Introduction to Project Management – Prof. Lorriane Faye
Cahatol
HISTORY
2570 BC – The Great Pyramid of Giza completed
208 BC - Construction of the Great Wall of China
1917 - The Gantt chart developed by Henry Gantt (1861-1919)
1931 - Hoover Dam Project
1956 – The American Association of Cost Engineers (AACE International) formed
1957 – The Critical Path Method (CPM) Invented by Dupont Corporation
1958 – The Program Evaluation Review Technique (PERT) invented for the U.S. Navy’s
Polaris Project
1962 – United States Department of Defense mandate the Work Breakdown Structure
(WBS) approach
1965 – The International Project Management Association (IPMA) founded
1969 – Project Management Institute (PMI) launched to promote the project
management profession
1975 – PROMPTII Method created by Simpact Systems limited
- The Mythical Man-Month: Essays on software engineering by Fred Brooks
1984 – Theory of Constraints (TOC) introduced by Dr. Eliyahu M. Goldratt in his novel
“The Goal”
1986 – Scrum named as a project management style
1987 – A guide to the Project Management Body of Knowledge (PMBOK Guide)
published by PMI
1989 – Earned Value Management (EVM) leadership elevated to under-secretary of
defense of acquisition
- PRINCE Method developed from PROMPTII
1994 – CHAOS report first published
1996 – PRINCE2 published by CCTA
1997 – Critical Chain Project Management (CCPM) invented
1998 – PMBOK becomes an ANSI standard
2001 – The Agile Manifesto written
2006 – Total cost management framework release by AACE international
2008 – 4th edition of PMBOK guide released
2009 – Major PRINCE2 revision by Office of Government Commerce (OGC)
2012 – ISO 21500:2012 guidance on project management
-
5th edition of PMBOK guide released
Importance of Project Management
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30% of all projects are cancelled before completion
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30% experience schedule delays
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50% exceed original cost estimates
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12% completed on time and on budget
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Projects progress quickly until they are 90% complete. Then they remain at 90%
complete forever.
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If project content is allowed to change freely, the rate of change will exceed the
rate of progress.
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Project teams dislike progress reporting.

At least 61% of the projects fail
Why do Projects Fail?
0 Mostly caused by Poor project planning
0 Poor communications
0 Poor alignment to goals
= Ineffective Project Management
What is a project?
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a temporary endeavor undertaken to create a unique product, service or result.
All projects have a beginning, a middle and an end.
a sequence of unique, complex, and connected activities having one goal or
purpose and that must be completed by specific time, within budget, and
according to specification.
What is project management?


the process of defining, planning, directing, monitoring, and controlling the
development of an acceptable system at a minimum cost within a specified time
frame
Major goal: to satisfy a customer’s need
Major characteristics of a project
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An established objective
A defined life span with a beginning and an end
Usually, the involvement of several departments and professionals
Typically, doing something that has never been done before.
A capability to perform a service - a business function that supports production or
distribution
A product that can either be a component of another item or an end item in itself
A result such as an outcome or document - a research project that develops
knowledge that can be used to determine whether a trend is present or a new
process will benefit society
“The real difficulty lies not in developing new ideas, but in escaping from old
ones.”
- John Maynard Keynes
Specific time, cost, and performance requirements
Projects have a common set of characteristics which can also be defined by what
they are not
What a project isn’t
Comparison of Routine Work with Projects
Project duration
Project life cycle
PROJECT
A project can create:
• A product that can be either a component of another item, an enhancement of an item, or an end
item in itself;
• A service or a capability to perform a service (e.g., a business function that supports production or
distribution);
• An improvement in the existing product or service lines (e.g., A Six Sigma project undertaken to reduce
defects); or
• A result, such as an outcome or document (e.g., a research project that develops knowledge that can
be used to determine whether a trend exists or a new process will benefit society).
PMI Project Management Principles
Project Management Institute
• is a professional organization for project managers.
• It is a not-for-profit professional membership association for project managers and program
managers.
• PMI was started in 1969 and now has a membership of more than 2.9 million professionals worldwide.
• The aim of the association is to provide tools, network, and best practices to those who seek help to
successfully manage their projects and portfolios.
Project Management Professional (PMP)
is an internationally recognized professional designation offered by the Project Management Institute
(PMI)
• PMP certification exam is administered by the Project Management Institute (PMI). “World's leading
project management certification”.
• Importance: It delivers real value in the form of professional credibility, deep knowledge and increased
earning potential.
✓ Skilled project manager is in high demand
✓ This certification validates that you are among the best-highly skilled in:
1. People: emphasizing the soft skills you need to effectively lead a project team in today's changing
environment.
2. Process: reinforcing the technical aspects of successfully managing projects.
3. Business Environment: highlighting the connection between projects and organizational strategy.
Why Is This Useful to Know?
Leveraging prescribed PMI project management principles reduces the risk and impact of costly
project omissions, changes, and errors

