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APMP STUDY NOTES
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Project
Project
Project
BAU
Inter-related
PMPM
PM
COORDINATED MANAGEMENTCOMMON
STRATEGIC GOAL
1.2 PROGRAMMEMANAGEMENT
PMPM PM
Programme
Manager
Strategic
Tool
Corporate
Management
Project
Projects
Contribute
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1.2 PROGRAMMEMANAGEMENT
Irreckon
IInterdependencies
RResources
R - Risks
E - Economies of Scale
C - Communication Routes
BENEFITSRESPONSIBILITIES
SBStrategic Benefits
BiRD Benefits to achieve
Requirements to be met
Deliverables to be produced
IIntegration of projects + Interdependencies
RPCResources, Priorities, Conflicts
RIC - Risks, Issues, Changes
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Project
Project
Project
BAU
SELECTION & MANAGEMENT off ALL
1.3 PORTFOLIOMANAGEMENT
ProgrammeProgramme
Management of Resources
May NOT be inter-relatedAnd When
R RvR ITR
RResources
R - Risks vs Returns BAU profit or project
I - Improvementslessons leant, feedback
TTechnologysame throughout
R- Responsivenesscloser to customers, market,
react quicker
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1.3 PORTFOLIOMANAGEMENT
Portfolio management is the selection and management of all of an organisations projects, programmes
and related business-as-usual activities, which may not be interrelated. If defines when they take place
and is particularly interested in the management of resources
A portfolio is a group of projects and programmes carried out under the sponsorship of an organisation.
4 Commom Aspects
Screening, analysis and financial appraisal of project and programme characteristics in relation to the
organisation strategy;
Prioritisation and/or selection of projects or programmes, given the resources available, and likely
returns and risks;
Continued monitoring as projects and programmes develop;
Adjustment of the portfolio in the light of developing circumstances around the portfolio.
Portfolio management is particularly concerned with the interdependencies between projects and
programmes in terms of:
scarce or limited resources;
balance within the portfolio between risks and return;
Timing;
capacity bottlenecks.
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1.4 PROJECT CONTEXT
PPolitical
EEconomic
SSociological
TTechnological
L - Legal / Regulatory
E - Ethical/Environmental
Government Policies
TAXation
Credit Crunch
Exchange Rates/ Interest Rates
Fashion
Population changes
New, obsolescence,
eCommerce
Pollution
Job losses
3rdWorld exploitation
new laws,
employment laws and restrictions
Other factors to consider are :
organisational capability andmaturity,
structure and processes ,
individual resource
capability and availability.
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Sponsor is Primary Risk taker, acting on behalf of the project stakeholders
Owns Business Case, responsible for its completeness and thoroughness so
the board can sign it off.
Ensures Benefits are achieved & ensures obstacles are dealt with
Authorises Phases and Changes
Provide strategic Link to Corporate management
1.5 PROJECT SPONSOR
Is an active Senior Management role. Responsible for indentifying the business need.
Ensure project remains viable & benefits are realised, resolving issues outside the control
of the PM.
BLARBBusiness leader and decision maker who is able to work
across functional boundaries within an organisation;
Advocate for the project and the change it brings about;
Commits sufficient time and support to undertake the role;
Experienced in project management to be able to judge
whether the project is being managed effectively.
Business Case
Link to Corp
Authorises
Risk TakerBenefits Realised
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1.6 Project Office
A project office serves the organisations project management needs. A projectoffice can range from simple support functions for the project manager to
being responsible for linking corporate strategy to project execution.
Allocates PM resources to projects and is responsible for the development of
the PMs
Provide expertise to projects on tools, techniques and provides information
Enables / Drives lessons learnt and improvements
Provides support to enable the Sponsor to focus on business decisions & to
concentrate on exception management.
Develops and maintains standards, processed & methods
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2.1 Project Success & Benefit Management
Success factors is the project a success ? Met Time
To Quality
To Cost
elements of context that increase likelihood of success
Benefits Does it benefit the Business, make a profit ?
normally comes later after project finished,e.g. market share, improving security, increasing staff satisfaction
Success Criteria is the Qualitative or Quantitative measures by which the success of
the project is judged.
Benefitis the measurable improvement resulting from project
KPI Measures of success that can be used throughout project to ensure it is
progressing successfully.
