Download - PPAC SESSION 1.ppt
-
7/23/2019 PPAC SESSION 1.ppt
1/76
PAN African e-Network Project
MFC
Project planning : Appraisal and Control
Semester - 3
Session - 1
Dr Loveleen
-
7/23/2019 PPAC SESSION 1.ppt
2/76
Module 1
Module I: Planning of Projects
Introduction to Capital and Infrastructure
Projects, Overview and Resource AllocationFramework,
eneration and !creenin" of Project Ideas,
Project Identification#
-
7/23/2019 PPAC SESSION 1.ppt
3/76
Planning of Projects
Project mana"ement is a professional
discipline combining systems, techniques
and people to ac$ieve a %usiness objective
within defined parameters of time, budget
and quality#
An important aspect of project mana"ement is
t$e %uildin" and maintainin" of effectiverelations$ips wit$ all t$ose involved in t$e project
t$rou"$ a participative and open communication
process#
-
7/23/2019 PPAC SESSION 1.ppt
4/76
Ori"in
&Project mana"ement& first %ecame popular in t$e earl'
19!s, driven %' %usinesses w$ic$ reali(ed t$at t$ere
were benefits to be gained from organi"ing wor# into
separate, definable units and from co$coordinatingdifferent #inds of s#ills across departments and
professions%
One of t$e first major uses of project mana"ement was
to $andle t$e &' space programmed, andgovernments, military organi"ations, and t$e
corporate world $ave all since adopted t$e discipline#
-
7/23/2019 PPAC SESSION 1.ppt
5/76
Operations and Project
)$e c$aracteristics of operations and projects are*
+ ot$ are performed %' people#
+ ot$ $ave constrained %' limited resources#
+ ot$ need to %e planned, e-ecuted, and controlled#
Projects are often implemented as a means of ac$ievin"
an or"ani(ation&s strate"ic plan#
Operations and projects differ primaril' in t$at as
operations are on"oin" and repetitive w$ile projects aretemporar' and uni.ue#
-
7/23/2019 PPAC SESSION 1.ppt
6/76
Projects are undertaken at all levels of t$e or"ani(ation#)$e' ma' involve a sin"le person or man' t$ousands# )$eir
duration ran"es from a few weeks to more t$an five 'ears#
Projects ma' involve a sin"le unit of one or"ani(ation orma' cross or"ani(ational %oundaries, as in joint ventures
and partnerin"#
Projects are critical to t$e reali(ation of t$e performin"or"ani(ation&s %usiness strate"' %ecause projects are a
means %' w$ic$ strate"' is implemented#
-
7/23/2019 PPAC SESSION 1.ppt
7/76
A project ma' %e an't$in" like*+ /evelopin" a new product or service
+ 0ffectin" a c$an"e in structure, staffin", or st'le of an
or"ani(ation
+ /esi"nin" a new transportation ve$icle
+ /evelopin" or ac.uirin" a new or modified information s'stem
+ Constructin" a %uildin" or facilit'
+ uildin" a water s'stem for a communit' in a developin"
countr'
+ Runnin" a campai"n for political office
+ Implementin" a new %usiness procedure or process
-
7/23/2019 PPAC SESSION 1.ppt
8/76
A project is s'nt$esi(in" predetermined amounts of t$e
resources of an or"ani(ation in desi"nin" and e-ecutin" its
strate"ies t$at will assist t$e or"ani(ation in desi"nin" and
e-ecutin" strate"ies#
A commercial project involves t$e followin" ke'considerations*
i2# 3$at is t$e cost of monetar' project4
ii2# 3$at is t$e time re.uired4
iii2# 3$at are t$e capa%ilities t$at it provides to t$e
or"ani(ation4
iv2# 3$et$er it will fit into t$e strate"ies of t$e or"ani(ation4
-
7/23/2019 PPAC SESSION 1.ppt
9/76
)emporar' Project )emporar' means that every project has a definite beginning and a
definite end# )$e end is reac$ed w$en t$e project&s o%jectives $ave %een
ac$ieved, or w$en it %ecomes clear t$at t$e project o%jectives will not or
cannot %e met, or t$e need for t$e project no lon"er e-ists and t$e project is
terminated# A project is considered to %e a temporar' process %ecause once t$e end
"oal is ac$ieved, t$e project is complete# For t$is reason, t$e end point of a
project needs to %e defined at t$e ver' %e"innin" of t$e project to ensure
successful completion#
-
7/23/2019 PPAC SESSION 1.ppt
10/76
)$e reason w$' some projects never end
is %ecause no one ever defined w$at
constitutes completion of a project# )$e %asic .uestions for definin" success
criteria are*
+ 3$' are we doin" t$is project4+ 3$at do we $ope to c$an"e4
+ 5ow will we measure success4
-
7/23/2019 PPAC SESSION 1.ppt
11/76
Criteria for project success are .uantifia%le and measura%le, and
are e-pressed in terms of %usiness value#
(ell$)efined *oals - Projects re.uire well6defined "oals to
