project managment training material (2)

8/22/2019 Project Managment Training Material (2)

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Kafue Gorge Regional

Training Centre

TRAINING MANUAL FOR PROJECT

MANAGEMENT AND SOFTWARE

APPLICATION USING MICROSOFT

PROJECT 2003

KAFUE GORGE REGIONAL TRAINING CENTRE 2007


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TO BE USED AT KAFUE GORGE REGIONAL TRAINING CENTRE. ii

TABLE OF CONTENTS

PART 1 PROJECT MANAGEMENT CONCEPTS AND TECHNIQUES .................... 1AN OVERVIEW OF PROJECT MANAGEMENT ........................................................ 1

INTRODUCTION ........................................................................................................ 1

WHAT IS A PROJECT? .............................................................................................. 1WHAT IS PROJECT MANAGEMENT? .................................................................... 3FACTORS THAT INFLUENCE PROJECT SUCCESS AND FAILURE.................. 8THE ROLE OF THE PROJECT MANAGER ............................................................. 8ORGANISATION STRUCTURE WITH A PROJECT FOCUS............................... 10PROJECT PHASES AND THE PROJECT LIFE CYCLE........................................ 14PROJECT MANAGEMENT SOFTWARE APPLICATIONS.................................. 20

THE PROJECT MANAGEMENT PROCESS............................................................... 22THE PROJECT INITIATION PHASE ...................................................................... 22THE PROJECT DEFINITION PHASE ..................................................................... 23THE PROJECT PLANNING PHASE........................................................................ 34

THE PROJECT EXECUTION PHASE ..................................................................... 54THE PROJECT CLOSE-OUT PHASE...................................................................... 63REFERENCES: .......................................................................................................... 65

PART 2 : PROJECTMANAGEMENT SOFTWARE APPLICATION......................... 66USING MS PROJECT 2003 TO MANAGE PROJECTS.............................................. 67

THE PROJECT SCREEN .......................................................................................... 67DEFINING THE PROJECT........................................................................................... 69

TASKS........................................................................................................................ 72ASSIGNING MILESTONES..................................................................................... 76WORKING WITH OUTLINES ................................................................................. 78ESTABLISHING DEPENDENCIES......................................................................... 81

ADDING LAGILEAD TIME..................................................................................... 83RESOURCES ............................................................................................................. 84ENTERING WORKING TIME ................................................................................. 87ASSIGNING RESOURCES TO A TASK................................................................. 88DESCRIPTION OF PROJECT VIEWS..................................................................... 92PROJECT TABLES ................................................................................................... 93ANALYZING SLACK............................................................................................... 95ADDING FIXED COSTS .......................................................................................... 96ADDING CONSTRAINTS........................................................................................ 97CONSTRAINT CONFLICTS .................................................................................... 99HANDLING SCHEDULING CONFLICTS............................................................ 100

USING OVERTIME................................................................................................. 101HANDLING RESOURCE CONFLICTS................................................................. 101RESOURCE OVER ALLOCATION....................................................................... 102SAVING A BASELINE........................................................................................... 105VARIANCE.............................................................................................................. 105PROJECT STATISTICS .......................................................................................... 106INTERIM BASELINE ............................................................................................. 107

PROJECT TRACKING IN MS PROJECT 2003 ......................................................... 108UPDATING TASKS ................................................................................................ 108UNDERSTANDING THE FIELDS USED IN UPDATING................................... 109UPDATING TASKS AS SCHEDULED ................................................................. 112THE RESCHEDULE WORK BUTTON ................................................................. 115UPDATING RESOURCES...................................................................................... 115


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TO BE USED AT KAFUE GORGE REGIONAL TRAINING CENTRE. iii

USING THE RESOURCE USAGE VIEW.............................................................. 117PRINTING VIEWS.................................................................................................. 118

REFERENCES ............................................................................................................. 124ACKNOWLEDGMENT .............................................................................................. 125


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Project Management Concepts and Techniques

TO BE USED AT KAFUE GORGE REGIONAL TRAINING CENTRE. 1

PART 1 PROJECT MANAGEMENT CONCEPTS ANDTECHNIQUES


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Project Management Concepts and Techniques-An Overview of Project Management


AN OVERVIEW OF PROJECT MANAGEMENT

INTRODUCTION

The rapid creation and delivery of high quality products and services is critical tobusiness survival in todays highly competitive and fast-paced environment. In thisenvironment, those organisations that practice sound project management methods havea competitive advantage over those that fly by the seat of the pants. Consequently, many

people and organisations today have a new or renewed interest in project management.Until the 1980s, project management primarily focused on providing schedule andresource data to top management in the military and construction industries. Todays

project management involves much more, and people in every industry and every

country manage projects.

Todays companies, governments, and non-profit organisations are recognising that tobe successful, they need to be conversant with the use of modern project managementtechniques. Individuals are realising that to remain competitive, they too must developskills to become good project team members and project managers. They also realisethat many concepts of project management will help them in their everyday lives as theywork with people and technology on a day-to-day basis.

WHAT IS A PROJECT?

To discuss project management, it is important to understand the concept of a project.The Project Management Body of Knowledge (A Guide to the Project Management

Body of Knowledge) defines a project in terms of its distinctive characteristics: Aproject is a temporary endeavour undertaken to create a unique product or service.Three factors differentiate projects from routine operations:

Uniqueness: Projects involve doing something that has not been done before.Uniqueness derives either from activities that have not been done before or fromsome product or service feature that distinguishes it from all other products orservices the organisation has produced before.

A temporary nature: Temporary implies that projects are of a transient naturewith a defined beginning and end. The end is reached when the projectsobjectives have been achieved and effectively handed over to the business. A

project may also be terminated when it becomes clear that it cannot achieve thestated objectives, or when the business outcomes are no longer feasible for theowner.

Progressive elaboration: Due to the uniqueness of project results, the precisedetails in terms of the deliverables contributing to the results are not known fromthe outset. Because of this, the deliverables characteristics, and in fact the

project parameters will need to be progressively elaborated. Progressively meansproceeding in steps; continuing steadily by increments. Elaborated means

worked out with care; developed thoroughly. At the start of a project, thecharacteristics of its deliverables and the project parameters of scope, time, cost


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and performance will be broadly defined. During the development of the projectplans, and as the early stages of the project progress, a better understanding ofthe project will be obtained it will be progressively elaborated.

Every project is constrained in different ways by its scope, time, and cost goals. These

limitations are sometimes referred to in project management as the triple constraint.To create a successful project, a project manager must consider scope, time, and costand balance these three often-competing goals. He or she must consider the following:

Scope: What work will be done as part of the project? What unique product,service, or result does the customer or sponsor expect from the project?

Time: How long should it take to complete the project? What is the projectsschedule?

Cost: What should it cost to complete the project? What is the projects budget?

Figure 1 illustrates the three dimensions of the triple constraint. Each area scope, time,

and cost has a target at the beginning of the project. Managing the triple constraintinvolves making trade-offs between scope, time, and cost goals for a project.Experienced project managers know that you must decide which aspect of the tripleconstraint is most important. If time is most important, you must often change the initialscope and/or cost goals to meet the schedule.

Figure 1: The Triple Constraint of Project Management

Although the triple constraint describes how the basic elements of a project scope,time, and cost interrelate, other elements can also play significant role. Quality is


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often a key factor in projects, as is customer or sponsor specification. Some people, infact, refer to the quadruple constraint of project management, including qualityalong with scope, time, and cost. Others believe that quality considerations, includingcustomer satisfaction, must be inherent in setting the scope, time, and cost goals of a

project. Therefore, a project is considered as a multitask job that has performance, time,

cost, and scope requirements and that is done only one time. A project should have adefinite starting and ending points (time), a budget (cost), a clearly defined scope ormagnitude of work to be done, and specific performance requirements that must bemet (PCTS targets).

