PROJECT MANAGEMENT
DECEMBER 2008
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Table of Contents
Table of Contents ....................................................................................................................................... 2
Purpose.......................................................................................................................................................... 3
Scope.............................................................................................................................................................. 3
Overview....................................................................................................................................................... 3
Procedure ..................................................................................................................................................... 4
1. The Proposal ............................................................................................................................................................................ 4
2. Initiating the Project ............................................................................................................................................................... 5
3. Implementing the Project...................................................................................................................................................... 6
4. Finalising the Project .............................................................................................................................................................. 7
5. Roles and Responsibilities ..................................................................................................................................................... 8
6. Definitions................................................................................................................................................................................. 8
Appendix – Tools for Project Planning .................................................................................................. 9
Tool 1. PERT Analysis for the calculation of time estimates. .......................................................................................... 9
Tool 2 . Risk Management ...................................................................................................................................................... 10
Tool 3 . Work Breakdown Structure (WBS).................................................................................................................... 13
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Purpose
This procedure outlines the processes and phases that apply to the delivery of a project.
This procedure outlines processes and tools which may be applied to projects, of varying size and
scope.
Scope
A project is defined “involving a series of inter-related activities with defined start and finish times”. This
procedure recognises an inherent variation in the scale and scope of projects by offering flexibility of
approach.
While the process steps described here follow accepted practices, the Project Manager is
empowered to add or delete process steps to meet the requirements of a particular project. This
flexibility of approach means that the procedure may be equally applied to a variety of widely differing
project needs. Projects as diverse as, say, the installation of a new computer system, an advertising
campaign, or the construction of a roundabout are all candidates for the application of this
procedure.
This procedure represents a single generic delivery platform for simpler projects. It differs markedly
to the approach taken with infrastructure type projects, which by virtue of their complexity, are
managed by many procedures covering a wide range of subjects and issues.
.
Overview
Common
Network Management
(Project Initiation)
Project
Development
(Concept)
Project
Implementation
Project
Finalisation

Project Brief / request from client

Prepare draft Project Plan

Submit for Client Acceptance


Register / Formalise Project
Analyse Requirements/ Examine
Options
Develop Costings & Timescales
Prepare Project Plan



Manage Implementation / Issue
Status Reports

Confirm Deliverables


Evaluate/Test Completed Project
Close Out Risks

Gain Project Sign-Off

Facilitate Handover
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Procedure
1. The Proposal
Project Initiating Request (Brief)
Project
Initiating
Request
The project begins here. The request defines the initial scale and scope
of the project from the client perspective. The level of detail will vary
from project to project.
Depending on the nature of the project, the client may require either a
concept proposal with budget costings or a more detailed design with
firm costings.
The Project Manager must determine the required outcomes through a
process of negotiation with the client.
Prepare Draft Project Plan or Proposal
Prepare Draft
Project Plan
(Proposal)
As a result of the negotiations with the client, develop the client’s brief
into a concept (or a design) that lists the work to be performed and the
anticipated outcomes.
Propose a budget based on the concept. As described above, the
supplied costings may be budgetary or firm depending on the client’s
specific requirements for this stage of the project.
The Project Brief/Plan form (used as either a brief or a plan) may be used
for the submission to the client.
Submit
for
Client
Acceptance
Gain Approval to Proceed
Submit the proposal with the Project Brief/Plan for management approval
(sign off).
The Project Brief / Plan Form has provision for a client sign-off.
Client
Acceptance
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2. Initiating the Project
Register and Formalise Project. Commence tracking
status
Register/
Formalise
Project
Once approved, the project must be given a Project Number.
Make initial entries in Project Status Record.
Analyse Requirements and Investigate Options
Analyse
Requirements
and Examine
Options
Analyse the concept proposal. Investigate alternatives in terms of
implementing project. As appropriate, gain expressions of interest,
quotations etc from potential suppliers/contractors.
Agree on a preferred option for development.
Prepare Project Plan
Prepare a Project Plan for the project detailing:
Develop
Costings and
Timescales
Prepare
Project
Plan

A detailed description of the project scope and deliverables.

A Work Breakdown Structure defining the tasks (including
development tasks) that comprise each project deliverable.

An implementation timeline with designated milestones.

A schedule of costs against time for the project.

An analysis of risks applying to the project.

How the delivered project will be evaluated and tested for final
acceptance.

