BSBPMG522A - Undertake Project Work

Diploma in Business

OBJECTIVES Define project Develop project plan Administer and monitor project Finalise project Review project

ASSESSMENT TASKS1. Develop a Project Proposal2. Develop a Project Plan3. Knowledge Test

Submission of assessment4. Hard Copy + Assessment Cover Sheet5. Soft Copy to bsbtrainer@altec.vic.edu.au6. Others, according to assessment task

requirements7. All assessments to be submitted by

31/7/2015

Definitions/ Glossary of Terms Project – Is a set of tasks/ activities that are inter-

related, that is going to be implemented in a certain duration, at a certain cost, with certain resources.

Project Management – is the application of knowledge, skills, tools and techniques to a set of activities/ task to complete a particular project.

Project Team – The team working on the project Project Stakeholders – people/organisations that

will be affected by the outcome of a project. Deliverables – what the project will deliver Milestones – key tasks of the project that need to be

completed within a certain tim More in class blog

Purpose of a Project Proposal Project Proposal = Is a document used for

project management, which identifies the purpose, objectives, proposed solution, scope, costs and risks associated with a project.

Purpose : To determine if a proposed project is feasible (possible to do easily), practical and worth pursuing

Your Project Proposal Should Contain: Brief summary of the project Project Background – The reason for starting the

project (highlight the problem) Project Purpose/ Objectives – Highlight the exact

objectives of the project, specifying details like amounts, numbers, etc.

Project Organisation – Who will work on the project Project Scope – Talks about what the project should

achieve and describes in detail, what the result should be (the solution)

Project Duration – When the project is expected to start and end, and how long the project is expected to last. Include milestone dates.

Your Project Proposal Should Contain: Perceived obstacles and risks – An obstacle or a

risk is something that could affect a project’s ability to achieve the project objectives. Since there is no way to know for sure what these risks will definitely be, the project team must perceive/ assume what they are, and place it into the project proposal. This includes OHS risks as well.

Perceived Costs and Benefits – As the project has not happened, it is difficult to know for sure how much the project with cost or the exact benefits the project will provide. The project team will need to perceive/ assume, using proper information, how much the project will cost, and what the benefits will be.

Your Project Proposal Should Contain: Required Resources – Resource is

something that can be used to get something done. There are many types of resources that a project might need (people, technology, etc)

Record keeping systems – What system is in place to manage important records like permits, contracts, contact details, etc.

Need for projects in organisations Allows organisations to:

Control spending on projects Improve project results and outcomes Use less resources for projects Makes projects more measurable

Examples of projects Major projects

Implementing a new IT system in the organisation Implementing a new employee engagement

initiative company-wide Building a new power plant in unchartered

territories Minor projects

Creating another cubicle space for a new employee

Making minor changes to an existing IT system in the office

Making small changes to an existing employee interview process at work

Project parameters Project parameters are things to be considered

when managing a project, and that can include: Cost Time People resources Material resources Legal documents needed Technical resources Project risks or obstacles Recording documents Project scope Legislations to be considered Deliverables

Project management resources For a project to work successfully, many

resources need to be used: People – Workers, Managers, etc Technical – IT systems, computers, etc Legal Documents – Permits, contracts, etc Material – bricks for construction, gloves for

landscaping, etc …and more

Work breakdown structure : purpose A Work Breakdown Structure (WBS) is used in

projects to organise the team’s work into smaller, more manageable sections.

A WBS starts with the project and goes down into smaller sections.

Work breakdown structure

Source : http://timtyler.org/on_the_critical_path/

Work breakdown structure : Step-by-Step[Sample Project : Cleaning your room]

Step 1 : Start with the main project at the top

Work breakdown structure : Step-by-Step[Sample Project : Cleaning your room]

Step 2 : Put in all the tasks that you have identified in your project proposal, below the project name

Work breakdown structure : Step-by-Step[Sample Project : Cleaning your room]

Step 3 : Put in all the sub-tasks(which are the smaller tasks) under each main task

Critical path analysis Critical path analysis is a project management

tool that is used to manage the different tasks in a project.

A critical path method or analysis is used in project planning to: Find out the maximum time for a project to be

completed Finds out the potential problems when working on

a project Finds out what resource is needed when, in the

project

Critical path analysis

Source : http://timtyler.org/on_the_critical_path/

A, 1

C, 1

G, 1

Start, 0

B, 3

D, 2

E, 1

F, 1

H, 2 I, 2

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

1. Make a list of all your project tasks

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

2. Label each task

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

3. Determine the predecessors for each task [Predecessor = which tasks must be completed before this task can be done)

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

4. Determine how much time each tasks will take

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

5. Put all tasks (labels) without a predecessor into circles (called nodes) and put the time beside it. The tasks without predecessors means they can all start at the same time. These are called “initial activities”

