Fundamentals of Project Management F1 Final-POM203

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Fundamentals of Project Management
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© Amity University Press
All Rights Reserved
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No parts of this publication may be reproduced, stored in a retrieval system or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without the prior permission of the publisher.
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Advisory Committee
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Chairman : Prof. Abhinash Kumar
Members : Prof. Arun Bisaria
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Dr. Priya Mary Mathew
Mr. Alok Awtans
Dr. Coral J Barboza
Dr. Monica Rose
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Mr. Sachit Paliwal
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Subject Matter Experts

Mr. Sunil Kumar
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Published by Amity University Press for exclusive use of Amity Directorate of Distance and Online Education,
Amity University, Noida-201313
Contents
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Page No.
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Module - I: Project Management Concepts 01
1.1 Concept of Project, Attributes of a Project
1.1.1 Concept of Projects
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1.1.2 Project Classification: Projects vs. Operations
1.1.3 Types and Categories of Projects
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1.1.4 Infrastructure Projects
1.1.5 Project Management in Established Firms
1.1.6 New Product Development Projects
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1.1.7 Product/Process Improvement Projects
1.1.8 Technology Induction and Assimilation Projects
1.1.9 Strategic Implications of Project Management Activities
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1.2 Project Management Life Cycle
1.2.1 Project Life Cycle
1.3 Project Need Identification r
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1.3.1 Project Goals and Functions
1.3.2 Project Identifiers
1.4 Defining the Project Scope
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1.4.1 Project Scope

1.4.2 Project Requirements
Case Study
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Module - II: Planning the Work 79

2.1 Work Breakdown Structure
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2.1.1 WBS: Work Breakdown Structure

2.2 Time and Cost Estimation
2.2.1 Cost and Time Estimating Methods
2.2.2 Top Down - Analogous Estimating
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2.2.3 Top Down - Group Consensus Estimates

2.2.4 Top Down - Monte Carlo
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2.2.5 Top Down - Apportioned Method Estimating

2.2.6 Bottom Up Estimating
2.2.7 Quality of Estimates
2.3 Organisation Breakdown Structure and Project Organisation
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2.3.1 Why Is Organisation and Project Team Structure Important?

2.3.2 Functional Structure
2.3.3 Project Structure
2.3.4 Matrix Structure
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2.3.5 Virtual Team
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2.4 Cost Breakdown Structures and Budgeting
2.4.1 Cost Breakdown Structure
2.4.2 RBS - Resource Breakdown Structure
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2.5 Activity on Arrow Diagram, Numbering the Events (Fulkerson’s rule), Activity on Node Diagram, Critical
Path Determination, Project Gantt Chart
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2.5.1 Project Activity Sequencing
Module - II: Project Process 147

3.1 Detail Project Report, Project Kick-off
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3.1.1 Project Planning: Planning Steps
3.1.2 Business Case
3.1.3 Who Is the Sponsor?
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3.1.4 Project Charter
3.1.5 Triple Constraint or Six Constraints
3.1.6 Master Plan r
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3.2 Process Groups
3.2.1 Phases Of Projects: Project Process Groups
3.2.2 Iniation
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3.2.3 Planning
3.2.4 Execution
3.2.5 Monitoring and Controlling
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3.2.6 Closing
Module - IV: Working the Plan 189

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4.1 Project Team; Leadership and Project Manager

4.1.1 Role of a Project Manager
4.1.2 Project Coordination: Effective PM Strategies
4.1.3 Project Team Considerations
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4.2 Communication and Conflicts in Projects; Periodic Progress Review; Time Management
4.2.1 Project Monitoring and Control
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4.2.2 Monitoring and Controlling Tools

4.2.3 Conducting Meetings
4.2.4 Pertaining and Relationships
4.2.5 Pertaining Failures
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4.2.6 Contract Types

4.2.7 Negotiation
4.3 Project Control using Gantt Chart, Revising the Critical Path and Reallocation of Resources
4.3.1 Scheduling Charts: Network Diagram Method
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4.3.2 CPM and Gantt Chart
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4.3.3 Types of Resources
4.3.4 RAM - RACI, OCA, Other
4.3.5 Scheduling Resources
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4.3.6 Assigning Work
4.3.7 Crashing
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Case Study
Module - V: Project Termination 249

5.1 Termination processes
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5.1.1 Project Termination and Abandonment Analysis
5.1.2 Normal Closure
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5.1.3 Premature Project Closure
5.1.4 Perpetual Project
5.1.5 Failed Project
5.1.6 Changed Priority r
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5.2 Project hand over and commissioning
5.2.1 Project Hand over and Commissioning
5.3 Project audit
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5.3.1 Purpose of Project Audit

5.3.2 Steps in Project Audit
5.3.3 Types of Project Audit
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5.3.4 Project Audit: Report Contents

5.4 Project final report, Project closure
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5.4.1 Project Closure: Final Process Group

5.4.2 Project Closure Checklist
Case Study

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Fundamentals of Project Management 1
Module - I: Project Management Concepts

Notes
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Learning Objectives:
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At the end of this module, you will be able to understand:
●● Concept of Projects
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●● Project Classification: Projects vs. Operations
●● Types and Categories of Projects
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●● Infrastructure Projects
●● Project Management in Established Firms
●● New Product Development Projects
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●● Product/Process Improvement Projects
●● Technology Induction and Assimilation Projects
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●● Strategic Implications of Project Management Activities
●● Project Life Cycle
●● Project Goals and Functions
●● Project Identifiers
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●● Project Scope
●● Project Requirements
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Introduction
A project is an interim endeavour undertaken to produce a unique product, service,
or result.
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A project has a definite starting and ending points in terms of schedule, an

allocation of a specific budget, clearly defined scope of work that is to be carried out
and specific deliverables and performance requirements.
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Projects are created and undertaken in organisations to cater to a definite

requirement. These could be to create a product or service. Projects could also be
created to change a business process.
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These scenarios are totally different in organisations that work on a continuously to

produce their goods and / or services. For example, the goal of an organisation may be
to manufacture cars on a continual basis. This would not be regarded as a project, as
the organisation creates the same products or services over-and-over again and people
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hold their roles for an extended period.
For example, building of a house is a project. The building of a house consists

of numerous activities like quarrying of foundation pits, construction of foundations,
erection of walls, building of roof, fitting of doors and windows, setting of sanitary
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fittings, writing etc. The building of a house is accomplished by accomplishing the set
of activities.
Amity Directorate of Distance & Online Education

2 Fundamentals of Project Management
Another aspect of a project is the non-repetitive nature of activities. Each project is

Notes
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exclusive in the sense that the activities of a project are unique and non-repetitive.
Thus, we can define a project as:
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●● An organised sequence of predetermined group of activities
●● These activities are non-repetitive in nature
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●● These activities must be completed using the available resources
●● These activities must be completed within the given time limit
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1.1 Concept of Project, Attributes of a Project
A project is a transitory endeavour performed to create a one-of-a-kind product,
service, or outcome.
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A project may be a series of tasks that are planned from beginning to conclusion
and are constrained by time, resources, and the desired outcome.
The following are the project’s characteristics:

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a. Duration: Because a project is a transitory endeavour, it must have a defined

start and finish date. Numerous projects begin on a specific date and conclude
on an estimated date. Certain projects have an inflexible deadline by which they
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must be finished.
b. Purpose: An information technology project may result in a variety of outcomes,
including a system, a software package, or a suggestion based on a research.
As a result, the objective of a project must be to create something concrete
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and valuable to the business. A project must have a purpose that serves as the
driving force behind it in terms of defining the work to be done.
c. Ownership: The project must deliver something valuable to a person or
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group that will retain ownership of the project’s finished result. It is not always
straightforward to determine who owns a project. For instance, several
organisations may quarrel about who owns the system, the data, the support,
and the eventual cost of establishing and maintaining the system.
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d. Resources: Information technology projects need time, money, human

resources, and technology. Resources offer the methods through which a
project’s objective may be accomplished and also function as a limitation.

For instance, the scope of the project, or the work that must be performed,
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is decided directly by the project’s objective. However, if the project sponsor
requests that an additional feature be added to the system, this will need extra
resources in the form of further labour by the project team.
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e. Roles: IT projects need a variety of employees with a variety of skill sets, as
indicated below.
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Project Manager: She or he is accountable for the implementation and
correct execution of all project management and technical development
procedures.
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Project sponsor: The project sponsor may be the client, customer,
or human resources manager of the business who will function as the
project’s advocate.
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Subject matter experts: A subject matter expert is a someone who has
specialised knowledge, competence, or insight in a certain functional area.
Technical Expert: A technological expert is required to give an organisation
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with a technical answer to an issue.
Risks and Assumptions: Every endeavour involves some level of risk. Risk may
manifest itself in a variety of ways, both external and internal to the project team. For
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instance, internal risk may occur as a result of the estimating process. External risk, on
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the other hand, may occur as a result of reliance on other contractors or suppliers.
Interdependent Tasks: Managing a project entails a large number of interdependent

tasks. For instance, a network cannot be setup until the necessary hardware has been
received. Or, until a key user is interviewed, some criteria cannot be integrated into the design.
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Organizational Change: A project is a deliberate attempt to alter an organization’s

structure. Change must be acknowledged and managed, since the IT project’s
execution will alter how people operate.
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Within a Context Greater than the scope of the project itself: Organizations choose
projects for a variety of reasons, and the projects selected may have a significant
influence on the business.
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Project management is the process of applying information, abilities, tools,

and procedures to project activities in order to achieve project requirements. The
planning and arrangement of an organization’s resources in order to expedite the
accomplishment of a given activity, event, or obligation. Typically, project management
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is a one-time task rather than an ongoing one, and the resources handled comprise
both human and financial capital.
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1.1.1 Concept of Projects

A project is defined as a series of activities that must be accomplished in order to
achieve a certain result. The Project Management Institute (PMI) defines a project as
“any transitory undertaking having a distinct beginning and finish.” It may be controlled
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by a single person or hundreds of people, depending on its complexity.

Characteristics of a project
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A project is a collection of interrelated activities that work toward a shared
objective. The following qualities apply to projects:
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●● A defined start and end date - While some initiatives may span many years,
they cannot continue indefinitely. It must have a specific beginning, a precise
conclusion, and a summary of what occurs in between.
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●● A project generates something new - Each project is unique, resulting in the
creation of something that did not exist earlier. A project is a unique, one-time
action that will never be replicated in the same way twice.
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●● A project is defined by its limits – A project is constrained by time, budget, quality,
and functionality restrictions. We’ll discuss this more in subsequent parts.
●● A project is not routine business - Projects are often conflated with
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procedures. A process is a collection of regular, specified processes used to
accomplish a certain task, such as expenditure reimbursement approvals.
This is not a one-time event. It establishes the manner in which a certain
function is executed on a consistent basis.
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Diverse nature of projects
Projects are available in a variety of forms and sizes.
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A project may include the following:
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●● Be massive: Similar to the building of the Hoover Dam, this project will take
years to complete and will need a colossal expense.
●● Be small: Consider a simple job, such as constructing a walkway in your yard
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over a weekend.
●● Involve a large number of people: As with wedding planning
●● Just yourself: Rearranging the photographs in your wedding book by yourself
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Project types
Projects may be executed in a variety of ways. Here are a few instances of
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completed projects:
●● Traditional projects: These are phased and operated successively. These

steps are often described as initiating, planning, carrying out, monitoring, and
concluding. The majority of high-cost infrastructure projects use standard
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project management techniques.

●● Agile projects: These are mostly utilised in the software development industry.
They are empathetic and adaptable. Additionally, they often have quick
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turnaround times.
●● Remote Projects: Remote project management is often utilised by distant
teams who meet seldom in person. Managing independent contributors is an
example of a remote project.
●● Agency projects: Agency projects are outsourced to an agency that is more
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than likely to have many clients. Frequently, marketing and design jobs are
outsourced to agencies.

The parameters of a project

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Each project is constrained by specific parameters referred to as constraints:
●● The project’s scope
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●● Timeline
●● People
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●● Resources
All of these project restrictions are contingent upon the project’s objectives
and timeline. Deliverables are the end product of a project. Deliverables include all
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documentation, plans, and project reports created throughout the course of the project’s
development. Additionally, a delivery may be the outcome of the project.
Project management is distinguished from business-as-usual operations by the
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presence of a final deliverable and a fixed timeframe. Due to the unique nature of projects
in comparison to typical operations, the majority of those participating are individuals who
do not normally collaborate. Occasionally, the specialists participating will originate from
disparate companies and geographical locations. A project is regarded successful if the
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anticipated goal is accomplished on schedule and within budget.
1.1.2 Project Classification: Projects vs. Operations

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People get perplexed by the distinction between projects and operations since they
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have some qualities, including the following:
●● Both are carried out by humans.

●● Both are planned, carried out, and monitored.
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●● Both are constrained by resource constraints.

These prevalent qualities contribute to people’s confusion. The distinctions
between projects and operations, on the other hand, may be rather apparent.
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A projectized organisation is one that focuses on projects, while a functional

organisation focuses on operational activities. A matrix organisation is concerned with
both projects and operations.
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What Exactly Is a Project?

Numerous options exist to define a project.
PRINCE2, for example, describes a project as:

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“A project is a temporary organisation formed to provide one or more commercial

items in accordance with an established Business Case.”
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Additionally, the PMBOK Guide states:
“A project is a brief attempt undertaken to produce a one-of-a-kind product, service,

or outcome.”
Although the terminology is different in each definition, the meaning is the same.
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You may deduce the following:

●● A project’s nature is transitory.

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●● A project is undertaken to create something unique. The output might be a
physical item, a service, or a result.
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What does it imply when a project is inherently temporary?
Once you complete the final product, your project will come to an end, as its aim
will have been met. A project has a distinct beginning and end: it cannot continue
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indefinitely. It must conclude when the aim is attained or when the project is ended.
The second point indicates that a project results in something. If the operation
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is connected to building, the outcome will be any physical structure. If the project is
connected to research, it may result in a report; for example, an examination of the
environmental effect of car emissions.
Additionally, a project may provide a service-related result, such as establishing a
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contact centre to assist consumers with difficulties.
What is the definition of an operation?
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Operations is the continuous execution of operations in accordance with an
organization’s processes in order to achieve the same outcome or provide a repeating
service. Permanent operations are the norm.
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Operations include production, manufacturing, and accountancy.
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There are several operational definitions. Several examples include the following:
●● While operations do not generate new objects, they are important for the
system’s maintenance and sustainability.
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●● Operations are used to operate conventional business models, meet the firm’s
objectives, and provide assistance to the business.
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●● Operations are distinct from projects, which are characterised by their singularity.
●● Operations are indefinite in nature, and their only purpose is to generate profit
for the corporation.
An operation may be any industrial or production process.
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What Is the Distinction Between Projects and Operations?

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Between projects and operations, there are several distinctions. Several

distinctions include the following:

●● While projects are one-off and temporary, operations are continuous and
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permanent with a predictable output.
●● While projects have a set budget, operations must produce a profit in order
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to operate.
●● While projects are initiated to initiate a new business aim and are ended after
it is accomplished, operational activity does not generate anything new and is
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thus continuous.
●● While projects develop a unique product, service, or outcome, operations
produce the same product with the goal of earning a profit and maintaining
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the system.
●● There are greater risks in projects since they are often completed for the first
time, but there are less hazards in operations because they are repeated
several times.
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●● While projects are performance-driven, operations are efficiency-driven.
●● Project management is used to manage projects, whereas business process
management is used to manage operations.
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Projects and Operations: A Real-World Example
Assume you’ve been assigned the task of constructing an automobile
manufacturing factory. r
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You construct the facility and hand it off to the customer. Your assignment is
complete, and the customer has begun producing automobiles.
Building the facility is an example of a project in this instance, since you developed
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a vehicle production plant and turned it over to the customer when it was signed off.
However, once the facility begins to operate and the automobile production process
begins, this is an example of operations, since the factory is generating a repeated
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output, automobiles.
As such, this is an illustration of an operation.
S. No. Category Projects Operations

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1. Definition A project is a brief activity Operations are the continuous

performed to create a one- execution of operations that occur
of-a-kind product. after a product is manufactured in
order to get the same outcome or
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provide a repeat service.

2. Duration It is transient in nature, It is permanent since it appears
since it ceases to only once the thing is manufactured
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exist after the object is and may last indefinitely. The

manufactured. This is same product is made indefinitely
because the period before as long as it is in demand or
the creation of a product makes profit.
comprises a project.
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3. Budget Budgets are established The budget for Operations is not

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for specific projects. specified, since income is required
Stakeholders and to keep operations afloat. This is
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management that because if a product has a favourable
desire to have a product reaction or generates a sufficient
manufactured designate a amount of income and profit, other
budget. similar items may be manufactured.
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4. Newness It is novel (new product). A It contains nothing novel. This is
project is launched in order because it is just the process of
to develop a novel kind of increasing the quantity of a product
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product. in order to distribute it to customers.
5. Product A distinctive product is The same product is manufactured
generated. The project is to maintain the system’s operation.
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being conducted in order Additional quantities of the current
to create a one-of-a-kind product are manufactured for end
product. consumers.
6. Risk It has a greater risk since It carries less risk since similar
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it is being attempted items have previously been
for the first time. There manufactured and the procedure
is a danger of failure is just scaling up production.
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associated with this
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endeavour since the
described item has never
been manufactured before.
7. Focus The basic objective of The basic objective is efficiency.
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projects is performance. The whole operation must be

The project must work efficient in order to save production
optimally and adhere to the time and optimise procedures for
specifications set by the increased income.
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customer.
8. Type of The term “Project Business Process Management
Management Management” refers to the is the term used to describe the
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management of projects. management of operations.

9. Reasons for It may be motivated by a It is carried out in order to operate
Undertaking commercial opportunity the company and maintain the
or need, a social need, system.
technological advancement,
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a customer’s individual
desire, market demand, or
legal obligations, among
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others.
10. Basis Projects are built around the Operations are guided by
goal of accomplishing the measurements that quantify the
requirements given during whole product.
the requirement definition
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phase.

11. Organisation A projectized organisation A functional organisation is one

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is one that is concerned that is concerned with operations.
with projects.
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12. Existence Before a product is created, Operations begin only when the
there are projects. This is product is manufactured. This is
because a project is referred because only once a product is
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to be a product after it is produced can further products be
finished and placed on the developed.
market.
13. Nature It is inherently innovative. It is cyclical in nature. The
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The project is being done manufacturing procedure is then
in order to develop a new repeated for multiple other goods.
product.
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1.1.3 Types and Categories of Projects
Many businesses discover that their portfolio contains three distinct types of
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projects: compliance and emergency (must do), operational, and strategic.
(For further information, see Figure below)
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Compliance projects are often those that are necessary to fulfil regulatory
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requirements for operating in an area; hence, they are referred to as “must do” projects.
Emergency projects, such as the reconstruction of a soybean plant devastated by
fire, satisfy the must-do condition. Generally, non-implementation of compliance and
emergency projects carries a penalty.
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The term “operational projects” refers to those that are required to sustain
ongoing activities. These initiatives are intended to increase the efficiency of delivery
systems, lower the cost of products, and boost performance. Projects using total quality
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management (TQM) are an example of operational projects.
Finally, strategic initiatives are those that directly contribute to the long-term objective
of the business. They are typically aimed towards growing revenue or market share.
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New goods, research, and development are all examples of strategic initiatives.
Crawford, Hobbs, and Turne provide an excellent, comprehensive explanation of
categorization methods used in practise.

Before a proposed project can be included in the project portfolio, its strategic
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value must be established. In certain situations, some projects “must” be chosen.
These compliance or emergency tasks must be completed immediately or the business
may fail or face severe fines or repercussions. For instance, a manufacturing facility is
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required to install an electrostatic filter atop a chimney within six months or face closure.
EU courts are attempting to compel Microsoft to expose its software architecture in
order to make it compatible with and interact with rival software providers. This choice
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may result in compliance
Microsoft-sponsored initiative. Any project designated as a “must” ignores all

other selections criteria. A general guideline for categorising a proposed project in this
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category is that 99 percent of the organization’s stakeholders agree on the importance
of the project must be executed; there is no recognised alternative. All other initiatives
are chosen in accordance with organisational strategy.
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Criteria for Selection:
Although there are several selection factors, they are commonly classified as
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financial and nonfinancial. Following that, a brief explanation of each is provided,
followed by a discussion of their use in practise.
Financial Standards
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Financial Simulations For the majority of managers, financial factors are the
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favoured approach of project evaluation. These models are useful when there is a high
degree of confidence in future cash flow forecasts. Payback and net present value are
two concepts and examples discussed in this section (NPV).
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●● The initial investment in Project A is $700,000, with estimated cash inflows of

$225,000 over the next five years.
●● Project B requires an initial expenditure of $400,000 and is expected to
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generate cash flow of $110,000 over a five-year period.

1. The payback period is the time required to recoup the project’s investment. Payback
periods of less than a year are more ideal. Payback is the most straightforward
and extensively utilised model. Payback focuses on cash flows, which are critical
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in company.
Certain managers use the payback model to exclude initiatives that are
exceptionally hazardous (those with long payback periods). Payback has many
significant flaws. It ignores the time value of money, assumes cash inflows only during
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the investment term (and not beyond), and makes no allowance for profitability. The
repayment formula is as follows:
Period of restitution (yrs)= Estimated Projected Cost/Annual Savings

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The payback period for Project A and Project B are compared in Exhibit below. The
repayment period for Project A is 3.1 years, whereas the payback period for Project B
is 3.6 years. Both projects are acceptable using the payback technique since they both
recover the original investment in fewer than five years and have returns on investment
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of 32.1 and 27.5 percent, respectively.
The net present value model is shown in Exhibit below:

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2. The net present value (NPV) model calculates the present value of all net cash
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inflows using management’s minimum desired rate of return (a discount rate of, say,
20%). If the outcome is favourable (the project achieves the necessary minimum rate
of return), it is eligible for further evaluation. If the outcome is bad, the initiative is
deemed unsuccessful. As a result, more positive NPVs are preferred. Excel makes
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use of this formula.
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I0= Initial investment (since it is an outflow, the number will be negative)
Ft = Net cash inflow for period t
k = Required rate of return

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Following exhibit illustrates the NPV model created using Microsoft Excel. The
NPV model approves project A due to its positive net present value of $54,235. Project
B is rejected due to a negative net present value of $31,263. Compare the NPV and
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payback values. Because the NPV model takes into account the time value of money,
cash flows, and profitability, it is more realistic.
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When the NPV model is used, the discount rate (return on investment hurdle rate)
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for various projects might vary. For instance, the anticipated return on investment on
strategic initiatives is usually set higher than the expected return on investment on
operational projects. Similarly, the return on investment (ROI) for riskier vs safer

enterprises might vary. The parameters for establishing the ROI hurdle rate should be
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unambiguous and consistently implemented.
Unfortunately, pure financial models exclude many projects from consideration
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because their financial return cannot be quantified and/or other considerations are critical
to the accept or reject decision. According to one study conducted by Foti, firms that
prioritise projects primarily using financial models end up with imbalanced portfolios and
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initiatives that are not strategically directed. Other research make similar assertions.
Non-financial Standards
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While financial return is important, it may not necessarily indicate strategic
significance. Firms were overextended in the 1960s and 1970s as a result of excessive
diversification. The prevalent view now is that long-term survival is contingent upon the
development and maintenance of core capabilities. Businesses must exercise discipline
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in declining potentially lucrative ventures that fall beyond the scope of their fundamental
goal. This necessitates consideration of parameters other than straight financial return.
For instance, a business may promote initiatives with low profit margins for a variety of
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strategic reasons, including the following:
●● To increase market share

●● To make rivals’ entry into the market more difficult
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To create an enabling product that, when introduced, will result in a rise in
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sales of more lucrative items.
●● To develop foundational technology for next-generation products
●● To minimise reliance on unreliable sources
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●● To keep government interference and regulation to a minimum

Additionally, less physical criteria may apply. Organizations may contribute to
efforts aimed at rehabilitating the business image or enhancing brand awareness.
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Numerous organisations are engaged to corporate citizenship and development

programmes in their communities.
Due to the fact that no one criterion can accurately represent strategic importance,
portfolio management needs multi-criteria screening models. Individual factors are often
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weighted in these models so that initiatives that contribute to the most critical strategic
goals get priority consideration.
a) Two Models of Multi-Criteria Selection

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Due to the fact that no one criterion can accurately represent strategic importance,
portfolio management needs multi-criteria screening models. The next sections discuss
two models: the checklist and multiweighted scoring models.
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b) Checklist Models
The checklist has been the most often utilised approach for choosing tasks. This
strategy entails reviewing possible projects and deciding whether they should be
(c
accepted or rejected based on a set of questions. Following exhibit is a collection of

frequently encountered questions in practise. 250 distinct questions are asked by one
major, multi-project corporation!

Topic- Question
Notes
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●● Strategy/alignment- What specific organization strategy does this project align with?
●● Driver- What business problem does the project solve?
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●● Success metrics- How will we measure success?
●● Sponsorship- Who is the project sponsor?
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●● Risk- What is the impact of not doing this project?
●● Risk- What is the project risk to our organization?
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●● Risk- Where does the proposed project fit in our risk profile?
●● Benefits, value, ROI- What is the value of the project to this organization?
●● Benefits, value, ROI- When will the project show results?
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●● Objectives- What are the project objectives?
●● Organization- culture Is our organization culture right for this type of project?
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●● Resources- Will internal resources be available for this project?
●● Approach- Will we build or buy?
●● Schedule- How long will this project take?
●● Schedule- Is the time line realistic?
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●● Training/resources- Will staff training be required?
●● Finance/portfolio- What is the estimated cost of the project?
●● Portfolio- Is this a new initiative or part of an existing initiative?
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●● Portfolio- How does this project interact with current projects?

●● Technology- Is the technology available or new?
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A rationale for checklist models is that they provide a high degree of flexibility in
picking among several different sorts of projects and are readily applicable across
multiple divisions and locations. While many projects are chosen using some form of
the checklist technique, this method has significant flaws. Significant disadvantages
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of this technique include the inability to determine the relative relevance or worth
of a possible project to the company and the inability to compare it to other potential
initiatives. Each prospective project will generate a unique set of favourable and
negative responses. How do you measure up? It’s difficult, if not impossible, to rank
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and prioritise projects according to their value. Additionally, this strategy leaves the
door open for the possibility of power plays, politics, and other sorts of manipulation.
To address these major flaws, experts advocate the implementation of a multi-weighted
)A
scoring methodology for project selection, which will be discussed next.
c) Models of Multi-Weighted Scoring

A weighted scoring model evaluates project proposals by using numerous weighted
selection criteria. In most cases, weighted scoring models will include qualitative and/
(c
or quantitative criteria. Each selection criteria has a weight assigned to it. Each criteria
for the project is granted a score depending on its significance to the project being

assessed. The weights and scores are multiplied to get the project’s overall weighted
Notes
e
score. Projects may then be compared using the weighted score based on these
various screening criteria. Projects with a higher weighted score are deemed to be
more superior.
in
Selection criteria should reflect an organization’s important success characteristics.
For example, 3M established a goal of 25% of revenue coming from items less than
nl
four years old, up from 20% before. Their project selection process is heavily weighted
toward this new objective. On the other side, failing to choose the appropriate variables
quickly renders the screening procedure “ineffective.” Consult Snapshot from Practice:
Crisis Information Technology.
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The matrix shown below is a representation of a project score matrix based on
some of the characteristics seen in practise. The specified screening criteria are
shown across the top of the matrix (e.g., stay within core competencies . . . ROI of 18
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percent plus). Each criteria is weighted (from 0 to a maximum of, say, 3) according to its
proportional relevance to the organization’s goals and strategic plan. Following that, the
project proposal is presented to a project priority team or project office.
r si
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U
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Following that, each project proposal is assessed based on its relative contribution/
value addition to the defined criteria. Each criteria is given a value between 0 and 10 for
each project. This result indicates how well the project adheres to the specified criteria.
For instance, project 1 looks to be consistent with the organization’s strategy, since it
m
is assigned a rating of 8. On the other hand, project 1 makes no contribution to defect

reduction (its value is 0). Finally, this model assigns management weights to each
criteria based on its relevance, from 1 to 3. For instance, ROI and strategic fit are both
)A
assigned a weight of three, whereas urgency and key competencies are assigned a
weight of two. The priority team calculates the weighted total points for each project by
assigning a value to each criteria. For instance, project 5 has a maximum value of 102
[(2 x 1) + (3 x 10) + (2 x 5) + (2.5 x 10) + (1 x 0) + (1 x 8) + (3 x 9)= 102] and project 2
is valued at a low of 27. If the available resources result in a 50-point cutoff, the priority
(c
team would remove projects 2 and 4. (Note: While Project 4 looks to be urgent, it is not
designated as a “must” project. As such, it is assessed with all other ideas.) Project 5
would be given precedence, followed by project n, and so on. When resources are very
restricted and project proposals have a comparable weighted rank, it is wise to choose
Notes
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the project with the lowest resource demand. Similar weighted multiple criterion models
like this one are increasingly becoming the de facto standard for project prioritisation.
in
At this point in the dialogue, it is prudent to pause and reframe the situation. While
models such as the one above may provide numerical answers to project selection
problems, they should not be used to make final judgments; rather, the individuals who
nl
use the models should. No model, regardless of its sophistication, can capture the
whole of the world it is intended to depict. Models are used to guide the assessment
process, ensuring that decision-makers evaluate pertinent concerns and establish
consensus on which initiatives should be funded and which should not. This is a far
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more subjective procedure than calculations imply.
1.1.4 Infrastructure Projects
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The phrase infrastructure refers to a business’s, region’s, or nation’s fundamental
physical systems. These systems are often capital demanding and expensive, yet
they are critical for a country’s economic progress and success. In economic terms,
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infrastructure often entails the creation of public goods or the maintenance of natural
monopolies. Transportation systems, communication networks, sewage, water, and
electric systems are all examples of infrastructure. Infrastructure-related projects may
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be financed publicly, privately, or via public-private partnerships.
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Infrastructure: An Overview
Infrastructure, which is applicable to both big and small organisational frameworks,
encompasses a range of systems and structures as long as physical components are
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necessary. For instance, the electrical grid that runs across a city, state, or nation is
infrastructure due to the equipment involved and the purpose of providing service to the
places it serves.
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The physical wiring and components that comprise a company’s data network at
a particular location are also considered infrastructure for the business, since they are
required to support commercial activities.
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Because infrastructure often includes the provision of public goods or products

that lend themselves to natural monopoly production, it is common for infrastructure
to be financed, controlled, supervised, or regulated by the government. This is often
accomplished by direct government production or through the operation of a tightly
controlled, legally sanctioned, and frequently subsidised monopoly.
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When it comes to much smaller sizes, infrastructure often takes on the features of club
commodities or items that are most easily produced by localised monopolies. As such, it
may be offered within the framework of a private enterprise generating infrastructure for
)A
internal use or via localised collective action structures, formal or informal.
What does the term “infrastructure project” mean?

An infrastructure project is a planned plan that focuses on the enhancement
(c
and maintenance of existing services, facilities, and systems throughout a nation.

Improvements to communications devices, transportation lines, and electrical systems
are only a few examples. Both private and public firms contribute to the financing of

initiatives that assure a country’s efficiency and safety. This enables individuals to have
Notes
e
access to power, the capacity to communicate through technology, and convenient
modes of transportation.
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Infrastructure was coined in the late 1880s. The term originates in French, with
infra- meaning underneath and structure meaning structure. Infrastructure serves as the
bedrock upon which the economy is built—often very literally.
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In 1987, a panel of the United States National Research Council coined the phrase
“public works infrastructure” to denote basic functional modes such as roadways,
airports, telephones, and water supply, as well as the integrated systems comprised of
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these parts.
The following are a few of the infrastructure classes:
●● Infrastructure Information Technology
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Numerous technological systems, such as networking equipment and servers, are
often referred to as infrastructures owing to the vital role they provide inside certain
business settings. Without an IT infrastructure, many firms struggle to communicate
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and transfer data in a manner that improves workplace productivity. Numerous business
operations cannot be done if the IT infrastructure fails.
●● Infrastructure as a Class of Assets

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Additionally, infrastructure is a less volatile asset class than stocks over the long
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run and offers a greater yield. As a consequence, some businesses and individuals
choose to invest in defensive infrastructure funds, such as those engaged in
transportation or water infrastructure.
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●● Investment by the private sector in public infrastructure

Occasionally, private corporations opt to invest in a country’s infrastructure
development as a means of expanding their company. For instance, an energy
U
corporation may invest in the construction of pipelines and trains in a nation where it
want to refine petroleum. This investment has the potential to benefit both the business
and the nation.
Cintra and the City of Chicago signed a 99-year contract in 2004 to manage and
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maintain the Chicago Skyway Bridge. Cintra obtains all toll and concession money
produced by the bridge, while the city receives a $1.82 billion financial injection and is
relieved of responsibility for bridge maintenance.3
Additionally, individuals may opt to contribute to the improvement of specific pieces

m
of public infrastructure. For instance, a person may contribute to hospital, school, or

local law enforcement initiatives.
)A
Infrastructure Types
Infrastructure comes in a variety of forms. We’ve included a list of some of the most
prevalent categories below.
●● Infrastructure as a Service
(c
Soft infrastructure is comprised of institutions that contribute to the economic

stability of a country. It often demands human resources and aids in the delivery of

certain services to the populace. Health care, financial institutions, political systems, law
Notes
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enforcement, and education are all examples.
●● Hard Infrastructure
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This kind of infrastructure comprises the physical systems essential for the
operation of a contemporary, industrialised country. Roads, highways, and bridges
are all examples, as are the capital/assets required to operate them (transit buses,
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automobiles, oil rigs/refineries).
●● Critical Infrastructure
This category of infrastructure includes assets that are deemed necessary for
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the proper running of a society and economy by a government, such as housing and
heating facilities, telecommunications, public health, and agriculture. In the United
States, departments such as Homeland Security, the Department of Energy, and the
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Department of Transportation are responsible for these essential infrastructures.
Infrastructure, in addition to the aforementioned industries, offers waste disposal

services such as rubbish collection and local landfills. Certain administrative duties,
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which are often shared across many government departments, are also included in the
infrastructure. Additionally, educational and health care facilities, as well as particular
research and development (R&D) tasks and appropriate training facilities, may be included.
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The following is a list of nine different categories of hard infrastructure, their related
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projects, and examples of each:
1. Aeronautics
Flying is a mode of transport that enables individuals to travel great distances in
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a fraction of the time it takes to drive or take the train. One significant contemporary
aviation infrastructure project is extending pre-existing airports in order to boost the
overall proportion of flights that arrive on schedule. Another high-demand project is
repaving airfields to ensure the safety of existing ground facilities.
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Aviation infrastructure includes the following:
●● Airports Control of air traffic

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●● Heliports
●● Facilities on the ground
2. Information and communication technologies
As technology advances, there is an ongoing need for telecommunications
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infrastructure developments, such as upgrading mobile networks from 4G to 5G. The

following are some examples of telecommunications infrastructure:
●● Telecommunications lines and cables

)A
●● Internet Satellites
●● Towers for mobile phone networks
●● Systems of radio broadcasting
(c
3. Bridges
The maintenance of big-scale, high-volume bridges is important for the everyday
movement of a significant number of people. The following are some examples of
bridge infrastructure:
Notes
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●● Bridges made of beams
●● Cable bridges
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●● Arch bridges
4. Strength and vitality
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Coal, gas, and nuclear energy infrastructures all contribute to the production of
power for the whole nation. Maintenance personnel inspect and maintain the plants
on a regular basis to ensure they are transmitting electricity correctly and efficiently to
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the appropriate destinations. Modern infrastructure initiatives, such as solar, wind, and
geothermal-powered infrastructures, generate and store energy without the usage of
fossil fuels.
Several examples of both conventional and renewable energy infrastructures in
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operation today include the following:
●● Grid networks for electric power
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●● Nuclear reactors
●● Pipelines for natural gas
●● Production of electricity using fossil fuels, such as gas and coal plants
●● r
Renewable energy sources such as hydroelectricity, biofuels, and solar energy
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5. Railroads
Railroad infrastructure, in addition to train lines, include the structures, equipment,
and land that support trains. Additionally, this involves the administration, transportation,
and maintenance of rail lines and all of their associated infrastructure. The rail network
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is divided into two categories: freight and passenger. Railroad infrastructure projects
fall into two categories: maintenance and repair of existing railroads and initiatives to
develop new rail line expansions and signs near trains.
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Railway infrastructures include the following:
●● Railway tracks
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●● Trains
●● Tunnels
●● Bridges across railroads
●● Stations de trains
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6. Highways
The term “roadway infrastructure” refers to drivable areas such as highways, roads,
and streets. Minor highway improvements include the installation of new traffic signals,
)A
signs, ramps, and lanes. Larger transportation projects include the construction of new
roads and the maintenance of existing ones. Reconstruction and resurfacing of streets
and highways are critical to maintaining a road’s drivability. Numerous governments
depend on toll road revenue to pay road building.
(c
Several examples of highway infrastructure include the following:
●● Roads

●● Bridges
Notes
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●● Tunnels
●● Bus transport
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7. Water
A country’s infrastructure must ensure that people have access to clean, filtered
water on a consistent basis. Due to natural variables, water infrastructure projects vary
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by area. For instance, in an area prone to drought, water infrastructure projects assure
the continuity of a constant water supply and help decrease leakage by monitoring and
repairing existing water facilities. The majority of initiatives include modernising the
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existing water distribution system and devising efficient means of transporting water
from one site to another.
Several examples of water infrastructure include the following:
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●● Water mains
●● Wells
●● Stations de pompage
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●● Plants for wastewater treatment
●● Sewage tanks
●● Drains for stormwater r
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●● Guttering along highways
●● Dams
●● Levees
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8. Waste disposal
Rubbish management’s mission is to maintain roadways, communities, and
neighbourhoods free of waste in order to keep inhabitants safe. To minimise the spread
U
of disease and pests, waste management entails transferring garbage from business and
residential areas to locations such as landfills and recycling facilities. Waste management
infrastructure projects include the construction and maintenance of these facilities.
Waste management also include water waste management, which ensures

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the cleanliness of rivers, lakes, and oceans. Wastewater treatment plants remove
dangerous elements from water (such as soaps, food wastes, and other sediments)
before reintroducing it to natural bodies of water.
Waste management infrastructures include the following:

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●● Landfills
●● Plants for wastewater treatment
)A
●● Facilities for recycling

●● Facilities for storage
●● Transport of solid and hazardous waste
●● Sewage treatment plants
(c
9. Recreational establishments
Recreation infrastructure consists of facilities and services that aid in the integration

of communities via the usage of common public amenities in neighbouring areas.

Notes
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Recreation infrastructure projects involve the building of new community facilities and the
maintenance of existing structures such as parks, playgrounds, and nature preserves.
in
Recreational amenities include the following:
●● Parks and playgrounds for the public

●● Beaches publiques
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●● Historic locations
●● Reserves de nature
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●● Toilets in public places
●● Areas for picnics
●● Areas designated for public parking
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1.1.5 Project Management in Established Firms
To keep ahead of the competition in today’s competitive and turbulent global market,
si
businesses are turning to project management to produce business outcomes consistently.
Disciplined project management begins at the portfolio level, when first investments
are motivated by the strategic goal and value metrics are created. A strategy for project,
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programme, and portfolio management that is completely linked spans the whole business,
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mandating project execution at every level and attempting to produce value at every stage.
Indeed, project management is a colloquial term encompassing project,

programme, and portfolio management. And more businesses are seeing the evident
benefits of investing time, money, and resources in developing organisational project
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management expertise: cost savings, increased efficiency, increased customer and

stakeholder satisfaction, and increased competitive advantage.
The economic slump has only increased the value of the asset.
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According to research by Economist Intelligence, 80 percent of worldwide CEOs

felt that having project management as a core capability helped businesses maintain
competitiveness throughout the crisis.
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And, although some executives see glimmers of hope for a shaky recovery, there is
no question that a strong organisational commitment to project management results in
improved performance and long-term commercial value.
“Business goals are achieved via the completion of projects, and this is
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fundamentally how project management practises contribute to organisational success,”

explains Adrian McKnight, PMP, programme director at Suncorp-Metway Ltd., a
financial services corporation based in Brisbane, Queensland, Australia.
)A
According to a poll conducted by consulting firm McKinsey & Co., approximately

60% of senior executives believe that developing a strong project management
discipline is a top-three priority for their organisations as they look to the future.
Why Is Project Management Important?

(c
Leading firms across industries and geographies have been increasingly adopting
project management as a means of controlling costs and enhancing project outcomes.
With the onset of the recession, this technique became even more critical.
Notes
e
Executives recognised that following project management methodologies and tactics
lowered risks, decreased costs, and increased success rates—all of which were critical
for surviving the economic crisis.
in
Over half of CEOs surveyed by the Economist Intelligence Unit said that project
management methods had become more critical since the crisis started.
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In comparison to 2007, respondents said that they invested more time in project
planning and due diligence (40%).
Conducting more regular assessments of projects to evaluate risks, milestones,
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and overall worth (37%)
Increasing the frequency with which quantitative and qualitative project results are
measured (38%)
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“Many businesses stated that the economic crisis exposed their project
management weaknesses and compelled them to improve,” the research said.
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With little margin for error and fewer resources at their disposal, project
management expertise and oversight are assisting organisations in streamlining their
delivery processes, reducing costs, and mitigating risks, enabling them to weather the
recession and implementing stronger project management practises in the future.
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“Excellent project management discipline prevented us from wasting money on
failed initiatives,” says Ron Kasabian, general manager at global information technology
giant Intel in Folsom, California, USA.
Reduced budgets and fewer resources equate to less money for new initiatives that
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propel the business ahead. Making the most of those two accessible assets becomes critical.
“Resources are few, and we must ensure that they are used wisely and efficiently,”
he argues. “By reducing project failure rates, Intel derives the most advantage from IT,
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which increases Intel’s capacity to stay competitive.”
Additionally, businesses are realising that as their project management approach

grows, the economic value generated by it rises. To enhance that value and to maintain
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strategy coherence throughout the project portfolio, several multinational firms’ CEOs
are establishing official project management offices (PMOs).
According to State of the PMO 2010, 84 percent of the 291 project professionals
surveyed said that their organisations had a PMO, a steady increase from 77 percent in
m
2006 and 47 percent in 2000.
Value of Project management

)A
1. Alignment of Strategic Objectives:

Project management is critical since it assures that the deliverables are accurate
and will provide actual value to the business opportunity.
Each client has strategic objectives, and the projects we do for them further those
(c
objectives. Project management is critical since one of a PM’s responsibilities is to

ensure that projects are correctly architected so that they fit within the larger context of
our client’s strategic frameworks.

Effective project management ensures that project objectives closely coincide with
Notes
e
the business’s strategic objectives.
When it comes to developing a strong business case and methodically calculating
in
ROI, project management is critical since it may assist guarantee that the appropriate
item is provided, one that adds genuine value.
Naturally, as projects advance, risks may arise that develop into concerns, or the
nl
company plan may alter. However, a project manager will guarantee that the project
is integrated into the realignment process. Project management is critical in this case
because initiatives that deviate from the original plan or fail to adapt to changing
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company demands may wind up being costly and/or pointless.
2. Leadership
Project management is critical because it provides direction and leadership to projects.
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Without project management, a team may function similarly to a ship without a
rudder: it can move but lacks direction, control, and purpose. Leadership enables
and empowers team members to perform at their best. Project management offers
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leadership and vision, motivates employees, removes bottlenecks, coaches, and
inspires teams to perform at their best.
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While project managers support their teams, they also guarantee that clear lines
of responsibility are maintained. With a project manager in place, there is no doubt
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about who is in command and in control of whatever is occurring in a project (this is
particularly true if you are using a RACI chart or other comparable tools). Project
managers also enforce protocols and keep everyone on the team in line, since they are
ultimately responsible for the project’s success or failure.
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3. Clear Focus & Objectives

Project management is critical because it guarantees that a solid strategy is in
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place for achieving strategic objectives.
Where project management is left to the team to figure out on their own, teams
often operate without clear briefs or a defined project management approach. Projects
lack focus, sometimes have ambiguous or fuzzy goals, and often leave the team unsure
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of what they’re intended to achieve or why.
As project managers, we position ourselves to avoid such a circumstance and

to ensure that tasks are completed on schedule by breaking a project down into
manageable tasks for our teams.
m
Oftentimes, the forethought to adopt this approach is what distinguishes effective

project management from poor project management. By breaking down work into
)A
smaller pieces, teams may maintain focus on specific goals, direct their efforts toward
attaining the project’s ultimate goal via the completion of smaller tasks, and promptly
detect dangers, which is critical in project management.
Frequently, the objectives of a project must be adjusted in response to a

materialising danger. Again, without devoted monitoring and management, a project
(c
may quickly disintegrate, but excellent project management (and a strong project
manager) helps the team to concentrate on their goals and, when required, refocus.

4. Realistic Project Planning

Notes
e
Project management is critical because it establishes realistic expectations for what
can be produced, when, and for how much.
in
Without competent project management and a well-defined project strategy, budget
estimates and delivery timeframes for projects might be made that are too ambitious or
lack relevant estimation information from previous projects. This indicates that without
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effective project management, projects will be delivered late and beyond budget.
Effective project managers should be able to work with key stakeholders, teams,
and management to establish fair and realistic timelines and milestones. Too often, the
O
rush to complete the project jeopardises the essential processes and, ultimately, the
project’s quality.
We are all aware that the majority of jobs will take longer than expected; a smart
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project manager will be able to examine and balance existing resources against the
needed timescale, and build a realistic plan. When it comes to scheduling, project
management is critical since it adds objectivity to the planning process.
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A smart project manager establishes a clear approach with attainable deadlines
that allows all members of the project team to operate within acceptable constraints and
not with unjustified expectations.
5. Quality Assurance r
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Project management is critical since it guarantees that the quality of whatever is
produced is constant.
Additionally, projects are often under extreme time constraints. Without a

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specialised project manager who has senior management’s backing and buy-in, tasks
are underestimated, timeframes are compressed, and procedures are hurried. As a
consequence of the lack of quality management, the production is of poor quality.
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Dedicated project management guarantees that a project not only has the time and
resources necessary to complete, but also that the output is verified for quality at each step.
Effective project management necessitates gated periods during which teams

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may evaluate the product for quality, applicability, and return on investment. Project
management is critical to quality because it enables a staged and staggered process,
allowing teams to review and verify their outputs at each stage.
Enhance your project management skills with relevant, hands-on training from
industry experts. Our online digital project management course teaches you how to lead
m
happy teams and produce high-value projects in the digital era.
6. Risk Control
)A
Project management is critical because it ensures risks are effectively managed

and minimised in order to prevent them from developing into problems.
Risk management is crucial to the success of any project. The temptation is

to brush things aside, never discuss them with the customer, and hope for the best.
(c
However, having a rigorous process for identifying, managing, and mitigating risk is
critical for preventing risks from becoming problems. Dealing with risk, particularly in
complicated projects, is where the true value of project management is realised.

A sound project management technique involves project managers to thoroughly

Notes
e
examine all possible risks to the project, quantify them, design a mitigation strategy for
each risk, as well as a contingency plan in the event that any of them materialise. It
entails asking the appropriate questions in order to identify dangers early.
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Naturally, risks should be prioritised by their chance of occurrence, and suitable
solutions should be assigned to each risk (some PMs use a dedicate risk management
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software for this). Good project management is critical in this sense, since projects
seldom go according to plan, and how we cope with change and adjust our project
management strategy is critical to successfully completing projects.
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7. Streamlined Procedures
Project management is critical because it guarantees that the appropriate people
are doing the right things at the right time — it ensures that the necessary project
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management processes are followed throughout the project’s life cycle.
Surprisingly, many major and well-known organisations have reactive planning

procedures that are not based on sound project management principles.
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However, reactivity — as opposed to proactivity – often results in initiatives
entering survival mode. This is when teams disintegrate, duties become redundant, and
planning becomes reactive, resulting in team inefficiency and dissatisfaction.
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Proper planning and procedure may make a significant impact by ensuring that the
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team understands who is responsible for what, when, and how. A well-defined process
assists in clarifying responsibilities, streamlining procedures and inputs, anticipating
hazards, and establishing checks and balances to ensure the project remains aligned
with the overall plan. Project management is critical in this case because without an
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organised, clearly understood procedure, businesses risk project failure, loss of

confidence in business relationships, and resource waste.
8. Ongoing Supervision
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Project management is critical because it guarantees that the progress of a project

is appropriately documented and reported.
Status reporting may seem tedious and superfluous – and if everything goes
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according to plan, it may seem like paperwork for the sake of documentation. However,
continual project monitoring is vital to ensure that a project continues on schedule and
adheres to the original plan.
Whether sufficient management and reporting are in place, it is simple to detect

m
when a project is deviating from its planned path. The sooner you identify project
deviations, the simpler it is to correct course.
)A
As part of their stakeholder management, effective project managers will

periodically create clearly consumable progress or status reports. This allows
customers or other project stakeholders to monitor the progress of the project
independently. Typically, these status updates will give insight into the work
accomplished and planned, the hours worked and how they compare to those
(c
anticipated, the project’s progress versus milestones, risks, assumptions, problems,

and dependencies, and any outputs produced as the project progresses.

This data is useful not just for monitoring progress, but also for gaining the
Notes
e
confidence of other stakeholders within an organisation by allowing them to easily monitor
the development of a project. Additionally, it provides a simple, consistent method for your
staff to keep frequent touch with clients in order to strengthen their connections.
in
9. Subject Matter Expertise
Project management is critical because someone must be able to determine if
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everyone is performing as expected.
With a few years of experience, project managers will be familiar with a variety of
areas of project delivery. They’ll develop technical experience, project management
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skills, and subject matter expertise; they’ll get a thorough understanding of the work
their teams do; the platforms and systems they use, their capabilities and limits, and the
types of challenges that often arise.
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They can have intelligent and informed dialogues with customers, teams, stakeholders,
and suppliers when they possess this level of subject matter knowledge. They are well-
equipped to serve as the communication centre for a project, ensuring that nothing is lost or
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forgotten as the project moves between various teams and stages of work.
Without subject matter knowledge provided by project management, it is possible

for a project to become imbalanced — either the creatives overlook the constraints
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of technology or the developers lose sight of the project’s creative goal. Project
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management keeps the team focused on the big picture and pulls everyone together to
make the necessary concessions to ensure the project’s success.
10. Managing and Learning from Success and Failure

Project management is critical because it incorporates lessons learned from
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previous successes and mistakes.
Project management may help you overcome negative habits, and it’s critical to
U
avoid repeating errors while completing projects. Retrospectives, lessons learned, or

post-project reviews enable project managers to assess what went well, what did not,
and what should be done differently on the next project.
This results in an useful collection of documentation that serves as a record of

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future “dos and don’ts,” allowing the organisation to learn from both its successes and
mistakes. Without this learning, teams often repeat the same errors.
These retrospectives are excellent tools to utilise at a project start meeting to remind
the team of mistakes such as underestimating projects and successes such as the value
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of a well-defined procedure or the criticality of maintaining accurate timesheet reporting!
Receive Training That Is Relevant, Practical, and Expert-led

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Watch this preview of our forthcoming Mastering Digital Project Management

Online Course—learn how to manage happy teams and deliver high-value projects in
the digital environment from industry experts.
The Competitive Advantage of Project Management

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Implementing project management throughout the company contributes to the

development of a strategic value chain that provides businesses with a competitive

advantage, especially in high-risk industries and markets. Delivering projects on

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schedule and under budget often decides whether a firm gets the next client or
launches a new product.
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According to the Economist Intelligence Unit poll, 90% of worldwide senior
executives rated project management approaches as crucial or somewhat critical to
their capacity to execute effective projects and maintain competitiveness.
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“A strong project management discipline adds tremendous value to the business
because when there is a demand for a product, we are the ones who deliver it,” says
David Buisson, PMP, programme manager at Headland Project Management Ltd.,
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which is currently managing the Terminal 3 redevelopment project for BAA Airports
at London’s Heathrow Airport. “As a critical component of the company, we follow the
same standards, rigour, and commercial objectives as the rest of the organisation.”
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Maintaining the project’s momentum involves a rigorous management of KPIs
and project objectives that goes beyond the project team to suppliers, contractors, the
client, and stakeholders. And Mr. Buisson and his colleagues are acutely aware of the
commercial effect of the terminal project’s development.
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“If we do not perform well, travellers may opt to fly via another airport, and shop
establishments may see a decline in sales,” he warns.
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“However, when we succeed and our passengers are satisfied, the firm succeeds.”
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To maintain a competitive advantage, businesses must integrate their project
management practises directly with their strategic business objectives, according to
Patricio Romero, director of the IT PMO at DirecTV Argentina in Buenos Aires.
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Additionally, PMOs may act as an effective connection between strategy and

outcomes by establishing and monitoring the relationship between strategy and results.
DirecTV, for example, has developed regional project management offices that serve
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as centres of excellence for guiding local project management offices in the adoption of
standardised project management tools, techniques, and key performance indicators.
“The regional project management offices recognise the benefits of project

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management,” Mr. Romero explains. “They assist in the establishment of consistent

procedures across the organisation.”
When DirecTV’s IT staff created a PMO two years ago, top management was
skeptical—but they quickly changed their minds.
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“When the PMO began, we were like a three-eyed fish in a laboratory. Nobody
knew who or what we were. However, after six months, the benefits began to appear,”
Mr. Romero explains. “We are now regarded as a centre of excellence inside the
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corporation, and other departments have begun to emulate our concept.”
The PMO produced a formal project management approach that was built on
a foundation of common practises developed by regional PMOs. It then applied
predefined key performance indicators (KPIs), as specified by regional PMOs, to
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track progress and results in relation to business objectives. Along with determining if
projects are on time and under budget, teams monitor whether they are meeting the
business objectives established in the project plan.

Connecting portfolio outcomes to critical business goals demonstrates the value of

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project management to the senior team, according to Mr. Romero.
“When top management wants to introduce a new product ahead of the
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competition, they approach the PMO,” he explains. “They understand that we
understand how to provide it, how to expedite the process, and how to track outcomes.”
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1.1.6 New Product Development Projects
The process of transforming a concept into a functional software product is called
new product development.
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The New Product Development (NPD) process is about identifying a market
opportunity centred on consumer demands, determining the viability of the concept, and
producing functional software.
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On the other hand, Product Development is an umbrella phrase that refers to the
six phases of the software development lifecycle and focuses on the introduction of
products that have previously shown their viability via a Proof of Concept (POC). The
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New Product Development strategy is centred on developing an altogether new concept
with a significant degree of uncertainty around its development and future acceptance.
Trello for task management and tracking, Zoom for video collaboration, Dropbox for
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cloud storage, Figma for remote designers, and Airtable for relational data management
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are just a few instances of successful new product development.
Here is an overview of each of these steps to help you better understand how to
design a new product:
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The Process of New Product Development in Seven Stages

Developing new goods and services may be an unpredictable process. Following a
methodical New Product Development process, on the other hand, may assist firms in
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gaining clarity and confidence in the products they are developing.

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A summary of the seven steps involved in the creation of new products
Stage 1: Conceptualization
The objective should be to develop a large number of good ideas that may serve
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as the basis for the New Product Development approach. Stage 1 should be primarily
focused on organising brainstorming sessions with the primary objective of resolving
customer concerns.

This phase is not about coming up with flawless concepts that are ready to be
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implemented. Rather than that, fresh and untested ideas should be shared in order to
be selected later.
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This is how a company may do this:
1. Emphasize on customer problems
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A well-described issue is a problem half-solved. The following steps will assist you
in identifying the difficulties that your target audience is facing:
a. Personal Problems
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It’s a good idea to start by examining the challenges that the firm is currently
experiencing. All a firm has to do is zero in on that particular issue and develop a
solution that can be labelled as a “one-size-fits-all” solution to the shared issue.
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To begin, a firm must comprehend the human narrative behind digital services.
For instance, Twilio’s creator, Jeff Lawson, offers a fascinating narrative about the
company’s communication-related software product launch.
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He had worked for three other businesses, all of which lacked one thing: productivity.
When he felt compelled to begin over with something of his own, he recognised
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the need of plugging communication gaps, which were, in his experience, the main
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impediments to production.
That is when Twilio, a product breakthrough, occurred. While the process of

developing and marketing the product had its ups and downs, his commitment to have
this product resulted in a fantastic business concept.
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b. Define Each of the Listed Issues

This stage assists in determining the viability of the nominated challenges and their
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solutions using Michael Skok’s 4U technique, the originator of Startup Secrets. The 4U
abbreviation stands for:
Examining each of these facets in further depth will provide greater clarity.
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●● Unworkable: Determine if the product ideas generated during brainstorming

will solve any genuine issues. Is the product capable of addressing current
customer experience gaps and achieving product-market fit?
●● Unavoidable: Is the issue that the product will solve inevitable to the point that
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compliance becomes mandatory? It is vital to ascertain if resolving that issue

is voluntary or compelled.
●● Urgent: Is the issue urgent, and is the solution in great demand in the target
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market? If the response is positive, this might be an opportunity to fill a market

gap with an innovative product.
●● Underserved: Are there no goods available that solve current consumer
issues? Look for whitespace in the market and hang on to a good concept.
c. Proposing Possible Solutions
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After identifying an issue, it’s important to consider alternative remedies. There

should be possible New Product Development possibilities for every consumer concern.

This is the process that begins with a problem and concludes with solution planning.
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In general, regardless of how widespread or unusual the issue, the remedy should
be distinctive. Even if a product already exists, verify that it solves issues in a novel way.
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Slack and Zoom, for example, are both SaaS applications that emphasise
communication and collaboration. Zoom, on the other hand, distinguishes itself by
permitting the conduct of webinars. In other words, webinars are their distinguishing
feature (USP).
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d. Narrowing Down Issues + Possible Solutions
Create a comparison chart that includes all of the nominated issues and their
associated solutions. Distribute the results across the organisational hierarchy in order
to develop a workable issue set.
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If stakeholders remain unconvinced about the nominated proposal, use the

Replicate, Repurpose, and Upgrade strategy.
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●● Replicate: This strategy focuses on developing a product that is identical to

that of a rival but is launched in a new market environment. After establishing
the minimal viable product (MVP), the approach should be to continue
expanding the company by offering innovative and out-of-the-box features.
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●● Repurpose: This strategy focuses on rewiring an established company

paradigm. LinkedIn, for example, has launched LinkedIn Learning, an
e-learning platform for professionals. This product was comparable to an
e-learning platform for students, but they expanded the target demographic
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and market share.

●● Upgrading: This New Product Development idea is based on the introduction
of a new business model that is superior to current solutions. Better might
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refer to increased performance, increased speed, resolving a competitor’s

difficulties, or adding new functionality.
Stage 2: Idea Evaluation
This stage of New Product Development is all about identifying the one concept
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that has the greatest chance of success. Make all ideas accessible for internal
evaluation. That is, seek for individuals with professional expertise and experience in
the sector to assess your ideas.

For a new product development idea, a proof of concept (POC) should take
Notes
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priority since it enables the viability of the concept to be determined. There is no use in
focusing exclusively on a concept that is technically impossible to implement.
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Consult the team of Agile Developers. Their experience may aid in comprehending the
technical side of things, which can aid in shortlisting ideas worthy of a proof of concept.
SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is another
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useful technique to use when narrowing down New Product Development concepts.
The Agile Development team, the product owner, the scrum master, and the
product manager perform a rigorous analysis of the concept to determine whether
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opportunities and threats outweigh the weaknesses and dangers.
Conducting a SWOT analysis is a pretty straightforward process. To get started, all

you need is a basic 22 grid:
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In conclusion, the New Product Development concept should be distinctive enough

that consumers will pay for it without being persuaded.
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Stage 3: Conceptualization & Validation
Prior to initiating the New Product Development process, it is critical to develop a

thorough version of the concept and user stories.
This examination of the value proposition serves as the foundation for idea creation
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and testing. At the very least, it guarantees that flaws in the strategy are identified
sooner, allowing the team to alter course sooner. This contributes to preventing the
accumulation of technical debt.
The simple-to-follow idea development stages are as follows:

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1. Determining the Gain/Pain Ratio
A firm must provide an accurate image of the product from the standpoint of the
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user. This may be accomplished by computing the gain/pain ratio, which is calculated
as follows:
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Gain = The product’s benefits to the client. What do they stand to gain? Pain = The
customer’s efforts to comprehend and utilise the product.
2. Competitor Analysis
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Understanding current market participants is a vital strategic consideration.
Understanding the competition facilitates inference:
●● Where the competition is deficient
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●● What areas are ripe for improvement?
●● Existing market white space
3. Compiling a List of the Product’s Major Features
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The user stories included in the New Product Development software project will
make or destroy a firm. When compiling a list of such characteristics, it is critical to
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understand how each one is creative and how it will address an issue.
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4. Create a chart outlining your value proposition.
Even if one is sure of the soundness and usefulness of a concept, communicating
it properly to the end-user in their context is an entirely other story. The end user must
be made aware of the capabilities of the new product.
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This neat and appealing manner is best shown by a value proposition chart. Which
should follow the following format:
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Chart illustrating the value proposition

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5. Concept Testing

Once the value proposition is complete, it is time to offer it to a small group of

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carefully chosen clients. The way people view the concept is the litmus test for the
efforts so far. If the concept does not seem to be viable, it is prudent to repeat the idea
screening process in order to build a new product.
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Significant understanding may be acquired by concentrating on four essential factors:
●● Identification of the target group, i.e., those who might profit from the newly
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developed product.
●● Evaluation of additional possible choices to offer to the focus group.
●● Create a flawless strategy for new product development that covers all
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phases, including feature development, marketing, price, and distribution.
●● The process of instilling the product’s distinctive attributes in the thoughts of
buyers in order to improve findability and discoverability.
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The report on the idea testing might look something like this:
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Stage 4: Market Strategy/Analysis of the Business
Marketing strategy is all about devising a method of communicating with the target
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audience. Perhaps the easiest technique is to follow McCarthy’s four Ps of marketing

while doing a New Product Development project.

Category Meaning Purpose

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Product Finalizing the software product in Product Design
accordance with the findings of Branding Strategy
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the concept testing report
Level of services offered
Price Developing a plan for minimising Pricing Strategy
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the cost of product licencing, Discounting Policies
predicting profit margins, and
d e v e l o p i n g a n u n b e a t a b l e Payment Modes
marketing approach
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Promotion Distinguishing the new solution Striking a balance between advertising,
from the competition by marketing, and public relations
emphasising the hero point or The channels via which the target
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distinguishing trait audience will be reached
Maintaining a reasonable limit on
the frequency of customer contact
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Placement Communicating how it resolves Finalizing distribution plans for product
the customer’s critical issues Establishing the product
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This business study will assist in determining if the New Product Development
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initiatives are financially viable (i.e., will they provide a consistent stream of value) or not.
It is critical to strategy intelligently about the selling price by establishing the product’s
base pricing. The simplest technique to determine the basic price is as follows:
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1. A Cost-Benefit Analysis of the Pricing Model

The original manufacturing cost is added to the markup % to determine the final
price of the new product.
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Utilizing the cost-plus pricing methodology:

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●● Cost of production = technology cost + development cost + licence cost =

$100
●● Percentage of markup Equals 50%
●● Price = $150.00
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When a business analysis team employs the psychological pricing trick (i.e.,
concluding the final price with five or nine numbers), conversion rates improve.

Therefore, if psychological pricing is in effect, the $150 price becomes $149.9.

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2. Market-Focused Pricing
This price is determined by an in-depth examination of the pricing models of
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comparable items in the target market.
The trend of market-based pricing is as follows:
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Consider the following factors when establishing a competitive price:
●● Pricing Above Market: A premium price is appropriate when pursuing New

Product Development activities that address a pressing consumer need.
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●● Copy Market: Initially, selling the new product at the same price as rivals may
be the safest course of action. However, marketing efforts would need to be
increased significantly to outperform the opponent.
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●● Price Lower than Market: It is advised to price the new product cheaper than
the rival to attract clients who can be turned into loyal ones over time, even if
the new solution addresses problems differently.
Stage 5: Product Creation
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After establishing the New Product Development concept, documenting the

market strategy, and doing a business analysis, it is time to begin the product life-cycle
development process.
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The process of building a new product begins with the creation of a prototype,
followed by the creation of a minimum viable product (MVP).
1. Prototype
This phase focuses on developing the product’s UI/UX, which is subsequently
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shared with stakeholders. This assists in envisioning the final product and determining if
it adheres to ergonomic best practises.

2. Minimum Viable Product (MVP)

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This focuses on developing the user stories for the New Product in an Agile
manner that will differentiate it from competitors. After design, development, and
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testing, the MVP is introduced in the market with the fewest possible functionality. The
subsequent repetitions are contingent upon the original answer.
The optimal strategy to New Product Development is via Agile Product
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Development, which emphasises gradual and iterative development while encouraging
collaboration and communication.
This strategy is superior to the waterfall approach because it enables back and
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forth movement throughout the product development cycle when new customer needs
arise. While the phases of development are comparable in Waterfall and Agile, both
software development approaches are distinct.
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Agile’s benefit is that it accelerates the software development process while

ensuring communication and coordination amongst development teams.
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Stage 6: Deployment
Once the MVP is complete, the focus shifts to deploying the product in a live
environment. This method include adopting a DevOps mindset and establishing a
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continuous integration and delivery pipeline.
The various phases of implementation include the following:
a. Commit
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This step entails the following:
●● The newly created features are included into the current feature’s code.

●● The quality assurance team verifies that the integrated code functions properly.
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●● Jenkins and other continuous integration/continuous delivery systems execute
automated unit tests and sanity checks to ensure the code is effective.
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b. Build
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●● Developers use Docker technologies such as Gradle, Packer, and AZK to
deploy software items into the registry.
c. Alpha Deployment
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●● Developers evaluate the performance of new builds as well as the

relationships between them.
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d. Beta-Version Deployment
●● Manual validation of the new product’s overall performance and output
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efficiency under all input conditions.
e. Deployment of Production
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●● The product gets pushed into the live environment, which means that it is now
accessible and ready for end customers to utilise.
Stage 7: Commercialization/Entry into the market
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Commercialization is a catch-all phrase that refers to a variety of tactics aimed at

ensuring the success of a new product. Commercialization entails the following:
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If all of the aforementioned tactics are implemented correctly, nothing can prevent a
product from gaining attention and achieving product-market fit.
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The following are some critical marketing initiatives that will aid in the product’s
adoption:
1. Marketing the Concept Over Product

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The notion is straightforward: instead of continually talking about the product’s
characteristics, discuss the concept and the product’s aim. In a nutshell, explain how
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the product will simplify the customer’s life.
When HubSpot, a product for marketers, was introduced, it met with little success.
Regrettably, their clients could not comprehend the purpose of the now-popular product.
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How, therefore, did they alter the game?
They decided to advertise and promote their unique selling feature rather than the
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full product. That differentiating factor was inbound marketing.
They began spreading knowledge about inbound marketing and quickly established
themselves as a market leader in the software product business. Oftentimes, all that is
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required for a product to achieve the magnet effect is effective marketing.
2. The Importance of Having a Brand Voice

A distinct perspective and a distinct voice will always attract an all-ears audience.
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This is when the marketing team comes into play. They must build a successful
communication style that accurately portrays the brand.
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Whether it’s blogs, emails, or even website content, all of these aspects must be
well-thought-out and succinct in their communication. Finally, these aspects should
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have the ability to pique the interest of the target audience.
3. Conducting Intriguing Webinars

Webinars are one way to attract quality leads. Conduct webinars to explain how the
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new product will benefit the audience and to detail the new features.
Additionally, webinars may aid in the promotion of discoverability and findability:

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●● Findability: It is simple to locate and use features that the consumer is aware of.
●● Discoverability: It is simple to locate and use features that the consumer is
unaware of.
With the growth of remote work, webinars are an even more efficient approach
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to reach a targeted audience. Discuss the product, its characteristics, and see the
favourable influence on the bottom line.
The Advantages of the Product Development Process

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Several advantages of adhering to the New Product Development process include

the following:
●● Assists in determining the technical feasibility of a concept

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●● Ensures a shorter time to market Addresses client demands effectively

●● Increases the likelihood of success
●● Eliminates technical debt
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●● Improved feature creep management

●● Eliminates potential costs

1.1.7 Product/Process Improvement Projects

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What is the purpose of product improvement?
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Product improvement is the process of implementing substantial product
modifications that result in the acquisition of new customers or the enhancement
of current customers’ advantages. The two most common methods of product
enhancement are to introduce new features or to enhance current ones.
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Enhancing existing features:
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New features are inherently dangerous. You must be certain they will be appreciated.
Adding new features broadens the scope of an existing product, often resulting in
a large marketing splash, a version bump, and several press releases. Frequently, the
hype draws additional clients and application possibilities for the product. Typically, only
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new features are communicated to non-customers.
New features are inherently dangerous. You must be certain they will be cherished,
since they are similar to children; you must unconditionally love and support them.
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“Would you want a Calendar|TimeTracker|Gantt Chart?” inquire your customers.
and they will respond affirmatively. It is a one-way offer of “something or nothing.” They
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have not been forced to choose between conflicting objectives. This results in clients
expressing an interest in items they do not really want.
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“Would you prefer that we made the product much quicker or that we included
additional labelling features?” and you will get a different response. Everybody
values quickness.
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Enhancing current capabilities:

You may upgrade an existing feature in three ways: you can make it better
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(deliberate improvement), you can make it more frequent for consumers (frequency
improvement), or you can make it more accessible to more people (accessibility
improvement) (adoption improvement).
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Not every enhancement will be embraced by every user.

