PRINCIPLES OF PROJECT MANAGEMENT

Module Guide

Copyright © 2021
MANCOSA
All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines,
without the written permission of the publisher. Please report all errors and omissions to the following email address:
modulefeedback@[Link]
 This Module Guide,
Principles of Project Management (NQF level 6)
module guide will be used across the following programmes:

 Bachelor of Commerce in Information and Technology Management

 Bachelor of Commerce in Supply Chain Management
 PRINCIPLES OF PROJECT MANAGEMENT

Preface .................................................................................................................................................... 4

Unit 1: Project Management Concepts .................................................................................................. 10

Unit 2: Project Integration Management ................................................................................................ 52

Unit 3: Project Scope and Time Management ....................................................................................... 68

Unit 4: Project Quality, Cost, Procurement and Risk Management........................................................ 95

Unit 5: Project Resource, Communication and Stakeholder Management .......................................... 122

Unit 6: Project Closure ......................................................................................................................... 142

Answers to Revision Questions ........................................................................................................... 151

Bibliography ......................................................................................................................................... 156

i
Principles of Project Management

List of Contents

List of Tables

Table 1 - Project Management Knowledge Areas............................................................................................. 35

Table 2 - Example of Net Present Value Calculation ........................................................................................ 42

Table 3 - Purpose of the various documents that make up the overall project plan.......................................... 60

Table 4 - Causes for change requests to the Baseline Plan. The PMBOK Guide (2017) ................................ 62

Table 5 - Change Request Form. Adapted from The PMBOK Guide (2017) ................................................... 64

Table 6 - Critical Path & Activity Slack. ............................................................................................................. 86

Table 7 – Example of a Risk Register for a 21st Birthday Party ...................................................................... 111

Table 8 - Qualitative Risk Analysis. Adapted from own source ...................................................................... 112

Table 9 – An example of a Risk Register from a 21st Birthday Party .............................................................. 112

Table 10 – 21st Birthday Party Project Risk Register. .................................................................................... 114

Table 11 - Risk Probability & Impact Matrix for the 21st Birthday Party. ......................................................... 115

Table 12 - Risk Response Strategy for the 21st Birthday Party. ..................................................................... 117

Table 13 - Scope of Communication............................................................................................................... 128

Table 14 - Example of a Project Communications Plan .................................................................................. 130

Table 15 - List of Potential Stakeholders. ....................................................................................................... 131

Table 16 - Sample of information included in a Stakeholder Register ............................................................ 133

Table 17 - Tabular illustration of High or Low Power rating and a High and Low Interest rating. ................... 135

Table 18 - Sample of a Stakeholder Register. ................................................................................................ 137

Table 19 – Lessons Learned Report Template............................................................................................... 147

1 MANCOSA
 Principles of Project Management

List of Figures and Illustrations

Figure 1 - The Quadruple Constraints ............................................................................................... 22

Figure 2 - The important factors to consider within the project environment. ..................................... 23

Figure 3 – Functional Project Organisation........................................................................................ 25

Figure 4 – Pure Project Organisation................................................................................................. 27

Figure 5 – Matrix Project Organisation .............................................................................................. 28

Figure 6 – Selecting the right Organisation Breakdown Structure ..................................................... 30

Figure 7 - The Three Spheres of Systems Management. .................................................................. 32

Figure 8 - Project Life Cycle .............................................................................................................. 39

Figure 9 - Project Planning Model ..................................................................................................... 58

Figure 10 - The Common Elements of a Formal Project Plan ........................................................... 59

Figure 11 - Scope Change Management Cycle. ................................................................................ 63

Figure 12 - Work Breakdown Structure.............................................................................................. 73

Figure 13 – Work Breakdown Structure example for a 21st Birthday Party. ...................................... 74

Figure 14 - WBS for a party/ social event. ......................................................................................... 75

Figure 15 - Most project management solutions have a table format for the Activity List. You can also
use MS Excel or other spreadsheet packages. ............................................................... 76

Figure 16 - Finish to Start. ................................................................................................................. 78

Figure 17 - Finish to Finish ................................................................................................................ 79

Figure 18 - Finish to Start .................................................................................................................. 80

Figure 19 - Network on Node Diagram for 21st Birthday Party .......................................................... 81

Figure 20 - - Network Diagram .......................................................................................................... 82

Figure 21 – Critical Path .................................................................................................................... 86

Figure 22 - Gantt Chart for 21st Birthday Party ................................................................................. 89

Figure 23 - Project Budget for 21st Birthday Party Per Deliverable .................................................. 104

Figure 24 – Project Risk Management Cycle................................................................................... 108

MANCOSA 2
Principles of Project Management

Figure 25 - Tucker Ladder Model for Team Development ............................................................... 126

Figure 26 - The Stakeholder Management Process ........................................................................ 132

Figure 27 - Power and Predictability Matrix ..................................................................................... 134

Figure 28 - High or Low Power rating and a High and Low Interest rating. ...................................... 135

Figure 29 - High or Low Power rating and a High and Low Interest rating ....................................... 136

3 MANCOSA
 Principles of Project Management

Preface
A. Welcome

Dear Student
It is a great pleasure to welcome you to Principles of Project Management (PPM6). To make sure that you share
our passion about this area of study, we encourage you to read this overview thoroughly. Refer to it as often as
you need to, since it will certainly make studying this module a lot easier. The intention of this module is to develop
both your confidence and proficiency in this module.

The field of Project Management is extremely dynamic and challenging. The learning content, activities and self-
study questions contained in this guide will therefore provide you with opportunities to explore the latest
developments in this field and help you to discover the field of Project Management as it is practiced today.

This is a distance-learning module. Since you do not have a tutor standing next to you while you study, you need
to apply self-discipline. You will have the opportunity to collaborate with each other via social media tools. Your
study skills will include self-direction and responsibility however; you will gain a lot from the experience! These
study skills will contribute to your life skills, which will help you to succeed in all areas of life.

We hope you enjoy the module.

MANCOSA does not own or purport to own, unless explicitly stated otherwise, any intellectual property rights in or
to multimedia used or provided in this module guide. Such multimedia is copyrighted by the respective creators
thereto and used by MANCOSA for educational purposes only. Should you wish to use copyrighted material from
this guide for purposes of your own that extend beyond fair dealing/use, you must obtain permission from the
copyright owner.

MANCOSA 4
Principles of Project Management

B. Module Overview
The content covered in this module starts from defining what a project is to project closure. This broad coverage
will provide you with the necessary skills to articulate to the next levels with reasonable ease. It is written in an
accessible language accompanied with simple illustrations and examples to facilitate learning. At the end of this
module, you should be able to utilise Project Management tools and implement projects irrespective of scale –
large or small - the principles remain the same. As you read this module, take down some notes and highlight
important concepts. It is advisable to attempt all the examples. It intuitively true that practice makes perfect.

The module is a 15-credit module at NQF level 6.

Aims this Module

This module provides you with the basic and realistic knowledge of project management and the methods used in
project management. It also offers awareness of the four (4) stages of project management, from the creation of a
feasible project, the allocation of resources and budgets, and the implementation of the project to the completion
of the project by making the client sign up to it.

C. Learning Outcomes and Associated Assessment Criteria of the Module

LEARNING OUTCOMES OF THE MODULE ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE

 Initiate and plan a project.  Project plan components are developed and integrated
into an approved and documented project management
plan.

 Execute, monitor and control a project.  Project work is undertaken, and products delivered in
accordance with project requirements, the project
management plan and agreed procedures.

 Hand over and close a project.  Project closure tasks and outputs are listed and
summarised to show understanding of the project
closure lifecycle phase.

 Use and apply concepts and  Project management concepts and terminology are
terminology of project management conceptualized for better understanding.

 Recall various documentation required  Project administration is undertaken in accordance with

in the various phases of a project project plan, required standards and procedures.

5 MANCOSA
 Principles of Project Management

D. Learning Outcomes of the Units

You will find the Unit Learning Outcomes on the introductory pages of each Unit in the Module Guide. The Unit
Learning Outcomes lists an overview of the areas you must demonstrate knowledge in and the practical skills you
must be able to achieve at the end of each Unit lesson in the Module Guide.

E. Acronyms

AOA Activity Arrow

AON Activity on Node

CEO Chief Executive Officer

CPM Critical Path Method

DMAIC Define Measure Analyse Improve Control

DOE Design of Experiments

EF Early Finish

ES Early Start

ISO International Standards Organisation

LF Late Finish

LS Late Start

OBS Organisational Breakdown Structure

PDCA Plan Do Check Act

PDM Precedence Diagramming Method

PERT Programme Evaluation and Review Technique

PMBOK Project Management Body of Knowledge

PMI Project Management Institute

TQM Total Quality Management

WBS Work Breakdown Structure

MANCOSA 6
Principles of Project Management

F. How to Use this Module

This Module Guide was compiled to help you work through your units and textbook for this module, by breaking
your studies into manageable parts. The Module Guide gives you extra theory and explanations where necessary,
and so enables you to get the most from your module.

The purpose of the Module Guide is to allow you the opportunity to integrate the theoretical concepts from the
prescribed textbook and recommended readings. We suggest that you briefly skim read through the entire guide
to get an overview of its contents. At the beginning of each Unit, you will find a list of Learning Outcomes and
Associated Assessment Criteria. This outlines the main points that you should understand when you have
completed the Unit/s. Do not attempt to read and study everything at once. Each study session should be 90
minutes without a break.

This module should be studied using the prescribed and recommended textbooks/readings and the relevant
sections of this Module Guide. You must read about the topic that you intend to study in the appropriate section
before you start reading the textbook in detail. Ensure that you make your own notes as you work through both the
textbook and this module. In the event that you do not have the prescribed and recommended textbooks/readings,
you must make use of any other source that deals with the sections in this module. If you want to do further reading,
and want to obtain publications that were used as source documents when we wrote this guide, you should look at
the reference list and the bibliography at the end of the Module Guide.

G. Study Material
The study material for this module includes tutorial letters, programme handbook, this Module Guide, a list of
prescribed and recommended textbooks/readings which may be supplemented by additional readings.

H. Prescribed and Recommended Textbook/Readings

There is one prescribed and several recommended textbooks/readings allocated for the module.
The prescribed and recommended readings/textbooks present a tremendous amount of material in a simple, easy-
to-learn format. You should read ahead during your course. Make a point of it to re-read the learning content in
your module textbook. This will increase your retention of important concepts and skills. You may wish to read
more widely than just the Module Guide and the prescribed and recommended textbooks/readings, the
Bibliography and Reference list provides you with additional reading.

The prescribed and recommended textbooks/readings for this module is:

 Oosthuizen, T.F.J. and Venter, R. (2018). Project Management in Perspective. 2nd Edition. Oxford
University Press.

7 MANCOSA
 Principles of Project Management

Additional Reading:
 Burke, R. 2014. Project Management: Planning and Control Techniques. 5th Edition. Wylie & Sons.
 Gido, J. and Clements, J.P. 2018. Successful Project Management. (7th Edition). Cengage Learning.
 Kloppenberg, T.J. 2017. Contemporary Project Management. (3rd Edition). Stamford USA: Cengage
Learning

Some useful Website Links:

 EQ Toolbox: [Link]
 International Centre for Complex Project Management: [Link]
 International Association for Project and Program Management: [Link]
 Project Management Centre: [Link]
 Project Management Discussion: [Link]
 Project Management Insight: [Link]
 [Link]: [Link]
 Project Management Wisdom: [Link]

 Scrum Alliance: [Link]

I. Special Features
In the Module Guide, you will find the following icons together with a description. These are designed to help you
study. It is imperative that you work through them as they also provide guidelines for examination purposes.

Special Feature Icon Explanation

LEARNING The Learning Outcomes indicate aspects of the particular Unit you
OUTCOMES have to master.

The Associated Assessment Criteria is the evaluation of the students’

ASSOCIATED
understanding which are aligned to the outcomes. The Associated
ASSESSMENT
Assessment Criteria sets the standard for the successful
CRITERIA
demonstration of the understanding of a concept or skill.

A Think Point asks you to stop and think about an issue. Sometimes
THINK POINT you are asked to apply a concept to your own experience or to think of
an example.

MANCOSA 8
Principles of Project Management

You may come across Activities that ask you to carry out specific
tasks. In most cases, there are no right or wrong answers to these
ACTIVITY
activities. The purpose of the activities is to give you an opportunity to
apply what you have learned.

At this point, you should read the references supplied. If you are
READINGS unable to acquire the suggested readings, then you are welcome to
consult any current source that deals with the subject.

PRACTICAL
Practical Application or Examples will be discussed to enhance
APPLICATION OR
understanding of this module.
EXAMPLES

You may come across Knowledge Check Questions at the end of

KNOWLEDGE
each Unit in the form of Knowledge Check Questions (KCQ’s) that will
CHECK
test your knowledge. You should refer to the Module Guide or your
QUESTIONS
textbook(s) for the answers.

You may come across Revision Questions that test your

REVISION understanding of what you have learned so far. These may be
QUESTIONS attempted with the aid of your textbooks, journal articles and Module
Guide.

Case Studies are included in different sections in this Module Guide.

CASE STUDY This activity provides students with the opportunity to apply theory to
practice.

You may come across links to Videos Activities as well as instructions

VIDEO ACTIVITY
on activities to attend to after watching the video.

9 MANCOSA
 Principles of Project Management

Unit
1: Project Management
Concepts

MANCOSA 10
Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

1.1 Introduction  Introduce topic areas for the unit

1.2 Project Management Principles  Identify key role players and their responsibilities within a project
and Concepts

1.3 What is Project Management?  Explain the purpose of a project

 Describe project management characteristics

 Describe the different types of project constraints

1.4 Project Environment  Discuss various project management key principles and
methodologies in a project

1.5 Project Organisation, Context and  Define project organisational structures

Strategy
 Describe the importance of project management in the context of
1.6 Project Management and various organisational structure
Organisational Structures

1.7 Projects in Organisations  Explain the project phases that make up a typical project

1.8 Introduction to Knowledge Areas  Explain project management processes that occur within each
and Project Lifecycles project phase and explain the relationships and interactions
between process groups, processes and knowledge areas

 Describe the role of each knowledge area in a typical project

lifecycle

1.9 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in Perspective.
2nd Edition. Oxford University Press. Chapter 1 and 2.
 Gido, J. and Clements, J.P. 2015. Successful Project Management. (6th
edition). Cengage Learning. Chapters 1 – 3.
 Newton, P. 2015. Project Management Processes: Project Skills. [Online].
Available at [Link]
[Link] [Date Accessed: 20 May 2019].

11 MANCOSA
 Principles of Project Management

1.1 Introduction
This unit explores the key principles and strategies used to execute projects cost-effectively. Consideration will be
given to the importance of project management, organisational strategy, project selection and prioritisation, as well
as organisational capability in the context of projects such as structure and project life cycle. You will learn the
initial steps to develop a project-related product or service description and to charter a project. The unit also
includes the suggested process groups and processes that the project manager may customise to the phase or to
the entire project. Key project management processes shall be defined and addressed.

1.2 Project Management Principles and Concepts

Oosthuizen and Venter (2018:12) defined project management as “the process of applying knowledge associated
with the planning, organising, coordinating, leading and controlling of required project tasks and activities,
effectively and efficiently, to achieve the set project objectives”

Newton (2015) clarified that the company is increasingly using project management methods within its activities
and that the technical vocabulary of project management has become increasingly popular in management and
executive meetings. Project management is a concept that most people are familiar with; it is the ability to do
projects on schedule and within the budget. From an academic and career point of view, it is a relatively recent
development that occurred in the 1960s with the development of advanced machinery and complex systems such
as jet aircraft, military machinery, and the development of space exploration. As these industries and projects
became more advanced and complex, the cost overruns and time delays began to be questioned. As a result,
Project Management was developed as an ability to minimise costs and control scheduling.

The term project management is sometimes used to describe an organisational approach to the management of
ongoing operations. This approach, more properly called management by projects, treats many aspects of ongoing
operations as projects in order to apply project management to them.

Project Management is a process, which focuses on a project. A project is an undertaking that has beginning and
an end and is carried out to meet established goals within cost, schedule and quality objectives. Project
management brings together and optimises the resources necessary to successfully complete the project. These
project resources include the skills, talents, and cooperative effort of a team of people; facilities, tools, and
equipment; information, systems and techniques; and money.

A key aspect of project management is that the responsibility for achieving objectives is given to a single individual,
the project manager, who gets things done through a team of people. Regardless of the size, the ultimate success
or otherwise of the project is the responsibility of a single individual.

MANCOSA 12
Principles of Project Management

Project managers, for example, may usually work in the operations departments of their businesses. The survival
of the company depends largely on the combined performance of its project managers. Project managers are not
only responsible for various vital aspects of the business, but project managers tend to face difficulties in the form
of tight deadlines, weak output by subordinates, demanding buyers, slow production by suppliers, etc. Appropriate
project management principles are the best way to address these challenges.

1.2.1. Pre-requisites for a Project

The need for an organisation to manage its human, cost, and technological resources effectively; therefore, every
project that an organisation undertakes must have a clear beginning and end. The setting of start and end dates
helps with the distribution of budgets. In addition, it helps the company to logically organise its projects or portfolio
of projects over time.

The project should also have a clearly specified set of objectives that translates into a set of deliverables and a
specific product or service. Uniqueness matters when considering a product or service, as it distinguishes between
one project and another. In fact, it sets project activity apart from the regular tasks that an organisation conducts
on a daily basis.

For starters, Hiner (2009), former Chief Editor of TechRepublic, lists and addresses five (5) pre-requisites for
successful IT projects as follows:
 Meet the business goals;
 Embrace change;
 Be honest;
 Align vendors (customers, service providers and technology);
 Arrange a strong executive sponsor.

From a more general project viewpoint, Watt (2015) points out the pre-requisites of 'Managing the Environment
Plan' as follows:
 Executive Support – The Executive must clearly demonstrate support for the concept of project
management through active sponsorship and control.
 External Authority – The project manager must be the responsible agent in dealing with all parties and the
person in charge and the only formal communication with them.
 Internal Authority – The project manager must have the requisite managerial authority within his/her
organisation to ensure that he/she meets his / her requirements.
 Commitment Authority – The project manager must have the duty and the authority to monitor the
allocation of resources, including financing, within the defined limits. The consequences of these decisions
must be both transparent and clear.

13 MANCOSA
 Principles of Project Management

 Project Manager to be Involved in All Major Decisions – No major technical, cost, schedule or performance
decisions should be taken without the involvement of the project manager.
 Competence – The Project Manager and the members of his team must be professional. The other
workers assigned to the project must also be qualified.
 Project Team – The project manager will have a say in the assembly of his / her project team, which will
help him / her gain their personal engagement, encouragement, and standard of service.
 Management Information Systems – Good knowledge and control systems for project management must
be in place.

1.2.2 What is a project?

Projects vary in terms of complexity, length, expense, resources, and ability levels required. Below is an example
of a project definition:

Oosthuizen and Venter (2018:4) defines a project as “any planned, temporary endeavour undertaken to create
a unique product, service or other complete and definite outcome (deliverable) within a limited time scale and
with limited resources”

1. Project characteristics or attributes

Oosthuizen and Venter (2018:7-8) acknowledges that each project is unique and there are certain attributes which
each project mutually shares. These attributes are summarised as follows:

 Each project has a clearly defined objective;

 A project is conducted through a series of interdependent tasks;
 A project uses different resources to complete the tasks;
 A project has a specific time frame and limited life span;
 A project can be unique and can be a once-off event;
 Each project has a customer, also known as a sponsor;
 A project has risk due to the level of uncertainty; and
 Quality, scope, cost and time are equally important to a project.

MANCOSA 14
Principles of Project Management

Projects come in all shapes and sizes, such as:

 A group of students can work on a program / module project that must meet certain criteria and must be
completed by a certain date.
 Projects such as bridge building are much more technological and complex and rely on feedback from experts
such as engineers.
 Many projects will take years to come to fruition.
 Most ventures need feedback from several stakeholders. An example, the efforts of various stakeholders that
led to the landmark agreement signed by South Africa and Vietnam on 9 December 2012 to stop rhino
poaching in South Africa. Although the agreement was signed by the South African Minister of Environmental
Affairs and her Vietnamese counterpart, several stakeholders played a role in bringing the governments of the
two countries to achieve this significant milestone (All Africa, 2013).
 Please note that the proposal (above), an example of entering and signing an agreement. The execution of
the agreement is an ongoing process and thus, according to the definitions given above, it is not a project.

2. Types of Projects
To gain a better understanding of projects, Oosthuizen and Venter (2018:5) classifies the four unique needs
(criteria) of a project in terms of:
 Industry – different project life cycles models exist for different industries as they often have unique
requirements.
 Project size – large projects, for example, require more detailed and complex planning and control, than
smaller projects.
 Project scope – establishing the project scope (what you can aim to deliver to the customer at completion) is
important, and how soon it can be established with certainty, varies between complex and less complex
projects.
 Project application – refers to the complexity of a project based on its unique focus and aim. A project as a
change intervention differs substantially from a research and development project, in terms of aspects such
as focus, objectives, cross-functional work and multidisciplinary interaction.

Oosthuizen and Venter (2018:5) argue that it depends on the nature of the project, organisations may consider the
abovementioned criteria for classifying a project. For example: providing a face lift to the interior of a restaurant
and the Gautrain development are both projects, but these two projects differ in terms of industry, where they are
located, as well as their size, scope, and application.

Different types of projects require a range of resources and skills. Youker (2017) in his journal article, The
Distinction between Various Types of Projects, 2nd Edition, classifies projects according to their basic
characteristics.

15 MANCOSA
 Principles of Project Management

READING
You are encouraged to read the full journal article at: Youker, R. 2017. The
Difference between Different Types of Projects. 2nd Edition [Online]. Available at:
[Link]
[Link] [Accessed 22 August 2019].

The following has been adapted from Yourker's (2017) journal paper, which helps us summarise the specific
characteristics of the nine (9) styles of projects:

Administrative Projects
Usually, this form of project will require other levels of analytical skill; for example, when a business transitions
from one accounting method to another. These types of projects require careful consideration, as new systems
may be unreliable or unsuitable, workers may fail to learn new technology and may incur high training costs. It is
vital that staff embrace the new program, team building exercises and other similar forms of motivation may be
required.

Construction Projects
Blue-collar employees, led by skilled managers, usually carry out construction tasks, such as buildings and
highways. Price is an essential consideration and this constraint typically takes precedence over time. There is an
intrinsic risk factor for workers; thus, the health and safety laws should be strictly complied with.

Computer Software Development Projects

The IT sector is experiencing rapid change as technology is constantly being revamped. It has a significant effect
on software development projects as the scope of the project can be changed many times over the lifetime of the
project. Computer developers are both introverted and highly intelligent and must be handled accordingly.

Design of Plans Projects

Plans such as engineering or architectural projects typically evolve as the project unfolds. This type of project
involves a high degree of analytical skills and is marked by confusion in the introductory phases.

Equipment or System Installation Projects

Careful preparation is important to this form of project. Installing telecommunications equipment, for example, can
result in downtime. There must be a contingency plan if the outage is longer than expected, otherwise it could be
expensive for both the customer and the service provider.

MANCOSA 16
Principles of Project Management

Event or Relocation Projects

The campus relocation that Randburg College Campus witnessed during December 2007 may be a good example.
Careful planning was essential as the new building had to be fully occupied at a specified date. This date could not
be moved without serious complications, as classes were scheduled to begin at the beginning of the New Year.

Maintenance of Process Industries Projects

Time is important since this form of project often usually requires downtime. If a municipality is preparing to
establish power grids, people are told of periods when they will be without electricity. If the project were to run
overnight, the town would be overwhelmed with complaints and grievances. One example of that might be
arranging the maintenance of the company's database servers, which would mean that they could be without
network or email access during maintenance. A large manufacturing business can need to maintain its equipment,
which would interrupt routine work and involve the involvement of specialist contractors.

New Product Development Projects

Good understanding of economic market power (supply and demand) is important. The production of a new drug
may take years and the research costs may be astronomical. Unless the product meets the particular needs or
conditions of the industry, a substantial loss can be sustained. The changes in scope are characteristic of this form
of product. For example, if Simba ® or Willards ® were to launch a new chip flavour or product, they would need
to create both the product and the means to produce it. An additional example may be the development of an
electric vehicle or a solar-powered car.

Research Projects
Usually, this type of project evolves over time, particularly when long-term studies are performed. Examples include
feasibility studies and trials, environmental impact evaluations and long-term medical research.

3. Who are the Main Participants in a Project?

There are many role-players in the projects, and it is important to understand who they are, how they affect the
project and what their roles are. These roles sometimes merge and overlap, which can make things a little
confusing.