determine project completion#
3it$out well6defined "oals and o%jectives, a project lacks purpose#
Project +onstraints -All projects $ave constraints and t$ese needto %e defined from t$e onset# Projects $ave resource limits in terms
of people, mone', time, and e.uipment# 3$ile t$ese ma' %e
adjusted, t$e' are considered fi-ed resources %' t$e project
mana"er# )$ese constraints form t$e %asis for plannin" t$e project#
-
7/23/2019 PPAC SESSION 1.ppt
12/76
A project is a uni.ue set of coordinated activities, wit$
definite startin" and finis$in" points, under taken %' an
individual or or"ani(ation to meet specific o%jectives
wit$in t$e defined sc$edule, cost and performanceparameters#
0-amples of some projects*
1# Construction of a /am for %etter irri"ation facilities
7# Construction of 8ational 5i"$wa'
9# Conductin" Afro6Asian ames
-
7/23/2019 PPAC SESSION 1.ppt
13/76
ature and )istinctive
+haracteristics of Projectsature:
1# Projects differ from stereot'ped %usiness activities and
t$e' are uni.ue#
7# 0ac$ project is different in itself#
9# Projects are not $omo"eneous $owever similar t$e' ma'
%e#
:# )wo projects cannot %e compared#
;# )o perform uni.ue tasks, or"ani(ations adopt project
approac$#
-
7/23/2019 PPAC SESSION 1.ppt
14/76
+haracteristics of 'uccessful Projects
1# +lear objectives6 )$e most successful projects clearl' define o%jectives from t$e outset#
7# - good project plan 6 A carefull' t$ou"$t6out plan serves two purposes#
First, it allows ever'one involved to understand and perform t$eir part in t$e project#
It s$ows w$o is responsi%le for w$at and estimates $ow muc$ mone', people, e.uipment and
time will %e re.uired to complete t$e project#
!econd, it serves as a monitorin" tool, allowin" 'ou to take earl' action if t$in"s "o
wron"#
9# +ommunication, communication, communication 6 Project is a colla%orative effort
%etween all of t$e individuals and or"ani(ations involved# )$e' need to work to"et$er to
maintain effective and continual communication %etween t$e parties#
:#- controlled scope 6 8umerous issues will come up t$rou"$out t$e project, and not all of
t$em will contri%ute to t$e overall o%jectives# It is important to sta' focused on t$e priorities,
wit$ little wasted time or attention#
;#'ta#eholder support 6 Projects t'picall' involve several stake$olders, w$o invest time and
resources in t$e project# It is important to maintain stake$older support t$rou"$out t$e project,
so t$e project team can meet its o%jectives#
-
7/23/2019 PPAC SESSION 1.ppt
15/76
Project Parameters*
)$e parameters t$at influence a project w$ic$ is "enerall' comple- in natureare*6
'cope Covers all activities, financial
-
7/23/2019 PPAC SESSION 1.ppt
16/76
-
7/23/2019 PPAC SESSION 1.ppt
17/76
-
7/23/2019 PPAC SESSION 1.ppt
18/76
A project is a part of pro"ram, w$ic$ can %e put into t$e
%usiness as .uickl' as possi%le# It is a roup of Projectsmana"ed in a co6coordinated wa' to o%tain %enefits notavaila%le from mana"in" t$em individuall'#
All projects do not involve t$e same level of mana"erial skills,costs, tec$nolo"', or comple-it'#
/he projects can be grouped by ta#ing the degree ofuncertainty and system compleity or scope%
)egree of uncertainty ran"es from low to $i"$# It issu%divided as @ow6tec$, medium6tec$, $i"$tec$, and super6tec$#
Assem%l' projects $ave low comple-it' w$ereas Arra'projects $ave $i"$ comple-it'#
-
7/23/2019 PPAC SESSION 1.ppt
19/76
-
7/23/2019 PPAC SESSION 1.ppt
20/76
Project Mana"ement
Project management is t$e application of
knowled"e, skills, tools, and tec$ni.ues to
project activities to meet projectre.uirements#
Project mana"ement is accomplis$ed
t$rou"$ t$e use of t$e processes suc$ as*initiatin", plannin", e-ecutin", controllin",
and closin"#
-
7/23/2019 PPAC SESSION 1.ppt
21/76
)$e project team mana"es t$e work of t$e
projects, and t$e work t'picall' involves*
+ Competin" demands for* scope, time, cost,risk, and .ualit'#
+ !take$olders wit$ differin" needs and
e-pectations#
+ Identified re.uirements#
-
7/23/2019 PPAC SESSION 1.ppt
22/76
eed of Project Management
)$e decision on w$et$er or not to set6up a separate project
mana"ement division finall' is su%jective, t$at decision
depends on man' factors as6
1# Interdependencies amon" departments
7# Resource s$arin"
9# Importance of project
:# Project si(e
;# ni.ueness of project
B# Market volatilit'
