Summary - Project Management

PROJECT MANAGEMENT A1:

Work Programme Breakdown:

WEEK CHAPTER TEXTBOOK PAGES
1 Chapter 1: Introduction to Project Management 3 – 30
Chapter 2: Project Selection through Strategic Alignment 39 – 61
2 Chapter 3: Organisational Project Capability 67 – 87
Case Study -
3 Chapter 4: Project Initiation and Definition 93 – 115
Chapter 5: Project Planning PART ONE (OWN NOTES) 119 – 154
4 Chapter 6: Project Planning PART 2 163 - 189
5 Lecture Notes: Cost Estimation -
Chapter 11: Stakeholder Management 317 – 336
6 Case Study -
7 Chapter 10: Project Risk Management 291 - 311
8 Chapter 7: Crashing a Project (OWN NOTES) 193 - 219
9 Chapter 8: Project Execution, Monitoring, and Control 227 - 253
10 Chapter 9: Project Closure 263-282
11 Chapter 12: Project Communication 343-368
Chapter 14: Change Management 405-432
12 & 13 Chapter 15: Leadership 433-461
Chapter 16: Programme and portfolio management -

, WEEK 1:

Chapter 1: Introduction to Project Management:

Project Management

What makes project management different from other management practices or activities? Projects are different because:
Deliver on time, within budget; Different quality standards; Different stakeholders; Limited resources.

1.1 Definition of a Project:

“A project is a complex, non-routine, once-off, temporary effort undertaken to create a unique product, service, or final
outcome. It requires the application of relevant knowledge, skills, tools and techniques in order to meet or exceed
stakeholder needs and expectations, as stated by the project objectives. It is furthermore limited by time, budget, resource
and performance specifications designed to meet customer needs.”

Classifying Projects and Types of Projects:

Consider four unique needs (criteria) of a project in terms of:

1. Industry: manufacturing, IT

2. Project size: scale, complexity

3. Project scope: deliverables

4. Project application: change intervention, product development

Project Types:

1. Projects (refer to definition) – For example: Nelson Mandela Bridge (R+- R120 Million).

2. Megaprojects: – For example: Staging of Soccer World Cup (R30 bn spent by ZA government). Large scale
investment project (> $1 billion / R13 billion); Large impact on communities, environments and budgets; Large risk;
Could be divided into major and minor projects.

3. Programmes – For example: Nedbank Wellness program. ‘A group of related projects, sub-programs, and program
activities that are managed in a coordinated manner to obtain benefits not available from managing them (the
projects, sub-programs and program activities) individually’. Aim toward some strategic objective.

4. Portfolios: ‘A component collection of programmes, projects, or operations managed as a group to achieve
strategic objectives’. A portfolio organises a series of projects and/ or programmes into a single portfolio, which has
strategic implication and a direct impact on the organisation and its future direction.

1.1.2 Project Characteristics:

1. Each project has a clearly defined objective (SKA).

2. A project is conducted through a series of interdependent tasks.

3. A project uses different resources to complete the tasks.

4. A project has a specific time frame and limited life span (King Shaka International Airport – 2010 soccer).

5. A project can be unique and can be a once-off event.

6. Each project has a customer, also known as a sponsor.

7. A project has risk due to the level of uncertainty.

8. Quality, scope, cost and time are equally important to a project.

,1.1.3 Project Life Cycle:

STAGE 1: INITIATING & DEFINING STAGE 2: PLANNING STAGE 3: EXECUTING STAGE 4: DELIVERING
& CLOSING
- Define problem and cause. - Formulate Objectives. - Authorise & - Project Transfer.
- Analyze context. - Develop schedules & Implement. - Release resources.
- Set overall goal. budgets. - Monitor & - Lessons learnt.
- Formulate specifications. - Establish resource Control. - Closure.
- Establish tasks and needs.
responsibilities. - Identify risks.
Key participants commit to it in broad All stakeholders accept the Customer to accept Formal acceptance of
terms. entire detailed plan. project deliverables. the outcomes.

1.2 Project Management:

A project manager needs to fulfil the management tasks of the entire life cycle, consider importance of different
stakeholders and manage constraints. Project management is the process of applying knowledge associated with the
planning, organising, leading and controlling of required project tasks and activities, effectively and efficiently, to achieve
the set project objectives.

