FUNDAMENTALS OF

PROJECT
MANAGEMENT

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 CHAPTER ONE
GENERAL INTRODUCTION

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 1.1. DEFINITION OF PROJECT

 The term project may be defined as a series of related activities

(jobs) usually directed toward some major output and requiring
a significant period of time to perform.

 A project is an activity that require resource, time, objective,

with fixed deliverables.

 A project is accomplished by performing a set of activities. For

example, construction of a house is a project. It consists of
many activities like digging of foundation pits, construction of
foundations, construction of walls, construction of roof, fixing
of doors and windows, fixing of sanitary fittings, wiring, etc.

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 …Cont’d
According to Kerzner (1998), a project is: “…any
series of activities and tasks that:
have a specific objective to be completed within certain
specifications
have defined start and end dates
have funding limits (if applicable)
consume resources (i.e., money, people, equipment).”

4
 …Cont’d
 Four key considerations always are involved in a
project:
(1) What will it cost?
(2) What time is required to complete the project?
(3) What technical performance capability will it
provide?
(4) How will the project results fit into the design and
implementation of organizational strategies?

5
 …Cont’d
Typical Project Examples
(a) Construction projects
(b) Development projects
(c) Weddings, remodeling a home, and moving to
another house are certainly projects for the families involved
(d) Company audits, major litigations, corporate
relocations, and mergers are also projects.

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 1.2. PROJECT GOALS
 Virtually every project has three overriding goals: to
accomplish work for a client or end-user in accordance
with budget, schedule, and performance requirements.
(i) Budget: the budget is the specified or
allowable cost for the project.
-It is the target cost of the work to be done.

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 …Cont’d
(ii) Schedule: the schedule includes the time period
over which the work will be done and the target date for
when it will be completed.
(iii) Performance Requirements: Specify what is to be
done to reach the end- item or final result.

Note: The three goals are interrelated and must be

addressed simultaneously; exclusive emphasis on any one goal
is likely to detract from the others.

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 …Cont’d
 The above goals can be met in two ways:

 By using project management disciplines and project

management tools, and
 By following project management processes.

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 1.3. PROJECT MANAGEMENT

 Project management is:

an organized venture for managing projects.
“…the application of knowledge, skills, tools and
techniques to project activities in order to meet stakeholders
needs and expectations from a project.” – (PMI,
1996):PMBOK
“The process by which projects are defined, planned,
monitored, controlled and delivered so that agreed benefits
are realized,” – (APM, 2006): PMBOK
“Project management is the skills, tools and management
processes required to undertake a project successfully”.

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 …Cont’d
 Project management comprises:

 A set of Skills. Specialist skills and experience are

required to reduce the level of risk within a project and
thereby enhance its likelihood of success.

 A Suit of Tools. Various types of tools are used by project

managers to improve their chances of success. Examples
include registers, planning software, modelling software,
audit checklist and review forms.

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 …Cont’d

 A Series of Processes. Various management techniques

and processes are required to monitor and control time,
cost, quality and scope of projects.

Examples include time management, quality

management, change management, risk management,
etc.

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 …
Cont’d

 Every person, every organization and every nation is

concerned with project management.
An individual builds a house. It is a project to him.
An organization sets up new factory. It is a project for the
organization.
The government of a country builds high ways, dams,
thermal power plants, hydropower plants, airports, etc.
These are all projects that a country undertakes.

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 1.4. DIFFERENCES BETWEEN PROCESS & PROJECT
Process
o Repeat process or
product/service
o Several objectives
o Ongoing
o People are homogenous
o Well-established in systems in
place to integrate efforts
o Greater certainty of
performance, cost, schedule
o Part of the organization
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Project
• New process or product/service
• One objective
• One shot – limited life
• More heterogeneous
• Systems must be created to integrate
efforts
• Greater uncertainty of performance,
cost, schedule
• Outside of line organization
 1.5. PROJECT CHARACTERISTICS

Major project characteristics are as below:

1. Objectives
 A project has a set of objectives or a mission. For
example, the objective of a project may be
construction of a highway connecting two cities “A”
and “B”, covering a distance of 200 km. Once the
construction of the highway is completed the project
comes to an end.
 The objective is specified in terms of cost, schedule,
and performance requirements.

