NCV 4 Project Management Hands-On Support Slide Show - Module 2

Project Management 4

Module 2: Project initiation

Module 2: Project initiation

• After completing this module, you will be able to:– Contribute to the identification and co-ordination

of stakeholders, their roles needs and expectations– Contribute to the identification, description and

analysis of the project needs, expectations, constraints, assumptions, exclusions, inclusions and deliverables

– Contribute to preparing and producing inputs to be used for further planning activities

– Contribute to the monitoring of the achievement of the project scope

1. CONTRIBUTE TO THE IDENTIFICATION AND CO-ORDINATION OF STAKEHOLDERS

After completing this outcome, you will be able to:• Assess components of a given project plan, in terms of

stakeholders, stakeholder needs, expectations and roles, project deliverables and a format to document and record information

• Identify a small project and develop the plans in accordance with correct procedures

• Leadership skills and techniques are selected and used in the management of the project

• Identify stakeholders of the project• Explain and record their roles on achievement of project

outcomes• Document and communicate approved modifications of

stakeholder needs to relevant parties

1.1 Assess the components of a given project plan

• Project initiation includes the following:– Determining what the

project should accomplish

– Defining the goal of the project

– Developing a project charter

Project planning

• Often considered the most important step of the project management process

• Make sure work is done correctly the first time

Steps within project planning

1. Write a scope statement

• Defining a project’s scope ensures that everyone involved in a project understands what the project is supposed to accomplish

• After writing the scope statement, you can create the scope management plan. The plan indicates the following:– How scope changes will be identified– How scope changes will be integrated into the

project– What approval requirements are necessary for

scope changes

2. Clearly define all activities

• Identify all activities that must be completed during the project and use them to create an activity list

• Identify any constraints or dependencies that affect how or when activities can be completed

3. Develop a schedule

• Estimate how long each activity will take

• Construct a project network diagram to illustrate the sequence in which the schedule must be completed

• Put dates on the diagram

4. Determine resource needs

• Determine what resources are needed for each activity

• Determine in what quantities they are needed

• Determine at what times they are needed

• Develop a procurement management plan

5. Estimate the project’s cost

• Top-down estimating– Examines past data from similar projects– Often based on the manager’s experience

• Bottom-up estimating– Develops estimates for each activity in the work

breakdown structure then adds estimates to arrive at an estimate for the total project cost

• Phased estimated– Breaks projects into phases– Calculates a separate cost estimate for each phase

6. Develop a budget

• Assign amounts to each activity based on cost estimates

• Develop a cost management plan

• Two factors to consider–Work results

– Performance results

7. Create a project plan

• A good project plan should:– Direct how, when and by whom all project

activities should be completed

– Document what decisions are made and why they are made

– Define standards against which the project and team members performance is measured

7. Create a project plan• Additional actions that need to be performed:

– Define the project’s quality standards and develop a quality management plan

– Assign roles and responsibilities, which include developing a staff management plan and acquiring staff for the project team

– Develop a communication system, which includes creating a communications management plan that will make sure information is distributed to the right people at the right times in an appropriate format

– Identify and evaluate the seriousness of potential project risks – Develop responses to the potential risks, which includes compiling

a risk management plan – Decide which resources must be procured from outside the

project’s parent company, which includes developing a procurement plan

– Determine which sources can provided the needed resources for a project, which includes defining resource requirements, such as what level of quality is expected for contracted work

Project plan1. Project plan2. Feasibility study3. Scope management4. Build methods5. Execution strategy6. Work Breakdown Structure7. Organisational Breakdown Structure8. Critical Path Method9. Schedule bar chart10. Procurement schedule11. Resource histogram12. Budgets and project cash flow13. Communications plan14. Project quality plan15. Risk management plan16. Baseline plan

1. Project charter

• Officially acknowledges the start of the project

• Should outline the following:– The purpose of the project

– The beneficial changes

– Key objectives and the means of achieving them

2. Feasibility study

• Develops the project charter and project brief into a project proposal

• Offers a structured approach for identifying the stakeholders and assessing their needs

• Reviews close-out reports of previous projects, together with investigating other options and alternatives

