Project Management
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  • 1. PROJECT MANAGEMENT DECEMBER 2008 Printed copies of this document are uncontrolled Page 1 of 17 Printed copies of this document are uncontrolled
  • 2. Table of Contents Table of Contents..................................................................................................2 Purpose.................................................................................................................3 Scope.....................................................................................................................3 Overview...............................................................................................................4 Procedure..............................................................................................................5 1. The Proposal.............................................................................................................................5 2. Initiating the Project.................................................................................................................6 3. Implementing the Project..........................................................................................................8 4. Finalising the Project................................................................................................................9 5. Roles and Responsibilities.......................................................................................................11 6. Definitions...............................................................................................................................11 Appendix – Tools for Project Planning...............................................................12 Tool 1. PERT Analysis for the calculation of time estimates.....................................................12 Tool 2 . Risk Management..........................................................................................................13 Tool 3 . Work Breakdown Structure (WBS)...............................................................................16 Page 2 of 17 Printed copies of this document are uncontrolled
  • 3. Purpose This procedure outlines the processes and phases that apply to the delivery of a project. This procedure outlines processes and tools which may be applied to projects, of varying size and scope. Scope A project is defined “ involving a series of inter-related activities with defined start and finish times” . This procedure recognises an inherent variation in the scale and scope of projects by offering flexibility of approach. While the process steps described here follow accepted practices, the Project Manager is empowered to add or delete process steps to meet the requirements of a particular project. This flexibility of approach means that the procedure may be equally applied to a variety of widely differing project needs. Projects as diverse as, say, the installation of a new computer system, an advertising campaign, or the construction of a roundabout are all candidates for the application of this procedure. This procedure represents a single generic delivery platform for simpler projects. It differs markedly to the approach taken with infrastructure type projects, which by virtue of their complexity, are managed by many procedures covering a wide range of subjects and issues. . Page 3 of 17 Printed copies of this document are uncontrolled
  • 4. Overview  Project Brief / request from client Network Management  Prepare draft Project Plan (Project Initiation)  Submit for Client Acceptance  Register / Formalise Project Project  Analyse Requirements/ Examine Development Options Common  Develop Costings & Timescales (Concept)  Prepare Project Plan  Manage Implementation / Issue Project Status Reports Implementation  Confirm Deliverables  Evaluate/Test Completed Project  Close Out Risks Project Finalisation  Gain Project Sign-Off  Facilitate Handover Page 4 of 17 Printed copies of this document are uncontrolled
  • 5. Procedure 1. The Proposal Project Initiating Request (Brief) The project begins here. The request defines the initial scale and Project scope of the project from the client perspective. The level of Initiating Request detail will vary from project to project. Depending on the nature of the project, the client may require either a concept proposal with budget costings or a more detailed design with firm costings. The Project Manager must determine the required outcomes through a process of negotiation with the client. Prepare Draft Project Plan or Proposal Prepare Draft Project Plan (Proposal) As a result of the negotiations with the client, develop the client’ s brief into a concept (or a design) that lists the work to be performed and the anticipated outcomes. Propose a budget based on the concept. As described above, the supplied costings may be budgetary or firm depending on the client’ s specific requirements for this stage of the project. The Project Brief/Plan form (used as either a brief or a plan) Submit may be used for the submission to the client. for Client Acceptance Gain Approval to Proceed Submit the proposal with the Project Brief/Plan for management approval (sign off). Client The Project Brief / Plan Form has provision for a client sign-off. Acceptance Page 5 of 17 Printed copies of this document are uncontrolled
  • 6. 2. Initiating the Project Page 6 of 17 Printed copies of this document are uncontrolled
