PROJECT

MANAGEMENT
Presented By Ochuko Aggreh

1
Introduction
• Your ability to demonstrate best
practices on the job is becoming
the standard to compete in today's
fast-paced workplace. This course
expands upon the basic concepts of
project management and covers in-
depth the essential elements of
managing a successful project.

2
Our Focus
• The course focuses on the
generally accepted practices of
project management recognized
worldwide. The course offers you
a standard-based approach to
successful project management.

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Course Objectives
• To provide participants with the
knowledge of project management
fundamentals and their benefits in
effectively managing projects.

• To provide participants with

practical skills, concepts and
principles of project management to
be adapted to specific project
environment.

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Course Objectives
• To help participants understand
better, the characteristics of
successful projects.

• To identify and perform the key

project management processes and
phases as well as their implementation
to increase the probability of success
of a project and your requirements and
expectations.

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 Participants will learn
• The project management basics & life cycle.
• To use the work breakdown structure (WBS).
• To estimate time, cost & resources(T, C, R).
• How to build and manage the project team.
• The statement of work (SOW) and understand
how to lay out the project.

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More learnings
• To develop a mission, vision, goals
and objectives for the project.
• How to schedule the Project work.
• Risk management & project control.

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Benefits of Project Management
• Less overall project cost
• Less strain on working capital
• Efficient use of resources
• More timely project completion
• Higher quality of the final
product/service.

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 Course Overview
• In today’s ever increasingly dynamic
world, the rules governing the work
place has changed sharply. Individuals
or groups that want to succeed must
learn how to set priorities to
controlling expenses and reporting on
the results.

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Overlap of Disciplines
Project management is an overlap of
many disciplines and it requires:

• Technical knowledge
• Knowledge of the project atmosphere
• General management ability
• Interpersonal skills

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 Starting with a project
• An endeavor to A temporary and
accomplish a specific
one-time endeavor
objective through a
unique set of undertaken to
interrelated tasks and create a unique
the effective product or
utilization of service, that
resources. brings about
beneficial change
• A well-defined objective or added value
stated in terms of
scope, schedule, and
costs. 11
…a project
• A unique set of co-ordinated
activities, with definite starting
and finishing points, undertaken by
an individual or organization to meet
specific objectives within defined
schedule, cost and performance
parameters.

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Understanding Project Management
• The discipline of organizing and managing
in a way that the project is completed
within the defined scope, quality, time
and cost constraints.

• The application of information skills,

tools and techniques to outline activities
in order to meet project needs.

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Project Examples
• Planning a wedding.
• Building a house.
• Planning a conference.
• Designing and implementing a computer system.
• Designing and producing a brochure
• Executing an environmental clean-up of a
contaminated site.
• Performing a series of surgeries on an accident
victim.

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The need for Projects
• Projects are “born” when a need is
identified by – the people or organization
willing to provide funds to have the need
satisfied.

• The people, not the procedures and

techniques, are critical to accomplishing
the project objective. Procedures and
techniques are merely tools to help the
people do their jobs.

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Project Characteristics
1 Timeline

2
2 Resources

3
3 Tools

4
4 Team

5
5 Project Lifecycle

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1
1
Timeline • Timeline:
2
2 Resources o A project
3 has a
3 Tools
definite
timeline
4
4 Team with
measurable
5
5 Project Lifecycle starting
and end
point.
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1
2 Timeline • Resources:

2
1 Resources o A project
has
3
3 Tools limited
resource
4
4 Team of
capital
5 Project Lifecycle and
5
manpower.

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 • Tools:
1 Timeline
o Special
2
2 Resources type of
tools and
3
1 techniques
Tools
are used
4
4 for project
Team
management
5
5 Project Lifecycle (Gantt
Charts,
etc)
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1 • Team:
Timeline

2 o Project
2 Resources management
3 requires diverse
3 Tools
teams stretching
41 across
Team departments,
functions and
5 Project Lifecycle
5
responsibilities.

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1 Timeline • Project Life Cycle:

o A typical project
2
2 Resources is divided into
following phases.
3
5 Tools Each phase of the
project has its
4 own importance
4 Team and impact on
overall success
51 Project Lifecycle
of the project

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Project Triangle
Time

S
Safety

Cost Quality
Performance

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Fundamental Criteria
• The project must be completed on time.
• The project must be accomplished within
the budgeted cost.
• The project must meet the prescribed
quality requirements.

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Project Diamond
Time

Quality
Cost Performance

Safety

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A score board for a tennis tournament must
be finished in time for the opening match,
even if it costs more than anticipated and
the display of some secondary information,
such as the speed of the service, has to
be abandoned. In other words, cost and
performance may have to be sacrificed to
meet the unalterable starting date of the
tournament.

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A local authority housing development may
have to curtail the number of housing units
and may even overrun the original
construction program, but the project cost
cannot be exceeded, because the housing
grant allocated by central government for
this type of development has been frozen at
a fixed sum. Another solution to this
problem would be to reduce the specification
of the internal fittings instead of reducing
the number of units
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The Project Environment

Environment Political
Clients Distributors

End-users
Contracting

Legal The Project Economic

Public
Company

Competition
Suppliers

Socio-
Technological cultural
Business Case
Before embarking on a
project it is important to
show that there will be
benefit either in terms of
Sponsor Client money or service or both.
The document which sets out
the main advantages and
parameters of the project
is called the business case
and is (or should be)
produced by either the
client or the sponsor of
the project who in effect
becomes the owner of the
document
Project or Work
• In any organization, only two aspects of
work exist—on-going operations and
projects.

