📖 Loading…

0 sections · 0 topics · 0 min reading · 0 sessions

Basics of Project Management – Complete Study Notes

IES / ESE GATE PSU

Complete Study Notes for IES ESE Paper I

Ch 1 · Project Lifecycle Ch 2 · Scope & WBS Ch 3 · Scheduling Ch 4 · Cost Management Ch 5 · Risk Management Ch 6 · Quality & Teams Quick Revision

1Project Lifecycle and Initiation►

A project is a temporary endeavour to create a unique product, service, or result. Project management applies knowledge, skills, tools, and techniques to meet project requirements within scope, time, cost, and quality constraints.

Project vs. Operations

Aspect	Project	Operations
Duration	Temporary; defined start and end	Ongoing; continuous
Output	Unique product/result	Repetitive products/services
Resources	Assembled and disbanded	Permanent workforce
Goal	Achieve objectives and close	Sustain the business

Project Lifecycle Phases (PMBOK)

Initiation: Define project; create Project Charter; identify stakeholders
Planning: Define scope; develop schedule; estimate cost; plan quality, risk, procurement
Executing: Perform work defined in plan; manage team; engage stakeholders
Monitoring & Controlling: Track performance; control changes; report
Closing: Formal acceptance; lessons learned; release resources

Project Charter

Formal document authorising the project and project manager's authority
Contains: project purpose, objectives, scope, milestones, budget estimate, stakeholders, risks
Issued by project sponsor or initiating entity

Stakeholder Management

Stakeholder	Role
Project Sponsor	Champions project; provides funding; resolves escalated issues
Project Manager	Leads team; responsible for deliverables, budget, schedule
Project Team	Executes work; provides expertise
Client/Customer	Defines requirements; accepts deliverables
PMO	Project Management Office — sets standards, provides oversight

Triple Constraint (Iron Triangle)

Scope ↔ Time ↔ Cost (Quality at centre) — changing one affects others

Also called "project management triangle"
Modern view adds Quality and Risk as additional constraints
Project success = delivering within scope, on time, within budget, at required quality

ESE Tip: Project lifecycle phases — Initiation → Planning → Executing → Monitoring & Controlling → Closing. The triple constraint is scope, time, cost. Changing any one typically impacts the others.

2Scope Management and Work Breakdown Structure►

Scope management ensures the project includes all — and only — the work required to complete the project successfully. Scope creep (uncontrolled expansion of scope) is a common cause of project failure.

Scope Management Processes

Plan Scope Management
Collect Requirements — interviews, focus groups, workshops, surveys
Define Scope — creates detailed project scope statement
Create WBS — decomposes deliverables into work packages
Validate Scope — formal acceptance of deliverables by client
Control Scope — monitor scope; manage changes to scope baseline

Work Breakdown Structure (WBS)

Hierarchical decomposition of total project work into manageable work packages
100% rule: WBS must capture 100% of project work; nothing outside WBS is in scope
Work package: lowest level of WBS; can be reliably estimated and assigned
WBS Dictionary: detailed description of each WBS element
Deliverable-oriented: WBS organised around deliverables, not activities

Requirements Documentation

Type	Description
Functional requirements	What the system/product must do
Non-functional requirements	Performance, reliability, security, usability standards
Business requirements	Higher-level needs of the organisation
Stakeholder requirements	Needs and expectations of specific stakeholders

Scope Creep vs. Gold Plating

Scope creep: Uncontrolled scope expansion without formal change approval — major risk
Gold plating: Adding extra features not in scope without client request — also to be avoided
Both lead to schedule delays, cost overruns, and quality issues

ESE Tip: WBS is deliverable-oriented, not activity-oriented. The 100% rule: WBS must represent all project work. Work packages are the lowest level — they can be scheduled, costed, and assigned.

3Project Scheduling — Gantt, CPM, and PERT►

Project scheduling defines the sequence and timing of project activities. Gantt charts, CPM, and PERT are the primary tools. This chapter covers their principles as used in project management context.

