BM 404 Project Management Module

Presented by
Dr Kudakwashe Zvitambo
Email: zvitambok@staff.msu.ac.zw
Cell: 00263719365360

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Introduction

Henry Gantt is the forefather of Project Management. The discipline becomes prominent in
the 1950s. Project Management developed from several fields of application including
Construction, Mechanical Engineering, and Military Project etc.

This module covers the following units:

Unit One: Defining Project Management and Project; characteristics of a project; project life
cycle; checklist for preparation of project reports

Unit Two: Project Organisational structure; Hierarchical structure; matrix structure; project
steering committee; project sponsor; project manager; project team; linear responsibility chart
and project work break down structure

Unit Three: Project documentation; statement of requirements; stakeholder list; project brief;
scope of work statement; and risk assessment/management

Unit Four: Project Planning; purpose of planning; use of logic diagrams/network planning
diagrams (PERT; CPM); three time estimate approach; project work breakdown structure;
and developing project scheduling

Unit Five: Project Launching; establishing key stage work plans; establishing milestone
scheduling/bar charts; identifying critical success factor of a project; and project launch
meetings

Unit Six: Use of NPV; IRR and Payback techniques to evaluate projects

Unit Seven: Monitoring and Controlling Projects: Project control system and system design;
use of bar charts time scheduling (Gantt chart); cost control measures; project status reports;
and good time management and review of risks.

Unit Eight: People problems and role of project managers; qualities of an effective project
manager; managing stakeholders; project and conflicts; and projects and team work.

Unit Nine: use of computer in project

Unit Ten: Closing and evaluating and appraising projects

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 PART ONE

Overview of project Management

1.1. WHAT IS AN INVESTMENT?

 It is the current commitment of dollars for a period of time in order to derive future

payments that will compensate the investor for

1. The time the funds are committed

2. The expected rate of inflation

3. The uncertainty of the future payments.

4. Opportunity cost

1.2. WHO IS AN INVESTOR?

Investor can be an individual, a government, a pension fund or corporation. The

investor is trading a known dollar amount today for some expected future stream of

payments that will be greater than the current outlay.

- Investors invest to earn a rate of return, which compensates for the

time, the expected rate of inflation and the uncertainty of return.

1.3. Investment choices are a function of an investor’s risk appetite.

Factors like

 Inflation rate, interest rate

 Financial stability

 Political – country risk

 Legal and regulatory consensus

 Liquidity needs and time horizon

 Tax concerns

 Time horizon – short term cash (liquid)

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  Tax concerns – taxable income (VAT)

 Unique needs + personal preferences

 Critical skills

 Infrastructure

1.4. Organisations/institutions that promote development:

 Zimbabwe Investment Centre (ZIC)

 Infrastructure Development Bank of Zimbabwe (IDBZ)

 Small Enterprises Development Corporation (SEDCO)

 Industrial Development Corporation of Zimbabwe (IDC)

 Ministry of Small and Medium Enterprise (SMES)

 Ministry of Youth and Gender (MYG)

 Welfare Organizations (NGO)

-What are the functions?

-What are the objectives?

-What is the structure?

-What are the rules and regulations for the project requirements?

-Is the role of project development being met?

1.5. PROJECT ENVIRONMENT

a) Project environment needs to be analysed, understood and addressed if project is to be

implemented successfully.

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b) Project environment provides managers with a structured approach to analyzing and

handling possible external constraints

c). There must be continued interaction between the project and its environment, and the

project itself affects the environment just as it in turn is affected by it, so that there is a two –

way relationship between them.

Physical environment:

 Refers to the natural setting of the project, its geology, soils, landscape, climate, water

resources and ecological systems

 Many projects are sited in a particular location and surrounded by a specific physical

setting. Sometimes this setting is the very reason why the projects exist e.g. mining

project is established precisely to exploit deposits in physical environment,

agricultural projects exist to maximize potential of the natural physical environment

for agricultural production.

Technologies:

Technologies utilized for the exploitation or conservation of the natural resources.

Availability –provision of these technologies is a key dimension of the project environment.

Economic and Financial management:

Projects utilize resources to create assets. Resources utilized have a cost and these assets

created have a value. Relative costs and values (worth of the projects) are directly affected by

the economic and financial environment within which they are implemented . Such issues as

budgetary constraints, foreign currency shortages, price controls, inflation, interest rates are

constantly reviewed in order to complete project at stated cost, using resources to be

acquired. Cost-over-runs often associated with time delays are very frequently encountered-

and these are caused by constraints of the economic and financial environment.

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Institutional and political environment:

 Institutional framework concerns such matters as the legal systems within which

project managers are operating and aspects of social organization such as the land

tenure and water rights system

 Formal/less formalized organizations are crucial determinants of project outcome:

Formal: government departments,marketing and credit institutions, local authorities have

clear terms of references

Less fomalised but official organizations- village level committees, political groups,

religious institutions may be as important

Political framework in the project environment needs to be considered. Projects

necessarily reflect the political priorities of the country within which they are

implemented. Politics determine the progress of any project.

Project managers need to be political –need to lobby, negotiate, use influence to gain

political support for their project. The political environment surrounding a project

involves a complex web of political relationships which extends beyond individuals to

organizations and geographical areas.

Socio-cultural environment:

 People –orientated projects e.g most agricultural projects, health,education and

welfare projects,urban housing, water supply, rural industrialistion projects are

implemented through people who are not directly part of the formal project

organization

 Project organization provides resources, training services and infrastructure to the

population

 For the project to be successful, its objectives will need to be consistent with

values and practices of those people it is designed to assist

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  It is vital for project personnel to be sympathetic to the local culture and to have

an understanding of “why things are done the way they are.”

DISCUSSION:

1. Critically analyse the business operating environment of a project you are

familiar with. What are the prospects of its success? Why? What are the

areas of improvement, if any, would you recommend to the project

sponsors for it to be a success?

