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PROJECT MANAGEMENTParticipants WorkbookWhat is project
management? Project Management is the discipline if planning,
organizing, securing and managing resources to bring about the
successful completion of specific project goals and objectives.
Wikipedia refers to it as a temporary endevour having a defined
beginning and end.
African Sunrise (Pty) Ltd. | AGENDA HR Connect CC
HR Connect (Pty) Ltd. 31 August 2010
PARTICIPANTS WORKBOOK Delegate Name:
Facilitator:
Date:
Copyright 2010 All rights reserved
HR Connect Training Institute (Pty) Ltd.
Information in this book is subject to change without notice. No
part of this book may be produced or transmitted in any form,
without written permission of HR Connect Consulting.
HR Connect (Pty) Ltd.
LETTER OF NOTIFICATION Facilitators: Marchelle Tinker
Brent-David Kadalie Charlene Martin Thapelo Motsieloa Melvina
Minnaar Venue: Physical Address: Map 204161754 204147352 205208649
205003001 193027305 CPUT, Commerce Lecture Theatre Room 2.65
Keizersgracht and Tennant Street Zonnebloem
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.
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5. Date of Workshop:
31 August 2010
HR Connect (Pty) Ltd.
6. Number of Learners: 7. Time of Workshop:
60 17:00 21:0
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AGENDA AGENDA ITEM Registration Welcome / Introduction TOPIC
Tick registration form Receive participant packs Welcome
participants Introduction of Facilitator Introduction of Trainees
Ice Breaker Introduction Course Expectations Done by facilitators
Introduction of the topic and the course overview 1. Project
Integration Management 2. Project Cost Management 3. Project
Communications Management Project scope management The learner is
required to complete a case Study Project Quality Management
Project Risk Management Case Study Project Time Management Project
Human Resources Management Conclusion Questions and answers
Graduation Project Procurement Management Wrap up of the programme
Learners have an opportunity to ask question and answers Each
learner receives a certificate of completion
Case Study
Activity
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TABLE OF CONTENTS
LETTER OF
NOTIFICATION..................................................................3
AGENDA............................................................................................
5 TOPIC: PROJECT
MANAGEMENT...........................................................8LESSONOVERVIEW:..........................................................................................................................8
INTRODUCTION.....................................................................................................................11
HISTORY....................................................................................................................................11
APPROACHES...............................................................................................................................13
PROJECT INTEGRATION
MANAGEMENT...............................................17PROJECT
PLAN DEVELOPMENT
...........................................................................................................17
PLANEXECUTION...........................................................................................................................18
INTEGRATED CHANGE CONTROL
.........................................................................................................19
PROJECT SCOPE
MANAGEMENT.........................................................22INITIATION
.................................................................................................................................22
SCOPE SCOPE SCOPE SCOPEPLANNING
.........................................................................................................................23
......................................................................................................................24
................................................................................................................25
DEFINITION.........................................................................................................................24
VERIFICATION
CHANGE CONTROL
PROJECT TIME
MANAGEMENT............................................................
28ACTIVITY DEFINITION
.....................................................................................................................28
ACTIVITY SEQUENCING
...................................................................................................................28
ACTIVITY DURATION ESTIMATING
.......................................................................................................29
SCHEDULE DEVELOPMENT
...............................................................................................................29
SCHEDULE
CONTROL......................................................................................................................30
RESOURCE
PLANNING.....................................................................................................................33
COST ESTIMATING
........................................................................................................................34
COST BUDGETING
........................................................................................................................34
COSTCONTROL............................................................................................................................35
PROJECT QUALITY
MANAGEMENT......................................................38QUALITY
PLANNING
.......................................................................................................................38
African Sunrise (Pty) Ltd. | AGENDA
QUALITY ASSURANCE
.....................................................................................................................39
QUALITY CONTROL
.......................................................................................................................39
PROJECT HR
MANAGEMENT...............................................................
43ORGANIZATIONAL PLANNING
.............................................................................................................43
STAFF ACQUISITION
......................................................................................................................43
TEAM DEVELOPMENT
.....................................................................................................................43
PROJECT COMMUNICATION
MANAGEMENT.........................................47MEANSOF
COMMUNICATION:.............................................................................................................47
COMMUNICATION
PLANNING..............................................................................................................48
INFORMATION
DISTRIBUTION..............................................................................................................48
PERFORMANCE
REPORTING................................................................................................................48
ADMINISTRATIVE
CLOSURE................................................................................................................51
PROJECT RISK
MANAGEMENT............................................................55RISK
PLANNING............................................................................................................................56
RISK
IDENTIFICATION......................................................................................................................56
QUALITATIVE RISK
ANALYSIS.............................................................................................................57
QUANTITATIVE RISK
ANALYSIS...........................................................................................................58
RISK RESPONSE
PLANNING...............................................................................................................58
RISK MONITORINGAND
CONTROL.......................................................................................................59
PROJECT PROCUREMENT
MANAGEMENT............................................63PROCUREMENT
PLANNING.................................................................................................................63
SOLICITATION
PLANNING..................................................................................................................64
SOLICITATION...............................................................................................................................64
CONTRACT
ADMINISTRATION..............................................................................................................64
CONTRACT
CLOSE-OUT...................................................................................................................65
NOTES............................................................................................66
BIBLIOGRAPHY................................................................................68
HR Connect (Pty) Ltd.
TOPIC: PROJECT MANAGEMENT Lesson overview: This workbook will
highlight what project management is and subsections thereof. This
programme will provide a structural and logical approach to project
management as well as an outline of the planning, co-ordination and
control techniques utilised by industry. The learner must be able
to develop a understanding of the project management processes and
be able to develop integrated project plans and techniques to
monitor and control information quickly and accurately to
facilitate problem-solving and decision-making processes throughout
the duration of the project. The objective of this course is to
provide managers of projects with the necessary skills to address
these problem areas and to deliver projects within budget and time
constraints.
LEARNING OUTCOMES: After completion of the training, you should
be able to: Understand the project management environment
Understand and apply contemporary project management principles.
