Manual for Customer Project Managers - PROPSC

8/10/2019 Manual for Customer Project Managers - PROPSC

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1PROPS Manual for Project Managers

PROPS Manual for Project Managers

CONTENTS

INTRODUCTION ....................................................................................................3

PROJECTMANAGEMENTMODEL ............................................................................. 7

PRESTUDYPHASE ............................................................................................... 11

PHASESTART-UPANDTEAMBUILDING................................................................. 17

COACHING, INTEGRATIONANDCONTROL ............................................................. 23

PROJECTANALYSIS .............................................................................................29

FEASIBILITYSTUDYPHASE .................................................................................. 37



PROJECTSPECIFICATIONANDPLANNING ..............................................................55

PROJECTRESOURCEPROCUREMENT ......................................................................69


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2 Contents

EXECUTIONPHASE .............................................................................................. 75



PROJECTVERIFICATION ....................................................................................... 97

HAND-OVEROFPROJECTOUTCOME ................................................................... 103

CONCLUSIONPHASE .......................................................................................... 107

PROJECTTERMINATION ..................................................................................... 113

HAND-OVEROFEXPERIENCE .............................................................................. 119

PROJECTCLOSURE ............................................................................................. 123


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Introduction

This guide describes theproject flow in PROPS fromthe project managersviewpoint. It is intended toserve as a guideline for projectmanagers in their work.

A graphical overview of thephases, activities anddocuments in a project isshown in the general projectmodel PROPS, depicted as aU in three different colors:

red, blue and yellow. The bluepart of the U symbolizes theproject management modeldescribed in this guide.

In the blue part of thegeneral PROPS model, theproject managers activitiesare

indicated by light blue rectangles, all with a specific name. Allthese activities are described in the guide.

One activity Project Termination in the conclusion phase isgrey, indicating that it should not be performed in allprojects, but only when the project is terminated before it has

been fully completed, that is, without having reached its goal.

The reports and steering documents connected to the projectmanager are indicated by the document symbols. Thesedocuments are described inPROPS Document Guide.


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4 Introduction

Thegreen hexagonsymbolizes theproject outcome. The expected projectoutcome should be defined for all projects. This can be a product or aservice, implementation of a customer order or an organizational

change, or a change aiming to improve the performance in theorganization. During the course of the project, the project outcomeshould be analyzed, defined, implemented andhanded over to the customer and to a receiving unitwithin the organization.

In order to emphasize the importance of a properhand-over, the project outcome in the model exits

from the U in two directions to the customer(left) and to the receiving unit (right).

The execution of a project also leads to otherresults, such as competence development and experiences,observations and suggestions for improvements. Theseexperiences should be transferred to the organization to bemade use of in future operations. To indicate this, the hand-

over of experiencesis also shown in the project model.

How to Use This Guide

In this guide, all activities in the project management model aredescribed. There is a checklist for each activity. The checklists shouldnot be used as a prescriptive set of instructions, but as a support forthe project manager and as a source of inspiration. Only activitiesconsidered relevant for the specific project should be performed.

The items in the checklists are not sequential in time. Some should beperformed in parallel, and some should be repeated several times. Thechecklists give suggestions on WHAT to do. They give few, if any,suggestions on methods and tools for HOW to perform the differentactivities. The methods and tools to be used must be decided for eachproject.

All activities in the manual are part of the project managementprocess. This process can be divided into nine different parallelsubprocesses. In the activity checklists, headings with blue framesareinserted, referring to these subprocesses. More information about theproject management processes can be found in the guide

Project Management Knowledge Areas.


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The PROPS guides provide descriptions of different key elements inproject management in a multiproject organization from fourdifferent perspectives: the business perspective, the human

perspective, the project organizational perspective and the singleproject flow perspective. More information about the perspectives can

be found in the guide

Introduction to PROPS.

Other PROPS Guides describing the Single Project Flow

The PROPS Manual for Project Managers is part of the single project

flow in PROPS. Other guides describing the single project flow inPROPS are:

PROPS Document Guide, describing the documents included in thegeneral project model.

PROPS Manual for Project Sponsors, describing the project steeringmodel the red-framed part of the general project model.

PROPS Applied, describing the project work model the yellowpart of the general project model as well as examples of differentapplications for different project types.


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6 Introduction


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Definition

The project management model is adescription of all project managementactivities and documents in all the phases ofa project. The blue part of the general projectmodel PROPS represents the projectmanagement model.

Purpose

The purpose of the project managementmodel is to ensure a business-focused andefficient project management, resulting inhigh-quality project performance andshortened project lead-time.

Project Management Model


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8 Project Management Model

The general project management model

provides a shared view on project

management and a common

terminology. This ensures well-

functioning communication within the

project organization, as well as between

the project and the organization inwhich it operates. People with different

project roles can more easily be

transferred from one project to another,

without loosing tempo adapting to a

new terminology and a new project

culture.

Project managers can use their

competence and skills for leading and

inspiring the project team, instead of

spending time on establishing project

management routines.

The project management model includes nine projectmanagement processes:

Project Management Knowledge Areas

In PROPS, the blue part of the U symbolizes the projectmanagement model and describes the project managementactivities in the project. It is divided into four largelyconsecutive phases, each of which has its own nature andcharacteristics:

Prestudy Phase

Feasibility Study Phase

Execution Phase

Conclusion Phase


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A common model for project

management promotes and encourages a

business-focused behavior in all projects

and in all phases of the individual project.

It facilitates negotiations and business

decisions, and inspires customers and

subcontractors with confidence.By using the same templates for project

management documents in all projects,

project follow-up and monitoring within

an organization will become more

efficient.

Project Management Function

The project manager is responsible for the activities in theproject management model.

The project management model describes all projectmanagement activities during the entire lifetime of theproject, from the initiation of the prestudy phase to projectclosure.

Prestudy Phase

Feasibility study phase

Execution phase

Conclusion phase

Project Organization and Roles


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10 Project Management Model

PROPS M l f P j t M


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Definition

The prestudy phase is the preparatory phasein the project model, before the project isformally started. During the prestudy phase,the business opportunity for the expected

outcome of the potential project is assessed.All the relevant commercial, technical andorganizational aspects are considered andaddressed.

Purpose

The purpose of the prestudy phase is toensure that a business idea is technically andcommercially feasible, that it will fulfill theexpressed and unexpressed requirements and

needs of the customer, and will be alignedwith the organizations business direction.

Prestudy Phase

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12 Prestudy Phase

PRESTUD

YPHASE To establish, in a formal and structured

way, the viability of a business

opportunity during a prestudy, will

create a foundation of management

confidence and commitment upon

which the project will rest.

Allowing ideas for businessopportunities to be tested and analyzed

in prestudies promotes an environment

that fosters creativity. This allows the

organization to acknowledge

entrepreneurs and support business

opportunities, and proves that

management is open and believes in the

future.

Preconditions

The precondition for starting the prestudy phase is anAssignment Specification for a prestudy.