2. Examine any one of the organizations/institutions that promotes project

development. To what extend is it fulfilling its role in the current

economic environment?

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 PART TWO

FUNDAMENTALS OF PROJECT MANAGEMENT

2.1. Definition of Project

Project can be defined in different ways. Below are various definitions of project
management.

- Project is a series of complex, connected activities with a common purpose.

- It is a sequence of unique, complex and connected activities having one goal or
purpose and that must be completed by a specific time, within budget, and according
to specification.
- Project is a temporary organisation that is created for the purpose of delivering one or
more business products according to a specific business case.
- It is a carefully selected set of activities chosen to use resources to meet the
predefined objectives.
2.2. Characteristics of Projects
Projects have the following characteristics:
- A project is carried out via set of interdependent tasks.
- A project uses various resources to carry out these tasks.
- A project has a definite start date and an expected completion date. The actual
completion date may differ from expected date.
- A project is a one time or unique endeavour.
- A project has a customer.

Examples of a project

 Writing and publication of a book

 Relining of a blast furnace in steel works

 Setting up a new department at a University

 Supporting of a self help efforts of a rural community

 Technical projects: construction of bridges, dams, water pipe line

 Introducing a new product

 Organizing a trade fair.

2.3. Measures of Project Success

- The resulting product is acceptable to the customer.
- The product was delivered on time.

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 - The product was delivered within budget.
- The product development process had a minimal impact on ongoing business
operations.
2.4. Causes of Project Failure
- Failure to establish upper management commitment to the project.
- Lack of organisational commitment to the product development methodology.
- Poor expectations management.
- Premature commitment to a fixed budget and schedule.
- Poor estimating techniques.
- Over optimism
- The mythical man-month
- Inadequate people management skills
- Failure to adapt to business change
- Insufficient resources
- Failure to manage the plan
- Lack of executive level support.
- Wrong team members
- Poor communication
- No measures for evaluating the success of the budget
- No risk management

2.5. Definition of Project Management

Project management has many definitions prescribed by various scholars. Some of the
definitions of Project Management are listed below:
- Project Management can be defined as the application of knowledge, skills, tools, and
techniques to a broad range of activities in order to meet the requirements of the
particular project
- It is the leadership role which plans, budgets, coordinates, monitors and controls the
operational contributions of property professionals, and others, in a project involving
the development of land in accordance with a clients’ objectives in terms of quality,
cost and time.
- Project Management is a controlled process of initiating, planning, executing, and
closing down a project.
- It can be regarded as both a process and set of tools and techniques concerned with
defining the projects goal, planning all the work to reach the goal, leading the project
and support teams, monitoring progress and seeing to it that the project is completed
in a satisfactory way.
- Can be defined as the application of modern management techniques and system to
the execution of a project from inception to completion aimed at meeting the client’s
requirements and ensuring completion on time, within costs
- Project managements means managing the production of projects within schedules
and tasks associated with the project. It often involves detailed expertise in many of
the following areas: planning; cost management; technical writing (proposal etc),

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 research, technical development, information/computer management, business
development, corporate/administration management, time management and others
- It refers to the methods and discipline used to define goals, plans and monitor tasks
and resources, identify and resolve issues, and control costs and budgets for a specific
project.
- Project management maybe used in a project manufacturing environment for
production scheduling or in a variety of one off projects throughout all types of
organisation.
- It is an action of managing a project. It can involve many activities, from scheduling
to communication.
- Project management can be regarded as an approach used to manage work with the
constraining of time, cost and performance targets.
- This is managing the resources needed to ensure that a project is finished on time and
within budget and to the satisfaction of the end user.
- It is the planning, control and coordination of all aspects of a project, and the
motivation of all those involved in it, in order to achieve the project objectives.
- It is the discipline of defining and achieving targets while optimising the use of
resources (time, money, people, space etc)
- Project management is a discipline of organising and managing resources in such a
way that these resources deliver all the work required to complete a project within
defined scope, time, and cost constraints.
- Project management is the process of scoping, planning, staffing, organising, directing
and controlling the development of an acceptable product at a minimum cost within a
specific time frame.

Characteristic features:

- Objective oriented – without these you have no outcomes

- Change oriented – creating something you need but do not have.

- Multi disciplined – needs a wide range of skills to achieve success

- Opportunistic – you must seek to take shortcuts and bypass old norms

- Performance oriented – setting appropriate standards and quality of

outputs

- Control oriented – carefully designed controls to maintain the schedule

- Avoid getting trapped by the old ways of doing things.

Sources of projects:

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 1. Corporate and strategic plans/business plans

2. Normal operations/ step changes

3. Continuous improvements/ programmes cross functional

4. Growth by projects addressing needs/ opportunities

5. Growth by incremental change of quality/performance

2.6. Key Words used in Project Management

2.6.1. Deliverables refers to tangible things that the project produces.
2.6.2. Milestone indicates the dates by which major activities are performed.
2.6.3. Task (Actions) means activities undertaken during the project.
2.6.4. Risk refers to potential problems that may arise.
2.6.5. Issues mean risks that have happened.
2.6.6. Gantt chart refers to a specific type of chart showing time and tasks usually created
by project management programme.
2.6.7. Stakeholder refers to any person or group of people who may be affected by the
project.
2.7. Project Management Process

Conceptual definition and learning

Identfigying Datailed roll out into
and feasibility preliminary construction user training review
Need design operation
study dessign development

2.8. Core Project Management Activities

Organising Leading

Planning Controlling
Project
Management

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2.9. Project Constraints

Projects are limited by their product quality and process quality requirements. Projects face
the following constraints:

(a) Cost- mostly labour costs

(b) Calendar time schedule
(c) Requirements/objectives/quality
(d) Resources in terms of people (skills), facilities, equipment etc

2.10. Life Cycle of a Project

Project Life Cycle

All projects go through similar life cycle, comprising the following phases

namely:

Phase1: Idea generation and screening the idea

It is done through feasibility study ie whether to go for the project or

not(prefeasibility Go/and No Go)

-Needs are clearly identified and project is defined with agreement of

those people with an interest in the outcomes

-Also called conception and definition stage

-Organization realizes that a project may be needed or receives a

request from a customer to propose a plan to perform a project.