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2.1 Project Success & Benefit Management - 5 uses of Success Criteria & KPIs
Success Criteria are developed during
the Concept phase and support the
Business case.
They are agreed with by Stakeholdersand represent what constitutes success.
They support project Authorisation.
They provide focus for the planning of
the project and setting realistic
objectives.
They aid the flow down of objectives
During stage reviews they are used to
determine/measure how the project is
performing against its objectives,
providing feedback to Upper
Management & Stakeholders.
Support go/no go checks
Concept
Planning
ReviewsHandover
& Closeout
Changes
They can be used for change
evaluation, the impact of a change
must be established & understood by
all stakeholders. If accepted a formal
change control process must be
followed
During Handover & Closeout they can
be used to demonstrate success. And
to achieve progress sign off.
They can be used later to ascertain
whether planned benefits were
achieved.
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2.2 Stakeholder Management
5 Elements of a Stakeholder Analysis Process
1) Identify Identify Stakeholders with an interest in the project. May be internal or external to the
business.Brainstorm & research
2) Levels Establish levels of interest & influence/power on the project.
3) Priorities The various interests and power levels need to be evaluated to establish their potential
impact on the project.
Establish blockers and backers and prioritise those who have the greatest power & interest (
whether +ve orve.
4) Action Plans Develop an action plan and implement it to deal with each stakeholder appropiately.
5) Monitor These plans are monitored and controlled to ensure effectiveness.
The process is continuously applied, especially at phase boundaries where stakeholders
interest & power can change
Against For
- Interest +
high
Power
low
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2.2 Stakeholder Management
Stakeholder management is the systematic identification, analysis and planning of
actions to communicate with,
negotiate with andinfluence stakeholders.
Stakeholders are all those who have an interest or role in the project or are impacted by
the project.
Potential stakeholders may identify:resources needed for the project;
organisations or people who will be affected by the project;
organisations or people on the sidelines of the project who will influence
attitudes and behaviours;
statutory and regulatory bodies.
Questions to consider are as follows:
Do they have an interest in the project succeeding?
Will they be openly supportive of the project as it progresses?
Is the stakeholder ambivalent about the project?
Could the stakeholder have a negative view about what the project will deliver?What are their expectations and how can these be managed
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2.4 Project Management Plan
The PMP provides a baseline definition of how a project will be managed. The PMP
contains various plans on how the project will be implemented, success criteria, role &
responsibilities and many more factors.
It is owned by the PM, authorised by the Sponsor and developed with the project team,
aiding their buy in.
It is the Why, What, How, Who, When, Where and How Much
4 policies Change Control
Project Plan
Communications Plan
Procurement
5 actions a PM takes to prepare a PMP
1. Why. To understand business case and why the project is needed2. What. To define What has to be achieved, Scope, success criteria, KPIs, deliverables
3. How. Develop the strategy of How the project is to be undertaken, WBS,PBS, Tools &
techniques, project control, plans.
4. How Much. To produce estimates and budgets.
5. Who. Define Roles and Responsibilities
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2.4 Project Management Plan
The PMP provides a baseline definition of how a project will be managed. The PMP
contains various plans on how the project will be implemented, success criteria, role &
responsibilities and many more factors, and is a reference document for the project.
It is owned by the PM, authorised by the Sponsor and developed with the project team,
aiding their buy in.
It is the Why, What, How, Who, When, Where and How Much
4 policies Change Control
Project Plan
Communications Plan
Procurement
5 actions a PM takes to prepare a PMP
1. Why. To understand business case and why the project is needed2. What. To define What has to be achieved, Scope, success criteria, KPIs, deliverables
3. How. Develop the strategy of How the project is to be undertaken, WBS,PBS, Tools &
techniques, project control, plans.
4. How Much. To produce estimates and budgets.
5. Who. Define Roles and Responsibilities
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2.5 Risk Management
INITIATE
IDENTIFY
ASSESS
PLAN
RESPONSES
IMPLEMENT
RESPONSES
M
AN
A
G
E
PR
O
C
E
S
S
Reviews,
Audits,
learning,
Improvements
Initiation step to define scope & objectives
Identification to identify all significant risks that may
impact the project objectives and gather information
for analysis
Analysis
Response
Appropriate responses are considered and selected onthe basis of overall benefit. Responses aim to Avoid,
Reduce, Transfer, Accept the risks with a contingency
action.