Understand the application of appropriate software to assist in
completing projects. Be able to apply the latest planning and
controlling project management skills. Be able to effectively
budget for proposed projects. Be able to apply other related
management skills required for effective project management.
African Sunrise (Pty) Ltd. | AGENDA
We will be coving the following Topics:
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INTRODUCTION
HR Connect (Pty) Ltd.
INTRODUCTION Project refers to the management and discipline of
planning, organizing, securing and managing resources to bring
about the successful completion of specific project goals and
objectives. It is sometimes associated with program management,
however technically a program is actually a higher level construct:
a group of related and somehow interdependent projects. It is a
temporary endeavor, having a defined beginning and end (usually
constrained by date, but can be by funding or deliverables). It has
unique goals and objectives, usually to bring about beneficial
change or added value. The temporary nature of projects stands in
contrast to business as usual (or operations), which are
repetitive, permanent or semipermanent functional work to produce
products or services. In practice, the management of these two
systems is often found to be quite different, and as such requires
the development of distinct technical skills and the adoption of
separate management. Wikipedia describes the primary challenge of
project management as achieving all of the project goals and
objectives while honoring the preconceived project constraints.
Typical constraints are scope, time, and budget. It also talks
about the secondary, and more ambitious challenge, which optimizes
the allocation and integration of inputs necessary to meet
pre-defined objectives. History Project management has been
practiced since early civilization. Until 1900 civil engineering
projects were generally managed by creative architects and
engineers themselves, among those for example Vistruvius (1st
century BC), Christopher Wren (16321723) , Thomas Telford
(1757-1834) and Isambard Kingdom Brunel (18061859). It was in the
1950s that organizations started to systematically apply project
management tools and techniques to complex projects.HR Connect
(Pty) Ltd.
As a discipline, Project Management developed from several
fields, namely construction, engineering, and defense activity. Two
forefathers of project management are Henry Gantt, called the
father of planning and control techniques, who is famous for his
use of the Gantt chart as a project management tool; and Henri
Fayol for his creation of the 5 management functions which form the
foundation of the body of knowledge associated with project and
program management. Both Gantt and Fayol were students of Frederick
Winslow Taylor's theories of scientific management. His work is the
forerunner to modern project management tools including work
breakdown structure (WBS) and resource allocation.
Frederick Winslow Taylor (1856 - 1915) "Father" of the
Scientific management & Efficiency Movement
Henry Gantt (18611919), the father of planning and control
techniques.
Henri Fayol : The Father of modern operational theory.
At the same time, as project-scheduling models were being
developed, technology for project cost estimating, cost management,
and engineering economics was evolving, with pioneering work by
Hans Lang and others.
HR Connect (Pty) Ltd.
The International Project Management Association (IPMA) was
founded in Europe in 1967, as a federation of several national
project management associations. IPMA maintains its federal
structure today and now includes member associations on every
continent except Antarctica. Approaches There are a number of
approaches to managing project activities including agile,
interactive, incremental, and phased approaches. Regardless of the
methodology employed, careful consideration must be given to the
overall project objectives, timeline, and cost, as well as the
roles and responsibilities of all participants and stakeholders.
The traditional approach A traditional phased approach identifies a
sequence of steps to be completed. In the "traditional approach",
we can distinguish 5 components of a project (4 stages plus
control) in the development of a project:
Typical development phases/stages of a project
Not all the projects will visit every stage as projects can be
terminated before they reach completion. Some projects do not
follow a structured planning and/or monitoring stages. Some
projects will go through steps 2, 3 and 4 multiple times.HR Connect
(Pty) Ltd.
Many industries use variations on these project stages. For
example, when working on a brick and mortar design and
construction, projects will typically progress through stages like
Pre-Planning, Conceptual Design, Schematic Design, Design
Development, Construction Drawings (or Contract Documents), and
Construction Administration. In projects where requirements have
not been finalized, where changes can occur, requirements
management is used to develop an accurate and complete definition
of the behavior of software that can serve as the basis for
software development. While the terms may differ from industry to
industry, the actual stages typically follow common steps to
problem solving "defining the problem, weighing options, choosing a
path, implementation and evaluation."
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PROJECT INTEGRATION MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT INTEGRATION MANAGEMENT Now that you understand the
basics of where project management comes from, you will now get a
better understanding of how people Integration management works and
the effects thereof. When initiating a project, you always have to
plan your activitiesm how they will be handled and who will be
responsible for them. This helps ensure that all processes in a
project it runs smoothly, the activities in between interlink with
what the goal of the project is. During the integration phase, all
qualities of deliverables are being included to measure the
description of the project. These deliverables will include project
charter, project plan and scope statement of the project. Project
integration management is primarily concerned with integrating
processes to accomplish project objectives. This all looks at the
following: Project Plan Development For a project to start-up, it
is triggered by an individual who sees a need for the development
of something, or decides to take responsibility for a new
initiative that might best be run as a project. The trigger may
come from business planning, an external driver or identification
of a significant problem that cannot be dealt with as a matter of
routine. At the end of the development a decision whether or not to
move ahead is made. This decision is made in the light of the
information gathered during start up and recorded in a Project
Brief. In essence, the Project brief says why the project is
needed, what it must achieve and who should be involved. There is
no set method for conducting start up, in practice it will depend
on the size and complexity of the work and whether, for example,
some form of feasibility study has been done. By the end of project
start-up all interested parties should be satisfied that the
following aspects of the project are clearly defined and
understood:HR Connect (Pty) Ltd.
The reasons for the project Desired benefits and who will
realise them Scope what in and whats out Objectives achievable and
measurable (SMART) Background why does this project need to be done
and why now? Constraints that must be taken into consideration
during the project Assumptions Any known risks Dependencies on
other projects/activities/decisions Stakeholders (internal and
external) Deliverables/outcomes Estimated timescale Estimates for
resources required Lessons learned from similar projects and/or
from people who done similar projects.
