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1
Lloyd Institute of Engineering & Technology,
Greater Noida
MANAGEMENT CONTROL
The effectiveness of all activities such as scheduling and staffing,
which are planned at a later stage, depends on the accuracy with
which the below project parameters have been estimated.
•CostHow much is it going to cost to complete the project?
•DurationHow long is it going to take to complete the project?
•EffortHow much effort would be necessary for completing the
project?
•Scheduling Based on estimations of effort and duration, the
schedules for manpower and other resources are developed.
•StaffingStaff organization and staffing plans are made.
•Risk Management This activity includes risk identification,
analysis, and abatement planning.
•Miscellaneous Plans This includes making several other plans
such as quality assurance plan. configuration management plan,
etc.
12 Lloyd Institute of Engineering & Technology,
Greater Noida
MANAGEMENT CONTROL
Management,ingeneral,involvessetting
objectivesforasystemandthen
monitoringtheperformanceofthesystem.
Especiallyinthecaseoflargeundertakings,
therewillbealotgoingonaboutwhich
managementshouldbeaware.
Thiswillinvolvethelocalmanagersindata
collection.Baredetails,suchas"locationX
hasprocessed2000documents',willnot
beveryusefultohighermanagement:data
processingwillbeneededtotransformthis
rawdataintousefulinformation.This
mightbeinsuchformsas"percentageof
recordsprocessed"."averagedocuments
processedperdayperperson'and
"estimatedcompletiondate".
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4
Lloyd Institute of Engineering & Technology,
Greater Noida
COST-BENEFIT EVALUATION TECHNOLOGY
It consider
-the timing of the costs and benefits
-the benefits relative to the size of the investment
Common method for comparing projects on the basic of their cash flow
forecasting.
•Net profit
=Total income -Total costs
•Payback period
= Time taken to break even
•Return on Investment (ROI)
=
averageannualprofit
totalinvestment
×100%
•Net present Value
•Internal rate of return
15 Lloyd Institute of Engineering & Technology,
Greater Noida
Inanyprojectevaluationweshouldidentifytherisksandquantifytheireffects.
Oneapproachistoconstructaprojectriskmatrixutilizingachecklistofpossible
risksandclassifyingrisksaccordingtotheirrelativeimportanceandlikelihood.
Importanceandlikelihoodneedtobeseparatelyassessed-wemightbeless
concernedwithsomethingthat,althoughserious,isveryunlikelytooccurthan
withsomethinglessseriousthatisalmostcertain.Tablebelowillustratesabasic
projectriskmatrixlistingsomeofthebusinessrisksforaproject,withtheir
importanceandlikelihoodclassifiedashigh(H),medium(M),low(L)or
exceedinglyunlikely(-).Sothatprojectsmaybecompared,thelistofrisksmustbe
thesameforeachprojectassessed.Itislikely,inreality,thatitwouldbelonger
thanshownandmoreprecise.Risk Importance Likelihood
Client rejects proposed look and feel of site H −
Competitors undercut prices H M
Warehouse unable to deal with increased demand M L
Online payment has security problems M M
Maintenance costs higher than estimated L L
Response times deter purchasers M M
RISK EVALUATION
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6
Lloyd Institute of Engineering & Technology,
Greater Noida
STRATEGIC PROGRAM MANAGEMENT
Strategic project management identifies and implements the organisation’s long-
terms goals and objectives into the project. With top tier management involvement,
it explains why the organisation exists and the context within which it operates.
There are three common components which drive the project to its ultimate goal for
the company:
1. Strategic analysis
This forms the basis for which projects an organisation chooses to undertake. Each
project needs to link to the organisation’s mission and be key to meeting long-term
objectives.
However, bearing in mind that strategic management is about the big picture, it also
addresses external factors that could affect progress. Thus, project managers often
use strategic analysis tools such as PESTLE to identify potential issues and minimise
their impact.
18 Lloyd Institute of Engineering & Technology,
Greater Noida
STEPWISE PROJECT PLANNING
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9
Important Questions
Lloyd Institute of Engineering & Technology,
Greater Noida
1.Define Management and mention the activities involved in it.
2.Mention some ways of categorizing software projects.
3.Define stakeholders and how they set the objectives?
4.Mention some of the cost-benefit evaluation techniques.
5.How the risk is evaluated in the software project?