Prestudy Phase Organization

A team consisting of experts performs the prestudy work.

If the prestudy is performed as a part of the organizationsregular operations, the three functions of the projectorganization the project steering function, the projectmanagement function and the project executing function

are perhaps not fully developed.

Complex prestudies that require comprehensive work can berun as projects on their own.

Analysis of a Business Idea

In the prestudy phase, a business idea is assessed from atechnical and commercial perspective. Stakeholders should

be identified. Their expressed and unexpressed requirementsand expectations on the potential project and its expectedoutcome should be collected and analyzed. The resources andthe competence needed for the project should be identified.

In order to decide whether or not to make these resourcesavailable for the potential project, the projects alignmentwith the organizations business direction should be

established.The prestudy also includes the preparation of a budget and atime-schedule for the feasibility study phase, as a basis forthe decision to start the feasibility study. The prestudy workshould be documented and handed over to the projectsponsor as a basis for the tollgate 1 decision.

An Active Project Steering Function

Since a number of decisions may have to be made atmanagement level also between the tollgates, an active andpresent project steering function is required during theprestudy. This includes decisions during contract



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A prestudy is an investigation of a

business idea. The vital aspect is to

understand the risks and opportunities

related to it. In order to fully benefit

from all ideas in an organization, a large

number of prestudies should be started,

out of which only a small number shouldand will result in a project.

A prestudy can be initiated to evaluate a

request for quotation from a customer

and to assess its alignment with the

organizations business direction, the cost

for submitting a tender and the business

opportunity of a potential order.

All relevant commercial, technical and

organizational aspects of the potential

project and its expected outcome should

be considered. This will ensure that the

business risk is fully understood by the

project sponsor.

negotiations with the customer and subcontractors, orstrategy decisions on whether or not to apply externalprovisioning or incremental development.

To Terminate a Prestudy

The project sponsor is responsible for making the tollgate 1decision. This responsibility includes the decision toterminate the prestudy if this turns out to be what bestserves the organization and the customer.

The decision to terminate a prestudy before or at tollgate 1

is a decision to start project conclusion. This includesdeciding how to take care of the result from the prestudywork. Experiences and observations made should bedocumented and lessons learned transferred to theorganization in order for future prestudies to be able to fullybenefit from the experiences made.

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14 Prestudy Phase

PRESTUD

YPHASE Project Steering Function

The project sponsor (or the sponsor for the prestudy) isresponsible for:

making the tollgate 0 decision, if applicable,

ensuring that the Assignment Specification for the

prestudy is prepared, and ordering the prestudy work, appointing a person to be responsible for the prestudy,

taking the financial responsibility for the prestudy,

making the tollgate 1 decision,

(If the project scope has changed because of what has comeout of the prestudy work, the tollgate 1 decision may bemade by a person different from the sponsor for the prestudyphase. This person will be the project sponsor.)

performing the other activities described for the prestudyphase in the project steering model.


The person appointed responsible for the prestudy phasemanages and controls the prestudy work. This can be the

future project manager, a person especially appointed for theassignment, or an expert in the organization with theauthority to perform such work.

The project manager (or the person responsible for theprestudy) is responsible for:

performing the activities in the prestudy phase of theproject management model.

Project Executing Function

All prestudy team members are responsible for:

taking an active part in the prestudy work.




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Managers, in their roles as resource owners, are responsiblefor:

supporting their own personnel in the prestudy work,

contributing with their competence in

assessing the coherence between the potential projects

need for resources and the resources available in theorganization,

analyzing the competence development needed in thepotential project,

supporting the project manager when he or shesuggests a strategy for the potential project,

taking an active part in estimating the workload for the

potential project.Managers, in their roles as receivers, are responsible for:

formulating the receiving units requirements on theproject and the project outcome, related to the futuremanagement of the project outcome,

evaluating the implications of the expected projectoutcome for the receiving unit.

Prestudy Phase

During the prestudy phase, the following activities in theproject management model should be performed:

Phase Start-Up and Teambuilding

Coaching, Integration and Control

Project Analysis

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PRESTUD

YPHASE



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Definition

Phase Start-Up and Teambuildingis arecurrent activity in the project managementmodel during which the current phase of theproject is planned and resources are securedand committed to the project and itsoutcome.

Purpose

The purpose of the activityPhase Start-Upand Teambuildingis to create a solidfoundation for the current phase of theproject, and to create and maintainconfidence in and commitment to the projectand its outcome.

Phase Start-Up and TeambuildingPrestudy Phase

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PRESTUD

YPHASE Spending time on the activityPhase

Start-Up and Teambuildingwill create a

good working climate and give the

project manager a chance to build an

efficient and motivated team. In order to

meet the needs of project members from

different cultural and organizationalbackgrounds, teambuilding activities

should be adapted to the composition of

the project organization, and comprise a

balance between socializing and work-

related activities.

Information meetings and teambuilding

activities will reduce the risk of

frustration and duplication of workbecause of misunderstandings and

ignorance.

Involving project members in the

breakdown of objectives and detailed

planning of their own tasks will increase

confidence in the project plans, and

create teams aligned with the projectgoal.

Prestudy Phase

During the activityPhase Start-Up and Teambuildingin theprestudy phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklistbelow:

Integration Management

Analyze the preconditions for the prestudy phase in theAssignment Specification for the prestudy.

Ensure that the prestudy objectives are communicated andunderstood.

Ensure that the constraints for the prestudy work, such assecurity measures, policies and standards that must beadhered to, are communicated and understood by all.

Ensure that experiences from previous prestudies andprojects are identified and made available for the prestudyteam members.

Identify stakeholders and establish procedures forinvolving the different prestudy stakeholders in theprestudy work, such as prestudy meetings and meetingswith and reporting to the sponsor for the prestudy.

Customer Reporting

If applicable, plan and establish customer contacts.



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During the activityPhase Start-Up and

Teambuilding,all teams entering the

project should be informed about the

business context in which the project

takes place. Project members should be

given the opportunity to fully understand

the prerequisites for and constraints onthe project in order to be able to focus on

what is most essential.

To ensure that project members obtain a

business-oriented attitude to the work,

everyone involved in the current phase of

the project should participate in the

detailed planning and budgeting of their

own work.

Spending time on the activityPhase Start-

Up and Teambuildingwill mean less time

spent on problems and conflict-solving

later in the project. Expenses for

misunderstandings and for duplication of

work will be minimized.

Confirmation and Breakdown of Objectives Analyze the preconditions for the prestudy phase, and the

requirements on the prestudy outcome.

Involve the prestudy members when breaking down theprestudy objectives.

Quality System Establishment and Verification

Establish and implement:

Security measures

Prestudy work model, methods, tools, etc.

Reviews of the prestudy outcome

Prestudy Planning

Prepare detailed plans for the prestudy phase:

Break down the prestudy work and identify anddescribe the work packages.

Find dependencies between the work packages andsequence them.

Estimate the duration of each work package.