Execute agreed responses.
Is an Iterative process
Qualitative
methods to
determineprobability &
impact of each
risk. Can
prioritise them.
Quantitative
methods to
determinecombined effects
of uncertainties
and risk
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2.5 Risk Management
5 Techniques for Identification
Workshops
Post Project Reviews
Check lists & Prompt list
Brainstorming
Assumptions analysis
SWOT analysisInterviews
Cause & Effect
WorkshopsUseful for integrating inputs
from different stakeholders & experts.
Deals with complex situations with
interdependencies between risks
BrainstormingThis is an open forum where
group members identify risks and then
rank them.
Useful for similar situations, and good
for team building
SWOTThis is a specific brainstorming
activity using Strength,
Weaknesses, Threats andOpportunities as main focal
points. This technique
encourages big picture view.
Check listsTeam go through checklists to
identify risks. The lists consist of
structured questions and is useful for
gathering information.
Reduces the need for experts.
Interviewswith stakeholders & experts to
identify risks and possible responses.
This is relatively quick and
inexpensive and often provides
information on preventative actions
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2.5 Risk Management
4 Responses to Top Priority Risks
Avoid - An alternative approach is taken to avoid the risk
Transfer - Assign contractual responsibility to another stakeholder who is
better place to manage the risk.
Reduction - Proactive measures to reduce likelyhood, impact or both. Ideally
reduction measures should be taken for high level risks.
Acceptance - Where the risk impact is low or the cost of mitigation is too high.
NOT FOR TOP PRIORITY RISKS !
Contingency - A fallback plan that will be implemented if the risk occurs.
Additionally we can add an allowance in estimates for events that
cannot be predicted.
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2.5 Risk Management
4 Actions of a PM in Preparing Responses to Top Priority Risks
1. Involve team and experts to generate responses to risks
2. Cost out the actions and analyse the benefits
3. Apply resources & establish ownership of actions
4. Obtain authorisation if necessary
All projects are inherently risky, because they are unique, constrained, complex, based
on assumptions and performed by people.
Exploit, enhance, share or accept opportunities,
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2.6 Project Quality Management
Is the discipline that is applied to ensure that both the outputs of the project and the
processes by which the outputs are delivered meet the stakeholders needs.
Project Outputs & Processes thereof meet stakeholder needs
Quality Planning Identifying which Q standards are relevant and how to
apply them to ensure required quality is achieved.
Output is Q Plan ( part of PMP ), provides guidance
to stakeholders on how Q management will be performed.
Includes :- Stakeholder expectations
Success Criteria
Standards
How Q will be Assured
Quality AssuranceVerifies work is being done in accordance to procedures
Preplanned Reviews and Audits
Provides confidence to stakeholders that project will satisfy Q
requirements & standards
Provides valuable information for lessons learnt & improvements.
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2.6 Project Quality Management
Quality Control. Checks projects results comply with standards & specifications.
Take corrective action to eliminate causes or address unsatisfactory
performance.
Conforms to spec, fit for purpose and meet stakeholder needs.
Inspection, testing, trials - verify deliverables fir for purpose, meets
stakeholder needs.
Continuous ImprovementThe process of improving Q by incremental changes, from
lessons learnt.
Focus is on specifying requirements tightly and meeting them
effectively & efficiently as possible.
Approaches include TQM, 6 Sigma.
Quality is broadly defined as fitness for purpose
Quality management : Outputs of Project and process by which the outputs were
delivered meet stakeholder needs.
3 Tools to help :- risk management, modelling and testing , and configuration
management
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2.6 Project Quality Management
How a PM ensures Q Requirements are met
1. Standards Ensure team know standards, specifications
2. Procedures Ensure team know procedures, train them
3. Roles & Responsibilities Make team aware of their roles & responsibilities for
carrying out Q Management actions.
4. Monitoring and Control To ensure product quality is being adhered to as per Q
Plan.
Ensure outcomes of audits are acted upon
5. Change Control in place
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2.7 Health & Safety & Environmental Management
Health, safety and environmental management is the process of determining and
applying appropriate standards and methods to minimise the likelihood of accidents,
injuries or environmental impact both during the project and during the operation of
its deliverables.