Without careful planning it is likely that the project will fail
to achieve its objectives. In a small project it is possible that
one plan may be used to define the entire scope of work and all the
resources needed to carry out that work. For larger projects,
planning will be carried out at different levels of detail at
different times. In all types and sizes of projects, one must be
prepared to re-plan in should anything go wrong. Remember that
plans are essential for ongoing project control and must be used
and kept up to date right through the life of the project.
Plan execution Executing focuses on the processes used to
complete the work defined in the project management plan to
accomplish the project's requirements. Execution process involves
coordinating people and resources, as well as integrating and
performing the activities of the project in accordance with the
project management plan. The deliverables are produced as outputs
from the processes performed as defined in the project management
plan.HR Connect (Pty) Ltd.
Integrated Change Control Now that youve learnt about project
development plans and plan execution, you will understand what
integrated change controls are. Integrated change controls, looks
at factors that influence changes, set to be beneficial to the
project, which determines a change which has occurred and also
manages the actual changes when and if they occur. All projects are
subject to scope change at some time during their life-cycle.
Change control systems, or configuration management, are system
designs and effectively manage the change of scope processes.
Configuration management is a process of identifying and managing
to the deliverables and other work products as they evolve through
the project life-cycle. This helps in ensuring that the proposed
changes are necessary, appropriate and that the integrity of the
system is maintained. This system should establish a framework to
monitor, evaluate and approve changes by the designated people
before the change is incorporated in the project.
HR Connect (Pty) Ltd.
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PROJECT SCOPE MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT SCOPE MANAGEMENT The idea of project scope management,
is that end result needs to be accomplished to deliver or a product
or service it is aimed at. Once all the essentials have been taken
care of, work that the project is aimed at will then been in
progress. Project scope play a role in the stages set out for the
project to continue. During these stages, the shape of the project
is given and the main goal or even the deliverables are described.
These stages would include the initiation stage, planning stage,
organising stage, execution stage and close out. Project scope
management is the defining element of the project, it defines its
bases and what it is aimed at and if the goal that it is meant for
is achievable or not.
The Project scope focuses on the following:
PROJECT SCOPE MANAGEMENT
Scope change c o Initiating Scope planning Scope Definition
Scope Verification n t r o l
Initiation Project Initiation is where you create a sound
baseline for management of a project by taking current
understanding of the what and why, as documented in the Project
Brief, and extending it to include a detailed definition of how,
when, and by whom in a Project Initiation Document.HR Connect (Pty)
Ltd.
The purpose of the PID is to provide the information required by
senior management and stakeholders to enable them to commit to the
resources and timelines proposed. It is a sort of contract between
the Project Manager and SRO/Project Board that defines how the
project will be run.
The PID provides a detailed proposition against which success
can be measured. To do this the PID builds on the approved Project
Brief by defining in detail how the project will be developed and
when it will be delivered. It provides a more detailed
understanding of the costs and benefits of the project and, in
particular, the resources, risks and timelines required for
successful delivery.
Scope planning Scope planning is described as the process of
developing a written scope statement as the basis for future
projects decisions including in particular,, the criteria used to
determine if the project or phase has been complete successfully.
The scope planning outlines the project philosophy that: Defines
the boundary of the project and confirms common understanding of
the project scope amongst stakeholders. Forms the basis of
agreement between client and contractors by indentifying both the
project objective and major deliverables. Is a guide and constraint
for the configuration management process influencing change
control? During the commissioning phase the scope planning willHR
Connect (Pty) Ltd.
help to confirm that the project has been implemented to the
required condition.
Scope definition Scope definition is defined as subdividing the
major project deliverables into smaller, more manageable
components. During this process it will help in implementing the
accuracy of the estimate and assign single responsibility to the
work that is to be done, this may be included in the Work Break
Structure. The scope definition outlines the content of the
project, how the project will be approached and explains how it
will solve the clients need or problems. Scope definition
establishes a method to identify all the items of work that are
required to complete the project. The build method outlines how the
product will be build, WBS may be utilised in this to provide a
subdivision of the scope of work into manageable work packages.
Responsibility can be assigned to the work packaged
accomplishment.
Scope verification Scope verification is defined as the process
of formalising acceptance of the project by the stakeholders. Scope
verification can be related to phases of the project life-cycle.
The scope of work should be formally approved at the end of each
phase. This will be after the feasibility study a concept has been
taken care of and also at the designing and development stage of
the project before the implementation phase. All changes during
implementation phase should be formally approved during the
commissioning phase. The controls are essential to establish the
required condition before implementation and after implementation,
to confirm the required condition has been archived.
HR Connect (Pty) Ltd.
Scope change control Any project that has ever been done, must
have probable had a scope changes. As the project takes its shape
or even develops, it is given as part of learning there will be
changes occurring; these changes might be environmental changes or
technological changes. Since these changes are nearly inevitable,
it is best to prepare to deal with changes rather than be supposed
when they occur and try to resist them. In trying to be proactive
with these changes, for you to be able to control them you will a
clear definition of the project deliverables. Unless the
deliverables are clear when the scope baseline of the project is
established, it is difficult to know when a change is requested
whether it is or not part of the already established project scope.
Many conflicts can be avoided by having a clear scope baseline that
all of the stakeholders have agreed to. Changes can be coursed by
many so many events or variables like government regulations,
change in technology, and change in market place an error or
omission of what was defined in the planning stage or it can even
be by the clients exceptions. For a good basis for good change
management systems starts with a good establishment of the scope
baseline.
HR Connect (Pty) Ltd.
ACTIVITY 1 1. 2. Nora is trying to start the project and needs
to plan accordingly. that is Fred doing to What are the stages that
needed to be followed for this software project to be
hinder the scope planning stage of the project? successful?
HR Connect (Pty) Ltd.
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PROJECT TIME MANAGEMENT
Activity Definition Activity definition refers to the process of
parsing a project into a number of individual tasks which must be
completed before the deliverables can be considered completed.
Activity definitions rely on a number of specific input processes.
