this we should continue with the project as both DV and SV are lower than PVCF.

If DV<PVCF<SV then we must terminate the project because neither divesting nor continuing the project will help.

Some problems are small and can be resolved quickly. Other problems are large and may require significant time and effort to solve. These larger problems are often tackled by turning them into formal projects.

This approach defines five problem solving steps you can use for most problems.

• Define the Problem
• Determine the Causes
• Generate Ideas
• Select the Best Solution
• Take Action

Define the Problem

The most important of the problem solving steps is to define the problem correctly. The way you define the problem will determine how you attempt to solve it.

If you define the problem as poor performance by the team member you will develop different solutions than if you define the problem as poor expectation setting with the client.

Determine the Causes

Once you have defined the problem, you are ready to dig deeper and start to determine what is causing it.  You can use a fishbone diagram to help you perform a cause-and-effect analysis.

If you consider the problem as a gap between where you are now and where you want to be, the causes of the problem are the obstacles that are preventing you from closing that gap immediately.

This level of analysis is important to make sure your solutions address the actual causes of the problem instead of the symptoms of the problem. If your solution fixes a symptom instead of an actual cause, the problem is likely to reoccur since it was never truly solved.

Generate Ideas

Once the hard work of defining the problem and determining its causes has been completed, it’s time to get creative and develop possible solutions to the problem.

Two great problem solving methods you can use for coming up with solutions are brainstorming and mind mapping.

Select the Best Solution

After you come up with several ideas that can solve the problem, one problem solving technique you can use to decide which one is the best solution to your problem is a simple trade-off analysis.

To perform the trade-off analysis, define the critical criteria for the problem that you can use to evaluate how each solution compares to each other. The evaluation can be done using a simple matrix. The highest ranking solution will be your best solution for this problem.

Take Action

Once you’ve determined which solution you will implement, it’s time to take action. If the solution involves several actions or requires action from others, it is a good idea to create an action plan and treat it as a mini-project.

Using this simple five-step approach can increase the effectiveness of your problem solving skills.

Techniques:

Gantt chart

A Gantt chart helps you visualize the project schedule. It’s a bar chart you can use to understand the various relationships between correlating activities and study their current statuses.

This project management tool can be custom-made to suit your personal preferences and to adequately advise you on how to deal with specific projects. Software versions allow you to manage activities within your defined plan and measure them against time constraints.

This will enable you to create a yardstick to measure the performance of each subtask or primary task within your project, helping you realize existing problems with a mere glance over the progress report. If any assignment is taking longer than expected, it shows that you need to put your attention toward that particular task, or you may be required to redirect more resources to meet with predefined objectives.

Ishikawa diagram

Also known as a fishbone diagram, this is a fundamental technique used by project managers to identify the reasons behind any defects, failures, and unsolicited variations. By showing cause and effect, the Ishikawa diagram can help you design better products and prevent potential factors from bringing about mistakes and shortcomings within your project.

Many software developers and companies use the Ishikawa diagram to perform software testing. Project managers also use it to deal with concerns such as low developer velocity as well as slow resource procurement. This tool is quite adaptable in its basic form and theory, which enables you to use it in many ways.

Root cause analysis

A simple yet powerful process for practical problem solving, root cause analysis is a four-step methodology to identify project troubles. This tool is used to distinguish the root cause from other causal factors so that corrective actions can be determined and taken. By knowing the root cause of a fault or problem, you can choose the most practical solution that meets your specific requirements.

This also helps you get out in front of problems. For example, the goal of incident management is to resume a faulty IT service as soon as possible (being reactive); by addressing an outage’s root causes, you can solve the problem for good (being proactive).

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equity investors, known as ‘sponsors‘, and a ‘syndicate‘ of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modelling; see Project finance model. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms.

Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound or to assure the lenders of the sponsors’ commitment. Project finance is often more complicated than alternative financing methods. Traditionally, project financing has been most commonly used in the extractive (mining), transportation, telecommunications, and power industries, as well as for sports and entertainment venues.

Risk identification and allocation is a key component of project finance. A project may be subject to a number of technical, environmental, economic and political risks, particularly in developing countries and emerging markets. Financial institutions and project sponsors may conclude that the risks inherent in project development and operation are unacceptable (unfinanceable). “Several long-term contracts such as construction, supply, off-take and concession agreements, along with a variety of joint-ownership structures are used to align incentives and deter opportunistic behaviour by any party involved in the project.” The patterns of implementation are sometimes referred to as “project delivery methods.” The financing of these projects must be distributed among multiple parties, so as to distribute the risk associated with the project while simultaneously ensuring profits for each party involved. In designing such risk-allocation mechanisms, it is more difficult to address the risks of developing countries’ infrastructure markets as their markets involve higher risks.

A project can only come together with all the necessary materials and labor, and those materials and labours cost money. Putting together a budget that keeps costs to a minimum, while maximizing the project’s quality and scope can be challenging. This is why proper cost estimation is important.