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 .. …
Cont’d
2. Life Cycle
 A project has a life cycle. The life cycle consists of the
following phases/stages:

a) Project Initiation
b) Project Planning
c) Project Execution, and
d) Project Closure

 The task, people, organizations, and other resources

change as the project moves from one phase to the next.

16
 …Cont’d

a) Project Initiation
 It is the first phase in the project
 In this phase a business problem (or opportunity) is identified
and a business case which provides various solution options is
defined.
 A feasibility study is then conducted to investigate the
likelihood of each solution option addressing the business
problem and a final recommendation is put forwarded
 Once the recommended solution is approved, a project is
initiated to deliver the approved solution.

17
 …Cont’d
o A “Term of Reference” is completed, which outlines the vision,
objectives, scope, deliverables and structure of the new project,
and a Project Manager is appointed.
o Then the Project Manager begins recruiting a project team and
establishes a Project Office environment.

o Approval is then sought to move into the detail planning phase.

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 …Cont’d
b) Project Planning
 Once the scope of the project has been defined in the
“Terms of Reference”, the project enters the detailed
planning phase. This involves the creation of a:

 Project Plan (Outlining the activities, tasks, dependencies

and timeframes)
 Resource Plan (listing the labour, equipment and
materials required)
 Financial Plan (identifying the labour, equipment and
materials costs)

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 …Cont’d
 Quality Plan (providing quality targets, assurance and control
measures)
 Risk Plan (highlighting potential risks and actions taken to
mitigate them).
 Procurement Plan (identifying products to be acquired from
external suppliers).
 Communications Plan (listing the information needed to inform
stakeholders)

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 …Cont’d
c) Project Execution
 This phase involves the implementation of each activity and tasks
listed in the Project Plan.
 While executing the activities and tasks, a series of management
processes are undertaken to monitor and control the deliverables
being produced by the project.
 Once all the deliverables have been produced and the customer has
accepted the final solution, the project is ready for closure.

21
 …Cont’d
d) Project Closure
 Project closure involves:-
 releasing the final deliverables to the customers,
 Handing over project documentation,
 Terminating supplier contracts,
 Releasing project resources and communicating the closure of
the project to all stakeholders.

 The last remaining step is to undertake a Post Implementation Review

to quantify the overall success of the project and list any lessons learnt
for future project.

22
 …Cont’d
3. Definite Time Limit (Temporary)
A project has a definite time limit. It cannot continue forever.

4. Uniqueness
Every project is unique and no two projects are similar.
Constructing a highway connecting two cities A & B and
constructing another highway between cities C & D are unique
in themselves. In view of the differences existing in the
organization, infrastructure, location, technical specifications
and the people behind the projects.

23
 …Cont’d

5. Teamwork
Any project calls for the services of experts from a host
of disciplines. Coordination among the diverse areas call
for teamwork. Hence, a project can be implemented only
with teamwork.
Perhaps more than any other human endeavor, project
work is teamwork.

24
 …Cont’d

6. Complexity
A project is complex set of activities relating to diverse
areas. Technology survey, choosing the appropriate
technology, procuring the appropriate machinery and
equipment, hiring the right kind of people, arranging for
financial resources, execution of the project in time by
proper scheduling of the different activities, etc. contribute to
the complexity of the project.

25
 …Cont’d

8. Risk and Uncertainty- a risk free project cannot be

thought of.
9. Sub-contracting- to give a contract to somebody else to
do part of the work.

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 1.6. REASONS FOR PROJECT INITIATION
 The basic purpose of initiating a project is to accomplish
some goals.
 Projects are initiated either to take advantage of an
opportunity or to solve a problem, i.e.
1. to respond to a new customer request and to the
environment,
2. to improve trouble handling (solve/correct problems).
3. to respond to a regulatory ruling.

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 1.7. PROJECT TERMINOLOGY
 When discussing project management, it is sometimes useful
to make a distinction between such terms as program,
project, task, and work packages.

 The military, the source of most of these terms, generally

uses the term program to refer to an exceptionally large,
long-range objective that is broken down into a set of
projects. These projects are further divided into tasks, which
are, in turn, split into work packages that are themselves
composed of work units. Here is the hierarchy.

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 …Cont’d

Program – refers to a group of projects.

Project –a specific, finite task to be accomplished.
Task –is a further subdivision of a project.
Work packages –is a group of activities combined to
be assignable to a single organizational unit.
Work unit – refers to the smallest unit in a project
activity.