How can you avoid the problems that occur when you meet scope, time, and cost goals,but lose sight of quality or customer satisfaction? The answer is good projectmanagement, which includes more than meeting the triple constraint.

WHAT IS PROJECT MANAGEMENT?

Project management is facilitating the planning, scheduling, and controlling of allactivities that must be done to achieve project objectives. The Project ManagementBody of Knowledge (PMBOK) Guide describes project management as:

The application of knowledge, skills, tools, and techniques to project activities inorder to meet or exceed stakeholders needs and expectations from a project.

Project managers must not only strive to meet specific scope, time, cost, and qualitygoals of projects, they must also facilitate the entire process to meet the needs andexpectations of the people involved in or affected by project activities. Therefore,

meeting or exceeding stakeholder needs and expectations invariably involves balancingcompeting demands among:

Scope, time, cost, and quality.

Stakeholders with differing needs and expectations.

Identified requirements (needs) and unidentified requirements (expectations).

Figure 2 illustrates a framework to help you understand project management. Keyelements of this framework include the project stakeholders, project managementknowledge areas, project management tools and techniques, and the contribution of

successful projects to the enterprise.


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Figure 2: Project Management Framework

PROJECT STAKEHOLDERS

Project success is and can only be defined by the stakeholders. Project stakeholders areindividuals and organisations who are actively involved in the project, or whose interestmay be positively or negatively affected as a result of project execution or successful

project completion. The project team (the people who report either directly or indirectlyto the project manager from the project team) must identify the stakeholders, determinewhat their needs are, and then manage and influence those expectations to ensure asuccessful project. In project management, lack of direct authority over project team

members and other stakeholders is the norm. Therefore, the concept of influence (theability to persuade rather than to command) is appropriate, as the project manager doesnot generally have the formal organisational authority residing in the functionaldepartments. Some of the most important stakeholders are shown in Figure 3. Thisillustrates that both the project manager and sponsor have responsibility for influencingupper management and the project council, and for a high-level interface with externalstakeholders.

Upper

Management

Government

Agencies

Owner and

End-Users

Project Sponsorand Project

Manager

External

Stakeholders

Department/

Functional

Managers

Project

Council

Individual

Citizens,

NGOsProject

Team

Figure 3: Project Stakeholders


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Stakeholder identification must be as comprehensive as possible. Essential to the

process is the identification of both internal and external stakeholders to determine thedegree to which they are able to influence the project.

PROJECT MANAGEMENT KNOWLEDGE AREAS

Project management knowledge areas describe the key competencies that projectmanagers must develop. The Project Management Institute (PMI) has currentlyidentified nine general areas of knowledge as the minimum body of knowledge that a

project manager needs in order to be effective. The centre of Figure 2 shows these nineknowledge areas of project management. The Project management knowledge areas canalso be referred to as dimensions of project management. The four core knowledgeareas of project management include project scope, time, cost, and quality management.These are core knowledge areas because they lead to specific project objectives. Briefdescriptions of each core knowledge area are as follows:

1. Project Scope Management means ensuring that the project includes all thework required, and only the work required, to complete the projectsuccessfully. It covers scope initiation, planning, definition, verification, andchange control.

2. Project Time Management includes the decisions and actions required toensure timely completion of the project, such as activity definition,sequencing, duration estimation, schedule development, and control.

3. Project Cost Management refers to the processes required to ensure that the

project is completed within the approved budget resource planning, costestimation, cost budgeting, and control.

4. Project Quality Management means the processes required to ensure thatthe project will satisfy the needs for which it was undertaken. It coversquality planning, assurance, and control.

The four facilitating knowledge areas of project management are human resource,communications, risk, and procurement management. These are called facilitating areas

because they are processes through which the project objectives are achieved. Briefdescriptions of each facilitating knowledge area are as follows:

5. Project Human Resource Management is making the most effective use ofpeople involved with the project. It includes organisational planning, staffacquisition and team development.

6. Project Communications Management refers to the processes required toensure timely and appropriate generation, collection, dissemination, storageand ultimate disposition of project information. It entails communications

planning, information distribution, performance reporting and administrativeclosure.

7. Project Risk Management means identifying, analysing and responding to

project risk. It includes risk identification, risk quantification, risk responsedevelopment and risk response control.


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8. Project Procurement Management covers the processes required toacquire goods and services from outside the performing organisation

procurement planning, solicitation planning, solicitation, source selection,contract administration and contract close-out.

The ninth knowledge area is an overarching function that affects and is affected by allother knowledge areas.

9. Project Integration Management relates to the processes required to ensurethat various elements of a project are properly coordinated. It includes plandevelopment, execution and overall change control.

The four core knowledge areas scope, time, cost and performance relate in a uniquemanner, as reflected in Figure 4. Time is the time schedule, cost is the project budget,

performance encompasses the specifications of the project deliverables, and scope is the

sum of the deliverables (products and services) to be developed through the projectprocess. As indicated in Figure 4, scope is bound by the constraints of time, cost andperformance. Ideally, time and cost should be determined after the development ofscope to meet the performance requirements. In practice, this is often not the case. Oftena projects time, cost and performance are determined before scope is defined, resultingin the scope being limited to the surface area of the triangle.

Unless initial dimensions of time, cost and performance are generous, fixing these threedimensions, and effectively the sides of the triangle, before scope is defined, is poormanagement and must be avoided. At least one and preferably two sides of the triangleshould remain flexible so that the scope can be effectively defined to fit the triangle.

Alternatively, if scope can reduce, the project team could possibly fit it into a fixedtriangle. The trade-off between time, cost, performance and scope is an iterative processthat must be understood by the project team, project manager and upper management ifrealistic project result is to be achieved. Competent project managers make it their

business to know which of the four dimensions are negotiable.

Figure 4: The Trade-Off Triangle

Time

Cost Specification/Performance

Scope


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PROJECT MANAGEMENT TOOLS AND TECHNIQUES

Project management tools and techniques assist project managers and their teams incarrying out work in all nine knowledge areas. For example, some popular time-management tools and techniques include Gantt charts, project network diagrams, and

critical path analysis. Table 1 lists some commonly used tools and techniques byknowledge area.

Table 1: Common Project Management Tools and Techniques by Knowledge Area

Knowledge Area Tools and Techniques

Integration Management

Project selection methods, project managementmethodology, stakeholder analysis, project charters, projectmanagement plans, project management software, changecontrol boards, project review meetings, work authorizationsystems.

Scope ManagementProject scope statements, work breakdown structures,statements of work, scope management plan, requirementsanalysis, scope change control.

Time Management

Gantt charts, project network diagrams, critical pathanalysis, program evaluation review technique (PERT),critical chain scheduling, crashing, fast tracking, milestonereviews.

Cost Management

Net present value, return on investment, payback analysis,business cases, earned value management, project portfoliomanagement, cost estimates, cost management plan,financial software.

Quality ManagementSix Sigma, quality control charts, Pareto diagrams, fishboneor Ishikawa diagrams, quality audits, statistical methods.

Human ResourceManagement

Motivation techniques, empathic listening, team contracts,responsibility assignment matrices, resource histograms,resource leveling, and team building exercises.