5 PM actions to comply with Health & Safety Legislation
1. Training Awareness of safe working practices & safety information
2. Safety Equipment Staff awareness & training on using safety equipment
3. Tools & Equipment Regularly checked and safe to operate
4. Risk Assessments Identification, analysis & responses to hazards
5. Accident Book Accidents & Incidents involving safety are
Documented,
Reported,
Evaluated &
Acted upon
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2.7 Health & Safety at Work Act 1974
AIMS
To secure
HealthSafety
Welfare of
People at Work
To protect OTHERs from risk
arising from activities of
People at Work
To Control emissions
into atmosphere of
noxious or offensivesubstances
To Control the Use &
Storage of Dangerous
Substances
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2.7 Health & Safety & Environmental Management
4 Specific Duties of Care
1. Training Staff given adequate training to do their job
2. Safety Equipment Staff aware of after
equipped with & extra
trained to time
use appropriate safety & protective equipment
3. Tools & Equipment Regularly checked and safe to operate
4. Risk Assessments Are conducted Identification, analysis & responses to
hazards
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3.1 Scope Management
Scope Management involves the identification and definition of the deliverables and
work to produce them.
IN / NOT IN
The scope must define what is included and what is not included
Scope management is continually applied throughout the project life cycle.
4 Actions a PM takes to produce Scope
1. Define deliverables -> PBS
2. Establish WBS to achieve above. Define inputs & outputs, determine resource3. Cost up each WP, with team.
4. Identify and evaluate assumptions made
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3.1 Scope Management
PBS Product Breakdown Structure Hierarchical breakdown of products
produced by project
WBS Work Breakdown Structure Hierarchical structure showing tasks to
be undertaken by project.
Lowest elements are called work
packages.
OBS Organisation Breakdown Structure Shows role titles
RAM Responsibility Assignment Matrix Accountability, role,
responsibility of team
CBS Cost Breakdown Structure
PM
TL TL
TMSL
TM TM
TM TMTM
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Diagram of WBS
Work Packages are lowest
level of any branch
Benefits of Structures in Planning and Controlling Projects
1. Helps define Schedule on which whole project is built
2. Defines objectives and maintain focus
3. Assigning Resource & responsibility
4. Managing Cost
5. Monitoring Progress
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3.2 Scheduling
Process to determine overall project duration and when activities and events
are planned to happen.
2 Methods :- Gantt Chart
Network Diagram
PERT - Programme Evaluation Review Techniqueuses 3pt estimates
3.3 Resource Management
Resource Levelling :- Schedule work not to exceed resource limit, may extend
duration
Two Types of Resource:- Replenishablefresh supplies, eg. Raw materials
Re-usableWhen finished, become available, eg. People
Resource Allocation Mapping resources to tasks
Resource Smoothing Resources used efficiently, does not affect duration
Resource Aggregation Summation of resources against time
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3.4 Budgeting & Cost Management
Estimate Cost, Agreeing budget, management of actual vs forecast
Commitment:- Value of orders placed for work to be doneAccrual:- Work done, payment is due
Actual Expenditure: Actual costs, money paid
Forecast out-turn cost:-
CAC = Total of Actuals + Accruals + Committed + Estimated CTC
Phase budget over time used in project financing and funding: allows cash
flow forecast & drawdown of funds to be agreed.
Concept Definition Implementation
InitialEstimate
Business Case
Investment
Appraisal
Estimate
refined (=BAF )Risks &
Contingency
added
Estimate
agreed by
SponsorBudget Set
Allocated to
WPs
MonitoredEVA
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3.5 Change Control
Is the process that ensures all changes made to a projects baselined Scope T,Q,C or agreed
benefits are Identified
Evaluated
Approved, Rejected or Deferred5 Features of a Change Control Process
1. Request Come form any stakeholder
Entered in a log
Changes may be External stakeholders, may be subject to
contract conditions
2. Initial Evaluation Reviewed to consider if it is worth while evaluating in detail
Evaluation of change as a deviation itself from project plan.
Change may be rejected.
3. Detailed Evaluation Consider impact on Scope, T, Q,C, agreed benefits.
4. Recommendation To Approved, Reject or Defer
Sponsor has authority, Communicate outcome
5. Update Plans If change approved, all plans are updated to reflect the change
6. Implement Necessary actions to implement change are undertaken
T
Q C
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3.6 Earned Value Management
Prerequisites
1. A work breakdown structure (WBS) to define the work.
2. Responsibilities for work defined in an organisational breakdown structure (OBS)3. The budget distributed in the WBS.
4. All authorised work scheduled.
5. A method of measuring achievement.
6. The budget phased over time against the schedule to provide a profile of
expenditure.
