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Organizational Behaviour

1

Production and Operation
Management

DIRECTORATE OF DISTANCE & CONTINUING EDUCATION
Utkal University, Bhubaneswar-7, Odisha
Email: helpline@ddceutkal
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in
Website: www
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ac
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Name of the Study Material: Human Resource Management
ISBN : ……………………………………
...
Ullas Chandra Das
Dr
...
S
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Acharya
Dr
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R
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R
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Das

Year of Print: 2019
No
...
Office: E-77, South Ext
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1E/14, Jhandewalan Extension, New Delhi 110055
Sales Office: 81, Shyamlal Marg, Daryaganj, Delhi-110002
+91-8800697053, +91-011-47520129
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Organizational Behaviour

3

DIRECTORATE OF DISTANCE & CONTINUING EDUCATION
UTKAL UNIVERSITY, VANI VIHAR
BHUBANESWAR-751007

From the Director’s Desk
The Directorate of Distance & Continuing Education, originally established as the University
Evening College way back in 1962 has travelled a long way in the last 52 years
...
Increasingly the Open and Distance Learning institutions are aspiring to provide
education for anyone, anytime and anywhere
...
Nearly one lakh students have passed
through the portals of this great temple of learning
...
There are also flashes when our students figure
in best ten in their honours subjects
...

They must be enthusiastic, full of energy and confident of their future
...
We are sure that students would go
beyond the courseware provided by us
...
Please remember that only a busy person has time for everything and a lazy
person has none
...
By choosing to pursue a course in distance mode, you have made a commitment for
self-improvement and acquiring higher educational qualification
...
Every student must go beyond the standard books and self-instructional course
material
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As only limited number of classes will be held, a student should
come to the personal contact programme well prepared
...
This can only happen if you read the course material before PCP
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It is very important that one should discuss the
contents of the course materials with other fellow learners
...

DIRECTOR

4

Introduction to Organizational Behaviour

Organizational Behaviour

5

PRODUCTION AND OPERATION MANAGEMENT
CONTENTS
Page No
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0 Objectives
1
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2 Production Management
1
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4 Production System
1
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6 Benefits of Production Management
1
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8 Decisions of Production Management
1
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10 Self Assessment Questions

1
...




Introduction of production management
...




Production system
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

Benefits of production management
...




Decisions of production management
...
1 INTRODUCTION
Product is the primary factor for all consumers in a market
...
If a consumer is not satisfied with the product it becomes meaningless for
the producer who produces the product
...
The production
function of a business is concerned with creation of either a product or a service required to satisfy
a consumer need in the market
...
So production management is a separate branch of management which deals with the
production of goods and services for the effective utilisation of consumers in the market
...
Production function refers to
creation of goods and services in order to satisfy human needs by converting resources into
outputs
...

Production function can be effective when it satisfy the (A) the consumer demand relating to
quality, quantity and price (B) permit the production activity in an economical manner so that
return in investment can be possible
...


1
...
It ensures accomplishment of twin
organisational objectives of production and satisfaction
...
Production
management is the process of effectively coordinating and controlling the factors of production
such as man, machine, material, money and management in order to get satisfaction out of the
product
...
While the input is transferred into output
various types of utility are created
...


Form Utility: When the input is changed in size, weight, colour, shape and form while
converting into output for the benefit of the customers in the market it has form utility
...


2
...
(Sugarcane to
the factory for sugar production)

3
...
(Potato &
Tomato in cold storage)

4
...
(
Doctors for the patient , lawyers for the clients, teachers for the students)

5
...
(Advertisement for
a product or service)

1
...


Production Planning and Development: It is related to the activity of evolution of new
product and design it according to the specification of department in order to satisfy large
number of consumers in the market
...


Production Administration: It deals with basic three activities that is (A) Production
planning, (B) production engineering,(C) production control
...
Production management system
directly depends on this scope
...


Implementation Function: It refers to the activity of execution of plan, policies and
decisions
...


4
...


1
...
Where input refers to utilisation of men, material, machine, money,

Introduction to Production Management
minute and methods
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Output is the product service which in other means the final product as
per specifications
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Manufacturing control system is the inventory
and plant location measures for an effective and in time production system
...