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 1.8. TYPICAL PROJECT PROBLEMS
1. Scope may not be clearly defined when commitment is
made to a client.
2. There may not be enough resources allocated (people,
money, materials, time, space, etc.)
3. Conflict of interest between or among stakeholders (ops
vs. engineers, sales vs. technical support, line vs. staff).
4. Commitment to unrealistic dates – the PM may be too
optimistic about the completion date of the project.
5. There may be unclear roles and responsibilities.
6. Things may go wrong for some natural reasons.

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 1.9. FUNCTIONS OF THE PROJECT MANAGERS

 Project managers perform the following major functions:

1. Plan work (scope, budget, schedule),
2. Obtain and manage resources,
3. Resolve conflicts and problems,
4. Motivate people
5. Communicate to the team, to the organization, and to the
clients,
6. Set priorities,
7. Make decisions,
8. Control technical quality, budget, and schedule
9. Integrate multiple skills

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 CHAPTER TWO
PROJECT CYCLE

Before any project is actually realized it

goes through various planning phases.
Therefore, the different phases through
which a project passes constitutes what is
often called “the project cycle”. The main
features of this process are information
gathering, analysis and decision making.

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 Some more terms…….

Project life cycle

Phases of a project
Phase exits or stage gates
Stakeholders

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 Project Life Cycle
Project management is about acquiring or achieving
the project goal

Most projects need to be broken down into a logical

sequence of ‘phases’, known as the project life cycle.

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 Phases of a Project
 Organizations normally break a project ?
down into several project phases for How do you eat
an chicken?
better management control
 Collectively, the project phases are
known as the project life cycle
 Each project phase is marked by the
completion of one or more deliverables.

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 Stage Gates
 Each phase ends with a review of the deliverables
and performance in order to detect and correct
errors and to decide if the project should continue
into the next phase.
 The phase end reviews are often called phase
exits or stage gates.

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 4 Phases of a Project
 Project Initiation
 Project Planning
 Project Execution And
Control
 Project Closure

Collectively these four phases

represent the ‘project life cycle.’
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 What is in each of the 4 Phases of a Project?
Project Project Project Project
Initiation Planning execution closing
and control
Scope WBS Network Hand over
identification OBS diagrams Commission
Team set up Scheduling Reporting
Project
definition

Project life cycle

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Project Life Cycle
Cost and staffing level

Initiation Planning Execution and control Closing

time
 Project Life Cycle - Ideal v Typical
Cost and staffing level

Initiation Planning Execution and control Closing

time
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 Exercise
What does the chart tell you about typical v ideal
project life cycle?

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 Answer
Many projects don’t get adequate resources in the
early stages
Low resourcing in the planning stage results in delays
in completing the project on time, to the right quality
and within the budget

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 Allocation of time and money…….

10% Initiation 20% Initiation

Planning Planning
25% 30%

60% Implementation 40% Implementation

5% 10% Closing
Closing

Typical Successful projects

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 Project Life Cycle (PLC) as a Tool
 PLC is a management tool to make it easier to
manage the project sequence
 The choice of phases vary from industry to
industry and the PLC will vary to suit the needs of
the participants
 Different project managers choose different
PLC’s, depending on the nature of the task i.e.
Engineering, software development etc.

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 ….. Con’t
Project Life Cycle (PLC) Uses:
 To maintain an overview of the project
 To help identify tasks
 Break the project into manageable parts
 Integrate activities (bite sized chunks)
 To help with the timing of decisions (go/no go)
 To guide the level of contingency needed

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 Common characteristics of PLCs
Cost and staff levels low in early phases of the project
Probability of failure, risk and uncertainty are highest
in the early phases
Ability of stakeholders to influence the outcome of the
project are highest at the beginning of the project
Although many projects have similar phase names, with
similar work requirements, few are identical
Sub-projects within a project also have distinct project
life cycles
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 Project Stakeholders

 Project stakeholders are individuals

and/or organizations who are actively
involved in the project and whose
interests are directly affected by the
outcome of the project

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 Key Stakeholders

the project advocate or champion (promotes the

idea)
the project sponsor (for funding)
the project manager (for the execution)
customer or client (the user)
the performing organization (the team)
Other categories of stakeholders can be identified
such as internal and external clients, team members
& families, suppliers, contractors, Government etc.
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 In class ‘Mock Test’
1. What is meant by the term ‘deliverable’?

