KSB Group

Project Management Handbook

 Project Management Handbook 3

Dear colleagues,

We manage projects on a daily basis and aim to

be the leading, and best, supplier in our industry.
Through innovative projects, we not only provide
our customers across the globe with advancements
and improvements, but also implement these within
the KSB organisation itself. Our projects form part
of our strategy and, therefore, serve as a basis for
ensuring the success and safeguarding the future of
KSB. A crucial factor here is significantly improving
performance by way of professional project manage-
ment founded on outstanding employees who
appreciate the importance of both hands-on and
interpersonal skills such as communication and
credibility. KSB employees have all of these qualities,
and the present project management handbook is
designed to provide a shared platform for our joint
international work. This will help us face all future
challenges head on, such as meeting demands for
innovation and increasing the pace of change.

View each day as an opportunity to bring us closer to

our goal via integrated project management. Help us
set the benchmark in project management; we will
support you every step of the way.

Many thanks for your commitment!

The Board of Management

4

Introduction

The KSB project management handbook is a binding, inter-

national guideline for planning and carrying out projects
successfully. Certified project management at KSB is based
on specifications set out by the IPMA (International Project
Management Association), which has members around the
world. These associations serve as the main points of
contact for project managers working in the relevant
countries, for example, the Deutsche Gesellschaft für
Projektmanagement (GPM) in Germany, the Association
Francophone de Management de Projet (AFITEP) in France,
Project Management Associates (PMA) in India, the Project
Management Research Committee China (PMRC) in China,
and the Brazilian Association for Project Management
(ABGP) in Brazil.

Our handbook aims to uphold these specifications while

taking into account the unique situation at KSB. All appli-
cable documents and templates are available on the
Intranet to facilitate access.
 Project Management Handbook 5

Contents

The project management handbook is divided into the

following sections:

  1.0 T arget Group and Scope – For whom is the handbook

intended and are there any exceptions?
  2.0 Objectives and Benefits of Project Management
and This Handbook – What is the purpose of the
handbook?
  3.0 Project Process Model – How do we progress from
the initial idea to the project, the business operation,
and the benefits?
  4.0 Project Definition – What is a project?
  5.0 Project Organisation – Which is the right organisation
for my project and which roles and functions exist?
  6.0 Planning Assumptions – Which prerequisites and
standards have to be agreed upon?
  7.0 Project Tools – Which templates and tools are used in
projects?
  8.0 Quality Management in Projects – How can we
realise consistently high-quality projects?
  9.0 KSB Corporate Culture – How can we promote a
positive project culture?
10.0 Knowledge Transfer – How can we transfer the
knowledge gained from the organisation to the
projects and vice versa?
11.0 Terms, Functions, Glossary – Which terms do we use
and what do they mean?
12.0 Change Request Process in PM Handbook – How
and where can suggestions for improvement be
submitted?
6

1.0 Target Group and Scope

This project management handbook is a guide for KSB

employees who participate in projects.

1.1 Target Group

The following persons must adhere to the handbook:
• Members of steering and project committees
• Managers who are project sponsors, project chief
coaches, and / or clients of a project
• Programme managers
• Project managers and deputy project managers
• Subproject managers
• Employees assigned to work packages
• Process coaches for projects

1.2 Scope
Customer projects can be planned and processed differ-
ently.

The project management handbook specifies the general

conditions for all KSB projects (project management, tools,
project organisation, quality management, etc.).
Detailed measures and work steps as they apply to devel-
opment, IT, and other projects are set out in the relevant
regulations such as the PDP (product development process).
 Project Management Handbook 7

2.0 �������������������������������������������
������������������������������������������
Objectives and Benefits of Project Manage�
ment and This Handbook

This handbook aims to:

• E nsure that our projects are jointly implemented

successfully on time and within budget
• Implement a standardised project procedure that is
binding across the company
• Improve collaboration between all those involved in the
project
• Promote the transfer of knowledge gained in carrying
out projects to future projects
• Provide support for project team members wherever
necessary by acting as a source of reference to ensure
that the project is completed successfully

Benefits:

• Better
�����������������������������������������������������
������������������������������������������������������
use of time and resources used through system-
atic project management
• ����������������������������������������������������
Suitable
�����������������������������������������������������
methods, instruments, and processing guide-
lines provided from the outset of the project
• Standards that need not be re-established for each
project and, therefore, eliminate duplicate work
• Reduced conflict potential
• Cross-regional, international projects carried out
efficiently
8

3.0 Project Process Model

GO GO GO Kick GO GO
Project off Result Benefits

Clarification Project Realisation Business

Idea of + Control�
Targets Planning ling Operation

The project process model shows the project steps in

chronological order, from developing the idea through to
business operation (benefits). This handbook does not
cover the process of finding ideas.