The Project Management Institute (PMI) is the world’s largest membership association for the
advocacy of Project and Program management.
Managing a project typically includes, but is not limited to:
Things to consider:
• Identifying requirements;
• Addressing the various needs, concerns, and expectations of the stakeholders in planning and
executing the project;
• Setting up, maintaining, and carrying out communications among stakeholders that are active,
effective, and collaborative in nature;
• Managing stakeholders towards meeting project requirements and creating project deliverables;
Balancing the competing project constraints, which include, but are not limited to:
○ Scope ○ Quality ○ Schedule ○ Budget ○ Resources ○ Risks
PMI Definitions
PMBOK ® - the Project Management Book of Knowledge from which PMI defines terms, standards, and
good practices
• Portfolio – Projects, programs, and operations managed as a group to achieve strategic objectives
• Program - A group of projects and program activities managed in a coordinated way
• Project – a temporary endeavor undertaken to create a unique product, service, or result
• Project Management – the application of knowledge, skills, tools, and techniques to project
management activities to meet project requirements
• Project Manager – the person authorized by the performing organization to direct the team
accountable for realizing project objectives
• Project Stakeholder – includes all project team members and anyone impacted by or impacting the
project
• Triple Constraint – the foundation of project management is balancing scope, time, and cost. Quality
is at the center of the triple constraint (Iron Triangle)
The Project Manager
Role of Project Manager
Any area - specific skills and general management proficiencies required for the project, effective
project management requires that the project manager possess the following competencies:
• Knowledge—Refers to what the project manager knows about project management.
• Performance—Refers to what the project manager is able to do or accomplish while applying his or
her project management knowledge.
• Personal—Refers to how the project manager behaves when performing the project or related
activity. Personal effectiveness encompasses attitudes, core personality characteristics, and
leadership, which provides the ability to guide the project team while achieving project
objectives and balancing the project constraints.
Interpersonal Skills describes important interpersonal skills, such as:
• Leadership
• Team building
• Motivation
• Communication
• Influencing
• Decision making,
• Political and cultural awareness
• Negotiation
• Trust building
• Conflict management
• Coaching
Project Management Process Groups

A process group is a logical grouping of activities, inputs, tools, techniques, and outputs required
for any type of project.
Applying Project Management Process Groups
 The five process groups overlap and follow a basic cycle of “plan, do, check, act” until project
closure.
Knowledge Areas
A project manager is responsible for applying and managing the following ten knowledge areas:
 Integration - identify, define, combine, unify and coordinate activities within the Project
Management Process Groups
 Scope - Ensure the project includes all work required to complete the project successfully
 Time - Manage the timely completion of the project
 Cost - Manage the planning, estimating, budgeting, financing, funding, monitoring, and
controlling of cost to enable the project to be completed within the approved budget
 Quality - Determine quality policies , objectives, and responsibilities so that the project will
satisfy the needs for which it was undertaken
 Human Resources - Organize, manage, and lead the project team, including the identification of
roles, responsibilities, required skills, and reporting relationships
 Communication - Ensure timely and appropriate planning, collection, creation, distribution,
storage, retrieval, management, control, monitoring and disposition of project information
 Risk - Identify and assess risks, plan responses, and control risk to increase the likelihood and
impact of Identify and assess risks, plan responses, and control risk to increase the likelihood
and impact of negative events on the project
 Procurement - Purchase or acquire and control products, services, or results needed from
outside the project team
 Stakeholders - Identify people, groups, or organizations that could impact or be impacted by the
project; analyze expectations, and develop strategies to engage stakeholders in decisions and
activities
Knowledge Areas & Process Groups
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Activity within each knowledge area is applied based on the appropriate process group.
1. Integration Management - Process Activities
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Integration management connects all of the knowledge areas together from beginning (project
initiation) to end (project closure).
Integrated Approach
Stakeholders: people involved in or affected by project
activities
• Project sponsor
• Project manager
• Project team
• Support staff
• Customers
• Suppliers
• Opponents to the project
Project Charter
 A project charter formally authorizes the project and the project manager to apply resources to
project activities. Per PMI, without a charter, there is no project.
A typical charter will identify:
o Business need or justification
o Scope (high level)
o Objectives (such as the intended product, service, or result)
o Requirements (high level)
o Risks (high level)
o Assumptions and constraints
o Stakeholders (primary)
o Timing (anticipated)
o Costs (anticipated)
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The charter must be signed by someone who can invest authority for the project (typically
senior management or a sponsor)
Project Management Plan
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The project management plan is the collection of
all plans and related documents pertaining to
planning, executing, monitoring, controlling, and
closing the project.
2. Scope Management - Process Activities
 This area includes collecting requirements, defining scope, creating the work breakdown
structure (WBS), and validating and controlling scope.
Work Breakdown Structure (WBS)
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The WBS is the decomposition of the work to be performed. The output is called the Scope
Baseline.
Scope Baseline:
• Scope Statement – description of project scope, major deliverables, assumptions, and constraints
• WBS – hierarchical decomposition of the total scope of work
• WBS Dictionary – provides details regarding the deliverables, activities, and scheduling information of
each component of the WBS
3. Time Management – Process Activities
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Time management includes all activity related to developing and managing the project schedule.
4. Cost Management – Process Activities
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This area includes defining how project costs will be managed, estimating activity costs,
determining the budget, and controlling costs
5. Quality Management – Process Activities
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Quality management includes identifying quality requirements and standards, auditing
requirements and control measurements, assessing quality performance, and recommending
changes, when needed.
Quality Management Philosophies and Principles