Tasks without predecessors

A, 1

C, 1

G, 1

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

6. Create a circle (node) on the left, and put “Start” with a duration of “0”

A, 1

C, 1

G, 1

Start, 0

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

7. Connect the Start node with all the initial activities. This shows that all 3 tasks can start together.

A, 1

C, 1

G, 1

Start, 0

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

8. Now, put all the other tasks in nodes with their time and place them beside the initial activities which are their predecessors

A, 1

C, 1

G, 1

Start, 0

B, 3

D, 2

E, 1

F, 1

H, 2 I, 2

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

A, 1

C, 1

G, 1

Start, 0

Example : If task D’s predecessors is task C, draw an arrow from Task C to Task D:

D, 2

Critical path analysis : Step-by-step [Sample Project : Having Breakfast]

A, 1

C, 1

G, 1

Start, 0

Example : If task E’s predecessors are tasks C and D, draw an arrow from Task C and D to Task E:

D, 2

E, 1

Budgetary requirements Every project must have a budget and this

budget must be determined at the start of the project

This way, the project team will know what amount of finances they have, to work on the project

A very importance part of the project’s budget is the Cost-Benefit Analysis

Cost benefit analysis

Source : http://www.technologyuk.net/computing/project_management/images/cost_benefit_analysis.gif

Cost benefit analysis : purpose A cost-benefit analysis (CBA) can help you

decide whether you want to go ahead with a project, by conducting a cost analysis, and a benefits analysis, and comparing the both

Your Project Budget must include a cost-benefit analysis

Cost benefit analysis : Step-by-step1. Make a list of the costs in your project (you

can get this from your project proposal)

Cost benefit analysis : Step-by-step2. Add a value to your items

Cost benefit analysis : Step-by-step3. Make a list of the benefits of your project

(you can get this from your project proposal)

Cost benefit analysis : Step-by-step4. Put an estimated value to your benefit (eg. I

think that my project can increase sales by $450,000)

Cost benefit analysis : Step-by-step5. In the end, you have your cost-benefit

analysis

Organisational structures In project management, organisational

structures are important. An organisational structure will show the project team in a hierarchy. It groups people so that the project can be managed easily

Source : http://67.23.224.218/sites/default/files/organisational_structure.jpg

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure Form/product structure – people are grouped by

the product they work with, and not their positions Eg :In this company, those working under Agriculture are grouped

together, and those working under Cars are grouped together

Source : http://www.fao.org/docrep/w5973e/w5973e0m.jpg

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure Functional structure – All the people in the

organisation are grouped by the departments they work in Eg : In this company, people who work for the Sales

department are grouped together, people who work for the Marketing department are grouped together, and so on

Source : http://www.businessmate.org/userupload/Functional_Organizational_Structure.jpg

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure Geographic structure – where the people in the

organisation are grouped by the locations/ regions they work in Eg: In this company, the departments are separated by

the location; Northeast, Midwest or Western Regions

Source : http://teaching.shu.ac.uk/aces/ict/de/business/what_are_organisational_structures_files/image012.gif

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure Hybrid structure – A hybrid structure is when an

organisation groups their people using more than one method: Eg: In IBM, the people are grouped by function and locations

Source : http://www.yourarticlelibrary.com/wp-content/uploads/2013/12/clip_image0141.jpg

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure Matrix structure – here, people are grouped in a

way where they report to more than one manager. Eg. In this company, some people will report to Project

Manager A and the Chief of Preliminary Design

Source : https://manufacturingpearls.files.wordpress.com/2012/11/organization-structure-matrix.jpg

Organisational structures A project is managed differently in different

organisations, depending on the organisational structure

There are generally 6 types of organisational structure User/market structure – here, employees are

grouped according to they types of customers they work with Eg: In this company, people are grouped based on

whether their customers are commercial, conservatory or domestic.

Source : http://2020projectmanagement.com/wp-content/uploads/2013/10/organisational-structure.png

How a project outcome aligns with organisational plans (strategic & business plans)

Every organisation must have an organisational plan. An organisational plan includes: Business goals – what the organisation wants to

achieve Business strategies – How the organisation is

planning to achieve it Here’s an example of Burger King’s business

goals and strategies

How a project outcome aligns with organisational plans (strategic & business plans)

It is very important that any project done by the organisation should be aligned to the organisational plans

Basically, a project is an organisation’s way to implement what they have planned.

In Burger King, projects that they have done include: Creating the Kid Box meal for kids

This is aligned to their business goals of increasing machine efficiency, because they used the same machines that they used to create other meals, to create a brand new product, which is the Kid Box meal.

So, their project outcome aligns with their organisational plans

Source : http://www.projectsmart.co.uk/docs/project-management-and-organisational-strategy.pdf

How a project outcome aligns with organisational plans (strategic & business plans)

Legislations for Project Management When managing a project, and especially as

Project Manager, you must be aware of the legislations (laws) that must be considered: Anti discrimination legislation Ethical principles Codes of practice Privacy laws Environmental issues OHS