CommunicationsManagement

Communications management plan, conflict management,communications media selection, communicationsinfrastructure, status reports, virtual communications,templates, project Web sites.

Procurement

Management

Make-or-buy analysis, contracts, requests for proposals or

quotes, source selection, negotiating, e-procurement.

Risk ManagementRisk management plan, probability/impact matrix, riskranking, Monte Carlo simulation, top-ten risk item tracking.

Project managers must work with key stakeholders to define what constitutes successfor a particular project and strive to complete their projects successfully by applyingappropriate tools and techniques. In many organisations, project managers also supportan emerging business strategy of project portfolio management, in which organisationsgroup and manage projects as a portfolio of investments that contribute to the entireenterprises success.

Despite its advantages, project management is not a silver bullet that guarantees successon all projects. What works on one project may not work on another, so it is essential


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for project managers to continue to develop their knowledge and skills in managingprojects. It is also important to learn from the mistakes and successes of others.

FACTORS THAT INFLUENCE PROJECT SUCCESS AND FAILURE

Why do some projects succeed and others fail? Can organisations provide a betterenvironment to help improve project success rates? There are no easy answers to any ofthese questions, but many people are contributing to our knowledge base to continue toimprove the theory and practice of project management. Table 2 summarises some ofthe reasons why projects fail or succeed.

Table 2: What Factors Influence Project Success and Failure?

Why Projects Succeed Why Projects Fail

Clear statement of requirementFinancial control and integrity

Focus on the business objectiveEnd-user involvementExecutive management supportTeam estimates and generates the planUse two-level approach to planningUse deliverables-based task planningMotivate and empower the teamStructured approach and methodologyTrack work progress and re-planManage and respond to riskEffective education and training

Clarify project roles andresponsibilitiesHighlight critical path activitiesImprove meeting skills

Incomplete/no terms of referenceLack of resources (financial and human)Lack of end-user involvementUnrealistic expectationsLack of management supportInadequate planningLack of co-ordinationLack of communicationLack of skills/experience/knowledgeInsufficiently measurable outcomesLack of quality controlChanging requirements/specification

Resistance to using the planning processToo many issues for the Steering GroupLack of appreciation of key deadlinesPoorly managed meetings

THE ROLE OF THE PROJECT MANAGER

The project Manager is one of the most important project participants (the term projectparticipants includes everyone who has a role to play on the project). The projectmanager is responsible for the efficient management of the project management processand the effective delivery of the project objectives. The project manager has to befamiliar with the nine project management knowledge areas and the various tools andtechniques related to project management. But what do project managers do, exactly?What skills do they really need to do a good job?

PROJECT MANAGER JOB DESCRIPTION

Upper management (which includes the executive and senior management of theperforming organisation), and specifically the sponsor, expect the project manager to:

be accountable for the achievement of the project objectives


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efficiently manage the project process by planning, leading, organising,coordinating, and controlling the project

manage the project in a cross-functional manner, ensuring integration with thefunctions of the organisation

appoint the team members (jointly with the sponsor and functional managers)

build the project team establish an appropriate office environment

support, guide and facilitate the project team through the process

act as a change agent for the project team and other project participants

effectively resolve issues and manage risk

minimise organisational disruption during the execution of a project

have the capacity to handle most interpersonal issues

communicate progress to upper management and other project participants

interface and communicate with internal and external stakeholders.

Project manager is a role, not just a title.

PROFILE OF A PROJECT MANAGER

The Association of Project Managers (APM) in theirBody of Knowledge considers theprofile of a project manager in two areas: experience and personality.

Experience:

In terms of experience, the APM considers the type of project a project managermanages at four levels.

Level One: A project manager working at level one would be managing an in-houseproject with no responsibility (or very little) for external contractors or suppliers. Thepredominant management activity at this level would be the application of managementtools and techniques to enable work to be managed more effectively.

Level Two: The Project Manager at this level may be involved in managing a number ofdisciplines within a single company, again with limited involvement with externalcontractors or suppliers with the possible exception of procurement. The ProjectManagers activities would be associated mainly with the tools and techniques, limited

people and organisation skills and some appreciation of wider project management

issues.

Level Three: A Project Manager working at this level would be either (a) managing amulti-disciplinary team from a number of independent companies, where the team has

been established for the purpose of the project or, (b) responsible for a team of peopleundertaking a set of projects. At this level a detailed understanding of the application ofthe appropriate tools and techniques; experience in managing people and anunderstanding of organisations; together with a full understanding of projectmanagement issues in the widest sense would be necessary.

Level Four: A level four project would involve a multi-disciplinary team from a variety

of companies and working in a number of countries. Projects at this level are theexception rather than the rule.


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A person managing a level three project would certainly have the experience to becomea Certified Project Manager, while those managing level two projects could also havethe appropriate knowledge and experience which should allow them to attain the statusof a Certified Project Manager.

Personality:

The APM define the principal personality characteristics of a project manager to includethe following.

Attitude: an open, positive can do attitude which encourages communication andmotivation and fosters cooperation.

Common sense: a strong ability to spot sensible, effective, straight forward, least risky,less complex solutions, that is, 90% right on time is better than 100% far too late!

Open mindedness: an approach where one is always open to new ideas, practices andmethods and in particular gives equal weight to the various professional disciplinesinvolved on the project.

Adaptability: a propensity to be flexible where necessary and avoid rigid patterns ofthinking or behaviour, to adapt to the requirements of the project, the needs of thesponsors, its environment and people working on it and for it to ensure a successfuloutcome.

Inventiveness: an ability to discover innovative strategies and solutions either fromwithin oneself or by encouragement with other members of the project team and to

identify ways of working with disparate resources to achieve the project objectives.

Prudent risk taker: a willingness and ability to identify and understand risks but not totake risky approach in an unwise or reckless fashion.

Fairness: a fair and open attitude which represents all human value.

Commitment: a very strong overriding commitment to the projects success, usersatisfaction and team working. A strong orientation towards goal achievement.

A competent project manager is characterised by the capability or ability to manageprojects proved by five attributes: knowledge, skill, aptitude, attitude and experience.

All five attributes must be present to a greater or lesser extent to ensure competency.The level of competency then can be defined as how knowledgeable, skilled andexperienced a project manager is. The other two attributes of aptitude and attitude are,to a certain extent, innate traits linked to behaviour and personality that must be presentin a competent project manager.

ORGANISATION STRUCTURE WITH A PROJECT FOCUS

Project structures are influenced by the organisation or organisations that set them up.Typically, projects are a temporary part of an organisation larger than the project, also

known as the performing organisation. The structure of the performing organisationinfluences the availability of resources. Resources are usually allocated to projects by


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functional managers (sometimes called resource managers). Organisational structurescan be classified in a wide range from functional at the one end of the spectrum to pure

project at the other. Work is integrated horizontally through matrix management. Inreality, very few organisations operate as either a pure functional or a pure projectstructure. Most operate some form of matrix weak, balanced, or strong. The choice of

structure reflects the organisations approach and maturity to the management ofprojects.

The classic functional organisation shown in Figure 5 is a hierarchy where eachemployee has one clear superior. Staff are grouped by specialty, such as production,marketing, engineering, and accounting at the top level, with engineering furthersubdivided into mechanical and electrical. Functional organisations still have projects,

but the perceived scope of the project is limited to the boundaries of the function: theengineering department in a functional organisation will do its work independent of themanufacturing or marketing departments.