PMI quality management principles are based on a few popular philosophies.
Quality Philosophies:
• Total Quality Management (Deming) – proactive approach with statistical analysis
• Zero Defects (Crosby) – Do it right the first time
• Fitness for Use (Juran) – Satisfy customer needs
• Continuous Improvement (Kaizen) – proactive approach to process improvement
• Gold Plating – unacceptable practice of providing more than requested
• Cost of Quality – cost of conforming is less than cost of non-conforming
• Design of Experiments – isolate factors that influence results
• 6 Sigma – strive for 99.9997% error free
• ISO 9000 – document what you do; do what you document
Quality Principles:
• Define and satisfy customer needs
• Prevent rather than inspect
• Be proactive rather reactive
• Validate project processes
• Measure against approved standards
• Continually improve
• Take accountability
Quality Policies
Total Quality Management (TQM): organization-wide efforts to install and make a permanent climate in
which an organization continuously improves its ability to deliver high-quality products and services to
customers (1980s-early 1990s): commitment, control, customer focus, cooperation, continuous
improvement, culture
Zero defects (ZD): management-led program to eliminate defects/wastes in industrial production
(supply chains where large volumes of components are being purchased); performance goal than as a
program (Philip Crosby; 1964-early 1970s)
Fitness for use (of a design, manufacturing method, and support process): employed in delivering a
good, system, or service that fits a customer's defined purpose, under anticipated or specified
operational conditions
Continuous improvement process (CIP or CI): ongoing effort to improve products, services, or
processes; incremental improvement over time vs. breakthrough improvement all at once; delivery
(customer valued) process constantly evaluated and improved in terms of efficiency, effectiveness, and
flexibility
o kaizen: feedback (self-reflection), efficiency (vs. suboptimal processes), evolution
6. Human Resource Management - Process Activities
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Human resource management consists of planning, acquiring, developing, and managing the
project team.
Roles and Responsibilities
 Responsibility assignment matrix (RAM) charts such as a “RACI” let each team member know
who is responsible for each activity and deliverable.
Project Life Cycle - Team Building & Leadership Styles
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Project managers should be aware of typical team building dynamics and situational leadership
styles across a project life cycle.
Team Building Stages:
Forming – creating the team
• Storming – team chaos as people start working with one another
• Norming – team behavior starts to normalize
• Performing – team performs as a unit
• Adjourning – team completes work and disbands
Situational Leadership Styles:
Directing – provide specific, clear instructions and closely supervise
• Coaching – solicit input, offer rationale and examples
• Facilitating –maintain team progress; delegate day-to-day control
• Supporting – support and motivate the team to complete objectives
Conflict Management
 Conflict is inevitable. A project manager should be aware of typical sources of project conflict
and recommended techniques to resolve them.
Sources of Conflict:
Scheduling Priorities
• Scarce Resources
• Personal Work Styles
• Methodology/Details
• Cost/Budget
• Personalities
Conflict Resolution Techniques
Recommended:
1. Collaborate/Problem Solve
2. Compromise/Reconcile
3. Force/Direct
Not Recommended:
1. Smooth/Accommodate
2. Withdraw/Avoid
7. Communication Management - Process Activities
 Roughly 90% of a project manager’s job is communication.
Communication Management
 Project managers should be aware of the basics of effective communication across the broad
stakeholder community.
Communication Methods:
• Interactive – between two people
• Push – send to specific recipients
• Pull – recipient actively seeks information
Communication Types:
Active listening – receiver verifies correct interpretation
• Effective listening – receiver observes visual and vocal cues
• Feedback – sender receives feedback from receiver
• Nonverbal - ~55% of communication (e.g. body and facial language)
• Para-lingual – Voice characteristics
Communication Model:
Communication Paths:
8. Risk Management – Process Activities
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Risks are possible events that could impact the project in a positive (an opportunity) or negative
(a threat) way.
Risk Management
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Project managers should be aware of risk management terms
Risk Management Terms
Monte Carlo – simulation of possible outcomes
• Risk Breakdown Structure – breakdown by category (e.g. internal, external, technology,
organizational, etc.)
• Risk Trigger – an indicator that an event “could” occur
• SWOT Analysis – strengths, weaknesses, opportunities, and threats
• Expected Monetary Value (EMV) – summation of probability x impact of alternative decisions (…not to
be confused with EVM – earned value management)
• Contingency Reserves – for known risks (include in budget and schedule)
• Management Reserves – for unknown risks (excluded from baselines for budget and schedule)
• Residual Risk – risk remaining after risk response
• Secondary Risk – potential risk as a result of risk response
• Workaround – “wing it” response when other risk response plans don’t work
Types of Risk Tolerance
o Averse – Avoids risk
o Seeker – Seeks risk
o Neutral – Middle ground
9. Procurement Management – Process Activities
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Procurement management includes planning, selecting, contracting, controlling, and closing
outsourced products and services.
Contract Types:
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Project managers should be aware of the benefits and risks of different contract types from a
buyer’s perspective and a seller’s perspective
• (FFP) Firm Fixed Price – allows buyer to budget fixed price; requires seller to detail scope and
accurately estimate price; very common
• (FFIF) Fixed Price Incentive Fee – includes incentive to motivate seller to produce at greater speed
• (FF EPA) Fixed Price Economic Price Adjustment – compensates for year to year economic changes
• (T&M) Time and Materials – typically used for smaller initiatives
• (PO) Purchase Order – typically used for commodity items
• (CPFF) Cost Plus Fixed Fee – typically variable costs are cost-plus and predictable costs are fixed fee
• (CPIF) Cost Plus Incentive Fee – actual costs plus incentive to motivate seller to produce at greater
speed
• (CPAF) Cost Plus Award Fee – actual costs plus award based on customer satisfaction with agreed
criteria
• (CPPC) Cost Plus Percent of Cost – actual cost plus % of actual; the higher the cost, the higher the fees
Procurement Terms
Project managers should be familiar with additional procurement terms in the table below:
10. Stakeholder Management – Process Activities
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It is critical to project success to identify stakeholders, address their requirements, meet their
expectations, and foster their engagement.
Stakeholder Power vs. Interest Grid
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All stakeholders are different and, therefore, need to be managed differently based on their
relative authority (power) and level of concern (interest).
PMI Code of Ethics and Professional Conduct
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All PMI members must agree to adhere to a high personal standard of ethical and professional
behavior.
Tenets of Code:
1. Honor
o Do what is right and honorable
o Set high standards for yourself and aspire to meet those standards is all aspects of life
2. Responsibility – Take ownership of:
o The decisions you make or fail to make
o The actions you take or fail to take
o The consequences that result
3. Respect
o Show high regard for yourself, others, and the resources (e.g. people, money, reputation, safety)
entrusted to you
o Engender trust confidence, performance excellence, and mutual cooperation in an environment of
diverse perspectives and views
4. Fairness
o Make decisions and act impartially and objectively
o Conduct yourself in a way free from competing self interest, prejudice, and favoritism
5. Honesty
o Understand the truth
o Act in a truthful manner both in your communication and in your conduct
Risk Management Plan
Risk
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a situation involving exposure to danger, harm or loss
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Involves uncertainty
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Risk A function of the probability of an adverse health effect and the severity of that effect,