• Projects are defined as unique, temporary

endeavors with a specific beginning and
end. Operations constitute an
organization's on-going, repetitive
activities, such as accounting or
production.
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Project and Work
• Projects are initiated for a variety of
reasons, such as to meet a business need,
attain a strategic objective or meet a
market demand. The only way organizations
can accomplish any of these goals is by
expending resources of the organization
over time, for a cost.

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Project Management System
• A set of procedures, tools and
techniques, processes and
methodologies that an individual
project manager or organisation can
use to manage projects. This system
can be formal or informal in nature.

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 Project Management Lifecycle
• The application of knowledge, skills,
tools, and techniques to project
activities to meet project requirements.
It is accomplished through the use of the
following 5 processes:
• Initiation
• Planning
• Execution
• Closing
• Controlling
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About Project Management
• Complex and numerous activities
• Unique
• Finite
• Limited resources and budget
• Many people involved
• Sequenced activities
• End product or service must result

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Progressive Elaboration
• It is the refinement of the project
as you obtain new information that
impacts the project. Typically you
plan based on what you know but as
you learn ore about the work of the
project, you refine by adding new
details.

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Developing a Project Charter
• It is the process by which the
project or project phase is
authorized. An authorized person
must sign the charter to provide the
project manager with the authority
documented in the charter.

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A Project Charter
• Project justification and purpose.
• Success criteria
• Scope
• Constraints and assumptions
• Time and costs
• Organisational information
• Project approval requirements

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 Project Charter
The individual who has the responsibility, authority
and accountability assigned to him or her to achieve
safely the project objectives within agreed time, cost
and performance/quality criteria
Charter
Project Manager
Name: _________
Appointment/Position________
Date of appointment_________
Project title: _______________________
Responsibility and Authority given to the Project Manager. The above named Project
Manager has been given the authority, responsibility and accountability for
_____________________________

Project Goals and deliverables are: A_____________, B_______________, C_______________

The project will be reviewed:______________________________________________

 Charter

Final authority

The project manager’s delegated financial powers are:______________________

Intramural resources: The following resources have been/are to be made available________
Trade-offs: a._________%, b. Time_________, c. Performance___________

Charter review: No charter review is expected to take place for the duration of this project unless it
becomes clear that the Project Manager cannot fulfil his/her duties or a reassessment of the trade-offs is
required
Approved
Sponsor/Client/Customer/Programme Manager________________
Project Manager_____________
Line Manager___________

Distribution
a) Sponsor b) Programme Manager c) Line Manager
Statement of Work
• A formal document that establishes
expectations and agreements on the
project. It is not a contract, it is a
tool for clarifying responsibilities
and working relationships among
project stakeholders.

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Plan Scope Management
• The process emphasizes the creation
of the plan that details the coverage
of the execution of the project. It
contributes to the management and
definition of the project by defining
how the scope of the project.

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…Scope Management
It helps the Project manager and team members
establish rules for managing scope. The plan
may include the methods that will:

• be used to create a scope management.

• be used to create a work breakdown structure.
• be used to validate project deliverables.
• address scope change requests.

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Work Breakdown Structure (WBS)
• It helps to determine what activities need to
be performed.

• A list of all the activities must be developed.

• The WBS is a hierarchical tree of end items to
be accomplished.
• A work item is one small piece of the project.
• A work package is the lowest-level item.

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WBS
• It is the decomposition of the
project scope statement and the
project scope. It describes the work
breakdown and restricts its content
to listing only the project work.

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Creating the WBS
• To create WBS, define the main
pieces of the project work then
decompose each to encompass all the
work on the project down to an
appropriate level of detail where
each activity is definable,
trackable and manageable.

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…the WBS
• Understand the scope and requirements of
the project.
• Identify the major areas and tasks
required to complete the project.
• Continue subdividing the tasks.
• Draw the WBS in an organisation chart
format or an indented list.

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WBS Dictionary
• Identify the hierarchical relationship of the
element.
• State specifically what is involved with the
task or activity.
• List any pertinent technical documentation,
assumption or assumption.
• List known resources or processes required.

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Understanding Project Categories
• Project integration •Project human
management resource
• Project scope management
management •Project
• Project time communication
management management
•Project risk
• Project cost
management
• management •Project
• Project quality procurement
management management

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Project Integration Management
• Project plan development
• Project plan execution
• Integrated change control

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…Integration Management
• It describes the processes required to
ensure that the various elements of the
project are properly coordinated. It
consists of project plan development,
project plan execution, and integrated
change control.

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Project Scope Management
• Initiation
• Scope planning
• Scope definition
• Scope verification
• Scope change control

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… Scope Management
• It describes the processes required to
ensure that the project includes all the
work required, and only the work
required, to complete the project
successfully. It consists of initiation,
scope planning, scope definition, scope
verification, and scope change control.

