Project Management Foundations M1U1
What is a project? “a unique endeavour to produce a set of deliverables within a clearly specified time, and within cost an
quality constraints” OR “a temporary endeavour undertaken to create a unique product or service” (PMBOK).
PM = a process that aims to ensure the successful completion of a project. An iterative series of events, with the goal of
producing a successful product or deliverable. Think of these events as a cycle (Shewhart and Deming’s cycle) a process
for quality improvement. PDCA (Plan→Do→Check→Act): aims to provide businesses with a method of controlling and
continuously improving their processes.
The following aspects should be prioritised if a project is to be successful:
• Strong leadership: categorised by a single point of communication, strategic direction, responsibility, and balancing
stakeholder interests.
• Integration: a smooth transition between design and delivery, and well planned and executed concurrent engineering.
• Client-orientation: The project must be strong managerially and financially, and balance long- + short-term demands in
order to ensure sustainability.
• Project viability: This requires the ability to assess the potential of projects, and is best learned through inter- and
intra-project learning.
Important: PM is a political process. It involves the alignment of stakeholder missions, the establishment of agreed
definitions, the negotiation of scope, the establishment of strategy, shared risk and rewards, and the creation of trust. PM
as a field is defined by ambiguity and the challenges of the context in which it occurs.
Principles of project management
Defining a project
Projects can be distinguished from the standard operations of business in the following ways. Projects are:
• Unique: Every project is different, and involves different resources.
• Limited in time: A project has a defined time scale, including clear start and end dates, and a carefully planned schedule
• Limited in budget: A project will be allocated financial resources, with which all necessary resources must be procured.
• Risky: Project success is uncertain, therefore projects are risky.
• Able to effect positive change: The project should have a clearly defined purpose which it sets out to achieve.
• Overseen by a single person: The project manager or leader is responsible for the whole project.
• Completed by teams: A project team will be formed to address a project.
Commissioning a project
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Reasons why a project may be commissioned (newly produced and created):
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Strategic initiative: the decision to rebrand a business would require careful coordination to ensure all branches
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implement the change simultaneously (challenging in an international business). Market demand: an oil company may
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commission a project to build a new refinery because of petrol shortages. Organisational need: a structure needs to
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change, or a process needs to be implemented. Customer request: customers required more power than Eskom was
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able to provide, so it was necessary for Eskom to build a new power station. Technological advancement: may be
necessary to create a new video game that is compatible with new hardware/software. Legal requirement: implementin
employment equity or affirmative action based on new legislation.
Defining PM
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“the application of knowledge, skills, tools and techniques to project activities in order to meet the project requirements” (t
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achieve the outcome within the time frame without compromising things). Comprises of: A set of skills and knowledge,
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including specialist experience. A suite of tools, such as document templates, registers, planning software, modelling
software, checklists, and forms. A series of processes, which can help project managers to monitor and control the
project, such as time management, cost management, quality management, change management, risk management, and
issue management processes.
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With PM, change can be introduced most efficiently by:
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Defining what has to be accomplished (with time, cost, quality); Developing a plan to achieve these + working this
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plan, ensuring that progress is maintained in line with these objectives; Using appropriate PM techniques and tools to
plan, monitor and maintain progress; Employing persons skilled in PM – including normally a project manager – who a
given responsibility for introducing the change and are accountable for its successful accomplishment.”
,•PM includes work processes that initiate, plan, execute, and close work. •Work processes require tradeoffs among the
scope, quality, cost, and schedule of the project. •PM includes administrative tasks for planning, documenting, and
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controlling work. •PM includes leadership tasks for visioning, motivating, and promoting work associates.
[ Identify potential projects Prioritise among the potential projects] –What value does each potential project bring to
the organisation?–Are the demands of performing each project understood?–Are the resources needed to perform the
project available?–Is there enthusiastic support both from the external customers and from one or more internal
champions?–Which projects will best help the organisation achieve its goals?
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Successful Projects
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Project success = creating deliverables that include all the agreed upon features Outputs please the project’s
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customers Customers use the outputs effectively as they do their work (meet quality goals) The project should be
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completed on schedule and budget (meet constraints) Completed without heroics People who work on the project
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should learn new skills + refine existing skills Organisational learning should take place + be captured for future project
Reap business-level benefits like development of new products, increased market share, increased profitability,
decreased cost, etc.
Principles of PM
Characteristics of PM = Time, Cost, Quality → PM is concerned with balancing these and the relationship between them i
referred to as The Iron Triangle. A project manager’s role is to balance time, cost and scope, while ensuring quality. Some
project managers use these terms to refer to time, cost and scope. Scope refers to the set of features and functions that
will be provided as part of the project.
