Objective of marketing in industrial management

In this ppt we discussed objective of marketing

1. IOM ( 6S305 ) By : Rutuja B. Peherkar (226022)

2. UNIT : 6

3. Course & Major Learning Outcomes Major Learning Outcomes : A. Use CPM/PERT for project scheduling for execution B. Track the project with the help of project management techniques

4. Introduction of Project Management Project management is the process of planning, organizing, and guiding a project to reach a specific goal. It involves making sure tasks are done on time, within a budget, and to a certain quality. A project manager leads the team, assigns work, manages resources like money and time, handles risks, and keeps everyone updated. It’s like making a roadmap for a project and ensuring everything stays on track to complete it successfully. A project is accomplished by performing the set of activities for a particular goal or purpose. A project requires & consumes the resources. The resources required for any projects are men, material, money & time.

5. DEFInition of project management In terms of management , project management is the systematic application of processes, skills, knowledge, and tools to plan, execute, and oversee a project to achieve specific objectives within defined constraints, such as time, cost, and scope. It involves organizing resources, managing teams, and balancing competing demands to deliver high-quality outcomes that align with organizational goals and stakeholder expectations.

6. Objectives of project management

7. Definition: Project management is the process of planning, executing, and closing projects to achieve specific objectives within time, cost, and scope constraints. Purpose: It aims to efficiently manage resources and guide a project to successful completion while meeting stakeholder expectations. Project Management Key Components: Scope: Defining the project's boundaries and deliverables. Time: Managing the schedule to meet deadlines. Cost: Budgeting and controlling expenses.

8. Project Management 4. Phases: Project management typically follows five phases: initiation, planning, execution, monitoring & controlling, and closing. 5.Tools & Techniques: Utilizes various tools (e.g., Gantt charts, project management software) and techniques (e.g., risk management, scheduling) for effective management. 6. Importance: Ensures organized, efficient delivery of projects that align with business goals and optimize resource use. 7. Industries: Used across various industries such as construction, IT, healthcare, and marketing to manage projects of any size or complexity.

9. Steps involved in Project Management 1. Initiation: Define the project’s purpose and goals. Identify stakeholders and get project approval. Create a basic outline of the project. 2. Planning: Break the project into tasks and set timelines. Allocate resources (people, budget, materials). Identify risks and plan how to manage them. Create a detailed project roadmap.

10. Steps involved in Project Management 3. Execution: Start the actual work by assigning tasks. Monitor progress and adjust if needed. Keep communication open with the team and stakeholders. 4. Monitoring & Controlling: Track the project’s progress against the plan. Manage any changes in schedule, budget, or scope. Control risks and ensure the project stays on track. 5. Closing: Complete all tasks and deliver the final product. Get feedback and approval from stakeholders. Review the project and document lessons learned.

11. Project Network Analysis It is a technique used in project management to plan, schedule, and control a project by visually mapping out tasks and their dependencies. It helps project managers understand the sequence of activities, determine the critical path (the longest sequence of dependent tasks), and identify potential bottlenecks. Key aspects include: 1.Visual Representation : Tasks are represented as nodes, and dependencies between tasks are shown with arrows, creating a network diagram. This visual map makes it easy to see the flow of work. 2.Task Dependencies : The relationships between tasks are clearly defined, showing which tasks must be completed before others can start. This ensures that the project flows smoothly without delays.

12. 3.Critical Path Identification : The critical path is the longest sequence of dependent tasks that determines the project's minimum completion time. Delays in any of these tasks directly impact the overall project timeline. 4.Resource Management : Project network analysis helps allocate resources efficiently by showing where resources are needed most and identifying where tasks can overlap or be streamlined. 5.Time Management : By analyzing the network of tasks, project managers can estimate the project’s duration and manage time effectively to meet deadlines. 6.Risk Management : It helps identify potential delays or risks in task dependencies, enabling proactive problem-solving and contingency planning. 7. Optimization : It allows for project optimization by finding opportunities to compress the schedule, either by shortening task durations or overlapping tasks (called "fast-tracking").

13. Concept of CPm /Pert CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique) are both project management methodologies used to plan, schedule, and control complex projects. CPM & PERT techniques are called as network techniques used in project management. These techniques are useful in finding out the important predictions related to time & sequence of the project. The concept of CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique) is crucial in project management because it helps in: 1. Efficient Planning : Both methods assist in mapping out project tasks, timelines, and dependencies, ensuring smooth execution.

14. Concept of CPm /Pert 2.Time Management : CPM focuses on identifying the longest path (critical path) to highlight essential tasks that must be completed on time to avoid delays. PERT, on the other hand, estimates task durations under uncertainty, helping manage timelines effectively. 3. Resource Allocation : By identifying critical and non-critical tasks, these methods guide managers in prioritizing resources to avoid bottlenecks. 4. Risk Management : PERT's probabilistic approach helps in assessing risks and preparing for uncertainties, while CPM ensures that key milestones are monitored. 5. Monitoring and Control : Both techniques allow continuous tracking of progress and deviations, improving decision-making and adjustments throughout the project. In short, CPM/PERT are essential for optimizing time, resources, and risk in complex projects.