  • 7. Register/ Formalise Project Register and Formalise Project. Commence tracking status Analyse Once approved, the project must be given a Project Number. Requirements and Examine Make initial entries in Project Status Record. Options Analyse Requirements and Investigate Options Analyse the concept proposal. Investigate alternatives in terms of implementing project. As appropriate, gain expressions of interest, quotations etc from potential suppliers/contractors. Develop Costings and Timescales Agree on a preferred option for development. Prepare Project Plan Prepare a Project Plan for the project detailing: • A detailed description of the project scope and deliverables. • A Work Breakdown Structure defining the tasks (including development tasks) that comprise each project deliverable. Prepare Project Plan • An implementation timeline with designated milestones. • A schedule of costs against time for the project. • An analysis of risks applying to the project. • How the delivered project will be evaluated and tested for final acceptance. • Details of the stakeholders, suppliers and the project implementation team (names, positions, involvement).. • Identity of the manager responsible for governance: (Project Brief / Scope Change / Finalisation) of the project. Prepare Costings Prepare and establish a budget for the project and, if appropriate, invite quotations/tenders from suitable suppliers. Page 7 of 17 Printed copies of this document are uncontrolled
  • 8. Completed Project Plan 3. Implementing the Project Review Project Plan Confirm that the scope / time / budget is appropriate with the project sponsor. The Project Plan must contain all the information required to implement the project. Call for Tenders / Quotations for External Resources Manage The methods of securing resources will vary with the project. Implementation Process Accept Tender /Quotation and Issue Contract or Agreement The process will vary with the project. Manage the Implementation Process Irrespective of the size and scope of a specific project, it must be managed in a professional manner, following the processes outlined in the Project Plan. Implementation Process Monitor the Supplier / Service Provider’ s performance by: • Confirming the supply of (and quality of) all deliverables. • Confirming that the Supplier is meeting agreed targets in terms of project cost and timescale. During the project implementation, if deficiencies are noted in the project deliverables, be prepared to stop the works Implementation (holdpoint or clock stop). Some deficiencies may warrant action Complete against the supplier. During the course of a project, it may be necessary to change the scope of the project, or a deliverable within the project. It is essential that such changes are agreed to, and signed off on by the client. Use the Change Request Form to document and sign off on the change action. Maintain the ongoing Project Status Record and provide Project Status Reports on a regular basis to management. Page 8 of 17 Printed copies of this document are uncontrolled
  • 9. 4. Finalising the Project Page 9 of 17 Printed copies of this document are uncontrolled
  • 10. Evaluation/ Testing of Evaluate and Test Project for Acceptance Completed Project Once the project works have been completed, a program of evaluating / testing must be carried out (as defined in the Project Plan). Providing the test results prove satisfactory, the project can be accepted. The acceptance procedure will have been defined in the Project Plan. Advise Acceptance Project Sign-Off Establish Final Project Costs Facilitate Project Sign-Off Provide a report to management showing: • Results of Acceptance Evaluation / Auditing /Testing • Final Costs of the Project Client • That all risk issues have been completely met and no Handover longer offer a threat to the project The responsible manager (as defined in the Project Plan) is required to demonstrate his or her concurrence with project completion by signing – off on the report. Facilitate Handover of Project to Client Follow procedure described in Project Plan Project Review Project Outcome Complete Forward Completion Report to Management The Project Completion Report (template provided) calls for a review of the project outcomes in terms of: • Objectives Met • Risk Management Issues • Project Costs • Project Time Scale Variations • Stakeholders Expectations • Lessons learnt and recommendations for improvement Page 10 of 17 Printed copies of this document are uncontrolled
  • 11. 5. Roles and Responsibilities Client / Sponsor The person who requests the project, who is responsible for project sign-offs and is the person to whom the project is handed over. Project Manager The person charged with the responsibility for managing the project. Depending on the scale and scope of the project, the Project Manager may delegate some responsibilities to others. 6. Definitions Project A project is a temporary undertaking to create a unique product, service or result Project Brief Initially this represents the client’ s concept of the proposal. It is developed further to become an agreement with the Project Manager on the scope and deliverables of the project. Draft Project Plan / The Project Manager’ s initial interpretation of the client’ s brief. Proposal Usually incorporates a concept design and budgetary or preliminary costings Project Plan The detailed document defining the deliverables, timescales, costs, risk assessments, personnel and acceptance criteria relating to the project. Also defines the actions required to meet the objectives stated in the project brief. Page 11 of 17 Printed copies of this document are uncontrolled
