Reflects the PM’s understanding of the project

Should be written by the PM

This enables him/her to fully understand the sponsor’s requirements

Must be updated regularly with good configuration management

Is in fact the bible of the project

Covers: Why, What, When, How, Where, Who and How much (Kipling poem)

Not to be confused with a time schedule (plan)

Can be known by other names by different companies

Contents well set out in BS 6079

Contents to include

Reasons for planning, baseline programme, responsibility matrix, document distribution schedule, procedures for monitoring and control, resource allocation, network preparation, estimating, risk management, health and safety, change control, configuration management, etc.

Next stage after conception from project life cycle

Divides the project into manageable packages

Can be product-based or work-based

Shows hierarchy of work packages

Leads to assignment of work packages and resources

Task-oriented family tree

Leads to PBS, CBS, OBS and RBS

Helps in creating a responsibility matrix

Foundation for planning and CP network

WBS called PBS in PRINCE methodology

Gives better definition of work

Acts as check list to find missing stages and areas of work

Good basis for risk identification process

Does not show interdependencies

Team members have good picture of main stages

Top down and bottom up estimating leads to network, bar chart, histogram S curve

Types of risk, political, economic, technical, security, environmental

Risk management plan, diagrams, P-I 3 × 3 matrix, risk log, techniques

Risk management process, software tools, Monte Carlo, @Risk, Predict, 3-point estimating

Identification, techniques, brain storming, check list, prompt list, interviews, WBS, Delphi

Assessment, priorities, impact, probability, SWOT, decision trees, Ishikawa diagrams

Qualitative analysis, quantitative analysis, risk owner, risk register

Risk management should be initiated at start of project

All projects have risk

Risk identification

Risk history or diary

Risk owner

Risk log or register

Qualitative analysis

Quantitative analysis, Monte Carlo, @Risk, Predict

3-point estimating

Impact/probability matrix

H, M & L assessment

Managing risk

Motorway congestion

Bad weather (ice, snow, storm)

Car breakdown

Roadworks

Tyre puncture

Feeling ill or sick

No parking space at destination

Customer responsibility: impact assessment, evaluation, agreement

Sponsor responsibility: authorization, review, benefit assessment

Project manager responsibility: control procedure, monitoring, evaluation, implementation

Difference between external and internal change, effect on budget

Change control process, stakeholder input

All departments must assess time and cost effect of change on them

Project is unique process to achieve a set objective

Has a defined start and finish

Constraints are time, cost and resources

Project managers change

Organization can be task force, matrix or functional

Definition of a programme

A collection of related projects

Advantages and role of programme manager

Coordinate resources

Assign priorities

Oversee project managers

Reduce risk

Prepare overall milestone plan

Resolve conflicts between project managers

Positive stakeholders: project team, client, contractors

Negative stakeholders: pressure groups, environmental groups, planning authorities

Influence of stakeholders to be assessed, e.g.

Power to affect project

Financial muscle

Malleability

Personal involvement

Vested interest

Political bias or affinity

Stakeholder prioritization

Covers documents, drawings and components

CM planning

Item identification

Control of configuration items

Status

Verification audit

Introduction: Why risk management, company policy

Purpose of process: Client requirement, environmental, health and safety, project viability

Scope of process, Political, Economic, Sociological, Technical, Environmental, Legal

Description of project

Specific aspects to be covered: innovations, erection, finance, sabotage, security

Type of organization: functional matrix, task force

Roles and responsibilities: managers, risk owners

Tools and techniques required: Monte Carlo, @Risk, Predict, etc.

Deliverables: risk register, matrix, action plans, contingency plans, etc.