consequential to a hazard(s) in food.
Risk Management
• Risk management is the identification, evaluation, and prioritization of risks
followed by coordinated and economical application of resources to
minimize, monitor, and control the probability or impact of unfortunate
events or to maximize the realization of opportunities
What are the risk?
1. Strategic Management Errors
2. Legal liabilities - SPF
3. Human Error
4. Natural disasters
HAZARD
• A biological, chemical or physical agent in, or condition of, food with the
potential to cause an adverse health effect.
• There are two very useful books that give information on seafood hazards:
• Assessment and management of seafood safety and other quality aspects
(FAO, 2004).
• Fish and fisheries products hazards and controls guide (FDA, 2001).
NOTE: A risk management plan can help minimize the impact of risks that could
weaken your cash flow or damage your brand. It will also help create a culture of
sensible risk awareness and management in your business.
What risks are associated with aquaculture?
•
As in agriculture, these risks include disease, poor product quality, competition, equipment
failure, and natural disasters — but specific to aquaculture are others, for example, water
quality degradation and the competitive impact from capture fisheries.
Kinds of Risk
Pure Risk
•
refers to risks that are beyond human control and result in a loss or no loss with no possibility of
financial gain. Fires, floods and other natural disasters are categorized as pure risk, as are
unforeseen incidents, such as acts of terrorism or untimely deaths.
Example:
 These are due to the uncontrollable physical forces of nature.
 It arises occasionally due to extreme climatic and meteorological conditions.
 The prime risks are flooding, drought and depositions of silts.
 The consequences of flooding are not only physical damage to the farm structures and
consequential loss of fish; it also causes great changes in the quality of water on the farm.
Business Risk
•
Business risk is the exposure a company or organization has to factor(s) that will lower its profits
or lead it to fail. Anything that threatens a company's ability to achieve its financial goals is
considered a business risk. There are many factors that can converge to create business risk.
Examples of Business Risk:
 These are those directly related to tilapia production and the associated commercial business of
the enterprise.
 The risks are many and are the principal concern in the daily routine of the farmer as the
production process is his sole responsibility.
 In Nigeria, a large number of farms have failed to attain profitability in one or more years
because of major disruptions in the production process (Fapohunda,2005).
 It may be due to late delivery of supplies of fingerlings and other related services.
 Lack of adequate technology or technical information and expertise as regards hatchery
propagation remains a bane of the venture.
Risk identification is:
• a deliberate and systematic effort to identify and document the
Institution’s key risks.
• The objective of risk identification is to understand what is at risk within the
context of the Institution’s explicit and implicit objectives and to generate a
comprehensive inventory of risks based on the threats and events that
might prevent, degrade, delay or enhance the achievement of the
objectives.
•
This necessitated the development of risk identification guidelines to
ensure that Institutions manage risk effectively and efficiently.
STEPS IN DEVELOPING A RISK MANAGEMENT PLAN
Step 1: Establish a context
Step 2: Assessment
Step 3.
FORECASTING THE RISKS TO THE PROJECT PROPOSAL
Development of Risk Management Plan
Steps in the Risk Management Process
Step 1 - Determine, Evaluate, and Document Potential Hazard
•
Mapping the following is required: societal scope of risk Identification of stakeholders and their
goals (do you wish to? ); management (what challenges are your stakeholders encountering);
what resources are available to us to help mitigate the effects to make sure there is as little
financial impact, programming impact, etc. the consequences of risks; what mechanisms are in
place to deal with potential scenarios themselves.
Step 2 – Identification of Possible Risk
•
Consider the sources of the problems you might encounter rather than focusing on the current
issue. The source of the danger should not be disregarded, but because we are dealing with a
nationwide issue, we can only handle the issues that are brought to our attention at the grantee
level. This means that grantees should consider the dangers they are now facing, such as
financial loss, accidents, fatalities, the loss of personnel, the destruction of property, etc.
Organizing potential hazards into categories, such as threats to general operations, personnel,
program beneficiaries, property, buildings, and equipment, and perpetuity, is helpful.
Step 3 – Assessment
•
Risks must be evaluated for possible loss severity and likelihood when they have been
recognized. In the instance of the worth of a lost structure, these variables may be easily
measured, however the chance of an unexpected event occurring can be uncertain. Making the
most accurate assumptions during the assessment process is crucial in order to correctly
prioritize.
Step 4 – Potential Risk Treatments – How will you manage the risk?
Outlining the steps to take to manage the risks is crucial once they have been recognized. Possible
scenario/solutions:
1. Avoidance (elimination): This includes refraining from harmful behaviors, such as altering travel
routes or staying away from dangerous regions.
2. Reduction (mitigation): Involves strategies that lessen the severity of the loss, such as providing
personnel with first aid and safety kits, keeping emergency contacts on hand, stocking up on fire
supplies, backing up important documents, etc.
3. Retention: Consists of allowing the loss to happen when it does.
4. Transfer: To make someone else take on the danger. Typically, this is accomplished through
insurance, outsourcing, etc.
Step 5 – Create a Risk Management Plan
•
To assess each risk, choose the necessary controls or countermeasures. The relevant level of
management must authorize the mitigation.
Step 6 – Implementation
 Follow all the planned methods for mitigating the effect of the risks.
Step 7 – Evaluate and Review
• Initial plans are never ideal or entirely successful. Experience and a change in the situation will
call for modifications to the strategy and provide information that will enable various choices to
be made depending on the risk being faced.
Development of PROCUREMENT PLAN
What is a Procurement Plan?
•
Procurement plan is a plan that outlines the requirements for a particular project and list down
the steps required to obtain the final contract.
•
Here, the specific project means the process required to purchase or acquire the products or
services the organization deals in. This covers the things to be purchased, contracts, the
approval process for contracts, how to determine costs, and the criteria for making decisions.
Importance of Procurement plan
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analyze the previous procurement
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lists down the overall demand expected
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set a procurement schedule
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enhances software and tools
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ensures that the project is streamlined
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establishes cordial and coordinated efforts
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possible predictions
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allows consolidation of similar demands
Components of Procurement Management Plan
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First, define the items you need to procure;
Next, define the process for acquiring those items;
And finally, schedule the timeframes for delivery.
It may also include;
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Estimating
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Project scheduling
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Vendor control
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Pre-qualified Vendors
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Roles and responsibilities
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Risk management
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Legal jurisdiction
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Payments
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Constraints and assumptions
Managing risks in the procurement process
What is a Risk?
•
Risk is defined as the uncertainty of an event occurring that could have an impact on the
achievement of objectives.
THE RISK MANAGEMENT PROCESS