3. Scope management

• Defines what the project includes and what it doesn’t include

• Developed into:– Bill of materials

– List of drawings

– Specifications

• Includes close-out report

Example of a bill of materialsBill of Materials – Home Linux Server

Components Model Details Price

Case SX1040 Easy access R654.00

Power supply PP412X Included with case R0.00

CPU 2.4GHz 533 MH2 F88 R1400.00

Motherboard IT7 Onboard LAN R910.00

System memory 512 MBPC2700 DDR R950.00

Graphics card GeForce 4MX 420 R490.00

Network card 3C805-TX R175.00

CD burner SD-R1002 DVD, CD-RW, CD-R R1050.00

Hard drive WD1200JB 120GB drive for data volume R980.00

Display Q41Opliquest 14” Monitor R950.00

Keyboard PS2 R195.00

Mouse Wheel Mouse R110.00

Distribution SUSE8.0Pro R560.00

Total R8424.00

4. Build methods

• Outlines how the product will be assembled or implemented

5. Execution strategy

• Considers the “make or buy” decision

6. Work Breakdown Structure

• Key management tool used to subdivide the scope of work

• Divides work into packages that can be estimated, planned, assigned and controlled

7. Organisational Breakdown Structure (OBS)

• Set up to manage the project as outlined in the execution strategy

• Lines the work packages to the company department or person who is responsible for performing the work

• Can be further developed to include delegated responsibility, level of authority and lines of communication

8. Critical path method

• Uses a network diagram to present the work packages and activities in a logical sequence of work that is developed from the build method and other constraints

• Calculates:– Activities early start– Early finish– Late start– Late finish– Float– Critical path

Critical path method

9. Schedule bar chart

• Enables participant to easily walk through the sequencing of the project’s work

• Can be further simplified by focusing on hammocks, key dates and milestones

10. Procurement schedule

• Procurement function is to supply all the bought-in items at the best price

• Long lead times need to be identified early on so they can be ordered

11. Resource histogram

• Resource over-loads and under-loads need to accommodate both project and company requirements

• Resource smoothing needs to consider other company projects and outside contractors

12. Budgets and cash flow

• The accounting process:– Establishes and assigns budgets

– Determines project’s cash flow

13. Communications plan

• Includes the process required to ensure proper collection and dissemination of project information

14. Project quality plan

• Outlines a quality management system designed to guide and enable the project to meet the required condition

15. Risk management plan

• Includes the process of identifying, analysing and responding to project risk

• Consists of:– Risk identification

– Risk quantification and impact

– Response development

– Risk control

– Disaster recovery plan

16. Baseline plan

• Portfolio of documents which outline how to achieve the project’s objectives

• Level of detail and accuracy will depend on the project phase and complexity

• Should be a coherent document to guide the project through the execution and project control cycle

Importance of developing a solid project plan

• Since the goal of planning a project is to make sure that work is done correctly the first time it is important to develop a solid project plan. A solid project plan should do the following:– Record assumptions made during project planning– Direct project execution and control– Provide instructions for documenting what

decisions were made and why they were made– Specify dates for management review– Define standards against which project and team

members’ performance are measured

1.2 Identify a small project / sub-project and develop the plans in accordance with

the correct procedure• The following is a handy guide for the one’s who are

involved in the smaller projects of even a do-it-yourself (DIY) project. Their project plan will generally include:– Documents used during project planning, such as the scope

statement, work breakdown structure, and cost estimates– The project charter– Scope, risk, communication, procurement and schedule

management plans– Responsibility assignments– Schedule dates and milestones– Major risks, constraints and assumptions and how each will

be handled– Pending issues and decisions– Design and other specifications

1.3 Utilise leadership skills and techniques

Generally accepted project management knowledge and

practice•Draw up project policy•Recruitment•Organising behaviour•Financial management•Problem solving•Information systems•Marketing and sales

Generally accepted project management knowledge and

practice•Draw up project policy•Recruitment•Organising behaviour•Financial management•Problem solving•Information systems•Marketing and sales

Application area knowledge and practice

•Quality assurance•Personnel administration•Logistics•Industrial engineering•Legal requirements•Information technology•Computer programming