Gantt Chart

Bar chart showing project activities against a timeline
Invented by Henry Gantt (~1910)
Shows start/finish dates, duration, dependencies, and milestones
Easy to understand but does not show task interdependencies clearly in complex projects
Modern software (MS Project, Primavera) links Gantt to network diagrams

Critical Path Method (CPM)

Deterministic (single time estimate per activity)
Critical path = longest path = project duration; activities on it have zero float
Crashing: reduce project duration by adding resources to critical activities (cost trade-off)

Total Float = LS − ES = LF − EF | Free Float = ES(successor) − EF(activity)

Cost Slope = (Crash Cost − Normal Cost) / (Normal Duration − Crash Duration)

PERT — Probabilistic Scheduling

Expected time: tₑ = (tₒ + 4tₘ + tₚ) / 6

Variance: σ² = [(tₚ − tₒ) / 6]²

Probability Z = (T_S − T_E) / σ_p | where σ_p = √(Σσ² along critical path)

tₒ = optimistic time, tₘ = most likely time, tₚ = pessimistic time
PERT is suited for research/development projects where activity durations are uncertain

Schedule Compression Techniques

Technique	Method	Trade-off
Crashing	Add resources to critical activities	Higher cost
Fast Tracking	Overlap activities originally planned in sequence	Higher risk
Resource levelling	Adjust schedule to balance resource use (may extend duration)	Extends duration

Schedule Baseline and Control

Schedule baseline: Approved version of the project schedule
Schedule variance (SV): SV = EV − PV; negative = behind schedule
Schedule performance index (SPI): SPI = EV/PV; <1 = behind schedule

ESE Tip: PERT uses 3 time estimates; CPM uses 1. PERT is probabilistic; CPM is deterministic. Fast tracking = overlapping activities (risk increases); crashing = adding resources (cost increases).

4Cost Management and Earned Value Analysis►

Cost management involves planning, estimating, budgeting, and controlling costs. Earned Value Analysis (EVA) is the most powerful technique for measuring project performance against both schedule and budget simultaneously.

Cost Estimation Techniques

Technique	Accuracy	When Used
Analogous estimating	Low (±25–50%)	Early stages; based on similar past projects
Parametric estimating	Medium (±10–25%)	Statistical relationship between variables (e.g. cost/unit)
Bottom-up estimating	High (±5–10%)	Detailed WBS available; sum of individual work packages
Three-point (PERT)	High	Uncertainty in estimates; uses optimistic/likely/pessimistic

Earned Value Analysis (EVA) — Key Terms

Term	Definition
PV (Planned Value)	Budgeted cost of work scheduled (BCWS) — what was planned to be spent by now
EV (Earned Value)	Budgeted cost of work performed (BCWP) — the value of work actually done
AC (Actual Cost)	Actual cost of work performed (ACWP) — what was actually spent
BAC	Budget at Completion — total approved project budget

EVA Performance Metrics

CV = EV − AC (Cost Variance; negative = over budget)

SV = EV − PV (Schedule Variance; negative = behind schedule)

CPI = EV / AC (Cost Performance Index; <1 = over budget)

SPI = EV / PV (Schedule Performance Index; <1 = behind schedule)

EAC = BAC / CPI (Estimate at Completion — typical forecast)

ETC = EAC − AC (Estimate to Complete)

VAC = BAC − EAC (Variance at Completion)

Types of Project Costs

Cost Type	Description
Direct costs	Directly attributable to project (labour, materials, equipment)
Indirect costs	Overhead shared among projects (rent, utilities, admin)
Fixed costs	Do not vary with output (equipment hire, permits)
Variable costs	Vary with work output (materials consumed, hourly labour)
Sunk costs	Past expenditure that cannot be recovered — irrelevant to future decisions
Contingency reserve	Budget for known unknowns (identified risks)
Management reserve	Budget for unknown unknowns (unforeseeable risks)

ESE Tip: CPI = EV/AC; <1 means over budget. SPI = EV/PV; <1 means behind schedule. EAC = BAC/CPI is the standard forecast formula. CV and SV negative = bad. Sunk costs should not influence future decisions.

