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ADVANCED PROJECT DEVELOP PART 1 YIBS
ADVANCED PROJECT DEVELOP PART 1 YIBS
Project management until now had been highly considered as a discipline well suitable
only to engineering departments. With the advent of globalization which brought about
an increase in competition, the need to constantly innovate products, services, or systems
is on the rise. Project management is particular suited for a business environment
requiring accountability, flexibility, innovation, speed, and continuous improvement.
This is the nature of our environment today. Generally speaking, Project management
practically consists of two main things:
Doing the right project: this consist of ensuring that your project is based upon a
true need and that it is justified on the bases of profitability and feasibility.
Doing the project right: it consists of realizing the project using the right course
of action under well-defined constrains (specifications, time, cost, and
resources). This is the preoccupation of project planning.
In this light this course is out to permit the MBA students to understand, master and gain
skills necessary for identifying and assessing diverse project opportunities, selecting the
developing the right projects and planning its operations to ease effective implementation
and closure in a way that satisfies the expectation of the targeted project client and key
stakeholders.
To fully capture these concepts highlighted, this course is structured into three main
themes as follows:
General Introduction
Definition of a project
Definition Project management
Definition of project developments
2.2. Forms and techniques of feasibility studies: Non-financial and financial techniques
This part seek to inspire and impact the learner with the required skills and competence
for effectively developing project plan in terms of project constraints development (cost
and time estimates, requirement or quality specification analysis, project scope
document). In this light focus shall be on:
To better understand the concepts of project development, a brief recall of the definition
of a project, project constraints and project management is of utmost importance.
What's a project?
1) Time constraint: project is designed to start and end at a specific date. This time is
usually estimated after the project plan is established.
2) A limited budget (resources): a project has clearly started resources for completion
(i.e., human and financial resources). This budget is allocated in function of the
project plan or in function of the project manager’s negotiation with the project
customers.
3) Performance requirement: it consists of précising the technical objective or in
simpler words the characteristics of the product to be realised and its standard (laws,
institutional and organisational norm that must be respected).
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Requirements are précised after the goal of the project has been highlighted but before a
detail plan of the project. It generally consists of pricing the product or service: Quality,
performance, reliability, durability, flexibility, security, life span etc.
3) Problem and objectives: the identification of problems that are affecting the
development of the community by the stakeholders. The elements in the stated
problem(s) are reformulated into positive desirable conditions which are
objectives. The objectives are characterized by SMART
Case 2:
The development here comprise of five stages that can be considered as the product life
cycle
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
1) Initiation: everything that is needed to set-up before work can start. You need to
be entirely sure of everything that is needs to be done and that you have clear
objectives and titles to your project.
2) Planning: involves organizing what will be done, when and by whom?
3) Execution: the implementation of the work of the project (project activities).
4) Controlling: Is to ensure that the plan is kept on track. Monitoring of execution
process is done to also ensure that the project doesn’t spin out of control.
5) Closing: once the project is finished a closing report is written. The closing report
gives the summary of the project, initiatives taken to keep the project on tract,
changes made and why, what you would differently if you were asked to carry out
the project again. The closing report is very important in the planning of future
projects thanks to lessons learned.
In formulating and designing a new project, the following ten steps of project
development can be used.
1) Identify the long range goals: begin by describing the conditions that would exist
in a perfect community for example: employment, education, cultural
preservation, housing, family income etc.
- The identification of the problems preventing the community from achieving its
long term goals. Problems (negative current conditions) are those things that
would have to change or be overcome in order to achieve the long range goals of a
socially and economically healthy community. This is done with the help of
writing a problem statement which is the critical part of project planning and
development. The problem to be addressed should have a clear relationship with
the mission, purpose and long term goals of your organization.
- Assessing the available resources potential of the community and forecasting what
could be borrowed or seek by assistance.
3) Refine assessment of assets: the assets of the community are also identified
4) Determine the project goal: the purpose of the project should be made known to
everyone
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
- The activities of the project are defined once the objectives have been developed.
Many government agencies do use a standard form for listing the project goal, objectives,
and activities called the Objective Work Plan (OWP).
- OWP describes how, when and by whom the project will be implemented.
Results expected and the criteria for evaluating success in achieving them
Benefits expected and the criteria for evaluating success in achieving them
o Activities
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
o Begin and end dates positions responsible for the activity accomplishment
The steps below are considered to be one of the ways of planning projects. They include
A project is successful when the needs of the stakeholders have been met. A stakeholder is
anybody directly or indirectly impacted by the project.
As a first step, it is important to identify the stakeholders in your project. It is not always easy to
identify the stakeholders of a project, particularly those impacted indirectly. Examples of
stakeholders are:
Once you understand who the stakeholders are, the next step is to find out their needs. The best
way to do this is by conducting stakeholder interviews. Take time during the interviews to draw
out the true needs that create real benefits.
Often stakeholders will talk about needs that aren't relevant and don't deliver benefits. These can
be recorded and set as a low priority.
The next step, once you have conducted all the interviews, and have a comprehensive list of
needs is to prioritize them. From the prioritized list, create a set of goals that can be easily
measured. A technique for doing this is to review them against the SMART principle. This way
it will be easy to know when a goal has been achieved.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Once you have established a clear set of goals, they should be recorded in the project plan. It can
be useful to also include the needs and expectations of your stakeholders.
This is the most difficult part of the planning process completed. It's time to move on and look at
the project deliverables.
