Participants Workbook Project Management

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PROJECT MANAGEMENTParticipants WorkbookWhat is project management? Project Management is the discipline if planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives. Wikipedia refers to it as a temporary endevour having a defined beginning and end.

African Sunrise (Pty) Ltd. | AGENDA HR Connect CC

HR Connect (Pty) Ltd. 31 August 2010

PARTICIPANTS WORKBOOK Delegate Name:

Facilitator:

Date:

Copyright 2010 All rights reserved

HR Connect Training Institute (Pty) Ltd.

Information in this book is subject to change without notice. No part of this book may be produced or transmitted in any form, without written permission of HR Connect Consulting.

HR Connect (Pty) Ltd.

LETTER OF NOTIFICATION Facilitators: Marchelle Tinker Brent-David Kadalie Charlene Martin Thapelo Motsieloa Melvina Minnaar Venue: Physical Address: Map 204161754 204147352 205208649 205003001 193027305 CPUT, Commerce Lecture Theatre Room 2.65 Keizersgracht and Tennant Street Zonnebloem

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5. Date of Workshop:

31 August 2010


6. Number of Learners: 7. Time of Workshop:

60 17:00 21:0


AGENDA AGENDA ITEM Registration Welcome / Introduction TOPIC Tick registration form Receive participant packs Welcome participants Introduction of Facilitator Introduction of Trainees Ice Breaker Introduction Course Expectations Done by facilitators Introduction of the topic and the course overview 1. Project Integration Management 2. Project Cost Management 3. Project Communications Management Project scope management The learner is required to complete a case Study Project Quality Management Project Risk Management Case Study Project Time Management Project Human Resources Management Conclusion Questions and answers Graduation Project Procurement Management Wrap up of the programme Learners have an opportunity to ask question and answers Each learner receives a certificate of completion

Case Study

Activity


TABLE OF CONTENTS

LETTER OF NOTIFICATION..................................................................3 AGENDA............................................................................................ 5 TOPIC: PROJECT MANAGEMENT...........................................................8LESSONOVERVIEW:..........................................................................................................................8

INTRODUCTION.....................................................................................................................11 HISTORY....................................................................................................................................11 APPROACHES...............................................................................................................................13

PROJECT INTEGRATION MANAGEMENT...............................................17PROJECT PLAN DEVELOPMENT ...........................................................................................................17 PLANEXECUTION...........................................................................................................................18

INTEGRATED CHANGE CONTROL .........................................................................................................19

PROJECT SCOPE MANAGEMENT.........................................................22INITIATION .................................................................................................................................22 SCOPE SCOPE SCOPE SCOPEPLANNING

.........................................................................................................................23 ......................................................................................................................24 ................................................................................................................25

DEFINITION.........................................................................................................................24 VERIFICATION

CHANGE CONTROL

PROJECT TIME MANAGEMENT............................................................ 28ACTIVITY DEFINITION .....................................................................................................................28 ACTIVITY SEQUENCING ...................................................................................................................28 ACTIVITY DURATION ESTIMATING .......................................................................................................29 SCHEDULE DEVELOPMENT ...............................................................................................................29 SCHEDULE CONTROL......................................................................................................................30 RESOURCE PLANNING.....................................................................................................................33 COST ESTIMATING ........................................................................................................................34 COST BUDGETING ........................................................................................................................34 COSTCONTROL............................................................................................................................35

PROJECT QUALITY MANAGEMENT......................................................38QUALITY PLANNING .......................................................................................................................38

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QUALITY ASSURANCE .....................................................................................................................39 QUALITY CONTROL .......................................................................................................................39

PROJECT HR MANAGEMENT............................................................... 43ORGANIZATIONAL PLANNING .............................................................................................................43 STAFF ACQUISITION ......................................................................................................................43 TEAM DEVELOPMENT .....................................................................................................................43

PROJECT COMMUNICATION MANAGEMENT.........................................47MEANSOF COMMUNICATION:.............................................................................................................47

COMMUNICATION PLANNING..............................................................................................................48 INFORMATION DISTRIBUTION..............................................................................................................48 PERFORMANCE REPORTING................................................................................................................48 ADMINISTRATIVE CLOSURE................................................................................................................51

PROJECT RISK MANAGEMENT............................................................55RISK PLANNING............................................................................................................................56 RISK IDENTIFICATION......................................................................................................................56 QUALITATIVE RISK ANALYSIS.............................................................................................................57 QUANTITATIVE RISK ANALYSIS...........................................................................................................58 RISK RESPONSE PLANNING...............................................................................................................58 RISK MONITORINGAND

CONTROL.......................................................................................................59

PROJECT PROCUREMENT MANAGEMENT............................................63PROCUREMENT PLANNING.................................................................................................................63 SOLICITATION PLANNING..................................................................................................................64 SOLICITATION...............................................................................................................................64 CONTRACT ADMINISTRATION..............................................................................................................64 CONTRACT CLOSE-OUT...................................................................................................................65

NOTES............................................................................................66 BIBLIOGRAPHY................................................................................68


TOPIC: PROJECT MANAGEMENT Lesson overview: This workbook will highlight what project management is and subsections thereof. This programme will provide a structural and logical approach to project management as well as an outline of the planning, co-ordination and control techniques utilised by industry. The learner must be able to develop a understanding of the project management processes and be able to develop integrated project plans and techniques to monitor and control information quickly and accurately to facilitate problem-solving and decision-making processes throughout the duration of the project. The objective of this course is to provide managers of projects with the necessary skills to address these problem areas and to deliver projects within budget and time constraints.