15. Concept of CPm /Pert To understand the basic concepts involved in PERT/CPM, consider the following network diagram. It connects the events & activities to each other. E2 E1 E3 E4 E5 A B C D E NETWORK DIAGRAM

16. In a diagram above E1, E2, E3, E4 and E5 are representing events. A, B, C, D and E represents activities. The activity is the time-consuming part of the project. We may say that activity represents the job. The event is also known as node and it represents the start or end of the project. Activities are represented by arrows and events are shown by circles or rectangles. E2 E1 E3 E4 E5 A B C D E When activities are connected to the events, it forms a network. Or we may say that Network is collection of activities and events connected to each other. PERT is “event oriented” and CPM is “activity based”. NETWORK DIAGRAM

17. PERT The basis of PERT network is event-based. Important terminologies : 1. Event : The event could be defined as the significant point in the project. It could be start or end of the project. It does not consume time or resources. 2. Predecessor event : The event that immediately comes before another event without any intervening is called the predecessor event. 3.Successor event : The event which immediately follow another event without any intervening events are called successor events. It is important to note that PERT is actual performance of a task, it is time consuming part of the PERT network and it needs resources to accomplish task.

18. PERT Rules while drawing PERT diagram : Arrows should be straight . Do not keep the small angles enclosed between events. Avoid loop networking. Different persons may draw different diagrams based on their decision-making. They may decide which events will happen concurrently or one after the other.

19. Network problem : Problem : Consider the following simple example to draw PERT diagram. Problem is related to finding, selecting, cleaning office, interior decoration, advertisement for starting office and finally starting of the office with formal function. Solution : The events can be numbered as follows: Event 1 : Locating Office site Event 2 : Selecting of Building location for office is done Event 3 : Actual selection of office Event 4 : Cleaning of office done Event 5 : Interior decoration starts Event 6 : Interior decoration finished

20. Event 7 : Advertisement Event 8 : Prepared list of invites Event 9 : Invitations are sent Event 10 : Office is opened PERT Diagram : 7 1 3 8 2 9 5 4 6 10

21. CPM Following are few points which differs CPM from PERT : CPM is based on activity. CPM does not count uncertainties in project. In CPM time is related with cost. Important Terminologies : 1. CPM : CPM is a set of steps for using network analysis to identify those tasks which are on the critical path. 2. Critical Path : It is the path of activities where any delay in the completion of these tasks will increase the delay in the project if an action is not taken.

22. CPM CPM is useful for : Identifying tasks which should be completed on time for the entire project to be completed on time. Identifying tasks which can be delayed for some time if resource needs to be reallocated. It helps in finding the minimum length of time needed to complete a project. It finds out both the early start and the late start date for each an every activity in the schedule.

23. CPM Events are associated with time. The time definitions related to CPM are as follows : Earliest start time (EST) : This time is the earliest occurrence time for the event from which the activity starts. Earliest finish time (EFT) : This is the earliest time from where event originates plus the duration of the activity. Latest start time (LST) : This time is latest occurrence time for the event at which the activity arrow stops minus the duration for the activity. Latest finish time (LFT) : This time is the latest occurrence time for the node at which the activity arrow terminates or stops.

24. Network problem : Problem : Consider the following simple example to draw CPM diagram. Problem is related to finding, selecting, cleaning office, interior decoration, advertisement for starting office and finally starting of the office with formal function. Solution : The CPM – Activities are as follows: Activity A : Find out the office location from the number of locations Activity B : Select the building and office in it Activity C : Allocate work to cleaners Activity D : Office cleaning Activity E : Implement interior decoration Activity F : Office opening advertisements

25. Activity G : Make an invitee list Activity H : Dispatch invitations Activity I : Officially open office CPM Diagram : 50 10 30 20 40 80 90 70 In the diagram above 10,20,30,…… are numbering given for the events A H G B C D I E

26. Difference between pert & cpm PERT CPM 1. This technique is event based. 1. This technique is activity based. 2. PERT considers the uncertainties involved in the project. 2. CPM does not consider uncertainties involved in estimation of time of execution activity. 3. It does not consider the time. 3. It considers the time and is related to cost. 4. More flexible for handling project uncertainties 4. Less flexible; good for routine tasks with known durations 5. No clearly defined critical path; more focus on task variability 5. Identifies a critical path that cannot be delayed 6. Mainly used for non-repetitive, research, or innovative projects 6. Mainly used for repetitive, well-known projects 7. Ideal for projects with uncertain task durations (R&D, new projects 7. Suitable for well-defined projects with predictable tasks

27. Concept of Break Even Analysis Break-even analysis is a crucial financial tool used in project management to determine when a project will become profitable. It helps managers identify the point at which total revenue equals total costs, meaning the project will neither gain nor lose money — this is the break-even point (BEP) . In project management, break-even analysis is often used to evaluate the financial viability of a project, set pricing strategies, and assist in decision-making related to costs and resource allocation. It’s particularly useful in forecasting when the project will start to generate positive returns, providing clarity on financial performance.

