Project Management Plan (Osama Nasir's conflicted copy 2010-10-22)

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Project Management Plan (Osama Nasir's conflicted copy 2010-10-22)

  1. 1. BUSN7024 Project Management Principles Semester 2, 2010 – Major Assignment Project Management Plan Algae Nursery System Azim Khan U4009419 Emma Shaw U4924015 Osama Nasir U 4786695 Ruoying Liang U4638781 Stephanie Mutiara U4820179 Word Count: 21,310 Due Date: Friday, 22 October 2010 E-copy: via email to walter.fernandez@anu.edu.au Paper copy: assignment box, ABIS School Office File Name: project-management-plan-osama-nasirs-conflicted-copy- 201010223186.doc
  2. 2. Writing Documentation That Works Contents Team Number: 7 By signing on Table 1 each member acknowledges his or her agreement with the stated contribution to the overall assignment made by each team member. Name Student No Contribution Signature Azim Khan U4009419 A Emma Shaw U4924015 A Osama Nasir U4786695 A Ruoying Liang U4638781 A Stephanie Mutiara U4820179 A Table 1: Membership and Individual Contribution.
  3. 3. Writing Documentation That Works Contents Use the following convention to state each member contribution to the total effort • A = very good contribution, the team member went above the expected participation level. • B = good contribution, the member participated as expected and was diligent in performing the assigned tasks. • C = less than satisfactory contribution, the member participation and contribution was less than the average for the team. • D = the member had minimal participation on the team effort, shown lack of commitment to the team and significantly increased other members’ workload. • E = the team member did not contribute at all to the team. The team shall discuss and agree on the contribution level for each team member. Your signature on Table 1 indicates your agreement with the assessment of contribution. A lack of signature will indicate dissatisfaction with the attribution. Please note, if half or less than half of the team sign the contribution assessment, a penalty of 5% will apply to the assignment’s mark. To encourage the teams to strive to perform as a team, penalties will be assigned to students that perform below the minimum expected level (see Table 2). Individual contribution to the team’s effort. Penalty to be applied to the assignment’s mark for the particular student A 0% B. 0% C 15% D 50% E 100% Table 2: Human Resources Mismanagement Penalties. This page is confidential and will NOT be seen by the class. The lecturer will delete this page before releasing the document for class access on the web site.
  4. 4. Writing Documentation That Works Contents Acknowledgement Walter Fernandez is grateful to the author of this template, David Tuffley, who generously allowed him to modify the template and to use it at ANU. Plagiarism ✍ Plagiarism will not be tolerated. It is the responsibility of the team to ensure that proper citation and quotation conventions are followed. Failure to observe this rule will result in a zero mark for the entire assignment, regardless of the magnitude of the infringement. Further action(s) might be considered on a case-by-case basis. i of of v
  5. 5. Writing Documentation That Works Contents Contents Contents..................................................................................................ii 1. Executive Summary............................................................................1 2. Project Introduction...........................................................................2 3. Project Integration Management.......................................................3 3.1. Project Plan Development.............................................................3 3.2. Project Plan Execution..................................................................4 3.2.1. Project Initiation......................................................................4 3.2.2. Project Direction.....................................................................4 3.2.3. Project Planning, Monitoring and Controlling Cycle..............4 3.2.4. Project Closing.......................................................................4 3.3. Integrated Change Control...........................................................5 4. Project Scope Management...............................................................6 4.1. Initiation..........................................................................................6 4.1.1. Product Description................................................................6 4.1.2. Strategic Plan.........................................................................7 4.1.3. Project Selection Criteria .......................................................7 4.2. Scope Planning.............................................................................8 4.2.1. Product Description................................................................8 4.2.2. Project Charter........................................................................8 4.3. Scope Definition.............................................................................9 4.3.1. Scope Statement....................................................................9 4.3.2. Work Breakdown Structure (WBS)......................................10 4.4. Scope Verification........................................................................10 4.4.1. Critical Success Factors.......................................................10 4.4.2. Evaluation Measures............................................................10 4.5. Scope Change Control................................................................11 4.5.1. Scope Changes....................................................................11 4.5.2. Corrective Action..................................................................11 4.5.3. Documentation.....................................................................12 5. Project Time Management................................................................13 5.1. Activity Definition.........................................................................13 5.2. Activity Sequencing.....................................................................13 5.3. Activity Duration Estimating.........................................................14 5.3.1. Basis of Estimates................................................................14 5.4. Schedule Development................................................................14 5.4.1. Project Schedule..................................................................14 ii of of v
