Unit 1

1.​ Engineering management

Engineering management is a field that focuses on managing teams and projects in

engineering. It combines knowledge of engineering with skills in leadership, organization,
and business to ensure that engineering projects are completed successfully, on time, and
within budget. In simple terms, it’s about making sure engineers have what they need, that
work gets done efficiently, and that projects meet their goals.

Functions of Engineering Management/ functions of technology management

1.​ Planning
Planning involves setting goals and figuring out how to achieve them. Engineering managers
decide what needs to be done, who will do it, and how long it will take.

2.​ Decision making

Engineering managers make decisions about how to proceed with a project, such as which
methods to use, what technologies to adopt, or how to address issues that arise.
Example: If the team needs to choose between two different tools for a project, the manager
weighs the pros and cons and makes the best choice for the team and the company.

3.​ Organizing
Organizing means making sure the right people, tools, and materials are in place to carry out
the plan. Engineering managers arrange the resources needed and assign tasks to team
members.
Example: The manager decides which engineers should work on specific tasks based on their
skills and ensures that everyone has what they need to do their job.

4.​ Leading technical people

Leading is about motivating, guiding, and supporting the engineering team. Engineering
managers need to help the team stay focused, work well together, and solve problems.
Example: If a team member is struggling with a task, the engineering manager helps them
overcome obstacles and ensures everyone is working toward the same goals.

5.​ Controlling
Controlling means checking the progress of the project to make sure things are going
according to plan. If there are any issues (like delays or unexpected problems), the
engineering manager steps in to make corrections.

Skills required for EM

Engineering Knowledge: A strong understanding of engineering principles is important so managers
can make informed decisions.

Leadership: Being able to guide and motivate a team is key to success in engineering management.

Project Management: The ability to organize tasks, set deadlines, and manage the entire project
process is crucial.
Problem Solving: Engineering managers must think critically and come up with solutions to problems
that arise during a project.

Communication: Being able to clearly explain ideas and project status is important, both with
technical teams and other departments.

Planning and Forecasting

Planning and forecasting are two connected processes that play a crucial role in making smart choices
and preparing for the future in business, finance, and economics. Planning setting targets, figuring out
the best way to reach those targets, and using resources (time, money, and people) wisely.
Whereas forecasting means making educated guesses about future events or trends using past
information, patterns, and statistical studies. It offers insights into possible outcomes, helping
organizations and individuals make smart decisions, manage risks, and prepare for the future.
The nature of forecasting involves using past data, trends, and patterns to make informed
predictions about future events or outcomes. Forecasting is vital to planning and decision-making
in various fields, such as business, finance, economics, and meteorology. These are some of the
natures forecasting include:

Scientific Management

The use of scientific principles and techniques in various managerial functions is known as scientific
management. It is the art of knowing exactly what you want your employees to do and seeing that
they do it in the best and cheapest ways.
This helps workers be more productive, and it helps companies save time and money.
Developed by Frederick Winslow Taylor in the late 19th and early 20th centuries, it was one of the
first systematic approaches to management in industrial settings.

Principles of Scientific management

Here are the four key principles of Taylor's scientific management:

Scientific Job Analysis: Taylor advocated studying each job's tasks scientifically to determine the
best way to perform them. This involved breaking down tasks into smaller parts and optimizing each
part for maximum efficiency.

Selection and Training: Hire workers based on their skills and abilities relevant to the job. Provide
thorough training to ensure they can perform their tasks efficiently and effectively.

Cooperation Between Workers and Management: Establish a collaborative relationship between

workers and management. Clearly define roles and responsibilities, and encourage open
communication and cooperation to achieve common goals.

Division of Work: Separate the planning and execution roles. Management should focus on planning,
organizing, and overseeing the work, while workers should concentrate on executing the tasks.
Incentive Systems: Introduce performance-based incentive systems to motivate workers. By linking
pay to productivity, workers have a financial incentive to improve their performance and efficiency.

Unit 2

Product Management

Product management is the process of overseeing the entire lifecycle of a product, from its initial idea
to its eventual release and beyond. It involves understanding customer needs, defining the product
vision, working with various teams to create the product, and ensuring its success in the market. Let’s
break it down step by step:

1. Understanding the Problem

A product manager’s job starts with figuring out what problem the product will solve. They talk to
customers, do research, and look at what competitors are doing. This helps them understand:

What customers need.

What’s missing in the market.
What kind of product will make a difference.

2. Creating a Vision and Strategy

Once the PM knows the problem, they create a vision for the product. This is like a plan for how the
product should look and what it should do. They set clear goals and decide what features the product
should have. This helps guide the entire team to make the right decisions.

3. Market Research & Customer Insights

Product managers must deeply understand the market and customers. This involves:

Conducting surveys, interviews, and focus groups with potential users.

Analyzing competitors and trends in the market.
Identifying gaps and opportunities that the product can fill.

4. Working with Teams

Product managers work with different teams to turn the idea into a real product. These teams include:

Designers: Who make the product easy to use and visually appealing.
Engineers (Developers): Who build the product and make sure it works.
Marketing: Who tell customers about the product and how it can help them.
Sales & Support: Who help customers after they buy the product and gather feedback.

5. Building the Product

In this phase, the product starts to take shape. The PM works closely with engineers and designers to
ensure the product is built the right way. This is where they manage the development process, solve
issues that come up, and make sure things are on track.