# Or"ani(ation reputation
-
7/23/2019 PPAC SESSION 1.ppt
23/76
Interdependencies among departments
Interdependence amon" various departments of
or"ani(ation is one of t$e major factors t$at dominate
decision# If t$e task to %e completed re.uires t$at man'functionalit' separated activities $ave to %e put at one
place and if t$e activities depend on one anot$er, i#e#
$ave to %e carried out in a se.uence, project
mana"ement tec$ni.ues are definitel' re.uired#
-
7/23/2019 PPAC SESSION 1.ppt
24/76
0esource 'haring
Project mana"ement is re.uired w$en t$e services of speciali(ed
professionals, w$ic$ ma' %e in scarcit' in t$e or"ani(ation and also
e-pensive are re.uired for t$e project# Project mana"ement tec$ni.ues $elp
in keepin" t$e resources full' emplo'ed, t$us reducin" %ot$ direct and
indirect costs, w$ile ensurin" t$e deliver' of t$e needed services#
Importance of project
!et up of separate project mana"ement department depends on t$e
importance of project to t$e or"ani(ation# A project s$ould %e viewed upon
as somet$in" t$at contri%utes to t$e a%ilit' of t$e or"ani(ation in succeedin"in its future as well# It s$ould %e considered as an opportunit' to ac$ieve a
tar"et t$at is 'et anot$er step towards its "oals ac$ievin" its mission#
-
7/23/2019 PPAC SESSION 1.ppt
25/76
Project si"e Project si(e is a relative factor %ut it can %e said t$at
w$en an or"ani(ation re.uires su%stantiall'more
resources t$an it normall' uses, project mana"ement
can %e "ainfull' used# &niqueness of project
@ack of familiarit' or precedent to follow usuall' creates
insecurit' and disa"reement, particularl' amon" t$ose at
t$e middle and lower levels of mana"ement#
-
7/23/2019 PPAC SESSION 1.ppt
26/76
Mar#et 2olatility
3it$ increasin" competition in market nature of t$e market c$an"es
continuousl'# )ec$nolo"ical c$an"es are takin" place rapidl' and
values and %e$avior of consumers are virtuall' in a state of flu-# 3rgani"ation reputation
If failure in completin" t$e project on time is likel' to dama"e t$e
reputation of or"ani(ation su%stantiall', a project mana"ement
s$ould %e seriousl' considered# An or"ani(ations& financial position
ma' %e seriousl' dama"ed if penalties entail failure to deliver ontime#
-
7/23/2019 PPAC SESSION 1.ppt
27/76
Implementing a new computeri"ed ba#ing system
PM Includes:
1# /evelopin" a Project Plan Project oals, 5ow t$e' will %e accomplis$ed2
7# !pecif'in" $ow "oals will %e accomplis$ed
9# !pecif'in" w$at resources are needed
:# Relatin" %ud"ets D time for completion
PM disciplines are:
1# Finance EFinancial !tatements, Cost of t$e Project, etc#
7# Personnel E!electin" !killed Personnel, Project Mana"er, Project )eam, etc#
9# Purc$ases D @o"istics
:# RD / E8ew Product /evelopment D =ualit' Assurance
;# Marketin" EMarketin" Project Idea to !ponsors
B# Operations EMana"in" Activities
-
7/23/2019 PPAC SESSION 1.ppt
28/76
0elationship between Project 4 5ine Management
!uccess of a project depends upon "ood relations$ip
%etween project mana"er and various functional mana"ers
line staff2#Project Mana"er s$ould e-ercise judicious control over
resources mone', manpower, mac$iner', facilities,
materials, tec$nolo"' D information2 allocated to project %'
various functional departments#
-
7/23/2019 PPAC SESSION 1.ppt
29/76
6enefits of Project Management
Major enefits*
1# Provides tec$ni.ues for trade6off %etween conflictin" "oals D enterprise priorities#
7# etter control of project#
9# etter co6ordination#
:# Reduces developmental time
;# @owers cost
B# 5i"$ order results#
Ot$er enefits*
1# Clear description of work#7# Identification of responsi%ilities D assi"nments for specific tasks# D activities
9# )rackin" of functional responsi%ilities#
;# 0as' specification of time limits for task completion#
B# Pro%lems are e-posed in advance#
# Improved skills for future plannin"#
G# O%jectives w$ic$ cannot %e met or e-ceeded can %e identified easil'#
H# Measurement of accomplis$ment a"ainst plans is ena%led#
-
7/23/2019 PPAC SESSION 1.ppt
30/76
P0378+/ M--*8M8/ 3(58)*8 -08-', 5I8 +;+58, -)
08+&00I* -+/I2I/I8':
-
7/23/2019 PPAC SESSION 1.ppt
31/76
Or"ani(ations performin" projects will usuall' divide eac$ project into severalproject phases to improve mana"ement control and provide for links to t$eon"oin" operations of t$e performin" or"ani(ation# Collectivel', t$e projectp$ases are known as t$eproject life cycle#