  6. 6. Writing Documentation That Works Contents 5.4.2. Schedule Management Plan................................................14 5.4.3. Resource Requirement Update............................................15 5.4.4. Constraints and Assumptions...............................................15 5.5. Schedule Control.........................................................................15 5.5.1. Schedule Updates ...............................................................15 5.5.2. Corrective Actions................................................................16 6. Project Cost Management................................................................17 6.1. Resource Planning......................................................................17 6.1.1. Resource Requirement........................................................18 6.2. Cost Estimating...........................................................................20 6.3. Cost Budgeting............................................................................26 6.4. Cost Monitoring, Controlling and Reporting................................26 6.5. Other considerations...................................................................28 7. Project Quality Management............................................................30 7.1. Scope...........................................................................................30 7.2. Quality Objective.........................................................................31 7.3. Quality Control.............................................................................31 7.4. Organisational Structure and Responsibilities............................33 Quality Management Process............................................................34 7.4.1. Quality Planning...................................................................34 7.4.2. Quality Assurance................................................................39 7.4.3. Quality Control......................................................................40 7.5. Other Considerations...................................................................42 7.5.1. Quality Cost Monitoring and Reporting................................42 7.5.2. Leadership............................................................................43 7.5.3. Organisational Influence, Workplace Factors and Quality..43 7.5.4. Expectations and Cultural Differences.................................43 8. Project Human Resource Management..........................................44 8.1. Human Resource Planning..........................................................44 This human resource plan is created to identify and document project roles, responsibilities, and reporting relationships involved in the project. The Organizational Chart, Roles and Responsibilities Assignments, RACI Chart, Staffing management plan in this plan are used to ensure project success.....................44 8.1.1. Organizational Chart............................................................44 8.1.2. Roles and Responsibilities Assignment...............................45 8.1.3. RACI Chart...........................................................................47 8.1.4. Staffing Management Plans and Resource Histogram........48 8.1.4.1. Resource Histogram.....................................................49 8.1.4.2. Staffing Management Plan............................................50 8.2. Staff Acquisition...........................................................................50 This section sets forth the acquisition strategy, defines the efforts required to implement it to ensure coordination of the project iii of of v
  7. 7. Writing Documentation That Works Contents manager and the human resource department to get the right people to fulfil the project’s needs..................................................50 8.2.1. Resource Assignment..........................................................50 8.2.1.1. Staff Pooling Description..............................................51 8.2.1.2. Recruitment Practices...................................................52 8.2.1.3. Project Staff Assigned...................................................53 8.2.1.4. Project Team Directory.................................................54 8.3. Team Development......................................................................54 The main goal of this team development plan is to help people work together more effectively to improve project performance and achieve the project goals................................................................54 8.3.1. Training.................................................................................54 8.3.2. Team Building Activities.......................................................54 8.3.3. Input to Performance Appraisals..........................................54 8.3.3.1. Employee Self-Evaluation Assessment........................55 Employee Information....................................................................55 Goals..............................................................................................55 Risks and Expectations.................................................................55 Comments......................................................................................55 8.3.3.2. Employee Performance Review....................................56 8.3.4. Performance Improvements.................................................56 8.3.4.1. Improvement in Individual Skills...................................57 8.3.4.2. Improvement in Team Behaviours................................58 8.4. Team Management......................................................................58 Team management is essential in Human Resource Management Plan. The Project Manager is required to do the followings to motivate and manage his/her team members in case changes are requested to the project..................................................................58 9. Project Communication Management.............................................59 9.1. Communications Planning...........................................................59 9.2. Information Distribution...............................................................60 9.2.1. Introductions to New Stakeholders and Negotiation............61 9.2.2. Meetings, Presentation and Reports....................................64 9.2.3. File