Enq: Thomas Mathiba
TERMS OF REFERENCE
DEVELOPING AND IMPLEMENTING AN IT –BASED PROJECT
MANAGEMENT SYSTEM
1. PROJECT TITLE
Developing and Implementing an IT-Based Project Management System
2. BACKGROUND
Skills development is one of the major challenges facing the new South Africa on
its way to improved living standards for the majority of the population, increased
productivity levels and a higher competitiveness on the world market. The Skills
Development Act promulgated in 1998 lays the foundation to redress the past by
introducing new training systems which place special emphasis on enabling the
formerly disadvantaged to actively participate in the country’s economic activities.
Since the launch of the Skills Development Strategy in February 2001, a lot of
Sector Education and Training Authorities (SETAs) have made significant
contribution in taking forward the broad objectives of the Skills Development Act.
Some SETAs have succeeded to effectively co-ordinate education and training
programmes at the workplaces by using practical project management approach
to manage the learnership implementation. Whilst project management was once
the exclusive job of project managers who most often coordinated the activities of
specialized, complex, large scale projects, in the more recent years, however,
the role of project managers and project management has been changing. The
applicability of the project management has widened to include projects of a
broad range, from a simple to a complex, and from manufacturing to service and
education and a host of other areas. Based on the success of the project
management approach within the SETA environment, it is gradually emerging
that because projects bring together people from a range of jobs, they are
diverse and flexible, and provide them with the opportunity to collaborate in a
unique way, SETAs are increasingly finding project management approach as a
preferred way to fulfill the needs of their stakeholders and achieve the National
Skills Development Strategy targets.
However, at issue with most SETAs is the lack of an IT-based project
management system. What is required is a system which outlines the project
management body of knowledge, tools, techniques, processes, procedures,
templates and standards to be applied to meet project requirements.
The purpose of the project management system is to ensure that management of
multi functional projects is performed in a logical flow of activities to guarantee
good results, achieve overall project goals and eliminate shortcuts. Unless
projects are scoped, planned in a similar way their quality is compromised
resulting in lack of focus and inability to achieve organizational goals.
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Wholesale and Retail SETA context
In 2003, the W&RSETA commissioned a research to review the operations of the
Projects Office and how that could be improved. Amongst others, the research
report noted that the system at best was lacking in sound processes, tools, and
overall project management system. One of the key shortcomings with regard to
methodologies and processes within the project office was that documented
processes are not fully applied by the project managers and there are
inconsistency in project documentation and filling. The ambiguity of projects
reports made it virtually impossible to workout real performance based on what
was reported. Review of the files was not sufficient to surmise the current state of
affairs on any of the projects. Lack of project plans made it difficult to measure
performance against plan.
The research report went on to make some recommendations which briefly
indicates that:
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A Project Management System be developed and implemented and
should detail project management methodologies and processes that are
strictly applied.
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All documentation formats, layouts and level of detail required need to be
standardized and must involve all key stakeholders.
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The system should ensure that projects are managed within the three
pillars of proper project management: Budgets, Schedule and Quality.
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The standard should be more or less the same for all projects. All should
include but not limited to the purpose, level of detail, for whom they are
written and expected outcomes
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Equally important is that projects undertaken should be defined in terms of
their characteristics and type. All projects initiated should focus on how the
respective project will contribute towards the attainment of all DoL targets
for the organization.
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There should be proper documentation and filling
To this extend the W&RSETA would want to request proposals from providers to
develop and implement a Project Management System.
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3. OVERALL PROJECT OBJECTIVE
The overall objective of the project is to develop and implement a Project
Management System to support the W&RSETA business processes in an
automated way.
4. SCOPE OF THE PROJECT
4.1 Project Management: Provide full project management for this project
The provider will have to provide the following:
 project management
 engage in a scoping and planning exercise
 define the business objectives of the project
 develop a strategy for meeting them.
The activities should include developing business and technology strategy,
define the change imperative, building a business case, assess the change
readiness, determine processes and system risk assessment, develop project
team technical environment, and define overall training strategy.
4. 2 Designing the system
4.2.1 Defining the system
This will require the provider to formulate a clear statement which reflects a
precise understanding of the scope and nature of a problem. Establishing a
definition serves two purpose: it will commit the organization to developing an
appropriate information system which will serve the needs of the organization
and its stakeholders, and serves as a benchmark against which the system can
be measured once it is operational. Defining a system requires the input and
agreement by the Wholesale and Retail SETA line functionaries.