LEARNING OUTCOMES: After completion of the training, you should be able to: Understand the project management environment Understand and apply contemporary project management principles. Understand the application of appropriate software to assist in completing projects. Be able to apply the latest planning and controlling project management skills. Be able to effectively budget for proposed projects. Be able to apply other related management skills required for effective project management.

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We will be coving the following Topics:


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INTRODUCTION


INTRODUCTION Project refers to the management and discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives. It is sometimes associated with program management, however technically a program is actually a higher level construct: a group of related and somehow interdependent projects. It is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables). It has unique goals and objectives, usually to bring about beneficial change or added value. The temporary nature of projects stands in contrast to business as usual (or operations), which are repetitive, permanent or semipermanent functional work to produce products or services. In practice, the management of these two systems is often found to be quite different, and as such requires the development of distinct technical skills and the adoption of separate management. Wikipedia describes the primary challenge of project management as achieving all of the project goals and objectives while honoring the preconceived project constraints. Typical constraints are scope, time, and budget. It also talks about the secondary, and more ambitious challenge, which optimizes the allocation and integration of inputs necessary to meet pre-defined objectives. History Project management has been practiced since early civilization. Until 1900 civil engineering projects were generally managed by creative architects and engineers themselves, among those for example Vistruvius (1st century BC), Christopher Wren (16321723) , Thomas Telford (1757-1834) and Isambard Kingdom Brunel (18061859). It was in the 1950s that organizations started to systematically apply project management tools and techniques to complex projects.HR Connect (Pty) Ltd.

As a discipline, Project Management developed from several fields, namely construction, engineering, and defense activity. Two forefathers of project management are Henry Gantt, called the father of planning and control techniques, who is famous for his use of the Gantt chart as a project management tool; and Henri Fayol for his creation of the 5 management functions which form the foundation of the body of knowledge associated with project and program management. Both Gantt and Fayol were students of Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation.

Frederick Winslow Taylor (1856 - 1915) "Father" of the Scientific management & Efficiency Movement

Henry Gantt (18611919), the father of planning and control techniques.

Henri Fayol : The Father of modern operational theory.

At the same time, as project-scheduling models were being developed, technology for project cost estimating, cost management, and engineering economics was evolving, with pioneering work by Hans Lang and others.


The International Project Management Association (IPMA) was founded in Europe in 1967, as a federation of several national project management associations. IPMA maintains its federal structure today and now includes member associations on every continent except Antarctica. Approaches There are a number of approaches to managing project activities including agile, interactive, incremental, and phased approaches. Regardless of the methodology employed, careful consideration must be given to the overall project objectives, timeline, and cost, as well as the roles and responsibilities of all participants and stakeholders. The traditional approach A traditional phased approach identifies a sequence of steps to be completed. In the "traditional approach", we can distinguish 5 components of a project (4 stages plus control) in the development of a project:

Typical development phases/stages of a project

Not all the projects will visit every stage as projects can be terminated before they reach completion. Some projects do not follow a structured planning and/or monitoring stages. Some projects will go through steps 2, 3 and 4 multiple times.HR Connect (Pty) Ltd.

Many industries use variations on these project stages. For example, when working on a brick and mortar design and construction, projects will typically progress through stages like Pre-Planning, Conceptual Design, Schematic Design, Design Development, Construction Drawings (or Contract Documents), and Construction Administration. In projects where requirements have not been finalized, where changes can occur, requirements management is used to develop an accurate and complete definition of the behavior of software that can serve as the basis for software development. While the terms may differ from industry to industry, the actual stages typically follow common steps to problem solving "defining the problem, weighing options, choosing a path, implementation and evaluation."


NOTES_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________HR Connect (Pty) Ltd.

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PROJECT INTEGRATION MANAGEMENT


PROJECT INTEGRATION MANAGEMENT Now that you understand the basics of where project management comes from, you will now get a better understanding of how people Integration management works and the effects thereof. When initiating a project, you always have to plan your activitiesm how they will be handled and who will be responsible for them. This helps ensure that all processes in a project it runs smoothly, the activities in between interlink with what the goal of the project is. During the integration phase, all qualities of deliverables are being included to measure the description of the project. These deliverables will include project charter, project plan and scope statement of the project. Project integration management is primarily concerned with integrating processes to accomplish project objectives. This all looks at the following: Project Plan Development For a project to start-up, it is triggered by an individual who sees a need for the development of something, or decides to take responsibility for a new initiative that might best be run as a project. The trigger may come from business planning, an external driver or identification of a significant problem that cannot be dealt with as a matter of routine. At the end of the development a decision whether or not to move ahead is made. This decision is made in the light of the information gathered during start up and recorded in a Project Brief. In essence, the Project brief says why the project is needed, what it must achieve and who should be involved. There is no set method for conducting start up, in practice it will depend on the size and complexity of the work and whether, for example, some form of feasibility study has been done. By the end of project start-up all interested parties should be satisfied that the following aspects of the project are clearly defined and understood:HR Connect (Pty) Ltd.

The reasons for the project Desired benefits and who will realise them Scope what in and whats out Objectives achievable and measurable (SMART) Background why does this project need to be done and why now? Constraints that must be taken into consideration during the project Assumptions Any known risks Dependencies on other projects/activities/decisions Stakeholders (internal and external) Deliverables/outcomes Estimated timescale Estimates for resources required Lessons learned from similar projects and/or from people who done similar projects.

Without careful planning it is likely that the project will fail to achieve its objectives. In a small project it is possible that one plan may be used to define the entire scope of work and all the resources needed to carry out that work. For larger projects, planning will be carried out at different levels of detail at different times. In all types and sizes of projects, one must be prepared to re-plan in should anything go wrong. Remember that plans are essential for ongoing project control and must be used and kept up to date right through the life of the project.