Details of the stakeholders, suppliers and the project
implementation team (names, positions, involvement)..

Identity of the manager responsible for governance: (Project
Brief / Scope Change / Finalisation) of the project.
Prepare Costings
Prepare and establish a budget for the project and, if appropriate,
invite quotations/tenders from suitable suppliers.
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3. Implementing the Project
Review Project Plan
Completed
Project Plan
Confirm that the scope / time / budget is appropriate with the project
sponsor. The Project Plan must contain all the information required to
implement the project.
Call for Tenders / Quotations for External Resources
The methods of securing resources will vary with the project.
Accept Tender /Quotation and Issue Contract or
Agreement
Manage
Implementation
Process
The process will vary with the project.
Manage the Implementation Process
Irrespective of the size and scope of a specific project, it must be
managed in a professional manner, following the processes outlined in
the Project Plan.
Monitor the Supplier / Service Provider’s performance by:
Implementation
Process

Confirming the supply of (and quality of) all deliverables.

Confirming that the Supplier is meeting agreed targets in terms
of project cost and timescale.
During the project implementation, if deficiencies are noted in the
project deliverables, be prepared to stop the works (holdpoint or clock
stop). Some deficiencies may warrant action against the supplier.
During the course of a project, it may be necessary to change the scope
of the project, or a deliverable within the project. It is essential that such
changes are agreed to, and signed off on by the client. Use the Change
Request Form to document and sign off on the change action.
Maintain the ongoing Project Status Record and provide Project Status
Reports on a regular basis to management.
Implementation
Complete
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4. Finalising the Project
Evaluate and Test Project for Acceptance
Evaluation/
Testing
of
Completed
Project
Once the project works have been completed, a program of evaluating /
testing must be carried out (as defined in the Project Plan).
Providing the test results prove satisfactory, the project can be accepted.
The acceptance procedure will have been defined in the Project Plan.
Advise Acceptance
Establish Final Project Costs
Facilitate Project Sign-Off
Provide a report to management showing:
Project
Sign-Off

Results of Acceptance Evaluation / Auditing /Testing

Final Costs of the Project

That all risk issues have been completely met and no longer
offer a threat to the project
The responsible manager (as defined in the Project Plan) is required to
demonstrate his or her concurrence with project completion by signing –
off on the report.
Facilitate Handover of Project to Client
Client
Handover
Follow procedure described in Project Plan
Review Project Outcome
Forward Completion Report to Management
The Project Completion Report (template provided) calls for a review of
the project outcomes in terms of:
Project
Complete

Objectives Met

Risk Management Issues

Project Costs

Project Time Scale Variations

Stakeholders Expectations

Lessons learnt and recommendations for improvement
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5. Roles and Responsibilities
Client / Sponsor
The person who requests the project, who is responsible for project signoffs and is the person to whom the project is handed over.
Project Manager
The person charged with the responsibility for managing the project.
Depending on the scale and scope of the project, the Project Manager may
delegate some responsibilities to others.
6. Definitions
Project
A project is a temporary undertaking to create a unique product, service
or result
Project Brief
Initially this represents the client’s concept of the proposal. It is developed
further to become an agreement with the Project Manager on the scope
and deliverables of the project.
Draft Project Plan /
Proposal
The Project Manager’s initial interpretation of the client’s brief. Usually
incorporates a concept design and budgetary or preliminary costings
Project Plan
The detailed document defining the deliverables, timescales, costs, risk
assessments, personnel and acceptance criteria relating to the project. Also
defines the actions required to meet the objectives stated in the project
brief.
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Appendix – Tools for Project Planning
As has been referred to previously in this document, the aim of this procedure is to provide a
generic and flexible management tool. It is also designed to be used by persons with no, or limited
experience in project management.
While the experienced project manager is able to make use of a range of project tools, those with
lesser experience may not be completely familiar with some of the requirements of the project plan.
Some basic tools are provided here to assist with some aspects of the project plan.
Tool 1. PERT Analysis for the calculation of time estimates.
This represents a commonly accepted method of calculating time estimates for a project.
Step 1. For each project milestone, list the factors likely to impact on the timescales (weather,
delivery delays, availability of equipment or suppliers etc) and derive the following estimates of time:
1. Your most pessimistic time estimate
2. Your most likely time estimate
3. Your most optimistic time estimate
Step 2. Apply this formula to your estimates to calculate the likely duration
Time = Topt + 4Tlik + Tpess
6
where Topt is the optimistic estimate, Tlik is the likely estimate and Tpess is the
pessimistic estimate.
Example: After considering the factors likely to impact on the task you are to carry out, you
determine that a pessimistic view of the time required is 32 days, an optimistic view is 18 days and
your likely estimate is 24 days.
Applying this to the formula gives: 18 + (4x 24) + 32
6
= 146
6
= 24.3 days.
For the project plan, a time estimate of 25 days should be used.
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Tool 2 . Risk Management
This represents one approach to risk assessment and management. More experienced Project
Managers may prefer to use tools they are more familiar with.
Step 1. Identify Potential Risk Events
The following list is designed to provide a series of prompts for the identification of typical risks. It is
by no means a comprehensive list and does not replace the need for the project manager to identify
risk categories applicable to the specific project..
Potential Risk Categories:
Benefit Risks
Example Risks