Mitigation

Transference

Insurance

Reduction

Elimination

Deference

Acceptance

Quality planning

Quality assurance

Quality control

Quality standards

Fitness for purpose

Meets acceptance criteria

Total quality management (TQM)

Right first time and zero defect

Quality circles

ISO 9000

Quality audits

Important stages

Payment points (expenditures or receipts)

Achievement points

High-level programme

Milestone slip charts show record and predictions

Milestone schedule

Marked on Gantt charts

Target on networks

Often written into a contract

Approval for change and date

Reasons for EVA:

Shows difference between work planned, work booked (on time sheets) and work performed

Abbreviations: BCWS, ACWP and BCWP. Note: BCWS is planned (not budget)

These abbreviations are now being phased out

EV = BCWP = budget × percent complete

Control curves: budget, planned, actual, earned value, percent complete, efficiency (CPI)

Interpretation and solution if CPI and SPI are negative

Calculations: CPI = BCWP/ACWP, SPI (cost) = BCWP/BCWS

Cost and time variances: cost variance = BCWP − ACWP

Time variance = BCWP − BCWS; Final cost = Original budget/CPI

Final time = Planned time/SPI (time) or SPI (cost)

Should be geared to CP network, which can be updated from EVA feedback

If returns of percent complete are on time sheets, regular feedback is guaranteed

Computer programs have been developed to do the calculations

Advantages:

Shows trends, shows estimating errors, predicts final cost and completion time using curves and approx. calculations

Percent complete of multi-discipline, multi-contractor project possible

Trend can be seen early on in project and corrective action can be taken

Shows cost and time position on one report

Shows percent complete and efficiency on one graphical report

Weakness:

Difficulty in assessing percent complete

Wrong budget estimates

Poor feedback system

Time sheets essential

No. of phases

Standard life cycles

BS 6079: Conception, feasibility, implementation, operation, termination

Common phases:

Initiation, conception, feasibility, definition, design, development, production, manufacture, installation, implementation, commissioning, operation, disposal

Extended life cycle includes disposal. Different industries have different life cycles

Advantages:

Ensure no unnecessary expenditure

Review possible after each phase. Go or no-go gates

Trigger for further funding

Each phase a control stage with checkpoints

Basis for WBS

Phases can be split again into stages

Phases called stages in PRINCE used in IT

Different phases can have different project managers

Gives top management an overall picture of project

Gives a rough progress position (crude bar chart)

Phases can be costed for control purposes

Can show up resource and continuity problems

Shows milestones

Developed by sponsor and project manager

Ensures good communication systems

Clear instructions and messages

All external communications via project manager

Importance of documents to be in writing

Communication by walk-about

Communications can be formal or informal

Advantages of project team

Complementary skills

Increased productivity

Project manager support

Informal communications

Strong identity with project

Common objectives

Motivation for project

Will to succeed

Focus

Good team spirit

Other methods used to build teams

Organized events, training, away days, discussions

The main characteristics of a successful team are

Mutual trust

Firm but fair leadership

Mutual support and loyalty

Open communications

Cooperation and full participation

Pride in the project and a sense of belonging

Good mix of technical skills and talent

Clear understanding of goals and objectives

Enthusiasm and confidence in success

Good support from top management

Apart from technical skills, different personality traits can be utilized to build up a balanced team and ensure that ‘round pegs’ are not driven into square holes.

For example, while some people like checking details, others prefer to be concerned with the wider picture.

By assembling the team with the different Belbin types, a balanced and competent workforce can be created.

Withdrawing

Smoothing

Confronting

Forcing

Compromising

Thomas & Kilman

Mediation

Conciliation

Adjudication

Arbitration

Mitigation

Litigation

Balanced team, individuals in the correct slot. The roles are

Plant

Shaper

Resource investigator

Coordinator

Monitor evaluator

Implementer

Team worker

Completer finisher

Specialist

Not always possible to find the correct type

Project manager must use resources available

Defines ‘Why’ and ‘What’ the requirements are

Outlines objectives

Outlines cost, time and performance/quality criteria

Might include success/failure criteria

Should include major risks

Can have other names such as brief, scheme, statement of work (SOW) statement of requirements (SOR)

Owned by sponsor or client

Could include investment appraisal and possibly DCF/NPV, etc.