Management..................................................................67 9.3. Performance Reporting................................................................70 9.3.1. Communications Hierarchy..................................................73 9.3.1.1. Top Down Communication............................................74 9.3.1.2. Bottom Up Communication...........................................75 9.3.1.3. Middle Out Communication...........................................76 9.4. Administrative Closure.................................................................78 9.5. Other techniques for information and communications management.......................................................................................80 10. Project Risk Management..............................................................81 10.1. Risk Management Planning......................................................82 10.1.1. Organisational Risk Management Policies........................82 iv of of v
  8. 8. Writing Documentation That Works Contents 10.1.2. Risk Planning Meetings and Analysis................................83 10.1.3. Risk Management Plan......................................................84 10.1.4. Methodology.......................................................................85 10.1.5. Roles and Responsibilities.................................................85 10.1.6. Risk Categories..................................................................86 10.1.7. Project Risks.......................................................................87 10.2. Risk Identification ....................................................................90 10.2.1. Tools and Techniques........................................................91 10.2.2. Risk Register......................................................................92 10.3. Qualitative Risk Analysis..........................................................92 10.4. Quantitative Risk Analysis........................................................93 10.5. Risk Monitoring and Controlling...............................................93 10.5.1. Monitoring...........................................................................94 10.5.2. Controlling..........................................................................94 10.5.3. Reporting............................................................................94 10.6. Risk Response Planning..........................................................95 10.6.1. Negative Risks....................................................................95 10.6.2. Positive Risks.....................................................................96 11. Project Procurement Management................................................97 11.1. Procurement Planning..............................................................97 11.2. Solicitation Planning ................................................................98 11.3. Solicitation................................................................................99 11.4. Source Selection.....................................................................100 11.5. Contract Administration..........................................................101 11.6. Contract Closeout...................................................................102 12. Conclusion.....................................................................................103 13. Appendix A - Project Gantt Chart................................................104 14. Appendix B - Table 6.3. Project Cost Baseline..........................105 15. Appendix C - Monthly Project Financial Performance Report Template...............................................................................................106 16. Appendix D - Year to Date Project Financial Performance Report ...............................................................................................................107 17. Appendix E - Labour Cost Analysis Report...............................108 18. Appendix F – WBS........................................................................109 19. Appendix G – WBS Dictionary.....................................................110 20. References.....................................................................................113 v of of v
  9. 9. Writing Documentation That Works Contents vi of of v
  10. 10. Writing Documentation That Works Contents 1. Executive Summary The Nursery System Project will automate the early cultivation of micro-algae. Automation of this process is needed in order to prepare commercial quantities of micro-algae which can in turn produce commercial quantities of bio-fuel. The Nursery System will monitor and control the growth of micro-algae from the laboratory to the large tanks in which the micro-algae is grown. This project will be considered successful based on stakeholder acceptance of the project, with all changes noted and documented and stakeholder acceptance of these changes, as well as a working nursery system that endures an allotted amount of time without technical failures. This project management plan details each phase of the project the project manager must complete in order to deliver a successful product. This includes project cost, time and scope management, project quality management, communications, risk, procurement and human resources management, and overall project integration management procedures and methods for the successful project manager. The project will cost $$$ and will take 271 days to complete. The project has been planned to produce a product of high quality, ensuring the commercial viability of the Nursery System. The project will be complete when key stakeholders from the ANU BioSolar Program are satisfied that the Nursery System meets their requirements. The major risks for this project include: Page 1 of 117