6. Testing and Getting Feedback

Before launching the product, the PM needs to make sure it works as expected. They might release a
version to a small group of people (called beta testing) to gather feedback. This helps find and fix
bugs or make improvements based on real user experiences.

7. Launching the Product

Once the product is ready, it’s time to launch! The product manager coordinates with marketing and
sales to let customers know about the product and how it can help them. A successful launch means
the product gets noticed and used by people.
8. Post-Launch & Continuous Improvement
After launch, the product manager’s job isn't over. They continue to monitor the product’s
performance and gather user feedback

9. End-of-Life (EOL)
Eventually, a product may become outdated or no longer serve the company’s goals. The product
manager decides when to retire the product and how to manage its exit from the market.

Skills need: same as em

Managing technology through product lifecycle

Technology lifecycle management is the comprehensive process of overseeing technology assets from
inception to retirement. Managing technology through its product lifecycle involves several distinct
stages, each requiring specific strategies and practices to ensure successful development, deployment,
and retirement.

Let’s explore the stages and their implications in detail.

1. Initiation & Planning Stage

This is the conceptual phase, where the idea or need for a technology solution is identified. The
project is scoped, and objectives are defined. It includes:
●​ Feasibility study: Assess the technological, financial, and operational feasibility.
●​ Resource allocation: Define the team, budget, and timeline.
●​ Risk assessment: Identify potential risks (technical, financial, operational) and how to
mitigate them.

2. Development & Design Stage

The project begins its execution phase, and the technology solution is developed or customized to
meet the defined requirements.
Key Focus:
●​ System design and prototyping.
●​ Development of software/hardware as required.
●​ Testing to ensure that the solution meets quality standards and user expectations.

Actions in IT:
●​ Design and coding: Develop the software or configure the technology.
●​ Testing: Perform unit, integration, and system testing.
●​ Documentation: Create user manuals and system guides.
3. Implementation & Deployment Stage
The developed solution is implemented into the operational environment.
Key Focus:
●​ Install the product, system, or software into the live environment.
●​ Train users and provide support.
●​ Monitor the initial performance to ensure the system meets expectations.

4. Maintenance & Growth Stage

The technology is in operation and is continuously monitored, maintained, and updated to ensure it
remains functional and relevant.
Key Focus:
Regular updates to the system or software to address security issues, bugs, or new requirements.
Scaling the system as usage grows or business requirements evolve.
Ongoing support to ensure user satisfaction.

5. Decline & Retirement Stage

The technology or system is no longer effective, becomes obsolete, or is replaced by newer solutions.
Key Focus:
Phase out the system while ensuring data migration, security, and compliance.
Retire the system in a way that doesn’t disrupt business operations.
Actions in IT:
Data migration: Move important data to newer systems.
Decommissioning: Retire the software or hardware safely.
Post-retirement support: Offer limited support to existing users before the system is completely shut
down.

The key to managing technology through the product lifecycle is:

Adaptation: Continuously adapt to market demands, feedback, and competition.

Innovation: Ensure innovation during the introduction and growth stages to maintain competitiveness.
Efficiency: Focus on efficiency during maturity to maintain profitability.
Discontinuation/Upgrade: Know when to discontinue or upgrade the technology during the decline
phase.

Product development process: same written in product management

Production planning and control systems :

In IT project management, Production Planning and Control (PPC) involves organizing, scheduling,
and overseeing the processes involved in the development and delivery of a project. This ensures that
resources (including time, budget, and human capital) are effectively allocated to meet project goals,
milestones, and deadlines.

In the context of Information Technology (IT) Project Management, the steps of Production Planning
and Control (PPC) can be adapted to suit the unique characteristics of software development, system
integration, and IT service delivery. Below is a breakdown of the steps, redefined for IT project
planning and control:

1. Planning
In IT project management, planning defines the scope, objectives, resources, and schedule of the
project. It establishes the blueprint for how the project will be executed, developed, and delivered.
This includes:
●​ Defining project scope
●​ Resource planning
●​ Timeline and milestone setting
●​ Risk management

2. Routing
In IT, routing refers to determining the sequence of tasks and the flow of work within the project. It
establishes how different teams and technologies interact throughout the development lifecycle.

3. Scheduling
Scheduling in IT projects focuses on determining when specific tasks or milestones will be completed,
optimizing the use of time and resources.

4. Loading
Loading in IT project management involves determining how much work each team or individual is
assigned and ensuring that workloads are balanced. This step ensures that no team member or
resource is overloaded.

5. Dispatching
Dispatching in IT project management refers to the release of tasks and instructions to team members
and ensuring that resources are in place for execution. This step ensures that all elements are ready to
begin work, according to the established schedule and plan.

6. Follow-up (Expediting)
Follow-up in IT project management involves monitoring the project’s actual performance and
comparing it to the expected performance. This step is critical for identifying and addressing issues
that may cause delays or defects.

Product Quality

Product quality in IT project management refers to how well the software, system, or IT product
meets the requirements, functions as expected, and satisfies the needs of the users. Quality is not just
about making sure the product works; it’s about ensuring that the product is reliable, efficient,
user-friendly, and free of defects.
Here are the key qualities of a product in IT project management:

1.​ Functionality: This refers to how well the product performs the tasks or functions it is
designed for. In an IT project, the functionality includes all the features, capabilities, and
actions the software, system, or application can perform. For example, a mobile app for
banking should allow users to check account balances, transfer money, and pay bills.