Project Sponsor
Oosthuizen and Venter (2018:78) explains that a “project sponsor may be an external stakeholder, but is normally
a senior executive in an organisation, accountable to the Board, and who has a number of responsibilities for the
project.” The project sponsor is the person with the greatest interest in the success of the project and bears the
greatest risk. Consider, for example, the head of the department (sponsor) who will delegate a project to the project
manager to prepare a business function to sell a product. If the project failed, the company manager would not
have gained from the project for his / her department.

17 MANCOSA
 Principles of Project Management

The Project Sponsor has significant responsibility for linking the project to the outside world. Principle among these
obligations, if the project is to be successful, the sponsor of the project must:
 Serve as an important contact link between the management of the project and the senior management
of the supporting organisation.
 Ensure that organisational policies and processes are in place and practiced.
 Create a positive working environment by acting as a project advocate.
 Provide high-level guidance and supervision before successful completion of the project and beyond. This
involves involvement in the production of the business case of the project, ensuring its compliance with
the higher "task" of the company and, ultimately, gaining its approval so that the project can move forward
in the planning process.
 Finally, review and gain approval of the Project Charter so that the project can progress through the
phases of development. This contains the following:
o Approval of the project scope.
o Decide what is "in" and "not in"
o Defining the Key Performance Metrics of the project as the basis for decision-making during the
work post-project evaluation.

Project Manager
The project manager is the person assigned to direct the team and is responsible for achieving the goals of the
project. In the event of a business function being planned, the sponsor would appoint and assist the project
manager by making funds and resources available to them. The project manager shall report to the sponsor.
Oosthuizen and Venter (2018:437) states that “a project manager’s duties go far beyond the day-to-day
management of the project. It includes leadership required to negotiate upwards in the organisation with top
management to collaborate sideways with other managers and to influence and direct downwards with project
team members”. We will expand on the roles and responsibilities of the Project Manager later in this module guide.

The Project Team

The project management team comprises all those who carry out work on the project. Those participants may differ
from project to project and from process to process depending on the skills needed and the complexity of the
project. The team leaders report directly to the project manager.

The Project Management Office

Oosthuizen and Venter (2018:78) explains that this office maintains the standards for all projects within the
organisation and is the source for project templates and other documentation, guidance and sets metrics.

MANCOSA 18
Principles of Project Management

Stakeholders
Oosthuizen and Venter (2018:13) refers to a stakeholder as the “end users, customers, or the people who will
influence the design of the project, and ultimately, the people who will reap the benefits of the final project”. They
have a vested interest in the project, for example, sponsor, functional managers or internal customers or suppliers,
creditors, community members and/or members of the project team’s family.

Steering Committee
Projects and project managers must be accountable and given input from experienced and senior individuals within
an organisation. Oosthuizen and Venters (2018:78) refers to this group of people as a steering committee and it is
their duty to approve proposals, distribute funds for projects from the budget of the organisations and ensure that
the projects performed are in line with the organisation's strategic direction. At an early stage, the sponsor would
propose the projects and obtain the approval of the steering committee before appointing the project manager.
When it is underway, the sponsor or project manager may have to proceed through the steering committee at the
accepted level of reporting and funding approval. The members of the Steering Committee are also members of
the Board of Directors or of senior executives.

When all of these are beyond the control of the project manager and his or her staff, they too should be "escalated"
to higher resolution management. Never forget that there are no projects in isolation. While the project team brings
intelligence, motivation, and skills to the project, the sponsoring organisation must also play its part. The role of
corporate management is to provide the right atmosphere for project work. The representative of the organisation
to the project, i.e. the person to whom the project manager reports, is usually referred to as the "Project Sponsor"
or, where multiple related projects are involved, the "Program Manager."

1.3 What is Project Management?

Projects, as described above, are temporary projects with a definite start and end that create a specific product or
service using necessary tools and resources. This ensures that the management of projects has certain special
aspects. Below is the formal concept of project management.

Oosthuizen and Venter (2018:12) refers to project management as “the process of applying knowledge
associated with the planning, organising, leading and controlling of required project tasks and activities, effectively
and efficiently, to achieve the set project objectives.”

The above description refers to a typical project that is big and/or has several elements that need to be organized.
The construction of bridges is the typical example of these projects. It also takes diligent management to ensure
that the tasks are finished on time.

19 MANCOSA
 Principles of Project Management

The five (5) management functions are planning, organising, staffing, leading, and controlling (Davis, B and Reily,
M., 2019).

 Planning - Involves the development of objectives and objectives, the creation of an overarching strategy to
achieve these objectives and objectives, and the development of a systematic ranking (hierarchy) of strategies
to incorporate and organise these activities. Planning provides direction and encouragement to the project
team leaders.
 Organising - Unless the project is to achieve its goals and objectives, it must coordinate its activities and
assign resources (including human resources) to accomplish these activities. The organisation process
includes deciding what activities are to be carried out, who will do them, and how they are to be handled and
organised
 Staffing - Recruitment and selection of workers for positions within a organisation (within teams and
departments).
 Leading – It is the power to manipulate others, either individually or in groups, to achieve the goals of the
project. This includes tasks such as giving orders, inspiring people, advising people, leading groups, and
rewarding people for good results.
 Controlling – Compares the actual outcome or implementation of the project with the priorities and
expectations that were defined during the planning phase. When there is a deviation from the plans, action
must be taken to correct the errors.

Project managers must also have the skills to successfully complete the project to the satisfaction of all relevant
stakeholders (client, government, company management, etc.). While small tasks, such as the assignment of a
student group, do not require a management team, even these small projects would require at least some
cooperation and communication between the members of the group to ensure that everyone works together in a
harmonious manner in order to reach the deadline.

Later in the module, you will also be introduced to the principles of tools and techniques that need to be learned in
order to be able to use them. Many of the methods used by project managers are Gantt maps, task breakdown
systems and software programs. Techniques include, but are not limited to, work preparation, budget management
and critical path review.

1.3.1 Project Constraints

Newton (2015) defines project management as a practice of planning, coordinating, encouraging, and managing
resources to achieve a particular objective. He also defines the project as a process that is typically time-constraint
and mostly restricted by funding and deliverables. In his book, Newton (2015) points out that the primary challenge
of project management is to achieve all the goals and objectives of the project while at the same time meeting the
constraints of scope, time and expense.

MANCOSA 20
Principles of Project Management

THINK POINT
Imagine that you are the manager of a project where you are told that you
have an unlimited budget, that you have all the time you need to complete
the project, and that quality is of no interest to us, since we are not concerned
with whether the customer is pleased with the new product.

As depicted and explained in Figure 1, Kaschny and Nolden (2018) refers to the four (4) quadruple constraints as:
 Scope is all the things that need to be carried out on a project. When all deliverables have been
completed, the project is finished.
 Cost includes services such as team members, team leaders and supplies. The goal is generally to keep
the costs to a minimum while still conducting the work in compliance with the quality agreed upon.
 Time according to the definition of a project, must have the date of completion. This is also critical that
the project manager finishes the project within the time limits. Most businesses are subject to strict and
serious penalties when service providers fail to meet deadlines. Such punishments can include heavy
fines, termination of potential work or both.
 Quality refers to the level of workmanship and materials needed by the customer. It is important that an
agreement is reached between the client and the project manager on the acceptable standard – the client
may always hesitate to pay more for better-than-agreed quality work. On the other hand, the company is
not likely to pay for low quality of work at all.

21 MANCOSA
 Principles of Project Management

Scope

Quality

Cost Time

Figure 1 - The Quadruple Constraints

Adapted from Kaschny and Nolden (2018)

1.3.2 Other Constraints

Oosthuizen and Venter (2018:12) explains that all project managers encounter certain constraints during the
lifespan of a project. These constraints that may limit projects and/or affect the performance of the project. The
authors recommend we need to be aware of other constraints that can influence a project. These are:
 Customer Satisfaction is a key factor for sustainable and successful organisations. All organisations or
entrepreneurs have one goal, to meet customer and/or stakeholder satisfaction. To this end, they are the
source of funds and if you are unable to satisfy your customers, you will not be able to stand against
competitors.
 Resource Constraints – it is often perceived that only project team members are considered as project
resources however, tools, equipment, or material that will be used during the project are also be referred
to as project resources. An example would be a cement, sand, bulldozer, or MS Project software that will
be used during the project are all project resources and project constraints, respectively.
 Risks can be either positive or negative. Project managers must utilise the opportunities of positive risks
and reduce the threats of negative risks in a project. For example, if there is a risk of losing a project team
member, you should prepare a handover document for the activities of that team member is doing in the
project and if he leaves the project, or if the risk occurs, you can use the handover documents to assign
tasks to a new team member and reduce the impact of this risk.
 Stakeholders are the end users, customers and/or the people who will influence the design of the project
and ultimately the people who will reap the rewards of the final project. They have a vested interested in
the outcome of the project. It is therefore essential that the project manager/team identify and include
stakeholders who influence and who are influenced by the project throughout the lifecycle of the project,
to ensure their continuous support.

MANCOSA 22
Principles of Project Management

1.4 Project Environment

Project managers and project teams need to be acquainted with the technical, economic, organisational, and social
contexts surrounding projects. At the end of the day, knowing this situation affects projects. Each segment deals
with selected aspects of the project environment.

Watt (2015) in Figure 2, discusses the important factors that need to be understood within your project environment.
At one level, you need to think in terms of the cultural and social environments (i.e., people, demographics, and
education). The international and political environment is where you need to understand about different countries’
cultural influences. Then we move to the physical environment; here we think about time zones. Think about
different countries and how differently your project will be executed whether it is just in your country or if it involves
an international project team that is distributed throughout the world in five (5) different countries.

Figure 2 - The important factors to consider within the project environment.

Adapted from Barron & Barron Project Management for Scientists and Engineers (2015)

1.5 Project Organisation, Context and Strategy

In most instances, project managers may be required to commence with a project immediately. It can be said that
it would therefore be important for project managers to critically analyse the project before they commence. It
brings with it a need for project managers to learn and incorporate applicable information prior to project
commencement. As a result, project managers can save time during execution and can have a more holistic
perspective to help create the right and appropriate structure, tools, strategies, and recommendations to ensure
project and organisational success.

Angel (2015) notes that not all initiatives or organizations are the same or similar. This also addresses the difficulty
of project management by stating that not all the methods and strategies outlined in the Project Management
Institute (PMI) provide common requirements for all projects. Considering, it suggests four (4) steps that can be
taken to help project managers achieve strategic success. Angel (2015) provides information alignment based on
PMI principles that project managers should recognise and implement from the very start of a project, such as
PMBOK ®, the Organisational Project Management Maturity Model (OPM3 ®) and the PMI Practice Framework
for Configuration Management.

23 MANCOSA
 Principles of Project Management

He points out that this guide outlines four steps of the project management model that can be followed to help
achieve the success of the project, namely:

 Step 1
Recognise the form of organisation in which the project is to be carried out.
 Step 2
Identify the expertise and practice of an organisation to recognize the degree of sophistication of its
processes and standards.
 Step 3
Using the proper configuration of the project.
 Step 4
Apply good governance to the project.

READING
Read the explanation regarding the four (4) steps in his article available at:
[Link]
Managers-Should-Follow-to-Help-Ensure-Strategic-Success

1.6 Project Management and Organisational Structures

Oosthuizen and Venter (2018:68) posits that all organisations need to be structured in a functional way to improve
efficiency and effectiveness. In recent years, project managers manage in a complex environment and are
influenced by significant technological and organisational changes, for example, artificial intelligence and the
utilisation of computerised systems and robots to undertake certain tasks. There are various ways in which
organisations structure themselves to achieve the vision and goals of the organisation or to meet project
requirements. Similar organisational structures have different advantages and disadvantages. They differ by
allocation, supervision, and coordination, depending on the project management authority, project management
allocation and budget control. The position of the project manager is influenced by the organisation's configuration.
Such structures will be discussed below.

1.6.1 Functional Project Organisation

According to the functional units, the organisation has a hierarchical structure. Departments can operate in relative
isolation, especially in larger organisations. The Chief Executive Officer (CEO) or Managing Director (MD) is at the
helm. Functional managers shall answer directly to the Chief Executive Officer. Staff members shall report directly
to the functional manager. The orders come from above and follow the hierarchical lines down to the workers.
Feedback is expressed upwards via the reporting lines. There may be variations in this type, from company to
company, but the basic structure should be identical to the one shown in Figure 3.

MANCOSA 24
Principles of Project Management

The explanation that this method is most used is that it is relatively easy to understand and the reporting lines are
straightforward. Every person in the hierarchy must report to a primary supervisor. The functional structure is the
conventional structure and shape in which most organisations are designed.

Chief Executive Officer

Functional Manager 1 Functional Manager 2 Functional Manager 3

Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

Figure 3 – Functional Project Organisation

A negative aspect, however, is that this form may be too time-consuming (and less flexible) for today's rapidly
changing business environment. This arrangement is also not necessarily well suited to organisations that
specialise in projects, as project managers typically have little control.

For a large organisation, the project manager can have the title of project coordinator and basically perform the
position of the clerk rather than the manager. A lot of control lies in the hands of the practical supervisors, and the
project manager will usually have to seek approval from the relevant department before action can be taken. For
example, prior to procurement of products or payment by contractors, approval would have to be obtained from
the financial department.

Oosthuizen and Venter (2018:71) explains the advantages and disadvantages of operating within the functional
organisational structure:

Advantages:
 Stability – employees are located within their departments, which minimises change and decreases
movement of employees and improves organisational stability.
 Flexibility – temporary assignments of work can easily be facilitated, and the use of specific skills can be
easily managed using various employees within the functions.

25 MANCOSA
 Principles of Project Management

 Focused expertise – the use of the specific, skilled employees facilitates the focus of appropriate skills
and expertise on critical project tasks. Expertise can also be shared across multiple projects.
 Easy transition to production – employees implements the project and the continue to deliver within their
functional areas. This facilitates business continuity and efficiency.
 Ability to change – employees are readily available and can be used at short notice to deliver tasks that
may need urgent attention and delivery.
 Employee advancement facilitated – employees could learn new skills. Employees are managed and
promoted, using existing structures and processes, which facilitates performance monitoring and
development.
 Less costly – internally recruited employees are less costly than external consultants.

Disadvantages:
 Easily distracted – project responsibilities are often seen as secondary to functional responsibilities.
 Difficulty integrating – employees struggle to adapt to a project environment when used to very functionally
focussed roles.
 Time consuming – key employees are now focussed on project delivery and therefore removed from the
business, reducing its capacity and capability.
 Lack of ownership – several projects may decrease levels of ownership as employees are thinly spread
and are less focused and accountable.
 Reduced capacity – functional areas now need to continue with day to day activities as well as facilitate
project delivery. The reduction in capacity can negatively affect performance.
 Quality decreases – offloading of less experienced employees to project delivery by functional manager
reduces project quality and may extend delivery timescales and even reduce scope.
 Poor communication – project delivery is hindered as bureaucracy, silo and “ivory tower” mentalities, and
open/honest communication.

1.6.2 Pure Project Organisation

The Pure Project Organisation is primarily structured to serve organisations involved in the execution of company
projects. It will include a company that has software and engineering departments that develop applications for
clients in the project process.

Figure 4 indicates that the Project Manager is in a position of authority and has the power to approve project
budgets and has the title of Program Manager or Project Executive. It is also expensive to delegate permanent
roles to team leaders because teams do not always have work to do. Many companies are working on this issue
by employing staff on a contractual basis for the duration of a specific project. Contractors are compensated only
while they work, but since they are not permanent workers, they can be less loyal to the organisation.

MANCOSA 26
Principles of Project Management

Project Manager

Discipline 1 Discipline 2 Discipline 3

Staff Staff Staff

Staff Staff Staff

Staff Staff Staff

Figure 4 – Pure Project Organisation

Oosthuizen and Venter (2018:74) explains the advantages and disadvantages of operating within a project
organisational structure:

Advantages:
 Simple, fast and flexible – project teams are autonomous and operate without distractions
 Cohesive – a common goals means that the project team can work together and are driven to achieve
this goal.
 Cross-functional integration – Specialists can work together and can achieve efficiencies while supporting
other members in the process.
 Communication benefits – communication is faster and more efficient with a focussed audience.
 Accountability and authority – the project manager has responsibility and accountability for the project,
which allows for focussed and clear recruitment/selection decisions.

27 MANCOSA
 Principles of Project Management

Disadvantages:
 Expensive – project managers may purchase and stockpile resources.
 Internal divisions and conflict – competition with other projects and/or managers means that business
continuity is compromised.
 Limited functional and technological experience – employing project team members who lack seniority
and experience may limit functional expertise.
 Complicated and difficult post-project handover and transition – the transfer of project specific skills and
knowledge, i.e. operating a machine, may be difficult and time consuming.
 Effort and resources are duplicated – each project duplicates significant effort and resources resulting in
overstaffing and cost increases.
 Identifying projects override organisation goals – the project takes on a persona of its own and starts
driving the organisation instead of supporting the overall business objectives of the organisation.

1.6.3 Matrix Project Organisation

The composition of the matrix structure as a combination of functional and project structures. The matrix structure
can take one (1) of three (3) types, depending on the balance of power between project managers and functional
managers. Figure 5 below shows the structure of the matrix.

CEO

Functional Functional Functional

Manager 1 Manager 2 Manager 3

Staff Staff Staff

Project
Figure 5 – Matrix Project Organisation

MANCOSA 28
Principles of Project Management

 Weak form - If the matrix structure is the middle way between the functional structure and the project
structure, the weak form matrix is primarily centred on the functional structure. This means that the heads
of the functional divisions have more control and authority than the project managers do. Project
managers have a role like that of the project manager in the functional framework.
 Strong form - The strong form matrix is the opposite of the weak form, because in this system, project
managers have authority – equivalent to the level of control enjoyed by project managers in the project
structure.
 Balanced form – As anticipated, this type is the middle ground between project managers and functional
managers, and they share power and authority.

Oosthuizen and Venter (2018:75) explains the advantages and disadvantages of operating within the matrix
organisational structure:

Advantages:
 Project manager accountability – accountability for project delivery lies with the project manager, although
employees still report to their functional managers.
 Resource availability – resources are more freely available given the ability to hire outside the organisation
to supplement a project resource pool.
 Post-project employment – all employees are affiliated to a functional department and therefore have
employment after the project is delivered.
 Efficient – allows for simple, fast and flexible project delivery, as well as improving communication and
making reporting lines clear for all team members.
 Project focussed – the project manager facilitates a clear project focus as no functional distractions cause
confusion amongst team members.
 Transition to production easier – employees have an excellent understanding of the functional processes
and therefore can reduce the complexity of the transition and delivery to production.
 Flexible – the structure is very flexible and draws on positives from other structures.

Disadvantages:
 Conflict – employees report to a functional head and work on a project, which can cause conflict when
resources are scarce.
 Stressful – the goals of the functional organisation can be conflicting or different to the project goals.
 Slow – employees need to fulfil roles of their functional areas, as well as deliver project goals and
objectives.
 Accountability – employees struggle to manage the dual accountability between their day and jobs and
their responsibilities to the project.

29 MANCOSA
 Principles of Project Management

 Project Control – when managing various projects and business-as-usual activity, the project and
functional managers are responsible for the allocation and management of resources in order to efficiently
and effectively control the delivery of the organisational objectives.

1.6.4 An Ideal Project Organisation

The term “Ideal” is a subjective word and it can anything that we want it to mean. People will often ask “what does
it take to create an Ideal Organisation. This is a fair question. ‘Ideal’ for some may be above or below expectations
for others, which is why it’s important to have clearly define and understand the term before you begin.

Pure
Project
Matrix
OBS OBS

Functional
OBS

Functional Manager
POWER

Level of success increases as power moves from functional to project manager

Figure 6 – Selecting the right Organisation Breakdown Structure

MANCOSA 30
Principles of Project Management

Figure 6 depicts selecting the right organisational breakdown structure which will be suitable for your organisation.
There is “no one fits all model”. Selecting the right organisational structure is essentially a balancing act between
addressing the customers requirements, the project requirements (scope), the team requirements, the stakeholder
requirements and just as importantly, the individual’s requirements. On some projects, the customer may request
or instruct the contractor to use a certain type of project management. Selecting an organisation structure to
manage a project depends on a number of dependent and independent factors such as:

 Project Scope
 Project Size
 Project Duration
 Risks Involved
 Company Culture
 Resource (Manpower, Budget, Cashflow)

PRACTICAL APPLICATION
Suppose you work at an organisation that plans to run a project to automate
certain factory floor processes.
 What do you think is the best organisational structure that the company
should implement?

1.7 Projects in Organisations

Projects impact organisations in several ways. It is important to evaluate the impact that the project would have on
the organisation and vice versa.

1.7.1 The Three Spheres Model

Schwalbe (2015) introduces three (3) business models for system management. Businesses can be divided into
people; financial and technical spheres, and we need to research and evaluate the effect of the project on each of
these fields. As seen in Figure 6, this can be expressed in the form of questions. The questions asked in the
diagram are merely examples; the actual questions that the project manager may ask would depend on the project.

31 MANCOSA
 Principles of Project Management

Figure 7 - The Three Spheres of Systems Management.

Adapted from (Schwalbe, 2015:46)

 Business Sphere
According to the King IV report on corporate governance published in 2016 by the Institute of Directors in
Southern Africa (IoDSA), organisations should submit an Integrated Report providing a reliable,
comprehensive and holistic overview of the organisation from both a financial and a non-financial perspective
(Institute of Directors in Southern Africa, 2016:48). A crucial feature of comprehensive reporting is that
organisations will be able to explain the effect of their activities on all three fields in which they work, namely
economic, social, and environmental. Such three (3) elements shall be referred to as the Triple Bottom Line.
Essentially, King III and King IV recognise that organisations cannot separate their business objectives and
derive profitability from them.

MANCOSA 32
Principles of Project Management

Benefits, such as securing potential projects or strengthening procedures, must be weighed. Upgrading
computer networks would have no clear financial benefit for the company – it would be cost-effective. By the
end of the day, though, demand should have risen, leading to higher profits. In such a scenario, the issue
would usually be whether the organisation could afford to subsidise the cost.

 Technology Sphere
Technology should be the means to an end, not the end itself. This means that the technology we are
purchasing should be justified in the sense that it will eventually ensure a positive cash flow or be more
effective. For example, an executive may be fascinated by the beautiful appearance of the new Windows ®
operating system. He / she then initiates a project to install an operating system on all of them. Unfortunately,
the hardware is a little out of date and the machines would not be able to use any of the display features of
the new operating system, which is why the executive decided to update the new operating system first. In
this situation, the project will not be pursued because the new technology would bring little significant value to
the client and will not warrant the cost of the project.

 Organisational Sphere
Organisations consist of individuals, a fact that is sometimes ignored. Projects can affect people; therefore,
project managers should never underestimate the possible opposition they can face if the project fails to obtain
support from workers. Often workers are resistant to change for several reasons, such as bad experience with
a previous project, concerns as to whether they have the requisite improvements. People are normally
confident with things they know, so they may be afraid of an unfamiliar method. This is discussed in the
management of transition, which needs to be handled as part of most projects.

When we look at the previous example, we may infer that the project would also have a huge effect on workers
who will have to adjust to the new operating system. The value of the upgrade would have to be weighed by
the executive against the cost of training employees. He / she will also need to examine their attitudes towards
the proposed project in order to decide if they will support his / her decision. When there is good support for
an update, it might also be agreed that all equipment must be updated to accommodate a software upgrade.

PRACTICAL EXAMPLE
The project team consists of seven (7) staff members. Two (2) members of
the team have powerful, extroverted personalities, and the project manager
expects future clashes between them. The team leader will be chosen, and
there is a good chance that when the announcement is made, the group will
be split into two groups. How does the project manager prevent a
confrontation between the members of the team?

33 MANCOSA
 Principles of Project Management

1.7.2 The Impact of Legal Issues, Ethics and Professionalism in Projects

The project manager and project management will understand the value of ethical issues in any aspect of the
project's operation, with further focus on how ethics are essential to the successful execution of most projects. The
definition of ethics is important for the well-being of many stakeholders, including the effective company itself,
project managers, staff, clients, vendors, sponsors and members of society, who have an influence on the activity
of the project. PMI Teacher (2016) mentions, but is not limited to, the following criteria for organisations participating
in projects:
 How to deal with political and social legal problems within and outside organisations.
 Transmitting principles and expectations to stakeholders.
 Ethical issues relating to insurance, conflicts of interest and procurement.
 To discuss legal issues, including whistle blowing.
 Trust competition in multinational ventures.
 Professional growth of project manager and project manager

Various issues, such as health, safety, and legal implications, are also important in projects, depending on the
industry and the project environment. According to PMI Instructor (2016): these can include:
 Compliance issues relating to project management and contracts:
Considering the selection of examples of project procurement contracts, evaluating contracts, determining
how each of them deals with specific procurement problems, and suggesting how the contract can be an
instrument by which the project manager can better organize and control project resources;
 Labour law in the sense of the project:
Evaluate common labour problems that can affect projects across the regulatory environment and discuss
how project managers should use different tools, methods, and strategies to overcome these constraints
positively throughout the project.
 Implications for health and safety.
 Compliance with the standards and regulations.
 Data security and privacy:
In the context of a particular project background and strategy, examine where information and information
systems may be vulnerable to such risks, or where the privacy of stakeholders may be compromised by
the handling of information, and propose best practices for protecting data security, access and privacy
during the project.

