Module 1
Fundamentals of project management
After completing this module, students will be able to:
• Explain the nature of a project;
• Explain the nature and application of project management;
• Explain the types of structures that are found in a project environment;
• Explain the application of organisation structures in a project environment;
• Explain the major processes and activities required to manage a project.
1
Module 1
1.
Slide #4
The nature of a project
After completing this outcome, students will be able to:
• Explain with the aid of an example of a project plan, the characteristics
of a project;
• Differentiate between project and non-project work;
• Identify reasons for undertaking projects;
• Identify types of projects and their complexity.
1.1
Slide #6
Project plan and project characteristics
The Project Management Body of Knowledge (PMBOK), which
describes the sum of knowledge within the profession of project
management, defines a project as:
“A temporary endeavour undertaken to create a unique product or
service.”
According to Baker and Campbell, a project is a sequence of tasks with
a beginning and an end that is bounded by time and resources and
that produces a unique product or service. This means that a project
produces something that has never existed before; a deadline or target
date when the project must be done; and a budget that limits the amount
of people, supplies and money that can be used to complete the project.
Another definition of project management is:
“A project is a temporary sequence of tasks with a distinct beginning
and a definite end that is undertaken to create a unique product or
service. In addition, a project must have defined objectives in order to
clearly indicate when the project has been completed”.
1.2
Slide #7-8
The characteristics of a project
•
•
•
•
•
•
•
•
•
•
•
2
A Single, definable purpose or end-item
Every project is unique.
A project is a temporary activity.
A project utilizes skills and talents from multiple professions and
organisations.
Possibly unfamiliar
There is something at stake.
A project is a process of working to achieve a goal.
A project relies on a budget
A project has a single point of responsibility
Projects are usually completed by a team of people.
Projects generally have time and cost constraints.
Fundamentals of project management
Activity 1
What is a project and project characteristics?
The 2010 Fifa World Cup Soccer tournament in South Africa is now in
the minds of all South Africans. It is a huge project and the success of
it, is important for South Africa and Africa, to show the world that we
can offer such an event successfully.
a. In your own words give a definition of what a project is.
• Temporary sequence of tasks
• With a distinct beginning and a definite end
• Undertaken to create a unique product or service (it’s objective)
• Process bound by time, available resources and a budget
– Produces something that has never existed before (ask
learners to give an example)
– Deadline or target date that has to be met
b. Looking at the 2010 World Cup Soccer, make a list of seven
characteristics of the project – the one’s that are important
according to you.
• Definite purpose or end-item – South Africa hosting the 2010
Fifa World Cup tournament
• Unique – It’s the first time South Africa is the host nation of a
soccer world cup and it’s the first time that Africa is hosting it
• Temporary activity – World Cup stretches over eight weeks
(definite beginning and end)
• Utilise skills and talents – All the planning and organising that
must be done, construction work (building of stadiums), new
developments (infrastructure – Gautrain project)
• Unfamiliar – It’s the first time that South Africa is hosting such
an event
• Something at stake – If successful, it will earn foreign
investment for South Africa and bring a huge number of tourist
to South Africa, but if it fails, it will be a huge financial loss for
us
• Process of working to achieve a goal – To finish the work before
the deadline and to offer the best ever World Cup in the history
of soccer
• Relies on a budget – Budget parameters in which all the work
must be done
• Single point of responsibility – The 2010 World Cup organising
committee takes full responsibility for the project and has to
meet the requirements of Fifa (soccer body)
• Completed by a team of people – The organisation committee
(Mr Danny Jordaan and his team), all the contractors, workers
and who ever play a role forms the team of 2010
• Time and cost constraints – Stadiums must be finished and built
within the budget before a date in 2009
3
Module 1
1.3
Slide #9-13
Terminology
4
Project terminology
The following basic terminology and definitions related to projects are
important and will form part of the discussion on projects right through
this manual.