3.1 "Idea" Phase

The ideas profile encompasses both background informa-
tion and a general outline of the objective and benefits of
the project.

The line manager responsible for clarifying the objectives

of the project gives the go-ahead to proceed to the "Clari-
fication of Targets" phase.

3.2 "Clarification of Targets" Phase

In this phase, the objectives of the project (approach,
result, and benefits) are described together with any
strengths, weaknesses, opportunities, and risks. The
planning outlay required in the next phase is also
estimated and a person responsible for planning is
appointed.

The project sponsor gives the go-ahead to proceed to the

"Project Planning" phase.
 Project Management Handbook 9

3.3 "Project Planning" Phase

During this phase, the project orderis maintained. This
generally contains the following:

Objectives, project scope, limitations, prerequisites,

milestones (derived from the work package plan), risks,
costs, investments, and profitability.

The project is approved when the project order is signed in

accordance with the defined approval procedure (see also
KSB guidelines).

3.4 "Realisation and Controlling" Phase

This is the phase in which the project is carried out.

3.4.1 Project Kickoff

When the project starts, project team members are
assigned to the work packages by name and, together
with the line managers, verify whether the project can
be carried out with the resources currently available. The
project team then draws up a contract that specifies the
rules for collaborating on the project.

3.4.2 Controlling
Status meetings are held regularly throughout the project
to verify whether everything is going according to plan.
The information gathered is summarised in a report and
presented to the project / steering committee. The
milestones defined during the project planning phase are
then approved and a strategy for dealing with deviations
from the plan developed based on these findings.
10

When the milestone at the end of this phase is achieved,

discharge is granted to the project manager and team,
and the project sponsor approves the results and carries
out a final profitability analysis. Finally a "lessons learnt"
workshop is held for the project sponsor and project team.

3.5 "Business Operation" Phase

The client and project sponsor must now establish whether
the benefit of the project is as expected. All managers are
granted discharge upon fulfilment of milestone require-
ments and this is documented. Should the targets not have
been reached, further measures must be defined.

4.0 Project Definition

A project is a one-time process comprising agreed and

managed activities, with start and end dates, that are
carried out to meet a defined objective.

The following criteria must be defined for our projects:

•  bjective
O
• Scope and limitations
• Time (total time required, time required for each phase)
• Organisation
• Total costs
 Project Management Handbook 11

The project starts when...

• ...the mandate has been officially handed over to the

project manager.
• ...the project order has been signed in accordance with
the defined approval procedure.

5.0 Project Organisation

5.1 Functions and Roles in the Project Organisation

Below is a list of the most important roles within project

management:

• Person responsible for the work package

• Project sponsor
• Client
• Steering committee
• Line manager
• Work package staff
• Project committee
• Project manager

A brief description of the functions, tasks, and areas of

responsibility is provided on the Intranet at: Projects ➜ PM
Handbook ➜ 11.0 Glossary and Functions.
12

5.2 Multi-Project Management

Multi-project management refers to controlling all of the

projects in a project portfolio. The project functions and
objectives need not be related (as opposed to programme
management, which is covered later).

A distinction is made between:

5.2.1 Strategic Multi-Project Management

"Doing the right projects" – effectiveness

 ompile an optimal project portfolio and concentrate on

C
the "right" areas:

• Classify projects (see 5.4, "Categorising Projects").

• Prioritise projects based on defined criteria (see 5.5,
"Prioritising Projects").
• Ensure that the project portfolio covers all risks in equal
measure.
• Explain the impact of changing the plan.