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Project Time Management
• Activity definition
• Activity sequencing
• Activity duration
• Estimating
• Schedule development
• Schedule control

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...Time Management
• It describes the processes required to
ensure timely completion of the project.
It consists of activity definition,
activity sequencing, activity duration
estimating, schedule development, and
schedule control.

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Project Cost Management
• Resource planning
• Cost estimating
• Cost budgeting
• Cost control

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…Cost Management
• It describes the processes required to
ensure that the project is completed
within the approved budget. It consists
of resource planning, cost estimating,
cost budgeting, and cost control.

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Project Quality Management
• Quality planning
• Quality assurance
• Quality control

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Project Quality Management
• It describes the processes required
to ensure that the project will
satisfy the needs for which it was
undertaken. It consists of quality
planning, quality assurance, and
quality control.

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Project Human Resource Management
• Organizational planning
• Staff acquisition
• Team development

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… Human Resource Management
• It describes the processes required to
make the most effective use of the people
involved with the project. It consists of
organizational planning, staff
acquisition, and team development.

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Project Communication Management
• Communications planning
• Information distribution
• Performance reporting
• Administrative closure

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…Communication Management
• It describes the processes required to ensure
timely and appropriate generation, collection,
dissemination, storage, and ultimate disposition
of project information. It consists of
communications planning, information
distribution, performance reporting, and
administrative closure.

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Project Risk Management
• Risk management planning
• Risk identification
• Qualitative risk analysis
• Quantitative risk analysis
• Risk response planning
• Risk monitoring and control

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…Risk Management
• It describes the processes concerned with
identifying, analyzing, and responding to
project risk. It consists of risk management
planning, risk identification, qualitative risk
analysis, quantitative risk analysis, risk
response planning, risk monitoring and control.

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Project Procurement Management
• Procurement planning
• Solicitation planning
• Solicitation
• Source selection
• Contract administration
• Contract closeout

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…Procurement Management
• It describes the processes required to
acquire goods and services from outside
the performing organization. It consists
of procurement planning, solicitation
planning, solicitation, source selection,
contract administration, and contract
closeout.

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Working with Quality
• Quality is the degree to which a set
of inherent characteristics fulfill
certain criteria required to put the
product or service at a certain
level.

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Project Management & Quality
Management
• They compliment each other as they work
together. Both focus on customer
satisfaction, management responsibility,
continuous improvement and prevention
over inspection.

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Total Quality Management
• It is a quality management philosophy
that focuses on a proactive attitude
toward quality with a detail toward
statistical analysis to document
improvement. It emphasizes that quality
should be planned and not inspected after
the job has been completed.

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TQM
• Pro activity
• Utilize leadership and accountability
• Measure and strive for continuous
improvement

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Quality Management Plan
• Establish a quality baseline.
• Establish any checklists for the project.
• Define any process steps.
• Validate the quality processes are working.
• Test the product of the project.
• Format data for communication to stakeholders.
• Deal with changes to the quality standards and
processes on the project.

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COST OF QUALITY
• This is the cost of conforming or
not conforming to a continuous
improvement approach to quality.

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MOMENT OF TRUTH
• A moment of truth occurs anytime a
customer comes in contact with any part of
your organisation and uses that contact to
judge the quality of your organisation.

Karla Brandau

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Relationship with other
management disciplines
• Project management overlaps and in
certain cases even modifies the general
management principles in many areas such
as organizational behavior, financial
forecasting, and planning techniques.

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 Know which is
most important
to you and your
stakeholders
and manage
accordingly.

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The Project Objectives Triangle

Scope

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The Objectives Triangle
If the time is short, the resources (cost)
must increase or scope must decrease, or both
Time Cost Scope

If funds or short, then time can be

extended or scope must decrease, or both
Funds Time Scope

If the scope is large, the cost will be

greater or the time must be extended, or both
Scope Cost Time

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Project Characterizations
• Project phases
• Project life cycles

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Project Phases
• Each project phase is marked by completion of
one or more deliverables.

• The conclusion of a project phase is generally

marked by a review of both key deliverables and
project performance to date.

• It normally includes a set of defined

deliverables designed to establish the desired
level of management control.

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The Project Life Cycle

• The process of completing work on the project.

It involves the management of the work process.
It typically coexists with the project
management life cycle. It can describe what work
is done and who does the work in each phase of
the project, whatever the deliverables and the
approval for each phase.

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…Project Life Cycle
• It serves to define the beginning and the
end of a project. The project life-cycle
definition will determine whether the
feasibility study is treated as the first
project phase or as a separate,
standalone project.

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…Life Cycle
• It will determine which transitional
actions at the beginning and the end of
the project are included and which are
not. In this manner, the project life-
cycle definition can be used to link the
project to the ongoing operations of the
performing organization.

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…Life Cycle(Cont’d)
• It will determine which transitional
actions at the beginning and the end of
the project are included and which are
not. In this manner, the project life-
cycle definition can be used to link the
project to the ongoing operations of the
performing organization.

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Generally…

• What work should be done in each phase

(e.g. analysis or execution)

• Who should be involved in each phase

(e.g., who needs to be involved with
requirements and design)?

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Phases of a Project Life Cycle

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…a Project
Identify a need by the customer – customer
requesting proposal from individuals , team or
organization. RFP– ask customer/contractor to
submit proposals: cost and schedule.