Application area knowledge and practice

•Quality assurance•Personnel administration•Logistics•Industrial engineering•Legal requirements•Information technology•Computer programming

General management•Planning•Organising•Leading•Controlling•Decision-making•Motivation•Delegation•Communication

General management•Planning•Organising•Leading•Controlling•Decision-making•Motivation•Delegation•Communication

Activity 1

• Decide on the portfolio of the project manager that you want to appoint as project manager for your project – list the qualities and characteristics that you want in that person (leader) as potential project manager

1.4 Identify project stakeholders

• What is a stakeholder?– A stakeholder is an individual, group or

organisation that is actively involved in the project or whose interests may be positively or negatively affected as a result of the project execution or completion

– They may also exert influence over the project and its results

Activity 2

• For the moment, think of all the possible stakeholders involved in and maybe affecting the result of the project

Define and analyse the stakeholders’ and client’s needs• Stakeholder analysis and needs

– The purpose of the needs analysis is to determine the needs and expectations of the stakeholders

– It is the project manager’s responsibility to identify all the stakeholders and determine their needs and expectations

– These needs and expectations should then be managed, influenced and balanced, to ensure project success

– Any differences between the stakeholders should be resolved in favour of the client and customers, but not necessarily at the expense of the other stakeholders

– It is the project manager’s responsibility to build conditions among the various stakeholders – this is a way of gaining power

Define and analyse the stakeholders’ and client’s needs• The client’s analysis and needs– The product must operate in a specific environment– The product must have a working life of so many years– The project must meet certain specifications and

standards– The product must meet statutory health and safety

regulations– Ease of maintenance and repair must be incorporated

into the design– The product must provide opportunities for further

expansion– The project must be operational by a predefined date– The end product must be marketable and profitable

1.5 The roles of stakeholders

Other stakeholders

• Originator: The person who suggests the project• Project Champion: The person who makes the

project happens.• Users: The people who will operate the facility on

behalf of the owner when the project is completed• Suppliers and Vendors: The external companies or

people who supply materials and equipment• Supporters: The parties who provide goods and

services to enable the facility to be built• Legal Requirements: Rules and regulations both

nationally and internationally that must be complied with

External stakeholders

• Regulatory authorities like the Department of Health and Safety

• Trade unions

• Special interest groups (environmentalists) who represent the society at large

• Government agencies and media outlets

• Individual citizens

Influence of stakeholders

• Some stakeholders simply need to feel appreciated throughout the project process

• Some stakeholders outline specific requirements they want the project to meet. The project team can advise the stakeholders if their requirements for a project are not going to be completely fulfilled

• Some stakeholders have specific requirements they want the project to meet, and their stake in the project is large enough that the project team should strive to meet their needs under most circumstances

CONTRIBUTE TO THE IDENTIFICATION, DESCRIPTION AND ANALYSIS OF PROJECT NEEDS

After completing this outcome, you will be able to:• define and explain project concepts

• develop a list of constraints that may influence a project

• develop work packages to present an overall view of project scope

• Develop a work breakdown structure (WBS)

2.1 Define and explain project concepts

• Project objectives– A project objective is something measurable

towards which work is directed, a strategic position is to obtained, purposes to be achieved, result to be obtained, product to be produced or service to be performed


• Project assumptions– Conditions that must fall into place the way

they are planned in order to successfully complete a project

– Assumptions are factors that are accepted as true, real or certain during the planning of the project and can include such things as cost, time and performance

– Since assumptions are not absolutes, there is a degree of risk involved when adopting them


• Needs–What we require to make a success of the

project


• Project expectations– A project manager builds his project on

expectations


• Project constraints– A project constraint is an absolute factor that

limits the options for the project– Possible constraints include:• Contractual provisions• Performance requirements• Time• Costs• Need to make sure the project fits the organisation’s

culture


• Project deliverables– A summary of the project deliverables should

be included in the scope statement

2.2 Develop a list of constraints that may influence a project

• Internal project constraints are:– Availability or lack of funds – budget– Time factor– Resources – material or equipment– Lack of skills or the quality of skills– No or lack of training – time-factor could be a constraint– Lack of motivation amongst team members– Too much pressure or stress on project team– Lack of enthusiasm amongst project manager and team members– Lack of quality work – poor quality end product– Poor communication between project stakeholders– Poor or insufficient project planning– Lack of control– Project work schedule is ineffective or even impossible to work accordingly– Relationships between project manager and team, project supervisors and team members– Time estimations not done accurately– Cost estimations or calculations done wrongly– Feasibility study or impact study not done– Industrial relations – poor working conditions, potential for strike