Using the goals you have defined in step 1, create a list of things the project needs to deliver in
order to meet those goals. Specify when and how each item must be delivered.
Add the deliverables to the project plan with an estimated delivery date. More accurate delivery
dates will be established during the scheduling phase, which is next.
Project scheduling explores possible ways of allocating (limited) resources across tasks.
It involves separating the total work involved in a project into separate activities and judging the
time required to complete these activities.
Split project into tasks and estimate time and resources required to complete each task.
- Create a list of tasks that need to be carried out for each deliverable identified in step
- Minimize task dependencies to avoid delays caused by one task waiting for another to
complete. This depends on the project manager’s intuition and experience.
Once you have established the amount of effort for each task, you can work out the effort
required for each deliverable, and an accurate delivery date. Update your deliverables section
with the more accurate delivery dates.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
At this point in the planning, you could choose to use a software package such as Microsoft
Project to create your project schedule. Alternatively, use one of the many free templates
available. Input all of the deliverables, tasks, durations and the resources who will complete each
task.
A common problem discovered at this point, is when a project has an imposed delivery deadline
from the sponsor that is not realistic based on your estimates. If you discover this is the case, you
must contact the sponsor immediately. The options you have in this situation are:
Project can be late with respect to the initial plan. It is important to track the progress of the
project and compare it to the plan. If significant divergences arise it is necessary to re-plan to
take account of the changed circumstances
This section deals with plans you should create as part of the planning process.
There is no answer unless a question has been asked. By implication, we can’t be talking
of a project unless we know what we seek to attain at the end of the day.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Project initiation is therefore the initial phase of project management which consists to
give answer to the question WHAT is to be done by WHOM.
When this question is posed and responded effectively, it helps us to ask another question
which is; how will it be done (planning phase).
Though by human nature once a problem is identified the natural tendency will be for us
kick off it resolution immediately, which sounds good as it shows we are not wasting
time, it is however not the best approach to solving the problem. This is because we
might discover at the end of the day that the solution adopted was not the most effective.
As such the right approach for developing (kicking off with) your project consists of
faithfully following four main steps:
1) Fully understand the problem: sometimes what appears to be the problem is just
a masked of a bigger problem, digging out this main problem is known as the
identification of a true need.
2) Identify the optimum solution: most often, the problem or need identified, has
multiple solutions and various approaches for carrying them out. The focus at the
level of project development is to determine the best solution that can yield
maximum satisfaction to the target and organization. To do so, the multiple
solutions to the problems have to be evaluated using well-reflected criteria to
determine the optimum solution.
3) Fully develop the solution: once the optimum solution is chosen, the next time to
do for effective project realization a full description of what the solution is
including the method used to achieve (provide) this solution is put in place. This
consists of developing a detailed project plan that précised all constrains of the
project (cost, time and resource estimate, and specification). This will serve as a
road map for realizing the project.
4) Launch the project: The activities involved in the formal kickoff of project
execution depend on the organization’s specific project procedures. Project launch
activities may include preparing a business case, making formal presentations to
management, creating and approving a project charter, and securing funding to
proceed as well as kickoff meeting with the project team.
This part of the course focuses on expatiating on the first two aspects of the project
development process.
The first thing that leads to project initiation is the identification of a need, a problem, or
an opportunity. Once a need, problem, or opportunity surface in the business
environment, it requires a solution for it to be satisfied, solved, or exploited
respectively.
The question is; where can a need, an opportunity or a problem requiring a solution
be found?
Problems (those in the form of threats) and Opportunities originated from the
enterprise’s external environment.
Problems (in the form of weakness) originate in the firm’s internal environment.
2) Micro environment:
It is an assessment of the controllable elements of the firm such as its processes, human
capital, financial resources, product quality, customer satisfaction, and relationship,
among others to identify the firm strengths and weaknesses which help sport out new
needs that require a project.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
This analysis is what précises to us the specific opportunity or need that has to be
satisfied that warrant a project in the organization.
At times, the problem, opportunity, or need is not sorted out by the project manager but
by a project client. A project client is an individual or group of individuals who either
presents a problem to be solved, or need to be satisfy or has the resources to fund the
development of a solution to a problem (a sponsor). In this case it is necessary to be sure
you know what exactly the true need is before engaging in the project.
A project manager must identify clearly what the true need is before engaging in
attempting to solve the problem. A “true need” refers to the most basic problem to be
solved. This is because without being sure of what the true need is, one is likely to
propose the wrong solution. A good project manager is one who is able to propose the
right solution for a given problem. To understand the true need, a project manager can
make use of certain key techniques including the following:
1) Interviewing the project client or key stakeholder: asking the question Why
the project to the right persons is one of the most effective ways of understanding
the problem and uncovering the true need for the project. In the context of an
organization, this questioning may lead to some resistance as some managers feel
you are wasting time. Nevertheless, asking the right questions to the right people
will help you better understand the problem and see if the current solution is the
right one for the project. For example consider a situation where you are call up
by management of your firm to execute a project of a new website for the firm
with key specification defined by the firm. Here it is important to get to know why
the need for a new website. By assessing this request, you might discover this was
typically because of low traffic in current website and hence low sales. In this case
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
developing the website may not be the real need of the firm. Content marketing,
social media marketing may be what is require to pull traffic and not website.
2) Root cause analysis. Root cause analysis is typically used to discover the
underlying causes that lead to a problem, and what could be best done to
solve the problem. This can be done through brainstorming. It can be used
to identify threats by starting with a problem statement (for example, what
could be the cause of low client conversion on our website?)