Plan execution Executing focuses on the processes used to complete the work defined in the project management plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan.HR Connect (Pty) Ltd.

Integrated Change Control Now that youve learnt about project development plans and plan execution, you will understand what integrated change controls are. Integrated change controls, looks at factors that influence changes, set to be beneficial to the project, which determines a change which has occurred and also manages the actual changes when and if they occur. All projects are subject to scope change at some time during their life-cycle. Change control systems, or configuration management, are system designs and effectively manage the change of scope processes. Configuration management is a process of identifying and managing to the deliverables and other work products as they evolve through the project life-cycle. This helps in ensuring that the proposed changes are necessary, appropriate and that the integrity of the system is maintained. This system should establish a framework to monitor, evaluate and approve changes by the designated people before the change is incorporated in the project.



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PROJECT SCOPE MANAGEMENT


PROJECT SCOPE MANAGEMENT The idea of project scope management, is that end result needs to be accomplished to deliver or a product or service it is aimed at. Once all the essentials have been taken care of, work that the project is aimed at will then been in progress. Project scope play a role in the stages set out for the project to continue. During these stages, the shape of the project is given and the main goal or even the deliverables are described. These stages would include the initiation stage, planning stage, organising stage, execution stage and close out. Project scope management is the defining element of the project, it defines its bases and what it is aimed at and if the goal that it is meant for is achievable or not.

The Project scope focuses on the following:

PROJECT SCOPE MANAGEMENT

Scope change c o Initiating Scope planning Scope Definition Scope Verification n t r o l

Initiation Project Initiation is where you create a sound baseline for management of a project by taking current understanding of the what and why, as documented in the Project Brief, and extending it to include a detailed definition of how, when, and by whom in a Project Initiation Document.HR Connect (Pty) Ltd.

The purpose of the PID is to provide the information required by senior management and stakeholders to enable them to commit to the resources and timelines proposed. It is a sort of contract between the Project Manager and SRO/Project Board that defines how the project will be run.

The PID provides a detailed proposition against which success can be measured. To do this the PID builds on the approved Project Brief by defining in detail how the project will be developed and when it will be delivered. It provides a more detailed understanding of the costs and benefits of the project and, in particular, the resources, risks and timelines required for successful delivery.

Scope planning Scope planning is described as the process of developing a written scope statement as the basis for future projects decisions including in particular,, the criteria used to determine if the project or phase has been complete successfully. The scope planning outlines the project philosophy that: Defines the boundary of the project and confirms common understanding of the project scope amongst stakeholders. Forms the basis of agreement between client and contractors by indentifying both the project objective and major deliverables. Is a guide and constraint for the configuration management process influencing change control? During the commissioning phase the scope planning willHR Connect (Pty) Ltd.

help to confirm that the project has been implemented to the required condition.

Scope definition Scope definition is defined as subdividing the major project deliverables into smaller, more manageable components. During this process it will help in implementing the accuracy of the estimate and assign single responsibility to the work that is to be done, this may be included in the Work Break Structure. The scope definition outlines the content of the project, how the project will be approached and explains how it will solve the clients need or problems. Scope definition establishes a method to identify all the items of work that are required to complete the project. The build method outlines how the product will be build, WBS may be utilised in this to provide a subdivision of the scope of work into manageable work packages. Responsibility can be assigned to the work packaged accomplishment.

Scope verification Scope verification is defined as the process of formalising acceptance of the project by the stakeholders. Scope verification can be related to phases of the project life-cycle. The scope of work should be formally approved at the end of each phase. This will be after the feasibility study a concept has been taken care of and also at the designing and development stage of the project before the implementation phase. All changes during implementation phase should be formally approved during the commissioning phase. The controls are essential to establish the required condition before implementation and after implementation, to confirm the required condition has been archived.


Scope change control Any project that has ever been done, must have probable had a scope changes. As the project takes its shape or even develops, it is given as part of learning there will be changes occurring; these changes might be environmental changes or technological changes. Since these changes are nearly inevitable, it is best to prepare to deal with changes rather than be supposed when they occur and try to resist them. In trying to be proactive with these changes, for you to be able to control them you will a clear definition of the project deliverables. Unless the deliverables are clear when the scope baseline of the project is established, it is difficult to know when a change is requested whether it is or not part of the already established project scope. Many conflicts can be avoided by having a clear scope baseline that all of the stakeholders have agreed to. Changes can be coursed by many so many events or variables like government regulations, change in technology, and change in market place an error or omission of what was defined in the planning stage or it can even be by the clients exceptions. For a good basis for good change management systems starts with a good establishment of the scope baseline.


ACTIVITY 1 1. 2. Nora is trying to start the project and needs to plan accordingly. that is Fred doing to What are the stages that needed to be followed for this software project to be

hinder the scope planning stage of the project? successful?