Develop a proposed solution - submission of a

proposal – contract is signed.

Perform the project – implementation of the

proposed solution.

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…project
 Terminate:
oConfirmation: deliverables provided
oPayments collected
oInvoices paid
oEvaluate performance
ofeedback

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Phase 1
• It is the conceptual or create phase. It shapes
the project and begins after project selection.
The purpose is to provide direction to the team
and also identify constraints and risks.

• Basic elements include determining feasibility,

identifying and researching alternatives,
naming prospective team members & creating
proposals, budgets and schedules.

87
Phase 1 (Cont’d)
• Once the team has been established,
members will study some of the initial
research before moving onto a Project
charter or Statement of work (SOW).
• The team will also set a clearly defined
conclusion, establish benchmarks and
deliverables and choose a course of
action.

88
Phase 2
• This stage is the planning stage also
known as the Sell stage. The team
identifies the steps and develops the
plan for how and when the project will be
accomplished. Poor or lack of planning
will have consequences along the line.

89
Phase 2 (Cont’d)
• Tasks to be completed during this stage
include; setting goals, defining
responsibilities, refining budgets,
obtaining necessary approvals, securing
or designing systems needed, building and
testing, analysing results.

90
Phase 3
• After the project is approved, the execution
phases starts, where the plan is put into
action. This is where you get down to working
on the project and delivering the deliverables
that were outlined in the first phase. To stay
on track, the project manager must monitor the
progress and if need be, recommend changes.

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Phase 3(Cont’d)
• Some of the tasks will include making the time
to get the work done, obtaining and using
resources (human and material), meeting with
the team regularly and updating stake holders.
Here, the project manager also ensures that the
task is carried out within time allotted and
within the budget allocated

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Phase 4
• The final phase is the Close-out or
Termination stage. This when your
customer will decide whether they are
satisfied with the project. They will
assess the project in terms of goals met
and cost incurred.

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Phase 4(Cont’d)
• The task will include meeting to produce
a report or checklist upon completion and
the final production of manuals, drawings
or procedures for the client. Finally,
team members are reassigned to pre-
project work or to start new projects.

94
Milestones
Major elements or steps in a project.

• The first stage is deciding whether to go

after preliminary work has been done.
• If yes, move to the planning phase.
• The third stage is the gate at the end of
execution.

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Failure Factors
• Poor planning
• Poor communication
• Lack of resources/money
• Lack of commitment
• Bad leadership
• Setting unrealistic goals
• Lack of experience
• Unclear objectives

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Reasons for success
• Good planning
• Pre-determined communication plan
• Enough time and money
• Team commitment
• Good leadership
• Realistic goals and time frame
• Experience with project planning and
experienced team members.
• Clear goals

98
Three ways to end a project
• Before starting a project, it is good you
have a clearly defined picture of what
the end will look like. The three ways
to end a project are:

• Fulfilment
• Partial fulfilment
• Premature termination

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The Prelude
Before starting a project, ask yourself:

• Is there a need or an opportunity for this

project?
• What is the relative cost in time and money
for this project?
• What is the risk involved?
• Can I get support for the project?
• Will this project affect the bottom line
profitability of my organisation.

100
The Priority Matrix
• How can you get your ideas accepted?
• How good are these ideas?
• Is it worth striving for?

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Priority Quadrants

102
Project Goals
• To succeed in a project, it is important
that goals and objectives are set. They
are the heart and purpose for creating a
project. When embarking on a project, you
should clearly describe the outcomes,
deliverables and benefits to stakeholders
and users.

103
Setting Project Goals
• Goal Setting involves establishing
specific, measurable and time-targeted
objectives.

• It allows you specify then work towards

those objectives.

104
Setting SMARTER Goals
A useful way of making goals
more powerful is to use the
SMARTER mnemonic. :
• Specific
• Measurable
• Attainable
• Realistic
• Time bound
• Evaluate
• Review
105
Employing a SWOT Analysis
• The analysis is merely a guide for organizing
your work and managing your project.

• Strengths and Weaknesses are part of the

internal analysis of your project.

• Opportunities and Threats are part of the

external analysis of your project.

106
SWOT Analysis

S W O T

107
Strength
• The characteristic that
gives you an advantage
over others in managing
your project.

• Your positive tangible

and intangible
attributes.

• Your skills and

competencies.

108
Weakness
• The characteristic
that places you at a
disadvantage while
managing your
project.

• The thing that stops

you from attaining
your goals.

• Your flaws.

109
Opportunity
• Chances to improve
the project may
arise when the
project manager can
take benefit of
conditions in its
environment to plan
and execute
strategies that
enable it to become
more successful.

110
Threat
• External elements that
could hinder or put your
project at risk.

• Compound the
vulnerability when they
relate to the weaknesses
of the project manager.
They are uncontrollable
and affect the stability
and survival of the
person.

111
Project Deliverables
• Its important we focus on the team outcomes.
This helps us to keep on track and on what our
deliverables are.

• What results do we hope to achieve?

• What do we hope to produce?
• How much ground do we hope to cover?

112
Cost and Schedule Estimates
• Prepare a draft budget. You are supposed to
estimate the cost and schedule of the project.
You should be able to defend how you arrived at
the figure for the budget.