0ac$ project p$ase is marked %' completion of one or more delivera%les# Adeliverableis a tan"i%le, verifia%le work product suc$ as a feasi%ilit' stud', a
detail desi"n, or a workin" protot'pe# )$e delivera%les, and $ence t$e p$ases,are part of a "enerall' se.uential lo"ic desi"ned to ensure proper definition oft$e product of t$e project#
)$e conclusion of a project p$ase is "enerall' marked %' a review of %ot$ ke'delivera%les and project performance to date, to a2 determine if t$e project
s$ould continue into its ne-t p$ase and %2 detect and correct errors costeffectivel'# )$ese p$ase6end reviews are often called phase exits, stagegates, or kill points#
-
7/23/2019 PPAC SESSION 1.ppt
32/76
Project life c'cles "enerall' define*+ 3$at tec$nical work s$ould %e done in eac$ p$ase
e#"#, is t$e work of t$e arc$itect part of t$e definitionp$ase or part of t$e e-ecution p$ase42#
+ 3$o s$ould %e involved in eac$ p$ase e#"#,implementers w$o need to %e involved wit$re.uirements and desi"n2#
+ Project life6c'cle descriptions ma' %e ver' "eneral orver' detailed# 5i"$l' detailed descriptions ma' $ave
numerous forms, c$arts, and c$ecklists to providestructure and consistenc'# !uc$ detailed approac$esare often calledproject management methodologies#
-
7/23/2019 PPAC SESSION 1.ppt
33/76
Most project life6c'cle descriptions s$are a num%er of commonc$aracteristics*
+ Cost and staffin" levels are low at t$e start, $i"$er toward t$eend, and drop rapidl' as t$e project draws to a conclusion#
+ )$e pro%a%ilit' of successfull' completin" t$e project is lowest,and $ence risk and uncertaint' are $i"$est, at t$e start of t$e
project# )$e pro%a%ilit' of successful completion "enerall' "etspro"ressivel' $i"$er as t$e project continues#
+ )$e a%ilit' of t$e stake$olders to influence t$e finalc$aracteristics of t$e project&s product and t$e final cost of t$eproject is $i"$est at t$e start and "ets pro"ressivel' lower as t$e
project continues# A major contri%utor to t$is p$enomenon is t$att$e cost of c$an"es and error correction "enerall' increases ast$e project continues#
-
7/23/2019 PPAC SESSION 1.ppt
34/76
Project life c'cle can %e divided into p$ases# )$ese p$asescorrespond wit$ c$an"es in t$e level of activit' or effort put into t$eproject and uncertaint' re"ardin" t$e final outcome of t$e project#
Phase I: +onception 4 'election
Phase II: Planning 4 'cheduling
Phase III: Implementation, Monitoring 4 +ontrol
Phase I2: 8valuation 4 /ermination
-
7/23/2019 PPAC SESSION 1.ppt
35/76
)$e level of activit', in an' project, starts at a low leveland t$en rises slowl'# In conception D selection p$ase,%efore it is decided w$et$er or not somet$in" is a
wort$w$ile idea or w$ic$ of t$e several alternative ideass$ould %e proceeded wit$, t$e activit' is naturall' lowand is confined to conductin" feasi%ilit' studies,estimatin" revenues and costs, etc# In t$is p$ase amountspent is also low, as t$e num%er of emplo'ees workin"
on it#
-
7/23/2019 PPAC SESSION 1.ppt
36/76
)$e functions to %e performed %' t$e project mana"er ort$e team workin" on t$e project are*6
1# Identif'in" a need for a project
7# 0sta%lis$in" "oals to %e ac$ieved %' t$e project9# 0stimatin" t$e amount t$at t$e firm will $ave to commitfor t$e project#
:# Presentin" t$e project idea or various alternative ideas to
t$e mana"ement and "et t$eir approval#
-
7/23/2019 PPAC SESSION 1.ppt
37/76
-
7/23/2019 PPAC SESSION 1.ppt
38/76
Project Initiation and Concept
/evelopment
-
7/23/2019 PPAC SESSION 1.ppt
39/76
Project Management is an Iterative Process )$e
arrows indicate t$at project mana"ement is an iterative
process# It is not a lock6step se.uence of activities#
Project mana"ement re.uires "eneral mana"ementknowled"e# )$e principles, practices, concepts,
tec$ni.ues, tools, and skills of "eneral mana"ement are
t$e foundation for project mana"ement# )$ese skills
include t$e a%ilit' to work well wit$ people, to takeresponsi%ilit', to lead a "roup, and to make decisions#
-
7/23/2019 PPAC SESSION 1.ppt
40/76
0is# in Projects
In project mana"ement terms, risk refers to an uncertain event or
condition t$at $as a cause and, t$at if it occurs, $as a positive or
ne"ative effect on a project&s o%jectives, and a conse.uence on
project cost, sc$edule or .ualit'#
For e-ample* t$e cause of a risk ma' %e re.uirin" a classroom wit$
networked computers for t$e learners in a skills development