5Project Risk Management►

Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives. Risk management proactively identifies, analyses, and responds to risks.

Risk Management Processes

Plan Risk Management: Define approach, roles, methodology
Identify Risks: Brainstorming, checklists, SWOT analysis, expert judgement
Qualitative Risk Analysis: Probability × Impact matrix; prioritise risks
Quantitative Risk Analysis: Numerical analysis — Monte Carlo simulation, decision trees
Plan Risk Responses: Develop response strategies
Implement Risk Responses: Execute planned responses
Monitor Risks: Track residual risks; identify new risks; evaluate effectiveness

Risk Response Strategies — Threats (Negative Risks)

Strategy	Description	Example
Avoid	Eliminate threat by eliminating cause	Change project scope to exclude risky work
Transfer	Shift risk to third party	Insurance, contract with penalty clause
Mitigate	Reduce probability or impact	More testing, redundant systems, training
Accept	Acknowledge risk; no action (active = contingency; passive = accept consequence)	Small low-probability risks

Risk Response Strategies — Opportunities (Positive Risks)

Strategy	Description
Exploit	Ensure opportunity occurs; eliminate uncertainty
Share	Allocate to third party better able to capture benefit
Enhance	Increase probability or positive impact
Accept	Take advantage if it occurs but do not actively pursue

Risk Register

Living document containing all identified risks, their causes, probability, impact, owner, and response
Updated throughout the project lifecycle

Probability × Impact Matrix

Impact →	Low	Medium	High
High probability	Medium	High	Critical
Medium probability	Low	Medium	High
Low probability	Low	Low	Medium

ESE Tip: Risk response for threats: Avoid (eliminate), Transfer (insurance), Mitigate (reduce), Accept. For opportunities: Exploit, Enhance, Share, Accept. Risk = Probability × Impact. Monte Carlo simulation models uncertainty in project cost/schedule.

6Quality Management and Project Organisation►

Quality management ensures the project satisfies the needs for which it was undertaken. It encompasses quality planning, quality assurance, and quality control across all project processes and deliverables.

Quality Management Concepts

Term	Definition
Quality	Degree to which deliverables meet specified requirements
Grade	Category of products with same functional use but different requirements (low grade ≠ low quality)
Quality Planning	Identify quality standards and determine how to satisfy them
Quality Assurance (QA)	Audit processes to ensure quality standards are followed (process-focused)
Quality Control (QC)	Monitor specific project results to check they meet quality standards (product-focused)
Prevention over inspection	Build quality in rather than inspect it out; defect prevention is cheaper
Cost of Quality (CoQ)	Cost of conformance (prevention + appraisal) + cost of non-conformance (internal + external failures)

Quality Tools

Tool	Use
Pareto chart	80/20 rule — 80% of defects from 20% of causes; prioritise improvement
Cause & Effect (Ishikawa/fishbone)	Identify root causes of defects (6 Ms: Man, Machine, Method, Material, Measurement, Mother Nature)
Control chart	Statistical process control; identify special vs. common cause variation
Scatter diagram	Shows relationship between two variables
Histogram	Distribution of defects by category or time
Flowchart	Process mapping to identify improvement opportunities
Checklist	Tally defects by type for data collection

Project Organisation Structures

Structure	PM Authority	Advantages	Disadvantages
Functional	Little to none	Technical expertise; career path	Poor PM control; slow decisions; "silo" mentality
Projectised	High to total	Full PM control; fast decisions; team loyalty	Inefficient resource use; loss of technical home
Matrix (Weak)	Limited	Better resource sharing	Dual reporting causes conflict
Matrix (Balanced)	Shared PM/Functional	Balance of control and expertise	Complex; potential for conflict
Matrix (Strong)	High	PM control; resource efficiency	Dual reporting; overhead