2.2 Develop a list of constraints that may influence a project

• External project constraints are:– National and international laws and regulations– Material and component delivery leads times– Unavailable resources– Logistic constraints – Availability of foreign currency and currency fluctuations– Environmental issues– Climate conditions– Market forces, supply and demand curves– Political unrest– Construction site in a residential area– Planning permission, licenses; permits; clearance; insurance– New technological or unexpected changes

2.3 Develop work packages to present an overall view of project

scope• Each work package represents the lowest

level of project activity that has both time and cost associated with it

• A work package should have a unique deliverable associated with it that, as project manager, you will know whether or not it is completed

• Work packages are important elements for ensuring quality

2.3 Develop work packages to present an overall view of project scope

• Work packages are useful in the following ways:– Work packages are a way of modularising the project

into manageable segments. Thus, tracking the progress of work packages is a way to assess and control the work done on a project

– By breaking work into work packages, you can determine the skills you need to complete the work on a project, and you can quantify how many people will be required to do the work

– Work packages allow you to communicate the work that needs to be done to other team members without getting into too much detail

– Breaking the work into work packages ensures that all work sequences are identified and understood

2.3 Develop work packages to present an overall view of project scope

• Rules to keep the work packages to the correct size– A work package should usually consist of between 8

and 60 hours of work

– A work package should not take longer to complete than the length of time between status reports

– For every work package, the progress should be easy to track and accountability should be easy to assign. If this is not the case, the work package is too large

2.4 Develop a Work Breakdown Structure

• A work breakdown structure (WBS) is the foundation for project planning

• Identifies all of the deliverables required for a project and is a standard way to organise the work

• In order to complete a work break-down structure effectively, you must decompose each deliverable necessary to complete a project


• Uses of the work breakdown structure:– The completed WBS can be used for budgeting

and personnel selection purposes as well as scheduling and network diagramming.

– It is important to include all team members when creating a work breakdown structure. Including the team will encourage everyone to thoroughly think about all aspects of the project.


• In a work breakdown structure a project is broken down into the following levels:– The total project– Sub-projects if the project is a complicated one– Milestones that summarise the completion of an

important set of work packages or the completion of an important event in a project such as a sub-project

– Major activities – also called summary tasks– Work packages (also sometimes called tasks,

activities or work elements)

Example of a WBS

GoalGoal

Function 1Function 1

Function 2Function 2

Task 1.1Task 1.1

Task 1.2Task 1.2

Task 1.3Task 1.3

Task 2.1Task 2.1

Task 2.2Task 2.2

Task 2.3Task 2.3


• The WBS you create should be able to help you do all of the following:– Identify the major parts of the project so that all the work

needing to be done is clearly indicated– Organise the work in the most logical sequence so the work

packages can be efficiently scheduled– Identify work packages that need to be assigned to various

team members– Identify the resources necessary to complete each work

package so a budget can be developed– Communicate the work to be done in an unambiguous way

so that team members understand their assigned jobs and responsibilities for completing the project

– Organise related work packages using logical milestones


• Organising a work breakdown structure– According to the phases in which the product will be released– According to the physical elements of the product, listing

each as a high-level deliverable– According to the general project objectives the deliverables

need to meet– According to the reports needed for upper management– According to the chronology of the major steps in a

product’s life cycle– According to various locations if the project is

geographically dispersed– According to functional departments and then within each

department using the individual WBS that makes the most sense


• Other breakdown structures– A bill of materials (BOM) is a breakdown of the

physical elements needed to assemble a manufactured product

– A contractual work breakdown structure (CWBS) is used to detail the work breakdown of any products or services related to a project that are provided by someone outside the organisation