Prepare a time-schedule for the prestudy and ensure thatit is within the time limits set in the AssignmentSpecification for the prestudy.

Prestudy Budget

Establish, document and communicate procedures to befollowed in the accounting system.



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PRESTUD

YPHASE

Identify the resources needed in the prestudy phase(human resources, tools, equipment, material, etc.).

Estimate the amount of work and the competence needed.

Prepare a budget for the prestudy and ensure that it iswithin the cost limit set in the Assignment Specificationfor the prestudy.

Prestudy Organization Establishment and Teambuilding

Establish the prestudy organization.

Gather the members of the prestudy team for start-upmeetings. Communicate the prestudy plans.

Make sure that all prestudy team members are involved inthe work and allowed to contribute, and that they fullyunderstand their tasks.

Perform activities to create a good working climateencouraging excellence, trust and respect among all thoseinvolved in the prestudy.

Information Management

Make sure that the information needed is available forprestudy members and other stakeholders.

Establish guidelines for information distribution and fordifferent types of meetings.

Uncertainty Management Communicate the identified risks and opportunities.

Encourage all prestudy team members to anticipate andidentify risks and opportunities and to report them.

Project Steering Function

The project sponsor and the rest of the

project steering group are responsible

for:

supporting the project managerduring the activityPhase Start-Up and

Teambuildingby actively showing

their support and commitment.


The project manager is responsible for

the activityPhase Start-Up andTeambuilding.


The subproject manager is responsible

for the activityPhase Start-Up and

Teambuildingin his or her subproject.

The project members are responsible for: participating in teambuilding

activities,

keeping themselves informed aboutsecurity regulations, reporting

routines, delivery dates, etc.




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Internal Staff Acquisition

Negotiate with the resource owners for the resourcesneeded in the prestudy phase. See to it that experts areengaged to cover all aspects of the potential project.

Prepare and sign resource contracts for the prestudy phasewith the managers acting as resource owners.

External Staff Acquisition Follow the organizations routines for procurement when

engaging subcontractors and consultants for the prestudywork.



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PRESTUD

YPHASE



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Definition

Coaching, Integrationand Controlis acontinuous activity in the projectmanagement model during which the projectmanager steers the project toward its goal bycoaching the project team and managing theinterfaces between stakeholders, while

keeping full control over time, costs andresults.

Purpose

The purpose of the activity Coaching,Integrationand Controlis to ensure that theproject is managed in a formal andstructured manner that fulfills theorganizations and the customers demands.


Prestudy Phase

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PRESTUDYPHASE The project manager must possess good

leadership and human skills in order to

be able to encourage and coach the

project team in its efforts to reach the

project goal. Initiatives for

improvements should be encouraged,

and good performance and competence

development within the team

acknowledged.

The project organization should be

continuously adjusted in order to allow

people to make use of their knowledge

and experiences in the best possible way

for the project and the organization.

In a working climate in which all project

members are committed to their tasks

and respect each others work, high-

quality results will be delivered

whenever and wherever needed, and

handed over in accordance with the

agreements made.

For efficient and smooth cooperation andintegration, communication paths must

be clear and understood. Information

must be available simultaneously within

the entire project organization, and it

must be reliable and kept up-to-date.

Prestudy Phase

During the activity Coaching,Integration and Controlin theprestudy phase, the projectmanager should perform therelevant tasks in the projectmanagement processes asdescribed in the checklistbelow:


Ensure that the constraints on the prestudy work, such assecurity measures, policies and standards, arecommunicated and understood.

Ensure that experiences from previous prestudies andprojects are identified and taken into account in theprestudy work.

Contacts with the Project Steering Function Ensure that the prestudy has access to people with the

authority to:

initiate and order work packages,

provide the prestudy with human resources withappropriate skills and competence,

manage the interfaces between work packages, and

make sure that the dependencies are clearly understood, implement, verify and communicate any changes to the

prestudy budget, plans and specifications.

Report progress to the project sponsor according to theagreements made.



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During the activity Coaching, Integration

and Control, the business focus in the

project organization is maintained while

the project performance is measured,

analyzed and improved. This will ensure

that the best possible strategy is applied,

and that resources are used in a way that

is beneficial to both the project and the

organization.

In a working climate that rewards

initiatives, project members will

contribute by identifying and suggesting

timesaving, cost-reducing and quality-

improving measures.

Customer Reporting

Report progress to the customer according to what hasbeen agreed with the customer.

Ensure that customer contacts are carried out as agreed.Continuously evaluate and improve the management ofthe customer interface.

Scope Control

Ensure that all efforts are focused and aligned with theobjectives set for the prestudy.

Collect data on the results achieved.

Suggest changes and corrective action regarding the scopeof the prestudy.

The sponsor for the prestudy must confirm any majorchanges affecting the limits of the prestudy.

Quality Control

Monitor prestudy performance. Check that the agreedworking methods are adhered to, and that the tools areused.

Continuously compare the results achieved with theprestudy sponsors requirements and with the customersneeds.

Milestone Review

If applicable, perform milestone reviews and decide onrelevant action.



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PRESTUDYPHASE




for:

supporting the project manager in theactivity Coaching, Integration and

Control,

making decisions on suggestions fromthe project manager on matters that

are beyond the authority of the

project manager.



the activity Coaching, Integration and

Control.


The subproject manager is responsiblefor:

the activity Coaching, Integration andControl in his or her subproject,

reporting the progress of his or hersubproject to the project manager.

The project team members are

responsible for: reporting progress to the project

manager or, if applicable, to the

subproject manager.

Schedule Control Gather reports on prestudy performance. Compare the

results achieved with what has been planned.

Gather information about the actual status of, andpreconditions for, the remaining work.

Use any deviations from the time-schedule as a basis forcontinuous improvement of the prestudy plans.

Cost Control

Continuously monitor the consumed resources and thereported costs for the prestudy work through the planningsystem and the cost accounting system.

Continuously evaluate working methods and the use ofresources in the prestudy work and suggest improvementsto ensure an efficient use of resources and a reduction ofprestudy costs.

Coaching

Continuously work on creating a good working climate bylistening and giving feedback, support andencouragement. Make sure that all members of theprestudy team are involved and allowed to contribute.

Ensure that the work environment encourages excellence,trust and respect among all those involved in the prestudy.

Ensure that the roles held by individual members of the

prestudy team are clearly defined and that all teammembers understand the responsibilities attached to theirroles.

Continuously work on developing individual and teamskills and improving team performance.




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Prestudy Closure

If the prestudy team leaves the project after the prestudyphase has been concluded, see to it that

the team members efforts are properly acknowledged, the competence development that has taken place, at

the individual as well as at the team level, iscommunicated to the team members resource owners,so that it can be benefited from by both the individualand the organization,

the experiences the team members have made are

taken into account and communicated.

Communication Control

Ensure complete and relevant communication within theprestudy organization. Pay particular attention to the

interfaces between functions and units wheremisunderstandings and conflicts occur frequently.

