TABLEOFCONTENTS

SECTIONONE:PRINCIPLESOFPROJECTMANAGEMENT
1.0

OBJECTIVE.............................................................................................................................................

2.0

DEFINITIONS.........................................................................................................................................
2.1
Project
2.2
Programme
2.3
ProjectManagement

3.0

PROJECTMANAGEMENT....................................................................................................................
3.1
General
3.2
ProjectEnvironment
3.3
ProjectLifecycle
3.4
ProjectPhases

4.0

PROJECTORGANISATIONS................................................................................................................
4.1
General
4.2
ProjectsWithinExistingOrganisations
4.3
TheProjectOrganisation

5.0

PROJECTSUCCESS.............................................................................................................................
4.1
General
4.2
ProjectSuccessCriteria
4.3
CriticalSuccessFactors
4.3
CriticalProjectManagementIssues

6.0

PROJECTPLANNING..........................................................................................................................
6.1
General
6.2
ProjectObjectives,PQPSignOff,ProjectCharter
6.3
TheProjectPlan
6.4
DefinitionofControlProcedures

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SECTIONONE
PRINCIPLESOFPROJECTMANAGEMENT

1.0

OBJECTIVE.0 OBJECTIVE

Theobjectiveofthispresentationisto:
Provideanintroductiontotheprojectmanagementcontext,namelyfundamentaldefinitions,basic
projectmanagementfunctions,theprojectenvironment,projectlifecycles,andprojectphases;
Review the types and influences of alternate organisation structures, with respect to both the
organisationswithinwhichprojectsareundertaken,andtheprojectteamorganisation;
Reviewtheissuesfundamentaltosuccessfulprojectoutcomes;

Reviewthecomponentsofeffectiveprojectplanning;and
Reviewtheessentialelementsofprojectcontrol.

Thisoverviewwillshowhowthespecificplanningandcontroltechniquesintroducedduringthebalance
ofthecourseareincorporatedintotheprojectmanagementfunction.
Theseconceptsareapplicabletothemanagementofprojectsofanytype.Whilespecificindustries,and
typesofproject,willinmanyinstancesrequirespecialistunderstandingofthatsituationinorderto
effectivelyplanandcontroltheproject,theprinciplesoutlinedduringthiscoursewillgenerallyapplyin
everyinstance.
The definitions and techniques presented are generally accepted within the project management
discipline,thatistheirapplicationiswidespread,andthereisconsensusabouttheirvalue.

PRINCIPLES OF PROJECT MANAGEMENT

2.0

DEFINITIONS.0

2.1

Project.1

DEFINITIONS

Project

Performanceofworkbyorganisationsmaybesaidtoinvolveeitheroperationsorprojects,thoughthere
mayexistsomeoverlap.Operationsandprojectsshareanumberofcharacteristics:
theyareplanned,executed,andcontrolled;

theyconstrainedbyresourcelimitations;
theyareperformedbypeople.

Thedistinguishingfeaturesofprojectsareembodiedinthefollowingdefinition:
PROJECTSARETEMPORARYENDEAVOURSUNDERTAKENTO
CREATEAUNIQUEPRODUCTORSERVICE
OPERATIONAL
ACTIVITY

PROJECT
ACTIVITY

Planned

yes

yes

Executed

yes

yes

Controlled

yes

yes

ResourcesConsumed

yes

yes

Organisation

permanent

temporary

Output

nonunique

unique

FIGUREIOPERATIONALvsPROJECTACTIVITIES

Theprimaryobjectivesofaprojectwillgenerallybespecificallydefinedbyreferencetofunction,time,
andcost.
Ineverycasethereisriskattachedtotheachievementofthespecifiedprojectobjectives.

2.2

Programme.2

Programme

Aprogrammeisagroupingofindividualinterdependentprojectswhicharemanagedinanintegrated
mannertoachievebenefitsnotarisingfrommanagingeachprojectseparately.