Figure 5: Functional Organisation

At the opposite end of the spectrum is theprojectised organisation shown in Figure 6. A

projectised organisation is defined as any organisational structure in which the projectmanager has full authority to assign priorities and to direct the work of individualsassigned to the project (PMBOK Guide). In a projectised organisation, team membersare often collocated. Most of the organisations resources are involved in project work,and project managers have a great deal of independence and authority.


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Figure 6: Projectised Organisation

Matrix organisations as shown in Figures 7 to 9 are a blend of functional andprojectised characteristics. Weak matrices maintain many characteristics of a functionalorganisation and the project manager role is more that of a coordinator than that of amanager. Similarly, strong matrices have many of the characteristics of the projectisedorganisation full-time project managers with considerable authority and full-time

project administrative staff.

Figure 7: Weak Matrix Organisation


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Figure 8: Balanced Matrix Organisation

Figure 9: Strong Matrix Organisation

A major feature of the matrix organisation is the conflict it induces. Functionalmanagers control organisation departments while project managers coordinate andintegrate work across functions. This causes conflict in that project team membersusually have to serve two managers: the manager of the functional department to whichthey belong and the project manager. When project demands conflict with the needs ofthe functional managers, problems arise. Trapped in the middle is the team membertrying to meet the expectations of both. As the project manager rarely controls the team

members remuneration and promotion, the team members loyalty will usually bestrongest towards their functional manager. Organisations that are serious about project


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management ensure that project managers evaluate team members performance on theproject and report these to both the functional manager of the team member and theproject sponsor. Additionally, project managers should be authorised to make rewardsavailable to project teams that perform well and deliver the results.

The strong matrix structure attempts to harmonise the powers of the project managerand the functional manager. The project manager is responsible for all projectmanagerial aspects while the functional manager is responsible for all technical aspects.Joint accountability has now been created as the project manager determines:

What is to be done (the project)When the project will be doneHow much money is available to do the project.

In turn, the functional manager determines:

How the work will be done Where the work will be done

Whether the work done is quality work

Who will do the work.

PROJECT PHASES AND THE PROJECT LIFE CYCLE

Organisations performing projects usually divide a project into phases to better providemanagement planning and control, and identify appropriate links to the organisations

ongoing operations. Collectively, the project phases are known as the project life cycle.Figure 10 illustrates a generic project life cycle.

Initial

phase

Intermediate phases

(one or more)

Final

phase

Cost or

staffing

level

Start FinishTime

Figure 10: Generic Project Life Cycle

Generally an initial phase and final phase are identical, with a number of intermediatephases in between. A project management process is used to move across a project life

cycle. A project management process is a generic description of a process that applies toall projects. It forms the basis for a methodology that can be described in terms of


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project management practice and a set of supporting tools and techniques. Applying aproject management process across the project life cycle is the challenge facing theproject manager and team.

PROJECT MANAGEMENT PROCESS

A typical project management process contains four phases: initiation, planning,execution and close-out. The Objective Directed Project Management (ODPM) processcontains five phases: initiation, definition, planning, execution and close-out, asreflected in Figure 11. Objective Directed Project Management (ODPMTM) is a processdeveloped by Frigenti and Comninos, described in detail in their book titled The

Practice of Project Management a Business Approach. The process consists of a seriesof interrelated steps, tools and techniques sequenced in a systematic and logical mannerto provide a process for initiating, defining, planning, executing and closing-out a

project. Project managers implement and rely on the process to effectively manage theproject as it provides both focus and consistency to project management. Project

management is most effective when applied in a consistent repetitive manner in theform of a process.

Each project phase is named or defined in terms of the major deliverable produced inthat phase. A deliverable is a tangible, verifiable work product such as a feasibilitystudy, user requirements specification, functional requirements specification, systemrequirements specification, detailed design, implementation plan, or systemdevelopment. Deliverables from the preceding phase are usually approved before workcommences on the next phase. Subsequent phases can sometimes begin before approvalof the previous phase deliverable when risks are deemed to be acceptable. This practiceof phase overlapping is called fast tracking.

Initial

phase

Intermediate phases

(one or more)

Final

phase

Cost orstaffing

level

Initiation Close-out

Time

Definition Planning Execution

Project

Charter

Project

definition

package

Integrated

baseline

Execution

complete

Project

Closed-out

Figure 11: Project Management Process (ODPM)

Although the ODPM process is continuous and sequential, it is subdivided into fivedistinct project management life cycle phases: Initiation, Definition, Planning,

Execution and Close-out. Tables 3 through 7 give the ODPM summary, showing stepsinvolved and tools and techniques used during each project life cycle phase.


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Table 3: Project Initiation Phase

Step Description/CommentsTool, Technique,

Template

1. Select projectmanager

Identify and select the best person to leadthe project

2. Scrutinise thedocumentation

The project manager must scrutinise alldocumentation relating to the project,

such as the business case and feasibilitystudies, to ensure completeness.

Business case andsupporting documentation

3. Stakeholderverification

Verify the stakeholders who should berepresented at the Project DefinitionWorkshop. Stakeholders should havebeen identified and analysed when

preparing the business case.

Business case andsupporting documentation

4. Produce the ProjectCharter

The Project Charter document isproduced and signed by the sponsor andproject manager. The project manageraccepts accountability for the project.

Project Charter

5. Inform all partiesInform all parties of the start of the

project by circulating the Project Charterto all affected and involved parties.

Project Charter


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Table 4: Project Definition Phase


Template

1. Convene ProjectDefinition

Workshop

Convene the Project Workshop on asuitable date and at a suitable venue.

Inform all and appoint a facilitator.

Project DefinitionWorkshop (PDW)

Nomination form

2. Brainstorm andcategorise issues

Brainstorm, categorise and document theissues. Anything not related to the

project is put on a parking lot list.

Issue listsParking lot

3. Determine projectpurpose or mission

A concise statement is drafted, whichdescribes the purpose of the project and

acts as a focus for the participants.

Project Purpose andObjectives Template

4. Determine objectivesand performancemeasures

Document the measurable objectives andperformance that must be delivered by

the project. This will containmeasurables for the project as well as the

organisation.

Project Purpose andObjectives Template

5. Determine theDeliverablesBreakdownStructure (DBS)

Determine the tangible deliverables thatthe project is to produce. Develop the

Deliverables Breakdown Structure(DBS).

Deliverables BreakdownStructure (DBS)

6. Establish scope,assumptions,constraints andlimiting criteria

Establish and document any constraints,assumptions and limiting criteria.

Determine the scope, particularly what isin and out of scope.

Initial Scope,Assumptions, Constraints

and Limits Template

7. Determine resultmilestones andinitial time

estimates

Determine the result milestones andplace them in a logical sequence.

Determine the best initial time estimates.

Milestone ObjectiveChart (MOC)

8. Determine theresponsible entities

Determine the core team and otherentities that will drive the project

forward

List of responsible entitiesContact lists

9. Determine theprojectresponsibilities

Determine decision-making power.Determine and document who isaccountable for achieving which

milestone and who has the responsibilityfor doing the work.

Milestone ResponsibilityMatrix (MRM)

10. Preparecommunications

plan

Develop a communications plan orstrategy to meet the information and

communication needs of thestakeholders.

Outline CommunicationPlan

11. Perform projectrisk analysis

Identify the risks to the project andanalyse them in terms of impact,manageability and probability.

Formulate responses to the risksidentified.

Risk Evaluation template

12. Calculate initialcost estimates

Calculate the costs based on theinformation and data established up to

this point. Produce an initial costestimate (order of magnitude estimate).