7. Baselined plans
8. Costs Recorded , coast identified as either direct or indirect costs, and all direct costs
recorded.
9. Performance data collected and analysed on a periodic basis.
10. Forecasts for the remaining work produced.
11. Changes to the baseline managed through a change control process
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3.6 Earned Value Management
Five Benefits from using Earned Value Analysis in projects
1. Performance Measurement Provides ongoing performance measurement.
Useful for PM to focus attention.Can compare with other projects
2. Variance and trend analysis Shows deviations from baseline, in terms of cost
and schedule ( good and bad )
Can plot SPI & CPI and others to show trends in
performance
3. Predicts CAC & End date Gives advance notice of possible over/
under spenduseful for financial management
Gives a predicted end date, useful for resource
management
4. Improves Estimates History of actual spend on tasks helps improve
estimating accuracy of current and future tasks
5. Provides triggers for escalating problems & highlighting successes. Upward Feedback
Could use trend lines.6. Information to assess whether corrective actions are required.
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3.8 Issue Management
Is the process by which concerns that threaten the project objectives
and cannot be resolved by the project manager are identified and removed.
Escalate to sponsor or higher. If not project may fail or effect objectives.
4 Actions
Capture
Impact on
Escalate
Monitor
T
Q C
Two Common Failings:
1. Wrongly identifying project problems as issues that
are the responsibility of the project manager. This
diverts attention away from handling genuine
issues;
2. Failing to FURTHER escalate an issue when not
resolved.
Issue = Threat to project objectives that cannot beresolved by PM
Issue resolution -> Project Steering group
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4.1 Requirements Management
Process of capturing, analysing and testing the stakeholder and user wants and needs.
Requirements should be comprehensive, clear, well structured, traceable and testable.
The primary factors:
Value Size of the benefit associated with each requirement.
PriorityStakeholders agree the priority ordering of requirements.
Time Time imperatives drive the ordering of the requirements.
ProcessHow the solution is to be built, particularly important where subcontractors
will be used to build some components
CADET
Capture needs
Analyse value, priority, time, process
Define, resolved conflict, document
Evaluate design meets requirements
Test meets requirements
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4.3 Estimating Techniques
Bottom Up Estimating
This method is based on the WBS. All the individual lower level tasks in the WBS are
estimated independently and then rolled up to produce the project estimates. Timeconsuming. Accurate. Best done in definition phase when information more accurate.
Comparative Estimating
It takes the overall costs and timescales for similar projects and adjusts them for size and
complexity simply involves using experience. Needs historic data. E.g. time taken to lay
pipe. The danger is that previous projects may have been inefficient, badly managed, or
circumstances may be different e.g. laying pipe in different terrains.
Parametric Estimating
Parametric estimating uses a mathematical model or formulae to produce project
estimates based on input parameters. It is usually based on historical data. Quick to
produce once set up.
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4.3 Estimating Techniques
How estimates vary through project lifecycle.
Concept
DefinitionImplementation
Handover
Accurate
estimatesdifficultdue
to lack of
information
Better
estimateswhen
planning
takes place
Estimates
refined byperformance
feedback
Estimates
almost
certainsince
mainly based
on actual /
known
information
An Estimate is an approximation of time and cost
3pt estimates allow for variation in estimates
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5.1 Business Case
Provides justification for undertaking a project, in terms of evaluating the benefit, cost
and risk of alternative options and rationale for the preferred solution.
Its purpose is to obtain sign off ( management commitment and approval for investmentin the project). Owned by the sponsor.
JCBDIG
J Justification for project, explains link to corporate strategy. Used to optain
authorisationC Criteriadetails project success factor, used to judge success by stakeholders
B Benefitsdetails the benefits anticipated as a result of the project
D Deliverablesdetails a schedule of key deliverables, their purpose and a high
level description of project scope
I Investment Appraisalanalysis of different options, including do nothing.
Provides financial benefits, costs, payback.