2.3

ProjectManagement.3

ProjectManagement

Projectmanagementisthe applicationof specificknowledge, skills,tools, andtechniquestoplan,

organise, initiate, and control the implementation of the project, in order to achieve the desired
outcome(s)safely.
NOTE:ProjectManagementisalsousedasatermtodescribeanorganisationalapproach,
otherwiseknownasManagementbyProjects,thattreatselementsofongoingoperationsas
projects,andappliesprojectmanagementtechniquestotheseelements.

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3.0

PROJECTMANAGEMENT.0

3.1

General.1

PROJECTMANAGEMENT

General

Successfulprojectmanagementrequiresthatplanningandcontrolforeachprojectisproperlyintegrated.
Planningfortheprojectwillincludethesettingoffunctionalobjectives,costbudgets,andschedules.
Controlmeanseffectivemonitoring,andinitiatingcorrectiveactionasrequired.
Aprojectorganisationappropriatetothetaskmustbedeveloped,andthedutiesandresponsibilitiesofthe
individualsandgroupswithintheorganisationclearlydefined.Lackofcleardefinitionofstructureand
responsibilityleadstoproblemsofauthority,communication,coordinationandmanagement.
Theprojectmanagementproceduresputinplacefortheprojectmustensurethatmonitoringisfocusedon
thekeyfactors,isbothtimelyandaccurate, andthateffective control systemsare established and
properlyappliedbytheprojectteam.
Projectmanagementinvolvesfivebasicprocesses:
Initiating

Undertakingnecessaryactionstocommencetheprojectorphase.

Planning

Identifyingobjectivesanddevisingeffectivemeanstoachievethem.

Executing

Coordinatingtherequiredresourcestoimplementtheplan.

Controlling

Includesmonitoringandcorrecting.

Closing

Formalisingtheacceptanceoftheproject orphasedeliverables,andendingitina
controlledmanner.

Withineachoftheseprocesses,thereareanumberofsubprocessinteractionslinkedbytheirinputsand
outputs.Eachsubprocessinvolvestheapplicationofskillsandtechniquestoconvertinputstooutputs.
Anexampleofthisisthepreparationofaprojectnetwork[output]bytheapplicationofprecedence
method[technique]totheidentifiedprojectactivities[input].
Indefiningtheknowledgebaseforprojectmanagementitisusefultorefertothestructuresadoptedby
therankingprofessionalbodies[ProjectManagementInstitutePMIUSA,andAssociationForProject
ManagmentAPMUK].ThesearereproducedinFigureII.
3.2

ProjectEnvironment.2

ProjectEnvironment

Theprojectenvironmentisthecontextwithinwhichtheprojectisconceived,plannedandimplemented.
The project management team must appreciate the potential of these issues to impact on project
implementationandoutcomes,andtotakesuchimpactsintoaccountinplanningandexecution.
Therelevantenvironmentalfactorstypicallyinclude:

social
cultural
political
economic
financial
legal
technological
contractual

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Eachfactor,whichwillbecharacterisedbyissues,standards,andtrends,isderivedfromsocial,industry
andorganisationalinfluences.
PROJECTINTEGRATIONMANAGEMENT