These include enterprise environmental factors, organizational
process assets, the project scope statement, the work breakdown
structure, the WBS dictionary, the project management plan (which
consists of the project scope management plan and the schedule
management plan). Through use of these inputs, the activities that
will need to ultimately be completed in order to compete all of the
project objectives can be readily defined, and the activity
definition can be further accomplished through the utilization of a
number of tools and techniques including decomposition, templates,
rolling wave planning, expert judgment, and planning components.
The four ultimate outputs of the activity definition process are
the activity list, the resulting activity attributes, all requested
changes, and any milestones. Activity Sequencing The term activity
sequencing refers within the context of project management to a
dual process. Initially, activity sequencing involves a specific
process of the identification of dependencies among a series of
schedule activities. The next step of activity sequencing involves
the documentation of the said series of dependencies among those
schedule activities. More specifically, activity sequencing
involves the chronicling the dependencies among these schedule
activities and putting them into a logical order. Activity
sequencing also involves a careful examination of the relationships
between schedule activities and their precedence relationships,
which is also provides a tangible benefit to the development of an
accurate schedule. Some techniques of activity sequencing that are
particularly effective include precedence diagramming method, arrow
diagramming method, schedule network templates, dependency
determination, and the application of leads and lags. Some outputs
from activity sequencing include project network schedule diagrams,
activity list updates; activity attributes updates, and requested
changes.HR Connect (Pty) Ltd.
Activity Duration Estimating Activity duration is a noun that
represents the specific quantity of time that exists between the
designated start time and end time of a scheduled activity. For
further elaboration on this definition, please see the definitions
for actual duration, original duration, and remaining duration.
Activity duration should be carefully measured from the start date
to the end date and can be calculated in whatever calendar units
are appropriate given the anticipated timeframe of the project,
such as days, weeks, months, etc. The activity duration can be
established when a project is conceived, or it can be established
when a project is kicked off, and is typically fluid in nature, and
able to be modified if the situation merits and with the agreement
of all parties. Furthermore, the sum total of the activity duration
can also be broken up into smaller parts in the establishment of
project milestones, points at which either the current state of the
project will be assessed, or potentially sum or all deliverables
will be submitted in either final or draft form. Activity duration
estimating represents the act of quantifying the amount of time
that it is anticipated the activity will take to complete. This
phase of the project, that which consists of the estimating of the
amount of time needed to complete all individual schedule
activities, typically and traditionally takes place before a
project is kicked off, during the conception phase, however, it is
possible for the actual activity duration estimating period to take
place later, perhaps close to or even slightly after the project
has officially kicked off, however, even in those cases a draft or
preliminary estimation has typically been made. Estimations can be
made in any calendar unit that seems appropriate, such as months,
weeks, days, etc., the entirety of the activity duration estimate
can be further broken down into subparts or milestones at which
certain elements, or deliverables, of the activity are to have been
completed in final or draft form. Schedule Development Over the
course of a given project, often times, it is up to the project
management team and or the project management team leader to make a
determination that the previously determined and derived schedule
may need to be modified and or tweaked in one way orHR Connect
(Pty) Ltd.
another in order to accommodate one of more schedule events.
This may be because a particular event is running behind schedule
or in other cases because a succeeding events timing has to e
changed one way or another. However, in order to make any changes,
it is important that a comprehensive analysis be undertaken by the
project management team and or project management team leader as to
the schedule activity sequences, schedule activity resource
requirements, schedule activity durations, and any particular
schedule restraints, that must be factored in not only when making
the original schedule, but also in the act of making any subsequent
changes. This is referred to as the process of schedule
development. The project schedule is a fairly broad and all
encompassing concept that while seemingly easy to grasp, must truly
be mastered in order for all members of the project staff, from the
project management team all the way up to the project management
team leader to effectively manage the project in a capable manner
from start to finish. The project schedule typically will include
all elements of the project from the pre-planning stages of the
project through all ongoing project processes that may take place
during the active project period, to any and all project related
process that may occur at the conclusion and or closing stages of
the project. The project schedule, as a project related
input/output mechanism, typically keeps careful track of any and
all planned dates for the performance of particular schedule
activities, as well as any predetermined dates that are expected to
be met and followed up on in regards to the implementation of any
particular project milestones. Schedule Control Over the course of
a given project, often times, it is up to the project management
team and or the project management team leader to make a
determination that the previously determined and derived schedule
may need to be modified and or tweaked in one way or another in
order to accommodate one of more schedule events. This may be
because a particular event is running behind schedule or in other
cases because a succeeding events timing has to e changed one way
or another. However, it is important to understand and keep in mind
that changes cannot be made in a haphazard and reckless manner.
Careful tabs must be kept on all of them to assure that control is
maintained by those in charge,HR Connect (Pty) Ltd.
ACTIVITY 2 Develop a Gantt chart for a current project that you
are currently working on within your company. Then present to the
class your findings
HR Connect (Pty) Ltd.
201 0such as the project management team and or the project
management team leader. The actual process of maintaining control
of the changes that may occur to a schedule is in fact known as
schedule control.
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___________________________________________HR Connect (Pty)
Ltd.
PROJECT COST MANAGEMENT
PROJECT COST MANAGEMENT Rad Parvis F. (2002) explains Project
Cost Management is defined as a method which uses technology to
measure the cost and productivity through the full life cycle of
enterprise level projects, encompassing specific functions that
include estimating, job controls, field data collection,
scheduling, account and design. As the project continues, job
control uses data from the estimate with the information reported
from field to measure cost and production in the project. From
Project initiation to the completion on the project, project cost
management has an objective to simplify and cheapen the experience
of the project.
Resource Planning The term human resource planning refers
specifically to a project management process that involves the
careful and deliberate identification, categorization, and
ultimately, documentation of the entirety of all project roles
assigned to all individual members of the project work team.