project# )$e risk event is t$at Internet connection is dela'ed and t$e
classroom is not availa%le for t$e anticipated start date#
A risk response plan can $elp t$e project# It identifies t$e risks t$at
mi"$t affect t$e project, determines t$eir effect on t$e project and
includes a"reed6upon responses for eac$ risk#
-
7/23/2019 PPAC SESSION 1.ppt
41/76
/he 0is# Management 'trategy
Identifying 0is#s*)$e first step in creatin" a risk response plan is to identif' risks w$ic$
mi"$t affect t$e project#
)$e project mana"er, ke' staff and project partners s$ould
%rainstorm referrin" to t$e project c$arter, calendar of activities
sc$edule and %ud"et to identif' potential risks# )$ose involved in t$eproject can often identif' risks on t$e %asis of e-perience#
Pu%lis$ed information resources are also availa%le t$at identif' risks for
man' application areas#
Common sources of risk in communit' learnin" initiatives include*
)ec$nical risks + suc$ as unproven tec$nolo"'
Project mana"ement risks + suc$ as a poor allocation of time or resources
Or"ani(ational risks + suc$ as resource conflicts wit$ ot$er activities
0-ternal risks + suc$ as c$an"in" priorities in partner or"ani(ations
-
7/23/2019 PPAC SESSION 1.ppt
42/76
/evelopin" Risk Response
!trate"ies*!everal risk response strate"ies are availa%le*
< -voidance+ c$an"in" t$e project plan to eliminate t$e risk or protect t$e o%jectives from
its impact# An e-ample of avoidance is usin" a familiar tec$nolo"' instead of an innovative
one#
/ransference + s$iftin" t$e mana"ement and conse.uence of t$e risk to a t$ird part'#
Risk transfer almost alwa's involves pa'ment of a premium to t$e part' takin" on t$e risk#
An e-ample of transference is usin" a fi-ed price contract for a consultant&s services#
< Mitigation+ reducin" t$e pro%a%ilit' and
-
7/23/2019 PPAC SESSION 1.ppt
43/76
Criteria for project success are .uantifia%le,measura%le, and e-pressed in terms of %usiness
value metrics# )$e' include* Customer#
Project containin" a purpose or an o%jective2#
!cope#
/elivera%les#
!tart and 0nd /ates#
!ponsor#
Identified Resources#
Project Mana"er#
-
7/23/2019 PPAC SESSION 1.ppt
44/76
Components to Project !uccess
)$ere are t$ree main component .uestions t$at
need to %e answered to ensure t$e success of
projects# )$e' are*1# /oes t$e product
-
7/23/2019 PPAC SESSION 1.ppt
45/76
ine nowledge -reas in
Project Phases1# Integration Management 6 Includes t$e processes re.uired to
ensure t$at various elements of t$e project are properl' coordinated#
7# 'cope Management 6 Includes t$e processes re.uired to ensure
t$at t$e project includes all t$e work re.uired, wit$out additional andunnecessar' work, to complete t$e project successfull'#
9# /ime Management 6 Includes t$e processes re.uired to ensure
timel' completion of t$e project#
:% +ost Management 6 Includes t$e processes re.uired to ensure t$at
t$e project is completed wit$in t$e approved %ud"et#
;# .uality Management 6 Includes t$e process re.uired to ensure t$at
t$e project will satisf' t$e needs for w$ic$ it was undertaken#
-
7/23/2019 PPAC SESSION 1.ppt
46/76
B# =uman 0esource Management $Includes t$e processes re.uired to make
t$e most effective use of people involved in t$e project#
% +ommunications Management 6 Includes t$e processes re.uired to ensure
timel' and appropriate "eneration, collection, dissemination, stora"e, and
ultimate disposition of project information#G% 0is# Management $ Is t$e s'stematic process of identif'in", anal'(in", and
respondin" to t$e project task#
H# Procurement Management 6 Includes t$e processes re.uired to ac.uire t$e
"oods and services to attain project scope from outside t$e performin"
or"ani(ation#
-
7/23/2019 PPAC SESSION 1.ppt
47/76
)$e relations$ip %etween t$e five project mana"ement p$ases and
t$e nine knowled"e areas are depicted in t$e Fi"ure s$own %elow*
-
7/23/2019 PPAC SESSION 1.ppt
48/76
'oftware )evelopment Projects
-
7/23/2019 PPAC SESSION 1.ppt
49/76
Project Initiation, 0esource -llocation,
Idea *eneration and +reativity
3ise allocations of resources or wise capital e-penditure
decisions are t$e steppin" stones for an' or"ani(ation&s
success#
-% 0esource -llocation* Resource allocation is "enerall'
done at two levels* One, at t$e or"ani(ation or top level
and two, at t$e department level# At t$e top level, t$e