Should have assessed other options

Should have identified and considered all other stakeholders

Submitted to board for approval

Ability to influence rather than direct

Negotiation skill

Motivation

Initiative

Communication skills

Ability to listen

Fairness

Firmness

Planning and case preparation

Set minimum acceptances

Build up relationship

Exchange information

Bargaining

Concessions

Agreement

Documentation of settlement

Costing and monitoring methods

Cash flow forecast (outflow and inflow)

Cash flow curves (see Chapter 31 for diagram)

Cost breakdown structure

EVA for monitoring costs

Budget preparation

Commitments

Accruals

Acceptance by client

Acceptance certificate

Transfer of responsibility to sponsor or operator

Transfer of ownership to client

Deliverables completed and handed over

Acceptance certificate received

Operating instruction handed over

Spares lists handed over

Transfer responsibility to user/client

Material disposal arranged. This covers

Sell surplus material to client if possible

Return surplus to contractor’s stores

Return redundant office equipment and materials

Sell unusable materials as scrap

Clear site, remove huts and temporary fences

Make good roads and other areas (stockyards)

Complete all contract documentation

Complete all audit trails and file documents

Based on value for money

Includes all feasible options

Single source supply or competition

Partnering or not

Is construction included?

Is delivery to site included?

Standard or special contract conditions

Types of pricing, firm, fixed, target, cost plus, reimbursable, schedule of rates

Contractor selection criteria

Contractor bid meetings and attendees by contractors

Minimum and maximum number of bidders

Tender opening policy

Letter of intent possibilities

Limitations of procurement areas – UK, EC, Western countries, country of final user

Long lead items

Signatures for different levels of contracts

Types of contract

lump sum

remeasured

reimbursable

target, design

build and operate

Expediting and inspection requirements

Procurement and delivery schedule

Liquidated damages

Incentives

Discounts required

Cash flow and payment terms

Shipping restrictions INCO terms

Guarantees and liabilities

Packaging and storage requirements

Spares lists

Operating and maintenance manuals

After-sales service

Context within which project is undertaken

Takes account of internal and external forces

Client, company, contractors, suppliers, consultants, public, end users, etc.

PESTLE (Political, Economic, Sociological, Technical, Legal, Environmental)

Poor planning and cost control

Incompetent project management

Sponsor support lacking

Client makes too many changes

Changes too large or extensive

Late safety requirements

Costs underestimated

Lack of change control

Lax configuration management

Environmental changes

Unforeseen climatic conditions

Integration problems

Technical and teething problems

Inadequate resources of staff and equipment

Poor working conditions

Uncooperative line management

Sabotage and political upheaval

Cost, time and performance requirements not met

Inadequate support from top management

Inadequate specification

Loose agreement with client

Loose contractual conditions

Ill-trained staff or operatives

Fundamental design faults

Late deliveries of information and equipment

Insufficient inspection and expediting

Poor cash flow

Insolvency of subcontractor

Unclear original brief causing misunderstanding

Commissioning problems stakeholder management

Sets out what information and data are required from:

Clients, end-users, other stakeholders

How information is captured, collated, assessed

How data are analysed and tested

Changes must be logged, reviewed and tested

Resource allocation

Resource histogram

Resource scheduling

Resource levelling due to constraints, i.e. lack of labour, materials, plant, etc.

Resource smoothing uses up float to reduce labour usage

Replenishable resources and renewable resources

Steering group or steering committee

Function of project office (if established)

Role of client and end user: Specifies and operates finished plant

Role of sponsor: Owns business case, monitors performance, ensures resources, ensures benefits are realized, agrees variations

Role of project manager: Controls cost, time and performance of project, responsible for quality and safety, reports to sponsor and stakeholders

Project manager’s charter

Stakeholders

Contractors and suppliers responsibilities; supply specified equipment, materials and plant and manpower to meet set programme and performance requirements.

Handover certificate

Equipment list

Operating manuals

Maintenance manuals

Spares list

Guarantees

Lubrication schedule

H and S Standards

Laws: HSWA 1974 (Health and Safety at Work Act)

Management of Health and Safety

Regulations 1992 covers

Safe plant and equipment

Dangerous substances

Safe workplace and access

Protective clothing

Safe environment

Information and training

Reporting

CDM (Construction, Design and Management) Regulations

Consumer Protection Act 1987

Common law duties (negligence) apply

Assembly drawing

Frame

Handlebars

Wheels and tyres

Pedals

Gears and chain

Saddle and carrier

Mudguards

Lights and bell

For graphical solution see Chapter 6, Fig. 6.2

Collection and collation of reports and time sheets, etc.