2.​ Usability: Usability measures how easy and user-friendly the product is. A product with high
usability is intuitive and simple to use, even for people who may not be tech-savvy. For
instance, an IT product like a website or mobile app should have a clear, easy-to-navigate
interface, with options that are easy to understand.

3.​ Reliability: Reliability refers to how dependable and consistent the product is over time. A
reliable IT product should work without crashing, encountering bugs, or failing in unexpected
ways. For example, a website should be available for users to access at all times and respond
quickly to their requests.

4.​ Performance: This quality is about how well the product performs under different conditions,
such as varying loads of data or user traffic. A high-performance IT product should handle
large volumes of data or many users without slowing down or crashing. For example, an
e-commerce website should load quickly even when many users are browsing at the same
time.

5.​ Security: Security ensures that the product protects sensitive data and prevents unauthorized
access or cyberattacks. In IT, a product must have strong security features, such as encryption,
secure logins, and safe data storage. For example, an online banking app must have
encryption to protect user financial data.

Globalization

Globalization in IT project management refers to the process of managing IT projects that involve
multiple countries, cultures, and markets. It focuses on creating products, services, or solutions that
can be adapted and used across the globe, while managing the challenges of working with diverse
teams, technologies, and regulations. Globalization is essential in today’s interconnected world, as
businesses aim to reach a global audience and work with international partners.

Here’s an easy breakdown of how globalization affects IT project management:

1. Working with Teams from Different Countries
In a globalized IT project, you might have team members spread across different countries. These
teams might work in different languages, follow different work hours, and have varying work habits.

2. Adapting Products for Local Markets

Globalization means creating products or services that can be used by people in different countries. If
a company is building an e-commerce website for customers in the U.S., the UK, and Japan, each
version of the website might need different features to suit the needs of those users.

3. Cultural Differences and Communication

Cultural differences can affect how people work and communicate. In some countries, people may be
more formal in business, while in others, they may be more casual. Misunderstandings can occur if
cultural differences are not respected. As a project manager, you must ensure clear communication,
avoid misunderstandings, and foster a collaborative environment that respects all cultures.

4. Cost Management
Global projects often involve outsourcing certain tasks to countries with lower labor costs. For
example, a software development task might be outsourced to a team in India, where costs are lower
than in the U.S. However, managing costs across multiple countries can be tricky due to differences in
currency, wages, and shipping costs. A project manager needs to plan budgets carefully and monitor
costs closely.

5 Security Concerns
When working globally, protecting sensitive data becomes even more important. Different countries
may have different security standards and methods for protecting data.

Benefits of Globalization in IT Project Management:

Access to global talent: Companies can hire the best experts from around the world.
Cost savings: Tasks can be outsourced to countries where labor is cheaper.
Wider market reach: IT products can be adapted to reach customers in different countries, increasing
the potential market.
Innovation: Working with diverse teams from different cultures can lead to new ideas and better
solutions.

Challenges of Globalization in IT Project Management:

Communication problems: Language barriers and cultural differences can cause misunderstandings.
Managing different time zones: Scheduling meetings and coordinating work across time zones can be
difficult.
Legal and regulatory issues: Different countries have different laws, especially regarding data privacy
and security.
Coordinating resources: It can be challenging to manage resources (like equipment, staff, or materials)
across different locations.
Unit 3 and Unit 4

Project planning: written ahead

Project management plan:

A Project Management Plan (PMP) is a formal, approved document used to guide the execution and
control of a project. It outlines how the project will be managed, monitored, and closed. It serves as a
roadmap for project success by ensuring all aspects of the project are carefully planned, coordinated,
and executed.

How to make a project management plan:

1. Identify and State Project Objectives and the Scope of the Project
Firstly, define the project's objectives and boundaries in a clear manner. That is, to put it into words
what has to be done, and to define the area of the project.
2. Identify Stakeholders
Identify all the stakeholders involved in the project, both internal and external.
3. Establish a Work Breakdown Structure (WBS)
Decompose the project into manageable parts by using the Work Breakdown Structure commonly
known as the WBS.
4. Develop a Project Schedule
Plan the timeline for the project’s tasks and milestones.
Identify and estimate the duration of each task or activity.
6. Determine Resource Requirements
Identify and allocate the resources (human, financial, and physical) necessary to complete the project.
7.. Set Performance Metrics and KPIs
Establish how project performance will be measured and tracked.
Define key performance indicators (KPIs) aligned with project goals (e.g., cost performance, schedule
adherence, quality metrics).
8. Prepare for Project Execution and Monitoring
Plan how the project will be executed and monitored to ensure it stays on track.

Project lifecycle
The project lifecycle refers to the series of stages a project goes through from beginning to end. It
helps guide the project from start to finish, ensuring it is well-organized and successfully completed.
The typical project lifecycle includes the following stages:

A.​ Project Initiation

Project initiation is the first step in starting a project. It involves setting up the groundwork and
planning for a successful execution. During this phase, three important tasks are carried out:
specifying the requirements, conducting a feasibility study, and assembling the team.

1.Requirement Specification
Requirement specification is the process of clearly defining what the project is expected to deliver. It
involves gathering information from stakeholders to understand their needs and expectations. The
goal is to create a detailed document that outlines what the project should achieve, what features it
should have, and any specific qualities it should meet

Key elements include:

Stakeholder needs: Understanding what stakeholders (e.g., customers, clients, team members) expect
from the project.
Functional requirements: These define the features or functions that the project must have.
Non-functional requirements: These are related to performance, security, quality, and other standards
that the project must meet.
Constraints and limitations: Identifying factors such as time, budget, technology, or resources that
may limit the project's scope.