PROJECT TIME MANAGEMENT

Activity Definition Activity definition refers to the process of parsing a project into a number of individual tasks which must be completed before the deliverables can be considered completed. Activity definitions rely on a number of specific input processes. These include enterprise environmental factors, organizational process assets, the project scope statement, the work breakdown structure, the WBS dictionary, the project management plan (which consists of the project scope management plan and the schedule management plan). Through use of these inputs, the activities that will need to ultimately be completed in order to compete all of the project objectives can be readily defined, and the activity definition can be further accomplished through the utilization of a number of tools and techniques including decomposition, templates, rolling wave planning, expert judgment, and planning components. The four ultimate outputs of the activity definition process are the activity list, the resulting activity attributes, all requested changes, and any milestones. Activity Sequencing The term activity sequencing refers within the context of project management to a dual process. Initially, activity sequencing involves a specific process of the identification of dependencies among a series of schedule activities. The next step of activity sequencing involves the documentation of the said series of dependencies among those schedule activities. More specifically, activity sequencing involves the chronicling the dependencies among these schedule activities and putting them into a logical order. Activity sequencing also involves a careful examination of the relationships between schedule activities and their precedence relationships, which is also provides a tangible benefit to the development of an accurate schedule. Some techniques of activity sequencing that are particularly effective include precedence diagramming method, arrow diagramming method, schedule network templates, dependency determination, and the application of leads and lags. Some outputs from activity sequencing include project network schedule diagrams, activity list updates; activity attributes updates, and requested changes.HR Connect (Pty) Ltd.

Activity Duration Estimating Activity duration is a noun that represents the specific quantity of time that exists between the designated start time and end time of a scheduled activity. For further elaboration on this definition, please see the definitions for actual duration, original duration, and remaining duration. Activity duration should be carefully measured from the start date to the end date and can be calculated in whatever calendar units are appropriate given the anticipated timeframe of the project, such as days, weeks, months, etc. The activity duration can be established when a project is conceived, or it can be established when a project is kicked off, and is typically fluid in nature, and able to be modified if the situation merits and with the agreement of all parties. Furthermore, the sum total of the activity duration can also be broken up into smaller parts in the establishment of project milestones, points at which either the current state of the project will be assessed, or potentially sum or all deliverables will be submitted in either final or draft form. Activity duration estimating represents the act of quantifying the amount of time that it is anticipated the activity will take to complete. This phase of the project, that which consists of the estimating of the amount of time needed to complete all individual schedule activities, typically and traditionally takes place before a project is kicked off, during the conception phase, however, it is possible for the actual activity duration estimating period to take place later, perhaps close to or even slightly after the project has officially kicked off, however, even in those cases a draft or preliminary estimation has typically been made. Estimations can be made in any calendar unit that seems appropriate, such as months, weeks, days, etc., the entirety of the activity duration estimate can be further broken down into subparts or milestones at which certain elements, or deliverables, of the activity are to have been completed in final or draft form. Schedule Development Over the course of a given project, often times, it is up to the project management team and or the project management team leader to make a determination that the previously determined and derived schedule may need to be modified and or tweaked in one way orHR Connect (Pty) Ltd.

another in order to accommodate one of more schedule events. This may be because a particular event is running behind schedule or in other cases because a succeeding events timing has to e changed one way or another. However, in order to make any changes, it is important that a comprehensive analysis be undertaken by the project management team and or project management team leader as to the schedule activity sequences, schedule activity resource requirements, schedule activity durations, and any particular schedule restraints, that must be factored in not only when making the original schedule, but also in the act of making any subsequent changes. This is referred to as the process of schedule development. The project schedule is a fairly broad and all encompassing concept that while seemingly easy to grasp, must truly be mastered in order for all members of the project staff, from the project management team all the way up to the project management team leader to effectively manage the project in a capable manner from start to finish. The project schedule typically will include all elements of the project from the pre-planning stages of the project through all ongoing project processes that may take place during the active project period, to any and all project related process that may occur at the conclusion and or closing stages of the project. The project schedule, as a project related input/output mechanism, typically keeps careful track of any and all planned dates for the performance of particular schedule activities, as well as any predetermined dates that are expected to be met and followed up on in regards to the implementation of any particular project milestones. Schedule Control Over the course of a given project, often times, it is up to the project management team and or the project management team leader to make a determination that the previously determined and derived schedule may need to be modified and or tweaked in one way or another in order to accommodate one of more schedule events. This may be because a particular event is running behind schedule or in other cases because a succeeding events timing has to e changed one way or another. However, it is important to understand and keep in mind that changes cannot be made in a haphazard and reckless manner. Careful tabs must be kept on all of them to assure that control is maintained by those in charge,HR Connect (Pty) Ltd.

ACTIVITY 2 Develop a Gantt chart for a current project that you are currently working on within your company. Then present to the class your findings


201 0such as the project management team and or the project management team leader. The actual process of maintaining control of the changes that may occur to a schedule is in fact known as schedule control.

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PROJECT COST MANAGEMENT

PROJECT COST MANAGEMENT Rad Parvis F. (2002) explains Project Cost Management is defined as a method which uses technology to measure the cost and productivity through the full life cycle of enterprise level projects, encompassing specific functions that include estimating, job controls, field data collection, scheduling, account and design. As the project continues, job control uses data from the estimate with the information reported from field to measure cost and production in the project. From Project initiation to the completion on the project, project cost management has an objective to simplify and cheapen the experience of the project.

Resource Planning The term human resource planning refers specifically to a project management process that involves the careful and deliberate identification, categorization, and ultimately, documentation of the entirety of all project roles assigned to all individual members of the project work team. Included among this documentation process is a careful delineation of all of the individual project team members personal responsibilities in regards to management of the project, as well as all the specific reporting relationships among all members of the project team. One additional essential component of the project management process of human resource planning is a careful and thoroughly executed encapsulation of all members of the project team through a complete project staffing management plan. This can be done through the use of either a formally written document, which can include a detailed graphically formatted chart, or it can be in the form of a less formalized document of sorts. Activity resource estimating is a process in which the project team carefully compiles a thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six inputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the requiredHR Connect (Pty) Ltd.

activity resources. Those tools include expert judgment, a complete alternatives analysis, the use of published estimating data, project management software, and the use of bottomup estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakdown structure, and the development of a resource calendar. The successful utilization of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure. Cost Estimating When creating a budget for a job, project management must be able to engage properly in the process of cost estimating. This is a calculated projection of the cost for the materials required by the project. The materials considered in cost estimating can be any resources required for the job such as raw materials or employee wages. It is critical for a true approximation of the production costs that those in project management take into account all resources which might be used. Neglecting certain materials could result in cost estimating which is too low. This increases the likelihood that the budget will be exceeded. Accurate cost estimating by project management needs to be done often when creating a bid for the project. Too high of an estimate, and the bid could be lost to another company. A bid which is falsely low will result in unanticipated costs the client will have to pay, and that could damage the chances of future business with that customer. Knowing the true price of the project is important for anyone in management in order to create a budget for the job and to make bids.