Production system includes all those operations by which the input can be converted into output
for a desired product or a service
...
Hence according to some authors production system is otherwise
known as operation system so as production management can be referred as operations
management
...
5 TYPES OF PRODUCTION
Production can be divided into three categories
...
Considering this type of production
can be:
1
...

Under this category production is running in a sequence
...
Time taken in each operation can be maintained by utilising update and
more machines in order to have steady flow of operation
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The merit of this production is in each production
operation there can be strict check and measure in input and output too
...

Example: Motor Car
...


Batch Production: Where there is less scope of flow production that is sequence of
production is not available in those production organisations batch production is more suitable
type of production
...
This is
called batch production
...
In order to smooth the production process different machines can be used for each
batch and the quality in each batch can be measured properly
...

Example: Pressing in one area, milling in other area, colour in other area etc
...


Unit Production: This is a type of production where there is a specific order from the
customer
...
This type of production undertaken by the organisation considering the demand of
the customers for that product
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Most of the production
organisation does not prefer unit production due to its cost and in most of the cases it is not a
regular production process
...


1
...


The Consumer: The benefit of production goes primarily to the customer
...
A good production management system helps the

9

Notes

10

Production and Operation Management
customer from higher productivity, better and reliable quality, reasonable price, satisfactory
service and timely delivery of goods and services
...


Notes
2
...
Higher remuneration, job security, stable employment opportunity, better
working condition as well as job satisfaction can be possible when there is more and more
production in a systematic manner
...
On the other hand high employee morale due to job satisfaction provides higher
output
...


The Investor: Maximum return on investment is the objective of each and every investor
...
More productivity ensures
higher value in market in terms of security and asset value which is one of the benefits for the
investors
...


The Supplier: Most of the large, small and medium companies depend on the suppliers in
terms of raw material, machine components, and allied services during the course of
production
...
A good
production management system ensures that intercommunication and mutual confidence
among the producer and supplier can be better
...


5
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More timely production of goods and services in better quality ensures community
satisfaction which leads to the society will benefit out of that
...
Economic prosperity leads to social prosperity and social prosperity
leads to all round development in the society
...
7 RESPONSIBILTY OF A PRODUCTION MANAGER
Generally a production manger is in charge of a production organisation
...
The responsibilities are mentioned below:
1
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It is meant f or
the customers in the market
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A product should be qualitative, low price, reliable, easy availability, smooth delivery, easy
handling, after sales service and have good and long performance
...


2
...
While dealing with the plant it includes building, equipments, machinery and the
other related aspects of the plant
...
While dealing with the plant the production manager should be cautious
about the maintenance of the machinery and equipments, safety in installation of machinery,
operational efficiency of the equipments and environmental protection
...


Process: It includes the manufacturing process
...
A finished product can be available with input
converted into semi finished product and a semi finished product can be converted into
finished product
...
In this process it is the duty of the
production manager is look into the type of production, the number of process it needs, layout
of the product, safety in each operation and the cost involved in each operation
...


Programs: It includes the production schedule
...
The schedule of production can be decided in advance so that the production

Introduction to Production Management
process will continue smoothly
...

5
...
The people aspect
of a production manager is the skill, knowledge and expertise of the workmen, intelligence of
the managerial personnel which is crucial and critical for a qualitative product
...

Both labour and managerial people must be effective in delivering the product in time so that
the financial viability of the production organisation can be sustainable
...

(b) To ensure the exact date and time of delivery of the product of the consumers in the market
...

(d) To ensure the desired quality of the product by taking into liking and disliking of the
customers in the market
...

(f) To maintain desirable level of raw material so that the production process will not hamper
...

(h) To look into maximum return on profit for the organisation
...

(j) To ensure environmental protection in production of the product
...

(l) To maintain good relation with the competitors in the market in terms of quality of the
product
...
8 DECISIONS OF PRODUCTION MANAGEMENT
The decisions of a production management system have been classified into three basic categories
...


Strategic Decisions: When a decision related to long term importance of a production
organisation it is called as strategic decision
...
This type of
decision is concerned for a long range production strategy relating to product and production
process so that maximum product can be available in minimum time period with a low cost of
production
...