2.. Feasibility Study

A feasibility study is about checking if the project is possible or realistic to carry out. This study looks
at whether the project can be done within the given budget, on time, and with the available resources.

3. Assembling the Team

Assembling the team means selecting the right people to work on the project. The team should have
the necessary skills and experience to make sure the project is successful.

B.​ Project Planning

Project planning in IT project management is the process of creating a detailed roadmap that outlines
how to achieve the project’s goals. It involves…..
Here’s an explanation of each component in simple language:
1. Making Task Set
Making a task set means breaking down the project into smaller, manageable tasks or activities. These
tasks represent the specific work that needs to be done to complete the project. By listing all tasks, the
project team can focus on completing each one step by step.
Tasks should be ordered in a way that makes sense for the project’s flow and dependencies.

2. Project Scheduling
Project scheduling involves setting timelines for each task and the overall project. This process helps
determine when tasks should start and finish, ensuring that the project is completed on time.
Key elements include:

Defining deadlines: Assigning start and end dates for each task and for the entire project.
Identifying dependencies: Recognizing which tasks must be completed before others can begin.
Allocating buffer time: Including extra time in case of unexpected delays.

3. Resource Planning
Resource planning involves identifying and organizing all the resources needed for the project.
Resources can include human resources (team members), equipment, software, and other
materials.Effective resource planning helps ensure that the project has the right tools and people to
succeed.
4. Cost Analysis and Budgeting
Cost analysis and budgeting involve estimating how much the project will cost and planning how to
manage that budget. This step ensures that the project is affordable and financial resources are
properly allocated.

5. Quality Planning and Defect Estimation

Quality planning ensures that the project meets the required standards and that the final product is free
from defects. Defect estimation helps predict the potential problems that may arise during the project
Key elements include:

Defining quality standards: Setting specific standards for quality, such as performance, security, or
usability.
Creating quality control processes: Setting up methods to check the quality of work throughout the
project.
Estimating defects: Anticipating how many defects might occur and planning for testing and fixing
them.

6. Risk management

Risk management in project planning is the process of identifying, assessing, and preparing for
potential risks that could affect a project. A "risk" in this case refers to anything that could cause
problems or challenges during the project, potentially leading to delays, cost increases, or failure to
meet project goals.

Here’s a step-by-step breakdown of how risk management works in project planning:

1.​ Risk identification

The first step is to spot all possible risks that could happen during the project. Risks can come from
many sources, such as:

People issues: Like key team members leaving or being unavailable.

External factors: For example, changes in the weather, laws, or market conditions.
Financial problems: Like budget cuts or funding delays.
Technical problems: Such as equipment failures or new technology not working as expected.
Timeline issues: Delays in project tasks or poor planning.

2.​ Risk Assessment

After identifying the risks, the next step is to assess how serious each risk is. There are two important
things to consider:

Likelihood: How likely is it that the risk will actually happen?

Impact: If the risk happens, how bad will the consequences be for the project?

3.​ Risk prioritisation

Each risk is then categorized by how likely and how serious it is. For example:

High likelihood, high impact: Needs immediate attention.

Low likelihood, high impact: Needs a contingency plan in case it happens.
Low likelihood, low impact: Can be monitored but not a big concern.

4.​ Risk response

Once the risks are assessed, the next step is deciding what to do about them. There are different ways
to respond to risks:

Avoid the risk: Change the plan to eliminate the risk entirely. For example, choosing a safer but more
expensive method if there’s a risk of technology failure.
Reduce the risk: Take actions that lower the chances of the risk happening or reduce its impact. For
example, providing extra training to team members to avoid mistakes.
Transfer the risk: Pass the risk to someone else. For example, purchasing insurance to cover the
financial impact of a certain risk.
Accept the risk: Sometimes, risks are not serious enough to change the plan. In this case, you accept
the risk and monitor it.

5.​ Creating a Contingency Plan

A contingency plan is a backup plan. It’s what the team will do if a risk happens despite all efforts to
prevent it. This ensures that the team is prepared for unexpected situations and can act quickly if
something goes wrong.

6.​ Risk monitoring and reviewing

Risk management is an ongoing process. The project team needs to keep an eye on identified risks,
and be ready to address new ones that come up as the project moves forward. If any risks change or
new risks appear, the team should adjust their plans accordingly.

Importance of risk management.

1. Prevents Surprises
Risk management helps identify potential problems before they happen. By planning for risks,
the team can avoid unexpected issues that might delay the project or increase costs.
2. Keeps the Project on Track
When risks are managed well, the project is more likely to stay on schedule and within budget.
If something goes wrong, having a plan in place helps the team fix the problem quickly and keep
moving forward.
3. Helps Make Better Decisions
By understanding the risks, the project team can make informed decisions. For example, they
can choose safer methods, prepare backup plans, or allocate resources in the best way to avoid
risks.
4. Minimizes Negative Impact
If a risk happens, having a plan to deal with it reduces the damage. Whether it's managing
costs, timelines, or quality, effective risk management helps reduce the negative impact on the
project.
5. Builds Confidence in Stakeholders
When stakeholders (like clients, sponsors, or team members) see that risks are being properly
managed, they feel more confident in the project’s success. It shows that the team is prepared
and capable of handling issues that might come up.
6. Ensures Project Success
Risk management is a key factor in achieving project goals. It helps keep the project aligned
with its objectives and increases the chances of completing it successfully.
Importance of project planning