Team Development — Tuckman's Model

Forming: Team comes together; polite, uncertain; PM provides direction
Storming: Conflict over roles and approaches; PM facilitates resolution
Norming: Team establishes norms; cohesion builds; PM steps back
Performing: High performance; team self-organises; PM empowers
Adjourning: Project ends; team disbands; PM recognises contributions

Conflict Resolution Techniques

Technique	Description	Best Use
Collaborate / Problem-solve	Win-win; work through conflict to find solution both parties accept	Best long-term resolution
Compromise / Reconcile	Give-and-take; both parties concede something	Temporary or partial solution
Withdraw / Avoid	Postpone or retreat from conflict	Not currently important; more info needed
Smooth / Accommodate	Emphasise areas of agreement; downplay differences	Maintain harmony; minor issues
Force / Direct	One party imposes solution	Emergency; decisiveness needed

ESE Tip: Best conflict resolution = Collaborate/Problem-solve (win-win). Worst = Force (win-lose). Tuckman stages: Forming→Storming→Norming→Performing→Adjourning. Pareto = 80% problems from 20% causes.

★Key Facts & Exam Essentials►

Topic	Key Fact
Project lifecycle phases	Initiation → Planning → Executing → Monitoring & Controlling → Closing
Triple constraint	Scope, Time, Cost (Quality at centre)
WBS 100% rule	WBS must capture 100% of project work
WBS orientation	Deliverable-oriented (not activity-oriented)
PERT formula	tₑ = (tₒ + 4tₘ + tₚ)/6; σ² = [(tₚ−tₒ)/6]²
CPM vs PERT	CPM = deterministic (1 time estimate); PERT = probabilistic (3 estimates)
Fast tracking	Overlap sequential activities; increases risk
Crashing	Add resources to critical path; increases cost
CPI formula	CPI = EV/AC; <1 = over budget
SPI formula	SPI = EV/PV; <1 = behind schedule
CV formula	CV = EV − AC; negative = over budget
SV formula	SV = EV − PV; negative = behind schedule
EAC formula	EAC = BAC/CPI
Risk = Avoid	Eliminate threat by eliminating its cause
Risk = Transfer	Insurance, contracts shift risk to third party
Risk = Mitigate	Reduce probability or impact of threat
Tuckman stages	Forming → Storming → Norming → Performing → Adjourning
Best conflict resolution	Collaborate/Problem-solve (win-win)
QA vs QC	QA = process audit (proactive); QC = product check (reactive)
Pareto principle	80% of defects from 20% of causes
Scope creep	Uncontrolled scope expansion; major project risk
Project Charter	Formally authorises project; issued by sponsor
Sunk cost	Past cost that cannot be recovered; irrelevant to future decisions

Login to Access Study Material

Basics of Project Management – Complete Study Notes

Project vs. Operations

Project Lifecycle Phases (PMBOK)

Project Charter

Stakeholder Management

Triple Constraint (Iron Triangle)

Scope Management Processes

Work Breakdown Structure (WBS)

Requirements Documentation

Scope Creep vs. Gold Plating

Gantt Chart

Critical Path Method (CPM)

PERT — Probabilistic Scheduling

Schedule Compression Techniques

Schedule Baseline and Control

Cost Estimation Techniques

Earned Value Analysis (EVA) — Key Terms

EVA Performance Metrics

Types of Project Costs

Risk Management Processes

Risk Response Strategies — Threats (Negative Risks)

Risk Response Strategies — Opportunities (Positive Risks)

Risk Register

Probability × Impact Matrix

Quality Management Concepts

Quality Tools

Project Organisation Structures

Team Development — Tuckman's Model

Conflict Resolution Techniques