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1. Intentional enhancements
When you understand why consumers utilise an existing product and what they
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value about it, you can make purposeful enhancements. A thoughtful upgrade tries
simply to improve the function in ways that existing users would like.
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Use when: You see an opportunity to add significant value to a feature that all your
customers use and enjoy.
2. Increased frequency
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These are enhancements that you make to encourage a consumer to utilise a
feature more often. Increasing the number of articles in an activity feed or the number
of search alternatives in a search tool encourages individuals to read it more often or to
use it for more tasks each day. This sort of enhancement may transform a once-a-week
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function into a daily one.
Use when: There is a feature that the majority of your customers use infrequently
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and you believe they would benefit from it being used more frequently.
3. Increased adoption
Adoption enhancements are directed at clients that do not use a feature. For
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instance, if only half of your user base utilises a calendar function, an adoption
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enhancement seeks to convert the other half. By including ICS file import and Google
Calendar integration, you do not enhance it for all users...but you increase the likelihood
that non-consumers will suddenly embrace it. When you hear statements such as “I’ll
utilise this as soon as I can...”, an adoption enhancement may be beneficial.
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When to use: There is a critical function that a sizable portion of your customers
have yet to accept, and you notice several clear integrations or adjustments that will
facilitate their adoption.
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Continual product improvement:

Startups have an edge over incumbents throughout their formative years. They
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can move more quickly and adapt more effectively since they are not burdened by
technological debt, legacy features, compatibility difficulties, or large value clients.
Often, this agility and quickness causes start-ups to pivot like headless birds, rather
than focused on really developing their product. To properly embrace Kaizen, product
managers must strike a balance between two objectives: first, identify changes that
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benefit the company and its consumers; and second, guarantee that these improvements
do not get lost on a whiteboard someplace and actually make it out the door.
Because, ultimately, if there is one thing that is true for startups, it is this: “If you
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are not delivering, you are dead.” Simply ensure that anything you send attracts new
consumers or increases your existing customers’ admiration.
Process Improvement Project

(c
A process improvement project is a written or digital plan outlining how the project
manager and team will enhance the procedures of the project in the future. Each
procedure may need modification or updating as obstacles occur or customers want

changes to a project. A process improvement plan assists in visualising how processes

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develop over time and the associated benefits.
The advantages of implementing a process improvement strategy
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A process improvement plan can assist a team in increasing the efficiency of their
processes and thus saving time and money. The following are some of the most often
cited advantages of using a project improvement plan:
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1. Identifying difficulties early
Obstacles such as a shortage of materials or supplies, customer requirements,
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or an incorrectly estimated budget may cause a project to stall or spend more money
and resources than anticipated. By assessing the status, budget, and requirements of
a project, a process improvement plan may assist the team in resolving possible issues
more rapidly. Early identification of issues may save time and money and promote more
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openness between the team and the customer.
2. Enhancing effectiveness
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The efficiency of a project is a ratio of the resources it uses to the output it
produces. A successful project generates the greatest amount of product with the
fewest resources. Process improvement plans enable a team to assess the project’s
overall efficiency and identify areas for improvement in project management, resource
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allocation, and manufacturing processes.
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3. Rectifying mistakes
Even the most efficient initiatives might sometimes encounter problems as a result of
miscalculations or planning errors. A process improvement strategy enables the team to
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swiftly detect mistakes and develop a reaction to resolve them. This helps maintain process
efficiency throughout the project’s lifecycle and avoids future financial or time losses.
4. Getting rid of or minimising process waste

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Each step in a project has the potential to generate “waste” in the form of surplus
materials, labour, or expenditures. Excessive emails as a result of a lack of project
management software are an excellent illustration of process waste. A process
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improvement strategy may involve the acquisition of a project management platform to

eliminate unnecessary communication and increase the efficiency of project cooperation.
5. Managing unplanned downtime

Downtime is a term that refers to any time spent on a project that is not spent
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working on it. Downtime may result in financial loss and decreased output. A process
improvement plan enables the team to identify causes of downtime, quantify their impact
on each process’s productivity and budget, and develop strategies to prevent loss.
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6. Inventory management
Having the appropriate materials and equipment for a job may significantly boost
efficiency and production. A process improvement plan assists a team in determining
the appropriate materials or tools for the work and their application to the project. The
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team may then prepare for more efficient or cost-effective equipment or materials if the
first alternatives prove inefficient or too expensive.

How to establish a strategy for process improvement:

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Developing a process improvement plan entails many critical processes that
examine the initial project design, each project process, and the involvement of each
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team member. A typical process improvement strategy might contain the following:
1. Conduct an analysis of your present procedures.

The first stage in developing a process improvement strategy is to conduct an
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analysis of the present project.
●● Errors: Determine the number of mistakes that each process encounters
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during a normal production phase and the associated cost in terms of time,
materials, and labour.
●● Production Needs: Determine the material, labour, and budgetary
requirements for each step in the project.
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●● Client Needs: Analyze customer requirements and determine if the project
satisfies them.
●● Team requirements: Determine if the labour team’s requirements have been satisfied.
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●● Leadership requirements: Determine if the project manager understands the
project and has the resources necessary to allow effective leadership.
2. Construct an outline
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With the requirements for each step properly recorded and accounted for, the team
can produce a comprehensive overview of the project. This overview contains specific
information on each process, such as financial, labour, material, time, leadership, and
client needs. It gives a high-level overview of the project and enables the team to
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identify existing project and process difficulties. The outline may be written, sketched, or
presented visually. Send a copy to each member of the team for evaluation, since this
ensures that everyone’s contribution is accounted for and that the project is examined
from all sides.
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3. Reengineering each process

After gathering feedback, the team moves on to the redesign phase. The team
utilises all available information during this phase of process improvement planning
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to produce a new design for each component of the project. This process often starts
with a brainstorming session to identify frequent faults or obstacles and progresses
to more sophisticated planning phases that need specialist expertise. For instance, a
development team may be able to identify the tools necessary to produce a particular
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piece of software but may lack knowledge in marketing or financial planning and hence
need professional guidance.
4. Assign responsibilities and carry out the strategy

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The team conducts brainstorming sessions and redesigns each process with an
eye on efficiency and productivity, accelerating the implementation phase. Typically,
the project manager allocates new jobs or expands on existing roles to fulfil the
project’s increased requirements. The team gives a timetable to each process and
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establishes objectives for the team to meet by certain dates. To carry out the plan, it is
necessary for everyone to understand their function, the project’s requirements, and the
client’s requirements.

5. Conduct periodic reviews

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Because a process can nearly always be improved, it is critical to assess even the
most efficient processes on a regular basis to identify areas for improvement. Reviews
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may be brief, cursory examinations of production requirements, such as cost and labour
requirements, or in-depth examinations of each process on a monthly basis to identify
areas for improvement.
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Which approach for process improvement should you use?
The key to maximising the benefits of process improvement is to choose a
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technique that is a good match for your objectives. Each is somewhat different in its
objective. And regardless of the strategy you chose, you’re likely to modify it more to fit
your circumstances.
The following questions will assist you in determining which approaches to use.
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●● What is the cost-benefit analysis of process improvement? Weigh the expense
of completing the analysis against the potential benefits of process change.
For instance, it may be required to make modifications to a single department
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or project area, but the overall effect on the company will be minimal. In this
instance, it makes logical to choose a less time- and resource-intensive strategy.
●●
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How large is your team? Certain approaches are more effective when used
as broad organisational models. Others are well-suited for small teams
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or organisations.
●● Do you need a solution that is extremely scalable? A process improvement
strategy that is effective on both a big and small scale is beneficial for
implementing gradual improvements over time.
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●● Which established approaches are you utilising? If you’re currently using

certain aspects of Lean management, for example, gradually incorporating
more may be straightforward.
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What you may not realise is that diagramming and process improvement go hand
in hand. Numerous techniques make extensive use of process diagrams to assist you
in visualising difficult facts, organising your ideas, and communicating critical goals to
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others. Consider the following common process improvement approaches.
1. Kaizen
Kaizen is a method that promotes continual development by making tiny
adjustments to everyday work or business culture. It encompasses all personnel, from
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the most junior to the most senior. Kaizen aims to increase quality, productivity, and
efficiency by making incremental, measurable changes to the way the organisation runs
and teams cooperate.
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2. PDCA Cycle
PDCA stands for Plan, Do, Check, and Act. It is also a component of the Kaizen
process. It enables firms to be more efficient by identifying inefficient operations. To
begin, you define the issue (plan). Then you develop a prospective solution (do), test
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it, and assess its efficacy based on the results (check). Finally, you describe the final
outcomes and, if the strategy is effective, you execute it (act).

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3. 5S
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5S is an acronym for Sort, Set in order, Shine, Standardise, and Sustain. It
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is a component of the Kaizen and Lean processes. The ultimate purpose of 5S is to
increase workplace efficiency and organisation.
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4. Six Sigma
Six Sigma requires personnel to go through multiple ‘karate belt’ levels, with green
being the entry level and black representing the highest level. It is divided into two sub
methodologies: DMAIC for process improvement and DMADV for process creation.
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●● DMAIC is an abbreviation meaning Define, Measure, Analyze, Improve, and

Control. It’s a five-step strategy for revitalising processes that are presently
operating poorly.

●● DMADV is an acronym for Design, Measure, Analyze, Design, and Verify. This
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is similar to DMAIC, except that it is used for processes that have not yet been
implemented. DMAIC’s purpose is to produce a new approach that is effective.
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Convenient Six Sigma diagrams to memorise
●● SIPOC analysis: this analysis happens during the DMAIC or DMADV’s

‘measure’ step. It assists businesses in identifying business needs and then
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developing and implementing a process improvement project as a process.
SIPOC is a special case of a swimlane diagram.
●● Value stream mapping (VSM): this technique enables businesses to visualise
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their customers’ impressions of their brand or company. The objective is to
determine the value that a process or product adds and to remove waste.
●● Fishbone diagram (or cause-and-effect diagram): this tool is used to conduct
an in-depth investigation of operational or product design faults. The fishbone
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diagram’s head depicts the central issue, while the branching lines or ‘bones’
reflect possible reasons.
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5. Total Quality Management (TQM)

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Each employee is expected to contribute to the improvement of the provision

of goods or services under TQM. It varies each organisation, but some major
characteristics of TQM include the following:
●● The quality is determined by the customer.

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●● Each employee contributes to a common purpose.

●● Over time, quality improves.
●● Managers establish objectives, monitor performance, and seek out new
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methods to improve their effectiveness.

●● The Kanban board workflow tool leverages visualisation (often a digital
‘board’) to get everyone on the same page when it comes to process
improvement. As is the case with many other approaches, a strong emphasis
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is placed on Lean improvement.

6. Processes Mapping

Process mapping, sometimes referred to as a process flowchart or functional

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flowchart, is a workflow visualisation technique used to illustrate the steps of process
improvement. As a flowchart, it illustrates critical statistics about a procedure from start
to finish.
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7. Balanced Scorecard (BSC)
The Balanced Scorecard is a performance management tool for assessing an
organization’s present performance and progress toward particular objectives. The BSC
model assesses corporate operations from four different vantage points.
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a) A financial standpoint
You can get a comprehensive picture of a business’s financial health by examining
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elements such as sales, costs, and return on investment. The next phase is to improve
operations and increase revenue while cutting expenses and managing resource allocation.
b) The viewpoints of customers and stakeholders

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Adding value to the company enables it to achieve a higher level of client

satisfaction. Businesses may improve their goods and expedite development by
knowing what consumers want and listening to their comments.
c) A look at the internal processes

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The internal viewpoint is concerned with the business’s operational health.

Concentrate on determining production or product development efficiency and output
quality. The objective is to identify bottlenecks or inefficiencies and devise strategies to
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eliminate them.
d) A viewpoint on learning and development

The growth perspective takes into account the business’s entire capability for
expansion. This statistic considers a variety of elements, including organisational
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culture, human resource development, technology, and infrastructure. Cultivating

current resources enables a business to capitalise on fresh possibilities.

BSC gives a high-level analysis of a business’s viability and identifies possibilities

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for development. Due to the breadth of the viewpoint categories, any business may
choose the specific metrics they choose to employ. By experimenting with various
solutions, you may optimise your operations.
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How to establish a strategy for process improvement
After deciding on a technique, it’s time to put your strategy into action.
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1. Determine your procedure.
Create a list of the steps required to complete the process and determine which
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diagram to use. Ideally, you should utilise diagramming software instead of paper or
whiteboards for this. When everything is digital, you can easily update, store, and share
several diagram versions with your team and stakeholders.
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2. Streamline your procedure
No technique for process improvement is flawless the first time. Make a point of
delving into each phase and determining how to resolve bottlenecks, delays, or wasteful
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methods. Small, incremental stages are key to lean process improvement – and your
planning and development should be no different. If you’re having difficulty determining
the reason of a certain problem, utilise a root cause analysis or fault tree analysis
diagram to reveal the source.
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3. Revise, restructure, and reintroduce new elements to your process
You’ve identified your issues and determined how to resolve them. Now is the
moment to communicate your strategy to the rest of the team. Utilize this as a chance
to enlist everyone’s support (strong organisational communication skills are a must
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here). Share your suggested ideas with team members to get input from a variety of
perspectives. After all, they may see something you have overlooked.
Involvement of all stakeholders has the extra advantage of fostering teamwork and
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a sense of openness. If you’re utilising (highly recommended) diagramming software

such as Cacoo, take use of real-time commenting options that enable team members to
contribute their opinions publicly.
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4. Begin allocating resources

After speaking with your team, you should have an idea of how long each task
will take and the resources required to complete the work. This stage may also include
budgeting, inventory adjustments, hiring consultants, obtaining new software, and
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upgrading supply arrangements – whatever resources you need to proceed.
At this point, the project manager should begin tying everything together. Consult
managers and staff from various departments to get a complete picture — not to
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mention to enlist their support if there are procedures or rules that must be addressed
before things can go forward. Once you’ve developed a sound resource allocation
strategy, communicate it to all stakeholders.
5. Organize and communicate your implementation strategy

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Your strategy should be basic and uncomplicated. Keep your writing free of jargon,
cryptic acronyms, and irregular formatting. In short, do everything necessary to ensure
that it is understood by as many people as possible.

Include the names of all parties. Then, create a list of all the phases and activities
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in your plan, including a timetable indicating when each activity begins and ends. The
more time you devote to this, the more crystal obvious it will become for everyone.
Additionally, your coworkers will be more inclined to adhere to it.
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Again, effective communication is critical. Justify your actions and invite comments
and inquiries – not just now, but also throughout the project’s kick-off.
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6. Constantly monitor and improve
Process improvement should not be seen as a one-time event in the spirit of
Kaizen. To maximise your chances of success, you’ll want to check in often to ensure
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that everyone is adhering to the new procedures.
Address bottlenecks and problems as they occur, and change the strategy as
necessary. Monitor the outcomes of each improvement to confirm it was a success and
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to make any required modifications. The more collaboratively you can work on this, the
more smoothly your process improvement will go.
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1.1.8 Technology Induction and Assimilation Projects
Human beings have been making things for many thousands of years. Originally
most products were made on an individual as-needed basis; if a tool was required, it
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was fashioned by hand and in turn used to make more tools. As time passed, more
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complex techniques were developed to help people accomplish fabrication and
production tasks. Metalworking technology, weaving looms, water-driven grinding
mills, and the development of steam and gasoline engines all contributed to a greater
ability to make various products, but things were still generally made one at a time by
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craftspeople skilled in various techniques. It was only after the Industrial Revolution and
common use of electrical energy and mechanisms that manufacturing of products on a
large scale became commonplace.
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Usage of technology and its induction into the process takes mere mechanisation
further – and it greatly reduces the need for human sensory and mental requirements
while simultaneously optimising productivity.
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With the advent of computers and solid-state devices, electromechanical control

systems became smaller, more flexible, and less expensive to implement and modify.
Thus technology assimilation ensures that human operators performing tasks that
involve hard physical or monotonous work can be replaced and increase safety. This is
especially applicable to tasks that are beyond human capabilities - for example handling
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heavy or large loads, manipulating tiny objects, or the requirement to make products
very quickly or slowly.
Technology induction and its consequent assimilation will also ensure that systems
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and processes can easily incorporate quality checks and verifications to reduce the
number of non-tolerance parts being produced while allowing for statistical process
control that will allow for a more consistent and uniform product.
Thus, to summarise, technology induction and assimilation results in:

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●● Lower operating costs

●● Improved worker safety

●● Reduced factory lead times, increase productivity and efficiency

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●● Faster ROI
●● Ability to be more competitive
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●● Increased production output along with consistent and improved part
production and quality
●● Smaller environmental footprint
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●● Better planning
●● Reduce need for outsourcing
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●● Optimal utilisation of floor space
●● Easy integration
●● Maximise labour
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●● 24/7 production, JIT manufacturing-friendly
1.1.9 Strategic Implications of Project Management Activities
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Project managers are senior-level management people who supervise projects,
determining its scope, budget, and production specifications. Project management
methods assist the project manager in adapting to changes that occur throughout the
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course of the project, optimising the planning process, and uniting the team behind a
shared objective. Choosing the appropriate project management approach may make
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or break a project’s overall success. We will demonstrate 12 project management ideas
in this post to help you increase project efficiency.
What is a project management strategy?

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Project management strategies are leadership techniques that project managers

employ to bind their teams together and overcome certain obstacles. These tactics
assist everyone in comprehending the project’s requirements and the manager’s
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desired progression of each phase.
Why would you want to use project management strategies?

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Project management solutions assist teams in overcoming obstacles, increasing

productivity, and achieving particular objectives. A project management plan establishes the
foundation for improved cooperation, increased output, and more efficient projects. Efficient
projects may save time and money while increasing the project’s overall profitability.
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12 techniques for project management

The following twelve project management tactics can help you increase your
project’s efficiency:
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1. Establish clear objectives early on and keep them flexible

Defining objectives is an important aspect of the project planning process and will
continue to be so throughout the duration of the project as your requirements evolve.
Goals that are clearly specified assist the team in focusing on a single objective and
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provide direction for the project. Managers may establish objectives early on and
employ the following approaches to promote adaptation throughout production:

Recognize approaching changes

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The sooner you recognise potential modifications to the project scope or timeframe,
the simpler it is to adjust the project’s objectives in time to optimise efficiency. For
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instance, if a customer is analysing pricing options, there is a significant possibility the
price will change shortly. You may adapt your objectives in response to a prospective
price change by including a strategy for both an increase and a drop in pricing.
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Maintain communication with the team
Changes that arise unexpectedly might have a negative impact on a project if
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they are not communicated to all stakeholders as soon as feasible. Adaptability requires
regular, transparent communication about expectations, project scope, and recommended
adjustments. Consider using a professional team management tool to help you improve and
sustain effective communication between team members and leadership.
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Prepare for difficulties
Because projects might encounter setbacks and surges, it’s critical to prepare for
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target modifications early on. While the team is developing the project’s objectives,
consider developing contingency plans for any modifications. For instance, if the
timeframe for a project is subject to alter due to material availability, including this into
your original plan enables you to react swiftly once the project starts.
2. Comprehend the scope of the project

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The scope of a project is its size, which has an effect on the budget, labour
requirements, and overall efficiency of the project. Larger projects need more personnel
and resources, which may add to the budget and necessitate greater leadership.
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Understanding the scope of a project enables project managers to deploy resources

appropriately and offers a more accurate picture of the project’s timeframe. Conduct
research on the project’s requirements, the client’s requirements, and the team’s
requirements in order to fulfil project objectives.
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3. Maintain effective communication with customers and team members

Communication is critical to the success of any project because it enables everyone
to comprehend the project’s requirements and possible obstacles. Communication is also
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critical for determining customer expectations and adjusting to changes in the project.
Clear, succinct discourse, candid criticism, and pleasant body language all contribute
to effective communication. By using pleasant gestures to reinforce the words you’re
expressing, body language may help improve verbal communication.
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4. Promote collaboration
Teamwork is critical to the project’s success since many initiatives demand the
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collaboration of numerous persons or departments. Encourage cooperation to keep

staff focused on the value of collaboration. As a leader, you may foster cooperation by
actively engaging in the project, providing the necessary tools, and communicating with
team members about changes, progress, and scope creep.
5. Establish specific expectations

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Clear expectations reduce the margin for mistake by bringing everyone together
under the same set of principles. For instance, setting a target of two weeks for the

completion of a project keeps everyone focused on the deadline and fosters mutual
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understanding between the customer, team, and leadership. Setting clear expectations
entails communicating often with teams and clients, offering reminders about
expectations, and receiving feedback.
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6. Identify and manage project risks
Certain projects have hazards or financial consequences that may have an effect
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on the project’s final result. Consider doing a risk analysis before to starting the project
to identify risks, develop viable solutions, and get an understanding of the potential
harm that risks might cause. The more a project manager knows the risks associated
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with the project, the less unexpected they are throughout each phase.
7. Organize your job using a work breakdown framework.

A work breakdown structure, or WBS, is a technique used by project managers
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to divide large projects into manageable tasks for their teams. This assists in breaking
down huge undertakings into smaller objectives that are often more manageable.
Typically, the WSB model comprises of three levels:
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●● WSB level one: The fundamental objective of the project. For instance, by the
fifth of the month, the team must have completed 800 orders.
●● WSB level two: You break down the primary objective into five to ten
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components. The project manager allocates resources and establishes
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timelines for each component and determines risk tolerance.
●● WSB level three: You subdivide each of the five to ten components into
smaller components to specify particular requirements or objectives.
8. Keep track of your procedures.
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The documentation phase is critical to the success of a project because it provides

the team with a written record of how the project developed. Following the completion of a
successful project, the project manager can review the documents with the team to determine
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where they exceeded expectations, where they excelled, and where they encountered
obstacles. This is an important resource for future project planning since it establishes a
framework for success and gives formal confirmation of the team’s capabilities.
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9. Make provision for comments

Feedback from teams and stakeholders may assist a project manager in identifying
critical project variables they may have overlooked throughout the course of the project. The
team and stakeholders often have a different perspective on the project than the project
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manager, which may help you get a better understanding of how the project is progressing.
You may solicit feedback directly or indirectly via follow-up emails and surveys.
10. Commemorate significant events

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Milestones are significant objectives achieved by the team during the course of the
project. Milestones may serve as a focal point for team members and serve as a source
of incentive. To foster collaboration and communication, project managers celebrate
accomplishments with team members. Encourage workers by providing positive
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comments when they achieve significant goals. You might say something like “I’m
very proud of your accomplishments” or “Your dedication has inspired me; keep up the
good work.”

11. Invest saved funds

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When a project is completed efficiently, both money and time are saved, which can
be reinvested in the team or organisation. Consider reallocating finances or resources
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to new initiatives that benefit the team’s development or the growth of the firm. For
instance, if a project is completed under budget, you may reinvest the savings in staff
development programmes such as communication or software training.
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12. Recruit more qualified individuals
The talents of a team may have a favourable effect on the efficiency of a project,
which makes the recruiting process critical to the success of your endeavours. Finding
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the proper employees can add essential talents to the team and help projects move
forward more swiftly. Consider using a recruiting firm or job application website to
streamline your recruitment process and conduct more in-depth interviews, such as
the following:
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●● What is your strongest ability?
●● How do you react under duress?
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●● How do you communicate with the leadership team about issues?
●● How do you deal with unexpected changes to a project?
1.2 Project Management Life Cycler

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Project Management objectives are the successful creation and implementation of
a project’s commencement, preparation, execution, regulation and ending as well as
the guidance of the project team’s operations. All of this is directed towards achieving
the project’s goals within the set scope, time, quality and budget. It is the discipline to
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plan, organize, motivate, and control the resources to achieve the project goals.
The main objective of project management is to achieve the specified project goals
and targets within the scope, time, quality, and cost.
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Some of the parameters of Project Management be considered are:
●● Can the organization execute the project?

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●● Is the project appropriate considering the company’s overall goals?

●● What skills would be required for a successful project?
●● Does the project cater to the needs of the customer?
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●● How would the resources be assigned for the project?

●● What would be the implementation procedure?
●● How will the project shape over time?
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●● How would effective collaboration, communication and productivity guidelines be set?

●● How would the project’s goals be achieved within the estimated time with quality?
1.2.1 Project Life Cycle

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Almost all projects have a concrete starting and a closing date but also one or
multiple important dates between these can be identified as key events or ‘milestones’.

There are projects that do come into being gradually, and still others fade out
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slowly, so that their precise beginning and end dates can be difficult to recognize.
The period between the commencement and closure of a project is usually referred
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to as the project life cycle.
There are three critical human parameters in the project life cycle:
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Client / Customer
This is the individual or company that wants the project and utilize the end product
for itself - its own business or sell / lease it in turn to a third party.
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Contractor
This is the company in charge for to the customer for executing the project work.
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The Project Manager
The project manager is employed by the contractor (or occasionally by the
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customer) to plan and manage all the project activities so that the project is finished on
time, within budget and within its specification.
These are not hard and fast rules and they are not applicable universally to each project.
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It could happen that both the customer and the contractor may be in the same
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organization. Here the organisation’s officials (who represent the customer in this
case) instruct a departmental manager (the contractor) to carry out a project for the
company’s own use.
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Life cycle of small projects

Let us take up small projects and their life cycle. These are projects:
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●● With shorter duration, relatively speaking

●● That do not high budgets or capital expenditure
●● Fairly straightforward to manage
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When project life cycle is referred to, it is the period that begins with the allocation
and the beginning of work on the project (this could include the signing of a customer
contractor contract) up to the delivery of the required product to the customer.
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The figure above shows that the activities which take place during this period form
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a true cycle, because they begin and end with the customer.
Going circularly around the cycle shows multiple stages, each a circle. The borders
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within these tend to overlap in actuality. For instance, before a design is finished and
handed over, some amount of project purchasing and fulfilment work can start.
This view of a project life cycle is, is a simplified version – it does not take into
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account the tasks before the start of actual work. Nothing is also said about what
happens *after* the project is delivered to the customer.
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Comprehensive View
The simple life cycle shown in the figure above holds good for small, relatively simple
projects but for most capital projects many more phases can usually be identified.
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Projects differ so greatly that there is no such thing as a typical life history pattern.
The following project phase figure broadly applicable to capital projects that involve
many stakeholders and public interests.
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Figure - Depicting Project Phases

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Every project has certain stages of development known as life-cycle phases.

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These include:
●● Research and development
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●● Market introduction
●● Growth
●● Maturity
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●● Deterioration
●● Death
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Today, there is not much consensus among the industry or organisations, within
the same industry, about the life-cycle phases of a project. This is due to the varied and
multifaceted nature of projects.
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The theoretical definitions of the life-cycle phases of a system can be applied to
a project.
These phases include:
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●● Conceptual
●● Planning
●● Testing
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●● Implementation
●● Closure
Conceptual Phase
●● Initial evaluation of idea

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●● Preliminary analysis of risk

●● Resulting impact of risk on the time, cost, and performance requirements
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●● Potential impact on company resources

●● Includes “first cut” at the feasibility of effort
Planning Phase
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●● Refinement of the elements in the conceptual phase

●● Concrete resource identification
●● Establish parameters of time, cost, and performance parameters
●● Preparation of required documentation for system support
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Note: For a project based on competitive bidding: š Conceptual phase would have
bidding decision š Planning phase has the development of the total bid package (i.e.,
time, schedule, cost, and performance).
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Testing Phase
●● Testing and final standardization effort so that operations can begin

●● Most documentation to be completed
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Implementation Phase
●● Integrates the project’s deliverables into existing organization

●● If the project was for a marketable product, then this phase will have the
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product life-cycle phases of market introduction, growth, maturity, and a
portion of deterioration.
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Closure
●● Closure of project
●● Reallocation of resources
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●● Evaluates the efforts of total system
●● Serves as input to the conceptual phases for new projects and systems
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●● Also impacts other on-going projects with regard to identifying priorities.
1.3 Project Need Identification

Determining project requirements, also known as project requirements analysis or
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requirements research, is a critical step in the project planning phase. Needless to say,
this is a critical phase, since it lays the groundwork for a successful project.
Are you considering employing a consultant or any other kind of third-party
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contractor to assist you in building an application or redesigning your website? Do you
want to express your requirements to members of the project team in order to start an
internal project?
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Learn how to gather and articulate project requirements and how to utilise our free
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project requirements assessment form to ensure that project work gets off to the correct start!
Why is it necessary to ascertain the project’s requirements?
Why should you take the time to consider the requirements of your project?
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Whether an external third-party is entrusted with the project or it is initiated inside your
business, thoroughly defining project requirements may serve as an early review of:
●● The volume of work,

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●● The human, material, and technological resources necessary for the project’s completion,
●● The duration of time required to accomplish the job,
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●● The budget for the project.

Additionally, it is a necessary component of project management. By developing
exhaustive requirements, project managers and other stakeholders can:
●● From the start, understand the project’s aims and objectives.

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●● Define the project’s scope by gathering and documenting customer expectations

and end-user requirements in an easy-to-read document that can be shared with
all key parties.
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●● After assigning roles and tasks, establish a good project governance framework.
●● Analyze the project’s viability from a technical or financial standpoint, taking into
account its extent in relation to the company’s resources.
While the project sponsor is typically responsible for identifying the project’s
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requirements, the project team or contractor may be required to do the needs analysis
independently. This often occurs when the former is short on time, project management
capabilities, or technical competence.
Techniques such as hosting a workshop, conducting an interview, or mailing a

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questionnaire may be used to ascertain needs.
Project Sponsor vs Project Manager:
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When referring to an external project, the sponsor is referring to the customer or
their representative, such as the Product Owner. They are accountable for making
choices and providing direction, including defining the scope and goal of the project.
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The sponsor of the project may be seen as the project’s end user. As such, the
requirements they provide are utilitarian in nature rather than technical in nature.
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The project manager, who is responsible for the project’s execution, defines the
technical requirements. If required, a third party may assist with the following:
●● Assist the customer in expressing their requirements in a manner that the project
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manager and team can comprehend.
●● Assist the project manager in comprehending the client’s objectives and identifying
technical restrictions and dangers.
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Prior to beginning, establish context and a global vision:
Understanding who is driving the project, their strategy, their rivals, and how the
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project came to be is critical to project success. Thus, establishing project requirements
should be a collaborative endeavour that allows the customer and project team to
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connect around shared goals.
By ensuring that everyone is on the same page, operational teams can meet the
project sponsor’s objectives and guarantee the project serves the client’s long-term goals.
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How to write project specifications:
Bear in mind that the project is still in its infancy at this point. The trick is to be
efficient and minimise miscommunication. The requirements analysis should be
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concise, straightforward, and to the point in order to sketch the project’s blueprint
without becoming bogged down in the specifics.
Among the project’s requirements should include the following:

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●● The objective, the reason for the project’s existence,

●● Its context and surroundings,
●● Its aims, that is, what it wishes to accomplish from a commercial perspective,
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●● The project’s parameters (what services will be affected, the key and support
elements of the project),
●● Who will be the end users and what will their requirements be?
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●● A list of interested parties (use stakeholder mapping to help your analysis),

●● A SWOT analysis will be conducted to ascertain the opportunities and dangers
connected with the need.
●● The anticipated advantages,
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●● Key Performance Indicators (KPIs), measurements that indicate whether or not an

aim was reached,

●● The possible consequences for the business.

Notes
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To assist you in making the most of this critical phase and ensuring that you do not
overlook any critical details, feel free to utilise our project requirements assessment template.
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1. Project Selection
Project selection is the process through which you, as a project manager, will
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evaluate which of the company’s requirements is the most critical and hence should be
pursued. Prior to picking a project, you must balance the many elements of the projects
against one another. This may involve the following:
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●● Each project’s advantages.
●● The ramifications of pursuing one enterprise over another.
●● The benefits and drawbacks of various initiatives.
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●● The many influencing factors on a project might be qualitative, quantitative,
tangible, or intangible. Allow me to explain:
●● Quantitative advantages — these are monetary gains that can be quantified.
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●● Intangible advantages - may include a boost to the company’s reputation.
Although you cannot see or feel this advantage, you are aware that it exists.
Fortunately, there are particular measures you can take to aid you in picking the
appropriate project: r
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●● The first stage in the project selection process is to establish the criteria for
evaluating each project. For instance, how much expenditure is necessary to
start each project?
●● Second, we shall outline the project’s assumptions. For instance, the business
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may expect that it will get a financing to begin the project.

●● In phase three, we will gather all relevant information about the various
initiatives in order to make educated judgments. For instance, we may collect
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data on the financial expectations of various projects, their anticipated income

streams, implementation expenses, and running costs per project.
●● Step four is when the project will be evaluated using the information gathered
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in phases one through three.

We recommend that you enlist the assistance of a group of individuals throughout
the choosing process. Different members of the organisation have different ideas and
would express their perspectives accordingly. It may help you put things into perspective.
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After you’ve gathered all of the input from your control panel, you’ll be able to
choose the most suited project to pursue. Following that, you’ll need to create a request
for proposal.
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2. Request for Proposal

A request for proposal (RFP) is a document that details precisely what a customer
need to accomplish their objectives. This document is made accessible to potential
contractors/suppliers who may be able to help with the project’s completion. The
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suppliers are then given the chance to present to the firm a case for why they should be
awarded the current project and at what cost.

All RFPs do not have to be formal; they may be as casual as desired. Informal
Notes
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RFPs may be written or oral in nature.
3. Soliciting Proposals
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After the RFP has been produced successfully, it will be sent to suppliers. This may
be accomplished by defining a restricted group of suppliers to whom you want to invite
or by allowing anybody to make a bid.
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Given the competitive nature of this circumstance, it might be prudent to withhold
some information that you are unwilling to share with all providers. The purpose of the
RFP procedure is to find the best candidate for the job at the most affordable price.
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4. Important Success Factors
What variables would be deemed crucial to the success of the Project Life Cycle’s
need identification phase?
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●● Before you draught an RFP, you must be 100 percent certain of the objectives
of your project.
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●● When deciding which project to pursue, ensure that you choose the one that
will bring the most advantage to the organisation.
●● By establishing an assessment committee and adhering to rigorous review
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standards, you will have the greatest chance of determining which project to pursue.
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●● Disclose no information in your RFP to specific suppliers that you are not
prepared to provide to other customers.
1.3.1 Project Goals and Functions

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Before a project is begun and the project team does any work, time should be spent
to ensure that it a shared understanding has been attained of where the team is to go.
The terms used to define that destination are:

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●● Mission
●● Vision
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●● Goals
●● Objectives
Usually, it is the beginning phase of the project when it falters, because everyone
assumes that “everyone knows what the goal and the mission is!”
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Defining the Problem

At the outset, it is of paramount importance to define the problem for which the
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project is needed.
How a problem is described defines how it will be solved. Hence it is vital that a
clear description of the problem is stated.
Many times a problem is actually described as a ‘’solution’’.

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Someone might lament, “I have a problem. My car has broken down, and I have no way
to get to work. How am I going to get my car repaired, because I have no money to do it?”
The problem has fundamentally been described as “How do I repair my car?”

Notes
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However that is NOT the real issue! The real issue is basically that the person has
no transportation to get to work.
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What about some alternatives for this person – either to take public transport, or go
with a colleague, or take another form of personal transport (bike, scooter, etc.) could
be considered till the necessary money is obtained for the repair of the car?
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Hence it is crucial to make the distinction between the fundamental problem and
those at other levels.
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A manager once took his team member to task saying that the company had spent
a huge amount on a new product, which no one was selling. The team member was
threatened with replacement if he did not sell the product!
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Obviously, the issue here is that the manager’s team consists of people who
cannot sell. This means, all the team members are incompetent salesmen – something
which is a bit difficult to digest. Everyone in a team cannot be bad or uninterested.
Probably it’s the product itself or market dynamics!
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Even if this manager has a new team, his issue will continue – because the actual
problem has not been resolved.
Problem as a Goal
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Confusion of Terms
Suppose someone says that he is relocating to a new role in a new company in a

new town. The first thing he needs to do is to zero in on a place to stay.
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So he says, “I need to fix my accommodation.”
His mission? “To get a place to stay,” he answers.

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His vision? “Er…to get a place to stay,” is his reply, a little puzzled.
No wonder he is puzzled. All three declarations above look the same!
He has to discriminate between them if he is to get attain his goal.

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A problem is something that needs a resolution.
If this person were to be asked where he wants to be when his issue of place to
stay is solved, he would respond, “I would have somewhere to stay in the new location.”
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“And where are you now?” you ask.
“Right now, I don’t have accommodation,” is his response.

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Stated directly “I have no place to live,” is what needs resolution.
Obviously just anywhere in terms of a place to stay will not answer the problem. He
would not perhaps want to live under a flyover or on the footpath!
So we get to some specifics by asking. He replies with the house needed would be
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big or small (number of bedrooms, bathrooms, modular kitchen and so on), along with
locational preferences.

This what he is envisioning for his new house and hence the vision.
Notes
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Hence to get a house that conforms to the vision of what it should be, is the mission.
Therefore, we could say, ‘’the mission of a project is always to achieve the vision.’’
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The defined problem attains resolution.
Thus we have:
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●● Problem description
●● Vision
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●● Mission
Unfortunately, in real life these do not get specified in this sequence. Many times we
will be told our mission, with the description of the problem being mentioned. Hence the
task at the outset would be to craft these in a procedure that will be understood by all.
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Sometimes the project promoter would have laid out the mission upon his
interpretation of the problem. This may or may not be correct. This will have to be
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discussed thoroughly, otherwise, precious hours and money would be wasted.
The Real Mission of Every Project
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The vision is something what the mission needs to accomplish. It should not be
forgotten that the client or the customer is the one that holds the vision. Ultimately it’s
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the customer’s needs that need to be taken care of and addressed. This is the chief
goal. It may happen that the client themselves are not very sure of what they want. In
such situations, we need to deduce as best as we can.
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This can be done best keeping the client ‘’in the know’’ from the start to the finish.
This precaution will keep the client informed and there will be healthy transparency
between you and the client.
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Project mission queries:
1. What is to be done?
2. Who are we doing this for?
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Developing Project Objectives

As soon as the project’s mission has been defined, the next step is to define the
objectives. The objectives will be more precise than the mission and will define results
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that must be achieved in order for the overall mission to be accomplished.
Also, an objective defines the desired end result.

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Let us consider a goal for example.
I want to complete this section by 5:00 PM today.
I will probably be going through the following steps:
●● Entering text into my laptop

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●● Going through other material on the subject

●● Reaching out to a co-worker to understand something

●● If I want, I will print out the text I wrote

Notes
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●● I will go through and made necessary edits
●● Retype the edited text into my laptop
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Necessities for a statement of objectives:
An objective must be SMART:
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●● Specific
●● Measurable
●● Attainable
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●● Realistic
●● Time-bound
Examples of objectives:
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Our objective is to create a two-minute ad to request donations to ABC to be
telecast on specific TV channels by April 15, 2022.
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Our objective is to raise Rs. 450,000 as capital from TV audience by October 31, 2021.
The Nature of Objectives
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Note that these examples of objectives do not say how they will be achieved.
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An objective is a statement that tells me what result are to be achieved. The
“how” is problem solving, and I prefer to keep that open , so that solutions can be
brainstormed later. If the approach is written into the objective statement, it may lock a
team into a method that is not really best for the project.
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Assessing Project Risks

Once you have established your objectives, you can develop plans for how to
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achieve them.
Unfortunately, the best plans sometimes don’t work.
An important safeguard in managing projects is to think about the risks ahead.

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This can be done for critical objectives and for other parts of the plan.
The simplest way to conduct a risk analysis is to think about, “What could go
wrong?” or “What could keep us from achieving our objective?”
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It is best to list the risks first, and then think about contingencies for dealing with them.
A good way to look at risk is to divide a flip chart page in half, have the group
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brainstorm the risks. Risks can be written down on the left side of the page, and then
we can go back and list the exigencies—things you can do to manage the risks if they
do materialize on the other side.
One benefit of doing a risk analysis in this manner is that it may help you avert
some risks.
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When you cannot avoid a risk, you will at least have a backup plan. Unexpected
risks can throw a project into a tailspin.

It is helpful to assess risks of failure of the following:

Notes
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●● Project quality
●● The schedule
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●● The budget
●● Customer satisfaction
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It is to be noted and understood that: You are not trying to identify every possible
risk, just some of the more likely ones. This point should be made to team members
who are highly analytical or who perhaps have a tendency to be negative in general.
Also, risk analysis always has a positive thrust—that is, you are asking, “If it happens,
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what can we do about it?” You don’t want people to say, “Isn’t it bad!”
A problem is a gap between where you are and where you want to be, with
obstacles making it hard to reach the endpoint or goal. A goal by itself is not a problem.
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Obstacles have to exist for there to be a problem.
A Vision is what the final result will “look like.” It defines “done.”
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The mission should always be to achieve the vision. It answers the two questions
“What are we going to do?” and “For whom are we going to do it?”
1.3.2 Project Identifiers r

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The objective of project identification is to provide a preliminary proposal for the
most effective combination of interventions and course of action, within specified time
and financial constraints, to fulfil a given development goal in a specific location or
environment. Investment ideas may originate from a variety of different sources and
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circumstances. They may arise as a result of a country’s sector plan, programme,

or strategy, as a follow-up to an existing initiative, or as a result of sector or local
development dialogues involving many stakeholders. Identification entails the following:
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●● a review of alternative approaches or options for addressing a set of

development problems and opportunities;
●● the definition of project objectives and scope of work in sufficient detail to
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justify the commitment of resources for detailed formulation and preparatory

studies; and
●● the identification of the major issues that must be addressed and the questions
that must be addressed before implementing a project based on the concept.
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Sufficient information on project possibilities must be obtained to allow the

government and finance agencies to prioritise a project and secure agreement among
stakeholders on preparatory work arrangements, including the establishment of steering
committees or national preparation teams. The findings from the identification process
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should be described in a report, project brief, or concept paper, the format of which will
depend on the needs of the government and/or finance agencies.
Because of the changing financial situation in the whole company, it is important to

set up a stable process for approving projects for start-up. This will...
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●● Make sure each candidate project has a good business reason.

●● Provide the information needed to make more informed decisions about how
Notes
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much money to spend on projects.
●● Rank the projects in a more objective way.
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●● To make it easier to match up skilled people with the right projects.
●● Avoid overusing the few skilled resources you have.
●● Predict how many people and what skills they will have in the future.
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●● Allow staff training to be based on a solid fact.
●● Use these tips to make project start-up faster and less time-consuming:
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People may change their priorities at any time, so this process needs to be well-
defined and easy to follow. It is also important that business leaders and the rest of the
company understand and support its value.
Use the following criteria to help you choose what to do:
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This process is for projects that haven’t been approved yet
●● There will be a lot of work to do, and it will take a long time.
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●● Must work well with other projects that are going on at the same time.
●● Will use new or new technology.
●● Will need a new way to work.
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●● Are meant for a new customer or a new market.
●● Will affect a lot of different departments or organisations.
●● Are very important to the success of the business.
●● Are known to be dangerous.
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This process is not for requests that can be handled by the IT Help Desk or small
projects (Type 2) that are sent to IT Managers for immediate scheduling and execution.
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Process Flow:
1. Certify business case
●● Document the Business Case: Look at all the information that has been given
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to you by the requesting organisation or that has been gathered by a technical

analyst. If more information is needed, send an Information Request to the
person who wants it. It’s time to turn this information into a Business Case. To
do this, give the Candidate Project a new code.
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●● Review Business Case: a group of people who work for the company will
look over the business case and decide whether or not to accept or reject
a candidate project. When a Business Case is approved, the Candidate
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Project is put in a place where it can be ranked and chosen. If you need more
information on a Business Case, mark it as “pending” and send an Information
Request to the person who wants it. If a Business Case is rejected, send the
information to the person who asked for it with a note explaining why it was
rejected. Keep this information in a library.
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●● Update Business Case: When new information comes in about a Candidate

Project, get the pending Business Case from the repository and change the
data. Process should now look at this Business Case.
2. Rank the projects that are in the running: When asked, all Candidate Projects that
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are in the repository should be ranked in order of importance in a way that is fair. The
criteria for a good ranking should be...
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●● It is important to keep track of the due dates
●● The effect on the whole business
●● Impact on how technology is built
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●● Impact on other apps
●● Project size, cost, and time
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●● Risks with a project
It will be good to rank projects against each of these criteria on its own, then
make a single ranking that weighs each of these criteria against the other criteria. This
ranking process is usually used to help make budget decisions every three months, but
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it can be used at any time.
3. Evaluate the resources: A Skills Inventory should be kept up to date for all corporate
resources (Business Unit and Information Technology Department) that are available
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for projects. In addition, a list of available contract resources should also be kept.
The goal of this Skills Inventory is to find out what these resources can and can’t do.
4. The fourth step is to figure out what resources you need. This process will look at
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the Skills Inventory and the Candidate Project repository to figure out what kinds of
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resources will be needed in the future. This information will help you...
●● Identification of the most important training needs
●● Employment opportunities are based on this.
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●● A list of things to look for when hiring a personal trainer

This process should be looked at by Resource Managers in the company on a
regular basis. It can also be used to help staff with their careers.
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5. Accept the project

●● Accept a project: Based on the information from the ranking process, the Core
Process Owners of the business will decide which project to start. This project
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is no longer a Candidate Project and should not be added to the list.

●● Allocate resources: Even though a project has been chosen, it doesn’t
become a “active” project until resources are approved and put into use. It
is important to remember that when resources are used from the Skills
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Inventory, this deployment has a proportional effect on the availability of the

resources. If the organisation wants to “look” more productive, it needs to be
very careful not to spend too much of its limited resources in order to do so.
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1.4 Defining the Project Scope

The scope of a project is the phase of project planning in which a list of specified
project objectives, deliverables, activities, costs, and deadlines is determined and
documented. A scope statement or terms of reference is a document that details the
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scope of a project. It defines the project’s limits, assigns tasks to each team member,
and develops methods for verifying and approving completed work.

This documentation assists the project team in remaining focused and on task
Notes
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throughout the duration of the project. Additionally, the scope statement gives guidance
for the team’s decision-making about change requests throughout the course of the
project. Notably, a scope statement should not be mistaken with a project’s charter; a
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project’s charter just establishes the existence of the project.
Large-scale projects often undergo changes as they advance. If a project is
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properly “scoped” from the start, authorising and managing these adjustments
becomes easy. To minimise scope creep, stakeholders should be as detailed as
possible when describing a project’s scope. Scope creep occurs when one or more
components of a project need more labour, time, or effort as a result of poor planning or
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misunderstanding.
Effective scope management is contingent upon effective communication. This

ensures that everyone in the team is aware of the scope of the project and agrees on
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the precise method by which the project’s objectives will be fulfilled. As part of scope
management, the team leader should solicit permissions and signoffs from stakeholders
throughout the project, ensuring that the planned completed project fulfils the demands
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of all stakeholders.
The significance of establishing the scope of a project
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The first stage in project planning is to create a project scope statement that
contains information about the project’s deliverables. The following are some of the
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advantages that a project scope statement brings to any business embarking on a new
initiative:
●● It defines the scope of the project so that all stakeholders understand what is
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involved;
●● it serves as a road map for managers to assign tasks, schedule work, and
budget appropriately;
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●● it assists team members in focusing on common goals; and

●● it prevents projects, particularly complex ones, from expanding beyond the
established vision.
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Defining the scope of a project ensures that it is focused and completed according
to plan. The scope establishes a firm basis for managing the project as it progresses
and helps ensuring that resources are not diverted or squandered on components that
are not included in the scope.
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1.4.1 Project Scope
How to define the project’s scope

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The project’s scope must be defined with input from the project’s stakeholders.
They collaborate with project managers to determine essential budget, target, quality,
and deadline parameters.
To establish scope, project managers must gather requirements for what the
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project’s stakeholders need. This encompasses the following components:
●● the project’s aim and deliverables;

●● the deadline by which the project must be finished; and

Notes
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●● the budget available to the stakeholders.
The objective is to collect and document precise and accurate information during
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this process in order to ensure that the project scope accurately represents all needs.
This increases the likelihood that project leaders will deliver goods on time and on
budget that fulfil stakeholder expectations.
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Creating a project scope statement
A project scope statement is a written document that contains all of the necessary
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information for the project’s deliverables to be produced. It is more specific than
a statement of work and assists the project team in remaining focused and on task.
Additionally, the scope statement gives recommendations for the project team leader or
facilitator for making choices concerning modification requests throughout the course of
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the project.
The project scope declaration outlines, either tacitly or expressly, what is not
included in its objectives. Any objectives or tasks not specifically included in the scope
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declaration should be regarded out of scope. Additionally, project managers may
specify particular tasks that will not be included in the project.
As such, this sentence denotes the project’s limits. The project leader must take
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those criteria and plan out what should occur and in what sequence. As a result, a work
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breakdown structure is created (WBS). The work breakdown structure (WBS) divides
planned work into smaller, more specified chunks and needed activities.
Effective project management requires a well-articulated scope declaration. Every

project should have a defined scope, regardless of the project management approach
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utilised. The project’s stakeholders should examine the scope statement, make
appropriate revisions, and approve it.
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After completing and approving the project scope statement, project managers
may assign tasks and guide their teams on what they need to accomplish to fulfil the
project’s target dates, budget, and objectives.
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Planning and management of the scope

Updates and modifications are a necessary component of the project management
process. Managers must carefully monitor and record changes to the project scope as
work advances. This needs a high level of project management ability.
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Additionally, project managers and stakeholders must adhere to the project scope
statement throughout the change management process. They must understand which
parts are included in the project’s scope and which are not.
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Change management methods assist project managers in determining how

to assess requests for project updates and modifications. Distinguishing between
necessary and out-of-scope requests assists businesses to prevent scope creep.
Scope creep occurs when more work is added to a project while it is in progress.
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It may add additional expenditures and effort, divert attention away from the goals, and
jeopardise the quality of the planned outputs.

Example of a project’s scope

Notes
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Scope statements make an effort to offer all necessary information to relevant
stakeholders. The following are some components of a scope declaration that should
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be included:
●● Introduction. This section describes the project’s what and why. For instance,
“This content generation and marketing initiative is being performed by
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RealContent Inc. in order to publish articles on its blog and social media sites
in order to improve brand recognition and website traffic.”
●● The scope of the project. This section specifies the project’s specifications. It
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establishes the overall objectives for the project’s timeline and activities, as
well as who will be engaged. In the content production example, it may be
stated as follows: “The project will begin in March 2021 and will comprise
research, writing, content strategy, and search engine optimization, as well as
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publication on the company’s website and social media accounts. John Smith,
RealContent’s content director, will be in charge of these responsibilities. The
deliverables will be created by in-house and contract authors.”
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●● Deliverables. The deliverables section details what will be delivered at the
conclusion of the project and establishes a deadline for submission. In our
case, “The project’s deliverables will comprise a well-researched, 2,000-word
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piece due by Feb. 28, 2021. On the same deadline, ten related and linkable
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pieces will be produced, building on themes made in the main article.”
●● Criteria for acceptance. This section contains information on the project’s
goals and the measures that will be used to determine its success. For
instance, “Within six months after publishing, the primary piece will get 3,000
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total pageviews and produce two new leads.”

●● Exclusions. This section details what will be excluded from the project.
For instance, “The project will not need the development of multimedia to
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accompany the content.”

●● Constraints. This section details the project’s hard constraints and items that
cannot be modified. Constraints on a project may be related to the project’s
timeline, money, or technical specifications. For instance, “The project has a
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clear deadline of February 28, 2021, and a budget of $5,000 dollars.”
Project scope vs. product scope

The scope of a project should not be confused with the scope of a product. The
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product scope document describes the capabilities, characteristics, features, and

functions of the project’s deliverables.
The project’s lead should develop a distinct product scope statement. They should
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utilise both the project scope and product scope statements to reinforce one another
and create a shared understanding of what each project is attempting to accomplish.
1.4.2 Project Requirements

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After all the deliverables are identified, the project manager needs to document all
the requirements of the project.

A requirement is an objective that must be met.

Notes
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●● The project’s requirements, defined in the scope plan, describe what a project
is supposed to accomplish and how the project is supposed to be created
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and implemented.
●● Requirements answer the following questions regarding the as-is and to-be
states of the business: who, what, where, when, how much, and how does a
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business process work?
●● Requirements specify what the final project deliverable should look like and
what it should do.
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●● Requirements must be measurable, testable, related to identified business needs
or opportunities, and defined to a level of detail sufficient for system design.
They can be divided into six basic categories: functional, non-functional, technical,
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business, user, and regulatory requirements.
Functional Requirements
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●● Detail features of the final deliverable in lay man’s language
●● Need to be simple and easily comprehensible to the client
●● Client need to involve directly their creation and structure
●●
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Functional requirements describe what we want the final deliverable to do.
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Non-Functional Requirements
These requirements have the following roles:
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●● Consist of limitations and constraints to be placed on the deliverable and how to

build it.
●● Detail out the parameters to review and examine the final product or service that
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the project delivers.

●● To limit the number of solutions for a set of requirements.
Considering an example, the functional requirement is for a vehicle (truck) to
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transfer by road a certain amount of goods from a stocking warehouse to a retail store.
If constraints are not in place or are unspecified, the solutions could be given might
result in anything from a large truck to a small one.
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Non-functional requirements can be split into two types:
1. Performance requirements
To restrict the types of solutions, you might include these performance constraints:
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●● The purchased trucks should be the local country in order to capitalize on

government incentives.
●● The stocking the truck loading area must be fully covered.
●● The load area must have a minimum height of 15 feet.
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One important point with this example is that it restricts the number of solution
options that are offered. In addition to the performance constraints, you may include

some development constraints.

Notes
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2. Development Requirements
There are three general types of non-functional development constraints:
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●● Resource: funds’ availability for deliverable development
●● Time of delivery of deliverable
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●● Quality: Any standards deployed to create the deliverable, development
methods, and so on.
Technical Requirements
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These requirements occur from the functional requirements to answer the
questions:
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●● What method will be used to solve the problem
●● Mode of solving the problem – whether procedurally or technologically
They specify how the system needs to be designed and implemented to provide
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required functionality and fulfil needed operational features.
Consider an example of a software project:
●●
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Functional requirements may need a database system to be created to allow
access to financial information remotely
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●● Equivalent technical requirements will lay out the following:
Needed data
Language of database management system
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System hardware depending on existing infrastructure

Required telecommunication protocols
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Business Requirements
●● Requirements of sponsoring company

●● These will be from the point of view of the management
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●● Contain statements of the business justification for the project

●● By large laid out in high level outcomes, satisfying the business needs
●● Do not go into too much specifics system performance
●● Requirements emerge from the vision for the product
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User Requirements
●● Put forth what the users need to do with the product or system
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●● Stress is laid on user experience with the system under all conditions
●● User requirements will be the input for the next phases
System test cases design
User-interface design
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Regulatory requirements
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These can be either external or internal. They are not usually to be modified or
something that can be negotiated. These consist of government enforced:
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●● Restrictions
●● Licenses
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●● Laws applicable to a business
Software Requirements Fundamentals
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A software requirement is a characteristic that must be shown by software
developed or modified to address a particular question. This can be of the following
types:
●● To enhance the business processes of the company that has ordered the software
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●● To automate part of an activity of a user
●● To control a device
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●● To correct gaps in current software
The functioning of users, business processes, and devices is typically complex.
●● Software requirements are a complex amalgamation of requirements from

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various people at multiple levels of an organization and from the environment
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in which the software will operate.
●● All software requirements need to be verifiable.
Software Requirements – Other Features
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●● Monitor project progress status

●● Allot a priority rating to enable prioritization and trade-offs in the situation of
finite resources
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●● Especially identified so for monitoring over the complete software life cycle.
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Case Study
Notes
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ABC Accountants Incorporation
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ABC Accountants Incorporation was positioned 20th in the country. To gain a
competitive advantage, ABC created an IT (Information Technology, also known as
ISD – Information Services Division) department primarily for research. In the next five
years, the department people had grown to fifteen.
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In the mid-1970s, the department bought invested in minicomputers. ABC thus
expanded its services to address the needs of external customers. In the next couple of
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years, the IT department had 50+ people.
The head of this department (HOD) was very concerned with the way the
operations were being conducted. There was no unique accountable person in charge
of a project, and external clients did not know whom to reach out to in order for their
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queries to be addressed on the status of the project.
The HOD realized that majority of his time was being consumed on daily tasks like
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conflict resolution whereas ideally he should have been doing strategic planning.
The biggest problems facing the HOD were:
●● Two non-stop in-house projects (referred to hereafter as Project X and Project Y)

●●
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These two projects needed data compilation and reporting at the end of every
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month.
The HOD wanted a full-time project manager for each of these projects.
Later the leadership team announced that the IT HOD would be transferred to
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another assignment and that the announcement of his replacement would not be made
until a couple of months later.
Two individuals were brought on board externally to take charge of projects X and Y.
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Exhibit I shows the organizational structure of the IT / ISD.

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In the following weeks rumors spread throughout the organization with regard
Notes
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to the appointment of the new director. Also the associate director’s retirement was
upcoming in another month or so. Therefore, two positions were vacant.
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Eventually, a private discussion took place between the HOD and the systems manager.
HOD / ISD director: “Leadership has agreed to my proposal to elevate you to the
department’s director. You need to reorganize the existing structure so that our team
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members will have lesser conflicts. I will forward you a private memo with my comments
on the issues in our department.
‘’Please keep in mind that your promotion is confidential.” (See Exhibit II for the memo.)
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From: ISD Director
To: Systems Manager
Data: January 3, 1979
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Congratulations on your promotion to division director. I sincerely hope that
your tenure will be productive both personally and for corporate. I have prepared a
short list of the major obstacles that you will have to consider when you take over
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the controls.
1. Both Project X and Project Y managers are highly competent individuals.
In the last four or five days, however, they have appeared to create more
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conflicts for us than we had previously. This could be my fault for not
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delegating them sufficient authority, or could be a result of the fact that
several of our people consider these two individuals as prime condidates
for my position. In addition, the operations manager does not like other
managers coming into his “empire” and giving direction.
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2. I’m not sure that we even need an associate director. That decision will be
up to you.
3. Corporate has been very displeased with our inability to work with outside
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customers. You must consider this problem with any organizational

structure you choose.
4. The corporate strategic plan for our division contains an increased emphasis
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on special, internal MIS projects. Corporate wants to limit our external

activities for a while until we get our internal affairs in order.
5. I made the mistake of changing our organizational structure on a day-to-day
basis. Perhaps it would have been better to design a structure that could
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satisfy advanced needs, especially one that we can grow into.
Exhibit II - Confidential Memo

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After going through the memo, the systems manager decided that a type of matrix
would be suitable. To facilitate him to structure the team, an outside consultant was
brought in to recognize potential issues with transitioning to a matrix. The following
were put forth by the consultant:
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1. Having your team members accepting the matrix could be an issue. Each member
will view the change in a different way. Most people would first think in terms of the
power and status – is it a gain or a loss?

2. One of the major problem areas will be trying to convince corporate management
Notes
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that their change will be beneficial. You’ll have to convince them that this change can
be accomplished without having to increase division manpower.
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3. The operations manager controls more than 50 percent of the people resources. You
might want to break up his empire. This will have to be done very carefully.
4. The supervisors who now report to the associate director will have to be reassigned
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lower in the organization if the associate director’s position is abolished.
5. You might wish to set up a separate department or a separate project for
customer relations
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The systems manager evaluated the consultant’s comments and then prepared a
list of questions to ask the consultant at their next meeting.
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Questions
1. What should the new organizational structure look like? Where should I put each
person, specifically the managers?
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2. When should I announce the new organizational change? Should it be at the same
time as my appointment or at a later date?
3. Should I invite any of my people to provide input to the organizational restructuring?
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Can this be used as a technique to ease power plays?
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4. Should I provide inside or outside seminars to train my people for the new
organizational structure? How soon should they be held?
Suggested Key Points for Questions (please elaborate after research):

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1. Consider the various types of project team structure. The matrix organization has
been referred to quite a bit and hence it shows it is a favoured solution.
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2. The organisational change needs to be made before the ISD director assumes his
new responsibilities. This is so that he would be available to ensure a smooth transition
and also to be able to give some reassurance to the existing team not to worry too
much about loss of status or power with the transition to a matrix organization.
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3. It is always a better idea to invite known people to transitions. It will help to ease the
situation and provide a bit more of a security and sense of comfort.
4. Either in-house or external trainers are fine. It is better that these are held as soon
as possible.
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Summary
●● A project is a transitory endeavour performed to create a one-of-a-kind product,
)A
service, or outcome. A project may be a series of tasks that are planned from
beginning to conclusion and are constrained by time, resources, and the
desired outcome.
●● Every endeavour involves some level of risk. Risk may manifest itself in a variety
(c
of ways, both external and internal to the project team. For instance, internal risk
may occur as a result of the estimating process. External risk, on the other hand,
may occur as a result of reliance on other contractors or suppliers.

●● A project is defined as a series of activities that must be accomplished in order to

Notes
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achieve a certain result. The Project Management Institute (PMI) defines a project
as “any transitory undertaking having a distinct beginning and finish.” It may be
controlled by a single person or hundreds of people, depending on its complexity.
in
●● Operations is the continuous execution of operations in accordance with an
organization’s processes in order to achieve the same outcome or provide a
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repeating service. Permanent operations are the norm.
●● Financial Simulations For the majority of managers, financial factors are the
favoured approach of project evaluation. These models are useful when there is a
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high degree of confidence in future cash flow forecasts. Payback and net present
value are two concepts and examples discussed in this section (NPV).
●● The phrase infrastructure refers to a business’s, region’s, or nation’s fundamental
physical systems. These systems are often capital demanding and expensive, yet
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they are critical for a country’s economic progress and success. In economic terms,
infrastructure often entails the creation of public goods or the maintenance of natural
monopolies. Transportation systems, communication networks, sewage, water, and
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electric systems are all examples of infrastructure. Infrastructure-related projects
may be financed publicly, privately, or via public-private partnerships.
●● Product improvement is the process of implementing substantial product
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modifications that result in the acquisition of new customers or the enhancement
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of current customers’ advantages. The two most common methods of product
enhancement are to introduce new features or to enhance current ones.
●● Human beings have been making things for many thousands of years. Originally
most products were made on an individual as-needed basis; if a tool was required,
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it was fashioned by hand and in turn used to make more tools. As time passed,
more complex techniques were developed to help people accomplish fabrication
and production tasks. Metalworking technology, weaving looms, water-driven
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grinding mills, and the development of steam and gasoline engines all contributed
to a greater ability to make various products, but things were still generally made
one at a time by craftspeople skilled in various techniques.
●● Project Management objectives are the successful creation and implementation of a
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project’s commencement, preparation, execution, regulation and ending as well as the

guidance of the project team’s operations. All of this is directed towards achieving the
project’s goals within the set scope, time, quality and budget. It is the discipline to plan,
organize, motivate, and control the resources to achieve the project goals.
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●● The objective of project identification is to provide a preliminary proposal for the

most effective combination of interventions and course of action, within specified
time and financial constraints, to fulfil a given development goal in a specific
)A
location or environment. Investment ideas may originate from a variety of different

sources and circumstances. They may arise as a result of a country’s sector plan,
programme, or strategy, as a follow-up to an existing initiative, or as a result of
sector or local development dialogues involving many stakeholders.
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●● The scope of a project is the phase of project planning in which a list of specified
project objectives, deliverables, activities, costs, and deadlines is determined and

documented. A scope statement or terms of reference is a document that details

Notes
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the scope of a project. It defines the project’s limits, assigns tasks to each team
member, and develops methods for verifying and approving completed work.
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Glossary
●● Project Plan: A project plan is one of the main formal documents created before
starting any project. The document regularly consists of approved cost, schedule,
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and project scope. It guides the implementation of a project from initiation to
project closure.
●● Project Manager: The individual responsible for handling every aspect of
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a project from the day it starts till it closes is called a project manager. The
responsibilities of a project manager characteristically entail powerful planning,
smart resource utilization, and managing the scope of the project.
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●● Stakeholder: Any individual that has a direct or indirect interest in a project is
recognized as a project stakeholder. They usually affect or are affected by the
project choices being taken over the course of the project lifecycle. A stakeholder
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can be anybody from the project team, executives, sponsors, customers, or the
end-users.
●● Portfolio Management: Project portfolio management includes collective management
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of a series of projects to achieve organizational goals. It permits the teams to visualize
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the big picture of all projects and maximize the return on investment.
●● Collaboration: The process of actively linking each team member in project
activities is called collaboration. The whole idea demands the development of
an interconnected network through which individuals exchange information and
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monitor the project performance.

●● Budget: Project budget is a formally approved document featuring a complete list
of financial resources, including project expenses, required to complete a project.
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●● Timeline: A project timeline plans the project events in order of their occurrence. It
captures accurately what needs to be done over the course of the project lifecycle
and how it will be done.
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●● Milestone: A milestone denotes a major event in a project lifecycle. It is used

as a reference point to measure the growth of a project. Usually represented as
diamonds, milestones significantly help with project scheduling and monitoring.
●● Work in Progress: At any point during a project, the number of task items a team
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is now working on is called work in progress. It shows the capacity of the team’s
workflow at any moment.
●● Sprint: A sprint is a fixed unit of time through which specific tasks has to be
)A
completed. Typically, the period of a sprint is determined by the Scrum Master

(team’s facilitator). During a sprint, daily stand-ups are conducted to monitor the
progress towards sprint areas.
●● Meeting Agenda: A meeting agenda is only a list of all the topics that are to
(c
be discussed during a meeting. It may take in detailed topic descriptions, their

sequence, and the expected outcomes of each topic.

Check Your Understanding

Notes
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1. A project is whatever which is
a) implicitly expressed
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b) not implicitly expressed
c) not a physical objective
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d) social acceptability
2. Functional type of structure is separated into department based on
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a) Functions
b) Processed
c) human relations
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d) planning
3. Capacity planning
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a) save time
b) increase cost
c) increases waste
d) increase production
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4. Which of the following is NOT a basis of Project Idea?
a) Attending Trade Fairs
b) Analysis of Economic & Social Trends
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c) Identifying unfulfilled psychological needs

d) Increase Production.
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5. The cost structure of planned project must consider _________________.

a) Cost of Material Inputs
b) Labour Costs
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c) Factory Overheads
d) All of the above
6. What is to be organized as a first step to avail finance for a new project?
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a) Detailed Report
b) Project Report
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c) Promoter’s bio-data
d) Summary
7. With respect to a project resource denote to:
a) Man power
(c
b) Machinery
c) Materials
d) All of the above

Notes
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8. The process each manager follows during the life of a project is identified as
a) Project Management
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b) Manager life cycle
c) Project Management Life Cycle
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d) All of the above
9. Which of the following is not measured as a risk in project management?
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a) Specification delays
b) Product competition
c) Testing
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d) Staff turnover
10. Resource requirement in project develops constant although the project is in its
______________ progress stage.
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a) 40 to 55%
b) 55 to 70%
c) 70 to 80% r
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d) 80 to 95%
11. Project performance involves of
a) Time
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b) Cost
c) Quality
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d) All of the above

12. The project life cycle contains of
a) Understanding the scope of the project
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b) Objectives of the project

c) Formulation and planning various activities
d) All of the above
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Exercise
1. Explain the concept of Project.
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2. What is Project Classification?

3. Explain the difference between Projects and Operations.
4. Explain the types of Projects.
5. What are Infrastructure Projects?
(c
6. Explain the procedure of Project Management in established firms.

7. Describe the Product Improvement Projects.

Notes
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8. Define Technology Induction.
9. What is Assimilation Projects?
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10. Describe strategic implications of Project Management Activities.
11. Explain the Project Life Cycle.
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12. Explain the Project Goals and its functions.
13. What are Project Identifiers?
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14. Define Project Scope
15. Define Project Requirements
Learning Activities
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1. What is the most important thing a project manager does?
2. Is there a set of standards for indoor air quality in the working environment?
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3. Do you think project managers are given enough authority to manage stakeholders
in the projects?
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Check Your Understanding- Answers
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1. a)
2. a)
3. d)
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4. d)
5. d)
6. b)
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7. d)
8. c)
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9. c)
10. d)
11. d)
12. d)
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Further Readings and Bibliography

1. K. Nagarajan: Project Management, New Age International Pvt Ltd, 2017
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Edition.
2. Vibrant Publishers and Kalpesh Ashar: Project Management Essentials You
Always Wanted To Know, 2022 Edition.
3. Pradeep Pai: Project Management, Pearson Education, 2019 Edition.
(c

Module - II: Planning the Work

Notes
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●● WBS: Work Breakdown Structure
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●● Cost and Time Estimating Methods
●● Top Down - Analogous Estimating
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●● Top Down - Group Consensus Estimates
●● Top Down - Monte Carlo
●● Top Down - Apportioned Method Estimating
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●● Bottom-Up Estimating
●● Quality of Estimates
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●● Why Is Organisation and Project Team Structure Important?
●● Functional Structure
●● Project Structure
●● Matrix Structure
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●● Virtual Team
●● Cost Breakdown Structure
●● RBS - Resource Breakdown Structure
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●● Project Activity Sequencing
Introduction
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When launching a project, it is critical to ensure that everyone engaged

understands what they are doing and how they should be doing it. You must guarantee
that each stage is completed properly, and you may not be able to go into each office
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and confirm that the employees you’ve allocated are effectively executing their given
tasks. That is when a well-crafted work plan comes into play. These will guarantee that
everything is carried out precisely and without continual monitoring.
To begin, let us define what a work plan is. These plans effectively outline the
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project’s objectives and the means by which the persons responsible for the project
will be able to accomplish them. While they are beneficial for personal work as well,
they are mostly utilised for individuals doing a professional assignment and are often
)A
used for projects that need a great deal of input from several people and a great deal of
stages to accomplish.
With a work plan, you may take a single overall objective and break it down into
the smaller stages necessary to accomplish that overarching goal’s achievement. This
normally works best if you break tasks down into the smallest possible parts and then
(c
allocate each step to a single individual who will be responsible for ensuring that it is
completed and available for the next step’s owner. Therefore, let us take a deeper look
at the process of developing a work plan.