Included among this documentation process is a careful delineation
of all of the individual project team members personal
responsibilities in regards to management of the project, as well
as all the specific reporting relationships among all members of
the project team. One additional essential component of the project
management process of human resource planning is a careful and
thoroughly executed encapsulation of all members of the project
team through a complete project staffing management plan. This can
be done through the use of either a formally written document,
which can include a detailed graphically formatted chart, or it can
be in the form of a less formalized document of sorts. Activity
resource estimating is a process in which the project team
carefully compiles a thorough listing of the resources that will be
needed in completing a project. There are six inputs that are to be
used in the process of activity resource estimating. Those six
inputs are the activity list, the activity attributes, the
organizational process assets, the enterprise environmental
factors, and project management plan, and the resource
availability. There are a number of tools that can also be utilized
in most effectively estimating the requiredHR Connect (Pty)
Ltd.
activity resources. Those tools include expert judgment, a
complete alternatives analysis, the use of published estimating
data, project management software, and the use of bottomup
estimating. The resulting outputs from this process include
activity resource requirements; activity attributes updates,
requested changes, a resource breakdown structure, and the
development of a resource calendar. The successful utilization of
activity resource estimates will help assure that enough resources
are acquired without waste and excessive expenditure. Cost
Estimating When creating a budget for a job, project management
must be able to engage properly in the process of cost estimating.
This is a calculated projection of the cost for the materials
required by the project. The materials considered in cost
estimating can be any resources required for the job such as raw
materials or employee wages. It is critical for a true
approximation of the production costs that those in project
management take into account all resources which might be used.
Neglecting certain materials could result in cost estimating which
is too low. This increases the likelihood that the budget will be
exceeded. Accurate cost estimating by project management needs to
be done often when creating a bid for the project. Too high of an
estimate, and the bid could be lost to another company. A bid which
is falsely low will result in unanticipated costs the client will
have to pay, and that could damage the chances of future business
with that customer. Knowing the true price of the project is
important for anyone in management in order to create a budget for
the job and to make bids.
Cost Budgeting The idea of managing a project can seem like a
daunting task, however, provided with the right tools, any project
can achieve success. When undertaking any type of project
management, there must be a working set of guidelines and
objectives that must beHR Connect (Pty) Ltd.
followed, in order to guarantee success for that particular
project. An essential element when entering into any type of
project management is cost budgeting. To create an effective cost
budgeting plan, a total budget for the entire project must first be
established. To achieve this, each area of the project must be
analyzed and given a particular cost estimate. Once that is done,
the total sum of cost assessments, whether those costs are in
individual projects or in work packages, are combined to establish
a certain parameter to provide a working guideline for the budget.
These guidelines are set in place so that the allotted costs are
divvied up amongst the appropriate project needs. This will ensure
that the budget goals are being accurately met. The process of cost
budgeting is a simple, yet necessary process of any successful type
of project management. Cost control When it comes to project
management, whether or not the management team exercises cost
control can make or break a projects budget. Cost control can best
be achieved by setting up a budget which is consistent with plans
for actual spending. Although it might sometimes be necessary to
make adjustments, it is important to adhere to the budget as
closely as possible during the project management process. Another
important aspect of cost control involves collecting actual costs
and regularly creating reports for those expenditures. In addition,
it is essential to accurately report and regularly assess progress
throughout all phases of the project. It is also advisable to keep
a close eye on cost trends as well as anticipating costs of work
that still remains to be completed. Once determined these figures
should be closely compared to estimates for final completion of the
project. Cost variances or approved budget changes must also be
accounted for to maintain proper cost control. Any discrepancies
that are not within the bounds of budget constraints should be
promptly brought to the attention of the project management
team.
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201 0
PROJECT QUALITY MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT QUALITY MANAGEMENT
Quality Planning In terms of project management, the concept of
quality refers specifically to the degree or amount toward which an
inherent or embedded number of traits fulfills a number of
predetermined requirements that have been deemed necessary. Quality
can also be defined through the use of a interpretation to refer to
the non-inferiority, superiority or usefulness of a given item or
concept. Across many industries, manufacturing for one, but also
applicable in the area of project management, it is commonly stated
that quality drives productivity. Indeed, often times it is obvious
that improvements in productivity do inherently lead to greater
revenues, opportunities for employment, and technological advances.
The concept of quality can also refer specifically to a finished
part or product, regardless of where that part or product currently
stands in the process. Inspection, which is usually being referred
to when the concept of quality insurance is bandied about, is of a
secondary preference to that of process control because process
control refers to maintaining the quality of the ongoing process,
rather than attempting to assess the quality of the end product. It
is very important to make sure during the close out of you project
have not delivered what is expected but the quality of the product
is also taken care of. Planning for quality requires attention to
details. The goal of quality is to ensure that the output of the
project will perform up to what it is suppose or even developed
for. In planning the quality dimensions, include specifications for
the quality and types of material to be used, the performance
standards to be met and the material to be used, the performance
standards to be met and the means of verifying quality such as
testing and inspection.
HR Connect (Pty) Ltd.
Quality Assurance Throughout all of industry, one constant
significant element exists for companies to ponder over, and that
is the act of making sure that each and every item of note is done
or produced according to a specific and rigid standard that has
been predefined. This is the act of quality assurance. In terms of
the successful management of projects, quality assurance is quite
significant. Performing quality assurance (which is also known by
the two letter anagram QA), is an essential par of the project
management process. During the process of quality assurance, the
project management team and or project management team leader
undergoes the process of applying the previously planned and
systemic quality related activities (some examples of these are the
concept of auditing or peer review), for the purpose of making sure
that the current scenario fits within those parameters, and
undertakes efforts to employ all of the previously designated
processes in order to actually meet those parameters. Quality
Control Control refers to a specific technique that involves making
measured and deliberate comparisons of the actual resultant
performance with what was expected to be the planned performance.