Cost estimatingCost Estimate template

13. Produce Project

Definition Report(PDR)

Prepare all the documents relating to the

above steps and collate them into onedocument.

Project Definition Report

(PDR)


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Table 5: Project Planning Phase


Template

1. Organise planningwork and conveneany planningworkshops

Verify who will be accountable fordoing the detailed planning work

(normally indicated by the MilestoneResponsibility Matrix). Convene any

required planning workshops.

Work PackageResponsibility Matrix

2. Determine workinvolved at detaillevel

Break down the project work to be doneto detailed (activity) level. Construct the

Work Breakdown Structure (WBS).

Work BreakdownStructure (WBS)

3. Perform timeanalysis

Carry out a time analysis on the projectactivities using an appropriate method.

Gantt chartCritical path analysis

Activity schedules

Computer package4. Perform resource

analysisAllocate resources to the activities and

perform a resource analysis.Resource analysis

5. Perform costanalysis

Calculate the costs based on theinformation and data established up to

this point. Produce a detailed costestimate.

Cost estimatingCost Estimate template

6. Prepare quality plan Prepare the quality plan Project quality plan

7. Preparecommunications plan

Prepare the communications planProject communications

plan

8. Prepare humanresources plan

Prepare the human resources planProject human resources

plan

9. Prepare procurementplan

Prepare the procurement plan Project procurement plan

10. Integrate projectplan

Ensure that all planning work for allwork packages is integrated and all crosschecks are performed. Ensure integrationof all aspects (cost, time, quality, scope,

risk, etc). Project manager takesaccountability for the project plan.

Integrated Project PlanBaseline

11. Do cash flowanalysis

Prepare the cash flow graphs andperform a cash flow analysis

S-curve graphsCash flow schedules

12. Produce Integrated

Plan Baseline

Collate all project documentation as at

this point and produce the IntegratedPlan Baseline Integrated Plan Baseline

13. Determine controlmechanisms, projectmanagementinformation system(PMIS) and key

performanceindicators (KPIs)

Determine the control methods andmechanisms. Establish and document theKPIs for managing project performance.

Ensure that the PMIS can producemanagement information.


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Table 6: Project Execution Phase


Template

1. Hold kick-offmeeting

Hold meeting to officially kick-off the

execution phase of the project and toensure that all are aware of what needs tobe done.

2. Establish monitoringand control systemsand projectinfrastructure

Set up the processes required to monitorand control the project as well as toestablish any infrastructure required.

3. Monitor andevaluate project

performance andprogress

All aspects of the project (time, cost,quality, changes, risks, etc) are monitoredregularly. The monitored information is

evaluated and reviewed on a regularbasis. Identify and flag any deviations.

Earned value reports andschedules

Cost reportsActivity progress reports

Key performance

indicators4. Produce progress,

status andperformance reports

Produce regular progress, status andperformance reports for the project.Circulate to all who need to know.

As above, attached to aformal progress report

5. Apply control,feedback and

problem solving

Act on any deviations to the plan.Address any day-to-day problems.

Control, feedback andproblem solving

techniques

6. Revise baseline ifrequired

If changes are made to any aspect of theIntegrated Plan Baseline, then the

document must be updated to reflectthose changes.

Integrated Plan Baseline


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Table 7: Project Close-out Phase


Template

1. Plan completion Plan the completion of the work.Gantt chartCritical path analysisActivity Schedules

2. Deliverableverification (clientacceptance)

This has been taking place throughout theExecution Phase. Ensure that alldeliverables have been accepted andsigned off by the client.

Acceptance Certificates

3. Review performancecriteria

Review the measurable objectives andperformance criteria agreed during theProject Definition Phase. Has the projectachieved what it set out to do?

4. Release resources

Release any resources from the project.

Advise all resources managers that theyare relieved of their commitments to theproject.

5. Contractual aspectsand final accounting

Ensure that all the contractual aspectshave been settled and that the finalaccounting has been done.

6. Complete alldocumentation

Ensure that all project documentation iscollated and filed.

7. Post implementationreview (PIR)

Conduct a post implementation review(PIR). This establishes what went well,what did not happen according to plan,lessons learnt, etc.

8. Write final projectreport

Write a final project report summarisingthe history of the project and evaluationof the performance.

9. Terminate andarchive project

End the project and archive alldocumentation. Advise all of thecompletion and termination of the

project.

PROJECT MANAGEMENT SOFTWARE APPLICATIONS

Many major software manufacturers have developed software programs specifically

designed to assist project managers. These programs combine features of wordprocessor, spreadsheet, and database to ease the organization and tracking process forproject managers. All the elements of the project management programs are linked, sothat information entered is transferred into a variety of documents, including calendars,financial reports and schedules.

Advantages of Project Management Software

The main advantage to using project management software is that it eases the complexorganization process of a project. Projects are made up of numerous tasks, many ofwhich are inter-related. The software allows a project manager to input these tasks, and

the computer is then able to organize them into schedules, budgets, and reports.


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Tied to the above advantage, project management software provides the benefit of asystem that records, stores, and recalls all details of a project in one place. This is usefulthroughout the duration of the project, and also serves as a historical record once the

project is complete. Once project information is inputted into the program, the softwareacts as a tool to analyze information in various ways.

Finally, project management software assists a project manager by easing thecommunication of progress to other parties through reporting features, data sharing ande-mail.

Disadvantages of Project Management Software

There are two main disadvantages of project management software.

First, in order to benefit from project management software, the user must have anunderstanding of the project management methodology and vocabulary. Most project

management software packages rely on this as a prerequisite. Unless the user followsbasic planning and task definition steps, the software will not be of any benefit, andmay, in fact, complicate the project.

Second, the information that a project manager inputs into the software is likely tochange throughout the course of the project. Reports and analyses produced by thesoftware are based on the data entered in the planning phase. As problems occur andthings do not go as planned, the information stored in the software is no longer valid.Consequently, a project manager using software must enter any changes into thecomputer as they occur, and re-generate analyses and reports. Some project managersfeel that this adds to their workload, and outweighs the benefits of the software.

MICROSOFT PROJECT

Microsoft Project is among the most widely used project management software. It isaccessible to most people, and is considered to be the easiest program to use. Because itis a Windows based application, the basic features of the program are intuitive for mostWindows users. Microsoft Project can handle large projects, multiple users, andmultiple projects. It can produce Gantt charts and network diagrams, and can assist incritical path analysis, resource allocation, project tracking, status reporting, and so on.


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Project Management Concepts and Techniques-The Project Management Process


THE PROJECT MANAGEMENT PROCESS

THE PROJECT INITIATION PHASE

The Project Initiation Phase is the first phase of the project management life cycle. It isthe start of a process that takes the Project Brief through to the delivery of the projectsoutcomes back into the business.

The most important objectives of this phase are to ensure that:

a project manager is selected to lead the project

the project manager is briefed on the project by the project sponsor (a sponsormakes resources available to buy the projects deliverables, while satisfying

the owners business improvement objectives. The sponsor must have theauthority from upper management to deliver the project, and is responsible andaccountable for the selection of the best person to lead the project)

the project manger accepts accountability for the project

authority is given to the project manager to deliver the project

all parties are made aware of the project and of the project managers authority.

The major outcome of this phase will be an authorised and briefed project manager whocan take the process further. Once the project manager has agreed to accept the project

brief, project management authority over the project must be delegated to the projectmanager. This authority to proceed is contained in a document aptly called the Project

Charter.