This is ordinarily a narrative that describes in several sentences the problem to be solved,
the deficiency that’s been discovered, or the opportunity that could be exploited
Impact or effects of the problem: This is a brief description of the types of difficulties
encountered because of the problem or because the opportunity has not been addressed.
• Identification of who or what is affected by the problem. This may be stated in terms
of individuals, departments, or organizations.
• Desired outcome. This is a description of what we would like the world to look like if
the project is successful. It’s ordinarily stated in terms of objectives, critical success
factors, and, in some cases, deliverables.
Value or benefit associated with achieving the desired outcome: This is ordinarily
broken down into two major categories: financial benefits and non-financial benefits.
Nonfinancial benefits are sometimes called intangibles.
Strategic fit. This part is intended to address the question, “Is the pursuit or is the
execution of this project going to be compatible with our current set of company or
organizational strategies?” This is particularly relevant for opportunities.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Interface integration and compatibility issues: This describes how this project
opportunity or the satisfaction of these objectives may relate to other aspects of the
organization.
Uncertainties and unknowns: Also known as action risk, this part represents the early
stages of risk management. Any unknowns, uncertainties, or threats would be identified
here.
Key assumptions: Assumptions ordinarily take the place of missing information. They
represent anticipated values or conditions that we may or may not know to be true.
Constraints: Constraints are limitations within which the solution must be executed.
Constraints may come in many forms, including time, funding, resources, technology, or
procedural constraints.
Environmental considerations: This part is for potential impacts or effects that this
project may have beyond the boundaries of the project itself.
Once the need description or requirement document has been completed, it is important
for the project manager to give concrete answers to two main questions:
This question must be answered before moving further in the project development so as
to avoid engaging resources just to discover later that the problem could not be solve or
the solving of the problem had no significant benefit. These two questions consist of
justification and feasibility analysis of the project respectively. This will be the focus of
unit two.
In order to justify a project and guarantee that the project is worth being realised and that
there exists a solution for the need to be satisfied, the project manager needs to carry out
a feasibility study. A feasibility study is not carried out for its own use, but as a means to
arrive at an investment decision.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Project justification and feasibility is a process in which data is collected analyzed and
conclusions are drawn about a project as to what concerns its workability and
profitability before engaging any heavy investment.
To reduce the chances of investing heavy sums in a project that has no benefit to
the firm,
It also assesses the different possible solutions to the problem and selects that
which is optimal
To minimize the risk of failure and also loss in the project where possible.
The feasibility of a project is justified based on two main analyses: Financial and Non-
financial analysis. They constitute the main categories of feasibility studies. They are
also used to judge which solution is optimal in resolving the problem or unsatisfied need.
A) Non-financial criteria:
1) Market studies:
Who are the actual & potential consumers of this category of product?
In all the market has to be large enough to generate enough sales and profit that can
help recover the investment engage, the sacrifice and risk born in the project. Thus, the
project deliverable we are proposing must be adaptable to the market condition and
clients’ needs and expectations.
2) Technical criteria:
It is concern with the workability of the project as far as the production operation is
concern. The technical analysis begins with an analysis of the product and specification
or quality requirements. Based on this clarification, the analysis will then consist to
answer the questions:
Are the material (desired raw material and components) and technology available
(machines equipment, buildings, etc.)?
Are the required skills and competence to operate the system necessary available
(human resource assessment)?
3) Performance criteria:
It consists of examining the specification of the project and verifying if the firm will
be able to meet these specifications. To validate this aspect, developing a prototype of
the deliverable & pre-testing it with a sample of customers in order to see if the
project defined can meet the performance requirements is very important. The use of
3D technology has helped to ease this aspect of feasibility. (Assignment what realize
research on the 3D technology, how it works)
Ensuring it is not against certain ethical, societal norms and values. It should not hurt
people’s cultures and beliefs system.
5) Environmental criteria:
The environmental impact analysis aims at assessing how the project will affect its
environment positively or negatively, and how the environment could also affect the
project. It thus seeks to:
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
What is the government policy regarding such projects? What are the laws governing the
area of affaire in which the project is situated?
As stated by the PMBOKs, all projects are risky since they are unique undertakings with
varying degrees of complexity that aim to deliver benefits. While uncertainty is a
phenomenon that cannot be calculated, the risk is a quantified uncertainty. It is good to
verify what possible individual or global risks can occur in the project. This is done by
identifying areas of possible deviation from plans in the project.
It consists here of justifying the profitability of the project to the organization. It is done
by comparing the previewed project cost with the firms’ current financial resources, and
to bring out its potential benefits. To do this we can proceed by using different financial
ratios or metrics:
1) Payback period.
Also, call the breakeven point, this metric is very much the same as the second. It helps
show when the project investment will be recovered through benefits.
An enterprise invested a sum of 200000 in a given project that generated the following
cash flows per year as in the following table.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Years 1 2 3 4
Net treasury 66082 87670 89712 31800
flows
Cumulation of 66082
cash flows
Determine the recovery (payback) period of the project.
Solution
2) Net present value and Net actualized value (NPV).
It consists of determining the present value of all future cash flows expected from a
project. It represents the difference between the actualized cash flows from point zero
and the capital invested. It’s only used to evaluate investments of the same nature. Its
calculation answers the question: How much money will this project make?
t −1 (1+i) t −1
It can be calculated in case where the cash flows are constant in all the years as:
−n
1−(1+i)
NPV= -Io + CF [ ] + VR
i
Remark: in case we have several investment choices to make, we select the investment
project that has the highest NPV
Determine the NPV of this project at the interest rate of 12 % and justify if it is
profitable or not.