ProjectPlandevelopment

ProjectPlanExecution

OverallChangeControl
PROJECTSCOPEMANAGEMENT

Initiation

ScopePlanning

ScopeDefinition

ScopeVerification

ScopeChangeControl
PROJECTTIMEMANAGEMENT

ActivityDefinition

ActivitySequencing

ActivityDurationEstimating

ScheduleDevelopment

ScheduleControl

ORGANISATION&PEOPLE

OrganisationDesign

Control&Cooperation

Communication

Leadership

Delegation

TeamBuilding

ConflictManagement

Negotiation

ManagementDevelopment

PROJECTCOSTMANAGEMENT

ResourcePlanning

CostEstimating

CostBudgeting

CostControl
PROJECTQUALITYMANAGEMENT

QualityPlanning

QualityAssurance

QualityControl
PROJECTHUMANRESOURCEMANAGEMENT

OrganisationalPlanning

StaffAcquisition

TeamDevelopment
PROJECTCOMMUNICATIONSMANAGEMENT

CommunicationsPlanning

InformationDistribution

PerformanceReporting

AdministrationClosure
PROJECTRISKMANAGEMENT

RiskIdentification

RiskQuantification

RiskResponseDevelopment

RiskResponseControl
PROJECTPROCUREMENTMANAGEMENT

ProcurementPlanning

SolicitationPlanning

Solicitation

SourceSelection

ContractAdministration

ContractCloseout

IIA PMIPMBOK
FIGUREII

3.3

PROJECTMANAGEMENT

SystemsManagement

ProgrammeManagement

ProjectManagement

ProjectLifecycle

ProjectEnvironment

ProjectStrategy

ProjectAppraisal

ProjectSuccess/FailCriteria

Integration

Systems&Procedures

CloseOut

PostProjectAppraisal

TECHNIQUES&PROCEDURES

WorkDefinitions

Planning

Scheduling

Estimating

CostControl

PerformanceMeasurement

RiskManagement

ValueManagement

ChangeControl

Mobilisation
GENERALMANAGEMENT

Operational/TechnicalManagement

Marketing&Sales

Finance

InformationTechnology

Law

Procurement

Quality

Safety

Industrial

IIB APMPMBOK

PROJECTMANAGEMENTBODYOFKNOWLEDGE

ProjectLifecycle.3

ProjectLifecycle

Projectsproceedthroughasequenceofphasesfromconcepttocompletion. Collectively,theseparate
phasescomprisetheprojectlifecycle.Manyprojectlifecyclesaresimilar,butfewareidentical.Most
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projectcomprisefourorfivephases,butinsomecasesprojectswillincludedoublethatnumber.Figures
III&IVillustrategenericprojectphases.

Prefeasibility
Feasibility
Planning
Implementation
Handover
CloseOut
FIGUREIII

PROJECTLIFECYCLECAPITALWORKSPROJECT

NeedsDetermination
ConceptExploration&Definition
Demonstration&Validation
Engineering&ManufacturingDevelopment
Production&Deployment
Operations&Support

FIGUREIV

PROJECTLIFECYCLEDEFENCEACQUISITIONPROJECT

Differentindustriesgenerallyhavespecificstandarddefinitionsforeachphase,butagenericdescription
ofeachphaseidentifiedinFigureIIIforaconstructionprojectis:
Prefeasibility

Identificationofneeds,andpreliminaryvalidationofconceptoptions.

Feasibility

Detailed investigation of feasibility, including preliminary brief, project

estimateandinvestmentanalysis.

Planning

Detaileddefinitionoftheprojectwithrespecttoscope,organisation,budget,
andschedule,togetherwithdefinitionofallcontrolprocedures.

Implementation

Theexecution ofthescoped project. Thecomponentsofthisphasewill

dependuponthenatureoftheproject.

Handover

Passingthefacilityintocontroloftheprincipal.

CloseOut

Archiving of the project records, and disestablishment of the project

organisation.

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3.4

ProjectPhases.4 ProjectPhases
Projectphasessharedefinedcharacteristics.
Ineveryinstanceprojectmanagementprocessesundertakenwithinspecificphasescompriseinitiating,
planning,executing,controlling,andclosing.
Aprojectphasewillhaveoneormoretangibledeliverables.Typicaldeliverablesincludeworkproducts
suchasfeasibilitystudy,softwarefunctionalspecification,productdesign,completedstructure,etc.
Outputsfromaphasearetypicallytheinputstothesucceedingphase.
Normally,deliverablesfromanyphaserequireformalapprovalbeforethesucceedingphasecommences.
Thispolicymaynotbefollowedwhere perceivedbenefitsjustifydepartingfromit,and/orperceived
risksarelow.

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4.0

PROJECTORGANISATIONS.0 PROJECTORGANISATIONS

4.1

General.1

General

Where projects are set up within an existing organisation, the structure and culture of the parent
organisationhasgreatinfluenceontheproject. Wheretheprojectistheorganisation,thesponsoring
organisationsmayexertsignificantinfluence.Theinfluencefactorsofthelargerorganisations,andthe
consequentialimpactsontheprojectshouldbeunderstood.