Phase 2: feasibility study: Project formulation

-Looks at techno-economic design stage aspects of the project

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 -Looks into such issues like location, finance, commercial, institutional

preliminary organizational/set up, economic financial aspects.

-Also termed project formulation/design stage.

-Here the planning phase becomes critical to derive a realistic schedule

and budget taking into account the constraints imposed on the project

Phase 3 Implementation/execution

-Entails launching the project work

-Manufacture, construction and installation of equipment and facilities

-Entails procurement; production

-Requires monitoring cost schedules and specifications, plan to be up

to date

Phase 4 Handover and start up stage

- Preparing customer for acceptance and handover to ensure the project

can deliver. Any follow- up activities are identified and assigned and

project evaluation is completed

Phase 5 Post project evaluation

done after project is handed over to the customer. It provides data for

future projects.

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T
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Weiss and Wysocki (1994) suggest a 5 phase life cycle of a project, namely, planning,
organising, executing and closing. These phases may overlap (Fast tracking).

Project life cycle involves supporting and maintaining the deliverables in order to realise
the project’s intended benefits.
Operations –The period during which the completed deliverable is used and maintained
in service for its intended purpose.
Termination - The disposal of the project deliverables at the end of their life.

2.10.1. The Five Project Management Life Cycle

(i) Traditional Project Management
It is also called Linear project management since it follows the linear, waterfall model

monitor close
scope plan launch
and control project

(ii) Incremental Project Management

It delivers the project in incremental stages. It reduces the risk of delivering everything at
once.

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 launch monitor plan next next close
scope plan
increment &control increment increment project

(iii) Iterative Project Management

It allows the project to evolve as understanding increases. It allows management and

stakeholders expectations/operational challenges to be clarified.

launch monitor close plan next next close

scope plan
interation & control interation iteration inetration project

(iv) Adaptive Project Management

It allows projects purpose and goals to evolve as project proceeds. Project is planned in
cycles i.e goals and requirements reviewed each cycle.

monitor & plan next

scope plan cycle launch cycle close cycle next cycle close project
control cycle cycle

(v) Extreme Project Management

It involves users/or client in constant input/review of requirements. It needs small group of

project team working closely.

monitor & plan next

scope phase plan phase launch phase close phase next phase close project
control phase phase

2.10.2. Classification of Projects

Projects can be classified by industry, for example, construction, mechanical engineering,

software development, banking, health care, education, etc. On the other hand, project can be
classified according to output/results e.g.

Obeng (2003) use metaphor to name projects. The use of metaphor for each class of projects
helps stakeholders engage in it.

Table 1.1. Types of project

Types of project Description Examples

Painting by Most stakeholders are sure of what to do and Housing construction by a
numbers how it is to be done. The project proceeds well established firm
linearly and sequentially
Going on quest Most stakeholders are sure of what to do, but Outcome based on
are rather unsure about how to achieve it. The prototype, e.g. Research
project proceed concurrently and converges and Development
according to particular deadlines
Making a movie Most stakeholders are very sure of how to do Developing new products
the work, but not sure about what is to be for the market
done. The project proceeds through a number

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 of checkpoints where clarification is sought
before moving on
Walking (or Most stakeholders are unsure of both what is Doing something new for
lost) in fog to be done and how it is to be carried out. The the first time such as a
project proceeds with care, one step at a time. quality process
improvement programme

Contents of a project report (proposal)

1. INTRODUCTION:

 -purpose

 -scope(limits)

2. EXECUTIVE SUMMARY

 -executive highlights

 -summarises completed project report

 -findings

 -decisions

3. CONCLUSIONS/RECOMMENDATIONS

4. PROJECT DESCRIPTION

 General objectives

 Specific objectives

-market analysis

 Product/service description

 Market position

 Competition and marketing strategy

Project structure

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  Work breakdown structure

 Work packages

Project costs

 Capital and expense requirements

 Financial plan (project budget)

 Contingencies

 Economic and financial analysis(viability)

 Risk and sensitivity analysis

Schedule

 Time estimates

 Calendar schedule

 Bar chart schedule

Network

 List of activities

 Arrow diagram

Resource allocation

 Resource type

 Resource availability and constraints

Control systems

 Project evaluation methods

 Cost control

 Cost minimizing (time/cost trade offs)

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  Status report

 Milestones

ORGANISATION AND ACCOUNTABILITY

 Management capacity

 Labour /employee plan

 Responsibility/accountability matrix

 Procedures

 Special conditions/contractual aspects

APPENDIX

 Reference material

 Calculations

 Curriculum vitae (cv)

NB a project plan (report) varies from organization to organization but any project must

contain most of the above elements.

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 PART THREE

PROJECT ORGANISATION STRUCTURE

2.1. Introduction

The project organisation structure refers to the organogram of the project management. This
part looks at hierarchical structure, matrix structure, project steering committee, project
sponsor, project manager, project team, linear responsibility chart and work breakdown
structure.

2.2. Hierarchical structure: organizational chart

 Appropriate for very large, long-term projects which work on isolated tasks and are

staffed mainly by full time employees.

 Is not appropriate when project is to be integrated with the base organization.

2.2.1. Advantages

 Functional specialists easily share their knowledge and normally work together.

 Easier to implement work rules and regulations for a group of similar functional

experts.

 Share a commonality of perspectives that will help the main thrust of a project.

 Control oriented. The project manager would be able to control the activities

 Indicates a clear reporting structure of activities

 Provide a platform for specialisation.

2.2.2. Disadvantages

Disadvantages of organizational projects according to hierarchical structure

 Does not develop technology useful for the future.