Cost Budgeting The idea of managing a project can seem like a daunting task, however, provided with the right tools, any project can achieve success. When undertaking any type of project management, there must be a working set of guidelines and objectives that must beHR Connect (Pty) Ltd.

followed, in order to guarantee success for that particular project. An essential element when entering into any type of project management is cost budgeting. To create an effective cost budgeting plan, a total budget for the entire project must first be established. To achieve this, each area of the project must be analyzed and given a particular cost estimate. Once that is done, the total sum of cost assessments, whether those costs are in individual projects or in work packages, are combined to establish a certain parameter to provide a working guideline for the budget. These guidelines are set in place so that the allotted costs are divvied up amongst the appropriate project needs. This will ensure that the budget goals are being accurately met. The process of cost budgeting is a simple, yet necessary process of any successful type of project management. Cost control When it comes to project management, whether or not the management team exercises cost control can make or break a projects budget. Cost control can best be achieved by setting up a budget which is consistent with plans for actual spending. Although it might sometimes be necessary to make adjustments, it is important to adhere to the budget as closely as possible during the project management process. Another important aspect of cost control involves collecting actual costs and regularly creating reports for those expenditures. In addition, it is essential to accurately report and regularly assess progress throughout all phases of the project. It is also advisable to keep a close eye on cost trends as well as anticipating costs of work that still remains to be completed. Once determined these figures should be closely compared to estimates for final completion of the project. Cost variances or approved budget changes must also be accounted for to maintain proper cost control. Any discrepancies that are not within the bounds of budget constraints should be promptly brought to the attention of the project management team.



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PROJECT QUALITY MANAGEMENT


PROJECT QUALITY MANAGEMENT

Quality Planning In terms of project management, the concept of quality refers specifically to the degree or amount toward which an inherent or embedded number of traits fulfills a number of predetermined requirements that have been deemed necessary. Quality can also be defined through the use of a interpretation to refer to the non-inferiority, superiority or usefulness of a given item or concept. Across many industries, manufacturing for one, but also applicable in the area of project management, it is commonly stated that quality drives productivity. Indeed, often times it is obvious that improvements in productivity do inherently lead to greater revenues, opportunities for employment, and technological advances. The concept of quality can also refer specifically to a finished part or product, regardless of where that part or product currently stands in the process. Inspection, which is usually being referred to when the concept of quality insurance is bandied about, is of a secondary preference to that of process control because process control refers to maintaining the quality of the ongoing process, rather than attempting to assess the quality of the end product. It is very important to make sure during the close out of you project have not delivered what is expected but the quality of the product is also taken care of. Planning for quality requires attention to details. The goal of quality is to ensure that the output of the project will perform up to what it is suppose or even developed for. In planning the quality dimensions, include specifications for the quality and types of material to be used, the performance standards to be met and the material to be used, the performance standards to be met and the means of verifying quality such as testing and inspection.


Quality Assurance Throughout all of industry, one constant significant element exists for companies to ponder over, and that is the act of making sure that each and every item of note is done or produced according to a specific and rigid standard that has been predefined. This is the act of quality assurance. In terms of the successful management of projects, quality assurance is quite significant. Performing quality assurance (which is also known by the two letter anagram QA), is an essential par of the project management process. During the process of quality assurance, the project management team and or project management team leader undergoes the process of applying the previously planned and systemic quality related activities (some examples of these are the concept of auditing or peer review), for the purpose of making sure that the current scenario fits within those parameters, and undertakes efforts to employ all of the previously designated processes in order to actually meet those parameters. Quality Control Control refers to a specific technique that involves making measured and deliberate comparisons of the actual resultant performance with what was expected to be the planned performance. Control also refers to a systematic method of analyzing the variances that develop as a process unfolds. Control can also refer to the technique of assessing the trends that may develop during a specific activity or task or that begin to unfold during the broader time frame of the entirety or a project, as well as a thorough evaluation of all possible alternatives and a determination as to what corrective action should be taken to help turn a project back into a direction that is more conducive to the attainment of whatever ultimate goals and results are expected and/or anticipated. Control can also refer to a fixed point during the course of variant activities, such as utilization of the same type of machines to develop different types of products. Control limits refer to the wide area of variation that can exist when plotting the actual data that has been charted. The control limits, more specifically, refer to the three standard deviations on either side of the mean (this mean is also known as the centerline), of aHR Connect (Pty) Ltd.

normal distribution of data that has been laid out, or plotted, on a control chart. These control limits will typically reflect an expected variation in the data. These expectations can be derived from past experiences, meaning, the deviations that have occurred when conducting similar projects of specific work tasks within then, or they can be derived from nothing more than careful consideration and discussion among the team. Regardless, it is important to utilize these control limits as it better will prepare the control team for possible variations and make them easier to deal with and compensate for. It is important to develop control limits at the outset of a project and/or work task.