MANCOSA 34
Principles of Project Management

Achieving project success:

 To complete the project and produce the product within time limits and costs, you must:
o Do the correct things
o In the right sequence.
o Yeah, get them right.

 This calls for careful preparation. This preparation is a progressive process, as mentioned above. It
must:
o Continue through all phases of the project.
o To increase the details.

 To help put plans on paper and keep them up to date, there are many different methods that you can
use. A variety of automated scheduling systems are also available to support.

1.8 Introduction to Knowledge Areas and Project Lifecycle

Like in other things in life, projects go through a lifecycle from their birth as a concept to their final completion when
the project is handed over. Newton (2015) identified the projects as temporary structures set up with an objective
of producing an identifiable end-product. Therefore, the programs will have an observable life period or life cycle.

1.8.1 Project Management Body of Knowledge

Oosthuizen and Venter (2018:20) states in the “Food for Thought” that the Project Management Institute’s Project
Management Body of Knowledge (PMBoK) is not considered to be a methodology per se. It is rather seen to
provide global standards,which reflect the continuous and ongoing development of the Project Mangement
Profession. As such, it falls short of achieving the status of methodology, since it is not prescriptive in terms of
precise input, output and performance criteria, not does it stipulate actual roles as well as how processes might
actually be applied. It is however, argued that organisations might “tailor” a methodology based on the PMBoK.

The PMBoK, which is in its 6th edition, sets out ten knowledge areas as depicted in Table 1 below:

Table 1 - Project Management Knowledge Areas

Knowledge Area Description
Integration Management Integrate management processes to integrate components from certain areas
of expertise in order to effectively complete the project.
Scope Management Scope applies to all the work required to complete the project. Scope lists and
describes what is removed from the project. The scope statement is a vital
resource to direct the project manager and team through the deliverables of the
project. The scope of the project must be monitored during the execution phase;
the ever-expanding list of deliverables reduces profits and places undue stress
on deliverables.

35 MANCOSA
 Principles of Project Management

Knowledge Area Description

Time Management The tasks are structured in an efficient way to accomplish the completion of the
project as quickly as possible. Projects are temporary; therefore, time limits are
necessary for the completion of projects.
Cost Management Projects are designed according to budgets and cost control aims to execute
projects under these constraints. Profit margins are directly related to costs;
thus, the overspent budget does not meet the company's sales and return goals.
Quality Management Quality is linked to the cost. Quality control includes mechanisms to ensure that
the project is performed in compliance with the agreed standards. If the quality
of the workmanship is too high, prices will rise accordingly, and the consumer
may refuse to pay extra for features that were not needed. If the work is of a
lower quality, the client may refuse to sign the project.
Resource Management People are pursuing projects. People tend to be less reliable than other assets
such as machines and materials; resource management therefore requires
creativity and strong relationship building skills.
Communications Communication is the secret to effective people management and the project
Management manager would need to be above-average communicators. Communication
management requires the mechanisms necessary to deliver critical information
in a timely manner to meet the needs of stakeholders.
Risk Management The future is unpredictable, and we can forecast things only within the margin
of error. Project Risk Management includes risk management preparation,
definition, review, response planning and risk reduction processes for the
project.
Procurement Management Procurement may be a challenging job. Not only does the project manager
determine the best prices for supplies and equipment, but also the efficiency of
the manufacturer and the availability and quality of the products must be taken
into account.
Stakeholders Management Project Stakeholder Management requires mechanisms required to identify all
individuals or entities impacted by the project, to evaluate perceptions and
effects on the project, and to establish appropriate management strategies to
effectively involve stakeholders in project decisions and implementation.

Project Management Institute (2017)

MANCOSA 36
Principles of Project Management

These processes are categorised according to the knowledge area and grouped under the followiing five process
groups.

The Initiating Process Group

The initiating process group is where the projects usually begin. It could be a idea that was debated and discussed
over a cup of coffee, or it could be a formal answer to the business concerns posed by the steering committee. It
does not really matter where the project started or how, from the point of view of project management, the Initiating
Process Group focuses on formally receiving authorisation to commence the project.

Such procedures are carried out in order to identify a new project or a new phase of an existing project by gaining
authorisation to start a project or phase. Processes within the Initiating Process Group are as follows:
 Developing a charter – developing a charter is all about giving a name to the project, formalising what needs
to be done and whether or not there is approval for the project.

 Identify stakeholders – this process is all about identifying everyone who will be involved or be affected by the
project either negatively or positively. This could be quite a long list so it’s best to spend some time on it and
get it right. It’s a bit late when you are busy executing your project to suddenly realise that you forgot to consult
an important stakeholder.

Planning Process Group

The planning process group is all about preparation and making sure that when it is time for the strategy to be
executed, you have been talking about all that needs to be accomplished. As you can imagine, there is a broad
process group that works to ensure that the project is a success by preparing it in adequate detail.

The planning phase will take the outputs from the initiation phase (charter and stakeholder analysis) and will
establish a clear description of what is to be delivered and how it is to be delivered. When this process is finished,
the final action plan will be ready to be enforced. At the time the planning process is finished, both details and
preparation will lead to the overall project management or reference plan that will be used in the execution phase
of the project.

Executing Process Group

The Executing Process Group is all about the actual execution of this process. When approved to continue with
the project , the project management plan established during the planning process will be used to implement /
execute the project.

37 MANCOSA
 Principles of Project Management

Monitoring & Control Process Group

The Monitoring and Control Process Group is committed to ensuring that the project is on schedule and in
accordance with the baseline plan. When changes to the plan are made, this process group shall ensure that these
changes are handled and enforced in a standardised manner. This process group operates parallel to the execution
process group.

Closing Process Group

The Closing Process Group is the last of the project lifecycle phase groups. It is all about getting the project or
process to a close, handing over the deliverables and terminating the contracts.

1.8.2 The Project Life Cycle

Oosthuizen and Venter (2018:9) states that most projects go through similar stages from start to finish. Various
project life cycle models are in existence, especially those developed for specific industries or types of projects. In
this section, we introduce the generic project life cycle (Figure 8) adapted from Oosthuizen and Venter (2018:9)
summarising the typical project stages such as:
 Initiating and Defining – the first stage is when a project is formulated and launched at a high level of
management, and the main actors are committed to it.
 Planning – the second stage starts after the initial commitment has been formed and this stage involves
comprehensive preparation, goal setting and ends with all stakeholders supporting the detailed plan.
 Executing – the third stage consists of two main groups of activities: on the one hand, approving and
enforcing and, on the other, tracking and managing the work carried out in order to allow the customer to
accept the results of the project (some lifecycles divide these groups as two steps).
 Delivering and Closing – the final stage covers all activities related to the formal approval of the findings
and the completion of the project, including factors such as lessons learned, reassigned personnel and
recognised contributions.

Oosthuizen and Venter (2018:9) refers to the project life cycle as a “logical sequence of activities to accomplish
the project’s goals or objectives”.

These project tasks and activities need to be set up and then organized into stages so that project manager and
project team can easily plan, coordinate and execute resources for each activity. The project manager can also
objectively measure the achievement of the objectives and explain its decision to continue, correct or cancel the
project while applying control during the execution stage. Figure 7 refers to a typical example of a project life cycle.

MANCOSA 38
 Principles of Project Management

Stage 1: Stage 2: Stage 3: Stage 4:

Initiating & Defining Planning Executing Delivering & Closing

 Define problem
and cause  Formulate
 Analyse context objectives
 Project transfer
 Set overall goal  Develop  Authorise and
 Release
 Formulate schedules & implement
resources
specification budgets  Monitor and
 Lessons learned
 Establish tasks  Establish control
 Closure
and resource needs
responsibilities  Identify risks

Time

Start End

Figure 8 - Project Life Cycle

Oosthuizen and Venter (2018:10)

Oosthuizen and Venter (2018:10) explains that diverse project management tools and methodologies exist in the
different project life cycles stages:

(i) Project Initiating & Defining

This is the first step in the life cycle of project management, where the project is planned when a need has been
identified or a project is chosen from a project list. Project selection involves a set of assessments such as financial
and organisational plan alignment. The scope of the selected project and plan is defined. This stage ends when
the project is approved or endorsed by the organisation to proceed to the next stage. The project manager is
appointed and he/she in turn assigns the team members based on the skills and experience required for the specific
project.

 Project Selection
In most instances, it is not possible to undertake all of the projects that an organisation would like to due to
resource constraints (usually skills, time and money). A choice must be made on which project to undertake.
There are various methods to select projects in organisations. These include both financial and non-financial
methods as will be discussed in the following paragraphs.

39 MANCOSA
 Principles of Project Management

o Projects and Organisational Strategy

Oosthuizen and Venter (2018:39) clarify that in determining how a company can gain a competitive advantage,
strategy is central. Plan can be converted into an organisational plan that is unique to an organisation, so
organisational strategy refers to what objectives the organisation wants to achieve and how these goals can
be accomplished.

Every activity done by the organisation, is guided by strategic choice or policy. This strategic choice concerns
how the company pursues the desired goals and objectives (Oosthuizen and Venter, 2018:42). Consulting
with the company to decide whether chosen tasks align with the goals and objectives of the organizations
makes sense for the project manager.

o Project Feasibility Studies

In some instances, before a project can be undertaken, a feasibility study must be performed. The feasibility
study determines whether a project or a solution to a problem is feasible to prevent wasting many months of
effort and many thousands or even hundreds of thousands of Rands in cost if the project is too large, too
uncontrollable, or simply impossible to carry out. The feasibility is a miniature systems analysis and designs
effort that entails an exploration of alternative design options and the analysis of the costs and benefits of each
alternative.

Oosthuizen and Venter (2018:48) suggests that the next move is to consider whether the project meets any
predetermined financial criteria once the company has established that potential projects can help them
achieve their strategic goals. Financial criteria may include Payback Analysis, Net Present Value (NPV) and
Internal Rate of Return (IRR).

o Payback Analysis

The payback period is essentially a measure of how long it takes to repay the organization's investment in the
project (Oosthuizen and Venter, 2018:48). The company agrees on a reasonable period of time and it is nice
if the project earns the investment back within that timeframe. When it takes longer to pay back the investment
than the stated period, it may not be a good idea to undertake that project. The shorter the duration of payback,
the better for project and organisation.

MANCOSA 40
Principles of Project Management

The most widely used payback calculation is when cash flows into a project are the same over the project's life
each year. In this case the formula used for estimating the time of payback is as follows:

Payback = Initial Investment

Net Annual Cash Inflows

Let’s assume an initial total investment of R500,000 with an annual cash inflow of R150,000 The payback period
would simply be:

Payback = R500,000
R150,000

Payback = 3,33 years

The payback period indicates the time in months or years, in which the costs associated with the project will be
recouped (paid back) by revenue streams from savings and benefits. Most organisations have specific payback
targets that must be met before a project is approved or authorised.

Oosthuizen and Venter (2018:49) draws our attention to the two disadvantages of the payback period model in
project selection.
(i) It does not consider the time value of money, i.e. two projects might have the same payback period,
but one project might bring in more money and quicker than the other.
(ii) The payback period does not consider the cash flow after the payback period has been completed
and is only concerned with the break-even point, without considering future cash flows beyond this
point therefore, the two projects might have the same breakeven point, but one project might
generate more money for the organisation in the long term.

o Net Present Value (NPV)

The NPV is a sophisticated financial analysis technique that discounts cash flows expected over the life of the
project, to give an idea of the viability of the project (Burke, 2014). NPV calculations find the present value of
expected net cash flows of a project, discounted at the cost of capital (the interest rate at which the organisation
can borrow money) and subtract from the initial cost outlay of the project.

41 MANCOSA
 Principles of Project Management

The formula for Net Present Value:

NPV = value in year t

(1 + r)t

Where r = discount rate, t = number of years.

The NPV analysis can be laid out in the form of Table 2 as shown below:

Table 2 - Example of Net Present Value Calculation

PROJECTED CASH FLOW IN RANDS
YEAR NET CASH INFLOW DISCOUNT FACTOR PRESENT VALUE
0 (10000) 1.000 (10000)
1 3000 0.9091 2727.30
2 3000 0.8264 2749.20
3 3000 0.7513 2253.90
4 3000 0.6830 2049.00
5 3000 0.6209 1862.70
TOTAL 5000 1642.10

Adapted from own source.

In this example, a project will incur a R10 000 expenditure in Year 0 and will have a R3 000 cash inflow each
year for 5 years.

The discount factor can either be obtained from Discount Tables, or can be calculated from the formula:

Discount Factor = 1
(1 + r)t

Where: r = discount rate (interest rate at which money can be borrowed), t = period in years.

In the example above, the project would realise a positive cash flow of R1642.10 over the 5-year period. If the net
present value is positive, the project should be accepted; if it is negative, it should be rejected. If two projects are
mutually exclusive, that means, only one or the other project can be undertaken, not both, and then the project with
the higher net present value should be undertaken.

MANCOSA 42
Principles of Project Management

A negative NPV means that the costs of the project outweigh any future benefits, anticipated from the project in
the future, and therefore the project will not be viable.

In summary, the decision-making criteria using NPV are as follows:

 If the NPV is greater than or equal to zero Rand, accept the project (NPV ≥ 0)
 If the NPV is less than zero Rand, reject the project (NPV < 0).

Although the formula for NPV calculations is very complex and difficult to use manually, the calculations themselves
can be performed very simply using most financial calculators, as well as by using the formulas built into all of the
popular computer spreadsheet programs such as Microsoft Excel. The key is to interpret the results correctly.

o Internal Rate of Return (IRR)

Burke (2014) explains that the internal rate of return is a financial analysis technique that gives some idea
of the ‘profitability’ of the project. The Internal Rate of return (IRR) is the discount rate where the present
value of cash inflows from the project exactly equals the initial investment.

Essentially, the technique works by setting a “hurdle rate” for the project. For example, management might
require any project to generate a 15% return on the money invested in the project. The 15% is the hurdle
rate. If the IRR analysis returns a rate greater than 15%, then the project can be considered as being viable.
A project that gives an IRR value below the hurdle rate should not be considered unless there are very good
strategic reasons for the project to go ahead. The same formula for Net Present Value is also used for
determining the Internal Rate of Return; it is just used in a different way. In determining the NPV, the
discount rate is specified, and in calculating the IRR, the NPV is set to = 0, and the discount rate is
calculated.

o Weighted Scorecard
In addition to the abovementioned methods of selecting a project, is the weighted scorecard (Oosthuizen
and Venter, 2018:58). The organisation will consider the financial and non-financial criteria which will assist
to provide the managers with a clearer idea of which project/s to select from a set of possible projects. In
practice, this approach to project selection is simple and effective especially where qualitative factors have
been given weights, according to their perceived performance.

ii Planning Project Tasks

Once the project is approved for proceeding to the next stage, the planning stage may begin. During this stage
of the lifecycle, all key aspects of the project are identified. It usually involves allocating resources, verifying and
raising the level of scope and identification, compiling the project schedule and developing the project’s risk,
quality and communication documents. Once all the criteria of the project have been identified, the project will go
to the next stage for review and approval.

43 MANCOSA
 Principles of Project Management

iii Execution and Controlling of the Activities of the Project

Upon evaluating, accepting and approving the project specifications, it reaches the implementation stage of the
project. The two (2) most important issues in this stage is to ensure that project activities are properly implemented
on the one hand and on the other hand that project performance is monitored and controlled. During this stage,
the project manager and his / her team execute the expected solution in order to solve the problem stated in the
project specifications and to fulfill the goals and objectives of the project. This is usually where the amount of effort
increases as compared with the previous levels. In terms of cost, time and quality, the project is closely managed
to produce the deliverable according to the specifications and demands of the costumer without violating the
parameters of the project. At the end of this stage, the costimer usually checks and accepts the deliverables.

iv Project Delivering Closure

This is generally by far the least performed stage of the life cycle of a project. This is the stage where the project
finishes after the customer has approved the deliverables of the project. Assets are reassigned, lessons learned
are collected and stored, and the benefits realized are some of the main activities of the project life cycle's closing
and realisation phase. The closure stage is further characterised by the development of a written formal project
review report.

ACTIVITY
Watch the video clip below to learn more about the lifecycle of the project:
Project Management. 2014. The Typical Phases in Project Management. [Online
Video]. Available at [Link]

ACTIVITY
Consider the project listed below. Focusing on one (1) step of the project, briefly
define at least one (1) key operation in each process community.

MANCOSA 44
Principles of Project Management

Use your own project. Write your

reply in the space given below:

Project:
Monitoring
Initiating Planning Executing & Closing
Controlling

Phase Selected:

Name of the phase:

Initiating:

Planning:

Executing:

Monitoring and Controlling:

45 MANCOSA
 Principles of Project Management

Closing:

1.9 Summary
The need for project management has been driven by businesses that have realised the benefits of organising
work around projects and the crucial need to communicate and coordinate work across departments and
professions. Many organisations do not employ full time Project Managers and it is common to pull together a
project team to address a specific need. Taking a role in a project team can be an excellent learning opportunity
and can improve a person’s career profile. Projects bring about change and project management is recognised as
the most efficient way of managing such change. The next section will deal with project integration management.

MANCOSA 46
Principles of Project Management

REVISION EXERCISE
1. Choose an organisation of your choice, map its structure and provide an analysis of
whether the organisation’s strucuture is functional, matrix or project based.

2. Enter the following crossword puzzle on the principles of project management:

Copy the first letter of each word completed in the space provided below and then use the letters to create
as many project managements terms and concepts:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

47 MANCOSA
 Principles of Project Management

Terms/ Concepts:
1. 2. 3.

4. 5. 6.

7. 8. 9.

10. 11. 12.

13. 14. 15.

16. 17. 18.

19. 20. 21

22.

CASE STUDY
Read the case study on Clark Gates Manufacturing and answer the questions that follow:

Clark Gates Manufacturing

BACKGROUND
By 1999, Clark Gates Company had grown into the third largest supplier of Gates for both commercial and home
use. Competition was fierce. Consumers would evaluate Gates on artistic design and quality. Each Gate had to be
available in at least five different colours. Commercial buyers seemed more interested in the cost than the average
consumer, who viewed the Gate as an object for security, irrespective of price.

Clark Gate Company did not spend a great deal of money advertising on the radio or on television. Some money
was allocated for ads in professional journals. Most of Clark’s advertising and marketing funds were allocated to
the two semi-annual home and garden trade shows and the annual builders trade show. One large builder could
purchase more than 5-10 gates for one newly constructed hotel or one apartment complex. Missing an opportunity
to display the new products at these trade shows could easily result in a six to twelve-month window of lost revenue.

MANCOSA 48
Principles of Project Management

CULTURE
Clark Gate had a non-cooperative culture. Marketing and engineering would never talk to one another. Engineering
wanted the freedom to design new products, whereas marketing wanted final approval to make sure that what was
designed could be sold. The conflict between marketing and engineering became so fierce that early attempts to
implement project management failed. Nobody wanted to be the project manager. Functional team members
refused to attend team meetings and spent most of their time working on their own “pet” projects rather than the
required work.

Their line managers also showed little interest in supporting project management. Project management became
so disliked that the procurement manager refused to assign any of his employees to project teams. Instead, he
mandated that all project work come through him. He eventually built up a large brick wall around his employees.
He claimed that this would protect them from the continuous conflicts between engineering and marketing.

THE EXECUTIVE DECISION

The executive council mandated that another attempt to implement good project management practices must occur
quickly. Project management would be needed not only for new product development but also for specialty products
and enhancements. The vice presidents for marketing and engineering reluctantly agreed to try and patch up their
differences but did not appear confident that any changes would take place.

Strange as it may seem, nobody could identify the initial cause of the conflicts or how the trouble actually began.
Senior management hired an external consultant to identify the problems, provide recommendations and
alternatives, and act as a mediator. The consultant’s process would have to begin with interviews.

ENGINEERING INTERVIEWS
 “We are loaded down with work. If marketing would stay out of engineering, we could get our job done.”
 “Marketing doesn’t understand that there’s more work for us to do other than just new product development.”
 “Marketing personnel should spend their time at the country club and in bar rooms. This will allow us in
engineering to finish our work uninterrupted!”
 “Marketing expects everyone in engineering to stop what they are doing in order to put out marketing fires. I
believe that most of the time the problem is that marketing doesn’t know what they want up front. This leads
to change after change. Why can’t we get a good definition at the beginning of each project?”

MARKETING INTERVIEWS
 “Our livelihood rests on income generated from trade shows. Since new product development is four to six
months in duration, we have to beat up on engineering to make sure that our marketing schedules are met.
Why can’t engineering understand the importance of these trade shows?”

49 MANCOSA
 Principles of Project Management

 “Because of the time required to develop new products [4–6 months], we sometimes have to rush into projects
without having a good definition of what is required. When a customer at a trade show gives us an idea for a
new product, we rush to get the project underway for introduction at the next trade show. We then go back to
the customer and ask for more clarification and/or specifications. Sometimes we must work with the customer
for weeks to get the information we need. I know that this is a problem for engineering, but it cannot be helped.”

The consultant wrestled with the comments but was still somewhat perplexed. “Why doesn’t engineering
understand marketing’s problems?” pondered the consultant. In a follow-up interview with an engineering manager,
the following comment was made:

“We are currently working on 15 different projects in engineering, and that includes those which marketing
requested. Why can’t marketing understand our problems?”

Question
Critically discuss the critical project management issue and what can be done about it?

MANCOSA 50
Principles of Project Management

Unit 1 - Answers to Activity and Think Point Questions

THINK POINT ONE (1)

Answer:
While each project has its own specific set of constraints, all projects have certain common constraints. Some
scholars refer to these inherent constraints as the Triple Constraints of Project Management. In this package, both
triple and quadruple constraints are studied.

PRACTICAL APPLICATION ONE (1)

Answer:
Students should define the importance of project management in the context of various organisational structures
and be able to clarify the significance of effective project management approaches in a given context or project.

PRACTICAL APPLICATION TWO (2)

Answer:
The project manager negotiates with another manager to name one (1) individual as the team leader of another
group and the unity group remains intact.

ACTIVITY ONE (1)

Answer:
Students to demonstrate knowledge learnt by describing one main activity involved in each process group.

CASE STUDY ONE (1)

Answer to the Case Study
The problem is communication, prioritisation and organisational structure. It will be necessary to bring Marketing
people to talk to Engineering and make them understand the overall goal of the firm. This can be done in the form
of a team building exercise. They must all work together knowing the vision, mission and goals of the firm. They
must realise that if they do not work together, that will threaten the existence of the whole firm. They may have to
consider re-structuring to have a matrix organisational structure because it allows staff to stay in their functional
units but working in a project under a project manager. That way staff from the two functional areas will know what
each department does. Communication is important between people. Working in silos does not work for a common
good. Staff must learn how and what to prioritise.

51 MANCOSA
 Principles of Project Management

Unit
2: Project Integration Management

MANCOSA 52
Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

2.1 Introduction  Introduce topic areas for the unit

 Explain key best practices of project planning

2.2 What is Project Integration  Discuss the key principles of project integration
Management? management

2.3 Project Charter  Develop a project charter using appropriate components for
a project

2.4 Developing a Project Plan  Develop a project plan for a project

2.5 Direct and Manage Project Work  Describe a method to direct, manage and control project
2.6 Monitor and Control Project Work work

2.7 Perform Integrated Project Control  Describe perform integrated project control

2.8 Project Closure  Explain project closure

2.9 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in
Perspective. 2nd Edition. Oxford University Press. Chapter 1 and
2.

53 MANCOSA
 Principles of Project Management

2.1 Introduction
Within this unit, the concept of project integration is introduced, defining the essential role of the project manager
as the person who not only leads the initiative to develop a comprehensive project plan but also implements
processes that result in the effective execution of the project plan. Concepts will be introduced, including the
development of a project charter, a preliminary scope documenting high-level project strategy, milestones,
deliverables, and estimates for stakeholder, customer, and sponsor approval.

This unit also includes the processes and strategies used in the development of a project management plan, which
tracks the steps required to identify and organize tasks, reviews project deliverables and maintains monitoring and
management of costs, schedules and improvements to the project. This also involves evaluating how adjustments
to a specific aspect will affect how project managers can adapt their strategies, organize their responses and
convey the results to stakeholders.