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  Minimal career continuity for project personnel.

 It often leads to:-

- bureaucracy

- inefficiency

- poor use of resources

- collapse of authority or the project usurping responsibility it should not

have.

- Little commitment from people outside the project

- Little informal contact between the project and its surroundings

- Restricted information

- Slow decision making which may affect progress of the project

- Increase costs

2.3. MATRIX STRUCTURE

Matrix can be on full or part time basis. It is a high breed organization. It is characterized by

having a pull of project managers who will be assigned to projects. It comprises of:-

- Core team members with previous experience who are not necessarily

drawn from across the functional structures.

- Extended team members who are drawn from across functional

structures and do a specific part of a job for a relatively short time.

 Features of a Matrix Structure

(i) Hybrid structure

 combination of two or more structures.

 It combines functional organisation with project organisation.

 It has the merits and demerits of both these organisation structure

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 (ii) Functional Manager

 Has authority over the technical (functional) aspects of the project.

 How to do the work

 Distributes the project work among subordinates

 Looks after operational aspects

(iii) Project Manager

 has authority over the admin aspects of the project

 has full financial and physical resources which he can use for completion

of the project

 decides what to do

 responsible for scheduling the project work

 coordinates the activities of the different functional members

 evaluates the project performance

(iv) Chain of Command

 The subordinates receive orders from two bosses i.e. project manager and

functional manager

 Cause confusion, disorder, indiscipline, organisational politics and

inefficiency

 Can reduce productivity and profitability of the project

(v) Specialisation

 Project manager concentrate on the project administration

 Functional manager concentrates on the technical aspects of the project

(vi) Suitability

 Suitable for multi-project organisations

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2.3.1. Advantages

 Response to changing needs is very rapid.

 Functional experts are more part of a team and are more focused on project

deliverables.

 Team members have a functional department to return to after the project.

 Their respective departments look after careers and specific development

needs.

 Sound Decisions: In a Matrix Organisation, all decisions are taken by experts.

Therefore, the decisions are very good.

 Development of Skills: It helps the employees to widen their skills.

Marketing people can learn about finance, finance people can learn about

marketing, etc.

 Top Management can concentrate on Strategic Planning: The Top

Managers can spend more time on strategic planning. They can delegate all

the routine, repetitive and less important work to the project managers.

 Responds to Changes in Environment: Matrix Organisation responds to the

negative changes in the environment. This is because it takes quick decisions.

 Specialisation: In a matrix organisation, there is a specialisation. The

functional managers Notes concentrate on the technical matters while the

Project Manager concentrates on the administrative matters of the project.

 Optimum Utilisation of Resources: In the matrix organisation, many projects

are run at the same time. Therefore, it makes optimum use of the human and

physical resources. There is no wastage of resources in a matrix organisation.

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  Motivation: In a matrix organisation, the employees work as a team. So, they

are motivated to perform better.

 Higher Efficiency: The Matrix organisation results in a higher efficiency. It

gives high returns at lower costs.

2.3.1. Disadvantages

 If the team is not physically located in the same area in a building,

communications and control becomes a difficulty.

 Matrix structures are frequently hindered by accusations of poor

accountability and lack of clarity in responsibilities.

 Increase in Work Load: In a matrix organisation, work load is very high.

The managers and employees not only have to do their regular work, but also

have to manage other additional works like attending numerous meetings, etc.

 High Operational Cost: In a matrix organisation, the operational cost is very

high. This is because it involves a lot of paperwork, reports, meetings, etc.

 Absence of Unity of Command: In a matrix organisation, there is no unity of

command. This is because, each subordinate has two bosses, viz., Functional

Manager and Project Manager.

 Difficulty of Balance: In a matrix organisation, it is not easy to balance the

administrative and technical matters. It is also difficult to balance the authority

and responsibilities of the project manager and functional manager.

 Power Struggle: In a matrix organisation, there may be a power struggle

between the project manager and the functional manager. Each one looks after

his own interest, which causes conflicts.

 Morale: In a matrix organisation, the morale of the employees is very low.

This is because they work on different projects at different times.

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  Complexity: Matrix organisation is very complex and the most difficult type

of organisation.

 Shifting of Responsibility: If the project fails, the project manager may shift

the responsibility on the functional manager. That is, he will blame the

functional manager for the failure

2.4. Project organization

It is based on assigning projects to each organizational unit (department). The project

makes contribution to corporate strategy. Senior management is involved in project

process and has defined roles and responsibilities. Senior management sponsor projects

and have authority i.e. ownership over projects. Project sponsors can form project

steering team.

2.4.1. Advantages

- It ensures everyone in the organization focuses on important active

projects.

- The reporting structure is clear

- It priories project which use less resources

- Reaction to market changes is rapid as authority exists in project team

- Functional specialists work with project managers

2.4.2. Disadvantages

- Duplication of functional experts will exist across the organization as

they are each dedicated to a single project.

- There is a lack of information exchange between functional experts as

they are located in different parts of the organization.

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 2.5. Project sponsor (owns, commissions the project, chairs PST)

The project sponsor for any project is accountable (to the PST) for the performance of

their projects and must demonstrate their concern for success to everyone involved.

Responsibilities include:

 Ensuring project objectives are always aligned to corporate needs;

 Selecting the project manager;

 Approving the project definition;

 Sustaining the project direction;

 Ensuring priorities are maintained for all their projects;

 Overseeing the project process and procedures, budget and control; finds

and wins resource(s) for the project

 Reacting promptly to issues escalating to them for decisions;

 Maintaining support and commitment;

 Approving project plans, changes and status reports.

2.6. Project steering team (created by project sponsors has representatives from business +

technical functions + user community)

This group of project sponsors – the project steering team (PST) – meets at regular intervals

to review the status of all active projects, initiate new projects and decide the prioritization of

project activity in the organization. Responsibilities include:-

 Ensuring projects are aligned to corporate objectives;

 Giving strategic direction;

 Maintaining focus on customer and business needs;

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  Ensuring environmental influences are taken into account (internal and

external);

 Prioritizing all active projects and their resourcing;

 Resolving escalating issues;

 Providing the ultimate decision forum for all major problems and issues;

 Approving start-up and abortion of projects.