  11. 11. Writing Documentation That Works Contents 2. Project Introduction The Australian National University has developed bio- technology which allows crude oil to be sourced from micro- algae. The development of this technology allows for a renewable source of energy. In a world of finite non-renewable energies, the uses for this renewable source of energy are many and varied. However, the micro-algae needs carefully grown and monitored. The environment in which it is grown must be carefully regulated for light, pH, temperature and water to ensure that the algae do not die. Current processes for encouraging the growth of algae involve transferring the algae by hand from a series of smaller ponds into a series of larger ponds, to ensure that the algae does not die from overexposure to water. The Nursery System project will automate this process. By automating the process, the project will not only reduce the time and effort required in growing algae into commercial quantities for oil production, but create an exportable system in which any business can use the nursery system to develop its own algae for bio-fuel production. The nursery system project includes the development of a user manual, which will enhance the marketability of the system, and also ensure that the technology can be widely used. By creating the nursery system, the project team will be contributing to the transfer from reliance on fossil fuels to a more environmentally friendly use of renewable bio-fuels. Page 2 of 117
  12. 12. Writing Documentation That Works Contents 3. Project Integration Management Project integration management is key to ensuring the overall success of the project. It involves coordinating all of the other project management areas throughout the project’s life cycle. 3.1. Project Plan Development The Project Plan has been created following the nine key project management principles – cost, time, scope, quality, communications, risk, procurement, human resources and project integration – so that project management plan provides a comprehensive overview. This project management plan provides consistency across all nine areas to ensure that all aspects of the project have been planned for. Please, refer to the table of contents for a full list of all the plans and documents that have been designed for this project. Page 3 of 117
  13. 13. Writing Documentation That Works Contents 3.2. Project Plan Execution 3.2.1. Project Initiation The project will be initiated at the instigation of the ANU BioSolar Program. The project will be selected by key stakeholders from the ANU BioSolar Program, who will also consider the development of the business case, determine scope, time and cost constraints, identify the project sponsor, and select a project manager. 3.2.2. Project Direction The project will be directed by the project manager, under whose authority all decisions will be made, in conjunction with the Change Control Committee. The project manager’s decision will be final. The project manager alone can endorse and initiate each of the work activities under the Work Breakdown Structure. 3.2.3. Project Planning, Monitoring and Controlling Cycle The project planning, monitoring and controlling Cycle will be performed through constant communication, both oral and written. Formally, monitoring and controlling will be managed through written documents which include the weekly progress report, exception reports for management on issues of particular interest that arise during the project, and the final lessons learned report. The planning, monitoring and controlling cycle will constitute a ‘feedback loop’ in which any deviations from the project schedule, budget or scope are fed back into the planning and executing phases so that any changes are accounted for and absorbed, ensuring that the project will meet its deliverables. Documenting ensures that all project team members and management have a full record of the execution phase of the project. 3.2.4. Project Closing The closing phase of the project includes formal acceptance of the nursery system, administrative activities associated with the end of the project, and the preparation of reports for stakeholders and the wider community. Page 4 of 117
  14. 14. Writing Documentation That Works Contents 3.3. Integrated Change Control Integrated change control will be performed in this project. Any change requests will be considered by a Change Control Committee, consisting of the project manager, project sponsor, and key stakeholders such as the head of the ANU BioSolar program. Any change will be considered in the light of its impact on project schedule, cost, quality and overall potential improvement of the Nursery System. All rejected and approved changes, and the reasons for rejection or approval, will be documented in a Change Management document, which, together with the original scope statement, will form the project scope baseline. For more detail about integrated change control, please see section 4.5. Page 5 of 117
  15. 15. Writing Documentation That Works Contents 4. Project Scope Management The scope of this project is described below. It has been compartmentalized into the following areas: initiation; planning; definition; verification and change control. 4.1. Initiation The project has been authorized by Dr. Walter Fernandez as a part of the bio duel solar energy program. The reason for its authorization is the ultimate need of an automated system for the early cultivation of algae before pouring it to the large ponds. The business need that this project has been developed is to automate the process of early cultivation algae in the nursery considering all of the factors that affect the cultivation. This is important to the industry because it will minimize the human effort. In its early stages, micro-algae need to be carefully cultivated to ensure it does not die. The micro-algae are sensitive to fluctuations in water quantity, temperature, light, pH and nutrients. The survival of the micro-algae in its early stages is vital to ensuring commercial production of the micro- algae later. This is the plan for the initial planning phase of the project, it is anticipated that once the project enters execution phase a new or modified plan will be established updating the various changing criterion. The main purpose of the project is to automate the process of micro algae early cultivation that helps in the production of bio fuel. 4.1.1. Product Description The product that will be produced at the end of this project will be a nursery system that can be supplied to any where required. The nursery system will consider all the important factors that affect the cultivation of algae and its quality i.e., temperature, pH and nutrients etc. The nursery system will consist of number of tanks with different sizes. Since, algae grow initially in smaller tanks and then need a large area to cultivate; nursery system will monitor and control the flow of algae in these tanks with considering the factors affecting it. Page 6 of 117