Risk should be identified at an early stage in the procurement planning. However, the
identification of risk is not an end in itself, nor does the existence of risk indicate that
procurement should not proceed.
Risk management is an iterative process consisting Risk management of well-defined steps, which
support better decision making by contributing a greater insight into risks and their impacts. It is
the systematic application of management policies, procedures and practices to the tasks of
identifying, analyzing, treating and monitoring those risks, which impact on organizations'
objectives.
The outcome of the risk management process should be a formal Risk Management Plan designed in the
following stages:
 Establish Contexts
 Identify the Risks

What can happen?

How could it happen?
 Analyze and Evaluate
 Manage the Risks
 Monitor and review the risks
 Communicate and consult
Development of RESOURCE Plan
What is a Resource Management?
•
Resource management is the practice of planning, scheduling, and allocating people, money,
and technology to a project or program.
•
The goal of resource management is to use the best combination of resources to satisfy
requirements while also realizing these same resources are likely in demand elsewhere in the
business.
Importance of resource management

Resource management is all about transparency so you can see, monitor, and attain what is
required to deliver projects. It also enables you to minimize both idle time and overutilization of
resources.
What is a Resource plan?

A resource plan identifies, organizes, and lists the resources required to complete a project.
Because most organizational expenses are resource related, it’s essential that they’re used as
efficiently as possible.
The importance of Planning:
Resource planning that’s executed properly and managed carefully will help improve the overall health
of the organization by ensuring:
•
Maximum resource utilization
•
On-time delivery
•
On-budget delivery
•
Predictable project timelines
•
Improved project flow
•
Bridged capacity gap
Core Elements of a Resource Plan
The goal of a resource plan is to identify and assign the resources necessary to execute the work.
The following five components are a part of virtually any comprehensive resource plan:
•
People
•
Skillsets, capacity, availability, and utilization
•
Time
•
Data
•
Accurate forecasting
Stages of a Resource Plan

A resource plan can be split into five stages, though these should not be viewed as stand-alone
or purely consecutive activities.
1. Identify resources
2. Procure resources
3. Visualize resources
4. Manage resources
5. Monitor resources
What is resource risk?

Resource risk refers to the chance that you may not be able to get all the necessary resources
required to complete a piece of work.
There are four steps to making a resource risk plan:
1. Forecast possible resource risks.
2. Risk assessment.
3. Risk action plan.
4. Monitor and control.
Resource risk examples
Any resource that is required for your project comes with associated risks. Some, by their nature, come
with more risks than others. These are some of the most common resource risks:

Lack of resources

Unexpected Availability
Development of COMMUNICATION Plan
What is a project management communication plan?