This can also be referred to as project portfolio manage-

ment.
 Project Management Handbook 13

5.2.2 Operational Multi-Project Management

"Doing the projects right" – efficiency

 perational multi-project management encompasses

O
general project management activities:
• Aligning scheduling and capacity planning requirements
(how persons working on different projects access shared
resources)
• Reporting and knowledge management
• Standardising project management (standards, methods,
tools)
• �������������������������������������������������������
Reviewing
������������������������������������������������������
uniform quality standards in project manage-
ment

At KSB, these tasks are performed in close collaboration

with project managers, the programme management
team, and the management.
14

5.3 Programme Management

Unlike multi-project management, a programme consists of

projects with interrelated functions and / or objectives. It is
a long-term undertaking and forms a consolidated unit.

The most important tasks performed by programme

managers include:

• C oordinate the entire programme [quality/time/cost/

personnel capacity (Q/T/C/P)].
• A ssist project managers during project planning.
• Coordinate the line organisation, projects, and
programmes (content, resources, deadlines, etc.).
• A ssess and control all important relationships between
the projects in a programme.
• Standardise information provisioning and reporting
throughout the project.
• Implement joint project marketing.

Further tasks and responsibilities are described in the

glossary at:
Projects ➜ PM Handbook ➜ 11.0 Glossary and Functions.

As opposed to multi-project management, a programme is

limited in time.
 Project Management Handbook 15

5.4 Categorising Projects

Projects are initially divided into two categories:

• "Must" projects
Due to legal amendments, for example
• "Can" projects
Due to strategies formulated
or efficiency enhancement programmes, for example

In a second step, they are divided further as part of a

morphological process for evaluating project benefits. The
template for this is available on the Intranet at:
Projects ➜ PM Tools.

5.5 Prioritising Projects

KSB do not currently have a comprehensive procedure in

place for prioritising projects.
16

6.0 Planning Assumptions

Planning and project-related assumptions and modifica-

tions must be documented.
The most important rules are provided on the Intranet at:
Projects ➜ PM Handbook➜ 6.0 Planning Assumptions.
Below are some of the rules that must be observed
for every project planned at KSB:

• In the planning phase, outlay is always calculated as a

net value, i.e. how many project days are required to
complete the project.
• Buffers are not factored into work package planning.
Buffers to compensate for any possible risks are
factored into the risk analysis.
• Outlay for decision makers and project management
must be planned.
• Line managers are responsible for ensuring that
resources are made available.
• Process coach must be employed for large-scale projects
or as required.

To be agreed before the project starts:

• T
 ime dedicated to the project each day in hours, e.g.
seven hours per project day; five project days equate
to one project week; 220 projects days equate to one
project year
 Project Management Handbook 17

7.0 Project Tools

Tools are a crucial aspect in ensuring that projects are

carried out in a standardised and structured manner. We
therefore have selected templates to be used as tools in
the project phases.

The current templates are available on the Intranet at:

Projects ➜ PM Tools.

The following graphic provides an overview of the most

important tools and templates assigned to the project
process model.
18

Overview of Essential Project Tools

GO GO GO Kick GO GO
Project off Result Benefits

Clarification Project Realisation Business

Idea of + Control�
Targets Planning ling Operation

Clarification of
Ideas Profile Project Order
Targets

Milestone Trend
Analysis

Cost Trend
Analysis

Stakeholder Analysis

Work Package Structure

Work Package Planning

Resource Planning

Risk Analysis

Project Organisation

Profitability Analysis

Team Contract

Preparation for Decision/Change

Request/Change Request Scope

Project Review

Lessons Learnt

Project
Kick Approval Conclusion
of Project and Approval
off
Results of Benefits
 Project Management Handbook 19

8.0 Quality Management in Projects

Quality management aims to ensure that both the project

(reliability of project processes) and product (project result)
exude a high level of quality. Since each project generally
involves different tasks, new quality management measures
must be defined in each case.

To improve the project quality, project management

methods and project tools are implemented throughout
the entire project process. This project management
handbook summarises the way in which projects are
carried out at KSB. Reviews and "lessons learnt" workshops
ensure that the knowledge gained during a project can be
applied to the continuous improvement process. Employees
responsible for managing projects can participate in
project management training courses and certification
programmes.

The quality management methods defined at KSB are

implemented to attain the product quality required
for projects. All key project variables (quality/time/cost/
personnel) are also constantly monitored as part of project
management. Professional project planning must be
implemented in all four of these areas to identify any
20

deviations, which are then counteracted to ensure that the

client's requirements are met on time using the resources
agreed to be made available. Checks must be carried out
regularly throughout the project to ensure that everyone
involved is still working towards the objectives defined
during the project planning phase and that the client
requirements and planning assumptions are still valid. Any
decisions requiring the project order to be changed must
be documented in the project handbook.