  16. 16. Writing Documentation That Works Contents 4.1.2. Strategic Plan This project is congruent with the strategic plan and long-term objectives of the organisation. This is reflected particularly strongly by the will to enter the bio fuel production markets. 4.1.3. Project Selection Criteria This project has been selected because there was a severe need of an automated system to control the flow of algae in the early cultivation of algae. This project is also an integral part of the overall bio fuel solar energy program to assist the production of bio fuel. The product of this project is a nursery system that can be transferred to anywhere it is required and control the early cultivation of algae. Page 7 of 117
  17. 17. Writing Documentation That Works Contents 4.2. Scope Planning 4.2.1. Product Description For a description of the product of this plan, please refer to topic 4.1.1. 4.2.2. Project Charter • The Business Need The business need of the system is to minimize the amount of human effort in the early cultivation of algae. This is important to the business because large number of human efforts require large amount of money. With the automated system human effort will be decreased and this system will be one time investment. • Product Description The product that will be produced at the end of this project will be a nursery system that can be supplied to anywhere required. The nursery system will consider all the important factors that affect the cultivation of algae and its quality i.e., temperature, pH and nutrients etc. The nursery system will consist of number of tanks with different sizes. Since, algae grow initially in smaller tanks and then need a large area to cultivate; nursery system will monitor and control the flow of algae in these tanks with considering the factors affecting it. • Product Manager The project manager for this project is to be Mr. XYZ. XYZ will have the full authority over the budget and resources allocated to this project. No further seeking of resources will be accepted unless it is presented by XYZ. • Constraints • Budgets and time • Availability of Human Resources Page 8 of 117
  18. 18. Writing Documentation That Works Contents • Assumptions It is assumed that: • There will be constant easy access to the Program Director; • Bio fuel will not be superseded by another type of technology before production begins; • No member of the project team will leave the team before the end of the project. 4.3. Scope Definition 4.3.1. Scope Statement The scope of the project is to develop a project management plan for nursery system project. The Nursery System Project Management Plan will provide a project plan for the development of a Nursery System which can be exported anywhere around Australia. The business need of the system is to minimize the amount of human effort in the early cultivation of algae. Page 9 of 117
  19. 19. Writing Documentation That Works Contents 4.3.2. Work Breakdown Structure (WBS) Please, refer to Appendix F – WBS. 4.4. Scope Verification This section seeks to identify the critical success factors and evaluation of those factors upon delivery of the strategic plan to the stakeholders. 4.4.1. Critical Success Factors There are number of critical success factors that will decide whether the project has been successfully completed. They are described as follows: 1. The nursery system is completed meeting all the required specifications; 2. The project is completed in a time as was planned; 3. The nursery system is in a working condition with ease; 4. It is easy to train a person with all the functional & technical specification of the system; and 5. The system meets all of the quality standards as were planned. 4.4.2. Evaluation Measures Stakeholders can check the quality by deploying the prototype system on a small scale. The output of the system can be analyzed. After testing the prototype system, the system will be deployed on the production site where the output can be further analyzed. After testing this, stakeholders can decide whether system is meeting all of the requirements or is it missing few of the features as planned. Page 10 of 117
  20. 20. Writing Documentation That Works Contents 4.5. Scope Change Control This section defines how planning and management of changes to the scope, via change request, is carried out. This section also details how any scope management plans; corrective actions and lessons learnt documentation should be completed. 4.5.1. Scope Changes Any change requests will be considered by a Change Control Committee, consisting of the project manager, project sponsor, and key stakeholders such as the head of the ANU BioSolar program. Any change will be considered in the light of its impact on project schedule, cost, quality and overall potential improvement of the Nursery System. All rejected and approved changes, and the reasons for rejection or approval, will be documented in a Change Management document, which, together with the original scope statement, will form the project scope baseline. For any change requests that come during the project, a proper path of communication will be required to communicate the change to the respective authority. The request must include the strong justification and grounds for implementing the change. The request should be submitted to and approved by the project manage. If the project manager feels that this change request is of any worth, then he may approve it and forward to the program manager. Both project and program managers will reserve the right to contest the change based on practicalities and delays caused, costs incurred and quality effects. Once approved, the requested changes will be integrated in to the project plan, which will be disseminated to each stakeholder, including the effects on costs, timeliness and quality. The base line should remain the same and the changes should be mentioned separately. 4.5.2. Corrective Action Where a scope change request has been submitted and approved, the following corrective actions shall apply. 1. It will be integrated into the project plan in a separate section; 2. New costs, timeframes and quality effects will be detailed; Page 11 of 117