2. What is meant by the term ‘stakeholder’?

3. List the 4 different phases of a project life cycle

4. List at least 3 benefits from using project life cycle

to manage projects

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 In class ‘Mock Test’
1. What is meant by the term ‘deliverable’?
 an output from a stage of the project
2. What is meant by the term ‘stakeholder’?
 individuals and/ or organizations who are actively involved in
the project and whose interests are directly affected by the
outcome of the project

3. What is meant by the term ‘contingency’?

 The buffer or safety margin built into a project

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 In class ‘Mock Test’
3. List the 4 different phases of a project life cycle
 project initiation
 project planning
 project execution and control
 project closure
4. List at least 3 benefits from using project life cycle to manage projects
 To maintain an overview of the project
 To help identify tasks
 Break the project into manageable parts
 Integrate activities (bite sized chunks)
 To help with the timing of decisions (go/no go)
 To guide the level of contingency needed

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 Assignment 1
On the basis of their main features of information
gathering, analysis and decision making; discuss
the two basic models of a project cycle, i.e.
1. The Baum Cycle (World Bank Procedures)
2. UNIDO – Project Cycle

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 CHAPTER THREE
PROJECT ORGANIZATION

When projects are initiated, two issues immediately

arise: First, a decision must be made about how to tie
the project to the parent firm. Second, a decision must
be made about how to organize the project itself.

This chapter focuses on the interface between the

project and its parent organization. That is, how the
project is organized as a part of its host.

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 3.1.TYPES OF PROJECT ORGANIZATIONS

 There are two fundamentally different ways of organizing

projects within the parent organization: These are:
I. The project as a free-standing part of the parent
organization (Pure Project Organization), and
II. The project as part of the functional
organization (Functional Project Organization).
 A third type, called a Matrix Organization is a hybrid of
the two main types.
 Each of these organizational types has advantages and
disadvantages.
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 I. The Project as a Free-Standing Part of the Parent
Organization (Pure Project Organization)

 In this arrangement, the project is separated from

the rest of the parent system.

 It becomes a self-contained unit with its own

technical staff, its own administration, tied to the
parent firm by the tenuous strands of periodic
progress reports and oversight.

55
 … Cont’d
 Advantages of Pure Project Organization
a. The project manager has full line authority over the
project.
b. All members of the project workforce are directly
responsible to the PM.
c. When the project is detached from the functional
division, the lines of communication are shortened. As a
result, decisions are made quickly.
d. Team pride, motivation, and commitment are high.

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 ……(Cont’d)

(e)Unity of command exists. There is little doubt that the

quality of life for subordinates is enhanced when each
subordinate has one, and only one boss.
(f)They are structurally simple and flexible, which makes
them relatively easy to understand and to implement.
(g) Because authority is centralized, the ability to make
swift decisions is greatly enhanced. The entire project
organization can react more rapidly to the requirements
of the client and the needs of senior management.
(h)The organizational structure tends to support a holistic
approach to the project.
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 ….(Cont’d)
 Disadvantages of Pure Project Organization:
(a) Duplication of resources. Each project tends to be fully
staffed which can lead to a duplication of effort in every area
from clerical staff to technological support. Equipment and
people are not shared across projects.
(b) Organizational policies and goals are ignored, as team
members are often both physically and
psychologically removed from headquarters.
(c) Because team members have no functional area home,
they worry about “life-after the project ends”. As a
result, project termination is delayed.

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 Pure Project

59
 II. The Project as Part of the Functional
Organization
Housing the project within the functional division.

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 ….. (Cont’d)
 Advantages of using the functional elements of the parent
organization as the administrative home for a project
include:
(a) A team member can work on several projects. With the
broad base of technical personnel available in the
functional divisions, people can be switched back and
forth between or among the different projects with
relative ease.
(b) The functional area is a home after the project is
completed. Functional specialists can advance vertically.
(c) A critical mass of specialized functional area experts
creates synergistic solutions to a project’s technical
problems.
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 …(Cont’d)

(d) There is maximum flexibility in the use of staff.

(e) Specialists in the division can be grouped to
share knowledge and experience
(f) The functional division also serves as a base of
technological continuity when individuals
choose to leave the project

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 …..(Cont’d)
 Disadvantages of housing the project in a functional area:

a. The client is not the primary focus of activity and concern.