Definition / Explanation
Project
A sequence of tasks with a beginning and an end that uses time and resources to
produce specific results. A project has a specific, desired outcome, a deadline or target
date when the project must be completed, and a budget that limits the amount of
people, supplies, and money that can be used to complete the project
Programme
A program is a group of projects managed in a coordinated way so that the benefits
are greater than if these projects were managed individually
Phase / Stage
A collection of logically related project activities, accumulated in completion of a
major deliverable
Project life cycle
A collection of generally sequential project phases whose name and number are
determined by the control needs of the organisation or organisations involved in the
project
Activities
A specific project task that requires resources and time to complete
Milestones
A clearly identifiable point in a project that summarizes the completion of a related or
important set of tasks
Close out
An acceptable and orderly end to a project
Scope
The magnitude of the effort required to complete a project
Risk
A plan of action for the possibility that a problem will occur by estimating the
probability that the problem will arise during the project, evaluating the impact if the
problem does arise, and preparing solutions in advance
Scheduling
A process by which a project manager incorporates the project’s activities from a
network diagram into a schedule
Timeline
The duration time of each activity, totaling up to the total time of the project
Planning (Project)
The planning process defines and refines the goals of each project phase of the project
and includes selecting the best course of action from all the alternatives
Control
A process for ensuring that reality or actual performance meets expectations or
plans. Control often involves the process of keeping actions within limits by making
adjustments to a plan to ensure that certain outcomes will happen
Deliverables
The clearly defined results, goods, or services produced during the project or at its
outcome. Deliverables or goals are often synonymous
Work Breakdown
Structures (WBS)
A basic project diagram or listing that documents and describes all the work
that must be done to complete the project. The WBS forms the basis for costing,
scheduling, network diagramming, and work assignments
Stakeholders
People who have a personal or enterprise interest in the end results of a project. Not
all stakeholders are involved in completing the actual work on a project.
Budget
The amount of money available for a project
Estimating
The total estimated time and/or cost for a project activity once the work has been
completed
Communication
The information and communication that forms part of the project – stakeholders.
Who needs what information, when they will need it, and how it will be given to them?
Fundamentals of project management
1.4
Slide #14-17
Project plan
1.4.1 Steps in the project plan
1.4.2 Components of a project plan
1.4.3 The role of the project plan
1.5
Project and non-project work
1.6
Reasons for undertaking projects
Slide #18
According to Cleland and King the following five criteria help when to
decide to use a project:
a.
b.
c.
d.
e.
1.7
Slide #21-28
Unfamiliarity
Magnitude of the effort
Changing environment
Interrelatedness
Reputation of the organisation
Types of projects
1.7.1 The first group of projects are examples of the
ancient projects
•
•
•
•
•
•
Great Pyramid of Cheops: circa 1500 BC
Crystal Palace: 1851
Panama Canal: 1869
Eiffel Tower: 1889
Empire State Building: 1931
Golden Gate Bridge: 1937
1.7.2 Commonly undertaken projects in the organisation
1.7.3 Project can be divided into four groups, namely
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•
•
•
Fog
Quest
Movie
Paint-by-numbers
5
Module 1
Activity 2
Examples of projects
In this activity we are going to make a list of national and international
projects.
a. In groups of 3 – 5 members, list the national (local) projects that
you are aware of. First list the projects in your own environment
and then projects from elsewhere in South Africa.
• 2010 World Cup – stadiums around South Africa (Greenpoint
in Cape Town; Port Elizabeth in Nelson Mandela Metropole;
Durban in Kwazulu-Natal; Pretoria, Johannesburg in Gauteng;
Polokwane in Limpopo Province; Bloemfontein in Free State;
and Royal Bafokeng in North West)
• Gautrain project between O.R. Tambo International and
Pretoria
• Katsi Dam in Lesotho
• Bergriver Dam in the Western Cape
• New Holiday Inn Hotel in Soweto
• Any other local projects
b. In your group, make a list of international projects with which you
are familiar – projects completed outside South Africa’s borders.
• The facilitator can draw up a list of well-known international
projects – help learners to show them where these projects are (a
world map will be helpful)
• Learners doing research on projects – facilitator can ask each
group of learners to do research work on projects of a specific
country, for example, Italy, France, etc.
• The following is a list of well-known “overseas” or international
projects. Mention these projects to the learners and then
ask them to do research work on each one and to bring their
research work to the classroom
– Coliseum, Tower of Pisa in Italy
– Eiffel Tower in France
– Big Ben, Queen’s castle, Lady Diana’s museum in London
– Big wall of China
– Autobahn in Germany
– Statue of Liberty in New York
– Add your own to the above list
c.
6
Collate each groups' list of national and international projects into
a list of projects (Put it up in your classroom on the wall)
Information to classroom – encourage learners to bring any
information on a project to the classroom and put it on the pinboard. This is an ideal way to introduce learners to projects.
Fundamentals of project management
2.