(b) Decision to change the production process of the product
...

(d) Establishment of new facility in production unit for the future
...


Operating Decisions: When the decisions are made to meet the day to day operations of the
production unit in order to meet the demands of consumers in the market it is regarded as
operating decision
...
Some of the operational decisions are:

Notes

(a) Decision to maintain desired level of raw material for each production process
...

(c) Deployment of skilled and unskilled labour force for the production purpose in each unit
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(e) Decision for the terms and conditions of payment of finished product
...


Control Decision: This is a managerial decision of production unit
...
When some measures are taken for the use of men, machine, material and
money for an effective use of resources so that the cost of production can be minimum at a
particular time period
...
Some of the control
decisions are:
(a) Decide the action to be taken for the failures of a particular department
...

(c) Decision for a changed quality control measure in order to improve the quality of the
product according to the demand of the consumers
...

(e) Steps to be taken in order to increase quality of the product so that the cost of the product
can be competitive in market
...
The primary aim of the above decisions is to
produce maximum product with a minimum cost in order to increase profitability
...
9 SUMMARY
Production and operations management can be defined as conversion of input into output
according to demand of the consumers in the market
...
Production function refers to creation of various
utility in order to satisfy large number of consumers in the market
...
There
are different type of production which can be utilised by the production unit in order to have
quantitative and qualitative production
...
The duties and responsibilities of a production manager is to look after
plant, product, process, program and people so that the product can be available in time in a
desirable cost
...
The decisions
are strategic decisions, operational decisions and controlled decisions which can help the
production manager in order to produce qualitative product with a low cost
...
10 SELF ASSESSMENT QUESTIONS
Short Type Questions
1
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2
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What do you mean by place utility?

4
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5
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6
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7
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8
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9
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10
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Essay Type Questions
1
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2
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3
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4
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Do you
agree? Justify your statement
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Narrate the different types of decisions taken by a production manager
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0 Objectives
2
...
1
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2 Objectives of Production Planning and Control
2
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4 Functions/scope of production planning & Control
2
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6 Factors Affecting Production Planning and Control
2
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8 Making the Production Plan
2
...
10 Manufacturing Planning and Control System
2
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12 Summary
2
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14 References

2
...




Identify the functions of Production Planning and Control (PPC)
...




Understand the role of PPC in manufacturing Industry
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2
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e
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Production is an organized activity of converting raw materials into useful
products
...
It has to
see that production process is properly decided in advance and it is carried out as per the plan
...
This conversion
process involves a number of steps such as deciding what to produce, how to produce, when to
produce, etc
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Merely deciding about the task is
not sufficient
...
Production
Manager will have to see that the things proceed as per the plans
...
Both planning and control of production are
necessary to produce better quality goods at reasonable prices and in a most systematic manner
...
It may be said to be a technique of forecasting ahead every

Production Planning and Control
step in the long process of production, taking them at a right time and in the right degree and
trying to complete the operations at maximum efficiency
...
Control facilitates the task of manufacturing and
sees that everything goes as per the plans
...
Carson: “Production planning and control involves generally the organization and
planning of the manufacturing process
...
The ultimate objective is the organization of the supply and
movement of materials and labour, machine utilization and related activities, in order to bring
about the desired manufacturing results in terms of quantity, time and place
...
Lundy: “Basically, the production control function involves the co-ordination and
integration of the factors of production for optimum efficiency
...
The job can be done formally in which case elaborate charting and filing techniques are
used; or it can be done informally, with individuals’ thoughts and retention there of supplanting
tangible aids
...
Koepke: “Production planning and control is the coordination of a series of functions
according to a plan which will economically utilize the plant facilities and regulate the orderly
movement of goods through the entire manufacturing cycle, from the procurement of all materials
to the shipping of finished goods at a predetermined rate
...
1
...


It is the planning and control of manufacturing process in an enterprise
...
? —are decided and acted upon for getting good results
...


All types of inputs like materials, men, machines are efficiently used for maintaining
efficiency of the manufacturing process
...


Various factors of production are integrated to use them efficiently and economically
...