It is a calculation of the percentage rate at which the project will recover its invested
value. Also called the rate of marginal efficiency of capital (EMK), it is the actualization
rate that render NVP =0. That is when the initial capital (Io) is equal to the sum of cash
n n
flows actualized i.e., NPV =−Io+ ∑ CF(1+i) =0 or say when Io=∑ CF (1+i)
−n −n
t −1 t −1
The project is said to be profitable if the TIR is superior to the rate of reject (NVP). That
is when r >i fixed by capital owners. We generally retain the investment with the
highest TIR.
Through iterative successions, a method that is quiet long given that we need to
calculate the NPV successively until we reach the point where it becomes zero.
Or
Through linear interpolation.
Where it is obtained as follows:
NPV 1−0
IRR= i1+ (i2-i1) ( NPV 1−NPV 2 ). Note at i1 NPV 1>0, i2>i1. At i2, NPV2 < 0
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Example: let reconsider the example of the company Bitacola, determine the IRR,
By using linear interpolation let’s calculate the NPV at 20% and at 30%.
It calculation answers the question: How rapidly will the money be returned?
Application 2: to increase its yield, CAFÉ RESTO LA REFERENCE locates a carrefou Tsinga
decides to invest 2000,000F in the acquisition of a new machine. The operating time of this
machine is 5 years, following the linear amortatisation, and its residual value is zero. The
REFERENCE Restaurant is exceptionally subject to a company tax at the rate of 50%. Other
information includes:
Elements 1 2 3 4 5
Sales 1700000 1940000 2280000 2670000 3160000
Deductible 1200000 1300000 1500000 1750000 2100000
Charges
TAF: Calculate:
Generally, when an enterprise has to choose between several projects, she naturally will
choose that which generates the highest profit or say highest NPV. Meanwhile this
project does not naturally always have the same original value (Io). This highly reduces
the bases for comparison. To correct this bias, it is important to calculate the IRR and the
IP which will then permit a realistic comparison. Hence the profitability index expresses
the relationship between net actualize value and the amount invested. It is given as the
sum of capacities of auto financing/ investment expenditure. Or
PI or IR =
∑ CF (1+i)
−n
∨1+
NPV
Io Io
Example: basing on the initial investment project of BITACOLA above determine the IR.
Once the project is confirmed as feasible and justified, the project manager need to
answer the second question which is, Is there a solution? Which is must suitable?
It consists of identifying the best solution for the project.This step requires the
contribution of several persons. We begin by bring out a list of alternative solution for
the project. They could be gotten from:
Brainstorming technique: it consists here for all these members to contribute ideas
in a spontaneous manner in quantity and quality.
The potential solutions identified has to be screen down to only those that are worthy of
further development, investigation, and definition. The process for selecting the optimum
solution begins by evaluating each alternative solution in terms of:
Its capacity to satisfy the most critical aspects of the project namely:
requirements, budget, time & strategic alignment.
For non-financial, let consider a situation where a firms is faced with delays in
delivery of their products in the market. She believes the need to be satisfied is
getting its own transportation means instead of basing on intermediaries. In this
case the enterprise has to evaluate the different option of transportation: car,
bikes, vans and or different varieties of cars. To do so she proceeds by using non-
financial criteria.
The evaluation attributes here might include: Security, comfort, speed and cost.
Once this solution is sorted out we then prepare the project scope and initiation
document to be presented for management to approve the project.
Attribute brand Speed (10) Security (8) Comfort (5) Operating Total
cost (3) point
Car 6 10 8 8 32, (204),
Bike 9 4 5 5 23, (162)
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Objective criteria
1) Problem/opportunity statement:
4) Assumptions made:
6) Strategic fits:
7) Risk:
8) Constraints:
One of the key elements of the project initiation document is the scope statement. The
project scope is a major part in the planning process of the project. We need does to
develop this scope statement for management or client understanding of the project.
Defining the project scope sets the stage for developing a project plan. Project scope is
a definition of the end result or mission of your project. That is the product or service for
your client/customer. The primary purpose is to define as clearly as possible the
deliverable(s) for the end user and to focus project plans.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
A project scope describes what you expect to deliver to your customer when the project
is complete. Its definition is very essential because it is a document that will be
published and used by the project owner, the project sponsors, and the project
participants for planning and measuring project success, and the project client for
judgment (evaluation) of the project deliverable. It is developed by asking questions to
the right persons who in this case is the project client, owner or sponsor. This is done
via
Focus groups (case of more than one client) need to be done with the client so as
to come out with:
Your project scope should define the results to be achieved in specific, tangible, and
measurable terms. The Project scope development consists of précising the following
components of the project:
The objective defined must be SMART. It answers the questions. What, when and how
of the project. All projects target (specification, cost and time) is part of project
objective.
Most frequently than not a product or service will have technical requirements to ensure
proper performance. For example, a technical requirement for a personal computer might
be the ability to accept 120-volt alternating current or 240-volt direct current without any
adapters or user switches. Performance requirement refers to the project specification
defined by the project manager and the client once the goal of the project has been
given to the project manager. It describes the desired features (performance x-tics) of
the deliverable in a quantified manner to ease the measurement of results. The project
performance requirement in general manner comprises of elements such as:
Repair facilities
Durability,
Flexibility,
regularity compliance, Material use,
Operability (usability)
3) Deliverables:
The next step is to define major deliverables—the expected outputs over the life of the
project.