Slide #29
The nature and application of project
management
After completing this outcome, students will be able to:
• Define project management within the recognized published
standards;
• Identify and describe project management processes as per recognized
best practices;
• Differentiate using examples of each, between project management;
general management and technical (end product related) processes;
• Explain and discuss the Human Resources hierarchies of the project
team, in accordance with role descriptors.
2.1
Slide #30-33
Define project management
Project Management is defined by the PMBOK as “ … the application
of knowledge, skills, tools and techniques to project activities in order to
meet project requirements as well as stakeholders needs and expectations
from a project”.
In other words the project manager must do whatever is required to make
the project happen. Project management is accomplishing through the
use of the processes such as: initiating, planning, executing, controlling
and closing (also the stages/phases in the project life cycle).
The APM bok defines project management as “the most effective way of
introducing change …. achieved by:
• Defining what has to be accomplished, generally in terms of time, cost,
and various technical and quality performance parameters;
• Developing a plan to achieve these and then working this plan, ensuring
that progress is maintained in line with these objectives;
• Using appropriate project management techniques and tools to plan,
monitor, and maintain progress;
• Employing persons skilled in project management – including normally a
project manager – who is given (single) responsibility for introducing the
change and is accountable for its successful accomplishment.”
Peter Morris describes project management as: “ …. the process of
integrating everything that needs to be done (typically using a number of
special project management techniques) as the project evolves through its life
cycle (from concept to handover) in order to meet the project’s objectives”.
The term project management is sometimes used to describe an
organisational approach to the management of ongoing operations.
This approach, more properly called management by projects, treats many
aspects of ongoing operations as projects to apply project management
techniques to them.
7
Module 1
Project Management is ….
Converting Vision into Reality
“Project Management is a linchpin of
organisational success”
– Tom Peters
AND
The Project Management Promise ..
More for Less
Characteristics of project management
2.2
Identify and describe project management
processes as per recognized best practices
Slide #35
The project management process offers clear steps to get projects done on
time, within budget, with reduced risk, and with predictable results. In
order to begin with a concept and end with a successful product or service,
it is critical to complete the five steps shown in the illustration below:
Five (5) steps of the Project Management Process
1. Initiating Step
2. Planning Step
3. Executing Step
4. Controlling Step
5. Closing Step
8
Fundamentals of project management
The PMBOK describes project management under the following nine
knowledge areas:
a.
b.
c.
d.
e.
f.
g.
h.
i.
2.3
Slide #36
Project integration management
Project scope management
Project time management
Project cost management
Project quality management
Project human resources management
Project communication management
Project risk management
Project procurement management
Relationship of project management to other
management disciplines
Relationship of Project Management to Other Management Disciplines
2.4
Slide #37
Human resources hierarchies of the project
team
9
Module 1
2.4.1 Project manager
Project Manager Profile
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•
•
•
•
•
•
•
Attitude
Common sense
Open mindedness
Adaptability (will make changes)
Inventiveness
Prudent risk taker (no recklessness)
Fairness
Commitment
2.4.2 Project sponsor
2.4.3 Project administrator
2.4.4 Project engineer
2.4.5 Steering committee
2.4.6 Team member
When selecting the project team the following aspects have to be
considered:
•
Previous experience
•
Personal interests
•
Personal characteristics
•
Availability
•
Competencies
10
Fundamentals of project management
3.
Slide #38
The types of structures that are found in
a project environment
After completing this outcome, students will be able to:
•
Identify the structures within a project;
•
Discuss and explain the concept of programme and project
hierarchies;
•
Define the concept of decomposition of a project;
•
Discuss and explain the purpose of the decomposition of a project
into manageable components or parts;
•
Define the terms breakdown structures and deliverables;
•
Discuss and explain the concepts of breakdown structures for
product, work and cost.
NOTE:
A practical example of a project will be added from this part onwards
to explain the processes (practically) to learners to make it easier
for them to understand the importance of project management and
also how a project works and contributes to the success of project
management.
3.1
Slide #39
Types of structures that are found in a project
environment
NOTE:
After the explanation of the Work Breakdown Structure (WBS),
deliverables, etc. the practical example of our project will be added
to illustrate the process which will help you to find it easier to
understand.
•
•
•
•
3.2
Slide #40
Project structure
Work breakdown structure
Cost structure
Communication structure
Programme and project hierarchies
According to the PMBOK a programme is a group of logically related
projects managed in a coordinated way. Programs usually include an
element of ongoing work.