The manufacturing process is organized in such a way that none of the work centre is either
overworked or under worked
...


5
...


2
...
Whatever is planned needs to be controlled
...

The following points will bring out the objectives of production planning and production control:

Production Planning
1
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2
...


3
...


4
...


5
...


6
...


15

Notes

16

Production and Operation Management

Notes

Production Control
1
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2
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3
...


4
...


5
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2
...


Planning Phase

2
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Control Phase

Planning Phase
Planning is an exercise of intelligent anticipation in order to establish how an objective can be
achieved or a need fulfilled in restrictive circumstances
...


Prior planning

2
...


Prior Planning
Prior planning means pre-production planning
...

Modules
The modules of prior planning are as follows:
1
...
At the
design stage, one has to take several aspects of design like, design for selling, design for
manufacturing and design for usage
...


Forecasting is an estimate of demand, which will happen in future
...
Given the
sales forecast, the factory capacity, the aggregate inventory levels and size of the work force,
the manager must decide at what rate of production to operate the plant over an intermediate
planning horizon
...


Aggregate planning aims to find out a product wise planning over the intermediate planning
horizon
...


Material requirement planning is a technique for determining the quantity and timing for the
acquisition of dependent items needed to satisfy the master production schedule
...
Tools
planning, Loading, Scheduling etc
...


Process planning and routing is a complete determination of the specific technological process
steps and their sequence to produce products at the desired quality, quantity and cost
...
Routing in particular

Production Planning and Control
prescribes the flow of work in the plant and it is related to the considerations of layout,
temporary locations for raw materials and components and materials handling systems
...


A material planning is a process which determines the requirements of various raw
materials/subassemblies by considering the trade-off between various cost components like,
carrying cost, ordering cost, shortage cost, and so forth
...


Tools’ planning determines the requirements of various tools by taking process specification
(surface finish, length of the job, overall depth of cut etc
...
) and equipment
specifications (speed range, feed range, depth of cut range etc
...


Loading is the process of assigning jobs to several machines such that there is a load balance
among the machines
...


5
...
This fixes the starting as well as the finishing time for each job
...
Dispatching is the transition from planning phase
to action phase
...
The tasks
which are included in dispatching are job order, store issue order, tool order, time ticket,
inspection order, move order etc
...
Stores
issue order gives instruction to stores to issue materials for manufacturing the product as per
product specifications
...
Time ticket is nothing but a card which is designed
to note down the actual time taken at various processes
...


Control Phase
The control phase has the following two major modules:
1
...
Also, it helps to make comparison with the present level of performance
...
, are collected and analyzed for the purpose of
progress reporting
...


Corrective Action: The tasks under corrective action primarily make provisions for an
unexpected event
...
Due to unforeseen reasons such as, machine breakdown, labour
absenteeism, too much rejection due to poor material quality etc
...
Under such condition, it is better to reschedule the whole
product mix so that we get a clear picture of the situation to progress further
...
4 FUNCTIONS/SCOPE OF PRODUCTION PLANNING & CONTROL
The following points explains the scope of Production Planning and Control
1
...
Inventory control & regular supply of materials should be guaranteed
...


Manpower: It is important to carry out manpower planning to maintain operational &
managerial staff possessing requisite skills & expertise
...


Methods: It is always desirable to consider all the available alternatives & select the best
method of processing
...


Machines & equipments: The choices of manufacturing methods depend on available
production facilities & utilization of plant, machines equipments
...


Routing: The routing function specifies what work is to be done where & when it is to be
performed
...


Estimating: it involves establishing performance standard of each work after duly analyzing
operation sheets
...


7
...
Machine loading generates accurate information on work standard,
scrap allowances, machine-time requirements & machine capacities
...


8
...


9
...


10
...

11
...

12
...


2
...
This objective can be approached if the amount of work scheduled for the factory
or department is equal or slightly greater than the production cycle
...
Optimum operation of the plant is attained only if
the original plan has been carefully prepared to utilize the manufacturing facilities fully and
effectively
...
Changes in market conditions, manufacturing
methods, etc
...


2
...


Market Forecast: It will indicate future trends in demand for manufactured products
...