Clear objective
Better time management
Risk management
Resource allocation
Stakeholder satisfaction
Cost vontrol
Team coordination

C. Project execution

Project execution is the phase where the actual work of the IT project takes place. It involves putting
the project plan into action, ensuring that tasks are completed, and the project goals are achieved.
Each component plays a crucial role in ensuring the project runs smoothly and successfully

1.​ Team collaboration

In an IT project, collaboration is especially important because different team members, such as

developers, designers, and testers, need to work in sync. Effective collaboration helps combine
various skills and expertise, allowing the team to overcome challenges, share knowledge,

2.​ Task implementation

Task implementation is the stage where the planned work is carried out. In an IT project, this includes
activities like writing code, developing software, designing user interfaces, or testing systems. Tasks
are often broken down into smaller, manageable pieces and tracked using project management tools
such as Jira or Asana. This helps monitor progress, identify any issues early, and make adjustments as
needed to stay on track.

3.​ Time management

Time management in project execution is about making sure that the project is completed on time,
with all tasks being finished when they are supposed to be.
1. Setting Clear Deadlines
The first step in time management is setting clear deadlines for each task. When you know what needs
to be done and by when, the team can prioritize tasks more effectively. Deadlines help keep everyone
focused and ensure that no part of the project is overlooked.
2. Prioritizing Tasks
Not all tasks are equally important. Time management involves identifying which tasks need to be
done first and which can wait. Prioritizing tasks ensures that the most critical work is completed first,
preventing delays later in the project.
3. Tracking Progress and Adjusting Plans
Time management is not just about setting deadlines; it’s also about regularly tracking progress to
ensure the project is on schedule.
4.​ Managing Risks and Delays
Even with the best planning, unexpected problems can occur, causing delays. Effective time
management involves having contingency plans in place to deal with risks that may delay the project,
such as technical issues, team member availability, or external factors.

4. Cost management

Cost management in project execution is about making sure the project stays within its budget while
still achieving its goals. It involves planning, tracking, and controlling the costs throughout the project
to avoid overspending and ensure that money is used efficiently. Here's a detailed explanation of cost
management during project execution:
1. Budget Planning
The first step in cost management is creating a budget. This budget outlines how much money is
needed for different parts of the project, such as labor, materials, tools, and technology. It sets a clear
financial plan so everyone knows how much money is available and how it should be spent.
For example, in an IT project, the budget might include costs for software licenses, hiring developers,
purchasing hardware, or paying for testing services.
2. Allocating Resources
Once the budget is set, it’s important to allocate money to different resources or tasks based on their
importance. This helps ensure that money is spent where it is most needed.
For example, if coding and testing are critical for the project’s success, a larger portion of the budget
might be allocated to hiring skilled developers or testing tools, while less money may be spent on
non-essential items
3. Tracking Expenses
Throughout the project, it’s essential to track how much money is being spent. Regularly checking
expenses helps ensure the project doesn’t go over budget.
Tools like spreadsheets or project management software (e.g., Microsoft Project, Asana) can help
track expenses and compare them to the planned budget. This allows the team to spot any
overspending early and take action to correct it.
4. Controlling Costs
Controlling costs means keeping expenses under control and making adjustments when necessary. If a
part of the project is costing more than expected, the project manager may need to find ways to reduce
costs or shift resources.
For example, if the cost of hiring a consultant exceeds the budget, the project manager might decide to
reassign some tasks to existing team members or renegotiate the contract with the consultant.
6. Forecasting Costs
Forecasting is the process of predicting future expenses based on current spending and project
progress. By analyzing how much has been spent so far and how much is left to do, the project
manager can predict if the project will stay within budget.

8. Cost Control Techniques

There are several techniques to help manage costs effectively:
Value Engineering: Finding cheaper alternatives to achieve the same result without compromising
quality.
Cost-Benefit Analysis: Comparing the costs of a decision with its potential benefits to ensure it’s
worth the investment.
Earned Value Management: A method for measuring project performance by comparing planned
progress with actual progress to identify cost issues early
 5.​ Communication management
Communication management refers to how information is shared within the team and with
stakeholders during the project. This includes updates on progress, issues, decisions, and changes.
How to manage communication:
Regular updates: Hold regular meetings (daily standups or weekly reviews) to share progress and
discuss issues.
Clear reporting: Ensure that there are clear and consistent reports that show the project’s status, risks,
and progress. For example, using dashboards or status reports.
Stakeholder communication: Keep key stakeholders informed about major developments, decisions,
and risks.
Documentation: Properly document decisions, changes, and technical specifications so that everyone
is aware of what has been decided and why.

D. Project monitoring and control

Project monitoring and control is the process of tracking a project’s progress to ensure that it stays on
track, within budget, and meets its goals. It also involves making adjustments when things go wrong.
1. Quality Assurance and Quality Control
Quality Assurance (QA): This is the process of making sure that the project is being carried out in a
way that meets the expected quality standards. QA is about how the work is done to ensure it will be
done correctly. It involves setting up procedures and standards at the beginning of the project to
prevent mistakes or issues from arising. For example, defining coding standards for software
development or setting expectations for how a product should function.
Quality Control (QC): QC is the process of inspecting and checking the work at various stages to
ensure it meets the required standards. While QA focuses on preventing issues, QC focuses on
detecting and fixing issues after the work is done. This might involve testing software to check if it
works as expected or reviewing a product to ensure it meets the quality standards.