The Project Charter formally recognises the existence of a new project and serves toauthorise (grant) the project manager to make use of the organisations resources(rights) such as people, equipment, materials, and funds to deliver the project. TheProject Charter document is normally concise and should cover at least the following:

the overall project purpose

the priority of the project relative to other initiatives in the organisation

identification of the project manager and sponsor

the extent of the project managers authority important dates and estimated project duration

funds available (cost of the project)

any other resource limitations.

The Project Charter is normally produced by the project sponsor in cooperation with theproject manager and is signed by both parties the sponsor authorising and the projectmanager accepting. Only after both have signed can it be said that the project has beeninitiated. After the charter, the project enters the Project Definition Phase.

SCENARIO FOR EXAMPLE PROJECT: THE ENGINEERING INSTITUTION

OF ZAMBIA (EIZ) NATIONAL SYMPOSIUM


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The EIZ holds a national symposium every August of each year. The symposium is organised by

the EIZ secretariat. During the past three years, the attendance and quality of these National

Symposia has being going down. An assessment has revealed that the main causes for this has

been lack of communication, low quality of papers presented, absence of proceedings, and a

reduction of paid up members. For this years National Symposium, the EIZ Council has

therefore decided to appoint a professional project manager to manage the National

Symposium. It is also envisaged that a successful National Symposium would create awareness

and contribute to membership building.

Project Brief

The EIZ contracted the project manager to manage the National Symposium and exhibition to

be held over three days during the usual month of August. Specifically, the project manager will

be responsible for planning, organising, coordinating and controlling the project.

The Institute has allocated an amount of K10,000,000 for initial expenditure, but this has to be

paid back out of the Symposium and exhibition proceeds. Companies have been approached for

sponsorship and K15,000,000 has been raised. Funding over and above these amounts is to begenerated through the Symposium and exhibition fees.

The Institute expects the Symposium and exhibition to realise a net profit of at least

K50,000,000. To achieve this target, at least 100 Symposium delegates and 20 exhibitors are

needed. A minimum of 20 new members are expected to enrol as a result of the proceedings.

Over the three-day period, approximately 2,000 visitors are expected to visit the exhibition.

To attract both members and non-members, a quality professional programme highlighting

nationally-known engineers as well as an international keynote speaker is planned.

The project start date is 1 February and it is estimated to take 11 months.

The project manager draws up a project charter capturing the above parameters, and the EIZ

Secretary, acting as sponsor, approves it.

Project Core Team

The project has just been initiated and the project manager and sponsor have assessed the high-

level staffing requirements in terms of skill and time required. Four members from the EIZ

Publications Committee have been identified. The four team members (Banda, Chola, Moonga

and Yeta) are assigned part-time to the project due to existing workloads.

THE PROJECT DEFINITION PHASE

Before a project team does any work, it should spend time ensuring that it has a sharedunderstanding of where it is going. The terms used to define that destination aremission, vision, goals, and objectives. This understanding of the project mission is doneduring the Project Definition Phase.

The Project Definition Phase follows the Project Initiation Phase, and is probably themost important stage in the life of a project, as it is during this time that the foundationsof the project are laid. The result of the Project Definition Phase should be a project that

is well conceived with stakeholder buy-in. Poor definition often leads to project failurewith inevitable stakeholder dissatisfaction and team disillusionment. Most of the Project


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Definition Phase process is executed as a single facilitated workshop: the ProjectDefinition Workshop (PDW). A neutral facilitator must conduct the workshop. ThePDW acts as the kick-off meeting to the planning phase and fixes the official start of the

project.

DETERMINE THE PROJECT PURPOSE/MISSION

The PDW must start by constructing the project purpose/mission. This must be short,clear and to the point. This is the projects primary objective. An effective project

purpose/mission statement contain the following elements:

identification of the problem or opportunity

a proposed solution to the problem

a link to the strategic intent of the project.

The project purpose/mission gives the workshop group a clear strategic statement,

which forms the basis of further project definition. It serves to focus the groups furtherdiscussions.

Project

Purpose/Mission

In order to enhance the value and impact of the annual EIZ

National Symposium, the EIZ Council has decided to improve the

planning and organisation of its symposia and exhibitions by

applying project management process.

An effective symposium will also create awareness and

contribute to membership building.

DETERMINE THE OBJECTIVES AND PERFORMANCE MEASURES

Next the Objectives and performance measures must be developed. These add detailto the projects primary objective (purpose/mission). They are measurable results thatconfirm whether the project purpose/mission has been achieved. The objectives and

performance measures must therefore contain two important elements:

identification of what final objectives or performance the project must achieve

verification that the projects objectives and performance have been achieved.

Effective objectives and performance measures will:

focus the entire project team on the final results that must be achieved

further describe the project purpose/mission

collectively be the most important milestone of the project on which all planningmust continuously focus (that is, they are part of the final project milestone)

indicate the measurable end of the project.

It is important to note that the objectives and performance measures are relatedspecifically to the project deliverables. Objectives must also not be outside the influenceof the project team. The objectives must be SMART (Specific, Measurable, Agreed,

Realistic, Time bound).


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Objectives and

Performance Measures

Hold a successful symposium as indicated by an 80% ormore delegate satisfaction level measured off evaluations.

Hold a successful exhibition as indicated by an 80% or morevisitor satisfaction level measured by exit survey.

Realise a profit of K50,000,000 from the entire proceedings.

Receive at least 20 new applications for membership fromdelegates and visitors within three months of theproceedings.

Attract at least 100 conference delegates, 20 exhibitors and2,000 exhibition visitors.

DETERMINE THE DELIVERABLES BREAKDOWN STRUCTURE

Once the purpose/mission and objectives have been determined, the initial scope of theproject needs to be defined. The precursor to this is establishing the project deliverables.The essential tool used to assist in the development of the project deliverables is the

Deliverables Breakdown Structure (DBS). The DBS identifies and displays thedeliverables to be produced and/or accomplishments or results to be achieved as well asthe sub-elements of the project. If a DBS cannot be developed for a project at this stagethen too little is known about the project to achieve it, let alone manage it!

The input to the DBS come from the business case, purpose/mission, objectives,analysis of the issues and discussion. The development of DBS assists the workshopgroup to:

further understand and define the scope

develop the Milestone Objective Chart (MOC)

develop a cost estimate.


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The DBS follows the same concepts and rules for the construction of a WorkBreakdown Structure (WBS), which a discussed later on. In fact, as more information

becomes available during the Project Planning Phase, the DBS is modified andexpanded to become the detailed WBS.

01 Symposium and Exhibition01.01 Symposium

01.01.01 Programme

01.01.02 Handouts

01.01.03 Speakers

01.01.04 Facilities

01.02 Exhibition

01.02.01 Exhibitors

01.02.02 Facilities

01.03 Marketing and Communications

01.03.01 Venue and Date

01.03.02 Mailing List

01.03.03 Brochures01.03.04 Registration

01.03.05 Recruitment Information Packs

01.04 Funding

01.04.01 Go/No-Go Scenarios

01.04.02 K50,000,000 Profit

01.05 Project Management

01.05.01 Project Definition Report

01.05.02 Detail Plan Baseline

01.05.03 Post Implementation Review Report

ESTABLISH SCOPE, ASSUMPTIONS, CONSTRAINTS AND LIMITING

CRITERIA

Using the DBS as input, the PDW must develop the initial project scope, assumptions,constraints and limiting criteria (the project boundaries). These will guide and assist thegroup in defining the project result milestones and detail planning.

The scope is the overall description of the project and is often described aswhat is in and what is out of the boundaries (scope) of the project or, whatthe project is and what the project is not.