– An organisational breakdown structure (OBS) identifies which deliverables have been assigned to functional departments within the organisation

– A resource breakdown structure (RBS) identifies which deliverables have been assigned to individuals within the organisation


• Importance of designing a WBS– A work breakdown structure is an essential part of a

project because it enables you to:• Finalise the scope of the project, since any work not listed in

the WBS is outside the scope of the project• Plan the project• Outline a budget for the project• Link deliverables to available company resources• Establish an accurate cost and schedule estimates• Clearly assign work responsibilities to specific team members• Monitor the progress of the project as whole, since each

deliverable is a measurable unit of work• Track time, cost, and performance throughout the project• Establish status-reporting procedures


• Elements of a WBS– High-level deliverables give a broad overview of

the project– Summary deliverables are not actually

executed, but are a summarisation of the subordinate work packages

– Low-level deliverables, commonly called work packages, are manageable units that can be planned, budgeted, scheduled, executed and controlled effectively


• Define deliverables in a work breakdown structure– All deliverables in a work breakdown structure

should be defined so that they:• Indicate definite beginning and ending dates• Provide a benchmark that compares results to

expectations• Result in a solid product or service, or part of a

product or service• Are clearly defined so they require minimum

documentation to be provided to the project office


• Create a good work breakdown structure– List the breakdown of deliverables

– Review it with responsible individuals

– Identify data relevant to the WBS

– Continually examine actual resources used

– Compare actual progress to scheduled progress


• Tips to follow when developing a work breakdown structure (WBS)– In order to make sure your WBS is useful in planning,

communicating, and controlling your project, it should meet the following criteria:• The WBS should be clear and easy to understand to anyone who

reads it• Each work package should be a direct subset of a summary

deliverable, and each summary deliverable should be a direct subset of a high-level deliverable

• Summary deliverables should be broken down so that all of the work packages necessary to complete that summary deliverable are listed below it

• All tasks listed on the WBS should produce a deliverable• Deliverables listed on the WBS should be tangible milestones,

making it easy to recognise when milestones are achieved


• Can a WBS already exist?– It is important to be aware of the fact that a

WBS might already exist for the project on which you are working. Although each project is unique, there are frequently enough similarities between projects that organisations keep a standard WBS on file that you can use as a template. Using a WBS template, can save you time when planning a project.


• Benefits of a WBS– The project team develops confidence in their goal– A framework is provided with which you can identify

projects separately from organisations, accounting systems, and funding sources

– Specific work packages are available with which you can estimate and assign work

– Responsibilities are clearly defined, resulting in accountability

– Team members find it easier to focus their attention on project objectives

– It is easier to develop detailed planning and documentation


• Five steps to develop the Work Breakdown Structure1. Break the work into independent work packages that can be

sequenced, assigned, scheduled, and monitored2. Define the work packages at a level of detail appropriate for

the length and complexity of the project3. Integrate the work packages into a total system with a

beginning and an end. This may involve combining tasks into milestones (also called sub-projects)

4. Present the work packages in a format that can be easily communicated to people assigned to complete them during the project. Remember that each work package should have a deliverable and a time for completing that deliverable

5. Verify that completion of the work packages will result in attainment of all the project goals and objectives

Activity 3

• The team’s project is to build a house. With the help of the team break the project up into a detailed WBS.

CONTRIBUTE TO PREPARING AND PRODUCING INPUTS TO THE USED FOR FURTHER PLANNING ACTIVITIES

After completing this outcome, you will be able to:• define and explain the scope of the identified project

• develop documentation for the scope of the project

• develop documentation using project management tools and techniques to record the rudimentary sequence of events and/or milestones

• develop measures for project success, in consultation with stakeholders

3.1 Define and explain the scope of the identified project• What is scope definition?

– The process of breaking all the major project deliverables into smaller elements

• Scope management plan– The scope management plan is a step-by-step process to manage

changes in the project scope– In well established organisations, it is common to have a generic

scope• Scope planning

– Scope planning consists of writing the cope statement so the project team knows when the project has been completed successfully

– If the scope is too narrow, the project might result in several additional sub-projects

– If the scope is too broad the project might develop too many elements to manage effectively