Creating Your Initial Work Plan

Notes
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Step 1: Determine the End Goal/Outcome
The very first thing you should determine is what you aim to accomplish with your
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strategy. You must have a definite and quantifiable result in mind or you will never
know whether you have succeeded. Now, whether this is a grandiose, encompassing
objective or a more modest one is entirely up to you. While work plans are often
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reserved for huge projects, they may absolutely be utilised for smaller ones. The idea is
to have something that can be accomplished in a number of phases, which is SMART.
These are the aims that are attainable.
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A SMART objective is defined as one that is Specific, Measurable, Achievable,
Relevant, and Time-Bound. That requires you to understand what is being done and
why. Additionally, you must be able to quantify the outcomes and determine whether the
objective has been met. Additionally, you must be capable of achieving the objective. Is
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it possible to accomplish what you’re doing in the manner in which you’re attempting it?
It should be relevant, which implies that each step within the objective should contribute
to the desired outcome. Finally, it must be time-bound, which implies that it must have a
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defined completion date.
Step 2: Break it down
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Following that, you’ll need to break down the broad aim into smaller tasks that a
single person or a small team can readily accomplish. Each of these processes should
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be explicit and quantifiable so that each team member understands when they have
been completed. If the steps are too broad or too varied, it might be difficult to discern
when a step is complete and when the next team or person can begin working on their
assigned tasks. Additionally, it might be challenging for the one working on that phase
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to comprehend what they are attempting to accomplish.
This is made simple by using a Gantt chart and your SMART goal setting.
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Step 3: Delegate Roles
Consider each of the several processes necessary to bring your ultimate aim to
fulfilment. Now examine each of the minor stages that you’ve identified as necessary.
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Finally, consider the team you have available to allocate these tasks. What are their
advantages? Where could they be able to assist in moving the project forward? Which
jobs would each member be particularly adept at? That is how you want to take the
initiative and distribute jobs so that each employee works in an area where they will
perform optimally.
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Step 4: Establish Timelines
Each of your assignments should have a deadline associated with it so that each
)A
team member understands what they are working toward and how much time they
have to complete it. Without a clear deadline, it becomes very difficult to hold people
accountable for completing their obligations. After all, they have unlimited time, correct?
That is not the case; therefore, take the time to establish the deadlines that everyone
must adhere to and ensure that each team member is aware of their own deadline.
(c
They should be aware of the deadline for their assignment, the task immediately
preceding it, and the entire project (at a minimum) in order to ensure that their tasks are
completed on time and in accordance with the overall timeframe you’ve established.

Step 5: Maintain Contact with Everyone

Notes
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You want to ensure that you’re following up with each member of the team to
ensure that they’re adhering to the team’s rules and deadlines. This does not imply you
in
must visit every office and see what is going on. With the proper work plan and Gantt
Chart in place, you’ll be able to monitor staff progress without ever having to enter their
offices. These charts enable you to assign tasks and track who is adhering to the plan
and timetable. Additionally, you’ll be able to identify where your team is having difficulty.
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Step 6: Ensure That Everyone Is On Task
If you’re communicating with everyone participating in this project, you should be
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notified instantly if anything goes wrong. Additionally, you should be able to make rapid
modifications to the process, the individuals involved, or the procedures involved if this is
the case. Even more importantly, you can observe where individuals are deviating from
their goals or failing to meet their responsibilities. These factors make it simpler for you
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to complete the job on schedule and within budget, since you are in control of everything.
Step 7: Establish Check-In Times
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There is a good chance that numerous members of the team with whom you are
working need collaboration. They may not need to work directly together all the time, but
they will almost certainly need to interact at at least a few phases of the project. Establish
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check-in times for the whole team to meet and discuss what’s happening and to ask you
or the other team members any questions they may have. This keeps the project on track
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and enables good face-to-face interaction between members of your team.
Now, when it comes to check-in, you want to ensure that everything is carried
out efficiently. While this is not only about you checking in with your staff, but about
everyone checking in with one another, there are several strategies and tricks that you
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may use. For one thing, you should be aware of the fact that their time is important
and that you do not want to monopolise it. Additionally, you should not be reluctant to
seek assistance or clarification on some areas of the work plan and project. If you don’t
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understand, that’s great; but attempting to direct someone else when you have no idea
what you’re talking about will just create more problems in the long run.
Step 8: Evaluate the Work

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Once the project is complete, or even after each step, you may want to take
a closer look to ensure that everyone is adhering to the work plan. It is absolutely
conceivable that they are not doing jobs correctly or that the work plan has to be
adjusted as a result of another change. Perhaps they did not execute the assignment to
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the standard you expected or demanded. Whatever it is, you are in command. You are
the one who is responsible for ensuring that everything is up to code.
If you come across a piece of the project that does not adhere to the established
)A
criteria, now is the time to do a bit more digging and investigating to determine why it
did not work out the way it was meant to. You may discover that portions of the project
must be redone, and the sooner you identify this, the better off you and the project will
be. You will have less downtime when nothing happens when it should.
Step 9: Assess the Final Result

(c
When a project is finished and handed to you, it does not indicate that it is
complete. This indicates that the team thinks it has finished all phases of the work

plan, although there may be further steps. As the ultimate project manager, it is your
Notes
e
responsibility to inspect the completed product. Whether your project is a paper, a
physical item, or something else completely, you must ensure that the outcome is what
you want (or, if that is not feasible, that the outcome is effective).
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If you are satisfied with the outcome or acknowledge that the outcome was just not
possible, you are finished. It’s time to complete the project in whatever manner you see
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fit. The project may need presentation to a customer or execution in another manner.
Alternatively, it may just need storage. On the other hand, if you haven’t accomplished
the desired outcome or haven’t arrived at a reasonable explanation for why you can’t
reach the desired result, it’s time to take a few steps back. This is the point at which you
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should re-engage your team in order to get a better performance the following time.
Step 10: Continue
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Now is the time for you to begin working on your next project. If you already have
something planned, it’s time to get in and see what you can make of it. If you don’t have
anything yet, you may not need the assistance of your team. Rather than that, you may just
sit back and relax while waiting for the squad to be required again. This is the moment at
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which, regardless of what else happens, you will switch off the work plan you’ve prepared
and be done with it for good. After all, if you have another project that requires completion,
you will need a new work plan. Therefore, take a hard look at your work plan, ensure that it
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is complete, and then continue with the remainder of your work schedule.
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At the end of the day, you need a work plan that works for you, which is attainable
if you know what you’re doing. You must ensure that each activity is completed
efficiently and successfully. You need to ensure that you plan each step carefully and
that you keep everyone focused on the task at hand. All of this is possible with the
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proper work plan and, without a doubt, the usage of a Gantt chart.
2.1 Work Breakdown Structure

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Once the project’s scope and deliverables are defined, the work may be split into
smaller and smaller work pieces. The work breakdown structure is the result of this
hierarchical process (WBS). The work breakdown structure (WBS) is a road plan for
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the project. The use of a work breakdown structure (WBS) enables project managers
to ensure that all products and work pieces are defined, to integrate the project with
the existing organisation, and to develop a control framework. Essentially, the WBS is a
high-level overview of the project with several degrees of detail.
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2.1.1 WBS: Work Breakdown Structure

The PMI’s Project Management Body of Knowledge (PMBOK) describes the Work
)A
Breakdown Structure as a “deliverable-oriented hierarchical breakdown of the work to

be performed by the project team.” There are two kinds of work breakdown structures:
deliverable-based and phase-based. The technique that is most often used and
recommended is the Deliverable-Based approach. The primary distinction between the
two techniques is in the Elements specified in the WBS’s first Level.
(c
The purpose of a work breakdown structure is to make a complex project

more manageable. By breaking it down into smaller parts, work may be completed

concurrently by several team members, resulting in increased team productivity and

Notes
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simplified project administration.
The key groups usually utilised in the field to create a hierarchical WBS are shown
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in following figure:
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Primary deliverables and systems are identified before the sub deliverables
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required for their completion. The procedure is continued until the subdeliverable
information is manageable and may be assigned to a single individual. Additionally,
this subdeliverable is separated into work bundles. Because the lowest subdeliverable
often consists of many work packages, the work packages are classified according to
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the kind of work involved—for example, hardware, programming, and testing. These
sub-categories inside a subdeliverable are referred to as cost accounts. This grouping
enables the creation of a system for tracking project progress according to effort,
expense, and responsibility.
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How a Work Breakdown Structure Benefits the Project Manager

The work breakdown structure (WBS) organises all of the project’s components
)A
into a hierarchical structure and determines their linkages to the project’s end item
(s). Consider the project as a single huge work package that is gradually decomposed
into smaller work packages; the complete project is the sum of all the smaller work
packages. This hierarchical structure enables cost, time, and technical performance to
be evaluated at all organisational levels throughout the project’s life. Additionally, the
(c
WBS provides managers with information pertinent to each level. For instance, senior
management is responsible for large deliverables, whilst first-line supervisors are
responsible for smaller subdeliverables and task packages.

Each item in the work breakdown structure (WBS) requires a time and cost
Notes
e
estimate. This data enables you to plan, schedule, and budget for your project.
Additionally, the work breakdown structure (WBS) provides as a framework for
measuring cost and task performance.
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As the work breakdown structure is built, responsibility for completing work
packages is delegated to organisational units and people. This ties the job and the
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organisation together. In practise, this is referred to as the organisation breakdown
structure (OBS), which will be addressed in further detail later in the chapter.
The use of the WBS enables the “rolling up” (summation) of the budget and actual
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expenses of smaller work packages into bigger work components, allowing for the
measurement of performance by organisational units and task achievement.
Additionally, the WBS may be utilised to construct communication channels and aid
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in the comprehension and coordination of several project components. The structure
identifies the appropriate work and organisational units and indicates where written
communication should be addressed. Because the organisation unifies work and
responsibility, issues may be handled and coordinated swiftly.
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The above figure illustrates a simplified work breakdown structure (WBS) for the
development of a new personal computer project. The project’s end item—a delivered
product or service—is at the top of the chart (level 1). Take note of how the structure’s
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tiers might convey information at various management levels. For instance, level 1
information reflects the overall project aim and is beneficial to top management; levels
2, 3, and 4 information are appropriate for middle management; and level 5 information
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is appropriate for first-line managers.
Level 2 is a summary of the deliverables required to produce the personal

computer. The disc storage unit (shaded) is one deliverable. It is composed of three
subdeliverables: external USB, optical, and hard discs. Finally, four subdeliverables
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are required for the hard disc: a motor, a circuit board, a chassis frame, and a read/
write head. These subdeliverables are the project’s least controllable components.
Each subdeliverable requires the completion of work packages by a designated

organisational unit. Each deliverable will be separated in this way sequentially. It is not
Notes
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required to level all aspects of the WBS.
The WBS’s lowest level is referred to as a work package. Work packages are
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discrete tasks with a defined start and end date, use resources, and have a monetary
value. Each work package serves as a checkpoint. A work package manager is
accountable for completing the package on schedule, within budget, and in accordance
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with technical standards. A work package, according to practise, should not exceed ten
workdays or one reporting period. If the length of a work package exceeds ten days,
check or monitoring points should be set throughout the period, for example, every three
to five days, to ensure that progress and issues are recognised before too much time has
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elapsed. Each work package in the work breakdown structure should be as self-contained
as feasible. No work package is detailed in more than one of the WBS’s subdeliverables.
There is a significant distinction between a work breakdown subdeliverable and a
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work package from start to end. Typically, a work breakdown subdeliverable contains
the results of many work packages from two or three different departments. As a result,
the subdeliverable has no inherent duration, consumes no resources, and incurs no
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direct cost.
(In a sense, the length of a given work breakdown element may be determined
by determining which work package must begin first [earliest] and which work package
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must conclude last [latest]; the time difference between start and end becomes the
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duration of the subdeliverable.) The higher-level components are used to identify
deliverables at various stages of the project’s life cycle and to generate status reports
throughout the execution stage. Thus, the work package is the fundamental unit of the
project’s planning, scheduling, and management.
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To conduct an evaluation of each job package in the work breakdown structure.
1. Specifies what constitutes labour (what).

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2. Determines the duration of time required to finish a job package (how long).
3. Establishes a staged budget for the completion of a work package (cost).
4. Determines the resources required to fulfil a task package (how much).
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5. Assigns responsibility for work units to a single individual (who).

6. Identifies checkpoints for progress monitoring (how well).
Developing a work breakdown structure from start might be a difficult process. To
begin, project managers should refer to relevant examples from past initiatives.
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WBSs are the result of collaborative efforts. If the project is modest, the whole
team may be engaged in deconstructing the project into its constituent parts. For
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big, complicated projects, it is probable that the individuals responsible for the key
deliverables will meet to define the first two layers of deliverables. Further details
would then be outsourced to the individuals responsible for the particular task. This
information would be obtained and incorporated into a formal work breakdown structure
(WBS) by a project support person. The final version would be evaluated by the project
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team’s inner echelon. Relevant stakeholders (particularly customers) will be contacted

to confirm and update the agreement as necessary.

When establishing their initial work breakdown structure, project teams typically
Notes
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overlook the importance of an end-item, output-oriented framework. Often, initial
attempts result in a WBS that is structured similarly to the organization’s structure—
design, marketing, production, and finance. If the WBS is structured similarly to the
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organisation, the emphasis will be on the organization’s functions and procedures
rather than on the project’s output or deliverables. Additionally, a WBS with a process
orientation will evolve into an accounting tool for recording expenses by function rather
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than a “output” management tool. Every effort should be taken to build an output-
oriented work breakdown structure in order to focus on specific deliverables.
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Examples of work breakdown structures
Each project’s work breakdown structure may be unique.
As a project manager, you may need to experiment to determine which work
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breakdown structure is ideal for you and your team. The objective is to demonstrate
the hierarchy of your projects and to make progress transparent to all stakeholders,
whether they are team members or external stakeholders.
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Here are some examples of job breakdown structures. You may use any of them to
create an outline for your work breakdown structure.
●● WBS Spreadsheet: You may build your work breakdown structure effectively in a
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spreadsheet by recording the various stages, tasks, or deliverables in the columns
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and rows.
●● WBS flowchart: A diagrammatic workflow may be used to organise your WBS. The
majority of WBS examples and templates available online are flowcharts.
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●● WBS list: Your WBS may be structured simply as a list of tasks, deliverables, and
subtasks. This is the simplest method for creating a work breakdown structure.
●● Gantt chart framework for work breakdown. You may build your work breakdown
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structure as a Gantt chart, which is a combination of a spreadsheet and a

timetable. With a Gantt chart-based work breakdown structure, you may connect
task dependencies and visualise project milestones.
When properly designed, the work breakdown structure serves as a road map for
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guiding a team through the process of completing projects, whether simple or complicated.
Here is an example of a job breakdown structure.

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What is the difference between a work breakdown schedule and a work breakdown structure?
Notes
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Numerous detailed project documentation supplement the work breakdown
structure. Among these are a risk management strategy, a quality management
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strategy, a procurement strategy, a communications strategy, a staffing strategy, and a
work breakdown schedule strategy.
The work breakdown schedule details the start and end dates of all tasks,
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activities, and deliverables indicated in the work breakdown structure.
Integrating the WBS with the Organization
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The work breakdown structure (WBS) is used to connect the organisational
units that are responsible for doing the task. In reality, this procedure results in the
organization’s breakdown structure (OBS). The OBS illustrates how the business has
arranged itself to carry out its responsibilities.
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The OBS serves as a framework for summarising organisational unit work
performance, identifying organisational units accountable for work packages, and
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associating organisational units with cost control accounts. As a reminder, cost
accounts group comparable job packages (usually under the purview of a department).
The OBS classifies the organization’s subdeliverables hierarchically into

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increasingly smaller pieces. Often, the conventional organisational structure is
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appropriate. Even if the project is entirely completed by a team, it is required to
deconstruct the team structure in order to assign accountability for budgets, timelines,
and technical performance.
As with the WBS, the OBS distributes responsibility for work packages within a cost
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account to the lowest organisational level. This is a significant advantage of utilising

WBS and OBS; they may be merged as seen in figure below. When work packages and
organisational units come together, a project control point (cost account) is created that
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combines work and responsibility. The intersection of the WBS and OBS indicates the
collection of work packages required to finish the subdeliverable immediately above, as
well as the organisational unit on the left responsible for completing those packages.
Later on, we’ll utilise the intersection as a cost account for project management. For
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instance, the circuit board element requires the completion of work packages led by
the design, manufacturing, test, and software departments. Control may be seen
in two ways: via the lens of results and accountability. During the project’s execution
phase, progress may be monitored vertically by deliverables (customer interest) and
horizontally by organisational responsibility (management interest).
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Notes
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2.2 Time and Cost Estimation
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Due to the pressing need to begin work on the project, managers often reduce or
avoid the effort required to follow through on project time and expense estimates. This
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mentality is a grave error that will cost you dearly. There are many compelling reasons
to invest the effort and pay the expense of project estimation. Exhibit 5.1 lists many
significant explanations.
Estimating is the practise of anticipating or making an educated guess about the

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time and money required to complete project deliverables. Top-down and bottom-up
estimation procedures are often used terms to describe estimation processes. Senior
management often does top-down estimations.
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Estimates are often derived by management using analogy, group agreement, or

mathematical linkages. Bottom-up estimates are often made by the individuals doing
the task. Their estimations are based on the work breakdown structure’s parts.
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While all project stakeholders need precise cost and schedule predictions, they
also recognise the inherent uncertainty inherent in all initiatives. Inaccurate estimations
result in misguided customer expectations and frustration. Increased effort improves
accuracy, but is it worth the time and expense—estimating costs money! Estimating
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becomes a trade-off, weighing the advantages of increasing precision against the

expenses associated with achieving that accuracy.
Cost, time, and budget estimates are the lifeline of control; they serve as the
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baseline against which actual and planned results are compared throughout the
project’s duration. Reliable estimates serve as the primary input for calculating
deviations and taking corrective action in project status reports. In an ideal world,
the project manager, and in most circumstances, the client, would have a database
including full schedules and cost estimates for each work item in the project.
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Unfortunately, such extensive data collection is not always feasible or practicable, and
other approaches are employed to create project estimates.

2.2.1 Cost and Time Estimating Methods

Notes
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In business, the majority of tasks are undertaken with the intention of generating
revenue. This demands that the project earns or saves more than the project’s
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expenditures. A project costs money until it is completed and then starts to benefit the
company’s bottom line. Additionally, each year, a corporation has a certain amount of
money to spend on initiatives. Thus, even before to the start of a project, executives
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seek answers to four questions:
●● What will the project’s cost be?

●● Are we certain we will not go over budget?
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●● How long will the project take and when will it be completed?
●● Are we certain we won’t be late?
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These are excellent questions. When we take our vehicle in for service or get our
air conditioner repaired, we ask the same questions. Nonetheless, far over half of all
projects - even those that are properly managed - run late or over budget. As a result,
addressing these concerns with reliable and committable estimates is a significant task.
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We refer to executives who commit money and organisational effort to a project
as project sponsors in the project management field, and their commitment is critical to
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our success as project managers. Our initiative will fail if they do not buy into the idea,
remain dedicated throughout, provide essential resources, and eliminate impediments.
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And their desire for a time and cost estimate is totally acceptable from their viewpoint.
Additionally, it is very difficult, if not impossible, to offer. A project is defined as “a

one-of-a-kind undertaking undertaken to develop a one-of-a-kind product or service”
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(PMI Lexicon). If each project is unique and has never been attempted before, how are
we to determine the cost of completion? How do we determine the duration? How can
we arrive at an estimate for the unknown cost? And how can we be certain that we are
correct? If we are not accurate, we will appear awful if we go over budget, deliver late,
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or both.
How to estimate the cost and duration of a project in six simple steps:
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●● Recognize your team’s capabilities and work duties.

●● Recognize how your company’s project management process operates.
●● Examine strategies and trends in project estimate.
●● Utilize past data to develop more accurate project estimates
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●● To increase cost estimate, ask precise project questions.

●● Utilize a work breakdown structure (WBS) to refine your estimate.
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Step 1: Become familiar with your team’s areas of expertise and job duties.
Want to improve your project estimation skills? Occasionally, project managers

place an excessive emphasis on statistics and not nearly enough on people.
Effective project estimate strategies are predicated on strong collaborative

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partnerships. That is because the more information you have about someone’s job and
procedure, the simpler it is to estimate it.

●● Invite members of your team to participate in the estimating process.

Notes
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A better awareness of — and communication with — your team can assist you in
staying within your project costs.
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The truth is, in order to correctly estimate projects, you MUST be actively involved in
the process. Having a firm grasp on what each team member truly accomplishes on
a daily basis will help you prevent future difficulties.
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●● Acquaint yourself with the responsibilities and skill sets of each team member.
If you really want to understand how or why someone performs their work, just ask!
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As a project manager, one of the most beneficial things you can do is to be sincere
and candid about your ignorance. While this may seem trivial, the majority of project
managers believe they are expected to know everything. You do not, and that is OK.
Remember: It is preferable to accept your ignorance and ask questions from the start.
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This not only allows you to engage with your staff on a personal level. Additionally, it
assists you in comprehending the inner workings of various sorts of projects—as well
as their associated finances. After all, determining the processes taken by one person
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to develop a deliverable can aid you in calculating a real and accurate project estimate.
Step 2: Gain an understanding of your organization’s project management methodology.
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Once you’ve established who does what and how, it’s time to move on to the next
stage of project estimation: comprehending how work is accomplished in your firm.
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●● Determine how all of the moving pieces of your project fit together—or might
fit together.
You might work for a corporation that adheres to a certain methodology, such as
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Agile or Waterfall. In such scenario, analyse the process, get familiar with all of your
dependents, and proceed with your estimations.
Is your business more comfortable with a mixed strategy that allows for
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experimentation?
Make it your duty to learn how things are done and what impact shifting things
around can have on your project’s timetable. For example, if you work in construction
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project management, would painting baseboards prior to carpet installation have a

significant influence on the quality of work or the amount of time required to complete
the job?
●● Engage in dialogue with others who have an interest in your project.
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Make every effort to comprehend your method, but don’t limit yourself to reading a
book or a manual. You are welcome to inquire about how, why, and when things are
done. The more information you have, the more effectively you may plan with your
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team or customers to develop different methods for project estimates that function
and save time.
●● Include your team in any project estimating conversations.
Discuss the approach you want to use for estimating projects, since this will influence
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how you think about work and scope. You never want to commit to a project in which
your team is not invested.

Step 3: Research approaches and trends in project estimate

Notes
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Things will change regardless of where you work. A job in project management
requires you to always keep current on industry trends, developments, and deliverables.
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It’s not simple, but it’s necessary if you want to succeed as a project manager.
Thus, how can your project estimate process be improved?
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●● Assume that your employment is a kind of continual education.
Read trade journals, websites, and blogs that are relevant to your industry. Participate
in training sessions and networking events. Local meetings and conferences devoted
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to project management and estimating are rising in popularity.
●● Discover many methods for project estimation.
Additionally, it’s critical to understand the various ways to project estimation in order
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to identify which one works best for you. Several project estimating strategies that
you may like to learn more about include the following:
●● Top-down estimating: This estimation approach begins with a broad view
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of the project as a whole and then breaks it down into key work stages. It is
generally utilised while working with little knowledge on the project.
●● Bottom-up estimation is regarded to be more accurate than top-down
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estimation since it begins with a full list of activities and estimates each one
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individually. The estimates for individual tasks are then aggregated to obtain
an overall project estimate.
●● Analogous estimating: This top-down method compares the present project
to comparable previous projects in order to provide a rapid estimate for the
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whole project.
●● Estimation of parametric models: Parametric modelling also makes use of
previous projects to guide current project estimations. It takes forecasting a
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step further by incorporating historical data into current project specifications

to get more precise cost estimates.
●● Three-point estimating: This method estimates a project using three distinct
scenarios: the best-case (or optimistic), the worst-case (or pessimistic), and
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the most probable. The estimated values for all three situations are then
combined together and divided by three to get a simple average.
Step 4: Utilize past data to improve project estimations
Without a question, previous data may aid in the development of future initiatives.
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Once the history is established, you may examine it to aid in the creation of more
accurate estimates.
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●● Begin by requesting that your staff keep track of their time spent on tasks.
This will give you a better feel of the total work required to complete a job. It is not
a case of acting as big brother to ensure that individuals do their duties. It’s being
candid about what it takes to complete a task while being profitable.
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Naturally, each project is unique. However, knowing how much time your team spent
on a particular job or deliverable can help you estimate a comparable task on a
new project.

●● Examine your time tracking and utilise it to develop a reasonable project estimate.
Notes
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At the very least, evaluate your project history to ensure that you are not routinely
underestimating project expenses or labour hours.
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As project managers, we have a tendency to underestimate project tasks in the
mistaken belief that we are doing our customers and team a favour by doing so.
However, underestimating a project is detrimental to everyone involved and creates
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stress when finances and deadlines exceed projections.
●● Comparing estimates to actuals requires the use of project baselines.
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You may mark your initial timetable, compare it to your real work as the project
advances, and take note of any challenges and their influence on your level of effort.
This will assist you in determining areas where you may enhance your estimate of
certain project activities.
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Step 5: Inquire thoroughly about the project in order to enhance cost estimate.
Whether you’re estimating a project in response to a Request for Proposal (RFP),

a conversation, or a quick written communication, you must be familiar with every
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component of the project in order to produce a reasonable estimate.
●● Take the effort to grasp the three limitations that apply to your project.
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Time, pricing, and scope are the three factors that might push your project beyond
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budget. If you maintain track of these three factors, you will become a more accurate
project estimate. You may estimate your RFP with our online gantt chart programme.
●● Ask questions that will assist you in developing an estimate based on what your
customers need—not on what you believe they require.
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Here are some questions that will assist you in more properly estimating the time and
money for your project. This list might go on indefinitely, depending on the degree of
detail offered.
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●● What is the project’s objective?

●● How will you and your customer assess the success of the project?
●● What benefits will the project provide to you and your clients?
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●● Who will represent the client?

●● What services does the project necessitate?
●● How much money does your customer have set aside for the project?
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●● Is there a technological component? If yes, what technology is used?

●● Is your customer employing anybody with subject-matter expertise?
●● What is the project’s schedule, and will your customer need your services
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after you finish your work?

●● Persistently seek out the information you need.
If your customer is unwilling to respond to all of your questions, consider this as a clue.
If answering critical questions now is too time consuming to assist you in developing
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a fair estimate, will being a good partner throughout the project’s execution be too
time consuming for them as well?

●● In this case, use your discretion. Not every estimate results in a completed project,
Notes
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and not every request results in a completed estimate.
Step 6: Using a work breakdown structure (WBS) to refine your estimate
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A work breakdown structure (WBS) is a strategy for project planning that
decomposes a large project into smaller components. Creating a work breakdown
structure (WBS) for any plan or group of activities enables you to become more specific
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about the work that needs to be done on any particular project.
If you can lay it all out and estimate each component separately, you should be
able to get a reliable project estimate. How to design a work breakdown structure for
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your projects and how to obtain a free work breakdown structure template.
●● Your project should be broken down into stages, tasks, and subtasks.
This stage establishes a framework for thorough cost estimates, as well as guidelines
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for developing and controlling the timeline. Our example illustrates a fundamental
work breakdown structure (WBS) for a frequent deliverable—relocating to a new
property! Take note of the tasks and subtasks that we considered. Is there anything
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that is missing?
●● Each component in your WBS should have a time estimate.

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If you estimate your projects in units—weeks, days, or hours—a WBS can assist
you in swiftly determining whether your project estimate will exceed the authorised
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budget. Consider expanding on our project estimating example by allocating
expected hours to each phase.
Example: Pack current residence - 8.5 days total
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This estimate includes time spent wrapping items, packing boxes, and preparing for
movers. The expected time for each room is as follows:
●● 1 day in the kitchen
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●● 0.5 days for the bathroom

●● 0.5 days in bedroom 1
●● 0.5 days in bedroom 2
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●● 1 day - Living Room

●● 1 day - Dining Room
●● 2 days in the basement
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●● 2 days in the garage

When a customer informs you that they have X dollars to spend, this exercise may
be incredibly beneficial. You may quickly map a collection of activities or deliverables
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to something that fits the budget and the client’s objectives.

Bear in mind that this may alter as you get into the real job. (Estimations of time
should be based on both experience and theories.)
●● Utilize your work breakdown structure to negotiate the project’s pricing and scope.
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If a prospective customer returns and says your project estimate is higher than
they want to pay, consult your work breakdown structure to identify possibilities to

reduce the scope of the project. This helps you to develop a project estimate that is
Notes
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compatible with a given budget while also establishing a strong set of project needs.
For instance, I could probably eliminate the cleaning phase from my moving work
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breakdown structure to save time and money (though someone might be unhappy
about that).
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2.2.2 Top Down - Analogous Estimating
Analogous estimating is another term for top-down estimating. It entails using the
estimators’ expertise or historical data from past projects to a current project or sections
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of a project by adapting observed cost, time, or resource requirements. Analogous
estimation eliminates the need for data modification and statistical adjustments.
This strategy is advantageous if you need to generate estimates without access
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to a large amount of data. This may be the case during the project selection or initiation
phases, while supervising a portfolio of projects (source: PMI Practice Standard for Project
Estimating), or during the early stages of a project. Estimates may be made for the whole
project or for specific components of the project, such as work packages or activities.
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Analogous estimation approaches are included in the PMI project management
framework under the procedures estimate costs, estimate activity durations, and
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estimate activity resources (PMBOK®, 6th edition, ch. 6.4.2, 7.2.2, and 9.2.2).
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Typically, analogous estimating is used to generate four sorts of estimates:
●● an estimate with a single point or absolute value,

●● a ratio estimate,
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●● an estimate range, and

●● a three-point estimate (often defined as a subcategory of range estimates).
This word refers to an estimate result that is composed entirely of an absolute
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value. For example, if the cost of a prior project was $100,000 and it is projected that
a new, comparable project would need a budget of the same size, the corresponding
estimate would be $100,000, an absolute figure.
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A graph illustrating a one-point estimate and historical data for similar estimation
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How Is a Ratio Estimate Calculated?

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A ratio estimate is used to represent the application of prior facts or experience to a
current project in a relative manner. One method is to estimate by multiplying observed
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historical values by a factor. Estimators may anticipate, for example, that the current
project will take 125 percent as long as the prior one.
Another use is the estimate of a breakdown or component of a project’s total cost.
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Based on previous data, a business may infer that user acceptability testing costs
generally account for 25% of the entire cost of an IT project.
This method presupposes a linear link between the various components of a
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project. It is comparable to a simple implementation of parametric estimation. However,
it is often reliant on expert opinion and lacks statistical data.
What Is a Range of Estimates?
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Rather than a single number, a range estimate contains a range of probable
values. However, it is often accompanied with a most probable estimate. Three-point
estimation is a frequently used technique for estimating ranges (which is sometimes
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referred to as a type of estimate on its own).
Consider the following graphic, which compares a range estimate to a most-likely

estimate using comparable estimates based on past data. r
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A chart illustrating a range estimate derived through comparable estimation using

historical data
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How Is a Three-Point Estimate Calculated?

Three-point estimating necessitates that the project manager or team generate
three distinct estimates:
There are three types of estimates: optimistic, pessimistic, and most probable.
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The triangular or PERT distribution is then used to turn these values into a final estimate.

What Is the Distinction Between Parametric and Analogous Estimation Techniques?

Notes
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Parametric estimation differs from similar estimation in that it makes use of past
data. Calculations and changes are necessary to account for the unique features of the
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present project.
This is often accomplished via the use of statistical techniques. It entails

discovering factors in historical data that are associated with a project’s cost, duration,
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or resource-related variables. Inserting the present project’s parameters results in the
current endeavor’s estimations. This strategy is implemented differently in different
businesses; it may vary from a basic ‘rule of three’ calculation to elaborate statistical
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models and algorithms.
On the other hand, analogous estimating does not often need data correction.
Additionally, no statistical confirmation of presumed connections is required. Rather
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than that, it places a greater emphasis on expert judgement.
In general, parametric estimating produces more accurate findings since it is

statistically and data-driven. On the other hand, analogous estimating needs less
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data and resources and may therefore be employed when just a limited amount of
information is available.
How Are Analogous Estimating Techniques Used?

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Typically, analogous estimating entails the following steps:
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●● Compiling a list of comparable projects (you can start with a longlist first and refine
it later).
●● Obtaining historical cost estimates, durations, and/or resource needs, as well as
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supplementary information on the characteristics of previous projects, such as

scope, activity, complexity, and environmental variables.
●● Refine the longlist by deleting prior projects that are no longer considered relevant. As a
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consequence, a shortlist of projects that are comparable to the present one is generated.
●● Choosing the appropriate sort of estimate depending on the needs of
stakeholders, the availability of data, and the estimators’ confidence. The first
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portion of this article contains definitions for the various outcome kinds associated
with analogous estimating.
●● Estimates may be chosen or calculated using past data.
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How to Perform Analogous Estimating – A Step-by-Step Guide

You may use all or any of these five procedures to get a comparable estimate. You
will want a list of completed projects, as well as information on their real cost, time,
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and resource requirements. Producing comparable estimates should not take long
(compared to other estimation techniques). This, however, is contingent upon the
project’s goals and complexity, as well as the availability, granularity, and quality of
historical data.
An illustration of the five phases involved in analogous estimation

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Step 1 - Compile a list of similar projects

The first step is to discover comparable projects or kinds of work to the present
Notes
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activity. Certain businesses maintain databases in which they record information on
previous projects, including the scale, complexity, effort, and time required to complete
them. These may be an excellent source of data for comparable estimation.
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Alternatively, you may draw on your own or your team’s knowledge or contact
subject matter experts who have worked on comparable projects.
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If you discover a large number of projects, you may begin by creating a longlist,
which will be filtered in stages 3 and 5. Ensure that you choose initiatives that are
somewhat comparable to your present endeavour. This contributes to comparability. In
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a following phase, you will use more criteria to determine which project or projects most
closely match the characteristics of your existing one.
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Step 2- Compile Historical Information and Experience
Once you’ve identified comparable projects or specialists, you’ll need to compile

the necessary data. Typically, a data set for comparable calculations include information
about cost, time, and resources. Additionally, you should have some knowledge of the
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projects’ scale and complexity, as well as their surroundings.
This is essentially all the information you will need. In comparison to parametric
estimating, analogous estimating is a less data-driven effort.
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Step 3 - Compare Project Characteristics and Determine which Observed Values

Can Be Applicable to the Current Project
Choose projects that have comparable features to yours. This may be

(c
accomplished via expert judgement or – in the event of a significant number of past

initiatives – through the development of a scoring system. This way, you may award

points for matching across a range of parameters, including scale, resources,

Notes
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complexity, and environmental considerations.
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While a formal method is not always necessary, it may be prudent to develop
and publish a set of fair criteria for selecting reference projects. It is fairly uncommon for
stakeholders and sponsors to request (or even contest) the assumptions behind estimates.
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Step 4 - Determine the Analogous Estimate Type
Determine if the outcome should be
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a single-point estimation, a ratio estimation, a range estimation, or a three-point
estimation.
In the latter situation, you may want to investigate estimating the total cost using
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the triangular or PERT methods.
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Step 5 - Select the Value(s) that Are Appropriate for Your Current Project
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Once you’ve determined the sort of value you’re going to estimate, you’ll need to
choose the appropriate reference project (s).
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Typically, while creating a range estimate, you will choose the lowest and greatest
values from comparable projects.
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If you need a single-point estimate or desire to identify the most probable estimate in
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a multi-point estimation model, choose the observed value of the best-fitting alternative.
If you need to scale the value, for example, because your project is bigger or
smaller than prior ones, you must apply a ratio to it.
Analogous Estimating’s Advantages and Disadvantages

(c
As with any other method to cost, schedule, or resource prediction, the similar
estimation strategy has a variety of benefits and drawbacks.

Pros
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●● Typically, analogous estimating does not need a great deal of resources or time.
●● This sort of estimation may be carried out with very little data provided.
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●● It is therefore excellent for the first stages of a project and for tasks for which little
information and historical data are available.
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●● These estimations are often adequate for working on the ‘big picture’ and are
thus excellent for high-level evaluations and strategic considerations. It may then
be utilised for programme management and early stakeholder communication
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purposes, for example.
●● An equivalent estimate is often used to provide an initial estimate for a project or
portions of a project when little information is known. After then, it will be fine-tuned
throughout time (similar to the concept of progressive elaboration).
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Cons
●● Estimates are sometimes imprecise and inaccurate.
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●● The underlying assumption is that the estimators’ previous data or experience
will be relevant to the new project. If this assumption proves to be erroneous, the
estimate is meaningless.
●● r
In actuality, top-down estimates are often influenced by political concerns or
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even pressure, rather than by the project’s unique qualities or the subject matter
specialists’ competence.
●● Due of the high degree and possibility for error of similar estimations, their
application in decision-making or project planning and control is constrained.
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How Is Analogous Estimating Typically Used in Project Management?

Project managers of almost all types of projects employ comparable estimations.
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Its applicability is often determined by the stage of a project and the availability of data,
rather than by the subject matter of a project or activity.
Throughout a project’s lifespan, similar estimations are especially prevalent during

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the project selection or commencement stages (source). However, this technique

may also be used to estimate the assumptions for cost-benefit analyses of change
processes or less major components of a project.
Additionally, this method may be used to any granularity level inside the task
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breakdown structure. However, it is rather typical to estimate complete projects or

significant sections of projects during the early planning stages.
You may want to use a similar estimating approach in instances where

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●● estimating resources are limited,

●● little information about the project (and/or similar projects) is available, or
●● a basic estimate suffices for the purpose.
(c
In reality, project managers often depend on similar estimation when resources are
few or input data is sparse. Another common use case is producing preliminary results
that are ‘good enough’ for a phase or portion of a project.

Program management is another example (source: PMI Practice Standard for

Notes
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Project Estimating): For high-level management of a portfolio of projects, imprecise
estimations often enough to provide data on which strategic choices may be made.
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When projects are ongoing for an extended period of time, such estimates
are often revised or replaced by more precise sorts of estimates (e.g. bottom-up or
parametric estimates).
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Continue reading for an illustration of how the various sorts of comparable
estimating may be used in practise.
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Analogous Estimating in Practice
The following example illustrates the use of many sorts of comparable estimating
techniques to the given situation:
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A potential client requests an estimate of the cost of implementing off-the-shelf
software from an IT provider. The vendor has previously completed comparable kinds of
work and has kept track of key performance metrics for previous projects in a dedicated
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database. The database contains the following information on a large number of
similar projects:
Historical project data Cost (in $1,000) Duration (in days)

Project A r 100 40
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Project B 200 70
Project C 80 50
Project D 160 50
Project E 120 60
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To arrive at an equivalent estimate, the estimators compare the current project’s

attributes to those of six prior projects for which they got historical cost and duration numbers.
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●● Estimate in a Single Point:

The team makes certain expert judgments and finds that the present project’s
features are comparable to those of Project E. Indeed, there is overlap in terms of
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extent, complexity, and resource availability. They then use the observed cost and
time of that project as the basis for their similar estimate (E):
E cost is equal to $120,000.
E duration equals sixty days
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●● Estimated Range and three-point estimate:

When estimators cannot discover an exact match in their previous data, they prefer
)A
to estimate a range rather than a single number.

They omit project C in this scenario because it is considered an outlier in terms of
scope (it is smaller than the present scope) and expense (low). Their estimations are
as follows:
E minimum cost = $100,000
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E cost maximum value = $200,000

E minimum duration days = 40 days

Notes
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E minimum duration days = 70 days
This range is communicated by the estimators. Due to the breadth of this range,
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stakeholders request that the estimators provide a’most probable’ estimate. The
team then uses the aforementioned one-point estimate as the’most likely’ estimate
(based on identical considerations):
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E most_likely_cost = $120,000
E most_likely_duration = 60
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The team takes the lowest and maximum estimations as the optimistic and pessimistic
points, respectively, for a three-point estimate that may be further processed in a
triangular or PERT distribution.
●● Ratio Calculator
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Additionally, the estimators might compute a ratio estimate. For instance, if they
anticipated that the present project would cost 30% more and take 20% longer to
complete than Project A, their estimations would be as follows:
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E cost = $100,000 x 1.3 = $130,000
E duration = 40 days x 1.2 = 48 days
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For certain projects, it may be necessary to divide the project down into its component
elements. Typically, and based on team experience, project efforts and time are
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allocated as follows:
●● 10% project management
●● 10% installation
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●● Customization: 50%
●● Documentation: 10%
●● Testing and quality control: 20%
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Their figures, when applied to their earlier estimate, are as follows:
Typical share Cost estimate Time estimate

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Total estimate – 120 48

Project management 10% 12 4.8
Installation 10% 12 4.8
Customization 50% 60 24
Documentation 10% 12 4.8
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Testing and quality assurance 20% 24 9.6
Typical Applications of These Analogous Estimates

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Depending on the estimators’ confidence level, these estimations may or may not
be regarded sufficient to provide a price quotation for their customer’s project.
In any event, the team will very certainly share the range (100-200 dollars and
(c
40-70 days) as an order of magnitude. Simultaneously, they may like to get further
information from their potential customer, such as a list of criteria or specialised areas.
This information may then be utilised to generate more precise estimations.

The estimators may want to utilise the ‘most likely’ or ratio estimations for internal
Notes
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communication, e.g. with their account management team. These figures may assist in
determining whether or not the seller is willing and capable of pursuing this possibility.
They may also use the breakdown (ratio estimate) to determine the availability of
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resources, for example, if the customization specialists necessary for this project are
accessible for 24 days.
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If similar estimating is utilised in an organization’s internal projects, the ratio
estimate may also be used to evaluate resource needs during the early phases of a
project and to ascertain the degree to which departments or entities are impacted by
the project.
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In any event, these comparable estimates are still fairly imprecise, and an
organisation would almost certainly want to update them with more precise numbers
during the course of a project.
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2.2.3 Top Down - Group Consensus Estimates
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Consensus Estimate Definition
A consensus estimate is a prediction of a company’s forecasted income built on the
total calculations of all equity experts monitoring the stock. Consensus estimates are
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the company’s revenue averaged out, with the actual earnings of a stock.
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Generally, analysts and experts forecast an organisation’s earnings per share (EPS)
and revenue for the quarter, the running fiscal year (FY), and for FYs in the future.
Consensus estimate is a derivative of:

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●● Company size
●● Count of experts and analysts taking charge and monitoring it
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For a company that surpasses consensus estimates, the price of its stock shoot up.
If the company does not rise up to the consensus estimates, the stocks plummet.
Understanding Consensus Estimates

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Analysts make the effort to estimate what companies will attempt in the future.
These efforts make use of the following:
●● Models
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●● Projections
●● Market dynamics
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●● Experiential research
●● Subjective evaluations
Consensus estimate depends on multiple sources:
●● Previous records of company

(c
●● Earlier financial records

●● Product market estimates
Consensus estimates are arrived at after compiling multiple valuations conducted

Notes
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by individual analysts.
Analysts deploy data from the above sources. These are then put in a discounted
in
cash flow model (DCF). The valuation process of DCF deploys impending free cash
flow (FCF) estimates. These are then discounted by employing a needed yearly rate in
order to reach a current value estimate.
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Two conditions can occur:
Condition 1
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If current value reached > current market price of the stock
Then this means an analyst probably is in “above” consensus.
Condition 2
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If current value reached < current market price of the stock
Then this means an analyst probably is in “below” consensus.
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2.2.4 Top Down - Monte Carlo
A Monte Carlo analysis is a quantitative analytical approach for determining the
amount of risk associated with attaining goals. r
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In 1940, a nuclear physicist called Stanislaw Ulam devised the Monte Carlo
method, which was named after the famed gambling city in Monaco.
In decision-making, a Monte Carlo simulation is a mathematical tool that enables

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you to account for risks. It assists you in determining the effect of identified risks by
allowing you to conduct several simulations and see a variety of results.
Every choice is fraught with risk, and a Monte Carlo simulation may help you get
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additional insight. It enables you to make informed decisions and prevent unpleasant
shocks later. This simulation may be used to determine the effect of risks on cost,
scheduling, and other factors.
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For each line of action, you receive a variety of probable outcomes and probabilities.
What is Monte Carlo Simulation and How Does It Work?
Monte Carlo simulation is a risk analysis technique that involves creating models
of probable outcomes by substituting a set of values—a probability distribution—for
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any element with inherent uncertainty. It then repeats the process, using a new set
of random values from the probability functions each time. A Monte Carlo simulation
might take thousands or tens of thousands of recalculations to complete, depending on
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the amount of uncertainty and the ranges provided for them. Monte Carlo simulation
generates probabilistic distributions of alternative outcomes.
Variables may have various odds of distinct outcomes happening by employing

probability distributions. Probability distributions provide a more realistic approach to
(c
express uncertainty in risk analysis variables.
The following are examples of common probability distributions:

●● Normal
Notes
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Also known as a “bell curve.” The user just has to provide the mean or anticipated
value, as well as a standard deviation to indicate the variance around the mean. The
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most probable values are those in the centre, close to the mean. It’s symmetric and
may be used to explain a variety of natural events, including people’s heights. Inflation
rates and energy prices are two examples of variables defined by normal distributions.
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●● Lognormal
Positively skewed values, not symmetrical like a normal distribution, characterise
this distribution. It’s a symbol for values that don’t fall below zero but have an infinite
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positive potential. Real estate property values, stock prices, and oil reserves are
examples of variables defined by lognormal distributions.
●● Uniform
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The user just specifies the lowest and maximum numbers, which have an equal
probability of occuring. Manufacturing expenses or potential sales revenues for a
new product are examples of variables that may be evenly distributed.
●● Triangular
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The lowest, most probable, and maximum values are set by the user. Values that
are close to the most probable are more likely. Past sales history per unit of time
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and inventory levels are examples of variables that might be characterised by a
triangle distribution.
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●● PERT
Like the triangular distribution, the user sets the least, most probable, and maximum
values. Values that are close to the most probable are more likely. Values between
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the most probable and extremes, on the other hand, are more likely than the triangles;
that is, the extremes are not as highlighted. In a project management paradigm, a
PERT distribution may be used to define the length of a work.
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●● Discrete
The user specifies the possible values as well as the probability of each. A lawsuit’s
outcome, for example, may have a 20% probability of a favourable judgement, a
30% likelihood of a negative verdict, a 40% possibility of settlement, and a 10%
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chance of a mistrial.
Values are picked at random from the input probability distributions during a Monte
Carlo simulation. Each collection of samples is referred to as an iteration, and the result
of each sample is kept track of. This is done hundreds or thousands of times in Monte
m
Carlo simulation, and the result is a probability distribution of probable outcomes. Monte
Carlo simulation gives a far more detailed insight of what may happen in this fashion. It
not only informs you what may happen, but also how probable it is.
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Over deterministic, or “single-point estimate” analysis, Monte Carlo simulation has

a number of advantages:
●● Probabilistic Outcomes Not only do the results illustrate what may happen, but
they also show how probable each event is.
(c
●● Results are shown graphically. It’s simple to produce graphs of possible

possibilities and their odds of occurrence using the data generated by a Monte
Carlo simulation. This is crucial for informing other stakeholders about your results.
●● Sensitivity Analysis is a method of determining how sensitive a product is.

Notes
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Deterministic analysis makes it difficult to discern which factors have the most
influence on the result in just a few situations. It’s simple to identify which inputs
had the most impact on the bottom line using Monte Carlo simulation.
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●● Scenario Analysis: It’s tough to model multiple combinations of values for different
inputs in deterministic models to observe the consequences of genuinely varied
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situations. Analysts can examine precisely which inputs had which values
combined when particular outcomes happened using Monte Carlo simulation. This
is quite useful for future research.
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●● Correlation of Inputs is a term used to describe the relationship between two or
more variables. It’s feasible to simulate interdependent connections between input
variables using Monte Carlo simulation. It’s critical for accuracy to show how, in
actuality, when one element rises, others rise or fall in lockstep.
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The use of Latin Hypercube sampling, which samples more precisely from the
whole range of distribution functions, is an advance to Monte Carlo simulation.
Example
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Let’s look at how Monte Carlo analysis may be used to create a project timeline.
Assume you have three activities with the following estimations for length (in months):
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These actions can be completed in 17.5 months, according to the PERT estimate.
It will take you 16 months in the best case scenario and 21 months in the worst
case scenario.
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Now, if we run the Monte Carlo simulation 500 times for these jobs, we get the
following results:
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Please notice that the given data is hypothetical and not based on a real simulation.
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As you can see that:
●● There’s a 2% possibility of finishing the project in 16 months.

●● There’s an 8% possibility of finishing the project in 17 months.
(c
●● There’s a 55% likelihood of finishing the project in 18 months.

●● There’s a 70% likelihood of finishing the project in 19 months.

●● There’s a 95% possibility of finishing the project in 20 months.

Notes
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●● There is a 100% likelihood of finishing the project in 21 months.
This method allows you to do a more thorough study of your data, enabling you to
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make a more educated conclusion.
The Monte Carlo Analysis’ Limitations
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The Monte Carlo simulation, for example, has a few drawbacks:
●● The accuracy of your estimations determines the outcome, thus if the data is
skewed, you will obtain a misleading result.
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●● The likelihood of finishing the tasks is shown in the Monte Carlo analysis, not the
actual time needed.
●● This method is not applicable to a single action; you must have many and
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thorough risk evaluations.
●● To perform the Monte Carlo simulation, you’ll need to purchase an add-on or
software application.
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The Advantages of Monte Carlo Analysis
This strategy provides a number of advantages in project management, including:
●●
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It assists you in assessing the project’s risk.
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●● It assists you in predicting the likelihood of schedule failure and expense overrun.
●● It translates dangers into numbers so that they may be easily assessed.
●● It aids in the creation of a realistic budget and plan.
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●● It aids you in gaining management approval.

●● It provides objective evidence to assist you in making decisions.
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●● It aids you in determining the likelihood of meeting project milestones or interim objectives.
2.2.5 Top Down - Apportioned Method Estimating

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This technique is a variation on the ratio approach. When projects have similar
characteristics and expenses to previous initiatives, proportioning is applied. Estimates
may be created fast with minimal effort and acceptable accuracy if you have excellent
historical data.
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This strategy is often used in projects that are very typical yet have a modest
amount of variance or modification.
This technique is familiar to anybody who has borrowed money from a bank to
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construct a home. Banks and the FHA (Federal Housing Administration) sanction
payment to the contractor based on the completion of various portions of the home,
based on a projected total cost for the house. For example, the foundation may account
for 3% of the entire loan, frame 25%, electric, plumbing, and heating 15%, and so forth.
As these tasks are finished, payments are paid.
(c
Some firms use a similar method to allocate costs to WBS deliverables based
on typical cost percentages from previous projects. Below figure shows an example
that is comparable to one that may be encountered in practise. The expenses are
Notes
e
distributed as a percentage of the entire project cost, assuming the total project cost is
anticipated to be $500,000 using a top-down estimate. The expenditures allocated to
the “Document” delivery, for example, are 5% of the total, or $25,000.
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The subdeliverables “Doc-1” and “Doc-2” each get 2% of the total, or $10,000 and
$15,000, respectively.
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FIGURE- Apportion Method of Allocating Project Costs Using the Work
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Breakdown Structure
2.2.6 Bottom-Up Estimating

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Bottom-up estimating is a technique for estimating project time or cost by

combining estimates from lower-level WBS components. When the time of an activity
cannot be anticipated with an acceptable degree of certainty, the work within the activity
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is broken down further. The durations of the details are approximated. The total amount
for each of the activity’s durations is then calculated using these estimations. There
may or may not be relationships between activities that impact resource application and
utilisation. If there exist dependencies, the projected needs of the activity reflect and
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record this pattern of resource utilisation.
Template Methods:
If the project is comparable to previous ones, the previous projects’ expenses
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might be utilised as a starting point for the current one. Differences in the new project
may be noted, and previous timeframes and expenses can be changed to account for
them. A ship repair drydock, for example, has a collection of standard repair projects
(i.e., overhaul, electrical, and mechanical templates) that are used to estimate the cost
)A
and length of every new project. Differences in timelines, prices, and resources from
the proper standardised project are recognised, and corrections are made. This method
allows the company to create a probable timetable, estimate expenditures, and create
a budget in a short amount of time. The creation of such templates in a database may
help to decrease estimate mistakes fast.
(c

Application of Parametric Procedures to Specific Tasks

Notes
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Top-down estimates may be derived using parametric approaches such as cost per
square foot, and the same methodology can be applied to particular jobs. For example,
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36 distinct computer workstations required to be converted as part of an MS Office
conversion project. The project manager calculated that one person could convert
three workstations per day on average based on previous conversion initiatives. As a
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result, three technicians would need four days to convert the 36 workstations [(36/3)/3].
Similarly, the contractor estimated the wallpapering allowance on a home makeover
at $5 per square yard of wallpaper and $2 per yard to install it, for a total of $7. She
calculated the total size in square yards by measuring the length and height of all the
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walls and multiplying it by $7.
Estimation of a Range
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When is it appropriate to employ range estimating? When there is a lot of
uncertainty about how long or how much it will cost to execute a project, range
estimating is the best option. Using a person who is most experienced with the work
package is typically the best method if the work package is regular and has minimal
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ambiguity. They know how to estimate work package durations and prices from
experience or know where to acquire the information. When work packages contain
a lot of uncertainty about how long they’ll take or how much they’ll cost, it’s a good
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idea to demand three time estimates: low, average, and high (derived from the PERT
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approach, which employs probability distributions). The range from low to high indicates
where the average estimate will fall. Factors such as complexity, technology, newness,
and familiarity determine the low and high estimations for the activity.
What method do you use to get the estimates? Because range estimating
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works best for task packages with a lot of uncertainty, having a group decide on the
lowest, average, and highest cost or time yields the best results. By adding additional
evaluative judgements to the estimate and possible dangers, group estimating tends
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to refine extremes. Extreme perceived risks connected with a time or cost estimate
are moderated by the judgement of others in a group. When others are involved in
producing activity estimates, the estimate acquires credibility and buy-in.
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Abbreviated estimating form for work packages prepared by a cross-functional

group(s) of project stakeholders shown in figure below:
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(c

Notes
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Each work package’s low, average, and high estimates are shown in the group estimates.
The group’s independent judgement of the degree of confidence that the actual
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time will be extremely close to the estimate appears in the Risk Level column. In
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some ways, this figure reflects the group’s assessment of a variety of elements (such
as complexity and technology) that might influence the average time estimate. In our
case, the group believes that task packages 104, 108, 110, 111, and 114 have a high
likelihood of varying from the projected average time. Similarly, the group believes the
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likelihood of work packages 102, 105, and 112 not materialising as planned is minimal.
What are your plans for using the estimate? The project manager and owner may
use group range estimates to measure the level of confidence in project timelines
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(and/or costs). As the project continues, the method helps to minimise surprises. The
range estimation approach may also be used to evaluate risk, manage resources, and
calculate the project contingency fund. In software and new product initiatives when
up-front needs are hazy and unknown, range estimate is common. When it comes to
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phase estimation, group range estimating is often employed.
2.2.7 Quality of Estimates

The intention to “have a 95 percent possibility of meeting time and cost projections”
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is a common remark in the profession. For creating time and cost estimations, previous
experience is an excellent beginning point. However, in order to attain the 95 percent
confidence threshold, prior experience estimations must nearly always be modified
)A
by additional factors. The accuracy of estimations will be heavily influenced by factors

relating to the project’s uniqueness. To increase the quality of project time and cost
estimates, project, personnel, and external issues must all be addressed.
Estimates are influenced by a variety of factors:

(c
The accuracy of estimations will be heavily influenced by factors relating to the

project’s uniqueness. To increase the quality of project time and cost estimates, project,
personnel, and external issues must all be addressed.

●● Planning Horizon
Notes
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The accuracy of the estimate is determined by the planning horizon; forecasts for
recent events are near to 100 percent accurate, while projections for future events are
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less precise. As you go from the conceptual phase to the point when individual work
packages are established, the accuracy of time and cost estimates should increase.
●● Project Duration
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The amount of time it takes to adopt new technology has a tendency to grow in
an exponential, nonlinear manner. Poorly drafted scope requirements for new
technologies may lead to time and cost estimation problems. Long-term initiatives
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raise the level of uncertainty in projections.
●● People
The human aspect may also cause inaccuracies in time and expense estimations.
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For example, the accuracy of estimations is determined by the expertise of those
who make them. Productivity and learning time will be influenced by a tight match
of persons talents to the job. Similarly, whether or not members of the project team
have previously collaborated on comparable projects will impact how long it takes for
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them to gel into a cohesive unit.
Staff turnover, for example, might have an impact on estimations. It’s worth noting
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that bringing on additional personnel to a project increases the amount of time
spent talking. People typically only have five to six productive hours available every
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working day; the rest of the time is spent on non-productive tasks such as meetings,
paperwork, and e-mail responses.
●● Organization and Structure of the Project
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The project management structure selected will have an impact on time and cost
estimations. One of the key benefits of a specialised project team, as previously
mentioned, is the increased speed that comes from focused concentration and
localised project decision-making.
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This speed comes at the expense of committing full-time workers. Converse projects
in a matrix environment may save money by sharing staff more effectively across
projects, but they may take longer to finish since attention is split and coordination
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needs are greater.

●● Estimates for Padding
People have a tendency to exaggerate estimations in various instances.
If you’re asked how long it takes you to travel to the airport, for example, you may say
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30 minutes on average, assuming a 50/50 probability of getting there in 30 minutes.

If you’re asked how quickly you could be there, you may be able to cut the trip down
to 20 minutes. Finally, if you were asked how long the journey would take if you
)A
had to get there immediately for a meeting with the president, you would probably
estimate 50 minutes to avoid being late.
When asked for time and expense estimates at work, most of us are tempted to add
a little padding to enhance the likelihood of being on time and lower the danger of
being late.
(c
If everyone on the project adds a little padding to reduce risk, the project’s duration
and cost will be significantly overstated. As a result of this phenomena, some project
managers or owners request a 10—15% reduction in project time and/or expense.

Notes
e
Of course, the person estimating cost and/or time the next time the game is played
will increase the estimate by 20% or more. Clearly, such games sabotage the odds
of reasonable estimations, which are required to compete.
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●● Organizational Culture: The culture of an organisation may have a big impact on
project estimates. Padding projections is allowed and even encouraged in certain
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workplaces. Other companies put a high value on accuracy and actively prohibit
guessing games. Estimates are valued differently by different organisations.
Some organisations believe that comprehensive estimating takes too much time and
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is not worth the effort, or that forecasting the future is impossible.
Other organisations believe that precise estimates are the cornerstone of good project
management. Every aspect of project management is influenced by organisational
culture, and estimating is no exception.
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●● Other Considerations
Finally, time and cost projections might be influenced by non-project issues. Equipment
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downtime, for example, might cause time estimates to change. National holidays,
vacations, and regulatory restrictions may all have an impact on project timelines. The
importance of a project may affect resource allocation, as well as time and cost.
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Estimating a project is a difficult task. While these elements are taken into account when
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developing time and cost estimates, the quality of the estimates may be enhanced.
Time and cost estimates together enable the management to create a time-phased
budget, which is critical for project control.
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2.3 Organisation Breakdown Structure and

Project Organisation
Organization Breakdown Structure (OBS) is a hierarchical model for project
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planning, resource management, time and expenditure monitoring, cost distribution,

revenue/profit reporting, and task management.
The Work Breakdown Structure (WBS) organises all of the parts of a project.
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Organizing and managing existing and future projects is easier when huge, complicated
projects are broken down into smaller project parts. WBS simplifies resource allocation,
work assignment, project cost and billing measurement, and management. The WBS
is used to establish scope, identify cost centres, and is the starting point for producing
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project plans/Gantt charts at the start of the project.
The Organization Breakdown Structure connects project activities or “work

packages” to the organization’s structure by grouping them together. The Organizational
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Breakdown Structure (OBS) is used to establish project management, cost

reporting, billing, budgeting, and project control duties. The OBS gives the project an
organisational rather than a task-based view. The OBS’s hierarchical structure enables
project data to be aggregated (rolled up) to higher levels. When project responsibilities
and work assignments are determined, the OBS and WBS are linked, allowing for
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strong analytics to monitor project and workforce performance at a large level (for
example, business unit performance) or down to the smallest detail (example user work
on a task).
To create an organisational breakdown structure, follow these steps:

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●● Create a hierarchy for the whole company.
●● All departments and project teams should be defined.
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●● For each user, create functional (where the cost of the work they do is assigned) and
approval (who authorises the job they do and any leave time approvals) groups.
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Here’s an example of an OBS:
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2.3.1 Why Is Organisation and Project Team Structure Important?
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A well-defined organisational structure and a flawless staff are beneficial to all
enterprises, big and small.
A group of people working on a puzzle-piece shaped desk.

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A corporation must build an effective structure in order to fulfil its specified goal and
objectives. Even with excellent leadership and hardworking personnel, a firm that lacks
an organisational framework might collapse.
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As a result, the first step in planning a new project is to choose the ideal project team.
What Is a Project Team and What Do They Do?

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Members of the project team are those who work on one or more stages of the
project. They might be in-house developers or an offshore development team, working
full-time or part-time on the project. The roles and duties of team members might
change based on the project. Depending on the project, a project team may be in
charge of a number of responsibilities and activities.
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A successful project team structure entails properly defining team tasks and
obligations while taking into account the project’s particular goals and objectives.
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Among the responsibilities of a project team member are:
●● Contributing to the project’s broad goals

●● Individual deliverables are completed.
●● Providing their knowledge
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●● Collaboration with users to solve business needs

●● Keeping track of the process
However, a project will only be effective if the people involved are committed to it.
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As a result, selecting individuals for a software development team solely on their
expertise is not the ideal approach to go about it.
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What Makes a Good Project Team?
There are a few key abilities that leaders must look for in order to determine who
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may be brought to the team and work effectively with others. Even the most talented
personnel need training in order to excel as project team members. It’s not a good
idea to assume that individuals already have all of the necessary abilities or that they’ll
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quickly pick up on what others are doing. Even the most talented personnel need
training in order to excel as project team members. Companies who wish to get the
finest project results must first invest in their staff.
Here are some characteristics to look for in your team:
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●● Excellent Communicator
Project team members interact with a diverse range of individuals from various
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backgrounds inside a company. As a consequence, these project managers must be
able to communicate effectively with a wide range of audiences.
Remember that bad communication may make or break a project’s success, therefore
this is crucial. r
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●● Understanding of Project Management Concepts
While team members do not need to be specialists in every technique, tool, or
phrase, having a basic understanding of project management concepts may provide
them with a good foundation on which to operate.
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Project success does not need highly organised mass chaos. A project team member
must be well organised in order to know precisely what is going on at all times
throughout the project.
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Even while under extreme stress, these professionals must be able to employ
existing tools and procedures to remain organised.
●● Ability to read people well
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The most effective project team members are also excellent leaders who know how
to encourage and inspire others.
They may establish a vision for stakeholders and their teams to follow in order to
find inspiration. They know precisely what it takes to push individuals to get the work
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done in a crisis.
●● Skills in Accurate Estimation
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The project manager enlists the help of team members to estimate their tasks.
Estimates must be precise since they have the ability to derail the whole project
schedule. One delayed job might have a domino effect, forcing everyone to miss
important deadlines.
●● Self-Assured
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When confronted with resistance from other members of the association, a project
team member must act civilly and decisively. When confronted with obstacles, these

specialists must be able to explain their demands effectively and advocate for the
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project’s best interests.
●● Person who is proactive
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Proactivity is a key component of every successful team. The combined effort of
each of your team members is critical to the success of your project. Employees that
take initiative are valuable assets. If you look for this in your personnel, your project
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will operate more smoothly and quickly than you ever thought.
●● Individuals who are resourceful and influential
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Who doesn’t desire a resourceful software development team? Always keep an eye
out for those that are resourceful. Your team should be made up of people who have
professional ties to a variety of companies, people, and/or customers. They should
ideally be strong, in the sense that others will perceive them as a leader in their
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own sector.
The 5 Most Important Project Team Roles to Define
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Projects that succeed are generally the result of careful preparation and the
expertise and participation of a devoted development team. Without each of the
project’s core team members, the project would never succeed, but it’s not always
apparent who those individuals are or what responsibilities they play.
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Without each of the project’s core team members, the project would never
succeed, but it’s not always apparent who those individuals are or what responsibilities
they play.
●● Project Manager
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The project manager is the most important person on the team and is responsible for
the project’s success.
The project manager’s role is to ensure that the project is completed within the
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stipulated time frame and budget while meeting the project’s goals.
Project managers also make ensuring that projects have enough resources while
also maintaining connections with contributors and stakeholders.
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Project management responsibilities include:

●● Make a project strategy.
●● Manage deliverables in a timely manner.
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●● Employ project personnel who are competent.

●● Oversee and lead the project team.
●● Determine the project’s technique.
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●● Create a project timeline and decide on each step.

●● Assign tasks to members of the project team.
●● Provide higher management with daily updates.
●● Team Leader
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●● A team leader provides leadership, instruction, and direction to his or her team
members in order to guarantee that all project objectives are met. An competent

team leader is aware of his team members’ skills, shortcomings, and motivations.
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Apart from that, team leaders have a variety of responsibilities inside a business.
Their job is to guarantee that the tasks are completed utilising all of the resources
available to them.
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A team leader’s typical responsibilities include the following:
●● Developing a plan to help the team achieve its objective
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●● Providing necessary training to members of the team
●● Team members are given explicit instructions.
●● Taking comments from team members into consideration
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●● Keeping track of team members’ involvement to verify that the training they
are receiving is beneficial. They also check to determine whether extra
training is required.
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●● Managing the day-to-day operations flow
●● Creating reports to keep the organisation informed about the team’s success
and distributing them to the right people
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●● Senior Member
A senior member is often seen as a more knowledgeable and experienced team
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member. They are tasked with handling the larger and more difficult project duties,
and they may be given many projects at the same time. A senior member’s exact job
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description and duties will vary from firm to organisation.
Additional responsibilities for a senior team member may include project management,
project managers, and the firm as a whole.
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The following are some of their project responsibilities:

●● Being the point of escalation. On projects that belong to younger personnel,
senior project members might occasionally serve as a key point of contact for
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stakeholders. When the project manager is unable to handle challenges on

their own, this is frequently done.
●● Defend initiatives that are in trouble. When a project veers off course, a senior
member steps in to help the younger members or takes over the project entirely.
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●● A senior project member’s responsibilities include:

●● Conducting interviews and appointing new members to the team. After the
interview, senior project members determine whether or not to recruit a new
project member.
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●● Supervising and training. Senior project participants in certain firms report

directly to team leaders, who then steer the project further.
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●● Mentoring and coaching are two different things. Senior project personnel are
often active in mentoring and coaching incoming junior employees.
●● Assume the role of a role model. People in this field are required to set an
example for the team’s younger members.
●● Support for the big vision. Senior project members’ responsibilities also
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include assisting with programme management and other PMO tasks.