Assumptions are details of the project that are not explicitly stated in anyprevious document or discussion but have been (or will be) used to takedecisions.

Constraints indicate the restraining boundaries within which the project must beachieved.

Limiting criteria indicate the scope limits (quantum) of the deliverables to beproduced.

Some typical constraints, limiting criteria and scope boundaries are:

time (completion date, holidays, specific events) cost (maximum expenditure, funding method, cash flow)


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resources (source, location, quantity, availability)

inclusions (what is included what the project is)

exclusions (what is to be excluded what the project is not)

policy, rule, or system constraints (standards to be followed)

quantities.

The scope, assumptions, constraints and limiting criteria are usually expressed innarrative list form.

Scope, Constraints and

Limiting Criteria

(What is in scope)

1. Hold a conference for at least 100 delegates.2. Create an exhibition area for at least 20 exhibitors.3. Provide facilities for at least 2,000 visitors.4. Initial funding of K10,000,000 will be provided by the

Institute but must be paid back.

5. A further donation of K15,000,000 will be provided bycompanies and organisations.

6. Project duration is 11 months. The project start date is 1February.7. The symposium and exhibition must not take place later than

the end of August.

8. Project team is to be drawn from EIZ PublicationsCommittee members only. Their time will be voluntary.

9. A recruitment pack must be developed and the EIZ must beone of the exhibitors.

10.The exhibition and symposium must be a three-day event.11.The conference programme must have between 16 to 20

speakers, of which at least one must be an international

speaker.

12.The venue to be no more than an hours travel from CapitalCity.

13.Catering for symposium delegates and exhibition visitorsmust be organised.

14.Speakers expenses will be paid, but the speakers will notreceive a fee.

What is out of Scope

(What the project is not)

1. The actual growth in membership will not be a deliverablefrom the project.

2. This project is not the complete marketing strategy of EIZ.3. This project will not be the sole contributor to greater market

awareness of the EIZ.

DETERMINE THE RESULT MILESTONE

At this point in the process, the final objectives for the project have been defined. Twodefinite milestones are therefore already known: the start (the Project DefinitionWorkshop) and the end (the Objectives). The project objectives and performancemeasures, DBS, and initial scope information all combine to form the final goal ormilestone that the project must reach. The next step is to develop the map, route, or planof how the project will proceed from start to end. The map or plan must also illustratehow the project will unfold from start to final objective. The tool used for this purposeis the Milestone Objective Chart (MOC).

The following points and observations define the concept of milestones as objectives.


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Milestones describe the state the project should be in at a specific time.

Milestones are not tasks or activities.

Milestones do not have a duration (time).

Milestones describe what has to be achieved and not how it must be achieved.

Milestones describe events or states that are natural to the project and to themilestone chart users.

Milestones can represent important decisions to be taken.

Milestones must be measurable either quantitatively or qualitatively.

To illustrate this, the following milestone could be set for a property developmentproject.

When a suitable property for development has been identified and approved by the

client.

This milestone can be checked against the above observations.

This milestone states what is to be achieved (the objective), being propertyidentification and client approval. It does not describe how this is to be done (theactivities needed).

In a property development project, it is natural to select a property fordevelopment.

It represents an important decision in terms of the project.

It is measurable and controllable by monitoring the progress towards propertylocation and securing.


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Target dates must be set for every milestone (Initial Time Estimates). These targetdates must be respected, but not any cost. They must be balanced against the projectsother objectives of cost and scope.

Goal Routes

M S CS E

Milestone

Id

Plan

DateDescription

CompletionDate

ReportDate

Report

10 26/02 When the date has been set andthe venue located & confirmed

20 01/05When the speakers have been

selected and confirmed

30 06/03When the exhibitors have beenobtained and confirmed

40 06/03When the mailing list has been

prepared and approved

50 20/03When the event programme has

been compiled & approved

60 05/06When the brochure has beendesigned, approved & printed

70 10/06When the brochure has been

mailed

80 12/06When speaker notes andpresentation visuals have beenobtained from the speakers

CS

S

E

M

S

M

M

S

CS 90 1/07When 50 delegates and 15exhibitors have been registered

(Go/no-go decision)

Goal Routes: M = Marketing; S = Symposium; CS = EIZ Council/Secretariat; E =

Exhibition

DETERMINE THE RESPONSIBLE ENTITIES AND THE PROJECT

RESPONSIBILITIES

Identify responsible entities involved in the project and then indicate their specific rolesand responsibilities on the project. The Milestone Objective Chart provides an overallview of the project. Using the list of entities and the MOC, the PDW needs to organiseand coordinate the project. This is done using the Milestone Responsibility Matrix(MRM) as the tool.

The following must be considered when organising a project.

Functional or resource managers must commit to the project, as they will beproviding resources to the project at the required time. The provision of

resources to a project by a functional manager is not a favour but anobligation. The role the assigned resource will fulfill on the project and when theresource is required must therefore be formally agreed as early as possible.

Levels of authority and responsibility must be clearly defined for bothpermanent and temporary project participants.

Decision-making responsibility must be clearly defined at an early stage. It isalso important to ensure that the project does not take away the decision-makingresponsibility from those who usually hold it. People must not be allowed tomake decisions when they do not have the necessary knowledge, skill, orauthority.


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The Milestone Responsibility Matrix (MRM) is created by the workshop group throughdiscussion. The parties to be committed to the project must be involved in thediscussion. This stage defines the relationship between the individual parties to the

project. In the MRM, the rows represent milestones and the columns the responsibleentities.

The following lists possible roles and responsibility with a single identifying character.

X eXecutes the work (responsibility)D takes Decision solely or ultimately (authority)P manages Progress (accountability)C must be ConsultedI must be Informeda available to advised takes decision jointly or partlyp manages function progress

Q assures QualityT provides TuitionM provides MentoringH provides Help (coaching)

The following rules apply to the use of the symbols.

Each row must contain at least a D, P and X.

There can be multiple Xs and ds on a row but only one D and one P.

Capital P indicates who has accountability for the planning and monitors theprogress and is therefore accountable for the outcome of the milestone.

There can be multiple symbols in a cell.

An analysis of the completed MRM can tell much about the project. The horizontal(row) view shows the milestone as an objective (goal) to be achieved and the group andteam who will achieve it. The vertical (column) view shows the role that an entity will

play on the project. The number ofDs and Ps in a column is an indication of the powerand influence of that entity over the project. If a column has no entries, then that entityis not involved in the project. If there are many Is and no Ds, Xs, orPs then the entity is

probably an observer and could cause problems downstream. Too many Xs in a columncould indicate a workload that may need balancing.


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Milesto

ne IdDescription

Project

Mangr

Mktng

(Banda)

Conf

(Chola)

Exhib

(Moonga)

Venue

(Yeta)

EIZ

Councl

Food &

Bev

Ad

Agency

10

When the date hasbeen set and the

venue located &confirmed

D Cd Cd Cd PXd D

20When the speakers

have been selectedand confirmed

I PXd CD

30When the exhibitors

have been obtainedand confirmed

I PXD C Cd

40When the mailing list

has been preparedand approved

PXD C C I

50When the eventprogramme has been

compiled & approved

Pd C Xd X I CD

60When the brochurehas been designed,approved & printed

d PXD C C I C Xdp

70When the brochurehas been mailed

P XD I I

80

When speaker notesand presentationvisuals have been

obtained from thespeakers

Pd I PXD I

90

When 50 delegates

and 15 exhibitorshave been registered

(Go/no-go decision)

Pd C Xd Cd Xd D I

Legend: X=eXecutes the work; P=manages Progress; C=must be Consulted; p=manages function

progress; D=takes Decision solely; d=takes decision jointly; I=must be Informed; a=available to advise.