4) Milestone:
The milestone schedule shows only major segments of work; it represents firstly, rough-
cut estimates of time, cost, and resources for the project. It is build using the deliverable
to identify the key point of works in the project. Milestones should be easy for all project
participants to recognize
The project limits should be defined in order to avoid false expectations or future
problems. The spending of resource and time on wrong problem
Example:
System maintenance and repair will be done only up to one month after final
inspection;
Client will be billed for additional training beyond that prescribed in the contract,
etc.
Example:
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
The completion of the project scope definition should end with the client. The aim is to
ensure understanding and agreement before any further steps. This helps answer the
questions:
N.B. 1: Scope definition should be as brief as possible but complete; one or two pages
are typical for small projects.
A good project initiation and scope document leads to the putting in place of the project
charters. A project charter refers to a document that authorizes the project manager to
initiate and lead the project. This document is issued by upper management and provides
the project manager with written authority to use organizational resources for project
activities. Often the charter will include a brief scope description as well as such items as
risk limits, customer needs, spending limits, and even team composition.
Once this is complete the development of the project team become important before the
effective planning of the project
Though a project might be identified by an entrepreneur via his innovative and risk
bearing characteristics, or is simply handed over to a project manager by his organization,
the project is not however planned, executed, controlled and terminated by the project
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
manager alone. It requires the integrated effort of diverse persons at different levels of the
work breakdown structure. These individuals are known as the project team.
The success of a project depends on the quality of the project team members and their
commitment to the project. This quality and commitments depend on its part on the
project manager’s ability to select the right persons for the project and ensure and
effective management of all those selected for project via out the project life cycle. This
management is ensured via good interpersonal skill, communication, leadership and
appropriate motivational styles. Here we seek to answer the questions when is the
appropriate time for project team development? Who should be a member of
project team and how can a strong project (high performance) team be developed?
The project has been fully defined and has been approved by management for
execution. Here those who helped you with ideas in defining (initiating) the
project should if willing formally constitute part of the team.
The WBS is being developed. This is because: WBS help indicate the skills
required to execute the project
It is good that we know how a team evolve and develop over time. Several models help
explain this. The most influential model holds that project teams evolves and develop
over time through 5 main stages:
2) Storming: it is a reaction phase to the info gathered in the forming stage. They
react to the project objectives, their role, and responsibility and to your type of
leadership. It often leads to conflict between parties. Disagreement can come from
different angles such as: competition for leadership, differences in ideas,
procedures, and mode of communication. It is a stage of high criticism.
3) Norming: Here, team members become reconciled with the project and their role
within it. They begin to focus much more on the work to be done and behavioral
norms are established to guide conducts.
4) Performing: Team members work well together and produce high-quality results.
All members understand one another’s task responsibilities and behavioral patterns
solve problems, make decisions and an easy manner.
5) Adjourning: it is the final stage of the team. Here member have two main
concerns: firstly, is how to round up the project, and secondly is depression on
losing friends as the group gradually dies down. There is high absence of member
interest & support
Model implication
This model has several implications for those working on project teams.
Firstly it provides a framework for the group to understand its own development.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
It help project managers to reflect on the type of leadership require at each phase
of the project team development.
It is not enough to have all team members on board for the project. One other
thing to do is to galvanise their energy on the project. To do so we simple need to
carry out two things:
Identify in the project team who is must qualifies to perform each task in the
project. It consists of sharing responsibilities to the project team members.
The responsibility to each task is broken down into two: Prime and support
responsibility.
A task can have only one prime responsibility, but can have many support
responsibility.
Assign staff to a task because they have the right skill and not because they have
time,
Ask and not tell; who is good at what, wants to do what, cannot do what?
1) The skill inventory matrix: on vertical axis is written the names of members, and
on the top horizontal axis the major project task
2) The responsibility matrix: on the vertical axis we write the different tasks of
the project, on the top horizontal axis is the name of those with a prime or
support responsible for each tasks.
Project managers play a key role in developing high-performance project teams. They
recruit members, conduct meetings, establish a team identity, create a common sense of
purpose or a shared vision, manage a reward system that encourages teamwork,
orchestrate decision making, resolve conflicts that emerge within the team, and
rejuvenate the team when energy wanes. These elements can be explained as follows:
In case of priority based project the responsibility of recruiting and selecting the project
team members is entirely given to the project manners, but when the project is less
critical, the firm itself may proposed the persons to work on the project. However in must
matric organization, the manager will have to work with the functional managers to
obtain project team members because they largely determines whether their functional
unites employee will be available for the project.
To select the right project team members, the project manager must base on objective and
subjective criteria. Objectively it consists to select members based on their competence
and experience on the project. Subjectively, it will consist of selecting members based
on their attitude towards project and the project itself, the problem solving skills,
availability, credibility, and political connection to key stakeholders, technological
expertise, ambition, initiative and energy, as well as the familiarity of members. The
knowledge about these subjective elements can be gained from the team members
functional managers, past project managers and colleagues or through target interviews
with each potential team member.