4.2

ProjectsWithinExistingOrganisations.2 ProjectsWithinExistingOrganisations
Organisationalstructureshavetraditionallybeendefinedwithinthespectrumfromfullyfunctionalto
fullyprojectoriented.Betweenthoseextremesliearangeofmatrixstructures.
The classic functional structure is a hierarchy, with staff grouped within specialist functions (eg
mechanicalengineering,accounting),andeachmemberofstaffreportingdirectlytoonesuperior.Such
organisationshaveprojects,butwithinadivisionthescopeoftheprojectisconsideredonlyasitexists
withintheboundaryofthatdivision.Projectissuesandconflictsareresolvedbythefunctionalheads.
Withinaprojectmanagementorganisationstaffaregroupedbyproject, andeachgroupheadedbya
projectmanagerwhooperateswithahighlevelofauthorityandindependence.Wheredepartmentsco
existwiththeprojectgroups,thesegenerallyprovidesupportservicestotheprojectgroups.
Matrixorganisationsmaylieanywherebetweentheabove.Characteristicsofmatrixorganisationsmay
besummarisedasfollows:

Weakmatrixorganisationsarethosecloselyalignedtoafunctionalorganisation,butwithprojectsset
upacrossthefunctionalboundariesundertheauspicesofaprojectcoordinator. Theprojectco
ordinatordoesnothavetheauthoritythatwouldbevestedinaprojectmanager.
Astrongmatrixorganisationwouldtypicallyhaveaprojectgroupasoneofthedivisions.Project
managers from within this group, often with necessary support staff, manage projects where
specialist input is provided from the various functional groups. The project managers have
considerableauthority,andthefunctionalmanagersaremoreconcernedwiththetechnicalstandards
achievedwithintheirdivision.
Abalancedmatrixexistswhenprojectmanagementisexercisedby personnel withinfunctional
divisions who have been given the appropriate authority necessary to manage specific projects
effectively.

In many cases an organisation may involve a mix of these structures at different levels withinthe
hierarchy.Forexample,afunctionalorganisationwillcommonlysetupaspecificprojectteamwitha
properlyauthorisedprojectmanagertohandleacriticalproject.
Thedifferentorganisationalstructures,andthecorrespondingprojectorganisationoptions,areidentified
inFigureV.
TheinfluenceoftheorganisationstructureonvariousprojectparametersisillustratedinFigureVI.

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PRINCIPLES OF PROJECT MANAGEMENT

CEO

CEO

Functional
Manager

Functional
Manager

Functional
Manager

Project
Manager

Project
Manager

Project
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

A: Functional Organisation

B: Project Organisation

CEO

CEO

Functional
Manager

Functional
Manager

Functional
Manager

Functional
Manager

Functional
Manager

Functional
Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Prj Co-ord'r

Staff

Staff

P Mgr

Staff

Staff

Staff

Staff

Staff

Staff

C: Weak Matrix Organisation

D: Balanced Matrix Organisation

CEO

KEY

Functional
Manager

Functional
Manager

Functional
Manager

Proj Mgt
Manager

Staff

Staff

Staff

Proj Mgr

Staff

Staff

Staff

Proj Mgr

Staff

Staff

Staff

Proj Mgr

Project

Span of Project
Staff
Personnel assigned to Project

E: Strong Matrix Organisation

FIGUREV

PROJECTSWITHINPARENTORGANISATIONS

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PRINCIPLES OF PROJECT MANAGEMENT

