1. International Business Solutions
Project management
-an initial briefing
At the end of this chapter you should be able to:
Describe the driving forces behind the development of project
management
Define what is meant by the term 'project management'
Identify the characteristics of a project
Discuss the relationship between the four project constraints
Discuss the importance of the project life cycle
Identify the common stakeholders to a project
2. Introduction
Everyone at some time in their life will be involved in a project of one kind
or another. in fact, the reality is that most of us have been involved in
many projects for some considerable time, and will face many more in the
future.
Projects come in all sizes and each project brings with it a differing
degree of complexity requiring a specific set of team and management
skills that will underpin the project's success.
3. Introduction
The evolution of projects has increased exponentially to the point where
the discipline, methods and tools behind projects (and their management)
have reached huge heights of application, sophistication and popularity.
What is the drive for this development and interest. Is it due to:
advances in technology?
increasing influence of market pressures?
global competition and the need to remain competitive?
the need to deliver products or services that meet certain benchmarks,
quality assurance or best practice standards?
greater emphasis on business producing cost-effective solutions?
the constant cycle of change that business operates within?
The reason should be obvious – change must be managed if the
project is to succeed.
4. Demystifying project management - 1
Modern competition is rapidly becoming focused on three critical issues:
the timing of decision making
the costs driving the decisions
the impact that change will have on these decisions
To deal with these pressures, project management has grown in importance
and stature as a toll for successfully dealing with time, cost and change
-driven decisions.
5. Demystifying project management - 2
So what is project management? Let's start with a simple explanation. Think
abut any project (big or small) you are involved with and answer the following
questions:
What type of information do you need to complete the project?
What type of decisions will this information produce throughout the project?
What actions will these decisions result in?
(Answers??)
the work required to be completed (let's call these project 'tasks');
who would be doing that work (let's call these project 'resources');
the cost of the work being performed (let's call this project 'costs');
how well the work had to be completed (let's call this project 'specification').
7. The tasks – more than just the work
required
All projects involve delivering something (often referred to as 'outcome',
'asset', 'deliverable' or 'solution') to someone (often referred to as the
'client').
To achieve this 'something', a range of work will need to be first identified
and then performed. But (and it is a big but) consider the additional task
information you need before you 'go live' on the project given in the next
slide.
8. Additional task information
Will all this work be performed simultaneously or will some follow earlier
completed work?
How long will each component of work take (commonly referred to as
duration)?
How accurate will these duration estimates be?
What impact will this work duration have on the project's planning,
execution, management and completion activities?
Will all the required work be correctly identified and scheduled?
What risk factors might impact on the start or finish of the scheduled work?
Does the completed work comply with the required specification or
standard?
9. The resources – more than just the
workers
A considerable amount of resource information is required concerning the
work needed to complete the project. Consider the following for starters:
Exactly what resources are required?
Are these resources available to be assigned to the project tasks?
Have these resources got the required skills, authority and power (if
people), the right technical features (if materials)?
Do any of the human resources need training in particular skills?
How much do these resources cost?
Are there any substitute resources?
Will risk be a factor in assigning and tracking the performance of these
resources?
What impact will these resources have on the project's planning,
execution, management and completion activities?
10. What exactly is a project?
To some people, projects are a little like a puzzle – too many pieces and not
enough clues. A project can be defined in terms of a number of criteria
which collectively distinguish it from an everyday activity performed by an
individual or organisation.
Client or Logical task
stakeholders Temporary
dependencies
Agreed
budget
Shared
available and Initiated and Agreed start
committed managed to and finish dates
resources succeed
Agreed
specification
An agreed and
Discrete organisational measurable objective,
resource (and management deliverable or outcome
structure)
11. Essential project characteristics - 1
Criteria Explanation
An agreed and Projects 'create' and 'hand over' a tangible result that addresses a
measurable objective, problem or perhaps an opportunity.
deliverable or outcome
An agreed budget In most projects, the budget is a finite resource. While contingent
funding (in case the estimates fall short of true costs) should be
available, the greater majority of projects will be constrained by limited
funding.
Discrete organisational While many organisations operate by habitual practice and follow what
resource (and has worked before, the creation and management of a project should
management) structure be based on an appropriate organisational structure suited to the
particular project.
Client or stakeholders All projects are owned by their ultimate client (the party the final
deliverable is handed over to) and all the other parties to the project
(staff, contractors, professional advisers, management, suppliers).