Project hierarchies
11
Module 1
3.3
Deconstruction of a project
3.4
The purpose of the deconstruction of a
project into manageable components or parts
Slide #41
Slide #42-43
Advantages of deconstruction
3.5
Breakdown structures and deliverables
3.5.1 Project deliverables
Slide #44-53
3.5.2 Work breakdown structure
A work breakdown structure (WBS) is the foundation for project
planning and is one of the most important techniques used in project
management.
1.
What is a work breakdown structure?
Example of a Work Breakdown Structure (WBS):
GOAL
FUNCTION 1
TASK 1.1
TASK 1.2
TASK 1.3
FUNCTION 2
TASK 2.1
TASK 2.2
TASK 2.3
12
Fundamentals of project management
House
Plumbing
Civil
Foundations
Walls/Roof
Piping
Sewerage
Electrical
Wiring
Appliances
Figure 1: House project WBS subdivided into boxes
Foundations
Civil
Walls/Roof
Piping
Plumbing
House
Sewerage
Wiring
Electrical
Appliances
Figure 2: WBS horizontal presentation (a simple rotation of figure 1)
2.
Importance of designing a WBS
3.
Define deliverables in a WBS
4.
Purpose of the work breakdown structure
5.
Create a good WBS
6.
Benefits of a WBS
13
Module 1
3.6
Slide #54-65
Breakdown structures for product, work and
cost
3.6.1 Product breakdown structure (PBS)
3.6.2 Work breakdown structure (WBS)
3.6.3 Cost breakdown structure (CBS)
Practical 1
Our first practical focus is on drawing a work breakdown structure
(WBS) for our project: Building a house – we will do it together.
Practical explanation
Project: Building a house
A desire for building your own house develops and therefore you decide
to buy a plot to build your dream house on. After looking around you
find a plot for sale and decide to make an offer to the owner of the plot to
buy it.
The following actions (in different phases or stages) have taken place:
Phase/Stage 1: Buying plot and drawing plans
• Offer on plot (plot size is 1000 square meters), which was accepted;
• Register a bond with a financial bank;
• You instruct your attorney to register the plot at the Deeds Office in
your name;
• You ask an architect to draw the plans for your dream home;
• The architect hands in the plans at the local municipality for approval
and makes any adjustments or technical changes as required.
After receiving back the approved plans from the municipality the
planning around the project itself can now be done.
Phase/Stage 2: Building of house
A contractor (after submitting a tender for the building work) receives the
tender and he contracts sub-contractors. They are responsible for:
•
•
•
•
14
The building of the house;
Electrical work;
Plumbing;
Paint work.
Fundamentals of project management
Phase/Stage 3: Exterior work
Quotes are gathered for the:
•
Building of the security wall and electrical fence around the house;
•
Paving work of the driveway; and
•
Landscaping of the gardens around the house.
Phase/Stage 4: Administration and payments
Administration – payment of contractor, invoices and other
administrative tasks
Note: In our further discussion, to minimize confusion, we will refer
to stages in a project (and ignore “phases”)
Activity 3
Project deconstruction
a.
Why is a project deconstructed and how can we benefit in the
deconstructed of a project?
Why is a project deconstructed?
• Identification of all the major deliverables (parts) of a project;
• Decomposition of major parts down to the smallest possible
elements (smaller parts);
• Determining whether duration and cost can be identified and
linking these to each of the deliverables or even to the smaller
elements or parts
Note: This will help to make sure every little aspect of the
project has been covered, especially in terms of time (how long /
duration) and cost (how much)
What are the benefits of deconstruction?
• Estimates of time, cost and resources required are much more
accurate
• Smaller deliverables (smaller elements) are more easily
manageable
• Each project deliverable (or even a smaller element) can be
assigned to a project team member – he/she is accountable for
the deliverable
• Team members’ performance is measured against completion of
the deliverable or the smaller elements (depending on the type of
project)
• Control of the project is easier – deal with smaller parts, effective
control
How to do a WBS:
Your next task will be to do a work breakdown structure. The next page
provides an example of a WBS.
15
Module 1
Guidelines on how to complete a WBS:
i.
ii.
iii.
iv.
Write next to each deliverable the corresponding stage;
Break each stage into activities and sub-activities;
Under the deliverable, write down the activities and sub-activities,
and complete it for all four stages;
Deliverable 1 is already completed to help you in your thinking
about each deliverable representing a stage.
The following is an example of how we can illustrate a WBS, but
remember you can draw your own illustration in terms of your project and
your needs.