●● Junior Member
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A junior project member is in charge of completing the project task within the time limit
allotted. Their role comprises coordinating with the rest of the team’s specialists and
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technicians in order to meet the project’s objectives. They also follow administrative
project execution guidelines.
●● Contributor
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A project team contributor is a person or organisation who participates in collaboration
but does not complete tasks or carry out project team responsibilities.
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Speaking of which, although there are many various sorts of structures that companies
may use based on their type of organisation, having the appropriate structure can
provide several benefits, including:
●● Clear Reporting Relationships
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Maintaining reporting ties with the whole organization’s workforce is critical. It assists
members of your application development team in understanding their roles and
duties, as well as who is responsible for them. These explicit linkages make it easier
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for managers to monitor individuals at lower levels of the organisation. Knowing who
they can turn to for advice or assistance helps each employee.
Managers are also aware of who is not in their job authority so that they do not
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overstep their bounds and interfere with the obligations of another management.
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●● Expansion and Rapid Growth
We all live in a vast, constantly changing contemporary world. Companies must
make the most use of its current available resources, particularly managerial skills, in
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order to swiftly develop in a market. A solid organisational structure ensures that the
appropriate people are in the right places at the right time. An organisational structure
must be well-formed; else, it will reveal the company’s management system’s flaws.
In addition, as the firm expands, the organisational structure must change. When
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a department head is dealing with a large number of people at once, it might be

overwhelming. In such instance, he will be unable to provide the required attention
and direction for the staff to succeed, perhaps resulting in the project’s collapse.
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●● Task Completion in a Timely Manner

Project execution is made easier by a well-designed organisational structure. If
the function of each department’s responsibilities - and the potential of each team
member - is clear, project managers may readily categorise the human resources
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accessible to them.
Conducting market research, for example, is required when developing a new
product. As a result, a project manager must know who in the company can supply
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the research and who must obtain authorization for the study to be conducted.
●● Improved Communication
Because the organisational chart identifies the lines of communication and authority
flow, intercommunication should be simpler and easier to remove any ambiguity.
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Any organization’s performance depends on the flow of information, which is why

you should build the organisational structure with clear lines of communication
in mind.
2.3.2 Functional Structure

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A functional structure is a sort of organisational structure in business that
divides an organisation into distinct divisions based on areas of competence. These
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departments act as functional units under the supervision of functional managers or
department heads. Within each department, team members report to department
heads, who in turn report to the company’s senior management, keeping them informed
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of the condition of their functional areas.
A functional organisation structure may comprise departments such as sales,

production, human resources, information technology, marketing, and legal. In some
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major organisations, these departments are geographically segmented. They may just
inhabit various portions of the same office building in smaller businesses.
Three Critical Features of Functional Structure
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Businesses that have a functional organisational structure exhibit the following qualities:
●● There is a hierarchical structure from the top down. While the majority of
functionally oriented businesses have a top management team that supervises the
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whole organisation, practically every other employee is assigned to a specialised,
segregated department.
●●
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Senior management reports to department leaders. Each department inside a
business—whether sales, product, or information technology—has a department
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head who is either a member of upper management or reports directly to them.
●● Employees are assigned to specific duties. In functionally organised organisations,
employees are recruited based on their experience in a certain skill. They seldom
deviate from their assigned duties to assist another department with its task.
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Three Possible Benefits of a Functional Structure

Businesses that operate on a functional framework may benefit from three
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distinct benefits.
●● Stable work environment: A functioning organisational structure fosters a stable

work environment in which workers understand their job’s scope and expectations.
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●● Built for organisational efficiency: Large firms often choose functional structures
because they enable individual departments to operate autonomously, resulting
in increased efficiency. A disagreement in one area does not always result in a
bottleneck across the organisation.
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●● Utilizes workers’ strengths: A functional structure puts employees where they are
most needed and avoids overburdening them with duties that are above their skill
set. Employees who work on tasks within their area of expertise often perform
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more effectively.
Three Potential drawbacks of a Functional Structure

Along with the benefits, implementing a functional organisational structure has a
number of drawbacks.
(c
●● Potential for Silos: When workers labour primarily in one department or on a single
job, they might lose sight of the organization’s larger aims. Employees may feel

less involved in the entire company if they do not connect with employees of other
Notes
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departments and do not understand how their job relates to that of other departments.
●● Competition between departments: When departments are clearly defined and
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assigned particular objectives, there is a danger that rivalry may obstruct inter-
departmental cooperation.
●● Missed opportunities for innovation: Occasionally, venturing beyond the hive mind
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of a department is the greatest way to develop ideas for new products, marketing
campaigns, or supply-chain models. When workers get compartmentalised into
specialised divisions, they may lose out on opportunities to learn from colleagues
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in a different area of the business.
A typical functional project structure is shown in the figure below:
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2.3.3 Project Structure

The project structure will consist of three layers: a strategic layer comprised
of executive sponsors and main stakeholders; a tactical layer comprised of clinical
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and technical members of the team and their execution; and a management layer
comprised of project management. As previously stated, clinical/operational leadership
is critical and should be responsible for strategic project direction.
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The project team will include clinical analysts who are subject matter experts in
their own right and collaborate with other subject matter experts, application analysts
who configure and troubleshoot the application layer, and technical staff who will be
responsible for the infrastructure, which will include the operating system, database
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administration, servers, desktops, and devices. Possible configurations include all

personnel reporting to the operations side in an informatics model, all staff reporting to
IT, or a mix of both operations and IT staff reporting. A sample project structure is shown
below:
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Characteristics of a Projectized Organizational Structure
Several features of a projectized organisational structure include the following:
●● Organizations that are project-based are dynamic and adaptable.
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●● Project managers exercise complete control over project resources. They are in
charge of the budget and job allocations.
●●
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Project managers are in charge of full-time team members.
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●● Team members are often colocated to maximise performance until the project
is completed.
●● When a project is done, the team disbands and the resources are released.
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Advantages
Several benefits of a project-based organisational structure include the following:
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●● Team members are committed to the project’s success.

●● Members of the team report directly to the project managers; the chain of
command is unambiguous. This eliminates conflict and enables more rapid and
flexible decision-making.
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●● A centralised reporting system streamlines communication channels, resulting in

more efficient team collaboration.
●● Due to the presence of a single authority, communication is expedited. This assists
in promptly resolving stakeholders’ issues.
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●● As the exclusive authority, project managers may make swift choices and expedite
the completion of the project.
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●● Communication and collaboration are often improved when there is a feeling of

urgency associated with meeting milestones. As a result, new members quickly
acquire knowledge.
●● Due to their exposure to a variety of tasks, team members develop more
adaptability and flexibility.
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●● Adaptive culture is projected culture. Team members are encouraged to share and
learn from one another’s experiences.

Disadvantages
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Several downsides of a project-based organisational structure include the following:
●● Absolute authority may breed arrogance in a project manager. In a functional
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organisational structure, a lack of power is a problem, while total authority might
be a problem in a projectized organisation.
●● Projects are usually subject to deadlines and strict timetables, which may
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contribute to a stressful work atmosphere.
●● In the case of several projects, ineffective communication might result in resource
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duplication.
●● The squad members have an air of unease. They are aware that after the project is
over, they may lose their employment. They are less likely to be loyal to the group.
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●● Employees and equipment costs may be greater since they are employed for a
shorter amount of time. Additionally, this cost might escalate significantly if the
project is delayed.
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●● Because the personnel work on a variety of different tasks, they may not be highly
competent in a single field. This may have an effect on the deliverable’s quality.
Examples of Project based Organizational Structures

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I often get letters asking for sample project-based organisational structures.
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It is difficult to locate a well-known illustration. Even if a business is only focused
on projects, it need supporting departments to handle everyday activities such as
administration, finance, and human resources.
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Initially, while the company is tiny, it is simpler to operate as a projectized organisation,

with a freelancer taking on a project or temporary personnel completing a job.
However, as businesses increase in size and complexity, they must adapt and
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exhibit the qualities of a strong matrix organisation.
2.3.4 Matrix Structure

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A matrix organisational structure combines two or more distinct organisational

structure types. There is a classic management hierarchy in the matrix organisation, but
it is not as linear as the traditional top-down hierarchical structure.
Each employee in a matrix organisational structure will have a functional manager

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and a secondary project manager.
The functional manager will serve as the immediate “line manager” for assigned
team members. They reflect the typical organisational structure based on department
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or job function, with marketing, sales, product development, human resources, and
information technology serving as examples.
Meanwhile, the project manager is responsible for leading a cross-functional team

of individuals from several departments. For instance, you may have two marketing
(c
professionals, three product development employees, and one sales person collaborate
on a project. Each of these workers will report to a functional manager and a
project manager.

The matrix organisational structure’s two+ management systems cross on a grid

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(or matrix), giving it a box-like appearance rather than being tall and linear.
A sample matrix structure is shown below:
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Advantages
A matrix organisational structure is an excellent possible replacement for a
hierarchical organisational structure, and it has various advantages. Three significant
benefits are as follows: r
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1. Matrix Structures Are Significantly More Versatile and Facilitate Collaboration
As you may have guessed, the matrix organisational structure is intrinsically
superior to the hierarchical structure at bringing people together. Whereas a hierarchical
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system encourages workers to operate in silos as independent teams, a matrix

structure brings together the appropriate individuals with the necessary talents from
various teams to handle a specific project.
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This also makes the matrix organisational structure considerably more adaptable,
since assignments are never permanent, as they are depending on the requirements
and wants of a person. As a result, employees have more freedom and may move
between various projects and teams as needed, contributing their experience and
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abilities along the way.
2. Promotes more effective communication

Matrix organisational systems inherently promote more effective and open
communication. This is because matrix architectures need workers to interact with their
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functional managers as well as with project managers and supervisors. This implies
that information that would normally be held inside separate teams in a hierarchical
structure is shared with all project participants.
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For example, in a typical structure, information about the human resources

department may be sent down from the COO to the HR manager, hiring managers,
recruiters, and other staff working in the HR bubble, where it stays. However, in a matrix
structure, team members are more capable and inclined to openly exchange knowledge
(c
with other teams. This keeps everyone informed and helps management to make
sound judgments.

3. Increases Motivation
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A matrix organisational structure fosters a distinctive style of leadership. While the
hierarchical organisational structure places a premium on the overall line of command,
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the matrix organisational structure places a premium on democratic leadership. This
naturally favours the valuable contribution of project team members over a hierarchical
structure, ensuring that workers have a far greater voice in management decision-making.
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As with a flat structure, this increased amount of individual autonomy boosts
motivation significantly; workers feel more appreciated and their work and choices have
a greater impact on the organization’s long-term performance.
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Disadvantages
The organisational matrix structure is not without flaws. As with every structure, it
has its own set of particular issues, of which all companies should be aware:
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1. Ambiguity in Relationships and Responsibilities
One of the primary benefits of the hierarchical structure is its clarity; it eliminates
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any possibility of misunderstanding or interpretation on who reports to whom and who
is accountable for what. However, the same cannot be stated of the matrix
organisational structure.
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Simply said, the matrix organisation is more complicated by design, which might
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result in misunderstanding about management and staff duties and responsibilities.
For managers, this might result in unhealthy competitiveness when it comes

to team member selection. Additionally, it may create uncertainty about who is solely
accountable for an employee’s contribution to a project and who is accountable for the
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employee’s entire professional growth and position.
Employees may also suffer disorientation while transferring to new teams

with unfamiliar work dynamics and responsibilities. When this is combined with an
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employee’s devotion to their “normal” functional department, anxiety might occur as

they attempt to choose whether of their major obligations should be the project or their
functional department responsibilities.
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2. Slower Decision Making

Instead of a single management weighing in on a job or problem, a matrix structure
allows for two or more managers to weigh in. This may result in prolonged decision-
making times, particularly if there are any disagreements amongst these managers and
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they are unable to reach an agreement.
As said above, this is due to an inherent lack of clarity on duties and authority, or
overlapping authority. Managers may find themselves moving back and forth repeatedly
)A
owing to a desire to either own or abstain from making the necessary choice. This may
be a significant issue for a time-sensitive project.
Additionally, the matrix structure’s complexity might make it more difficult for teams
to agree on the appropriate next actions. This is a by-product of the matrix structure’s
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greater capacity for open communication.

3. More Expensive
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Naturally, a matrix structure is more costly to maintain. This is because there
are more jobs at the management level engaged. While a hierarchical organisational
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structure would have just functional managers, a matrix organisational structure would
include both functional and project managers. This may become a major extra price
depending on the size of the business and the number of projects it is managing at any
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one moment.
Additionally, decision-making takes longer, which results in increased expenses as

staff tasks and overall projects take longer to accomplish.
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2.3.5 Virtual Team
Virtual organisational design is all the rage these days. Every day, an increasing
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number of businesses (including Fortune 500 firms) are incorporating virtual teams into their
organisational architecture and recruiting procedures. The advantages are pretty appealing.
For smaller businesses and startups, however, the choice to engage a remote labour
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is a significant one. Often, it is done with the benefits in mind, but without delving thoroughly
enough into the drawbacks and concerns that may occur as a result of that choice.
Making the best selection for your business is crucial, depending on your personal
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objectives and aspirations. Making the incorrect option now might put your firm back
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years or significantly restrict its development in the future. It is critical for entrepreneurs
to enter the selection educated and with a clear idea of what they want to accomplish
with their choice.
Advantages
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There is a reason why the World Economic Forum has identified virtual teams as
“one of the most significant drivers of workplace change.” Virtual organisation design
has a number of significant benefits. Among these benefits are the following:
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●● Cost Savings on Overhead. Operating expenses for virtual businesses are

significantly reduced. Due to a move toward virtual teams and remote work,
Aetna was able to eliminate 2.7 million square feet of office space and save $78
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million. American Express also saw a roughly $15 million reduction in overhead
expenditures as a result of an emphasis on remote labour.
●● Employee Satisfaction Increased. Employees are just more content when they can
work from home. 82 percent of remote employees report experiencing less stress.
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Additionally, the research found that a move toward remote work resulted in fewer
absenteeism and increased morale.
●● Increased Employee Productivity. Without the distractions of the workplace,
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remote workers do more work. According to a recent poll, 30% of employees

indicated that working remotely enabled them to do more in less time.
●● Increased Scalability and Growth Prospects Without the traditional expense
associated with office space maintenance and less capital expenditures in
supplies, businesses may free up resources to boost their scalability and growth
(c
potential. Remote teams are, by definition, more agile.

●● Increased Talent Pool. Startups that recruit remote workers have access to a
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bigger pool of talent. You may employ talent from any place in the globe, rather
than being restricted to a single geographic region.
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●● Increased Retention of Employees. Employees who are content with their jobs are
more inclined to stay. Remote employees who earn competitive wages are less
inclined to abandon their occupations.
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●● Gaining Access to New Markets Remote hiring enables your business to expand
into new areas. This is especially beneficial for remote sales teams, as they will
be able to reach out to new consumers who would have been out of reach for your
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firm otherwise.
There are various advantages to remote and virtual teams. However, many teams
focus only on these benefits, omitting to discuss the disadvantages of adopting a virtual
organisation architecture. It’s critical to understand the benefits and drawbacks of virtual
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organisation architecture in order to make the best decision for your firm.
Disadvantages
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To balance out the benefits of remote recruiting, there are also significant
drawbacks. Often, businesses that choose a virtual organisational architecture without
enough information learn the hard way about these downsides.
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Difficulties Establishing a Corporate Culture. Remote teams often struggle with
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team cohesion. Remote teams often set their own work hours, which may result in a
fractured corporate culture. Once that culture has established, it might be difficult to
make the necessary modifications to restore order.
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●● Lack of Companionship. Face-to-face communication between remote employees

is uncommon. Even businesses that make extensive use of video conferencing
systems often discover that they are unable to entirely replicate the camaraderie
that develops when employees work together in an office setting. There are less
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opportunities for spontaneous discussions. You get less knowledge about the
individuals with whom you work. Businesses with distributed teams must take
initiatives to bring their teams together and support their collaboration.
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●● A Requirement for a Greater Concentration on Communication. Because your

teams will be unable to speak with one another as they would in an office setting,
you must provide them with the tools and procedures necessary to guarantee
that they communicate actively. Whether it means establishing a slack channel,
scheduling daily conversations, or just encouraging people to email each other
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fresh information often, communication is critical for virtual firms to succeed.

●● Risks to One’s Reputation. A badly managed virtual workforce may have a
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detrimental effect on your reputation. Some prospective clients may be hesitant

to collaborate with a firm that operates from a virtual office with remote personnel
and may thus regard your startup less seriously.
●● Concerns about security and compliance. Working remotely entails exchanging a
great deal of data. In certain areas (medicine, finance, etc.), startups may find it
(c
too hazardous to pursue a virtual organisational architecture.

Understanding how the downsides of virtual recruiting might outweigh some of the
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benefits is crucial to choosing the best choice for your firm.
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2.4 Cost Breakdown Structures and Budgeting
Before beginning any project, it is critical to do thorough planning. Defining the
scope of work and estimating the time and resources required to complete the project
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are critical components of the planning process because they serve as a foundation for
the next critical step: calculating project expenses.
While early estimates are unlikely to be completely correct, they may be improved
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by providing a full project cost breakdown. It may be utilised at various stages of project
planning, from a rough estimate to a solid prediction of the ultimate cost, depending on
the accuracy level.
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Cost breakdowns of projects may be used for the following purposes:
●● Estimating labour expenses, evaluating the profitability of a project, and so on.

●● Coordination of anticipated project expenses with customers and obtaining final
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approval of the pricing.
In any case, the cost breakdown must be clear and logically structured. While
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creating a clear and accurate cost breakdown is a time-consuming effort, it is necessary
for future communication with customers and a better knowledge of how expenses may
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be handled over the course of the project.
Structuring Project Costs

The first step in developing a transparent project cost structure is identifying the
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project’s critical components:
●● Cost drivers include products, units, specialised tasks or services, and so on;
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●● Amounts: the quantity of goods, the quantity of materials, and the quantity of
labour time;
●● Overhead, or hidden expenses: charges that do not add value directly but have an
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indirect effect on project work processes.

Depending on the goal of your project’s cost breakdown and the type of the project,
you may categorise the cost data as follows:
●● By time periods: this data segmentation may be used to estimate expenditures

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on a monthly, weekly, or quarterly basis. Typically, it is used in conjunction with

process grouping and contains a total for the whole project;
●● When no time breakdown is needed, it is typical to structure cost data by cost
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category. This assists in identifying significant cost drivers and their impact on the
final amount. Additionally, this strategy is preferable when the objective is to define
the manageability of certain cost components and to identify solutions to reduce
the overall cost.
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In terms of cost categories, the following are often used to structure the
components that contribute to the project’s ultimate cost:

●● Labor expenses, sometimes referred to as direct costs, are the costs associated
Notes
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with workers’ time spent providing services or executing manufacturing tasks on
a project. They may be incurred in the form of labour hours compensated at a set
rate of compensation or as a fixed cost per item, unit, or service.
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●● Expenses associated with subcontracting / outsourcing are sometimes handled as
direct costs and are other times included as a distinct category in cost structures.
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Again, they may be incurred based on the amount of time an outsourced team
spends working and their pay rates, or as a set cost for certain goods or services.
●● Material costs are the costs of raw materials, components, and supplies acquired
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for use in the performance of project activity. Occasionally, this cost category also
includes insurance, customs clearance, and other expenses associated with the
acquisition of supplies and commodities.
●● Logistics expenses are related with the storage and transit of acquired commodities
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and comprise subcomponents such as transportation, storage, and distribution.
●● Overhead expenditures cannot always be attributed to a single cost source and
do not directly generate profit. They do, however, have an indirect effect on project
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results by enabling or boosting the efficiency of business processes.
Cost Structure Mistakes That Are Frequently Made

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As we can see, determining everything that must be included in a project’s cost
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breakdown is a painstaking process. As with any job that involves the possibility of
human mistake, project cost structuring may be impacted by the notorious human
element. As a consequence, estimating accuracy is poor based on the cost breakdown,
estimates alter throughout the course of the project, and unanticipated expenditures are
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significant. Several frequent errors to be aware of and prevent include the following:
●● Omitting some cost drivers.

While thoroughly reviewing final price components is an important part of the cost
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estimating process, certain cost drivers may be overlooked - this is most often
the case with expenditures that may be classified into several categories or with
overhead costs.
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●● Leaving out regular tasks such as communications, organisational and

administration from the final cost estimate.
Although these activities are difficult to estimate and are seldom regarded a direct
cost driver, they should not be excluded from the cost structure. A fair method to
manage them is to provide an approximate cost with the caveat that the ultimate cost
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will depend on the amount of time spent on these tasks.

●● If you’re utilising the cost breakdown for internal reference, omit non-billable labour.
)A
The ratio of billable to non-billable work determines a project’s profitability; thus, if

you’re doing a cost breakdown analysis for profitability purposes, ensure that you
account for all sorts of project-related non-billable labour.
2.4.1 Cost Breakdown Structure

(c
A Cost Breakdown Structure (CBS) is a project management phrase. It is

inextricably tied to the concept of a Work Breakdown Structure (WBS). The work

breakdown structure (WBS) represents all of the tasks that must be completed
Notes
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throughout the course of a project. The CBS indicate all cost categories that must be
acquired in order to complete jobs.
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Importance of CBS
●● You will have a greater sense of control over your costs and finances.
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Splitting expenditures into logical expense categories simplifies cost management.
This enables you to readily see your commitments in connection to the expenditure
within a cost category (as apart from the total budget).
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●● You have a greater understanding
Allocating money to cost categories also gives insight into the amount spent in each
cost category. This information is critical in determining how you are tracking against
a budget. You’ll get the understanding necessary to make critical business choices.
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●● You may use it as a price guide (also that you do not miss anything)
Frequently, a client’s sales quote is based on a cost estimate split down into cost
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categories. Having a thorough understanding of real costs from previous budgets
may help improve the accuracy of cost estimates. Additionally, it might operate as a
safeguard to guarantee that all expenditures are collected. It is critical to verify that
the cost basis is accurate in order to get the desired profit margin.
●●
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It assists you in determining deviations from your strategy.
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A well-structured cost breakdown structure gives insight into over- or under-spending
in comparison to your initial budget. A well-structured system makes it simple to
comprehend discrepancies. When you identify deviations from plan within a cost
category early on, it becomes simpler to make the appropriate improvement choices.
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Someone may have made an error. Certain cost aspects may have been omitted
from the initial scope. If this happens, the customer may be charged for the expense.
Additionally, you will immediately find places where you may cut costs to guarantee
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you remain on track.
Cost Breakdown and Estimation Techniques for Projects

The cost breakdown of a project may be utilised to provide more precise
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estimations of the final numbers in a variety of project estimating approaches. We

previously discussed project estimate methodologies and their application to project
planning. Now, let’s look at how we might apply project cost breakdown to them.
●● Expert judgement: when utilised to compensate for a lack of clarity in the current cost
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breakdown, expert opinion may have an effect on cost drivers when greater predictability
is necessary. While this technique produces more precise predictions, considerable
variations between the anticipated and actual figures are still conceivable.
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●● Analogous estimating: comparing estimates based on cost breakdowns for earlier

projects to new comparable ones enables the estimation process to be improved and
the project’s costs, profitability, and overall result to be more accurately assessed.
●● Bottom-up analysis: project costs are estimated using the costs of individual
(c
jobs, services, and product components. Accuracy is obtained by accounting for

all cost drivers, including normal maintenance expenses, overhead, and potential
extra expenditures.

●● Top-down analysis: a top-down cost structure may be used to provide an estimate

Notes
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of the ultimate cost. It is critical to consider in different extra expenditures not
included in the first estimate while utilising it.
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●● Parametric estimating: this estimation approach is appropriate for cost structures
with predictable and quantifiable cost drivers. Different parameters may be
approximated with a high degree of accuracy using existing data.
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Cost Breakdown of a Project Using Various Pricing Models
There are several ways to project and service pricing. The varieties of pricing are
determined by the nature of the projects, the prevalent practises in certain professions
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and businesses, and the market climate. With any pricing method, an accurate cost
breakdown of the project is critical to the project’s success and client satisfaction.
Consider the following examples of how it may be utilised with various price structures:
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●● Costs incurred as a result of delivered services and materials: a precise cost
breakdown – both estimated and final – is critical for customer communication, as
it serves as the best explanation of what they are paying for.
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●● Cost per package: Customers pay a fixed price for a certain set of works, services,
and/or goods when this pricing technique is employed. That is why it is critical to
present consumers with a clear image of the billable labour associated with each
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package they purchase, and a cost breakdown seems to be the most effective method
of illustrating where billable time is spent. Internally, cost breakdown structures for
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each package may be utilised to analyse and alter existing package price.
●● Fixed price: since clients initially only know the ultimate cost, you may need to
create a cost breakdown for them. Customers often express concern about paying
an excessive price, and detailed cost breakdown data helps explain the project’s
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precise cost. Additionally, cost breakdowns may be utilised to do internal profitability

analysis on projects. It should be focused on pay rates, company expenses,
operational / administrative costs, and everything non-billable tasks in this scenario.
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2.4.2 RBS - Resource Breakdown Structure

According to the Project Management Institute (PMI), project data consists of two
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components. One is the work breakdown structure, which identifies the tasks necessary
to fulfil the project’s deliverables, and the other is the resource breakdown structure, which
identifies the resources required to perform each job. The resource breakdown structure is
a comprehensive listing of all the resources required to finish a project. This list contains
funds, supplies, equipment, real estate or other property, and human resources.
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A Structure for Resource Decomposition During the project planning phase, the
Project Management Practitioner (PMP) is responsible for developing an RBS. Creating
the resource breakdown structure requires meticulous attention to detail and a thorough
)A
understanding of the project from the inside out. The resource manager should offer
accurate estimates for all parts of the project.
When the RBS is approved by the project manager, the team, and the customer,
it may be implemented into the project process. The resource split structure will assist
(c
in tracking expenses, monitoring each team member’s work, offering assistance and
providing unambiguous feedback to critical project components.

The significance of resource breakdown structure in project management

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The resource breakdown structure is a tree diagram that depicts the organisation
of the project’s resources. It may be used in conjunction with the Work Breakdown
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Structure (WBS) to describe the allocations of work packages. It assists in identifying
project supplies, tools, equipment, software, and other factors required for budgeting
and charge estimation. Additionally, an RBS provides project managers with visibility
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into the resource functions and resource types engaged in the project, making it simpler
to mitigate risks throughout the length of the project.
By establishing a resource breakdown structure, you may also reduce uncertainty
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and volatility in the supply of resources. The firm may manage resources more
responsibly and also improve the visibility of the project management process.
Additionally, an RBS enables project managers to be more organised and efficient.
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They may then concentrate on more vital duties, allowing them to see the larger picture.
Resource breakdown structures also contribute to an organization’s harmony by allowing
for greater visibility of resources and more accurate project completion forecasts.
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Example of a resource breakdown structure and its categories
●● Human capital
Human resources refer to the individuals that comprise your team. They might be
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classified according to the manner in which the project will be carried out.
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This area allows you to identify the specialists who are accountable for completing
the assignments. Additionally, you might specify the time they are available to do
their duties. As an example, suppose a business is about to launch a digital product
as a deliverable for a project. The following is an example of a human resource list:
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●● Henry is the project manager.

●● Two website designers: one for coding and one for user experience, for a one-
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month period - Sarah and Tom

●● Two content writers: one for blog articles and one for news, posting twice a
week - Rex and James
●● One marketing assistant for campaigns and email blasts to target segment,
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weekly - Simon
●● One salesman for organising digital sales, daily - Tess
●● One logistics coordinator for delivery and fulfillment, daily – Charlie
●● One customer support professional on a daily basis to address after-sales and
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product questions - Drake

●● Equipment or tangible personal property
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The next section discusses the physical resources that will be required to finish
the project. It may consist of huge goods (such as cars, particularly when building
is involved), or it may consist of little items such as office supplies and other
consumables. These are also classified as leased or owned, which allows for the
calculation of charges and other fees.
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If you are the project manager for the aforementioned project, you may need the
following equipment:

●● Leased desktop PCs or laptops for $X

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●● Projectors, leased for $X
●● Purchased smartphones for $X
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●● Tablets rented for $X
●● Printer purchased for $X
●● Information and technological advancements
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Information and technology are another sort of resource. This list includes resources
for design, blueprints, paperwork and contracts, and project management software.
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These are intangible tools or applications that businesses must employ in order to
manufacture or construct project deliverables. They are typically resources engaged
in the design phase, with the exception of project management software, which is
utilised throughout the project to streamline the process from start to completion.
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Additionally, this tool must disclose the number of users, whether they pay a premium
or subscription cost, and the users’ identities. This set-up illustrates a breakdown of
information and technological resources:
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●● Software for newsletters, VIP account $X
●● Project management software, premium account $X
●●
●●
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Invoicing software, connected with the website, FREE
Customer support, FREE
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●● Campaign materials design tools, monthly membership $X
●● The location or facility
Another type of resources pertains to the places or locations where enterprises
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operate. This resource includes the warehouse, project site, office, meeting rooms,
and conference rooms. These may be storage or manufacturing facilities, or offices on-
site where team members might congregate. Additionally, they may have conference
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rooms in which management may meet with customers and suppliers. Indicating
whether these locations are free to use or are subject to a leasing agreement may
also assist in controlling budget expenditures.
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A guide for project managers on how to create a successful RBS

●● Create the RBS on the basis of a sound resource management strategy.
Resources may be readily managed if a thorough resource plan is created during the
project’s planning phase. While a resource breakdown structure template is only a guide,
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it provides a solid foundation for developing your RBS. Additionally, this will guarantee
that you have the required resources to begin the job. A good resource breakdown
structure based on resource planning may also help you determine which resources are
)A
interdependent and which gaps need extra or intensive resource consumption.

When an RBS is developed early in a project’s planning phase, it may be utilised to
notify consumers about the resources that will be needed. By eliciting feedback from
your team, you may also establish a sense of ownership among the group. This is
(c
critical for ensuring that expectations are reasonable and for creating openness in
the project’s execution.
●● Manage human resource assignments effectively
Even though human resources are the most critical component of a project, working
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with and managing people may be tough at times. Allocating the appropriate
personnel to certain projects may be challenging, even more so when personnel
are allocated to many projects. It is critical to identify which workers are assigned
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to which projects at any one moment and to verify that each is operating with the
resources available to them.
The project manager is accountable for ensuring that their staff are not overbooked
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and that their skill set is complementary to the project objectives. Verify your human
resource assignments across many projects by mapping roles and choosing
personnel who are qualified to do the assigned activities. Consider a variety of
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factors while doing so, including their experience, present responsibilities, and their
cost and seniority within the firm.
●● Maintain an eye on resource availability.
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Assigning the appropriate individuals to each project is one of the most difficult aspects
of project management. It demands great judgement, the capacity to scrutinise every
aspect, and effective managerial abilities. When monitoring resource availability, be
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careful to weigh the benefits and drawbacks of allocating jobs and using certain
pieces of equipment or facilities that may affect the total cost. Recruiting fresh
personnel or investing in new equipment is not always the best course of action.
Spending money on training new employees or material things with a deteriorating
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worth that are only useful for a single project might be counterproductive.
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●● Consider the dangers associated with resource scarcity.
Each endeavour involves some level of risk. Resource hazards occur if there are
insufficient or no resources available to produce the deliverables. To mitigate this
risk, you may include a resource risk management strategy into your RBS. Identifying
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these dangers and the variables that contribute to them will aid in the analysis of
potential remedies and their effect. If risks are foreseen, risk action plans may be
developed to manage and mitigate unanticipated occurrences that occur over the
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course of the project’s execution.
2.5 Activity on Arrow Diagram, Numbering the Events

(Fulkerson’s rule), Activity on Node Diagram, Critical Path
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Determination, Project Gantt Chart

The first step in developing a workable project schedule is activity organisation. A
network diagram is one method of organisation. This is a tool for visualising the actions
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that occur over the duration of a project.
Network diagrams are classified into two types: arrow diagrams and precedence
diagrams. Consider the former, also known as activity on node or activity on arrow.
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In project management, what is an arrow diagram?

Arrow diagrams are used during the planning stage of project management to
arrange activities denoted by arrows in order to fulfil deadlines and use the appropriate
resources at the appropriate time.
(c
The tail of the arrow represents the start of an action, while the pointed end
represents its conclusion. The length of the arrow indicates the duration of the action

(scaled to fit on the presentation chart). These activities are linked at nodes, which are
Notes
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shown by circles on the figure. These linkages show the sequence in which the project’s
tasks must be completed.
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What Is the Importance of Arrow Diagrams?
The arrow diagram is vital for the project timeline because it enables the critical route
to be determined. The critical path diagram depicts the time of each dependent job and is
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used to determine the most efficient schedule while still meeting the project’s objectives.
Creating a timetable for a project allows you to arrange tasks and determine not
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only when they must be finished, but also which ones must be performed and which
may be skipped while still reaching the project’s goals and objectives. This is why it is
critical to include an arrow diagram. It results in the most optimal timeline for the project.
However, arrow diagrams do more than plot the most efficient path from start to
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end on a project. Additionally, they identify potential schedule and resource conflicts
and how to handle them. Additionally, it might indicate areas where extra resources
could expedite the project’s completion!
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Why Are Arrow Diagrams Created?
An arrow diagram illustrates the stages required to complete a project or progress
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and the sequence in which they must be completed. It indicates how long each of those
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processes took. Reaching deadlines is critical to the success of any project, and an
arrow diagram aids in meeting those deadlines.
This approach simplifies the process of determining the order of events in a

project, enabling project managers to maximise efficiency while still adhering to the
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project’s schedule. It is a scheduling tool, but it also aids in the monitoring of a project’s
progress. It is advantageous, particularly when working with big projects including a
large number of interconnected activities.
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The Various Forms of Arrow Diagrams:
Arrow diagrams are classified into two types: the arrow network (also known as
activity on arrow (AoA)) and the node network (also known as activity on node (AoN),
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also known as a precedence diagram.
●● Diagram of the AoA

This is the diagram we’ve been discussing; it depicts actions via the use of arrows.
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These arrows are then linked by nodes, with the rear of the arrow representing
the start and the front representing the finish of the action. The length of the arrow
represents the time of that action, scaled for the diagram. This diagram type solely
depicts the finish-to-start relationships between activities.
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●● Diagram of the AoN

Nodes reflect the actions in this sort of graphic. Arrows are then used to link the nodes.
These arrows indicate the connection between the activities. Unlike the previous
diagramming, this one allows for the display of all four kinds of dependencies—finish
(c
to start, start to start, finish to finish, and start to finish.

Example of Activity on a Node Diagram:

Let us demonstrate this node diagram with a simple project—constructing a

Notes
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deck for a home. To begin, build a three-column table. On the left, the task’s name
and an identification number or letter are listed, followed by a column indicating the
immediately preceding action (IPA), and finally, the task’s length in days or whatever
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time period is suitable is shown. Our deck design would be as follows:
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O
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Following that, construct a box or node that is divided into two halves. The first
section contains the task names, while the second section has the job durations. Begin
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on the left with an empty node. Then, for the following node, add an arrow pointing to
the right. If many actions, such as filing the permission and buying supplies, may occur
concurrently, they are stacked. Like a result, our deck activity on the node diagram
would appear as follows: r
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Example of an Activity on an Arrow Diagram:
We’ll utilise the same project and table for the activity on the arrow diagram. The
fundamental notion is same, except that the arrows indicate activities on the diagram.
Otherwise, this diagram is constructed similarly to the previous one and appears as follows:
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m
)A
Numbering the Events (Fulkerson’s rule)

Generally, network diagrams are designed in the order in which activities are
performed. Nodes are provided to denote the completion of one or more actions
and the commencement of another or additional activities. If the network design is
(c
complicated, it seems that it will be tough to number the events. To do this, we use
Fulkerson’s rule to number the occurrences.

The following are the steps that must be taken to comply with the rule:
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(1) The initiating event, that is, the action that has no preceding activity, is
designated as J’. Other events are numbered sequentially from left to right.
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If there are many beginning events in the diagram, they must be numbered in
ascending sequence from top to bottom. In any scenario, no two occurrences
may have the same number.
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(2) By examining all the activities that emanate from the diagram’s event J’, one
or more starting events with no preceding activities are identified. These
occurrences are numbered in accordance with the rule (1)
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(3) Repeat step (2) for freshly numbered events, and so on, until an event with no
activity emanating from it is discovered. That is the highest-numbered event in the
graphic.
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Example 1:
Using the Fulkerson rule, number the events in the network shown below:
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1. Event an is the beginning or initiating event; hence, it is numbered 1.
2. Because activity K emerges from a and terminates at event h, the conclusion of
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activity will be designated as the new beginning event, which will be designated as 2.
3. Two new beginning events 3 and 4 are generated by ignoring the endpoints of these
activities c and d.
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4. Using the same approach as before, but excluding the endpoints e, f, g, and h of
activity N, O, F, Q, R, S, and T, new events 5, 6, 7, and 8 are put in circles, resulting
in the numbered network diagram shown below:
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)A
Activity on Node Diagram

Activity-on-node is a project management phrase that refers to a form of
precedence diagramming in which schedule activities are denoted by boxes. These
numerous boxes or “nodes” are linked with arrows from beginning to finish to illustrate
a logical evolution of the schedule activities’ interdependence. Each node is assigned a
(c
letter or number that corresponds to a project activity on the schedule.

Typically, an activity-on-node diagram will be used to illustrate which actions

Notes
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must be accomplished before proceeding to the next. This is referred to as “finish-to-
start” precedence, which means that one task must be completed before proceeding
to the next. The graphic below illustrates how tasks A and D must be completed
in
before activity E may begin. Additionally, different versions of this sort of graphic are
available. For instance, a “start-to-start” diagram is one in which the predecessor
action must be begun rather than finished completely before the successor activity may
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be commenced.
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An activity-on-node diagram may be used to visualise the network logic behind an
entire project’s schedule. Alternatively, it may be used to represent any smaller piece
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of the schedule that lends itself to representation as having a definite beginning and
conclusion. To keep the diagram’s logic simple, it can be best to include just key route
scheduling events. The graphic legend may additionally provide the intended start date
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for each node in accordance with the project management timetable.
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Critical Path Determination
The critical path is the longest series of actions required to finish a project in project
management. The critical path tasks are referred to as critical activities because if they
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are delayed, the whole project would be delayed.
The critical route analysis is vital for project managers because it enables them to:
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●● Estimate the overall time of the project accurately

●● Determine the interdependence of tasks, resource limits, and project hazards
●● Prioritize projects and develop work plans that are practical.
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To determine the critical path, project managers use the critical path method
(CPM) algorithm to determine the shortest time required to finish each job with the least
amount of slack.
The critical path method (CPM) is a strategy that project managers use to develop
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a project schedule and predict the project’s overall length.
The CPM approach, also known as critical path analysis (CPA), involves
graphically representing the sequences of activities required to accomplish a project
)A
using a network diagram. After these job sequences or pathways are created, their
durations are computed to determine the critical path, which ultimately determines the
project’s entire time.
(c
Why Is CPM Required for Project Management?

Projects are composed of tasks that must be completed according to a timetable in

order to achieve a deadline. It seems straightforward, but without outlining the work, the
Notes
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scope of the project may easily spiral out of control, throwing the project off course.
When managing a project, the critical path technique is vital because it identifies
in
all the activities required to finish the project and then decides which jobs must be
completed on time, which may be postponed if necessary, and how much float or slack
you have.
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When performed effectively, critical path analysis may assist you in the following ways:
●● Determine the interdependence of tasks, resource limits, and project hazards
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●● Estimate the length of each activity precisely.
●● Prioritize jobs according to their float or spare time to aid in project scheduling and
resource allocation.
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●● Determine which jobs are crucial and ensure they are performed on schedule.
●● Monitor the progress of your project and the deviation in the timetable.
●● Utilize scheduling strategies such as crash duration or rapid tracking.
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CPM’s Critical Elements:
Before we learn how to compute the critical path, it’s necessary to grasp certain
fundamental CPM ideas. r
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●● The earliest possible start time (ES) is simply the earliest possible start time for a
job in your project. This cannot be determined without first determining if there are
any task dependencies.
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●● The latest start time (LS) is the exact last minute at which you may begin a work
without jeopardising your project’s timetable.
●● The earliest finish time (EF) of an activity is determined by its length and the
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earliest start time.

●● The latest completion time (LF) is the latest time at which an activity may be
finished, given its length and latest start time.
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●● Float: Also known as slack, float is a phrase that refers to the amount of time that a
job may be delayed without affecting its task sequence or the project timeline. The
critical route jobs have no float, since they cannot be postponed.
Consider these critical route analysis examples to help you better comprehend
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these critical path analysis aspects.
Examples of Critical Paths

)A
Here is an example of a CPM diagram. Although this is a high-level diagram,

it might assist you in visualising the significance of a crucial route in a project’s
timetable. For the time being, we’ll utilise this critical path diagram to illustrate the CPM
method’s components.
(c

Notes
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in
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As seen in this critical route diagram, project activities are denoted by letters, while
the critical path is highlighted in green. F, G, and H are non-critical tasks that have float
or slack. Additionally, we can discover task interdependence across key route activities
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and between parallel tasks (A, F, and G) or (A, H, and E).
Project Gantt Chart

A Gantt chart is a popular visual representation of a project’s timetable. It is a
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sort of bar chart that depicts the start and end dates of several project components,
including resources, planning, and dependencies.
The Gantt chart was invented by Henry Gantt (1861-1919), an American
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mechanical engineer.
In project management, the Gantt chart is the most often used chart. These charts
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are beneficial for organising a project and identifying the order in which activities must
be completed. The chart is often shown as a horizontal bar chart.
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Horizontal bars of varying lengths depict the project’s chronology, which may
contain task sequences, durations, and start and finish dates for individual tasks.
Additionally, the horizontal bar indicates how much of a work remains to be completed.
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A Gantt chart is used to organise, manage, and track specific tasks and resources
within a project. The timeline diagram depicts the project’s progress across time,
including both planned and accomplished work. The Gantt chart assists project
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managers in expressing the status or plans of a project and also assists in ensuring the
project stays on schedule.
The length of the bar is related to the time required to complete a job. The vertical
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axis depicts the project’s tasks.
The Advantages of a Gantt Chart:

The chart indicates which tasks may be completed concurrently and which cannot
be begun or completed until others are completed. It may assist in identifying possible
m
bottlenecks and jobs that have been omitted from the project timetable.
The graphic illustrates task slack time, or excess time required to complete a
)A
job that should not cause the project to be delayed; noncritical activities that may be
postponed; and critical activities that must be completed on time.
Gantt charts are useful for project management of all sizes and sorts. These might
involve the construction of dams, bridges, and roadways. Additionally, they may include
software development and other technologies. Gantt charts may be designed using
(c
project management tools such as Microsoft Visio, Project, SharePoint, and Excel, or
specialist software such as Gantto or Matchware.

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in
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Example of a Gantt Chart:
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If the project involves the installation of new software on a server, the required
project activities include performing research, picking a software package, testing the
programme, and installing it. A significant milestone is software selection. These duties
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are shown on the chart as vertical lines.
Assume the project will last 40 days. Each activity takes ten days to accomplish
and is interdependent on the preceding task. Testing software in development and
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test environments is crucial. Horizontal bars represent the task’s start and finish
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dates, length, and milestones. The horizontal bars also indicate the proportion of work
performed for each assignment.
2.5.1 Project Activity Sequencing

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While drawing up a project plan, activities that need to be carried to complete the
project scope are finalized. These activities must be performed in an order. The reason
for carrying out these activities in an order is because
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●● A few of the activities will be interdependent

●● Hence these would be required to wait till the concerned dependent activity completes
●● A few of the activities will start together and a few others will end together
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●● Thus is it vital that a sequence of the project activities be created.

Sequencing of project activities is created with Sequence Activities process.
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Sequence Activities
●● Method of recognising and recording relationships among the project activities
●● Advantage is it defines the logical sequence of work to obtain the greatest
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efficiency given all project constraints

●● The inputs, tools and techniques, and outputs of this process are depicted in the
figure below:
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Within the sequence activities there are the following kinds of relationships:
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1. Sequence Activities: Finish-to-start (FS)

The previous task has to be finished before the succeeding task can be begun.
Example: ‘’The water must be boiled before adding coffee powder’’.

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2. Sequence Activities: Finish-to-finish (FF)

The previous task has to be necessarily completed prior to the completing of the
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subsequent task.
An example might be ‘’To finish cooking the rice before the sambar’’.
3 Sequence Activities: Start-to-start (SS)

The previous task needs to start prior to the beginning of the succeeding activity.
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An example is ‘‘I need to start creating the specification document before I can start
editing it’’.

4 Sequence Activities: Start-to-finish (SF)

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This is used rarely – the succeeding task needs to commence prior to the completion
of the previous task.
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A possible example could be: ‘‘my new computer must have all personal files and
applications transferred and working before I wipe the hard drive on my old PC ready
for refurbishment’’
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Summary
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●● Once the project’s scope and deliverables are defined, the work may be split into
smaller and smaller work pieces. The work breakdown structure is the result of this
hierarchical process (WBS). The work breakdown structure (WBS) is a road plan for
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the project. The use of a work breakdown structure (WBS) enables project managers
to ensure that all products and work pieces are defined, to integrate the project with
the existing organisation, and to develop a control framework. Essentially, the WBS is
a high-level overview of the project with several degrees of detail.
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●● The PMI’s Project Management Body of Knowledge (PMBOK) describes the Work
Breakdown Structure as a “deliverable-oriented hierarchical breakdown of the
work to be performed by the project team.” There are two kinds of work breakdown
structures: deliverable-based and phase-based. The technique that is most often
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used and recommended is the Deliverable-Based approach. The primary distinction

between the two techniques is in the Elements specified in the WBS’s first Level.
●● The OBS classifies the organization’s sub deliverables hierarchically into
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increasingly smaller pieces. Often, the conventional organisational structure

is appropriate. Even if the project is entirely completed by a team, it is required
to deconstruct the team structure in order to assign accountability for budgets,
timelines, and technical performance.
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●● In business, the majority of tasks are undertaken with the intention of generating
revenue. This demands that the project earns or saves more than the project’s
expenditures. A project costs money until it is completed and then starts to benefit
the company’s bottom line. Additionally, each year, a corporation has a certain
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amount of money to spend on initiatives.
●● Analogous estimating is another term for top-down estimating. It entails using the
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estimators’ expertise or historical data from past projects to a current project or sections
of a project by adapting observed cost, time, or resource requirements. Analogous
estimation eliminates the need for data modification and statistical adjustments.
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●● A consensus estimate is a prediction of a company’s forecasted income built
on the total calculations of all equity experts monitoring the stock. Consensus
estimates are the company’s revenue averaged out, with the actual earnings of
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a stock. Generally, analysts and experts forecast an organisation’s earnings per
share (EPS) and revenue for the quarter, the running fiscal year (FY), and for FYs
in the future.
●● Apportioned Method Estimating technique is familiar to anybody who has
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borrowed money from a bank to construct a home. Banks and the FHA (Federal
Housing Administration) sanction payment to the contractor based on the
completion of various portions of the home, based on a projected total cost for
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the house. For example, the foundation may account for 3% of the entire loan,
frame 25%, electric, plumbing, and heating 15%, and so forth. As these tasks are
finished, payments are paid.
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Bottom-up estimating is a technique for estimating project time or cost by
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combining estimates from lower-level WBS components. When the time of
an activity cannot be anticipated with an acceptable degree of certainty, the
work within the activity is broken down further. The durations of the details
are approximated. The total amount for each of the activity’s durations is then
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calculated using these estimations. There may or may not be relationships

between activities that impact resource application and utilisation. If there exist
dependencies, the projected needs of the activity reflect and record this pattern of
resource utilisation.
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●● The intention to “have a 95 percent possibility of meeting time and cost

projections” is a common remark in the profession. For creating time and cost
estimations, previous experience is an excellent beginning point. However, in
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order to attain the 95 percent confidence threshold, prior experience estimations

must nearly always be modified by additional factors. The accuracy of estimations
will be heavily influenced by factors relating to the project’s uniqueness. To
increase the quality of project time and cost estimates, project, personnel, and
external issues must all be addressed.
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●● The Organization Breakdown Structure connects project activities or “work

packages” to the organization’s structure by grouping them together. The
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Organizational Breakdown Structure (OBS) is used to establish project

management, cost reporting, billing, budgeting, and project control duties. The
OBS gives the project an organisational rather than a task-based view. The OBS’s
hierarchical structure enables project data to be aggregated (rolled up) to higher
levels. When project responsibilities and work assignments are determined, the
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OBS and WBS are linked, allowing for strong analytics to monitor project and
workforce performance at a large level (for example, business unit performance)
or down to the smallest detail (example user work on a task).

●● A functional structure is a sort of organisational structure in business that

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divides an organisation into distinct divisions based on areas of competence.
These departments act as functional units under the supervision of functional
managers or department heads. Within each department, team members report
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to department heads, who in turn report to the company’s senior management,
keeping them informed of the condition of their functional areas.
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●● The project structure will consist of three layers: a strategic layer comprised of
executive sponsors and main stakeholders; a tactical layer comprised of clinical
and technical members of the team and their execution; and a management
layer comprised of project management. As previously stated, clinical/operational
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leadership is critical and should be responsible for strategic project direction.
●● Before beginning any project, it is critical to do thorough planning. Defining
the scope of work and estimating the time and resources required to complete
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the project are critical components of the planning process because they serve
as a foundation for the next critical step: calculating project expenses. While
early estimates are unlikely to be completely correct, they may be improved by
providing a full project cost breakdown. It may be utilised at various stages of
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project planning, from a rough estimate to a solid prediction of the ultimate cost,
depending on the accuracy level.
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A Cost Breakdown Structure (CBS) is a project management phrase. It is
inextricably tied to the concept of a Work Breakdown Structure (WBS). The work
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breakdown structure (WBS) represents all of the tasks that must be completed
throughout the course of a project. The CBS indicate all cost categories that must
be acquired in order to complete jobs.
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●● According to the Project Management Institute (PMI), project data consists of

two components. One is the work breakdown structure, which identifies the
tasks necessary to fulfil the project’s deliverables, and the other is the resource
breakdown structure, which identifies the resources required to perform each job.
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The resource breakdown structure is a comprehensive listing of all the resources

required to finish a project. This list contains funds, supplies, equipment, real
estate or other property, and human resources.
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Glossary
●● Planning: The development of a course of action to pursue goals or objectives.
●● Opportunity: In project management, an opportunity is a possibility that can
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contribute to project objectives. Opportunities in project management are classified

as a type of risk.
●● Risk sharing: Risk sharing involves handing ownership of a positive risk to a third
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party who is typically specialized and better able to realize the opportunity.
●● Quality: In project management, quality is a measure of a deliverable’s degree
of excellence. Quality may also refer to a clearly defined set of stakeholder
requirements by which results are assessed.
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●● Start-To-Finish: In a start-to-finish relationship, a successor activity cannot finish

until a predecessor activity has started.

●● Time limit: The time limit for a task is the window of time or deadline by which it
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must be completed.
●● Quality control: The use of standardized practices to ensure that deliverables
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meet stakeholder expectations. It involves not only the definition and identification
of unacceptable results but also the management of processes to optimize results.
●● Soft project: A soft project does not have a physical output.
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●● Testing: The testing phase involves assessment of the product developed so as
to gauge quality and performance and to determine whether requirements have
been met.
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●● Scope: The scope of a project constitutes everything it is supposed to accomplish
in order to be deemed successful.
●● Task: In project management, a task is a unit of work or activity needed for
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progress towards project goals.
●● Remote team: A remote team’s members work in collaboration, usually
electronically, from different geographic locations.
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1) The ________________________ organises all of the project’s mechanisms into a
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hierarchical structure and determines their linkages to the project’s end item.
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a) work breakdown structure
b) analogous estimating
c) Cost and Time Estimating Methods
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d) None of the above

2) _________________ is the practise of anticipating or making an educated guess
about the time and money required to whole project deliverables.
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a) Planning
b) Estimating
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c) Budgeting
d) All of the above
3) ____________________ defines one of the concepts, that is crucial for the smooth
running of an organisation. Name that concept.
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a) Planning
b) Management
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c) Coordination
4) In which step of the planning process, the best and most possible plan will be chosen
to be executed.
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a) Selecting an alternative
b) Evaluating alternative course of action

c) Setting up objective
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d) Developing Premises
5) In which step of the planning process pros and cons of each other is examined.
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a) Developing Premises
b) Setting up Objective
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c) Evaluating alternatives course of action
d) Selecting an alternative premises
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6) Making expectations for the future is called _________________.
a) Making policy
b) Setting planning premises
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c) Making derivative plans
d) All of the above
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7) The composite plan which includes setting up a long-term objective, finding a course
of action, and allocation of resources is called _____________________.
a) Programme
b) Strategy r
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c) Procedure
d) Policy
8) Standardised way in which a task has to be achieved is called ___________________.
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a) Procedure
b) Strategy
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c) Policy
d) Method
9) Organisations’ own customised way of handling difficulties or making decisions is
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called __________________.
a) Budget
b) Policy
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c) Rule
d) Strategy
10) ______________ and __________ type of plan is interwove with each other.
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a) Policy and procedure

b) Objective and policy
c) Policy and Rule
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d) Objective and Method

11) Which of the following form of plan do not allow for any flexibility or discretion?
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a) Rule
b) Policy
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c) Strategy
d) Procedure
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12) While guiding organization members in suitable directions, a manager exhibit
______________
a) Consideration behavior
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b) Authoritarian behavior
c) Theory y behavior
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d) Leadership behavior
Exercise
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1. Define Work Breakdown Structure.
2. Explain the Cost and Time Estimating Methods.
3. What is Analogous Estimating?
4. What is Group Consensus Estimates?
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5. What is Monte Carlo?
6. What is Apportioned Method Estimating?
7. What is Bottom-Up Estimating.
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8. Define Quality of Estimates.

9. Why is organisation and Project Team Structure important? Explain.
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10. Define Functional Structure.

11. Define Project Structure.
12. Define Matrix Structure.
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13. Define Virtual Team.

14. Define Cost Breakdown Structure.
15. What is Resource Breakdown Structure?
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16. What is Project Activity Sequencing?
Learning Activities
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1. What is included in a resource breakdown structure?

2. What is the most accurate method of cost estimation?
3. What makes Monte Carlo unique?
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1. a)

2. b)
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3. a)
4. a)
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5. c)
6. c)
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7. b)
8. d)
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9. b)
10. a)
11. a)
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12. d)
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1. Eric S. Norman: Work Breakdown Structures, John Wiley & Sons Inc, First
Edition.
2. Dan Simon: Optimal State Estimation, John Wiley & Sons Inc, First Edition.
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3. Arun Kejariwal and John Allspaw: Art of Capacity Planning, Shroff/O’Reilly,
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2017 Edition.
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Module - III: Project Process

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●● Project Planning: Planning Steps
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●● Business Case
●● Who Is the Sponsor?
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●● Project Charter
●● Triple Constraint or Six Constraints
●● Master Plan
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●● Phases Of Projects: Project Process Groups
●● Iniation
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●● Planning
●● Execution
●● Monitoring and Controlling
●● Closing
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Introduction
To compete in a global market characterised by fast change, innovation, and short
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time to market, firms must manage an increasing number of projects. Some mechanism
for coordinating and managing projects is required in this ever-changing environment.
The practical result has been the centralization of project management methods
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and techniques. For example, Dell, IBM, Hewlett-Packard, and Intel all have over
1,000 projects running simultaneously across borders and cultures on any given
day of the year. How do these corporations handle all of these projects? How were
these initiatives chosen? How do they guarantee accountability and monitoring of
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performance? How can project management be improved indefinitely? Centralization

is the process of integrating all project procedures and practises in order to optimise
project management.
Integration is intended to enhance long-term project management throughout the

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whole business. The rationale for integrating project management was to provide senior
management with the following:
●● An overview of all project management activities;

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●● A broad view of how organisational resources are being used;

●● An assessment of the risk their project portfolio represents;
●● A rough metric for comparing their project management performance to others in
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the industry; and

●● Connections between senior management and actual project execution management.

Complete visibility into all organisational components is critical for aligning internal
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company resources with the needs of a changing environment. Integration allows
management to have more control and flexibility over all project management operations.
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What does project management integration imply operationally? It entails bringing
together all of the important facets of project management under a single roof.
Each dimension is incorporated into a single, seamless realm. Integration is the
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process of applying a set of knowledge, skills, tools, and processes to a collection of
initiatives in order to advance the organization’s strategic objectives. This integration
trend is a primary objective of project-driven companies in every industry.
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Integrated Project Management is shown below:
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3.1 Detail Project Report, Project Kick-off

The project kickoff meeting explains the project’s aims and objectives, ensuring
that both the project team and the client understand their roles in the project.
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This action is included in the phase of project beginning. Typically, the project manager
leads the start meeting. Often, an internal kickoff meeting is held with just the project team,
followed by an external kickoff meeting with the project client, sponsor, or stakeholder.
The project manager briefs the team on the project’s scope, background
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information, and timeframe at the meeting. A launch meeting should establish the
appropriate tone for the project’s execution, monitoring, and control stages. A well-run
launch meeting may pave the way for a project’s successful conclusion.
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Purpose of a Kickoff Meeting

A kickoff meeting is mainly intended to bring the project team together. During the
discussion, project managers outline shared objectives that the team should keep in mind
while they do their assigned responsibilities. It lays the groundwork for project success.
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Additionally, the launch meeting provides an opportunity for the project manager to
introduce the project team. It is critical that everyone understands who they are working
with and their respective roles and responsibilities. This helps minimise disagreements
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later in the project, which may cause delays and jeopardise the project’s deadline.
The team may continue to challenge the project manager until they have a strong
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grasp of the project and their role within it. Because this meeting will take place in
person, rather than through email or shared papers, you will minimise the possibility of
misinterpretation. This helps in avoiding scope creep later on.
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During the launch meeting, a lot of information is provided, including the project
management software that the team will be utilising.
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Example of a Kickoff Meeting Agenda
A launch meeting varies according on the nature of the project. Some are more
organised and formal, requiring much preparation before to the start meeting. Smaller
projects may begin with a kickoff meeting that does not need a demo or a deck.
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Whatever kind of launch meeting it is, one thing is universal: the agenda. Typically,
the kickoff agenda will include the following things, all of which are critical for a
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successful launch meeting.
1. Project Background
The project background is a section of the project proposal that details the project’s
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history and how it came to be. It details the study that led to the project’s approval and
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explains why the initiative is required.
This section discusses the why, where, and how of your project’s execution. You’ve
described the existing scenario, the nature of the issue, and the proposed solution. All
of this is backed up by credible facts. The project background is used to get consent
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from stakeholders in a project proposal. Additionally, it aids in contextualising the project

at the project launch.
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2. Project Scope Overview

The project scope overview provides a thorough explanation of the tasks that
your team must do in order to finish the project successfully. The project timetable and
budget specify the scope of this task.
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By comprehending the project’s goals and needs, project managers can anticipate
cost and time more precisely. By communicating the project scope to the project team,
they have a better understanding of the limits imposed on the tasks they will be allocated.
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3. Project Timeline Overview

The project’s deliverables are listed chronologically on a timeline that serves as a
project roadmap. This is the foundation of any project schedule and should contain at
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the very least milestones, tasks, any dependencies, and due dates.
The overview of the project’s timetable is crucial for the team, since they will be
responsible for meeting those deadlines and producing those deliverables. As a result,
this information must be stated clearly. There should be no doubt regarding what has to
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be done by anybody on the project team.
With Project Manager’s Gantt charts, you can create a project timeline in minutes.

4. Risk Management Overview

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When developing the project plan, the project manager must also create a risk
management strategy. This is the process of identifying potential hazards that may
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arise over the course of the project. Then you decide what measures will be required to
address these difficulties when they emerge.
You rank risks according to their influence on the project. This is how you establish
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a risk mitigation plan, which involves determining who will be held accountable
for particular risks if they materialise. The project team must be aware of who is
responsible for risks and identify them fast.
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5. Responsibilities and Roles
The project manager is responsible for outlining the project team’s roles and duties. That
is, the team member’s place in the team, the tasks allocated to them, and the responsibilities
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associated with their specific function in respect to the wider team and project.
This is a job description in its simplest form. It must be distributed to all members
of the project team during the start meeting. It provides a summary of the position, a list
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of tasks, and the authority granted to that individual. Additionally, who they report to is
stated, ensuring a clear line of command.
6. Techniques and Tools for Project Management

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There are several approaches to project management. This may take the form of a
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more conventional waterfall technique, an iterative agile approach, or a hybrid approach that
smoothly integrates many work management approaches. Additionally, you must choose a
project management solution that is compatible with the technique being employed.
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The project team must understand how the project is managed and their role in it,
as well as the project management software application they will be utilising. In certain
circumstances, this will need training the team on the approach and how to utilise the
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project tools. This will all be covered at the launch meeting.
3.1.1 Project Planning: Planning Steps

Without a project plan, you run the risk of exhausting available resources and
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failing to meet the client’s objectives. A project plan ensures that all stakeholders have
the same vision for the project, creates quantifiable objectives for the project, fosters
effective communication between team members and stakeholders, and acts as the
basis for project transparency. Without it, you and your team are setting yourself up for
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project failure.
A project plan, sometimes referred to as a project management plan, is the

document that details how a project will be implemented, monitored, managed, and
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closed. This document defines the project’s goals and scope and acts as a point of
reference for the project team, the wider firm, and stakeholders.
It is a collection of numerous different papers that is prepared throughout the

project planning phase. It is more than a timetable or a task list, albeit they are included.
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The project management plan is authorised officially at the start of the project and
then revised gradually during the duration of the project. A project plan consists of the
following documents:
●● Project Charter: Provides a general overview of the project. It contains information

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on the project’s motivations, aims, objectives, constraints, and stakeholders,
among other things.
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●● Statement of work (SOW): it describes the scope, timetable, deliverables,
milestones, and tasks of a project.
●● Work Breakdown Structure: Defines the project’s scope by segmenting it into
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stages, subprojects, deliverables, and work packages that ultimately result in the
final delivery.
●● Project Plan: The project plan is organised into parts that address the following topics:
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scope management, quality management, risk assessment, resource management,
stakeholder management, schedule management, and change management.
Why is planning a project critical?
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Project planning is a critical step that occurs immediately after project
commencement in the project management stages. Proper planning divides the whole
project into manageable parts and ensures the timely availability of all resources.
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Constraints on the project, such as time, scope, and cost, are considered during
the planning stage, and mitigation measures are devised, if possible, hazards are
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identified. By comparing actual progress to the project plan, you may also monitor and
enhance your team’s performance.
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How to Create a Project Plan
A well-planned project is critical to the success of any endeavour. Without one, your
project is likely to encounter typical project management challenges such as missed
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deadlines, scope creep, and cost overruns. While developing a project plan requires
some work up front, the investment will pay off throughout the project’s life cycle.
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Any project’s fundamental framework may be described in the following five steps:
●● Define the stakeholders, the scope, the quality baseline, the deliverables,
the milestones, the success criteria, and the needs for your project. Create a
project charter, a work breakdown structure (WBS), and a scope of work for the
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project (SOW).
●● Identify hazards and assign deliverables to team members who will carry out
needed activities and monitor related risks.
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●● Organize and clarify the roles and duties of your project team (customers,
stakeholders, teams, ad hoc personnel, and so on).
●● Create a list of the project’s required resources, including workers, equipment,
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wages, and supplies, and then calculate their costs.

●● Create processes and forms for change management.
●● Create a communication strategy, a timeline, a budget, and other project-
related materials.
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Each of the processes outlined above for writing a project plan corresponds to one
of the five project phases described in the next section.

Five phases of Project Life Cycle

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Any project, regardless of its size or scope, has the potential to be extremely
difficult. By seeing your project in terms of stages, it becomes much simpler to break
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down all of the required features for a project plan. The Project Management Institute
has defined the following five stages of a project in its Project Management Body of
Knowledge (PMBOK):
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●● Initiation: The beginning of a project, during which the project’s aims and
objectives are established via a business case and the project’s feasibility is
assessed through a feasibility study.
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●● Planning: The planning phase establishes the project’s scope via the use of a work
breakdown structure (WBS) and determines the project’s management technique.
Estimates for costs, quality, and resources are made, and a project timeline with
milestones and task dependencies is established. This phase’s primary product is
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your project plan.
●● Execution: This phase sees the completion of the project’s deliverables. Typically,
this phase starts with a kick-off meeting and continues with frequent team
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meetings and progress updates throughout the duration of the project.
●● Monitoring & Controlling: This phase occurs concurrently with project execution.
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Progress and performance indicators are tracked to ensure that the project is
progressing according to plan.
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●● Closure: When the final deliverable is received by the stakeholder, the project is
considered complete. Resources are allocated, contracts are signed, and, ideally,
an assessment of the project’s achievements and shortcomings occurs.
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Phase of Project Planning

After learning how to create a project plan and identifying the phases of the
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project management life cycle, it’s critical to underline the critical nature of the project
planning phase.
The project planning process is crucial for every kind of project since it is where all
the documentation that will outline how your project will be executed and how risks and
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problems will be managed are created. These papers, which are included in the project
management plan, describe every aspect of your project in depth.
While there are project plan templates available to assist you in organising your
activities and initiating the planning process. In comparison to an Excel project plan
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template, the feature set is far more powerful and integrated with each project phase,
and is an excellent approach to guarantee that your actual progress remains consistent
with your anticipated progress.
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3.1.2 Business Case

A business case is a document used in project management that demonstrates
how the benefits of a project outweigh the costs and justifies its execution. Business
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cases are developed at the project’s beginning phase with the goal of including all
of the project’s goals, costs, and benefits in order to persuade stakeholders of the
project’s worth.
A business case is a critical project document that demonstrates to a client,

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customer, or stakeholder that the project you’re presenting is a wise investment. The
methods below demonstrate how to write one that will influence them.
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A business case is necessary because it consolidates the financial evaluation,
proposal, strategy, and marketing plan into a single document and provides an in-depth
examination of how the project will benefit the corporation. After the project stakeholders
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have approved your business case, you can begin the project planning phase.
Prior to Beginning to Write a Business Case
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Without a strong business case to support them, projects fail, since this document is
required to initiate the project and serves as the foundation for the project charter and plan.
However, if a project’s business case is not grounded in reality and does not address a
need that is aligned with the organization’s larger business objectives, it is irrelevant.
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The research necessary to develop a compelling business case include
determining the why, what, how, and who of your idea. This must be expressed plainly.
The aspects of your business case will elaborate on the why. Consider the business
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case as a document that is generated during the project’s inception phase but will be
referred to throughout the project’s life cycle.
How to Craft an Effective Business Case r

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To write a business case, the following four stages are required:
●● Conduct market research to determine your market’s size, competitiveness,

and alternatives.
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●● Analyze and fine-tune your company and project management strategies

●● Compile data and offer your strategy, objectives, and alternatives.
●● Maintain meticulous records on everything.
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A business case is a succinct yet comprehensive document that is intended to

address the what, why, how, and who of your project. This is why the first step in writing
your business case is to create a thorough outline to ensure that nothing is overlooked.
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The following parts comprise the bulk of your business case:
●● Synopsis
●● Description of the business/mission statement
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●● Achievement or service
●● Definition of the undertaking
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●● Organization of the project

●● Financial evaluation
●● Market analysis
●● Marketing plan
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●● Assessment of dangers

Template for the business case

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The four stages that follow will guide you through the process of creating a
business case template for your project.
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It is divided into four sections:
●● Executive Summary
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●● Finance
●● Definition of the Project
●● The Organization of the Project
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1. The Executive Summary
Depending on the length of the business case, a high-level description of the
project may be included.
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The executive summary is the first and last element of the business case. This
section contains a concise description of the whole business case. It offers critical
information about the project concisely and conveys the complete tale to the reader.
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Initial impressions are critical. Make certain that this is correct!
2. The section on finance

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The financial portion of a well-written business case is largely for people
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responsible for financing approval. This, in addition to the first part of the project
specification, will be of interest to the finance function.
Financial appraisal:
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When preparing the financial evaluation, get help from the finance department
about its substance and presentation. Consult subject matter specialists when it comes
to capital developments.
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●● A financial evaluation serves the following purposes:

●● Determine the project’s financial consequences
●● Allow for a cost-benefit analysis of the project.
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●● Ascertain the project’s affordability

●● Evaluate the cost-benefit ratio
●● Cash flow forecasting
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Analyses of sensitivity:
Sensitivity analysis is concerned with project risk and examines alternative futures
by determining the effect of modifying values on project outcomes or assumptions.
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Sensitivity analysis, in fact, enables the project accountant to experiment with

several situations.
3. The Definition of the Project

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This section of the business case is the most extensive and is intended for the
project sponsor, stakeholders, and project team. It addresses the majority of your
project’s why, what, and how questions.

Contextual information:
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This part serves as an introduction to the business case and project. It should
provide a concise summary of the reasons for the project or business transformation:
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the issue, opportunity, or change in circumstances.
Refer to pertinent initiatives, projects, research, or business strategies as appropriate.
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Objective of the business:
This section explains why you’re doing the endeavour. The purpose of the business
is to address the following questions:
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●● What is objective?
●● What is required to resolve the issue?
●● How will the initiative contribute to the company’s strategy?
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Advantages and disadvantages:
The section on advantages and constraints discusses the financial and non-financial
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benefits sequentially. The goal of this section is to describe why you need a project.
For example, to:
●● Enhance the standard r

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●● Cost savings achieved via efficiency
●● Reduce working capital requirements
●● Earn money
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●● Maintain a competitive edge

●● Enhance your client service
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●● Align with the company’s strategy

Additionally, the business case should contain any constraints, since they may
pose a risk to the project.
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Identification and selection of options:
Identify and explain viable solutions to the issue in sufficient detail for the reader
to comprehend.
For example, if the business case and suggested solution use technology, ensure
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that you explain how the technology is utilised and provide a glossary of words. Due to
the fact that the majority of issues have several answers, an option evaluation is often
required. This section will investigate possible solutions and propose the best one.
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When creating the first business case, the option assessment will almost certainly
include a lengthy list of alternatives and will cover a wide variety of possibilities. As the
project progresses, a lot of alternatives will be discarded. The final business case may
comprise a short list of three to five choices, including a do nothing or benchmark option.
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The scope, the influence, and the interdependence:

This part of the business case template defines the work required to accomplish
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the project’s business purpose and specifies the business operations that will be
impacted by the project.
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Additionally, the section on the project’s scope, effect, and interdependencies
should define the project’s scope and bounds. It details what is included and what
is omitted, as well as the project’s critical interdependencies with other initiatives.
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It is critical for the business case to take into account the failure of other connected
initiatives and demonstrate how such dependencies result in advantages.
Outline strategy:
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The outline plan summarises the project’s primary tasks and overall timeframe
(project timeline).
In an ideal world, the project would be staged, with critical choices preceding each
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step. Utilize this area to provide responses to the following questions:
●● What is necessary?
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●● How is this accomplished?
●● Who is responsible for what?
●● When will events occur?
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This high-level plan identifies the primary deliverables and offers a concise project
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description as well as accountabilities for each action.
Market analysis:
It is critical that the business case presents its readers with an in-depth
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examination of the business setting, referred to as the market evaluation. In other

words, make plain the underlying commercial interests.
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As a result, the market analysis should demonstrate a thorough awareness of the

market in which your organisation works.
A excellent place to start is with the inclusion of a PESTLE analysis, which stands
for political, economic, social, technical, legal, and environmental.
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Assessment of dangers:
The risk assessment describes the key risks and opportunities associated with
the project, as well as how they are addressed. Risks should be highlighted that might
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develop as a result of your project or the organization’s capacity to effect change.
This section responds to the following inquiries:

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●● What are the dangers?