Temporary Projects are not enduring. That is, they do not go on for ever (though
many have been known to drift off target and get lost)The very nature
of the project (deliverable) dictated that it must end.
12. Essential project characteristics - 2
Criteria Explanation
Shared, available and Projects require a pool of resources to achieve agreed deliverables.
committed resources These could include any of the following: people, materials,
equipment, facilities, tools, information, systems, policies, procedures,
techniques, finances and knowledge, among others. These resources
are often deployed on other projects and/or their normal work duties,
which brings another degree of complexity and management to the
project.
Agreed start and finish Projects (should) have target start and finish dates that define (and
dates constrain) the project window. That is, the project has a finite life span.
An agreed specification The work performed on a project will not be completed 'on a whim'. It
will comply with a standard, a performance measure or a benchmark
of some kind that explicitly defines and clarifies the exact nature of the
work to be performed.
Logical task All the required work will probably not be performed at the same time.
dependencies Some work will precede other work, some might occur concurrently,
while other work will follow earlier work. Again this sequence must be
planned and managed if the project is to succeed.
Initiated and managed to Given the potential complexity in managing task and resource
succeed decisions, a dedicated set of management and project competencies
is required if the project is to succeed.
13. What exactly is management?
All managers perform four accepted functions given in the table below
Function Explanation
Planning These activities can include defining goals, designing
strategies and developing plans to achieve the goals
Organising These activities can include determining what tasks have to
be performed, who will do them, what decisions need to be
made and who reports to whom
Leading These activities can include motivating subordinates,
directing others, resoling conflicts, delegating and using the
most effective communication channels
Controlling These activities can include monitoring all the activities to
ensure they are being accomplished as planned while also
taking into account any significant deviations that might
need correcting
14. What then is project management?
Bringing two words project and management together, what progress have
we made?
Project management refers to management of activities that lead to the
successful completion and outcomes of a project.
The project requires the application of management principles in planning,
organising, controlling and leading the resources of the organisation to
realise a one-off specific goal.
The management process brings together and optimises the necessary
resources to complete successfully the project as scheduled (and agreed)
15. What then is project management?
Management projects differs somewhat from conventional management
assignments with the key difference being that a project is a limited concept
that is usually more narrowly focused than traditional management goals.
Other ways to define project management are:
The process of identifying, planning, scheduling and controlling the true
requirements of the project and ensuring the agreed trade-offs
The management of change
Scheduling solutions to problems or opportunities
The science of disciplined logic
16. True project constraints
Common project constraints - 1
Constraint Key points
Time Each project will probably have a prescribed window from the initial idea
stage through to the completion stage during which all stages and
project work must be successfully completed
If there is no latitude or freedom in this time window, the project is said
to be overdetermined (in this constraint)
The amount of time available will determine the project's schedule of
work
Projects can be completed ahead of time/schedule, on time/schedule or
behind time/schedule
The amount of time available for the project can have a direct and often
immediate effect on the project's other constraints
Cost Each project should have a budgeted and approved cost to fund the
required work to the required standard during the required time allowed
Some projects are underfunded, some excessively funded, while others
are adequately financed
Remember too that the finance available will impact on the other three
project constraint
17. True project constraints
Common project constraints - 2
Constraint Key points
Specification Each project should specify the exact standard of work required for all
the work scheduled to be performed
The specification should not contain any loose terms, ambiguity or
missing requirements
The specification should state the standard of the end products
whenever possible in quantitative terms, including tolerances,
performance finish, reliability and maintainability
As with the two earlier constraints, the specification can also impact on
time, cost and resource constraints
Specifications sometimes change once the project is under way,
causing delays and increases in costs
Resources Finally, each project requires that an appropriate range of resources be
assigned to complete the scheduled work
Some human resources might require additional training
Resources are often over-allocated, causing scheduling conflicts, delays
and cost over-runs
18. Fine-tuning the project outcome
These four constraints form the parameters of the project. That is, collectively
they determine the project's optimal outcome as depicted below,
Time
Optimal
Cost Project Resource
outcome
Specification
19. Constraint interdependences - 1
Nothing happens in a project that isn't related to one or more of these four
constraints as shown below,
Constraint If increased If decreased
Specification Additional finance could be Money could be saved through the
required to fund the new features down-graded specification.
and/or the resources required. Resource assignments could be
Better skilled resources may be changed to allow less skilled
required. resources to complete the tasks.