  21. 21. Writing Documentation That Works Contents 3. All new tasks will be integrated into the WBS and assigned; 4. All cost increases will be factored into phasing and overall budgets; and 5. The scope verification adapted to suit new deliverables. If there is any change or delay in the timeline, which is not caused by any scope change, it has to be reported to the project manager. The program manager has to be informed about this delay by project manager. If the delay can be recovered through additional hours, the overtime can be paid to the employees who will work on it. In the event of a major delay, a corrective action report (CAR) will be created giving options of how to proceed. This will include the amount required to get back on time, the quality drop that will be required to get back on time or the time that will be lost. This will be disseminated to the program manager and internal stakeholders. 4.5.3. Documentation All changes, the efforts required to work on those changes and the communication done for the change requests are to be documented and approved by the project manager. The documentation has to be shared on Google Docs so that the whole project team has access on it. (Refer to Project Communications Plan for further description.) Page 12 of 117
  22. 22. Writing Documentation That Works Contents 5. Project Time Management This section describes all the strategies that have been adopted to manage the time, which affects one of the most important aspects of a project, i.e. Schedule. The section will start from the activity definition, continue with defining the duration of activities, the resources used in the activities, schedule development and will end with explaining how to manage control the time management process in schedule control section. 5.1. Activity Definition Please see below the activity list for this project. All constraints and assumptions are listed in the project charter, in the scope initiation section (4.1.1). Please, refer to the Appendix A – Project Gantt chart, Appendix F – WBS and Appendix G – WBS Dictionary. 5.2. Activity Sequencing We have used Network diagram to show sequencing of activities. Network diagram is a schematic display of the logical relationships among, or sequencing of, project activities. Please, refer to the Appendix A – Project Gantt Chart. Page 13 of 117
  23. 23. Writing Documentation That Works Contents 5.3. Activity Duration Estimating The Work Breakdown Structure contains the times that have been estimated, as shown below. 5.3.1. Basis of Estimates This is a list of further assumptions that were taken during development of the estimates. • The number of human resources is assumed. • Raw material can be supplied without any interruption. • Feed of preliminary design and prototype will be provided on time. 5.4. Schedule Development This section details the start and finish dates and how to manage the timelines for the project. The schedule assumes that the standard hours of the project are 8 hours per day 5 days per week, excluding public holidays. 5.4.1. Project Schedule To view the project schedule, please refer to the Gantt chart attached in Appendix A – Project Gantt Chart. 5.4.2. Schedule Management Plan If there is a schedule change or a delay in any specific task is identified before the activity becomes late, the project manager is to reallocate the necessary resources according to the changes that have occurred. The Project Manager should investigate why there was a delay going to happen. If it’s because of the resources that were assigned to the activities, necessary action should be taken against them. Page 14 of 117
  24. 24. Writing Documentation That Works Contents 5.4.3. Resource Requirement Update In the event of corrective actions being approved by the Project Manager, where there are cost or resource implications, these are to be tracked and included in the budget. This will be done by formal notification to the project accountant via email and followed up in writing. If there is an issue with the number of required resources, Project Manager should try to fill the space as soon as possible. 5.4.4. Constraints and Assumptions The constraints on this section include standard hours to be worked, because it limits the ability of workers to complete tasks by their allotted time. Assumptions • The number of required employees will always be available on time throughout the project. • The attendance of the employees will remain constant. • No employee will resign during the project. • There will be no significant and unrecoverable ‘lags’ in the proposed schedule. 5.5. Schedule Control 5.5.1. Schedule Updates A schedule update is considered to be anything that changes the start or finish time of another work activity down to the level three tasks. These include any level four tasks or below that affect higher-level tasks. To assist in schedule management once a task is complete, the WBS will be updated via the online software. In addition, the person in control of completing the work activity is to advise the project manager and anyone whose task it will affect. The updated WBS will be saved as a new name with updated date as well. In that way, it would be easy to keep track of the changes and updates. Page 15 of 117
  25. 25. Writing Documentation That Works Contents 5.5.2. Corrective Actions In the event of a completion time that will affect another task either by allowing it to start earlier or forcing it later, a formal schedule update request must be submitted to the project manager with a corrective actions proposal including an estimated cost of any such proposal. If accepted by the project manager – with no corrective actions available – they will notify the project sponsor, program manager and any relevant internal and external stakeholders. In addition, the project manager will inform the other team members affected about the change to schedule and seek any possible corrective actions from that work group to get the project back on time. Page 16 of 117
  26. 26. Writing Documentation That Works Contents 6. Project Cost Management Cost is one of the Triple Constrains of a project. To create a successful project, project manager must have a comprehensive consideration of the cost to achieve the project goals, any cost overestimate and underestimate may ruin the project during the project life cycle. This cost management plan serves to effectively and efficiently allocate resources for development of a strategic plan for developing a prototype of a nursery system with the capacity to cultivate 450 litres of algae for the Bio-fuel program. The range of the total cost of the project would be +/-10% of the estimate cost ($306,360) which is between $275,724 and $336,996. As a best practice guide PMBOK recommends the Project Cost Management processes include the following: • Resource Planning • Cost Estimating • Cost Budgeting • Cost Monitoring, Controlling and reporting 6.1. Resource Planning Core resources determination is explicitly based on the Work Breakdown Structure (WBS) and the project scope statement presented in the project scope management section. Other resources, such as the office supplies, transportation and utilities etc, which are not directly related to the nursery system but indirectly related to the performance of the project, are included in the General and Administrative charges (G&A). Page 17 of 117