2
...
Variation or
changes in sales order will drastically affect production planning and control
...


Standard Process Sheet: It is prepared by process engineering group or process owner and it
is the source of basic data which may include type of machine to be used, time required for
processing, etc
...
g
...


4
...


Production Planning and Control
5
...
The best known methods are Critical Path
Method (CPM) and Program Evaluation and Review Technique (PERT)
...
Schedules should reflect the temporal relationships
between activities and the capacity limitations of a set of shared resources
...
The high re-planning frequency in order to overcome the uncertainty induces the system
nervousness
...

The following critical points can be considered in Master Production Schedule:


Frequent changes in MPS result in due-date changes in open orders, quantity and timing for
planned order of end products
...




Unexpected changes in MPS effect that materials, needed for a particular order may not be
available
...


The following questions can be considered while scheduling MPS:


How to make initial MPS that is as feasible as possible?



How to limit the number of re-planning activities?



How to be reactive to disturbances in materials flow?



How to provide planners with accurate information about material resources available which
often lead to bloated inventory and in accurately promised delivery dates to the customers?

2
...




Capacity is the capability of manufacturing to produce goods and services (deliverables)
...


2
...
The production plan sets the general
levels of production and inventories over the planning horizon
...
The plan must extend far
enough in the future to plan for the labour, equipment, facilities, and material needed to
accomplish it
...
Manufacturing is concerned more with the

19

Notes

20

Production and Operation Management

Notes

demand for the specific kinds of capacity needed to make the products than with the demand
for the product
...
It means having the resources available
to satisfy demand
...
The demand for goods must be translated into the
demand for capacity
...
Usually the following can be
varied to adjust capacity:
People can be hired and laid off, overtime and short time can be worked, and shifts can be
added or removed
...
Work can be subcontracted or extra equipment leased
...

(d) Three or four basic strategies can be used in developing a production plan:


Chase (demand matching) strategy – producing the amount demanded at any given time
...




Production levelling – continually producing an amount equal to the average demand
...
Production levelling means the company will use its
resources at a level rate and produce the same amount each day it is operating
...
The disadvantage is that inventory builds up during periods of low
demand
...
Costs associated with excess capacity are
avoided, and because production is levelled, there are no costs associated with changing
production levels
...




Hybrid strategy – is a combination of the other three strategies
...


(e) The objective in developing a production plan is to minimize the costs of carrying inventory,
changing production levels, and stocking out (not supplying the customer what is wanted
when it is wanted)
...

(f) Make-to-Stock Production Plan: Products are made and put into inventory before an order is
received
...
Make to stock when demand is fairly
constant and predictable, there are few product options, delivery times demanded by the
marketplace are much shorter than the time needed to make the product, and product has a
long shelf life
...

(h) Make-to-Order Production Plan: Wait until an order is received from a customer before
starting to make the goods
...
The backlog will be for delivery in the future

Production Planning and Control
and does not represent orders that are late or past due
...

(i) Assemble to order: Where several product options exist and where the customer is not willing
to wait until the product is made, manufacturers produce and stock standard component parts
...
Since the
components are stocked, the firm needs only time to assemble before delivering the product
...
To make a production plan, one will need a
forecast by period for the planning horizon, an opening backlog of customer orders and
desired ending backlog
...

(k) Resource Planning: Once the preliminary production plan is established, it must be compared
to the existing resources of the company
...

(l) Resource bill shows the quantity of critical resources (materials, labor, and “bottleneck”
operations) needed to make one average unit of the product group
...
9 PROCESS PLANNING
Well, one can say it is the process of planning for manufacturing and the realization of a product
according to a product specification
...
Basically it
should describe the product in great detail
...
This product specification is needed because you may want to send it to
manufacturing companies that should produce parts of the product
...

The process plan is basically a plan of how your parts will be produced, what machines to use and
in what order, to achieve the correct tolerances etc
...
Process planning is often seen as the interface
between design and manufacturing stages
...
If you only produce a small
quantity of the final product you perhaps can put down very much detail and perhaps create very
fine tolerances on the components since you have time to do it, basically you can check and
recheck the important components until they are perfect
...