It identifies how important information will be communicated to stakeholders throughout the
project. It also determines who will be receiving the communication, how those people will
receive it, when they’ll receive it, and how often they should expect to receive that information.
How to make a project management communication plan
•
Choose a format.
•
Set a communication goal.
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Identify stakeholders.
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Identify methods of communication.
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Determine frequency of communication.
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Determine who provides communication updates.
Communication format
Set a communication goal
your goal will likely be to keep stakeholders updated on the project status or even to keep stakeholders
mindful of the project’s benefits so they’ll continue to advocate for it.
Identify your stakeholders
Most projects have many stakeholders, most of whom have different levels of interest in and influence
on the project. You’ll need to identify the stakeholders with whom you’ll communicate throughout the
project and list them.
Identify methods of communication
One purpose of your communication plan is to get the right eyes on the right information, so along with
listing who your stakeholders are, your communication plan should also list how you intend on
communicating with those stakeholders.
Determine the frequency of the communication
List how often you will send out each type of communication or how often you need to loop in each
stakeholder.
Determine who provides the communication updates
Most often, this task will fall on the project manager, but if not, the owner of a specific update needs to
be clearly identified in your communications plan.
When formulating your project communication plan, make sure it includes:
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The purpose or goals of the communication plan.
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Information about stakeholders and their roles.
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The types of information that needed to be shared with stakeholders.
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The methods used to communicate.
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The frequency that each stakeholder would like to receive information.
What is project communication risk?
Communication risk comes from the chance that the message you give and your project team receives
goes awry. Getting your communications wrong can have a big impact on the project and its delivery.
From your PMO through to your project managers, you need to be communicating:
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The project plan
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Deadlines
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Requirements
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Deliverables
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KPIs
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Strategic value
How to minimize communication risk?
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Know your communication tools.
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Know your audience.
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Know your stakeholders.
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Know your goals.
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Be positive.
The Take-home
Knowing what project communication risks are and how to minimize them will keep your projects
running smoothly and your people engaged. Our five things you need to know to reduce the risk of poor
communication will ensure that everyone gets the right message, first time.
Develop simple project proposal with project communication and
execution plan
Identification of potential project
Effective methods of identifying potential project
1. Value Stream Analysis
What is value stream analysis (VSA)?
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Also called: value stream analysis, lean process mapping Value stream mapping
(VSM) is defined as a lean tool that employ a flowchart documenting every step in the process.
VSM as a fundamental tool to identify waste, reduce process cycle times, and implement
process improvement
VSM is an essential lean tool for an organization wanting to plan, implement, and improve while
on its lean journey.
VSM helps users create a solid implementation plan that will maximize their available resources
and help ensure that materials and time are used efficiently
What is the purpose of value stream analysis?
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The value stream is the entire collection of activities necessary to produce and deliver a product
or service.
Value stream analysis separates those activities that contribute to value creation from activities
that create waste, and identifies opportunities for improvement
2. Responding to customer feedback
Why is responding to customer feedback important?
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Customer feedback helps to improve customer retention
An unhappy customer will eventually find a better alternative to your business and leave.
Customer feedback benefits are significant.
It helps you determine if your clients are satisfied with your service and detect areas where you
should improve
3.Furthering a strategic or operational plan
What are strategic and operational plans?
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A strategic plan is developed to help the organization achieve its long-term vision.
Conversely, operating plans involve the process of deciding what needs to be done to achieve
the tactical objectives of the business.
Operational planning is done to support strategic planning efforts.
Why are strategic and operational planning important?
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Using strategic planning and operational planning, you can keep your entire organization on
track. Success as a business doesn't happen by accident.
The right plans allow you to measure your progress, set goals, and make important changes
when necessary, helping your company stay competitive
4.Performance metrics
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defined as figures and data representative of an organization’s actions, abilities, and overall
quality.
There are many different forms of performance metrics, including sales, profit, return on
investment, customer happiness, customer reviews, personal reviews, overall quality, and
reputation in a marketplace.
Integral to an organization's success.
Traditionally, businesses have viewed the following financial measurements as indicators of success:
Return on capital employed or return on investment (ROI)
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Profit
Market
share
Earnings growth
Stock price
Non-financial measurements are also useful to help assess, report, and drive success. Most notably, the
Malcolm Baldrige National Quality Award's Criteria for Performance Excellence non-financial success
metrics include:
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Customer satisfaction
Process excellence
Employee satisfaction
Organizations across most industries rely on these indicators as well as:
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Fast, responsive time to market
A loyal customer base
Outstanding processes for quality and timeliness
Mechanisms that ensure learning, growth, and continual improvement
5. Responding to employee suggestions
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Thank them and let them know you appreciate hearing their positive review
Developing Mission, vision, goals, and objectives
The strategy is how the firm aims to realize its mission and vision
Vision
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A Vision Statement describes the desired future position of the company.
A vision statement provides strategic direction and describes what the owner or founder wants
the company to achieve in the future
Mission
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A Mission Statement defines the company’s business, its objectives and its;
Approach to reach those objectives A mission statement describes an organization’s purpose
and answers the questions “What business are we in?” and “What is our business for?
Statements are the words leaders use to explain an organization’s purpose and direction. When
expressed clearly and concisely, they can motivate your team, or the organization as a whole, with an
inspiring vision of the future
The two statements do distinctly different jobs:
1. Purpose - Mission statements define your organization’s purpose and its primary objectives. Vision
statements also define your organization’s purpose, but they focus on its goals and aspirations