The functional unit has its own work to do, which usually
takes precedence over the work of the project, and hence
over the interests of the client.
b. There is a tendency to sub-optimize the project. Project
issues that are directly within the interest area of the
functional home may be dealt with carefully, but those
outside normal interest areas may be given short shrift, if
not totally ignored.
c. The motivation of people assigned to the project tends to be
weak. The project is not in the mainstream of activity and
interest, and some project team members may view service
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on the project as secondary.
 …..(Cont’d)

(d) The functional organizational arrangement

does not facilitate a holistic approach to the
project. Cross-divisional communication and
sharing of knowledge is slow and difficult at
best.
(e) There are often several layers of
management between the project and the client.
(f) Occasionally, no individual is given full
responsibility for the project.

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 III. The Matrix Project Organization

 The matrix project attempts to blend properties of

functional and pure project structures.

 Each project utilizes people from different functional

areas.

 The project manager (PM) decides what tasks and when

they will be performed, but the functional managers
control which people and technologies are used.

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 … Cont’d
A matrix organization can take on a wide variety of
specific forms
 “project” or “strong” matrix organization most
resembles the pure project organization.
 The “coordination” or “functional” or
“weak” matrix most resembles the functional
form.
 The “balanced” matrix lies in between the
others

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 ……(Cont’d)
Example of Matrix Project Structure.
Rather than being a stand alone organization, like the pure
project, the matrix project is not separated from the parent
organization.

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 …. (Cont’d)

Advantages of Matrix Project Organization.

 As with other organizational forms, the matrix organization
has its own unique advantages:
(a) Communications between functional divisions is
enhanced
(b) A project manager is held responsible for successful
completion of the project.
(c) Duplication of resources is minimized
(d) Team members have a functional “home” after project
completion, so they are less worried about “life after the
project ends”.
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 …..(Cont’d)
(e) Policies of the parent organization are followed.
This increases support for the project.
(f) The project is the point of emphasis.
(g) Response to client’s needs is as rapid as in the pure
project organization.
(h) Matrix management gives the project access to
representatives from the administrative units of the parent
firm.
(i) The matrix organization allows a better company-
wide balance of resources to achieve goals.

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 ….(Cont’d)
Disadvantages of Matrix Project Organization.
a. There are two bosses. As a result, the principle of unity
of command is violated. The functional manger will be
listened to before the project manager.
b. It is doomed to failure unless the PM has strong
negotiating skills.
c. Sub-optimization is a danger, as PMs hoard resources
for their own project, thus harming other projects.
d. Division of authority and responsibility in a matrix
organization is complex, and uncomfortable for the
PM.
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 Structure Influence on Projects

71
 3.2. CHOOSING AN ORGANIZATIONAL FORM

Choosing the organizational interface between the

project and the firm is a difficult task. The choice is
determined by the situation, but is also partly intuitive.

While choosing organizational forms we shall consider

such factors as:
 The nature of the potential project
 The characteristics of the various organizational options,
 The advantages and disadvantages of each,
 The cultural preferences of the parent organization, and then
make the best compromise that can be made.
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 …..(Cont’d)
For example, the functional form is preferred for
projects that will require large capital investments
in equipments or buildings of a type normally
used by the function.
If the firm engages in a large number of similar
projects (for example, construction project) the
pure project form of organization is preferred.

73
 ….(Cont’d)
The pure organizational form also be preferred for
one-time, highly specific, unique tasks that require
careful control and are not appropriate for a single
functional area.

On the other hand, when the project requires the

integration of inputs from several functional areas
and involve reasonably sophisticated technology
but does not require all the technical specialists to
work for a project on a full-time basis, the matrix
organization is the only satisfactory solution.
74
 ….(Cont’d)
Criteria for the Selection of a Project organization:
1. Define the project with a statement of the objective(s) that
identifies the major outcomes desired
2. Determine the key tasks associated with each objective and
locate the units in the parent organization that serve as
functional “homes” for these types of tasks
3. Arrange the key tasks by sequence and decompose them into
work packages.
4. Determine which organizational units are required to carryout
the work packages and which units will work particularly
closely with which others
5. List any special characteristics or assumptions associated with
the project
6. In light of items 1 – 5, and with full cognizance of the pros and
75
cons associated with each structural form, choose a structure
 CHAPTER FOUR

PROJECT PLANNING
FUNDAMENTALS
76
 4.1 INTRODUCTION

Planning and control are essential parts of project

management;
they enable people to understand what is needed
to meet project goals and
reduce the uncertainty of outcomes.