PREPARE THE COMMUNICATIONS PLAN

Projects generate information that needs to be communicated to project participantsregularly and punctually, and this needs to be planned. The communications planessentially documents the information needs of the project participants. During thedetailed Project Planning phase, a more detailed communication plan is produced. That

plans contains a description of the communications tools and techniques which will beused (medium), as well as who receives what information (groups) and when(frequency), and who is responsible for communicating with the specific group. Duringthe Definition Phase, an outline communications plan is developed.

PERFORM PROJECT RISK ANALYSIS:

Projects are undertaken because the projected benefits are attractive to the owners whencompared to the risks of not undertaking the project. Project risks focus on future eventsthat could prevent the project from reaching its stated objectives. Effective managementof risks will increase the probability of achieving project objectives. Therefore, anessential and integral part of project definition is the initial risk evaluation. From the

perspective of upper management and the client, risk assessment is of the most utmost


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importance, as a decision to go ahead with the next phase of the project has to be made.From the project participants perspective, risk assessment highlights potential problemareas, the probability of their occurrence, and the consequences/impact on the projectshould they occur. The risk treatment (how the risk will be handled) is an indication ofthe thoroughness of the project teams approach to risk management.

Risk evaluation is done against a set of criteria that enables risks to be compared andevaluated on a similar basis. Therefore, quantitative evaluation involves comparison ofa quantitative level of risk against quantitative criteria. Stakeholder perception and the

performing organisations policies, goals and objectives are essential factors to considerwhen developing the risk evaluation criteria. Criteria are further influenced by thespecific and unique aspects of a project, which distinguish it from other organisationinitiatives.

RISK IDENTIFICATION AND ANALYSIS

Comprehensive identification using a well-structured systematic process is essential, asrisks that are not identified at the early stages of projects could result in majorimplementation problems downstream. The identification should include all riskswhether they are under the control of the performing organisation or not. Risk isanalysed by estimating the likelihood of the event occurring and the consequences orimpact of the event if it does occur, within the context of the project criteria and controlmeasures. The aims of the analysis are to prioritise the risks separating the minor,acceptable risks from the major risks and to provide data to assist in the evaluationand treatment of risks. A tool that can be used to assist to assess the likelihood of therisk occurring and consequences/impacts of the risk is the project risk analysis matrixshown in Table 8. The result of this analysis is the severity level.

Table 8: Risk Analysis MatrixConsequence/Impact

High Medium Low

High 1 2 6

Medium 3 5 8

Low 4 7 9

In the matrix, selecting the relevant impact and likelihood of occurrence for aparticular risk results in a level between 1 and 9, which is an indication of the severityof the risk; 1 being high and 9 being low. Management is applied irrespective of therisks severity level the severity level simply indicated the intensity of managementrequired. This severity level should be recalculated regularly during the execution of the

project and reported on at progress meetings. This provides an indication of howsuccessfully risk management is being applied.

The project risk evaluation is prepared during the Project Definition Phase and ProjectPlanning Phase of a project. During the Project Execution Phase, this document isconstantly reviewed and updated with any new risks identified or with risks that could

arise out of the progress of the project. The result of risk analysis is presented in a RiskEvaluation Matrix.

Likelihood of

Occurrence


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Risk: What can go

wrong?

Occurrence

H/M/L

Impact

H/M/LSeverity

LevelRisk Treatment

Symposium venue couldbe unsuitable

H H 1 Select venue carefully

Draw up a criteria list for selection

Quality of speakers notexcellent

H H 1

Research which speakers the industry wants

Select keynote speaker carefully for maximumvisibility

Research industry requirements on subject areas

Research for current topical issues

Draw outlines for speakers

Symposiumadministration fails

L M 7

Discuss with EIZ members and otherorganisations that have held similar seminars

Develop a list of administrative duties

CALCULATE THE INITIAL COST ESTIMATE

A cost estimate based on all the available information (DBS, scope, milestones, risks,responsibilities, etc) must now be prepared. The cost estimate is normally doneseparately from the Project Definition Workshop and is the last step before producingthe Project Definition Report. The cost estimate is usually done by the project managerwith inputs and assistance from other project participants. A Budget/EstimateWorksheet can be useful in creating the estimate.

Work Element Cost Components (Allowables) ZMK 000

Code Description Eqpt HR Material Sub-Cont Contig Other Total

010101 Themes and programme 1000 1000

010102 Materials 9000 8000 1000 18000

010103 Speakers 12300 12300

010104 Prepare facility 1500 1500010201 Exhibitors 300 300

010202 Prepare site 21000 21000

010301 Find location 2000 450 2450

010302 Set date 250 250

010303 Arrange food & bevages 0

010401 Brochure 1500 550 2000 13500 500 18050

010402 Registration 500 600 1100

010501 Run proceedings 10000 1000 9100 1000 21100

010502 End-off 2300 2300

Contingency 14000 14000

TOTALS 3000 21850 11500 45600 14000 17400 113350

The approach is to consider primarily what it will cost to produce the deliverables givenin the DBS, and defined by the scope, limits and constraints. The MilestoneResponsibility Matrix will provide some indication of the timing and resources requiredand these must be taken into consideration. Risk areas identified must be carefullyconsidered and the cost allowances made for the actions required to manage the risk.The accuracy of the estimate will depend on the level of detail available up to this point,and depends on the experience of the estimators.


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PRODUCE THE PROJECT DEFINITION REPORT

The intention of the Project Definition Report (PDR) is to:

enable all participants to better understand the project in terms of the definitionparameters

seek approval to proceed with the detailed Planning Phase

form the preliminary baseline against which the planning phase developmentwill be measured

obtain commitment and buy-in from all participants through signed acceptanceof the PDR.

A well-developed Project Definition Report will normally contain at least the following:

project purpose/mission

objectives and performance measures

Deliverable Breakdown Structure (DBS)

initial scope, assumptions, constraints and limiting criteria

Milestone Objective Chart (MOC)

Milestone Responsibility Matrix (MRM)

basic communications plan

risk analysis (Risk Evaluation Matrix)

cost estimate (Estimate/Budget Worksheet).

The following can optionally be included:

issues parking lot list

Function Responsibility Matrix

risk management responsibility matrix

more detailed description of the deliverables

contact list of all participants.

Once the Project Definition Report has been approved, the project team can proceedwith the detailed Project Planning Phase.

THE PROJECT PLANNING PHASE

Following the approval of the Project Definition Report (PDR), the Project PlanningPhase begins in earnest. During the Project Planning Phase we fully clarify, plan andevaluate the project. The deliverable from this phase will be the Integrated ProjectPlan Baseline. The PDR provides the overall view of what needs to be planned. TheIntegrated Project Plan Baseline produced must operate within the scope and boundariesdefined and agreed to in the PDR.

Project planning follows a process the output of which is the project plan. There can

be only one plan for a project, although it may integrate individual plans for various


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aspects of the project such as time, cost, quality, risk, human resources, procurement,and communications.

There are different levels of plans relevant to projects. These can be broadly categorisedas follows.

Strategic plans developed by client/management with emphasis on the changethe project must bring about.

Management plans developed by the management of the project (client, projectmanager, and functional managers) with the emphasis on the results ordeliverables the project must achieve. Su

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