PROJECT

M ANAGE ME NT &
ENTREPRENEURSHIP
AKTU { UN IT 3}
WHAT IS PROJECT MANAGEMENT :

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Project management is a systematic approach to planning, executing, and completing projects. It
involves applying knowledge, skills, tools, and techniques to meet the project requirements and
achieve specific goals within a defined timeline, budget, and scope.

PHASES OF PROJECT MANAGEMENT/ PROJECT LIFE CYCLE :

Stage 1: Initiation
This phase of project management marks the beginning of the project and is where the project charter is developed, and stakeh olders are
identified.

Stage 2: Planning
This is where the project plan is developed. That means costs are estimated, resources are determined, and requirements (scope and work
breakdown structure) are defined. This is also where risk is identified and planned for, and where communications are built.

Stage 3: Execution
This project phase is where the project is carried out, all while procuring resources and managing stakeholder expectations.

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Stage 4: Controlling/Monitoring

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
This phase is often carried out simultaneously with execution because this is where quality, scope creep, and cost/time
allocations are monitored.

Stage 5: Closing
This stage of project management is where the project is finalized, the deliverable is given to the customer, stakeholders are
told of the completion of the project, and all resources are released back to their resource managers

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IMPORTANCE OF PROJECT MANAGEMENT

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1.Time and Cost Efficiency: Project management ensures timely completion and efficient resource allocation, minimizing
delays and unnecessary expenses.

2.Quality Assurance: Maintaining expected quality throughout the project lifecycle is a priority, resulting in high-quality
outcomes.

3.Risk Mitigation: Proactively identifying and addressing risks helps prevent costly setbacks.

4.Stakeholder Involvement: Engaging stakeholders ensures their needs are considered and keeps them informed.

5.Strategic Alignment: Projects align with overall business strategy, contributing to organizational success.

6.Resource Management: Efficiently managing personnel, materials, and finances maximizes productivity.

7.Process Optimization: Effective processes lead to smoother workflows and happier employees.

Remember, successful project management goes beyond task completion—it’s about achieving desired outcomes while
maintaining efficiency and quality!

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WHAT DO YOU MEAN BY SCOPE IN PROJECT MANAGEMENT

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Project Scope: The boundaries and deliverables of a project. It defines what is included in the project and what is not, detailing
the project's goals, deliverables, tasks, deadlines, and costs. Scope ensures that everyone involved has a clear understanding of
what the project aims to achieve and what steps need to be taken to reach those goals

WORK INVOLVED IN PROJECT MANAGEMENT

1. Plan Scope Management: Create a scope management plan outlining how scope will be defined, validated, and controlled.

2. Collect Requirements: Gather stakeholder needs and expectations through interviews, surveys, and workshops.

3. Define Scope: Develop a detailed project scope statement with objectives, deliverables, and boundaries.

4. Create Work Breakdown Structure (WBS): Break down project deliverables into smaller, manageable components and document
them.

5. Validate Scope: Obtain formal acceptance of completed deliverables from stakeholders through reviews and inspections.

6. Control Scope: Monitor scope performance, manage changes through a formal process, and prevent scope creep

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PROJECT MANAGEMENT AS CONVERSION PROCESS

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Conversion Process in Project Management: A method where inputs (resources, time, budget, etc.) are transformed into
outputs (project deliverables) through a series of planned activities and processes.

Components of the Conversion Process

1.Inputs: Resources, information, funding, and time needed for project execution.

2.Processes: Initiation, planning, execution, monitoring and controlling, and closing.

3.Outputs: Deliverables, documentation, stakeholder satisfaction, and knowledge transfer.

Understanding and managing these components ensure efficient transformation of inputs into valuable project outputs

Constraints in Project Management

1.Scope: Defines project boundaries; changes can lead to scope creep.

2.Time: Project schedule and deadlines; delays affect delivery.

3.Cost: Allocated budget; overruns occur due to underestimations or changes.

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. Quality: Deliverables meeting standards; higher quality may require more resources.
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P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
5. Resources: Human, material, and technological; limited availability impacts progress.