distri%ution of resources amon" various departments oradministrative units is considered# At t$e department level,
$ow t$e department or unit s$ould utili(e t$e resources
allocated to it is decided#
-
7/23/2019 PPAC SESSION 1.ppt
50/76
ii2 0esource -llocation at the )epartment5evel: If resources are allocated to different
departments of an or"ani(ation %ased on
formula, t$en t$e units $ave to t$ink of t$e %est
wa's to deplo' t$em# If allocation is %ased on
open competition or free %ar"ainin", units will
$ave to %e read' wit$ t$eir investment plans#
-
7/23/2019 PPAC SESSION 1.ppt
51/76
Anal'sis of its strate"ic a%ilities itself ma' often
lead t$e unit to t$e identification of areas w$ere
it can invest and w$ere it s$ould not# Identif'in"
investment alternatives can %e descri%ed in two
steps*6
1# 0nvironment anal'sis
7# !trate"ic capa%ilities anal'sis
-
7/23/2019 PPAC SESSION 1.ppt
52/76
8nvironment -nalysis:
Jarious tec$ni.ues are used to anal'(e t$e various
components or factors in t$e environment#
Pest and Porter&s five forces model is t$e %est to anal'(e
environment#
P8'/ -nalysis:
0nvironment is divided into four componentsK
1# Political factors
7# 0conomic factor
9# !ocio6cultural factor
:# )ec$nolo"ical factor
-
7/23/2019 PPAC SESSION 1.ppt
53/76
Porter>s Model: )$e PorterLs ; Forces tool is a simple %ut powerfultool for understandin" w$ere power lies in a %usiness situation# )$is
is useful, %ecause it $elps 'ou understand %ot$ t$e stren"t$ of 'our
current competitive position, and t$e stren"t$ of a position 'ouLre
lookin" to move into#
3it$ a clear understandin" of w$ere power lies, 'ou can take fairadvanta"e of a situation of stren"t$, improve a situation of
weakness, and avoid takin" wron" steps# )$is makes it an important
part of 'our plannin" toolkit#
Conventionall', t$e tool is used to identif' w$et$er new products,
services or %usinesses $ave t$e potential to %e profita%le# 5oweverit can %e ver' illuminatin" w$en used to understand t$e %alance of
power in ot$er situations too#
-
7/23/2019 PPAC SESSION 1.ppt
54/76
-
7/23/2019 PPAC SESSION 1.ppt
55/76
'trategic capabilities
analysis:1% 0esource -udit: )$e firm considers w$at all t$e resources availa%le to itare# Classif'in" w$erever possi%le into t$ose t$at are readil' availa%le and
t$ose t$at can %e o%tained w$en re.uired# ot$ .ualit' and .uantit' %ein"
consider#
?% 2alue +hain -nalysis: )$e value c$ain is a s'stematic approac$ toe-aminin" t$e development of competitive advanta"e# It was created %' M#
0# Porter in $is %ook, Competitive Advanta"e 1HG2# )$e c$ain consists of
a series of activities t$at create and %uild value# )$e' culminate in t$e total
value delivered %' an or"ani(ation# )$e Lmar"in& depicted in t$e dia"ram is
t$e same as added value# )$e or"ani(ation is split into Lprimar' activitiesL
and Lsupport activities#L
-
7/23/2019 PPAC SESSION 1.ppt
56/76
-
7/23/2019 PPAC SESSION 1.ppt
57/76
Primary -ctivities
Inbound 5ogistics
5ere "oods are received from a compan'Ls suppliers# )$e' are stored until t$e' are needed on
t$e production
-
7/23/2019 PPAC SESSION 1.ppt
58/76
'upport -ctivities
Procurement
)$is function is responsi%le for all purc$asin" of "oods, services and materials# )$e aim is to secure
t$e lowest possi%le price for purc$ases of t$e $i"$est possi%le .ualit'# )$e' will %e responsi%le for
outsourcin" components or operations t$at would normall' %e done in6$ouse are done %' ot$er
or"anisations2, and ePurc$asin" usin" I) and we%6%ased tec$nolo"ies to ac$ieve procurement
aims2#
/echnology )evelopment
)ec$nolo"' is an important source of competitive advanta"e# Companies need to innovate to reduce
costs and to protect and sustain competitive advanta"e# )$is could include production tec$nolo"',
Internet marketin" activities, lean manufacturin", Customer Relations$ip Mana"ement CRM2, and
man' ot$er tec$nolo"ical developments#
=uman 0esource Management @=0MA
0mplo'ees are an e-pensive and vital resource# An or"anisation would mana"e recruitment and selection, trainin" and development, and rewards and remuneration# )$e mission and o%jectives of t$e
or"anisation would %e drivin" force %e$ind t$e 5RM strate"'#
irm Infrastructure
)$is activit' includes and is driven %' corporate or strate"ic plannin"# It includes t$e Mana"ement
Information !'stem MI!2, and ot$er mec$anisms for plannin" and control suc$ as t$e accountin"
department#
-
7/23/2019 PPAC SESSION 1.ppt