4.2.2. Identifying reporting requirements
The provider should identify reporting requirements as the next procedure in
building an information system. Unless it is done, it is impossible to know what
data will eventually have to be collected. Particular attention must first be paid to
recognizing all user groups. Developing proposals for reporting formats speeds
up the process because stakeholders have something to respond to.
4.2.3 Specifying operational requirements
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The provider will have to interview the end-users to note the operational
requirements, and definitely before determining software and hardware
requirements, and definitely before the system building procedure begins. The
best source of operational requirements information is the Projects Office and the
line function managers who will use the system.
The system must meet the following operational requirements;
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Form part of the W&RSETA policies and procedures,
Be customized to SETAs type of projects
Be user-friendly
Be available to everyone dealing with projects
Even though each project scope will differ, the planning, implementation,
monitoring and reporting should be the same both at documentation and
detail level.
It must lend itself to expansion as line functions and stakeholders identify
new information needs.
It should ensure greater inter-operability and integration of different
applications
Facilitate continuous improvement in the technology
4.2.4 Technical standards
The provider will be expected to define the under-mentioned technical standards
that would begin the process of rationalizing technology and explain how they will
work to enable the Project Management System to share data and inter-operate
with other systems.
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Networking protocols
Operating systems
Data-bases and data-warehouse
Middle-ware
Transaction processing
Desktop environment
Multi-media standards
4.2.5 Identifying data elements
It is required that the provider transform the reporting requirements into data
requirements or elements. This means deciding which pieces of raw data must
be collected and processed in order to produce the reports requested by
information users. The provider must identify data elements meticulously.
Attention also need to be given to how the data is to be entered. As this
procedure gets under way, related data elements should be grouped together in
order to create data files.
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4.2.6 Determining the equipment requirements
The provider will have to define the tools, supplies, machinery or materials which
will be required to operate the system. Equipment could mean a certain software
application running under specific computer operating system environment. It is
however important to keep in mind that not all systems require essentially the
latest technology to operate effectively.
4.2.7 Building the system
The procedure to be followed consists of three sub-procedures:
4.2.7.1 System design: the provider should lay a physical design of the system.
It is required the relationships and dependencies are established between the
groups of data elements, or data files, in order to determine how data files
interact with each other. The result of this sub-procedure should be a schematic
diagram which will be used to guide the system builder.
4.2.7.2 System development: The builder should use the design document to
start the process of establishing what the data entry forms will look like, what
data will be entered onto which paper forms; how the data will be entered; how
output, in the form of reports will be generated.
4.2.7.3 Software set up: Install and configure the system to provide the
required support to line functions. The provider will configure and pre-test the
system to confirm that it supports the target vision, and define the required
custom development work. Activities include designing the To-Be processes and
technology requirements, configuring the processes in the software, creating the
training curriculum, and developing technical specifications for conversion,
reports and forms.
4.2.7.4 System testing: The builder should ensure that the system functions
correctly. If errors are found the builder of the system must locate the source of
the problem, repair it, and test it again. The builder should from time to time
consult with Projects Office and line function managers to find out about the
user’s impressions of the look and feel of the system.
4.2.7.5 Writing system documentation: the provider should document the
procedure which have been followed as the system development proceeds.
Technical documents: The technical documents should describe in detail every
aspect of the development process, from the point of defining the system through
a detailed description of what went into the building of the system. No elements
should be ignored –a detailed record of the work which has been done to date
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must be put down in writing. This will enable a new system builder to build on
what a previous one has done.
User documents: A user document or manual is crucial. Many users may be at a
complete loss when using a newly built system unless they can refer to a wellwritten user manual.
4.2.7.6. Implementation and Training: The project team should validate and
implement the integration of the new business processes, the software,
production technology, processes and systems security and controls, and
organizational infrastructure and workforce changes. Activities should include
performing integration and end-user training, performing process and technology
cutover activities for “go live’.
4.2.7.7 Project Review: The provider should outline a project review process
4.2.7.6. On-going Support and Maintenance: The provider should outline how
on going support and maintenance will be offered.
