PM 0016 Quantitative Method

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ASSIGNMENT-2

Q.1 Having formulated a Business Strategy, what are the steps in

its implementation? Explain each in a sentence or two (10 marks).

Strategy is an operational tool to achieve the goals, and thus, the corporate

mission. Strategies do not attempt to outline exactly how the enterprise is to

accomplish its objectives. A company may view downsizing as a strategy in a

competitive market to render cost-effective services. Thus, strategy provides a

framework to guide thinking and action. Strategies are very much useful

in organizations for guiding, planning and control.

Strategy is a way of life both at the macro as well as micro levels for everyone,

whether it is a nation or a company. To win over in a given complex situation, theorganizations, even trans-nationals adopt strategies. They make changes, if

necessary, even to their global strategies. An individual company may formulate

its own strategy to bring out the desired results.

The eventual success of the organization depends upon strategy formulation and

implementation.

Strategy refers to the course of action desired to achieve the objectives of the

enterprise. Formulation, together with its implementation, constitutes an integral

part of the management activity. Managers use strategies for different purposes

such as toovercome competition, to increase sales, to increase production, to motivate the

employees to provide their best, and so on. Implementation of a strategy is a

crucial task as the formulation of it. There may be a lot of resistance during the

implementation process. It is necessary for the manager to be very tactful to

involve the members of his group in the formulation of strategy to facilitate the

implementation process.

Following are the steps for implementing the business strategy:

1. Identification of mission and objectives

2. Environment scanning

3. Generic strategy alternatives

4. Strategy variations

5. Strategic choice

6. Allocation of resources and formulation of organizational structure

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SRI SAI

Name: Meaza Duga

ID No: 531210867

Subject: Quantitative methods in project

management

Code: PM 0015

Semester: 4th

Assignment: Set II

Learning Center: 02540

Date of submission: February xx, 2013


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Master of Business Administration - MBA Semester 4Project Management SpecializationPM 0016 Project Risk Management (4 credits)(Book ID: B1345)

ASSIGNMENT- Set 2Marks 60Note: Each Question carries 10 marks

1. Explain the Framework for PERT and CPM network.

PERT and CPM are the project management techniques created for the need of the

Western and Military Establishments to plan, schedule and control the complex projects.

CPM/PERT developed along two parallel streams one industrial and the other military.

CPM was first introduced by M. R. Walker and J. E. Kelly. This computation was

designed for the UNIVAC-I computer. The first test was made in 1958, when CPM was

applied in the construction of a new chemical plant. In March 1959, the CPM was applied

in the planned shutdown at the Du Pont works in Louisville, Kentucky. The introductionof CPM greatly reduced the unproductive time from the 125 hours to the 93 hours.

PERT was introduced first for the POLARIS missile program by the Program Evaluation

Branch of the Special Projects office of the U.S. Navy. The calculations were so arrangedso that they could be performed in the IBM Naval Ordinance Research Computer

(NORC) at Dahlgren, Virginia. Rather than giving technical benefits, it is found that

PERT/CPM provides a focus around which managers could brain-storm and can put theirideas.

PERT/CPM is a great communication medium by which thinkers and planners at one

level can communicate their ideas, their doubts and fears for another level. Another

important feature of the PERT/CPM is that it is a useful tool for evaluating the

performance of the individuals and the teams.

There are many variations of CPM/PERT which have been useful in planning costs,

scheduling manpower and machine time. CPM/PERT can answer following important

questions How long will the entire project take to be completed? What are the risks

involved in this?

Which are the critical activities or tasks in the project which could delay the entire project

if they were not completed on time?

Is the project on schedule, behind schedule or ahead of schedule?

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If the project has to be finished earlier than the planned, what is the best way to do this at

the least cost?

The Framework for PERT and CPM

There are six steps which are common to both the techniques. The procedure is as follows

1. Define the Project and all of its significant activities or tasks. The project (made up of

several tasks) should have only a single start activity and a single finish activity.

2. Develop the relationships among the activities. Decide which activities must precede

and which must follow others.

3. Draw the Network connecting all the activities. Each activity should have uniqueevent numbers. Dummy arrows are used where required to avoid giving the same

numbering to two activities.

4. Assign time and/or estimates to each activity.

5. Compute the longest time path through the network. This is called the critical path.

6. Use the network to help plan, schedule, monitor and control the project.

The key concept used by both in PERT as well as CPM is that a small set of activities,

which make up the longest path through the activity network control the entire project. If

these critical activities could be identified and assigned to the responsible persons,

management resources could be optimally used by concentrating on the few activities

which determine the fate of the entire project.

The non-critical activities can be re-planned, rescheduled and resources for them can be

reallocated flexibly, without affecting the whole project. The five important questionsthat should be asked before the preparation of an activity network are the following

Is this a Start Activity?

Is this a Finish Activity?

What activity precedes this?

What activity follows this?

What activity is concurrent with this?

Some activities are serially linked. The second activity can begin only after the firstactivity is completed. In the certain cases, the activities are concurrent, because they are

independent of each other and can start simultaneously. This is essentially the case in

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organizations which have supervisory resources so that work can be delegated to various

departments that will be responsible for the activities to be performed and their

completion as per the planning.

2. What are the tips to remove the top three project estimating risks?

3. What are the objectives of change management?

4. What is Risk Retention in Project Risk Management?

5. Briefly explain the advantages of Project Risk audit?

6. Explain Risk Knowledgebase Database Structu

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PM 0016 Quantitative Method