More time may be needed to Time may be saved by taking less
complete th project. functionality from the project, though in
some cases the less skilled resources
might add time to the project
Time Resources could be reassigned Increased resources will be required to
to other projects. compress the work timeline.
Scheduled tasks could be More costs will be incurred to fund the
delayed. compressed schedule.
Costs could increase due to The specification may come under
prolonged work activities. review as the project team looks for
More time could prove the ways to save time.
catalyst in fine-tuning the
specification.
20. Constraint interdependences - 2
Constraint If increased If decreased
Budget Higher skilled resources could One immediate way to save money
be deployed. is to shed resources.
More resources could be Another way is to downgrade the
assigned which could shorten specification.
completion times. With less money, the timeline might
Additional funding could allow shorten if less work is now required,
for the upgrading of the original or it may lengthen if the resources
specification. now require additional time to
complete all the work with fewer
resources.
Resources With more resources, more If resources are removed, the time
money might be required. required to complete the project will
Completion times could be probably increase.
shortened. Money might appear to be saved,
With the greater number (and though the additional completion
diversity) of resources, time may well erode any savings.
opportunities might also exist to The agreed specification may not be
upgrade the specifications. completed to the same high level
with fewer resources available.
21. Constraint interdependences - 3
Think back to the beginning of this section. The claim was made that
nothing happens in a project that falls outside these four constraints.
While some would refute this claim, many others support the notion of
interdependent constraints as they create and manage their projects.
Failure to identify and 'massage' these constraints accordingly can lead
to any of the following problems:
Project 'drift', where the project loses direction and commitment.
'scope creep', where the deliverable agreed at the start of the project
suddenly changes to another requirement.
'premature termination' resulting in the project (successful or
otherwise)being shut down.
22. The phases of a project –
its life cycle
To expand our knowledge of the essentials of project management
further, we identify the four stages that signal the project's evolution.
Irrespective of what the project is, each project progresses through a
series of stages from beginning to end.
The 'staged' project evolution is know as the project life cycle.
In the following four slides a variety of non-project life cycles is discussed
first.
23. Industry life cycles
The marketing life cycle
In a marketing context, products and services follow a set evolution from
their initial research and development stage to their later decline and
potential disappearance from the market. These stages are identified below.
Stage No. Stage Explanation
1 Research and development Marketing research is conducted to uncover customer
needs. Products and services are then designed
around those needs.
2 Introduction The product or service is released n the market for
sale.
3 Growth As sales increase, prices fall, features improve and
competition increases.
4 Maturity Sales begin to level out as the market reaches
saturation point
5 Deterioration Sales begin to fall as newer products and services
erode the sales and customer base.
6 Decline Sales have fallen to the point where the product or
service may be withdrawn from the market.
24. Industry life cycles
The economic life cycle
In economic terms, the business cycles, which are changing patterns of
economic growth over time, pass through known stages. The table below
depicts this cycle as consisting of three stages.
Stage No. Stage Explanation
1 Prosperity This stage is characterised by low unemployment, high total income
and high purchasing power. There would also be signs of economic
growth, optimistic consumers and a stimulated economy.
2 Recession During recession, increased unemployment, falling total income,
together with reduced purchasing power, would be evident.
Increasing price awareness, increased savings and conservative
spending patterns would be apparent.
3 Recovery The recovery stage would see unemployment beginning to drop,
consumer confidence returning and previously postponed
purchases being now bought.
25. Industry life cycles
The construction engineering life cycle
Naturally construction and engineering projects also pass through
project phases, as shown below,
Stage No. Stage Explanation
1 Initiation The client and construction company agree on the
project's outcome. Risk assessment, feasibility studies
and financial modelling will occur.
2 Design Detailed designs and costing are finished.
3 Implementation Construction commences.
4 Handover The deliverable is completed and handed to the client.
26. Industry life cycles
New product development life cycle
Even new product development projects can be investigated through the life
cycle analogy, as illustrated below,
Stage No. Stage Explanation
1 Idea generation An idea is generated – from a range of sources
including the client, research, market conditions or
competitive behaviour.
2 Product definition The idea is refined to the point where it can be
precisely defined, which will include initial costings
and designs.
3 Product engineering Following reviews, the idea is developed into a
'working model' for further testing and evaluation.
4 Pilot start-up Market-based research and sampling will occur to
ensure the product or service will be adopted by the
market. Pre-production setup will also take place.