59/76
Portfolio -nalysis
)$e 6+* matri aka #C## anal'sis, C6matri-, oston o-, oston
Matri-, oston Consultin" roup anal'sis2 is a c$art t$at $ad %een created
%' ruce 5enderson for t$e oston Consultin" roup in 1H to $elp
corporations wit$ anal'(in" t$eir %usiness units or product lines# )$is $elps
t$e compan' allocate resources and is used as an anal'tical tool in %rand
marketin", product mana"ement, strate"ic mana"ement, and portfolio
anal'sis#
Cash cows are units wit$ $i"$ market s$are in a slow6"rowin" industr'#
)$ese units t'picall' "enerate cas$ in e-cess of t$e amount of cas$ needed
to maintain t$e %usiness#
Dogs, or more c$arita%l' called pets, are units wit$ low market s$are in amature, slow "rowin" industr'# )$ese units t'picall' N%reak evenN,
"eneratin" %arel' enou"$ cas$ to maintain t$e %usinessLs market s$are#
-
7/23/2019 PPAC SESSION 1.ppt
60/76
Question marks also known as pro%lem c$ild2 are
"rowin" rapidl' and t$us consume lar"e amounts of
cas$, %ut %ecause t$e' $ave low market s$ares t$e' do
not generate much cash#
Stars are units wit$ a $i"$ market s$are in a fast6
"rowin" industr'# )$e $ope is t$at stars %ecome t$e ne-tcash cows
-
7/23/2019 PPAC SESSION 1.ppt
61/76
-
7/23/2019 PPAC SESSION 1.ppt
62/76
*eneration of Project ideas
)$is is possi%le t$rou"$ creativit', w$ic$ is
t$e a%ilit' to com%ine, or s'nt$esi(e t$e
availa%le information and e-perience to"enerate new project ideas# )$e two t'pes
of creativit' are*
+ Individual Creativit' and
+ roup Creativit'#
-
7/23/2019 PPAC SESSION 1.ppt
63/76
Individual +reativity:1# Attri%ute @istin" @istin" of attri%utes attac$ed to t$e final products and
desi"nin" t$e products %ased on t$ese attri%utes2#
7# C$ecklist C$ecklist of .uestions to %e prepared and tr'in" to find solutions
to t$e same2#
9# lack o- Availa%le and re.uired inputs as well as desired outputs are listed
and an attempt is made to envision $ow t$e outputs are possi%le from t$e
inputs2#
:# /irected /reamin" )$e pro%lem solver tries to "o to sleep w$ile t$inkin" of
t$e pro%lems, wit$ t$e $ope t$at t$e su%conscious will t$rou"$ up a solution2#
-
7/23/2019 PPAC SESSION 1.ppt
64/76
*roup +reativity:1# 6rainstorming A "roup sittin" to"et$er and "o on "eneratin"
solutions to t$e pro%lems on $and, welcomin" improvement of ideas and
s'nt$esi(in" two or more ideas2#
7# )elphi 0stimates are called from a panel of e-perts, w$o are not
allowed to meet and discuss or de%ate eac$ ot$er&s opinions# Individual
e-perts are asked to "ive t$eir opinions independentl'# A panel of
coordinators reconciles after second round of opinions and consensus2#
9# ominal *roup /echnique It is a structured tec$ni.ue administered
%' a coordinator %ased on t$e ; steps* !ilent idea "eneration, Round6
ro%in presentation, Idea classification, Jotin" and rankin", and
/iscussion of results# )$e ideas "enerated are ranked and t$e %est is
c$osen
-
7/23/2019 PPAC SESSION 1.ppt
65/76
Project 'creening* )$is is for prima facie turnin" down
t$ose project ideas, w$ic$ do not meet t$e %asic criteria ofpreliminar' appraisals# )$e projects are identified, primaril',
on t$e %asis of t$e knowled"e of t$e surroundin"s and t$e
internal !3O) anal'sis# In ot$er words,
+ selection and formulation of project ideas must %e matc$ed wit$
+ )$e promoters& personalit' traits, resources, and returns
+ Prero"atives of a nation socio6economic motifs2
+ alancin" t$e raw material crunc$
+ !tances of t$e present and future market+ Cost %enefit anal'sis considerin" t$e economies of scale
+ Risk6return vettin"
-
7/23/2019 PPAC SESSION 1.ppt
66/76
Project Identification
)$e ke' feature of t$is activit' is reco"ni(in" t$at identif'in" candidate
projects is somet$in" t$at an or"ani(ation s$ould do on a re"ular %asis,
not just once eac$ 'ear#
Process )escription
Project Identification is a repeata%le process for documentin",
validatin", rankin" and approvin" candidate projects wit$in an
or"ani(ation%
Process Purpose
/ue to t$e c$an"in" financial conditions wit$in t$e total or"ani(ation, it
is necessar' to esta%lis$ a sta%le process for approvin" projects for
initiation#
-
7/23/2019 PPAC SESSION 1.ppt
67/76
Process low
+80/I; 6&'I8'' +-'8
1# )ocument 6usiness +ase 0valuate all Candidate Project Information t$at $as
%een provided %' t$e re.uestin" or"ani(ation or t$at $as %een "at$ered %' a
tec$nical anal'st# If additional information is needed, issue an Information