77
 …cont’d
 Three issues arise in the planning and control process:
1. During the conception and definition phases a plan
is made specifying the project requirements, work
tasks, responsibilities, schedules, and budgets;
2. During the execution phase the plan is compared to
actual project performance, time, and cost; if there
are discrepancies,
3. Corrective actions are taken and the requirements,
schedules, and budgets updated.

78
 … CONT’D

For starters, the project team needs to answer

questions about:
what has to be done,
how it has to be done,
by whom,
in what order,
for how much, and
by when.
79
 4.2. STEPS IN PROJECT PLANNING
Once key members of the project team have been
assembled, they begin preparing the detailed project
plan. The plan includes:-
1. Project objectives, requirements, and scope are set.
These outcome elements specify project end items,
desired results, and time, cost, and performance targets.
2.The specific work activities, tasks, or jobs to
achieve objectives are broken down, defined, and
listed. (What?)

80
 … CONT’D
3. A project organization is created specifying the
departments, subcontractors, and managers responsible for
work activities. (Who?)
4. A schedule is prepared showing the timing of work
activities, deadlines, and milestones. (When, in what order?)
5. A budget and resource plan is prepared showing the
amount and timing of resources and expenditures for work
activities and related items. (How much and when?)
6. A forecast is prepared of time, cost, and performance
projections for the completion of the project. (How much time
is needed, what will it cost, and when will the project be
finished?)

81
 … CONT’D
These steps need to be followed each time because
every project is somewhat unique, requires
different resources, and must be completed to
specific time, cost, and performance standards to
satisfy users’ requirements.

82
 4.3 THE PROJECTMASTER PLAN

The project is initiated with the preparation of a

formal, written master plan. The purpose of this
plan is:
to guide the project manager and team
throughout the project life cycle;
to tell them what resources are needed, when,
and how much they will cost; and,
to permit them to measure progress and
performance.

83
 …CONT’D
Summary Plan Vs. Master Plan
The difference between the summary plan in the
proposal and the master plan is that the former is
intended for the customer, and the latter for the project
team.
The summary plan need only contain enough detail
to give the customer an overview; the master plan
must be of sufficient detail to guide the team in the
execution of the project.
Once top management approves the plan it gives the
project manager tacit authority to conduct the project
84
in accordance with the plan.
 …CONT’D
Contents of Master Plans
 The contents of master plans vary depending on the size,
complexity, and nature of the project.
 Usually, the plan has three major sections:

I. Management Summary. Brief explanation of the

project in favor of top-level management. It includes:
 a brief description of the project,
 Its objectives,
 overall requirements, constraints, problem areas (and how
they will be overcome), and
 the master schedule showing major events and milestones.

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 … CONT’D
II. Management and Organization Section. Which
specifies the organization and personnel requirements for the
project. It includes:
A) Project Management and Organization: Describes how the
project will be managed and identifies key personnel and
authority relationships.
B) Manpower: forecasts of workforce requirements in terms of
skills, expertise, and strategies for locating and recruiting
qualified people.
C) Training and Development: Summary of the executive
development and personnel training necessary to support the
project.
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 … CONT’D
III. Technical Section: ׄDescribes major activities, timing,
and cost. It includes:
A) Statement of work and scope of work: General description of
major project activities and tasks, and results or end-items.
B) Work breakdown: List of work packages and description of
each.
C) Responsibility assignments: List of personnel and
responsibility for work packages.
D) Project schedules: showing major events, milestones, and
points of critical action or decision. May include Gantt charts,
project networks, and PERT/CPM diagrams.

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 … CONT’D
E) Budget and financial support: Estimates and timing of capital
and development expenses for labor, materials, and facilities.
F) Testing: Listing of things to be tested, including procedures,
timing, and persons responsible.
G) Change control plan: Procedures for changes request to any
aspect of the project plan.
H) Quality plan: Measures for monitoring quality and accepting
results for individual work tasks, components, and end-item
assemblies.
I) Work review plan (may be included in quality plan):
Procedures for periodic review of work, noting what is to be
reviewed, by whom, when, and according to what standards.