  27. 27. Writing Documentation That Works Contents 6.1.1. Resource Requirement The resource requirement table below presents the summary of core resources in quantity, type, and quality needed to efficiently develop the nursery system. The requirements of the job positions are stated in this table, while the descriptions of the job positions are presented in Human Resource Management Plan in details. The allocation and the cost of the resources at the WBS levels are presented in the cost estimate section. Table 6.1.1. Resource Requirement Table Resource Name Hrs Resource Description/Requirements Labour     Project Manager 512 1. More than five years of Project management experience as well as be PMI certified. 2. Strong planning, motivation and communication skills. Senior Engineer/Analyst 1496 1. Master degree in biology science and/or engineering. 2. At least five years recent specialized experience. Junior Engineer/Analyst 2 888 1. Bachelor degree in biology science and/or engineering. 2. At least two years recent specialized experience. Junior Engineer/Analyst 1 584 Accountant 320 1. At least three years accounting experience, the majority of which should have been in a project related environment. 2. Computer literacy with experience in MSWord, excel. 3. Must be able to work independently and meet deadlines in a team environment. Technician 1 440 1. Relevant tertiary qualifications in biologyTechnician 2 440 Page 18 of 117
  28. 28. Writing Documentation That Works Contents science or/and engineering 2. At least two years experience in biology-related Technician 3 360 Technician 4 360 Procurement Specialist 1640 1. A purchasing certification is preferred. 2. A minimum of two years working in a general buying environment. 3. Considerable knowledge of purchasing methods and procedures and of the techniques of specification writing. ANU expert 20 Provide suggestions and solve the technical problems at technical level. Hardware     Desktop PC 10 Each PC will be assigned to each employee PC Model: HP Pavilion P6325A I3- 540 Pc or at the equivalent level. Printers 5 Model: Samsung CLP315 Colour Laser Printer or at the equivalent level. Coulter Counter 1 Estimate the culture density of the algae. Fluorescent Tubes 3 Artificial illumination to optimize growth. Immersion Heater 4 2400 watt, 240 volt immersion heater to control the temperature for cultivating the algae at different stage. Pines and Hoses 5 Transfer the algae from small tanks to large tanks. Air Filter 4 Filters for air supply to prevent contamination. Tanks 4 Used to contain the growing algae, the sizes of the tanks are 250ml, 250ml to 4l, 4l to 20l, 50l, respectively. Materials     Fertilizers Nutrient Media 500 Fertilizer nutrients such as nitrogen, phosphorus, potassium and carbon source are needed to cultivate algae in the nursery system. Page 19 of 117
  29. 29. Writing Documentation That Works Contents Glassware 5 Contain the sample of the algae cultures. 6.2. Cost Estimating Commonly used tools and techniques to assist in creating a cost estimate include analogous cost estimating, bottom-up estimating, parametric modelling, resource cost rates, project management software, vendor bid analysis and reserve analysis (Kathy Schwalbe, 2007).In this project, cost estimations are created using bottom-up estimates and based on the market prices for goods and services in the Australian economy and the Australian most popular job site SEEK.COM pay check survey. Every individual work items or activities in the WBS are allocated a cost and summed to get the higher level total. When creating cost estimations and allocating costs to resources requirements, significant consideration is given to uncertainties such as major scope changes and extraordinary events. A 5% contingency reserve (estimated by predetermined guidelines and the risk level of the nursery system) is created to allow for future situations that may be partially planned for, and a 5% management reserves is set to allow for future situation that are unpredictable. Hence the budget is therefore flexible to cater for any uncertainties and the budget itself forms the cost control mechanism (Meredith J. and Mantel S, Jr. 2006). Table 6.2. Project Cost Estimates Notes: 1. General & Administrative charges (G&A) are calculated as 10% of the total cost of the core resources. 2. The project manager is assigned to complete several specific WBS activities in the project while he/she is managing the whole project, and all the labour costs of the project manager are calculated in the project management level. WBS activities Resources Name Unit/hr Cos t/uni Subtotal s WBS level 1 % of the total Page 20 of 117
  30. 30. Writing Documentation That Works Contents t/hr totals Project management         54681 17.85%   Project Manager 512 55 25960     project Accountant 320 40 12800     Desktop PC 10 800 8000     Printers 5 150 750     G&A charges     4971     Initiating         3344 1.09% Identify key stakeholders Project Manager 8 NA 0     Hold project kick-off meeting Project Manager 8 NA 0     Senior Engineer/Analyst 8 40 320     Junior Engineer/Analyst 1 8 30 240     Junior Engineer/Analyst 2 8 30 240     Review Scope Project Manager 56 NA 0     Senior Engineer/Analyst 56 40 2240       G&A charges     304     Planning         90640 29.59% Hold team planning meeting Senior Engineer/Analyst 40 40 1600     Prepare team contract Project Manager 40 NA 0     Gather functional requirements Junior Engineer/Analyst 1 120 30 3600     Junior Engineer/Analyst 2 120 30 3600     Gather technical requirements Junior Engineer/Analyst 1 120 30 3600     Junior Engineer/Analyst 2 120 30 3600     ANU experts 20 50 1000     Verify requirements Senior Engineer/Analyst 56 40 2240     Review of Sensors used Junior Engineer/Analyst 1 40 30 1200     Junior 40 30 1200     Page 21 of 117