5 Manufacture Fullscale manufacturing occurs in readiness for a full
market release and sales.
6 Marketing In line with the product launch, fullscale marketing
activities commence.
27. The project management life cycle
There are a number of stages in project management – its life cycle – with
each stage integral to the overall success of the project.
The obvious question would be: How many stages are there and what are
their names?
This is an area where few project management authors agree.
Some believe that a project evolves through the 12 stages displayed on
the next table.
28. A 12-stage project management
life cycle
Stage No. Stage Explanation
1 Definition An idea is generated that forms the basis of the project deliverable.
2 Feasibility The idea is fully researched to identify the costs, benefits, risks and
other impacts generated or have to be resolved.
3 Initial specification Tentative specification ('scope of works') is prepared identifying the
resources required.
4 Estimation The project costs are determined.
5 Proposal A formal, thoroughly researched and documented proposal is put
forward for consideration (sometimes called 'business case').
6 Planning Work packaged to be performed on the project detailed and
scheduled.
7 Design Designs finalised prior to implementation (the production stage).
8 Implementation Work is commenced on the projec.t
9 Installation On some projects, the deliverable may need to be installed in the
client's premises.
10 Commissioning The formal stage where deliverable is 'handed over' to client.
11 Run-up Initial full scale operation (testing) of deliverable under normal
working conditions.
12 Review A complete project audit from stage 1 to stage 12.
29. A 4-stage project management
life cycle
With so much discrepancy over the number of stages in a project's life
cycle, it is proposed to reduce it to only four stages.
Why only four?
Simple, with four stages all the project work can be captured and more
importantly each stage can be managed.
This ensures that the project is completed as scheduled.
The four stages are summarized on the next slide.
30. A 4-stage project management
life cycle
Concept Schedule Progress Outcome
Time
As the project evolves, each stage has its own particular characteristics
representing a mix of the four project constraints cited earlier:
Time
Cost
Specification
Resources
31. The four stages to a project in
more detail
Stage No. Stage Explanation
1 Concept Thin of this as the 'idea' stage where the project is conceived.
Preliminary goals are discussed, problems raised, potential benefits
identified, alternative approaches researched and provisional costings
determined.
2 Schedule Following the decision to proceed (in the concept stage), all the work
required by the project is scheduled. Objectives are finalised,
resources are assigned, quality is signed off n, final costings are
approved, the timing agreed and all other administrative matters are
determined.
3 Progress The project has commenced during this stage and the emphasis is
moved to tracking actual progress using the schedule developed in the
previous stage as the comparison point of reference. All work is
monitored, controlled and corrected where necessary with schedules
being reviewed, revised and updated as required.
4 Outcome Finally, the project has been completed with the deliverable handed
over to the client. Resources are disposed of or reassigned, the
project is evaluated, reports are written and presented, and the
administration arm of the project is closed.
32. The project life-cycle inputs
Key concept inputs Key schedule inputs Key progress inputs Key outcome inputs
Project selection Project variables Ongoing progress Document client
Problem or opportunity reviewed and redefined review and control acceptance
trigger Breaking down the Progress, status and Document project
Alternative solution project into activities forecast reports outcome
discussed Schedule developed, Manage change Conduct project
Consistent with revised and baselined requests evaluation and audit
organisational Estimating contingency Managing contracts Contract closeout
capability factors Dealing with team Team and stakeholder
Project benefits Identify critical path issues de-brief
identified Source and assign Corrective and/or Communicate lessons
Critical success factors resources reinforcement action learned
identified Quality measures in Managing escalation Resources reassigned
Risks identified place issues Retentions, certificates
Expectation agreed Procurement Managing meetings and warranties
Project sponsors specifications finalised Controlling and Archiving and recording
located Contracts formulated reporting progress Celebrate team's
Essential stakeholders Control measures Explicit decision to success
confirmed identified commit more time, Decision to close out
Explicit decision to Explicit decision to resources and money in
commit more time, commit more time, proceeding to next
resources and money resources and money in stage
in proceeding to the proceeding to next stage
● next stage
33. The benefits of using project
life cycles
The project lifecycle :
provides an overriding narrative of the total project;
limits and orders the project's progress through clearly defined stages (some
might call these decisions gates);
provides points of reference against which stakeholders can assess progress;
enables an overview of the total project to be maintained and in perspective;
allows for all project tasks to be correctly identified and partitioned under the
appropriate stage of work;
fosters the sequential management of the project schedule through all stages;
promotes a sense of urgency throughout the schedule;
clearly identifies the stage where different resources will need to be procured;
works towards integrating all the project activities along a continuum;
provides tangible evidence of the planning process;
acts as a guide for all project activity;
assists in detailing responsibility among project stakeholders;
divides the project into manageable portions.