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PROJECT HR MANAGEMENT


PROJECT HR MANAGEMENT Think of a Human Resource department as the nucleus of a business. This is where people are hired, interviewed and paid. This is where staff find answers to personnel questions and the way forward in regards to human capital. Project HR Management is the process whereby a business will make the most effective use of the a its people involved with a specific project. This may include all the project stakeholders from customers, sponsors, individual contributors etc. This is divided within the following sections:

Organizational Planning This is a process whereby an organization will identify, document, and assign project roles, responsibilities, and reporting relationships. This may be done to individuals or to groups either apart of the company or externally. Majority of organizational planning on projects is begun on the earliest project phases. However, the results of this process should be reviewed regularly throughout the project to ensure continued applicability. Organizational planning is often tightly linked with Project Communication planning since the projects organizational structure will have a major effect on the projects communications requirements

Staff Acquisition This is whereby the business obtains the necessary human resources needed for a particular project, whether individuals or groups. Depending on the project Many times, the best resources may not be available. Thus it is the project management teams responsibility to make sure that sufficient human resources are allocated to meet project requirements.

Team Development Team development is a process of developing individuals or groups in order to enhance necessary skills for project performance. This involves the ability of relevant stakeholders,HR Connect (Pty) Ltd.

as well as team. Individual development (both managerial and technical) is the foundation necessary to develop a team. This is critical to the projects ability to meet its objectives. Team development on a project is often complicated when individual team members are accountable to both a functional manager and to the project manager so necessary management must take place in order to critical assess a project. This is usually the responsibility of a Project Manager and is generally the responsibility of the project manager. This should be done throughout the project As a brief summary, the below table illustrates the various components of organisational planning, staff acquisition and team development and how it would effect a project in regards what needs to be inputted, tools and techniques and their output.. PROJECT HUMAN RESOURCE MANAGEMENT ORGANIZATIONAL STAFF ACQUISITION TEAM DEVELOPMENT PLANNING Inputs Project interfaces Staffing requirements Constraints Tools and Techniques Templates Human resource practices Organizational theory Stakeholder analysis Outputs Role and responsibility assignments Staffing management plan Organization chart Supporting detail 1. Inputs Staffing management plan Staffing pool description Recruitment practices Tools and Techniques Negotiations Pre-assignment Procurement Outputs Project staff assigned Project team directory 1. Inputs Project staff Project plan Staffing management plan Performance reports External feedback 2. Tools and Techniques Team-building activities General management skills Reward and recognition systems Collocation Training 3. Outputs Performance improvements Input to performance appraisals

2. 3.

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PROJECT COMMUNICATION MANAGEMENT


PROJECT COMMUNICATION MANAGEMENT For a project to succeed there is a continuous need for communication, to issue instructions, solve problems, make decisions, resolve conflicts and keep everyone supplied with the information they may need. The PMBOK defines project communication management as the process required ensuring timely and appropriate generation, collection, dissemination, storage and ultimately disposition (disposal) of project information. It provides the critical links among people, ideas and information that are necessary for successes. Effective communication is a critical success factor for any project. Communication ensures that stakeholders are always informed Project communication start at the planning phases While communication is always mentioned in the plan, some projects require a separate communication plan

Means of communication: Personal interaction Documentation and sign-offs Meetings and minutes Email or memos Reports: status and progress Forecasting The project notebook or diary

Something important to note is that communication between two people is fairly simple. However add another person and you increase the complexity by five.


Communication Planning A communication plan prescribes the methods that will be used to gather information. It help pulls the project together. The project manager is responsible for not only establishing the project organisational structure, but to develop the project communication plan and lines of communication. It indicates the documentation and how it is collected and the filing structure. It details the distribution structure, describes the information to be distributed. Outlines production schedules for watch type of communication. Describes what methods will be used to assess information between scheduled communications. It will mainly help outline the following: Who ( sender and receiver responsibility and authority, lines of communication) What (scope of communication and format) How (email, document, telephone, meeting, presentation) When (schedule) Feedback Filing

Information Distribution The projects information is the lifeblood of the communication plan, projects plan and control system. This should be applied to all lines of communication. For the flow of information to be effective, all parties must be aware that they are part of a link, and if broken, it will dampen the process. The quality of information will directly link to the weakest link.

Performance Reporting Performance reporting or project reporting is a process whereby project data is collected, processed and then reported. This can be done in various ways such as the structure, frequency and circulation of reports, which must be established as early as the start upHR Connect (Pty) Ltd.

phase of the project. This is used to assist with problem solving and decision making at various levels of management so to ensure set goals and objectives are met. The following are some of the regular reports at your disposal: 1. Status reports: This report is merely a report to quantify the position of a project. In

other words to see how it is going, within the process. It may focus on specific areas such as time, cost, and quality of the project. Example of Status report: Activity 101 Description Foundation Status Material ordered work starts on Tuesday

2.

Variance reports: This report focuses on what has actual occurred and what has

been planned for the project and the difference between the two. However it important to note that it does not look at the parameters when performing this calculation. To achieve this, the variance must be put into a percentage of the planned value. Example of a Budget Variance Report: Activity 100 200 Original Budget R10 000 R15 000 Revised Budget R12 000 R13 500 Variance R2 000 (R1 500)


Example of a Schedule Variance Report: Activity Original Budget 100 200 3. R1 000 000 R 400 000 Revised Budget R1 010 000 R 420 000 Schedule Variance R10 000 R20 000 Schedule Variance % 1% 5%

Trend Reports: Using historical data to project the direction of the project so that the

project manager can get a better feel of what may occur. This is very different to the status report since the status report will tell the manager where the project is, but not where it is going. 4. Earned Value Reports: This report integrates the variable parameters of cost with

time or man-hours with time. This enables the planner to model the various parameters more realistically. Example of Earner Value report


5.