2.2 What is Project Integration Management?

Project integration requires processes that include, in turn, a roadmap for each project process community.
Oosthuizen and Venter (2018:26) states that “Project Integration Management is a critical aspect of project
management, which is concerned with ensuring coordination amongst different aspects of the project.” The authors
suggest that integration management can be seen to play out at multiple levels:

 Process integration – project managers are concerned with coordinating the different processes and
activities that make up a project. It is essential for the project manager to ensure that all processes are
coordinated in order to achieve the goals of the project.

 Skills integration – projects are delivered according to plan and within the triple constraints of time, cost and
scope. It is necessary for project managers to integrate both “soft” and “hard” skills associated with leadership.
This will be further explored later in the module guide.

 Strategic integration – project managers need to ensure that the project’s objectives are aligned and
integrated with the overall strategic objectives of the organisation. This is important aspect of both the project
selection process as well as portfolio management.

 Context integration – project managers need to be keep abreast of new developments and trends in the field
of the project management. They must be mindful of the various issues that could impact the project success,
for example, new technologies could facilitate better communication and project planning.

MANCOSA 54
Principles of Project Management

 Complexity and integration – projects and project processes are complex by nature. The project manager
should be cognisant that the interactions between the processes and project team needs to be carefully
managed when planning a project.

ACTIVITY
Consider the example of the project given below, and then give at least
three (3) examples of the project that you might find matching each
statement:

Project: Organising a college birthday celebration event.

Assumptions: Make your own assumptions about the details/ specifications of the project.

Integration management is required

when the processes interact.

Identify, combine, unify and

coordinate different processes /
activities and manage
interdependencies.

2.3 Project Charter

Project charters may vary between projects and organisations, but most project charters will at least provide
enough detail to explain what the project is all about, how much it is expected to cost, and what the advantages
are for the sponsor and/or the organisation.

The first process that you are expected to undertake in any project is to develop a project charter for the project to
be formally approved. Ideally, the sponsor should develop a charter, but it is usually the project manager who
develops the project charter on behalf of the project sponsor. The process of "developing a project charter" is
located in the Integration Knowledge Area and is conducted during the Initiation Phase.

What is a Project Charter?

Oosthuizen and Venter (2018:115) explains that a “project charter is a document that appoints the official project
manager and grants him/her the authority to manage the project”. It can also be argued that the project charter is
the method of creating a document that officially authorises the creation of a project and gives the project manager
the authority to use organizational resources for project activities.

55 MANCOSA
 Principles of Project Management

What Should the Project Charter Contain?

 Project title
The title or name of the project is given. Many organisation’s use unorthodox names to avoid giving away what
they are creating as a means of protection and to create a sense of exclusivity for the team.

 Purpose or justification for the project (Business case)

List the reasons why projects could come into existence.

 High level description of the project (Scope Statement)

This section provides a high-level description of what the project is all about. Usually, it includes several nouns
describing what is being delivered.

 High level explanation of what the project must deliver (Scope of Work)
This is expanded to the Scope Statement and gives an overview of what would have to be done to reach the
scope statement.

 A high-level estimate of the required budget

Using past experience and other projects as a guide, a high-level estimation of the projected project costs.

 Projects duration
Organisations require an estimation of how long it will take to schedule and execute on the project's
deliverables so that they can prepare and forecast their cash flow requirements, etc. accordingly.

 Critical milestones
Milestones are usually main project milestones, such as a pre-Christmas product launch. There is no point in
releasing the product after the Christmas season, so that the deadline of 01 November can be set as a
benchmark for completion and launch.

 Potential risks that could affect the project

When there are possible risks associated with the project, they need to be outlined in the Project Charter so
that decision-makers are aware of them and can make informed decisions.

 Stakeholders
A list of possible stakeholders who could be impacted or influenced by the project.

MANCOSA 56
Principles of Project Management

 Criteria for success

The requirements for what would represent a successful completion of the project must be defined in the
Charter. It is a significant guide when it comes to closing the project, as these parameters can be used to
determine if the project has been successful. Those are usually calculated in terms of distance, time to
complete, cost to complete, and price.

 Level of authority that the project manager will have

The level of authority that a project manager may have on a project can vary based on their background, the
organisational standard and the complexity of the project itself. Through explicitly outlining the authority of the
project manager to handle the reach, time, expense and quality of the project, misunderstandings and disputes
may be avoided (Oosthuizen and Venter, 2018).

READING
You are encouraged to read the full guest article by Angela Citivella (2020),
“Getting, Organizing and Running a Project”. Available at:
[Link] [Accessed 24
June 2020.

2.4 Developing a Project Plan

The Project Plan is the sum of all other plans incorporated into a single cohesive document that will be used to
carry out the project in compliance with the Project Charter. This expands the Project Charter in even more depth
and incorporates all other information fields and their corresponding plans into one program.

Oosthuizen and Venter (2018:184) states that “the purpose of the project plan is to provide the basis for managing
and controlling the project.” To draw up a project management plan, the project manager undertakes the task of
designing the project management plan. Figure 8 refers to the Project Planning Framework, which is basically the
overarching framework used by many other systems to create a final project plan or reference plan. A critical
phase that is being conducted in the planning process group, which is why it is located in the Integration Knowledge
Area.

57 MANCOSA
 Principles of Project Management

Figure 9 - Project Planning Model

Source: Oosthuizen and Venter (2018:121)

Oosthuizen and Venter (2018:184) states that a typical project management plan (refer to Table 11) makes
reference to some of the common elements of a project plan which includes:

 Time or resource-constraied project schedule

 Communication Plan
 Quality Plan
 Human Resource Plan
 Procurement Plan
 Risk Response Plan

MANCOSA 58
Principles of Project Management

The authors further elobrate that the contents of the project plan will change from project to project as it depends
on the nature and environment of the project being undertaken. Some of the common elements of a formal plan
are illustrated in Figure 9 and Table 11 depicts the purpose of the various documents that make up the overall
project plan.

The resource-constrained schedule integrates most of the outputs of the planning process and contains key
information about the project’s schedule, scope, cost and performance data that will be used to manage and control
the project. The remaining elements of the plan are considered subsidiary plans that complement the resource-
contrained schedule (Oosthuizen and Venter, 2018:184).

Time or
Resource
Constrained
Project Schedule

Risk
Response Communication
Plan
Plan

The Project
Plan

Procurement
Quality Plan
Plan

Human
Resource
Plan

Figure 10 - The Common Elements of a Formal Project Plan

Adapted from Oosthuizen and Venter (2018:185)

59 MANCOSA
 Principles of Project Management

Table 3 - Purpose of the various documents that make up the overall project plan

Components of Description
the Project Plan

Resource- Integrates most of the outputs of the planning process and contains key information about the
constrained project’s schedule, scope, cost and performance data that will be used to manage and control the
Schedule project.

Communication Plan Documents stakeholder’s information needs, the communication approach, and the allocation of
communication responses.

Quality Plan Identify and document the quality specifications and/or expectations for the project and its
deliverables. This plan would also discuss the processes and expertise required to ensure
compliance.

Human Resource Identify and record the duties, obligations, skills needed, reporting relationships and training
(HR) Plan requirements of the various project team members. If team members are seconded to the project
from the functional departments of the project’s parent organisation, the HR plan may need to
address how they are transitioned into the project and then dealt with as their responsibilities
towards the project come to an end.

Procurement Plan Documents the procurement process, the criteria that will be used to choose between different
suppliers and the actions, roles, responsibilities, and timing required to ensure that the procurement
needs of the project are met.

Risk Response Plan Documents the process of managing risks on the project and documents the nature (including
assumptions) and responses to specifically identified risks on the project. Due to the nature of risks
and risk management, the initial risk response plan should be maintained throughout the life of the
project. For this purpose, the initial risk response plan that forms part of the project plan should be
translated into a formal risk register that can be used to manage and control risks over the project’s
lifecycle.

Source – Oosthuizen and Venter (2018:185-186)

The project plan is a live document as it constantly evolves as the project progresses however, this document
needs to define key project parameters, at a high level in the beginning, such as scope, time and costs so that the
project can be baselined and against which it can be measured and reported. While the level of definition of the
project plan increases as the project progresses, any changes to it made through the approved change
management process. Furthermore, the project plan must be updated throughout the project to include new
developments about the project.

MANCOSA 60
Principles of Project Management

ACTIVITY
Watch the video clip below to learn more about the project planning process:
Project Management. 2014. Project Planning Process: 5 Steps to Project
Management Planning. [Online Video]. Available at
[Link] [Date Viewed: 20 August 2019]

2.5 Direct and Manage Project Work

The Direct and Manage Project Work process is exactly what it says. Having completed all the planning, this step
includes the management of the practical work required to accomplish the goals of the project during the
implementation phase of the project lifecycle. It includes the implementation of the project management plan and,
where applicable, the management of improvements to that plan.

The PMBOK Guide (2017) specifies that “Direct and manage project work is the process of leading and performing
the work defined in the project management plan and implementing approved changes to achieve the project's
objectives. The key benefit of this process is that it provides overall management of the project work" (Project
Management Institute, 2017).

2.6 Monitor and Control Project Work

The work of the Monitor and Control Project is carried out at the same time as the execution phase. It is just about
making sure the project is being done in line with the schedule.

The PMBOK Guide (2017) specifies that "Monitor and control project work is the process of tracking, reviewing,
and reporting the progress to meet the performance objectives defined in the project management plan. The key
benefit of this process is that it allows stakeholders to understand the current state of the project, the steps taken,
and budget, schedule, and scope forecasts” (Project Management Institute, 2017).

2.7 Perform Integrated Change Control

Perform integrated change control is a process that helps to monitor how any changes that are made are handled
and enforced if they are accepted. It aims to assess the impact of changes in other areas of knowledge and is
therefore classified within the Integration Knowledge Area. This process is part of the monitoring and controlling
process group.

The PMBOK Guide (2017) specifies that "Perform integrated change control is the process of reviewing all change
requests; approving changes and managing changes to deliverables, organizational process assets, project
documents, and the project management plan; and communicating their disposition. It reviews all requests for

61 MANCOSA
 Principles of Project Management

changes or modifications to project documents, deliverables, baselines, or the project management plan and
approves or rejects the changes.

The key benefit of this process is that it allows for documented changes within the project to be considered in an
integrated fashion while reducing project risk, which often arises from changes made without consideration to the
overall project objectives or plans” (Project Management Institute, 2017). The following framework may be used
to control changes in the project.

 Evaluate projects performance

Evaluation of project output is ongoing within the monitoring and control group or phase of the cycle. Through
constantly reviewing and assessing the project against the Scope Baseline, the need for adjustments to the
Scope Baseline can be detected as early as possible (Project Management Institute, 2017).

 Identify the need for change to the scope

Table 4 describes the changes that may arise as a result of:

Table 4 - Causes for change requests to the Baseline Plan. The PMBOK Guide (2017)

Indicator Action

1 The project is off plan Corrective action required

2 The project is going to go off plan Preventative action required

3 A deliverable is incorrect Defect repair

4 New ideas may be added to the project Updates

 Generate a Change Request

Any stakeholder or team member can generate requests for change. Change requests may be made verbally,
it is best to submit a change request form (Table 13) to formalise such requests and to maintain a record of
changes to the project (Project Management Institute, 2017). Verbal demands which are not formalised are
usually a really bad idea.

 Change request is proposed to the client/ sponsor or Change Control Board

Figure 11 shows an integral part of any Scope Change Management System that requires, as an arrangement,
who will review and authorise the change request. In most cases, the change requests are prepared by the
project manager and must be reviewed and approved / rejected by the sponsor or the client, because they are
typically those who will feel the effect of these changes.

MANCOSA 62
Principles of Project Management

In larger organisations, a Change Control Board may be appointed. The board normally comprises
experienced, high level individuals within the organisation who convene on a monthly basis to review change
requests from all the projects that they are involved in. Smaller projects or where no change control board
exists, the sponsor or client may constitute a Change Control Board (Project Management Institute, 2017).

Figure 11 - Scope Change Management Cycle.

Adapted from The PMBOK Guide (2017)

 Change request is accepted or declined

The proposal for amendment may be approved and forwarded for implementation or may be denied. In certain
situations, the request can be sent back for further review and resubmission. Table 13 offers a framework for
the change request form, and though the change request has been rejected, it must be registered and
submitted for future reference (Project Management Institute, 2017).

63 MANCOSA
 Principles of Project Management

SCOPE CHANGE REQUEST FORM

Project Name: Ref no.:

Requested by: Date : / /

Change request:

Proposed Change:

Justification:

Impact on the Scope:

Impact on Cost:

Impact on the schedule (Time):

Impact on Quality:

Impact if not implemented

Other Impact;

Associated risks

Approval: Approved Disapproved

Approved by:
Date : / /
Signatures

Follow Up
Documentation Updated: Yes No
Change Implemented: Yes No

Table 5 - Change Request Form. Adapted from The PMBOK Guide (2017)

 Project Management Plan (Baseline Plan) is updated to include the approved changes
Once the amendment request has been approved, the change to the Baseline plan needs to be updated. Any
changes in scope and other Knowledge Areas, such as time, cost, quality, risk, etc., must be updated and
included (Project Management Institute, 2017).

MANCOSA 64
Principles of Project Management

 Issue instructions and put changes into practice

Once updated, the Project Manager needs to implement the changes and ensures the implementation of the
revised Baseline Plan. This new Baseline Plan is re-evaluated, measured and the cycle repeats. (Project
Management Institute, 2017).

2.8 Project Closure

Project Closure is the final phase of any project. It is just as important as the other project phases of Initiating,
Planning and Monitoring however, many organisations do not pay enough attention to this phase, whereas others
ignore this project phase completely. When the goals of the project have been accomplished during the
implementation process and the monitoring and control have ensured that the criteria of the project are fulfilled,
within the budget and with the necessary quality, it is time to close the project and release the members of the
team.

For some, especially in the case of very large projects, the project could have been broken down into phases, in
which case this step would bring the phase to a close so that the next phase could be started and a new life cycle
could begin for the next phase of the project.

Oosthuizen and Venter (2018:264) explains that project closure activities ensures the recording of project
documents, archiving of organisational process assets, making final payments, releasing resources and
completing the project. Every project teaches lessons learned to the organisation whether it is a success or a
failure. So even after a project finishes, the documentation of this project is going to be helpful for completing the
future projects successfully.

The project closure activities will be discussed in more detail in Unit 6 of this guide.

2.9 Summary

This unit looked at the importance of Project Integration Management which coordinates all aspects of a project.
Projects are likely to have change requests to deliverables, management plans, project organisational assets and
so on. These changes must be recorded and documented in a proper way. Project integration, when properly
performed, ensures that all processes in a project run smoothly.

65 MANCOSA
 Principles of Project Management

REVISION QUESTION
Read the following extract and develop a project charter for this project.

The college needs to embark on a project to collect funds for the anniversary celebration. All
students organising the event were asked to apply a project charter to the Managing Director
of the School. R20,000 was made available for the event. You need to find a project that will
raise the most money for the charity.

CASE STUDY
Boondoggle - Canada's Gun Registration System

A Boondoggle is a project that is considered a waste of both time and money, yet is often
continued due to extraneous policy or political motivations.

In June 1997, Electronic Data Systems and SHL System house started work on a Canadian
national firearm registration system. The original plan was for a small IT project that would cost
taxpayers only $2 million -- $119 million for implementation which was to be offset by $117
million in licensing fees.

But then, politics got in the way. Pressure from the gun lobbyists and other interest groups
resulted in more than 1,000 change orders in just the first two years. The changes involved
having to interface with the computer systems of more than 50 agencies and since that
integration wasn't part of the original contract, the government had to pay for all the extra work.
By 2001, the costs had ballooned to $688 million, including $300 million for support.

But that wasn't the worst part. By 2001, the annual maintenance costs alone were running $75
million a year. A 2002 audit estimated that the program would wind up costing more than $1
billion by 2004 while generating revenue of only $140 million, giving rise to its nickname: "the
billion-dollar boondoggle."

Watch the case study and answer the questions.

[Link]

Questions
Critically evaluate what went wrong with the “Boondoggle” case study and how should the
scope management have been managed to avoid project failure?

MANCOSA 66
Principles of Project Management

Unit 2 - Answers to Activity, Think Points and Case Study Questions

CASE STUDY ONE (1)

Answers:
(a) Poor Scope Management - Define your project scope and freeze specifications before the requests for
changes get out of hand.
(b) Poor scope management - Learn how to control scope creep by utilising change management and defining
Project Scope.

ACTIVITY ONE (1)

Answers:
Students to demonstrate their own knowledge and understanding. Answers may differ from student to student.
Integration management
is needed when
processes interacts.
Identify, combine, unify
and coordinate different
processes / activities and
manage
interdependencies.

67 MANCOSA
 Principles of Project Management

Unit
3:
Project Scope and Time
Management

MANCOSA 68
Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

3.1 Introduction  Introduce topic areas for the unit

3.2 Project Scope  Explain the key concepts of project scope management

 Discuss an appropriate scope statement for a project

3.3 Work Breakdown Structure  Develop a Work Breakdown Structure for a project in a
given context or project

3.4 Project Time Management  Explain the key concepts of project time management

3.5 Basic Network Diagram  Describe basic network diagrams and determine a critical
path

3.6 Estimating Activity Duration  Distinguish understanding of estimating activity duration

3.7 Developing a Schedule  Develop a project schedule for a project

3.8 Critical Path  Explain and understand critical path and activity float

3.9 Activity Float

3.10 Introduction to Gantt Charts  Develop and interpret a Gantt Chart

3.11 Control Project Schedule  Explain the purpose of a control project schedule

3.12 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in
Perspective. 2nd Edition. Oxford University Press.

 Gido, J. and Clements, J.P. 2015. Successful Project Management.

(6th edition). Cengage Learning.

69 MANCOSA
 Principles of Project Management

3.1 Introduction
Within this unit, you will learn how to classify and categorise specifications, describe the scope of the project,
create a work breakdown structure (WBS), follow-up activities and develop a schedule. It also refers to scope
verification and validation. Ultimately, change control and configuration management is clarified in depth as it is a
critical process to ensure that these changes are done in a managed and monitored manner to keep the project
on track.

3.2 Project Scope

Oosthuizen and Venter (2018:100) argues that the objective of a project consists of the project scope, project
schedule and project cost. The authors define project scope as “what you hope to deliver to the customer at the
completion of the project”. The scope statement refers to the description of the objectives, deliverables,
milestones, specifications, limits and exclusions that form part of the project.

In order to translate an overall project objective into clearer terms, it can be described in specific, measurable,
agreed, realistic and time-bound (SMART) project characteristics. If a SMART scope statement is included in a
project charter document, it can contribute towards the success of the project planning, costing, scheduling and
implementation stages however, a project manager cannot take the scope statement for granted (Oosthuizen and
Venter, 2018:101).

3.2.1 Scope Creep

Oosthuizen and Venter (2018:101) states that sometimes more than one scope statement (writing, editing,
reflecting and re-writing) is required to decide on the acceptable scope for all concerned however, once the scope
has been agreed on, a severe hindrance to the successful achievement of the overall objective is the process of
scope creep. If the scope control is not carried out, the improvements to the project that go unrecorded and, at
the end of the project, the project manager will be shocked to find the project behind schedule, over budget and
not on accepted standard. It is referred to as scope creep.

READING
Read the guest article on “Actions that will define Project Management in 2020,
available at: [Link]
[Accessed on 24 June 2020]

MANCOSA 70
Principles of Project Management

3.2.2 Statement of Work

Oosthuizen and Venter (2018:107) explains that in order to understand how the Statement of Work (SOW) is
different from the scope statement, you must remember that the Request for Proposal (RFP) stage starts the
project definition process off. During this stage, the customer issues a SOW that outlines the work or tasks that
the project manager is supposed to perform for the project sponsor.

The project manager draws up a proposal document in response to the RFP. In the proposal document to be
presented to the project sponsor, the project manager puts forward proposed solutions or approaches for each
task listed in the SOW. If the Project Sponsor is satisfied that the project manager has understood the scope
requirements and will achieve the project objectives, the contract or project is awarded. The original SOW from
the RFP document will then be converted into a scope statement.

3.3 Work Breakdown Structure (WBS)

Oosthuizen and Venter (2018:107) defines the WBS as “an organised way to list all deliverables that need to be
completed in order to achieve the project scope, within budget.” The authors further elaborate that the WBS helps
the project manager to:
 provide an overall view of what the project entails;
 define tasks and assign the people responsible for them;
 identify a reporting structure to facilitate communication;
 form a starting point for budgeting;
 manage the human resource available;
 form a foundation to track project milestones; and
 provide some insight for preliminary risk identification

A major project can be broken down into smaller, more manageable parts of work allocations by using levels to
depict the size of the work activities to be completed (Oosthuizen and Venter, 2018). The authors further note that
the WBS will reflect a complete breakdown of all needed to deliver the project to the lowest achievable level. The
degradation of the deliverables into their smallest sections is called decomposition. There are three ( 3) broad
aspects to the work-breakdown structure:
o Title
The title is taken from the Project Charter and is the title of the project or process that is being planned.

o Deliverables
In the WBS, the deliverables are generally displayed since nouns, as they are physical objects that need to be
shipped and are normally graphically depicted in a package. Based on the scope of the project, there can be
many "levels" of deliverables. The first level of deliverables is taken from the Scope Statement. For certain

71 MANCOSA
 Principles of Project Management

instances, the 1st level deliverable could require several additional deliverables to complete it; this will entail
the development of 2nd level deliverables. Quite seldom WBS systems have more than three tiers of
deliverables. The 21st party deliverables at this stage may be place, cake, catering, etc. It may be floors,
walls, roofs, etc. for building constructions.

o The activities, tasks or work packages

If the deliverables have been identified as their lowest rational portion, it is important to define the activities or
tasks to be performed in order to produce or deliver them. Tasks typically include verbs as they explain the
tasks or activities required to create the deliverables. Graphically, activities do not usually have a box around
them, and the connection to the deliverable is linked to the left side of the deliverable box. Examples for the
21st party for the 'Venue' deliverable may include, select venue, booking venue, pay deposit, etc. Each of
these operations, once done, result in the deliverable of the 'Venue' being complete.

3.3.1 Numbering
Figure 12 shows that the WBS numbering reflects the hierarchical nature of the WBS and typically uses a decimal
numbering system where each new level adds a digit. This numbering will become important as the activity list is
created in the knowledge area of time management. Consider a WBS of 10 deliverables each with three (3)
second-level deliverables and ten work packages / activities. That will be equal to 300 job packages that need to
be handled. Without any kind of index, things could get complicated very quickly.

MANCOSA 72
Principles of Project Management

The following are examples of different types of WBS

Figure 12 - Work Breakdown Structure

. Adapted from own source.

73 MANCOSA
 Principles of Project Management

Figure 13 below graphically demonstrates an example of a typical Work Breakdown Structure

Figure 13 – Work Breakdown Structure example for a 21st Birthday Party.

Adapted from own source.

3.4 Project Time Management

In this section, you will learn how to create a project plan that tracks the actions required to identify, organise, and
monitor all project activities, and to ensure monitoring and management of project costs and changes. This section
also discusses the basic forms of time estimation approaches.

3.4.1. Define Activities (From Work Breakdown Structure)

WBS was established in scope management and all deliverables and their related activities were described in a
hierarchical graphical form. The process of identifying tasks is now taking the information and converting it to a
more tabular form so that more detail can be applied to it as the project plan is created. This activity list will form
the basis of the overall planning and implementation of the Project Management Plan (Baseline Plan).

Oosthuizen and Venter (2018:108) states that define activities “… are specific actions that have to be completed
during the course of the project in order to attain the project objectives.” Activities have an expected duration, will
have associated costs, and utilise specific, identifiable resources in order to be realised. An activity can be seen
as a piece of work that consumes time, while people or equipment either work or wait. The duration of an activity

MANCOSA 74
Principles of Project Management

is measured in units of time. This means that it can be estimated in seconds, minutes, hours, days, weeks, months
or years, depending on the nature of the project.
An easy way to create an Activity List is to use a spreadsheet.

3.4.2 Develop Activity List

If the project manager and team are confident that they have decomposed the project in sufficient detail to define
the smallest tasks or job packages to deliver on all deliverables. An example of this is shown in Figure 14, an
extract from the WBS for a party/social event. In most cases, WBS is rewritten in the form of a table. This WBS
table is referred to as an activity list. Certain terms used for the activity list may be: task list, WBS board, or if the
activity list is expanded in sufficient depth, it may be referred to as the WBS dictionary. For the intent of this module,
it is referred to as an activity list.

Figure 14 - WBS for a party/ social event.

Adapted from own source.

It is difficult to delegate expenses, length, or obligations to these tasks within the WBS. Figure 15 transforms WBS
graphically into a table shape, just like the one below. Costs and length can be quickly incorporated and retained
as project planning progresses.

75 MANCOSA
 Principles of Project Management

Figure 15 - Most project management solutions have a table format for the Activity List. You can also use MS
Excel or other spreadsheet packages.