Control also refers to a systematic method of analyzing the
variances that develop as a process unfolds. Control can also refer
to the technique of assessing the trends that may develop during a
specific activity or task or that begin to unfold during the
broader time frame of the entirety or a project, as well as a
thorough evaluation of all possible alternatives and a
determination as to what corrective action should be taken to help
turn a project back into a direction that is more conducive to the
attainment of whatever ultimate goals and results are expected
and/or anticipated. Control can also refer to a fixed point during
the course of variant activities, such as utilization of the same
type of machines to develop different types of products. Control
limits refer to the wide area of variation that can exist when
plotting the actual data that has been charted. The control limits,
more specifically, refer to the three standard deviations on either
side of the mean (this mean is also known as the centerline), of
aHR Connect (Pty) Ltd.
normal distribution of data that has been laid out, or plotted,
on a control chart. These control limits will typically reflect an
expected variation in the data. These expectations can be derived
from past experiences, meaning, the deviations that have occurred
when conducting similar projects of specific work tasks within
then, or they can be derived from nothing more than careful
consideration and discussion among the team. Regardless, it is
important to utilize these control limits as it better will prepare
the control team for possible variations and make them easier to
deal with and compensate for. It is important to develop control
limits at the outset of a project and/or work task.
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201 0
PROJECT HR MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT HR MANAGEMENT Think of a Human Resource department as
the nucleus of a business. This is where people are hired,
interviewed and paid. This is where staff find answers to personnel
questions and the way forward in regards to human capital. Project
HR Management is the process whereby a business will make the most
effective use of the a its people involved with a specific project.
This may include all the project stakeholders from customers,
sponsors, individual contributors etc. This is divided within the
following sections:
Organizational Planning This is a process whereby an
organization will identify, document, and assign project roles,
responsibilities, and reporting relationships. This may be done to
individuals or to groups either apart of the company or externally.
Majority of organizational planning on projects is begun on the
earliest project phases. However, the results of this process
should be reviewed regularly throughout the project to ensure
continued applicability. Organizational planning is often tightly
linked with Project Communication planning since the projects
organizational structure will have a major effect on the projects
communications requirements
Staff Acquisition This is whereby the business obtains the
necessary human resources needed for a particular project, whether
individuals or groups. Depending on the project Many times, the
best resources may not be available. Thus it is the project
management teams responsibility to make sure that sufficient human
resources are allocated to meet project requirements.
Team Development Team development is a process of developing
individuals or groups in order to enhance necessary skills for
project performance. This involves the ability of relevant
stakeholders,HR Connect (Pty) Ltd.
as well as team. Individual development (both managerial and
technical) is the foundation necessary to develop a team. This is
critical to the projects ability to meet its objectives. Team
development on a project is often complicated when individual team
members are accountable to both a functional manager and to the
project manager so necessary management must take place in order to
critical assess a project. This is usually the responsibility of a
Project Manager and is generally the responsibility of the project
manager. This should be done throughout the project As a brief
summary, the below table illustrates the various components of
organisational planning, staff acquisition and team development and
how it would effect a project in regards what needs to be inputted,
tools and techniques and their output.. PROJECT HUMAN RESOURCE
MANAGEMENT ORGANIZATIONAL STAFF ACQUISITION TEAM DEVELOPMENT
PLANNING Inputs Project interfaces Staffing requirements
Constraints Tools and Techniques Templates Human resource practices
Organizational theory Stakeholder analysis Outputs Role and
responsibility assignments Staffing management plan Organization
chart Supporting detail 1. Inputs Staffing management plan Staffing
pool description Recruitment practices Tools and Techniques
Negotiations Pre-assignment Procurement Outputs Project staff
assigned Project team directory 1. Inputs Project staff Project
plan Staffing management plan Performance reports External feedback
2. Tools and Techniques Team-building activities General management
skills Reward and recognition systems Collocation Training 3.
Outputs Performance improvements Input to performance
appraisals
2. 3.
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201 0
PROJECT COMMUNICATION MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT COMMUNICATION MANAGEMENT For a project to succeed there
is a continuous need for communication, to issue instructions,
solve problems, make decisions, resolve conflicts and keep everyone
supplied with the information they may need. The PMBOK defines
project communication management as the process required ensuring
timely and appropriate generation, collection, dissemination,
storage and ultimately disposition (disposal) of project
information. It provides the critical links among people, ideas and
information that are necessary for successes. Effective
communication is a critical success factor for any project.
Communication ensures that stakeholders are always informed Project
communication start at the planning phases While communication is
always mentioned in the plan, some projects require a separate
communication plan
Means of communication: Personal interaction Documentation and
sign-offs Meetings and minutes Email or memos Reports: status and
progress Forecasting The project notebook or diary
Something important to note is that communication between two
people is fairly simple. However add another person and you
increase the complexity by five.
HR Connect (Pty) Ltd.
Communication Planning A communication plan prescribes the
methods that will be used to gather information. It help pulls the
project together. The project manager is responsible for not only
establishing the project organisational structure, but to develop
the project communication plan and lines of communication. It
indicates the documentation and how it is collected and the filing
structure. It details the distribution structure, describes the
information to be distributed. Outlines production schedules for
watch type of communication. Describes what methods will be used to
assess information between scheduled communications. It will mainly
help outline the following: Who ( sender and receiver
responsibility and authority, lines of communication) What (scope
of communication and format) How (email, document, telephone,
meeting, presentation) When (schedule) Feedback Filing
Information Distribution The projects information is the
lifeblood of the communication plan, projects plan and control
system. This should be applied to all lines of communication. For
the flow of information to be effective, all parties must be aware
that they are part of a link, and if broken, it will dampen the
process. The quality of information will directly link to the
weakest link.
Performance Reporting Performance reporting or project reporting
is a process whereby project data is collected, processed and then
reported. This can be done in various ways such as the structure,
frequency and circulation of reports, which must be established as
early as the start upHR Connect (Pty) Ltd.
phase of the project. This is used to assist with problem
solving and decision making at various levels of management so to
ensure set goals and objectives are met. The following are some of
the regular reports at your disposal: 1. Status reports: This
report is merely a report to quantify the position of a project.
In
other words to see how it is going, within the process. It may
focus on specific areas such as time, cost, and quality of the
project. Example of Status report: Activity 101 Description
Foundation Status Material ordered work starts on Tuesday
2.