2. Project Audits
What it is: A project audit is a thorough review of the project’s progress, processes, and results. It’s a
way to check if everything is going as planned, if resources are being used effectively, and if the
project is on schedule and within budget. Audits are typically done at certain points during the project
or at the end of key phases.
Project audits help identify any discrepancies or problems early on. For example, if the project is over
budget or falling behind schedule, an audit can uncover the causes. It also helps ensure compliance
with standards, regulations, and best practices. Regular audits provide insight into whether the project
is still aligned with its goals and if adjustments are needed.

3. Change Management
What it is: Change management is the process of managing changes that occur during the project.
This could be a change in project scope, requirements, budget, or timelines. Change management
helps ensure that any changes are carefully considered, documented, and communicated to all
stakeholders.
Key Steps in Change Management:

Identify the change: Recognize when something needs to change, such as a new feature request or a
shift in deadlines.
Evaluate the impact: Assess how the change will affect the project’s cost, timeline, and scope.
Get approval: Stakeholders or project sponsors need to agree to the change before proceeding.
Implement the change: Make the necessary adjustments to the project

Project metrics/ key performance indicators KPI

In IT project management, project metrics or key performance indicators (KPIs) are important
tools used to measure the progress, performance, and success of a project.

1. Schedule Performance Index (SPI)

What it is: This shows if the project is ahead or behind schedule.
Why it’s important: It helps the team know if they are completing tasks as planned or if adjustments
are needed to avoid delays.
Formula:
SPI = Earned Value (EV) / Planned Value (PV)

2. Cost Performance Index (CPI)

What it is: This measures if the project is staying within its budget.
Why it’s important: If the CPI is less than 1, the project is over budget. If it's greater than 1, the
project is under budget. This helps control spending
Formula:
CPI = Earned Value (EV) / Actual Cost (AC)

3. Earned Value (EV)

What it is: This measures the value of the work that has been completed so far, based on the project’s
original budget.
Why it’s important: It shows how much progress has actually been made compared to the planned
progress.
Formula:
EV = % of work completed * Total Budget

4. Planned Value (PV)

What it is: This is the value of the work that was planned to be done by a certain time.
Why it’s important: It acts as a baseline to compare how much work has been completed to what was
expected.
Formula:
PV = % of work planned * Total Budget

5. Actual Cost (AC)

What it is: This is the actual amount of money spent so far in the project.
Why it’s important: Comparing the actual cost with the budget helps track if the project is on track
financially.

7. Defect Density
What it is: This measures how many defects (bugs or issues) are found in the project’s product, often
per unit of work (like lines of code).
Why it’s important: It helps track the quality of the product and ensures that problems are fixed before
the product is finished.
Formula:
Defect Density = Number of defects / Size of work (e.g., lines of code or units tested)

10. Return on Investment (ROI)

What it is: ROI shows whether the project is worth the investment by comparing the benefits it brings
to the cost of doing it.
Why it’s important: It helps determine if the project will make a positive financial impact for the
business.
Formula:
ROI = (Benefit - Cost) / Cost

E. Project closure

Project closure is the final phase in the project lifecycle. It’s when the project is officially completed,
and all activities are wrapped up.
1. Completing the Final Deliverables
What it is: The team makes sure all the tasks and deliverables are completed as planned. This includes
reviewing and ensuring the final product or service meets the agreed requirements.
2. Obtaining Formal Acceptance
What it is: Once the deliverables are ready, the project manager gets formal approval or acceptance
from the client or stakeholders. This is often done through a sign-off, confirming that the project has
met its goals.
3. Closing Contracts
What it is: If there were any external vendors or contractors involved, their contracts are closed out.
This includes making final payments and ensuring that all terms of the contract were met
7. Final Reporting
What it is: A final project report is created that summarizes the project’s outcomes, the goals
achieved, challenges faced, and how they were addressed. This report is often shared with
stakeholders and clients.
9. Closing the Project in the System
What it is: Finally, the project is closed in the project management system or software, which means
all tasks are marked as complete, and the project is archived.

Software process improvement

Software Process Improvement (SPI) in IT project management refers to the systematic approach of
enhancing software development processes to produce higher-quality software products more
efficiently. SPI aims to optimize the way software is developed, tested, and maintained by identifying
weaknesses and implementing improvements throughout the software lifecycle. This process leads to
better project management, reduced costs, increased productivity, and improved product quality.

Methodology for SPI

CMM (Capability Maturity Model) is a framework used to improve and assess the processes involved
in software development and IT project management. It helps organizations understand how mature
their processes are and guides them toward improving those processes to achieve better results. The
model focuses on continuous improvement and is used to enhance the quality of software and IT
projects over time.
CMM Structure
CMM divides the process improvement journey into five maturity levels. Each level represents a
different stage of maturity in the processes used by an organization. These levels are:

Initial (Level 1):

Characteristics: At this stage, the processes are chaotic and ad hoc. There is little to no formal process
in place.
Challenges: Projects are often unpredictable, and outcomes can vary greatly.
Improvement Goal: Start creating some basic processes and structure to make project management
more predictable and controlled.

Repeatable (Level 2):

Characteristics: At this level, basic project management processes are put in place. The focus is on
managing project scope, cost, and schedule.
Key Practices: Establishing requirements, managing risks, tracking progress, and ensuring that there’s
a clear plan for each project.
Improvement Goal: Move from chaos to structured management of projects, ensuring consistency
across projects.

