TY - BOOK AU - Gupta, Rajeev M. TI - Project management SN - 8120344259 U1 - 658.404 PY - 2011/// CY - New Delhi PB - PHI Learning Pvt Ltd N1 - CONTENTS Preface xi 1INTRODUCTION 1-12 1.1Definition of Projects 1 1.2 Project Management 3 1.3Project Characteristics 3 1.4 Objectives of Project Management 4 1.5Project Management vis-a-vis Operations Management 6 1.6 History of Project Management 7 1.7Recent Trends in Project Management8 1.8 Importance of Project Management 9 Summary10 Practice Questions22 Objective Type Questions 12 ACTIVITY12 2PROJECT LIFE CYCLE AND ITS CLASSIFICATION 13-28 2.1Project Life Cycle and Its Phases13 2.2 Idea Generation (Concept Phase) 14 2.3Project Planning Phase15 2.4 Implementation or Execution Phase 17 2.5Termination Phase (Clean-up Phase)18 2.5.1 Project Audit 19 2.6 Classification of Projects on Different Basis 20 2.6.1 Greenfield Project21 2.6.2 Brownfield Projects 21 2.6.3 Divestment Project23 2.6A Modernisation/Replacement Project24 Summary 25 Practice Questions26 Discussion Questions 26 Objective Type Questions27 ACTIVITY 28 3 PROJECT MANAGEMENT PROCESS AND PROJECT SELECTION 29-45 3.1Process of Project Management 29 3.2Detailed Project Report (DPR) 32 3.3Project Selection Methods 33 3.4Project Selection Criteria 34 3.5BCG Matrix35 3.6McKinsey/GE Matrix 37 3.7SPACE (Strategic Position & Action Evaluation) Diagram 38 3.8Nonfinancial Scoring Models41 Summary 43 Practice Questions44 Objective Type Questions45 4TECHNICAL FEASIBILITY 46-59 4.1Factors Considered in Technical Analysis 46 4.2Factors Affecting Selection of Locations 47 4.3Government Incentives, SEZ, EOU, etc.49 4.4Technology Selection50 4.5Sources of Technology 51 4.5.1 Technology Transfer51 4.5.2 Technology Development52 4.6Appropriate Technology 53 4.7Capacity Planning and Cost Capacity Relationship54 4.7.1Primary Factors54 4.7.2 Secondary Factors54 4.8Relationship Break Even Quantity and Capacity 55 Summary56 Practice Questions57 Discussion Questions58 Objective Type Questions58 ACTIVITY 59 5MARKET POTENTIAL ANALYSIS 60-80 5.1Classical Approach to Market Potential Analysis (Demand Supply Gap Analysis) 60 5.2Qualitative Techniques 61 5.2.1 Jury Opinion61 5.2.2 Delphi Technique61 5.3Statistical Techniques63 5.3.1 Moving Average Method63 5.3.2 Weighted Moving Average Method63 5.3.3 Exponential Smoothing64 5.3.4 Regression (Time Series)66 5.4 Other Methods of Forecasting 69 5.4.1 Survey69 5.4.2 Chain Ratio Method69 5.5Characteristics of Effective Forecast70 5.6 Modern Approaches in the Era of Globalisation (Strategic Advantage Approach)70 5.7 Market Plan74 Summary77 Practice Questions78 Discussion Questions79 Objective Type Questions79 6FINANCIAL PROJECTIONS 81-101 6.1Importance and Steps of Financial Feasibility 81 6.2 Components of Cost of Project and Its Estimation 82 6.3Working Capital Estimations 84 6.4 Project Cash Flows 87 6.5Project Cash Flows in a Replacement Project90 6.6 Project Cash Flows with Consideration of Debt and Repayment 91 Summary97 Practice Questions98 Practice Problems 99 Objective Type Questions100 7PROJECT FINANCING 102-126 7.1Sources of Long-Term Finance 102 7.2 Debt Financing103 7.2.1 Characteristics of Debt 103 7.2.2 Types of Debts104 7.2.3 Cost of Debt106 7.2.4 Cost of Debenture106 7.3Equity Financing107 7.3.1 Preferential Shares108 7.3.2 Equity Shares 109 7.3.3 Retained Earnings 109 7.3.4 Calculation of Cost110 7.4Weighted Average Cost of Capital111 7.5Optimum Capital Structure113 7.6 Short-Term Sources for Working Capital 116 7.7Newer Sources of Finance117 7.8Venture Capital Financing118 7.8.1 The Process119 Summary122 Practice Questions123 Discussion Questions 125 Objective