●● What are the ramifications of a risk occurring?
●● What chances could present themselves?
●● What contingency measures are in place to address the risks?
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●● Each project should have a risk management plan.

When drafting a business case, it is critical to include this section since it details
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how risk and opportunity are handled.
Approach to the project:
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The project strategy outlines how the project will be carried out. That is, the manner
in which labour is accomplished in order to complete the project.
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For example, a project that outsources the majority of the work is likely to take a
different strategy than one that creates an in-house solution.
Procurement strategy:
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This section discusses how a project will be funded and if the business should
purchase, lease, or outsource before making a purchase.
Additionally, the buying plan should include the purchase procedure that was
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followed. A proper procurement procedure may help you save time and money while
also lowering your project’s risk.
4. Project Organization
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The last component of the business case template is particularly pertinent to the
project manager, project team, and managers accountable for project delivery. This
section discusses the structure of the project.
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Governance of projects:
This portion of the business case template explains the project’s structure and
the various decision-making levels. Typically, a firm will have previously built a project
governance structure to guide the project through its many stages.
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If your business does not already use a defined project management process
framework, add the following in this section:
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●● Responsibilities and roles (RACI Chart)

●● Tolerances for projects
●● Standards for projects
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●● Points to consider
●● How judgments are made
Reporting on progress:
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Finally, the business case should specify how project progress is tracked and how
the project board is kept informed about the project’s development. Typically, the project
manager does this by periodically producing a succinct progress report or highlight report.
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3.1.3 Who Is the Sponsor?

Personnel assigned to a project, such as a sponsor, are assigned certain titles and
tasks and operate within a bureaucratic system. Without a bureaucratic framework to
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manage activity and sanction change, projects would swiftly spiral out of control. By
chronicling actions and exchanging information, a bureaucracy establishes order and
increases efficiency.

In that vein, we’ll examine a vital function at the top of the totem pole: that of the
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project sponsor. This role may be the most critical since the project was designed
for the benefit of the project sponsor, and so their eventual approval or rejection will
determine whether the initiative is a success or failure.
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A project sponsor is an individual or entity that owns the project and provides
resources and assistance to ensure the success of the project, programme, or portfolio.
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Each project requires at least one sponsor. They are the project’s impetus.
While they are not directly responsible for the day-to-day operations of a project, they
are positioned above the project manager in the project hierarchy. Almost certainly,
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the project sponsor has been engaged from the start. They were instrumental in its
conception and advocacy.
The sponsor of a project varies depending on the undertaking. For instance, a
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government project will be sponsored by a state official who will collaborate with the
building company’s project manager. However, the chief information officer may serve
as the project sponsor in an IT project.
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Responsibilities of the Project Sponsor
The sponsor is accountable for several facets of the project, from originating it and
guaranteeing its success to authorising and creating various components. The job may be
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divided into three components: vision, governance, and realisation of value or advantages.
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Vision
●● Ascertains the validity of the business case and its alignment with the business proposal
●● Aligns the project with the business’s strategy, objectives, and goals
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●● Maintains awareness of project events in order to ensure the project’s viability.

●● Establishes the success criteria for projects and their alignment with the broader business
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Governance
●● Ascertains that the project is started and initiated appropriately.

●● Consistently adheres to organisational priorities throughout the duration of the project
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●● Provides assistance with project organisation

●● Defines the responsibilities and reporting structure for projects
●● Acts as a point of contact for matters that are beyond the project manager’s control
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●● Arranges for financial resources

●● Decision-maker about the project’s progress and stages
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Values and Advantages
●● Assures that risks and changes are appropriately addressed

●● Contributes to the management and evaluation of processes
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●● Oversees the project’s value delivery

●● Evaluate current conditions and progress

●● Appropriately approves deliverables

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●● Assists with decision-making
●● Responsible for the overall quality of the project throughout its stages
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What a Sponsor Does Throughout the Project’s Lifecycle
While a project sponsor may be visible from the outset and then disappear, the
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finest project sponsors are involved in every step of the project.
●● Initiation:
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●● Assign a project manager and a steering committee to the project. Typically,
a steering committee is composed of senior managers and stakeholders
who may give guidance throughout the project’s lifespan. Because steering
committee members are not directly participating in the project, they may
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maintain a bird’s eye view and give vital counsel and monitoring of the
project’s development.
●● Define the success of the project and its deliverables. Additionally, the project
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sponsor should verify that these objectives have been effectively conveyed
and that everyone on the team understands them.
●● Organize and surface activities in a single source of truth, such as a project
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management tool, to ensure they are accessible to all project participants.
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●● Monitor and assist with beginning activities as needed. It is vital to verify that
everyone on the project team is doing their assigned tasks in order for the
project to function successfully in the future.
●● Provide comments on project initiation materials, which may include a project
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charter, business case, or feasibility study, in order to guarantee that the

initiative receives approval from executive stakeholders.
●● Verify the scope of the project to verify that the project’s goals and objectives
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are attainable and to avoid scope creep.

●● During the kick-off meeting, advocate for the project and be prepared to assist
the project manager with any inquiries from the team.
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●● Planning
●● Observe and revise project schedules to ensure that delivery dates are realistic.
●● Assist the project manager with problems and escalation concerns.
●● Monitor the efficacy and group dynamics of the project team and convey
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successes or opportunities to the project manager.

●● Examine the RAID log (Risks, Assumptions, Issues, and Dependencies). This
log is a critical component of project planning since it details the possible risks
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that may affect your project, your assumptions about the project’s progress or
result, potential difficulties that may arise throughout the project’s lifespan, and
the dependencies on which your project is reliant (e.g. input from an expert).
●● Ascertain that the project plan includes clear requirements, deliverables, and
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well-planned milestones. At the conclusion of the project, the sponsor will sign
off on all requirements.

●● Execution
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●● Assemble a healthy boundary between manager and sponsor, as well as
between sponsor and senior management, in collaboration with the project
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manager (and avoid micromanagement). It is critical that the sponsor has
confidence in the project manager’s ability to lead their team through the
project and will seek assistance from the sponsor when necessary.
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●● Attend to the project’s requirements in order to assist the team and
management. These may be technology or software, more funds, or additional
personnel to assist the project team.
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●● Ascertain that top executives have access to project status reports in order
to remain informed as required. Additionally, these reports must be updated
on a frequent basis (weekly, monthly, or quarterly, depending on the nature of
the project).
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●● As appropriate, implement change control methods to prevent scope creep.
●● Performance
●● Evaluate the progress of the project and offer comments as necessary.
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Depending on the nature of the project, weekly, monthly, or quarterly review
meetings may be beneficial for assessing progress and adjusting deadlines
or objectives.
●● r
Encourage the project manager and team to solve challenges on their own. Lead
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by example and serve as a role model for effective problem-solving solutions.
●● Identify, identify, and resolve underlying sources of emerging difficulties.
●● Regularly update the RAID log to reflect changes to the project during its life.
●● Recognize the achievement of critical project milestones. It is critical to
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commemorate these milestones in order to acknowledge the team’s work

and influence.
●● Closing
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●● Evaluate the project’s performance against the success criteria previously

specified. This data will be critical for the project’s impending post-mortem or
retrospective, during which the project’s performance will be discussed.
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●● Ascertain the successful hand-off of the project to the customer. This stage
concludes the project, since all deliverables have been handed over to
the customer.
●● Participate in or facilitate a post-mortem or lessons learned session with the
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purpose of discussing the project’s triumphs and failings. Encourage the

project manager to capture these lessons learned in order to apply them to
future initiatives.
●● Ascertain the successful completion of the project’s sign-off. This entails
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not just terminating the project team but also fulfilling any remaining
legal requirements.
Distinction Between a Sponsor of a Project and Other Roles

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A project sponsor is distinguished from a project owner by the fact that the sponsor
is an individual, while the owner is an organisation. However, the project sponsor is
often engaged by the project owner.

Due to the similar titles, the project stakeholder and the project sponsor may be
Notes
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mistaken. A project stakeholder, on the other hand, is anybody who is impacted by
the project. They might be government regulatory bodies or private landowners, for
example. Typically, the sponsor of a project is an employee of the organisation that
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owns the initiative.
3.1.4 Project Charter
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A project charter is a declaration of the project’s scope, goals, and participants. It
begins the process of establishing the participants’ roles and duties and specifies the
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project’s objectives and goals. Additionally, the charter outlines the primary stakeholders
and establishes the project manager’s authority.
The Essential Components of a Project Charter
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The project management charter acts as a guide. It should elaborate on these
three major issues.
●● What is the project’s purpose? What are the project’s aims and objectives? How
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do you intend to attain and accomplish these aims and objectives?
●● Why is this project necessary? Assure that everyone has a common
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understanding of the project. The charter should explain the charter’s value and/or
purpose to everyone involved, from the team to the project manager, stakeholders,
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and sponsors, among others.
●● Can we reach an agreement on this project? The charter serves as a binding
agreement between the sponsor, important stakeholders, and the project team.
By outlining the obligations of each person participating in the project, everyone
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understands their own responsibilities.
How to Write a Charter for a Project

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Thus, these are the broad strokes, and although a project statement does not need
to be exhaustive, it does include a great deal more critical information than these broad
phrases. Bear in mind that the parts below should be concise since they relate to more
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extensive project planning papers, such as a scope statement, project budget, risk
management strategy, or request for proposal.
1. Provide Background Information about the Project

This initial portion of your project charter will include basic information about your
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project, such as its name, description, and the identities of the project’s sponsor, project
manager, team members, and stakeholders.
2. Define the Roles and Responsibilities of the Project Team

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A project charter’s critical purpose is to record who your team members are and
their respective roles and responsibilities. Additionally, you should identify the primary
stakeholders. It’s critical to keep track of the stakeholders in any project since they’re
the ones to whom you’ll be reporting and, in some ways, managing their expectations.
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The sooner you identify them, the sooner you can develop an effective stakeholder
management strategy.

3. Define the Project’s Goals and Objectives

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It is critical for project managers to distinguish between the two. While project
objectives are the particular milestones or activities required to fulfil them, project
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goals are the high-level advantages that the project should deliver. Without a defined
objective, your initiative is doomed to fail.
4. Establish a Business Case
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A project charter requires a business case since it effectively describes why
the project is being undertaken. It enables project managers to communicate to
stakeholders the business requirements that the project will address, as well as the
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anticipated financial advantages and return on investment. A solid strategy to market a
project is to understand the value it will offer to sponsors and stakeholders. Determine
what those advantages are and include them in this section.
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5. Defining the Scope of the Project
What are the objects that are included and excluded from the scope? The scope
of your project defines its parameters, such as its start and end dates. Thus, what are
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in-scope things, as opposed to activities or actions that fall outside the project’s step-
by-step process? Outline the critical deliverables and milestones for your project. Later
in the planning process, you’ll need to produce a scope statement that goes into further
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detail about the project’s scope.
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6. Establish a timeline for the project
A project timeline is a condensed version of the timetable for your project. This
project schedule should highlight critical deliverables, milestones, and phases of the
project to help stakeholders see the broad picture.
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7. Create a budget for the project

While you’ll go into further depth when creating the project budget, here is where
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you’ll want to get a sense of the project’s expected expenditures. Establish the project’s
budget and determine who will have spending power. Include the projected prices for
the activities you’ve outlined, but keep in mind that any changes to the project’s needs
or tasks will necessitate budget adjustments.
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8. Make a note of the Critical Assumptions and Constraints

It is critical to document any assumptions and restrictions that may affect the
creation or execution of your project plan. Keeping track of critical assumptions is
critical for stakeholder management, since creating clear expectations is critical for
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success. Additionally, you should have a rough idea of how you intend to cope with
project limits. If you do not cover it now, you will have to make up for lost time later.
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9. Maintain a log of significant project risks.

Identify any possible hazards that may develop throughout the course of the project
to avoid being caught off guard. You’ll want to emphasise the most likely or significant
hazards here so that stakeholders are aware of them early on. This should be followed
by a risk register and risk management strategy in your project plan, outlining how
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you’ll address those risks and who in your team is accountable for identifying and
resolving them.

10. Define the Project’s Specifications and Success Criteria

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The project’s management team and stakeholders must agree on success
criteria. The triple constraint components of time, money, and scope are often used to
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determine project success. However, depending on the project, several criteria such as
risk tolerance levels and quality standards may apply.
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3.1.5 Triple Constraint or Six Constraints
According to the PMBOK Guide, a constraint is “a limiting element that impacts
how a project, programme, portfolio, or process is executed.”
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For instance, when constructing a building project in an earthquake-prone location,
project managers must consider environmental variables. In this case, earthquakes act
as a restraint on project planning.
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Dr. Martin Barnes defined the three basic project limitations in 1969 as scope,
time, and money. He dubbed them the project management triple limitation. However,
throughout time, project managers have discovered that there are other constraints on
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a project. According to some, there are as many as 19 project restrictions.
The PMBOK Guide, on the other hand, identifies the following six restrictions that
might possibly derail any project:
●●
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Scope: The contract or charter specifies the scope of work.
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●● Time or Schedule: Customer-imposed deadlines
●● Budget or cost: The financial constraints imposed by the sponsor.
●● Quality: The deliverable’s quality criteria.
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●● Resources: Inadequate trained labour

●● Risks: Perilous situations that might jeopardise the project
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Let’s take a closer look at each of these project restrictions.
●● Scope
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The scope of a project is not an estimate but a collection of assured deliverables.

To ensure the success of the project, the deliverables or milestones specified in the
scope must be attainable. These deliverables must be unanimously approved by
relevant stakeholders. For instance, the scope of a home construction project may
involve the construction of two bedrooms, one kitchen, and a hallway. However,
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it excludes interior design and flooring. The project manager must specify which
deliverables will be included and which will be excluded. This manner, everyone
working in the project is aware of the end goal.
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A comprehensive scope appraisal is critical for a project manager to ensure the

project’s success. To begin, you should create a project scope statement outlining
what will and will not be included in the project.
●● Time
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The time limitation is critical to the success of any endeavour. As a project manager,
it is your responsibility to make the most accurate timetable estimate feasible.

You’ll need to depend on previous projects and utilise their data to create a suitable
Notes
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timeline. Additionally, you must factor in any delays, modification requests, risks, and
uncertainties. Based on this, you’ll need to determine the project’s actual timeframe
and communicate it to stakeholders. Additionally, you must specify timelines for each
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step. It will assist you in concentrating on key activities and completing them on time.
Failure to adhere to the schedule, on the other hand, may result in a project delay. As
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a result, a well-defined project plan is a critical component of good time management.
You must invest time in preparing in advance to limit the number of revisions required
later on and to minimise time spent on useless tasks.
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●● Cost
The cost or budget of a project is the amount of money spent to accomplish the
intended outcome. For instance, a customer wishes to construct a website for his
business on a budget of $1 million. As a project manager, it is your responsibility to
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design the project in such a way that it does not exceed the budget. You must keep
costs inside your projected budget, or else you may incur a budget overrun.
Cost estimation is critical prior to developing the project strategy. It enables you to
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define a baseline against which you can compare your expenditures and track your
progress throughout the project’s lifecycle. Additionally, you may anticipate prices
based on well studied market rates, vendor bids, and historical data.
●● Quality
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The quality restriction is determined by the deliverable’s attributes. The quality of a
project is determined by how closely the product meets the expectations. Since a
project manager, you must guarantee that the project’s quality is maintained, as this
directly impacts customer satisfaction.
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All three key restrictions, namely scope, money, and time, have an effect on the
quality of a project. For example, scope changes will have a cascading impact on
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the timetable and budget, resulting in a degraded project’s quality. Likewise, altering
quality expectations has an effect on the three restrictions. For instance, if the customer
desires the highest quality items, the cost and time would rise. Additionally, it may alter
the project’s scope. As a result, these four restrictions are inextricably linked.
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●● Resources
Resources are important to a project’s success and can substantially contribute to
the budget. They might be people, equipment, or facilities. All other limitations are
directly related to resources. As a result, the project manager must manage resources
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effectively in order to maintain control over all other limitations. Inadequate resource
allocation may result in degraded quality, as well as schedule and budget overruns.
Additionally, managers must ensure that all team members are employed properly
)A
to achieve optimum productivity and avoid project burnout. A proper resource

management system assists in allocating the appropriate resources to projects,
optimising their effectiveness, and providing strong analytics for fast decision-making.
●● Risks
(c
Every project has risks, which may help the project or potentially derail it. As a project
manager, you must anticipate and prepare for them at every stage of the project. It

may include modelling multiple situations in order to determine the best potential
Notes
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result given the limits at hand, or it may entail developing contingency plans.
Additionally, you must establish your risk tolerance and risk management techniques
for mitigating risks as appropriate.
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Risks are classified into two categories, positive and negative. For instance, suppose
a new technology enables you to complete your job more quickly and on schedule.
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Seizing such a rare chance will always include risk, but it will also benefit your project.
On the other side, the abrupt loss of essential resources as a result of stress is a
negative risk that will jeopardise the project’s delivery. You must have a contingency
plan in place for such an occurrence.
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Six Effective Techniques for Managing Project Constraints
While constraints are an inherent part of projects, there are methods that may
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be taken to handle them effectively and successfully. The following are six efficient
methods for managing project constraints:
1. Develop a plan and strategy for each stage of the project.
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Creating a sound strategy will assist in avoiding common restrictions. A work
breakdown structure with each stage decomposed into tasks will aid in comprehending
the project’s scope. You may arrange and describe the functions, as well as the
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timetables and team members allocated to them. This manner, you can keep track of
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the length and expenditures associated with each step. Additionally, you will be able to
take corrective action if anything does not go according to plan.
2. Clearly understand each limitation

The more you understand how restrictions impact your project, the more effective
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your planning will be. Understanding each constraint and determining which elements
of the project will be impacted is critical for controlling them. On this basis, you may
use approaches like as risk analysis and resource levelling to mitigate the limitations’
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harmful impacts.
3. Maintain an effective quality management system

Adhering to the project’s schedule, budget, and scope is insufficient. The
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deliverable’s quality must be acceptable. This requires excellent project quality

management. To continuously develop the quality management system, you must
concentrate on monitoring critical areas in processes on a regular basis. Rather than
attempting to squeeze everything in at the moment of delivery, frequent reviews as part
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of the internal audit programme will guarantee that techniques are operating properly.
4. Maintain a healthy balance of resource use

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Overloading resources with work on a regular basis might result in stress and staff
burnout. Simultaneously, underutilizing your workers’ potential might result in decreased
production and even unwanted turnover. Additionally, since resources are one of the
most essential project constraints, inadequate resource use may result in project delays
and cost overruns. Thus, optimising project member utilisation is critical to profitability
(c
and company sustainability.
5. Ensure that you have a risk management plan in place.

A well-thought-out risk management approach will enable you to detect, analyse,

Notes
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and prepare for possible hazards. It helps you to confront uncertainties and obstacles
head-on and enables you to create more value. With a plan in place, you can address
internal risks in a proactive manner. Additionally, it enhances your decision-making by
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anticipating hazards.
6. Transparent communication between members of the project team
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Transparent communication is important to managing project restrictions
effectively. Transparency ensures that everyone participating in the process is aware
of the project’s aims and objectives. They have a firm grasp on what is expected of
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them and on what they have to contribute. It boosts their productivity and maintains
their engagement.
How can resource management contribute to the resolution of these project constraints?
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Resource management is the practise of successfully and efficiently using different
sorts of company resources throughout the firm. Several methods in which resource
management assists in alleviating project limitations include the following:
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1. Complete projects on schedule and under budget
Customer satisfaction is attainable if the firm adheres to its obligations about
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project delivery. Businesses may save costs and assure project completion on time
by using the appropriate resource management approach. Managers may assign
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the appropriate resources to the appropriate projects at the appropriate time, hence
maximising production. Additionally, 360-degree insight allows the efficient distribution
of global resources beyond matrix borders. It assists in achieving the required
outcomes at a reduced cost.
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2. Prevent project-related staff fatigue

Managers often overburden a high-performing resource with several duties.
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For instance, an employee who routinely works extra is at danger of burnout, which
might result in lowered quality or unintended turnover. On a unified platform, the
resource management system consolidates corporate resource-related data. It
enables managers to receive a bird’s-eye perspective of their reservations in real time,
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preventing project members from being overburdened with work.
3. Consistently optimise resource use throughout the project

A resource management system that is intuitive can anticipate resource use, allowing
managers to act proactively and take remedial action. As a result, managers may reallocate
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resources away from non-billable tasks and toward billable and strategic activities.
When resources are rolled off projects, they often wind up on the bench. Resource
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managers anticipate which resources will become idle and aggressively seek for
appropriate projects to convert them to billable hours. If no relevant positions exist,
personnel may be given with on-the-job training or shadowing to increase billability.
4. Monitor and maintain the project’s financial viability

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Managers may monitor crucial financial metrics for a project such as cost, revenue,
profit margins, and overheads using sophisticated analytics and dashboards. For
example, projected vs. actual cost reports enable you to compare actual expenditure

to the budgeted amount. This manner, you may enhance future projections and make
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them more accurate.
5. Make educated business choices by using real-time business intelligence
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Effective resource management approaches enable you to identify where
resources are located and what they are doing, giving you complete control over
the process. You can monitor the performance of project participants using real-
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time business analytics and reports. It enables precise forecasting in order to make
educated decisions and assists you in steering projects in the appropriate direction.
6. Incorporate approaches for modelling and simulation
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What-if analysis, a significant component of resource management tools, allowing
you to maximise your ROI within the restrictions of your current environment. It enables
you to create and simulate different scenarios and examine the effect of resource
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allocations on critical key performance indicators (KPIs) such as availability, utilisation,
project financials, and capacity vs. demand. Managers may then choose the best
solution and incorporate it into an actual resource plan.
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3.1.6 Master Plan
A master plan is a high-level document deployed to structure, organize, and
manage projects. r
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The master plan is not to be mixed up with the master schedule. The master
schedule consists of actual calendar dates and gives additional inputs to enable
implementation of plan created in the beginning of the project.
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An integrated master plan example could be a national healthcare system’s

roadmap for administering a vaccine. The vaccination of an entire age group would
count as a significant accomplishment, with an event occurring after the last person in
each group is vaccinated. The criteria would include official certification of vaccination,
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which would be uploaded to the nation’s online health records.
A master plan has five sections:

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Technical Approach Summary (TAS):

●● Contains key objectives of project
●● Includes available resources needed for goal achievement
●● Contains technical, licensing and / or regulatory features needed
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Contract Work Breakdown Structure (CWBS):

●● Thorough map that breaks down all project tasks
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●● Contains specific details on processes and services to be deployed

●● Unique identifiers to be used in tasks for reference points
Schedule:
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●● Tasks laid out in CWBS are organised in a linear structure to show time / date
of occurrence

●● Schedule links tasks to showcase relationship between various tasks and activities
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●● Project managers interact with vendors and subcontractors to be in line with
their accessibility
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Cost and budget:
●● Costs of master plan contained in a format based on time
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●● Budget is to be in line with schedule
●● Above makes sure that needed expense have access to cash flow
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Risk management:
●● Risks are recognised
●● Risks’ probability determined
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●● Formation of risk mitigation strategy
●● Above strategy to address potential threats and
●● Take care of risk impact if necessary
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Necessity for master plan
●● A critical portion of project management
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Constructs a comprehensive path of the tasks to be executed
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●● Easier to enable unification of teams
Project success is achieved when

●● Goals, objectives and activities are clearly outlined
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●● Project managers suitably take care of time, budget, and potential risks
All of the above features are included in the master plan, making it an ideal
document to work with for project success.
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3.2 Process Groups

Managing a project is no easy feat. It is not a continuous process; it has a distinct
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beginning and finish. As we advance through a project, project management tools assist
us in tracking our progress and completing assigned tasks. Because projects do not
need the continuing, devoted full-time roles seen in enterprises, tools enable us to
manage the ad-hoc resources necessary to project success.
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Having these tools and resources at our disposal, however, does not guarantee
the success of a project. We need something that directs the team and the project from
start to finish in order to more precisely initiate, plan, execute, and conclude projects.
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This direction in applying relevant project management knowledge and skills to

the project is accomplished via the use of project management procedures, which are
divided into five process categories and a control system.
Typically, these process groups comprise the following:

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●● Initiating
●● Planning
●● Executing
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●● Monitoring
●● Closing
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These stages need the acquisition of abilities that are unique to these process groups,
referred to as knowledge fields. The ten PMBOK knowledge domains are as follows:
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1. Project Integration Management. The term “Project Integration Management” refers
to the processes and activities involved in identifying, defining, combining, unifying,
and coordinating the many processes and project management activities included
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within the Project Management Process Groups.
2. Project Scope Management. Project scope management encompasses the activities
necessary to guarantee that the project contains all of the work necessary to
effectively finish the project, and only the work necessary.
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3. Project Schedule Management. Project Schedule Management encompasses the
procedures necessary to ensure the project is completed on schedule.
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4. Cost Control for Projects. The term “Project Cost Management” refers to the
activities involved in planning, estimating, budgeting, financing, funding, managing,
and controlling expenses in order to finish the project within the allocated budget.
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5. Project Quality Management. Project Quality Management encompasses the
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procedures for implementing the organization’s quality policy into the planning,
management, and control of project and product quality needs in order to fulfil the
expectations of stakeholders.
6. Project Resource Management. The term “Project Resource Management” refers
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to the methods used to identify, acquire, and manage the resources required to
complete a project successfully.
7. Project Communications Management. The term “Project Communications
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Management” refers to the procedures involved in the timely and proper planning,
collecting, development, distribution, storage, retrieval, management, control,
monitoring, and final disposal of project information.
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8. Project Risk Management. Project Risk Management includes the processes of

conducting \srisk management planning, identification, analysis, response planning,
response implementation, \sand monitoring risk on a project.
9. Project Procurement Management. Project Procurement Management encompasses
the procedures required to obtain or buy items, services, or outcomes from sources
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other than the project team.

10. Project Stakeholder Management. Stakeholder management processes include
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identifying the individuals, groups, or organisations that may have an impact on or be

impacted by the project, analysing stakeholder expectations and their impact on the
project, and developing appropriate management strategies for effectively engaging
stakeholders in project decisions and execution.
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3.2.1 Phases of Projects: Project Process Groups

In project management in general – and especially in the A Guide to the Project
Management Body of Knowledge (PMBOK® Guide) – best practises require the
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performance of a highly precise sequence of process groups. These include initiating,

planning, executing, monitoring and controlling, and concluding. The issue then
becomes: what problem are we attempting to tackle by establishing five distinct process

groups? (They are referred to as process groups in the PMBOK® Guide because each
Notes
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one includes or houses certain procedures that should be done.) The answer is that these
procedures provide us with the organisational framework necessary to design, execute,
and manage a successful project. With that in mind, let us examine each of these process
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categories in turn and find why they are critical to the success of a project.
1. Initiation:
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The PMBOK defines the project initiation phase as “the official recognition of the
existence of a new project or the continuation of an existing project into its next phase.”
During this phase, project managers discuss the project’s business value and
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feasibility. Additionally, you consider the influence on stakeholders. The project is
pursued if it is deemed feasible and beneficial. If not, it has been abandoned.
Additionally, at this step, you must develop a business case that addresses those
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issues. The business case details the project’s expected expenses and benefits.
Additionally, a feasibility study is conducted to determine the project’s viability for the
organisation and its stakeholders. This is followed by a project charter, which details
the project’s who, what, and where.
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There is, of course, further information, such as:
●● Analyses of stakeholders
●● Choosing the team r
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●● Roles and duties definition
●● Choosing the project’s location
●● Making the appropriate selections of tools, equipment, and communication infrastructure
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A launch meeting occurs after the project has been signed and is ready to go ahead.
Utilize a kickoff meeting to get everyone on the project team together and ensure
that the project gets off to a good start.
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2. Planning Phase
Once the project’s commencement phase is complete and the project has received
approval to proceed, the planning phase may begin. The planning phase is when
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stakeholders and the project team determine how to accomplish the project’s or
service’s end delivery.
This is the stage during which you record the project’s plan and establish the project’s
deliverables and requirements. You develop a project schedule that is intended to
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help you manage time, money, quality, modifications, risk, and any other project-
related concerns.
Additionally, you take use of this chance to exercise control over resources like as
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teams, external suppliers, supplies, and equipment. Additionally, you specify team
members’ roles, duties, and their placement within the project’s structure.
Additionally, a stakeholder registration will be established. This is a critical document
that identifies all of the project’s important stakeholders and sponsors. It is a
component of stakeholder management and may involve how and when project
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stakeholders are updated on the project’s progress.

The project manager is accountable for directing the planning phase of the project
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and developing accurate time, financial, and resource estimations. This phase
of the project is when you establish the scope, arrange activities using a work
breakdown structure (WBS), plan procurement, and specify communication routes
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and frequency.
When creating a project management strategy, it’s beneficial to use project
management software to keep your work organised. ProjectManager’s task lists are
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strong and serve a purpose beyond than task collection. The task list view (one of
five possible project views that enable hybrid teams to work whatever they choose)
allows for the assignment of tasks, the attachment of files, the addition of descriptions,
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the assignment of tasks to team members, and the tracking of task progress. Today,
you can try ProjectManager for free.
3. Executing Phase
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At this stage, you are prepared to begin developing the product or service for which
you have planned. As a result, this phase of the project is often the longest. This is
where you will spend the majority of your energy and resources as you attempt to
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keep the project on track while contending with numerous project restrictions.
The execution phase is inextricably linked to the monitoring and controlling phases
of the project. The project manager is responsible for monitoring performance and
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progress in order to verify that real effort matches anticipated effort.
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4. Monitoring and Controlling Phase
While the project manager is implementing the plan, he or she monitors and
oversees performance to ensure that the job is completed on time and within budget.
Continuously monitor metrics to ensure that projects reach their milestones.
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Several critical tasks linked with this project phase include the following:
●● Verification of the scope and control of changes
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●● Control of the schedule

●● Cost containment
●● Control of quality
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●● Reporting on performance
●● Risk management
●● Administration of contracts
5. Closure
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While it is critical to produce the final output on schedule, within budget, and to the
quality standards of your stakeholders, this is not the end of the project. You still have
a few loose ends to tie up. At this time, all activities have concluded and the project has
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been completed, which means you must sign off on paperwork and fulfil obligations.
It is advised to do a post-mortem on the project. The project manager and team do a
post-mortem to determine what worked and what didn’t in order to enhance procedures
for the future project. They do this by outlining best practises and lessons learned.
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Then you may release your staff and toast to the project’s success. The last section
may not seem critical, but it is! Maintaining team morale by acknowledging their
efforts will benefit future initiatives.

3.2.2 Initiation
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The Initiating Process Group encompasses all activities necessary to define a
new project or a new phase of an existing project, including getting authority to initiate
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the project or phase. The Initiating Process Group’s mission is to align stakeholders’
expectations with the project’s purpose, to educate stakeholders about the project’s
scope and objectives, and to explore how their involvement in the project and its related
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phases might assist in meeting those expectations. The Initiating procedures establish
the initial scope and commit the first financial resources. Stakeholders are identified
who will engage with and impact the project’s ultimate result. The project manager is
appointed if one has not been previously assigned. The project charter and stakeholder
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registration provide this information. The project is formally authorised when the project
charter is approved, and the project manager is permitted to commit organisational
resources to project operations.
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The primary advantages of this Process Group are that it authorises only initiatives
that are linked with the organization’s strategic goals and that it considers the business
case, benefits, and stakeholders from the outset. The project manager may be engaged
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in establishing the business case and outlining the benefits in certain companies. In
such companies, the project manager often assists in the development of the project
charter; in other organisations, pre-project work is performed by the project sponsor,
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project management office (PMO), portfolio steering committee, or another stakeholder
group. This standard presupposes that the sponsor or other governing authority has
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authorised the project and has studied the business documentation prior to approving
the project.
Business papers are those that are often created outside of the scope of the project
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but are utilised as input to the scope of the project. The business case and benefits
management plan are two examples of business documentation. The sponsor and
business documentation are shown below with connection to the Initiating Processes.
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Figure: Project Boundaries
As mentioned earlier, projects are often phased. This involves re-examining data
from processes in the Initiating Process Group to see whether it is still valid.
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Revisiting the Initiating procedures at the start of each phase assists in maintaining
the project’s focus on the business requirement addressed by the project. Verification

of the project charter, business documentation, and success criteria. The project
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stakeholders’ impact, motivations, expectations, and goals are assessed.
By including sponsors, consumers, and other stakeholders early on in the process,
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a common understanding of success criteria is established. Additionally, it raises the
chance of final delivery acceptance and stakeholder satisfaction throughout the project.
The Initiating Process Group is comprised of processes related to project
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management such as
a) Develop project charter
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b) Identify stakeholders
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3.2.3 Planning
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The Planning Process Group encompasses the procedures that define and refine
the effort’s overall scope, as well as those that design the course of action necessary
to achieve those goals. The Planning Process Group procedures generate the project
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management plan’s components and the project documentation needed to carry

out the project. Depending on the nature of the project, multiple feedback loops for
more analysis may be required. New planning will very certainly be necessary when
additional project information or qualities are obtained and understood. Significant
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changes that occur over the course of a project may necessitate revisiting one or
more of the planning processes and, perhaps, one or both of the initiating procedures.
Progressive elaboration refers to this continual revision of the project management
plan, implying that planning and documentation are iterative or ongoing tasks.
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This Process Group’s primary advantage is to outline the course of action

necessary to effectively finish the project or phase.
While planning the project and developing the project management plan and other
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project documentation, the project management team solicits feedback and promotes
participation from key stakeholders. When the first planning phase is complete, the
authorised version of the project management plan becomes the baseline. Throughout
the duration of the project, the Monitoring and Controlling procedures evaluate the
project’s performance to predefined benchmarks.
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The Planning Process Group is comprised of the following procedures related to

project management:
1. Develop Project Management Plan Þ Project Integration Management

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2. Plan Scope Management Þ Project Scope Management
3. Collect Requirements Þ Project Scope Management
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4. Define Scope Þ Project Scope Management
5. Create WBS Þ Project Scope Management
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6. Plan Schedule Management Þ Project Schedule Management
7. Define Activities Þ Project Schedule Management
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8. Sequence Activities Þ Project Schedule Management
9. Estimate Activity Durations Þ Project Schedule Management
10. Develop Schedule Þ Project Schedule Management
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11. Plan Cost Management Þ Project Cost Management
12. Estimate Costs Þ Project Cost Management
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13. Determine Budget Þ Project Cost Management
14. Plan Quality Management Þ Project Quality Management
15. Plan Resource Management Þ Project Resource Management
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16. Estimate Activity Resources Þ Project Resource Management
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17. Plan Communications Management Þ Project Communication Management
18. Plan Risk Management Þ Project Risk Management
19. Identify Risks Þ Project Risk Management
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20. Perform Qualitative Risk Analysis Þ Project Risk Management

21. Perform Quantitative Risk Analysis Þ Project Risk Management
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22. Plan Risk Responses Þ Project Risk Management

23. Plan Procurement Management Þ Project Procurement Management
24. Plan Stakeholder Engagement Þ Project Stakeholder Management
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Purpose of Planning Process Group

●● Outline the strategy and tactics necessary to effectively finish the project.
●● Describe how to carry out the remaining procedures in the project.
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●● Identify risks that are not visible upfront
Tasks in Planning Process Group

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●● Establish deliverables for the project with stakeholders based on the project charter
●● Create a project management plan and any necessary subsidiary plans.
●● Establish a project team and outline its members’ duties and responsibilities
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●● Obtain permission for the project’s plan

●● Organise a kick-off meeting

3.2.4 Execution
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The Executing Process Group comprises of those procedures that are carried out
in order to accomplish the work outlined in the project management plan in order to
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meet the project requirements. PMBOK Sixth Edition
The Executing Process Group procedures are responsible for completing the
tasks specified in the Project Management Plan, which is prepared and authorised
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by stakeholders at the conclusion of the project planning phase. It entails organising
resources such as people, equipment, and materials to ensure that work is completed
quickly and effectively and that the project continues to meet its stated objectives.
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The most critical output is Deliverable, which is created in accordance with the
Project Management Plan.
This phase is where the majority of work is completed, as well as where goods and
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deliverables are manufactured, assembled, and generated.
Each successful project requires a strong team, and a strong team is a direct
outcome of a positive work environment built on trust, skills, and capabilities more than
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anything else. The team must be recruited, managed, and developed for maximum
performance. Conflicts are beneficial if they are resolved peacefully via the use of the
appropriate technique of conflict resolution.
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Because the Executing process group consumes the greatest project time
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and resources, expenses are often highest during this phase. Changes will also be
applied throughout the execution phase, but only those that have been approved by
the management or change control board, or by the steering committee In a nutshell,
the Executing process entails organising people and resources, as well as integrating
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and carrying out the project’s operations according to the project’s plan. The project’s
primary outputs are called deliverables, and their creation is the duty of the project
team, which will adhere to the project plan.
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The Purpose of Process Execution Groups

●● Produce deliverables in accordance with the strategy by Coordination of people
and resources
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●● Managing expectations of stakeholders

●● Organizing and carrying out the project’s operations
This stage involves the creation and completion of deliverables. This is commonly
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referred regarded as the “heart” of the project due to the fact that several activities
occur during this time period, including status updates and conferences, growth
updates, and performance reports. Typically, a key meeting marks the start of the
Project Execution phase, during which the project management team is briefed of their
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respective tasks. Several critical responsibilities accomplished during this phase include
developing a team, allocating resources, implementing project management strategies,
and, if necessary, procurement management.
Tasks in Executing Process Groups

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●● Procure resources for the project Execute tasks/projects outlined in the project
management plan

●● Establish a quality management system

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●● Changes and remedial measures that have been authorised should be implemented.
●● Implement authorised Risk Mitigation and Response actions
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●● Ascertain mutual understanding and establish expectations
●● Maintain Stakeholder Engagement in Executing Process Groups via Communication
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Processes in Executing process groups (10 Processes)
1. Direct and Manage Project Work
is the process of combining current and new information in order to accomplish
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project goals and contribute to organisational learning.
2. Manage Project Knowledge
is the process of using existing and developing new knowledge in order to accomplish
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project goals and contribute to corporate learning.
3. Manage Quality
is the process of converting a quality management plan into actionable quality
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activities that include the organization’s quality policies into the project.
4. Acquire Resources
is the process of acquiring team members, facilities, equipment, materials, supplies,
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and other resources essential to successfully finish a project.
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5. Develop Team
is the process of enhancing project performance by enhancing team member
capabilities, team member interaction, and the overall team atmosphere.
6. Manage Team
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is the process of monitoring team member performance, offering feedback, resolving

difficulties, and managing team changes in order to maximise project performance.
7. Manage Communications
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is the process of ensuring that project information is collected, created, distributed, stored,
retrieved, managed, monitored, and finally disposed of in a timely and suitable manner.
8. Implement Risk Responses
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is the process of executing risk response strategies that have been agreed upon.
9. Conduct Procurements
is the process of eliciting seller answers, shortlisting candidates, and awarding a contract.
10. Managing Stakeholder Engagement
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is the process of communicating and collaborating with stakeholders in order to satisfy their
needs and expectations, resolve difficulties, and promote proper stakeholder participation.
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3.2.5 Monitoring and Controlling

The Monitoring and Controlling Process Group comprises of the procedures
necessary to monitor, assess, and control the project’s progress and performance;
identify any areas requiring plan adjustments; and implement the necessary changes.
PMBOK Sixth Edition
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How do you determine the project’s current status? How is the current status of the
project conveyed to the management team at your organisation? How do you keep your

customers informed about the progress of their projects? When, in light of the project’s
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existing state, do you implement modification or corrective action? When do you decide
to let the project continue “as is” without making any changes?
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The Monitoring and Controlling Process Group provided the answers to these questions.
Change is unavoidable. No execution ever goes exactly as planned. Monitoring

and regulating processes enables you to be proactive in identifying possible issues.
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Identification at an early stage enables the team to take necessary remedial action.
Continuous monitoring and control will guarantee that the planning process was
completed properly and that no details were overlooked. These mechanisms ensure
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that whenever a project deviates from the original plan, it is brought back on track.
This process often begins with the project’s inception or early planning and
concludes with a review of the project’s goals and objectives, referred to as the post-
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implementation review. It assists the project manager in staying on track, on schedule,
and within budget.
Monitoring and Closing are included in the Check-Act phase of PDCA. This
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process group communicates with the rest of the process groups.
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Figure: Plan-do-check-act cycle

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The activities in the Monitoring and Controlling Process Group look for deviations
from the project’s intended outcomes.
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Figure: Interaction of process groups
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As seen in the above graphic, the Monitoring & Controlling process group is the
sole one that communicates with the other project management process groups.
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The primary inputs are the project plan and progress reports, which comprise data
gathered throughout the execution process from the project team. This enables the
Project Manager and management to compare actual performance to the plan and, if
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deviations exceed the permissible tolerance, corrective action is done to get the project
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back on track. While resuming the project’s progress, seek for fundamental reasons to
prevent repeating the same difficulties.
The idea here is to keep the ball going with the least amount of danger possible.
Continuous monitoring provides insight into the project’s health, allowing the project
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team to discover areas that need further attention. Additionally, this monitors and
manages the whole of the project’s work.
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The objective of Group for Monitoring and Controlling Processes

●● Maintaining control of changes and making recommendations for remedial or
preventative action
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●● Monitoring performance in relation to the plan

●● Influencing the elements that might defeat integrated change control or configuration
management in order to ensure that only authorised changes are executed
Tasks for Monitoring and Controlling Process Group

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●● Assess the success of a project.

●● Verify and manage project changes
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●● Ascertain that project deliverables adhere to established quality requirements

●● Keep an eye out for any potential dangers.
●● Maintain a log of issues
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●● Maintain a Knowledge Base for the Project

●● Maintain Control Over Procurement Activities

This phase is all about evaluating the project’s progress and performance to
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ensure that everything is running according to plan. Key performance indicators (KPIs)
are used by project managers to determine if the project is on schedule. Typically, a
project manager will choose two to five of these performance indicators to evaluate the
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project’s success:
●● Assessing if a project is on track and under budget in order to achieve stakeholder goals.
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●● It ensures that certain job deliverables are met.
●● Tracking Effort and Cost: The project manager is accountable for tracking the
effort and cost of means in order to assess if the budget is on track. This tracking
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data assists in determining if the project will be completed on time based on
current performance.
Monitoring and Controlling Processes (12 Processes)
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1. Monitor and Control Project Work: is the process of monitoring, assessing, and
reporting on the overall progress toward meeting the performance targets established
in the project management plan.
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2. Perform Integrated Change Control: is the process of examining all change requests,
authorising and managing changes to deliverables, organisational process assets,
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project papers, and the project management plan, as well as communicating the
choices.
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3. Validate Scope: The process of formalising acceptance of finished project deliverables
is called project scope management.
4. Control Scope: is the process of monitoring the project’s and product’s progress and
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managing changes to the scope baseline.

5. Control Schedule: is the act of monitoring the progress of a project in order to update
the schedule and manage modifications to the baseline schedule.
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6. Cost Control: is the process of monitoring the state of a project in order to keep track
of its expenses and to manage changes to the project’s cost baseline.
7. Control Quality: is the process of monitoring and documenting the outcomes of
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quality management operations in order to evaluate performance and guarantee

that project outputs are complete, accurate, and fulfil customer expectations.
8. Control Resources: is the process of ensuring that the physical resources assigned
and allocated to the project are available when needed, as well as monitoring
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planned vs actual resource use and taking corrective action as required.

9. Monitor Communications: is the process of ensuring that the project’s and
stakeholders’ information demands are satisfied.
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10. Monitor Risks: is the process of monitoring the execution of agreed-upon risk
response plans, recording recognised risks, detecting and assessing new risks, and
evaluating the efficacy of risk processes over the life of the project.
11. Control Procurement: is the process of managing procurement relationships,
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monitoring contract performance and making necessary modifications and

improvements, and concluding contracts.

12. Monitor Stakeholder Engagement: is the practise of monitoring project stakeholder

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interactions and adjusting engagement methods and plans for stakeholders.
3.2.6 Closing
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The Closing Process Group encompasses the procedure(s) used to officially
conclude a project, phase, or contract. PMBOK Sixth Edition
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Thus, the project began with the Initiating phase and will conclude with the Closing
Process Group.
A procedure that is often disregarded when resources are diverted to new projects
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or stages and the present project is never adequately closed. This is the smallest
process group, consisting of just one process, Close Project, but it has a significant
influence on the organization’s future, owing to the documenting of lessons learned and
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difficulties, as well as the archiving of all these reports for future referrals.
‘Those operations that are carried out to officially conclude all activities associated
with a project or project phase, as well as the transfer of the finished product to others
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or the closure of a terminated project.’
This process group reviews the documentation to verify they are complete
before declaring the project complete. Additionally, this process includes protocols for
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investigating and documenting the reasons for actions taken in the event that a project
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is discontinued prior to completion. The closure process group encompasses the last
procedures required to complete a project and provide final goods to stakeholders,
including reports.
The project management strategy outlines the procedure for concluding the project.
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Prior to project closure, it is necessary to examine the project management plan to confirm
that all scheduled work has been done and the project has accomplished its goals.
When finished, this Process Group ensures that all prescribed procedures within all
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Process Groups have been performed in order to conclude the project or a project phase,
as applicable, and officially establishes that the project or project phase is closed.
As previously said, it is concerned with three instances:

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●● Project Close: The term “Project Close” refers to the process of concluding a
project with a report that includes a lesson learnt.
●● Completed Phase: If the project is complicated and lengthy, and the performing
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organisation has broken it into manageable parts for delivery, a phase is used. A
phase, similar to a mini-project, will consist of the five process groups, including
the Closing Process Group.
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●● Alternatively, Early Termination: Premature Closure occurs when one of the parties
to the agreement decides to legally end the project early without completing all of
the project’s goals as specified in the Project Charter or in the Agreement.
Purpose of Closing Process Group

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●● Ascertain that the prescribed procedures have been carried out;

●● Obtain the customer’s or sponsor’s approval to officially conclude the project or phase.

●● Conduct an evaluation of the project or phase at the conclusion and record the
Notes
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lessons learned.
●● Maintain current organisational process assets
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This phase denotes the end of a project. A project manager may convene a meeting
dubbed “post mortem” to examine what went well on a project, acknowledge important
team members, and deduce the cause of project failures. This is especially beneficial for
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comprehending lessons learned and incorporating them into future initiatives.
Closing Process Group’s Characteristics
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The closure process group has the following characteristics:
●● The likelihood of finishing the project is greatest.

●● The project’s risk is at an all-time low.
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●● Stakeholders exert the least influence on the project.
●● Costs are greatly reduced as a result of this technique.
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Tasks in the Closing Process Group
●● Acquire final approval of the project’s deliverables
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Transfer of deliverables’ ownership
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●● Obtain closure on all financial, legal, and administrative fronts
●● Produce and deliver a final report on the project.
●● Recognize, record, and transmit learnt lessons
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●● Arrange for the storage and retention of project records

●● Distribute project resources
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Processes in the Group of Closing Processes (1 Process)

●● Close Management of a Project or a Phase of a Project:
The finalisation of a project, phase, or contract is the process of concluding all
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activities associated with the project, phase, or contract.

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Summary
Notes
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●● The project manager briefs the team on the project’s scope, background
information, and timeframe at the meeting. A launch meeting should establish the
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appropriate tone for the project’s execution, monitoring, and control stages. A well-
run launch meeting may pave the way for a project’s successful conclusion.
●● A kickoff meeting is mainly intended to bring the project team together. During the
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discussion, project managers outline shared objectives that the team should keep
in mind while they do their assigned responsibilities. It lays the groundwork for
project success.
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●● A project plan, sometimes referred to as a project management plan, is the
document that details how a project will be implemented, monitored, managed,
and closed. This document defines the project’s goals and scope and acts as a
point of reference for the project team, the wider firm, and stakeholders.
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●● Without a project plan, you run the risk of exhausting available resources and
failing to meet the client’s objectives. A project plan ensures that all stakeholders
have the same vision for the project, creates quantifiable objectives for the project,
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fosters effective communication between team members and stakeholders, and
acts as the basis for project transparency. Without it, you and your team are
setting yourself up for project failure.
●●
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Project planning is a critical step that occurs immediately after project
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commencement in the project management stages. Proper planning divides
the whole project into manageable parts and ensures the timely availability
of all resources. Constraints on the project, such as time, scope, and cost, are
considered during the planning stage, and mitigation measures are devised, if
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possible, hazards are identified. By comparing actual progress to the project plan,
you may also monitor and enhance your team’s performance.
●● A well-planned project is critical to the success of any endeavour. Without one,
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your project is likely to encounter typical project management challenges such as

missed deadlines, scope creep, and cost overruns. While developing a project
plan requires some work up front, the investment will pay off throughout the
project’s life cycle.
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●● A business case is a document used in project management that demonstrates

how the benefits of a project outweigh the costs and justifies its execution.
Business cases are developed at the project’s beginning phase with the goal
of including all of the project’s goals, costs, and benefits in order to persuade
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stakeholders of the project’s worth. A business case is a critical project document

that demonstrates to a client, customer, or stakeholder that the project you’re
presenting is a wise investment. The methods below demonstrate how to write one
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that will influence them.

●● Personnel assigned to a project, such as a sponsor, are assigned certain titles and
tasks and operate within a bureaucratic system. Without a bureaucratic framework
to manage activity and sanction change, projects would swiftly spiral out of control.
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By chronicling actions and exchanging information, a bureaucracy establishes

order and increases efficiency.

●● A project charter is a declaration of the project’s scope, goals, and participants. It

Notes
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begins the process of establishing the participants’ roles and duties and specifies
the project’s objectives and goals. Additionally, the charter outlines the primary
stakeholders and establishes the project manager’s authority.
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●● Managing a project is no easy feat. It is not a continuous process; it has a distinct
beginning and finish. As we advance through a project, project management
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tools assist us in tracking our progress and completing assigned tasks. Because
projects do not need the continuing, devoted full-time roles seen in enterprises,
tools enable us to manage the ad-hoc resources necessary to project success.
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●● The Initiating Process Group encompasses all activities necessary to define a
new project or a new phase of an existing project, including getting authority to
initiate the project or phase. The Initiating Process Group’s mission is to align
stakeholders’ expectations with the project’s purpose, to educate stakeholders
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about the project’s scope and objectives, and to explore how their involvement
in the project and its related phases might assist in meeting those expectations.
The Initiating procedures establish the initial scope and commit the first financial
resources. Stakeholders are identified who will engage with and impact the
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project’s ultimate result.
●● The Planning Process Group encompasses the procedures that define and
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refine the effort’s overall scope, as well as those that design the course
of action necessary to achieve those goals. The Planning Process Group
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procedures generate the project management plan’s components and the project
documentation needed to carry out the project. Depending on the nature of the
project, multiple feedback loops for more analysis may be required. New planning
will very certainly be necessary when additional project information or qualities are
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obtained and understood.

●● The Executing Process Group procedures are responsible for completing the tasks
specified in the Project Management Plan, which is prepared and authorised by
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stakeholders at the conclusion of the project planning phase. It entails organising

resources such as people, equipment, and materials to ensure that work is completed
quickly and effectively and that the project continues to meet its stated objectives.
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Glossary
●● Negotiation: A discussion between two or more parties aimed at reaching agreement.
●● Quality control: Consists of inspection, measurement and testing to verify that
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the project outputs meet acceptance criteria defined during quality planning.
●● Risk reduction: Action taken to reduce the likelihood and impact of a risk.
●● Social capital: The pattern and intensity of networks among people and the
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shared values that arise from those networks.

●● Team building: The ability to gather the right people to join a project team and get
them working together for the benefit of a project.
●● Tender: A document proposing to meet a specification in a certain way and at a
(c
stated price (or on a particular financial basis); an offer of price and conditions
under which a supplier is willing to undertake work for the client.

●● Project planning: The development and maintenance of a project plan.

Notes
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●● Life Cycle: A graphical representation of a life cycle where horizontal lines
connect related front and backend phases, useful specifically in verifying how
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requirements will be checked during deployment.
●● Vendor: A company or person contractually committed to provide goods (either
direct or through a supplier).
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●● Acceptance criteria: The requirements and essential conditions that have to be
achieved before a deliverable is accepted.
●● Work units: Work units provide the measurement units for resources; for example,
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people as a resource can be measured by the number of hours they work.
●● Team development: The process of developing skills, as a group and individually,
that enhance project performance.
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Check Your Understand
1. The business case is owned by the ______________________.
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a) Sponsor
b) Manager
c) Worker r
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d) All of the above
2. Planning Process Group is required to establish __________________.
a) Project Planning
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b) Project Scope
c) Project Budgeting
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3. What is the initial step in project planning?

a) Create the objectives and scope.
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b) Regulate the budget.

c) Excellent the team organizational model.
d) Fix project constraints.
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4. In project planning, it explains _________________ that are wanted to for the growth
of product.
a) a series of activities
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b) steps
c) both a, b
d) none of the above
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5. A project has not ever happened before, and it will never happen again under the
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_____________ conditions.
a) Same condition
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b) Different condition
c) Various condition
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6. Which stage marks the opening of the project?
a) Initiation
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b) Planning
c) Deciding on a project
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d) Closing out the preceding project
7. Project Management contains the tools, techniques, and essential to deal with the
growth of products
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a) Knowledge
b) Skill
c) Attitude r
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d) Confidence
8. In Project Management, the end users and developers need to know the
a) cost of the project
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b) duration
c) Length
d) All the above
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9. The key product is _______________

a) project proposal
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b) Problem Identification
c) Problem Definition
d) Project Planning
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10. In tracking, reporting and controlling, the development engages whether the project
results are in accordance with
a) project plans
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b) performance specification
c) both a and b
d) none of the above
(c

11. A _______________ is a set of actions which are networked in an order and aimed
Notes
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towards achieving the goals of a project.
a) Project
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b) Process
c) Project management
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d) Project cycle
12. Which is a configuration management concept that assistances us to control change
without seriously impeding justifiable change?
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a) Baselines
b) Source code
c) Data model
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d) None of the mentioned
Exercise
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1. Define Project Planning
2. Explain the Project Planning Steps.
3. What is Purpose of a Kick-off Meeting? r
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4. What is Business Case?
5. Define Sponsor.
6. Explain the Responsibilities of the Project Sponsor.
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7. What is Project Charter?

8. What is Six Constraints?
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9. Define Master Plan.

10. Explain the role of Project Process Groups
11. Define Iniation.
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12. Explain the phases of Project Life Cycle.

13. Define Planning.
14. Define Execution.
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15. What is Monitoring and Controlling?

16. Define Closing.
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Learning Activities
1. Create a detailed slide deck on each of the process groups that we have studied in
this unit.
2. Construct a detailed project plan, task-wise how you will apply for your summer
(c
internship with corporates.

3. What are the 5 P’s in project management?

Check Your Understand- Answers

Notes
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1) a)
2) b)
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3) a)
4) c)
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5) a)
6) a)
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7) a)
8) d)
9) a)
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10) c)
11) a)
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12) a)
Further Reading and Bibliography
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1. Stanley E. Portny: Project Management for Dummies, For Dummies, 5th
Edition.
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2. Anh Dao Pham: Glue - How Project Leaders Create Cohesive, Engaged, High-
Performing Teams, G&D Media, 2022 Edition.
3. Pradeep Pai: Project Management, Pearson Education, 2019 Edition.
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Module - IV: Working the Plan

Notes
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●● Role of a Project Manager
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●● Project Coordination: Effective PM Strategies
●● Project Team Considerations
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●● Project Monitoring and Control
●● Monitoring and Controlling Tools
●● Conducting Meetings
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●● Partnering and Relationships
●● Partnering Failures
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●● Contract Types
●● Negotiation
●● Scheduling Charts: Network Diagram Method
●● CPM and Gantt Chart
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●● Types of Resources
●● RAM - RACI, OCA, Other
●● Scheduling Resources
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●● Assigning Work
●● Crashing
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Introduction
The execution phase of a project is often the longest and most complicated step
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of the project life cycle. If you’re not cautious, your team may go off course, have
communication breakdowns, or abandon your well documented protocols. After
devoting time and other resources to developing a project execution strategy, it’s critical
to ensure that you can keep your commitments. Here are some tips for ensuring the
success of the project management execution phase.
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The execution phase entails carrying out the requirements specified in your
project charter in order to offer your goods or services to your customers or internal
stakeholders. The first step is to plan the project. Following that, comes project
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execution. Regardless of how carefully you prepare, your project will fail if your ideas
are not implemented successfully.
Typically, project execution consists of three major components: adhering to

procedures, managing people, and disseminating information.
(c
During the planning phase of project management, you should have defined
methods and procedures to assist you in completing your project within the constraints

of your business. For instance, you may have established procedures for interacting
Notes
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with third-party suppliers that provide critical raw materials.
Adhering to your procedures may assist guarantee that your project runs smoothly.
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Rather of making a succession of time-consuming, ad hoc judgments, you may refer
to your strategy for direction and proceed confidently. However, do not be hesitant
to reassess and shift direction if circumstances or market forces change. Stubbornly
adhering to a plan in the face of justified modification might imperil the whole enterprise.
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While ensuring that your workers adhere to the project’s plan is critical, keeping
people on track is not your primary responsibility. Additionally, it is critical that you
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inspire, support, and cheer for the squad. Pausing to celebrate each incremental
accomplishment is one approach to demonstrate your appreciation for the team and to
motivate them to continue working hard.
Encourage a fair amount of internal conflict. If one of your employees discovers a
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deadly problem in your project, you want them to feel safe raising their concerns.
Include your customers and stakeholders throughout the project’s execution phase.
By keeping stakeholders informed, you may avoid expensive misunderstandings and
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delays. The execution phase of a project is often the longest part of the project life
cycle. Rather of vanishing for weeks or months while you work on the final product,
promote open communication and openness throughout the process.
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Regular check-ins to discuss progress are one technique to boost visibility
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throughout the execution phase of project management. Even better, consider
implementing a work management platform for enterprises to increase openness and
confidence. This way, no one has to wait for a check-in to see how things are progressing.
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4.1 Project Team; Leadership and Project Manager

The project team is the group of individuals responsible for carrying out the
activities and delivering the deliverables specified in the project plan and schedule,
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as directed by the project manager, at the degree of effort or involvement specified

for them. Members of the project team may or may not be engaged throughout the
project’s life cycle and may or may not devote their whole time to the project. Numerous
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responsibilities exist in project teams, including those of the project manager, subject
matter experts, business analysts, and other stakeholders.
1. Project sponsor
Without a project sponsor, the duties and responsibilities of project team members
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would be incomplete. This individual is in charge of the project on a high level. They are
often a member of senior management and are charged for driving the organization’s
overarching vision. The sponsor of the project will establish S.M.A.R.T. objectives, settle
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issues, eliminate impediments, and sign off on all main project components.
Responsibilities
●● Develop a comprehensive vision for the project

●● Make critical choices for the project
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●● Appropriate the budget and any amendments

●● Take stock of the project’s resources
2. Project leader
Notes
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A project leader, or project manager, is largely responsible for supervising the
project’s day-to-day operations. mong the project lead’s tasks and responsibilities
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include ensuring that the project is completed within the specified timeline, within the
specified budget, and meets the specified goals and objectives. Additionally, the project
manager’s duties include the human component. This employee is responsible for
supervising the project team in order to keep everyone on track, minimise difficulties,
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and ensure that everyone knows their specific function within the larger project.
Responsibilities
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●● Make a project plan
●● Manage the plan’s components
●● Distribute responsibilities among important team members
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●● Create a timetable for the project
●● Ensure that team members understand each step.
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●● When difficulties emerge, change courses.
●● Involve team members and top management in communication
3. Project team members
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After appointing a project lead, you’ll need to fill out the support team. A member
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of a project team might be an external consultant hired to develop a new website or
an inside employee who does research and collects input from different department
heads. Full-time or part-time project team member positions are available, based on the
project’s particular requirements.
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Responsibilities
●● Ensure that the project’s goals are met

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●● Carry out assigned duties in areas of competence

●● Meet deadlines for project tasks
●● Communicate with the project’s lead about potential hurdles.
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●● Maintain records of progress, setbacks, and new procedures.

4. Business analyst or manager of resources
Without the appropriate resources, a project cannot operate efficiently. A business
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analyst, often referred to as a resource manager, ensures that the necessary tools are
in place to ensure the project continues to go ahead smoothly. Additionally, they will
propose new technologies as required to optimise the entire process and outputs.
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Responsibilities
●● Resolve issues using available resources

●● Utilize available resources to assist team members
●● Create and evaluate project specifications
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●● Analyze whether or not the resources available fulfil the specified goals
●● Evaluate solutions to ensure their efficacy

5. Committees
Notes
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Projects vary in scope and target audiences. Senior management (Steering
Committee), customers (Project Client), and employees may all serve on committees
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(Project Management Office). Depending on the scope and complexity of your project,
all three of these committees may be included within your project team.
Steering Body - This committee is comprised of top executives from the firm and
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other high-level stakeholders. This group’s objective is to provide strategic direction
for the project. They provide support for the project by resolving issues for which
the Project Manager may need assistance, assisting in steering the project in a new
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direction, and approving budget modifications.
Client - If your project has a direct impact on your clients or customers, it’s prudent
to involve them as members of your project management team. For bigger projects,
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you may even hire a second Project Manager to look after your customers’ demands.
This committee has the authority to approve project plans, seek modifications, raise
concerns, approve timetables, and approve project milestones.
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4.1.1 Role of a Project Manager
A project manager’s (PM) function is to oversee the execution and completion of
a project.
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A project manager may be in charge of developing or implementing new software,
launching a new product, or even overhauling an organization’s marketing approach entirely.
Project managers are often accountable for the successful completion of a

company’s most critical initiatives, and as such, they must possess exceptional
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leadership, coordination, and motivating talents.
Along with supervising all areas of project planning and execution, project
managers are often on hand to handle difficulties and problems that develop over the
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course of a project.
The most effective project managers are adaptable to changing conditions and
adept at motivating their team members.
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The Project Manager’s Role and Responsibilities

Project management is a delicate synthesis of art and science, and in today’s
corporate world, project managers should be familiar with all modern project
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management techniques and industry jargon.
Today’s project management trends have expanded to include several sectors in

terms of human and resource management.
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1. From execution to delivery, everything is planned.

In an ideal world, a project manager would devise a plan for doing more with less.
By more, I mean greater outputs, higher quality, and more customer pleasure, while by
less, I mean less resources and time. Thus, it is the project manager’s responsibility
(c
to determine the shortest and simplest approach to achieve whatever the client or
stakeholder desires. A project manager may choose from a variety of approaches to do

this, including Agile, waterfall, Prince2, and so on. Developing this plan, or rather, this
Notes
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method, is damaging to the team’s functioning and the project’s result.
In general, this project management function entails the following:
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●● Dividing the job into manageable tasks,
●● By decomposing tasks into subtasks,
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●● Establishing a reasonable timeline for the creation of certain deliverables,
●● Defining benchmarks, and
●● Emphasizing the project’s interdependence.
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2. Organizing the team to accomplish a same purpose
Another one of the different project management tasks and responsibilities is to
ensure that the team’s activities are aligned with the organization’s goals. This will need
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some work in order to establish a strategy that will assist the team in quickly achieving
its objectives. This would include you providing everyone with the necessary incentive
to work to the best of their ability. It is the project manager’s responsibility to structure
their team in such a way that their full potential may be shown via their job.
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A project manager may sometimes be required to assume human resource-related
responsibilities, such as:
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Negotiating existing workers’ job assignments,
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●● managing their time and ensuring their dedication to the project,
●● reviewing bids and contracts, and
●● keeping everyone in check to ensure the team’s progress is on track.
3. Effective delegation of tasks
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In certain cases, such as a large project or a project with several tasks, it becomes
necessary to distribute responsibility to teams prudently. It is a leadership style that
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every project manager must adhere to and excel at, and it ultimately becomes a project
manager’s duty that must be learnt through time. A manager should not abuse this authority
by blaming or insulting team members. The duties must be prioritised for the team members
in order for them to be more successful in their talents. Managers should also grasp their
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teams’ strengths and shortcomings and provide responsibilities appropriately. Therefore, be

an excellent leader who promotes trust via effective delegating.
4. Managing the time resource

To generate a favourable impression on stakeholders and customers, project
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managers must determine if the project was successful or unsuccessful. A project

manager must be able to negotiate realistic timelines and communicate them to the
team. They must create a project that has the following characteristics:
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●● Objective
●● Process
●● Estimating duration
●● Schedule development
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●● Schedule control

5. Managing the deliverables associated with the deployment

Notes
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Additionally, the project manager is responsible for ensuring that deliverables are
completed on schedule and within budget. Their role includes asking questions such as:
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●● What changes are taking place inside the organisation?
●● What are the team’s objectives?
●● Why are we pursuing this course of action?
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●● Is there an opportunity or a danger for business?
●● How are we going to do this?
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●● Which project management strategies are most often used?
●● Who is responsible for what?
●● Where are the papers and documentation pertaining to the project?
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●● What are the standards, the timetable, and the meetings, for example?
●● When will everything be completed?
6. Monitoring progress and keeping an eye out for bottlenecks
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The majority of a project manager’s time is spent monitoring the progress of
ongoing projects. After a project is started, the project manager must monitor its
progress and ensure that it is proceeding according to plan. Throughout the project’s
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middle phases, progress is monitored by a variety of procedures, including status
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reports, meetings, and informal updates. This duty will be simplified if project managers
use an effective management system.
We understand how easy it is to get lost in the weeds. That’s why we’ve devised a
convenient system for keeping track of what has to be done and when.
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7. Meetings on a regular basis

Scheduling frequent meetings is a challenge for all project managers, and it is not
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always effective. However, approaches such as the Scrum methodology require that
a daily 15-minute stand-up meeting be held so that the project manager may develop
a team status. You will discover that holding timely meetings with a predetermined
agenda is beneficial to your project and will almost certainly result in success. The
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meeting’s purpose should be accomplished by explicitly presenting the project’s

regulations to the whole team. From the start, project managers should be prepared to
plan for reaching the goals. They may create a meeting schedule and adhere to it until
an emergency force them to cancel the arrangement.
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8. Creating a common vision

A project manager should have a clear vision for the future and the ability to
comprehend the large picture of any project. The vision should be communicated to
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the whole team in order for everyone to grasp the critical nature of their participation in
achieving the desired outcome. The team should be aware of the workload and make
every attempt to transform objectives into missions. The manager should establish the
proper tone to ensure a smoother ride down the road.
9. Documentation and report management

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Finally, after the project is done on time and within budget, the project manager
is responsible for preparing proper paperwork to provide the final reports to customers

and identifying opportunities for future improvement. This is also a significant role of
Notes
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a project management throughout the development phase of a project. It serves two
primary functions:
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●● To keep track of what has been accomplished and who has been engaged in
the project.
●● To guarantee that the project adheres to all project specifications.
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10. Developing a Plan B
The functions and responsibilities of a project manager extend beyond the planning
phase of the project to include preparing for unanticipated occurrences and unpleasant
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situations. A project must be risk-proofed in order for all progress to be preserved
when and if the shite hits the fan. This requires the project manager to understand the
fundamentals of risk and change management. They must be able to:
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●● Make arrangements for more resources.
●● Time management skills are necessary when confronted with adversity.
●● Have a backup plan in place to meet the customers’ expectations.
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11. Developing an autonomous team
In the age of Agile teams, when every department and team is growing smarter
and leaner as a result of Agile practises, it is critical for the project manager to learn
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new management approaches and adopt them for their team. This will assist the team
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in becoming self-governing and cross-functional, which means that you will be assisting
the team in becoming:
●● More capable of overcoming obstacles and adapting to changing customer needs.

●● Greater ability to coordinate with clients and juggle several duties,
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●● More at ease with shifting positions and working in more than one expertise.
12. Maintaining a close-knit team
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Apart from assembling a team of self-sufficient, committed individuals, a project

manager must ensure that the team functions as a cohesive entity. Maintaining team
unity and establishing trust among its members is critical to ensuring that everyone
achieves more and accomplishes more quickly.
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A project manager must assure the following:
●● Each team member receives frequent feedback.

●● Everyone has a firm grasp of their own tasks and responsibilities.
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●● Everybody communicates well.

●● The team has sufficient resources and tools to collaborate effectively.
13. Client coordination
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Additionally, the project manager’s duties include client coordination. To capture

data and assign tasks, a project manager must discuss the project’s needs with
customers and stakeholders. The project manager’s role will be to educate clients on
how they should approach the project and what the team can achieve for them.
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Additionally, it will be the project manager’s responsibility to conduct a review of all

work with customers and stakeholders to evaluate what needs to be changed and what
can be improved.