 Reviews overall project direction, schedule, costs, quality of deliverables)

2.7. Project manager ( manager project, people + paper work, attends, steering

committee meetings)

The project manager is responsible for the project work from the initial kick-off through

to closure. Responsibilities include:

 Developing a unique product or process and manage change

 Identification of the need for project.

 Finding different alternatives of the project.

 Establishment of quality assurance cell to control quality.

 Selecting the core team with the project sponsor;

 Identifying and managing the project stakeholders;

 Defining the project and securing stakeholder approval;

 Planning then project and securing stakeholder approval identifying +

managing the risks

 Allocating + securing resource commitments

 Monitoring and tracking project progress

 Solving the problems that interfere with progress

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  Controlling costs

 Leading project team

 Informing stakeholders of progress status

 Delivering the project deliverables + benefits

 Managing performance of everyone involved with project

 Developing a plan of action.

 Training operators.

 Incorporation of changes as and when needed while implementing project.

 Assessment of alternatives and obtaining approval to proceed.

 Measuring performance of the project.

 Transfer of material, funds and settling all accounts after completion of

project.

 Monitoring progress and reporting to higher authorities.

 Closing all records, submission of final report and transfer of

responsibility after completion of specified project.

Project Manager’s deliverables

i.e The physical items to be delivered from a project. This typically includes reports and

plan as well as physical products and services project deliveries a product or service.

 Terms of reference or project definition

 Milestone plan

 Budget

 Work breakdown structure

 Project organization chart

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  Responsibility

 Task definitions

 Deliverable definitions

 Deliverable definitions

 Quality plan

 Dependency chart

 Progress reporting standards

 Change control standards

 Lost of planning + estimating assumptions

 Gantt chart

 Progress reports

 End of phase reports

 Project review report

2.8. Project Team

Successful teams have to be built through effective leadership + commitment

Criteria for selecting team members

 Relevant technical experience/specialized knowledge are essential to project.

 Have worked in project team before i.e have experience

 Assets current non project work load

 Do they get on easily with other people

 Are they good team players

 Is line manager in agreement with possible assignments.

2.8.1. Other considerations

 They must be technically competent.

28 | P a g e
  Senior members of the project team must be politically sensitive.

 Members of the project team need a strong problem orientation.

 Team members need a strong goal orientation.

 Project workers need high self-esteem.

2.9. Project member

 Technical expert qualified to complete project tasks

 Gives regular feedback on progress to project manager

 Focuses on delivering quality contributes to teamwork and morale

2.11. PROJECT WORK BREAKDOWN STUCTURE (WBS)

This is a dynamic tool which divides(segments) the project into parts before starting a

project. It is updated as the work proceeds, particularly as minor changes affect the

task analysis.

Reasons for segmenting a project

 Project is large

 Project is long term

 It is advantageous to have information to plan the whole project as one unit

 We do not have information to plan the whole project as one unit

 The project has several natural phases with completing different contents.

NB: a characteristic of a phase is that it is possible to plan it as a whole i.e. giving us an

insight into the types of activities that should be done in this phase.

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A WBS does not show dependencies other than a grouping under the key stages.

A WBS is not time based – there is no time scale on the drawing.

e.g. feasibility(phase) study V implementation phase

Preliminary project V (main project)

-Defines precisely objectives and goals -it implements what has been

on project decided

-Requires thoroughness completeness

2.12. PROJECT RESPONSIBILITY CHART

- It is a contract between the project and the parties involved (management other

resource persons and members from the base organization who are drawn into the

project)

- Each party must understand clearly the responsibilities for (work ending up to a

milestone) and their roles. Each key stage must be owned by one of the team

members.

- Some milestones may require authority to make decisions.

- Responsibility can consist of being responsible for progress, expecting work, making

decisions, being available for consultation, receiving information or tutoring.

- When project responsibility chart has been developed it is useful to evaluate the

results.

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 - External assistance can be included in the project on project members e.g. legal

expertise, trade union representative, expert in economics and finance (if not found

from within)

- At this stage data to complete “duration” on plan “end date” is not yet in place.

2.13. LINEAR RESPONSIBILITY CHART (LRC)

- It is a contract between the project and the parties involved i.e right and member

from the base organization who are drawn into the project as resource persons and

each party must understand clearly for work leading up to a milestone (date of

announcement)

- Responsibilities can consist of being responsible for progress or implementing work,

making decisions, being available for consultations, receiving information or tutoring

as well as evaluating the results.

- External assistant can also be included in the project as project members such as legal

practioners, TUs, economic experts if not found from within.

- If summaries the relationships between project participants and their responsibilities

in each element of a project and an element can be a specific activity an authorization

to perform an activity, a decision or a report. The LRC has government column to

represent organizational elements and roles which correspond to the project elements

and roles which correspond to the project elements performed by the organization.

- The LRC depicts authority, responsibility and communication channels.

Activity Engineerin Manufacturi Contracts Project Marketin Quality

g manager ng manager manager manage g assurance
r manager manager

Negotiating Contract I, N I, N I, R P I A

Preliminary Design P A R O, B I A

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Execution R P - O, B I R

Delivery N N P A N A

KEY

A - Approval

P - Preliminary responsibility – who is responsible for accomplishing

R - Review

N - Notification

O - Output

I - Input

B - Initiation

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 PART FOUR

PROJECT DOCUMENTATION

4.1. Introduction

Project work produces a large amount of data and it is important that you record essential

material. Insist that the team keep all essential project records on a standard set of templates

(format 5) derived specifically for the purpose.

4.2. Purpose of Recording Data

 To ensure project data is resolved in a consistent and disciplined

manner without reinventing every week.

