DIFFERENCE BETWEEN A FUNCTIONAL MANAGER AND A PROJECT MANAGER FUNCTIONAL MANAGER 1. 2. 3.
4. 5.
6. 7. 8.
He is in-c in-cha harg rgee of of a firm firm’s ’s fun funct ctio iona nall dep depts ts.. Suc Such h as as mark market etin ing, g, engg., or finance. They They are are mor moree ski skill lled ed at anal analys ysis is.. Suc Such h hea heads ds are are spec specia iali list stss in in certain areas only. They They are are ana analy lyti tica call in in app appro roac ach h (bre (break akin ing g the the sys syste tem m int into o smal smalle ler r and smaller elements) and they know something abt. the operation for which they are responsible. In case case of of any any diff diffic icul ulty ty,, the they y kno know w how how to to ana analy lyze ze and and atta attack ck it. it. They They are are adm admin inis istra trati tive vely ly res respo pons nsib ible le for for dec decid idin ing g how how som somet ethi hing ng will be done, who is going to do it, and what resources will be devoted to accomplish a task. He is a direct rect,, tec techn hnic ical al super uperv visor. sor. He shou should ld have have know knowle ledg dgee in the the tec techn hnol olog ogy y of of the the proc proces esss bein being g managed. The The FM FM can canno nott all allow ow the the PM PM in in tak takin ing g con contr trol ol of the the tec techn hnic ical al decisions in the functional areas or to control the assignment of the functional area personnel.
PROJECT MANAGER 1. A PM starts starts his career career as a speci specialist alist in some field, field, later later on being being promoted to some higher higher post. 2. He is requi required red to be be more more skilled skilled at synthesis synthesis.. 3. The PM uses a system system approach approach i.e. understand understanding ing the organiza organizationa tionall problem, for which the project project is a part, the organization organization for which the program exists, as well as the environment environment of the organization. organization. 4. The PM is is a facilitat facilitator or and and general generalist. ist. 5. He should should be competen competentt in the science science of project project along along with with having having the technical competence in some aspects. 6. He is responsible responsible for organizin organizing, g, planning, planning, budgeting budgeting,, directing, directing, planning, and controlling controlling the project. project. Economic Analysis: 1) Economic Economic analysis analysis is also also referred referred to as social social cost benefit benefit analysis.
2) It is concerned concerned with with judging judging the project project from a large social social point of view. 3) The focus focus is on the social social costs costs and benefit benefitss of a project project that may often be different from its monetary costs and benefits. 4) The questio questions ns that are sought sought to be be answered answered in this this social cost cost benefit analysis are: a. What are are the the direct direct economi economicc benefits benefits and and costs costs of the the project measured in terms of shadow shadow prices and not in terms terms of market prices? b. What would be the impact impact of the project on the the distribution of income in the society? c. What would would be the impact impact of the the project project on on the level level of of savings and investment in the society? d. What would would be be the contri contributio bution n of the projec projectt towards towards the fulfillment of certain merit wants like self-sufficiency, employment & social order?
Management Management Design Design is the meaningful representation of something that is to be built. In the project management concept design focuses on 4 major areas: 1. Data 2. Architecture 3. Interfaces 4. Components Project Design is the first of the 3 technical activities that are required to build and verify the software. software. 1. the data design transforms the information information crea create ted d duri during ng anal analys ysis is into into the the data data stru struct ctur uree that that will will be requ requir ired ed to implement the software. The data objects and relationship defines in the ER diagram and the detail data contents depicted in the data dictionary provides the the basi basiss in data data desi design gn acti activi vity ty.. 2. the the arch archit itec ectu ture re desi design gn defi define ness the the relationship between the structure elements and the design platforms that can be used to achieve the requirements that have been designed for the system. 3. The interface design describes how the software communicates with itself and the system and interface implies a flow of information and the spec specif ific ic type type of beha behavi vior or.. 4. the the com compo pone nent nt leve levell des desig ign n tran transf sfor orms ms the the structural elements of the software architecture into a procedural description of software component. PROJECT TERMINATION
A project is said to be terminated when work on the substance of project has seized or slowed to the point that further progress on the project is no longer possible. Following Following are the types of termination:
1. Termination Termination by extinctio extinction: n: The project project is stopped. stopped. It may end because because it has achieved achieved its goal. goal. Like Like the the new product product has has been been develo developed ped and handed handed ove overr to the the client client or or s/w has has been been insta installe lled d and is is runni running. ng. The The project may also be stopped because it is unsuccessful. For eg: If a medicine is prepared for a disease but selling at higher rate and in the marke markett there there are other other medici medicines nes at lower lower rate rate for same diseas diseasee then then launching of this new medicine may not benefit and this project may be carried on further. 2. Terminatio Termination n by addition: addition: Most projects projects are inhouse i.e. carried carried out by project team for the use in parent organization. If a project is a major success it is terminated by the parent organization. For eg: Suppose the Maths Maths dept dept creates creates a BSc[IT] BSc[IT] course course taken as a projec project. t. Now if after after several years the BSc[IT] course can run on its own, then the Maths dept can terminat terminatee this this BSc[IT BSc[IT]] projec projectt which which can be consid considere ered d as a full full fledged dept. now. 3. Termination by intefration: This method of terminating a project is most comm common on and and it is done done when when the the comp comple lexi xity ty aris arises es.. The The prop proper erty ty equi equipm pmen ent, t, mate materi rial al,, pers person onne nell and and func functi tion onss of the the proj projec ectt are are distributed among existing element of the parent organization. The output of the project becomes the std. partof operating system of the parent or clie client nt For For eg: eg: The The merg merger er of glo globa ball trus trustt bank bank wit with h orien orienta tall bank bank is is termination by integration. Foll Follow owin ing g poin points ts must must be cons consid ider ered ed when when the the proj projec ectt func functi tion onss are are distributed during integration. Person Personnel nel:: Where Where wil wil the the projec projectt team team go? go? Will Will it remain remain a team. team. a. B. Manufacturing Manufacturing:: Is the training training complete? complete? Are input materials materials and requ requir ired ed faci facili liti ties es avai availa labl ble? e? Are Are new new cont contro roll proce procedu dure ress neede needed. d. C. Accounting: Have the project accounts closed and auidited? Have the new accounts been vreated and a/c nos been distributed. D. Engineering: Are all the drawings complete and the files complete? Have maintena maintenance nce schedule schedule been adjusted adjusted.E. .E. S/w or info System: System: Has the new system been throughly tested and is the s/w properly documented? Is the new syst system em fully lly integra egrate ted d with ith curre rrent syst systeem. F. Termi rminati nation on by starvation: In this type a slow starvation arises by budget decrement. Every one involved involved with the project project has to cope with budget budget cut. cut. In some firms, firms, for eg: they don’t want to admit the failure, so the project is continued even if it is not fruitful. Inshort the progress has slowed down, so the company may change the employees but the project may continue. Q. When a project should be terminated?
A. 1. If a proj projec ectt is succ succes essf sful ully ly comp comple lete ted, d, then then it is term termin inat ated ed.. 2. Does Does the projec projectt is consis consistan tantt with with organi organizat zation ional al goals goals.. 3. Is the the projec projectt useful useful or is it practical practical,, if not it is terminate terminated d 4. Is the mgmt. mgmt. enth enthus usia iast stic ic abou aboutt the the proj projec ectt to to sup suppo port rt the the impl implem emen enta tati tion on.. 5. Does Does the the project represent more advance over over current technology. technology. 6. Is the project team team sti still inov inovaativ tive. 7. Ha Has the the proje roject ct lost its key pe person rson.. Project audit Project audit is an examination of mgmt of a project. Its methodologies and procedures, its records, its budgets and expenditure. It may deal with the project as a whole or only the part of project. A formal report must be presented which takes takes the following points points into account. 1. Current status of project: Which tells tells that the work actually completed completed does match with the the plant activity. activity. 2. Future status: Are significant schedule changes likely if so indi indica cate te the the natu nature re of chan change ges. s. 3. Stat Status us of of cruc crucia iall tas task: k: What What progress has beeen made on task that to decide the success or failure of the project. 4. Risk Risk Asse Assessm ssmen ent: t: Are Are the the risk risk take taken n car caree of. of. 5. Info Inform rmat atio ion n from from oth other er project: What lessons are learned from the project project autied earlier. Depth of auditing : To what depth the auditing should be done is decided by the organization. organization. The factors which decide the the depth of auditing are : 1.Cost 2. The clerical time used in conducting the audit 3. The sto storag rage 4. The The maint ainten enaance nce of the audit uditab able le dat data. The general audit is normally carried out by the qualified technicians under the direct guidance of project auditor. Timing of audit : 1.The 1.The timin timing g of audit audit will will depend depend on the circu circumst mstanc ances es of a parti particul cular ar project. The first audit are usually done early in projects life. The problem is discovered the easier it is to deal with. Early audits often focussed on the technical issues inorder to make sure that the key technical problems have been solved. 2. The audit done later in the life cycle of project are of less immediate value to the project but are of more value to the parent organization. As the project develops technical issues are less likely to be the matter matter of conce concern. rn. 3. Post Post projec projectt audits audits are condu conducte cted d with with severa severall basic basic objec objectiv tived ed in mind mind like like legal legal neces necessit sity, y, feedba feedback ck for manag managera erall level level,, to account for all project property and expenditure. Responsibility of project auditor: Follow Following ing steps steps are carri carried ed out in a audit: audit: 1. Essent Essential ially ly a sma small ll team team of expe experi rien ence ced d expe expert rtss 2. Fami Famili liar ariz ized ed the the team team with with the the proj projec ectt.