4.1.2 Project Coordination: Effective PM Strategies

Notes
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Coordination is the day-to-day effort that a project manager does to ensure that
an endeavour stays on track. This involves organising and conveying project and
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assignment data to stakeholders, monitoring work progress, managing project budgets,
documenting critical project routines, and resolving project team roadblocks.
A project’s execution is only as good as its plan. Regardless matter how well-
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designed an effort is, it is the day-to-day coordinating labour that ensures the project
stays on track. In that sense, efficient project coordination may assist you in the
following ways:
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●● Communicate more effectively with stakeholders and team members
●● Eliminate bottlenecks among project team members and keep work flowing
●● Maintain an eye on the project’s timetable and ensure that work is finished on time.
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●● Monitor and manage the project’s budget.
●● Ascertain that project data is conveniently available
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Project Management Strategies
Project management strategies are leadership techniques that project managers
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employ to bind their teams together and overcome certain obstacles. These tactics
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assist everyone in comprehending the project’s requirements and the manager’s
desired progression of each phase.
Why would you want to use project management strategies?

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Project management solutions assist teams in overcoming obstacles, increasing

productivity, and achieving particular objectives. A project management plan establishes the
foundation for improved cooperation, increased output, and more efficient projects. Efficient
projects may save time and money while increasing the project’s overall profitability.
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The following twelve project management tactics can help you increase your
project’s efficiency:
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1. Establish clear objectives early on and keep them flexible

Defining objectives is an important aspect of the project planning process and will
continue to be so throughout the duration of the project as your requirements evolve.
Goals that are clearly specified assist the team in focusing on a single objective and
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provide direction for the project. Managers may establish objectives early on and
employ the following approaches to promote adaptation throughout production:
●● Recognize approaching changes

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The sooner you recognise potential modifications to the project scope or

timeframe, the simpler it is to adjust the project’s objectives in time to optimise
efficiency. For instance, if a customer is analysing pricing options, there is a
significant possibility the price will change shortly. You may adapt your objectives
in response to a prospective price change by including a strategy for both an
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increase and a drop in pricing.

●● Maintain communication with the team

Notes
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Changes that arise unexpectedly might have a negative impact on a project if
they are not communicated to all stakeholders as soon as feasible. Adaptability
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requires regular, transparent communication about expectations, project
scope, and recommended adjustments. Consider using a professional team
management tool to help you improve and sustain effective communication
between team members and leadership.
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●● Prepare for difficulties
Because projects might encounter setbacks and surges, it’s critical to prepare
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for target modifications early on. While the team is developing the project’s
objectives, consider developing contingency plans for any modifications.
For instance, if the timeframe for a project is subject to alter due to material
availability, including this into your original plan enables you to react swiftly
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once the project starts.
2. Comprehend the scope of the project
The scope of a project is its size, which has an effect on the budget, labour
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requirements, and overall efficiency of the project. Larger projects need more personnel
and resources, which may add to the budget and necessitate greater leadership.
Understanding the scope of a project enables project managers to deploy resources
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appropriately and offers a more accurate picture of the project’s timeframe. Conduct
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research on the project’s requirements, the client’s requirements, and the team’s
requirements in order to fulfil project objectives.
3. Maintain effective communication with customers and team members

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Communication is critical to the success of any project because it enables everyone

to comprehend the project’s requirements and possible obstacles. Communication is also
critical for determining customer expectations and adjusting to changes in the project.
Clear, succinct discourse, candid criticism, and pleasant body language all contribute
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to effective communication. By using pleasant gestures to reinforce the words you’re

expressing, body language may help improve verbal communication.
4. Promote collaboration
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Teamwork is critical to the project’s success since many initiatives demand the
collaboration of numerous persons or departments. Encourage cooperation to keep
staff focused on the value of collaboration. As a leader, you may foster cooperation by
actively engaging in the project, providing the necessary tools, and communicating with
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team members about changes, progress, and scope creep.
5. Establish specific expectations

)A
Clear expectations reduce the margin for mistake by bringing everyone together
under the same set of principles. For instance, setting a target of two weeks for the
completion of a project keeps everyone focused on the deadline and fosters mutual
understanding between the customer, team, and leadership. Setting clear expectations
entails communicating often with teams and clients, offering reminders about
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expectations, and receiving feedback.

6. Identify and manage project risks

Notes
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Certain projects have hazards or financial consequences that may have an effect
on the project’s final result. Consider doing a risk analysis before to starting the project
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to identify risks, develop viable solutions, and get an understanding of the potential
harm that risks might cause. The more a project manager knows the risks associated
with the project, the less unexpected they are throughout each phase.
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7. Organize your job using a work breakdown framework.
A work breakdown structure, or WBS, is a technique used by project managers
to divide large projects into manageable tasks for their teams. This assists in breaking
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down huge undertakings into smaller objectives that are often more manageable.
Typically, the WSB model comprises of three levels:
●● WSB level one: The fundamental objective of the project. For instance, by the
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fifth of the month, the team must have completed 800 orders.
●● WSB level two: You break down the primary objective into five to ten
components. The project manager allocates resources and establishes
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timelines for each component and determines risk tolerance.
●● WSB level three: You subdivide each of the five to ten components into
smaller components to specify particular requirements or objectives.
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8. Keep track of your procedures.
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The documentation phase is critical to the success of a project because it provides
the team with a written record of how the project developed. Following the completion of a
successful project, the project manager may analyse the documentation with the team
to evaluate where they exceeded expectations, where they excelled, and where they
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encountered obstacles. This is an important resource for future project planning since it
establishes a framework for success and gives formal confirmation of the team’s capabilities.
9. Make provision for comments

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Feedback from teams and stakeholders may assist a project manager in identifying
critical project variables they may have overlooked throughout the course of the project. The
team and stakeholders often have a different perspective on the project than the project
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manager, which may help you get a better understanding of how the project is progressing.
You may solicit feedback directly or indirectly via follow-up emails and surveys.
10. Commemorate significant events

Milestones are significant objectives achieved by the team during the course of the
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project. Milestones may serve as a focal point for team members and serve as a source
of incentive. To foster collaboration and communication, project managers celebrate
accomplishments with team members. Encourage workers by providing positive comments
)A
when they achieve significant goals. You might say something like “I’m very proud of your
accomplishments” or “Your dedication has inspired me; keep up the good work.”
11. Invest saved funds

When a project is completed efficiently, both money and time are saved, which can
(c
be reinvested in the team or organisation. Consider reallocating finances or resources

to new initiatives that benefit the team’s development or the growth of the firm. For

instance, if a project is completed under budget, you may reinvest the savings in staff
Notes
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development programmes such as communication or software training.
12. Recruit more qualified individuals
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The talents of a team may have a favourable effect on the efficiency of a project,
which makes the recruiting process critical to the success of your endeavours. Finding
the proper employees can add essential talents to the team and help projects move
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forward more swiftly. Consider using a recruiting firm or job application website to
streamline your recruitment process and conduct more in-depth interviews, such as
the following:
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●● What is your strongest ability?
●● How do you react under duress?
●● How do you communicate with the leadership team about issues?
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●● How do you deal with unexpected changes to a project?
4.1.3 Project Team Considerations
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Recruiting the right people for the project with the correct skills, when it is needed
is crucial to the success of a project.
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Generally, a project has two kinds of team members: process and functional.
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Functional people concentrate on the technological aspect of the project.
For example a construction project would have the functional people comprising
construction superintendents and the engineering manager.
The process people would comprise of the project controls team who are adept in
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calculating, planning, scheduling and tracking of costs.
Both functional and process resources are required for a successful project.
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Organisations need project team members with the following:

●● Thorough knowledge of Project Management Principles
●● Highly organized
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●● Precise estimation capabilities

●● Excellent communication skills
●● Very good people skills
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●● Exhibiting self-confidence
Some of the main people in a successful project team:

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●● Project sponsor
●● Project committee
●● Project manager
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●● Team members
●● Team leader

Some everyday responsibilities of project teams are:

Notes
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●● Working with the project manager throughout the project life cycle
●● Finishing the assigned tasks
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●● Meeting all project deliverables
●● Process documentation
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●● Suggesting solutions in case of a constraint
●● Apprising the progress to the project manager
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Effective Project Team Management
Project teams need to be motivated to strive for constant advancement. There are
managers that lead by lead their team by example. These managers take care and
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assure us by creating leaders of the future. These managers give very good outcomes.
Some of the most important strategies for team management are:
The strategies are:
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1. Ensure balance within the team
2. Ensure visibility and transparency
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3. Ensure effective communication within the team
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4. Foster a culture of collaboration
5. Value each suggestion and discuss progress with your team
6. Establish success metrics and reward excelling members
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7. Delegate tasks to groom future leaders

8. Manage internal conflicts
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9. Use all available resources at your disposal to facilitate teamwork

10. Take part in regular team building activities and celebrations
Let’s take a closer look at the 10 strategies and see how they can help you become
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a more effective leader and manage project teams better.
1. Ensure balance within the team

●● Technical capability and general demeanour of members are in consonance
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with what the project needs.

2. Ensure visibility, communication and transparency within the team
●● Reaping the best advantages from every team member
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●● Enhance accountability within the team

●● Monitor the progress
●● Enhanced teamwork, partnership and communication
3. Construct a collaborative culture
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●● No transparency, no effective communication

●● No communication, no chance of a collaborative atmosphere
●● No team member should hesitate to bring forth problems encountered

Notes
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●● Every member’s suggestion should be given a hearing and valued
●● Tasks to be delegated to empower team members
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4. Create measures for success with appropriate rewards in place
●● Healthy competition heightens success of team and project
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●● Rewards scheme to contributing and productive members
5. Conflict Management
●● Conflicts cannot be avoided in multi-member teams
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●● Project manager should not take sides and should always be objective
●● Project manager’s response is to be constructed in tune with the prevailing
circumstance
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●● In professional conflicts – actual goals and objectives should be reviewed and
revisited in order to bring everyone back on the same level.
●● Personal conflicts need some allowance of space and the members in
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question must be inspired to resolve contentious issues cordially.
6. Open to Feedback
●● Project managers need to seek feedback from team to enhance leadership
skills and mode of working r
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7. Team Events and Celebrations
●● Critical to celebrate team’s achievement of major milestones and accomplishments
●● Team celebration with project manager fully participating goes a long way to
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increasing team motivation

●● This also results in better personal relationships for the project manager with
the team.
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4.2 Communication and Conflicts in Projects; Periodic

Progress Review; Time Management
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Conflict is a frequent occurrence in the workplace. A conflict occurs when the

project stakeholders’ interests, needs, objectives, or values collide.
Conflicts should be seen as chances for development and as ways to advance

the project toward completion. Conflicts provide an opportunity for project managers,
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stakeholders, or any team member to bring up and discuss a problem, as well as

reveal unanticipated concerns. It teaches individuals how to be authentic and how to
appreciate and profit from diversity.
)A
Conflict is mostly caused by ineffective communication, weak leadership,

irresponsible conduct, insufficient resources, and a constrained budget. Conflicts that
arise during project management should be handled seriously and professionally,
since they reduce productivity, deplete morale, and encourage improper conduct. To
guarantee the projects’ success, the sooner the disagreement is resolved, the better.
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Conflict management is a skill that project managers possess. Thus, it is critical to

be aware of your conflict management style prior to engaging in conflict.

In the 1970s, Kenneth Thomas and Ralph Kilmann defined five distinct personality types
Notes
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with varying degrees of cooperativeness and assertiveness when confronted with conflict:
●● The Accommodator - The one who disregards his own interests in order
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to accommodate the interests of others. The accommodator is not always
aggressive, but he or she is very cooperative. This method is effective when the
success of the endeavour is more essential than battling the other person’s ego.
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●● The Competitor - The one who pursues his or her own interests at the cost of
another. They are often forceful and act from a position of strength. This technique
is very handy when an emergency arises and a quick choice must be made.
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However, there is a danger of instilling bitterness if this method is abused.
●● The Avoider - The one who avoids or prolongs a problem without resolving
the dispute. This style is characterised by delegation of contentious choices,
acceptance of default outcomes, and a desire to avoid hurting anyone’s emotions.
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This may be an effective tactic if victory is improbable or the battle is little.
However, when the stakes are large, this strategy is ineffectual and inefficient.
●● The Compromiser - The one who makes more concessions than the competitor
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but less concessions than the accommodator. He anticipates that he, as well
as everyone else, will make a sacrifice. This method is advantageous when all
opponents are at a stalemate and a deadline approaches.
●●
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The Collaborator - The one who strives to provide a solution that addresses the
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interests of all parties. They are not just forceful, but also considerate to others’
perspectives. They make an effort to create win-win scenarios. This technique is
an excellent method for resolving and managing disagreements.
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Once project managers have identified their preferred method of conflict resolution,
they should approach the dispute by understanding the issue, debating potential
solutions, and establishing agreement to settle the resulting conflict. While debating
topics and establishing agreement, it is critical for project managers to consider diverse
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views and prejudices. Individuals have varying perceptions and prejudices as a result of
several variables such as culture, race, ethnic origin, and previous project experiences.
These variables interact to shape the perceptual filters through which we see conflict.
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Another critical thing to consider is the “messager’s impressions.” In other words,

the way team members and stakeholders see project managers as individuals will have
an effect on the dispute.
As project managers, you may want to first understand your preferred style of
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conflict resolution and then the perceptions, prejudices, and prior experiences of others
before attempting to provide a solution to the issue.
)A
4.2.1 Project Monitoring and Control

Monitoring and control procedures monitor, assess, adapt, and report on the
project’s performance on a continuous basis. It is critical to determine how a project is
progressing and if it is on schedule, as well as to execute agreed revisions. This keeps
(c
the project on schedule, on budget, and on time.
What is project control?

Project control is defined as a “project management function that involves

Notes
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comparing actual performance with planned performance and taking appropriate
corrective action (or directing others to take this action) that will yield the desired
outcome in the project when significant differences exist,” according to the PMBOK®
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Guide (the Project Management Body of Knowledge).
Project controls are essentially a set of tools that assist keep a project on track.
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They give information that allows for informed decision making when combined with
people skills and project experience. The project management process is primarily
concerned with:
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●● Measuring planned versus actual performance.
●● Continuous evaluation of the project’s performance to identify any preventative or
corrective measures that are required.
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●● Maintaining correct, up-to-date information based on project output and supporting
documentation.
●● Providing data to assist status updates, forecasts, and progress measurement.
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●● Providing projections that keep current expenses and project schedules up to date.
●● Keeping track of the execution of any authorised alterations or timetable changes.
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The significance of project monitoring and control
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Projects are kept on track by monitoring and management. The proper controls
may play a significant role in finishing projects on schedule. The information
obtained also enables project managers to make educated choices. They can seize
opportunities, implement changes, and prevent crisis management concerns.
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Simply put, monitoring and control guarantee that activities are completed in a
timely and efficient manner. Productivity and efficiency are increased as a result.
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Method of monitoring and controlling

Establishing project baselines is the first step in establishing a project’s monitoring
and control procedure. This comprises the project’s scope, timeline, and budget. Use
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this data to track the development of the project during its lifespan.
A Work Breakdown Structure (WBS) may be used to divide a project into tiny
pieces of work, or sub-tasks. This makes it easy to oversee and analyse the work. This
provides for better problem discovery, keeps the project under control, and allows for
m
simpler progress verification. It also keeps team members from feeling overburdened.
With a work breakdown structure in place, follow this process throughout the
project’s lifecycle:
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Notes
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in
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Techniques for monitoring and controlling
Project managers may use a variety of monitoring and control strategies, including:
●●
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Requirements Traceability Matrix (RTM). This links the needs of the project
to the deliverables. The matrix establishes a link between two baseline papers.
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This increases the visibility of the project’s tasks. It also precludes the addition of
additional activities or requirements to the project without prior approval.
This increases the visibility of the project’s tasks. It also precludes the addition of
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additional activities or requirements to the project without prior approval.

●● A control chart keeps track of the project’s quality. There are two types of control
charts: univariate and multivariate. A univariate control chart shows one project
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feature, while a multivariate chart displays many.

●● Review and status meetings are used to further investigate issues and determine why
something occurred. They may also flag any difficulties that may arise in the future.
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4.2.2 Monitoring and Controlling Tools

Monitoring and controlling a project is the process or actions through which the
project manager monitors, assesses, and revises the project activities to ensure that
the deliverables are created in compliance with the project goals. Projects need active
m
management due to their one-of-a-kind and transient character. A project, unlike a

process, is intrinsically unstable since the same set of actions has been repeated such
that habits and expectations are stable. The activities are unique to the project or the
)A
sequence of activities, and resources are only allocated and connected with the project
for a limited time before being redeployed after the project is completed. Habits and
patterns do not form before everything changes.
The major outcomes of the Monitoring and Controlling procedures are project
(c
performance reports and project change implementation. The examination of project

performance to determine if a change in the plan for the remaining project activities
is required to accomplish the project objectives is the focus of project management.

Almost every project, in my experience, will need a modification in the plan at some
Notes
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point. Traditional projects are the most stable since the criteria and activities are fully
defined and known. The least stable programmes are adaptive and extreme. They will
need tight supervision and multiple adjustments - if nothing else, the project manager
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will be required to modify the activities of subsequent phases based on the outcomes of
earlier activities.
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The tools and procedures used by project managers to undertake project
monitoring and control fall into one of four broad categories. The first step is to gather
project performance data. Pulse meetings, variance reports, and programme reviews
are examples of techniques that support this category. The second category is project
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performance analysis to assess if a project change is required. Technical reviews,
project forecasting, and problem solving are examples of techniques employed in
this area. The third category is project performance reporting. This activity is aided
by the use of a Project Management Information System, Management Reviews,
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and Dashboards. The last category is project change management. The most typical
strategy I use in this area is the keeping of a Change Management Log. There are two
types of project management tools and methods that are used to assist the Monitoring
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and Controlling process but are also utilised in other areas of the project lifecycle.
These are significant enough to warrant their own page.
Tools and Techniques for Project Communication
1. Pulse Meetings
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Pulse meetings are brief team status meetings in which the project management team
gathers project performance data on ongoing operations. These meetings should be
held on a regular basis and may be face-to-face or virtual. They are usually just a
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few minutes long. During the meeting, the start and end dates of project activities
are reported. Furthermore, the status of any ongoing activity is conveyed to the rest
of the project management team. When issues arise in any of the current activities,
they are resolved in a separate meeting with the necessary personnel present. The
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problem resolution meeting may take place immediately after the Pulse meeting, but
it is obviously a different meeting, and project team members who are not required
for issue resolution are not required to attend. The frequency of the Pulse meetings
is governed by the project’s progress. When in Extreme mode, the Pulse meeting
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may occur numerous times each day. Projects that are doing well may only need a
Pulse meeting once a week.
2. Variance Reports
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Variance reports are formal reports produced by the PMIS, the Earned Value
Management System, another business management system - such as the quality
control system - or a project supplier. Variance reports compare what actually occurred
on a project to what was projected to occur on the project. A variance report normally
)A
includes both the absolute amount and a percentage representation of the difference.
The actual performance of a project activity (such as cost or duration) seldom
matches the expected performance specified during project planning. The Estimating
page discusses why project estimates are seldom exact. However, since estimates
(c
are sometimes inaccurate, it is critical for the project management team to detect
variations in order to understand what is really occurring on the project. Variations
might reveal both positive and negative project risk.

Project variance reports are often written with two references. The first reference
Notes
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refers to what was intended to have occurred since the previous reporting cycle.
This is sometimes referred to as the “Current Period” variance. It indicates how
successfully project resources performed project operations in line with the project
in
plan in the recent past. The second point of reference is what was intended to
have been completed on the project since it began. This is sometimes referred to
as the “Cumulative” variance. It indicates how successfully the project resources
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have performed project activities throughout the project lifetime. Any prior variations,
positive or negative, will be included into the cumulative variance. The current period
variance accurately depicts what is occurring on the project right now. The cumulative
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variance removes the impacts of any short-term, good or negative, circumstances
that impacted the project during the most recent reporting period. Both variations
contain valuable information.
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3. Program Evaluations
Program Reviews are meetings between project team members and sub-project
leaders to discuss the current state of the programme in relation to the original
programme plan. These are often utilised on large-scale and complex projects.
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Unlike Pulse Meetings, which concentrate on day-to-day activity, Program Reviews
stress the large picture and the integration of activities and sub-projects covered
by the programme. The issue is whether the programme activities and sub-projects
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are likely to conflict with one another. Furthermore, when I have a supplier that is a
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big contributor to the programme and is executing customised work on it, I will have
Program Reviews with the supplier for their share of the programme. Management
Reviews and Program Reviews are occasionally combined. This is not a strategy
I would suggest. The risk with this method is that important stakeholders and
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managers may scare certain project team members into presenting an open and
honest assessment of the program’s status.
4. Technical Evaluations
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Technical reviews are formal meetings with subject matter specialists who are not
project team members. These are in-depth evaluations that concentrate on a specific
technical component of the project. Design reviews, code reviews, security reviews,
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and production readiness reviews are a few examples. The reviewers should conduct
a thorough examination of the project deliverables and activities to evaluate if the work
has been completed fully and appropriately. Typically, these assessments will create
a list of activities that must be accomplished. These activities may need more testing
or analysis. In certain circumstances, redesigning systems, software, procedures, or
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products may be required. The findings of these reviews are usually presented to top
management during the following Management Review. Before a project may move
to a toll-gate meeting, the technical evaluation must often be completed. When the
)A
Technical Review is connected to a toll-gate meeting, the action items do not have to
be completed before the toll-gate meeting. Any unresolved action item, on the other
hand, is placed on the risk register, and the strategy for resolving that action item is
incorporated in the project plan for the following phase.
5. Project Forecasting
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Project forecasting is analysing project status information and projecting current

project performance to the project’s conclusion. Forecasts may be established

for project time, total project cost, project delivery performance/quality level, or
Notes
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any combination of these. A critical component of forecasting is reviewing the risk
events that have happened as well as the remaining risk triggers. A more in-depth
explanation may be found on the Project Risk Management page. A word of caution
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when forecasting: make sure you have enough knowledge to anticipate performance
realistically. My own rule of thumb is to wait until an activity, phase, or deliverable is
at least 25% finished before attempting to predict. Prior to that moment, I keep to the
nl
initial estimate, which has been updated by any relevant risk mitigation efforts that
have taken place.
When projecting project length, it is necessary to understand the schedule
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performance and schedule risk of the critical route activities. Those actions will be
responsible for the project’s completion date. This may be especially challenging for
a resource-constrained project, or a project with variable resource availability, since
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the absence of resources causes the critical route to shift. In this situation, I have
not discovered a suitable solid technique for anticipating schedule. It usually boils
down to professional opinion and gut instinct. When a project must be completed
by a certain date, I often shift my schedule tracking to a countdown mode in which
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everything is quantified in terms of how many days till project completion. In addition,
I will Pulse the project more regularly to rapidly determine when I think we are slipping
behind. If it seems like micromanagement, it is because it is.
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I like to utilise the forecasting methodologies contained in the Earned Value
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Management system for projecting overall project cost. Unfortunately, many firms lack
the financial processes required for earned value management. When this occurs,
I am forced to depend on trend forecasting, sometimes known as “straight-line”
forecasting. Trend forecasting analyses current project expenditure and extrapolates
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it till the conclusion of the project. This offers a ballpark estimate, but it does not
account for the fact that various activities may need varying amounts of spending.
The resources used to complete the subsequent tasks may be more expensive or
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less expensive than the resources used to complete the previous actions. It also
does not account for the fact that the project may be ahead or behind schedule. If
the project is ahead of schedule, the money spent to get there inflates the projected
value of the project’s ultimate cost. If the project falls behind schedule, the lack of
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expenditure results in an overestimation of the entire project cost.

I depend significantly on prototypes and early analyses when projecting the
performance or quality of project deliverables. When a project lacks them, the chance
that it will not meet the target performance or quality defined during project planning
m
increases. If the most essential feature of the project deliverables is performance,

the risk of exceeding the projected project length or cost is substantially greater. The
“Rule of Ten’s” idea is at work here. According to this notion, the cost of resolving a
technical problem increases by a factor of ten as the project progresses from one
)A
phase to the next. As a result, it is critical that performance concerns be recognised

as soon as feasible.
6. Solving Issues
Problem solving is a vast subject. There are a plethora of problem-solving
(c
methodologies. When it comes to this approach, my rule of thumb is that if you have
a procedure that works for you, utilise it! I propose that you come to an agreement

with your project’s core team members or key project stakeholders on the problem-
Notes
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solving approach that will be employed. Will it be a group effort or an individual effort?
Will you rely on data from previous projects or simply on data from current project?
How will recovery activities be defined and authorised after the underlying cause has
in
been identified? As previously stated, there are several problem-solving approaches,
and their responses to these and other problems vary. The most crucial thing, in my
opinion, is that you have a mechanism in place to resolve difficulties rather than leaping
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to conclusions or, worse, ignoring the situation until it becomes a catastrophe.
If you don’t already have a problem-solving strategy, then refer to the following strategies:
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●● Clarify: Define the issue. What stage of the project did it occur in? Who were
the people involved? When did it take place?
●● Investigate: Look into the specifics of what occurred. Collect data from the
project activities as well as the surrounding surroundings. Determine the
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underlying cause(s) of the issue.
●● Evaluate: Evaluate the problem-solving possibilities. Consider the influence
that each alternative solution is likely to have on the project’s goals. What
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additional hazards come with each conceivable solution.
●● Select: Choose one of the feasible solution/recovery options. If necessary, consult
with important stakeholders before making a decision. This must be done anytime
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the answer would have an influence on a project boundary condition.
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●● Implement: Put the chosen solution/recovery route into action. Modify the
project plan to reflect any changes in scope, resources, or activity schedule
dates. Refresh the risk register.
●● Validate: Ensure that the solution/recovery route is producing the expected outcomes.
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7. Information System for Project Management

On the Executing Tools and Techniques page, the Project Management Information
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System (PMIS) was thoroughly covered. The PMIS is a collection of communication

channels used by the project team to exchange project plans and outcomes. The
PMIS may be either a physical or electronic system. In any case, the PMIS serves
as a clearing house for project information, such as project plans, project status,
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project risks, project modifications, project meetings, and any other information that
the project management team deems is useful to the project team.
8. Management Evaluations
Project Management Reviews are formal, recorded meetings with the project team
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and key stakeholders to examine the project’s current state in comparison to the
initial project plan. Unlike the Pulse Meetings and Program Reviews, which are
data gathering meetings focused on understanding the project’s current status, the
)A
Management Reviews are with key stakeholders with the emphasis on whether the
project’s performance is adequate for the project to deliver on the overall project
objectives. If the project has faced problems, such as resource limits or scope creep,
the stakeholders performing the review are often able to help the project team in
overcoming these problems.
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The framework of these assessments is often determined by the stakeholders and

tackles the issues that are most relevant to them. The review might take the shape

of a formal stand-up meeting, an informal chat, a written report, or an update to

Notes
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an electronic dashboard. Whatever approach is utilised, these are official status
reporting meetings and must be regarded as such. For any questions that occur
during these reviews, the project manager should maintain an Action Item list or a
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Stakeholder Issue journal. Minutes from these meetings should also be kept as part
of the project records.
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9. Dashboards for Projects
Dashboards have grown as more firms begin to manage projects as part of a portfolio.
A dashboard is an excellent tool for recording and displaying a snapshot of a project
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to stakeholders. Dashboards include a subset of project status data that is used to
determine if the full project is on track. The dashboard data is used to make choices
about modifications to projects or the project portfolio.
Dashboards were used by project managers within a project team to concentrate
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the project team on the few critical factors that would drive project performance. As
a result, the current key route activity is monitored for schedule status, the current
activity with the greatest uncertainty in resource needs is monitored for cost status,
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and the most difficult activities are monitored for project performance/quality. This is a
great way to utilise dashboards, particularly when working with a remote project team.
As more businesses have elected to manage their projects as a portfolio of
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projects, they have realised the necessity for a method of comparing the portfolio’s
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projects both against one other and against their goals. The dashboard provides
that mechanism since each project reports on critical indicators that are utilised by
senior management or the Project Management Office to assess the progress of the
projects. The dashboard often monitors the status using the “Red light - Green light”
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technique. Colors are used to reflect project status on the important metrics in this
sort of grading. A “Green light” signifies that everything on the project is proceeding
as expected. A “Yellow light” indicates that there are some issues, but the project
team is working on them and should be able to solve them. A “Red light” signifies
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that the issue is so serious that the project team will be unable to fix it and meet the
project goals without the assistance of stakeholders. The Dashboard is used by the
senior management team and the PMO to make resource allocation decisions and
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to schedule special Project Management Reviews.

10. Change Management Log
This tool is incredibly simple to use. As the project’s complexity grows, so does the
requirement for it. I can’t image doing a Complex job without one, but I’ve never
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done a Simple one with one. A Complex project need this since these projects are
handled as a collection of Focused and Full-scale sub-projects. As projects evolve,
the borders between these sub-projects will unavoidably shift. Changes may occur as
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a result of changing milestones. Changes might occur as a consequence of activity

deliverables that are transmitted across projects. In any instance, changes in one
sub-project reverberate into modifications in another. The Change Management Log
keeps track of how the change is being implemented throughout the sub-projects. It
may also follow the execution of a modification inside a project, which is particularly
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useful if the project activities are carried out in several locations or if multiple phases
are running concurrently. The Change Management Log functions similarly to an
action item list. Each item is monitored to verify that it is finished.

4.2.3 Conducting Meetings

Notes
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It is a truth of business life that every project need regular meetings when
stakeholders gather to discuss the project’s objectives, allocated duties, and progress.
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It is the project manager’s responsibility to decide how often to meet and to prepare an
agenda for each meeting. This is not a simple task: if you squander people’s time, they
will grow disgruntled and uncooperative, jeopardising the project’s success.
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General Guidelines for Conducting a Project Meeting
●● The real project work should be completed outside of the conference.
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●● Meet only when there are no other viable options for achieving your goals.
●● Consider alternatives to holding a meeting to disseminate information, such
as utilising electronic tools wherever available. Bringing individuals together
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physically to communicate status or information is seldom acceptable.
●● A weekly gathering should be avoided.
●● Meetings should be kept as short as feasible.
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Meeting Types
●● Kickoff: Present the project objectives, introduce the members, and settle on
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specific logistical issues; the project sponsor generally talks to the team and builds
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excitement the first time they gather together.
●● Planning includes creating a project plan, assigning roles and duties, and making
choices on how the project will be carried out.
●● Walk-through: Examine the project plan and/or relevant documents to identify
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issues and clarify information.

●● Problem Solving: Solve challenges that need the participation of several team
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members and/or management; develop alternate solutions.

●● Debrief: Disseminate crucial information to higher-level management.
Concentrate on the objectives, outcomes, budget, and timeline; obtain permission
for further actions as needed.
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●● Presentations: At the conclusion of the project, make a formal presentation to

managers, stakeholders, and others regarding the outcomes.
●● Milestone: When crucial intermediate stages are accomplished, do formal
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evaluations of progress versus plan at critical points stated in the project plan;
report interim findings.
Taking Charge of a Project Meeting

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It is critical for the team to meet on a regular basis to make choices. Meetings with
persons who do not report to you or who have higher positions in the firm than you may
be facilitated. They may want to take control of the meetings. Establish clear protocols
from the start. Inform everyone that, although you will be chairing the meetings, the
(c
choices will be made by them. Your responsibility is to assist the group in making
sound judgments.

To keep meetings on schedule, use these easy guidelines:

Notes
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●● Make use of technology to make your meetings more efficient.
●● Plan meetings meticulously. Inquire with the team members about specific goods
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or goals.
●● Determine the purpose and goals. Every meeting must have a goal, something to
achieve. Objectives are precise outcomes that serve as yardsticks for achievement.
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●● Distribute the agenda in advance. Include any material that needs to be examined
ahead of time in order to facilitate discussion and decision making. Create an
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agenda and a timetable to attain the intended results.
●● Stick to the plan. Examine the purpose and goals of the conference. Stick to the
times you’ve set. Whether it seems that an item will need extra discussion, ask the
group if they want the discussion to be extended and which agenda item should be
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given less time.
●● Assign responsibilities. Most meetings need a facilitator, someone to record the
meeting and/or write on the flip chart, and someone to keep track of time.
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●● Begin and conclude on time. If someone is running late for a meeting, start without
them. People who arrive on time should not be punished.
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Use a flip chart to keep brainstorming items or other relevant information in front of
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people and to spark debate. As needed, transcribe these notes into the minutes.
●● Allow each participant to have a turn speaking. This helps to keep the talks on
track and ensures that everyone’s opinions are heard.
●● Maintain emphasis on the group’s purpose, goals, and agenda.
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●● Relive the conference. Review the choices, achievements, and action plan at the
conclusion of the meeting to ensure that each decision is followed out by a specific
person within a certain period.
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●● Participants should be given meeting documents as soon as practicable following

the meeting.
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Documentation of Meetings
Taking minutes during project team meetings is often delegated to the
administrative professional. Documentation for meetings should be succinct and to
the point. In most circumstances, it is unnecessary to preserve detailed records of all
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talks. Record the group’s choices as well as an action plan outlining what will be done
by whom, when, and how these actions will be assessed. If the group creates a list of
ideas, make a note of them for future use. Distribute the document right now. Include
additional tasks in the master plan.
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Meeting Characteristics
Meetings include several complicated interactions. Some of them are foreseen. Try
to anticipate and deal with these encounters as they occur. These are also known as
(c
team, group, or meeting dynamics. Some of these are tied to the work, while others are
related to the personalities.

Guidelines for running a Meeting

Notes
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●● Establish ground rules. At the initial meeting, the team should adopt a code of
conduct and publish it at each subsequent meeting.
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●● Model the desired behaviour. To express your expectations to the group, use
active, aggressive communication.
●● Keep meetings on track by focusing on the purpose, goals, and agenda.
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●● Encourage everyone to participate fully. Make a practise of walking around
the room and asking each individual for their opinion on each subject in turn.
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Encourage individuals not to talk out of turn.
●● Concentrate on the facts. Request that each participant provide facts to back up his
or her claims. Maintain the group’s emphasis on making sound, fact-based choices.
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●● Look for alternatives. Review the available material for each agenda item and ask each
participant for his or her opinion, insight, thoughts, interpretation, or alternate solutions.
●● Please express your point of view. After the team members have expressed their
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thoughts and information, you should share yours. It’s critical that folks understand
where you stand.
●● Clarify any concerns. When there is doubt, misunderstanding, or major dispute,
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urge everyone to explain and ask clarifying questions yourself.
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●● Analyze with objectivity. Ask the group to be as impartial as possible while
providing ideas and deciding between possibilities.
●● Discuss the ramifications. Request that everyone discuss the implications of
any proposed choices. Concentrate on people and circumstances. Discuss the
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advantages and disadvantages and attempt to balance the potential outcomes.

●● Summarize the conversation. Bring all of the facts and thoughts that have been
discussed together and propose the developing solution.
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●● Seek agreement. Continue the conversation until the group reaches an agreement
on the next course of action. They may not “like” the outcome, but they all agree
that they can “live with it.” It is critical to establish a win-win situation and prevent
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the win-lose repercussions of a vote.

●● Examine the meeting. Schedule a few minutes at the conclusion of the meeting
for the group to reflect on what has happened. This is not the time to repeat the
topics, but rather to express thoughts and views regarding how efficient and
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successful the meeting was and how it may be improved for the next time.
4.2.4 Partnering and Relationships

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Partnering is a project approach designed to allow the design and construction

process to be performed within an environment of mutual trust, commitment to shared
goals, and open communication among the client, architect/engineer, construction
manager, general contractor (if applicable), and subcontractors. Partnering establishes
a working relationship among all of the team members based on a mutually agreeable
(c
plan of cooperation and teamwork. Parties to the design and construction process, in
agreeing to work under a partnering approach, work to create an atmosphere in which

all parties are working in harmony toward mutual goals to avoid claims and litigation.
Notes
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Partnering as a concept has attracted a great deal of attention due to the tremendous
amount of litigation which has occurred in recent years in our industry. Adversarial
relationships and resulting claims and litigation have resulted in huge legal costs on
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many construction projects. Partnering has shown that this does not need to be the
way. Through close communication and establishing mutually agreeable goals at the
beginning of the project, outstanding results can be achieved with no necessity for
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outside lawyers. The objective is a “win-win” attitude between all parties due to the
design and construction process. There are already numerous examples of completed
projects which have proven that the partnering process works. The essential elements
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of a partnering agreement are as follows:
●● Commitment to partnering by the top management of every organization involved

in the project.
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●● Trust relationship between all parties through personal relationships and open
communication with mutual sharing and understanding of each party’s risks and goals.
●● A partnering charter developed jointly by all parties to the project which identifies
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specific mutual goals and objectives of the partnering participants for continuous
evaluation and review against the agreed upon mutual goals.
●● Timely resolution of any disputes at the lowest level possible during the project.
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When two or more companies work together on a project, the quality of the final
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product rises, the likelihood of completing the project on time and within budget rises,
and the likelihood of claims and litigation falls.
Advantages for the proprietor

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●● Close communication and frequent monitoring of the project’s progress allow for
greater control over time and expense.
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●● Because the team members aren’t distracted by hostile relationships, the product
is of a far higher quality.
●● Partnering has the ability to provide for a claim-free project. The employment of outside
counsel and avoiding the need to prepare a case may save administrative expenses.
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●● Improved value engineering and constructibility reviews via open communication

and trust.
●● A more effective project delivery process leads to higher profit potential for all partners.
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For the general contractor and the construction manager.

●● Active participation in problem resolution early on helps to minimise delays and
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cost overruns.
●● The removal of antagonistic connections and the creation of cases has resulted in
increased productivity. Claims lawsuit risk is reduced by resolving problems early
in the project.
●● Increased possibility for profit.
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Benefit to Architectural and engineering consultants

Notes
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●● Reduced exposure to liability for document defects by conducting an early
examination of the documents.
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●● Reducing risk of claims and lawsuits by proactive, collaborative problem-solving
leads to lower administrative expenses and more profit possibilities.
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Benefits to subcontractors and suppliers
●● Improved cash flow as a consequence of less or fewer disagreements that result
in payments being delayed. Increased engagement in the project’s decision-
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making process as an active team member.
●● Averting accusations and lawsuits by resolving project disagreements at an early
stage. Finally, a “win-win” mentality increases profit possibilities.
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4.2.5 Partnering Failures
It is possible for a project to fail at any time and in any company. There are an
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unlimited amount of reasons why a project will fail. Project managers and team
members can’t always plan for the unexpected. Failure can be prevented in certain
cases. Failed initiatives and the individuals engaged in the failure have several
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characteristics. In both circumstances, patients are prescribed “quick solutions” that are
usually useless and might lead to serious adverse effects.
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Flu viruses, to use a medical example, are resistant to antibiotics. Technology is
frequently recommended as the antibiotic for projects. Use the critical chain instead of
the critical route to follow the project’s progress, or use a Monte Carlo simulation to
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estimate project risks. These potent therapies often go awry because they are used in
the wrong context.
Successful products and services are the ultimate aim of project management.
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Management, project managers, team members, and others engaged with the projects
often make mistakes of omission and conduct. There are various reasons for project
failures, and surveys and questionnaires may be used to identify the most prevalent
ones and offer information that can be used to prevent them from happening and in
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many instances repair the damage they have done and potentially save a project.
Seven project performance criteria are the most usually neglected, and as a result,
many projects fail.
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●● Don’t get bogged down in the nitty-gritty of the technology. The first step here is
to connect the dots between the project and the organization’s most important
strategic initiatives. The project plan should include the expected delivery, the
business transformation that is necessary, and the methods of realising the
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project’s expected advantages.

●● Establish defined responsibilities for measurable outcomes and hold those
responsible accountable. Projects, their advantages, and their success criteria
must all be well understood before any decisions can be made. First, a reasonable
(c
baseline of requirements must be established before any further work can begin.
It’s possible that requirements may continue to rise. “Learning what the needs are”
is common in most initiatives.

●● Ensure that all checkpoints are handled in a consistent manner. In order to

Notes
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evaluate the validity of schedules, prices, quality, and other project-related criteria,
successful big projects often incorporate software measurement tools that capture
productivity and quality historical data. Cost and schedule overruns may be
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exacerbated by a lack of appropriate quality-centered methods.
●● Plan and implement initiatives in a consistent manner. Before a release date for
a project is declared, a thorough strategy should be prepared. One of the most
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common causes of projects spiralling out of control is a lack of proper planning.
●● At the start of the project, include the client and keep the customer in the loop as
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the project progresses, so that the necessary modifications can be made jointly.
End users (customers) and project team members working together in the same
cubicle has been found to produce effective projects, however this is not always
practicable. The likelihood of a project failing is reduced if consumers are involved
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in the requirements elicitation, product definition and implementation process.
Asked by customers: How will my project outcomes be utilised throughout time
and what will I receive out of the results?
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●● Ensure that project efforts remain in a state of peak efficiency by effectively
leading and motivating a team. Management and retention of high-skilled and
productive employees is a key part of this process. Knowledge is a commodity that
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may be exchanged for money. The financial value of a well-paid project team is
greater than the dollar value of a low-cost team that requires weeks or months of
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training before they can begin to be productive.
●● In order to continually deliver effective projects, provide the project team members
with the necessary tools and approaches The project’s personnel must be well-
trained and well-versed in their respective fields, with roles and duties clearly
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established. Otherwise, those who are required to do so will have to have access
to knowledge that will help them.
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The following are the most typical causes of partnership failure:

1. Differing life stages
It’s critical to understand where you and your partner are in your lives. Both of you
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are at different phases of life, for example, if you are an empty nester compared to
your business partner, who has two young children. Both of you can still contribute to
the company, even if you don’t see eye-to-eye. It just implies that your life’s priorities
will be altered. Parents with small children can’t be expected to drop everything and
mend anything. An empty nester should not be expected to work all-night shifts for your
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firm. You may anticipate potential difficulties just by being aware of the influences that
different life phases have.
2. Lack of hunger
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For every firm to succeed, employees must be motivated and driven. Does your
partnership have a desire to succeed? Are the hunger levels comparable? If you’re
starving and your spouse isn’t, it’s possible that you’ll get angry at each other. Over
time, hunger levels will fluctuate. Despite the fact that they are seldom perfectly
(c
matched at any one time, it is critical that they be matched over the long term. There
will be dissatisfaction and disappointment if two people’s hunger levels do not match for
an extended period of time.

3. Misaligned end goals

Notes
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It’s essential to have a common aim towards the end. Everyone engaged in the
partnership should have a clear idea of what they want to accomplish before they
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get into a partnership. The answer to this question is simple: to make a profit that
can be sustained over the long term. What’s the point? To be passed on to the next
generation? Moving ahead will be much simpler if you know where you want to end up.
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The end aim might also alter. Make sure you have a plan in place in case one of the
parties decides to leave the company after a few years.
4. Differing values
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A person’s decision-making process is motivated by his or her values. Every
individual emphasises their own set of values, both consciously and subconsciously.
While your spouse may want to spend money on marketing, you may be more
concerned with cutting expenses. Despite the fact that your ultimate aim is the same,
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you each have distinct ideas about how to get there. Avoiding fights and problems by
ensuring that your values are reasonably aligned can save you time and money. To put
it another way, having an aligned business partner may help speed up decision-making
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and propel your company ahead with fewer setbacks.
5. Unmatched risk tolerance
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A company’s portfolio resembles an investment portfolio in several respects. You
must be willing to take risks in order to run a company. Businesses, on the other hand,
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need a higher level of involvement and involvement from the owner.. It’s important that
you and your spouse have similar levels of risk-averseness. Having a risk-averse spouse
might lead to a relationship breakdown. When you make a choice that results in a loss for
the company, this component is very essential. Accept the time to make sure all sides are
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aware of the dangers and agree on how much risk the firm is willing to take.
6. Poor individual performance

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In today’s economic world, mediocrity is no longer acceptable. In order for the

company to succeed, rigorous standards of performance need be met by both sides.
Underperforming organisations can’t stay afloat in today’s tough economic climate. Both
partners must be at their peak in order for the firm to succeed.
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7. Lack of mutual dependence

Frequently question yourself, “Do I really need my partner?” “Does your spouse
need your assistance?” is another good question to ask. In order to succeed, you must
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respond “yes” to both questions. When one party isn’t reliant on the other, it may lead to
a lack of attention and a breakdown in commercial ties.
Dependency is not the same as being desperate. For all intents and purposes,
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being dependent implies you’re better off in a relationship than on your own.
8. Lack of security
Having a long-term business partner who is secure suggests they will be there for
a long time. Financial, emotional, and even relational security are all examples of this.
(c
Businesses might collapse because one partner is careless with their own money and
can no longer afford to be a part of it. These discussions may be awkward, but they will
spare you a lot of heartache in the future.
9. Lack of trust
Notes
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Would it be possible for you to go away from your company for a month and let
your business partner manage things? A second thought could be in order in this case.
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The foundation of every relationship is trust. Trust is even more critical when it comes
to the corporate world. You’re dealing with the lives of your workers and customers, not
just your own.
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4.2.6 Contract Types
Types of Project Agreements
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A contract is a legally enforceable agreement between a buyer and a seller who
are two distinct legal entities. The buyer is interested in purchasing a certain product
or service from a specific vendor. The vendor expects money or other valuables in
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exchange for the items or services they give.
There will be an expectation of value on both sides when the buyer and
seller agree to work together as described above. In addition, both parties have
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responsibilities to each other. If both parties agree to sign a legally binding contract,
it will ensure that both parties fulfil their responsibilities. Any offended party may take
legal action if necessary.
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Elements of a legally binding contract
In a contract, both parties’ rights and duties are spelled down in great detail,
including the scope of the job and any additional terms and conditions that have been
agreed upon.
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Following are the elements of a legally binding contract:
●● An offer from one of the parties is a precondition. Offers that aren’t genuine will be rejected.
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●● Acceptance from the opposite side is required. There must be no kind of coercion
in the acceptance.
●● The value transaction must be equal on both sides.
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●● Authenticated signatures are required.

●● The contract must specify work that is permitted by law. Legal contracts can’t be
formed for unlawful work.
In a legally enforceable contract, consideration is believed to be the most
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significant aspect since it outlines the advantages that both parties get. In addition, it is
generally agreed that the outcome must benefit all parties.
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Types of Contractual Relationships

Contracts may fall into one of three major kinds, as shown below:
●● Fixed Price Contract

When the scope of work is precisely specified and the needs are fully known, fixed-
(c
price contracts are employed. The vendor is required to provide a fixed price quote
for the agreed scope of work after the scope has been specified. The seller has to be

aware of the project’s requirements, as well as any potential hazards that may arise,
Notes
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before submitting a fixed-price offer. The vendor must be mature and competent in
order to get into a contract with set pricing.
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It’s a win-win situation for both parties if the agreement is reached. Once the seller
completes the stated scope of work, the buyer is guaranteed to pay a set fee. Delivering
specified results will lead to payouts. Once the price is agreed upon, the seller takes
on all the associated risk. This kind of contract might result in a loss for the seller, but if
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they can perform the task at a lower cost, they may also earn the most money.
To come up with a fixed-price contract, both parties must be mature and clear-
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eyed. It’s possible that the negotiation process will take a while. Change requests will
be used to make any modifications to the scope or terms and conditions of a fixed-price
contract after it is completed.
There are three types of fixed-price contracts, as shown in the following table:
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●● Firm Fixed Price Contract (FFP)
●● Firm Fixed Price Contract (FFP)
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●● Fixed Price with Economic Price Adjustment (FP-EPA)
●● Time and Material Contract (T&M)
A common contract type for standard-item purchases, time and materials contracts
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are often employed. Temporary staffing with well-defined skills and experience levels
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may be included. Standard materials that may be used in the project are also included.
Some preferred suppliers will be selected by the organisation in T&M contracts. In

order to choose the merchants, we’ll look at their talents and expertise. Such supplies
will be sold at an agreed cost. The ultimate cost will be determined by how much of
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these resources are used or are acquired.
The administration of T&M contracts is a piece of cake for the most part. T&M
contracts combine the advantages of a set price with the flexibility of consumption-
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based reimbursement.
●● Cost Reimbursable Contract (CR)

An extra charge or profit is added to the seller’s real costs under a cost
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reimbursable contract. This kind of contract includes two different payments. While the
actual costs are paid, the charge is predetermined.
When the requirements are not apparent, this kind of contract is employed. The
team, on the other hand, lacks understanding on the product’s development process.
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Thus, given the lack of certainty on all fronts, this is the optimum arrangement.
For novel research and development, proof-of-concept advances that need

enormous creativity without guaranteeing an anticipated conclusion, cost-reimbursable
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contracts are employed.
Following are some of the flavours of Cost-Reimbursable contracts.
●● Cost plus percentage of cost (CPPC)

●● Cost plus fixed fee (CPFF)
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●● Cost plus Incentive Fee (CPIF)

●● Cost plus award fee (CPAF)
It’s the buyer’s responsibility to take on any risk associated with a cost-plus
Notes
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contract. The buyer bears the full weight of the obligation. In certain cases, these
contracts might be misunderstood. Because the vendor is confident in the accuracy of
all charges, they aren’t going to worry too much about it. As a result, the buyer has to
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meticulously audit and monitor all costs.
4.2.7 Negotiation
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Agreements are reached via negotiations between parties engaged in a dispute,
which is a process that includes a variety of actions.
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Formal or informal negotiations might take place at any point in the project lifecycle.
The difference between formal and informal negotiations is that formal negotiations
are based on contracts and formal papers, while informal negotiations are based on
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arguments amongst team members, for example.
Phases of the negotiating process in project management are as follows:
●● Planning: the gathering of all important data required for the conversation.
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●● Debate: There is an exchange of ideas and opinions on this forum.
●● Proposal: the act of putting up a solution to a problem.
●●
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Revision: Even before an agreement is finalised and made public, it is possible to
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negotiate concessions in order to reach an agreement.
Why project managers should engage in negotiating

An effective negotiator may make all the difference in the outcome of a project.
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Examples of situations when the project manager:
●● Strategy talks with suppliers of products and instruments essential for the project’s
implementation are underway.
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●● is currently in talks with a prospective investor about a new project.

●● is currently in discussions with project stakeholders about a significant modification.
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Effective negotiation abilities help project managers build better working

relationships with stakeholders, clients, and the general public.
It is also possible to resolve project disputes via negotiation.
Even if avoiding confrontation is next to impossible, knowing how to work through it is.
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Conflict may also put an end to a project in the most catastrophic cases.
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A project manager’s negotiation abilities may be improved.

Negotiation abilities for project managers may be improved by following these five pointers.
1. Practicing negotiation skills is a great way to improve.

As with everything else, the first step is to put in a lot of time practising.
(c
In both their professional and personal lives, most people probably bargain more
than they realise.

Because of this, it is critical to understand how you approach and cope with
Notes
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bargaining situations, as well as how you feel and what may be better for the next time.
2. Enhancing one’s negotiation abilities:
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Preparation is essential for a successful negotiation.
If a project manager knows they’ll be meeting with a supplier, they should prepare
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what they want to get out of the deal and look into other options beforehand.
You’ll be able to participate more confidently and know exactly what you’re aiming
for if you prepare ahead of time.
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It’s also important to remember to be open to hearing what other people have to say.
If you insist on sticking to your guns and try to impose your will on the other party,
you are not engaging in negotiation.
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3. Negotiating abilities may be improved by controlling your emotions.
People’s worst tends to come out in conflict and discussions.
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Because of this, the project manager has to be prepared for a possibly awkward or
humiliating dialogue in advance.
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4. Improve your negotiation abilities by taking your time.
It’s doubtful that everything can be addressed and concluded in a single meeting
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since negotiations might continue on for a long time and continuously.
It is possible to have many meetings for major projects to ensure that everything is
recorded in a clear and accurate manner and to the satisfaction of all parties.
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As a result, the project manager may find himself negotiating additional conditions
or finer details long after the agreement has been reached.
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5. Improving the ability to negotiate: Pay attention.

Preparation is key before entering into a negotiation, and you should do your best
at thinking out what and how you will respond to the other party’s statements.
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As a project manager, you must be prepared to hear what your team has to say.
Listening can help you discover the flaws of the other party and have a better
understanding of what the other party actually wants.
With active listening, you are more likely to come up with replies that the other
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person will find satisfactory.
Importance of negotiation
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Even in the most difficult of situations, negotiating is a valuable tool for project
management.
As a project manager, you need to be able to negotiate in order to get the best deal
for your project.
(c
As with other soft skills, the ability to have productive talks that benefit both sides
can always be honed.

The greatest way to negotiate for a project and the organisation as a whole is to
have a solid foundation of information, structures, and tactics at one’s disposal. Notes
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The negotiation process
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Whether you’re attempting to persuade a youngster to eat his green peas or an
engineer to remain on call over the weekend, all discussions follow a similar pattern.
Each stage of the negotiation process has a distinct purpose and a set of steps that
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must be followed in order for it to be successful.
As a simple example, let’s utilise the toddler.
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1. Deciding to negotiate
All parties have four alternatives when selecting whether or not to negotiate: to
dominate, submit, avoid or negotiate.
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An example of parental dominance would be to pinch the child’s mouth open
and force-feed peas, whereas parental acquiescence would be to stare in silence in
disbelief at the toddler’s still-unfinished meal, while parental avoidance would be to
refuse to serve peas to the child at all, while parental negotiation would be to try and
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reach an agreement (prepare to work something out with a toddler).
2. Preparing for the negotiation
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If the project manager has a lot of time on his hands, he may need to think quickly
while negotiating. You need to know what you want to achieve, what the other party
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wants to achieve, and where you’re ready and unwilling to compromise.
How many peas does your two-year-old daughter have on her plate? Anything less
than five peas is unacceptable to you, even if she is hesitant to eat all twenty of them.
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You want her to eat veggies as part of a healthy diet, but she prefers to load up on
sugary treats instead.
3. Negotiating
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Project management and negotiating abilities are put to use in this step, which
involves collaborating with another person to arrive at a solution. It is possible for
project managers to obtain an agreement via the application of negotiating skills and
the strategies outlined below. This procedure include coming up with creative solutions
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that benefit both parties, analysing the pros and disadvantages of various possibilities,
and deciding on a course of action.
For example, if your child is offered the option of eating leftover broccoli instead
of peas, she may be more inclined to eat her vegetables. When offered the option
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between three broccoli heads and twelve peas, she’d prefer eat the latter. You both
agree on this. At the end of the meal, you promise to sit with her and wait for her to
finish before giving her something delicious to eat.
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Alternatively, the parties might sign an agreement outlining how they want to
proceed in a formal environment.
4. Executing: All sides must follow through on their promises in order for a deal to
be completed.
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The child joins you at the table. It’s okay for the child to stare at her peas or wait
until they’re cold before eating them; nevertheless, as soon as she swallows the twelfth
pea, she receives a little cookie. A deal is a deal, regardless of the circumstances.

5. Following up
Notes
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Finally, prepare yourself for future negotiations. You cannot just complete one
interaction and then go on to the next without remembering everything that happened
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before or after you did so. After the sale is closed, make sure the two of you stay in touch.
As an example, you may congratulate your little child on her efforts to eat her peas.
You may tell her how happy you are when she is willing to make an exception and offer
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her devoted playtime prior to the next meal.
4.3 Project Control using Gantt Chart, Revising the Critical
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Path and Reallocation of Resources
Project management tool Gantt charts are a visual representation of what has to be
completed and when. As a visual aid for monitoring project progress, Gantt charts make
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it easy to see the interdependencies between individual activities. It is also possible
to utilise Gantt charts to indicate the progress of a project, resources, limitations, and
other scheduling information.
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How to create a Gantt chart for project management purposes.
Use a project planning tool that lets you connect tasks with deadlines that are
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interdependent while creating, updating, and managing a Gantt chart. Moving or
modifying one task’s timetable or status in a project scheduling tool will automatically
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affect all other tasks that rely on it. You’ll save time, and your team will be less likely to
overlook anything crucial thanks to this feature.
The following are the procedures to manually generate a Gantt chart in a

spreadsheet, if necessary:
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●● Find out everything you need to complete your project. Make a to-do list and
estimate how long each item will take.
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●● Find out how the tasks are related to each other. To put it another way, you can’t
upload anything on your website until you’ve created the content. To begin, the
first must be done.
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●● In your programme or spreadsheet, list all of your tasks in chronological order.

Begin with the first job, then finish with the last activity. Your connections,
resources, and availability may all play a role in the middle.
●● Add dates, resources, and progress at this stage (if the project is already
underway). It’s also possible to add any other information you wish to monitor.
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●● It will automatically build a chart if you are using project management software.
You’ll have to design and prepare a chart from scratch if you’re using a spreadsheet.
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●● Remember to keep it up-to-date as things evolve after you’ve built it. Reviewing
your chart on a weekly basis can help you stay on top of any progress or
modifications to your project.
Gantt chart characteristics

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Data points that should be included in a Gantt chart include the following:
●● When will the project begin?

●● Each project task’s name or brief explanation.

Notes
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●● Each assignment has its own set of resources.
●● Every job has a beginning and an end date.
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●● Every job has a certain time frame (duration).
●● Tasks and their link to one another
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●● The completion date of the project
Everything should be linked together. Hanging or orphaned tasks are tasks with
no connections or dependencies. In accordance with the Project Management Body of
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Knowledge (PMBOK), orphaned tasks should be avoided. However, it is conceivable
to have a number of jobs that are all due at the same time. You may choose from four
sorts of relationships or dependencies:
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●● Finish to Start (FS): Finishing one activity before beginning the next is required.
This is the most prevalent kind of connection.
●● Start to Start (SS): Multiple jobs may begin at the same time when using the Start
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to Start (SS) method. Consider a construction project: after the drywall is up,
someone else can begin painting. You don’t have to finish drywalling the whole
home before you start painting.
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Finish to the Finish (FF): Often, a job cannot be done until another one has been
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finished. An examination of a home, for example, cannot be performed until the
structure has been completely constructed.
●● Start to Finish (SF): One job cannot be completed before another is begun. This is the
least frequent link between tasks. Employees on the day shift can’t complete until the
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evening shift arrives, which is why shift work is an excellent illustration of this.
Benefits of using Gantt Chart:
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●● Reduce the scope of a project by breaking it down into more manageable components.
●● Visibly connect tasks with each other.
●● Make it easier for team members to see how their effort affects others around them.
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●● Monitor and see the progress of tasks over a period of time.

●● Take a look at limitations and conflicts, such as the use of a single resource for
many activities.
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●● Determine the project’s most crucial route.
4.3.1 Scheduling Charts: Network Diagram Method

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Whether you’re a project manager or a project team member, you should know
what network diagrams are. These are also referred to as project schedule network
diagram. A project network diagram is an important tool; for it enables teams to clearly
perceive the activities that need to be completed over the length of a project. It also
gives essential information like task duration, sequence, and dependency.
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Project managers use network diagrams when scheduling a project.

Project Network
Notes
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It is a graph that shows the activities, duration, and interdependencies of tasks
within your project.
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What is a project schedule network diagram in project management?
A project schedule network diagram envisages the orderly and logical association
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between tasks in a project. This relies on the clarity of the chronology of tasks and events.
Network Diagram Features
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●● It is shown as a chart with a series of boxes and arrows.
●● It is used to chart out the calendar and task sequence for the project.
●● It tracks the project’s progress via every level till its completion.
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●● It is handy to depict the project scope.
●● It is a way to visualize the interrelationships of project activities.
●● It provides a graphical view of the tasks and how they relate to one another.
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●● Leaving even one task out of the network could change the overall schedule
duration, estimated costs, and resource allocation commitments.
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Network Diagram and Work Breakdown structure
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●● The tasks in the network are the work packages of the WBS.
●● All of the WBS tasks must be added in the network because they have to be
accounted for in the schedule.
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●● The first step is to arrange the tasks from your WBS into a sequence.
●● There may be tasks that can be completed at any time throughout the project.
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●● Some tasks are dependent on input from other tasks or they may be constrained
by time or resources.
●● The network diagram is a schedule (WBS is not a schedule, but it is the basis for it).
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●● Network diagram identifies major scheduling information that goes into schedule
formats, like Gantt and milestone charts.
Benefits of the project management network diagram

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●● Visual representation of progress for stakeholders

●● Enables project manager to track each component of a project
●● Allows fast sharing of project status
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●● Sets up project workflows

●● Tracks dependent tasks and probable bottlenecks
●● Visual representation of data enhances understanding and retention Types of
project network diagrams:
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Arrow diagram method (ADM)

●● Employs arrows to represent activities associated with the project.
●● Because of its intrinsic limitations, the ADM is not largely used in project management.
Notes
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ADM Features:
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●● The length of the arrow depicts the duration of the task.
●● The tail of the arrow depicts the start of the activity and the head represents
●● the finish.
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●● Each arrow connects two boxes, known as “nodes.”
●● Nodes are used to represent the start or end of an activity in a sequence.
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●● Starting node of an activity is the “i-node”
●● Final node of a sequence is the “j-node.”
●● The only relationship between the nodes and activity that an ADM chart can
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represent is “finish to start” or FS.
●● Occasionally, “dummy activities”—arrows that do not represent a direct
relationship—need to be included in ADM network diagrams.
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ADM is depicted in the figure shown below:
●● Activity C can only occur once activities A and B are complete; in the network
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diagram, you’ve connected activity A to activity C.
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●● Example - tiling a floor (activity C):
●● It can only begin once the cement is laid out (activity A)
●● Necessary approvals are obtained (activity B).
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●● Since activities A and B are not directly related—A doesn’t lead to B, and B doesn’t
lead to A— a dummy activity between B and C needs to be drawn to show that C
is dependent on B being completed.
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●● An ADM chart also does not have a way to encapsulate lead and lag times without
introducing new nodes and activities.
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Figure – Arrow Diagram Method
Precedence diagram method (PDM)

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●● PDM network diagrams are often used in project management today

●● More efficient alternative to ADMs.

●● In PDM for creating network diagrams, each box, or node, depicts an activity
Notes
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●● Arrows depict relationships between the different activities.
●● The arrows can therefore depict all four probable relationships:
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●● ‘“Finish to Start” (FS): When an activity cannot start before another activity finishes’
●● ‘“Start to Start” (SS): When two activities are able to start simultaneously’
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●● ‘“Finish to Finish” (FF): When two tasks need to finish together’
●● ‘“Start to Finish” (SF): This is an uncommon dependency and only used when one
activity cannot finish until another activity starts’
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Addition features of PDM
●● Lead times and lag times can be written alongside the arrows.
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●● If a specific activity requires 10 days to elapse until the next activity can occur,
for example, “10 days” can be written over the arrow showing the association
between the connected nodes.
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Example of Network Diagram Method
Project - boiler renovation

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Activities to be carried out:
A. Scrutiny of boiler by engineer in-charge of the boiler

B. Creation of list of components to be either refurbished or replaced
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C. Gathering prices for the components to be procured

D. Ordering the components and procuring
E. Disassembling of faulty components from boiler
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F. Creation of instructions for overhauls and repairs

G. Rectification of components in the factory
H. Cleaning of different framing and fixtures
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I. Installation of the rectified components

J. Installation of the procured components

K. Inspection and assessment

Notes
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L. Test run
The presumption is that:
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●● This assignment is given to the boiler engineer
●● Boiler engineer has one boiler helper / mechanic and one boiler assistant We will
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draw up a network depicting the precedence relationships.
Examining the list of activities, it is seen that
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●● Activity A (inspection of boiler) is to be succeeded by dismantling of defective parts (D)
●● Only after that it can be determined which parts can be repaired and which will
have to be replaced.
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●● Repairing and procuring can be concurrent
●● Instructions for repairs may be created after dispatching requests for vendor quotations.
●● This becomes a partial constraint, also begun after activity D.
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●● At this stage we presume that repairing will take less time than purchasing.
●● Installation of rectified components can be begun only when the cleaning is finished.
●● This results in the use of a dummy activity. r
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●● After the rectified components have been installed, installation of procured
components can be carried out.
●● Finally - inspection and test run.
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The network is shown below:

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The ‘’dummy activities’’ are deployed to recognise the activities C, H and E, G with
unique end-nodes.
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4.3.2 CPM and Gantt Chart

In project management, Gantt charts and the critical path technique are essential
tools to use. Tracking a project’s progress and managing the activities related with it is
made easier by both of these tools.
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You may keep track of project activities using Gantt charts and compare them to
a set timeframe. Get free Gantt charts in Excel for more information on how to design

a Gantt chart for your project. It’s the sequence of project activities that determines a
Notes
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project’s length and lays out critical deadlines you must fulfil to complete it on time. In a
nutshell, the critical path is the distance or time required to complete a project from its
inception to its conclusion.
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A Gantt chart and the critical path approach may help you follow the route’s work
throughout a set time period, allowing you to maintain your project on schedule and
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prevent any issues. You can use your critical path analysis to create better scheduling
estimates and choices, but your Gantt chart carefully monitors the time and progress of
your project.
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A visual Gantt chart may help you monitor the key path on a timetable more readily,
so you can alter your project plan as it proceeds and receive an accurate sense of how
each work is progressing.
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Critical Path in Gantt Chart
When a single job delays the completion of a Gantt chart’s critical route, it delays
the project’s total finish date, which is referred to as a critical path.
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If a job causes the project’s total length to increase or decrease, it is likely on
the project’s critical path. In the same way, you can immediately tell whether a job is
important or not: It’s non-critical if the job doesn’t effect the time it takes to complete
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your project. You may delete non-critical pathways from your project if time or money
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constraints prevent you from finishing them.
You may use the critical route approach to discover the shortest path (or the least
amount of time) to finish each activity. Because of this, they’re the easiest to get done
on schedule, and the least amount of slack is required. Using project management
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software, you may then calculate your critical route by hand.
Gantt Chart vs Critical Path Analysis

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If you’re looking for an overview of a project’s timetable, Gantt charts are ideal, while
critical path analyses show the order in which activities are expected to be completed.
Gantt charts and critical pathways have a few important differences:

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●● In a Gantt chart, you can see the project’s timetable.

●● Project tasks, dependencies, resources, and remaining work are all documented
on a Gantt chart.
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●● A Gantt chart provides a visual representation of the progress of a project.

●● In a Gantt chart, there are two distinct axes (time plotted against tasks).
●● Using a Gantt chart, tasks are represented by bars on the chart.
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●● The predecessors in a Gantt chart are shown, as well as the ties between them.
●● The resources required to complete each task are depicted in a Gantt chart.
●● Using a critical path analysis, project managers may see the sequence of activities
that define the project’s length.
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●● In order to reach your project deadline, a critical path analysis indicates the
activities you need to perform.

●● The projected durations of the individual tasks that make up a project may be used
Notes
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in a critical path analysis to determine the overall project length.
●● Project expenses may be reduced by using a critical route analysis.
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●● A critical path analysis (CPA) examines the discrepancy between the anticipated
and actual development of a project.
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Steps to govern the critical path in Gantt Chart
To establish the critical route on a Gantt chart, list all project activities, calculate their
durations, identify dependent and crucial jobs, and estimate any lag time between tasks.
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The following are six stages for determining the critical route in a Gantt chart:
●● To begin, create a list of all activities or tasks associated with your project. If
required, use a job breakdown framework.
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●● Calculate the anticipated length of each job. This stage will also assist you in
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determining the overall time of your project.

●● Determine which duties are dependent on others. That is, identify the tasks that
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must be completed before proceeding to the next.

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●● Determine which dependent activities are crucial — that is, those that must be
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completed in order to complete your project — and which may be dropped if time
or money constraints prevent their completion.
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Notes
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●● Make a note of any possible lag time between jobs.
●● Add milestones as your project proceeds to assist you in determining whether or
not your project is on schedule.
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Example of a Gantt Chart with a Critical Path
Utilize this template to create, monitor, and manage all project tasks, particularly
those that are crucial to the project’s success.
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This template helps you to more clearly view your project as a whole and to follow its
progress as you complete tasks. Reduce or remove any extraneous project activities to stay
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within your projected completion time and to guarantee that all key pathways are completed.
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Figure: Gantt Chart Critical Path Template Download
Importance of Critical Path

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Critical routes are critical because they help you stay on track with your projects
and identify which activities you must skip or postpone.

Additionally, critical pathways are necessary for the following reasons:

Notes
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●● They represent the earliest possible completion date for a project.
●● They help project managers to pinpoint precisely which activities need the greatest
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attention in order to avoid destabilising the whole project.
●● They enable project managers to postpone or cancel any remaining project
activities that may threaten the original length of the project.
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●● They enable project managers to update the expected length of one or more tasks
in order to stay within the original duration of the project.
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They assist you in identifying the most critical activities and eliminating those that
are unnecessary to properly finish a project.
4.3.3 Types of Resources
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A resource is defined as any person or thing that is necessary to carry out a
task. In general, project management utilises seven distinct categories of resources.
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We describe and explore these many resource types in this post, as well as present
pertinent examples.
Seven Resource Types in Project Management:
(1) Services r
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A project may benefit from, and often requires, the engagement of third parties
to do certain responsibilities. Making the correct option needs the project manager to
exercise caution. According to Forbes:
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A cost/time analysis is one of the most effective methods for determining whether
or not to outsource a work. You may have jobs that, with the appropriate amount of
time and money, you might potentially do in-house — for example, you may someday
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want to recruit in-house developers to expand your software design flexibility. However,
you must upgrade your website and back-end infrastructure in the meantime. You may
outsource this task to a contractor in the near term, with the long-term objective of hiring
in-house developers.
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This form of outsourcing comes within the services category of project

management resources.
Along with cost and time constraints, the in-house team may lack the necessary
experience and practical competence for some jobs. For instance, a building business
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may contract with a cartage company to remove waste. Alternatively, a florist may
outsource delivery to a trustworthy courier company. Data storage and backups may
be rented to a cloud services provider such as Amazon Web Services or Google Cloud
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Platform in software project management. User testing and heuristic assessments

may be conducted by human-computer interface professionals. Hiring an external IT
business to provide help desk assistance is another example of a project management
service resource type.
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(2) Labor
Labor resource refers to the personnel participating in a project.