2
...
Each level varies in
purpose, time span (planning horizon), level of detail, and planning cycle (frequency)
...
It is based on long-range forecasts and provides a framework that sets the goals
and objectives for further planning by marketing, finance, engineering and
production/operations
...
It is concerned with general market and
production requirements
...




Production Plan: Given the objectives set by the strategic business plan, production
management is concerned with the quantities of each product group or family that must be
produced in each period, the desired inventory levels, the resources of equipment, labour, and
material needed in each period, and the availability of the resources needed
...
The planning horizon is
usually six to 18 months and is reviewed perhaps each month or quarter
...
It
breaks down the production plan to show, for each period, the quantity of each end item to be
made
...
The level of detail for the MPS is higher than for
the production plan
...
Master scheduling
describes the process of developing a master production schedule; the term master production
schedule is the end result of the process
...




Material Requirements Plan (MRP): is a plan for the production and purchase of the
components and/or services used in making the items in the MPS
...
The level of detail is high
...




Purchasing and Production Activity Control (PAC): represents the implementation and
control phase (execution phase)
...
PAC is responsible for planning and controlling the
flow of work through the factory
...




Capacity Management: At each level in the manufacturing planning and control system, the
priority plan must be tested against the available resources and capacity of the manufacturing
system
...
If the capacity cannot be
made available when needed then the plans must be changed
...
SOP is a cross-functional
business plan that involves sales and marketing, product development, operations, and senior
management
...
The SOP is the
forum in which the production plan is developed and a dynamic process in which the
company plans are updated on a regular basis, at least monthly
...
5 and the
benefits listed above
...
This fully integrated planning and control
system is called a manufacturing resource planning, or MRP II, system
...




Enterprise Resource Planning (ERP): is an accounting oriented information system for
identifying and planning the enterprise---wide resources needed to make, ship, and account
for customer orders
...


Production Planning and Control

2
...
Production
system is basically concerned with taking inputs of capital, labour, order, materials and using the
first two to transform material to satisfy orders
...
Without
planning nothing is completed within the required time
...

Production Planning and Control (PPC) department in any industry has to do all planned
responsibility
...
So every textile and
apparel company should have a self-sufficient and high-performance department called
“Production Planning & Control”
...


Taking orders from marketing division
...


Analyzing the orders & feeling the requirements of customer
...


Planning for production
...


Cost analysis & lead time
...
It may change according to the type of order
...
Then some steps are
omitted from the planning procedure
...


Taking orders from marketing division: Order collect from the buyer with the details
information (Art work, technical sheet) is the first and principle task in textile and apparel
industry
...


2
...
This section analyzes the orders according to buyers, Order
Quantity, type of orders (i
...
type of fabric, colour to be dyed etc
...
, Cost of
garments per dozen, Determination of production time and delivery date
...
to use, no of M/C
...
This section plans for
required quantity of fabric need to be dyed
...


3
...
Every functions of
production are includes in planning
...
The quality objectives are defined at
organizational and functional levels in measurable term
...

The Quality Objectives of an industry is defined to develop the following areas:

4
...




To implement the required systems
...




To maintain infrastructural tasks accurately
...




To obtain a production-line with minimal errors & corrective actions
...
Cost Analysis
worksheet will help you to determine how to price your products
...


23

Notes

24

Production and Operation Management

Notes

2
...
Though no production control function can be entirely eliminated, the least control
that results in effective operation of the factory is the best control
...
The objective is not an
elaborate and detailed system of controls and records, but rather, the optimum operation of the
plant for maximum profits
...


2
...


Define production planning system
...


What is production planning and control?

3
...


Explain the benefits of production planning and control to a manufacturer
...


Explain how society is benefited out of production planning and control
...


Explain various stages of production planning and control
...


Describe the functions of production planning and control
...


Explain various factors affecting production planning and control
...


Narrate the different types of decisions taken by a production manager while formulating a
production plan
...


Describe the role of production planning and control in a manufacturing unit
...
14 REFERENCES


D
...
Towill, “The Seamless Supply Chain”, International Journal of Technology
Management, Volume 13, 1997
...
E
...
Favetto, “Understanding the complexity of Master Production Scheduling
Optimization”, Proceedings of the 18th ICPR, Salerno, Italy, 2005
...
D
...
Guide, R
...


