Essential Techniques for Project Management and Inventory Control

Posted on Dec 24, 2025 in Business Administration and Innovation Management

ABC Analysis: Inventory Control Technique

1. ABC analysis is an inventory control technique used to classify items based on their annual consumption value.
2. It follows the Pareto principle where a few items contribute to most of the inventory value.
3. Category A items are few in number but have very high value and need strict control.
4. Category B items have moderate value and require normal control and periodic review.
5. Category C items are large in number but have very low value and need simple control.
6. The method helps the company focus more on important and costly materials.
7. ABC analysis reduces unnecessary investment in low-value items.
8. It helps in efficient purchasing, stocking, and inspection of materials.
9. The method improves overall inventory planning and reduces carrying cost.
10. ABC analysis is widely used in stores, purchasing, warehousing, and production management.

VED Analysis: Classifying Critical Spare Parts

1. VED analysis is used to classify spare parts based on their criticality to machine and plant operations.
2. It divides items into Vital, Essential, and Desirable categories.
3. Vital items are extremely important, and their shortage can stop the entire production.
4. Essential items are important, but their shortage only reduces efficiency, not causing a complete shutdown.
5. Desirable items are least important and can be purchased when needed without major problems.
6. The method ensures that critical spare parts are always available in stock.
7. VED analysis helps in avoiding machine downtime and production losses.
8. It reduces unnecessary stocking of less important spare parts.
9. The technique assists maintenance departments in planning purchase and storage levels.
10. VED analysis helps balance cost and availability for smooth plant operations.

15 Steps for Successful Project Implementation

1. Define project objectives.
2. Finalize project schedule.
3. Allocate roles and responsibilities.
4. Arrange resources (manpower, materials, machines).
5. Set communication plan.
6. Implement work activities.
7. Monitor progress.
8. Control cost and time.
9. Manage risks and issues.
10. Ensure quality control.
11. Coordinate with stakeholders.
12. Update documentation.
13. Review performance.
14. Make necessary corrections.
15. Complete and hand over the project.

RAT vs CAT: Time Estimation Comparison

• RAT (Routine Activity Time): Normal time to complete an activity.
  CAT (Compressed Activity Time): Minimum possible time to complete an activity.
• RAT: Done under standard working conditions.
  CAT: Done by adding extra resources (e.g., overtime).
• RAT: No extra cost involved.
  CAT: Higher cost due to overtime or additional labor.
• RAT: Used in regular project scheduling.
  CAT: Used when the project needs to finish earlier (project crashing).
• RAT: Always longer in duration.
  CAT: Always shorter in duration.
• RAT: Represents practical, realistic time.
  CAT: Represents forced, compressed time.
• RAT: Suitable for routine planning.
  CAT: Suitable for project crashing decisions.

CPM vs PERT: Project Scheduling Methods

• CPM (Critical Path Method): Used for fixed and known activity times.
  PERT (Program Evaluation and Review Technique): Used for uncertain and variable activity times.
• CPM: Deterministic method.
  PERT: Probabilistic method.
• CPM: Uses a single time estimate.
  PERT: Uses three time estimates (optimistic, pessimistic, most likely).
• CPM: Focuses on time and cost.
  PERT: Focuses mainly on time.
• CPM: Suitable for construction and manufacturing projects.
  PERT: Suitable for R&D and new projects.
• CPM: Critical path is based on fixed durations.
  PERT: Critical path is based on expected durations.
• CPM: Good for cost–time optimization.
  PERT: Good for handling uncertainty and risk.

Work Breakdown Structure (WBS) Essentials

1. Work Breakdown Structure (WBS) is a systematic method of breaking a project into smaller, manageable tasks.
2. It divides the entire project scope into levels such as major activities, sub-activities, and work packages.
3. WBS helps in understanding the full scope of the project clearly and avoids missing any important tasks.
4. It improves planning because each small activity can be scheduled, budgeted, and monitored separately.
5. WBS assigns responsibility by linking each work package to a specific team or person.
6. The breakdown provides a clear workflow and sequence of tasks, making the project easier to organize.
7. WBS helps in estimating cost and time more accurately, since work is divided into smaller units.
8. It supports better communication among team members because each task is well-defined.
9. During project execution, WBS helps in tracking the progress of each activity and controlling delays.
10. Overall, WBS is an essential tool in project management that simplifies planning, organizing, monitoring, and controlling the entire project.

Tender and Procurement Procedure Steps

1. A tender is a formal offer for supplying materials or services.
2. It ensures fair competition among bidders.
3. It helps select the best or lowest suitable bidder.
4. Types include open, limited, and negotiated tenders.
5. A tender notice is published detailing requirements.
6. Contractors submit technical and financial bids.
7. The tender committee opens and evaluates bids.
8. Technical eligibility is checked first.
9. The lowest suitable bidder (L1) is selected.
10. A work order or contract is issued to the winner.

Key Project Strategies in Process Industries

1. Define project goals and scope clearly.
2. Select suitable process technology.
3. Plan a safe and efficient plant layout.
4. Choose reliable equipment suppliers.
5. Prepare a detailed schedule for engineering and construction.
6. Maintain strict cost control.
7. Apply safety methods like HAZOP (Hazard and Operability Study).
8. Ensure quality in materials and work.
9. Monitor progress using KPIs (Key Performance Indicators).
10. Plan commissioning and smooth startup.

Understanding Project Stakeholders

1. Stakeholders are individuals or groups connected to a project.
2. They can affect or be affected by project outcomes.
3. They include customers, employees, and suppliers.
4. They also include investors, owners, and managers.
5. Government and the local community are also stakeholders.
6. They have different interests and expectations.
7. Identifying them early is important for success.
8. Effective communication with stakeholders is necessary.
9. Their feedback improves project decisions.
10. Good stakeholder management increases project success.

10 Steps in the Patent Application Procedure

1. Identify the invention clearly.
2. Check novelty using a patent search.
3. Decide the type of patent application (e.g., provisional, non-provisional).
4. Prepare technical drawings and description.
5. Draft the patent specification.
6. File the application with the patent office.
7. The patent office conducts a formal examination.
8. Respond to objections or queries raised by the examiner.
9. The patent is published after approval.
10. The patent is granted, and legal protection begins.

Project Overrun Definition and Causes

1. Project overrun means exceeding planned time or cost budgets.
2. It happens due to delays in work or materials procurement.
3. It is often caused by poor planning or wrong estimation.
4. Overrun increases total project cost and duration.
5. It reduces efficiency and client satisfaction.
6. It can be controlled by proper monitoring and reviews.

Project Underrun Definition and Benefits

1. Project underrun means completing the project below planned cost or time.
2. It shows efficient use of resources.
3. It occurs due to fast work or low spending.
4. It improves project profitability.
5. It indicates good planning and supervision.
6. Sometimes, it suggests initial estimates were too high.

Components of a Comprehensive Feasibility Report

1. Market Feasibility: Checks demand, competition, and market size.
2. Technical Feasibility: Checks process, technology, and equipment requirements.
3. Financial Feasibility: Checks project cost, funding sources, and profitability (ROI).
4. Economic Feasibility: Checks benefits to the industry and the broader economy.
5. Legal Feasibility: Checks laws, licenses, permits, and regulatory approvals.
6. Environmental Feasibility: Checks pollution, waste impact, and sustainability.
7. Operational Feasibility: Checks manpower, organizational structure, and daily operations.
8. Schedule Feasibility: Checks if the project can finish within the required timeline.
9. Location Feasibility: Checks site suitability, utilities access, and transport logistics.
10. Risk Analysis: Identifies potential risks and proposes mitigation strategies.