Defined (Level 3):

Characteristics: The organization has well-defined processes that are used across projects. These
processes are documented and standardized.
Key Practices: All projects follow established processes, and the organization begins focusing on
process improvement and knowledge sharing.
Improvement Goal: Standardize processes across the organization for better consistency, and focus on
improving the overall process by analyzing performance data.

Managed (Level 4):

Characteristics: At this stage, processes are measured and controlled using data. Performance is
tracked using metrics, and statistical methods are used to predict and manage project outcomes.
Key Practices: Using data to analyze processes, make decisions, and improve them. There’s a focus on
controlling variation and ensuring consistent performance.
Improvement Goal: Use data and statistical methods to further control and refine processes, improving
the predictability and reliability of project results.

Optimizing (Level 5):

Characteristics: The organization is focused on continuous improvement. Processes are optimized and
fine-tuned based on performance data and feedback.
Key Practices: There’s an ongoing focus on innovation and improving processes. Lessons learned
from projects are incorporated into the processes to continuously improve.
Improvement Goal: Achieve a high level of excellence where the organization is always improving
and refining its processes for even better outcomes.

Benefits of CMM in IT Project Management:

Improved Quality: By following structured processes, projects are more likely to meet quality
standards and customer expectations.
Predictability: With well-defined processes and data-driven decision-making, project outcomes
become more predictable.
Better Resource Management: With defined processes and better planning, resources are utilized more
efficiently
Continuous Improvement: CMM encourages ongoing process improvement, which leads to better
performance over time.

Transition from ISO 9000 to CMM

Integration: Organizations that already have ISO 9000 certifications can use CMM to build on their
existing quality management systems (QMS). While ISO 9000 sets up a baseline for quality
management, CMM provides a structured approach to improving software and development processes
specifically.

Differences:

Scope: ISO 9000 is broader in its application across different industries and processes, while CMM
focuses specifically on software and product development.
Approach: ISO 9000 emphasizes meeting customer requirements and continual improvement, while
CMM focuses on improving specific processes within software development organizations.

Unit 5

ERP (Enterprise Resource Planning)

ERP (Enterprise Resource Planning) is a type of software used by organizations to manage and
integrate the important parts of their business operations.ERP is a system that connects different
departments of an organization, allowing them to share data and work together more efficiently.

Functional modules/ components of ERP

1. Financial Management (FM)

Purpose: Manages financial accounting, reporting, and budgeting within the organization.It helps
businesses track their income and expenses, manage cash flow, and prepare financial statements. By
automating these financial tasks, this module ensures accuracy, compliance, and helps the business
make informed financial decisions.

2. Human Resource management

The Human Resources Module manages everything related to the employees in the organization. It
includes functions like employee records, payroll management, recruitment, attendance tracking,
performance appraisals, and training management.

3. 3. Supply Chain Management (SCM) Module

The Supply Chain Management Module manages the flow of goods and services, from sourcing raw
materials to delivering products to customers. It handles procurement (purchasing of materials),
inventory management (tracking stock levels), and logistics (shipping and delivery).
4. Sales and Distribution (SD) Module
The Sales and Distribution Module handles all activities related to selling and distributing
products.This module ensures that the sales process is smooth, customers receive their products on
time, and invoices are generated accurately.

5. Customer Relationship Management (CRM) Module

The CRM Module focuses on managing the company’s interactions with its customers. It helps
businesses build and maintain strong relationships with their customers by tracking customer details,
preferences, and purchase history.

6.Project Management Module

The Project Management Module is designed for companies that handle complex projects, such as IT,
construction, or consulting services. It helps plan, execute, and monitor projects, ensuring they are
completed on time, within scope, and within budget.

7. Quality Management (QM) Module

The Quality Management Module ensures that the products or services produced meet the required
quality standards.

Before ERP
Before an ERP system, there were different databases of different departments which they managed
on their own. The employees of one department does not know anything about the other department.

After ERP
After the ERP system, databases of different departments are managed by one system called the ERP
system. It keeps track of all the databases within the system. In this scenario, employees of one
department have information regarding the other departments.

Benefits of ERP

1.​ Improved Efficiency: ERP systems reduce the manual effort and risk of errors by automating
repetitive processes.
2.​ Reduced Redundancy: ERP systems eliminate duplicate data entries and improve data
integrity.
3.​ Enhanced Data Security: ERP systems improve data security by centralizing information in a
single platform with controlled access.
4.​ Better Customer Service: With ERP, businesses can track customer orders, monitor delivery
schedules, and manage inventory more efficiently.
5.​ Timely Data Access: ERP systems provide real-time data access, thus helping in making
timely and informed decisions.

Risks/ weaknesses of ERP

1. High Cost
ERP systems can be expensive to set up, especially for small businesses. The software itself can be
costly, and businesses also need to spend money on training employees, customizing the system, and
maintaining it. These costs can be a burden for companies with limited budgets.
2. Complex Implementation
Implementing an ERP system can be a long and complex process. It often involves changing many
business processes, which can disrupt daily operations.
4. Customization Challenges
ERP systems need to be customized to fit the specific needs of a business. However, customization
can be complicated and costly.
5. Data Migration Issues
Moving data from old systems into the new ERP system is often tricky and time-consuming.
6. Vendor deoendence
If the company relies on an external vendor for its ERP system, it could face risks if the vendor goes
out of business, stops offering support, or raises prices.