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 … CONT’D

J) Documentation: List of documents to be produced

and how they will be organized and maintained.
K) Implementation: Discussion and guidelines
showing how the customer will convert to, or adopt,
the end-item of the project.
L) Economic justification: Summary of alternatives in
meeting project objectives showing tradeoffs between
costs and schedules.
M) Areas of uncertainty and risk: Contingency plans
for areas of greatest uncertainty in terms of potential
work failure or missed milestones.
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 4.4. Tools of Project Planning

ᴥMuch of the technical content of project plans is

derived from the basic tools. They include:

1. Work Breakdown Structure and Work Packages—used to

define the project work and break it down into specific tasks.
2. Responsibility Matrix—used to define project organization,
key individuals, and their responsibilities.
3. Events and Milestones—used to identify critical points and
major occurrences on the project schedule.
4. Gantt Charts—used to display the project master schedule
and detailed task schedules.
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 4.5. Defining Project Through Planning
The uniqueness of each project implies that every
project must be defined anew and a scheme created
telling everyone involved what to do.
Deciding and specifying what to do is the function of
project planning.
Before project work actually begins (during the
conception and definition phases) a plan is prepared
specifying the project requirements, work tasks,
responsibilities, schedules, and budgets

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 Planning is simply identifying all the work that must
be done; developing policies, procedures, and other
documentation that defines the project.

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 Defining the Project
Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities

Step 3: Creating the Work Breakdown Structure

Step 4: Integrating the WBS with the Organization

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Step 5: Coding the WBS for the Information System
 Step 1: Defining the Project Scope

Project Scope is a definition of the end result or mission

of the project in specific, tangible, and measurable terms.
Describes what you expect to deliver to your customer
when the project is complete.

Scope definition results in a document called the scope

statement, which specifies:-
the user acceptance requirements,
project objectives, or
high-level specifications for the main end-item and
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supplementary side items.
 …Con’t
The document focuses on the main areas of work to
be performed and the anticipated deliverables or end-
items
Specifically, the purpose of the Scope Statement
To clearly define the deliverable(s) for the end user.
To focus the project on successful completion of its
goals.
To be used by the project owner and participants
as a planning tool and for measuring project success

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 … CONT’D
Further, the scope statement serves as a reference
source for everyone in the project to review and
agree upon the needs, requirements, objectives,
and end-items, as well as about what individual
contributions are expected.
It also provides the basis for making decisions
about the resources needed to complete the project
and about required changes to work tasks or end-
items that would alter the project scope.

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 To ensure that scope definition is complete the
checklist/steps…..
1. Project objective……. the project objective answers the
questions of what, when, and how much.
2. Deliverables…..the expected outputs over the life of the
project
3. Milestones…… shows only major segments of work; it
represents first, rough-cut estimates of time, cost, and
resource
4. Technical requirements….product or service will have
technical requirements to ensure proper performance for the
project.

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5. Limits and exclusions……..the limits of scope should
be defined
Exclusions further define the boundary of the project by
stating what is not included
6. Reviews with customer…..the main concern here is the
understanding and agreement of expectations

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Step 2: Establishing Project Priorities
Causes of Project Trade-offs………… Shifts in the
relative importance of criterions related
to cost, time, and performance parameters
Budget–Cost
Schedule–Time
Performance–Scope
Managing the Priorities of Project Trade-offs
Constrain: a parameter is a fixed requirement.
Enhance: optimizing a criterion over others.
Accept: reducing (or not meeting) a criterion
requirement.
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 Project Management Trade-offs

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 Project Priority Matrix

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 Step 3:Creating the Work Breakdown
Structure
Work Breakdown Structure (WBS) is an hierarchical
outline (map) that identifies the products and work
elements involved in a project.
It is the procedure for decomposing the overall project
into sub-elements
The purpose of a WBS is to divide the total project
into small pieces, sometimes called work packages
and defines the relationship of the final deliverable
(the project) to its sub deliverables, and in turn,
their relationships to work packages.
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 …. Cont’d
The basic aim of WBC
 Giving visibility to important and to risky work efforts.
 Illustrate the correlation between the activities and deliverables.
 Show clear ownership by task leaders

A typical WBS might consist of the following five levels (actually the
number of levels varies; the name of the element description at each
level is arbitrary):
Level Element Description
1 Project
2 Category
3 Subcategory
4 Sub-subcategory
5 Work package
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 Hierarchical
Breakdown of
the WBS

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 … CONT’D
☻The WBS is reviewed again and again to make sure
everything is there. And supplementary or missed items are
identified and added to the structure at appropriate levels.