2) Conducting meetings
Meeting can be broken down into kick-off meeting and sequential meetings. Each of
these meetings has a specific target to fulfill and need a specific style of conducting team
to ensure success.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
This refers to the image team members hold about the project team. An identity, is key to
building social ties which helps to render the team member more committed, engaged in
the project. Project managers need to try to make the project team as tangible as possible
to the participants by developing a unique team identity to which participants can
become emotionally attached. This identity (sense of belonging) is built generally
through team meetings, co-location of team members, building team names, and
team rituals
It refers to an image a project team holds in common about how the project will look
upon completion, how they will work together, and/or how customers will accept the
project. It answers to the questions “What do we want to create?” Visions come in a
variety of shapes and forms; they can be captured in a slogan or a symbol or can be
written as a formal vision statement. The characteristics of an effective vision include the
following. It should communicate, have a strategic sense, and create passion and
inspire others. E.g. creating a sport car we could but the vision statement in the form
“pocket rocket”
Finally, a shared vision for a project fosters commitment to the long term and
discourages expedient responses that collectively dilute the quality of the project.
While project managers tend to focus on group rewards, there are times when they need
to reward individual performance. This is done not only to compensate extraordinary
effort but also to signal to the others what exemplary behavior is. Examples of this kind
of rewards include:
Disagreements and conflicts naturally emerge within a project team during the life of the
project. Participants will disagree over priorities, allocation of resources, the quality of
specific work, solutions to discovered problems, and so forth. Some conflicts support the
goals of the group and improve project performance. There are generally two kinds of
conflicts in projects: functional and dysfunctional conflicts while functional conflict
(disagreement in terms of task or procedure of execution) should be encouraged,
dysfunctional conflict on the other hand should be discouraged at all cost.
Over the course of a long project, a team sometimes drifts off course and loses
momentum. The project manager needs to swing into action to realign the team with the
project objectives and step on the pedal. There are both formal and informal ways of
doing this. Informally, the project manager can institute new rituals like the “toy roaches”
to reenergize a team. Formally we can schedule team meetings.
Only a successful management support for you project can enable you to get every
project teams member’s energy engaged in the project.
Lack of commitments,
poor leadership
Poor communication,
Misrepresentation
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
This part seeks to inspire and impact the learner with the required skills and competence
for effectively developing project plan in terms of project constraints development (cost
and time estimates, requirement or quality specification analysis, project scope document
While in the last part we hard focused on doing the right project, in this chapter our
preoccupation is on doing the project right. As stated by Roy Keane; “Fail to plan,
plan to fail”. Therefore, planning is the most essential aspect of project management
because it permits to provide the blueprint (road map) to be followed in realizing the
project. It is realized in the following stages:
Project planning
At this level planning is focused more on the process involved and less on the technical
aspects required to realize the project. To ensure effective coordination in our project, we
need to develop a sound integrated project plan.
An integrated project plan is an effective tool for the coordination of project activities
(works). It consists of the combination of separate schedules, costs, human, and material
resources, and sub-plans through a work breakdown structure. Others wised said an
integrated project plan is a clear-cut work breaking down the structure of the project.
The putting in place of the integrated project plan, permit to facilitate communication
between top management, project managers, functional managers, project teams,
project contractors (if involved), and project client.
In building such a plan, the project team manager should make sure:
He involves the personnel in the early state of planning and until the final plan is
complete,
It determines and shows the efforts require in order to fulfill the projects,
It identifies all the personnel responsible for performing the project task
Clearly show us the different resources require for each group task and the
duration of each group task in the project.
To plan a project, simply consist of asking and answering the following questions. Before
then, let’s remain our self that these are questions that could have been initially answered
in the project initiation phase.
1) What is to be realized? Here, the project manages and the team answers this
question by carrying out a detailed review of the technical objective practiced in
the initiation stage.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
4) When? it consists of scheduling and sequencing each task and précising the
duration of each task,
5) How much? It consists of bringing out the cost estimates of for each task and for
the overall project.
This implies project planning is a process that comprises of five main steps. Each of the
above questions corresponds to each of the five steps of project planning. They are:
Without waste of time, the project hard been already defined in the initiation phase. At
this stage, defining the project consist of a critical review of the project objectives,
specificities, budgets and time. This helps you to see if the initial defined assessment
where correctly made before you proceed with the project.
Every project success or ability to meet or exceed customers and top management
satisfaction is evaluated by how well it is completed under the three main constraints of
cost (budget), specifications (performance criteria) and time (schedule).
Unfortunately, completing projects smoothly respecting this constraint is rarely true.
Rather, at times one has to compromise the project specifications in order to get the
project done at the right time and cost and vice versa. Often the longer a project takes,
the more expensive it becomes. The question is which of the constraints can be
compromise in the project without dropping the client’s satisfaction?
In order to manage the trade-offs among time, cost, and performance, the project
manager must define and understand the nature of the priorities of the project. To
succeed they need to have an open discussion with the project customer and top
management to establish the relative importance of each project constraint in the project.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
One technique used in practice that is useful for this purpose is developing a priority
matrix.
it is a matrix that indicates which of the project criterion is constrained, which should be
enhanced, and which can be accepted.
Constrain criteria. It is when the original parameter is fixed. That is, the project
must meet the completion date, specifications and scope of the project, or budget.
Accept. For which criterion is it tolerable not to meet the original parameters?
That is in case we have to compromise a constraint to succeed in the project, is it
permitted for the schedule to be increase, for performance of the project to be
reduced, or to go over budget? It is indispensable to identify what can be
compromise without dissatisfying the client.