Each member of staff will not be required to work on a project for the full term.
Notes
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While the project manager will be involved from inception to completion, the extent to
which others are involved will vary. Additionally, staff availability is a consideration. A
person may be working on another project inside the business, or an earlier action may
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have taken longer than anticipated.
(3) Equipment
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In terms of project management resource categories, computers fall under the
equipment group.
Equipment is a resource that encompasses a variety of products with varied
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purposes. Computers, monitors, servers, keyboards, telephones, interactive whiteboards,
and a variety of other standard computing and office equipment are available. Equipment
resources include desks, seats, file cabinets, office furniture, and vehicles.
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Generally, equipment is acquired once and utilised on several projects. However,
as a business grows, the need for more people and space demands increased financial
investment in this resource. Additionally, equipment has a useful life. Is the existing
hardware insufficiently advanced to complete this job efficiently? Is it reasonable to
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invest in additional servers in order to speed up render times?
(4) Materials
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Materials are a finite resource that must be used. They are consumed over the
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course of a project’s completion and may also be included as deliverables.
In project management, office stationery is a frequent example of this sort of

resource. Construction supplies include nails, cement, and screws; courier and
transportation firms rely heavily on fuel.
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With regards to the material resource type used in software development, Software
Project Management emphasises the following:
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[Material resources] are insignificant in the majority of software projects, but might
be critical in others — software that will be widely disseminated, for example, may need
specific disc supplies.
(5) Money
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In project management, money is a secondary resource category. It is utilised to

obtain, acquire, and manage all other project resources. This is often accomplished via
investment and company capital.
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(6) Space
Office space is in the ‘space’ resource category in project management
Space should already be reserved for initiatives that do not necessitate the hire of
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additional personnel. Additional space may be necessary as the team expands via the
addition of additional workers (permanent or temporary).
Additionally, space needs may change according on the stage of the project.
For instance, quality assurance developers may be required only at a later stage of
(c
development. Similarly, user testing and user interviews (which may need the use of
specialised facilities) are not conducted indefinitely. Management should plan and adapt
space requirements as the project progresses.

Hiring remote and/or semi-remote personnel is another way to save money on

Notes
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space. Automattic, the online development business that powers WordPress, now
employs over 700 remote employees.
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(7) Time
Software Project Management defines the time kind of resource as follows:
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Time is the principal resource being offset against the other key resources -
project timelines may be shortened by increasing other resources and almost definitely
prolonged if they are unexpectedly lowered.
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Best ways to Manage your Project Resources
Resource management is critical to the success of any project and should be
included into the project charter even before it begins. Planning, availability, assignment
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management, and resource optimization are all critical components in a project’s success.
Now, in order to ensure that your resource management is maximised, we

recommend that you:
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●● Prior to starting your project, create a detailed project plan;
●● using a project management platform, such as monday.com, to keep an eye on
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your resources and the fair allocation of task during the duration of your project.
This is a user-friendly platform that will assist you in managing your teams
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and projects through dashboards, time tracking, and complete customisation.
Managing projects has never been simpler.
4.3.4 RAM - RACI, OCA, Other

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RAM stands for Responsibility Assignment Matrix.
●● It defines the contribution of multiple organizations and people, along with the
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responsibilities in finishing project deliverables.

●● It’s used by the Project Manager in refining roles and responsibilities in the following
●● Projects
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●● Cross-functional teams
●● Processes
●● A Request for Proposal (RFP) might request a RAM from a vendor or contractor.
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A RAM is also referred to in a slightly different form – a RACI matrix:

●● Responsible
●● Accountable
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●● Consulted
●● Informed
RACI is referred to as a RAM deployed to show the links between project team
members and their tasks.
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Responsible (R):

●● People carry out the work and complete the task.

Notes
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●● Usually there is only one role for the category of Responsible
●● Others can be given the responsibility to help in the work as needed.
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Accountable (A):
●● The resource accountable for the accurate completion of the task / deliverable
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●● Responsible is answerable to this person.
●● Accountable needs to approve the work of the Responsible.
●● Only one Accountable per deliverable / task.
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Consulted (C):
●● Those who give advice and opinions

●● Communication is both-ways.
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Informed (I):
●● Those who are updated on the progress, once task / deliverable has been finished
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●● Communication is only one-way.
Responsibility Assignment Matrix (RAM) Goal in Project Management

●●
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Communication tool to making sure work tasks allotted to an accountable agent.
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●● Define what the project team is accountable for, in each task of the Work
Breakdown Structure (WBS)
●● Used in a working group to delineate roles, responsibilities, and authority levels
●● Matrix format depicts tasks associated with one resource and all people
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associated with the particular task.

●● This makes sure that there is one dedicated person responsible for any one deliverable.
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Responsibility Assignment Matrix (RAM) Standard Format

●● A RAM is shown as a table that depicts the interplay between tasks and project
team members.
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●● List of objectives is on the left-hand column with the project team member names
across the top.
●● Each task will be allocated to the suitable project team member
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●● Format enables communication within members of the project team.

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4.3.5 Scheduling Resources

Notes
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Almost all undertakings are constrained by capacity or resource constraints. As a
consequence, the success of a project is contingent upon the resource management
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efficiency. A resource is everything that is necessary to properly execute and finish a
project. They might be in the form of labour, equipment, materials, or facilities, or they
can be anything else required to execute a project.
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A structured approach to resource allocation enables project managers to
establish deadlines for work given to their teams. They may then report to a variety
of stakeholders, including consumers and a board of directors. This article will define
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resource scheduling, discuss why it is necessary, and outline the procedures necessary
to construct an efficient resource scheduling strategy.
What is resource allocation?
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The term “resource scheduling” refers to the method by which businesses allocate
their resources effectively to the activities or projects they must accomplish. Additionally,
it entails allocating start and finish dates for each work or project in accordance with
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resource capability and availability. Resources might be people (either workers or
suppliers), equipment, materials, finance, or facilities, depending on the sector.
Resource scheduling includes capacity choices into the scheduling process in

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two ways: time-constrained scheduling and resource-constrained scheduling. Time-
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constrained scheduling is a scheduling technique that makes use of the time component
as a crucial variable. On the other side, resource-constrained emphasises the limited
capacity of resources, placing a premium on managing capacity overload issues.
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Who makes use of resource planning?

Often, project managers are tasked with the responsibility of resource scheduling. In
big businesses, resource managers are assigned to oversee resource scheduling. The
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project manager is accountable for completing the project on schedule, within budget, and
without sacrificing quality. If resources are not correctly employed and planned before to
the start of the project, time delays may occur, and the project may even fail.
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Why is resource allocation critical?

Resource scheduling enables project managers to distribute assignments to their
team more intelligently and efficiently based on their knowledge and availability. This
procedure enables you to supervise a project from beginning to end and guarantee that
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work proceeds smoothly. Additionally, it enables your firm to employ labour efficiently,
ensuring that resources are neither over- or under-allocated.
Managing human resources is far more difficult than managing physical resources
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such as equipment or commodities. Thus, good resource scheduling guarantees that

workers are not overburdened with work, that their time is maximised, and that your
cash is used wisely. Resource management may be a time-consuming and difficult
procedure. Nonetheless, it is critical to the effective execution of a project.
(c
Scheduling resources is critical for the following reasons:
●● Enhance the project’s efficiency and cost effectiveness

●● Prevent schedule slippages

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●● Prevent overburdening individuals with tasks
●● Assign assignments and monitor projects from start to end
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●● Analyze the usage rate of each resource and reallocate jobs to those that are not
operating at maximum capacity.
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●● Maintain records of project estimates and results to facilitate future scheduling.
What are the stages involved in effectively scheduling resources?
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Scheduling resources is about more than deadlines and deliverables. It’s
also important keeping your team members engaged and challenged while never
overloading them with duties. The following are six stages for effectively scheduling
resources, along with examples:
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1. Deconstruct tasks
The first stage in resource scheduling is to grasp the scope of the project in its
whole and then break it down into individual jobs. A work breakdown structure (WBS) is
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a critical tool that project managers use to organise their projects by breaking down all
operations to their most fundamental components, resulting in a thorough list of all the
actions that must be completed.
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For instance, if your firm is creating a digital marketing strategy for a startup, your
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work list would look something like this:
●● Create status updates on social media, blog entries, images, audio, and video
content to engage your audience and drive traffic to your website.
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●● Automate your digital marketing approach with email automation, Facebook

messaging bots, and batch social media scheduling.
●● Analyzing the marketing techniques of competing organisations to determine what
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your consumer is lacking

●● Configuring each channel’s advertising, analytics, reporting, and tracking
●● Regularly updating the material on each channel and eliminating any out-of-date
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information
After you’ve completed the list, you may estimate the materials and labour
necessary to perform the tasks.
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2. Conduct a resource capability assessment

The next stage is to identify and analyse the necessary resources. The most often
required resources in the majority of initiatives are equipment and human resources.
)A
When it comes to equipment, you must first decide the kind of software, gear, or tools
that will be necessary, as well as any required versions or industry standards. Another
issue to consider is whether purchasing or leasing items makes more economic sense.
Assess your human resources and allocate the appropriate individual with the
(c
appropriate skill set to do the assignment. The simplest approach to do this is to

maintain a database of all of your team members’ talents, which allows you to simply
match jobs to their calendars.

Consider the knowledge, talents, and certifications required and decide whether
Notes
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to hire or contract these individuals. For instance, you may search the talent database
or employ a third-party contractor well in advance to discover any highly experienced
graphic designer for your team to work on a marketing campaign.
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3. Distribute tasks to staff in accordance with their availability.
Once the resource capabilities have been properly analysed, the appropriate
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individual is assigned to the appropriate job depending on their availability. It would
be ideal if you had a precise estimate of the time required to perform each of these
activities. It is critical to ascertain if anybody is overburdened with work, while others
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may lack sufficient employment.
You also have the option of adjusting the size of your project team at this step
of the resource scheduling process. Assume you miscalculated the quantity of work
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required at any point throughout a project’s lifecycle, such as graphic design or quality
assurance testing. In such scenario, it is a perfect moment to bring on new personnel.
4. Identify bottlenecks and make real-time adjustments
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If a team member is absent due to vacation or illness, you will need to redistribute
their work or adjust their deadlines. There are several project scheduling tools available
to assist you in planning, tracking, and analysing your projects. This programme
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enables you to simply assign and manage work assignments, manage your team’s
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workload, get alerts about project status updates, and monitor the reach of resources
(sick days, holidays and days off).
Frequently, team members get bogged down by a problem or issue that they
are unable to handle. It is critical to monitor your resources, time spent, and to get
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assistance swiftly.
5. Implement a risk management strategy for important resources

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Critical people on your project may have been moved to a higher priority project
or may have been unavailable for any reason. It is necessary to execute a risk
management strategy that identifies key resources and develops a cost-effective
contingency plan in these situations.
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Identifying risk and evaluating its influence on the whole project, as well as managing
it without jeopardising the project’s objective, is a critical stage in project planning.
6. Maintain a time log for assignments and activities.

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Finally, regularly monitor your project to ensure that it runs as smoothly as

possible. By identifying the number of resources utilised on each activity and the time
required to accomplish them, you can use this information to fine-tune future resource
scheduling activities. The most efficient method to do this is to include a time tracking
)A
tool into your resource scheduling software.
4.3.6 Assigning Work

There is a distinction between delegating duties and assigning work to individuals.
(c
True delegation entails that you, as a manager, assign accountability for outcomes as
well as the power to do what is necessary to achieve the desired goals.

Unfortunately, there are several businesses that struggle with work assignment.
Notes
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This is often the result of poor work delegation. This occurs for a variety of reasons,
including the following: many managers have never gotten training in this area; they
believe staff cannot do the job as effectively as the manager; or they have an overall
in
lack of faith in employees’ dedication to quality.
Consider the following when giving work to your employees:
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1. Positively delegate. Don’t simply throw work at individuals and expect them to
produce when they may be unqualified for the job. Maintain an attitude of questioning
every assignment assigned to you and checking your personnel roster to determine
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who else can do the job as effectively as you can.
2. Determine what you want to achieve. Then, allocate that assignment to the best
competent individual so that you may accomplish outcomes rather than just
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delegating chores to whomever is available.
3. Select the appropriate individual. Consider who has the most expertise and talents
(but avoid overloading that individual with work), as well as who needs to learn
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how to be more responsible. Consider the issue of time, as well as the excitement
associated with the desire to have such an opportunity.
4. Collect feedback. If necessary, convene a meeting. Consult your team for suggestions
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on what should be modified, who could be involved, and how outcomes should be
defined. If you manage a large team or organisation, communicate with the managers
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of the sub-teams.
5. Establish a deadline. Assign tasks and then schedule time to receive progress
updates. This is particularly true for bigger projects that span weeks, months, or
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even years.
6. Provide instruction and monitoring. Do the individuals need further training prior to
assuming such responsibilities? Should they be carefully supervised, or may they be
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left alone for the most part? Additionally, remember to provide kids space and time
for autonomous thought and activity.
7. Delegate authority. Apart from yourself, who else can you entrust with a certain
amount of power? How much and what kind of electricity are they going to require?
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Consider the many facets of control. What kind of controls are required? How can
you and your team leaders maintain control while allowing autonomous action by
individual contributors?
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9. Keep track of your development. Keep control of the issue or project by paying
close attention to the critical details. Bear in mind that managers are accountable
regardless of the success or failure of a project.
)A
10. Provide input. It’s a two-way street, so providing both good and negative comments
would be really welcomed and treasured. Never forsake someone, and establish
frequent checkpoints and status reports.
11. Acquire knowledge. This is true for both boss and employee - what have you learned
individually and collectively? Keep track of them and share them with others with
(c
whom you work. Profit from one another’s achievements and disappointments in
order to better one’s own performance.

12. Conduct a post-project evaluation of performance. Inquire about how you, as the
Notes
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manager, can do a better job of assisting your team members in achieving success.
Provide constructive input and accept it from others.
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4.3.7 Crashing
When you reduce the length of a project by lowering the time required to complete
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one or more activities, this is referred to as project crashing. Crashing is accomplished by
expanding the project’s resources, which results in tasks taking less time than anticipated.
Of course, this increases the total cost of the project. As a result, the fundamental goal of
project crashing is to expedite the project while while keeping costs low.
O
As the triple constraint implies, if the length of the project, or its time, is reduced,
expenses must rise in response. It’s a compromise. Crashing project management
addresses the triple constraint by requiring either extra resources or a reduction in the
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project’s needs or scope. However, such harsh steps cannot be executed without the
agreement of the sponsor or major stakeholders.
A project’s failure might result in a shift in the critical path and the formation of a
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new, distinct critical route. Project crash management necessitates that you return to
your project schedule to ensure that you are aware of any modifications made as a
result of the project’s crash.
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All of this is simplified with the use of project management software that includes
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scheduling tools. With ProjectManager, you can quickly create a project schedule using
our Gantt charts and then filter for key paths. From there, you can make any required
adjustments to your schedule and ensure that your project is completed on time and
under budget. Begin for free.
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Numerous Interpretations of the Project Crash

The phrase “project crashing” is not set in stone and may refer to a variety of
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different things. It might relate to paying extra money to expedite the completion of
tasks. It may also apply to identifying the crucial route and increasing resources there
without regard for efficiency. Alternatively, you may evaluate the critical route and
determine which tasks can be shortened with an infusion of resources.
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Fast tracking is a similar technique for condensing your schedule. This occurs
when activities that were initially planned to execute independently overlap. However,
this course of action should not be followed without doing a feasibility and risk analysis
beforehand. Whichever path you follow, it is always prudent to use caution and analysis.
m
What Causes Project Management Crashing?

When would a project manager seek to boost investment in order to expedite the
)A
completion of the project? After all, much time and effort was spent on the project’s
planning and scheduling. Obviously, since project failure incurs additional expenses, it
would not be employed unless in an emergency.
One explanation for utilising project crashing is if the project was scheduled
(c
erroneously and this was not discovered until the project had been completed. This may
occur even during the planning stage if the sponsor, client, or stakeholder insists on an
impractical deadline date.

Another reason is that, when doing a change control analysis (which determines
Notes
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the effect on time, cost, scope, and other project elements), a problem arises that
must be handled promptly. As challenges develop throughout the course of managing
a project that deviate from the timetable baseline, the project manager must devise a
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method for returning to the baseline timeline.
Apart from project crashing, as mentioned before, there is the quick tracking
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approach. While we’re on the subject of project failures, it’s critical to consider whether
fast tracking is beneficial. Occasionally, either may be used, but if the project is already
over budget and you lack finances, fast tracking is the more probable alternative.
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Best Practices for Crashed Projects
Crashing a project is often a last option, and it carries significant dangers. There are
many factors to consider before embarking on this path with your project. To begin, are
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the jobs that you want to crash on the critical path? These duties will have an effect on the
completion of your project. If the chores are not vital, they may generally be ignored.
Another factor to consider is the duration of the assigned work. A brief job will
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be difficult to accelerate, much more so if it does not reoccur throughout the project.
Longer projects will almost always have some fat to cut. However, regardless of the
work, you must have sufficient resources. If you lack the necessary resources, it makes
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no sense for your project to collapse. Having to acquire additional materials or team
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members is likely to be too expensive.
Another factor to consider is how long it would take to ramp up the project after a
crash; for example, if the project requires highly specialised skills and onboarding new
team members would be expensive and time consuming. While it may seem sensible to
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crash towards the conclusion of the project if it becomes evident that you will miss your
aim, the majority of professionals advise against it. The most effective moment to crash a
project is early in the timeline—typically when the project is less than halfway complete.
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Stages of Project Crash Management

Once you’ve decided to employ project crashing, there are a few measures you’ll
want to take to ensure you receive the desired outcomes.
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1. The Crucial Path

The first step is to determine your project’s critical route. This will assist you in
determining which jobs may be cut to expedite the completion of the project. Therefore,
m
if you haven’t already, calculate your critical path and determine which activities are vital
to the project’s success and which are optional.
2. Prioritize Tasks
)A
Make a list of all the responsibilities you have and then meet with those allocated to
them. Inquire if they feel any of the tasks for which they are accountable are on the critical
path and may be eliminated. Then, seek for methods to streamline those activities.
3. What is the Cost-Benefit Analysis?

(c
Once you’ve narrowed down the critical route jobs that you feel may be reduced,
begin evaluating the cost of adding more resources. Determine which jobs may be

delegated more resources in order to do them more quickly and with the least amount
Notes
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of burden on your budget.
4. Make Your Selection
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When you know how much money you’ll need to spend (in comparison to the time
you’ll save) on each activity on your critical route, you must now pick the least costly
path ahead. Crashing a project is not simply about increasing resources to expedite
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completion, but also about maximising the value on that additional investment.
5. Establish a budget
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As with any endeavour, after you’ve settled on a course of action, you must fund
it. The next stage in implementing your project crashing strategy is to create a project
crashing budget. You’ll need to adjust your baseline, timetable, and resource allocation
to reflect the new endeavour.
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)A
(c

Case Study
Notes
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At Global Green Books Publishing, we are committed to developing project managers.
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Global Green Books Publishing is growing at a rapid pace. They currently have
three significant clients, two of which are typical print-based businesses, and one of
whom is a local college. They create personalised eBooks for this community college.
nl
This new line of business is expanding as more clients become aware of their work, and
the account managers are in discussions with many more institutions and professional
organisations about taking on further electronic publishing projects.
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As they expanded, they were forced to begin using project management ideas to
plan and oversee their operations. Samantha was employed on a full-time basis by
the founders as a project associate or project manager to assist them in implementing
project management methods and navigating the crises created by fast development.
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Within her first three months in her new capacity as project manager, she established
formal project management procedures, wrote a project management handbook,
and educated staff on how to execute their jobs properly. Within a year, the firm was
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meeting deadlines, the quality procedures were working, and consumers were satisfied
with the goods! This accomplishment resulted in the possibility of more work and
increased prospects to acquire new clients.
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Samantha was beginning to feel the strain as the growth progressed. She was a
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single individual.
And there was still so much more to accomplish.
Using her project management abilities, she established more formal project
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management procedures, authored a project management handbook, and instructed

staff on how to execute their jobs successfully. One area where she felt particularly
strained was in assisting supervisors.
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As the eBook company developed, supervisors faced more responsibilities. Many

were outstanding print technicians who had attracted the founders’ attention due to
their dispositions and customer service ethic. However, they were now required to
do more difficult jobs than just operating a highly automated print copier. Supervisors
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work with customers, internal account managers, and customer care professionals.
They supervise individuals that possess a varied range of abilities, backgrounds, and
goals. It’s becoming more difficult for them to expect staff to take on difficult tasks when
they lack the necessary skills and experience in eBook production, which the firm is
progressively moving toward.
m
Many of the supervisors have received some project management guidance from
Samantha, but they understand that they must be both leaders and managers. There
)A
are issues that arise when project teams collaborate to create eBooks. Several of the
difficulties stem from the inability to track the state of work when part-time workers
arrive and transfer over a portion of a project to another worker. Several deal with
resolving problems as they develop — both technical challenges caused by delayed
approvals and material that cannot yet be included, resulting in schedule modifications
(c
– and interpersonal disagreements amongst workers. Several of these clashes arise

between a mostly youthful, part-time group of student workers and full-time employees.

Supervisors are often called upon to mediate or resolve these confrontations. They
Notes
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really need to integrate their workers in order to form highly effective, productive project
teams for these high-volume eBook projects. Staff members must trust one another and
their leadership to act fairly and to balance job objectives with their availability.
in
Supervisors must demonstrate leadership, inspire their team, and motivate their
team members, in addition to being a competent manager, concerned with the day-
nl
to-day and minute-by-minute fulfilment of the project’s objectives. Being an effective
motivator also requires managers to be excellent listeners in order to comprehend the
difficulties and wants of their team members.
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The supervisors recognised that they need two things as a group. One was a
better comprehension of interpersonal skills, or so-called “soft” abilities, in order to aid
in their effectiveness. The other was more project management help, as they needed
to better monitor the intricacies of their work, as well as task level scheduling and
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rescheduling, which occurred as team members came and went for their work shifts
and as permissions sometimes took longer to get than anticipated.
Samantha has begun discussions with her management and the human resources
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and training departments about ways to address some of these issues. Perhaps some
supervisory leadership development training might be offered. And she is in discussions
with her management about establishing a project management office (PMO) to provide
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project management employees to assist supervisors with job tracking and scheduling
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difficulties. She expects that resolving these two concerns would result in a more
smoother eBook distribution.
Provide your perspective on the following components of the case study:

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a) What are some of the difficulties supervisors face?

b) Which abilities do you believe supervisors should possess in order to be good project
managers? Why do they need these abilities?
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c) Are there any abilities that team members must possess in order to work well together
on a project? If this is the case, what are these abilities?
d) What do you believe is the most critical attribute or ability of a successful project manager?
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e) What steps could project managers take to increase the effectiveness of their teams?
f) How would you advise Samantha on establishing a project management office?
What responsibilities would these individuals fill, and how might they connect with
ongoing projects?
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g) Could you outline other organisational structures for this PMO function?
Summary
)A
●● The project manager is the one person central to the success of a project.
●● The ‘working project manager’ occurs when the project manager is accountable
for technical tasks and also for managing the project. This always results in conflict
and will end a bad experience.
(c
●● Project coordination is the daily organisation and administration of tasks in the project

●● Project coordination stages consist of the definition, initiation, planning, execution,

Notes
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monitoring & control and closure.
●● Recruiting the right people for the project with the correct skills, when it is needed
in
is crucial to the success of a project.
●● Project teams need to be motivated to strive for constant advancement.
●● A project’s monitoring and controlling are generally considered to be one
nl
composite activity.
●● Getting to know where the project is currently, is carried out by monitoring the progress.
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●● Tools and techniques deployed by project managers to help in communication,
generally begin with the creation of a Communications Plan.
●● A robust partnership is a great advantage to any business.
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●● Some common factors for a symbiotic partnership are trust, clear communication,
transparency and building of relationships.
●● Partnerships invariably are foundations for conflict.
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●● Negotiation is a conversation between two parties to arrive at a solution and for
achieving a mutual consensus with regards to different requirements.
●●
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Each project needs resources for its execution and success. These must be
zeroed in on as early as possible, preferably prior to the launching of the project.
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●● Human resources can be brought on board either from within the organization or
externally. They can also work on the full length of the project or as needed.
●● Financial resources resemble the project budget. These are determined before
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the commencement of the project by the project sponsor.

●● Time resources are the blocks of time obtainable and deployed for the completion
of each project task.
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●● Responsibility assignment matrix defines the contribution of multiple organizations

and people, along with the responsibilities in finishing project deliverables.
●● Resource scheduling is a complex subject that can be viewed from a number of
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different standpoints.
●● The work assignment feature in project management software allows work to be
assigned to the appropriate person within the project team.
●● When there is absolutely no scope to alter any deadlines, and if the project is falling
m
behind schedule, one option is to carry out multiple tasks faster by including more
resources, especially on tasks that are on the critical path. This is known as crashing.
)A
Glossary
●● Inputs - The information required to start the project management process.
●● Activity - The smallest unit of work necessary to complete a project work package
(which includes multiple activities). Time, resources, and finances are required to
(c
complete each activity.

●● Competence - The ability and knowledge required to perform the tasks associated
Notes
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with a specific role.
●● Blueprint - A document that explains what a program means to accomplish and
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describes a program’s contribution to organizational objectives.
●● Risk sharing - Risk sharing involves handing ownership of a positive risk to a third
party who is typically specialized and better able to realize the opportunity.
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●● Aggregate planning - This strategy uses demand forecasts to manage
scheduling and planning for project activities between three and 18 months
in advance, so that the necessary resources and personnel can be efficiently
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acquired or assigned.
●● Threat - A negative risk that could adversely affect project objectives.
●● Assumption - Factors deemed to be true during the project planning process,
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though proof of their validity is not available. A project’s assumptions can affect its
risks and outcomes, so you must consider them carefully.
●● Project plan - A document formally approved by the project manager, sponsor, and
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other stakeholders which states the approved cost, schedule, and scope baselines.
It guides project execution, control, and quality and performance assessment.
●● Configuration - Configuration of a product involves shaping its functions and
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characteristics to make it suitable for customer use.
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●● Brief - This refers to the document produced during a project’s concept phase. It is
the primary document outlining requirements.

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1. The five dimensions required to be overseen on a project are:

a) Features, Quality, Cost, Schedule, Staff
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b) Features, priority, Cost, Schedule, Staff

c) Constraint, Quality, Cost, Schedule, Staff
d) Features, Quality, Cost, Schedule, customer
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2. At the strategic level ______________________ can be seen as an important

element in formulating the long-range plans of companies.
a) Recourse Management
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b) Resource Scheduling
c) Recourse Planning
d) All of the above
)A
3. Resource needs in project becomes constant during ___________ progress stage.

a) 40 to 55%
b) 55 to 70%
(c
c) 70 to 80%
d) 80 to 95%

4. The probability of finishing the project is arrived at, based on the ____________.
Notes
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a) Uniform distribution curve
b) U-shaped distribution curve
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c) Normal distribution curve.
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5. In the beginning phase of the project, the probability of finishing the project is
______________
a) Zero
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b) High
c) Low
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d) All of the above
6. Project schedule is developed in the stage:
a) Conceptual
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b) Planning
c) Implementation
d) Design r
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7. In order to crash a schedule, we need to:
a) Increase the time allowed on those tasks that have float.
b) Try to increase expenditures of time only those tasks that are behind schedule.
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c) Replace those workers that are not performing up to par with the busy.
d) Increase work efforts on those tasks that are on the critical path
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8. Of the following, what is NOT a primary need for good project scheduling?
a) Cutting costs and reducing time
b) Developing better trouble shooting procedures.
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c) Decreasing the time required for decision making

d) Eliminating idle time
9. The time required to finish a project is:
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a) Implementation time
b) Operations cycle
)A
c) Life cycle
d) Production cycle
10. Project managers who achieve success, concentrate their time on:
a) Planning with their personnel
(c
b) Planning with the top management

c) Communication with the project team

d) Studying project results.

Notes
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11. The purpose of Resource Levelling is:
a) Reduce resource requirements by smoothing out period-to period resource
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assignments.
b) Ensure that the budget abnormalities are overcome.
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c) Reduce the number of resources so that they can be shared with on other
endeavours.
d) Increase the amount of the project manager’s authority so that budget dollars
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can be appropriated.
12. Effective time management amounts to:
a) Having the most advanced software package for project planning, scheduling
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and control
b) Knowing the dictated project completion date
c) Having a good project WBS which identifies the major project deliverables and
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tasks, and the person responsible for each of them
d) Having a well-staffed scheduling department
Exercise r
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1. What is Project Sponsor?
2. Describe the role of a Project Manager.
3. Define Project Leader.
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4. What are the responsibilities of Project Manager?

5. Explain some project management strategies.
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6. Define Project Control.

7. Describe the method of monitoring and controlling.
8. Explain the type of Meetings.
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9. Explain the types of Contractual Relationships.

10. Define Negotiation.
11. Describe the types of resources.
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12. Define Crashing.
Learning Activities
)A
1. Make the list of the events that you will conduct and the teams that you will need to
form. You will be inviting corporate dignitaries from outstation and will be arranging
for their accommodation as well. Your teams’ formation needs to take all of these
into account.
(c
2. What are the five 5 qualifications as a project manager?

3. Think back to a major incident in your life where you would have had a better outcome
Notes
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with better negotiation. Document how could you have done better, compared to
how it eventually turned out.
in
1. c)
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2. b)
3. a)
4. c)
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5. d)
6. b)
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7. d)
8. b)
9. c)
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10. c)
11. a)
12. b) r
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1. Camille Fournier: The Manager’s Path, O’Reilly Media, 2017 Edition.
2. Stanley E. Portny: Project Management for Dummies, For Dummies, 5th
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Edition.
3. Anh Dao Pham: Glue - How Project Leaders Create Cohesive, Engaged, High-
Performing Teams, G&D Media, 2022 Edition.
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(c

Module - V: Project Termination

Notes
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●● Project Termination and Abandonment Analysis
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●● Normal Closure
●● Premature Project Closure
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●● Perpetual Project
●● Failed Project
●● Changed Priority
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●● Project Handover and Commissioning
●● Purpose of Project Audit
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●● Steps in Project Audit
●● Types of Project Audit
●● Project Audit: Report Contents
●● Project Closure: Final Process Group
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●● Project Closure Checklist
Introduction
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Today, time is a lot more valuable “commodity” than it has ever been. We may
squander time only at the expense of painfully real concrete and intangible losses:
opportunity, health, riches, property, happiness, and, in the worst-case scenario, our
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very lives. This article takes time seriously and places it at the centre of its discussion of
current undertakings and their timely completion in the maelstrom of real time.
By definition, projects are transient organisations, regardless of whether they have

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transient or permanent progeny. For example, a five-year, labor-intensive construction

project including the building of a suspension bridge spanning a large river connecting
twin cities is intended to be permanent. On the other hand, a three-month knowledge-
intensive software project may result in a database application that will be outdated in
less than a year. Temporary has a time component: it is derived etymologically from the
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Latin adjective temporarius, which means “lasting for a short period of time” (Merriam-
Webster Collegiate Dictionary 2000). The project must be brought to a close.
Whatever the nature of the project, time and timing are critical management
)A
elements. Regrettably, a significant majority of initiatives fail to complete on schedule.

They are expensive for project owners and impose significant opportunity costs on the
customer. Clearly, this is a severe enough situation to need our undivided attention.
As a result, this module examines the difficulties inherent in finishing a project on time
for the initial Target Termination Date (TTD). Additionally, it aims to provide solutions
(c
that would enable the project to be completed on schedule without risking other
project criteria.

Terminating a project is one of the most difficult choices that a project management
Notes
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team and its control board must make. It frustrates stakeholders who truly thought –
and, in the majority of situations, continue to think – that the project will provide the
benefits they anticipated, or continue to expect. The project manager and his or her
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team members, who are also significant stakeholders in the project, would feel
personally defeated. They will also be fearful of the bad implications for their jobs; as a
result, their motivation and productivity will suffer dramatically.
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In contrast, we believe that consciously terminating a project at the appropriate
time, based on clear and well-communicated criteria, deliberatively discussed with the
entire project management team, and finally agreed upon, is one of the most audacious
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actions that an organization’s involved or affected members can take.
5.1 Termination processes
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Choosing whether to abandon a project is neither simple nor enjoyable. However, it
is sometimes unavoidable.
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Aborting a project at the correct moment may make all the difference, as opposed
to continuing a failed project till the bitter finish.
That is why we prepared this guide to project abortion to assist you in

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understanding how to terminate a project. Not only that, but this piece also discusses
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the elements that may contribute to project termination and the individuals that may
make this decision.
Being aware of this might help you salvage the project on which you and your team
have been working so diligently or give you with the information necessary to choose
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the appropriate moment to terminate the project.
Different Methods of Project Termination

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There are two primary methods for terminating a project. “Natural project
termination” and “unnatural project termination” are two of these sorts.
Natural termination of a project refers to those that come to an end because

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the project’s objectives have been met. Natural termination occurs when a project is
successfully completed.
On the other side, unnatural termination is just the contrary. Unnatural termination
occurs when the organisation that supported the project or the location of the project
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decides that they are no longer prepared to devote the necessary resources, time, and
money to finish the project.
We will concentrate on unnatural termination in this post, as we will discuss why you
)A
should abort a project and why doing so is in the best interest of all parties concerned.
Reasons to Abort Your Project

The following are only a few of the probable causes for project termination:
(c
●● Technical considerations
●● The project’s needs evolve significantly.

●● The project’s requirements are ambiguous or unreasonable.

Notes
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●● A frequent factor for the termination of several projects is a lack of project planning.
●● Because the project’s planned goal is no longer required, the project becomes outdated.
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●● The project’s cost exceeds the estimated income; or the project’s required
materials, equipment, or human resources are unavailable.
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●● External factors such as a natural calamity, such as an earthquake or floods, are
examples of external forces.
●● Inadequate managerial support
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●● Inadequate customer assistance
Numerous Methods of Project Termination
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After learning about probable causes for project termination, it’s critical to realise
that when a project is ready to be ended, it might take one of four alternative paths.
Apart from the many sorts of project termination, these four outcomes are as
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follows: project termination by extinction, project termination by addition, project
termination by integration, and project termination by famine.
Let’s quickly discuss each category so that you can distinguish between them and
understand what to anticipate in each instance. r
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1. Extinction as a method of project termination
When a project is terminated by extinction, it is owing to its successful or failed finish.
Extinction of a project may occur under the following circumstances:

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●● The scope of the project has been fulfilled, and the customer or end-user has
approved of the project’s output.
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●● External factors such as a market crisis, technical breakthroughs, and so on have

rendered the idea obsolete.
●● The project fell short of its objective.
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2. Completion of the Project Through Addition

The majority of projects are completed ‘in-house,’ which means they are carried
out by the project team with the intention of the project conclusion being utilised by the
parent company.
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Additionally, if a project is a success, it may be ended by formalising it as a part of

the parent company.
3. Completion of the project via integration

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When a project is terminated via integration, it is either incorporated into other

bigger continuing initiatives or becomes part of the organization’s ongoing operations.
In this instance, project resources are dispersed, and the project as a whole loses
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both its goal and identity as an independent endeavour.
4. Project Termination Due to Hunger

Projects may be terminated via famine for a variety of reasons. These justifications
Notes
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might include politics, appeased sponsors, or even general budget reduction.
Many believe that terminating a project via starving is not a termination at all. Many
in
feel that euthanasia through hunger is a deliberate act of neglect.
Thus, hunger termination is the act of depriving a project of the resources essential
to support its continuous operations. This results in the inevitability of the system
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ceasing to operate.
Decision to Abort a Project
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Project termination is not a random occurrence; it is the outcome of determined
choices taken by important stakeholders.
Often, there are warning signals that a project is about to be cancelled, as the
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parties involved strive to avert the termination.
Nobody who has invested time and effort in a project wants to see it terminated. It
is human nature to attempt to rescue the enterprise to the greatest extent feasible.
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Numerous parties in the project have varying levels of interest, ambitions, and agendas.
The following sections will discuss certain classes or groups of stakeholders who
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possess the ability, motivation, and opportunity to end a project.
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These critical stakeholders have the ability to directly or indirectly create
circumstances that lead to other stakeholders terminating the project.
These are the essential stakeholders who have the ability, motivation, and
opportunity to bring a project to an end.
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1. The Customer
The customer is one such stakeholder who has the authority to terminate a project.
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However, since the client has a personal interest in receiving the project deliverable, he
or she may be one of the stakeholders most concerned about project termination.
This desire has often been seen to motivate a customer to continue with a project
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that is hopeless long after it should have been abandoned rationally.
2. The Executive Committee

Senior management either starts a project or accepts one through a client
contract. As a result, senior management plays a critical role in determining whether to
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discontinue a project.
3. Capitalists
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While investors are not necessary for every project, investors such as venture
capitalists have enormous influence and often cast the final vote on whether a project
should be discontinued.
Investors as stakeholders may make termination decisions more rapidly and

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unexpectedly when the investor’s fortunes and interests change.
4. The Society

Projects may be considered as social constructions designed and controlled by

Notes
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individuals for individuals.
It is not uncommon for the project environment, which is influenced by legal,
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political, regulatory, moral, and social issues, to have an effect on the project’s survival.
If the necessity arises, the society’s representatives will act directly or will exert
sufficient pressure on other stakeholders to exercise their project termination power.
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Each and every participant has a vested interest in the success of the project.
That is why, if a plausible strategy exists to rescue a failed project or one scheduled for
termination, stakeholders are inclined to give it a chance to succeed.
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Stakeholders must be informed of termination thresholds; excellent communication
between stakeholders helps determine the threshold and also alerts stakeholders to the
possibility of project termination.
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How Do I Terminate a Project? The Correct Way to Do It!
Now that we’ve identified the most common causes of project termination and the
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possible parties involved, it’s time to learn how to abort a project as a project manager
while minimising your susceptibility.
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Because project management is not an exact science, there is no precise protocol
or standardised method for determining the termination factors and providing a
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standardised indication of the termination decision.
However, there is a fundamental procedure that you can adjust to any project
that will enable you to concentrate on any elements that are most likely to result in a
termination decision.
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Risk Management is the procedure to follow. Identifying risks entails determining any
uncertainty associated with your project and the potential negative effect it might have.
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When evaluating risk in light of a prospective termination decision, it is critical to

maintain a broad perspective on the risk assessment as a whole, rather than on any
individual identified risk in the project.
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You must assess the complete risk picture, which includes the severity of the
hazards and the expenses associated with mitigating or offsetting the risk.
To illustrate, take the following formula:
Risk cost = impact in $$ x probability of occurrence + mitigation cost x (1-

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probability)
Consider the effect as the monetary equivalent of the outcome to stakeholders if

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the risk occurs. Probability is the probability of an event happening. The term “mitigation
cost” refers to the estimated cost of avoiding or mitigating the risk.
When discontinuing a project, the following eight actions should be followed:
●● Resolve any outstanding contractual obligations with suppliers.

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●● Any necessary obligations are transferred

●● If feasible, dismiss or reassign the project team.

●● All leftover resources should be released

Notes
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●● Ensure that all accounting and financial concerns are resolved
●● Maintain a record of lessons learnt to use as a reference for future initiatives.
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5.1.1 Project Termination and Abandonment Analysis
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The termination (or close-out) of a project is the last step in project management.
It happens after the completion of the implementation phase. Acceptance testing has
been completed, and the customer has received the project deliverables. The project
team has been dissolved, and any remaining resources have been properly disposed
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of. All outstanding invoices have been paid, and final invoices for completed work have
been provided. The close-out stage’s primary objective is to assess your performance
and to learn lessons for the future. A final project status report is created, which should
include a description of any scope adjustments (if any) and a comparison of the actual
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completion dates for project milestones and expenses incurred to the final version of
the project plan and budget. All substantial deviations from the project baseline should
be justified in this section. A review with the client and other project stakeholders is
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then conducted, during which the project’s outputs are compared to the project’s stated
goals and objectives. The review’s findings are documented in a close-out report. The
questions to ask stakeholders may vary according on the nature of the project, but will
often include the following: r
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●● Was the project finished on time (or were any delays considered reasonable?)
●● Were financial constraints observed?
●● Were project management protocols followed to the letter?
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●● Was communication successful?

●● How did the project’s management team fare?
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●● Was the overall result satisfactory?

●● What modifications could be made to future projects?
Projects fail for a variety of reasons, some of which are beyond the project
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manager’s control. External elements that might impact the result include a changing
business climate, a lack of senior management support (including the allocation of
necessary resources), or a lack of cooperation from the project customer. Internal
causes include a lack of experience on the project team, insufficient planning and
management, poorly stated project goals, and ineffective communication. Despite the
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fact that a project may not have met all of its stakeholders’ expectations, subsequent
initiatives might profit from the lessons learnt through the post-project review process.
It is critical to draw lessons from both successful and unsuccessful components of the
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project. Not only may similar errors be prevented in the future, but best practises can
also be adopted in future projects.
The close-out report will serve as the project’s final report. It will contain an
executive summary, a final status report, and an analysis of lessons learned, as well
(c
as suggestions for future project management improvements. The close-out report

will be made accessible to future project managers so that they may benefit from
the lessons learned and suggestions developed from them. Additionally, the project

documentation will be saved for future reference, and if it includes correct information
Notes
e
that has been maintained throughout the duration of the project, it will serve as a useful
source of historical data. When assessing past difficulties, it is critical to determine the
fundamental cause and devise methods to prevent future occurrences. Certain forms
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of problems cannot always be avoided (changes in scope will often occur, for example,
but they can rarely be predicted). Nonetheless, it may be feasible to discover a method
for spotting difficulties sooner in the project management process, therefore minimising
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negative outcomes.
The critical significance of having current, full, and correct project data available
throughout the close-out process cannot be emphasised. The analysis of issues and
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the creation of solutions (as well as the capacity to recognise and document excellent
practise) will be significant only if they are founded on a complete and accurate record
of what transpired over the project’s duration. Individual project team members’ and
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other stakeholders’ recollections of past events are corrupted by time and personal
prejudice, and hence cannot be relied upon. It is also rather unjust to require project
team members to submit remarks that are critical of colleagues or cast themselves
in a negative light, especially if such statements would be disclosed during a project
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team debriefing and may potentially create humiliation. The purpose is to draw attention
to issues and provide solutions, not to assign blame. Although the project manager
may be asked to evaluate and report on the performance of individual project team
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members, this evaluation will often take the form of a private written report that is only
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read by the person’s line manager.
If the initiative is a success, there will be reason to celebrate. This might take
numerous shapes, but it is a chance to express gratitude to the project team for a
job well done and to provide them with closure. Even if the project was not a perfect
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success, it is important to express gratitude to the members of the project team for
their efforts, as they undoubtedly worked long hours. Where performance warrants it,
the team as a whole or individual team members should be appropriately recognised.
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Appropriate recognition for a job well done might take the shape of monetary
compensation or something less tangible. Occasionally, for some individuals, a feeling
of genuine appreciation is just as valuable as money. Recognition of a significant
contribution made is often sufficient motivation to guarantee that an individual’s future
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performance is on a par with, if not better than, his or her previous performance.
5.1.2 Normal Closure

The last step of a project’s lifecycle is called closure or termination. This phase
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begins after all project deliverables specified in the scope statement have been
completed. Despite their success throughout the planning and execution phases, a
lot of project managers encounter issues during the close phase. This is because
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successfully completing a project involves both technical and interpersonal abilities. The
biggest difficulty for the project manager at termination is demonstrating compassion
and empathy for a team that may be demotivated as the project nears completion.
This may be why Spire and Hamburger (1988) recommend that ‘project
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termination’ be handled as a separate project. Indeed, the work of project closure

conforms to the traditional definition of a project, which is defined as a distinct activity
with unique resource restrictions. This indicates many possible issues during the

closing process. These are classified into intellectual and emotional components that
Notes
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management should address when the project enters the termination phase.
Termination conditions for projects
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As already discussed, initiatives are transient in nature and must thus end. When
we design a project, we determine a completion date and make proper arrangements
for closure. Nonetheless, a project may fail for a variety of reasons.
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Gray and Larson (2008) identify five reasons why a project should be terminated:
●● Closure standard: The most often seen condition of project closure is when the
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project is completed on time. This is the moment at which the project’s objectives are
achieved, the client accepts the project, and the standard closure procedure starts.
●● Early closure: Many initiatives fall short of meeting all of their deliverables or are never
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given the opportunity. Rather than that, they are prematurely concluded by excluding
portions of the project that were originally included in the scope of the project.
This might be due to financial constraints, such as the client limiting funds provided
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to the project or the project exceeding its budget. Premature closure also occurs
when a project is vital to the organization’s plan and must be finished sooner than
expected, such as when launching a new product. Delay beyond the scheduled
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completion date of the product may result in the client losing an opportunity.
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●● Current Projects: On the other hand, some projects seem to never end. These
are initiatives that have had multiple setbacks, delays, and difficulties. Perpetual
projects, as outlined in Chapter 6, are equally prone to scope creep, add-ons,
and changes. The issue with these types of projects is that they never achieve
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their stated goals or objectives, as scope creep and revisions occur constantly.
This quickly becomes vexing for the project manager and team. It will also be
very infuriating for the client, since they will believe that the project’s objectives
have not been reached despite their continuous modification requests. At some
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point, the project manager must define the scope of work and devise a plan for
completion. This may be achieved by redefining the project’s scope in such a
manner that it is forced to close, by limiting funding or resource allocation, or by
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setting a time limitation. As a result, any changes required by the client may be
regarded a secondary phase of the project, rather than a perpetual one.
●● Projects that have been abandoned: Far too often, endeavours fail. Numerous
variables contribute to the failure of a project. It is quite usual for a client to run out
of funds, therefore terminating the project. Another often occurring incident
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When it comes to project management, successfully completing a project is more

than just completing deliverables. While the process may seem lengthy or excessively
)A
administrative, it guarantees that all loose ends are tied, paperwork is signed and
authorised, contractors are paid, and everyone is on the same page. Additionally, the
closure phase allows you to assess and evaluate the project’s success (or failure).
5.1.3 Premature Project Closure

(c
The project life cycle is often divided into four phases: start, development,
implementation, and closure (Meredith and Mantel, 2000; Turner, 1999). The literature

on project management often focuses on the early stages and the accompanying
Notes
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general project management competencies, such as planning, scheduling, budgeting,
resource management, and motivation. Until now, little emphasis has been placed on
the notion that the termination phase is distinct from the other stages of the project.
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According to the project management literature (e.g., Meredith and Mantel, 2000),
project closure should be planned, budgeted, and scheduled in the same manner as the
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preceding stages of the project life cycle. Numerous textbooks recommend a project
termination checklist (Lock, 2003; Meredith and Mantel, 2000; Turner, 1999), which
includes the following steps: transfer of responsibility from the project manager to the
operations manager, evaluation, recording of descriptions (e.g., design, technical data),
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and writing a final report.
As a result, the textbooks’ perspective of project closing activities is mostly

administrative in nature. This perspective of project closures, however, may be
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contested in three ways.
To begin, the management abilities and competencies required during the closing
phase of a project may be very different from those required throughout the execution
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phase. Turner (1999: 330) comments on this diversity in management competencies by
project phase, stating that ‘the talents necessary to complete a project may be distinct
from those required to initiate and oversee it.’ Turner (ibid.: 329) also emphasises
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the fact that an inadequate closure may have long-term ramifications for the persons
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involved, as ‘... everyone recalls an inefficient close-out’. As a result, the closure phase
of a project is crucial, and ‘...it may be acceptable to change management’ after a
project has closed.
Second, not all projects are completed on schedule. When a project is completed
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on time and under budget, the project managers may adhere to the standard processes
established at the commencement stage. However, when projects are completed later
or sooner than anticipated, the timetable, resource allocation, and project objectives
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must all be renegotiated. Thus, the assumption that closure is primarily administrative
in character is challenged by the possibility of the need for whole new sorts of skills and
competencies. For instance, Royer (2005: 86) proposes for the creation of a distinct
‘exit champion’ tasked with the responsibility of ‘... pressuring [...] the organisation to
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recognise when enough is enough’.
The third difficulty with project closure being primarily an administrative procedure
stems from the fact that some initiatives are rather lengthy and need significant
commitments from internal and external parties. Longer-term initiatives involving external
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stakeholders (such as suppliers) cannot be completed without senior management

involvement. Davis (2005), for example, suggests that top management should terminate
the project if expenditures significantly exceed budget. As a result, the duties associated
)A
with project closure are not just operational, but also strategic in nature.
Premature project closure may occur at any stage of the project’s lifecycle:
during its inception, development, or execution. The literature on project management
acknowledges that premature project closure is occasionally necessary. For example,
Lock (2003) notes that a premature project closure may occur when the project is
(c
finished early than anticipated. Other possible causes include a project owner’s lack
of funding, a change in the project’s purpose and planned output, or a change in

the project owner’s financial condition as a result of economic or political events. As

Notes
e
a result, the decision to close the project must be made by the project owner. This
has an effect on the working conditions of project participants as well as the project
manager. ‘Premature project closure’ refers to project completions that fall significantly
in
short of the specified timeframe (and thus of the specified project objectives) and
thus necessitate significant changes to project management, as well as the need for
reorganisation affecting both internal and/or external stakeholders of the project.
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Competence in project termination in the event of early project closure
Suikki et al. (2006) and Söderlund et al. (2008) have both emphasised the need
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of building project management competencies. According to Söderlund (2005), project
competence encompasses four subprocesses: project creation, project organisation,
project management, and project collaboration.
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Thus, the term places a premium on the first stages of initiatives (ibid.: 455). When
a project enters the closing phase, the relative relevance of these subprocesses is likely
to shift. Until now, projecting competences have been unaddressed (see Havila and
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Salmi, 2009 for an example). This is unsurprising, given researchers’ relative neglect of
project closure. Managers are also unlikely to discuss or emphasise ending scenarios.
Enthusiasm, activity, and experiences all have a tendency to be associated with
the initiation of new undertakings. As Atkinson et al. (2006) remark, “the enthusiasm
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associated with a new project provides energy to get it started, but that energy is
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depleted towards the conclusion of the endeavour.”
A premature project closure might be seen as an unforeseeable incident that

requires a different response than a ‘regular’ project closing. Geraldi et al. (2010), for
example, propose three pillars that promote effective reactions to unexpected events:
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(1) a responsive and functional organisational structure, (2) positive interpersonal

relationships within the group, and (3) competent individuals. This demonstrates the
need of both people and organisations being attuned to addressing (incremental or
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radical) events in order to guarantee effective project management. On the other hand,
as Vaaland (2004) demonstrates, it is not the conflict events themselves that count
for relationship growth, but how they are viewed and handled: openness seems to be
critical for minimising relationship tensions. More precisely, comprehensive change
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management frameworks have been developed for project management. For example,
Steffens et al. (2007) emphasise both operational and strategic change management,
support a contingency approach to change management, and argue for a screening
team (in addition to the project team) to ensure effective project change management.
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However, these frameworks are not limited to the project’s conclusion phase.
Due to the peculiar nature of the termination phase, Havila and Salmi (2009: 63)
propose a distinct concept called project-ending competence, which they define as ‘the
)A
organization’s and its employees’ ability and skills to terminate the project with the least
possible harm to internal and external project stakeholders and company relations.
Accordingly, project-ending competence is comprised of two components: first, the
organization’s ability and dedication to assist operational managers responsible for the
closure, and second, the workers’ quality and capacity. This is consistent with Kasvi et
(c
al(2003: .’s 571) claim that ‘Successful project management is founded on accumulated
knowledge and individual and group capabilities.’ Additionally, there is a significant

resonance with Geraldi et al. (2010)’s perspective on responding to unexpected

Notes
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situations. Thus, both people and organisations must be capable of storing and reusing
prior knowledge.
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However, when a project is prematurely closed, management must not only make
a determined choice to terminate the project, but also deal with the project’s often
disgruntled stakeholders. This may become a key problem to address in the event of
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an early project closure, since closure is often associated with negative sentiments both
inside and outside the organisation. The initial project participants may have a tough
time accepting the project’s conclusion. As one manager engaged in an early closure
commented, “no one wants to be a part of the funeral” (Havila).
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92 V. Havila et al., International Journal of Project Management 31, no. 3
(2013), pp. 90–99, and Salmi 2009, p. 72). Additionally, external stakeholders of
the organisation, such as supplier companies, customer firms, and end-customers,
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may be considered as forming a network of linkages that management must manage
throughout the closure process (Johanson and Mattsson, 1985).
In the project management literature (Aaltonen, 2011; Achterkamp and Vos,
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2008; Jepsen and Eskerod, 2009), stakeholder management has garnered substantial
attention. Additionally, the relevance of considering many stakeholders has been
recognised at times when a project experiences significant changes (Olsson, 2006;
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Söderholm, 2008). Thus, one critical skill required of managers during premature
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project closure is an understanding of stakeholder interactions, particularly the
relationships between stakeholders.
To summarise, a premature project closure is often an unforeseen occurrence,

leaving a business and its management unprepared to cope with it. Typically, the project
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owner makes the closure decision, which implies that top management is engaged
even before the decision is made. However, it is up to the project managers to execute
the closure plans. Thus, while dealing with various sorts of project stakeholders, both
U
senior and project managers are required. A significant problem is how to deal with
unhappy project stakeholders, such as workers, customers, and suppliers, who are
suddenly confronted with a scenario that might have serious ramifications for their
status. We will continue our study of the project-ending competencies required for
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premature project closure by examining the next two case studies.
5.1.4 Perpetual Project

On the other hand, some projects seem to never end. There have been many
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delays, setbacks, and problems with these projects. Scope creep, add-ons, and
changes can happen over and over again on projects that never end.
The problem with these kinds of projects is that they never reach their goals or
)A
objectives because they keep changing and getting bigger. This makes the project
manager and the team working on the project very angry. It will also be very frustrating
for the client, who won’t see the project’s goals being met, no matter how many times
they ask for changes.
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At some point, the project manager will need to decide on the project’s scope and
make plans for its end. This can be done by limiting the budget or resources, setting a

time limit, or limiting the project’s scope so that it has to end. So, any extras the client
Notes
e
wants can be thought of as a second phase of the project, instead of the project going
on and on.
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5.1.5 Failed Project
Not every project goes according to plan. And, although it’s crucial to celebrate
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successes, the finest teams (and project managers!) understand that delving into
mistakes and capturing lessons learned is just as critical.
Unfortunately, when a project fails, the last thing the majority of people want
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to do is investigate why. Failure is unpleasant. However, whether it is pride or future
deadlines that force you to close your eyes, disregarding unsuccessful endeavours as a
source of future information is a grave error.
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Even with a large business-like IBM, just 40% of projects meet all of their
requirements. However, the remaining 60% of their time is spent learning how to
enhance and update their procedures, communication styles, workflows, and objectives.
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The difficulty is that not everyone understands how to capture lessons learned
appropriately. True, it’s simple enough to jot down what you believe went wrong.
However, without a systematic method for documenting, analysing, and archiving
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lessons gained, it is hard to capitalise on these insights.
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Seven often cited reasons for project failure (and their solutions)
Fortunately, these frequent issues are solvable—with sufficient forethought, you

can halt failure in its tracks.
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1. Unclear objectives
The issue is that your team is not unified on the project’s objectives, and there is no
method to track progress.
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The project objectives are the goals you want to accomplish throughout the course
of the project. They should be clear, time-bound objectives that you can quantify at the
conclusion of your project. Without clearly defined goals, it’s difficult to keep your team
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on track or to determine if your project was a success or a failure.
Consider the following scenario: your team is creating a new checkout page for
your mobile app. Without a defined aim (for example, “decrease the average checkout
time for end customers by 30% in Q2”), it’s difficult to determine which additional
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features will help the page succeed. And after the project is complete, it will be difficult
to evaluate performance without a precise benchmark to compare against.
Uncertain aims are a frequent occurrence. The 2021 Anatomy of Job Index
)A
indicated that fewer than half of all employees understood how their daily work
contributed to larger aims.
Solution: As part of your planning process, establish defined goals.
Effective project goals bring your team together and serve as a yardstick for
(c
success. Establish goals prior to beginning your project; even better, include your team
in the goal-setting process to ensure everyone is on the same page from the start.

Setting goals is a smart concept as part of your broader project plan, which
Notes
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includes details the project’s stakeholders, deliverables, and timetable.
2. Expansion of the scope
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The issue is that the deliverables for your project vary as work goes.
Scope creep is difficult to detect because it often occurs gradually—one might even
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say it sneaks up on you. It’s what occurs when project deliverables surpass the scope
of the project and you wind up with more work than anticipated.
For instance, suppose you intended to post ten blog pieces this month in
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conjunction with the introduction of a new product. However, a stakeholder has
requested that you add two extra postings to promote a different product. With that
additional request, your resources are stretched thin, and you’re forced to push back all
publication dates.
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Scope creep is a significant cause of missed deadlines and project failures. Indeed,
respondents to a 2021 Project Management Institute poll revealed that 34% of their
organization’s projects had scope creep in the previous year.
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Solution: Before you begin, define — and disseminate — your project’s scope.
When scope is defined in advance, it becomes much simpler to produce solutions

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on time and on budget. You may plan ahead for resources and ensure that last-minute
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requests do not overwhelm your team. A well-documented project scope also serves
as an effective weapon for rebuffing further demands from stakeholders. That means
adhering to your original ten blog articles and completing your project on time in the
example above.
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A scope statement may be used to document the project’s scope. This may
be included as part of your project plan or as a separate document. Once your scope
statement is complete, ensure that you communicate it with your stakeholders. When
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they have a firm grasp on what is and is not included in your project, they will be less
prone to add on new requests. And if you do get an additional request, you may utilise a
change control procedure to assess if it is critical enough to include in the project’s scope.
3. Absurd expectations
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The issue is that success is unattainable.
While inspiring objectives might help maintain upward momentum, they must also
be feasible. If your project’s goals are set too high, it’s easy for anxious coworkers and
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missed deadlines to occur.
Consider the following scenario: your sales team has a monthly stretch goal of 100
commissions. However, two team members are on PTO, which means the remaining
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members will need to work extra to meet the deadline. This indicates that there are
insufficient resources to accomplish the target, and success is almost certainly out of reach.
Overly ambitious ambitions might be a project’s kryptonite. The most prevalent

reason of missing deadlines, according to the 2021 Anatomy of Work Index, is
(c
excessive expectations.
Solution: Set SMART project goals as a solution.

With sufficient forethought, you may still establish motivating goals that do not
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need more hours on the clock. To develop challenging (but attainable) objectives,
ensure that they are SMART: precise, measurable, attainable, realistic, and time-
bound. The SMART objectives technique establishes a clear definition of success while
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also offering a path and end line for your project. By ensuring that your objectives are
attainable and within the scope of your project, you can reduce project risk and position
your team for success.
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Read: Improve your SMART goal writing skills with these guidelines and examples
4. Scarcity of resources
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The issue is that you lack the necessary resources to complete the task.
The term “resources” refers to whatever that is required to finish a project—budget,

people, time, space, or tools. A shortage of resources might cause a project to be
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delayed or even halted entirely.
Consider the following scenario: you’re developing an advertisement for a new

product. The deadline is drawing near, but your budget for freelance video editing is
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depleted. With just one in-house editor to assist, the campaign’s debut must be
delayed. In this instance, you’ve exhausted both your money and the people necessary
to complete the task on time.
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Solution: Create an advance resource management strategy.
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Occasionally, unanticipated occurrences such as budget cutbacks are difficult to
forecast. However, with a little organisation, you can often guarantee that your team
has what they need to accomplish project objectives. A resource management strategy
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details the quantity and kind of resources necessary for your project—so you know
precisely what you’re getting yourself into before you begin. Then, using best practises
for resource allocation, determine precisely when each resource should be assigned to
each project. This may include, but is not limited to, staff bandwidth, money, technology
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equipment, and even a workplace.
5. Ineffective communication
The issue is that team members are unsure about how and when to share updates.
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Communication is more complicated than it has ever been. According to the 2021
Anatomy of Work Index, employees switch between ten applications 25 times per
day on average, and 27% of workers report missing activities and notifications while
switching apps.
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With today’s app overload, it’s difficult to choose when and where to disclose
critical project updates. This implies that if project team members are not in agreement
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on which communication channels to use, when to use them, or who should convey
what, work may be jeopardised.
Consider the following scenario: You are the leader of a remote team distributed
throughout North America and Europe. You communicate using a variety of methods,
including email, instant messaging, video conferencing, and shared documents.
(c
However, your team lacks guidance on when to utilise each channel—as a result,
team members often publish critical updates in channels that are only visible to a

select group of individuals. As a consequence, critical details are missed and work is
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often repeated.
Create — and share — a communication strategy.
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A well-defined communication strategy outlines how you will communicate critical
project updates. It clarifies which technologies to utilise for specific tasks, establishes
how often updates will be provided (and who should share them), and indicates when
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important stakeholders should be notified. With an effective communication strategy in
place, you can spend less time hunting down information and more time focusing on the
project’s goals.
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A communication strategy generally specifies the frequency, channel, audience,
and owner for each mode of communication. For instance, you might include the
following information in weekly project progress updates:
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●● Type of communication: progress updates on projects
●● Frequency: Weekly
●● Channel: Email
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●● Audience: members of the project team
●● Owner: project manager
6. Delays in scheduling r
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The issue is that missed deadlines result in hurried work and severe project delays.
A missed deadline here, a meeting delayed there—these seemingly little incidents

may snowball into hurried work, agitated coworkers, and severe project delays.
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Consider the following scenario: you’re arranging a museum show and have had
your logistics meeting with the exhibit location rescheduled many times. Now that there
are two weeks before the grand opening, your team will need to accelerate the planning
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process in order to meet the deadline—or risk having to postpone the event entirely.
Scheduling delays of this kind are becoming more prevalent, with 26% of weekly
deadlines being missed, according to the 2021 Anatomy of Work Index.
Solution: Include a project timetable in your project plan.

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Remember our previous reference to the ever-useful project plan? Typically, this
contains a comprehensive project schedule. A project schedule details each item that
must be completed, who is accountable for each task, and when each task is due.
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A well-planned project schedule demonstrates to your team how the various

components fit together. This manner, you can readily determine which critical milestones
are reliant on others—and work backward from the due dates to ensure that each step is
completed on time. Additionally, you may include your team in the scheduling process to
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ensure that everyone’s timetable and duties are taken into consideration.
7. Inadequate transparency
The issue is that team members are unable to locate critical project material.
(c
You’ve created an outstanding project plan, complete with a timetable,

communication strategy, resource management strategy, and SMART targets. What
happens now?

If such papers are static and not readily available to your team, communicating
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changes without holding time-consuming status meetings might be difficult. Even so,
information may get lost in the shuffle.
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Solution: Utilize a project management solution to centralise project information.
Work management enables you to arrange workflows and establish procedures

that enable your team to cooperate effectively over time. The correct work management
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application may serve as a centralised repository for project data, documentation, and
status. We’re (obviously) partial to Asana since it provides teams with a live system that
enables each member to see and manage work and team priorities in the manner that
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works best for them. However, regardless of the platform used, project management
software enables your team to quickly access the information they want and keep current
on project developments. This means you can abandon Excel trackers that soon become
obsolete and ensure your project team always has access to up-to-date information.
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Make your initiatives impenetrable against failure
Now that you’re aware of the most prevalent causes of project failure, here are
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some methods for ensuring the success of your projects:
A project charter is used to sell your idea to stakeholders.
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A project plan is necessary to ensure that work is completed on time. This includes
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the following:
●● Objectives and goals for the project

●● Metrics of success
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●● Stakeholders and their respective responsibilities

●● Budget and scope
●● Deliverables and milestones
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●● Calendar and timetable

●● Communication strategy
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A resource management strategy for effectively managing your team’s workload.
A risk register is used to keep track of possible setbacks.
A kick-off meeting for the project to ensure alignment on critical aspects and
stakeholder buy-in.
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A project management tool to keep it all together.

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5.1.6 Changed Priority

A project may be terminated because of change in priorities. These could be due
to any of the following reasons:
●● Economic or financial reasons that may lead to resources being no longer

(c
available for the project. Management may have decided to divert resources to
higher priority projects.

●● The original importance or value of the project was misjudged or misrepresented.

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●● Organisational needs may undergo a change over the course of the project.
●● Change in technology
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5.2 Project handover and commissioning
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During the project handover and commissioning phase, extensive strategic
planning is required. These are frequently not described until later in the project’s
execution phase, but they should be recognised as part of the strategy.
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5.2.1 Project Handover and Commissioning
Effective communication is critical in all organisations when delegating a job and
its related obligations to another individual or work team. This might occur between
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shift changes, between shift and day employees, or during a shift between distinct
organisational roles, for example, operations and maintenance.
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Why is handover critical?
The purpose of handover is to ensure that task-related information is sent accurately
and reliably throughout shift changes or across teams, hence assuring the continuance of
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safe and effective work. Three components comprise an effective handover:
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Outgoing personnel must prepare; incoming personnel must contact with outgoing
individuals to share task-related information; and incoming personnel must cross-check
information when they accept responsibility for the job.
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Numerous accidents have occurred as a result of inadequate communication during

shift changeover; the bulk of these incidents included scheduled maintenance work. The
1983 Sellafield Beach Incident resulted in the unintended release of highly radioactive
waste liquor into the sea owing to a breakdown in communication between shifts.
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According to the Cullen Report, one of the several causes contributing to the Piper Alpha
accident was a breakdown of information transmission during shift changeover.
The fundamental concepts of handover

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To guarantee a secure handover, organisations should take the following steps:
●● Identify high-risk handovers;

●● enhance employee communication skills;
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●● emphasise the critical nature of shift handover;

●● establish shift handover protocols;
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●● prepare for maintenance work to be completed within one shift, if feasible.
Shift handover should be as follows:

●● performed face-to-face;
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●● two-way, with both participants sharing responsibility;

●● conducted using both verbal and written communication;

●● based on an analysis of incoming staff’s information requirements;

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●● provided with sufficient time and resources.
Additionally, the following improvements should be made:
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●● incorporating end-users into the design of support equipment, such as logs and
computer displays;
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●● engaging end-users in the implementation of any modifications to current
communication channels during shift changeover.
Commissioning and launch of an industrial facility entails more than meticulous
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testing of each piece of equipment. A comprehensive commissioning programme
requires a project management methodology to ensure that all phases of
commissioning are planned and executed appropriately. Commissioning is a vital
step in the lifespan of a project. However, while reviewing standard project literature,
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commissioning is not discussed in detail. This may be one of the reasons why
commissioning is often an afterthought on many projects — the commissioning team is
typically hired after the project’s conclusion to attempt to get the equipment to operate.
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However, this approach will not result in the project being completed on time or under
budget. Commissioning should be incorporated into all phases of the project using a
project management method to assure the success of each specific test.
Management of Schedules
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The commissioning team’s most potent instrument for defining priorities and
communicating the consequences of delays to the rest of the project team is the project
schedule. The in-service date is the most critical milestone on the project, and it is the
commissioning team’s obligation to ensure that this date is met at the conclusion of the
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project. This is only achievable if all other organisations involved in the project produce
their components on time to support the commissioning process. Delays in the design
phase may have a detrimental effect on the construction and commissioning phases.
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Incomplete or delayed installation and mechanical completions will have a substantial

influence on system commissioning. There are several tiny elements and deliverables
that must be completed on schedule to ensure that all components of the project are
operational when the new facilities are brought online.
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The commissioning schedule should be prepared early in the project in order to

communicate to the project team the project’s priorities. If the commissioning schedule
is not created until later in the project, after the commissioning crew has mobilised to
the site, the sequence of operations during design, procurement, IFAT, and construction
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might get entirely out of sync. Without a knowledge of how the project must culminate
in order to achieve the in-service date, it is impossible to plan all previous actions to
assure this occurs.
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This is one of the primary reasons for including the commissioning team early in
the project’s Front End Engineering & Design phase (FEED). The commissioning team
may collaborate with the design team to develop an overall commissioning sequence
that is compatible with the project’s scheduled start date. This in turn offers direction to
(c
the design team on the availability of design deliverables to support later construction
and commissioning activities.

Once designed, it is critical for the commissioning team to continuously analyse and
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assess the effect of any modifications to the commissioning timetable. Despite everyone’s
best efforts, delays will occur. While some of these delays are controllable by the project
team, others are more difficult to manage owing to external circumstances.
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●● Delay in the delivery of design deliverables.
●● Due to vendor-caused delays, equipment deliveries may arrive late at the site.
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●● Damage to equipment may occur during delivery or installation.
●● Due to infant mortality, systems may fail during testing.
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●● Systems may be harmed during testing as a result of insufficient testing methodologies.
●● Additionally, there are several others.
While these delays may occur, the most have some manner of mitigating their
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likelihood, and all should have a contingency plan in place if they do. More on this later
in the discussion of risk management.
Throughout commissioning, it is critical for the commissioning team to monitor the
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schedule and communicate with all stakeholders on a frequent basis. Everyone will
be keenly interested in the progress of commissioning, and the appropriate degree
of schedule information must be communicated to others to ensure they have a clear
knowledge of the commissioning status. r
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Cost Management
Commissioning is not a substantial cost component of the project budget.
Commissioning expenses are often less than 5% of the total project expenditure,
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typically between 2% and 3%. However, the expense of commissioning delays is

enormous. This is why the commissioning phase of your project must be well prepared.
The building phase of a project consumes the lion’s share of the money. There are
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vast workforces engaged, equipment is delivered to the building site throughout the
process, and construction operations might last for years. As a result, the building phase
of the project receives considerable attention. The owner is making significant progress
payments each month, which surely attracts attention. However, cost cannot be the sole
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factor used to evaluate construction. The timetable must also be watched, since delays
during construction might have a significant financial effect upon commissioning.
Costs associated with commissioning include the following:

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●● Labor expenditures associated with commissioning. This crew is far smaller than
the construction labour force and accounts for a modest percentage of the total
project costs.
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●● Costs associated with specialist test equipment. Certain pieces of test equipment
may need a lengthy lead time and incur hefty procurement expenses. However,
commissioning equipment expenditures are a minor component of the total
project budget.
●● Material expenses associated with first fills or incidental expenditures associated
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with starting equipment for the first time. Once again, this is a minor component of
the entire project budget.