Ensure that the relevant descriptions of prestudyprocedures are available for those who need them.

Meetings

Inform about the progress in meetings that are open toeveryone involved in the prestudy.

Make sure that the prestudy team members are aware ofany decisions that will have impact on their work.

Take minutes of meetings. Particularly stress decisionsmade, outstanding issues and agreed action. Distributethe minutes to relevant stakeholders as agreed.

Risk Response Control

Act on risks related to the prestudy work when theyoccur.



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PRESTUDY

PHASE

Encourage prestudy members to anticipate and identifyrisks and opportunities and to report them.

Perform risk and opportunity identification when

significant decisions are made. Analyze the identified risksand opportunities and their consequences.

External provisioning:

Subcontract Administration If subcontractors are engaged in the prestudy, collect

information on subcontractor performance, progress,quality, cost and time according to the procedures definedin the contract with the subcontractor.

Verify that the performance of the subcontractor meets thecontract requirements. Give feedback to subcontractorsand inform about any action agreed on.



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Definition

Project Analysisis an activity in the prestudyphase during which a rough estimate is madeof the different implementation alternativesopen to the project.

Purpose

The purpose of the activityProject Analysisisto identify and describe the business realityof the expected project outcome, and toprovide a basis for a business assessment ofthe different strategies for how to continuethe project.

Project Analysis

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PRESTUDY

PHASE The level of confidence in the future

project is based on the confidence in the

prestudy teams reliability, expertise and

professionalism. Therefore, it is

important that experts representing all

aspects of the project outcome are

involved in the project analysis and

allowed to contribute.

To increase the level of confidence and to

prevent any future changes in the

requirements on the project and its

outcome, the activityProject Analysis

should include an identification of

internal and external stakeholders and

how these can affect the project in thefuture.

Prestudy Phase

During the activityProjectAnalysisin the prestudy phase,the project manager shouldperform the relevant tasks inthe project management

processes as described in thechecklist below:

Assignment Analysis

Analyze the Assignment Specification for the prestudy.

Analyze the preconditions for the business opportunity and the consequences for the organization of a potentialproject and its expected outcome.

Identify what previous projects and prestudies can provideinformation and valuable experience. Analyze the ProjectSpecifications, Final Reports and other project documents.

Identification of Project Interfaces

Identify internal and external stakeholders and analyzetheir impact on the potential project and its expectedoutcome.

Identify the organizational, technical and interpersonalinterfaces.



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The activityProject Analysisshould result

in a clearly formulated business

opportunity, based on different

implementation alternatives open to the

project and its outcome. This will create a

foundation on which the business

assessment of the potential project is

based. It is important that all aspects of

the potential project are elucidated.

Technical, commercial, product and

organizational experts participate in the

analysis.

During the activityProject Analysis,all

project stakeholders should be identified

and involved to ensure that they willcontribute to successful project

completion.

Requirement acquisition

Formulate requirements related to the project outcomeby identifying and analyzing the expressed andunexpressed needs of the customer and otherstakeholders, while taking the technical development,competitors, the market, etc. into consideration.

Identification of Alternative Solutions

Outline the features of the expected project outcome. Formulate different implementation alternatives for the

expected project outcome.

Intellectual Property Rights

Investigate whether any intellectual property rights(patents, copyrights, trademarks, registered names,licenses, etc.) are applicable for the expected projectoutcome. This includes protecting results from projectdevelopment work or avoiding infringement on therights of others.

Project Strategy Analysis

Formulate the requirements related to processes andproject performance by analyzing the expressed andunexpressed needs of the customer and otherstakeholders.

Analyze alternative strategies for how to fulfill therequirements:

Analyze the external and internal constraints on theproject.

Investigate what provisioning and productdevelopment strategies are recommended in theorganization for the area in question.

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PRESTUDY

PHASE


The prestudy sponsor is responsible for:

providing the prestudy team with thebackground information needed to

complete the assignment,

supporting the project manager in theactivityProject Analysisto ensure a

solid foundation for the tollgate 1

decision.


The person responsible for the prestudyphase is responsible for the activity

Project Analysis.


The prestudy team members are

responsible for:

providing the knowledge andinformation needed to conclude theactivityProject Analysis,

taking an active part in theProjectAnalysis.

Investigate whether external provisioning is analternative to in-house development.

Evaluate different development technologies. If

incremental development is an option, strategies forthis should be outlined already at this early stage.

Analyze existing work models (or PROPS applications)for the suggested strategies.

Intellectual Property Rights

Ensure that all tools, equipment, etc. used in the projectare legally purchased or licensed by the performing

organization.

Analyze how the intellectual property rights related topurchased products and tools will affect the possibility ofusing these products and tools in the project or the projectoutcome.

For Each Implementation Alternative:

Work Breakdown

Make a work package decomposition of the project at ahigh level.

Project Time-Schedule Outline a rough time-schedule for the project.

For each implementation alternative:

Resource Planning Identify the resource requirements (human resources,

tools, equipment, material, etc.).

Identify where external provisioning is a cost-efficientalternative to in-house development.




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Estimate the amount of work and the competenceneeded, and make a rough estimate of the total projectcost.

Cost-Benefit Analysis

Estimate tangible and intangible costs and benefits, andassess the relative desirability of the alternative.

Organizational Analysis Identify what constraints will limit the project

organizations options, such as organizational structurewithin the performing organization, collectiveagreements, culture, personal preferences anddependencies on key personnel. Analyze their effects onthe projects interfaces.

Identify the effect these constraints have on differentimplementation alternatives.

Analyze the need for training and recruiting.

Communication Analysis

Identify what constraints will affect the communicationoptions of the potential project, such as geographicalspread, culture, language, information technology andsecurity demands.

Identify the effect these constraints have on differentimplementation alternatives.

If applicable, establish a strategy for handlingconfidential information, for instance if external supplierswill be used in the potential project.

Establish a strategy for managing the communicationflow particularly important to the potential project.

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PRESTUDY

PHASE

Risk and Opportunity Identification

Identify major risks and opportunities for the differentalternatives. Consider, for instance:

Technology

Experience and competence

Customer

Geographical spread

Different organizational, regional and national cultures Market and competition

Security Analysis

Analyze the security demands on the potential project andsuggest a strategy for security classification.

External Provisioning:

Pre-Selection of Suppliers

Initiate an analysis of the supplier market.

Collect supplier data. Make a preliminary evaluation and pre-selection of

possible suppliers.

Pre-Selection of Objects

Identify and make a preliminary evaluation of possibleprocurement objects.

Investigate whether similar objects have been procuredbefore within the organization.



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Elaboration of Requirements

Formulate requirements on procurement objects at alevel of detail and quality sufficient for continued

negotiation and evaluation.

Elaboration of Negotiation Framework

Compile negotiation requirements and formulatenegotiation objectives and strategy.

Prestudy Documentation

Document the result of the prestudy and hand it over tothe project sponsor according to the procedures defined inthe Assignment Specification.