Exception Reports: To make the project manager aware of an occurrence or event

which may be outside of a his/her control. This maybe set out by the project manager as a guideline for the planner whereby he is ably to filter out important information 6. Monthly Reports: This is important for a long project and assists the project manager

in establishing an excellent forum to quantify what is happening on the project and report it to management and stakeholders. This would entail a round up of the weekly progress meetings, any other special meetings and overall picture. An example, highlight specific trends or variance, identify major events within that month so that management and stakeholders can plan ahead. Having structured reports helps include important information that a project team may require. It should be quick, and easy to read, since a project is not about reporting but to make use at any given time.

Administrative Closure This is the process of preparation of closure documents and process deliverables. This includes the release and redistribution of the Project Resources. The objective to make sure that the project is accepted, approved and closed. The process will include: The Project Manager ensures that the project is approved and accepted by the stakeholders. Assess the success criteria that was identified during the planning stages and determine if criteria was met. All documentation and records, physical or electronic, need to be systematically reviewed, organized and archived. The Project Manager gives performance feedback to team members. The Project Manager releases resources.HR Connect (Pty) Ltd.

Guidelines In the absence of a formalized project close out procedure, some projects (or project phases) risk "never ending" and the differences between project work and ongoing operations and maintenance get blurred. Evaluate the product/service's conformance and satisfaction of the requirements. This will help in obtaining project and product acceptance from the customer. Identify and highlight any Lessons Learned and best practices that could be useful to other project teams. Document and communicate Lessons Learned and best practices. Gather data required for updating or adding to your organization's metrics. Metrics can include such information as: o o o Number of objects, classes, programs, modules and level of complexity Skill-set required to complete different task types Level of effort required for different task types by resource type

All the metrics and documentation needs to be reviewed by someone external to the project. This needs to be archived in the central repository.



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PROJECT RISK MANAGEMENT


PROJECT RISK MANAGEMENT Project Risk management is defined by PMBOK as the systematic processes of identifying, analysing and responding to project risk(throughout the project lifecycle). This means maximising results of positive events and minimising the consequences of adverse events. The APM book defines risk as factors that may cause a failure to meet the projects objectives Project risk management strives to reduce the chances of failure. So in order for this occur, it is important that an outline of project risk is understood, as well as the methodology for reducing risk is done at an acceptably level while identifying potential opportunities as well. The reason why this is such an important aspect of project management is for the fact that many business and projects tend to only meet business projects half way or partially. This emphasises the need for a proper risk assessment while a project is initiated, ongoing and during control of the project lifecycle. Some helpful suggestions when tackling risk within a project: Ensure commitment and involvement from management and users Use smaller project teams with a high level of skill Limit the number of new things within a project e.g. new technology Frequent communication to all stakeholders On going risk workshops that will include all the relevant stakeholders

There are a few other important things to take into consideration when tackling project risk. Firstly, internal and external risk. Internal risk entails things that can be controlled or influenced by the project team, where as external risk are things beyond the control or influence of the project team


Risk Planning The risk management plan is a formal approach to the process as opposed to an intuitive approach and documents how the project team will address risks within a project. This process will include the following: Define objectives by utilizing the work breakdown structure (WBS), you are able to identify activities within project to define goals and objects of the project. This forms basis. Identify the risk uncertainty or constraint that may hinder the projects success, which will impact the objective of the project Quantify risk perform risk evaluation and assess level of risk and how it will effect the project Develop a response how will the project team react to risk, which could be an arrange of things or combination i.e. eliminate, deflect, mitigate, accept etc Risk control by having a risk control system, you are able to implement the best course of action for any particular risk that may occur. This could be training workshops to project team, communication to stakeholders etc. This should occur on a continual basis to constantly assess risks within the project.

Risk Identification Risk management is the hardest part, but most important part of project risk management process. It is a systematic process to ensure nothing is overlooked. The reason is clear, because without identifying the risk, it will be excluded from the entire project and further analysis would be omitted from the project that could be crucial to the well being of a set particular project. Another important factor to realise is that risk identification is not a oneHR Connect (Pty) Ltd.

time even but continuous, since a project develops and evolves and without recognizing it during the whole process, it too can hinder a successful outcome. After objectives have been listed, additional aspects should be added. They are cause and impact scenarios. Cause of impact is if a particular happens, what impact will it have on the objectives; Impact caused by is what could cause an undesirable impact, or failure? Special techniques used to assist in identifying risk, include: Analyising historical data and records Safety reports Structured questionnaires and interviews Brainstorming Flow chart Systems analysis Scenario analysis Structured checklist

Having the necessary experience in life will help to identify risk within a project. So greater awareness may produce better outcomes. Looking at others that may have paved the way forward is also key, so identify risks involved. Finally looking at he risks and seeing where opportunity can be developed. Many great projects manage to have great success, if this occurs.

Qualitative Risk Analysis This is when a relative measure of risk or asset value based on ranking or separation into descriptive categories such as low, medium, high; not important, important, very important; or on a scale from 1 to 10 is given to a particular project. It is designed for the purpose of enhancing one's awareness of potential problems, and can assist one in analyzing these risks.HR Connect (Pty) Ltd.

Quantitative Risk Analysis Having identified the range of possible risk, it is important to establish how much risk there maybe. This is to assess where the main concerns of risk are and what resources are at the project teams disposal. This is when a risk priority table should be introduced to see what should be addressed first, and in which order. Looking at impact of risk, frequency of risk and probability of risk is all key aspects when addressing risk management.