Implementation of ERP

Implementation of ERP (Enterprise Resource Planning) refers to the process of setting up and
integrating an ERP system into a business to manage its operations

1. Planning and Preparation

Before starting, the business needs to plan how the ERP system will be used. Deciding how much the
company is willing to spend on the ERP system, including setup and maintenance costs.

2. Choosing the Right ERP System

Choosing the right ERP system is a crucial step. Not all ERP systems are the same, so the business
must select one that fits its specific needs.

3. System Configuration and Customization

Once the ERP system is chosen and data is prepared, the next step is configuring and customizing the
system. This involves setting up the system to match the company’s processes, such as accounting,
human resources, or inventory management.

4.Training Employees
After setting up the system, employees must be trained on how to use it effectively. The training
process ensures that everyone understands how the ERP works and how to perform their tasks within
the system.

5. Testing the System

Before fully launching the ERP system, it needs to be tested to make sure it works as expected.

6. Go Live
The go-live phase is when the ERP system is officially launched and used for everyday business
operations. Employees start using the system in their daily tasks, and the business transitions from the
old systems to the new ERP system.

Success and failure factors of ERP implementation: same as benefits and risks

ERP operation
ERP Operations are the everyday tasks involved in running an ERP (Enterprise Resource Planning)
system. These tasks ensure the system works smoothly and helps the business run efficiently.
1. Monitoring System Performance
This means regularly checking the ERP system to make sure it’s running well. If the system slows
down or has errors, it can affect business activities. So, monitoring helps catch and fix issues early.

2. Managing User Access

In ERP systems, different people in the company need different levels of access. For example, a
salesperson may need access to customer information, while an accountant needs access to financial
data. ERP operations involve setting up and controlling who can see or edit what information in the
system to keep everything secure.

3. Handling Daily Business Transactions

ERP systems are used to manage daily tasks, like processing sales orders, updating inventory, or
recording expenses. ERP operations ensure these transactions are entered correctly and the data is
updated in real-time across the business.

4. Generating Reports
ERP systems can create reports to show how the business is doing. For example, it can generate a
report about sales performance or inventory levels. ERP operations make sure these reports are
generated correctly and on time to help managers make decisions.

5. Maintaining Data Accuracy

ERP systems hold important business data, like customer information and financial records. ERP
operations involve checking and updating this data to ensure it’s accurate and up-to-date. This is
important because businesses rely on correct data to make decisions.

6.Providing User Support

Sometimes, employees may face problems or have questions while using the ERP system. ERP
operations include providing support to help them solve problems, answer questions, and make sure
they can use the system effectively.

ERP Maintenance
ERP maintenance involves keeping the system up-to-date and improving its performance over time.
This includes:

System Updates: ERP software needs periodic updates to fix bugs, improve performance, or add new
features. Updates ensure that the system stays secure and efficient.

Bug Fixes and Troubleshooting: If any issues or errors arise within the system, maintenance teams
work to fix them quickly. This keeps the system running smoothly without affecting business
operations

Database Management: Ensuring the database, which stores all company data, is organized and
optimized for better performance. Regular backups are taken to avoid data loss.

Customization and Improvements: As the business evolves, the ERP system may need to be
customized or enhanced to meet new requirements. This may include adding new modules or
adjusting existing ones.
Types of ERP

On-Premise ERP: This system is installed on the company's own servers and computers. The
company is responsible for maintaining and updating it.

Cloud-Based ERP: This type of ERP is hosted on the internet (in the cloud). The vendor manages the
system, and companies pay for using it online. It’s easier to set up and maintain.

Hybrid ERP: This system combines both on-premise and cloud-based features. Some parts of the
system are hosted on the company’s own servers, and others are hosted in the cloud.

Industry-Specific ERP: These ERPs are tailored for specific industries, like manufacturing, healthcare,
or retail. They are customized to meet the unique needs of that industry.

E- business

E-business (electronic business) refers to conducting business activities using the internet or other
electronic networks. It involves buying, selling, and exchanging products, services, or information
over the web. E-business is not just about online shopping, but also includes things like managing
supply chains, collaborating with partners, and offering customer support through digital channels.
Here’s a breakdown of different types of e-business activities:

1. E-commerce:
This is the buying and selling of goods and services online. Websites like Amazon or eBay are
examples of e-commerce platforms.
●​ B2C (Business to Consumer): Companies sell directly to customers (e.g., online stores).
●​ B2B (Business to Business): Companies sell goods or services to other businesses (e.g.,
wholesale suppliers).
●​ C2C (Consumer to Consumer): Individuals sell products to other individuals (e.g., platforms
like Craigslist or Facebook Marketplace

2.. Online Marketing:

Businesses promote their products or services over the internet through strategies like email
marketing, social media, SEO (search engine optimization), and paid ads.

3. Supply Chain Management:

Companies use e-business tools to manage their supply chain, from getting raw materials to delivering
the finished product to customers. It helps improve efficiency and reduce costs.

4. Digital Payments:
E-business also involves digital transactions. Customers pay for products or services using credit
cards, online payment systems (like PayPal), or mobile payment apps.

Benefits of E-Business:
Convenience: Customers can shop anytime and from anywhere.
Global Reach: Businesses can reach customers worldwide.
Cost Savings: Reduced need for physical stores and manual processes.
Faster Transactions: Processes like ordering, payment, and delivery are much quicker.
Challenges of E-Business:
Security Risks: Online transactions can be vulnerable to fraud or hacking.
Technical Issues: Websites or systems may face technical difficulties.
Customer Trust: Some people may feel hesitant to make purchases online due to concerns about
privacy or reliability