ORGANISATION
TYPE

FUNCTIONAL

WEAK
MATRIX

BALANCED
MATRIX

STRONG
MATRIX

PROJECT

PMGR
AUTHORITY

LITTLEOR
NONE

LIMITED

LOWTO
MODERATE

MODERATE
TOHIGH

HIGHTO
TOTAL

%PERSONNEL
ASSIGNED100%
ONPROJECT

MINIMAL

025%

1560%

5095%

85100&

PMGR
ROLE

PARTTIME

PARTTIME

FULLTIME

FULLTIME

FULLTIME

PMGR
TITLE

COORDINATOR
/LEADER

COORDINATOR
/LEADER

PROJECT
MANAGER

PROJECT
MANAGER

PROJECT
MANAGER

PMGR
SUPPORTSTAFF

PARTTIME

PARTTIME

PARTTIME

PARTTIME

PARTTIME

FIGUREVI

4.3

INFLUENCESOFORGANISATION

TheProjectOrganisation.3

TheProjectOrganisation

Organisationoftheprojectteamischaracterisedby:

ThePrincipal,orProjectSponsor.

TheProjectControlGroup[PCG].Thefunctionofthisgroupistoexerciseapprovalsrequired
bytheprojectmanagerfromtimetotime,controltheissueoffundingtotheprojectmanager,
andmaintainanoverviewoftheproject.

A Project Controls position/group, if this function [ie time, quality & cost control] is not
undertakenbytheprojectmanager.

Thebalanceoftheprojectteam,whichwillvaryincompositionasafunctionoftheprojecttype,
andspecificprojectvariables.

Theproject organisationmaybevertical orhorizontalinnature,dependingonthespanof

controlchosenbytheprojectmanager.

TypicalprojectstructuresforacapitalworksprojectareillustratedinFigureVII.

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5.0

PROJECTSUCCESS.0 PROJECTSUCCESS

5.1

General.1

General

Manyprojectsdoqualifyassuccesses:weallhaveexperience,anecdotalorotherwise,ofprojectsthat
havegoneseverelywrong.Projectfailuresexistwithinallindustries.Astudyofsome90dataprocessing
projects,undertakenin1992andcoveringprojectswhichhadbeencompletedintheprevious12years,
providesaprofileofcommonexperience.Thestudyanalysedtheprimaryissuesaffectingtheproject
outcomes.ThesefactorsaresetoutintheTableI,listedbyfrequencyandseverity[rankedindescending
order of impact] in respect of the negative impact on project success. This analysis provides an
instructivebasisforanyorganisationoperating,orsettingup,aprojectmanagementmethodology.Note
thatthreeofthefirstfourissuesareprojectmanagementissues.
TABLEI:PROJECTPROBLEMISSUES

Factor
PlanningMonitoring
Staffing
ScopeManagement
QualityManagement
Communications
Technical
Management
UserInvolvement
ImplementationIssues
Operations
Organisation
Estimating

Frequency

Severity

71%
58%
48%
44%
42%
36%
32%
30%
28%
24%
24%
19%

1
2
3
4
5
7
8
6
9
11
10
>12

[Reference:OConnor&Reinsborough,IntlJournalofProjectManagementVol10May1992].

Theconsequencesofsuchfailurescanbesignificanttothesponsoringorganisations,andtotheproject
personnel.

5.2

ProjectSuccessCriteria.2ProjectSuccessCriteria
The objectives of cost, quality, and time are frequently identified as the definitive parameters of
successfulprojects.Theseareaveryusefulmeasureinmanycapitalworksprojects,wheretheycanbe
defined in advance, adopted as interim project performance indicators during the course of project
implementation, provide a basisfor evaluating tradeoff decisions, and can be applied with relative
simplicity.
Howeverthisapproachtomeasuringprojectsuccessisnecessarilyonlyapartialassessmentinmany
situations.Projectscompletedwithinthetargetsforeachconstraintmaybesuccessfullycompletedfrom
theperspectiveoftheprojectimplementationteam,butarenotnecessarilyassuccessfulfromalternative
viewpointssuchasthesponsorsortheusers.Insomeinstancesprojectsthatarenotcompletedwithin
oneorotherofthetime/costobjectivesmayproperlybeconsideredasuccess.
Soanimportantpreliminaryactivityisfortheprojectstakeholderstoidentify,andrank,projectsuccess
criteria.Theclientspreferencesareobviouslyparamountinthisprocess.
The process provides surprising insights in some instances, which enhances project planning. More
importantlytheprojectsuccesscriteriaprovideameaningfulbasisfor:
establishingprojectperformanceindicatorstobeincorporatedwithinprojectprogressreports;and

makingtradeoffsshouldthisbecomenecessary.