2. Application - Usually, people write these statements for an organization, or for an organizational unit
or a team. You can also create statements to define the goals of long-term projects or initiatives
Roles Played by Mission and Vision
Mission and vision statements play three critical roles:
1. communicate the purpose of the organization to the stakeholders
2. inform strategy development
3. develop the measurable goals and objectives by which to gauge the success of the organization’s
strategy. These interdependent, cascading roles, and the relationships among them, are summarized in
the figure
Goals
General statement of Aim, Task or Purpose where only qualitative facts are stated
1. They’re long-term business results
2. They’re not measurable
3. There are no time boundaries
4. Business has less no. of goals
5. It is a combination of objectives
Objectives
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A thing aimed at or sought; a goal
Objectives are specific, measurable steps that can be taken to meet the goal
An objective specifies a desired end result to be achieved. A task is an activity performed to
achieve that result. An objective is usually a noun, whereas a task is a verb
Objectives should be SMART
You can identify risks by asking, “What could go wrong
Developing Project Objectives
Once a mission statement has been developed
Objectives define the boundaries of what will be achieved and guide its planning and execution. They
need to be specific and measurable, according to the acronym SMART:
Specific: a clear statement of what will be delivered or achieved
Measurable: quantifiable and measurable so that everyone is clear about what will be achieved
Achievable: not too ambitious, but able to be achieved in the approved time frame and budget as well
as to the expectations of stakeholders
Realistic: can be achieved within the time frame and budget
Time constrained: within the specific time frame that has been estimated, approved, and funded
Assessing Project Risk
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this will help you to minimize the risk
the schedule
the budget
project quality
customer satisfaction
Planning the project proposal
What is Project Planning?
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Project planning is the process of defining your objectives and scope, your goals and
deliverables, and assigning task and budgetary resources for each step.
Why is project planning important?
Project planning is important at every phase of a project. It lays out the basics of a project, including the
following:
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Scope
Objective
Goals
Schedule
Project planning can be in a simple Google doc, or you can use project management software.
1. Think of your plan as a roadmap for stakeholders
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Every project needs a roadmap with clearly defined goals that should not change after the first
phase of the project has been completed.
2. Break the project into a list of deliverables:
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This list should break the larger project into smaller tasks that can be assigned to specific team
members
3. Talk to your team:
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Identify by name all the individuals and/ or organizations involved in each deliverable or task,
and describe their responsibilities in detail.
4.Identify risks:
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Think through what you’ll do if something takes much longer than expected, or if it costs end
being much more than your initially anticipated.
5.Create a budget
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Attached to your list of milestones and deliverables should be information about the project
cost and estimated budget
6. Add milestones:
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Use your list of deliverables as a framework for adding milestones and tasks that will need to be
completed to accomplish the larger goal.
7. Set progress reporting guideline:
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These can be monthly, weekly, or daily reports
Writing the project proposal
Project proposal
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A document that outlines everything stakeholders need to know to initiate a project.
A proposal is a written document to a sponsor or donor. Donors could either be public, private or part of
the international development community.
Overviews of topics that are usually addressed in a proposal are presented below:
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Fundamental research (returns expected in 25 years – outcome uncertain)
Applied research (returns expected in 15 years – outcome predictable)
Development (returns expected in 5 years – outcome expected)
Practical execution of a task (returns expected on project completion)
Types of Project Proposal
Solicited Project Proposal
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A solicited project proposal is sent as a response to a request for proposal (RFP). Here you’ll
need to adhere to the RFP guidelines of the project owner.
Unsolicited Project Proposal
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You can send project proposals without having received a request for proposal. This can happen
in open bids for construction projects, where a project owner receives unsolicited project
proposals from many contractors
Supplemental Project Proposal
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This proposal is sent to investors to ask for additional resources during the project execution
phase.
Informal Project Proposal
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This type of project proposal is created when a client asks for an informal proposal, without an
RFP.
Renewal Project Proposal
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You can use a renewal project proposal when you are reaching out to past customers. The
advantage is that you can highlight past positive results and future benefits.
Continuation Project Proposal
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Sent to investors and stakeholders to communicate project progress.
How to write a Project Proposal
Triple Constraint: How can we address the triple constraint of project scope, schedule and cost?
Core Problem: What is the core problem we’re trying to solve?
Resources: What resources will be available?
Timeline: What project timeline are we working within?
Budget: What project budget do we have to work with? How does this affect our goal setting?
Strategic Goals: What are the strategic goals of our client, and how does our proposal align with those
goals?
Responsible Parties: Who are the people responsible for the project? What are their goals and
motivations?
Client Benefit: How will the client benefit from the completion of our project? What is their primary
goal?
Project Deliverables & Success: How will success of the project be measured? What deliverables do our
stakeholders expect to see at closure?
Proposed Format
1. Title page
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A title page should appear on proposals longer than three to four pages. The title page should
indicate the project title, the name of the lead organization (and potential partners, if any), the
place and date of project preparation and the name of the donor agency to whom the proposal
is addressed
2. Project title
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The project title should be short, concise, and preferably refer to a certain key project result or
the leading project activity. Project titles that are too long or too general fail to give the reader
an effective snapshot of what is inside.
EFFECTIVE AND INEFFECTIVE PROJECT TITLES
Effective project titles
■ Raising Environmental Awareness in the Newly Independent States
■ Citizens Protect Lake Debar
Ineffective titles
■ Environmental Education
■ Protection of the Watershed of Lake Dojran from the Wastewater Flowing Through the River Dragomir
Originating from Local Households
3. Contents page
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If the total project proposal is longer than 10 pages it is helpful to include a table of contents at
the start or end of the document. The contents page enables readers to quickly find relevant
parts of the document. It should contain the title and beginning page number of each section of
the proposal.
4. Abstract
Many readers lack the time needed to read the whole project proposal. It is therefore useful to insert a
short project summary — an abstract. The abstract should include:
• the problem statement;
• the project’s objectives;
• implementing organizations;
• key project activities; and
• the total project budget
Theoretically, the abstract should be compiled after the relevant items already exist in their long form.
For a small project the abstract may not be longer than 10 lines. Bigger projects often provide abstracts