Frigenti and Comninos (2005) propose a framework - projects are divided into one of four categories: Showing the clarity
the objective, and the extent to which the tools and process of project management are well developed. Paint by
numbers-type projects, categorised by clear objectives and well-defined processes, are likely to go as planned, as there
have been many similar projects. Contrastingly, quest-type projects have a clear objective, but lack clear processes. A
project team working on a quest-project knows what they want to achieve, but is uncertain of how that can be done. This
framework is helpful in determining the best way of managing a project, and whether there are best practices or previous
examples that can be followed.
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Project management activities and processes
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Planning = Objectives and stategates; Organisation; WBS; Resource Allocation
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Scheduling = Precedence Diagrams; Project activities; Start- and end-dates
Controlling = Monitoring; Research; Change management
The project manager is responsible for ensuring that each of the many project activities are completed.
- What are the core activities of a Project Manager?
B : planning, scheduling and controlling all aspects of a project (correct) •Diverse set of skills. •Management,
leadership, technical skill, stakeholder relationships, conflict management. •Manages the project life cycle processes.
10 Knowledge Areas outlined by PMBOK: ⭕ 1. Project Scope Management involves specifying the requirements that ar
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necessary to achieve the project objectives, as well as the overall definition of what the project is meant to achieve. It
involves ensuring that the project includes all the work required to reach successful completion. 2. Project Time
Management involves estimating the time needed to complete all activities in a time-based schedule. It involves several
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techniques, including: • Activity definition; • Activity sequencing; • Activity resource estimating; • Activity duration estimatin
• Schedule development; and • Schedule control. 3. Project Cost Management includes all the processes involved in
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planning, estimating, budgeting, financing, funding, managing and controlling project costs to ensure that the project can
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be completed within a specified budget. 4. Project Quality Management is required to ensure that the project is meeting
the requirements of the client and that project organisation is as effective and efficient as possible. 5. Project Risk
Management involves identifying unexpected events that could have a negative or positive impact on the project in some
way. It involves developing plans for dealing with those risks if they occur, as well as monitoring the status of the risks on
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an ongoing basis and responding when necessary. New plans should also be put in place for risks that are identified durin
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the project. 6. Project Human Resources (or Talent) Management involves managing the team members who work on
the project to ensure that their skills are being used effectively. 7. Project Communications Management is essential, a
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it takes up the majority of a project manager’s time. It involves all of the processes and procedures needed to ensure that
all aspects of the project status are communicated clearly to those involved. 8. Project Procurement Management
,involves acquiring the services and products necessary when in-house skills and resources are not available. ⭕ 9. Projec
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Integration Management is the “big picture” Knowledge Area that links the project life cycle activities with the Knowledge
Areas. Project Integration Management refers to the initiation and closing phases of the project as well as the overall
monitoring and controlling processes of Knowledge Areas at a higher level. In addition, this Knowledge Area involves
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activities leading to the completion of the project charter, project plan, stakeholder identification and closure activities.
10. Project Stakeholder Management refers to the management of stakeholders who have an interest in the project,
especially those who might have the most influence on its outcome. This Knowledge Area involves identifying
stakeholders, prioritising their needs and influence, and managing their expectations.
The Iron Triangle (Triple Constant)
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A triangle that defines the constraints in PM. They define a project.
Scope (how much work?) Time (by when?) Cost (your investment?) Quality(depends on the other 3).
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- What makes projects different?
= Projects vs operations: Projects are temporary and have both routine and unique characteristics. Operations
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consist of the ongoing work needed to ensure that an organisation continues to function effectively.
+ Soft skills and hard skills: Soft skills include communication and leadership activities. Hard skills include risk
analysis, quality control, scheduling, and budgeting work (•A successful project manager needs both soft and hard skills
along with the judgement of when each is more necessary.•Training, experience, and mentoring are instrumental in
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developing necessary skills.)
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+ Authority and responsibility Projects are most effectively managed with one person being assigned accountability
Project managers negotiate with functional managers A project manager needs to develop strong communication an
leadership skills to persuade subordinates to focus on the project when other work also beckons.
Functional manager – “someone with management authority over an organisational unit. The manager of any group tha
actually makes a product or performs a service.”