Adapted from own source.

MANCOSA 76
Principles of Project Management

ACTIVITY

Use the WBS numbering system, show the degree of decomposition (e.g.
Title is Level 0) and the task reference numbers by labeling the WBS above.

3.4.3 Sequencing Activities

After the project manager and the team have established and described all tasks and deliverables, it is time to
begin the sequence of activities. It is important to remember that it is the operations that are being worked out and
not the deliverables. In the case of a party example, the venue, cake, food and drink, music and invitations will be
the deliverables. Nonetheless, these things may include select venue, purchase ingredients, select caterers, etc.
choosing sites, purchasing supplies, choosing caterers, etc.

Sequence the Activities – A definition

Oosthuizen and Venter (2018:122) defines Sequence the Activities as “…the relationships between the activities
used to manage and control the rest of the project.” Optimising these relationships will have a significant effect on
the overall success of the project. The authors further explain that there are several methods that can be used to
document the relationships between activities; such as a list of activities with notes about how they relate to one
another, or a diagram that illustrates their dependencies.

77 MANCOSA
 Principles of Project Management

Sequencing activities clearly means that the team must consider how each activity relies on the other. In most
instances, this means that an activity must wait for another activity to be completed before it can start. Think about
all the activities involved in making a birthday cake. You can't start icing the cake before you bake it, and you can't
cook the cake before you mix the batter. There is a clear connection between the activities and the recognition of
these connections between the activities is what sequencing is all about.

The most popular methodology used in modern project management is the Precedence Diagramming Method
(PDM) in which the activities are viewed as a diagram and the relationship between the activities is defined by
connecting arrows. There are three (3) specific forms of relationship of dependence.

 Finish to Start (FS)

As an example of a birthday cake, the recipe calls for you to buy ingredients and measure the ingredients
before combining the batter. You must finish the purchasing of the products before you can measure them
and only after the ingredients are measured can you start preparing the cake batter, etc. Such activities have
a finish to start relationship. The one activity must be done before the next one can start.

Figure 16 indicates that the Finish-to-Start arrangement is the most common relationship used in project
management.

Figure 16 - Finish to Start.

Adapted from own source.

 Finish-to-Finish (FF)
This relationship occurs when two (2) or more activities need to be completed before another can begin. Using
the Birthday Cake example in Figure 17, "Preheat Oven" and "Prepare Cake Batter" activities can occur at the
same time, but all must be completed before the "Bake Cake" activity can begin. The relationship between
preheating the oven and preparing the cake batter is a finish to finish relationship. They don't need to finish
at the same time, but both of them need to be done before you can "bake the cake."

MANCOSA 78
Principles of Project Management

Figure 17 - Finish to Finish

Adapted from own source.

 Start-to-Start (SS)
There is a Start-to-Start relationship between activities where an activity needs an activity to start before it can
start. Using the birthday cake example, once the "bake cake" activity has begun, the "make icing" activity will
start. Activities do not have to start at the same time, but the icing can’t start until the "bake cake" has begun.

 Start-to-Finish (SF)
There is a fourth relationship, called Start-to-Finish. When recording dependencies, it can become difficult if
the task description is used. The WBS reference number or other reference number is used to simplify matters.
In project software, the table line number is also used as a reference. Figure 18 shows that once established,
the dependences and relationships are reported in the operation list under the Dependency column.

79 MANCOSA
 Principles of Project Management

Figure 18 - Finish to Start

Adapted from own source.

3.5 Basic Network Diagrams

The network diagram can be built after sequencing the activities in the operation list. A network diagram is a
graphical description of the operations (not the deliverables) and their relationship to each other. The details and
relationships that you would need to draw up a network diagram can be found in the activity list where the
dependencies and relationships have been established. In practice, network diagram and activity list dependencies
are usually developed in parallel.

The most popular type of network diagram is called an Activity on Node. Within this diagram type, the activity
description is captured within the node (box) and the relationship is expressed in the arrows. The realistic way to
build a network diagram is to use Sticky notes and place them on a whiteboard or desk so that they can be moved
around. When a diagram has been accepted, it can be formalised in a hard copy. (Take a visual snapshot of the
diagram before adding the sticky notes.)

Figure 19 is an example from an activity on node diagram that reflects a party's preparation. Remember that the
network diagram runs from left to right, and that the activity description are inside the node (box or circle). It is good
practice to provide a single start and finish operation to which all paths are connected.

MANCOSA 80
Principles of Project Management

Figure 19 - Network on Node Diagram for 21st Birthday Party

Adapted from own source.

81 MANCOSA
 Principles of Project Management

For ease of comparison, the same network diagram as graphically shown in Figure 20 has been updated to
represent only the reference code and some of the relationships have been omitted. The reference in this case is
alphabetical characters. The reference number of the WBS may also be used in this way.

Figure 20 - - Network Diagram

Adapted from own source.

There are multiple network paths in Figure 20 above. The network path represents a series of linked activities.
Every break will establish a new route after an activity. Imagine this is a road map and there are many routes
(paths) that need to be followed from start to finish.

3.6 Estimating Activity Duration

When the activities for the project have been established, their dependencies and relationships in the form of a
network diagram, it is time to predict the duration of each of these planned activities. Depending on the nature of
the project being planned, the duration may be expressed in hours, days, weeks, months or even years. In most
cases, however, duration is expressed on working days.

Oosthuizen and Venter (2018:128) implies that “activity durations and resource requirements are completed as
separate steps; in reality these steps are often completed at the same time.” The accuracy of estimating duration

MANCOSA 82
Principles of Project Management

will be based on the accuracy of the information available to the project team. Some of the methods used to
estimate the duration of activities are:

 Macro-Estimating (top-down)
Macro-estimating implies that the project manager works from the highest level of the WBS to the bottom
(Oosthuizen and Venter, 2018:128).

 Micro-Estimating (bottom-up)
Micro-estimating works from the lowest level of the WBS and rolls the estimates up to the major deliverables
of the project. This approach tends to provide a more accurate picture about the project, but it is usually not
the project managers first choice when making estimates (Oosthuizen and Venter, 2018:128).

 Hybrid-Estimating
Oosthuizen and Venter (2018:129) posits that the quality of estimates has a significant impact on the
successful planning and outcome of any project, and therefore it is important for the project manager to
achieve the correct balance between macro- and micro-estimating. In practice, projects are often estimates
using a hybrid approach that combines the benefits of both macro and micro estimating techniques. This
provides the project manager with the flexibility to plan activities that fall into the short-term horizon in much
greater detail than would be required for those falling into the medium-or long-term horizons (Oosthuizen and
Venter, 2018:129).

 Three (3)-Point Estimating (PERT)

Three-point estimating uses three figures to measure the approximate period of uncertainty and risk
(Oosthuizen and Venter, 2018:147). The three (3) points in the PERT calculation are based on quotes,
experience, etc.

Most likely estimate – This estimate is based on realistic expectations, what is the most likely estimate for the
duration of the activity?
Optimistic estimate – This estimate is based on a best-case scenario, what is the shortest possible time that
the activity could be completed in?
Pessimistic estimate – This estimate is based on the worst-case scenario. If everything goes wrong, how long
would the activity be expected to take?

83 MANCOSA
 Principles of Project Management

Having calculated the three (3) potential outcomes, the PERT analysis uses the following formula to predict
the period of the experiment.

PERT = Optimistic Estimate + (4x Most Likely Estimate) + Pessimistic Estimate

6

It could be expressed in a simplified language as:

The reasoning behind the formula considers both the worst case and the best-case scenario, but the most
probable factor is four. There are therefore, in turn, six (6) variables, which are averaged by dividing by six (6).

3.7 Developing a Schedule

To date, the team has defined the scope, identified all deliverables, identified all activities, recognised the
relationship between activities, and predicted the length of each activity. The scheduling process takes this
information and sets dates for the start and completion of the tasks.

Project preparation will take place from a set starting point and all tasks are planned from that date onwards. The
goal is to complete the project in as short a period as possible from the start date.

ACTIVITY
List a few projects that have been planned from the start point.

Projects that run from a start point

1
2
3
4

On the other hand, the project may have a fixed completion date by which time everything has to be completed. In
this case, the schedule would have to be calculated backwards to ensure that the start date is feasible.

ACTIVITY
List a few projects that are planned from a fixed finish date

MANCOSA 84
Principles of Project Management

Projects that have a finish date constraint:

1
2
3
4
5

Various cultures and resources (people) use different calendars. For example, the traditional South African
calendar is different from the Chinese calendar. It is necessary to determine the calendar that is relevant to the
project and resources when planning a project.

THINK POINT
Think how the team would feel if their project manager had neglected to plan weekends
as non-workdays. The program will allow everyone to work for the entire duration of the
project seven (7) days a week in order to fulfil the deadline.

3.8 Critical Path

One of the main problems facing the project manager is to determine the shortest possible time it would take to
complete the project. The sponsor, client and other stakeholders will press for the completion date. The Critical
Path must be determined in order to provide them with the date of completion.

Oosthuizen and Venter (2018:132) defines the critical path as the “longest path of activities that determine the
completion date of the project. Alternatively, it refers to the path of activities with the least amount of common
slack”.

This description seems to be contradictory, but the reasoning is right. If you consider the alternative paths that the
project would have to follow, the project can only be finished after all the paths have been finished. Some paths
may be shorter than others, but the project can only be deemed complete if all paths have been completed.
Therefore, the length of the longest route is also the shortest time possible to complete the project. When a critical
route has been established, the project will be scheduled to reach any deadlines or restrictions that will impact the
project.

Find the following network diagram shown in Figure 21. The activity has an approximate period measured in the
Approximate Activity Duration phase. Table 12 indicates that if the length of each operation on the path is added
together, the length of the path can be determined. The longest path (Critical path) in this case is Start, F, G, I,

85 MANCOSA
 Principles of Project Management

Finish. With this information, the project manager will be able to notify the sponsor that the project will take at least
18 days to complete.

Figure 21 – Critical Path

Adapted from own source.

Table 6 - Critical Path & Activity Slack.

Path Duration Float

Start, A, B, C, Finish 10 Days 8 Days
Start, D, E, C, Finish 6 Days 12 Days
Start, F, G, I, Finish 18 Days 0 Days
Start, F, H, I, Finish 15 Days 3 Days

Adapted from own source.

3.9 Activity Slack

When the duration of each path has been calculated, the difference in duration between the paths is referred to as
slack. It also means that a lot of days are spared on the shorter routes. Please see Table 12 above. Consider the
first path in the example above, where the float is 8 days. If, for whatever reason, the activity on this path had been
delayed by four ( 4) days, there would still have been four ( 4) days left so that this delay would not have an impact
on the completion date of the project.

Remember that the critical direction is always zero slack. This ensures that any delay in an activity along the critical
path would result in delays to the end date of the project. For this purpose, activities along the critical path usually
take priority and require careful attention to ensure that there are no delays.

MANCOSA 86
Principles of Project Management

At this point, the calculations for the complete critical path analysis need not go forward and backward. You need
to grasp the basics of the critical path as mentioned above.

ACTIVITY
Calculate the Critical Path and Float of the network diagram. Durations are in a few days.

87 MANCOSA
 Principles of Project Management

3.10 Introducing Gantt Charts

A Gantt chart is a horizontal bar chart that graphically displays the time relationship of the steps in a project. It is
named after Henry Gantt, an industrial engineer who introduced the procedure in 1917 (Oosthuizen and Venter,
2018:14). The most common way to view the project schedule is to use the Gantt map. Gantt charts collect details
from all project preparation.

Each phase of the project is represented by a line, or bar, put on the chart during the time period in which it is to
be carried out. When the Gantt chart is finished, it displays the flow of activities in sequence as well as those that
can be carried out at the same time. The length of the bar or line in the Gantt chart is proportional to the period of
the activity.

To create a Gantt chart:

 List the steps required to complete a project
 Estimate the time required for each step
 List the steps down the left side of the chart
 List the time intervals along the bottom
 Draw a line across the chart for each step, starting at the planned start date and ending on the completion
date of that step.

Some steps can be carried out in parallel, and at the same time as another step, with one step taking longer than
the other. This allows some flexibility about when to start the shorter step, if the plan has it finished in time to flow
into subsequent steps. This situation can be shown with a dotted line continuing to the time when the step must
be completed. This indicates slack time.

When the Gantt chart is finished you will be able to see the minimum total time for the project, the proper sequence
of steps, and which steps can be under way at the same time.

The usefulness of a Gantt chart can be improved by charting the actual progress of activities. This is usually done
by drawing a line in a different colour below the original line to show the actual beginning and ending dates of each
step. This allows you to quickly assess whether the project is on schedule. An alternative method is to use a
coloured highlighter to highlight progress on each activity.

Gantt charts are very useful in managing progress in projects as described above but are limited in their ability to
show the interdependencies of activities, especially in complex projects. In projects where the steps flow in a simple
sequence of events, they can portray adequate information for project management however, when several steps
are under way at the same time and a high level of interdependency exists among the various steps, the Gantt
chart is less useful.

MANCOSA 88
Principles of Project Management

In this case, a more sophisticated diagramming tool such as PERT/CPM is a better choice. The Gant Chart plays
a very important role in managing and controlling project processes. It is very easily constructed using popular
spreadsheet software or can be constructed manually using pencil and paper.

Its use in controlling a project lies in the ability to keep the Gantt chart up to date. A simple technique is to print out
the Gantt chart and then to update progress using coloured highlight pens. In order to record progress of a
particular activity or sets of activities, one simply has to colour the bar to depict progress as each day passes.

Once a week, the bar chart can be updated in the computer system and distributed at project meetings. A typical
example of a Gantt Chart is depicted in Figure 22 below:

Figure 22 - Gantt Chart for 21st Birthday Party

Adapted from own source

89 MANCOSA
 Principles of Project Management

ACTIVITY
Participate in The Project Management Game available at:
[Link] and follow the steps:
 Register your name (free) before you play the game;
 Read what this game is all about;
 Familiarise yourself with the interfaces and what they include;
 Read the instructions;
 Play the game;
 Capture the score or results;
 Discuss the game.

3.11 Control the Project Schedule

Controlling the project schedule is a process that is undertaken as part of the Monitoring and Controlling process
group. As the project is being carried out, the actual progress of the project is being tracked to see if there are any
deviations from the Project.

The PMBOK Guide (2017) specifies that “Control Schedule is the process of monitoring the status of project
activities to update project progress and manage changes to the schedule baseline to achieve the plan. The key
benefit of this process is that it provides the means to recognize deviation from the plan and take corrective and
preventive actions and thus minimize risk”.

Tools and techniques to check and report on the projects progress according to the schedule include:
 Performance reviews – Analysing the performance of the project against the agreed upon Project Plan;
 Methods to analyse the performance include:

o Trend Analysis
The PMBOK Guide (2017) refers trend analysis as a mathematical tool you can use to assess your
project data to determine how it is doing and forecast how it will continue to do. It is common to see
a trend analysis represented in graphical form. This way you can easily see the way your project is
trending, i.e. is your project on track, improving, or falling behind?

o Critical Path Method

Oosthuizen and Venter (2018:132) make use of the network diagram and examine the activities that
have no float in their plan. Delaying any one activity along the critical path will delay the whole project,
meaning that such activities must be monitored very closely.

MANCOSA 90
Principles of Project Management

o Earned Value Management

Oosthuizen and Venter (2018:233) refer to the earned value as a statistical method that measures
the actual percentage of the completed project against the estimated percentage. This, when
measured against the costs incurred at that stage, provides the project manager with measures as
to whether or not the project is ahead, on or behind schedule.

Tracking Gantt ChartsThe PMBOK Guide (2017) notes that the Tracking Gantt charts offer a very
useful tool for assessing the actual progress of the project against the defined project plan timeline.
The initial Gantt chart remains in place and the actual dates of completion of the activities are
displayed below each activity on the chart.

3.12 Summary
Darter (2014) confirms that the finish date of a project has a major impact on the project team. While every project
has a finish date and the methodology used to arrive at the finish date varies from project to project, the amount
of stress involved to achieve the finish date also varies subject buy in from key stakeholders. Time management
therefore is a key aspect of the project management function. The project success depends on the successful time
management as time is one of the main project constraints that needs to be closely managed.

REVISION QUESTION
1 Why do you think project scope management is critical?
2 Do you agree with the ideas presented in the clip below? Why/why not?
[Link]
3 Find the following scenario to have special equipment imported by ship
from the USA.

Optimistic estimation = 70 days. No delays, quicker than planned

customs clearance, etc.
The most likely estimate is 80 days. Past deliveries have taken 80
days, and there is no planned bottleneck in the port.
Pessimistic = 144 days in duration. Bad weather can delay ship,
customs hold products, strike action delay delivery, etc.

91 MANCOSA
 Principles of Project Management

CASE STUDY
A True Story of Scope Creep - The Wasa (Vasa)

Wasa (Vasa) is a Swedish warship built between 1626 and 1628. The ship sank after
sailing about 1,300 m (1,400 yd) into her maiden voyage on 10 August 1628.

The ship was built on the orders of the King of Sweden Gustavus Adolphus as part of
the military expansion he initiated in a war with Poland-Lithuania (1621–1629).
Sweden was leading power in Europe during that time. It was time for a new era of
large battleships, which demand the enemy’s respect, serving as firing platforms for
mighty cannons to fight from a distance. The king himself was principal stakeholder
and sole sponsor of the projects to construct the Vasa. So what went wrong?

It is important for a project manager to have strong sponsorship commitment and

ability to control the project scope. Controlling scope does not mean that no changes
are possible after the project starts – this would be unrealistic. As a rule, changes late
in the project increase cost dramatically, so avoiding ‘scope creep’, i.e. uncontrolled
changes late in the game, is a crucial. King kept on adding scope to ship e.g. increase
size of ship, include heavy artillery etc. without knowing the Risks of end product.

Watch the case study and answer the questions.

[Link]
samir
(Source: Linkedin-Failure is success-Mishra, 2017)

Questions:
 What went wrong and what were the lessons learned?
 How could Scope Management assist the project manager on this project?

MANCOSA 92
Principles of Project Management

Unit 3 - Answers to Activity, Think Point and Case Study

ACTIVITY ONE (1)

Answers:

Projects that have been planned from a start point

1 House Alterations
2 Students to provide list to demonstrate knowledge
3

Projects that would be planned from a fixed finish date

1 New Stadium for the Commonwealth Games 2022
2 Students to provide list to demonstrate knowledge
3

ACTIVITY TWO (2)

Answer:
Path Duration Float
1 Start, A, B, C, Finish 10 Days 8 Days
2 Start, D, E, C, Finish 6 Days 12 Days
3 Start, F, G, I, Finish 18 Days 0 Days
4 Start, F, H, I, Finish 15 Days 3 Days

ACTIVITY THREE (3)

Answer:
This is the screen grab taken from [Link] after playing online for the first time. The good news is
that the project was finished on time.

93 MANCOSA
 Principles of Project Management

Sourced from Robc. 2016. The Project Management Game: Test your Skills as a Project Manager.
[Link] [Date Accessed: 16th September 2019]).

THINK POINT ONE (1)

Answer:
The project calendar should take the following into account.
 Working hours (typically eight (8) hours per day);
 Working days (Monday to Friday);
 Public Holidays (As proclaimed);
 Training days (Scheduled training days);
 Religious days (not all religious holidays are listed on public holidays) Unless, for example, there is a Muslim
provider, it is extremely doubtful that they will be available to function on the Eid celebrations.

CASE STUDY
Answers:
(a) Stakeholder Disengagement - Poor communication between sponsor/stakeholders and the project manager.
The King gave orders from afar without visiting the construction to connect with key players and make more
informed decisions (a Show & Tell could have avoided this issue)
(b) Scope Creep - King does not know every task that goes into each change and the risks it induces. It
demonstrates even more the importance of a controlled change management process that reflects the impact
of each change transparent and realistically. This gives the sponsor or stakeholders a chance to reconsider
whether the change should then be approved or not

MANCOSA 94
 Principles of Project Management

Unit
4: Project Quality, Cost,
Procurement and Risk
Management

95 MANCOSA
 Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

4.1 Introduction  Introduce topic areas for the unit

4.2 Project Quality Management  Develop the key deliverables in a project quality management
plan

4.3 Project Cost Management  Determine an appropriate cost‐estimation approach for a

project

4.4 Project Procurement  Discuss the project procurement management plan that suit the
Management project and organisation

4.5 Project Risk Management  Describe the key deliverables of project risk management

4.6 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in
Perspective. 2nd Edition. Oxford University Press.

MANCOSA 96
Principles of Project Management

4.1 Introduction
This unit focuses on all aspects of project quality management which involves understanding the quality processes
of the company, creating an effective quality management plan, using quality management methods and
techniques, and identifying the main mechanisms for assessing and recording the quality of the project. You are
also exposed to the cost management concepts of the project and their importance to project management. You
can learn how to predict costs using cost management techniques. We further discuss the design of the project
budget and find the techniques and processes that enable project managers to track and regulate the project
budget. You are taken through the basic concepts of project management and how modern companies handle
various forms of contract relationships. Lastly, the principles of risk control and the risk management strategy are
discussed in depth.

4.2 Project Quality Management

Project quality management is all about ensuring that the project achieves what is anticipated. It does not mean
that the project will produce a high-quality product. The charter and scope of the project may call for a low-quality
product.

Project Quality Management is about ensuring that the project delivers exactly what was requested in the Project
Charter. If the Project Charter calls for a low-quality product and the team produces a high-quality product, then
quality management would have failed. At the other hand, if the Project Charter calls for a high-quality product and
the project produces a low-quality product, it will also have failed to control its quality. Quality management is all
about matching deliverables to the specifications of the project.

Burke (2014) offers two definitions of project quality management:

 “the processes required to ensure that the project will satisfy the need for which it was undertaken”;
 “covering quality planning, quality control and quality assurance.”

Quality management is concerned with:

 Customer Satisfaction
Understand precisely what the consumer wants and deliver on those standards.

 Prevention over Inspection

Planning, design and build standard of a project is much more successful than waiting for defects to be
identified on inspection and then making corrections.

 Management Responsibility
Although quality management should be a concern for everyone, management has a duty to ensure that time
and money are made available for the implementation of quality management.

97 MANCOSA
 Principles of Project Management

 Continuous Improvement
The use of the Deming method, Plan – Do – Test – Act (PDCA), popularized by Dr. W. Edwards Deming,
enables continuous improvement in project and organisational efficiency. Deming 's model calls for
preparation, then to act on that preparation by executing the plan, to review what is being accomplished and
then, if necessary, to act on any problems that need change. Blokdyk, G (2018).

While every effort should be made to ensure that there are no quality problems, the fact is that things are going
wrong and, as such, there will be costs associated with quality assurance.

Clements and Gido (2018) describes two (2) quality management concepts, namely quality assurance and quality
control. They highlight the importance of planning for quality by explaining that it prevents poor quality and avoids
quality problems. There are also costs of quality that one needs to be familiar with from a quality management
perspective for managing projects. These are:

 Cost of Quality (COQ)

Cost of quality refers to the total cost of all efforts related to quality. The appraisal, prevention, and failure
costs are included in this term.

 Cost of Poor Quality (COPQ)

Cost of poor quality addresses the cost of not performing work correctly the first time or not meeting customers’
expectations.

 Cost of Doing Nothing Different (CODND)

Cost of Doing Nothing Different is the cost of not changing standard practice, even when it is dysfunctional.

The cost of quality is the sum of costs a project will spend to prevent poor quality and any other costs incurred as
a result of outputs of poor quality. Poor quality is the waste, errors, or failure to meet stakeholder needs and project
requirements (Burke, 2014). The cost of poor quality can therefore be broken down into the three categories of
prevention, appraisal, and failure costs:

 Prevention costs
These are planned costs an organisation incurs to ensure that errors are not made at any stage during the
delivery process of that product or service to a beneficiary.

 Appraisal costs
These include the costs of verifying, checking, or evaluating a product or service during the delivery process.

MANCOSA 98
Principles of Project Management

 Failure costs
A project incurs these costs because the product or service did not meet the requirements and had to be fixed
or replaced, or the service had to be repeated.

READING
Read the guest article on “Put Quality in Place” by Robin Hornby. Available
at: [Link] [Accessed on 24
June 2020]

4.2.1 Quality Management Plan

The quality management plan is “a component of the project management plan that describes how an
organization’s quality policies will be implemented. Therefore, a logical place to start is by understanding what a
quality policy is and how it governs the actions of a project manager and team” (Oosthuizen and Venter, 2018:303).