Uncompromisable= constraint
Constraint
Reduce time =enhance
Enhance
Accept
Priority varies from project to project. For example, in software project, time to
market is critical, and companies like Microsoft may defer original performance
specification or cost to later versions in order to get to the market first. Alternatively, for
special event projects (conferences, parades, tournaments) time is constrained once the
date has been announced, and if the budget is tight, the project manager will compromise
the scope of the project in order to complete the project on time.
Even though some would argue that all three criteria are always constrained and that
good project managers should seek to optimize each criterion, it is rarely possible in real
life. In priority, there are likely to be natural limits to the extent managers can constrain,
optimize, or accept any one criterion.
It provides a forum for clearly establishing priorities with customers and top
management so as to create shared expectations and avoid misunderstandings.
Finally, the matrix is useful midway in the project for approaching a problem that
must be solved.
Once the scope and deliverables have been identified, the next step consists to identify
the major project activities and sub-activities under each major activity right up to the
smallest tasks (Work package) involved in the project in a hierarchical manner. This is
called the Work Break down Structure (WBS).
This implies the work is organized in a hierarchical manner from major tasks down to
the least task per category of major tasks. Once created it becomes the basis for
scheduling, allocating resources, cost, and time estimates.
To develop a good work breakdown, you need to ensure the involvement of the project
team. This can be done via meeting sessions with the project team, questionnaires, or
through interviews (in depth or focus group interview).
For each major work, what task must be performed? Once the smaller task is
realized, we then assign responsibility to each task.
Basically, the WBS is an outline of the project with different levels of detail. It is
generally made up of five main steps as follows:
1 Project
2 Deliverables
3 Sub deliverable
Cost account
5
Work package
Major project work deliverables/systems are identified first; then the sub deliverables
necessary to accomplish the larger deliverables are defined. The process is repeated until
the sub deliverable detail is small enough to be manageable and where one person can be
responsible. This sub deliverable is further divided into work packages.
Because the lowest sub deliverable usually includes several work packages, the work
packages are grouped by type of work—for example, hardware, programming, testing.
These groupings within a sub deliverable are called cost accounts. This grouping
facilitates a system for monitoring project progress by work, cost, and responsibility.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Assess
requirements Evaluate Design Develop Test Implement
Realization
Modification Test of of final
of design performance product
Modification
Test of Launching into
of procedure packaging the market
Modification of Test of
design reliability
The WBS defines all the elements of the project in a hierarchical framework and
establishes their relationships to the project end item(s).
It facilitates the estimation of cost, time, and technical performance at all levels in
the organization over the life of the project.
The WBS also serves as a framework for tracking cost and work performance.
The WBS also provides management with information appropriate to each level.
For example, top management deals primarily with major deliverables, while first-
line supervisors deal with smaller sub-deliverables and work packages.
The WBS can also be used to define communication channels and assist in
understanding and coordinating many parts of the project at the different levels of
responsibilities.
Example
Following the advent of the CORONA virus pandemic that has plagued the world since
2019, company Relaxes Global a hospitality company dealing with restoration, hotel, and
order services witness a drastic fall in demand for its product. In view of understanding
what strategic approach could be adopted to respond to the fall in demand, decided to
carry out marketing research.
c) Pilot-test questionnaire
d) Finalize questionnaire
e) Print questionnaire
g) Mail questionnaires
j) Analyze results
N.B. indicates that for the first three tasks Mirabel has major responsibility with Boba
having no responsibility. As for the rest of the task indicate the responsibilities according
to your personal decision.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
Once the work breakdown has been realized we can then get to step:
It consists of determining the time, cost, and resources necessary for the execution of
the project. That is, we estimate the duration of each task (the required hours of work for
each task) and how much an hour of labor costs. Once the hourly rate is determined, we
can then multiply each number of hours per task by the hourly rate to obtain the hourly
cost per task. Concerning resources, we determine how many men are required per task,
and what kind of material resources (raw materials, machines, equipment, and maybe
auxiliary services) are necessary for each task to be performed. The cost of each of these
materials required at each task level is to be added to the hourly cost/task to obtain the
total cost per task. The summation of the time and cost for the entire task involved in the
project gives us the total time required and total cost of the project.
Note, the determination of required time and cost do vary from one project manager to
another. Some organization does have standard estimate procedures but orders do not. In
this case, the estimate is left in the hands of the project manager and the team.
Also, in an organization, sometimes you are called up to execute projects that are
estimated to were already pre-done by the top management. Other times the project
estimate is not done rather they are left for you to do so. The question one needs to
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
answer here is; in case the estimates were already done do we still need to estimate or
we simply accept the project and go ahead with its execution?
Answer: whether the project was estimated or not it is advisable for the project manager
to estimate the project by himself with the project team members to ensure accuracy and
avoid engaging in a project whose cost and duration are mechanical to him.
1. Develop the task estimates: here it should be done in a realistic manner and as
described earlier above by the team members responsible for executing the project.
They supply to you: the amount of time necessary to complete a task, the direct
labor cost, and the material cost of the task.
The estimates are said to be more accurate when the team succeeds to estimate possible
increments of work, and the non-active period (which can be guided by the functional
manager based on their assignments to the personnel working on the project).