28. Concept of Break Even Analysis Key Factors Considered in Break-even Analysis 1. Fixed Costs (FC): These are costs that do not change with the level of output or activity within the project. They remain constant regardless of the project's success or failure until the break-even point is reached. Examples include rent, salaries, insurance, equipment costs, and any long-term contracts. Fixed costs are essential in determining the baseline expenses that must be covered to avoid losses.

29. 2. Variable Costs (VC): Variable costs fluctuate depending on the level of output or activity. These costs are directly related to the production or execution level of the project. Examples include raw materials, direct labor, utilities, and shipping costs. The higher the output, the more variable costs are incurred. These costs are crucial to understanding the total cost structure. 3.Total Costs (TC): Total costs are the sum of fixed and variable costs. As output increases, variable costs increase while fixed costs remain constant. Total costs are plotted against revenue to determine where they intersect, indicating the break-even point.

30. 4.Revenue: Revenue is the total income generated from the sale of goods or services. In project management, this represents the earnings from project outcomes, such as product sales, service fees, or project deliverables. The goal is to generate sufficient revenue to cover total costs and eventually surpass them to make a profit. 5.Contribution Margin (CM): It is the difference between the sales price per unit and the variable cost per unit. It indicates how much revenue from each unit sold contributes to covering fixed costs and, once fixed costs are covered, contributes to profit. The formula for contribution margin per unit is: Contribution Margin per Unit = Sales Price per Unit - Variable Cost per Unit

31. 6. Break-even Point (BEP): It is the point where total revenue equals total costs (both fixed and variable). Beyond this point, any additional revenue represents profit. It can be expressed in terms of units or monetary value, and the formula is: Break-even Point (units) = Fixed Costs Sales Price per Unit - Variable Cost per Unit In monetary terms, the break-even point can be calculated as Break-even Point (sales value) = Fixed Costs ​ Contribution Margin Ratio Where Contribution Margin Ratio is calculated as: Contribution Margin Ratio = Contribution Margin  Sales Price Per Unit

32. Steps in Break-even Analysis Identify Fixed and Variable Costs : The first step is to determine all costs involved in the project and classify them as either fixed or variable. 2. Determine Contribution Margin : Subtract variable costs from the sales price to find out how much each unit contributes to covering fixed costs. 3.Calculate the Break-even Point : Use the formula to calculate how many units need to be sold to cover all costs. 4. Assess Revenue and Costs : Compare different production levels or sales scenarios to understand the financial implications and when the project will become profitable.

33. Example of Break-even Analysis Q .Assume a project has: Fixed Costs: $50,000 Variable Cost per Unit: $10 Sales Price per Unit: $25 Solution : 1 . Contribution Margin: CM per unit = Sales Price − Variable Cost = 25 − 10 =15 2. Break-even Point (units): BEP = 50,000 = 3333 units 15  The project must sell 3333 units to break even.

34. Break-even Chart

35. Break-even Chart The break-even chart visually represents the relationship between total costs, total revenue, and the break-even point. The x-axis represents the number of units sold, and the y-axis represents costs and revenue. Here's how the chart works: Fixed Cost Line : A horizontal line representing the fixed costs that do not change regardless of the number of units produced or sold. Total Cost Line : A line that starts at the fixed cost and rises with variable costs as more units are produced. Revenue Line : A line that starts at the origin and increases as the number of units sold increases. The intersection of the Total Cost Line and Revenue Line is the Break-even Point , where the project covers all costs but makes no profit.

36. The break-even chart shows the relationship between total costs and revenue as the number of units sold increases: The red line represents the total costs (fixed and variable). The green line represents the revenue generated by selling units. The blue point marks the break-even point , where total costs equal total revenue. For this example, the project breaks even at around 3,333 units . At the break-even point, no profit or loss is made, and any sales beyond this point lead to profit.

37. Progress Tracking Charts Bar Charts Gantt Charts Histogram

38. Bar Charts 1. Description: Bar charts are visual tools used to display and compare data across different categories. In project management, bar charts help track progress, compare performance metrics, and visualize various aspects of a project’s status. 2.Key Features: 1. Bars Represent Data : Each bar represents a category or task. The length or height of the bar corresponds to the value or quantity of that category. 2. Simple and Clear : They provide a straightforward way to compare different items or phases within a project. 3. Categorical Comparison : Useful for comparing different categories side-by-side, such as task completion rates or budget utilization.