 To get the right information recorded for the project file to support your

control system and aid project evaluation at completion.

 Standard formats can be designed on the computer

4.3. Project File

- use a paper based system but more preferably on computer based file which makes

distribution of information easier with a network.

- Organize your project file into sections for different stages of the project e.g.

 Background information

 Project definition

- project organization

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 - stakeholders

- project brief

 Project plans and schedules

- project risk management

- responsibility charts

- schedules

- work plans

 Project execution and implementation

- project status reports

- changes to project plans

- action plans for correction action

- cost control data

- supplier and subcontractor data

- records of meetings

 Project closure

- handover checklist

- acceptance pressure

- follow up and post project responsibilities

- project evaluation data

- completion report

4.4. Project logbook

- open a project log book at the start of your project

- book in an A4 bound …….book

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 - log book is particularly valuable to record events with third parties like suppliers and

contractors. When conflicts and differences occur the logbook provides a record of

events that can have a legal status in a dispute

- log book is an addendum to the project file

- the logbook is an invaluable record of what actually happened throughout the project.

It is useful for post-project evaluation and a source of active data for other projects in

the future.

4.5. Project definition

- process of turning the data into something more solid and realistic, something that is

no longer a wish or a hope

- a clear definition of your project is critical to success – a large number of projects

(more than 75%) are perceived to fail as a consequence of poor or nuclear definition

Documents required to effectively defining project:

I. a statement of requirements

II. a stakeholder list –

- all with an interest in the project, how or in the future : customer, endures, project

sponsors, line managers of your core team members

- finance department, sales and marketing department, consultants ,

contractors, suppliers, other divisions or sites.

4.6. Project log book

Record events with essential relevant data:

 date

 time

 who is involved

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  key points or content

Events to record
 Telephone calls – incoming and outgoing

 Faxes – incoming and outgoing

 Letters – sent and received

 Memos – sent and received

 E –mail - sent and received

 Purchases instructions issued

 Contracts signed

 Action plans agreed

 Decisions taken – how implemented

 Solutions derived

 Reports issued

 Meetings – sponsor team, third party, one – to – one

When using log book

 Use every page and number them sequentially

 Never remove any pages

 Start each day with anew page

 Always write with ink, never with pencil

 Write on very line

 Rule out all unused lines at the end of each day and sign the page at the bottom

 Do not allow anyone else to write in the logbook – even the project sponsor.

- the public, other agencies/statutory bodies

stakeholders used to be consulted for their inputs to give you a wider

36 | P a g e
 perspective of:

- the real project needs and requirements

- what is realistically available in the time scale demanded.

4.7. Project brief – one page document with the following sub headings:

 Project title – relevant title for identification (project number)

 Project overall objective – describes project’s desired results in 25 –30 words

 Project leader and s ponsor to be identified

 Project proposed start date: date when the real work starts after definition is

approved and planning begins

 Project required and date: and project is handled over to customer

 Project deliverables; tangibles outputs from the project which must be

impabale of being measured through its lifecycle, apply SMART test to ensure

that each deliverable is specific, measurable achievable, realistic and time

bound

 Project benefit

 Lists benefits and quantity them in financial terms-cost savings, increased

turnover, contribution or profitability in a specific time scale.

 Project strategy –explore alternative, carry out feasibility study, set up site

team, involve customers in the team

 Project skills required: identify and highlight special experience and technical

skills you expect to need, external skills, expertise from outside the

organization.

 Relationships with other active projects –any project interfaces with other

projects in terms of inputs, outputs critical interface dates to be determined.

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  Project cost – if known or budget exists from earlier studies or feasibility with

them state cost, if not give estimate cost o rleave blank.

 Risk management – risk log and management forms attached

Project brief is a document that summarizes all relevant facts about the project and is a source

of definitive information:

Contents:

 Projects origins –a need or opportunity statement

 Project …….. – why is it necessary now?

 Benefits of project –to customer and your organisation

 Project budget if known at this stage

 Current timescale and dead lines –subject always to detailed planning later

Iv Scope of work statement (SOW)

- it is a narrative description of the project objectives in more detail, giving more

information about each deliverable and benefit identified. SOW must identify

boundary limits of project clearly stating what is not going to be done as part of the

project. It records all constraints made earlier and any assumptions made in each of

the meetings, SOW is where the applicable specification list is recorded:

- internal product specifications

- external product specifications

- mandatory standards imposed by legislation

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 - process specification

- customer specifications

- standard operating procedures

- purchasing procedures

- quality standards

- testing specifications and procedures

- sub contract terms and conditions imposed on third parties

Its purpose:

- to make sure that everyone knows from the offset which standards and specifications

apply to your project

- it identifies where actual document scan be found for reference

- it identifies what exceptions, if any, apply to any specification for your project

- if necessary record for reference purposes any other relevant documents that have

been issued previously relating to project e.g. CBA fundability reports, studies carried

out by consultants, project evaluation reports from previous projects

4.8. Risk Management

- a risk is any event that could prevent the project from realizing expectations of the

stakeholders as stated in the agreed project briefs or a agreed definition. A risk that

becomes a reality is treated as an issue

- there are risks to all projects and risk management is the process o identifying and

containing them to ensure your project’s success. It is necessary to anticipate what

might go wrong.

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Two types of risks

o project risks – associated with technical aspects of the work of the work to achieve the

required customers

o process risks – associated with project process, procedures, tools and techniques

employed, the controls put in place, communication, stakeholders and team

performances

o can be due to external / internal factors

Project manager is made an obligation with the team to,

 identify and evaluate potential risks

 obtain agreement for action plans to contain risks

 take actions and monitor results

 promptly resolve any issues arising from risks that happen

Risk management is a continuous process throughout the life cycle of the project. Identify the

triggers or signals that suggest a risk likely to happen, and you must maintain awareness of

risk in the minds of all your project team;

 should be started at definition phase.