An overview of the quality management measures is avail-

able at:
Projects ➜ PM Handbook ➜ 8.0 Quality Management in
Projects.

9.0  SB Corporate Culture – Values and Behav�

K
iour in Projects

Project management is subject to the same basic principles

as general management and teamwork at KSB. The current
version of these principles and their underlying values as
well as examples of optimal behaviour are described in
detail at:
About KSB ➜ Group.
 Project Management Handbook 21

9.1 Factors of Success in Projects

What Makes • Content

a Team • O bjectives
Task • Distribution
Successful • Structure

Self- Perception
Perception by Others

Individual Team
• Values/
Focus • Roles
• Role • Management
• Attitude Toward • Values/Guiding
Resolving Conflicts Principles
and Developing • Cooperation
Solutions

The project manager (and, if necessary, a process coach)

checks whether the team has considered all of these
factors and ensures that each is balanced throughout the
project, since any deviation from the target compromises
the end result.

Further information is available on the Intranet at: Projects

➜ PM Handbook ➜ PM Tools or at
Staff Infoboard ➜ Development and Training ➜ Change
Management ➜ Checklist for Discussing Conflicts.
22

9.2 Rules for Collaborating on Projects

In order for a project to be successful, rules that govern
communicating, collaborating, and resolving conflicts must
be defined.
Definitions, checklists, and explanations are available at:
Projects ➜ PM Tools.

10.0 Knowledge Transfer

This involves maintaining, sharing, and furthering experi-

ence and knowledge gathered during projects.
Knowledge providers supply recipients only with the
know-how that will be required by the company in future
or may prove to be strategically relevant.

The processes described below must be complied with

to ensure that project management in the organisation
continues to advance.
This requires that employees and managers receive
ongoing training in particular.
 Project Management Handbook 23

10.1 Lessons Learnt / Review Processes

The methods used to review project experiences take into
account insights gained by project team members with
respect to:

• Factors of success / failure
• Difficulties and causes of errors

Objectives:

•  o detect patterns that occur when problems arise

T
• To develop factors of success
• To pinpoint areas of improvement
• To systematically avoid problems
• To deploy factors of success in future projects
• To increase transparency with regard to successes and
failures
• To leverage key knowledge gained from individual
experiences (not limited to a single project)
• To retain knowledge within the company
• To transfer know-how in the organisation

The lessons learnt / review processes serve as a basis for

developing employees and managers. To ensure that
company processes are revised quickly, employees must
draw on their experience when approaching, carrying out,
and planning projects.
24

10.2 Qualification
The training offered at the company is continually
updated based on insights gained from systematically
evaluating projects and taking into account tasks that
project managers and project management systems will
be required to perform in future. The HR Development
department must provide and develop requirements
profiles, selection procedures, and career opportuni-
ties. The KSB AG TrainingCenter manages the qualifica-
tion process (as well as the IPMA certification process) in
conjunction with the relevant international offices and
adapts it to the respective requirements.

The company's programme and multi-project managers

are responsible for developing the project management
systems further while accounting for the requirements of
the organisation and level of experience of the project
managers.

11.0 Terms, Functions, Glossary

Standardised terms are essential for compliant company-

wide project management. The most important of these
terms can be found in the glossary in German, English, and
French.
 Project Management Handbook 25

Functions are also defined in the glossary on the "Glossary

and Functions" tab page in the Excel list. Definitions help
to clarify the tasks, competencies, and responsibilities of
the persons who assume these roles.

The glossary is available on the Intranet at: Projects ➜ PM

Handbook ➜ 11.0 Glossary and Functions.

12.0 Change Request Process in PM Handbook

Should you have any suggestions on how to improve this

handbook or the templates, please do not hesitate to
contact us at any time:

1. Write down the change you would like to suggest.

2. Send it to the person responsible (listed on the
Intranet).
3. A decision will then be made by the committee.
4. Approved changes are implemented on the Intranet by
the committee.

The name of the person responsible can be found on the

Intranet at:
Projects ➜ PM Handbook ➜ 12.0 Change Request Process
in PM Handbook.
26
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