Re.uest to t$e re.uester# Format t$is information into a usiness Case# Assi"n t$eCandidate Project a new Project Code#
7# 0eview 6usiness +ase )$e usiness Case will %e e-amined %' a screenin" %od'
wit$ t$e corporate aut$orit' to accept or reject a Candidate Project# 3$en a
usiness Case is accepted, t$e Candidate Project is captured in a repositor' for
rankin" and selection# If additional information is re.uired on a usiness Case,
note it as pendin" and issue an Information Re.uest to t$e re.uester# If ausiness Case is rejected, send t$e information to t$e re.uester wit$ an
e-planation for t$e rejection# Remain t$is information in a repositor'#
9# &pdate 6usiness +ase 3$en additional information is received on a Candidate
Project, o%tain t$e pendin" usiness Case from t$e repositor' and revise t$e data#
)$is usiness Case s$ould now %e reconsidered %' process#
-
7/23/2019 PPAC SESSION 1.ppt
68/76
0an# +andidate Projects 3$en re.uested, all Candidate Projects t$at
are in t$e repositor' s$ould %e o%jectivel' ranked in order of
si"nificance# )$e rankin" criteria s$ould include
1# )ar"et due dates
7# Impact on t$e total %usiness
9# Impact on t$e tec$nolo"' arc$itecture
:# Impact on ot$er applications
;# Project si(e, cost and duration
B# Project risk
-
7/23/2019 PPAC SESSION 1.ppt
69/76
8valuate 0esources An updated !kills Inventor' s$ould %e maintained for all
corporate usiness nit and Information )ec$nolo"' /epartment2 resources
t$at are availa%le for project assi"nment#
)etermine 0esource eeds ' evaluatin" t$e !kills Inventor' and t$e
Candidate Project repositor', t$is process will identif' anticipated re.uirementsfor .uantities and capa%ilities of future resources# )$is information will
provide
1# )$e identification of critical trainin" needs
7# A %asis for emplo'ment opportunities
9# Criteria for contract personal
)$is process s$ould %e reviewed on a re"ular %asis %' Resource Mana"ers
wit$in t$e or"ani(ation and can %e used for staff career counselin"#
-
7/23/2019 PPAC SESSION 1.ppt
70/76
-pprove Project
1# 'elect Project ased on t$e information provided %' t$e rankin" process, t$e Core
Process Owners of t$e %usiness will aut$ori(e a specific project for initiation# )$is project
s$ould now %e removed as a Candidate Project#
7# -ssign 0esources 0ven t$ou"$ a project $as %een selected, it does not %ecome an
active project until resources are approved and deplo'ed a"ainst it# It is critical to
remem%er t$at w$en resources are assi"ned from t$e !kills Inventor', t$is deplo'ment
$as a proportionate impact on t$e resource&s availa%ilit'# )$e or"ani(ation must %e ver'
careful to not over6commit limited resources in an attempt to look more productive#
-
7/23/2019 PPAC SESSION 1.ppt
71/76
=uestions
1# 3$ic$ of t$e followin" statement is true4
a# A project is an ad $oc activit' of t$e firm#
%# A project s$ould %e viewed as t$e main activit' of t$e
firm#
c# A project s$ould %e viewed as somet$in" t$at contri%utes
to t$e a%ilit' of t$e or"ani(ation
d# A project is a t$in" w$ic$ contri%utes to t$e a%ilit' of t$e
project mana"er#e# 8one of t$ese
-
7/23/2019 PPAC SESSION 1.ppt
72/76
7# 3$ic$ of t$e followin" is a correct se.uence of life c'cle
of a project4
a# Plannin", !election, !c$edulin", )ermination
%# !election, Implementation, !c$edulin", Monitorin",)ermination
c# Plannin", Implementation, Control, 0valuation
d# !election, !c$edulin", Implementation, 0valuation,
Control
e# Plannin", Implementation, !c$edulin", )ermination
-
7/23/2019 PPAC SESSION 1.ppt
73/76
9# 3$ic$ of t$e followin" factors call for t$e
project mana"ement4
a# Interdependencies amon" t$e activitiesundertaken %' various departments#
%# !$arin" of resources#
c# !i(e of task involved#d# ot$ a2 and %2 a%ove#
e# All of a2, %2 and c2 a%ove
-
7/23/2019 PPAC SESSION 1.ppt
74/76
:# /urin" w$ic$ sta"e of t$e life c'cle of a
project is t$e level of activit' $i"$est4
a# Conception and selection#%# Plannin" and sc$edulin"#
c# Implementation, monitorin" and control#
d# 0valuation#
e# )ermination#
-
7/23/2019 PPAC SESSION 1.ppt
75/76
;# 3$ic$ of t$e followin" is not considered w$ile
anal'(in" t$e %usiness environment as per
P0!) Model4
a# Forei"n trade re"ulations
%# /isposa%le income levels
c# @evels of education
d# 5uman resource mana"ement of t$e firm
e# Rates of o%solescence#
-
7/23/2019 PPAC SESSION 1.ppt
76/76