Kloppenberg (2017:305) explains that the Quality Management Plan may include a description of the quality
baseline by which the project will be judged, along with methods for quality assurance and control. The Quality
Management Plan is a portion of the overall project management plan. The author further explains that a Quality
Management Plan should describe how to identify some or all of the following:

 The project’s overall quality objectives

 Key project deliverables and the standards to evaluate each
 Deliverable completeness and correctness criteria from the customer’s viewpoint
 Quality control activities
 Critical project work processes and standards to review each
 Stakeholder expectations for project processes
 Quality assurance activities
 Quality roles and responsibilities
 Quality tools
 Quality reporting plan

ACTIVITY
Using a project of your choosing, develop a Quality Management Plan

99 MANCOSA
 Principles of Project Management

THINK POINT
Consider the graphic below. How do you think the project would rate in terms
of project quality management?

4.3 Project Cost Management

The section presents the concepts of project cost management and their contribution to project management. You
can learn how to predict costs using cost management techniques. It also discusses the design of the project
budget and deals with techniques and processes that enable project managers to track and control the budget of
the project.

4.3.1 Managing the Project’s Budget

Oosthuizen and Venter (2018:229) states that “an important precursor to effective monitoring and control of a
project is to ensure that the project has been properly budget for.” The authors further refer to the three (3) possible
approaches of project budgeting:

 Top-down budgeting – this involves the development of a long-term budget by top management, which is
passed down to various departments and units in the organisation and translated into operational budgets.

MANCOSA 100
Principles of Project Management

 Bottom-up budgeting – this is prepared by project managers for their individual projects, which are also used
by functional managers and upper management to prepare unit-level and overall budgets.
 Iterative budgeting – this involves the use of both top-down and bottom-up approaches, with top
management setting an overall budget, which is then revised by project managers when setting budgets for
the projects.
The budgeting process involved four (4) steps. These steps are explained below.

4.3.2 Resource Planning

Oosthuizen and Venter (2018:229) explains that resource planning involves “the estimates of the resources
required to perform a particular activity, and as such, intuitively sets the stage for estimating the cost of a project.
It is necessary to gauge the number of resources required to complete an activity in order to budget effectively.”

4.3.3 Cost Estimation

Cost estimation involves an approximation (estimate) of the costs of the resources needed to complete project
activities. In approximating costs, the estimator considers the causes of variation of the final estimate for purposes
of better managing the project (variance analysis).

Oosthuizen and Venter (2018:229) states that “cost estimation begins at the proposal stage. It is also at this stage
that a breakdown of costs is provided. Costs relating directly to projects and which can accordingly be attributed
to specific work packages include labour, raw materials and supplies, equipment and subcontractors, travel, etc.”

When a project is performed under contract, care should be taken to distinguish cost estimating from pricing. Cost
estimating involves developing an assessment of the likely quantitative result – how much will it cost the performing
organisation to provide the product or service involved.

The estimates obtained from the various approaches provide a basis for the project budget, these costs form the
project budget baseline and serves as a point of comparison. The authors further explain that estimates are made
using the following five (5) methods (Oosthuizen and Venter, 2018:229):

 Top-Down or Analogous Approach

Analogous estimating, also called ‘top-down estimating’ means using the actual costs of a previous, similar
project as a basis for estimating the cost of the current project. It is frequently used to estimate total project
costs when there is a limited amount of detailed information about the project, for example, in the early phases.
Analogous estimating is a form of expert judgment.

101 MANCOSA
 Principles of Project Management

 Parametric Testing
Parametric testing involves using project characteristics (parameters) in a mathematical model to predict
project costs. Testing may be simple (residential home construction will cost a certain amount per square
metre of living space), or complex (one model of software development costs uses thirteen separate
adjustment factors, each of which has five to seven points on it). Both the cost and accuracy of parametric
testing vary widely. They are most likely to be reliable when a) the historical information used to develop the
model was accurate, b) the parameters used in the model are readily quantifiable, and c) the model is scalable,
that is, it works as well for a very large project as well as a very small one. An example would be, if you know
that a resource costs R250 per day and the activity takes five (5) days, the activity will cost R1,250 (5 x R250).

 Apportionment Approach
The total estimated cost is apportioned to different parts of the work that needs to be completed. This is also
an extension to the parametric testing. For example, the total budget for the development of new software is
R100,000. 60% of the budget may be apportioned to development of the code, 20% to testing of the new
software until the full 100% has been allocated to work that needs to be completed.

 Bottom Approach
This technique involves estimating the cost of individual activities or work packages, then summarising or
rolling up the individual estimates to get a project total. The cost and accuracy of bottom-up estimating is
driven by the size and complexity of the individual activity or work package: smaller activities increase both
cost and accuracy of the estimating process. The project team must weigh the additional accuracy against the
additional cost.

Computerised tools, such as project management software, spreadsheets, and simulation/statistical tools are
widely used to assist with cost estimating. Such products can simplify the use of the tools described earlier
and facilitate rapid consideration of many costing alternatives.

 Iterative Approach
This approach is also referred to as the hybrid approach is a rough total cost for which the project is estimated,
and the detailed cost estimates at the work package level are used to adjust the overall project cost. This
adjustment then allows the project managers to adjust their overall project budgets. The process might repeat
itself several times until the final estimate and budget is derived.

MANCOSA 102
Principles of Project Management

4.3.4 Cost Budgeting

Oosthuizen and Venter (2018:231) states that budgeting at this stage involves three (3) aspects:
 Formation of Cost Accounts
This stage is also known as “control accounts”. These accounts are formed at the intersection of the
organisational and work breakdown structures. Individual work units are tasks with delivering an aspect of the
project within scope and according to budget and schedule (Oosthuizen and Venter,2018:231).

 Budget for Each Activity

Schedule the budget for each activity which is contained in the cost accounts in order to develop a budget
baseline. The budget for an activity which is built up from various cost estimates is allocated over the duration
of the activity by the time period according to when the cost will be realised (Oosthuizen and Venter, 2018:231).
Table 22 is an example of activities that have been calculated by deliverable.

 Cash Flow Analysis

Oosthuizen and Venter (2018:231) explains that manage and the schedule the cash flow is crucial for two (2)
reasons:
o To help the project manager determine the overall financial state of the project and it allows him/her
to identify when money is required, as well as the amount thereof.
o To allow for the comparison of actual expenditure against the budget. The project manager will
prepare a projected cash flow statement which indicates expected cash inflow and outflow. This
statement is updated with actual values as the project progresses.

103 MANCOSA
 Principles of Project Management

Figure 23 - Project Budget for 21st Birthday Party Per Deliverable

Adapted from own source.

4.3.5 Cost Control

Oosthuizen and Venter (2018:233) explains that the final step in budget management is cost control. It includes a
daily review of the progress of the project and its operations and a calculation of the real expenditure against the
expected expenditure. It is therefore a crucial part of controlling project performance and often includes drawing
down against a contingency fund where a risk event has transpired and the recording of changes to costs
accordingly.

4.3.6 Earned Value Management

Oosthuizen and Venter (2018:233) defines “Earned Value Management (EVM) as a system which allows project
managers to monitor and control the cost and schedule performance of their projects.” Earned value is therefore
used to measure a project’s performance in terms of schedule and cost against a baseline. It is also used as a
forecasting tool and in addition to the project current progress rate, key decisions can be taken by the project
manager in order to rectify any project performance variations.

MANCOSA 104
Principles of Project Management

Some key terms used in Earned Value Management:

 Actual Cost (AC)
This is referred to the actual amount of money spent at any given time to accomplish an activity. These
amounts are gathered once work on the project begins.

 Planning Value (PV)

This refers to the Rand value of the work that is planned to accomplish. The planned values are taken from
the baseline chart which is a time-phased representation of all the work that is required to be completed.

 Budgeted Cost at Completion (BAC)

This is the sum of all your Planning Values or work packages and is taken to include management reserves.

 Earned Value (EV)

This is taken to be the percentage of work completed to date. It is calculated by multiplying the percentage if
work completed by the budgeted amount or planned value. The value attached to the percentage of work
completed is highly subjective.

ACTIVITY
Suppose you have a small budget of R1.5 million. Use the sample project
plan available at
[Link] or you could
use an alternative to complete the following:
 Identify and assign resources;
 Estimate costs;
 Schedule the project;
 Determine the project budget.

105 MANCOSA
 Principles of Project Management

4.4 Project Procurement Management

In most projects, organisations have a range of vendors, contractors, and customers. There is a significant amount
of project management involving these entities and there is a considerable amount of comprehensive preparation
and scheduling. This section takes you through the basic concepts of project procurement management and
continues to explore how modern organisations handle various forms of contract relationships.

4.4.1 What is Project Procurement Management?

Project procurement management includes all acquisitions of supplies and arrangements entered into with third
parties for the distribution of goods and services.

Kloppenberg (2017:323) states that “In traditional project procurement management literature, purchasing, supply
management, and procurement are usually used interchangeably to refer to the integration of related functions to
purchase or acquire the needed materials and services for the project team. Thus, procurement management is
not only concerned with the standard steps in the purchasing process such as recognising needs, translating needs
into commercially equivalent descriptions, and searching for suppliers.”

4.4.2 Procurement Plan

Oosthuizen and Venter (2018:186) states that the procurement plan “documents the procurement process, the
criteria that will be used to choose between different suppliers and the actions, roles, responsibilities and timing
required to ensure that the procurement needs of the project are met.”

4.4.3 Managing Contractors through the Project Office

Oosthuizen and Venter (2018:391) explains that the “project office-based manager reduces the risk for contractors
working on organisational projects by providing a coordinating function between the contractor and any resource
or decision makers within the organisation.

4.5 Project Risk Management

4.5.1 What is a Risk?
Each day, we are surrounded by risks; they may be as mild as a paper cut or as serious as a fatal road accident.
We have learned to continuously recognise risks and change our actions to reduce the effect of these risks on our
lives.

From this viewpoint, Oosthuizen and Venter (2018:292) defines project risk as “an uncertain event or set of
circumstances, should it or they occur, would have an effect on the achievement of one or more project objectives”.

A risk has a cause and, if it occurs, has a consequence. For example, a cause may be requiring a permit or having
limited personnel assigned to the project. The risk event is that the permit may take longer than planned, or the

MANCOSA 106
Principles of Project Management

personnel may not be adequate for the task. If either of these uncertain events occurs, there will be a consequence
on the project cost, schedule or quality. Risk conditions could include aspects of the project environment that may
contribute to project risk such as poor management practices, or dependency on external participants that cannot
be controlled.

Project risk includes both threats to the project’s objectives and opportunities to improve on those objectives. It
has its origins in the uncertainty that is present in all projects. Known risks are those that have been identified,
and analysed, and it may be possible to plan for them. Unknown risks cannot be managed, although project
managers may address them by applying a general competency based on past experience with similar projects.
In addressing unknown risks, a generic risk model may be of benefit.

Many of us grasp the negative side of risk, not the positive side of risk. From a project point of view, it's all about
confusion. For example, currency risk, if the local currency (Rand) deteriorates against the US Dollar, any imported
materials will be costlier and adversely affect the cost of the project. Conversely, if the currency rises against the
dollar, the cost would decrease. This is referred to as a positive risk.

Organisations perceive risk as it relates to threats to project success. Risks that are threats to the project may be
accepted if they are in balance with the reward that may be gained by taking the risk. For example, adopting a fast-
track schedule that may be overrun is a risk taken to achieve an earlier completion date. Risks that are opportunities
may be pursued to benefit the project’s objectives.

4.5.2 Project Risk Management Cycle

Risk management is all about knowing what could go wrong and preparing for an eventuality that could go wrong
and developing a plan for when it goes wrong. Oosthuizen and Venter (2018:293) posits a simple process for
managing project risks in Figure 22. The two key components of this process are:

 The seven (7) steps of the process

 The cyclical nature to imply that project risk management is an ongoing endeavour that continues throughout
the project.

107 MANCOSA
 Principles of Project Management

Figure 24 – Project Risk Management Cycle

Source: Oosthuizen and Venter (2018:293)

Step 1 – Initiation
Oosthuizen and Venter (2018:294) explains that “Initiation is project risk management planning step.” In this
process, the project manager will prepare the ground for the managing risks on the project. This step will result in
a project risk management plan, which is part of the overall project plan. For example, the level of risk management
to build the world’s longest bridge would be far greater than that required for a stage production. The risk
management approach for each project will be specific to match the overall risk of the project. The initiation step
is the only step in the process that is not repeated. Most projects should include the elements below:

 Confirm project objectives

The project manager must confirm the project objectives. As previously stated, a risk only exists when
there is both uncertainty and effect on project objectives. It is important to confirm the objectives that are
exposed to risk and to state them in a measurable form so that exposure can be assessed in terms of
their effects on the objectives.

MANCOSA 108
Principles of Project Management

 Define risk thresholds

This element defines how much risk is acceptable for the project, against each of the project objectives.
Risk thresholds will be mapped against a predetermined scale against which each risk can be evaluated
in Step 3: Risk Assessment.

 Identify project management stakeholders and agree on their responsibilities

The various stakeholders involved in the risk management of the project must be identified and their roles
clearly agreed upon, in particular, those stakeholders with the authority to decide on the level of the
acceptable risk exposure must be interviewed in order to set the risk exposure levels that will inform the
risk assessment steps. The risk management process must be explained to all stakeholders and their
support and participation obtained.

 Document and agree on project governance from a risk perspective

The approach of ensuring that the risk management process to be followed must be clearly defined. This
will include meetings, workshops, monitoring and reporting, ownership of risks, escalation and other steps
needed to ensure that the risk profile of the project is visible and properly managed.

Step 2 – Risk Identification

Once a plan has been agreed on how risks will be managed, the Project Team will begin to identify risks. Each
project will most likely have its own risks, so a fair amount of time and energy is needed to identify as many risks
as possible. Oosthuizen and Venter (2018:296) explains that risk identification on its own may be the project
manager’s most powerful weapon for achieving project success.

 Sources of Project Risk

Project managers use various methods to identify project risk. These may include:

o Work breakdown structure review

In consultation with resources assigned to each task, the project manager will review the work
breakdown structure to identify risks associated with each task.
o Brainstorming
Through assembling project managers and subject experts at the risk management meeting and
going through the activity list, for example, the project manager and/or facilitator may define risks.
o Checklist analysis
Previous projects and internet searches can help to identify risks relevant to the project.
o Assumption analysis
When evaluating all assumptions taken at the early stages of project planning, risks may be
established where assumptions can no longer be assumed to be correct.

109 MANCOSA
 Principles of Project Management

o Lessons learned from experience

The project manager will review lessons learned reports and interview managers of similar projects
to learn from their experiences.

 Structure of project risk

One of the most common mistakes made is that people often confuse risks with their causes. For example,
we may refer to an unusually heavy rainfall experienced as a risk to a building project. Risks are also confused
by its effect, for example, the project missing the deadline for a key deliverable. Missed deadlines are not in
themselves risks. They would be the effect of something taking place that resulted in the missed deadline.
Confusing the causes and effects with the risks makes it impossible to effectively manage risks.

 Project risk description

In order to describe project risks precisely, we need to think about them precisely. The project risk meta-
language is a powerful way of using words to help structure our thoughts.

Once the risks have been identified, a risk register shall be created listing the risks associated with the project
(Table 13).

MANCOSA 110
Principles of Project Management

Table 7 – Example of a Risk Register for a 21st Birthday Party

Risk Register

Activity Risk Probability Impact Score Rank

Select venue No suitable venues available

Preferred venue is fully booked

Set up venue Tables and chairs are dirty These columns will

Insufficient electrical points be completed later

Hold event Load shedding

Bad weather
Some activities will
Water interruptions
have several
Make cake Cake flops
associated risks
Deliver cake Cake is damaged en-route

Post invitations Post Office fails to deliver

Confirm numbers Too many people attending

Too few people attending

Finalise seating plan Feuding parties seated together

Book DJ Cancels at the last minute

Gets drunk

Photographer Does not arrive

Gets drunk
Some activities may not have
Loses data/pictures
any risks. They are not
Settle accounts Funds not available recorded on the register.

Speed point not operational

Step 3 – Risk Assessment

The aim of the risk assessment is to further improve the risk register by evaluating the probability and effect of the
risk and prioritising the risk according to the resultant ranking. The risk assessment requires a score or risk
probability and an impact on a scale from 1 to 5. The size of the qualifying risk can vary. A scale of 1 to 5 has
been used in Table 8. A scale of 1 representing a very low chance or effect and a scale of 5 representing a very
high probability or impact.

111 MANCOSA
 Principles of Project Management

Table 8 - Qualitative Risk Analysis. Adapted from own source

1 2 3 4 5
Very low Low Moderate High Very High

 Probability
Probability is linked to the probability or possibility that the event may arise under normal circumstances. An
example of that would be the possibility that there will be a chance of traffic congestion in a large city. The
chance is most likely to be four or five. Conversely, the risk of an accident on the way to work is likely to be 1
or 2; very low or low.

 Impact
In evaluating the effects of the risk, presume that the risk has arisen and weigh the effects it will have on the
project. Use traffic congestion as another example, there could be a mild effect on the project and the score
will be 3. In the case of a road accident, the impact may be fatal and, as such, a score of 5 would be reported
for this risk.

In order to promote the risk-scoring process, there will always be some debate and discussion of the result.
At some point, the facilitator will have to resolve the debate by selecting the most likely score and going on.

Table 9 is an extract from the 21st Birthday Party Project Risk Register with the probability and impact
completed.

Table 9 – An example of a Risk Register from a 21st Birthday Party

Risk Register

Activity Risk Probability Impact Score Rank

Select venue No suitable venues available 2 5 There is a high

probability of load
Preferred venue is fully booked 3 5
shedding and the
Set up venue Tables and chairs are dirty 2 3 impact would be very
high if it happens.
Insufficient electrical points 4 5

Hold event Load shedding 4 5

Bad weather 3 4

Water interruptions 1 5
The probability of water
Make cake Cake flops 2 3 interruptions is very low, but
it will have a very high
Deliver cake Cake is damaged en-route 3 3
impact if it occurs

MANCOSA 112
Principles of Project Management

Once the probability and impact have been scored, the two (2) scores are multiplied together to get a score
for each risk. For example, the risk of load shedding scored 4 for probability and 5 for impact.

The total score for the load shedding risk is 20. (4 x 5 = 20)
The risk of water interruptions scores 5. Probability 1 and Impact 5. (1x5 = 5)

Table 16 indicates that after the scores been completed, the project manager has an indication of which risks need
the most preparation and planning.

113 MANCOSA
 Principles of Project Management

Table 10 – 21st Birthday Party Project Risk Register.

Risk Register Water interruptions is ranked

18th and does not require
Activity Risk Risk much attention. Probability Impact Score Rank
No.

Select venue 1 No suitable venues available 2 5 10 7

2 Preferred venue is fully booked 3 5 15 4

Set up venue 3 Tables and chairs are dirty 2 3 6 14

4 Insufficient electrical points 4 5 20 1

Hold event 5 Load shedding 4 5 20 2

6 Bad weather 3 4 12 5

7 Water interruptions 1 5 5 18

Make cake 8 Cake flops 2 3 6 15

Deliver cake 9 Cake is damaged en-route 3 3 9 10

Post invitations 10 Post Office fails to deliver 4 5 20 3

Confirm numbers 11 Too many people attending 2 2 4 19

12 Too few people attending 2 4 8 11

Finalise seating plan 13 Feuding parties seated together 3 4 12 6

Book DJ 14 Cancels at the last minute 2 5 10 8

15 Gets drunk 2 4 8 12

Photographer 16 Does not arrive 10 5 5 17

17 Gets drunk 2 4 8 13

18 Loses data/pictures 1 5 5 16

Settle accounts 19 Funds not available 2 5 10 9

20 Speed point not operational 1 5 5 16

Adapted from own source. Risk no’s 4, 5 and 10 scored

20. They are ranked 1, 2 and
3 and are the highest priority
risks.

MANCOSA 114
Principles of Project Management

Risk Probability and Impact Matrix

A Risk Probability and Impact Matrix can be drawn up after defining the risks in the risk register and having
evaluated the risks according to their probability and impact.

Table 11 indicates where the risk is in terms of its probability and impact ranking. Using the risk register in the
previous section, the risk matrix will look as follows:
Risk no’s 4, 5 and
Table 11 - Risk Probability & Impact Matrix for the 21st Birthday Party. 10 have a
probability of 4 and

Risk Probability and Impact Matrix an impact of 5.

Very High

4 4, 5, 10
High
Probability

Moderate

3 9 6, 13 2

2 11 3, 8 12, 15, 17 1, 14, 19

Low
Very Low

1 7, 16, 18

1 2 3 4 5
Very Low Low Moderate High Very High

Impact

Risk no’s 7, 16 and 18

have a probability of 1
and an impact of 5.

Adapted from own source

Step 4 – Risk Response Strategy Selection

Oosthuizen and Venter (2018:301) argued that, having prioritised the risks that might affect the project, the team
prioritised the highest risks and submitted them to further mathematical and statistical analysis. This offers further
clarity and comprehension of the effects of the prioritised risks.

115 MANCOSA
 Principles of Project Management

The project team needs to build a risk response strategy to respond effectively to increasing threats. The types of
project risk response strategy are structured to reduce the probability and/or impact of the risk. For example, see
Table 18 of the Risk Response Strategy for the 21st Birthday Party.

 Avoid
Where the risk greatly outweighs the benefits, the team may opt to mitigate the risk by extending the timeline,
changing the scope, changing the project plan or, in extreme cases, fully stopping the project. In doing so, the
risk would have been minimised and completely excluded from the risk register.

We do this all the time in our daily life. Remember that you are heading to a restaurant at night, and you know
the dark alley is a shortcut to your goal. You also know that people get mugged in that alley on a regular basis;
by deciding to take a longer, safer route; by reducing the possibility of being mugged.

 Transfer
Another choice open to the team is to pass the effect and risk analysis to a third party. This is generally
achieved in the form of an insurance premium or an outsourcing option to the contractor who takes
responsibility and liability for the risks associated with the activity.

Many households have household insurance to cover liabilities that could harm the home. The insurance is
charged as a premium and if the house is damaged by cyclones, floods or fire or destroyed, the insurance
provider must respond to the damage and compensate for the repairs.

 Mitigate

Where the risk probability and impact can be reduced (mitigated), the team can prepare a risk response that
puts in place measures to reduce the impact or likelihood of the risk.

THINK POINT

Include the possibility of artefacts dropping on the construction site. The risk could
be minimized by installing screens in all exposed areas where tools and materials
could break. The probability may also be reduced by having a day-to-day inspection
of the site looking for potential falling hazards and removing them before they fall.

 Accept

If the team agrees that while there is a risk, the team does not believe it is important to take any action and
acknowledges the risks and consequences if they do. If a risk is acknowledged, the safest choice is to build
up a buffer of money, time or resources to deal with the risk should it occur. You do not need to know or
understand the answer to positive risks, but you need to understand what a positive risk is.

MANCOSA 116
 Principles of Project Management

A trigger is what calls the risk

response plan into action

Table 12 - Risk Response Strategy for the 21st Birthday Party.

Risk Response Plan
No Risk Prob Imp Score Rank Strategy Response Plan Trigger Responsible Date Signed

4 Insufficient 4 5 20 1 Mitigate Confirm with venue manager Booking venue Rajesh / / RJSH
electrical points that there is sufficient power
If possible, the risk of load
shedding could be avoided by Mitigate Purchase extension leads and Insufficient plugs Rajesh / / RJSH
changing the schedule. If not, it multiplugs
could be mitigated by using a Mitigate Hire generator Insufficient power Rajesh / / RJSH
5 Load shedding 4 5 generator.20 2 Avoid Schedule around load Booking venue Rajesh / / RJSH
shedding calendar
Mitigate Hire generator Set up venue Joan / / Joan PT
10 Post Office fails to 4 5 20 3 Avoid Send emails and call directly Post invites Tasha / / Tasha
deliver invites
2 Preferred venue is 3 5 15 4 Select venue Tasha / / Tasha
fully booked
6 Bad weather 3 4 12 5 Mitigate Move outdoor activities into Weather forecast Devon / / Devon
hall predicts rain
In this case, the team can mitigate Mitigate Have umbrellas available for Weather forecast Devon / / Devon
for rain and bad weather arriving guests predicts rain
Mitigate Valet service for parking Weather forecast Devon / / Devon
predicts rain
13 Feuding parties 3 4 12 6 Avoid Do not invite Send out invitations Tasha / / Tasha
seated together Mitigate Place opposing parties at Plan seating Tasha / / Tasha
different tables

Adapted from own source.

117 MANCOSA
 Principles of Project Management

Step 5 – Risk Response Action Planning

This step identifies specific actions required to implement the strategy. Responses can be reactive and proactive
(Oosthuizen and Venter, 2018).
 Reactive risk responses
Reactive risk responses are designed to be actioned if and when the risk occurs. These responses can be
thought of as a contingency plan that explains what we will do in the event of the risk event occurring.

 Proactive risk responses

Proactive risk responses are usually concerned with preserving flexibility in the project, thus making it more
robust in its ability to absorb or harness uncertain events. Proactive risk responses are carried out before the
risk occurs.