5. DESIGN AND IMPLEMENTATION PHILOSOPHY
Needs Analysis
The provider should outline how he/she will conduct a joint needs analysis of
specific requirements with the Projects relevant line functionaries. The core
system to be tailor made to suit the needs of the Wholesale and Retail SETA
business process.
Concentrate on core requirements
Based on the results from the needs analysis, the provider should sequence the
requirements and concentrate on core requirements
Effective implementation is critical
The Wholesale and Retail SETA regards effective implementation of a working
business system rather than the installation of a software as critical. Hence, it is
important to the Wholesale and Retail SETA that a clear plan of action to deal
with on site support, personnel training is provided.
6. EXPECTED OUTCOME AND DELIVERABLE
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A fully functional Project Management System
Customised Financial Management System
A trained Projects Office staff
A trained W&RSETA management and staff
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A customized projects office (front and back) in electronic format (CD)
Technical documents
User documents
7. COMPETENCY AND EXPERTISE REQUIREMENTS
The provider should:
 Be registered as an accredited training provider
 Have track record
 Have the capacity to develop and implement the system
 Be able to design training manuals
 Have the necessary capacity to facilitate training
8. SERVICES DESCRIPTION
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Project Management
Software set up
Customisation and Installation
Implementation and Training
Project Review
On-going Support and Maintenance
9. APPLICATIONS / FUNCTIONALITIES
9.1. Projects Financial Management System
The system should be able to perform the following:
Project Earned Value Graph
Should be able to measure a series of categories and overall performance
within a project.
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Measure project performance
Planned Value, Actual Value, Actual Costs
Monetary value to time and cost
Forecast estimate to complete the project based on current
performance
Financial Reports
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Project Budgets
Work performed versus work scheduled
Budget cost versus actual cost
Quality of the project
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Project expenditure and balance
Project spending status on quarterly and annual basis
9.2 Project Reports
The system should produce structured reports specifically for the four phases
of a project life cycle. Reports should be based on the following:
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Planning
Implementation
Monitoring
Evaluation
9.3 Project Flow Charts
The systems should produce flow charts
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Project Feasibility Report process
Project Charter approval process
Project Approval process
Budget approval process
Change Request process
Procurement / Consultant process etc.
9.4 Projects Templates
The system should be able to produce the following templates:
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Project Information Index
Action Log
Communication tracking Log
Correspondence Log
Project Contact Details
Quality Review Checklist
Organisation Chart
Resource Specification Form
Budget Approval Form
Risk Management Form
Risk Management Log
Risk Assessment
Risk Action Log
Resource Assignment Matrix
Task List
Milestone Table
Minutes and Actions from meetings
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Change Request Form
Change Request Log
Fault Management Form
Issue Management Form
Issue management Log
Log of Plans and Deliverables
Documentation distribution
Work breakdown structure
Project status reports
Monthly reports
9.5 Project Management Procedures
The system should produce procedures to be followed with respect to:
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Project definition
Risk Management
Exception Management
Quality management
Human Resource management
Cost management
Communication
Change management
Procurement management etc.
9.6 Project tracking
The system should be able to track project performance in relation to project
milestones, deliverables, targets, budgets and timeframes etc.
9.7 Project Standards
The system should produce standards that refers to the processes, applicable
objectives and deliverables concerned with:
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Project Initiation
Scope planning and definition
Work-breakdown structure
Organization
Estimating
Project Plans
Exception Management
Risk Management
Procurement Management
Quality Management
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Communications Management
Change Management
Project Plan Execution
Cost control
Schedule control
Reporting
Close-out
9.8 Project Documentation and Filling
The system should be able to manage, file, store and retrieve all project
related documentation in a standardized format which includes and not limited
to the following:
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Project register
Document tracking file
Project Charter
Project Plan
Project Budget
Status Reports
Payments
Receipts
Change Request
Contracts with consultants
Status reports from consultants
Minutes of meetings
Strategy information
Technical manuals
Statutory documents
Vendor information etc.
10. REPORTING REQUIREMENTS
The service provider will:
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Report directly to the Project Manager
Submit monthly progress reports
Submit an evaluation report at the end of the project
Make presentations on request to W&R SETA Projects Board
11. TIMEFRAME
This project is for the duration of 3 months
12. EVALUATION CRITERIA
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CV of providers
Costing
Methodology and Approach
Historically Disadvantaged Individual
Proven Track Record
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