Deliverable 1:
Deliverable 2:
Deliverable 3:
Deliverable 4:
Now that you are familiar with a WBS, let’s draw the WBS for our project,
according to the given information and stages in the project. (We will
divide or “break-up” each stage/deliverable into activities and even subactivities if required).
16
Fundamentals of project management
Project: Build a house
Deliverable 1: Buying and drawing
Buying plot
Drawing Plans
Bond registration – FNB
Register plot (attorney) at Deeds
Office
Architect draw plans
Hand in at Municipality for approval
Receive back approved plans
Deliverable 2: Building the house
Building house
Electrical work
Plumbing
Paint work
Deliverable 3:
Security wall
Paving
Landscape
Deliverable 4:
Payments
Administration
Foundations
Walls (Outside and inner walls)
Put up roof
Put in doors and windows
Build in baths, basins, toilets, and
kitchen-trough
Install cables and wires
Install plugs and light switches
Install light fittings and lights
Install water pipes (in roof and cut-in
into walls)
Install geyser and connect water to
baths, etc.
Install connections for washing
machine
Interior and exterior walls
Roof
Exterior work
Build wall
Install electrical
fence
Paving of drive-way, etc.
Preparing garden, flower boxes
Plant shrubs, lawn etc
Administration and Payments
Architect, Municipality; Contractor;
other sub-contractors, suppliers, etc
File invoices, contracts
Write report on project
17
Module 1
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18
Fundamentals of project management
4.
Application of organisation structures in
a project environment
Slide #66
After completing this outcome, students will be able to:
•
Differentiate between a functional and matrix organisational
structure;
•
Discuss and explain, with an example of a (purely) project
organisational structure;
•
Prepare an organisational structure in a written format;
•
Describe the purpose and responsibilities of the roles attached to
the project;
•
Prepare a written document that describes at least two of the
purposes, roles and responsibilities within a project;
•
Define the concept of stakeholders on a project;
•
Discuss and explain at least six different stakeholders involved with
a project.
4.1
Slide #67-74
Functional and matrix organisational
structures
4.1.1 Organisational structure within a project
4.1.2 Functional project organisational structure
Functional Organisation Structure – example of structure
General
Manager
Civil
Manager
Structural
Manager
Mechanical
Manager
Supervisor
Supervisor
Supervisor
Charge Hand
Charge Hand
Charge Hand
Tradesman
Tradesman
Tradesman
19
Module 1
4.1.3 Matrix organisational form
Strong and weak matrix organisation
Matrix organisation structure – example of structure
General
Manager
Project
Manager
(1)
Mechanical
Manager
Two Bosses
Two Bosses
Two Bosses
Two Bosses
Functional Lines
Project Lines of Responsibility
Project
Manager
(2)
4.2
Structural
Manager
Supervisor
Supervisor
Tradesman
Tradesman
Of Responsibility
Civil
Manager
Purely project organisational structure
Slide #75-77
Pure project structure – example of structure
Project
Manager
Civil
Manager
Civil
Foreman
Civil
Supervisor
Structural
Manager
Structural
Foreman
Structural
Supervisor
Advantages of using a purely project organisational structure
Disadvantages of using a purely project organisational structure:
20
Fundamentals of project management
4.3
Slide #78-79
Prepare an organisational structure in a
written format
Activity 4
Purely project organisation structure:
From the information given above, draw the organisation structure for
the purely project organisation.
Project
Manager
Team
member
Team
member
Team
member
Contractor
Subcontractor
4.4
Slide #80-83
Roles attached to a project
4.4.1 Interpersonal roles
4.4.2 Informational roles
4.4.3 Decision-making roles
4.4.4 Human resources management roles
4.5
Slide #84
Prepare a written document that describes
at least two of the purposes, roles and
responsibilities within a project
This point of discussion will be replaced with an activity, where the
learner can focus on two roles which are important in a project:
21
Module 1
Activity 5
Roles of importance in a project:
a.
Divide learners into groups with 3 – 5 members per group.
The project manager is the leader of the project – must be a honest,
capable and dependable type of person – to lead the project to
success with the help of his/her team
The project manager should be able to:
• deal with people from various backgrounds, different
departments and varying levels of education to create team
unity, a requirement for project success
• solve team disputes and conflict
• focus and motivate team members to achieve milestones
• build positive relationships with project stakeholders and any
other role player
b.
From the previous discussion, learners (in their groups) have to
describe and discuss the interpersonal role and information
role of the project manager in a project.