Project Management

UNIT 3

PROJECT MANAGEMENT

Structure
3
...
1 Introduction
3
...
3 Approaches
3
...
5 Types of Project Management
3
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
6
...
7 Innovation Management
3
...
1
Function and Intention of Innovation Management
3
...
2
Classifications in Innovation Management
3
...
3
The 8 Phases of an Innovation Management Process
3
...
4
Uses of Innovation Management
3
...
9 Self Assessment Questions

3
...




Identify the functions of Production Planning and Control (PPC)
...




Understand the role of PPC in manufacturing Industry
...


3
...
Two forefathers of project management are
Henry Gantt, called the father of planning and control techniques, who is famous for his use of the

25

Notes

26

Production and Operation Management

Notes

Gantt chart as a project management tool and Henri Fayol for his creation of the five management
functions that form the foundation of the body of knowledge associated with project and program
management
...
His work is the forerunner to modern project management tools including
work breakdown structure (WBS) and resource allocation
...
- all are examples of projects
...
2 MEANING OF PROJECT MANAGEMENT
A project is an organized endeavour to accomplish a specified non-repetitive task
...


Project Life Cycle
A project passes through a life cycle that depends on the size and complexity of the project
...

1
...

The organization is requested to propose a plan to perform a project for a customer
...


Project Initiation: Initiation is the second phase of the project lifecycle
...
Project managers typically use two evaluation
tools to decide whether or not to pursue a project:
Business Case Document: This document justifies the need for the project, and it includes an
estimate of potential financial benefits
...
It balances the requirements of the project with available
resources
...


Project Planning: Once the project receives the green light, it needs a solid plan to guide the
team, as well as keep them on time and on budget
...
The project
plan gives the team direction for producing quality outputs, handling risk, creating
acceptance, communicating benefits to stakeholders and managing suppliers
...


4
...
Execution is all about building deliverables that satisfy the customer
...

Execution relies heavily on the planning phase
...


5
...
As teams execute their project plan, they
must constantly monitor their own progress
...

This constant vigilance helps keep the project moving ahead smoothly
...


Project Closure: Teams close a project when they deliver the finished project to the customer,
communicating completion to stakeholders and releasing resources to other projects
...

Although project management may seem overwhelming at times, breaking it down into these
five distinct cycles can help your team manage even the most complex projects and use time
and resources more wisely
...


Integration

2
...


Time

4
...


Quality

6
...


Human resources

8
...


Risk management

10
...
But project management brings a unique focus
shaped by the goals, resources and schedule of each project
...
3 APPROACHES
There are a number of approaches to organizing and completing project activities, including:
phased, lean, iterative, and incremental
...




Process, the overall approach to all activities and project governance
...




Power, Projects are which describes all lines of authority, decision-makers, organisations,
policies for implementation and the likes
...


Phased Approach
The phased (or staged) approach breaks down and manages the work through a series of distinct
steps to be completed, and is often referred to as "traditional or "waterfall"
...
For example, when working on a brick-and-mortar
design and construction, projects will typically progress through stages like pre-planning,
conceptual design, schematic design, design development, construction drawings (or contract
documents), and construction administration
...

Project planning generally consists of


determining the project management methodology to follow (e
...
whether the plan will be
defined wholly up front, iteratively, or in rolling waves);



developing the scope statement;



selecting the planning team;



identifying deliverables and creating the product and work breakdown structures;



identifying the activities needed to complete those deliverables and networking the activities
in their logical sequence;



estimating the resource requirements for the activities;



estimating time and cost for activities;



developing the schedule;



developing the budget;



risk planning;



developing quality assurance measures;



Gaining formal approval to begin work
...