as long as two pages
5. Context
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This part of the project describes the social, economic, political and cultural background from
which the project is initiated. It should contain relevant data from research carried out in the
project planning phase or collected from other sources. The writer should take into
consideration the need for a balance between the length of this item and the size of the overall
project proposal. Large amounts of relevant data should be placed in an annex
6. Project justification
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Rationale should be provided for the project. Due to its importance, usually this section is
divided into four or more sub-sections
Problem statement
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The problem statement provides a description of the specific problem(s) the project is trying to
solve, in order to “make a case” for the project. Furthermore, the project proposal should point
out why a certain issue is a problem for the community or society as a whole, i.e. what negative
implications affect the target group. There should also be an explanation of the needs of the
target group that appear as a direct consequence of the described problem
Priority needs
The needs of the target group that have arisen as a direct negative impact of the problem should be
prioritized. An explanation as to how this decision was reached (i.e. what criteria was used) must also be
included. For example, if the problem is stated as “… poor infrastructure in the community” the list of
needs associated with this problem may be:
• improved water supply in quality and quantity;
• better roads; and
• improved solid waste collection.
The proposed approach (type of intervention)
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The project proposal should describe the strategy chosen for solving the problem and precisely
how it will lead to improvement. One way to describe the approach related to the need
previously stated as improved water supply could be: “intervention to provide basic water
supply facilities in the community, ” with some description of the specific features of the
solution proposed
The implementing organization
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This section should describe the capabilities of your organisation by referring to its capacity and
previous project record. Describe why exactly your organisation is the most appropriate to run
the project, its connection to the local community, the constituency behind the organisation and
what kind of expertise the organisation can provide. If other partners are involved in
implementation provide some information on their capacity as well.
7. Project aims
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the hierarchy between objectives needs to be established, as well as how many levels the
hierarchy should present. In reality, an organisation should have already resolved this issue in
the project planning phase.
Project goal (or overall objective)
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This is a general aim that should explain what the core problem is and why the project is
important, i.e. what the long-term benefits to the target group are.
Project objectives
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The objectives should address the core problem in terms of the benefits to be received by the
project beneficiaries or target group as a direct result
Project results
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Results describe the services or products to be delivered to the intended beneficiaries. This is
what the project management is promising to deliver. The results are more detailed than the
objectives and the goal, and should be possible to measure through the use of objective
indicators. Special consideration should therefore be paid to this area.
8. Target group
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Define the target group and show how it will benefit from the project. The project should
provide a detailed description of the size and characteristics of the target groups, and especially
of direct project beneficiaries. The criteria for target group analysis may be ethnic composition,
gender, age, etc. When these analyses are more elaborate, they may be attached as an
appendix
9. Project implementation
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The implementation plan should describe activities and resource allocation in as much detail as
possible. It is exceptionally important to provide a good overview of who is going to implement
the project’s activities, as well as when and where. The implementation plan may be divided
into two key elements: the activity plan and the resource plan.
Activity plan (schedule)
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The activity plan should include specific information and explanations of each of the planned
project activities. The duration of the project should be clearly stated, with considerable detail
on the beginning and the end of the project.
In general, two main formats are used to express the activity plan: a simple table and the Gantt
chart. A simple table with columns, for activities, sub-activities, tasks, timing and responsibility,
is a clear, readily understandable format for the activity plan. The Gantt Chart, a universal
format for presenting activities in certain times frames, shows the dependence and sequence
for each activity.
Resource plan
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The resource plan should provide information on the means necessary to undertake he project.
Cost categories are established at this stage in order to aggregate and summarize the cost
information for budgeting
10. Budget
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a budget is an itemized summary of an organization’s expected income and expenses over a
specified period of time.
The two main elements of any budget are income and expenditures:
Income (sometimes referred to as revenue) is the amount of financial assets and inkind contribution
used as sources of support for the project.
Expenditures (also called expenses or costs) are all the costs that are anticipated to occur during the
project’s implementation. Regardless of the calculation and classification criteria used, the project costs
should present a reasonable reflection of the activities presented in the project proposal.
Budget categories classify expenditures into smaller groups according to a certain criteria. This is to
monitor spending and ensure compliance with the plan.
The two main costs are direct costs and operational costs.
• Direct costs are associated with a certain activity (e.g. organising a workshop).
• Operational costs are related to internal activities of an organisation and are considered fixed costs in
the short term (e.g. staff salaries, rent, utilities, etc)
The three elements of costs:
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Units
quantity per period
estimated unit costs
11. Monitoring and evaluation
The basis for monitoring is set when the indicators for results are set. The project proposal should
indicate:
• how and when the project management team will conduct activities to monitor the project’s progress;
• which methods will be used to monitor and evaluate; and
• who will do the evaluation.
12. Reporting
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The schedule of project progress and financial report could be set in the project proposal. Often
these obligations are determined by the standard requirements of the donor agency. The
project report may be compiled in different versions, with regard to the audience they are
targeting
13. Management and personnel
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A brief description should be given of the project personnel, the individual roles each one has
assumed, and the communication mechanisms that exist between them. All the additional
information (such as CVs) should be attached to the annexes
14. Annexes
The annexes should include all the information that is important, but is too large to be included in the
text of the proposal. This information can be created in the identification or planning phase of the
project, but often it is produced separately. The usual documentation to be annexed to the project
proposal is:
• analysis related to the general context (e.g. a civil society sector assessment);
• policy documents and strategic papers (e.g. a local environmental action plan);
• information on the implementing organisations (e.g. annual reports, success stories, brochures and
other publications)
• additional information on the project management structure and personnel (curriculum vitae for the
members of the project team);
• maps of the location of the target area; and
• project management procedures and forms (organisational charts, forms, etc).