Feasibility Study Quality Planning

Identify what quality standards are applicable and

required for the feasibility study.

Suggest which processes, working methods and toolsshould be used in the feasibility study phase.

Feasibility Study Schedule Development

Estimate the time needed for the feasibility study.

Feasibility Study Cost Budget

Estimate the amount of work needed and the cost for thefeasibility study.

Identify the resources and competence needed for thefeasibility study.

Feasibility Study Staff Acquisition

Identify a person who will be responsible for the

feasibility study phase.

Preferably, this is the same person as the future projectmanager.

36 Project Analysis


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PRESTUDY

PHASE



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Definition

The feasibility study phase is the phase in

the project model during which the projectis outlined and preparations for successfulproject completion are made.

Purpose

The purpose of the feasibility study phase is

to decide on a project strategy, define theproject goal and prepare project plans inorder to provide a solid foundation forsuccessful project execution and completion.


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In order to ensure full commitment to

the project goal and confidence in the

projects plans, it is important to involve

all those who will perform project

execution in the specification and

planning of the project.

All the stakeholders with an interest inthe project and its outcome should be

identified and involved to make sure that

all aspects of the project are considered

and to limit the risk of future changes to

the project scope.

The project sponsor should take an

active part in the definition the project

goal and strategy, thus demonstratinghis or her confidence in and

commitment to the project.

Preconditions

The preconditions for starting the feasibility study phase are:

a tollgate 1 decision to start the feasibility study,

an Assignment Specification for the feasibility study.

Feasibility Study Phase Organization

A team consisting of people from all the competence areasinvolved carries out the feasibility study work.

Complex feasibility studies that require comprehensive workat many levels can be run as projects on their own.

A Basis for Successful Project Execution

During the feasibility study the project scope is defined, theproject goal is formulated, the project organization defined,and risks and opportunities assessed. A quality system forthe project is defined to ensure that the project outcome andperformance will be aligned with the organizations and the

customers quality demands.Project plans are prepared at a level detailed enough toestablish realistic time and cost limits for the project andensure proper control over it. Internal and external resourcesneeded in the project are identified and agreements forprocurement made.

The feasibility study work is documented in the Project

Specification, which will be handed over to the projectsponsor for the tollgate 2 decision.

An Active Project Steering Function

During the feasibility study phase, the project sponsor mayhave to make a number of strategic decisions. In order toensure control of the business decision process, it isimportant that the project sponsor is closely involved in the

project work.

In the case of customer order driven development orcustomer order projects, such decisions may involve tendersubmission or contract approval. For product provisioningprojects, the project sponsor may have to take part in


d i i di diff i i h j f


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In the feasibility study, the organizations

costs for project execution and its

duration are calculated.

The documented result from the

feasibility study is assessed at tollgate 2.

After tollgate 2, this will constitute the

basis for the business agreement betweenthe project sponsor and the project

manager.

The result from the feasibility study can

be used as a basis when a business case or

a tender to a customer is formulated.

However, market analyses and business

agreements with the customer, and other

activities related to the commercialaspects of the project, are often performed

by someone in the project steering

function, or by a unit in the organization,

external to the project.

decisions regarding different strategies in the project, forexample decisions on using new technologies, externalprovisioning or new development models, such asincremental development.

To Terminate a Feasibility Study

The project sponsor is responsible for making the decisionto terminate the feasibility study if this turns out to bewhat best serves the organization and the customer.

A decision to terminate a feasibility study before or attollgate 2 is a decision to start project conclusion. Thisincludes deciding how to take care of the results achieved inthe feasibility study. Experiences and observations madeshould be documented and lessons learned transferred to theorganization in order for future projects to be able to fullybenefit from the experiences made.

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The project sponsor is responsible for:

ensuring that the Assignment Specification for thefeasibility study is prepared, and ordering the prestudywork,

appointing the project manager,

taking the financial responsibility for the feasibility study,

making the tollgate 2 decision and approving the ProjectSpecification,

performing the other activities described for the feasibilitystudy phase in the project steering model.


The feasibility study work is managed and controlled by aperson appointed responsible for the feasibility study phase.It is advisable that this is the project manager for projectexecution.

The project manager (or the person responsible for thefeasibility study) is responsible for:

performing the activities in the feasibility study phase ofthe project management model.


The project team members are responsible for:

supporting the project manager in the feasibility studywork,

planning their own tasks and delivering results accordingto specifications from the project manager.




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Managers, in their roles as resource owners, are responsiblefor:

support their own personnel and the project manager inthe feasibility study work,

contributing with their competence when the projectmanager suggests a strategy, methods and tools for the

project, supporting the project manager when he or she prepares

the quality plan,

taking an active part in the activityProject Resource Procurement.

Managers, in their roles as receivers, are responsible for:

supporting the project manager in evaluating the

consequences of the requirements on the project for thereceiving unit,

suggesting, developing and evaluating the proceduresand resources needed for the hand-over of the projectoutcome to the receiving unit.


During the feasibility study phase, the following activitiesin the project management model should be performed:

Phase Start-Up and Teambuilding


Project Specification and Planning

Project Resource Procurement

Preparation of theProject Specification Project Specificationin PROPS Document Guide


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Phase Start Up and Teambuilding


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Definition

Phase Start-Up and Teambuildingis arecurrent activity in the project managementmodel during which the current phase of theproject is planned and resources are securedand committed to the project and itsoutcome.

Purpose

The purpose of the activityPhase Start-Upand Teambuildingis to create a solidfoundation for the current phase of theproject, and to create and maintainconfidence in and commitment to the projectand its outcome.

Phase Start-Up and TeambuildingFeasibility Study Phase



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Spending time on the activityPhase

Start-Up and Teambuildingwill create a

good working climate and give the

project manager a chance to build an

efficient and motivated team. In order to

meet the needs of project members from

different cultural and organizational

backgrounds, teambuilding activitiesshould be adapted to the composition of

the project organization, and comprise a

balance between socializing and work-

related activities.

Information meetings and teambuilding

activities will reduce the risk of

frustration and duplication of workbecause of misunderstandings and

ignorance.

Involving project members in the

breakdown of objectives and detailed

planning of their own tasks will increase

confidence in the project plans, and

create teams aligned with the project

goal.


During the activityPhase Start-Up and Teambuildingin thefeasibility study phase, theproject manager shouldperform the relevant tasks in

the project managementprocesses as described in thechecklist below:


Ensure that the feasibility study objectives arecommunicated and understood.

Ensure that the constraints for the feasibility study work,such as security measures, policies and standards thatmust be adhered to, are communicated and understood byall.

Ensure that experiences from previous projects are

identified and made available for the project teammembers.

Establish procedures for involving the different projectstakeholders in the feasibility study work, such as projectmeetings and meetings with and reporting to the projectsponsor and the rest of the project steering group.

Customer Reporting

If applicable, plan and establish customer contacts.



