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TOPIC – PROJECT MANAGEMENT

METHODOLOGY

Submitted By
Name: Aman Kumar Thakur

MAKAUT Roll No: 30605020040

Year: 3RD Semester: 6th
Paper Name: Project Management
Paper Code: BBA 601

College Name: Narula Institute of Technology

Department: Business Administration (BA)

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Table of Contents

S. NO TOPIC PAGE NO.

1. Introduction 3
2. Description of the topic 4-6
3. Conclusion 7
4. Acknowledgement 8
5. Reference 9

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Introduction

The term “project management methodology” was first defined in the early 1960s when various
business organizations began to look for effective ways that could simplify the realization of
business benefits and organize the work into a structured and unique entity (which was called
“project” later on). Communication and collaboration were the key criteria for establishing
productive work relationships between the teams and departments within one and the same
organization.
Since that time, the term has been changed and modified many times, new definitions have been
created, new elements and functions have been added. Today we consider a project management
methodology as a set of broad principles and rules to manage a specific project that has a definite
beginning and end.
Project Management Methodology is a strictly defined combination of logically related practices,
methods and processes that determine how best to plan, develop, control and deliver a project
throughout the continuous implementation process until successful completion and termination.
It is a scientifically-proven, systematic and disciplined approach to project design, execution and
completion.

Difference between a project and programme

Project Programme
Scope Projects have defined objectives. Programs have a larger scope and
Scope is progressively elaborated provide more significant benefits.
throughout the project life cycle.

Change Project manager expect change The program manager must

and implement processes to keep expect change from both inside
change managed and controlled. and outside the program and be
prepared to manage it.

Planning Project managers progressively Project manager develop the

elaborate high-level information overall program plan and create
into detailed plans throughout the high level plans to guide detailed
project life cycle planning at the component level

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Discuss project preparation

Project preparation is an important phase in any project management cycle. This phase involves a
thorough planning and preparation process that lays the foundation for the success of the project.
Below are some key considerations to keep in mind when preparing a project:

• Define the project scope: The scope of a project should clearly define what the project is
supposed to achieve, the objectives, the deliverables, and the constraints.
• Establish project goals: The project goals should be clearly defined and communicated to all
stakeholders. They should be measurable and specific, with timelines and deadlines set.
• Identify project stakeholders: All the stakeholders of the project should be identified and their
roles and responsibilities should be clearly defined.
• Plan project resources: Plan the resources needed for the project, including people, equipment,
and materials.
• Develop a project plan: Create a detailed project plan that includes the scope, goals, timelines,
resources, budget, and risk management plan.
• Establish communication plan: Establish a communication plan that outlines how information
will be shared among stakeholders.
• Define project risks: Identify potential risks that could impact the project and develop a risk
management plan.
• Create a project schedule: Create a project schedule that outlines the tasks, timelines, and
dependencies of the project.
• Develop a budget: Create a budget that outlines the costs associated with the project.
• Obtain approvals: Ensure that all necessary approvals are obtained before moving forward with
the project.

Project life cycle management

Project life cycle management refers to the process of planning, executing, controlling, and
closing a project from start to finish. It involves a series of phases that are typically defined by
the organization or industry standards, and the project team works through each phase to
complete the project objectives.
Effective project life cycle management is critical to ensure that projects are completed on time,
within budget, and meet the intended goals and objectives.

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Project appraisal techniques (Non discounting and discounting)

Non-discounting and discounting are two project appraisal techniques used to assess the financial
viability of a project. Here's a brief overview of both techniques:
Non-Discounting Techniques: Non-discounting techniques do not take into account the time
value of money. They are used to evaluate projects where the cash flows are expected to remain
constant over the project's life.
Discounting Techniques: Discounting techniques take into account the time value of money.
They are used to evaluate projects where the cash flows are expected to vary over the project's
life.
In summary, non-discounting techniques are used to evaluate projects where the cash flows are
expected to remain constant over the project's life, while discounting techniques are used to
evaluate projects where the cash flows are expected to vary over time.

Define Payback period? Advantages of payback period

Payback Period is the time where a project’s net cash inflows are equal to the project’s initial
cash investment. This method is often used as the initial screen process and helps to determine
the length of time required to recover the initial cash outlay (investment) in the project.
The main advantages of payback period are as follows:
• A longer payback period indicates capital is tied up.
• Focus on early payback can enhance liquidity
• Investment risk can be assessed through payback method
• Shorter term forecasts
• This is more reliable technique
• The calculation process is quicker than and simple than any other appraisal techniques
• This is a very easily understood concept

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Cost-benefit Analysis

Cost-benefit analysis is a process used to evaluate the potential benefits and costs of a project,
decision, or policy. It involves comparing the total expected benefits of a project with its total
expected costs, and determining whether the benefits outweigh the costs.
The steps involved in a cost-benefit analysis typically include:
• Identifying the project or decision being evaluated, along with its objectives and goals.
• Identifying all of the potential costs and benefits associated with the project or decision,
and estimating their value in monetary terms.
• Calculating the net present value (NPV) of the project or decision, which is the total
expected benefits minus the total expected costs, adjusted for the time value of money.
• Assessing the sensitivity of the NPV to different assumptions and inputs, to determine
how robust the analysis is to changes in key variables.
• Making a recommendation based on the results of the analysis, taking into account any
non-monetary factors that may also be important.
Cost-benefit analysis is often used by government agencies, non-profit organizations, and
businesses to evaluate the economic and social implications of a wide range of decisions and
policies, including infrastructure investments, environmental regulations, public health programs,
and more.

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Conclusion

Based on the report on project management methodology, it can be concluded that a structured
and disciplined approach to project management is essential for achieving project success. The
use of a defined methodology can help to ensure that projects are delivered on time, within
budget, and to the required quality standards.

The report covered the key aspects of project management methodology, including project
planning, risk management, project tracking and control, communication, and stakeholder
management. These are all critical components of a successful project, and a project
management methodology provides a framework for managing these aspects effectively.

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Suggestions

There are several project management methodologies available, and the best one for you will depend
on your specific project, team, and organizational needs.

Ultimately, the right methodology for your project will depend on your specific needs and goals. It's a
good idea to research each methodology, consult with your team, and consider seeking guidance from a
project management expert if needed.

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Reference

• https://business.adobe.com/blog/basics/methodologies

• https://www.teamwork.com/project-management-guide/project-management-
methodologies/

• https://thedigitalprojectmanager.com/projects/pm-methodology/project-management-
methodologies-made-simple/

• https://www.researchgate.net/publication/319229966_Methodologies_used_in_Project_
Management

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