PROJECT MANAGEMENT - BASIC CONCEPT AND PRINCIPLES

One person with a belief is equal to a force of 99 who have only interests.

(PLATO (427-347 BC) Greek philosopher, student of SOCRATES)

It is now widely recognized and accepted by most managers that continual change is
part of the process of maintaining progress in remaining competitive. That is because in the
global village there are changing patterns of demand, for both products and services, driven
by advancements in technology and telecommunication networks systems. The introduction
of desk-top and laptop computers, computer aided design (CAD) and computer aided
manufacturing (CAM) means that products and services can be delivered to the market place
much quicker and that fact demands, necessarily, concentration of effort to achieve results.
This has led to the gradual and increasing exportation of many manufacturing jobs from the
more advanced nations to emerging nations forced by a consumer-driven desire for quality
goods at increasingly competitive prices.
Any organization whether it is in the public or private sector, in the manufacturing
sector or a service industry and whether small, medium or large has tasks to plan and to
progress and complete in order to achieve basic corporate objectives. This is, usually,
defined as strategy.
Any changes to the management organization or structure, the introduction of new
equipment, changes in working procedures or procedures, changes to a building or utility
service or, investment in research and development that require a start date, a period of
installation and introduction and a completion date is, usually, referred to as a Project.
A project may be defined, then, as any effort for which human, material and other
resources are organized and controlled in order to undertake and complete a programme of
work, to a given specification or specifications, to be completed within a stated timescale and
financial criteria and which is designed to provide a beneficial change. In the first instance it is
imperative to determine the objective, establish the chain of command, I use that phrase
because of my naval background, clarify the methods and means of communication to share
information, choose the people who will form the project management team and then
delegate as necessary to those with specialist skills and knowledge.
Therefore, a project can be something as complex as involvement in space
exploration, building a battleship, constructing a bridge over or boring a tunnel under a large
expanse of water, delivering training courses, designing and building a prototype sports car,
installing a new computer system or building a motorway. Or, it can be something as simple
as planning to decorate a room your house.
Part of the process of tracking progress, more especially in a large-scale project, is to
break it down into component sections that can be more easily managed by a sub-project
manager. For example, input and resources from other areas, designing and manufacturing
or building component parts, the provision of equipment, the installation of wiring, and
programme or section assembly.
A project may be specifically designed to generate extra income through, for
example, increasing market research and then increasing marketing expenditure to promote
products or services. More often than not projects tend to mean the introduction and
implementation of new equipment or systems to improve procedures, productivity and output.
The need to research new ideas in the drive to achieve improved or increased levels
of customization, whilst maintaining a degree of standardization of product or service, means
companies will increasingly have to address projects that can cut across internal divisions.
That will not be a problem provided that there is willingness and a commitment to succeed.

Therefore, before proceeding with any planned programme of change, for that is what
any new project is, a member of the senior executive management should be nominated as
the project sponsor. The reason for establishing a project team, in the first instance, is to
discuss and determine the objective or objectives, to assess the viability of introducing new
equipment, to determine the likely timescale for implementation and to reasonably assess
any risks involved. The reason for determining and agreeing operational, technical and
financial requirements is so that your organization has some control over the end product and
is not forced down the route of accepting whatever a particular equipment provider is able to
supply.
A primary reason for not being able to assess or measure risk to a project is more
often than not a result of poor planning and unclear objectives. Increasingly, because of the
higher profile of ecological and environmental issues, well they should be achieving a higher
profile, companies and organizations are likely to insist on the preparation of an
Environmental Impact Analysis (EIA) report.
In addition, and particularly in the case of a project introducing new equipment, it is
necessary to identify any training courses or programmes required for personnel who will
operate the machinery or system, any on-going technical or advisory support, and to assess
for how long the support might be necessary and the likely costs involved. The
implementation of any project should also address and include requirements for and
definitions of availability, reliability and maintainability (ARM) over the required life cycle of
any equipment or systems.
To ensure that a project is completed to time, and more importantly to cost,
responsibility for defining the overall parameters, for liaison with equipment providers and
sub-contracting organizations, for pursuing deadlines for the provision and installation of
equipment and systems, and for providing senior management with progress reports,
responsibility and accountability is allocated to a Project Manager.
The first task of the Project Manager is to produce a Project Management Plan based
on the Business Plan. This should include the project definition, an assessment of costs,
resources and timescale, and an appreciation of any logistical and technical constraints and
advise senior management on the optimum course or courses of action. The most important
decision to be addressed is whether or not to proceed with the project in the first place.
A Project Manager is someone who should have sufficient technical knowledge to
understand the area of work and general administrative and management knowledge and
experience. In addition, he should have experience of project tools and the ability to manage,
co-ordinate and motivate a cross-section of people from the traditional areas of expertise, for
example, operations, engineering, marketing and finance, under what is normally referred to
as a matrix management structure.
The selection and development of the team members is also important for no other
reason than taking on new areas of activity and responsibility demands enthusiasm,
commitment, motivation, flexibility and a willingness to think laterally.
Invariably, the first few meetings of the project planning team is likely to inform you,
as Project Manager, that you cannot introduce such an equipment or such a system within
the required timescale and cost. Further, despite pre-planning, the allocation of resources,
the concentration of effort and even the willingness of people to co-operate, so many
projects, and information technology (IT) ones in particular, consistently fail to deliver on time,
to performance criteria and to cost.
Some reasons why projects fail to achieve expectations or criteria include poor
communications, internally and externally, unclear or unattainable objectives, a lack of
financial and human resources and effort, a lack of understanding, professionalism and
determination and poor planning and control methods. Worse, senior management does not
like being told of delays and cost overruns.

If that is the case, the immediate question must be why? The answer would appear
to be, I suggest, that projects are dealt with as independent programmes and treated as
individual areas of responsibility and not as part of an overall company wide programme of
development and improvement for which senior management has ultimate responsibility for
its success.
The main areas of Project Management to consider and understand are that:
a.
b.
c.
d.
e.
f.
g.

Projects tend to be unique.

Projects must have commitment and support from an appropriate level of
management depending on importance, complexity and cost.
Projects, if they are to succeed, must be given a firm start date and a finish
date and, to make it easier to chart progress and milestone dates.
Projects can be affected by outside influences and hold-ups. Try as you may
you will not always have total control over input, progress and deadlines.
Projects are managed and controlled by temporary teams or groups who
come together to complete a task.
All Projects carry an amount of risk, or risks, that has to be assessed.
Many Projects overrun for a number of reasons. Your job, as a Project
Manager is to make every effort to minimise delays and disruptions by
exercising planning, monitoring and control.

This article is just a short introduction to the basic concept and principles of Project
Management and is not a guide. There are many published books on this subject and a
variety of available courses but if you require further information and much clearer guidance it
can be found in British Standard BS 6079:2000 Part 1:2002; Part 2:2000 covers general
vocabulary and Parts 3 and 4 cover, respectively, business related project risk and project
management in the construction industry. The subject of quality in Project Management is
covered in the International Standard BS ISO 10006:1997: Quality management - Guidelines
to quality in project management
(1500 words)
Ken Armitage
2000