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5.3

CriticalSuccessFactors.3CriticalSuccessFactors
Theresultsofastudyofthecriticalsuccessfactorsinprojects,publishedintheJune1996issueofthe
InternationalJournalofProjectManagement,proposesaframeworkfordeterminingcriticalsuccess
factorsinprojects.Thisstudyclassifiedcriticalsuccessfactorsapplicableoverallprojecttypeswithin
thefollowingfourinterrelatedgroups:

factorsrelatingtothespecificproject
factorsrelatedtotheprojectmanagerandteam
factorsrelatedtothecustomerorganisation
factorsrelatedtotheexternalenvironment.

Examplesoffactorsineachcategoryinclude:

projectspecific:size,complexity,technology,numberofinterfaces
projectmanagement:expertise,systems,personality,resources
customer:commitment,responsetimes,knowledge
environment:political,financialetcasabove.

This is in practice a particularly useful framework within which critical success factors can be
identified,andwherenecessary,managedproactivelyinordertomaximisetheprobabilityofproject
success.
AsurveywasconductedamongstmembersoftheProjectManagementInstitute,seekingtocorrelate
projectsuccesscriteria[specifiedastime,cost,quality,clientsatisfaction,andother]againstfactorsas
grouped above.Projectsincludedinthesurveycoveredconstruction,informationservices,utilities,
environmental and manufacturing. The study concluded that the critical project success factors
primarilyarosefromthefactorsrelatedtotheprojectmanagementandprojectteam.Foreachindustry
theprojectmanagersperformanceandthetechnicalskillsoftheprojectteamwerefoundtobecritical
toprojectoutcomes.Thisconfirmstheconclusionsfromthe1992studynotedabove.
So a second important preliminary activity is for the project stakeholders to identify, within this
frameworkoffourelements,thespecificcriticalsuccessfactorswhichmayimpactontheproject.Itis
thenthereponsibilityoftheprojectteamtodevelopstrategiestoavoidorovercomethesefactors,
eitherintheplanningorintheimplementationphase.
5.4

CriticalProjectManagementIssues.4

CriticalProjectManagementIssues

Theskills,knowledge,andpersonalattributesoftheselectedprojectmanagerhaveacriticalimpacton
the success of the project. The critical skills are wider than technical and project management
parametersakeyelementinthesuccessoftheprojectmanageristheeffectiveapplicationofnon
technicalskills,includingleadership,teambuilding,motivation,communication,conflictmanagement,
personneldevelopmentandnegotiation.
It is essential that the project manager, once appointed, has full control of the project within the
limitationsdefinedbytheprincipalorprojectsponsor.Allpartiesmustbemadeawareofthissingle
pointofauthority.
The appointment ofthe project manager maybemade sufficiently early intheproject toinclude
managementofthefeasibilitystudies.Theprojectmanagershouldbeappointedinordertoundertake
the project definition. If the project manager doesnot undertake theproject definitionphase the
outputs[theprojectplan,controlproceduresetc]mustbespecificallysignedoffbytheprojectmanager
whensubsequentlyappointedtothatrole.
Theauthoritydelegatedtotheprojectmanager,andhis/hereffectivenessinexercisingit,iscritical.
Projectmanagementstructures,particularlyiftheprojectisonewithinanexistingorganisationand
acrossfunctionalboundaries,createsacomplexwebofformalandinformalinteractions. Lackof
clarityindefiningtheauthorityoftheprojectmanagerinvariablyleadstodifficulties.