  • 12. Appendix – Tools for Project Planning As has been referred to previously in this document, the aim of this procedure is to provide a generic and flexible management tool. It is also designed to be used by persons with no, or limited experience in project management. While the experienced project manager is able to make use of a range of project tools, those with lesser experience may not be completely familiar with some of the requirements of the project plan. Some basic tools are provided here to assist with some aspects of the project plan. Tool 1. PERT Analysis for the calculation of time estimates. This represents a commonly accepted method of calculating time estimates for a project. Step 1. For each project milestone, list the factors likely to impact on the timescales (weather, delivery delays, availability of equipment or suppliers etc) and derive the following estimates of time: 1. Your most pessimistic time estimate 2. Your most likely time estimate 3. Your most optimistic time estimate Step 2. Apply this formula to your estimates to calculate the likely duration Time = Topt + 4Tlik + Tpess 6 where Topt is the optimistic estimate, Tlik is the likely estimate and Tpess is the pessimistic estimate. Example: After considering the factors likely to impact on the task you are to carry out, you determine that a pessimistic view of the time required is 32 days, an optimistic view is 18 days and your likely estimate is 24 days. Applying this to the formula gives: 18 + (4x 24) + 32 = 146 = 24.3 days. 6 6 For the project plan, a time estimate of 25 days should be used. Page 12 of 17 Printed copies of this document are uncontrolled
  • 13. Tool 2 . Risk Management This represents one approach to risk assessment and management. More experienced Project Managers may prefer to use tools they are more familiar with. Step 1. Identify Potential Risk Events The following list is designed to provide a series of prompts for the identification of typical risks. It is by no means a comprehensive list and does not replace the need for the project manager to identify risk categories applicable to the specific project.. Potential Risk Categories: Example Risks  Source data out of date or unreliable Benefit Risks  Growth forecasts not met  Benefits overstated  Project objectives not clearly defined (outcomes not achievable)  Performance or acceptance criteria not clearly scoped (unable to meet client expectations)  Communication/Relationship breakdowns  Tendering/Contractual issues  Material/Labour Market Risks (shortages Commercial Risks or delays in supply of materials/skilled labour.)  Cost Escalations (Oil prices, insurance premiums) Page 13 of 17 Printed copies of this document are uncontrolled
  • 14.  Contractor Delays/Failure  Program delivery (timeframes, productivity, environmental delays)  Legislative/regulation issues  Industrial Action  Temporary access issues (crossings, emergency access) Community Risks  Community protest issues (noise, dust, inconvenience, impact on business Potential Risk Categories (2) : Example Risks (2)  Geophysical issues  Environmental issues (ecology, aesthetics, pollution) Site Risks  OH&S issues  Heritage Issues Design/ Engineering Risks  Errors in calculation/ design assumptions  Changes in project priority  Pressure group activity Political Risks  Policy changes  Prolonged rainfall/flooding  Prolonged high temperatures Natural Event Risks (OH&S, bushfire risk) Other Risks  As defined by Project Manager Step 2 Analyse the Likelihood and Consequences of Risk Events Page 14 of 17 Printed copies of this document are uncontrolled
  • 15. Table 1. Likelihood of the Event occurring Level Description Low [L] Unlikely or rare Medium [M] Likely to occur at some time High [H] Will probably occur often or most of the time Table 2. Consequences of the Event Occurring Level Description Low [L] Minor Impact and minor consequences Medium [M] Moderate impact with moderate consequences High [H] Major impact and major consequences Step 3. Apply the Assessed Likelihood and Consequences to the Risk Matrix Derive a “risk level” by intersecting Likelihood and Consequences H 3 4 5 Consequences M 2 3 4 L 1 2 3 L M H Page 15 of 17 Printed copies of this document are uncontrolled
  • 16. Likelihood Step 4. Manage the Risks For Risk Levels 1-2; • Remain aware of the possibility. • Manage it by utilising routine procedures. • If the risk should escalate, re-assess it. For Risk Level 3-5; • Develop an action plan to preferably avoid, or at least minimise the consequences. • If risk level is 5, determine actions to reduce it to a lower level • Include the action plan in the Project Plan. • Monitor the Risk Action Plan on a regular basis to update assessments and ensure that appropriate actions are being undertaken to mitigate or close out the risk. Tool 3 . Work Breakdown Structure (WBS) The Project Plan/Brief includes a section for inclusion of a work breakdown structure. Work Breakdown Structures represent the ideal approach for those with limited experience on, or access to, Gannt Charts. A Work Breakdown Structure is essentially a hierarchical listing of the tasks within the project deliverable. Following is a simple example of a WBS showing the components of a single deliverable. Page 16 of 17 Printed copies of this document are uncontrolled
  • 17. Deliverable Task Sub-Task Duration (days) 1. Foundations 1.1 Concrete Slab 1.1.1 Level Site 1 1.1.2 Excavate 2 Trench 1.1.3 Lay Formwork 2 1.1.4 Pour Concrete 1 1.1.5 Cure Concrete 4 Total Time for 1.1 Concrete Slab 10 1.2 Install Fasteners 1.2.1 … … … … etc. … This table is simply extended to cover all deliverables and tasks that make up the project. Page 17 of 17 Printed copies of this document are uncontrolled