113
Outline the stakeholders
• Who will be involved? At this stage you
identify all the key influencers such as
managers, sponsors etc. You should
outline all the roles and
responsibilities of the sponsors,
managers with an interest in the project,
project manager and key team members.

114
Define Authority Levels
• The hierarchical order and must have clearly
defined authority levels. The project manager
and every member of the team must know the
lines of supervision and delegation (or chain
of command). This will help members understand
the limits of their own authority and who to
approach for help.

115
Managing Project Communication
• Who communicates with who?
• How do we produce reports and what
is the frequency?
• How often do the members meet and
give status reports?

116
The Communication Management Plan
• This plan defines the communication
needs of the stakeholders, the
communication format and frequency
and who delivers them. It includes
reports, meeting schedules, change
processes and contact information
for the team.

117
Functions of the Plan
• Determine the communication needs.
• Establish and utilize infrastructure for
distributing information.
• Report project performance.
• Deal with communication issues that
arise.

118
The Communication Process
Sender

Start with •
a meaning/
message to
send Receiver
message
Communication
Channels
Receive
Report/Phone/
Encode • Meeting/Computer message
Decode and
Convert to
Send • Meaning
Feedback
message
Respond

Interact •
with feedback

119
 Communication components
The situation/environment
in which communication
occurs. This includes A person’s understanding
time, place & or interpretation of a
Context Percepti particular event/message.
socio/psychological
on
factors.
The route through
which communication This includes what the
Channel Purpose sender and receiver
takes place.
intend as the outcome
of the communication.
Barriers

This includes anything

that interferes with
effective communication.
(sometimes known as
noise)
120
 Context Context

Encoding / Encoding /
Decoding Decoding

Messages - Feedback Channels

Sender / Sender /
Receiver Receiver

Context Context
Area of Shared Meaning
121
Communication Methods
• Interactive: Enables exchange of information
between multiple parties and fosters a common
understanding between all parties.

• Push: Distributes information but does not

ensure that the information is well received.

• Pull: Provides information in a centrally

accessible location.

122
Communication Blockers
• These are factors
disrupting the
message that the
receiver is
trying to
interprete from
the sender.

123
Understanding Reports
• A report is a statement of the results of an
investigation or of any matter on which
definite information is required.

• It is any informational work made with the

specific intention of relaying information or
recounting certain events in a widely
presentable form

124
A report…
A systematic, well organized document which
defines and analyses a subject or project, and may
include:

• The record of a sequence of events.

• Interpretation of the significance of the or facts
• Evaluation of the facts or results of the outcomes
of a decision or course of action
• Conclusions
• recommendations

125
Performance reports
• Reporting on a project can take a variety
of formats; interpretation of the formats
can vary.

126
Performance reports (Cont’d)
• Progress = Point in time

• Status = Sum of all progress

• Forecast = Future work

• Variance = Vary from plan

127
Progress reports
• Progress reports provide information
on what has been done recently on
the project e.g. what have done in
the last week

128
Status reports
• Status reports provide information
on the present overall state of the
project

129
Forecast reports
Forecast reports provide information
about what is expected to occur during
the project. When associated with cost
they include:

• Estimate at completion (EAC)

• Estimate to complete (ETC)
• Variance at Completion (VAC)

130
Variance reports
• Variance reports show the difference
between what was planned to occur and
what actually occurred. E.g. What is the
difference between what should have been
done and what has been done?

131
Earned value reports
• Earned value reports show the state
of the schedule, budget and scope of
the project at various points in
time.

132
Features of a report
• Complete and compact document
• Systematic presentation of facts
• Prepared in writing/equations/numbers/symbols
• Provides information and guidance
• Self-explanatory document
• Acts as a tool of internal communication
• Acts as permanent record.

133
Presenting a good report
• Easy to understand
• Clarity
• Concise
• Complete
• Correct
• concrete

134
Types of reports
There are lots of different types of
report, such as:

• routine – occurring on a regular basis

• special – those that are required to
cover a specific subject or task
• technical – these cover complex technical
issues

135
Four stages of report writing
• Investigation
• Planning
• Writing
• Revising

136
Organise your information
• At this point, you clearly define
the purpose of the report. In doing
this, you must collect all the
necessary and relevant information.

137
Write an outline
In presenting your information, you must
out line in a logical sequence. The
basic structure of a report is this:

• Introduction
• Body
• Conclusion

138
Write a draft and improve it
While writing:

• Use of plenty of space

• Use headings to define various sections
• The first paragraph in each section should
expand heading.
• State facts clearly in an unbiased manner &
describe sources used.
• Use graphics and illustrations with
captions.

139
Edit and proofread
• Pending final submission of the report, it is
important that a thorough check is made on the
first draft of the report. Check the facts,
length, organisation style, spelling, grammar
and punctuation. It is important that your
report is error free before submitting.

140
What is a Project Risk
• Any factor that may potentially interfere with
successful completion of the project. Its is
not a problem-- a problem has already occurred;
a risk is the recognition that a problem might
occur. By recognizing potential problems, the
project manager can attempt to avoid a problem
through proper actions

141
Risk Management Process
• The procedure that the team will use
to manage project risks is defined
in the planning stage, documented in
the project plan, and then executed
throughout the life of the project.