For new product development projects, conceptual design of the operation of the final product
may be performed concurrent with the project planning activities, and may help to inform the
planning team when identifying deliverables and planning activities
...
In order to maintain budget,
scope, effectiveness and pace a project must have physical documents pertaining to each specific
task
...
To go along with that, documentation provides information regarding what has already been
completed for that project
...
In most cases, documentation is the most
successful way to monitor and control the specific phases of a project
...
If
performed correctly documentation can be the backbone to a project's success
...
The key benefit is that project
performance is observed and measured regularly to identify variances from the project
management plan
...
) against the project management plan
and the project performance baseline (where we should be);



Identifying corrective actions to address issues and risks properly (How can we get on track
again);



Influencing the factors that could circumvent integrated change control so only approved
changes are implemented
...

Project maintenance is an ongoing process, and it includes


Continuing support of end-users



Correction of errors



Updates to the product over time

Monitoring and Controlling Cycle
In this stage, auditors should pay attention to how effectively and quickly user problems are
resolved
...
It is important not to lose sight of the initial goals and targets of the projects
...
Successful project management identifies these components, and tracks and monitors
progress so as to stay within time and budget frames already outlined at the commencement of the
project
...

Administrative activities include the archiving of the files and documenting lessons learned
...



Contract closure: Complete and settle each contract (including the resolution of any open
items) and close each contract applicable to the project or project phase
...
This is a vital phase of the project
for the project team to learn from experiences and apply to future projects
...


3
...
It implements verification and controlling function during the
processing of a project in order to reinforce the defined performance and formal goals
...
The following methods of project controlling can be applied:


investment analysis



cost–benefit analysis



value benefit analysis



expert surveys



simulation calculations



risk-profile analysis



surcharge calculations



cost trend analysis



target/actual-comparison

Project control is that element of a project that keeps it on track, on-time and within
budget
...
Projects
may be audited or reviewed while the project is in progress
...
An examination may
include a comparison of approved project management processes with how the project is actually
being managed
...
If project control is not
implemented correctly, the cost to the business should be clarified in terms of errors and fixes
...
In addition, auditors should consider how important the projects are to
the financial statements, how reliant the stakeholders are on controls, and how many controls
existing
...
The process of development and the quality of the final product may also be
assessed if needed or requested
...
An auditor can serve
as a controls consultant as part of the development team or as an independent auditor as part of an
audit
...
These help assure systems are
developed successfully
...

A good formal systems development plan outlines:


A strategy to align development with the organization's broader objectives



Standards for new systems



Project management policies for timing and budgeting



Procedures describing the process



Evaluation of quality of change

Characteristics of Projects
There are five important characteristics of a project
...


It should always have a specific start and end dates
...


They are performed and completed by a group of people
...


The output is delivery on unique product or service
...


They are temporary in nature
...


It is progressively elaborated
...


Project Complexity
Complexity and its nature play an important role in the area of project management
...
As it is considered
that project complexity and project performance are closely related, it is important to define and
measure complexity of the project for project management to be effective
...
It focuses on three important goals: time, quality and budget
...


Project Management
For each type of project management, project managers develop and utilize repeatable templates
that are specific to the industry they're dealing with
...


Lean Project Management
Lean project management uses the principles from lean manufacturing to focus on delivering
value with less waste and reduced time
...
The cone of uncertainty explains some of this as the planning made on the initial
phase of the project suffers from a high degree of uncertainty
...

These complexities are better handled with a more exploratory or iterative and incremental
approach
...
Critical chain project management (CCPM) is an
application of the theory of constraints (TOC) to planning and managing projects, and is designed
to deal with the uncertainties inherent in managing projects, while taking into consideration
limited availability of resources (physical, human skills, as well as management & support
capacity) needed to execute projects
...
Applying the first
three of the five focusing steps of TOC, the system constraint for all projects, as well as the
resources, are identified
...
Finally, projects are planned and managed to ensure that the resources are
ready when the critical chain tasks must start, subordinating all other resources to the critical
chain
...
As such, it
defines a successful project as output-oriented rather than activity- or task-oriented
...
Unlike SEI's CMM,
the OPM3 maturity model describes how to make project management processes capable of
performing successfully, consistently, and predictably in order to enact the strategies of an
organization
...
The Project production management framework is based on a project as a
production system view, in which a project transforms inputs (raw materials, information, labour,
plant & machinery) into outputs (goods and services)
...
This can help to redu

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