Once this information is supplied, you the project manager based on historical data and/
or experience analyze and validate the estimates. The estimates can be gotten using once
more the PERT system. Once complete we go to the next step
In case the objectives of the project and its estimates were pre-done by management
before it was assigned to you, after developing your estimates you must compare:
Firstly, the pre-stated project objective with what has been forecasted as
realizable,
Top management previewed the budget (cost) and planned cost (your own
estimated cost)
The aim of this comparison is to see if the strategy, resources, and time chosen by
management are appropriate for the project to be realized. If the comparison is equivalent
to the pre-established situation, then we run the project as a preview by management. But
if they are large variations, we have to move to another level of estimate call
negotiations.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
In case the time and budget previewed by management were lesser, it is good to
negotiate for an additional of time and budget. This often leads to resistance. To reduce
the risk and resistance involve, make sure your estimates are thoroughly done and there
are no excess and proves that the project can be realized with the pre-stated management
time and budget. Note. Ensure you win over this situation because failure can demotivate
or reduce team members commitments if they but is not reviewed. Generally, this
negotiation could be fore management to:
Alter the schedules and cost objectives in other to create sufficient time and
funds to run the project. This is only possible if the alteration still permits the
project to produce the desired deliverable and ROI without bridging any
previewed legal or environmental constrains.
Reduce the technical objective of the project. This optic is only possible if you
show prove that it will still lead to the creation of the product that will meet
market needs and provide profit.
This happens if the management estimates were in excess of what has observed by
project team and manager. It is the less resistant modification but management only does
this if you guarantee you will not be calling up for restitution of this resources and time in
the future. Management in this light can either:
Increase the technical objective without changing the time and cost or
Modification of the original project plan to a plan acceptable to you and your
project team, capable of satisfying top management and the project client.
Cancellation of the project: after all examination of the project, if its proven that
with its specification, taking into account the firms’ resources, time and other
constraint, it will be difficult to be realized in a way that provides profit, it will be
worthy for it to be canceled.
Take on the project on the basis of best –effort (that is giving your best to
achieve it with pre-stated time and cost). This is however not advisable.
Since the required cost and time for the project has now been effective reviewed,
modified and confirmed we can now put in place a program and sequence of task to be
effectuation.
It consists here of arranging the different task in the project firstly in a logical manner
that shows start time of each task and the end time (scheduling), and then establishing
the relationship between the different task (sequencing). Hence scheduling and
sequencing consist of programing the different task in a chronological manner with a
clear indication of the relationship between the different tasks. That is, showing which
tasks starts first, which one follows second and which tasks are interrelated. The method
used to demonstrate this aspect of scheduling is the PERT (it is an arrow diagram made
up of nodes showing the classification of different of task from start to end and their
interrelation) and CPD (those set of tasks, in the project that no delay is accepted. That is
task with zero delays). We come back to this in detail in section two.
It is quite a challenging task but very important because projects and non-project
activities of the organization usually compete for the limited organizational resources.
Thus, balancing plans consist of balancing the need for resources in the project itself, and
for other projects and non-project activities of the organization.
At the level of the project itself, it consists to ensure that its resources requirement (time
and assets) do not exceed the organization’s capacity. This can be done using the project
management software. Also ensure that the team members’ commitments to project are
at acceptable level with regard to their callings in their respective functional departments.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
At the level of its relation to other projects, it consists to compare its needs with other
existing projects of the firm. The secret here is to bring out all the workloads involved for
all other project and the current project as well as for non-project activities. No omission
of a single work load should be done else we labor in vain. It’s must suitably do by the
functional managers. To ease its realization, we could use an automated system (that is a
computer assisted balancing software).
Once balancing has been realized we then step to the last step
Here the document recording the targets (target completion date, target cost, target
resources,) objective maxima (latest completion date, maximum cost, maximum
resources utilization) is established. It an agreement reaches between the project manager,
project clients, top management and functional managers. It has to be signed by all of
these actors. It serves as a base for future modification of scope and for evaluation of
performance. These plans are then made public to all participants on the project which
become a road map for the realization of the project.
Generally speaking, the cost, time and resources estimates for the project examine above
can be established in an organization using two main approaches:
1) Top down-planning approach: here all the WBS, cost, time and resources
utilization are determined in an incomplete manner based on historical data by top
management. The estimated data and WBS is then passed on to the lower
management hierarchy who on their part further breaks down the work into
smaller task. The weakness is that only the major elements of the WBS are present
more details in terms of smaller task required to meet objectives are absent. Lack
of operational reality as estimates are simple based on present data and past
history.
2) Bottom-up planning: it planning that rather start from the lower hierarchy where,
the project team member is those who does the cost, time and resource estimates
which are then summed up from the bottom to the top to determine the full
requirement for the project. This is the best method because it is those who are
acquainted with the task that develop the task estimates, meaning it can be
corresponding to reality. However, it lacks a strategic hierarchy of planning and
may include several irrelevant aspect and cost for the project.
ADVANCE PROJECT DEVELOPMENT AND MANAGEMENT MBA 1
3) The best option is the combination of both approaches. This is what must
organizations go in for. In this perspective after a top-down plan has been prepared
giving the project a good strategic direction and focus, the partial WBS is handed
over to lower hierarchy for a detail WBS and complete reality costing. This is
what provides great results.
Several technics can be exploited to ensure an effective project planning and execution.
They include the PERT, CPD, Network diagrams, Giant charts, etc. A single
diagram (PERT) can be used to demonstrate the first three technique.
However, the detail skills on using these techniques will be the focus of advance project
planning. Ensure to fully engage in the course for effective project development and
management. However, network was already explained and solve. Hence would
constitute part of your course evaluation.
End of course
Until you believe, you can’t make it, until you take a step you can’t improve your
situation. Growth is based on believe accompanied by action (Dr sky 2023)