 Is essential to establishing project brief

 Compile a complete list of a project risk log

 Review the list at regular intervals as the project moves forward.

4.9. Approval of project definition

Requires following documents to be presented

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  Project organization chart p56 T&Young

 Project stakeholder list

 Scope of work statement

 Project risk management forms

 Project brief.

4.10 Project Stakeholders

Stakeholders are people or organisations:

 With an interest in the project

 Who can affect or affected by the project

 Maybe within or external to the organisation

 Internal stakeholders maybe managers, staff, other departments heads, project team,

subject matter experts tec

 External stakeholders maybe from anywhere, other companies, public bodies,

legislative bodies, competitors

4.10.1 Reasons for Identifying Stakeholders

 They can affect or affected by the project which may result in litigations

 To be in a position to serve stakeholder interests

 Maximise opportunity brought by stakeholders

 To protect the project against negative effect

NB: Stakeholder influence may change as the project develops so analysis should be done

periodically

4.10.2. Effects of stakeholders

They can affect the project through:

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  Politics

 Financial

 Resource providers

 Influencers e.g. media

 Not buying the product

 Advocate against the project

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 PART FIVE

PROJECT PLANNING

“if you fail to plan; you are planning to fail”

5.1. Purpose of planning

 To achieve a common understanding of the task to be resolved

 To obtain an overview of the work to be carried out

 To lay the foundation for allocating and committing resources

 To be able to form a suitable organization of work

 To define a programme of monitoring and control.

5.2. Definition of Project Planning

 Is “a continuous process which involved decisions and choices, about alternative

ways using available resources with the aim of achieving particular goals at

sometime in the future”( Conyers and Hill,1984). L.Young – planning is a

process of creating order out of apparent chaos

Key aspects of the definition:

 Making choices

 Concerning use of limited resources

 To achieve given goals and objectives

 Pertaining to some future time

NB: Goal – aim or objective towards which an endeavor is directed.(simply

objective)

5.3. Project planning involves stating

 Why a project should be undertaken

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  What should be done and

 By whom, in order to achieve well-defined objectives by some future dates.

5.4. Products of planning

 Plans consisting basically of graphics and text e.g. graphics – include charts,

logic diagrams, sketches and in some cases photographs

 Texts include narratives and tables.

 Logic of planning = plan.

 List of what jobs (activities) have to be done and the order of carrying them out.

5.5. Planning cycle and project cycle

Like project cycle, planning cycle is made up of three main elements:

 Clarity problems to be solved

 Set out objectives and

 Draw up the project plans

5.6. Planning procedures:

(i) Establish objectives

 State objectives – derived from requirements (problems that motivated the

project

 List interim objectives or milestones – these are significant events in meeting

the main objectives

 Designate responsible personnel or departments

- These are important groups whose participation in planning and

scheduling are required for successful project implementations.

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 These participating activities used to be identified early in project

developments.

(ii) Develop a plan

 List what jobs (or activities have to be done to complete the project

 Delineate the jobs by determining their relationships:

- determine which jobs preceed and succeed every other job

- determine which jobs can be accomplished concurrently

5.7. Network Analysis Techniques

Networks are logical extension of Gantt’s milestone chart incorporating the modifications so
as to illustrate interrelationship between and among all the milestones in an entire project.

This is a graphic analysis of the project showing the plan of action through the use of a

graphic diagram (used in project planning)

5.7.1. Techniques for Network Analysis

Two common network analysis techniques exist, namely:

 Programme Evaluation and Review Technique (PERT)

 Critical Path Method (CPM)

These techniques were developed simultaneously during 1956 – 1958.

 PERT was developed for US navy for scheduling the research and development
activities for Polaris programme.
 PERT used where emphasis is on scheduling and monitoring project.
 CPM was developed by du Point de Nemours and company as an application to
construction project.
 CPM used where emphasis is on optimising resource allocation.

This arrow or network diagram includes all activities and events that should be completed to
reach the project objectives.

The activities and events are laid in a planned sequence of their accomplishments.

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Difference between PERT and CPM

PERT CPM

-event oriented -activity oriented

-provides starting and finishing - provides starting and finishing

times provided for the event times for the activity

-provides the probability of -has no provision for determining

meeting a scheduled date probabilities

-uses three time estimates for -uses one estimate

each activity

5.7.2. Types of Notations

(i) Activity-on-Arrow (AoA)
 The arrow represents the work to be done.
 The circle represents an event-either the beginning of another activity or completion
of previous one.

event
work to work to
event event
be done be done

(ii) Activity-on-Node (AoN)

A box (Node) is used to show the task itself and arrow show the sequence in which work is
done.

Task to be don task to be done

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 5.7.3. Programme Evaluation and Review Technique (PERT)

A method of minimising trouble spots, programme bottlenecks, delays and interruptions by

determining critical activities before they occur so that various activities in the project can be
coordinated

5.7.4. PERT Terminology

(i) Activity – a recognisable work item of a project requiring time and resource for
its completion.
(ii) Dummy Activity – an activity that indicates precedence relationship and requires
no time nor resource
(iii) Critical Activity – an activity on the critical path having zero slack/float time
(iv) Critical Path – the longest time path connecting the critical activities in the
project network. The total time on this path is the shortest duration of the project.
(v) Event – an instantaneous point in time signifying completion or beginning of an
activity
(vi) Burst Event – an event which gives rise to more than one activity
(vii) Merge Event – the event which occurs only when more than one activity are
accomplished
(viii) Expected Time – the weighted average of the estimated optimistic, most likely
and pessimistic time duration of a project activity

T 0+ 4 Tm+Tp
Expected Time (Te) =
6

Where: To: the optimistic time

Tm: most likely time

Tp: pessimistic time

(ix) Earliest Start Time (EST) – The earliest possible time at which the event can
occur. Denotes the EST of an activity as activities emanate from events. The EST
of an activity is the time before which it cannot commerce without affecting the
immediate preceding activity.
(x) Latest Stat Time (LST) – The latest time at which the event can take place. It
indicates. It indicates the latest time at which an activity can begin without
delaying the project completion time.
(xi) Slack – The amount of spare time available between completion of an activity and
beginning next activity.
5.7.5. Steps for Network Analysis

Step 1: Prepare the list of Activities

 An activity in a project is the lowest level of resource consuming, time-bonding work

having a specified beginning and end point.
 It should be quantifiable, measurable, cost-able and discrete.