6. Risk: Potential events affecting objectives; unmanaged risks lead to failures.

7. Stakeholder Satisfaction: Meeting stakeholder expectations; conflicting interests complicate decisions.

Mechanisms to Manage Constraints

1.Integrated Project Management Plan: Comprehensive plan aligning project elements.

2.Work Breakdown Structure (WBS): Decomposes project into manageable tasks.

3.Schedule Management: Tools like Gantt charts and CPM for tracking timelines.

4.Budget Management: Cost estimation and financial control practices.

5.Quality Assurance and Control: Defining and implementing quality standards.

6. Resource Allocation and Management: Tools for optimizing resource usage

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7. Risk Management: Identifying, assessing, and mitigating project risks.

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
8. Change Control Process: Formal process for managing scope changes.

9. Stakeholder Management: Engaging stakeholders effectively.

10. Communication Plan: Establishing clear communication channels.

ROLES OF PROJECT MANAGER IN A PROJECT

1. Leader: Guides the project team and provides direction to achieve project goals.

2. Planner: Develops project plans, including scope, schedule, and resource allocation.

3. Organizer: Coordinates team members, tasks, and resources to ensure smooth project execution.

4. Communicator: Facilitates clear and effective communication among stakeholders, team members, and management.

5. Problem Solver: Identifies and resolves issues and obstacles that arise during project implementation.

6. Risk Manager: Anticipates potential risks and develops strategies to mitigate them.

7. Decision Maker: Makes timely and informed decisions to keep the project on track.

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8. Quality Controller: Ensures project deliverables meet quality standards and stakeholder expectations.

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
9. Motivator: Inspires and motivates team members to perform at their best and overcome challenges.

10. Stakeholder Manager: Manages relationships with stakeholders and addresses their concerns and needs.

KEY SKILLS OF A GOOD PROJECT MANAGER

Effective communication, leadership, organization, problem-solving, time management, adaptability, risk management,
negotiation, decision-making, team management, quality management.

TRAITS OF A GOOD PROJECT MANAGER

Leadership, Communication skills, Organizational skills, Problem-solving abilities, Time management, Adaptability,
Resilience, Attention to detail, Strategic thinking, Team-building skills, Accountability, Integrity, Flexibility, Confidence,
Emotional intelligence.

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WHY PROJECT LIFE CYCLE IS IMPORTANT FOR A PROJECT

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
The project life cycle is crucial for effective project management as it provides a structured approach, clear milestones, and
facilitates risk management, resource planning, stakeholder engagement, quality assurance, and project control. Following the
project life cycle increases the likelihood of project success and ensures delivery of value to stakeholders and better results .

PROJECT APPRAISEL

1. Project appraisal is an evaluation process conducted before project initiation.

2. It involves assessing the feasibility, costs, benefits, risks, and strategic alignment of the project.

3. The goal is to determine the project's viability, financial feasibility, and potential benefits.

4. Key components include feasibility studies, cost-benefit analysis, risk assessment, and impact analysis.

5. Project appraisal helps decision-makers make informed choices about project approval or rejection

WHY PROJECT APPRAISEL IS DONE

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. Viability Evaluation: Determines if the project is economically, technically, and socially feasible.
•Risk Assessment: Identifies and analyzes potential risks to develop mitigation strategies.

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
•Resource Allocation: Determines the optimal allocation of financial, human, and material resources.
•Decision Making: Provides information for informed decisions on project continuation, modification, or abandonment.
•Performance Measurement: Establishes benchmarks and indicators for monitoring project progress and success.
•Alignment with Objectives: Ensures the project aligns with organizational goals and priorities.
•Legal and Regulatory Compliance: Ensures adherence to laws, regulations, and industry standards.
•Stakeholder Communication: Facilitates transparent communication about project benefits, risks, and impacts

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WHAT IS TECHNICAL APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Technical appraisal is an in-depth study conducted to ensure that a project meets certain criteria. It involves evaluating various technical
aspects of the project to determine its feasibility and viability. Here are the key aspects considered during technical appra isal

Manufacturing Process/Technology: Examination of selected manufacturing processes and alternative options, and justification of the chosen process
based on detailed flow charts and analysis.