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During the activityPhase Start-Up and

Teambuilding,all teams entering the

project should be informed about the

business context in which the project

takes place. Project members should be

given the opportunity to fully understand

the prerequisites for and constraints on

the project in order to be able to focus onwhat is most essential.

To ensure that project members obtain a

business-oriented attitude to the work,

everyone involved in the current phase of

the project should participate in the

detailed planning and budgeting of their

own work.Spending time on the activityPhase Start-

Up and Teambuildingwill mean less time

spent on problems and conflict-solving

later in the project. Expenses for

misunderstandings and for duplication of

work will be minimized.

Confirmation and Breakdown of Objectives

Analyze the preconditions for the feasibility study phase,and the requirements on the feasibility outcome.

Involve the project members when breaking down thefeasibility study objectives.

Quality System Establishment and Verification

Establish and implement:

Security measures

Feasibility work model, methods, tools, etc.

Reviews of the feasibility study outcome

Feasibility Study Planning

Prepare detailed plans for the feasibility study phase:

Break down the feasibility study work and identifyand describe the work packages.

Find dependencies between the work packages and

sequence them. Estimate the duration of each work package.

Prepare a time-schedule for the feasibility study andensure that it is within the time limits set in theAssignment Specification for the feasibility study.

Feasibility Study Budget

Establish, document and communicate procedures to befollowed in the accounting system.


Identify the resources needed in the feasibility study


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for:

supporting the project managerduring the activityPhase Start-Up and

Teambuildingby actively showing

their support and commitment.



the activityPhase Start-Up and

Teambuilding.



for the activityPhase Start-Up and

Teambuildingin his or her subproject.

The project members are responsible for:

participating in teambuildingactivities,

keeping themselves informed aboutsecurity regulations, reporting

routines, delivery dates, etc.

phase (human resources, tools, equipment, material, etc.).

Estimate the amount of work and the competence needed.

Prepare a budget for the feasibility study and ensure thatit is within the cost limit set in the AssignmentSpecification for the feasibility study.

Feasibility Study Organization

Establishment and Teambuilding Establish the feasibility study organization.

Gather the project team members involved in thefeasibility study for start-up meetings. Communicate thefeasibility study plans.

Make sure that all project team members involved in thefeasibility study work are allowed to contribute, and that

they fully understand their tasks. Perform activities to create a good working climateencouraging excellence, trust and respect among all thoseinvolved in the feasibility study.

Information Management Make sure that the information needed is available for

project members and other stakeholders, for instance bysetting up a project library.

Establish guidelines for information distribution and fordifferent types of meetings.

Uncertainty Management

Communicate the identified risks and opportunities.



Encourage all project members to anticipate and identify


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g p j p yrisks and opportunities and to report them.

Internal Staff Acquisition

Negotiate with the resource owners for the resourcesneeded in the feasibility study phase. See to it thatexperts are engaged to cover all aspects of the project.

Prepare and sign resource contracts for the feasibility

study phase with the managers acting as resource owners.

External Staff Acquisition

Follow the organizations routines for procurement whenengaging subcontractors and consultants for thefeasibility study work.


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Definition

Coaching, Integrationand Controlis acontinuous activity in the projectmanagement model during which the projectmanager steers the project toward its goal bycoaching the project team and managing the

interfaces between stakeholders, whilekeeping full control over time, costs andresults.

Purpose

The purpose of the activity Coaching,Integrationand Controlis to ensure that theproject is managed in a formal andstructured manner that fulfills theorganizations and the customers demands.





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The project manager must possess good

leadership and human skills in order to

be able to encourage and coach the

project team in its efforts to reach the

project goal. Initiatives for

improvements should be encouraged,

and good performance and competence

development within the teamacknowledged.

The project organization should be

continuously adjusted in order to allow

people to make use of their knowledge

and experiences in the best possible way

for the project and the organization.

In a working climate in which all projectmembers are committed to their tasks

and respect each others work, high-

quality results will be delivered

whenever and wherever needed, and

handed over in accordance with the

agreements made.

For efficient and smooth cooperation andintegration, communication paths must

be clear and understood. Information

must be available simultaneously within

the entire project organization, and it

must be reliable and kept up-to-date.


During the activity Coaching,Integration and Controlin thefeasibility study phase, theproject manager shouldperform the relevant tasks in

the project managementprocesses as described in thechecklist below:


Ensure that the constraints on the feasibility study work,such as security measures, policies and standards, arecommunicated and understood.

Ensure that experiences from previous projects areidentified and taken into account in the feasibility studywork.

Contacts with the Project Steering Function

Ensure that the project has access to people with theauthority to:

initiate and order work packages,

provide the feasibility study with human resourceswith appropriate skills and competence,

manage the interfaces between work packages, andmake sure that the dependencies are clearly understood,

implement, verify and communicate any changes to thefeasibility study budget, plans and specifications.

Report progress to the project sponsor according to theagreements made.


Customer Reporting

Report progress to the customer according to what has


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During the activity Coaching, Integration

and Control, the business focus in the

project organization is maintained while

the project performance is measured,

analyzed and improved. This will ensure

that the best possible strategy is applied,

and that resources are used in a way that

is beneficial to both the project and theorganization.

In a working climate that rewards

initiatives, project members will

contribute by identifying and suggesting

timesaving, cost-reducing and quality-

improving measures.

Report progress to the customer according to what hasbeen agreed with the customer.

Ensure that customer contacts are carried out as agreed.Continuously evaluate and improve the management ofthe customer interface.

Scope Control

Ensure that all efforts are focused and aligned with theobjectives set for the feasibility study.

Collect data on the results achieved from, for instance,milestone reviews, the project library, Progress Reportsand personal contacts with the project members.

Suggest changes and corrective action regarding the scopeof the feasibility study.

The project sponsor must confirm any major changesaffecting the time and cost limits of the feasibility study.

Quality Control

Monitor project performance. Check that the agreed

working methods are adhered to, and that the tools areused.

Continuously compare the results achieved with theproject sponsors requirements and with the customersneeds.

Milestone Review

Perform milestone reviews. Decide on actions, such as:

Acceptance decisions

Decisions on rework

Decisions on improvements of performance

Process adjustments



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for:

supporting the project manager in theactivity Coaching, Integration and

Control,

making decisions on suggestions fromthe project manager on matters that

are beyond the authority of the

project manager.



the activity Coaching, Integration and

Control.



for: the activity Coaching, Integration and

Control in his or her subproject,

reporting the progress of his or hersubproject to the project manager.


responsible for:

reporting progress to the projectmanager or, if applicable, to the

subproject manager.

Schedule Control

Gather reports on project performance. Compare theresults achieved with what has been planned.

Gather information about the preconditions for theremaining work.

Identify any deviations from the time-schedule and theirunderlying causes. Analyze the consequences.

Use deviations from the time-schedule as a basis for

continuous improvement of the feasibility study plans.

Cost Control

Continuously monitor the consumed resources and thereported costs for the feasibility study work through theplanning system and the cost accounting system.