Variance reports: This report focuses on what has actual
occurred and what has
been planned for the project and the difference between the two.
However it important to note that it does not look at the
parameters when performing this calculation. To achieve this, the
variance must be put into a percentage of the planned value.
Example of a Budget Variance Report: Activity 100 200 Original
Budget R10 000 R15 000 Revised Budget R12 000 R13 500 Variance R2
000 (R1 500)
HR Connect (Pty) Ltd.
Example of a Schedule Variance Report: Activity Original Budget
100 200 3. R1 000 000 R 400 000 Revised Budget R1 010 000 R 420 000
Schedule Variance R10 000 R20 000 Schedule Variance % 1% 5%
Trend Reports: Using historical data to project the direction of
the project so that the
project manager can get a better feel of what may occur. This is
very different to the status report since the status report will
tell the manager where the project is, but not where it is going.
4. Earned Value Reports: This report integrates the variable
parameters of cost with
time or man-hours with time. This enables the planner to model
the various parameters more realistically. Example of Earner Value
report
HR Connect (Pty) Ltd.
5.
Exception Reports: To make the project manager aware of an
occurrence or event
which may be outside of a his/her control. This maybe set out by
the project manager as a guideline for the planner whereby he is
ably to filter out important information 6. Monthly Reports: This
is important for a long project and assists the project manager
in establishing an excellent forum to quantify what is happening
on the project and report it to management and stakeholders. This
would entail a round up of the weekly progress meetings, any other
special meetings and overall picture. An example, highlight
specific trends or variance, identify major events within that
month so that management and stakeholders can plan ahead. Having
structured reports helps include important information that a
project team may require. It should be quick, and easy to read,
since a project is not about reporting but to make use at any given
time.
Administrative Closure This is the process of preparation of
closure documents and process deliverables. This includes the
release and redistribution of the Project Resources. The objective
to make sure that the project is accepted, approved and closed. The
process will include: The Project Manager ensures that the project
is approved and accepted by the stakeholders. Assess the success
criteria that was identified during the planning stages and
determine if criteria was met. All documentation and records,
physical or electronic, need to be systematically reviewed,
organized and archived. The Project Manager gives performance
feedback to team members. The Project Manager releases resources.HR
Connect (Pty) Ltd.
Guidelines In the absence of a formalized project close out
procedure, some projects (or project phases) risk "never ending"
and the differences between project work and ongoing operations and
maintenance get blurred. Evaluate the product/service's conformance
and satisfaction of the requirements. This will help in obtaining
project and product acceptance from the customer. Identify and
highlight any Lessons Learned and best practices that could be
useful to other project teams. Document and communicate Lessons
Learned and best practices. Gather data required for updating or
adding to your organization's metrics. Metrics can include such
information as: o o o Number of objects, classes, programs, modules
and level of complexity Skill-set required to complete different
task types Level of effort required for different task types by
resource type
All the metrics and documentation needs to be reviewed by
someone external to the project. This needs to be archived in the
central repository.
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201 0
PROJECT RISK MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT RISK MANAGEMENT Project Risk management is defined by
PMBOK as the systematic processes of identifying, analysing and
responding to project risk(throughout the project lifecycle). This
means maximising results of positive events and minimising the
consequences of adverse events. The APM book defines risk as
factors that may cause a failure to meet the projects objectives
Project risk management strives to reduce the chances of failure.
So in order for this occur, it is important that an outline of
project risk is understood, as well as the methodology for reducing
risk is done at an acceptably level while identifying potential
opportunities as well. The reason why this is such an important
aspect of project management is for the fact that many business and
projects tend to only meet business projects half way or partially.
This emphasises the need for a proper risk assessment while a
project is initiated, ongoing and during control of the project
lifecycle. Some helpful suggestions when tackling risk within a
project: Ensure commitment and involvement from management and
users Use smaller project teams with a high level of skill Limit
the number of new things within a project e.g. new technology
Frequent communication to all stakeholders On going risk workshops
that will include all the relevant stakeholders
There are a few other important things to take into
consideration when tackling project risk. Firstly, internal and
external risk. Internal risk entails things that can be controlled
or influenced by the project team, where as external risk are
things beyond the control or influence of the project team
HR Connect (Pty) Ltd.
Risk Planning The risk management plan is a formal approach to
the process as opposed to an intuitive approach and documents how
the project team will address risks within a project. This process
will include the following: Define objectives by utilizing the work
breakdown structure (WBS), you are able to identify activities
within project to define goals and objects of the project. This
forms basis. Identify the risk uncertainty or constraint that may
hinder the projects success, which will impact the objective of the
project Quantify risk perform risk evaluation and assess level of
risk and how it will effect the project Develop a response how will
the project team react to risk, which could be an arrange of things
or combination i.e. eliminate, deflect, mitigate, accept etc Risk
control by having a risk control system, you are able to implement
the best course of action for any particular risk that may occur.
This could be training workshops to project team, communication to
stakeholders etc. This should occur on a continual basis to
constantly assess risks within the project.
Risk Identification Risk management is the hardest part, but
most important part of project risk management process. It is a
systematic process to ensure nothing is overlooked. The reason is
clear, because without identifying the risk, it will be excluded
from the entire project and further analysis would be omitted from
the project that could be crucial to the well being of a set
particular project. Another important factor to realise is that
risk identification is not a oneHR Connect (Pty) Ltd.
time even but continuous, since a project develops and evolves
and without recognizing it during the whole process, it too can
hinder a successful outcome. After objectives have been listed,
additional aspects should be added. They are cause and impact
scenarios. Cause of impact is if a particular happens, what impact
will it have on the objectives; Impact caused by is what could
cause an undesirable impact, or failure? Special techniques used to
assist in identifying risk, include: Analyising historical data and
records Safety reports Structured questionnaires and interviews
Brainstorming Flow chart Systems analysis Scenario analysis
Structured checklist
Having the necessary experience in life will help to identify
risk within a project. So greater awareness may produce better
outcomes. Looking at others that may have paved the way forward is
also key, so identify risks involved. Finally looking at he risks
and seeing where opportunity can be developed. Many great projects
manage to have great success, if this occurs.