Schedule
Risks
Assumptions
Constraints;
Dependencies;
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5.1 Business CaseInvestment Appraisal
Payback Time taken to recover initial investment. Longer Payback, increased
risk. Shows cash flow situation. Useful for comparing options
where levels of initial investment and time taken to recover areimportant. Can compare projects with different paypack.
NPV Net Present ValueProvides a realistic estimate for future returns
and profit using discounted future values to bring them into present
day values. Can compare projects or options with different levels of
Investment,Cash flow profiles
Timescales
IRR Internal Rate of ReturnDiscounted Rate that produces an NPV of
Zero.
Used to compare value of project with alternative returns oninvestment, such as bonds.
Needs adjustment to allow for different levels of risk in projects.
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5.1 Business Case
Why Sponsor must own business case
The project manager will usually hand over responsibility for the project when thedeliverables have been formally accepted. At this stage the business benefits, defined in
the business case, have yet to be realised. As the sponsor owns the benefits realisation
he should also be responsible for making the business case for the project
The sponsor provides the link between the project and corporate management who
determine corporate objectives. Every project must be aligned to corporate objectiveshence the sponsor is best placed to ensure that the business case supports corporate
objectives.
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5.1 Business CaseInvestment Appraisal
5 limitations of Investment Appraisal techniques
Financial methods will not address:-
1. Operational Survival - a project may be needed for operational survival, e.g.
cheaper manufacturing costs, millennium bug.
2. Competitive Survivalmay need to defend or improve competitive edge to survive,
regardless of financial benefit. Or an new opportunity may arise, = life tag.
3. Quality of Estimates. The investment appraisal techniques are based on estimates of
future in terms of sales, revenue, savings etc. These are a judgement of people and
may not reflect actual outcome.
4. Environmental Factors - Financial methods cannot determine factors in theenvironment that may change. PESTLE, legislations, obsolete technology.
5. Stakeholder influencenot all stakeholders may be interested in financial aspects,
for instance a new hospital.
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6.1 PROJECT LIFE CYCLES
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6.1 PROJECT LIFE CYCLES
Benefits MMERR
Manageable Chunks
Major Review Points
Estimating Accuracy
Rolling Wave Planning
Risk
MMERR
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6.5 Handover and Closeout
Explain the Handover Process
1. Marks the end of the Implementation stage, where the project enters into itsoperations environment. The process of handover starts with defining a plan which
will state the process, objectives and may include training, support.
2. The achievement of deliverables are demonstrated, making sure they match
acceptance criteria and that they are accepted.
3. The sponsor formally accepts responsibility for the project and must then ensure
business benefits are achieved.
4. Deliverables are physically delivered to operations and users, including
documentation and are accepted.
5. Training and Support Infrastructure are set up and provided. Ensure product start up
and commissioning.
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6.5 Closeout
Finalising all project matters.
Carry out Post Project Reviews.Re-deploy team
PM Should:
Surplus material should be disposed of
All contract and Purchased orders are finalisedAll project accounts are finalised
All documentation archived
Carry out Post Project Reviews.
Performance appraisal of team.
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6.6 Project Review
Checks likely or actual achievement of objectives specified in the PMP and benefits in
business case.
Reviews include : Gate Reviews, Post Project Reviews, Benefits Realisation Review
Post Project Review - Independent facilitator chairs
HELPP
History - what went well, what went wrong
EstimatesHow did actuals compare with plan, how good were estimates
Lessons LearntDraw up lessons learnt, recommendations for improvements
Performanceagainst success criteria and
how well did team performrecognition
Performance of PM - Risk, change control, quality, co-ordination
T
Q C
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6.7 Organisation Structure
Functional Organisations
Advantages
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6.7 Organisation Structure
Project Organisations
Advantages
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6.7 Organisation Structure
Matrix Organisations
Advantages
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6.7 Organisation Structure
Strong Matrix Organisations
Advantages
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6.8 Organisational Roles
5 ROLES IN PROJECTS
Corporate Management
Sponsor
PM
Users
Team
Authorisation
Risk Exposure check
Strategic Overview
Owns Business Case
Delivering Benefits
Link to Corporate management
Controls & Coordinates
Produces deliverables
Achieving TQC
Requirements & DefinitionProduct Review
Does the work
Help plans the workfeas report.
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6.10 Governance
Ensures that an organisations project portfolio is :-
aligned to organisations objectives
delivered efficientlysustainable
Governance of Project Management is a subset of Corporate governance
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