How far down does the breakdown structure go?

♠ As far as is necessary to completely define a work task.
Sometimes a Level 2 breakdown will be adequate, though
usually a Level 3 or higher level breakdown will be
necessary.

For a task to be well defined it must have the following

properties
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 … CONT’D

I. Clear, comprehensive statement of work: The task is well

enough defined so the responsible ones know exactly what
must be done.
II. Resource requirements: The labor, skills, equipment, facilities,
and materials for the task are identified.
III. Time: The time needed to perform the task is estimated.
IV. Cost: The costs for the required resources, management, and
related expenses for the task are estimated.
V. Responsibility: The parties, individuals, or job titles responsible
for performing the task and approving it are identified.

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 … CONT’D
(vi) Outcomes: The deliverables, end-items and
associated requirements and specifications for the task
are identified.
(vii) Inputs: The preconditions or predecessors needed
to begin the task are identified.
(viii) Quality Assurance: The entry, process, and exit
conditions to which the task must conform are
identified; these are specified in the quality plan.
NB. If any of the properties mentioned above cannot be
defined, then the task is too broad and must be broken
down further.
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 … CONT’D
WBS in the Planning and Control Process

♣The WBS is the crucial element of the project

planning and control process. It is used in three ways:
(1) During the WBS analysis, functional managers,
subcontractors, and others who will take part in the
work are identified and become involved.
♥ Their approval of the WBS helps ensure accuracy
and completeness of work definition, and gains their
commitment to the project.
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 … CONT’D
(2) The WBS and WPs become the basis for budgeting
and scheduling.
♣ The cost and time estimates for each WP show
what is expected to complete that work package.
♣ The sum of work package budgets plus overhead
and indirect expenses becomes the target cost of the
entire project.
♣ These budgets and schedules are the baselines
against which actual figures will later be compared
to measure project performance.
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 … CONT’D
(3) The WBS and WPs become the basis for project
control.
♠ While the project is in progress, actual work
completed for each work package is compared to work
that was scheduled to have been completed. The result
is an estimate of time and schedule variance.
♠ Similarly, a comparison of actual expenditures to
date with the value of the work accomplished gives an
estimate of cost variance.
♠ Schedule and cost variances for the project as a
whole are determined by summarizing all schedule and
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cost data throughout the WBS.
 Work Packages
A work package is the lowest level of the WBS.
Within the WBS, WPs signify jobs of about equal magnitude of
effort and be of relatively small cost and short duration compared
to the total project.
 It is output-oriented in that it:

 Defines work (what).

 Identifies time to complete a work package (how long).
 Identifies a time-phased budget to complete a work package
(cost).
 Identifies resources needed to complete a work package (how
much).
 Identifies a person responsible for units of work (who).
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 Identifies monitoring points (milestones) for measuring success.
 Work Breakdown Structure

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 How WBS Helps the Project Manager???

 Facilitates evaluation of cost, time, and technical

performance of the organization on a project.
 Provides management with information
appropriate to each organizational level.
 Helps in the development of the organization
breakdown structure (OBS) which assigns project
responsibilities to organizational units and
individuals
 Helps to manage plan, schedule, and budget.
 Defines communication channels and assists
113 in coordinating the various project elements.
 Step 4:Integrating the WBS with
the Organization
Organizational Breakdown Structure (OBS) depicts
how the firm is organized to discharge its work
responsibility for a project.
 Provides a framework to summarize organization
work unit performance.
 Identifies organization units responsible for work
packages.
 Ties the organizational units to cost control
accounts.
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 Integration of WBS and OBS

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 Step 5: Coding the WBS for
the Information System

WBS Coding System

Defines:
Levels and elements of the WBS
Organization elements
Work packages
Budget and cost information
Allows reports to be consolidated at
any level in the organization
structure
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 WBS Coding

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 4.6. Responsibility Matrices

 Responsibility Matrix (RM) also called a linear responsibility

chart, summarizes the tasks to be accomplished and who is
responsible for what on the project.
 It represents the intersection of the WBS and the organizational
structure
Lists project activities and participants.
Clarifies critical interfaces between units
and individuals that need coordination.
Provide a means for all participants to view their
responsibilities and agree on their assignments.
Clarifies the extent or type of authority that
can be exercised by each participant.
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 Example: Responsibility Matrix for a Market Research Project

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 Example: Responsibility Matrix for the Conveyor Belt Project

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