Qualitative Risk Analysis This is when a relative measure of
risk or asset value based on ranking or separation into descriptive
categories such as low, medium, high; not important, important,
very important; or on a scale from 1 to 10 is given to a particular
project. It is designed for the purpose of enhancing one's
awareness of potential problems, and can assist one in analyzing
these risks.HR Connect (Pty) Ltd.
Quantitative Risk Analysis Having identified the range of
possible risk, it is important to establish how much risk there
maybe. This is to assess where the main concerns of risk are and
what resources are at the project teams disposal. This is when a
risk priority table should be introduced to see what should be
addressed first, and in which order. Looking at impact of risk,
frequency of risk and probability of risk is all key aspects when
addressing risk management.
Risk Response Planning
After identifying, quantifying and prioritising risk, the next
important step is developing an appropriate response. After the
assessment of risk, establishing level of risk and what is required
criteria, there are various range of responses that can be used
during the planning phase: Eliminate risk This is a process whereby
the project team will look at all angles to avoid risk in its
entirety. This is done by either removing the cause, or an
alternative cause of action. The best way to deal with this is
during the concept and designing phase because cost is low and
influence is high.
HR Connect (Pty) Ltd.
Mitigate risk this involves reducing the risks probability and
impact on a project. Various methods could be used to achieve this.
That includes using proven technology, developing prototypes,
models, simulations etc.
Deflect risk this is away of transferring part or all of risk to
another party, whether through contracting, retention, bonding and
insurance Accept risk (with contingency plan) accepting risk should
be a last resort, in that it can heavily impact the project. But if
required, certain contingency plans should be set place to avoid
large repercussions.
Turn risk into an opportunity
All these response cost money, so a cost benefit analysis should
be developed to assist in establishing a more cost effective
solution.
Risk Monitoring and Control Risk Monitoring and Control function
is all about implementation of a well thought through risk
management plan. This is when the plan is communicated to all
necessary stakeholders, and followed up with training if need be.
It should be monitored on a continual basis and updated where
necessary so that all parties can learn from the process. This
process may cover the following; change in the scope of work,
changes in the building methods, changes in the team members,
changes in the suppliers etc This may be included in a weekly
progress report meeting, so to stimulate discussion, and best
course of action
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201 0
PROJECT PROCUREMENT MANAGEMENT
HR Connect (Pty) Ltd.
PROJECT PROCUREMENT MANAGEMENT The PMBOK defines procurement
management as ..the process required to acquire goods and services
APM bok defines procurement as the process of acquiring new
services or products.. So it is deals with acquiring goods and
services necessary for a project. This may include things such as a
drawings, material, equipment or professional services from a
number of vendors or suppliers etc. The procurement schedule will
take place after the Gantt chart has been drawn up. The critical
path or long lead time items must be carefully look at when
embarking on the procurement schedule. As this may delay the
project.
Procurement Planning Procurement planning is viewed from a
buyers perspective to identify what products and services are best
procured outside the project organisation. This strategy would
include the following: What must be procured? How much to procure?
When is it required? When to procure? How to procure?
(contract)
This will be established by the Buy-or-make principle or
decision making process.
HR Connect (Pty) Ltd.
Solicitation Planning Solicitation planning is defined as
identifying targets for quotes, bids or proposals. Within
procurement management it is the process of preparing the necessary
documentation to support solicitation. This would include a
procurement management plan, and other planning methods. Here a set
standard form and expert judgement will be used, as well as a
evaluation criteria to rate proposals, which may be subjective or
objective.
Solicitation
This is the process of obtaining information (bids and
proposals) from prospective sellers on how project needs can be
met. Most of the actual effort in this process is expended by the
prospective sellers, normally at little or no cost to the project.
This will include procurement documents and qualified seller lists,
have bidders conferences and advertising, as well as Proposals
prepared by the sellers explaining how the seller can provide the
requested product or service. Contract Administration
The process of ensuring that the seller's performance meets
contractual requirements. This includes the contract, work results,
change requests, and seller invoices. This is when project team
looks at the contract change control system, performance reporting,
and payment system and the necessary correspondence, contract
changes, and payment requests are made.
HR Connect (Pty) Ltd.
Contract Close-out The process of completing and settling the
contract including any resolution of open items. This includes
contract documentation, performing the necessary procurement
audits, contract file and formal acceptance and closure.
ACTIVITY 4: You are required to prepare, as a group of 4- 6
students, a tutorial/practical document of a project, developed
from the scratch. It must be a new concept and unique, so think
creatively. It must feature all the related aspects such as tools,
time frames, budgets, factors that could possibly influence your
project and who the relevant role players are. The purpose is to
propose your project to t he decision makers who could decide to
buy into your project or not. This will be presented to the class
for at least 20 minutes in a given time slot. You must make use of
PowerPoint, Flipcharts or overheads. You are allowed props, dress
ups, posters etc. You
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BIBLIOGRAPHY
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BIBLIOGRAPHY Burke, R, 2006, Project Management: Planning and
Control Techniques; 5th edition, Cape Town, Blue Weaver Marketing
and Distribution.
http://en.wikipedia.org/wiki/Project_management
http://en.wikipedia.org/wiki/File:Project_development_stages
http://www.project-management-knowledge.com/definitions/c/cost-vriance-cv/
www.pmi.org www.pmisa.org.za www.4pm.com www.pmboulevard.com
www.eligoldratt.com www.informit.com
http://www.projectconnections.com/templates/pmbok/knowledgeRad,
Parvis F. (2002) Project Esimating and Cost Management
http://www.anticlue.net/archives/000737.htm
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imgurl=http://www.zgraggenassociates.net/sitebuildercontent/sitebuilderpictures/im
age002.gif&imgrefurl=http://www.zgraggenassociates.net/id2.html&usg=__x_iF5pBwgB2eF8ewmL
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HR Connect CC HR Connect (Pty) Ltd. 31 August 2010