Type Questions125 8FINANCIAL ANALYSIS 127-146 8.1Ratio Analysis727 8.2Techniques of Capital Budgeting 129 8.3Pay Back Period Method, Its Advantages and Limitations 129 8.4Average Rate of Return131 8.5Time Value of Money 732 8.6Discounted Pay Back Period 134 8.7Profitability Index and Net Present Value135 8.8Internal Rate of Return 136 8.9Selection of Capital Budgeting Technique (NPV vs IRR)138 Summary 144 Practice Questions144 Discussion Questions 145 Objective Type Questions145 9RISK ANALYSIS IN SINGLE AND MULTIPLE PROJECTS 147-173 9.1Sources of Risk in Project Management 147 9.2Managing Risk 149 9.3Techniques to Assess and Estimate Risk 752 9.4Hillier Model752 9.5Scenario Analysis 755 9.6Sensitivity Analysis756 9.7Simulation Analysis759 9.8Abandonment Analysis762 Summary170 Practice Questions171 Discussion Questions173 Objective Type Questions173 10 PROJECT CONTROL THROUGH NETWORKS 174-195 10.1 Work Breakdown Structure (WBS)174 10.2 Gantt Chart 175 10.3 Networks 176 10.3.1 Types of Network Diagrams176 10.3.2 Applications of Project Networks 177 10.4 Fulkerson's Rules for AOA Networks178 10.5 Network Construction 179 10.6 Critical Path Method183 10.7 Slacks, Floats and Their Applications186 10.8 Activities on Node (AON) Network and Its Application 187 Summary192 Practice Questions193 Objective Type Questions 194 ACTIVITY 795 11 PROBABILISTIC MODELS OF NETWORKS 196-212 11.1 Estimating Average Time and Standard Deviation796 11.2 Determining Critical Path and Standard Deviation of Project197 11.3 Probability of Completion of Project 797 11.4 Applications of Probabilistic Model799 11.5 PERTv/sCPM203 11.6 Limitations of Networks 204 Summary 209 Practice Questions 209 Discussion Questions211 Objective Type Questions 211 12 TIME-COST RELATIONSHIP AND RESOURCE LEVELLING 213-240 12.1 Time-Cost Relationship (Crashing) 213 12.2 Optimising Cost 275 12.3 Fast Approach to Cost Optimisation 220 12.4 Optimisation with Partial Crashing 222 12.5 Optimisation with Very high Indirect Cost (Rajeev's Reverse Crashing Algorithm) 224 12.6 Resource Levelling (RG Algorithm)226 Summary237 Practice Problems237 Discussion Questions 239 Objective Type Questions239 13 ECONOMIC AND SOCIAL COST BENEFIT ANALYSIS 241-256 13.1 Social Cost Benefit Analysis 241 13.2 Social Costs242 13.3 Social Benefits243 13.4 Significance of SCBA244 13.5 UNIDO Approach 245 13.6 Shadow Pricing 246 13.7 Little Mirrlees Approach (L.M. Approach)250 13.8 Methods Followed in Indian Financial Institutions257 Summary255 Discussion Questions 255 Objective Type Questions255 ACTIVITY 256 14 HUMAN ASPECTS IN PROJECT MANAGEMENT 257-271 14.1 Forms of Project Organisations257 14.1.1 Functional Organisation 258 14.1.2 Pure Project Organisation 259 14.1.3 Matrix Organisation261 14.2 Changing the Form of Organisation262 14.3 Project Manager 264 14.4 Traits of Project Manager265 14.5 Project Leaderships 267 14.6 Project Communications265 14.7 Change Management 269 Summary270 Discussion Questions270 Objective Type Questions271 15 PROJECT INFORMATION SYSTEM AND MONITORING 272-286 15.1 Project Management Information System (PMIS) 272 15.2 Monitoring Project 274 15.3 Earned Value Analysis 274 15.4 Project Termination 278 15.5 Project Completion Audit 279 15.6 Reasons for Failure of Projects 281 15.6.1 Reasons Related lo Planning281 15.6.2 Reasons Related to Leadership282 15.6.3 Other Reasons 282 15.6.4 Steps for Project Success253 Summary 284 Practice Questions285 Practice Problems 285 Objective Type Questions285 ACTIVITIES 286 Appendix A-The Standard Normal Probability Distribution 287-288 Appendix B-Financial Tables 289-292 Bibliography 293-294 Index 295-296 ER -