Cost estimation in project management is the process of forecasting the financial and other resources needed to complete a project within a defined scope. Cost estimation accounts for each element required for the project from materials to labour and calculates a total amount that determines a project’s budget. An initial cost estimate can determine whether an organization greenlights a project, and if the project moves forward, the estimate can be a factor in defining the project’s scope. If the cost estimation comes in too high, an organization may decide to pare down the project to fit what they can afford (it is also required to begin securing funding for the project). Once the project is in motion, the cost estimate is used to manage all of its affiliated costs in order to keep the project on budget.

Project Cost Estimation is a crucial process that involves approximating the overall expenditure of a project. The accuracy and effectiveness of cost estimation and budgeting in project management depend on the precision and comprehensiveness of the project scope, known as the scope baseline. This scope defines the project’s boundaries, constraints such as timelines, available resources, and budget limitations.

To determine the project’s costs, the risk register plays a pivotal role. It aids in calculating various cost estimates, including expenses associated with contingency plans and those incurred to mitigate risks. By analyzing potential risks and their financial impact, project managers can better plan for unforeseen events and allocate resources more effectively.

There are two key types of costs addressed by the cost estimation process:

• Direct costs: Costs associated with a single area, such as a department or the project itself. Examples of direct costs include fixed labor, materials, and equipment.
• Indirect costs: Costs incurred by the organization at large, such as utilities and quality control.

Various cost types into categories:

• Labour cost: The cost of team members working on the project, both in terms of wages and time.
• Equipment cost: The cost of resources required for the project, from physical tools to software to legal permits.
• Cost of supplies:
• Travel cost
• Training cost
• Overhead cost, etc.

Types of Financing, Sources of Finance

1. Non Recourse Loan: A loan in which the lender cannot claim more than the collateral as repayment in the event that the loan is enforced.
2. Full Recourse Loan: A loan in which the lender can claim more than the collateral as repayment in the event that the loan is enforced. Thus, a full recourse loan places the Sponsor’s assets at risk.
3. Limited Recourse Loan: A loan in which the lender can claim more than the collateral, subject to some restrictions, as repayment in the event that the loan is enforced.

Project Financing Participants and Agreements

Additional Equity Investors: In addition to the sponsors, there frequently are additional equity investors in the project company. These additional investors may include one or more of the other project participants.

Sponsor/Developer: The sponsors or developers of a project financing is the party that organizes all of the other parties and typically controls, and makes an equity investment in, the company or other entity that owns the project. If there is more than one sponsor, the sponsors typically will form a corporation or enter into a partnership or other arrangement pursuant to which the sponsors will form a “Project company” to own the project and establish their respective rights and responsibilities regarding the project.

Construction Contractor: The construction contractor enters into a contract with the project company for the design, engineering, and construction of the project.

Operator: The project operator enters into a long-term agreement with the project company for the day-to-day operation and maintenance of the project.

Feedstock Supplier: The feedstock suppliers enter into a long-term agreement with the project company for the supply of feedstock (i.e., energy, raw materials or other resources) to the project (e.g., for a power plant, the feedstock supplier will supply fuel; for a paper mill, the feedstock supplier will supply wood pulp).

Product Off taker: The product off takers enters into a long-term agreement with the project company for the purchase of all of the energy, goods or other product produced at the project.

Lender: The lender in a project financing is a financial institution or group of financial institutions that provide a loan to the project company to develop and construct the project and that take a security interest in all of the project assets.

Techniques used to estimate project cost

To estimate project costs, various techniques can be employed, some of which include:

1. Analogous Estimating: This technique relies on expert judgment and information from similar previous projects. The cost of a current project is estimated based on the cost of similar past projects, with adjustments made for any differences.
2. Parametric Estimating: Past data and historical records are used to estimate costs for the current project. Mathematical models and algorithms are applied to calculate costs based on relevant parameters.
3. Bottom-Up Estimating: This technique is considered the most reliable when the project scope is well-defined. Cost estimates are derived by breaking down the project into work packages or deliverables, and then estimating the cost for each resource or component.
4. Three-Point Estimation: This method involves using three estimates – optimistic, pessimistic, and most likely – to calculate the expected cost, taking into account the uncertainties associated with the project.
5. Reserve Analysis: Reserve analysis involves setting aside contingency reserves to account for potential cost overruns or risks that may impact the project’s budget.
6. Cost of Quality: This technique considers the cost of ensuring quality throughout the project lifecycle. It involves investing in prevention, appraisal, and failure costs to maintain high-quality deliverables.
7. PERT Estimating: Program Evaluation and Review Technique (PERT) utilizes a probabilistic approach to estimate project costs, incorporating uncertainty and risk factors in the estimation process.
8. Vendor Bid Analysis: When external vendors are involved in the project, analyzing their bids and proposals can provide valuable insights into the estimated costs of specific project components.

Each of these techniques has its strengths and weaknesses, and the choice of method depends on factors like project complexity, data availability, and the level of accuracy required for cost estimation. By employing a combination of these techniques, project managers can arrive at more reliable cost estimates and better manage project budgets.