Technical Arrangements: Assessment of prerequisites for successful project commissioning, considering factors such as location, size, and other technical
requirements.

Material Inputs and Utilities: Definition of required materials and utilities for the project, specification of properties, and establishment of a supply
program.

Product Mix: Evaluation of the mix of products or services the project will produce, ensuring alignment with overall project goals and objectives.

Plant Capacity: Determination of production capacity to meet project requirements, and assessment of adequacy based on demand forecasts and market
analysis.

Location and Site: Analysis of the suitability of the project's chosen location, considering factors like proximity to raw material sources and target
markets.

Machinery and Equipment: Selection of appropriate machinery and equipment necessary for production, ensuring compatibility with the chosen
manufacturing process and production capacity

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10 STEPS PROCEDURE INVOLVED IN CRITICAL STUDY OF TECHNICAL APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1. Define Objectives: Clearly state project goals.

2. Identify Requirements: Determine technical needs.

3. Evaluate Processes: Assess manufacturing options.

4. Analyze Arrangements: Review location and size.

5. Assess Inputs: Define materials and utilities.

6. Review Product Mix: Evaluate offerings.

7. Determine Capacity: Calculate production needs.

8. Evaluate Site: Assess location suitability.

9. Select Equipment: Choose machinery.

10. Ensure Compliance: Verify standards and regulations

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WHAT IS ENVIRONMENT APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Environmental appraisal is the process of evaluating various factors in the external environment that can impact an
organization's operations, strategies, and decision-making. This appraisal helps organizations to identify
opportunities and threats arising from their external environment. The stages involved in environmental appraisal
typically include

Identification: Recognize external factors affecting the organization.

Data Collection and Analysis: Gather information about these factors and analyze their implications.

Trend Analysis: Assess the direction and significance of each factor's impact.

Impact Assessment: Determine how each factor affects the organization's performance and objectives.

Strategic Response: Develop strategies to capitalize on opportunities and mitigate threats.

Monitoring and Review: Continuously monitor changes in the environment and adjust strategies
accordingly

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IMPORTANCE OF ENVIRONMENTAL APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Environmental appraisal is crucial because it helps organizations:

1.Identify risks and opportunities.

2.Plan strategies effectively.

3.Stay adaptable in changing environments.

4.Allocate resources optimally.

5.Gain a competitive edge.

6.Ensure regulatory compliance.

7.Achieve long-term success and sustainability

MARKET APPRAISAL

Market appraisal is the assessment of a property's value based on current market conditions. It's done by professionals using
methods like comparative analysis, income approach, and cost approach. It helps sellers set prices, buyers make informed
decisions, and lenders evaluate collateral

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OBJECTIVES OF MARKET RESEARCH

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1. Understanding Customer Needs: Identify what customers want and how they behave.

2. Assessing Market Viability: Evaluate demand and potential for products or services.

3. Competitive Analysis: Understand competitors' strategies and strengths.

4. Product Development: Refine existing offerings and develop new ones.

5. Market Segmentation: Divide customers into groups based on characteristics.

6. Pricing Strategies: Determine optimal pricing to maximize profitability.

7. Marketing Effectiveness: Evaluate the impact of marketing efforts.

8. Identifying Opportunities and Threats: Spot emerging trends and potential risks.

9. Risk Reduction: Make informed decisions to minimize business risks.

10. Long-term Planning: Forecast future trends for strategic planning.

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SCOPE OF MARKET RESEARCH

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Product Development: Understanding consumer needs to develop or refine products.

Market Segmentation: Identifying distinct customer groups based on demographics or behavior.

Competitive Analysis: Evaluating competitors' strategies and strengths.

Market Trends: Monitoring industry developments and consumer behavior shifts.