3.2 Tools and techniques for scope planning

• Complete a project analysis– Allows you to have an in-depth understanding

of what the project is going to produce

• Conduct a cost-benefit analysis– Estimating tangible and intangible costs and

benefits enables you to assess the value of project alternatives

• Ask for expert recommendations• Identify alternatives

3.3 Create a scope statement

• Purpose of the scope statement– The scope statement should outline clear project

boundaries, making it easy to identify any extra work that will need to be done during the execution step of the project management process

• Outputs from scope statement– Project justification– Product description– Project objectives– Project deliverables

Outputs from the scope statement

• Project justification– Project justification describes the business need

that the project is going to address and is usually identified when the project is authorised

• Product description– The product description describes the work

necessary to create the product and enables the project team to clearly understand its goal

Outputs from the scope statement

• Project objectives– Project objectives outline the criteria that must be

met to successfully complete the project– Every project must have objectives that are clear to

project personnel, managers and stakeholders

• Project deliverables– Project deliverables identify what the project is

supposed to produce– A summary list of the project deliverables should

be included in the scope statement

Statement of work

• What is a statement of work?– description of the products or services for a project that are

completed by a group outside the organisation• The minimum content of a SOW includes the following:

– The purpose statement– The scope statement– The project deliverables– The goals and objectives– The cost and schedule estimates– The list of stakeholders– The chain of command– Assumptions and agreements– The communication plan

4. CONTRIBUTE TO THE MONITORING OF THE ACHIEVEMENT OF THE PROJECT’S SCOPE

After completing this outcome, you will be able to:• Explain measures that contribute to monitoring of the

achievement of a project’s scope

• Identify and explain processes to contribute to the monitoring of the identified project

4.1 Explain measures that contribute to monitoring of the achievement of

project scope• Scope change control– The PMBOK defines scope change control as:

• Influencing the factors which create scope changes to ensure that changes are beneficial to the project

• Determining that a scope change has occurred

• Managing the actual changes when and if they occur

• Configuration management– Is the process of identifying and managing change

to the deliverables and other work products as they evolve through the project life cycle

Configuration management system

• A change control system that formally documents a procedure defining the steps by which official project documents may be changed

• Lists the only people who have the authority to make changes to the scope of work, in both the client and contractor organisations

• A current and up-to-date description of the product• Traceability of previous baseline configurations• A record and an audit trail of approved changes• A framework to monitor, evaluate and update the scope baseline

to accommodate any scope changes. This will ensure that the revised baseline always reflects the current status of the project

• Automatic approval for emergency situations

Scope change control system

Scope change control system

• Non-conformance report– Usually initiated by quality control when someone has

worked outside a procedure or the product is outside the required condition

• Concession– Requests the client to accept an item that has been built

and is functional but out of specification• Change request– modifications and variations request the client to

approve a change to the scope baseline.• Verbal agreements– should be backed up in writing

Change request

Project communication

Impact statement• Quantifies the implications of making a proposed change• An information pack is compiled to collect input, information,

comments and approval from the responsible parties:– Design team– Technical impact– Procurement impact– Production impact– Planning impact– Cost impact– Quality impact– Risk impact– Legal impact– Project manager approve / reject– Client approves / reject

Impact statement

Flow sheet

• A flow sheet is used to control the movement of the change requests and impact statements

• Determines the sequence of circulation

Flow sheet

Control

• Control includes measuring, monitoring and adjusting your actions in order to produce the required outcome and progress towards the achievement of the project goal

• Control requires a knowledge of the project process• A scope change is any adjustment that is made to

the approved scope• Controlling changes to the project scope involves:– Identifying factors that create scope changes– Recognising that scope changes have taken place– Managing scope changes when they occur– Making sure scope changes are beneficial to the project

Change requests

• Change requests can result from:– external events such as lack of resources– a missing element when defining the product

scope– a missing element when defining the project

scope– an addition to the project in order to add value

to the final product– a reduction in scope by removing some aspects

of the project or product

NCV 4 Project Management Hands-On Support Slide Show - Module 2

Education

Transcript of NCV 4 Project Management Hands-On Support Slide Show - Module 2