Risk Response Planning

After identifying, quantifying and prioritising risk, the next important step is developing an appropriate response. After the assessment of risk, establishing level of risk and what is required criteria, there are various range of responses that can be used during the planning phase: Eliminate risk This is a process whereby the project team will look at all angles to avoid risk in its entirety. This is done by either removing the cause, or an alternative cause of action. The best way to deal with this is during the concept and designing phase because cost is low and influence is high.


Mitigate risk this involves reducing the risks probability and impact on a project. Various methods could be used to achieve this. That includes using proven technology, developing prototypes, models, simulations etc.

Deflect risk this is away of transferring part or all of risk to another party, whether through contracting, retention, bonding and insurance Accept risk (with contingency plan) accepting risk should be a last resort, in that it can heavily impact the project. But if required, certain contingency plans should be set place to avoid large repercussions.

Turn risk into an opportunity

All these response cost money, so a cost benefit analysis should be developed to assist in establishing a more cost effective solution.

Risk Monitoring and Control Risk Monitoring and Control function is all about implementation of a well thought through risk management plan. This is when the plan is communicated to all necessary stakeholders, and followed up with training if need be. It should be monitored on a continual basis and updated where necessary so that all parties can learn from the process. This process may cover the following; change in the scope of work, changes in the building methods, changes in the team members, changes in the suppliers etc This may be included in a weekly progress report meeting, so to stimulate discussion, and best course of action




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PROJECT PROCUREMENT MANAGEMENT


PROJECT PROCUREMENT MANAGEMENT The PMBOK defines procurement management as ..the process required to acquire goods and services APM bok defines procurement as the process of acquiring new services or products.. So it is deals with acquiring goods and services necessary for a project. This may include things such as a drawings, material, equipment or professional services from a number of vendors or suppliers etc. The procurement schedule will take place after the Gantt chart has been drawn up. The critical path or long lead time items must be carefully look at when embarking on the procurement schedule. As this may delay the project.

Procurement Planning Procurement planning is viewed from a buyers perspective to identify what products and services are best procured outside the project organisation. This strategy would include the following: What must be procured? How much to procure? When is it required? When to procure? How to procure? (contract)

This will be established by the Buy-or-make principle or decision making process.


Solicitation Planning Solicitation planning is defined as identifying targets for quotes, bids or proposals. Within procurement management it is the process of preparing the necessary documentation to support solicitation. This would include a procurement management plan, and other planning methods. Here a set standard form and expert judgement will be used, as well as a evaluation criteria to rate proposals, which may be subjective or objective.

Solicitation

This is the process of obtaining information (bids and proposals) from prospective sellers on how project needs can be met. Most of the actual effort in this process is expended by the prospective sellers, normally at little or no cost to the project. This will include procurement documents and qualified seller lists, have bidders conferences and advertising, as well as Proposals prepared by the sellers explaining how the seller can provide the requested product or service. Contract Administration

The process of ensuring that the seller's performance meets contractual requirements. This includes the contract, work results, change requests, and seller invoices. This is when project team looks at the contract change control system, performance reporting, and payment system and the necessary correspondence, contract changes, and payment requests are made.


Contract Close-out The process of completing and settling the contract including any resolution of open items. This includes contract documentation, performing the necessary procurement audits, contract file and formal acceptance and closure.

ACTIVITY 4: You are required to prepare, as a group of 4- 6 students, a tutorial/practical document of a project, developed from the scratch. It must be a new concept and unique, so think creatively. It must feature all the related aspects such as tools, time frames, budgets, factors that could possibly influence your project and who the relevant role players are. The purpose is to propose your project to t he decision makers who could decide to buy into your project or not. This will be presented to the class for at least 20 minutes in a given time slot. You must make use of PowerPoint, Flipcharts or overheads. You are allowed props, dress ups, posters etc. You


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BIBLIOGRAPHY


BIBLIOGRAPHY Burke, R, 2006, Project Management: Planning and Control Techniques; 5th edition, Cape Town, Blue Weaver Marketing and Distribution.

http://en.wikipedia.org/wiki/Project_management http://en.wikipedia.org/wiki/File:Project_development_stages http://www.project-management-knowledge.com/definitions/c/cost-vriance-cv/ www.pmi.org www.pmisa.org.za www.4pm.com www.pmboulevard.com www.eligoldratt.com www.informit.com http://www.projectconnections.com/templates/pmbok/knowledgeRad, Parvis F. (2002) Project Esimating and Cost Management http://www.anticlue.net/archives/000737.htm http://www.google.co.za/imgres? imgurl=http://www.zgraggenassociates.net/sitebuildercontent/sitebuilderpictures/im age002.gif&imgrefurl=http://www.zgraggenassociates.net/id2.html&usg=__x_iF5pBwgB2eF8ewmL WudQDvy1c=&h=696&w=828&sz=30&hl=en&start=9 &zoom=1&um=1&itbs=1&tbnid=BgOD_15ffUyn7M:&t bnh=121&tbnw=144&prev=/images%3Fq%3DProject %2BIntegration%2BManagement%26um%3D1%26hl %3Den%26sa%3DN%26prmdo%3D1%26tbs%3Disch:1 http://iterazia.files.wordpress.com/2010/04/projectscope-management.jpg http://en.wikipedia.org/wiki/Project_cost_management

area/project-human-resource-mangement.html. Templates by PMBOK

http://cio.osu.edu/projects/framework/PDF_files/C_Admn_Clos _1.00.pdf Ohio State UniversityOffice of the CIO Project Management FrameworkHR Connect (Pty) Ltd.

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HR Connect CC HR Connect (Pty) Ltd. 31 August 2010