Continuously evaluate working methods and the use ofresources in the project work and suggest improvementsto ensure an efficient use of resources and a reduction ofproject costs.

Coaching

Continuously work on creating a good working climate bylistening and giving feedback, support andencouragement. Make sure that all project team membersinvolved in the feasibility study are involved and allowedto contribute.

Ensure that the work environment encourages excellence,trust and respect among all those involved in thefeasibility study.



Ensure that the project roles are clearly defined and thatall project members understand the responsibilities


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p j pattached to the roles they hold.

Continuously work on developing individual and teamskills and improving team performance.

Changes in the Project Organization

Continuously evaluate the project organizationalstructure to ensure that it meets the needs of the projectand its stakeholders.

When teams leave the project, see to it that

the team members efforts are properly acknowledgedby their organization and by the project,

the competence development that has taken place, atthe individual as well as at the team level, iscommunicated to the team members resource owners,so that it can be benefited from by both the individualand the organization,

the experiences the team members have made aretaken into account and communicated.

Communication Control

Ensure complete and relevant project communication.

Pay particular attention to the interfaces betweenfunctions and units where misunderstandings andconflicts occur frequently.

Ensure that the relevant descriptions of projectprocedures are available for those who need them.

Meetings

Inform about the progress in meetings that are open toeveryone involved in the feasibility study.

Make sure that the project team members involved in thefeasibility study are aware of any decisions that will havean impact on their work.


Arrange meetings with members of the project team atregular intervals in order to win their commitment. Make


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sure that they are aware of any decisions that will have animpact on their work.

Take minutes of meetings. Particularly stress decisionsmade, outstanding issues and agreed action. Distributethe minutes to relevant stakeholders as agreed.

Risk Response Control

Communicate the major risks and opportunities identifiedfor the project and ensure that activity lists andcontingency plans are known, understood and kept up-dated.

Act on risks related to the feasibility study work whenthey occur.

Perform risk and opportunity identification when

significant decisions are made. Encourage projectmembers to anticipate and identify new risks andopportunities and to report them. Analyze the identifiedrisks and opportunities and their consequences.

External provisioning:

Subcontract Administration

If subcontractors are engaged in the feasibility study,collect information on subcontractor performance,progress, quality, cost and time according to theprocedures defined in the contract with the subcontractor.

Verify that the performance of the subcontractor meets thecontract requirements. Give feedback to subcontractorsand inform about any action agreed on.


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Definition

Project Specification and Planningis an activityin the feasibility study phase during whichthe project is specified and described.During this activity, the foundation for theproject is created, and the ProjectSpecification, which describes the businessagreement between the project manager andthe project sponsor, is prepared.

Purpose

The purpose of the activityProjectSpecification and Planningis to create a solidand unambiguous foundation for the project,which will give all stakeholders, both insideand outside the project organization, a sharedview on the project and its outcome, and theopportunities it brings about.

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All relevant stakeholders, both inside

and outside the project organization,

should be involved when the project is

specified and planned. This will create

an understanding of the projects

strategy, goal and plans, as well as

alignment with the projects business

direction.

An understanding of the constraints and

quality demands, as well as commitment

to the working methods used, is essential

for high-quality performance, loyalty to

project management and confidence in

the project plans.

Participating in the activityProjectSpecification and Planningwill create an

understanding of the project, and how

the role and responsibilities of each

individual project member relate to one

another.


During the activityProjectSpecification and Planningin thefeasibility study phase, theproject manager should performthe relevant tasks in the project

management processes asdescribed in the checklist below:

Assignment Analysis

Analyze the Assignment Specification for the feasibility

study and the preconditions for the project. Ensure that the relevant historical data are available in the

project (estimating data, constraints, etc.).

Analyze information about relevant previous projects, infor example Project Specifications, Final Reports and otherproject documents that can provide valuable information.

Identification of Project Interfaces

Identify internal and external stakeholders and analyze theimpact they could have on the project.

Identify project interfaces (organizational, technical andinterpersonal) with the customer and other relevantstakeholders.

Analyze the projects connections to other projects andoperations within the organization.

Decide whether a separate quality plan should be preparedor not. Decide on who should be on the distribution list.


Contacts with the Project Steering Function

Involve the project steering function in the specificationd l i f h j h i d i i


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During the activityProject Specification

and Planning,it should be verified that

the business case on which the project is

based is aligned with the performing

organizations business direction. The

suggested implementation alternative

should prove that it is able to fulfill the

customers needs and requirements.The activity includes setting up a project

organization in which the organizations

resources are used in an optimal way, and

identifying the risks and opportunities

the project brings about.

Project Specification and Planningincludes

a definition of the project goal and itstime and cost limits. It gives the project

manager a means for describing his or her

commitment toward the project sponsor.

and planning of the project so that strategic decisionscan be made whenever needed.

Preparation for Hand-Over of Project Outcome

Prepare for the activity Hand-Over of Project Outcomebyinvolving all functions concerned with the futurehandling of the project outcome.

Customer Contacts

Decide on routines for how to involve the customer andother external stakeholders in the specification andplanning of the project.

Report to the customer according to the agreementsmade.

Requirements and Expected Project Outcome

Analyze and describe the requirements, expectations andneeds as formulated by the project sponsor and/or thecustomer. Discuss the requirements with the customerand the project sponsor.

Compare the requirements with the projects ability to

meet them. Define the expected project outcome. Identify thealternatives, and estimate and assess their tangible andintangible costs and benefits.

Formulation of Project Goal

Decide and formulate the project goal as regards time,costs and expected outcome in measurable terms.

Ensure that the project goal meets the requirements.


Project Scope Definition

Define what is specifically included in or excluded fromthe project in relation to its goal in order to elucidate the


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The project sponsor is responsible for:

creating an understanding for thebusiness reality for the project by

providing the backgroundinformation needed for the

specification and planning of the

project,

taking an active part in theformulation of the project strategy

and goal,

supporting the project manager

during the activityProject Specificationand Planning.



the activityProject Specification and

Planning.



for the activity (Sub)project Specification

and Planningin his or her subproject.


responsible for:

supporting the project manager in theactivityProject Specification and

Planning,

providing the project manager withtheir professional knowledge.

the project in relation to its goal, in order to elucidate theproject scope and to avoid any future shifts in the level of

ambition.

Make references to alternative solutions and approachesand how they are taken into account and included in theproject scope development.

Define quality requirements on the project outcome, suchas product performance quality, reliability, robustness andusability.

Analyze internal and external quality requirements on theproject performance, and formulate quality objectives inmeasurable terms.

Configuration Identification

Determine the structure of the project outcome, selectconfiguration objects and their physical and functionalcharacteristics, including interfaces.

Make sure that products and services provided bysuppliers are included in the configuration identificationand control.

Allocate identification numbers to the configurationobjects and their documents.

Change management and configuration control

Identify and document procedures for reviews andapproval of changes to processes, requirements and projectoutcome.