The task of the project manager is to provide the team with any bit
of information relating to the project that they may require and
keep them up to date on project progress.
The projects manager’s informational role also includes:
• Arranging and leading of team meetings
• Creating work schedules for the team
• Communicating the project vision to parent organisation and
other stakeholders
• Providing feedback – deliverables achieved; project results and
quality
4.6
Project stakeholder
4.7
Different stakeholders involved with a project
Slide #85
Slide #86-94
The key stakeholders on every project include:
•
Project manager;
•
Project team members;
•
Owner (parent) or performing organisation;
•
Customer; and
•
Sponsor
Other stakeholders who will also play a part are:
•
Contractors and sub-contractors;
•
The public; and
•
Partner or joint venture
22
Fundamentals of project management
Stakeholder
Role in/or Contribution to Project
Project Manager
Leads and manage the project; plans, monitors, tracks, controls, documents, and
reports project activities.
Owner or Parent
Organisation
The enterprise whose employees are most directly involved in doing the work of the
project; the organisation originating the project.
Sponsor (may be a
customer representative or
functional manager)
Funding institution / the individual or group within or external to the performing
organisation that provides the financial resources for the project.
Provides authority for project to proceed; guides and monitors the project in
partnership with the project manager; key organisational advocate for the project.
Typically, the sponsor will approve the project charter.
Core Project Team
(Team Members)
Provides skills, expertise, and effort to perform the task defined for the project; assists
with planning and estimating project tasks; directly involved in completing the work
of the project.
Customer / Consumer
(may be internal or
external)
The individual or organisation that will use the product created by the project.
Establishes the requirements for the project; provides funding; reviews the project as
milestones and deliverables are met. Ultimately accepts the finished product.
Functional Managers
Establish company policy; provide people; some will provide review and approval
authority
The Public
Sometimes considered a stakeholder because they might be affected by the outcome of
the project e.g. local community, government, unions or media, etc.
Partner
In joint venture
Contractors and
Sub-Contractors
External skills required and added to the project for the completion of or to complete
(do) a specific activity/task
Activity 6
Stakeholders
In your group and with the help of your facilitator, complete the table
(overleaf) on the stakeholders involved in the 2010 Fifa World Cup
Soccer tournament here in South Africa.
Write down the nine stakeholders and then link a name of an
individual, or group or organisation to the respective stakeholders.
23
Module 1
Stakeholders of 2010 World Cup Soccer Tournament
Stakeholder
Name of person, group or organisation
1. Parent organisation
Fifa
2. Project Manager
Danny Jordaan (Chairperson of the SA Soccer Bid Committee)
3. Core Project Team
The 2010 World Cup Soccer Committee; PSL; Committees
representing the nine provincial governments
4. Sponsors
South African Government; Telkom
5. Functional Manager
Financial expertise (Price Waterhouse Coopors -PWC);
Marketing team
6. Customer / Client
FIFA; PSL
7. Partner
Provincial governments and municipalities
8. Public
Members of the public
9. Contractors and sub-contractors
Murray and Roberts; Group Five
Practical 2:
The second part of our project practical will focus on the stakeholders
involved in a project.
The previous pages discuss the nine stakeholders, therefore we will
now add names to our project:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Joe da Silva (an auditor) will be the owner of the house;
Bought the plot from JK Trust
Plot to be registered at Deeds Office;
Bond is registered with FNB-bank;
The attorney is Miller & Black Associates, who will advise Joe
legally during the project;
Building plans drawn up by the architect, John Nculu & Partners
and approved by the City of Cape Town;
As an auditor Joe is not familiar with building work and therefore
he decided to appoint Jose Levin as Project Manager. Jose
appointed John Masego and Paul Fox as team members to help
him with the management of the project;
JKF-Builders was appointed as contractor and builder and they in
turn sub-contract work to:
Northern Electrical;
HW-Plumbers;
Painters for Africa;
Cape Landscape;
Rand Paving;
Wall & All for building the security wall and electrical fence
Joe will do the administration work and make the payments
electronically.
24
Fundamentals of project management
Additional information:
•
Joe has decided that if he needs more money for his project, he
will form a partnership with his good friend Nigel Mansell;
•
There was an objection lodged against the project by the residents
in the neighbourhood – according to them, Joe did not have
approval to build a double storey house.
Task:
Use the template (below) or draw your own template and complete it
by writing down the nine stakeholders (as discussed) in a project and
next to the stakeholders the name according to our project, Building a
House.