To produce a high quality project, you need the right scope that’s on time and budget. If Time and Cost are inflexible then
you need to control the Scope. Scope Creep - when more and more needs to get done without the Cost or Time being
changed. Unique, limited in Time and in Budget, Risky, able to effect positive change. A project has a unique combination
of stakeholders - “persons or organisations that are actively involved in the project, or whose interests may be positively
or negatively affected by the project”
PM in Business
Business Projects
It meets all the parameters of the standard definition. It is temporary, produces a unique product, service, or result, and ha
a defined beginning and end. Therefore, building an office park (construction) is a project, as well as producing a new
product for a company (business). A business project is specifically aimed at achieving a business objective. A new
marketing campaign to increase sales of a flagging product would, therefore, be a business project, because it meets the
business objective of increasing sales of a specific product. Likewise, the development of a new product is a business
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project, as is a project aimed at improving the way the business handles its day-to-day operations.
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PM in business has a strong focus on these aspects/attributes: Active sponsor Top Management
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support Strong people management Strong team management Aligned to other projects Aligned to process and
products Organisational understanding Value driver Aligned to business plan.
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The Reason Why Projects Fail
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Not enough resources are available for project completion Not enough time has been given to the project Project
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expectations are unclear Changes in the scope are not understood or agreed upon by all parties involved
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Stakeholders disagree regarding expectations for the project Adequate project planning is not used.
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Success terminology: Product success: whether or not the final product produced as a result of the project is successfu
It therefore happens after the project is over. PM success: This is the “journey” through the project, using the iron
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triangle to determine if the actual project is a success over the duration of the project’s life cycle. PM success doesn’t
necessarily mean product success (and vice versa) but the two are often linked. Project success: a more vague term. A
broad measure that takes into account both the previous successes mentioned.
, Project Life Cycle
•All projects go through predictable stages called a project life cycle. •Allows for control to assure that the project is
proceeding in a satisfactory manner and the results are likely to serve its customer’s intended purpose.
Project life cycle – “a collection of generally sequential project phases whose name and number are determined by the
control needs of the organisation or organisations involved in the project.”
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Customer – “the person or organisation that will use the project’s product or service or result.”
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A project life cycle typically consists of a series of phases that the project passes through from the time it is initiated to
the time it is concluded. The initiation of the project, the planning, the execution phase and the closure phase.
The PMBOK® (PM Body of Knowledge) Process Groups:
• Initiating process • Planning process • Executing process • Monitoring and controlling process • Closing process.
A project can have 3 phases and each phase has all the process groups. Like Phase 1 is “initiation”, phase 2 is
“intermediate” and phase 3 is “final”. Each of these phases include all 5 Process Groups.
Waterfall Project Life Cycle
• Linear and Sequential life cycle • Distinct goals for each phase • One the project has started you can't turn back to a
previous phase (like a waterfall can’t run up the hill) • Management control • Requirement: you know what you want!
Contemporary Life Cycles
•Why would there be different ones? •What could be a problem with Waterfall? •Traditional: goal and solution are clear
•Agile: goal is clear, solution is not •Extreme: neither goal nor solution is clear •Emertxe: The goal is not clear, but the
solution is. Emertxe = Is extreme spelt backwards, so the project is extreme but done backwards.
Initiating a Project M1U1
A crucial first step to any successful project.
Two main processes: • The development of a project charter • The identification of stakeholders.
Why is there a need for initiation?
• Increased risk of failure • Scope creep • Excessive spending • Late delivery.
Inputs and outputs of the initiation phase
The inputs of the initiation phase may include several information artefacts that have caused the project to be initiated.
These inputs may include the following:
• The strategic plan, which informs the business opportunity or problem. This will have been created as a result of a new
strategy or directive from the business’s board or executive committee.
• Project selection criteria, which some organisations have detailed. These criteria will be used to establish whether a
project should be kicked off, especially if there are multiple options available for review.
• Historical information about similar projects, or the data that informs why the project is necessary.
• The product description, if the project is in new product development.
The outputs of the initiation phase include:
• The terms of reference (project charter);
• The identification or appointment of a project manager;
• The prioritisation of the constraints of the project; and
• The list of assumptions made in the project charter.
The order that outputs of initiation phase are created: Develop BC→Undertake Feasibility Study→Establish project charte
The Business Case (BC)
A detailed document that compares the costs, benefits, and risks of alternative approaches that could address the
business need, and provides a justification for why a certain project is best suited to this task. At its core, a business case
is the reasoning and justification for initiating a specific solution to a problem. This is the document that allows senior
management to analyse the objectives and expected benefits of a proposed initiative and its alternatives, and come to a
decision on whether or not they are willing to give the green light for a specific project to begin. The BC aims to highlight
how the resources (money, time, effort) expended on developing and running a new solution can satisfy a specific busine
need. BC’s should be presented as written documents or as formal presentations. The complexity of a BC depends on a
number of factors, such as the size of the problem, the impact it might have, the complexity of the problem, and the amou
of organisational knowledge that exists about the problem.