Step 6 – Risk Response Execution

Oosthuizen and Venter (2018:307) explains that the project manager has a clear responsibility to ensure that
implementation of the risk response plans and ensuring that the risk response actions are treated as any other
project task. During this step, the project team must monitor the effect of the actions, after they have been taken.
An important part of risk response planning is to predict the change in risk exposure that would be expected as a
result of the risk responses. The actual result should be reviewed to check if the reality matches the expectation.
A common way to ensure that risk management is a regular feature of each project status meeting in which all
risks and their responses should be reviewed and reported on with all other project tasks. In this way, risk
management becomes a mainstream project activity rather than extra work to be done when project tasks are
complete.

Step 7 – Risk Monitoring Control and Review

Risk monitoring and control is the responsibility of all members of the team. If a risk is caused, the person
responsible for handling the risk should implement a risk management plan. Risk reassessments should be carried
out on a regular basis and scores adjusted as circumstances change. If new risks are identified, the same analysis
and risk response planning should be carried out and added to the register. Likewise, if the risk profile improves,
the risks can be downgraded.

4.6 Summary
Egeland (2013) compares project management to a box of chocolates as you never know what is inside. Every
project is unique, and every project will have a set of risks associated with the project. While the risks can be
unknown before the start of the project, and some remain unknown after, by following the proper risk management
methodology from the beginning of the project the impact of most of the project risks can be minimized and, in
some cases, eliminated.

MANCOSA 118
Principles of Project Management

REVISION QUESTION
Statement: Project Quality Management is all about ensuring that the project
delivers what is expected to happen. This does not mean that a high-quality
product has to be supplied to the project. The charter and scope of the
project could call for a low-quality product. Discuss the above statement
using an acceptable illustration.

CASE STUDY
Read the case study on The Life Esidimeni Tragedy

The Life Esidimeni Tragedy: How 143 mentally ill South Africans were sent to their deaths

Details of the scandal have emerged through legal proceedings that have been broadcast live. Tragically, these
were deaths foretold. When word first emerged of the plan to move patients to the care homes, doctors, patient
advocacy groups and family members all pleaded with the government to halt it.

Some went to court to stop it, withdrawing their action only when the government agreed that patients would not
be moved without the families’ consent or to facilities that were not as good as Life Esidimeni. Yet, just a few
months later, the government broke its promise, moving patients so quickly and shambolically that many were sent
without medicines or medical records. So chaotic was the move that the authorities lost track of many of the
patients: 59 are still missing, and nine of the dead have not been identified.

The transfer of patients was ostensibly aimed at saving money. But an investigation by the health ombudsman, a
public watchdog, concluded that it would probably drive up costs. Ideological hostility to for-profit corporations
(such as Life Esidimeni) may have played a role. But it cannot explain why patients were handed over to charities
that were so plainly unsuitable.

The tragedy is far from unique. “Although you won’t find anything else on this scale, we hear reports on a daily
basis of mini-Esidimeni scandals around the country,” says Mark Heywood, one of the founders of Section 27, an
advocacy group that went to court to try to stop patients being moved. Jack Bloom, a shadow minister of health in
Gauteng province for the opposition Democratic Alliance, points to other crises, such as one in KwaZulu Natal, the
second-most-populous province, where hundreds of cancer patients have died because radiotherapy machines
are not working and hospitals are not staffed.

119 MANCOSA
 Principles of Project Management

Such cases highlight a wider failure in the health service because of “corruption, a breakdown of accountability
and a culture of impunity [within government]”, says Mr Heywood. There was ample evidence of all this at the
hearings into Life Esidimeni, where a string of senior officials has blamed others for the tragedy. Take, for example,
Makgabo Manamela, the province’s director of mental health. A report by the health ombudsman found that she
played a leading role in moving patients and put them at risk by illegally certifying the facilities they were moved to
when they were plainly unsuitable. Yet, under cross examination, Ms Manamela insisted that she should not be
blamed. “I was following the instructions of my superiors,” she said. “It was not the plan that people would pass on
[die].”

Her boss, Tiego Selebano, testified a few days later that he was not to blame either, since he too had been obeying
orders and had been under “pressure” from the then provincial heath minister, Qedani Mahlangu, to move the
patients. Ms Mahlangu, meanwhile, has yet to offer an excuse. Her lawyer told the legal proceedings in November
that she was too busy to testify before late January because she was studying financial markets and wealth
management at a British university.

None of the officials involved in the tragedy has been fired (though several have been suspended and face
disciplinary hearings), nor have any politicians other than Ms Mahlangu resigned. Lawyers say that there seems
to be enough evidence for prosecutors to bring criminal charges against officials or the managers of care homes.
But few expect this to happen, since the National Prosecuting Authority has become politicised under the
presidency of Mr Zuma, who faces 783 charges of fraud and corruption.

Many of those who lost loved ones say they do not want retribution, but merely the truth. “They told me lies,” says
Ms Phehla, as she struggles to understand how and why her daughter died. “Even now I want answers.”

[Link]
their-deaths Extract of an article having appeared in the Middle East and Africa section of the print edition under
the headline "Failed by the state" (11 Jan 2018)

Question:

Critically discuss how the project team could have prevented the death of 143 patients through proper risk
management?

MANCOSA 120
Principles of Project Management

Unit 4 - Answers to Activity, Think Point and Case Study

ACTIVITY ONE (1)
Using a project of your choosing, develop a Quality Management Plan
Answer:
Students should demonstrate their knowledge.

ACTIVITY TWO (2)

Answer:
Compare your final plan with your colleagues and participate in a brief conversation about how you have completed
the tasks.

ACTIVITY THREE (3)

Answer:
Students to demonstrate their knowledge on:
 Identifying and assigning resources
 Estimating costs;
 Scheduling the project;
 Determining the project budget.

THINK POINT 1 (ONE)

Answer:
The project failed in terms of the quality and design required.

THINK POINT TWO (2)

Answer:
The impact can be reduced by ensuring that everyone on site wears hard hats or that nets are caught above any
area where people may have to work. A further measure could be to ensure that the first aid officer is available
and trained to deal with injuries from falling objects. Part of the response plan may provide guidance for what to
do in the event of someone being injured by falling objects that would speed up the reaction time, etc. Both of
these steps are put in place to minimize the risk of the object dropping in the first place and to mitigate the effect if
the object falls.

CASE STUDY ONE (1)

Answer:
 Definition of risk management?
 Process of risk management – Initiation, Identification, assessment, response strategy, response action
planning, response execution, monitoring control and review.
 Based on the process, identify potential risks and apply the process to explain how the death could have been
prevented.

121 MANCOSA
 Principles of Project Management

Unit
5: Project Resource, Communication
and Stakeholder Management

MANCOSA 122
Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

5.1 Introduction  Introduce topic areas for the unit

5.2 Project Resource Management  Discuss the project resource management and their role in
a project

5.3 Project Communication  Develop a Communications Management Plan that defines

Management participants, communication processes, tools and methods
required for a project communication

5.4 Project Stakeholder Management  Discuss an appropriate stakeholder management strategy

to effectively engage stakeholders throughout the project

5.5 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in

Perspective. 2nd Edition. Oxford University Press.

123 MANCOSA
 Principles of Project Management

5.1 Introduction
Projects require people with specific abilities to complete them successfully. In this unit, we will first explore project
resource management – a professional field that is all about preparing, organizing and creating a project team in
order to put together the best people with the right expertise to work together to ensure the successful completion
of the project. The unit considers project coordination management, which includes processes related to efficient
communication and management of project-related knowledge. The last section, addresses project stakeholder
management, emphasizing the value of project managers and their teams to take care of all those involved or
impacted by the project and to handle the project.

5.2 Project Resource Management

Successful projects rely on the success of the project team, the leadership and the management of the team. This
segment focuses on team planning, growth and management. You should be able to at the end of the section:

5.2.1 What is Project Resource Management?

Projects involve people with appropriate expertise to get them to a productive conclusion. Oosthuizen and Venter
(2018:374) state that "because resources are limited, the optimal allocation of resources for the implementation of
the strategy through projects is essential." For most cases, project team members tend to do their regular jobs
while still working on projects. Project Resource Management is also concerned with the planning, management
and development of the project team so that the right people, with the right skill set, can work together to achieve
a successful completion of the project.

5.2.2 Enacting Business Strategy through People

Oosthuizen and Venter (2018:374) posits that “business strategy is carried out through people making changes to
everyday activities.” This may involve changes to computer systems, facilities and support functions, the most
successful strategic change initiatives are those which involve projects carried out by people in their daily business.
The authors further explain the role of people in business is carried out through projects in the following ways:

 The Top-Down Approach

A change initiative which is based on a directive from executive management through middle management to
the people doing the work. This is a one-way communication from top – down.

 The Consultative Approach

Workshops are held various stakeholders and role players involved in order to seek support to allow
operational and support functions of business to influence the development of strategy. This communication
is “bi-directional” – top down and bottom up.

MANCOSA 124
Principles of Project Management

 Stakeholder Approach
This approach involves stakeholders from outside the business. The communication is often one of networks
and represents multi directional exchanges of information.

5.2.3 The difference between managing people in operational environments vs project environments

Oosthuizen and Venter (2018:375) posits that operations are ongoing, cyclical and repetitive. For example, Nestle,
will continue to manufacture chocolate bars as long as the machines are in a good working condition, and supplied
with the materials to keep the production line operating.

Projects however, are temporary and unique. A typical chocolate project may involve converting the manufacturing
plant from one type of chocolate bar to a new or different chocolate bar, e.g. the machinery required to manufacture
Nestle Bar One is different to that of Nestle Aero.

THINK POINTS
 What is the relevance of project resource management to project
management?

5.2.4 Project Team

When the project management plan has been finalised and the project reaches the implementation phase of its
lifecycle, the project manager would have to procure the resources defined by the project resource plan as required
for the project. It would include evaluating the resource requirements defined in the Project Resources process
and developing a strategy to hire or obtain project resources from within the organisation.

1. Development Phases of Project Teams

If the team has been recruited, it is the duty of the Project Manager to grow the team to perform at its best. This
will include preparation, team building and personal growth. Project managers may have to build a team in several
ways, depending on the complexity of the project and the availability of expertise within the organisation and the
marketplace. In order to clarify how project teams evolve, Oosthuizen and Venter (2018:383) describe the five (5)
stages of project team development:

 Forming
The stage in which the team first comes together, and all participants determine where they fit into the
team. The emphasis is very much on all the tasks, and every member of the team is trying to "be good."

125 MANCOSA
 Principles of Project Management

 Storming
Commitment and direction from the project manager, the team starts to set guidelines for how they work
together.

 Norming
After working through the storming stage, the team starts to embrace, appreciate and trust each other.
The team is now beginning to be successful and to see itself as a team rather than a group of individuals.

 Performing
While working together and learning to work together, the team becomes successful and learns to function
independently.

 Adjourning
Once the team's objectives are met and the project begins to be near completion, the team enters its final
phase where it disengages from the team and moves on to other things.

Figure 25 represents the success of the team as they progress through the stages. Remember how the
performance of the team deteriorates during the storming stage. The primary goal in coordinating team building
and growth activities is to try to push the team through the Forming and Storming stages as quickly as possible so
that the advantages in working in the process of success can be realised.

Figure 25 - Tucker Ladder Model for Team Development

Source - Tuckman and Jensen (1977).

MANCOSA 126
Principles of Project Management

2. Manage the Project Team

When the project is being carried out, the project manager is responsible for overseeing the project team. This
process allows the manager to monitor the performance of the team and to handle any changes that need to be
made. The responsibility of the project manager is to accurately delegate the specific roles of the project to the
chosen people. It is vital for the success of the project that only those people who are qualified to perform the work
are adequately trained to perform the various tasks. You set up a real "project squad" in this way. In order for the
team to be successful, its members must enjoy a high degree of teamwork and cooperation. As a result, every
member of the team must be confident and satisfied with his / her individual tasks. Around the same time,
everybody must be transparent about how each of its separate parts contributes to the project. In short, the project
manager must exercise considerable leadership skills by understanding, motivating and guiding in a way that
satisfies the personal needs of each team member.

This allows the project manager to communicate very clearly to each member of the project team:
• What are the goals and priorities of the project;
• What needs to be done;
• For whom it is;
• In which order;
• By when;
• What kind of criteria.

This can be greatly encouraged by cultivating a participation and teamwork attitude. In order to allow effective
teamwork, the project manager must give both the necessary authority and responsibility to the members of his or
her team. Growing person or team must be able to manage their own activities based on the work they will be
contributing to. Many projects face technological challenges related to the technology of the project, whether in
information systems, engineering, construction or administration however, these are in the field of technology
involved in the project and not in the field of project management, so the project manager must have adequate
knowledge of the technology to be able to understand the issues.

For example, there will always be issues that need to be addressed by the project manager. Many issues can
become "issues" that stand in the way of progress. When the project manager does not have sufficient authority
to address the problem, it should be immediately "escalated" to the sponsor of the project, or even higher resolution
management. Conflicts should be seen constructively and resolved. Through this way, team leaders increase their
contribution to the goals and priorities of the project. Inevitable, there would be "risks" that may transform into
incidents that must also be controlled.

127 MANCOSA
 Principles of Project Management

5.3 Project Communication Management

The position of project planning and management is covered by this section. It includes the coordination of
correspondence, the production and dissemination of information and reporting to the relevant parties. You will be
exposed to teamwork, communication, and management styles. Oosthuizen and Venter (2018:343) claim that
communication is not always highlighted as the most critical ability of the project manager. It is, however, not just
that communication is an important part of project management, it is the very fabric of project management.

5.3.1 Structure of Project Communication

Oosthuizen and Venter (2018:344) advises that communication on projects is not simply informing stakeholders
about the status of the project, it is much broader and deeper than that. Table 13 shows the complexity of efficient
communication and management of project-related material.

Table 13 - Scope of Communication

Receiving information Reading

Listening

Observing

Sensing

Processing information Collating

Filtering

Analysing

Interpreting

Disseminating Presenting verbally and visually

information
Writing

Source - Oosthuizen and Venter: 2018:344

Communications in a Project Environment

Communicating is a broader discipline and involves a substantial body of knowledge that is not unique to the
project context however, in order for effective communication to take place, the recipient must have understood
the message exactly as intended by the sender, which is very often not the case. For example:
 Sender-receiver models (feedback loops, barriers to communication, etc.);
 Choice of media (when to communicate in writing versus when to communicate orally; when to
 write an informal memo versus when to write a formal report; etc.);
 Writing style (active versus passive voice, sentence structure word choice, etc.);

MANCOSA 128
Principles of Project Management

 Presentation techniques (body language, design of visual aids, etc.);

 Management techniques (preparing a meeting agenda, dealing with conflict, etc.).

Project communication embraces a large body of knowledge and within a project management context,
communication focuses on:
 How the project team members communicate with one another;
 How the project team, and specifically the project manager, liaise with senior management and
 internal stakeholders on project resources and progress;
 How the project team liaise with external stakeholders such as the media and community leaders;
 The distribution of information to all project stakeholders and role-players using appropriate
 media and technology;
 The planning and compilation of a project communication plan;
 Project-related documentation (progress reports, etc.).

5.3.2 Project Meetings

To a project manager, meetings are indispensable. Oosthuizen and Venter (2018:350) states that meetings are
an integral part of business endeavours, especially in the corporate environment. Project meetings can be
categorised into three (3) groups:

 Meetings about the project

The primary purpose of such meetings is to set up the project, and review how the project is progressing.
These meetings are attended by managers and project team members who have the responsibility to the
organisation for the successful completion of the project.

 Meetings about the deliverable

These meetings typically take the form of workshops to identify business requirements of the deliverable
and the design of its features and capabilities. Attendance to these workshops would include people with
business and technical knowledge required to meet the requirements of the project deliverable.

 Meetings about the team

The primary purpose of such meetings is to ensure the effective team performance. More often than not,
team members may have no history of working together, and may have different requirements to and
from the project as well as different allegiances within the organisation.

129 MANCOSA
 Principles of Project Management

5.3.3 Project Communication Management Plan

Oosthuizen and Venter (2018:362) states that a project communication plan is a written technique that forgets the
two-way flow of the right information to and from the right project stakeholders at the right moment. The plan will
identify the needs of the stakeholders and how the information on the project will be shared and handled. Refer to
Table 14 for an example of a Project Communication Plan.
The PM is responsible to produce monthly
 Who needs to be contacted?
performance reports of a formal nature using
 What is to be conveyed and in what format? the form template MPR1 for the Board of
Directors, Sponsor and the Project
 When will it have to be conveyed and how often?
Management Office
 Who is responsible for this communication?
Table 14 - Example of a Project Communications Plan
Communication Plan
Name of Description Who to Communication Frequency Responsible Form Ref
Communication Receive Channel Planned to Produce
Performance Monthly project BOD, Formal Monthly PM MPR1
Reports reports Sponsor, PMO

Ad-hoc reports PM, Sponsor, Informal Ad-hoc PM

PMO
Exception PM, Sponsor, Dashboard Weekly PM DB1
reports PMO

Meetings Monthly team Project team Minutes of Monthly Project MM1

meetings meeting Administrator
Site meetings Project team Minutes of Monthly PM SM1
and meeting
contractors
Key PM, Sponsor Minutes of Monthly PM KSM1
stakeholder meeting
meetings
Financial Budget reports Accountant Balance Sheet Accountant BS2
Change PM, Sponsor, Change request PM CRF
requests Accountant form
Drawings Civil drawings Contractors, A1 AutoCAD As per Civil engineers /
PMO Drawing changes
Electrical Contractors, A1 AutoCAD As per Electrical /
drawings PMO Drawing changes engineers

Adapted from own source.

MANCOSA 130
Principles of Project Management

5.4 Project Stakeholder Management

The scope of stakeholder engagement activities extends from the initial phase to the completion of the project.
You will be introduced to project stakeholder management in this section. It includes handling the recognition and
participation of stakeholders. You can learn how to examine the essence of stakeholder processes and summarize
their effect on project success. Effective approaches for stakeholder management will be discussed to propose an
appropriate stakeholder engagement strategy. We will discuss some of the key deliverables for stakeholder
involvement, including the stakeholder management plan and the stakeholder list.

5.4.1 What is Stakeholder Management?

Each project includes people who are interested in the project or who are in any way influenced by the project.
Stakeholder Management addresses the need for project managers and their teams to take care of all those
involved or impacted by the project and to coordinate their needs and aspirations.

5.4.2 Who are Stakeholders?

Oosthuizen and Venter (2018:318) reflect on Freeman’s popular definition that “a stakeholder in an organisation is
(by definition) any group or individual who can affect or is affected by the achievement of the organisation’s
objectives.” Involved parties can differ across projects. The list of potential stakeholders can be very lengthy and
will require a reasonable amount of time and effort to classify. Table 15 below lists some of the potential or common
stakeholders.

Table 15 - List of Potential Stakeholders.

Stakeholders
Government
Investors (including financiers)
Social Action Groups
Employees
The Customer
Competition
The Public
Suppliers
The Environment
Communities (local and global)

Source - Oosthuizen and Venter (2018:319)

131 MANCOSA
 Principles of Project Management

5.4.3 Stakeholder Management Process

Oosthuizen and Venter (2018:320) explains that the process to manage stakeholders does not have to be complex.
The process should be flexible through the project lifecycle. Figure 26 depicts the four (4) processes to manage
stakeholders.

Step 1 – Identify the Stakeholders

Step 2 – Analyse Stakeholder Relationships

Step 3 – Develop the Stakeholder Strategy

Step 4 – Engage and Communicate

Figure 26 - The Stakeholder Management Process

Source - Oosthuizen and Venter (2018:320)

Step 1 - Identify the Stakeholders

The process of defining stakeholders is one of the first processes to be performed in any project. It is one (1) of
only two (2) processes within the initiation process group. This includes recognising and understanding the effect
of stakeholders on the project. Oosthuizen and Venter (2018:320) posits that before project managers can identify
stakeholders, the nature and purpose of the project needs to be understood. The project cannot be completely
defined until its relevant stakeholders and their interests have been considered. This should be considered as a
key part of the project definition. The project’s definition informs stakeholder management, which in turn influences
project definition.

MANCOSA 132
Principles of Project Management

Oosthuizen and Venter (2018:321) explains that there are several techniques that can be used to identify
stakeholders, ranging from informal (such as professional judgement and brainstorming) to formal (such as
structured interviews, survey, sampling and research). The choice of chosen technique should ideally fit the
requirements of the project and the degree of participation required.

 Stakeholder Analysis
The stakeholder analysis takes a somewhat similar methodology to the risk analysis methodology. A list of
stakeholders can be identified and documented in the log by brainstorming with the team and looking at
previous projects.

 Expert Judgement
More insight into the needs and desires of stakeholders can be gained by interviewing specialists around the
project.

 Meetings
Through engaging with key stakeholders and the team, the priorities and aspirations of established
stakeholders can be better defined and understood.

Stakeholder Register
A stakeholder registry shall be drawn up having defined the stakeholders involved in the project. Table 16 provides
a preview of the sort of information that should be included in a standard stakeholder register:

Table 16 - Sample of information included in a Stakeholder Register

Information Example
Stakeholder reference number 1
Type of stakeholder Client
Name of the stakeholder Mr Hastings
What is their power or influence score? (1 - 5) 5
What is their interest in the project score? 5
Name of organization N/A
What are the stakeholder’s expectations? Stay within budget
How could they influence the project? Could cancel / not pay
Are they internal or external to the project Internal
Are they supporters or resisters to the project Supporter
Contact information 082 123 4567
How would they like to be communicated with? Verbally

133 MANCOSA
 Principles of Project Management

Who will be responsible for managing any interaction with them? Joan (PM)
Adapted from own source.

Step 2 – Analyse Stakeholder Relationships

Oosthuizen and Venter (2018:325) advises that once project stakeholders have been identified, the project
manager should analyse the relationship between the project and its stakeholders. This analyse will require the
project manager to make important assessments about the levels of power and interest/influence that different
stakeholders have in the project.

Power and Predictability Matrix

Oosthuizen and Venter (2018:327) propose that by evaluating the power and impact of the stakeholder and plotting
their scores on the grid, the project team may build strategies to handle different stakeholders based on their grid
position. The first step is to plot the scores of stakeholders on the grid as was done in the Risk Management
Knowledge Area. The stakeholders’ power and influence score is on the Y axis and their interest score is on the X
axis. Figure 27 illustrates this step:

No Stakeholder Power Interest

1 Mr Hastings – 5 5
Client (Sponsor)
2 Joan (PM) 5 5
3 Project Team 3 5
4 Venue Manager 2 5
5 Caterers 4 3
6 Photographer 2 3
7 DJ 2 3
8 Neighbours 1 5
9 Guests 2 5

Figure 27 - Power and Predictability Matrix

.Source - Oosthuizen and Venter (2018:327) and own source.

Oosthuizen and Venter (2018:326) argue that the matrix should be divided into four (4) broader areas
representing a high or low power rating and a high and low interest rating as shown in Figure 28 and Table
23.

MANCOSA 134
Principles of Project Management

Figure 28 - High or Low Power rating and a High and Low Interest rating.
Source - Oosthuizen and Venter (2018:328)

Table 17 - Tabular illustration of High or Low Power rating and a High and Low Interest rating.

Power Score Is Interest Score Is Suggested Strategy Focus Is Type of Stakeholder

To
High High Manage the stakeholder closely Type 1 - Pivotal
High Low Keep the stakeholder satisfied Type 4 - Dormant
Low High Keep the stakeholder informed Type 2 - Interested
Low Low Monitor the stakeholder Type 3 - Marginal

As the two (2) diagrams are merged, the parties collapse into quadrants or combinations of quadrants. A
strategy that suits them can be defined on the basis of where they are.

135 MANCOSA
 Principles of Project Management

Figure 29 - High or Low Power rating and a High and Low Interest rating
Adapted from own source.

Stakeholders 1 and 2 need to be handled very closely, as shown in Figure 29. Stakeholder 5 wants similar
consideration, but with an emphasis on keeping him / her happy.

Stakeholders 4, 8 and 9 need to be kept updated and stakeholders 3 need to be handled closely with more
emphasis on being updated.

This approach is not prescriptive but offers a framework for developing a plan for managing stakeholders. A
strategy that meets the needs and desires of stakeholders can be built on the basis of the above criteria (see Table
24). The project manager can also prioritise the level of attention being paid to stakeholders.

MANCOSA 136
Principles of Project Management

Table 18 - Sample of a Stakeholder Register.