3. Audit the project on site 4. After completion brief the project mana manage geme ment nt.. 5. Prod Produc ucee a wri writt tten en rep repor ortt acc accor ordi ding ng to spec specif ifie ied d form format at.. 6. Distr Distrib ibut utee the the repo report rt to proj projec ectt mana manage gerr and and proj projec ectt team team for for thei their r response. 7. Follow up to see if recommendation have been implemented. Project audit lifecycle. There are 6 phases in the project audit lifecycle. Project Project Audit Audit initiati initiation: on: This step involves involves starting starting the audit proces, proces, 1. defining the purpose and scope of audit and gathering sufficient info. to determine proper audit methodologe. 2. Project Baseline Defin Definiti ition: on: The purpos purposee of this this phase phase is to estab establish lish perfor performan mance ce std. std. against which the project performance can be evaluated. This phase consist of identifyin identifying g the performance performance area to be evaluated, evaluated, determining determining std. for each each area area for for benc bench h mark markin ing g and and deve develo lop p a prog program ram to meas measure ure and and asse assemb mble le the the req requi uire red d inf info. o. 3. Estab Establi lish shin ing g an audit audit datab databas ase: e: Once Once the baseline std. are established execution of audit begins. Depending on the purpose and scope of audit the database might include the information needed for assessment for project organization, control, past and current project status, schedule schedule performance and cost performance. performance. 4. Preliminary Analysis of Project: After the std. are set and data collected judgemetns are made. The judgements should be fare enough. It is auditors duty to brief the PM on all findings and judgement before releasing the audit audit report report.. The The purpos purposee of audit audit is to improv improvee the the entire entire process process of managing projects. 5. Audit udit Reort eort Pre Prepa para rattion ion 6. Rp Rpojec ject Aud Audiit ter term mina inatio tion
Principles of Project Negotiation 1) Sepa Separa rate te the the peo people from from the the probl robleem – the confl onflic ictting ing part partie iess are often often highly highly emotiona emotional. l. The emotions emotions and objective objective facts facts get confused confused when it is not clear and the conflicting parties tend to attack one another rather than to discuss the problem. 2) Focu Focuss on on int inter eres estt rath rather er tha thatt the the posi positi tion on – the the nego negoti tiat ator or must must determine the concerned of the other party factors such as time, resources, funds, workload, etc must be clearly discussed. 3) Befo Before re try tryin ing g to rea reach ch agr agree eeme ment nt inv inven entt opti option onss for for the the mutu mutual al gai gain n – as soon as the problems are spelled out some effort should be made to find a wide variety of problem solution.
4) Insi Insist st on on usin using g obje object ctiv ivee crit criter eria ia – ins inste tead ad of of barg bargai aini ning ng on on posi positi tion on main attention should be given to find the standards such as marked values, expert option, how company policy that can be used to determine the quality of the outcome. Project Review The project review is meant for evaluating actual performance with the projected performance with the the assurance and cost. When the the actual performance is measured and it is not as as per the objectives objectives then the reason for such performance is evaluated. Steps in review plan: the review team prepares a formal review plan around the objectives of the review, the type of evaluation to be carried out and the time schedule required. 1. Administrative Plan – the review group performs a) user objectives b) operating cost and benefits benefits 2. Perso Persona nall Requ Requir irem emen entt Plan Plan – eval evalua uate tess all all the the acti activi viti ties es whic which h are are involved with the system personal and the staff that deal directly with the system. The emphasis is one productivity, moral and job satisfaction. 3. Hardware Plan – the hardware of the project is also reviewed & the target is comparison of current performance specification with design specification. 4. Documentation Plan – to evaluate the accuracy and the completeness of the documentation compiled to date and its conformity with the preestablished documentation standards.
Contractual Arrangements Arrangements 1. Most inter-orga inter-organizat nizational ional work work on projects projects is contractua contractuall in nature. 2. CONTRACT – A forma; agreement between 2 parties wherein one party – the contractor obligates itself to perform a service and the other party – the client – obligates itself to do something in return. 3. Contrac ractual arra arrang ngem emen entt is more more than than just just an agre agreem emen entt betw betwee een n part partie ies. s. 4. Contractua Contractuall Arrangeme Arrangement nt is a codificat codification ion of the private private law - it defines the responsibilities, rights of the parties in relationship to each other. 5. An ambiguou ambiguouss or inconsist inconsistent ent contractua contractuall arrangeme arrangement nt is diffic difficult ult to to under understa stand nd and and enf enforc orce. e. 6. Type Typess of Cont Contrac ractua tuall Arrang Arrangeme ements nts - Fixed price: price is agreed upon in advance and remains fixed as long long as there there are no chang changes es to scope scope of the agree agreemen ment. t. - Cost Cost plus: plus: the the
Cont Contrac racto torr is reim reimbu burs rsed ed for for all all of the the expe expens nses es incu incurre rred d duri during ng the the performance of the contract. contract.