Source data out of date or unreliable

Growth forecasts not met

Benefits overstated

Project objectives not
(outcomes not achievable)

Performance or acceptance criteria not clearly
scoped (unable to meet client expectations)

Communication/Relationship breakdowns

Tendering/Contractual issues

Material/Labour Market Risks (shortages or
delays in supply of materials/skilled labour.)

Cost Escalations
premiums)

Contractor Delays/Failure

Program delivery (timeframes, productivity,
environmental delays)

Legislative/regulation issues

Industrial Action

Temporary access issues (crossings, emergency
access)

Community protest issues (noise,
inconvenience, impact on business
Commercial Risks
Community Risks
(Oil
clearly
prices,
defined
insurance
dust,
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Potential Risk Categories (2) :
Example Risks (2)

Geophysical issues

Environmental
issues
aesthetics, pollution)

OH&S issues

Heritage Issues

Errors in calculation/ design assumptions

Changes in project priority

Pressure group activity

Policy changes

Prolonged rainfall/flooding
Natural Event Risks

Prolonged high temperatures (OH&S,
bushfire risk)
Other Risks

As defined by Project Manager
Site Risks
Design/ Engineering Risks
Political Risks
(ecology,
Step 2 Analyse the Likelihood and Consequences of Risk Events
Table 1. Likelihood of the Event occurring
Level
Description
Low [L]
Unlikely or rare
Medium [M]
Likely to occur at some time
High [H]
Will probably occur often or most of the time
Table 2. Consequences of the Event Occurring
Level
Description
Low [L]
Minor Impact and minor consequences
Medium [M]
Moderate impact with moderate consequences
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High [H]
Major impact and major consequences
Step 3. Apply the Assessed Likelihood and Consequences to the
Risk Matrix
Consequenc
es
Derive a “risk level” by intersecting Likelihood and Consequences
H
3
4
5
M
2
3
4
L
1
2
3
L
M
H
Likelihoo
d
Step 4. Manage the Risks
For Risk Levels 1-2;

Remain aware of the possibility.

Manage it by utilising routine procedures.

If the risk should escalate, re-assess it.
For Risk Level 3-5;

Develop an action plan to preferably avoid, or at least minimise the consequences.

If risk level is 5, determine actions to reduce it to a lower level

Include the action plan in the Project Plan.

Monitor the Risk Action Plan on a regular basis to update assessments and ensure that
appropriate actions are being undertaken to mitigate or close out the risk.
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Tool 3 . Work Breakdown Structure (WBS)
The Project Plan/Brief includes a section for inclusion of a work breakdown structure. Work
Breakdown Structures represent the ideal approach for those with limited experience on, or access
to, Gannt Charts.
A Work Breakdown Structure is essentially a hierarchical listing of the tasks within the project
deliverable. Following is a simple example of a WBS showing the components of a single deliverable.
Deliverable
1. Foundations
Task
Sub-Task
Duration
(days)
1.1 Concrete Slab
1.1.1 Level Site
1
1.1.2 Excavate Trench
2
1.1.3 Lay Formwork
2
1.1.4 Pour Concrete
1
1.1.5 Cure Concrete
4
Total Time for 1.1 Concrete Slab
10
1.2 Install Fasteners
1.2.1 ………
…
etc.
…
This table is simply extended to cover all deliverables and tasks that make up the project.
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