Commissioning does not consume a significant amount of the project money.

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However, the cost of commissioning delays is enormous owing to the opportunity
cost and project burn rate.
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The lost opportunity cost is the value of one day of commercial service at the
new facilities to the owner. If the owner is able to produce $1 million every day that
the plant is in operation, then each day that the project is delayed loses the owner this
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one day of income. If the project is delayed for many days, weeks, or months, these
opportunity costs may quickly add up. Liquidated damages are often added in contracts
to guarantee that all parties are driven to reach the in-service date.
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The project burn rate is the cost to the owner of one day on the job. The burn rate
begins slowly at the beginning of the project. As the project begins and resources are
scaled up, just a few individuals are working on it. As more resources and equipment
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are added to the project, the project’s burn rate rapidly increases. The owner is
making monthly progress payments to all parties participating in the project, and
these payments are growing each month as more resources and material are billed.
Additionally, the owner incurs interest and escalation charges on top of the capital
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expenditure required to complete the project. The project’s burn rate peaks toward the
conclusion of the building phase, when commissioning operations begin. The daily burn
rate on a major project might be in the tens of millions of dollars. I’ve worked on projects
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with a daily burn rate of more than $5 million dollars. This equates to a $5 million cost
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every day for the owner in terms of labour, material, interest, and escalation costs
Each day of the project’s commissioning phase is incredibly important, and this must
be taken into account while making project-related choices. It is inadvisable to attempt to
save $1000 if doing so results in a one-day delay of the project. The rationale should be that
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if the project’s in-service date can be pushed by one day, the project will save $5 million.
Each day of commissioning is very significant due to the project’s burn rate and
missed opportunity expenses. And this must be addressed early on in the project’s
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development as well. If a design option can be made that saves one or more days
of commissioning, it is in the best interest of the project to go in this direction. If
commissioning team-requested installation operations are not performed on time, this
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results in a delay in the in-service date at the expense of the daily burn rate.
As a result, commissioning should be scheduled ahead of on-site testing to

ensure that the commissioning team is prepared to conduct testing operations. All
hazards must be minimised in advance (more on this later) to minimise the possibility
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of commissioning delays. Having a highly competent commissioning crew helps avoid

delays since they will know what to look for in advance of testing and can respond
quickly and effectively to difficulties when they arise. If the commissioning team makes
a mistake during on-site testing or conducts testing that is not strictly essential, each
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extra day adds to the project’s cost. The thinking must be that each day of testing
costs $5 million, that only necessary testing should be undertaken, and that any failed
or repeated tests incur considerable expenses. Having said that, all testing must be
conducted to guarantee that the systems are in compliance with the contract and that
the owner receives a high-quality product.
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While the cost of commissioning is very cheap, the cost of commissioning

delays is tremendous. All actions before commissioning and tests conducted during
commissioning must be designed and done with this in mind. A badly planned and
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performed commissioning phase of your project may rapidly spiral out of control in
terms of expense.
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Communication and Management of Stakeholders
The commissioning phase is the most scrutinised phase of the project. All project
stakeholders are aware that the project’s finish is approaching and are eager to put
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the new facilities into service as soon as possible. While it is possible for design and
construction activities to slide off the project timetable, no project stakeholder will
accept a delay in the project’s in-service date.
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This does not seem fair — that design and construction teams are not held
liable for schedule delays, but the commissioning team is held entirely responsible
for ensuring that commissioning operations are completed on time. However, this is
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the reality of projects, which is why we are a member of the commissioning team - to
perform under duress!
Just a remark — to alleviate some of the strain, re-read the section above on
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timetable management. The project schedule is the most effective instrument available
to the commissioning team for holding prior groups responsible for their outputs.
I’ve combined communication and stakeholder management since it’s vital for
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the commissioning team to address these two project management duties together.
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Communication management is crucial throughout the commissioning phase to manage
all stakeholder expectations and ensuring them get the information they need to
understand what is happening. Commissioning operations will go much more smoothly
if stakeholders understand what to anticipate during commissioning, what possible risks
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exist, how risks will be addressed, and what contingency measures will be implemented
to ensure commissioning progress is maintained. Regular updates to stakeholders will
keep them informed of the status of testing. Immediate notifications when tests fail
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would reassure stakeholders that all concerns are being revealed and discussed.
During this highly scrutinised stage of the project, effective communication

management helps develop confidence among stakeholders. Without a strong
emphasis on communication management, stakeholders might soon get enraged
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and respond badly to the project. Commissioning creates a significant level of stress
for everyone concerned. At all levels of the organisation, cost and time constraints
are intense, and the commissioning process must be permitted to go completely and
correctly, even when complications arise. Proper communication management instils
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confidence and trust in stakeholders in the commissioning team, demonstrating that

even when challenges emerge, the team is up to the task of delivering a quality product
on time.
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Management of Risks
Risk management is a critical factor to consider while planning and executing
your project’s commissioning phase. This encompasses more than just compiling a
risk register that is evaluated on a regular basis. Risk management must be integrated
(c
into your everyday operations and decision-making processes. All project choices must
strike a balance between scope, timing, and money in order to select the least risky
strategy possible.
Typically, a risk register is created early in the project’s design process. The
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risk registry contains all known hazards associated with the project. Monthly risk
assessments are conducted in which new risks are added, existing risks are appraised
for effect and severity, and risks that have developed into concerns are handled. When
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this occurs early in the project, commissioning hazards may be overlooked. Additionally,
a monthly evaluation is insufficient to address concerns. While a monthly review may
be suitable for discussing risks with project management, the project team should be
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constantly reviewing risks and developing mitigation techniques on a daily/hourly basis.
Each choice taken during commissioning must take into account the risk implications of
the prospective result.
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Due to the rapid burn rate of the project, any risks that materialise and create
delays might have a significant financial effect during commissioning. To complete the
project on schedule and within budget, risks must be evaluated to determine which
ones would jeopardise your success and what contingencies must be prepared for if
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they materialise. Contingency plans must be executed fast during commissioning,
and they must be established in advance to ensure they can be implemented swiftly if
anything go wrong during commissioning.
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The best course of action is to reduce risks as early in the project as possible.
Unfortunately, it is all too usual for risks to be deferred until later in the project, which
means that the commissioning team ends up with all the difficulties that were not
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addressed earlier. However, this is not the best technique for completing the project
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on time and under budget. Risks must be eliminated as soon as possible to prevent
expensive commissioning delays.
If automation is not adequately planned for in the project sequence, it poses

a substantial danger to the project. There are a plethora of little details that must be
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controlled in order for automation systems to work properly, and each detail must be
addressed early in the project to avoid the accumulation of many minor details during
commissioning. This is accomplished by the establishment of a properly executed
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IFAT at the project’s procurement stage. Prior to the arrival of automation cubicles on-
site, it is necessary to verify the operation of the plant’s process control systems (both
hardware and software). By excluding IFAT and relying only on factory verification, risk
is deferred to a later stage of the project. Integrating the PLC logic and automation
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cubicles for the first time on-site poses a risk, particularly if the code is created and
integrated for the first time during critical route on-site commissioning procedures.
Time for code debugging will therefore need to be budgeted into your commissioning
timeline, and there are few options for mitigating logic design issues this late in the
project. Rather than that, design deliverables should be scheduled to be ready prior to
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IFAT for factory testing and integration with hardware cubicles to minimise the possibility
of errors during on-site testing. This is an example of risk mitigation early in the project
to minimise negative repercussions upon commissioning, and each choice taken on the
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project should follow the same thinking process.
The commissioning team should be engaged early in the project to assist in

assessing commissioning risks and assisting the project team in developing risk
mitigation methods to guarantee commissioning is successful. Through the practise
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of beginning with the end in mind, an end-to-end project will guarantee that choices
made throughout the project mitigate risk and position your project for success at the
commissioning phase.

Management of the Scope

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The project’s scope is specified from the outset. The scope of work will constantly
vary as new difficulties are uncovered. Any modifications to the scope, timeline, or
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money must be managed contractually.
However, the commissioning period is not the time to make adjustments to the
work. Certain adjustments will be necessary to address concerns. However, scope
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creep is a danger during commissioning and must be continuously controlled to avoid
project delays.
The commissioning phase may be the first time the new systems are seen by on-
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site personnel. There are several stakeholders, and each will have a unique view or
preference for how the systems should appear and feel. However, this is not the time
to make these adjustments during the commissioning process. Only adjustments
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necessary to resolve contractual inadequacies may be introduced, and even then, the
time of implementation must be carefully considered. A few minor adjustments might
suddenly become major, resulting in delays in crucial route commissioning tasks.
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The most effective strategy to control scope creep during commissioning is to get
early and frequent feedback from the owner and operators throughout the project’s
earlier stages. The ideal opportunity to get operational feedback for HMI displays and
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system functioning is during IFAT testing. The IFAT configuration contains all functioning
HMIs, enabling operators to interact with and offer input to the displays’ functionality.
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Any thoughts or preferences expressed throughout the commissioning process
may be documented but retained for evaluation at a later point. These may be
examined after the project’s completion to see if they are warranted for implementation.
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Obtaining feedback early in the project ensures that the project team has a shared
understanding of the HMI interfaces and helps to minimise conflicting views and
preferences throughout commissioning. The commissioning team may next concentrate
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on testing and commissioning the systems to ensure they satisfy the project’s ISD.
Management of Quality
Commissioning is a specialist quality assurance procedure that verifies the design
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and installation by a third party. Prior to handover to the owner, the commissioning
phase verifies that the contract’s quality and technical criteria have been satisfied, and
the commissioning team plays a critical role in the project’s quality procedures.
However, the quality assurance/quality control procedure during construction is

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unique from the commissioning phase. Both quality procedures must remain distinct
and supervised by distinct organisations. This is critical to ensure that an independent
party verifies the design and implementation. It is inadvisable to have the design group
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or the construction group supervise commissioning, since this would imply that these
groups would be responsible for the quality and technical conformity of their own work.
This creates a conflict of interest that must be avoided by the establishment of a distinct
commissioning management procedure. This guarantees that the owner obtains a
system that complies with the contract.
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The quality of the construction is critical to the commissioning process’s success.

A deficient Quality Management System (QMS) during construction delays the

resolution of all installation concerns until the project’s commissioning phase. Instead,
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commissioning becomes the quality control procedure that should have occurred earlier
during building operations. Rather of testing the systems for minor flaws and putting
them into operation, commissioning becomes a quality control procedure for identifying
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construction defects, resulting in several starts and stops and delaying the project’s ISD.
During the building phase, a robust quality management system must be created.
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This involves on-site inspection of installed equipment as well as documentation of
the building process’s quality. Both field inspections and documentation review are
necessary. Paperwork verification is not a replacement for field inspections, and vice
versa; both must be integrated into a robust quality management system. Without a
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best-in-industry quality management system in place, any installation faults that should
have been recognised during construction inspections are postponed and found during
critical route on-site commissioning operations. Float built into the construction timeline
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may be utilised to rectify installation defects as they arise, rather than waiting until
commissioning to find them.
Without a robust quality management system in place, all risk associated with
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improperly installed equipment is transferred to the commissioning phase. When
difficulties are detected, resolving each one takes time, resulting in delays to the
project’s ISD.
Management of Resources
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The Commissioning Manager calculates the manpower needs for each phase of
commissioning in advance of the phase. This is done early in the project to allow for the
inclusion of personnel estimates in the project budget. It is critical to highlight that many
of the commissioning team responsibilities demand specific skill sets — these are not
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just warm bodies that walk in and “figure it out” and then go. It is just as critical to have
the appropriate skill sets on the commissioning team as it is to have the appropriate
number of individuals. Having said that, practical commissioning experience provides a
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fantastic chance for learning. Senior commissioning team members are always willing
to assist and advise more junior members in gaining the necessary experience to
ultimately become senior commissioning team members.
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As previously stated, commissioning labour expenses are a minor component of

the entire project budget. Costs must be budgeted within the project budget to ensure
that funds are accessible for further personnel. These monies must be safeguarded
against redistribution by organisations that exist prior to commissioning. You may not
believe that the project controls group would let this, but weirder things have occurred
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on projects when cost overruns arise.
Additionally, prior to commissioning, it is necessary to arrange for and obtain

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specialised test equipment or any other material. Certain specialist test equipment may
be rather expensive and take a long time to get, therefore these purchases must be
planned for in advance.
Certain test equipment may be necessary to ensure the plant’s continued

functioning. Coordination with the operation’s test equipment needs is advantageous, as
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it may be in everyone’s best interest to obtain operational equipment to be utilised during

commissioning in advance rather than purchasing the same test equipment twice.

Management of Procurement
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The acquisition of test equipment required for commissioning is rather easy. The
necessary test equipment is determined in advance and acquired with sufficient lead
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time to guarantee it arrives at the location on time.
Major plant equipment procurement is more crucial, and the commissioning team
may assist with this.
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Factory test requirements must be stated in each procurement contract during
the project’s procurement phase. Contracts for procurement outline the technical
specifications for each piece of equipment as well as the testing that must be performed
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at the factory prior to the equipment being sent to the job site. IFAT requirements for
complicated equipment, such as automation cubicles, may be extremely extensive,
and comprehensive criteria for this testing must be set in advance of contracting with
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suppliers. Thus, the equipment maker is aware of the amount of testing necessary and
may arrange time for thorough testing within their delivery timetable. You may therefore
verify that realistic procurement deadlines (including IFAT) are incorporated in the
project schedule based on this information.
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Unfortunately, IFAT is often bypassed in favour of verifying just the hardware
in the factory, allowing the software to be validated afterwards. For whatever reason,
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equipment delivery is delayed, and the project team determines that it is more vital to
have the cubicles delivered to the site for installation. This is a short-sighted aim, since
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all design and installation challenges associated with software and hardware integration
are delayed to the site. Any faults missed during IFAT must now be detected during
critical route on-site commissioning processes. Regardless of the urgency with which
the equipment must be transported to the location, a proper IFAT must be completed.
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Any apparent schedule savings gained by delivering the cubicles sooner are always
negated by additional delays experienced when troubleshooting the equipment on-site.
The project is ultimately delayed further due to the commissioning team’s inability to
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address all issues that were missed during IFAT.
Management of Integration
Integration management is critical to the success of a project, particularly when
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it comes to commissioning. However, the project management literature does not

adequately address this subject.
Integration management is defined as the process of initiating a project, which

includes the creation of project charters, project plans, and project schedules.
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While these are critical features of the project, what about the practical integration
management required to guarantee that all project components are accessible when
needed to meet the project’s commissioning schedule? Because only the front-end
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tasks of integration management are addressed, commissioning is often disregarded

and does not get the concentrated attention it needed to ensure the success of this
critical phase of the project. The implication seems to be that if a charter, plan, and
timeline are developed at the start of the project, everything will proceed according to
plan. And we are well aware that this is never the case - things change, new knowledge
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is uncovered, troubles arise, and equipment fails. How can we reframe the debate such
that integration management in relation to commissioning is given equal weight?

A skilled project manager understands that the process of establishing the project’s
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scope, schedule, and budget is just the first step; equally critical is the execution of the
plan to maintain the project within the project’s scope, schedule, and budget restrictions.
It is the project manager’s responsibility to guarantee that design managers, construction
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managers, and project controls managers are all operating in accordance with the plan
and that the commissioning team has access to all project components when necessary
to completely integrate the project. If this is not the case and components of the project’s
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scope or timeline get out of sync, the commissioning team will be unable to effectively
integrate the project. For example, prior to testing HVAC systems, the electrical
distribution system must be installed, since electricity is necessary to test the air handling
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units and HVAC controllers. The commissioning sequence will specify when the electricity
distribution system and HVAC system are needed. All project members must work in the
same order. However, if the design package for the power distribution system is delayed,
causing the electrical installation to be delayed, the commissioning team will be unable to
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continue with testing the HVAC system while waiting for the electrical distribution system.
Integration must be handled from the outset to ensure that the project’s commissioning
sequence adheres to the ISD.
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This is much too often disregarded. The project is excessively compartmentalised,
with the electrical crew establishing the power system operating independently of the
mechanical team constructing the HVAC system. The project manager must guarantee
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that all disciplines are aligned in order for the commissioning team to properly
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integrate the project at the conclusion. Additionally, the commissioning manager may
assist the project manager and project team in comprehending the sequence and
needs necessary for the project’s effective integration. The sooner this is performed
throughout the project, the more informed and prepared the project team will be to
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achieve the project’s deadlines and quality criteria.
Regrettably, existing project literature does not adequately address the integration
management and commissioning processes. Your project may seem to be proceeding
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smoothly — plans are being developed and equipment is being installed – until the
commissioning phase arrives and nothing works. If your project has not been managed
holistically, all the commissioning team can do at the conclusion is highlight concerns
and cause schedule delays. I’m not sure why commissioning does not receive the
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attention it deserves in project literature in order to ensure project success. That is my

best guess because:
●● The procedure of commissioning is not well understood.

●● At the start of a project, the commissioning process is not considered valuable and
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is thus excluded from the project plan.

●● Over the last few decades, projects have become less complex, and
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commissioning has become much easier.

●● The literature on projects is primarily geared toward simpler endeavours such as
building commissioning or basic stand-alone initiatives.
Certain projects must learn the importance of commissioning the hard way, by
treating it as an afterthought and discovering during or after commissioning that more
(c
work earlier in the project was necessary to execute commissioning more effectively
and provide a more cost-effective final result.

Today’s projects are just too complicated to ignore commissioning. Whereas previous
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projects relied on more separate systems and lacked automated controls, today’s
initiatives are far more interconnected and need meticulous planning and execution to
succeed. The Integrated Commissioning Method guarantees that the commissioning
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process is integrated throughout the project’s phases and that complex systems may be
effectively integrated into a single plant process at the project’s conclusion.
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5.3 Project audit
While project management audits are seldom welcomed and sometimes
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controversial, they provide an exceptional chance to learn from errors and save difficult
projects when conducted properly. Success, like with any other delicate management
process, is contingent upon preparation, execution, and communication. Continue
reading to find out more about it.
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What is the purpose of project auditing? Project auditing is a more formalised
kind of “project review” that is often used to determine the degree to which project
management criteria are being adhered to. Typically, audits are conducted by a
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designated audit department, the “Project Management Office,” an empowered Steering
Committee, or an independent auditor. The audit “entity” must be authorised to perform
the audit and make any necessary recommendations.
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Beyond practise verification, project audits serve as a “check and balance” to
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assess the quality, need, and value of a project, as well as to investigate the underlying
cause of known project difficulties and reported failures. On accommodate these
varying purposes, the audit scope may change according to the nature, purpose, and
timing of the audit. Verification audits are scheduled in advance, with the “subject
project” chosen based on predefined criteria. On the other side, quality assurance
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and issue response audits are begun in response to a troublesome project’s urgent
demands, in which case the project “selects itself.”
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Whatever the motivation, project audits should adhere to defined rules to

guarantee that they are planned effectively, carried out equitably, and that all published
findings and recommendations have the weight and respect they deserve. The audit is
a tool, and as with any tool, correct use is critical to achieving successful outcomes.
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Four Critical Steps in Project Audit Planning

Critical criteria will characterise a successful audit operation: alignment,
independence, transparency, and institutional support. Audits will never be welcomed,
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and audit professionals will always be viewed with suspicion. Can they actually be self-
sufficient? Why is it that they are always picking on me? How am I going to complete
my assignment with all of these interruptions? These are normal reactions to external
criticism, and they are very comprehensible. Negative audit findings, especially when
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they are part of a trend, may be detrimental to one’s career or even result in dismissal
in severe situations.
Audits, on the whole, are critical and legally required. However, just having
audit capabilities is insufficient. Audit personnel must be able to overcome fear,
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pessimism, and scepticism in order to achieve favourable outcomes. This can only
be accomplished by empowering auditors to perform their jobs and including project
managers in the audit process via training, communication, and feedback.

Audit Policies and Procedures for Activation

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What will it take for project auditing to become a routine component of your
approach to effective project management? To achieve anticipated benefits, each audit
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process phase, aspect, and outcome must be properly defined and communicated,
including the following:
●● Statement of the Auditing Mission. The audit organization’s mission statement
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should clearly explain the audit operation’s goals, objectives, authority, and limits,
as well as the types of audits that will be done.
●● Specification of Auditing Skills. A full description of the auditor’s abilities and
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experience, proving that the audit staff have appropriate competence in project
review, project standards, and, if necessary, technical knowledge of the project
subject area.
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●● Roles and Responsibilities of Stakeholders A complete description of all audit-
related tasks and responsibilities, applicable to both audit and project personnel
(to include project managers, team members, project sponsors, customers and
other stakeholders as needed).
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●● “Trigger” Audit Criteria. A comprehensive list of all criteria used to choose projects
for audit. You cannot audit every project - it would be prohibitively expensive and
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time consuming, undermining the audit process’s objective. Specific criteria should
be set to identify auditable projects based on their risk, complexity, internal value,
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cost, and the performing organization’s prior “record of success.”
●● Procedures for Audit Initiation. A detailed definition of the audit initiation processes,
including the method through which individual project managers are alerted of an
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upcoming audit and any associated preparation needs.

●● Procedures for Conducting Audits. A comprehensive statement of audit execution
processes, including the methodologies and procedures that will be used during
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the audit. Audit methodologies vary according on the kind and duration of the
audit, but may involve personal interviews with project workers, document
analysis, questionnaires, and other similar approaches.
●● Procedures for Audit Reporting. A comprehensive statement of audit reporting
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methods, including the manner and method through which audit findings will be
communicated and evaluated. To mitigate the project audit’s potentially dangerous
character, all participants should be fully informed of how findings will be
presented and utilised within the business.
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Procedures for Appealing an Audit. A detailed description of the processes to be

taken in order to appeal and/or dispute audit findings.
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5.3.1 Purpose of Project Audit

The following are the five primary goals of a project audit:
1. Ensure the product’s and service’s quality

(c
A project audit serves as a quality control measure. It examines the project’s life
cycle, analysing the outcomes at each step, from design through execution.

A project audit assesses the depth of the design ideas, including the study of
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alternative designs, during the evaluation of the design process.
Additionally, it is determined if the solution is suitable for pilot testing, and during
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the implementation review, the project audit evaluates and validates the product’s
implementation at each location where it is adopted.
The detection of flaws throughout the process assists in resolving issues and
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determining whether the project should proceed via a go/no-go judgement at each step.
2. Ensure the project’s management quality
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A project audit verifies that the project management adheres to the standards by
examining the project’s policies, processes, and procedures. It assesses the methods
used to assist in identifying gaps and implementing necessary changes.
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3. Determine the nature of the business risk
Project audits assist in identifying business elements that may provide hazards to
the budget, schedule, environment, and quality.
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After all, the organisation is invested in the project’s success.
By giving transparency and evaluating prices, time, and resources, the project audit
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determines the project’s viability in terms of affordability and performance.
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When it comes to budget management, use a review and equalisation strategy,
reviewing data that includes expected and actual expenditures, as well as costs
associated with fulfilling objectives.
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4. Enhance the performance of your projects

Monitoring the different stages of the project’s life cycle may help the project team
perform better.
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Additionally, the audit contributes to the improvement of budgeting and resource allocation.
Prioritizing, implementing remedial steps, and taking preventative measures may

all contribute to a successful project conclusion.
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The troubleshooting process enables the project team to give solutions and
reduces the likelihood of similar issues repeating in the future.
5. Acquire knowledge
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Through evaluations of project management competence, a project audit may

provide learning opportunities.
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Individuals and project teams may reflect on their own performance when they get
evaluations and comments.
5.3.2 Steps in Project Audit

(c
To reap the advantages of a project audit, each step, aspect, and consequence
of the audit process must be clearly defined and publicly acknowledged, including
the following:

●● Audit mission statement: this document should clearly explain the audit operation’s
Notes
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intentions, objectives, authority, and limitations, as well as the audit types that will
be done.
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●● Audit competency specification: a thorough description of the auditor’s abilities
and experience, demonstrating that the audit team have the necessary
competence to audit the project.
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●● Roles and obligations of the actors: a full description of all the roles and
responsibilities covered by the audit, both for the auditor and for the project team
- including the project manager, team members, project sponsors, clients, and any
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other stakeholder.
●● ‘Trigger’ audit criteria: a comprehensive list of all the criteria used to determine
which projects will be audited. It would be prohibitively expensive and time-
consuming, and would negate the audit process’s objective. Thus, particular
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criteria should be set to identify auditable projects based on their risk, complexity,
internal value, and prices, among other factors.
●● Processes for initiating the audit: a description of the procedures for initiating the
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audit, including the method through which individual project managers are notified
of an upcoming audit and the associated preparatory requirements.
●●
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Audit execution procedures: a set of audit processes that detail the auditing
techniques to be applied. This varies by audit type and duration, but may involve
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personal interviews with project workers, document checks, and questionnaires.
●● Audit reporting processes: a detailed description of the audit reporting methods,
including how and when the audit findings will be submitted and evaluated. To
mitigate the project audit’s potentially dangerous character, all participants should be
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fully informed of how the findings will be shared and utilised within the business.
●● Audit redress procedures: a detailed description of the steps to be followed in
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order to appeal and/or dispute the audit findings provided.

When one or more projects fail to complete an audit satisfactorily, this does not
always indicate that the project manager or team is at fault.
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Perhaps the project management standards are insufficiently scaled and

customised to the project’s or organization’s requirements?
Perhaps a lack of training or communication contributed to the unfavourable outcome?
In general, project audits are seldom well welcomed and often contentious, but
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when conducted properly, they present unparalleled chances for learning from errors
and identifying critical issues that would eventually result in the project’s failure.
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5.3.3 Types of Project Audit

The following are the different types of audits:
Normal Audit
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●● Referred to simply as ‘an audit’.

●● Element of monitoring and controlling

●● Also called Inspection since it is more or less a QC method. \

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Quality Audit
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●● This audit is part of the implementation procedure
●● It is a critical project review
●● It comes to light whether business processes are being adhered to or not.
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Risk Audit
●● These audits are part of the monitoring and controlling team.
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●● These enable complete process progress.
●● Audit enables the assessment of the use of the overall project risk management process
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Procurement Audit
●● This is an element of the closing procedure team.
●● A well compiled general comment removes all concerns and is an important
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element of procurements closure.
●● It sets a list of instructions that have been mastered. Also makes sure that any
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roadblocks for the succeeding tasks are identified. It also identifies positive results
and problems which justify their transfer to various other procurements.
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5.3.4 Project Audit: Report Contents
Audit Report Format

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1. Report’s title
The audit report’s title should assist the reader in identifying the report. It should
include the client’s name. The title establishes a distinction between the audit report and
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other reports.
2. The Addressee’s Name

Typically, the addressee refers to the individual who appoints the auditor. If a
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corporation engages an auditor, the auditor should be addressed to the shareholders.

The entire address of the recipient is needed by law. In the event of a statutory audit,
the addressee is the shareholders; in the case of a special audit, the addressee is the
Central Government.
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3. Introduction
The first paragraph should clarify that this is an opinion of the auditor on financial
statements that he has audited. Financial statements should be prepared for a certain
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time period.
4. Purpose
This section should provide factual information on the way in which the audit
examination was conducted. The audit investigation should include a review of the
(c
company’s financial statements, including the profit and loss account, balance sheet,
and cash flow statement. The examination should be conducted in accordance with
applicable legislation. No examination task should be omitted or limited by the auditor.

5. Personal opinion
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The auditor’s view on the books of accounts and financial statements he examines
is unbiased and based on the facts. The auditor is required to express his view in the
in
following manner:
Whether the financial statements are mathematically accurate and match the data
recorded in the books of accounts.
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If an unqualified opinion is issued, if the financial statements offer an accurate and
fair representation of the condition of affairs and operating performance.
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If a qualified opinion is issued and the Balance Sheet and Profit and Loss account
do not offer a genuine and fair picture, the reasons for what and where is incorrect must
be stated.
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6. Signed
The signature section should contain the auditor’s hand signature.
The auditor’s personal name and signature should be included. If the auditor is a
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firm, both a personal and business signature should be provided.
7. Signature Location
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This should contain the auditor’s or auditing firm’s location, which is often their city.
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8. Report Date
This part should provide the date on which the audit work was completed.
The Audit Report’s Contents

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According to Section 143 of the Companies Act, the auditor’s report must
additionally include the following information:
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a. if he has sought and got all information and explanations essential for the purpose of
his audit, and if not, the specifics of such information and its impact on the financial
statements;
b. if, in his judgement, the firm maintained appropriate books of account as required
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by law, and whether sufficient returns adequate for the purposes of his audit were
received from branches not visited by him;
c. if the report on the accounts of any branch office of the firm audited under sub-
section (8) was given to him and how he dealt with it in drafting his report;
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d. if the Balance Sheet and Profit and Loss account discussed in the report coincide
with the company’s books of accounts and tax filings;
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e. if the financial statements, in his judgement, conform with the Accounting Standards;
f. the auditors’ observations or comments on financial transactions or other problems
that have a detrimental influence on the company’s operation;
g. if any director is ineligible to be nominated as a director under section 164(2);
(c
h. any qualifier, reservation, or unfavourable comment made in connection with the

keeping of accounts and other related topics;

i. if the firm has a suitable internal financial control system in place and whether such
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controls are working effectively;
j. any other things indicated.
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The Different Types of Audit Reports
The audit report may be classified into the following categories:
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1. Unqualified or Clean Report
The auditor will issue a clean or unqualified report if the auditor is satisfied that the
financial statements, including the balance sheet, profit and loss account, and cash flow
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statement, present a true and fair view and are prepared in accordance with accounting
principles and statutory requirements.
2. Appropriate Report
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In a qualified report, the auditor expresses his or her belief that the financial
statements as a whole are not honestly reported. The following are the grounds for
providing a Qualified Report:
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i. Due to a lack of conformance with accounting principles and legislative
requirements, the books of accounts, profit and loss account, and balance
sheet do not accurately reflect the condition of affairs and results of operations.
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ii. The auditor is unable to establish the existence and value of certain assets.
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iii. The auditor does not get the information required.
iv. Proper accounting records are not kept in accordance with the law.
v. A portion of an auditor’s examination performed by another auditor.
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3. Unfavorable or Negative Reporting

When the auditor has sufficient grounds to believe that the whole set of accounts
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and financial statements do not reflect a truthful and fair picture of the financial position
and results of operations, an unfavourable or negative opinion will be issued. The
following reasons will be offered for the bad or negative report
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●● When an auditor is dissatisfied with the financial statements’ accuracy and

fairness,
●● Noncompliance with Generally Accepted Accounting Principles,
●● Financial statement errors, inconsistencies, and substantial misrepresentation
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●● Omission of a key fact.

4. Acknowledgement Report
The auditor may disclaim or deny opinion on the accounts, Profit and Loss Account
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and the Balance Sheet, when he does not have adequate information to base his view.
The auditor should provide disclaimer information in the scope and opinion paragraphs.
This may occur for the following reasons:
The auditor was unable to assemble sufficient information to form an opinion.

(c
The audit examination is insufficient to form an opinion.
There are some important un-determined item in audit examination.

5.4 Project Final Report, Project Closure

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While completing the ultimate aim of a project might be fulfilling, the project does
not technically finish until the final documentation is submitted and authorised. This last
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documentation is referred to as a closure report, and it is critical since it often contains
critical information for top management and stakeholders. You may quickly produce
these records and finish your project with the correct tools. We will examine what a
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project closure report is, what information should be included in these papers, and how
to make your own report in this post.
What is a closing report for a project?
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A project closure report is the last deliverable produced at the conclusion of a
project and it is used to determine the overall success of the endeavour. The project
manager maintains detailed records of each step of the project and enables both
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themselves and senior management to identify which aspects of the project were
successful and which were not. Additionally, it enables the organisation to examine
areas for future improvement and best practises for future projects.
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These reports demonstrate the team’s dedication and how they achieved their
respective goals. They may also incorporate input from stakeholders and project
team members. The importance of project closing reports is that they may be used
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to terminate contracts, transfer project resources to the rest of the firm, convey final
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information to stakeholders, and organise the operational transition.
What should a project closing report contain?

While the length and substance of project closing reports vary according to the
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size and complexity of the project, they often include some of the same fundamental
information. The following is a list of often mentioned details in project closing reports:
●● The project’s first criteria, which included stakeholder demands, a budget, and
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a schedule.
●● Demonstration that objectives were fulfilled
●● Evidence that customers got their deliveries
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●● Invoices issued by suppliers, stakeholders, or other third parties

●● Records of leftover resources may be released or transferred.
●● Comprehensive performance evaluations for each step of the project
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●● Senior management, team members, and stakeholders provided feedback.

●● A dedicated folder for archiving all project data and communications
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●● A request for approval of the project’s closure
How to Write a Closure Report for a Project

The following procedures will assist you in creating a closing report for your next project:
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1. Give the document a title.

At the beginning of the document, a project closing report will often include the
project’s name, the team’s name or the names of its individual members, the project
manager’s name, the executive sponsors’ names, and the current date. This information
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simplifies the report’s organisation and assists senior management or stakeholders in
identifying the project’s details. By identifying the relevant team or its members, management
may also reach them more easily in the event of further inquiries or clarifications
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2. Create a high-level summary of the project.
A project summary often contains information about the project’s aim, the
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processes that were necessary, and how those procedures were carried out.
Additionally, it offers a concise overview of the problem or opportunity addressed, the
project’s goals, and success measures. Additionally, your overview might contain a
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summary statement at the conclusion that summarises the contents of the report.
3. Describe the successes, outcomes, and outcomes of the project.

You may describe in a section after the overview whatever key performance
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indicators (KPIs) the team used to determine success, the outcome objectives, and
any accomplishments associated with meeting those targets. Consider compiling a
table of result objectives that details the objective, the estimated completion date, and
the actual completion date. This section evaluates the whole project in terms of these
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success criteria and discusses the factors that contributed to each good or poor result.
4. Describe the scope of the project
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The scope of a project details the exact objectives, deliverables, product or service
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characteristics, tasks, and timeframes. Additionally, it details everything that went into
finishing the project from start to finish. You may assess and compare the scope to
the actual timetable and cost of the project to identify deviations in deadlines, costs,
or resources. This section of the report delves more into the specifics of the project
mentioned in the overview statement.
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5. Conduct a performance study of the project

The performance analysis section of the report is critical since it builds on the
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scope and gives information on the budget, timetable, goals, and success of the project.
The following are the three primary parts that you might add in this section of the report:
Goals and objective performance: This section discusses the project’s original
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aims, how many of those objectives were met, and which objectives were altered
throughout the course of the project.
Your section discusses your key performance indicators, performance metrics, and
how you determined success for this particular project. Justify how, when, and whether
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the project met its performance objectives.
Schedule and budget performance: In this part, you may discuss the project’s
schedule and budget constraints and if the team adhered to them. If the team did not
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adhere to those constraints, explain why.
6. Emphasize the difficulties and dangers that have arisen

This section discusses the obstacles and dangers encountered during the project’s
duration and how these obstacles impacted other aspects of the project, such as
(c
the budget and schedule. Additionally, you might include hazards such as working
conditions or financial constraints. This might be beneficial for future reference as you
plan other initiatives.

7. Include lessons learned, ideas for future projects, and comments from the project
Notes
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manager.
Keeping track of the obstacles the team overcome and the lessons learnt
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throughout the project might be beneficial for future reference. Teams working on future
projects might use this data to prevent repeating the same mistakes. Additionally, the
team may have gleaned insights from top management or stakeholders, and sharing
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this knowledge with other teams might be beneficial.
Additionally, you may provide future ideas for establishing or finishing projects
based on your experiences with the project being reported on. It might be beneficial for
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the team, project manager, and stakeholders to provide feedback on the final product or
delivery. These proposals have the potential to significantly enhance the completion and
reception of additional initiatives. Recommendations may include suggested timelines,
comments on resource allocation, or budget revisions for comparable projects.
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8. Prepare a financial overview
The financial summary section of the project closing report includes information on
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the cost of each resource, ongoing expenses, the estimated budget, and actual funds
spent. To increase readability and properly arrange the financial information for the
project, you may style this part as two tables split by resource costs and continuing
expenses. Additionally, the bottom of the table might contain a comments section
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to explain any cost differences or additional justifications for asking extra money if
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necessary to finish the project.
9. Describe the operation’s transfer.

You may define operations transfer by listing current activities and describing how
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they will be transferred to operations, including specifying operational responsibilities.

List each task and the short information associated with it, as well as the operations
role, the name of the person performing the position, and the date of the transfer. This
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section contains the papers necessary to create official records.
10. Obtain consent for the project’s conclusion.

The last stage in developing a project closure report is asking closure permission,
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which allows senior management and stakeholders to officially terminate the project.
Additionally, you may style this area as a table with sections, complete with labels
for each position, signature spaces, and the current date. This component is critical
because it verifies that all project management procedures have been completed and
that all stakeholders have approved the final output.
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5.4.1 Project Closure: Final Process Group

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Due to the regular progression of workflow, the conclusion of a project might create
almost as many details to attend to as the planning or launching stages. Even when
suitable execution and monitoring methods have been implemented, several jobs need
to be accomplished as the project nears completion.
While many senior project managers are simultaneously launching new projects
(c
and ending existing ones, the process of achieving a successful completion may
sometimes seem like juggling cats. To help project managers in successfully concluding

projects, the Project Management Institute’s book, A Guide to the Project Management
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Body of Knowledge (PMBOK® Guide), has an entire process group dedicated to the
skills and knowledge required for good finishes.
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The closing process group is responsible for the final procedures necessary
to complete a project and provide final deliverables and reports to stakeholders.
Veteran project managers understand that completing a project successfully and with
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all the details in place can leave a lasting impression on a client, who may then refer
services to others or return for another project, so it is critical to ensure that all contract
obligations have been met during this phase.
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Additionally, it is critical to arrange and present any documentation pertaining to
modification orders and other associated facts together with any additional reports
about the final product. When concluding a project, it is critical to maintain an accurate
record of any method modifications that may be beneficial in future initiatives.
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Maintaining accurate personal records for projects may assist in identifying areas where
further training or professional mentorship might improve already excellent project
management abilities.
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The PMBOK® Guide categorises the closure process into two distinct phases that
project managers must address when they finish down projects:
Close project: r
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Due to the regular progression of workflow, the conclusion of a project may create
almost as many details to attend to as the planning or launching stages. Even when
effective execution and monitoring systems are in place, several jobs remain to be
accomplished as the project nears completion.
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Close procurement:
While many top project managers are simultaneously launching new projects and
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ending existing ones, the process of achieving a solid completion may sometimes
seem like juggling cats. To help project managers in successfully concluding projects,
the Project Management Institute’s book, A Guide to the Project Management Body of
Knowledge (PMBOK® Guide), offers an entire process group dedicated to the skills and
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knowledge necessary for good finishes.
The closing process group is made up of all the procedures required to complete a
project and provide final goods and reports to stakeholders. Veteran project managers
understand that ending strong with all details in place may make a lasting impression
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on a customer who may suggest services to others or return for future project, thus it is
critical to ensure that all contract requirements are satisfied throughout this phase.
Additionally, it is critical that any documentation pertaining to change orders and

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other pertinent facts be structured and supplied together with any other final product
reports. When concluding a project, it is critical to maintain an accurate record of any
method modifications that may be beneficial in future initiatives. Maintaining accurate
personal records on projects may assist in identifying areas where further training or
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professional mentorship might improve already excellent project management abilities.

What is the purpose?

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Closure actions ensure that project documentation is recorded, archived in
organisational process assets, final payments are made, resources are released,
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and the project is completed. Whether a project is a success or a disaster, it teaches
the company valuable lessons. Thus, even after a project is over, the documentation
created throughout the course of the project will be beneficial for effectively completing
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subsequent initiatives.
Consider the following closing process group actions to ensure a successful project
conclusion. Now, let us go through them one by one.
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Which eight stages are involved?
Finalization of the project
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Step #1: verify that all work has been completed in accordance with the
specifications.
At the conclusion of the project, all deliverables must have been completed and
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handed to the client. Additionally, you should get the customer’s official acceptance of
the finished job.
Step #2: Complete the procurement process

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Given that the project is nearing completion, you should finish any outstanding
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payments to suppliers or partners. Additionally, the procurement process is finished.
Step #3: Obtain official acceptance
The customer’s formal acceptance of the project and its deliverables is obtained.
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Typically, the client submits a written document, which may be an email or a signed off
document, stating that the project is complete and they accept the project’s deliverables.
Step #4: of the project closure process is to complete the final performance reports.
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The project’s ultimate performance is computed and reported. These include cost
and schedule performance, as well as quality performance. For example, whether the
project was finished on time or was unable to be completed, how much did the project
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surpass the budgeted amount?
Step #5 in the project closure process is to index and archive documents.
The papers that have been gathered have been completed. The final versions
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of the project management plans and any other pertinent papers are stored in the
company’s records.
Step #6 in the project closure process is to update the lessons learned.

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All parties contribute and compile lessons learned. Documentation of lessons learnt
is preserved in the company’s organisational process assets.
Step #7: Distribute the final product

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Once the project is complete, the ultimate product is turned over to the end client
for usage. A predefined duration of support or some paperwork outlining how to use or
operate the product may be required during the handover.

Step #8: Make the materials available

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After the project is successfully finished, all resource assignments are closed,
lessons learned inputs from the project resources are gathered, and then these
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resources are released.
As you can see, project closing is just as critical as the other stages, and you must
include these actions into your future projects to ensure success.
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5.4.2 Project Closure Checklist
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The process of closing and concluding a project is referred to as project closure. It
encompasses all tasks that contribute to the resolution of outstanding problems and the
archiving of project papers and materials.
If you’ve never completed a formal project closure, you may be wondering why it’s
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necessary. Isn’t the project complete? Isn’t it possible to just clean our desks and go on?
You could believe so, yet there are many compelling reasons to properly conclude
a project:
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●● Validate: You fulfilled the project’s objectives, addressed all difficulties, and
obtained all necessary clearances to officially conclude the project.
●● r
Educate yourself: Ensure that you do not make the same errors on future projects.
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●● Allow yourself to evolve: Permit yourself to develop your procedures over time.
●● Measure: Ensure that sufficient reporting is in place so that if a problem does exist,
it is straightforward to pinpoint the source of the failure.
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●● Notify all stakeholders if you are no longer working on the project or if the project’s
duties have been transferred to a new owner.
While project closure is often performed at the conclusion of a project, it may also
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occur at the conclusion of any phase of the project. For example, if you’re working on a
website, you’re likely to encounter four phases:
●● Initiation
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●● Planning
●● Execution
●● Finalization of the project
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Rather than waiting until the site is fully operational to conduct a formal closure,
you may choose to complete each phase of the project before proceeding to the next.
Consider it a “mini” project closing, sometimes referred to as a phase review or handoff.
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However, regardless of the date, you’ll apply the same closure checklist to verify
that everything is correctly closed.
What happens if you fail to complete your assignment on time?
Three possibilities often occur when a project is not properly concluded. Perhaps
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you’ve already encountered one of them.
Scenario 1: The game of finger pointing

Even when a project is completed, issues arise. If an inquiry is necessary, thorough

Notes
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documentation is critical.
Rather of assuming responsibility for any difficulties or errors, you’ll have evidence
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of everything that occurred. This comprises management and client approvals
throughout the project, as well as details about why modifications were made and who
requested them.
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When a project is officially concluded, auditing it becomes simple. And it’s prudent
insurance for everyone, but particularly for your agency’s customer retention plan.
Keeping customers pleased is much simpler when each request is recorded.
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Scenario 2: The never-ending project
Client hand-off is a critical component of project closing. That is when the customer
assumes responsibility for continuing maintenance and operations.
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And, yeah, you’d assume that signals the completion of the project. However, if
you have not properly ended the project, others may think you retain control. They may
continue to contact you if a problem arises.
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By conducting an effective handoff and obtaining sign-off from clients and
stakeholders, everyone knows that the project has concluded and that the project
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management team is no longer liable for outcomes.
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Scenario 3: The orphan project
Assume you do not do a formal hand-off. The customer lacks the necessary
training and equipment to assume control of the project. You just hand over the keys
and wave goodbye.
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When this occurs, the project does not get the attention it requires. It is not
maintained correctly. Customers do not get the assistance they need.
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It is, in essence, orphaned.
And, tragically, it will almost certainly be discontinued. A project cannot prosper

without a strong sense of ownership. To prevent any of these circumstances, let’s take a
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look at a straightforward step-by-step approach for project closure.
The seven-step checklist for project closing

It is your responsibility as a project manager to guarantee that all goals have been
completed and the project is ready to be concluded. Once that is established, you must
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complete the following seven-step checklist:
Checklist for project closing in seven easy steps

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●● Transfer of formal authority

●● Contracts and other papers should be terminated.
●● Examine the lessons acquired.
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●● Assess customer satisfaction

●● Prepare a report on the project’s conclusion

●● Obtain approvals from stakeholders

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●● Archive the undertaking
1. Handover in a formal manner
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The objective is to transfer ownership to the customer.
The first step toward project closure is to provide the customer with all project
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deliverables. As previously said, you should not just give them the keys.
Train the new owners to operate and maintain the product or they will not get the
desired outcomes. Provide them with some project management best practises and
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strategies to incorporate them into their current process.
Following the hand-off, check with the customer that you delivered on time:
●● Users must be trained and all their inquiries must be answered.
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●● Inform the customer of any unsolved concerns or difficulties they may encounter.
●● Resolve any difficulties that occur during the hand-off.
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●● Obtain client approval that all deliverables have been completed and handed over.
2. Terminate all contracts and associated documents
The objective is to complete and conclude all project documentation, accounts,
and contracts. r
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Each project is accompanied with a plethora of paperwork. Several were selected
to kick-start the project. Others have been updated during the course of the project.
Prior to completing the assignment, you must examine these papers. Is the data
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current? Have you maintained a consistent record of problems and milestones? Have
you provided an explanation for discrepancies between predicted and actual results?
Several of the project papers you’ll need to evaluate include the following:
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●● A log of all the assumptions and restrictions that inform the specifications,
estimates, timeline, and hazards.
●● Needs document - A list of the project’s requirements. Include proof that you
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followed through on each item on the list.

●● Estimation basis - A comparison of your time, cost, and resource estimations
to the actual outcomes.
●● Change log - A centralised repository for all change requests received over
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the course of the project.

●● Issue log - A record of all issues that occurred throughout the course of the
project and their resolution.
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●● Milestone list - A summary of the project’s milestones, along with their

associated completion dates.
●● Project communication - A record of all emails, meetings, and other
communications pertaining to the project.
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●● Measurements of quality control - Tests and evaluations that demonstrate

conformance to the project’s quality criteria.

●● Quality reports - A summary of quality assurance concerns that arose

Notes
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throughout the course of the project, along with suggestions for improvement.
●● Risk registry - A list of risks that you’ve discovered or encountered throughout
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the course of the project.
●● Risk report - A record of how hazards were managed, along with their current status.
Close off your contracts and project accounts now. Ascertain that all contractors
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have been compensated for their services and that no bills remain unpaid.
Tasklist:
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●● Revise and complete project documentation.
●● Contracts and project accounts should be closed.
●● Resolve any unpaid debts.
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3. Go through the lessons learnt.
The objective is to elicit input from everyone who contributed to the project.
It’s natural to get overjoyed with the completion of the project and oppose a post-
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mortem meeting. However, it is critical to schedule time to analyse the project and
document lessons gained.
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It’s beneficial for team leaders to have a project planning overview, such as the
one included in Teamwork. This enables you to see in detail where and when your
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resources (people) are assigned, depending on projected time.
Additionally, you may check the total number of hours allotted to a certain time
period. This may be done for an individual, a project, or even an organisation.
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Following that, you’ll want to go into a few key topics. To begin, everything that
contributed to the achievement is acceptable. Second, what did and did not work. A few
pertinent questions:
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●● What factors led to the success of the project?

●● What went according to plan?
●● What concerns need attention?
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●● Did you have the necessary resources and support?

●● How can we enhance our workflow?
This data assists you in identifying areas where your process and procedures
might be enhanced. More significantly, it prevents you from repeating previous errors.
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What to include in your retro meeting?
Begin by conducting a survey. Then schedule a meeting. This two-step process

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may seem excessive at first, but it will ultimately save everyone time.
Consider previous brainstorming sessions you’ve attended. Many individuals draw

a blank when under duress to come up with something clever.
Mentally reviewing the project and recalling fixed concerns takes time (or not).
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By delivering a survey a few days before to your meeting, you’ll offer your team an
opportunity to provide meaningful responses.

When you finally meet, you’ll have the discussion points prepared. The meeting
Notes
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should be used for conversation, not brainstorming.
Additionally, take impeccable meeting notes. Ascertain that there is a central
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repository for project notes, such as Teamwork’s Spaces. Our hub serves as the de facto
repository for any information relating to a project or procedure that you’ve executed.
Avoid losing critical notes or papers as a result of constant shared files floating about.
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Tasklist:
●● Conduct a survey to compile a list of lessons learnt. Include the questions
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outlined above or create your own.
●● Distribute it to all individuals who contributed to the project.
●● Keep track of the findings.
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●● Convene a meeting to discuss the lessons acquired.
●● The things on your list should be discussed. Make them a priority. Include
annotations, explanations, and suggestions for improvement.
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4. Obtain client satisfaction data
The objective is to elicit input from the customer.
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As part of your lessons learned, it might be beneficial to get customer feedback in
order to address the following two questions:
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●● Are the project’s deliverables up to par?
●● How well did the procedures perform in comparison to expectations?
A brief survey, such as this one from PM Foundations, will provide you with the
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necessary information.
An example of a project closing survey from the PM fundamentals

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Notes
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ve
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When constructing a survey, keep it brief enough to complete in five minutes or less.
Additionally, provide a spot for comments on each question to elicit more useful input.
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Tasklist:
●● Conduct a customer satisfaction survey.

●● Distribute it to key personnel inside the customer company.
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●● Take notes on the replies.

●● Include the survey and its findings in the project’s materials.
5. Compile a report on the project’s completion.
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Objective: Provide a summary of the project to top management so they may

assess its effect and make procedural improvements for future initiatives.
The project closing report is the last piece of paperwork that must be prepared for
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each project. This report summarises the whole project, including its goals and whether
or not they were reached, as well as the project’s timeframe, risks, and results.
What information is included in a project closing report?

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●● The following is a synopsis of the project: Was it able to live up to the

expectations set when the project was created?

●● Objectives of the scope: Demonstrate that all completion requirements

Notes
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were satisfied.
●● Provide a brief overview of how quality was determined. This should contain
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proof that milestones and delivery deadlines were fulfilled, as well as
justifications for any areas where your original expectations were not realised.
●● Include predicted cost ranges, actual expenses, and justifications for any deviations.
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●● Objectives for the schedule: Include an analysis of whether the results fulfilled
the project’s objectives. If your objectives have not been reached, how far
behind are you?
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●● How the project met business requirements: Were these requirements
mentioned in the business plan?
●● Risks or challenges encountered: What arose unexpectedly throughout the
course of the project and how it was handled.
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What have you learnt and what would you suggest for improvement?
Tasklist:
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●● Write your project closing report using the template provided above.
●● Present it to senior management and other stakeholders who will be
responsible for signing off on the project.
6. Obtain approval for the project.
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The objective is to get signatures from all stakeholders and to legally conclude
the project.
Senior management and key stakeholders should conduct a review of the project
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closing report to ensure that all goals were fulfilled. Specifically:
●● Criteria for success

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●● Criteria de qualité
●● Prerequisites for approval
●● Who approved the project?
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After obtaining all necessary permits, you may officially conclude the project.
Ascertain that your team has the necessary rights to close, complete, or approve
projects inside your platform.
Don’t forget to declare the completion of the project. Notify all stakeholders, team
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members, partners, contractors, and suppliers who contributed to the project. Notify
them that they have been freed to work on other projects or that their resources have
been reallocated.
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Nota bene: Ensure that all approvals are documented. It is unlikely that this will be
required, but if a problem occurs, you may want documentation that everyone signed
off on the project prior to its completion. Consider signatures on deliverables, delivery
receipts, and meeting transcripts.
Tasklist:
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●● Maintain contact with management and stakeholders until the project has
their approval.

●● Keep track of all approvals.

Notes
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●● Send an email notifying the completion of the project.
●● Celebrate!
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Step 7. Make a backup copy of the project.
The objective is to remove the project from your workflow while retaining its data in
case you use it in the future.
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Archive the project in your project management software. All papers, contracts, and
agreements should be indexed and filed. All of these should be included in the project archive.
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Having access to your archived work is critical if you need to return to them in the
future. We make it simple to access all of your projects, whether they are live, closed, or
archived, using Teamwork.
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Using the Teamwork Tasklist to View Archived Projects:
●● Arrange for the project to be archived in your project management software.

●● All papers, contracts, and agreements should be indexed and filled out.
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●● Any lingering project accounts should be closed.
●● Reassign staff, resources, and equipment, if you haven’t already.
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Acclimating to the project’s closing phase
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As you can see, there is a great deal that goes into project closing. It may even
seem overpowering or superfluous. However, effective project management involves a
formal project completion. Period.
It provides you with a centralised, structured location to refer to when you have queries
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regarding the project. Additionally, it assists you in optimising operations over time.
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Case Study
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Global Green Books Publishing Projects That Are Coming to an End
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Global Green Books Publishing is growing at a rapid pace. Customized eBooks is
continuing to increase in popularity, and they now have a wealth of knowledge from the
eBook projects they performed for their first eBook client, a local institution, as well as
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for their newer customers.
However, as new projects begin to encounter difficulties, several of the project

managers in the project management office and their manager, Samantha, were
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discussing how it feels like déjà vu all over again – that some of the same issues they
believed they had resolved while collaborating with supervisors and their teams on
previous projects continue to surface.
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The eBook projects are running well, and clients are pleased with the outcome.
Repeat clients are placing orders, while new customers are flocking to Global Green
Books for eBook publishing services.
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However, some issues continue to surface. One of the project managers compared
resolving these issues to playing the popular arcade game “Whack-a-Mole” – as soon as
you eliminate one, another appears. It seems to be an endless effort to resolve some of
these issues, particularly when they appear to have been resolved on a previous project.
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Samantha’s project management manual said that after projects were done,
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supervisors completed monitoring all real effort and expenditures and sent the
information over to cost accounting for invoicing reasons. Samantha and her colleagues
changed the PM handbook to include a copy of this material in the project management
office. They’ve discovered that this information is sometimes beneficial as historical
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data to assist in developing estimates for new projects when fresh eBook requests
come in from their clients.
The PMO team was debating whether to update the PM handbook and conduct a brief
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training session for supervisors on how to enhance their project completion procedures.
They wanted to modify their normal job template to include the following additions:
●● a scheduled job for supervisors to wrap down the project,

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●● a task for the team to write a lessons learned report, and

●● an optional task for the team to have a closing party to commemorate the
project’s completion.
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They believed it was critical for the PMO to begin documenting lessons learned.
These might be compiled by supervisors after the project’s conclusion, or they could be
used to urge supervisors to arrange, schedule, and conduct a project closure meeting
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with their team members to express gratitude and gather lessons learned from the
whole team. Additionally, they may solicit comments or engagement from appropriate
Customer Service Representatives and account managers.
The PMO obtained management clearance for these adjustments, revised the
project management handbook, and conducted a short supervisor training. Supervisors
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approved of the proposals, particularly since the close-out meeting or team celebration
would allow them to acknowledge and award team members, as well as inspire teams

for future projects. With time, the PMO began compiling these lessons acquired from
Notes
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several initiatives. As they gathered lessons gained from various initiatives, the PMO
team began analysing the data from the lessons acquired across projects. They
analysed the frequency with which six distinct types of difficulties were experienced on
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the projects. Their findings are shown in the histogram below.
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According to feedback from supervisors’ leadership training, they believed that the
primary cause of project delays and additional costs was part-time student employees
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calling in sick at the last minute, leaving planned work unfinished until another resource
could be assigned to it, which was frequently difficult due to a scarcity of slack
resources. This delayed activities and even prevented projects from being completed
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on schedule.
Their study showed that this was not the case. Indeed, just three of the issues
encountered on projects were the result of unforeseen absences. The PMO team
noticed three critical issues in their Pareto analysis, which they underlined in red.
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Delays in acquiring requisite reprint permits from specific publishers were the most
common source of issues, accounting for 34% of issues experienced by eBook
projects. The second most often occurring issue was production personnel phoning in
ill, accounting for 28% of all issues. Customer modifications, which often resulted in
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rework and delays, accounted for another 20% of the issues.
The PMO now understood the primary reasons for eBook project delays and could
offer suggestions to alleviate each of these difficulties.
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Provide your perspective on the following components of the case study:
a) What are some of the reasons why project closure is critical? What can project
managers achieve over the course of a project’s closure?
b) Why should lessons learnt be captured in projects? What are some methods through
(c
which members of the project team, project managers, and the company might apply
lessons learned?

c) What are the advantages of commemorating project accomplishments? Do you feel

Notes
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that recognition and prizes may act as motivators for employees?
d) Define a Pareto chart. Why would you want to use this strategy for identifying
in
and prioritising issue areas? Are there any restrictions on how a Pareto analysis’s
conclusions should be interpreted?
e) If you were the PMO reviewing this Pareto analysis, what suggestions would you
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make to address the three critical areas of concern in eBook projects indicated by
this research?
Summary
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●● Projects are transient organisations, regardless of whether they have transient or
permanent progeny. For example, a five-year, labour-intensive construction project
including the building of a suspension bridge spanning a large river connecting
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twin cities is intended to be permanent. On the other hand, a three-month
knowledge-intensive software project may result in a database application that will
be outdated in less than a year.
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●● Terminating a project is one of the most difficult choices that a project management
team and its control board must make. It frustrates stakeholders who truly thought
– and, in the majority of situations, continue to think – that the project will provide
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the benefits they anticipated, or continue to expect. The project manager and his or
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her team members, who are also significant stakeholders in the project, would feel
personally defeated. They will also be fearful of the bad implications for their jobs; as
a result, their motivation and productivity will suffer dramatically.
●● Natural termination of a project refers to those that come to an end because the
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project’s objectives have been met. Natural termination occurs when a project
is successfully completed. Unnatural termination is just the contrary. Unnatural
termination occurs when the organisation that supported the project or the location
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of the project decides that they are no longer prepared to devote the necessary
resources, time, and money to finish the project.
●● The termination (or close-out) of a project is the last step in project management.
It happens after the completion of the implementation phase. Acceptance testing
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has been completed, and the customer has received the project deliverables.
The project team has been dissolved, and any remaining resources have been
properly disposed of. All outstanding invoices have been paid, and final invoices
for completed work have been provided. The close-out stage’s primary objective is
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to assess your performance and to learn lessons for the future.

●● The last step of a project’s lifecycle is called closure or termination. This phase
begins after all project deliverables specified in the scope statement have
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been completed. Despite their success throughout the planning and execution
phases, a lot of project managers encounter issues during the close phase.
This is because successfully completing a project involves both technical and
interpersonal abilities. The biggest difficulty for the project manager at termination
is demonstrating compassion and empathy for a team that may be demotivated as
(c
the project nears completion.

●● The project life cycle is often divided into four phases: start, development,
Notes
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implementation, and closure (Meredith and Mantel, 2000; Turner, 1999). The
literature on project management often focuses on the early stages and the
accompanying general project management competencies, such as planning,
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scheduling, budgeting, resource management, and motivation.
●● When a project fails, the last thing the majority of people want to do is investigate
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why. Failure is unpleasant. However, whether it is pride or future deadlines that
force you to close your eyes, disregarding unsuccessful endeavours as a source
of future information is a grave error.
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●● Effective communication is critical in all organisations when delegating a job
and its related obligations to another individual or work team. This might occur
between shift changes, between shift and day employees, or during a shift
between distinct organisational roles, for example, operations and maintenance.
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●● Commissioning is not a substantial cost component of the project budget.
Commissioning expenses are often less than 5% of the total project expenditure,
typically between 2% and 3%. However, the expense of commissioning delays is
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enormous. This is why the commissioning phase of your project must be well prepared.
●● The building phase of a project consumes the lion’s share of the money. There are
vast workforces engaged, equipment is delivered to the building site throughout
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the process, and construction operations might last for years.
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●● Risk management is a critical factor to consider while planning and executing your
project’s commissioning phase. This encompasses more than just compiling a risk
register that is evaluated on a regular basis. Risk management must be integrated
into your everyday operations and decision-making processes. All project choices
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must strike a balance between scope, timing, and money in order to select the
least risky strategy possible.
●● Project auditing is a more formalised kind of “project review” that is often used to
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determine the degree to which project management criteria are being adhered
to. Typically, audits are conducted by a designated audit department, the “Project
Management Office,” an empowered Steering Committee, or an independent
auditor. The audit “entity” must be authorised to perform the audit and make any
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necessary recommendations.
●● A project closure report is the last deliverable produced at the conclusion of a
project and it is used to determine the overall success of the endeavour. The project
manager maintains detailed records of each step of the project and enables both
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themselves and senior management to identify which aspects of the project were
successful and which were not. Additionally, it enables the organisation to examine
areas for future improvement and best practises for future projects.
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●● While many top project managers are simultaneously launching new projects and
ending existing ones, the process of achieving a solid completion may sometimes
seem like juggling cats. To help project managers in successfully concluding
projects, the Project Management Institute’s book, A Guide to the Project
Management Body of Knowledge (PMBOK® Guide), offers an entire process
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group dedicated to the skills and knowledge necessary for good finishes.

Glossary
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●● Finish-To-Finish: In a finish-to-finish relationship, a successor activity cannot
finish until a predecessor activity has finished.
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●● Criteria: The criteria are the policies, procedures, or requirements used as a
reference against which evidence is compared.
●● Assumption: Factors deemed to be true during the project planning process,
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though proof of their validity is not available.
●● Evidence: The evidence includes the records, statements of fact, or other
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information which are relevant to the criteria and verifiable.
●● Business model: A company’s business model is the system by which the
organization’s profitable activities are planned, structured, and executed, and by
which it interacts with its customers.
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●● Conclusion: The conclusion is the outcome of an audit provided by the team after
consideration of the objectives and all findings.
●● Avoid: A response to a negative risk that seeks to ensure the risk does not occur
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or (if the risk cannot be eliminated) seeks to protect the project objectives from the
negative risk’s impact.
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Auditor: The auditor is a person with the demonstrated personal attributes and
competence to conduct an audit.
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●● Contract closeout: The process of determining whether the terms of a contract
were completed successfully and of settling any remaining terms.
●● Scope: The scope is the extent and boundaries of an audit.
ni
●● Project team: A project team is responsible for leading and collectively managing
a project and its related activities through the project’s life cycle.
U
●● Follow-up: Follow-up verifies the completion and effectiveness of corrective

actions taken as the result of nonconformities reported.

ity
1. Under which of the following situations would teams be more effective than individuals?
a) When rapidity is important
b) When the activities elaborate in solving the problem are very detailed
m
c) When the authentic document needs to be written

d) When innovation is required
2. There is ________________ correlation between project complication and project risk.
)A
a) an unknown
b) a positive
c) no
(c
d) a negative

3. Which of the following declarations about risk is true?

Notes
e
a) Project risk efforts on identifying, assessing, and rejecting the risks on
the project.
in
b) Risk management is all about abolishing risk.
c) Project risk is an uncertain occurrence that, even if it occurs, has no effect on
project objectives.
nl
d) There are no risk-free projects.
4. A __________________ is a review of the quality plan, procedures, data collection,
O
and analysis by an external group.
a) scope document
b) project appraisal
ty
c) cost performance index
d) quality audit
si
5. Which of the following is correct about a project manager?
a) Project managers examine work processes and explore opportunities to make
improvements.
r
b) Project managers are attentive on the long-term health of the organization.
ve
c) Project managers are process focused.
d) Project managers are goal oriented.
6. The _________________ is the difference between the additional money spent on
ni
prevention and the corresponding drop in the cost of failure.

a) cost-benefit analysis
U
b) implicit cost
c) cost of quality
d) variable cost
ity
7. When a project manager starts to plan a new project budget, the cost of which project
management development group is expected to be lowest?
a) Initiating
b) Executing
m
c) Monitoring and controlling

d) Closing
)A
8. Which one of the following is the finishing step of project closings?

a) The client has accepted the product
b) Archives are complete
(c
c) The client appreciates your product

d) Lessons learned are documented

9. Audit is a fact-finding method that comparability actual results with _________________

Notes
e
a) specified standards and plans
b) expected results
in
c) premature results
d) preliminary results
nl
10. Closing the project includes _________________.
a) identifying next project.
O
b) identifying the future ventures.
c) identifying the faults.
d) identifying follow-on actions.
ty
11. Auditor shall report on the accounts observed by him __________.
a) to the shareholders.
si
b) to the court.
c) to the bank.
d) to the general public.
r
12. Which one of the following schedules shows the specific actions necessary to
ve
complete an activity or work package?
a) Project schedule
b) Master schedule
ni
c) Task schedule
d) Internal schedule
U
Exercise
1. Describe the term of Project Termination.
2. Explain the Termination conditions for projects.
ity
3. What is Abandonment Analysis?

4. Define Normal Closure.
5. What is Premature Project Closure?
m
6. Define Perpetual Project.

7. Define Failed Project.
)A
8. Define Changed Priority.

9. Explain the purpose of Project Audit.
10. Explain the steps in Project Audit.
11. Describe the types of Project Audit.
(c
12. Define Report Contents.

13. What is Project Closure Checklist?
Learning Activity
Notes
e
1. What are project termination issues?
2. What are the factors that should be considered in terminating a project?
in
3. What is project audit process?
nl
1) d)
2) b)
O
3) d)
4) d)
5) d)
ty
6) c)
7) d)
si
8) b)
9) a)
10) d)
r
ve
11) a)
12) c)

ni
1. Alexia Nalewaik and Anthony Mills: Project Performance Review, Routledge,

2016 Edition.
2. Erik Simonsen: Project Terminated, Crecy Publishing, 2012 Edition.
U
3. Douglas C. Montgomery: Statistical Quality Control, Wiley, 2010 Edition.

ity
m
)A
(c

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Subject Matter Experts

1.4.1 Project Scope

Module - II: Planning the Work 79

2.1.1 WBS: Work Breakdown Structure

2.2.3 Top Down - Group Consensus Estimates

2.2.5 Top Down - Apportioned Method Estimating

2.3.1 Why Is Organisation and Project Team Structure Important?

Module - II: Project Process 147

Module - IV: Working the Plan 189

4.1 Project Team; Leadership and Project Manager

4.2.2 Monitoring and Controlling Tools

4.2.6 Contract Types

Module - V: Project Termination 249

5.3.1 Purpose of Project Audit

5.3.4 Project Audit: Report Contents

5.4.1 Project Closure: Final Process Group

Module - I: Project Management Concepts

A project has a definite starting and ending points in terms of schedule, an

Projects are created and undertaken in organisations to cater to a definite

These scenarios are totally different in organisations that work on a continuously to

hold their roles for an extended period.

For example, building of a house is a project. The building of a house consists

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Another aspect of a project is the non-repetitive nature of activities. Each project is

Thus, we can define a project as:

The following are the project’s characteristics:

a. Duration: Because a project is a transitory endeavour, it must have a defined

d. Resources: Information technology projects need time, money, human

Amity Directorate of Distance & Online Education

Interdependent Tasks: Managing a project entails a large number of interdependent

Organizational Change: A project is a deliberate attempt to alter an organization’s

Project management is the process of applying information, abilities, tools,

1.1.1 Concept of Projects

by a single person or hundreds of people, depending on its complexity.

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●● Traditional projects: These are phased and operated successively. These

project management techniques.

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The parameters of a project

●● The project’s scope

Project management is distinguished from business-as-usual operations by the

1.1.2 Project Classification: Projects vs. Operations

●● Both are carried out by humans.

●● Both are constrained by resource constraints.

A projectized organisation is one that focuses on projects, while a functional

What Exactly Is a Project?

PRINCE2, for example, describes a project as:

“A project is a temporary organisation formed to provide one or more commercial

Additionally, the PMBOK Guide states:

“A project is a brief attempt undertaken to produce a one-of-a-kind product, service,

You may deduce the following:

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●● A project’s nature is transitory.

Additionally, a project may provide a service-related result, such as establishing a

What is the definition of an operation?

What Is the Distinction Between Projects and Operations?

Between projects and operations, there are several distinctions. Several

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As such, this is an illustration of an operation.

S. No. Category Projects Operations

1. Definition A project is a brief activity Operations are the continuous