142
Risk Management Process (Cont’d)
• Create the risk register
• Risk identification
• Risk analysis and quantification
• Risk mitigation planning
• Risk owners
• Risk response

143
Types of Risk
• Known risks
• Predictable risks
• Unpredictable risks

144
Most common risks to consider
• Funding: (It could dry up)
• Timing: (Other projects may come up)
• Staffing: (Stability of team members)
• Customers (Conflicts)
• Project size or complexity (Its
complexity could increase)
• External factors: (Weather)

145
Characteristics of risks
• Uncertainty: (May or may not happen)
• Loss: An event has unwanted consequences

146
Factors that affect Projects
• The tool/technology used on the project.
• The environment in which the project is
executed.
• Relationship between team members.
• How well the project fits the culture of
the organisation.
• The change that will result from the
project.

147
Risk Management Process
• Make a list
• Determine the probability of risk
occurrence.
• Risk impact
• Mitigate against the risk
• Consider contingencies
• Establish the trigger point

148
Responsibility for risk
identification
• It is the responsibility of all members of the
team. The project manager is responsible for
tracking risks and for developing contingency
plans that address risks identified by the
team. It begins in the early planning phase of
the project.

149
Contingency Planning
It is planning for a course of events that is
other than what we want or expect. It is based
on three beliefs

• Something is always waiting to go wrong

• What will go wrong when you least expect?
• It will hit harder than you thought possible.

Its elaborateness will depend on how likely it

is something will go wrong and how risky it
will be not to have a back up plan.
150
Components of a Contingency Plan
• When?
• Who?
• What?
• Where?

151
When
• How will we know when the event will
happen?
• What are the signs to look out for?
• When should we start acting?

152
Who
• Who has responsibility for this event?
• What other resources might we need?
• Who else should be informed?

153
What
• What will happen when the event occurs?
• What consequences can the event have?
• What other risks might this event create?

154
Where
• Where is the risk going to happen?

155
The Project Management Process
• The project management process means
planning the work and then working
the plan.

156
 7 Steps of planning
• Clearly define the project objective.
• Divide and subdivide the project scope into
major pieces.
• Define the specific activities for each piece
(work package.
• Graphically portray the activities for each
work package in order to accomplish the project
objective – in the form of network diagram.

157
…steps of planning
• Make a time estimate for how long it will take
to complete each activity – resources needed.

• Make a cost estimate for each activity.

• Calculate a project schedule and budget to

determine whether the project can be completed
within the required time, with the allotted
founds and with the available resources.

158
 Planning Tools
When planning, its important that you
use basic tools to aid the planning
process. There two basic tools:

• Action working sheets

• Milestone charts

159
Action working sheets
• These can vary in complexity. The most
basic ones only show steps required to
complete a project. Additional
information, such as beginning dates,
targeted completion dates, cost estimates
and who is responsible can be added.

160
Milestone Charts
• They signify a key accomplishment in
your project. They are markers for
summarising work that has been done,
not individual tasks. A major
advantage is that it can be posted
for everyone to see.

161
162
Preparing a basic schedule
Its important to gather some items before
starting the scheduling process:

• Schedules for people working on the project

• Time off for team members
• Schedules for materials and resources required.

163
Standards for Estimating Time

To+4Tm+Tp
6
Tm= probable time To = optimistic
time

Tp= pessimistic
time Te= calculated
time

164
Float Time
• It is the cushion you build into projects
so you can accommodate the unexpected.

• Murphy’s law says, ‘if something can go

wrong, it will. Many projects, build in a
10-15% contingency plan to allow for
delays.

165
100% Rule
• The 100% rule states that 100% of the
work must be represented in the creation
of the Work breakdown structure

166
167
• Programme Evaluation Review Technique
and Critical Path method

168
PERT and CPM
• They are scheduling techniques used to
plan, schedule, budget and control the
many activities associated with projects.
Projects are usually very large, complex,
custom products that consist of many
interrelated activities to be performed
either concurrently or sequentially.

169
 PERT
• It represents an added degree of sophistication in
the planning process. A simple way is drawing one
is to list the steps required to finish a project
and estimate the time required to finish each
step.

• The weighted average approach that uses three

estimates per activity. It performs a weighted
average of pessimistic, optimistic and realistic.

170
Critical Path
• It is the longest path on the project
network diagram. It typically has no
slack yet duration can change as the
project evolves. A project can have
multiple critical paths.

171
Along the Critical Path
• A PERT diagram not only shows the relationship
among various steps in a project, it also
serves as an easy way to calculate the critical
path.

• The PERT and CPM are very similar, and they are
the most common forms of showing networks, or
interrelationships among tasks. They just
display information differently.

172
An Illustration
• A simple exercise is used here to illustrate
the principles of applying PERT/CPM to a set of
interrelated activities.

• The several activities that must be performed

either simultaneously or sequentially before
he/she attends a 9:30 class. The activities
have been identified as individual activities
to be done prior to attending class.