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6.0

PROJECTPLANNING

6.1

General
Theprojectplanningphaseiscriticaltotheeffectiveimplementationandcontroloftheproject.The
basisforprojectsuccessisestablishedduringthisphase
PROJECTSBADLYPLANNEDAREPROJECTSPLANNEDTOFAIL
Theplanningundertakenatthisstageistheresponsibilityoftheprojectmanager.Theprimaryoutput
fromthisphaseistheProjectQualityPlan[PQP].ThePQPcomprises:

StatementofProjectObjectives
PQPSignOff

TheProjectCharter
TheProjectPlan

ProjectControlProcedures

Thekeycomponentsofeachoftheseelementsareidentifiedbelow.
6.2

ProjectObjectives,PQPSignOff,ProjectCharter
ProjectObjectives
Astatementdefiningtheprojectobjectives.Thespecificprojectobjectivesmustincludequantified
cost, quality and time measures. Unquantified objectives introduce high risk to the process. The
confirmedProjectSuccessCriteriashouldbeincluded.
PQPSignOff
AformalrecordoftheagreementbyboththeProjectManagerandthePCGtothePQP.
ProjectCharter
Themanagementscommitmenttointernalprojects,andformaldelgatationofauthoritiestotheProject
manager,arerecordedhere.

6.2

TheProjectPlan.3

TheProjectPlan

TheProjectPlanisthemasterplanfortheexecutionoftheproject,andprovidestheframeworkfrom
whichtheimplementationwilldevelopinacoordinatedandcontrolledmanner.Theproject scope
definition, programme, and budget, established at this time, provide the baseline against which
performancecanbemeasured,andagainst whichapprovedchangestotheprojectbaselinecanbe
properlyevaluated.TheProjectPlancomprisesthefollowingcomponents:
ScopeDefinition

Developmentofawrittenscopestatementthatdefinesinappropriatedetail
thescopeofeveryprojectcomponent,andidentifiesallsignificantproject
deliverables.Inthiscontextscopeincludes:
featuresandfunctionsofproductsand/orservices,and
worktobeundertakentodeliveraconformingoutput.

WBS

The breakdown of the project into the separate activities that can be
consideredentitiesfortheassignmentoftasksandresponsibilities.
This output from this process is called the Work Breakdown Structure
[WBS].TheWBSisgenerallypresentedinaproductorientedhierarchical
breakdown.Successivelevelsincludeincreasinglydetaileddescriptionsof

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OBS

the project elements. The lowest level items are referred to as work
packagestheseareassignabletoindividualsororganisations.
Thedefinitionoftheprojectstructure,settingoutthepartiesandindividuals
involvedintheexecutionoftheproject,andthelinesofcommunication
andcontrolthatwillbefollowed. Thisoutputfromthisprocessiscalled
theOrganisationBreakdownStructure[OBS].

TaskAssignment

The assignment of tasks and responsibilities. All tasks and activities

previously defined become the responsibilityof specified parties. The
WBSandOBSmaybeextendedtodefineaTaskAssignmentMatrix.

ProjectSchedule

Thepreliminarymasterschedule[programme]fortheproject. Thiswill
identifythetargetmilestonesfortheproject,andtherelativephasingofthe
components.

ProjectBudget

Theprojectcostplan.
Insomecasesaprojectbudgetisestablishedduringthefeasibilitystudy
withoutthebenefitofadequatedetailoftheconceptsevaluated. Atthat
stage a maximum cost may have been established, because expenditure
above that figure would make the project uneconomic. Where such a
constraintexists,andifthefeasibilitystudyhasnotreliablyestablishedthe
costoftheproject,itwillbenecessarytofurtherdevelopthedesignbefore
committingtheproject.

Documentation

COPYRIGHT IDC Technologies 2000

AlloftheaboveprojectelementsmustbedocumentedintheProjectPlan.
ReferFigureIX.