Stakeholder Register
No Stakeholder Power/ Interest Score Organisation Expectations & Status Contact Managed
Influence Influence (Internal, No. by
External,
Supporter
/ Resister
1 Mr Hastings – 5 5 25 Expects a well- Internal, 082 123 Joan –
Client run function Supporter 4567 PM
(Sponsor)
2 Joan (Project 5 5 25 Projects R Us High influence on Internal, 082 123 Sponsor
Manager) the outcome of Supporter 4567
the project
3 Project Team 3 5 15 Projects R Us Expect to be Internal, Joan –
managed well Supporter PM
and rewarded for
hard work
4 Venue 2 5 10 IDL Venue Expects to be External, 033 Joan –
Manager paid on time and Supporter 8452300 PM
advised in
advance of any
changes
5 Caterers 4 3 12 Expects to be External, 031 Pete
paid on time and Neutral 2341200
advised in
advance of any
changes
6 Photographer 2 4 8 Place to set up 087 150 Pete
and access to the 6789
bar
7 DJ 2 4 8 Sound stage, External 031 Pete
payment on time, Neutral 8321000
special music
Stakeholders are scored based requests and
on their Power / Influence and playlists to be
supplied in
Interest. Mr Hastings being the
advance
8 Venue client
1 is scored
5 5 for Power
5 and No noise after External 033 Venue
Neighbours 5 for Interest 22:00 Are hostile Resister 3875381 Manager
about late night
noise and
fireworks
9 Guests 2 5 10 Wants to have a Internal Joan -
place to park, and PM
have fun and External
enjoy good food
10 Etc.

Adapted from own source.

137 MANCOSA
 Principles of Project Management

Step 3 – Develop the Stakeholder Strategy

Oosthuizen and Venter (2018:328) explains that once the project manager has identified and analysed the project
stakeholders, these insights can be used to develop stakeholder strategies. In broad terms, this will involve using
the findings from the stakeholder’s analysis to identify the actions that should be adopted to manage the
stakeholder’s influences on the project.

Oosthuizen and Venter (2018:329) further stated that the project manager’s ability to develop effective stakeholder
management skills will depend on how well the project manager is able to identify, analyse and define stakeholder
relationships and then develop appropriate response strategies. Over and above the direct relationship between
the project and the stakeholders, the project managers also need to consider the relationship between stakeholders
when developing his/her stakeholder strategy.

Step 4 – Engage and Communicate

Oosthuizen and Venter (2018:330) discusses the fourth step in the process to engage and communicate with the
project stakeholders. This entails ensuring that the strategies developed in the previous step are appropriately
implemented. These strategies need to be carefully implemented because the project’s relationships with the
stakeholder is likely to change over the course of the project.

Through monitoring and control the interaction between the project and the stakeholders, the project manager will
change how they communicate with the stakeholders and alter the register and stakeholder management plan as
the project progresses.

An important part of effective stakeholder management is to ensure that the wider project team has a clear view
of stakeholders and the project's approach to managing those stakeholders. Oosthuizen and Venter (18:330).

Stakeholder management is practiced through constructive communication as part of the relationship management
plan and through the development of interpersonal skills that create trust and help resolve conflicts. The
management expertise of the project manager and the team can also lead to successful stakeholder management.

READING
Read the case study by Eva Riis and Pernille Eskeriod “How to gain value
from a Project Management Model”.
Available at: [Link]
[Accessed on 24 June 2020]

MANCOSA 138
Principles of Project Management

5.5 Summary
This unit focussed on Communication and Risk Management. It showed that poor communication can result in
misunderstandings between stakeholders hence the need to have a clear Project Management Communication
Plan. It also looked at risk and presented risk mitigation measures. It also presented the tools and techniques used
in risk management.

ACTIVITY
Who do you think would the stakeholders be in a project to build a bicycle
track though and around Zoo Lake in Johannesburg?

CASE STUDY:
Read the Case Study below and answer the questions that follow:

E-Toll Road Project

N.S. Matsiliza (2016) conducted research into the E-toll road project implementation. The main purpose of this
study was to assess the observations that were made regarding critical factors involved in the e-tolls project.
Although the project evidently generated challenges in its incipient stage, the project manager (i.e. SANRAL) and
the Gauteng Government continued with its administration that later was to place the project under dire constraints.
The implementation of the GFIP project partly achieved its objectives relating to the need to increase the capacity
of the economy through the levying of an e-toll on all road users, and the immediate effect on job creation. The
setback of these objectives is demonstrated by refusal of motorists and stakeholders using the N1 highway to
accept the project and pay the fees levied. The problem of congestion came about as a result of the rising levels
of vehicle ownership, a phenomenon, at least in part, that was spurred on by the growth of the middle class. Such
growth was coming to place ever more pressure on the existing infrastructure, resulting in the need to adopt a
strategy that was to provide a user-friendly transport model. In conclusion, some of the critical factors that were
overlooked and affected the E-Toll project’s success enabled the prevailing threats to be seen as emanating from
the decision taken by SANRAL and the Gauteng Government, lack of proper consultation, excessive project costs
due to delays and rejection of the project by the stakeholders concerned. Even though the task team that was
mandated to investigate the causes of this rejection African Journal of Hospitality, Tourism and Leisure Volume 5
(1) - (2016) ISSN: 2223-814X Copyright: © 2016 AJHTL - Open Access- Online @ http//: [Link] 8
recommended that the initial e-toll rates be halved, the solution has not yet come to alter the status quo to any
significant extent. SANRAL and the government had clearly used a top-down approach in decision making relating
to the project planning and implementation. Both bodies overlooked the warning signs in respect of the risk factors,
hence leading to the overall rejection of the e-tolls project by its key stakeholders.

139 MANCOSA
 Principles of Project Management

Extract - Critical Factors in Respect of Managing the E-Toll Road Project in Gauteng, South Africa. Author
N.S. Matsiliza (2016)

Questions
(a) From the objectives of project management, i.e. Cost, Schedule and Scope, critically discuss whether the E-
tolls project was successfully implemented – state your assumptions, if any.
(b) Identify the main critical factor which lead to the current situation whereby the people are not paying for E-
tolls.
(c) What lessons can be drawn from this case study?

REVISION EXERCISE

1. Why do you think teams are more effective than individuals working on
their own?
2. How could this contribute to the success of a project?
3. Why does communication play a pivotal role in any project?
4. In what ways other than project meetings could the project manager
communicate with team members and stakeholders?

MANCOSA 140
Principles of Project Management

Unit 5 - Answers to Activity, Think Point and Case Study

ACTIVITY ONE (1)

Answer:
Students to demonstrate knowledge of stakeholders. A few stakeholders of Johannesburg Zoo has been listed
as an example:
 Residents of the area
 Gauteng Metro
 Visitors to the Zoo
 Etc.

THINK POINT ONE (1)

Answer:
Projects involve people with appropriate expertise to get them to a productive conclusion. Successful projects rely
on the success of the project team, the leadership, and the management of the team.

CASE STUDY ONE (1)

Answers:
(a) Learner must discuss if they think the project was completed within time, cost and scope? – provide
assumptions etc.

(b) There are many critical factors in a project like E-toll. The main factor causing people not to pay is the with
regards to Client Consultation and Participation.

(c) What we can learn? – a project cannot be successful is the stakeholder’s expectations are not managed
properly

141 MANCOSA
 Principles of Project Management

Unit
6:
Project Closure

MANCOSA 142
Principles of Project Management

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT

6.1 Introduction  Introduce topic areas for the unit

6.2 Triggers to Project Closure  Summarise and list project closing tasks and outputs

6.3 Project Closure Activities  Discuss the process of closing a project performed as part
of project integration management

6.4 Lessons Learned  Explain several best practices used in project management

6.5 Summary  Summarise topic areas covered in unit

Prescribed and Recommended Textbooks/Readings

 Oosthuizen. T.F.J. and Venter, R. (2018). Project Management in Perspective.

2nd Edition. Oxford University Press.

143 MANCOSA
 Principles of Project Management

6.1 Introduction
Project closure is the last process of the Integrated Management knowledge area. Project closure focuses on
closing out all project management knowledge area because there are several processes and activities that are
executed in all other knowledge areas. Close projects or phase process will ensure successful completion of these
activities and processes as well.

The main purpose of the project closure process is collecting all project documents, getting final acceptance
archiving documents and finalizing the project officially. Project Closure is also referred to “Project Closeout” which
is a formal process to end a project, either because it is completed, or because it has been terminated.

6.2 Triggers to Project Closure

Oosthuizen and Venter (2018:263-264) refer to two (2) reasons that trigger the project closure:

 Project completion
When the project is completed successfully, the close project process should be implemented.

 Early Project termination

Oosthuizen and Venter (2018:264) recommends that the close project process should be implemented even
if a project stops or it is terminated. Projects can be terminated if it is seen that the project objectives are no
longer valid, or project objectives will not be met. Project closure must be done appropriately, i.e. Why the
project is terminated, reasons of termination, last status of the project, last performance of the project, latest
project documents etc. must be collected and archived in the organisational process assets library. This is
crucial because when a similar project will be initiated, records of this project can be checked to get the lessons
learned from the termination.

6.3 Project Closure Activities

Oosthuizen and Venter (2018:264) posits that the project manager and project team perform several activities as
part of the project closure phase. The activities listed below assist in an orderly completion and shutting down of
the project.

Ensuring that all work is completed as per scope and plan.

Once the project is closing, all deliverables of the project must have been completed and delivered to the customer.

Notifying the client of project completion and ensuring that delivery is accomplished
The customer will be requested to indicate acceptance and/or satisfaction by signing a formal document stating
that the project’s final product, as requested, has been delivered.

MANCOSA 144
Principles of Project Management

Obtaining acceptance of the product by the client

Formal acceptance of the project and project deliverables are taken from the customer. Usually, the customer
presents a written document, it can be an email or a signed off document, which states that the project has been
completed.

Ensuring that documentation is complete, including the preparation of the closure report
The project manager will use a checklist to make sure that all project documents have been completed with final
entries, and then prepare the project closure report. Storing project records of completed projects is important to
ensure:
 The required documents are updated to reflect the completion of activities on the project
 Accurate historical data exists. This can be used to assist in the planning of future similar projects
 Project files reflect final actual values in terms of time, cost, functionality and quality. This can be compared
against the planned values
 Specification sheets reflect how the deliverables look and perform
 Contractual and procurements records reflect any modifications or contractual exceptions

Ensuring final billing and the payment of invoices is conducted

Since the project is closing, you should complete any remaining payments that need to be made to the suppliers
or partners. The procurements steps are also to be completed.

Redistributing project team members, materials, equipment or any other resources to appropriate places
After the project is completed successfully, all assignments of the project resources are closed, lessons learnt
inputs from the project resources are collected and then these resources are released respectively. Project closure
is as important as the other project life cycle phases. These activities must, therefore, be taken into consideration
for better outcomes in future projects.

Closing of contracts using legal counsel, if required

Where external suppliers were used, the project manager may ask a legal expert to verify that all conditions of the
contract have been compiled with, and that the contract can be closed to the satisfaction of the organisation and
supplier.

Recording and archiving all nondisclosure documents

Nondisclosure agreements (NDA’s) are legal contracts between at least two parties that outlines confidential
materials or knowledge the parties wish to share with one another for certain purposes but wish to restrict from
generalised use. The external parties involved in a project are usually required to sign nondisclosure agreements
(NDAs) before being allowed to work on the project. During the project closure, the conditions of the confidentiality
after the project has been completed are emphasised.

145 MANCOSA
 Principles of Project Management

Determining what records to keep

Project records are archived to assist in the later audit of the project. The project manager must decide which
records need to be kept, and which records can be disposed of.

Ensuring that such documents are stored in proper places and that the responsibility for document
retention is turned over to the client
Collected documents are finalised. Final versions of the project management plan and all necessary documents
about the project are archived in a manner that will assist with easy future retrieval. Some project records (for
example, user manuals, training materials and product procedures) will be used by the customer and ownership
must be transferred to the customer.

Ascertaining any product support requirements, deciding how such support will be delivered and
assigning responsibility
Once the product of the project has been accepted by the customer, the project manager may still be required to
provide support. This would be described in warranty/support documentation.

Overseeing the closing of the project’s book

If all obligations regarding payments have been met, the project manager must ensure that the final accounting
closure of the finances of the project.

READING
Read the case study by Hessel Friedlander “Did everything right but got it
wrong”
Available at: [Link]
[Accessed on 24 June 2020]

6.4 Lessons Learned

Lessons learnt is collected and gathered from all stakeholders. Lessons learned documentation is stored in the
organisational process assets of the company. The lessons learnt report is a collection of positive and negative
lessons learnt by all stakeholders during the project and a template is shown in the Table 19 below:

MANCOSA 146
Principles of Project Management

Table 19 – Lessons Learned Report Template.

Project Name Enter the project name Date Enter the Date (dd/mm/yy)
Lessons learned are recorded

Project Lifecycle Information

Project Lifecycle and Project Project Funding Acquisition System

Phases (select one Management Approval Development
Lifecycle and Phase
Requirement Design Initiation Planning
only)
Analysis

Project Closeout Contracting Implementation Product Acceptance

System Development Test

Termination

Knowledge Areas Lessons Learned What Worked Well Lessons Learned that What Didn’t Work Well
that Worked Recommendation Didn’t Work Recommendation

Scope Describe the lessons Provide a recommendation Describe the lessons Provide a recommendation
learned that worked for continued use for each learned that didn’t work for improvement for each
so that a novice would lesson learned that worked so that a novice would lesson learned that didn’t
understand. well. understand. Add/delete work well. Include details
Add/delete numbers numbers as needed for such as: Role, Position of
Add/delete numbers as
as needed for each each knowledge area. who needs to make the
needed for each
knowledge area. change, etc.
knowledge area.

Time

Cost

Quality

Communication

Risk Management

Project Resources

Procurement

Source – Clements and Gido (2018)

6.5 Summary
Looking back over the various phases of the project as the entire undertaking comes to an end is an important
task. Project managers must make sure no pieces have been left undone. During this phase the project manager
will meet with team leaders to close out all work orders related to individual team participation. It is important to
be sure that all details related to the procurement process throughout the project have been properly documented.
It is common for some goods and services to change throughout a project; all necessary paperwork regarding
substitutions and any resulting change in budgetary allotment must be reflected. Closing out invoices and preparing
the final report in a timely manner gives a good impression about the project and the due diligence of the project
manager. Lesson learned should also be documented.

147 MANCOSA
 Principles of Project Management

KNOWLEDGE CHECK QUESTION

Discuss the reasons why the project must be formally closed.

REVISION EXERCISE:
What are the most important project closure activities?

Case Study:
In relations of the case study below and using an example from your personal
experience, critically discuss the concept of post project review and with the
aid of a close out report, identify and explain the lessons learned.

Post Project Reviews: Lessons Never Learnt

In most organisations, there is no lessons learnt process and the organization suffers from the same mistakes on
one project after another. The same cross functional conflicts that caused a project to fail also causes the people
involved to learn no lessons from the failure. Let’s take a look at an average lesson learned session.

Poking Through the Wreckage

Eager to begin your lessons learned session, you walk into the conference room and find you’re the first one to
arrive. As you think back over the project failure, you just managing, a dominant memory was people shouting the
same phrase at each other, “No you are accountable!”

When you’re weren’t listening to that, team members were engaged in other shouting matches;
“You can’t keep making changes or we’ll never to get to finish!”
“You never tell us about delays until the last minute!”
“I don’t care that you’ve already finishing testing, this is not what we want!”
“What’s this project really about anyway?”

Usually, post project reviews are poorly attended and rather than offering an opportunity for learning and
improvement, they often slide into finger-pointing, blame avoidance and a continuation of the conflicts that
developed during the project. Neither the project team members, the users, nor the project manager learn anything
from this process of poking through the wreckage. The wounds may be too fresh and the effort seems pointless.
Worst of all, the organisation’s process for doing projects don’t get better and the same problems wreck project
after project. But there is an alternative.

MANCOSA 148
Principles of Project Management

Living “Lessons Learned”

What we need instead is a living lessons learned process that gives the organization and its project managers an
opportunity for continuous improvement. It may be nice if the time we invest in our lessons learned can positively
affect underway projects and also reinforce the use of a consistent methodology for project management.
Adapted from [Link] by Dick Billows.

Question:

In relations to the above case study and using an example from your personal experience:
1. Critically discuss the concept of post project review
2. With the aid of a close out report, identify and explain the lessons learned.

149 MANCOSA
 Principles of Project Management

Unit 6 - Answers to Activity, Think Point and Case Study

KNOWLEDGE CHECK QUESTION ONE (1)

Answer:

It is important in closing projects that all activities are finalised and the completed project is transferred to the
appropriate people. In situations where a project was not completed but cancelled, steps must still be taken to
bring the project to closure.

CASE STUDY ONE (1)

Answer:

5. The closing stage of a project comprises all the final processes needed to close out a project and deliver final
products and reports to the stakeholders. This stage ensures that all documents and deliverables are
organised and handed over to the relevant stakeholder’s / business units. Also, any remaining contractual
obligations, payments, vendor evaluations, etc. is done during the project closing stage.
6. The Project Management Plan was poorly designed and implemented, i.e. Project Charter, Project Scope
Creep and Project Time Management.

MANCOSA 150
Principles of Project Management

Answers to Revision Questions

UNIT 1

REVISION QUESTION ONE (1)

Choose an organisation of your choice, map its structure and provide an analysis of whether the organisation’s
strucuture is functional, matrix or project based.

REVISION QUESTION TWO (2)

UNIT TWO

REVISION QUESTION ONE (2)

Answer:
Students to demonstrate their knowledge by preparing a Project Charter for the said project. Answers will differ
from student to student. Compare the answers with peers.

151 MANCOSA
 Principles of Project Management

Project Charter
Project Title
Client / Company
Sponsor
Project Manager
Date Initialized Date Appointed

Purpose or Justification of the Project

Description of the Project (Scope Statement

Explanation of what the project must deliver to honor the Scope Statement (Scope of Work)

Estimated Budgetary Estimated Duration of Project from Approval of Delivery:

Requirements
R Days / Weeks / Months
Milestones (Key Dates)
Date Relevance to the Project

Identified Risks (High Level Risk Analysis that Relates to the Project as a Whole)
Date Relevance to the Project

Stakeholders
Stakeholder Description of How They May Affect or be Affected by the Project

MANCOSA 152
Principles of Project Management

Criteria for Project Success

Objectives Criteria for Success To Be Accepted By
Scope (What is being
delivered?)
Time (When it is being
delivered?)
Cost (How much will it cost
to deliver?)
Quality (What quality
standard is acceptable?)
Project Manager’s Authority Levels
Project Manager’s Level of Authority to use Funds in Accordance with the Budget.

Project Manager’s Level of Authority to make Technical Decisions

Project Manager’s Level of Authority to use “Hire and Fire” Staff

Project Manager’s Level of Authority to make Changes to the Scope

Project Manager’s Level of Authority to Manage Conflict and Escalate Issues

Other

153 MANCOSA
 Principles of Project Management

Project Approved: Project Not Approved:

Name:
Project Initiator:
Date: Name:
Project Initiator:
Date: Name:
Project Initiator:
Date: Name:

UNIT 3

REVISION QUESTION ONE (1)

Answers:
(a) It is crucial to the successful completion of the project.
(b) Students to demonstrate their own knowledge and understanding of lessons learnt.

REVISION QUESTION TWO:

Answer:

PERT = Optimistic Estimate + (4x Most Likely Estimate) + Pessimistic Estimate

6
PERT = 70 days + (4 x 80 days) + 144 days
6
= 89 days

UNIT 4

REVISION QUESTION ONE:

Statement: Project Quality Management is all about ensuring that the project delivers what is expected to
happen. This does not mean that a high-quality product has to be supplied to the project. The charter and scope
of the project could call for a low-quality product. Discuss the above statement using an acceptable illustration.

Answer:

Do not underestimate the value of the project charter as any project should not be started without one. If the
project charter serves as a definition of how success will be measured, then without a project charter, the project
and project manager cannot be successful. It states the deliverable or end result of the project.

MANCOSA 154
Principles of Project Management

UNIT 5

REVISION QUESTION ONE:

(a) Project success depends on effective communication. Improving communication maximises success and
minimises risk. In addition, if a project manager can develop effective communication with its stakeholder, this
may mean more projects for him and the team.
(b) Methods of communicating can take many forms, such as written reports, conversations, email, formal status
reports, online databases, online schedules, and project websites.

REVISION QUESTION TWO:

(a) Each person has a limited set of skills and a finite knowledge base. We need others’ help (and unique
perspectives) to solve difficult problems and see beyond our blind spots. Team members benefit greatly from
sharing challenges ideas, and experience.
(b) Teamwork ensures that resources are well-managed and less time is needed to complete a project.
Good teamwork can contribute to economising, more successful project outcomes and ultimately higher
profits. It also adds to the quality and individuality of projects

UNIT 6
REVISION QUESTION ONE:
Answer:
Refer to Section 6.3 for a list of the project closure activities.

155 MANCOSA
 Principles of Project Management

Bibliography

 All Africa. (2013) South Africa: Nation, Vietnam Sign Pact to Save Rhino. [Online]. Available at:
[Link] [Accessed 30 May 2019].

 Angel, M. (2015) Four Steps Project Managers Should Follow to Help Ensure Strategic Success.
[Online]. Available at: [Link]
Managers-Should-Follow-to-Help-Ensure-Strategic-Success [Date Viewed: 7 June 2019].

 Bolman, L. and Deal, T. (2017) Reframing Organizations: Artistry, choice and leadership. (6th Edition).
San Francisco, CA: Jossey-Bass.

 Blokdyk, G. (2018) Deming PDCA Cycle: A Clear and Concise Reference. Emereo Pty Limited

 Burke, R. (2014). Project Management: Planning and Control Techniques (5th Edition). John Wiley &
Sons

 Fred, D (2013). Strategic Management: Concepts and Cases, (14th Edition). Pearson’s Education.

 Gido, J. and Clements, J. P. 2015. Successful Project Management. (6th edition). Cengage Learning.

 Hiner, J. 2009. Five Prerequisites for Successful IT Projects. [Online]. TechRepublic. Available at:
[Link]
projects/ [Date Viewed: 30 May 2019].

 HN Computing. 2007. Project Management Principles. [Online]. Available at

[Link] [Accessed 2 June 2019].

 Lewis, JP. 2007. Fundamentals of Project Management. 3rd edition. New York, (NY): Amacom.

 [Link]. Project Management Overview: Defining a Project. [Online Video]. Available at

[Link] [Date Viewed: 30 June 2019].

 [Link]. The Characteristics of a Project. [Online Video]. Available at

[Link] [Date Viewed: 30 June 2019].

MANCOSA 156
Principles of Project Management

 [Link]. An Overview of Project Scheduling. [Online Video]. Available at

[Link] [Date Viewed: 30 June 2019].

 Kaschny, M. and Nolden, M. 2018. Innovation and Transformation: Basics, Implementation and
Optimization. Springer International Publishing. Switzerland

 Newton, P. 2015. Project Management Processes: Project Skills. [Online]. Available at

[Link] [Date Accessed:
20 May 2019].

 Oosthuizen, T.F.J. and Venter, R. (2018). Project Management in Perspective. 2nd Edition. Oxford
University Press.

 Project Management Institute. 2017. A Guide to the Project Management Body of Knowledge.
(6th edition). Pennsylvania (PA): Project Management Institute, Inc.

 Project Management Institute. 2013. Organizational Project Management Maturity Model

(OPM3®). (Third 3rd edition). Newtown Square, PA: Author.

 PMI Teach. 2016 add reference.

 Steyn, H., Carruthers, M., Du Plessis, Y., Kruger, D., Kuschke, B., Sparrius, A., Van Eck, S.,
and Visser, K. 2012. Project Management: A Multi-Disciplinary Approach. (3rd edition).
Pretoria: FPM Publishing.

 Thayer School of Engineering at Dartmouth. Five-level Work Breakdown Structure. [Online Video].
Available at [Link] [Date Viewed: 30 May 2019].

 Thayer School of Engineering at Dartmouth. Project Task Descriptions – Work Packages. [Online
Video]. Available at [Link] [Date Viewed: 30 May
2019].

 The Institute of Directors of Southern Africa (2016). King IV Report on Corporate Governance.
[Link]
E3A007F15A5A/IoDSA_King_IV_Report_-_WebVersion.pdf [Date Viewed: 27 November 2019]

157 MANCOSA
 Principles of Project Management

 Watt, Adrienne. 2015. Project Management. The adaptation is a part of the BCampus Open
Textbook Project.

 Wideman, R., M. 2016. Project 101. [Online]. Available at

[Link] [Date Accessed: 07 December 2015].

 Wideman, R., M. 2016. Project Management Wisdom. Available at

[Link] [Date Accessed: 07 December 2015].

 Wideman, R., M. 2016. Project Metaphor. [Online]. Available at

[Link] [Date Accessed: 07 December 2015].

 Youker, R. The Difference between Different Types of Projects. [Online]. Available at:
[Link] [Date Accessed: 07 December
2015].

MANCOSA 158
Principles of Project Management

159 MANCOSA