Administrative support to project manager

Dissemination of instructions

Operation of configuration management system

Administration of change control

Library for standards and procedures

Records progress information

Produces curves and tabular information for use by project manager

Writes up and distributes minutes of meetings

Reviews should be held throughout the project

Close-out meeting with project team

Evaluation against success criteria

Prepare post-project appraisal and write close-out report

Include abstracts from project diary and site diary where necessary

Highlight problems encountered, cost and time overruns, special delays

Report on project team performance

Recommendations for future projects, learning from experience

Evaluate project-management process

Evaluate techniques employed

Characteristics:

Knowledge of planning tools

Ability to control costs

Ability to get on with people

Does not panic when things go wrong

Is fair but firm

Ability to negotiate

Appreciation of importance of safety

Ability to write clear, concise reports

Good communicator and listener

Can motivate the team he/she leads

Is aware of corporate priorities and policies

Leads by example

AoA network pro

As activities and durations are on the link lines (arrows), they can be more fully described

Can be drawn rapidly by hand without instruments

Progress can be updated by ‘redding’ up the lines in proportion of percent complete

As activities take time, they are more logically represented by an arrow

Streams of activities can be interlinked with dummy activities which can cross other activities

Can be drawn on a grid with links being able to cross activities

AoN (precedence) networks pro

Activities and durations are shown in or above the nodes

There is no requirement for dummy activities

Activities are defined by one number instead of two as in AoA

Can be drawn on a grid, but links cannot cross activity nodes

Lester diagram is a combination of both, gives best of both worlds

If projects are not directly related, it is portfolio management

Prioritize projects against needs of organization

Allocate resources and eliminate bottlenecks

Assess risks of projects in portfolio

Decide on timing of project starts

Monitor performance of all projects

Ensure good cash flow and profitability

Carry out cost–benefit analysis of projects

Portfolio management is a subset of corporate management

It is concerned with the organization, planning and control of a number of projects which are not necessarily connected with each other.

Its function is to ensure that the projects in the portfolio are aligned with the organization’s strategy and meet the cost, programme, quality and performance criteria.

The success of a project can be measured by the following criteria

Completion on time

Performance in accordance with the specified requirements

Meeting the quality standards

Completion within cost budget

Compliance with Health & Safety regulations

Essential headings on change register

Project title

Date of request to change

Name of instigator

Description of change

Reason for change

Time and cost estimates from each department

PM’s summary of effects

Approval of change and date

Information management is concerned with the following functions

Acquisition of information

Data collection

Preparation of data

Dissemination to interested parties (stakeholders)

Storage, retrieval and archiving

Collection and capturing of information

Collation and distribution

Procurement and maintenance of equipment

Confidentiality

Modern IT systems permit huge amount of data to be collected.

This requires processing for both quantity and quality.

Timing is also essential, as late dissemination can seriously affect decisions.

All this has to be done efficiently by using an information system which is enshrined in an information policy plan.

In a constantly changing environment, systems, procedures and products must be regularly examined and updated to meet the needs of the stakeholders’ value management and its subset value engineering is concerned with the strategic question of what should be done to improve performance without affecting the quality. Its aim is to improve the functionality of a product or system while reducing the overall cost.

Techniques include:

Functional analysis

Investigate alternative solutions to meet function requirements

Verbs and nouns technique

Evaluation

Acceptance, implementation and audit

Define benefits and agree on method to measure benefits

Set success criteria

Set and monitor key performance indicators (KP)

Resource histogram, resource smoothing, peak reduction and ‘S’ curve

PERT and use of 3-point estimates for durations

Maximizing parallel activities to reduce overall time

Options to be examined as part of business case

Non-financial benefits may be difficult to quantify

Sydney opera house was a success, but a failure in terms of cost and time

Project governance covers:

Structure to obtain objectives

Monitoring performance

Standard procedures

Quality Assurance

Corporate Policy and transparency

Delegation of authority

Reporting procedures

Ethics

Topics included in the information management plan are:

Types of document

Authority and standards

Distribution

Retrieval

Acquisition/modification permits

Acknowledgements of receipts

Security of data

Disaster recovery

Configuration control

Distribution of documents

All these have to be done efficiently by using an information system that is embedded in an information policy plan