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6.3

DefinitionofControlProcedures.3

DefinitionofControlProcedures

Theultimatesuccessoftheprojectwillrequirethatobjectivesforperformance,budgetandtimeas
definedwithintheProjectplanarefulfilled.Thiswillonlybepossibleifthenecessarymonitoringand
controlsystemsareestablishedpriortothecommencementofprojectimplementation.
MonitoringandreportingshouldincludeprojectperformanceindicatorsderivedfromtheProjectSuccess
Criteria.Planningshouldtakeintoaccountthecriticalsuccessfactors,ietheplanningshouldaddressany
potentialdifficultiesthatmayarisefromthem.
Control procedures need to be established and documented for the management of the following
parameters:
Scope:

Definitionofscopechangecontrolsystemswhich:

definecircumstancesunderwhichscopechangescanarise;

controltheprocesswhenchangesdoarise;

provideforintegratedmanagementoftheconsequencesofthechangesie
timeandcostimplications.

Quality:

Definitionofprojectspecificqualityobjectivesandstandards,togetherwithprocesses
forensuringtherequiredqualitystandardswillbeachieved.
Typicallysuchprocedureswillbedefinedtoassurequalitywithrespectto:

definitionofdesiredfunctionalrequirements

design

supply[materialsandequipment]

construction&installation

Cost:

Definitionofcontrolprocedureswhichinclude:

budgetandcommitmentapprovalsfordesign,procurementandconstruction
functions

issueandcontrolofdelegatedfinancialauthority:

toprojectmanagercontrollingconsultantsandcontractors

toconsultantscontrollingcontractors

variationcontrolforchangesarisingduringprojectimplementation

valueengineering

costmonitoring,reportingandcontrolsystemsandprocedures.

Time:

Definitionofstrategiesandproceduresforscheduling,monitoringandreporting.This
willinclude:

programmingmethodsandstrategyformasteranddetailprogrammes,thatis:

definitionofprogrammingtechniques

reviewandupdatingfrequency

progressmonitoringandreportingsystemsandprocedures.

Risk:

Definitionofobjectivesandproceduresforputtinginplaceeffectiveriskmanagement.
ThismayincludethedevelopmentofaspecificRiskManagementactivityscheduleas
partofthePQP.
Procurement:
Strategiesandproceduresfortendering,selectionandmanagement
ofconsultants,suppliersandcontractorsshouldbedefined.
Tendering
Standardised tendering procedures, tender
documentation, andtender evaluation procedures, for each ofthe
typesofcontracts[ieservice,procurement,constructionetc]should
bedevelopedanddocumented.
The tendering process is often a very sensitive
one,especiallyifpublicmoniesareinvolved.Appropriateattention
mustbepaidtotheassuringthelegalaspectsoftheprocessare

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PRINCIPLES OF PROJECT MANAGEMENT

properlyaddressed,andthattheprocessisappliedwithdemonstrable
fairness.Recentchangesinthelawapplyingtotenderingshouldbe
noted.
Consultants
Standardised
consultant engagement
documentation, including consultants' briefs and terms of
engagement,shouldbedeveloped.
Consultants briefs would typically include the
followingitems:

thescopeoftheworktobeundertaken,
andanylimitationsthereon;

thetypeofservicestobeprovidedand
thedeliverablesrequired[thiswillbedefinedwithinthe
WBSforthespecificworkpackage];

approvalsrequiredfromtheclient;

approvalstobeexercisedonbehalfofthe
client;

special requirements of a management,

technical or financial nature [for example, quality
assurance/quality control programme, variation control
procedures];

reportingrequirements;

project schedule requirements [for both

servicedeliveryandimplementationphases];

budgetsfortheproposedimplementation
deliverables/capitalitems;

basis of payment for services to be

providedbytheconsultant.

Contracts Thetermsofengagementandconditionsofcontractshould
bebasedonstandarddocumentswhere theseexist. Thelevel of
documentationshouldbeappropriatetothevaluesofcontractslet,
andtypicallyanumberofoptionsarerequired.
PMAdmin:
Procedures for the administration of the project
shouldbedefined.Theseshouldincludesuchthingsas:

COPYRIGHT IDC Technologies 2000

ProjectDocumentControl

Filing

Documentmanagement

Correspondencecontrols

Meetings

PCGReporting

AdministrativerequirementsofthePrincipal

DOC: PROJMGT-C

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