Project Management
Project management techniques
Study unit 1
Glossary
& Process – a linear sequence of steps that are carried out to achieve defined objectives. Project – a
temporary endeavour undertaken to create a unique product, service or result.
& Project Plan – the project plan integrates all the individual plans to develop an optimum arrangement.
& Project Management – The management of a project using the project management principles, and
the special planning and control tools and techniques.
& Project Manager – the person appointed to manage and achieve the project’s objectives.
4P’s of project management
• Phases
- The project life cycle explains how the project timeline can be subdivided into a number of phases
with different deliverables, and how the level of effort, level of influence and costs vary over the
project’s life cycle.
• Processes
- The project management process explains how the project phases can be subdivided into a
number of management process groups to initiate, plan, execute and close the phase.
• Plans
- The project plan explains how the management processes can be subdivided into a number of
individual plans that combine to form the baseline plan.
• People
- The project organisation structure explains how the leadership and management of the project
personnel, and other interested stakeholders can be subdivided into the project organisation
structure.
What is a project
& A project is a temporary endeavour undertaken to create a unique product or service. It has a
definite end and is also unique in the product or service which distinguishes them from other similar
products or services.
Temporary- every project has a temporary end
Unique- product/service is different in some distinguishing way
® Established objectives
® Defined lifespan
® Several people involved
® Something NEW to be done
, ® Specific time, cost, performance requirements
Distinctive characteristics of a project:
• Client and projects sponsor: A project has a project sponsor or program manager (or client)
who has developed a business case to address certain corporate requirements and corporate
strategies (visions and values). The project sponsor is responsible for developing the strategic
objectives and ensuring that the project realizes benefits for the company
• Stakeholders: a project has a range of stakeholders who have particular needs and expectations
that need to be identified and addressed. It is the project manager’s responsibility to engage the key
stakeholders and involve them in problem-solving and decision-making processes
• Project life cycle: a project has a life cycle that is presented as a number of sequential phases
along the project’s timeline. The phases group similar work as the most efficient way of producing a
number of distinct deliverables
• Project charter: A project has a project charter that outlines what the project has to achieve
(scope of work), how to achieve the stated objectives (build method), and gives the project
manager the authority to use company resources
• Project manager: a project is managed by a project manager as the single point of responsibility.
This means that the project manager will be held responsible and accountable for delivering the
project deliverables and critical success factors
• Project team: a project is administered by a project team working in the project management
office (PMO). The project manager leads and manages the project team, the suppliers, contractors
and consultants
• Scope of work (SOW): a project has a unique SOW that defines what is included and not
included in the project. A project breakdown structure (PBS) can be used to subdivide the project
into a number of deliverables that relate directly to the operational configuration. The work
breakdown structure (WBS) can be used to subdivide the work to make the deliverables into work
packages
• Project schedule: a project has a schedule, which uses the CPM to calculate the logical
relationship between the activities, the start and finish of all the activities together with the list of
critical activities that determine the duration of the project. The Gantt chart is one of the key
documents for outlining schedule information
• Budget: a project is assigned a budget to complete the work, which the WBS subdivide into a
budget per work package. The project cash flow statement helps the project manager to balance
income and expenditure
• Resources: a project uses resources (equipment and workforce) to make the project. The
resource histogram helps the project manager balance resource requirements and resource
availability
• Procurement: a project procures material and components from a supply chain of suppliers and
outsources work to other partners and companies. This is achieved through the procurement
process and the procurement schedule
• Quality: a project has to achieve predetermined quality requirements. This is achieved through
the quality assurance plan and inspected through the quality control plan
• Risks: a project might be subjected to risks that threaten the project from achieving its stated
objectives. These risks are addressed by the risk management plan
• Communication: a project has a communication plan, which means the communication
requirements need to be defined, planned and controlled
• Matrix OBS: a project is managed through an organisational structure that might be specifically
set up to manage the project. This particularly applies to the matrix organization structure used to
manage multidiscipline projects
• Project office: a project usually has a centralized project office. This enables the project team to
administer and coordinate a project office of technical and professional experts.
, Types of projects
• External projects to produce for an external client (e.g building a road or ship)
• External procurement projects to purchase a product or outsource work
• Internal maintenance projects to keep facilities functioning efficiently
• Internal continuous improvement projects to improve existing facilities (e.g upgrading
a computer system or a business process
• Internal product development projects to develop a new drug or aerospace/defence
product
• Internal capital expenditure projects to expand a facility or implement a new computer
IT system and equipment
• Internal organisational change projects to change the structure of the organisation
• Internal R&D projects to explore and investigate new technologies for industry 4.0.
Different types of projects that benefit from using project management techniques:
Construction and The construction of a building, bridge, airport, stadium, mall, power station.
engineering These types of projects are usually unique and built in-situ requiring temporary site offices
projects and a temporary workforce.
Military and This includes a range of high-tech projects that could be a military vehicle project, a frigate
aerospace project, an aircraft carrier project etc. these tend to be large, complex capital projects using
projects innovative technology based on the latest R&D. Usually manufactured in a highly controlled
environment that is characterised by detailed design, extensive model and prototype testing
and a high level of documentation.
Offshore and These include the search for oil and gas and the large scale refining of fuel onshore. These
petrochemical major capital projects are more often in remote locations making logistics, communications,
projects workforce recruitment and accommodation a challenge. On these types of projects safety
standards are a big concern especially with the workforce working in close proximity to
highly inflammable products
Industry 4.0 IT They combine cyber and physical technologies to produce smart products (3D printing, self-
and computer driving cars). Large IT projects have a history of budget blowouts and schedule overruns.
projects These problems have been attributed to difficulty in defining the scope of work, commencing
the work too early and followed by extensive rework and failing to involve the right
stakeholders and interested parties at the right time.
, Products Include the design and development of consumer products. In this highly competitive market,
development project teams fast-track the design and development so that they can beat their competitors
projects to the market. (Washing machine, mobile phone)
Advertising and Most companies launch their new products with an advertising and marketing
marketing campaign. These campaigns need to work in conjunction with the new products
projects development and manufacturing timeline’s advertising and marketing profession see
the launching and promoting of a new product as a project, where the marketing
promotion campaign runs in parallel with the production schedule and culminates in a
coordinated new product release.
Bank projects These are not usually thought of as a project orientated companies but designing and
implementing a new financial product has all the characteristics of a complex project.
R&D research Are innovative activities undertaken by corporations and government to develop new
projects services, products and procedures, or improve existing services/products. Companies
need to maintain competitive advantage so must continually improve products in line
with the market and competition.
R&D can be subdivided into 2 areas:
• Pure research that investigates new inventions and concepts
• Develop new industrial and commercial concepts
These types of projects are usually conducted in a controlled environment using
special model testing equipment and computer aided simulation. The project
manager/scientific officer needs precise measurements and observation skills to
accurately correlate the model’s measurement and characteristic to full size.
Event Events, exhibitions, concerts, conventions and shows typically have all the
management characteristics of a project as they are temporary and unique. They have a distinct life
cycle profile of a long preparation phase, followed b y a very short implementation
phase. This introduces many special challenges for the project manager and project
team members.