34. The physical output of the project
life cycle
Benefits aside, each stage of the life cycle also has a number of specific
outputs that are unique (in most cases). A preview of these is provided in
the Table below.
Concept outputs Schedule outputs Progress outputs Outcome outputs
Client brief Stage, task and Performance Handover
Business case milestone detail – standards Acceptance testing
Feasibility study including duration, Inspection and Project audit
Risk assessment sequencing and monitoring/testing Completion checklist
Scope resources plan Feedback and
documentation Revised timelines Purchase orders evaluation
Stakeholder (PERT/Gantt) Performance reports Approvals
analysis Revised cashflows Change of scope
Budget forecasts and budgets requests
Procedures and Resource matrix Progress claims
policies Baseline project Corrective action
Meeting minutes schedule Contracts
Approvals Approvals Revised schedules
Approvals
35. The stakeholders to the project
Stakeholders are the parties with a vested interest – positive or negative
in the success (or otherwise) of the project.
Not every stakeholder must actively support and promote the project's
success.
While this would be appreciated by other stakeholders, reality and case
studies suggest that each project has its mix of champions, workers and
protagonists.
One of the key roles that the project manager performs is to:
Identify all stakeholders
Determine their needs and expectations
Influence and manage those expectations
Project stakeholders on any project are found internal and external to the
project and come under different names, e.g. owners, suppliers, etc
36. Project stakeholders
Key stakeholder Key roles performed
Sponsor – initiates the project Determines project's relevance to organisation
And supports the team's most senior Champions project from a position of seniority
members Acts as an inspirational figurehead
Helps to finialise top level goals
Works to minimise operational constraints
Project steering team – a group of Aligns projects to corporate objectives
project sponsors who monitor the status Provides clear strategic direction where required
of all active projects Prioritises active projects where conflicts exist
Project manager – leads the project Provides and manages the project schedule
team and delivers the project goal Motivates, develops and rewards the team
Communicates project information
Monitors and reviews progress
Team member – performs specific Provides technical skill and application
actions required in the project Responsible for project task performance
Takes directions from project manager
Client – person owning the project Provides direction for project manager
Influences how outcomes will be achieved
May initiate project changes
Supplier – delivers the goods and Delivers supplies to the project as required
services by the project Compliance with contractual conditions
Provision of logistical support
37. The stakeholders to the project
More than merely identifying each stakeholder, each stakeholder's needs
(stated or unstated) and particular interests must be identified prior to the
start of the project.
This enables information and decisions to be relevant and directed towards
the appropriate stakeholder – particularly in times of delays, cost over-runs,
variations and other escalating issues.
38. The stakeholders to the project
You should research the following:
Understand each stakeholder – What interests in the project do they
have? How involved will they be? What information do they need? How will
they make decisions?
Understand the environment in which they operate - Who are their
allies and enemies? What influence do they have? What are the 'right'
channels of communication? What protocols should be observed? How
much authority and power do they have?
Understand their information needs – Different stakeholders will
require different types, amounts and timing of information. Some might want
'progress' information on the project up to a point in time. Others might
require 'status' information or forecast completion data.
39. The stakeholders to the project
You should also research the following:
Understand how this information will be presented – That is,
what is the preferred communication channel of each stakeholder?
Formal project reports (commonly referred to as 'progress', 'status' and
'forecast' reports
Project meetings
Email
In person
Newsletters
Social gatherings
Fax
Phone
40. Summary
The study of project management borrows heavily from a number of
associated disciplines, including science, management, engineering,
business, human resource management, marketing and finance.
Modern-day project management provides the necessary tools, methods,
processes, structure and guidelines in creating and managing projects.
Managing projects is different from everyday management activities due to
the discrete characteristics of projects.
Recall that projects are time, budget, specification and resource constrained,
involve diverse stakeholders and require a number of connected tasks to be
completed.
Project management enables a 'measured' trade-off between task and
resource decisions to be executed.
It provides the framework or life cycle for completing the project goal and
objectives as agreed by all stakeholders