39. 3. Types of Bar Charts : Vertical Bar Chart : Description : Displays bars extending vertically from the x-axis, with each bar representing a different category. Usage : Commonly used for comparing values across different categories. Useful when categories are fewer and distinct. 2. Horizontal Bar Chart : Description : Displays bars extending horizontally from the y-axis, with each bar representing a different category. Usage : Useful when category names are long or when there are many categories. Also effective for ranking items.

40. 4. How to Use Bar Charts for Progress Tracking ? Track Task Completion : Example : Display the percentage completion of various tasks in a project. Visual: Compare Performance Metrics : Example : Compare the performance of different teams or project phases based on key performance indicators (KPIs). Visual:

41. Visualizing Milestones : Example : Track the achievement of project milestones or deadlines. Visual: 5.Advantages : Clarity : Provides a clear visual representation of data, making it easy to understand and compare. Quick Comparison : Allows for rapid comparison of different categories or metrics. Flexibility : Can be adapted to various types of data and project needs..

42. Gantt Charts 1. Gantt Chart Definition & Overview : A gantt chart is a horizontal bar chart used in project management to visually represent a project plan over time. Gantt charts typically show you the timeline and status—as well as who’s responsible—for each task in the project. Here’s a quick look at the details a gantt chart enables you to capture at a glance: How a project breaks down into tasks When each task will begin and end How long each task will take Who’s assigned to each task

43. Gantt Charts How tasks relate to and depend on each other When important meetings, approvals, or deadlines need to happen How work is progressing in a project The full project schedule from start to finish In other words, a gantt chart is a super-simple way to communicate what it will take to deliver a project on time and budget. That means it’s a whole lot easier to keep your project team and stakeholders on the same page from the get-go.

44. 2.Components of Gantt Charts : Let’s break down the basic parts of a gantt chart so you understand how they function in a project plan. Task list : Runs vertically down the left of the gantt chart to describe project work and may be organized into groups and subgroups Timeline : Runs horizontally across the top of the gantt chart and shows months, weeks, days, and years Dateline : A vertical line that highlights the current date on the gantt chart Bars : Horizontal markers on the right side of the gantt chart that represent tasks and show progress, duration, and start and end dates Milestones : Yellow diamonds that call out major events, dates, decisions, and deliverables Dependencies : Light gray lines that connect tasks that need to happen in a certain order Progress : Shows how far along work is and may be indicated by percent complete and/or bar shading Resource assigned : Indicates the person or team responsible for completing a task

45. 3. Key Features of Gantt Charts: Task Scheduling : Clearly shows the start and end dates of each task. Visualizes how tasks are spread over the project timeline, helping managers understand which tasks should be completed and when. Task Dependencies : Shows relationships between tasks (e.g., which tasks depend on others to start or finish). Helps manage and track dependencies so that delays in one task can be identified and their effect on the rest of the project can be addressed. Real-Time Progress Tracking : Gantt charts allow managers to see which tasks are on schedule, behind, or ahead. Bars are often shaded or filled to show the percentage of completion. Milestones : Milestones (important checkpoints or key dates) can be marked on the Gantt chart to track critical moments in the project timeline. Resource Allocation : It can also show the resources (people, equipment, budget) assigned to each task, helping ensure that resources are optimally allocated across the pr

46. 4. Gantt Chart Examples :

47. HIstogram 1. Definition : A histogram is a type of bar chart used in project management to represent the distribution of data over defined intervals. It provides insights into the frequency or number of occurrences of certain values, such as task durations, costs, or resource usage within a project. 2. Key Features: 1. Frequency Distribution : Shows how data points (e.g., task durations or costs) are spread across different ranges or intervals (called bins). 2. Vertical Bars : Each bar represents a range of data values, with the height indicating the frequency or count of occurrences within that range. 3.Analyzing Variability : Helps identify trends, patterns, or bottlenecks in resource usage or task performance.

48. 3. How to Use Histograms for Progress Tracking in Management ? Resource Allocation : Application : Analyze the frequency of resource usage across different ranges to optimize allocation. Example : Visualize how many hours different resources are used within specified ranges (e.g., 10-20 hours, 21-30 hours). Task Duration Analysis : Application : Understand the distribution of task durations to improve time estimates and scheduling. Example : Display how often tasks fall into different duration ranges (e.g., 1-3 days, 4-6 days). Cost Analysis : Application : Track cost distributions to identify trends or deviations from the budget. Example : Show the frequency of costs falling within various budget ranges (e.g., $1000-$2000, $2001-$3000).

49. 4 . Examples : Eg 1 : Shows the simple Histogram of arrivals per minute

50. Eg 2 : Shows people assigned for project & those needed for each stage of development