Note: Not all the stakeholders are always involved in a project or there
could be more than one person who forms part of a specific stakeholder,
therefore, complete the template according to the given information.
Template: Stakeholders
Stakeholders
Name(s) according to Project
1. Parent organisation
Joe da Silva
2. Project Manager
Jose Levin
3. John Team
John Masego and Paul Fox
4. Functional Manager
Millar & Black Associates
John Nculu & Partners – architect
5. Sponsors
FNB – bond is registered
6. Partner
Nigel Mansell
7. Customer / Client
Joe da Silva
8. Contractors / Sub-Contractors
Contractor: JFK-Builders
Sub-contractors:
•
Northern electrical
•
HW Plumbers
•
Painters for Africa
•
Cape Landscape
•
Rand Paving
•
Wall & All
9. Public
Residents of the neighbourhood
25
Module 1
5.
Slide #95
The major processes and activities
required to manage a project
After completing this outcome, students will be able to:
•
Identify the processes and activities in a project;
•
Describe all the key processes and activities that take place from the
beginning of the project to the end of a project;
•
Identify the supplementary management sub-processes and
activities required to support the key processes and activities;
•
Discuss and explain the supplementary management sub-processes
and activities required to support the key processes and activities;
•
Define the concepts of planning and control;
•
Explain the reasons for planning and control a project;
•
Describe, with the aid of an example, and the use of planning
templates, the consequences of not planning and controlling the
project.
5.1
Slide #96-101
Project phases and the project life cycle
5.1.1 Characteristics of project phases
The conclusion of a project phase is generally marked by a review of both
key deliverables and project performance to date, too:
a.
Determine if the project should continue into its next phase; and
b.
Detect and correct errors cost effectively.
These phase-end reviews are often called phase exits, stage gates or kill
points.
5.1.2 Project life cycle generally defines
•
•
What technical work should be done in each phase;
Who should be involved in each phase.
5.1.3 Project life cycles
From the beginning of a need or idea to the successful implementation of
a program or solution, a project goes through four phases:
a.
Development;
b.
Idea generation and selection;
c.
Implementation;
d.
Review.
26
Fundamentals of project management
Project life cycle
Accumulative
Effort
Total Project Life Cycle
TIME
Plan
Accomplish
Phase 1
CONCEPT
Conceive (C)
Phase 2
DEVELOPMENT
Develop (D)
Phase 3
IMPLEMENTATION
Execute (E)
• Gather data
• Identify need
• Establish:
– goals, objectives
– basic economics,
feasibility
– stakeholders
– risk level
– strategy
– potential team
• Guestimate
resources
• Identify resources
• Present proposal
• Obtain approval
for next phase
• Appoint key team
members
• Conduct studies
• Develop scope
baseline:
– end product(s)
– quality standards
– resources
– activities
• Establish:
– master plan
– budget, cash flow
– WBS
– policies and
procedures
• Assess risks
• Confirm
justification
• Present project
brief
• Obtain approval to
proceed
• Set up:
– organisation
– communications
• Motivate team
• Detail technical
requirements
• Establish:
– work packages
– detailed schedule
– information
systems
• Procure goods and
services
• Execute work
packages
• Direct/Monitor/
Forecast/Control:
– scope
– quality
– time
– cost
• Resolve problems
Phase 4
TERMINATION
Finish (F)
• Finalise product(s)
• Review and accept
• Transfer product
responsibility
• Evaluate project
• Document results
• Release/redirect
resources
• Reassign project
team
Project life cycle stages in the construction industry
Stage 1:
Stage 2:
Stage 3:
Stage 4:
Feasibility
Planning and design
Construction
Turnover and start-up
27
Module 1
Practical 3
The third part of our practical is to:
•
•
Individually, draw a project life cycle for our project;
Divide in groups and fill in the necessary information under the
four phases of the project life cycle to indicate what happens in
each phase of the project.
When the groups work on the life cycle of our project, Building a house,
they may refer back to the information on pages 28-30 and 43-44.