Project Success: Completing a project within budget, On schedule (time), Within scope, Meeting quality standards,
Optimising resources, Minimising or removing risks, Optimising customer satisfaction, And maximising stakeholder
support.

1.2.2 Project Management Constraints (“Traditional”):

• Scope – Work to be done to produce all project deliverables

• Time – Start and end date / time for each activity & task

• Cost – Agreed payment for each acceptable project deliverable

• Quality - Expectations of the acceptable specifications for the project

Further Constraints Influencing the Project:

• Risks – Uncertainty = risk. + and – impact on project

• Resource constraints – Availability or unavailability of people, equipment and material needed to complete the
project

• Customer satisfaction – Good working relationship to ensure optimum interaction, communication and
performance

• Stakeholders – Optimise the working relationship amongst all stakeholders, and to limit negative conflict

1.3 A Historical Perspective of Project Management: (Not for test Purposes):

1.4 Project Management Methodologies:

Different ways to manage a project - All depends on the industry and what type of project you are managing.

Should set out in precise terms: different inputs, outputs and performance criteria; standard operating procedures; different
roles and responsibilities; workflows, control and evaluation systems. Two broad categories: Traditional and Agile.

1.4.1 Traditional Methodologies:

Linear, non-iterative approaches. Predetermined sequence of steps or stages - each stage starting only once the previous
stage has been completed.

REQUIREMENTS → DESIGN → IMPLEMENT → TEST → OPERATE
Defined in conjunction with System developed. Tested before handover
the client. to client.

, Types of Traditional Methodologies:

1. Waterfall Methodology:

Client must have clear idea of requirements upfront, If not…necessitate changes as the project progresses or when final
product is delivered => costly redevelopment. Benefit – Not much iteration => requirements and output specifications
cannot change. Projects are delivered according to prescribed specifications = client satisfaction and project success.
Greater certainty i.t.o. work allocation, scheduling and budgeting. Risk is minimised as errors are identified and dealt with
prior to implementation. Structured – monitor and assessment of project performance easier. Technical documentation
is NB – Better post-handover development easier. Negative – No innovation / iterations.

2. Precedence Diagramming Method (PDM): Used to construct network diagrams. Nodes = activities, arrows = paths.
3. Critical Path Method (CPM): A critical path is the sequence of project network activities which add up to the longest
overall duration.
4. Critical Chain Project Management (CCPM): Resource requirements across tasks together with the sequence and
logical dependencies between tasks.

Buffers in CCPM:

- Project buffers – Between the final task and completion date. 50% of safety removed
- Feeder buffers – Included on non-critical paths feeding into the critical chain
- Resource buffers – Time buffer added directly to a scarce resource, or Time buffer that is added to an activity
immediately preceding that which requires the use of a scarce resource.

5. Program Evaluation and Review Technique (PERT): Extension of CPM: Use three estimates to determine an expected
duration. Optimistic, most likely and pessimistic estimations.
6. PRINCE2 Methodology:

An organised and controlled start – upfront organising and planning before the project commences. An organised and
controlled middle – ensuring projects are organised and controlled. An organised and controlled end – ensuring that a
project is completed in a controlled fashion.

PRINCE2 Processes:

• Directing a project – Process runs from start to end; relates to project board

• Starting up a project – Considered at the pre-project level; ensure prerequisites are in place

• Initiating a project – Consensus on justification; document business case; agree on resource allocation for first stage

• Managing stage boundaries – Provide board with key decision points to decide on project continuation

• Controlling a stage – PM checks whether project/stage is on track

• Managing product delivery – Ensures planned products are developed, quality standards are met, and sign-off
obtained

• Closure – PM closes project, checks deliverables, obtains client satisfaction, and hands over product

1.4.2 Agile Methodologies:

The main types of agile methodologies include: Extreme Programming; Scrum; Crystal; Feature Driven Development;
Dynamic; Systems Development Method; Open-Source Software Development; Kanban.

Agile Core Aspects:

• Focus on iteration, adaptiveness, speed and customer inclusiveness from the outset. Taken from software
development – agile principles applied to other disciplines. A focus on individuals and interactions over processes
and tools. A focus on doing rather than documenting. A focus on customer inclusivity over negotiation. A focus on
responding to change over following a plan.

• Agile methodology is modelled for business contexts, which are uncertain, turbulent and subject to rapid change