Consumer Behavior: Studying factors influencing purchasing decisions.

Pricing Strategies: Determining optimal pricing based on market demand.

Distribution Channels: Optimizing channels for efficient product delivery.

Advertising Effectiveness: Assessing the impact of marketing efforts.

Market Entry: Researching new markets for potential entry.

Risk Assessment: Identifying and mitigating potential market risks

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 METHODS OF DEMAND FORECASTING

18 P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
 P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
Qualitative Methods:

1.Market Research and Expert Opinion: This involves gathering insights from market research, customer surveys, and expert opinions to
understand consumer preferences, trends, and market dynamics. It relies on subjective judgments and qualitative analysis.

2.Delphi Method: In this technique, a panel of experts is consulted anonymously through multiple rounds of questionnaires or interviews. The
responses are aggregated and refined iteratively to reach a consensus forecast.

3.Focus Groups: Focus groups bring together a small group of representative consumers to discuss their opinions, preferences, and attitudes
towards a product or service. These discussions provide qualitative insights into potential demand drivers.

4.Sales Force Composite: Sales representatives or field staff provide input based on their knowledge of customer needs, competitor activity,
and market conditions. Their collective forecasts are then aggregated to generate a demand estimate.

5.Consumer Surveys: Surveys conducted among target consumers gather information on their purchasing behavior, preferences, and future
buying intentions. Analyzing survey responses helps identify emerging trends and demand patterns

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Quantitative Methods:

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1.Time Series Analysis: Analyzing historical sales data to identify patterns, trends, and seasonal variations using methods like moving
averages and ARIMA models.

2.Regression Analysis: Quantifying the relationship between demand and independent variables such as price and advertising expenditure.

3.Machine Learning Algorithms: Using advanced algorithms to analyze large datasets and identify complex patterns in demand behavior.

4.Econometric Models: Integrating economic theories with statistical techniques to forecast demand based on factors like income levels and
consumer preferences.

5.Input-Output Analysis: Examining interrelationships between different sectors of the economy to forecast demand for a product or service.

6.Simulation Models: Simulating various scenarios to assess their impact on demand under different conditions, providing insights into
potential outcomes

WHAT IS MANAGERIAL APPRAISAL

Managerial appraisal, also known as performance appraisal or evaluation, is a systematic process used by organizations to ass ess the
performance, effectiveness, and contributions of managers or supervisors within the organization. The goal of managerial appraisal is to
provide feedback, identify areas of strength and improvement, and support professional development

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QUALITIES NEEDED TO BE STUDIED IN MANAGERIAL APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1.Leadership: Ability to inspire and guide their team.

2.Communication: Effectiveness in conveying ideas and listening.

3.Team Management: Skill in building and leading teams.

4.Performance Management: Capacity to set goals, provide feedback, and address issues.

5.Strategic Thinking: Aptitude for aligning team goals with organizational objectives.

6.Problem-Solving: Capability to identify and solve problems creatively.

7.Decision-Making: Skill in making timely and informed decisions.

8.Adaptability: Capacity to adjust to changing circumstances.

9.Ethical Behavior: Adherence to ethical standards and organizational values.

10.Results Orientation: Focus on achieving outcomes contributing to organizational success

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SCOPE OF MANAGERIAL APPRAISAL

P TO J E C T M A N A G E M E N T & E N T R E P R E N E U R S H I P
1. Performance Evaluation: Assessing manager's performance against set criteria.

2. Feedback: Providing constructive feedback on strengths and areas for improvement.

3. Goal Setting: Collaborating on SMART goals aligned with organizational objectives.

4. Development: Identifying training to enhance managerial skills.

5. Succession Planning: Grooming potential leaders for future roles.

6. Rewards: Linking appraisal outcomes to recognition and incentives.

7. Integration: Aligning appraisal with broader performance systems.

8. Conflict Resolution: Addressing conflicts within managerial roles.

9. Improvement: Identifying organizational inefficiencies for enhancement.

10. Engagement: Promoting transparency and accountability in performance management

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