Initiation stage
Planning stage
Execution /
Construction stage
Close out stage
Idea of building a
house (Joe)
Buy a plot and
register a bond (Joe)
Project completed
Think of an available
plot – area where Joe
can buy a plot
Register the plot at
the deeds office
Project mana-ger
(Jose Levin) and team
(John Masego & Paul
Fox) oversee the
construction stage
Draw up building
plan – architect
JFK – builders start
building
Plan approved by
municipality
Electrical work
Do a pre-budget of
what it will cost (in
his mind)
Note: At this stage
little or no info/facts
are available to Joe
Start thinking of who
should do the building
– as an auditor Joe
has no experience of
building work
28
Project quality test
completed
Documentation
finalised for payment
Payment of contractor
Plumbing work
Decide to appoint a
project manager
(on contract –
therefore an attorney
was appointed for
legal assistance)
Project manager
appoint team and
decide on contractor
and sub-contractors
(contracts)
Pant work
Paving work
Security wall and
electrical fence
Landscaping
Building inspections
Receive final report
on project
Hand-over of project
to project owner (Joe
da Silva)
Fundamentals of project management
5.2
Slide #102-113
Project processes
5.2.1 Process groups
•
•
•
•
•
Initiating processes
Planning processes
Executing processes
Controlling processes
Closing processes
5.2.2 Process interactions
a.
b.
c.
d.
e.
Initiating processes
Planning processes
Core processes
• Scope planning
• Scope definition
• Activity definition
• Activity sequencing
• Activity duration estimating
• Schedule development
• Risk management planning
• Resource planning
• Cost estimating
• Cost budgeting
• Project plan development
Facilitating processes
• Quality planning
• Organisational planning
• Staff acquisition
• Communications planning
• Risk identification
• Qualitative risk analysis
• Quantitative risk analysis
• Risk response planning
• Procurement planning
• Solicitation planning
Executing processes
• Project plan execution
• Quality assurance
• Team development
• Information distribution
• Solicitation
• Source selection
• Contract administration
29
Module 1
f.
g.
Controlling processes
• Integrated change control
• Scope verification
• Scope change control
• Schedule control
• Cost control
• Quality control
• Performance reporting
• Risk monitoring and control
Closing processes
• Contract closeout
• Administrative closure
5.2.3 Integration of processes and sub-processes with
project phases
The phases of the project:
1.
Project definition/initiation or idea generating
phase
•
•
•
•
•
•
•
Initiate the project;
Identify project manager;
Identify initial project concept;
Develop project charter;
Conduct feasibility study;
Define planning phase;
Schedule and budget.
–
Deliver project charter memorandum to
decision authority.
2. Project planning phase
•
•
•
•
•
•
•
Organise and staff project;
Develop project plan;
Finalise scope definition;
Project objectives;
Project requirements;
Develop work breakdown structure;
Match project work activities and performing
organisation;
Project scheduling and cost estimating;
Develop budget/funding profile;
Determine schedule start date;
Set project milestones;
Establish measurement baselines for schedule
and cost performance;
Risk plan;
Project change control plan;
Procurement plan;
Monitoring and reporting plan.
•
•
•
•
•
•
•
•
•
–
3. Project execution phase
•
•
•
•
•
Execute project plan;
Manage project plan;
Activate project control;
Maintain project plan;
Implement project results.
4. Project close-out phase
•
•
•
•
Document project lessons learned;
Provide performance feedback;
Close-out contracts;
Complete administrative close-out.
–
–
30
Develop project completion memorandum to
decision authority.
Deliver project plan memorandum to decision
authority.
Deliver project completion report to decision
authority.
Fundamentals of project management
5.3
Planning and control
Project control cycle
Baseline plan
Practical 4
Now that the stakeholders of our project is known to you, you can now
complete the fourth part of our practical:
•
Draw the project organisation structure (with names added to it)
for our project.
Project/owner
organisation
(Joe da Silva)
Project manager
(Jose Levin)
Architect
(John Nculu &
Partners)
Architect
(Miller & Black
Associates)
Team member
(John Masego)
Team member
(Paul Fox)
Contractor
(JFK-Builders)
Electrician
(Northern
Electrical)
Plumbing
(HW-Plumbers)
Painters
(Painters of
Africa)
Paving work
(Rand Paving)
Landscaping
(Cape
Landscape)
Security Walls &
Electrical Fence
(Wall & All)
31
Module 1
Activity 7
Review on WBS and stakeholders
•
•
Divide into groups.
In your group decide on any project (make sure that you’ve got
enough knowledge about the “potential” project), then draw
the WBS of the project, decide on stakeholders and complete a
stakeholder list.
Because the groups are doing their own projects, note the following:
• Help and assist them to select a simple project that they are familiar
with (know something about)
• Learners may review pages 22 – 30 to help them with the WBS
• The diagram on page 39 and practical 2 on stakeholders (page 40)
• Be patient and help them to break the project into deliverables and
activities
32