173
Action Steps with Estimates
Activity Time required

• Wake up and get out of bed 10mins

• Shower 10mins
• Dress up 10mins
• Prepare breakfast 20mins
• Eat 15mins
• Brush teeth 5mins
• Transportation to school 40mins

174
Activities prior to the 9.30
class
• If the student scheduling the activities begins
at some point in time (zero) and moves through
the path of activities in sequence (in this
example there is only one path; however,
complex projects may have hundreds of paths),
the student will find that the shortest time

10 + 10 + 10 + 20 + 15 + 5 + 40 = 110 minutes

175
Prior Activities
• Since these activities take 110 minutes to
complete, the student must begin the first
activity at 7:20 in order to arrive at the 9:30
class on time. Each activity's start and end
times can be determined and then used by the
student to control his/her on time arrival for
the 9:30 class.

176
Task according to activity
numbers
• Assuming these tasks must be performed
sequentially according to the activity number
presented in the list, a network diagram
illustrating the relationships among the
activities can be developed.

10 10 10 20 15 5
40

A B C D E F G
1 2 3 4 5 6 7 8

177
Their relationships

20
4 5

5
10 10 40
1 2 3 6 7
8

Precedence relationships must be defined in order to

determine the sequence of activities in the network
e.g.some activities cannot begin until others have been
completed.

178
Steps involved in PERT/CPM
• Identify activities required by the project.
• Identify the precedence relationships among the
activities.
• Determine the expected time requirements for
each activity.
• Develop a network diagram of activities (arrows)
and events or nodes (circles) showing precedence
relationships.

179
Steps
• Determine the earliest and latest feasible
event times.
• Identify the critical path (the minimum time to
complete the project).

180
The Network Diagram
• PERT/CPM requires a network diagram of all the
activities graphically interrelated showing the
precedence relationships of the activities.

• The PERT diagram can be made clearer by colouring

each step as it completed. The critical path
shows the shortest amount of time needed to
complete the project.

181
Note!!!
• A rectangular box indicates a task. The number
in the top right is the duration of the task,
the left is the task number used for tracking.
12 3d
This is a task

A box with rounded corners is a milestone.

Milestones do not have duration like tasks because
they represent the completion of series of tasks.

This is a mile
stone

182
 Precedence is indicated by the sequence of tasks
joined with a line and an arrow.
First Task Next Task

• Concurrent tasks are shown in the same vertical

plane and are not connected by lines or arrows.

One Task

Unrelated Task

183
Two tasks must be completed before a third
can begin.

Task 1A

Task 2

Task 1B

184
Network Diagram
• It is a proven way to organise and sequence the
steps in a project. The simplest project can have
a network diagram, its a road map for your
project.

• It shows start and finish dates and names the

team member responsible for each task. You can
put it on the wall and use a bright colour to
mark completed tasks.

185
Forward Pass
• It involves tracing each path forward through the
network and cumulatively adding the activity times
according to a specified procedure. The cumulative
adding of the activity times provides the scheduler with
earliest start and finish times for each activity, and
the total length of time required for completing the
project or the project duration.

• Since the required start date for the project is

initially unknown, the forward pass begins with a time
of zero.

186
Backward Pass
• It involves tracing each path backward through
the network and subtracting activity times
according to a specified procedure. The
backward pass begins with the project duration
time determined in the forward pass.

187
Activity on Arrow
• Activity: It is a task to be accomplished as
part of the total work to be done. Activities
consume resources and/or time. They can be
identified with starting and ending points. The
network activities are represented by arrows
and can be referred to by their endpoints
and/or a letter assigned to the activity.

188
Slack
• The Activity slack is defined as the difference
between the late start (LS) and early start
(ES) times for an activity.

LS-ES = Activity lack

189
Event
• Is it a point in time, a milestone in the total work
to be accomplished. It marks the beginning and end of
an activity. Events do not consume resources or time.
Events are numbered with those at the tail of the
activity having lower numbers than the events at the
head of each activity arrow (left to right). Events
are represented by circles (nodes).

190
Crashing
• It involves reducing the overall time required
to complete the project. This involves trading
off costs of additional resources against the
value of time saved to complete the project. It
is used with activities on the critical path.

191
 Designing a Flowchart
• A flowchart is a picture of the separate steps of
a process in sequential order.

• Sequence of actions, materials or services

entering or leaving the process, decisions that
must be made, people who become involved, time
involved at each step and/or process measurements.

192
The need for a Flowchart
• To understand how a process is done.
• To study a process for improvement.
• To communicate the process to others.
• When better communication is needed between
people involved with the same process.
• To document a process.
• When planning a project.

193
Steps to take
• Gather those who represent the processes.
• Decide where it starts and ends.
• Brainstorm the main activities and decision
points in the process.
• Arrange them in their proper order using arrows
to show direction of flow.
• As needed breakdown the activities to show
complexity.

194
Forming a Project Team
• A small number of people with complementary
skills who are committed to a common purpose,
performance goals and approach for which they
hold themselves individually and mutually
accountable.

195
A team
A collection of individuals with a specific
purpose and:

• committed to high performance.

• clear about roles & responsibilities.
• agree about realistic and ambitious goals.
• understand the common purpose.
• are coordinated by a leader.
• define themselves as a team.

196
When do you need a team
• When attempting to deal with genuine problems
where nobody knows the answer.
• When uncertainty about a task arises.
• When working on a project.
• When experiencing rapid change.
• When there is the need for people to work
closely together on real tasks.