Quality Objectives for the Project Outcome

Analyze quality requirements on the project outcome,such as product performance quality, reliability,robustness and usability.



Define how the quality objectives for the projectoutcome will be measured and ensure that they aretraceable to the customer.


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traceable to the customer.

Perform a cost-benefit analysis, that is, developmentversus correction, benefits of increased customersatisfaction versus cost of overkill, etc.

Quality Objectives for the Project Performance

Define measurements by which to measure progress.

Strategy Analysis

Investigate alternative strategies for how to reach theexpected project outcome.

Identify similar assignments and ensure that feedbackfrom previous projects is made use of.

Benchmark for new techniques, methods or work forms.

Project Strategy and Quality System

Choose a strategy for reaching the project goal. Identifythe relevant project processes, for instance an existingPROPS application.

Decide on the relevant quality assurance framework forthe project, such as:

Policies, principles and standards that should beadhered to in the project

Assessments, audits and reviews

Security demands

Decide on or define:

Operative processes

Methods and tools

Measurements

Verifications

Validations Handling of intellectual property rights issues

Acceptance criteria, etc.


Define and describe appropriate support activities, suchas:

Configuration management


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Configuration management

Handling of changed requirements

Tailoring

Tailor the defined processes to the needs of the project.Use the relevant instructions for the tailoring, anddocument any deviations from established processes.

If incremental development is applied, define how toapply the processes for the different increments.

If appropriate, investigate and describe how externalproducts, technology or services should be integrated intothe organizations procedures and routines.

Work Package Definition

Break down the project work into clearly defined workpackages. Include project management activities, qualityassurance activities, as well as activities in theprocurement process.

Label each work package with a unique name and astructure code.

Specify input, activities to perform, deliverables and cost

elements (human resources, equipment, premises, testsites, purchases, travel costs, services, etc.) for each workpackage.

Activity Sequencing

Identify mandatory, logical and external dependencies andinterconnections among the work packages. Review forconsistency.

Create a logical network.PROPS Terminology


Estimating Preparations

Consider relevant information sources. Check estimatesbased on past experience relevant to the current project.


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b sed o p st e pe e ce e ev t to t e cu e t p ojectDocument input to ensure traceability to origins.

Collect input data (planning constants, resourcecapability and project team competence), constraints andassumptions, and decide on estimating method.

Involve all the people with relevant experiences andcompetence in the estimating process. If a work packageis assigned to a unit, involve personnel from that unit inthe estimating.

If applicable, involve the customer or other stakeholdersin the estimating.

Time Estimating

Quantify all work packages as regards:

Size

Complexity

Level of confidence Estimate for each work package:

DurationThe lead-time needed to complete the work package.

EffortThe amount of work required to complete the workpackage in terms of man-hours.

Document the result of the estimating to ensuretraceability.

Definition of Project Milestones

Identify the critical path and critical activities, that is,the activities leading up to the earliest possible date ofproject completion.

Divide the project into stages or increments.

Project Time-Schedule

Create a project time-schedule.


Milestone Definition Chart

Identify and define particular events project milestones in the project when specific input or decisions are


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p j p prequired, or at major deliveries.

Prepare a project milestone definition chart.

If applicable, position the project milestones in the time-schedule.

Delivery Plans

Compile deliveries in a delivery plan. Describe whatdeliverables are needed, when and by whom, as well as

who will complete them. Identify and schedule the objects to be procured, paying

particular attention to objects critical to time, cost andquality.

Resource Planning

Identify resource requirements (human resources, tools,equipment, material, etc.). Take constraints into account,such as limited resources and dependency on keypersonnel, cultural considerations, internationalagreements, governmental regulations, funding, and theprojects impact on the environment.

Analyze the critical path and consider the effects of

limited resources and key personnel. Make a resource summary, based on the logical networkand

the estimated effort. Specify the total need for resources,as well as for different resource categories.

Estimating Preparations

Consider relevant information sources. Check estimatesbased on past experience relevant to the current project.Document input to ensure traceability to origins.

Collect information on resource rates, such as staff cost perhour, fixed price per deliverable, material costs, trainingcosts, travel costs, costs for equipment, currencyfluctuations.

PROPS Terminology


Involve all the people with relevant experiences andcompetence in the estimating process. If a work packageis assigned to a unit, involve personnel from that unit inh i i


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the estimating.

If applicable, involve the customer or other stakeholdersin the estimating.

Cost Estimating

For each work package, estimate the cost for each costelement (human resources, equipment, premises, testsites, purchases, travel costs, services, etc.). Allocatesufficient costs for quality assurance activities.

Take external economic aspects into account in theestimating (inflation, taxation, exchange rates, etc.).

Project Budget

Calculate the project cost, as well as the cost for a specificproject milestone, from the price given to each workpackage. Prepare a time-phased project budget (cost

baseline). Ensure that the budget is consistent with the

requirements in the Assignment Specification. If there isa mismatch, either adjust the budget for the project orchange the contents of the work packages.

Project organizational structure

Identify what constraints will limit the projectorganizations options, such as organizational structurewithin the performing organization, collectiveagreements, culture, personal preferences anddependencies on key personnel. Analyze their effects onthe projects interfaces.

Identify relevant units within the organization thatsupport the project (for instance in monitoring resources,time and costs).


Based on previous project experience, define a projectorganizational structure tailored to suit the project needsand the organizations policies and requirements.


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Design the project organizational structure so that it

encourages efficient communication and cooperationbetween all project stakeholders,

is appropriate for the project scope and the size of theproject team,

is appropriate for local conditions and the division ofauthority and responsibilities between the project andthe organization in which it operates,

takes special consideration to critical interfaces. If applicable, identify subprojects.

Project Roles

Identify roles and responsibilities in the projectorganization.

Define the project managers responsibilities and

authority. Define the balance of authority andresponsibilities between the project organization and theorganization in which it operates.

Staffing of Project Organization

Appoint project management staff members. Payparticular attention to functions dealing withimplementing and monitoring the project quality system.

Identify which units (functional units, subprojects, teamsor subcontractors) are responsible for which workpackages.

In large projects, appoint subproject managers.

Identify when teams and team members will enter or leavethe project.

Staff the project organization by negotiating with the

resource owners for resources to the project. In largeprojects, this is the responsibility of the subprojectmanagers.

Analyze the need for training and recruiting.


Prepare a project organization overview showing theorganization of the projects three functions - the projectsteering function, the project management function andthe project executing function as well as the relevant


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the project executing function - as well as the relevant

stakeholders outside the project organization.

Communication Framework

Decide on a project identification system, and establish aproject identity that will be used in the organizationsreporting and document management system.

Establish a project library, computerized or manuallyhandled.

Decide on what tools to use in the project for planning,documentation and communication. Identifystandardized templates and forms.

Communication Analysis

Analyze the stakeholders information andcommunication requirements and needs.

Manual for Customer Project Managers - PROPSC

Documents