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  The total project is subdivided into activities and each activity is given an alphabetical
symbol/code.
 This involves a detailed delineation of the activities to be performed to complete the
project.
Example:
Creating facility for lift irrigation in a farm would be used. The assumptions are:
1. The project approved and project scheduling starts with the activity
of “site selection.
2. Irrigation would be provided from newly dug well.
3. Filed channels from the well would be laid after its digging
4. Suitable pump would be procured and installed for lifting water
5. Specification for the pump is finalised based on the groundwater
prospecting data before digging.
6. Pump and other inputs would not be procured until the site is
selected
7. Pump would be installed after digging the well

List of Activities

No Activity Symbol/Code
1 Site selection A
2 Digging well B
3 Laying field channels C
4 Procurement of pump D
5 Installation of pump E
6 Test run F

Step 2: Define the inter relationship among the activities

 The relationship among activities could be defined by specifying a preceding and

succeeding activity
 Preceding activity for an activity is its immediate predecessor i.e the activity that
needs to be completed before the start of the new activity.
 In PERT the interrelationship is defined using the preceding activity.
 Only the terminating activity will not have a preceding activity.

The interrelationship of Activities

No Activity Symbol Preceding Activity

1 Site selection A ..........
2 Digging B A
3 Laying field channels C B

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 4 Procurement of pump D A
5 Installation of pump E B; D
6 Test run F C;E

Step 3: Estimation of activity time

 The activity time is the time which is actually expected to be expended in carrying out
the activity
 In deterministic cases as in CPM one time estimate is used
 In probabilistic cases as in PERT the activity time has some kind of probabilistic
distribution
 Time is the weighted average of the 3 time estimates (optimistic time; pessimistic
time and most likely time) for each activity
 The time estimates can be done by experienced and skilled people in the field

Activity time estimates for the example

No Activity Symbol Precedin Time (days)

g To Tm Tp Te
Activity
1 Site selection A ...... 4 6 14 7
2 Digging well B A 2 3 4 3
3 Laying field channels C B 7 16 19 15
4 Procurement of pump D A 4 7 10 7
5 Installation of pump E D; B 3 4 11 5
6 Test run F C; E 1 2 3 2

Net work diagram

PERT network is a schematic model that depicts the sequential relationship among activity
that must be completed to accomplish the project

Step 4: Assemble the activities in the form of a flowchart

 Activity and its duration shown in a box

 The boxes are connected with lines according to the preceding and succeeding activity
relationship
 Critical path for the project can be identified by comparing the various path lengths
(sum of activity time, from start to finish, on any path)
 The longest path in the chart is the critical path
Path I: A-B-E-F sum(7;3;3;2) 15
Path II: A-B-C-F sum( 7; 3; 15; 2) 27
Path III: A-D-E-F sum (7;7;3;2) 19
Therefore the Critical path is A-B-C-F

Step 5: Draw the Network

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  Graphical presentation of the project showing the precedence relationship among the
activities
 An arrow represents activities in the diagram
 Circle represents event
 Each activity starts with an event and end in an event
 Activities in a project are performed either sequentially or concurrently
 Sequentially means one after the another
 Concurrently means simultaneously
 To draw the network it requires the knowledge of specifying which activities can be
started, which activities can be performed in parallel, and which activities
immediately succeed other activities

Rules for drawing the network

 Each activity is represented by one and only one arrow in the network
 All the arrows must run from left to right
 Dotted line arrows represent dummy activities
 A circle represent an event
 Every activity starts and end with an event
 No two activities can be identified by the same head or tail event
 Do not use dummy activity unless required to reflect the logic
 Avoid looping and crossing of activity arrows by repositioning
 Every activity except the first and the last must have at least one preceding and one
succeeding activity
 Dungers, isolated activities must be avoided
 For coding use alphabets for all activities including the dummy activity and members
of events

5.7.6. Network Analysis

 Helps manager to calculate the duration and identify critical activities in a project.
 Critical activities are those activities, which determine the overall duration of the
project.
 The duration of the project is not necessarily the simple sum of the individual
activity duration because several activities occur concurrently in the project
 Project duration would be equal to the sum of all individual activities durations
only when all the activities in the project are sequential.
 The starting and finishing time for each individual activity is calculated through
the network analysis.
5.7.7. Types of Network Analysis
1. Event Numbering
 Events have reference numbers for identification
1.1. Systems of Numbering events
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  Random numbering Systems – events of a network are randomly numbered thereby
avoiding the difficulty in numbering extra events due to insertion of new jobs.
 Sequential numbering – events numbered successively from the beginning to the
end of the network.
2. Earliest Start Time (EST) and Latest Start Time
 EST refers to the time before which the activity cannot begin
 LST refers to the latest time by which the activity must begin
Difference between EST and LST

EST
Through forward pass
Calculation begins from start event
Proceeds from left to right
At start event EST is zero
Adding the activity time to EST
At a merge event take maximum value
LST
Through backward pass
Calculation starts from end event
Proceeds from right to left
At end event LST is equal to EST
Subtract the activity time from LST
At a burst event take minimum value

Calculating EST
EST = EST of preceding activity plus activity duration
Using example

EST of A = 0
EST of B = (0 + 7) =7
EST of C = (0 + 7 + 3) =10
EST of D = (0 + 7+7) = 14
EST of E = (0 + 7 + 3 +15) = 25
EST of F = (0 + 7 +3 + 15 + 2) = 27

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