197
Organising the project team
• Define what must be done using the WBS.,
problem definitions and other planning tools.

• Determine the staff requirements to accomplish

the identified tasks.

• Recruit members for the team.

• Complete your project plan with team members.

198
Recruiting
• Intending members must possess the required
skills.
• Must be willing to work with other team
members.
• Their temperament must that of others.
• They must be ready to go beyond normal limits
to achieve team goals.

199
200
Dealing with Conflict
• Project team conflict is challenging for
project leaders but it is not necessarily bad.
Conflict can lead to new ideas and approaches
and facilitate the surfacing of important
issues between team members if it is managed
well.

201
Sources of Conflict
• Variance on agreed goals
• Shabby project priorities
• Conflicting work schedules

202
Conflict Resolution Techniques
• Collaborating/ Problem solving
• Compromising/Reconciling
• Forcing/Directing
• Smoothing/Accommodating
• Withdrawing/Avoiding

203
Collaborating/Problem Solving
• Collaborating/ Problem solving is an
effort in which attempts are made to work
out the actual problems. It is the best
type of conflict resolution.

204
Compromising/Reconciling
• It is a negotiation attempt to get
everyone to give in a little to find a
common ground and resolution. Most times
the solution fails to meet everyone’s
need.

205
Forcing/Directing
• Forcing/Directing is an action in which a
direct order to resolve something is
given. It is typically the worst type of
conflict resolution.

206
Smoothing/ Accommodating
• Smoothing/Accommodating is an attempt to
focus on the positive and distract the
attention from the negative.

207
Withdrawing/Avoiding
• In Withdrawing/Avoiding, the project manager
ignores the problem and hopes it either fixes
itself or disappears. Typically this method is
not viewed as a conflict resolution technique
because it is not proactive.

208
Some recommendations
• Hold frequent meetings and status review
sessions to check project goals and
priorities.
• Facilitate more active team-building
efforts.
• Foster an environment of mutual respect.

209
Having individual meetings
Meet team members and discuss:

• Why was this person selected?

• What are the performance
expectations?
• What are their individual priorities?

210
Information gathering
• It is important to obtain the who, what,
where, when, why and how for the project.

211
Agenda Planning
• Ensure that the proper individuals are invited.
• Develop an agenda or a set of objectives.
• Send the agenda and information requests to the
team.
• Get the appropriate venue for the meeting.

212
In the meeting •Review the priorities
• Ensure the meeting for the project
starts on time. objectives.
• Set some ground • Review individual
rules plans.
• Introduce members of •Discuss methods and
the team tools to be used to
• Encourage open manage, control and
communication. operate the project.
• Introduce members of •Establish time and place
the team for next meeting.
• Take the agendas one •Agree on follow up
at a time activities or action
items.
213
Project Management Presentation
• Back ground information
• Project goal statement
• Planning tools you will use
• Explain the allocation of resources
• What will you communicate?
• What conflicts could arise?

214
Presentation Strategies
• What is the problem to be solved?
• What solution are you offering?
• What are the benefits of the solutions to the
organisation?
• What is the action step?

215
The Project Budget
• It is the total sum of money allocated
for the particular purpose of the project
for a specific period of time. The goal
of budget management is to control
project costs within the approved budget
and deliver the expected project goals.

216
Project budgeting
• It is performed at the initial stages of
project planning and usually in parallel
with the development of the project
schedule. The steps associated with
budgeting are highly dependent on both
the estimated lengths of tasks and the
resources assigned to the project.

217
Maintaining control
• It is performed at the initial stages of
project planning and usually in parallel
with the development of the project
schedule. The steps associated with
budgeting are highly dependent on both the
estimated lengths of tasks and the
resources assigned to the project.

218
Developing the budget
• The applicable cost factors associated with
project tasks are identified. The development of
costs for each task should be simple and direct
and consist of labor, material, and other direct
costs. The cost of performing a task is directly
related to the personnel assigned to the task,
the duration of the task, and the cost of any
non-labor items required by the task.

219
Estimating the budget
• The project manage is responsible to
estimate the budget required to complete
project activities. The Project Manager
should allocate all costs to project
activities, and all aspects of the
project, including the cost of internal
and external human resources, equipment,
travel, materials and supplies.

220
Budget control
• Monitoring and controlling the project budget
ensures that only the appropriate project
changes are included in the budget baseline,
that information about authorized changes are
communicated and corrective actions are taken by
those in charge. The action of budget control is
also a process of managing the budget.

221
Closing out a project
• It is important that there is proper
documentation and record keeping from the
beginning of the project. If someone
unexpectedly leaves the team or a vendor
decides not to continue, we should have proper
documentation to be able to manage
correspondence and carry on with the project.

222
Filing and recording
There should be proper filing on all members and
vendors. This will help in:

• Returning borrowed or • Presenting finished

leased items projects to all
• Cleaning up stakeholders
facilities used • Preparing a post-project
• Completing all evaluation
projects • Updating all
• Paying bills and documentation
fulfilling all • Reviewing all team
contracting efforts and
obligations. 223
contributions
 PARTING SHOT
• Operations keep
the lights on,
strategy provides
a light at the end
of the tunnel, but
project management
is the train
engine that moves
the organisation
forward.
224
225