  31. 31. Writing Documentation That Works Contents Engineer/Analyst 2 Review of the system logic Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Review communicati ons environment Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Review geographic factors Junior Engineer/Analyst 1 56 30 1680     Junior Engineer/Analyst 2 56 30 1680     Review of baseline Senior Engineer/Analyst 40 40 1600     Identify sensors to use Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Identify new system logic Junior Engineer/Analyst 2 40 30 1200     Junior Engineer/Analyst 1 40 30 1200     Identify communicati ons consideratio ns Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Identify mitigation of geographic factors Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Identify target areas for improvement Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Define system requirements Senior Engineer/Analyst 160 40 6400     Page 22 of 117
  32. 32. Writing Documentation That Works Contents Define target performance metrics Senior Engineer/Analyst 48 40 1920     Hardware vendors Procurement Specialist 40 30 1200     Coulter Counter 1 200 00 20000     Fluorescent Tubes 3 20 60     Immersion Heater 4 100 400     Pines and Hoses 5 60 300     Air Filter 4 100 400     Tanks 4 100 0 4000     Communicati ons vendors Procurement Specialist 40 30 1200     Design partners Procurement Specialist 40 30 1200     Implementati on partners Procurement Specialist 64 30 1920       G&A charges     8240     Executing         75922 24.78% Draft preliminary design documents Senior Engineer/Analyst 240 40 9600 Preliminary hardware design Senior Engineer/Analyst 80 40 3200     Preliminary communicati ons design Senior Engineer/Analyst 80 40 3200     Preliminary support environment design Senior Engineer/Analyst 80 40 3200     Review preliminary design documents Senior Engineer/Analyst 40 40 1600     Project Manager 40 NA 0     Obtain feedback/inp ut on design Project Manager 40 NA 0     Senior Engineer/Analyst 40 40 1600     Review of design based on feedback Senior Engineer/Analyst 40 40 1600     Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Develop detailed Project Manager 40 NA 0     Page 23 of 117
  33. 33. Writing Documentation That Works Contents hardware design Develop detailed support environment design Project Manager 40 N A 0     Align long/short term design with business goals Project Manager 80 NA 0     Senior Engineer/Analyst 80 40 3200     Procure Materials Procurement Specialist 120 30 3600     fertilizers nutrient media(ml) 500 NA 1000     Glassware 5 20 100     Construct Prototype Technician 1 96 40 3840     Technician 2 96 40 3840     Technician 3 96 40 3840     Technician 4 96 40 3840     Test Prototype Junior Engineer/Analyst 2 80 30 2400     Junior Engineer/Analyst 1 80 30 2400     Evaluate Prototype against requirements Senior Engineer/Analyst 40 40 1600     Make adjustments to prototype as needed Technician 1 40 40 1600     Technician 2 40 40 1600     Re-Test prototype Junior Engineer/Analyst 1 40 30 1200     Junior Engineer/Analyst 2 40 30 1200     Senior Engineer/Analyst 40 40 1600     Review deployment team tasks and timeline Senior Engineer/Analyst 24 40 960     Project Manager 24 NA 0     Communicat e impact to community Project Manager 24 NA 0     Test Nursery System Senior Engineer/Analyst 24 40 960     Page 24 of 117
  34. 34. Writing Documentation That Works Contents Junior Engineer/Analyst 1 24 30 720     Release to production/o perations environment Senior Engineer/Analyst 24 40 960     Obtain feedback Junior Engineer/Analyst 1 24 30 720     Prepare user manual Junior Engineer/Analyst 1 24 30 720     Junior Engineer/Analyst 2 24 30 720       G&A charges     6902     Monitoring and controlling         42416 13.85% Conduct weekly progress meetings Project Manager 0 NA 0     Document problem - tracking procedures Senior Engineer/Analyst 16 40 640     Manage contracts with suppliers Procurement Specialist 1264 30 37920       G&A charges     3856     Closing         11616 3.79% Prepare final project report Senior Engineer/Analyst 40 40 1600     Project Manager 40   0     Document lessons learned Junior Engineer/Analyst 2 80 30 2400     Junior Engineer/Analyst 1 80 30 2400     Senior Engineer/Analyst 80 40 3200     Distribute to team members Senior Engineer/Analyst 24 40 960       G&A charges     1056     Reserves         27620 9.06% Management reserves     13809.9 5     Contingency       13809.9     Page 25 of 117
  35. 35. Writing Documentation That Works Contents reserves 5 Total         306360 100.00% 6.3. Cost Budgeting Project cost budgeting involves allocating the project cost estimate to individual work items over time. The main goal of the cost budgeting process is to produce a cost baseline for measuring project performance and project funding requirements. Based on the cost estimations, the following project budget baseline is planned to fully implement the project from initiation to completion. The budget allocated in each month includes labour cost, the cost of hardware and materials that are expected to incur in that month. The office supplies, such as printers, desktop PC are depreciated using straight-line method in the whole project life at the project management level. The costs of other equipments, such as coulter counter, immersion heater, etc, which are directly related to the development of the nursery system are depreciated into the actual months of their corresponding WBS activities. Please, refer to Appendix B - Table 6.3. Project Cost Baseline. 6.4. Cost Monitoring, Controlling and Reporting Deviations from the cost baseline should signify critical cost performance signals of the project. Budget overrun or underutilization should be importantly considered as a major change to the budget (Project Management Institute, 2000). Therefore, a well-disciplined cost monitoring, controlling and reporting system is very important. Project Management Institute (2004) suggests, a Project Manager, when planning for controlling project costs, should take the following items into account: 1. Influencing the factors that create changes to the cost baseline. Page 26 of 117
  36. 36. Writing Documentation That Works Contents 2. Ensuring requested changes are agreed upon 3. Managing the actual changes when and as they occur. 4. Assuring that potential cost overruns do not exceed the authorised funding periodically and in total for the project. 5. Monitoring cost performance to detect and understand variances from the cost baseline. 6. Recording all appropriate changes accurately against the cost baseline. 7. Preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage. 8. Informing appropriate stakeholders of approved changes. 9. Acting to bring expected cost overruns within acceptable limits. In addition to the above, it is also recommended that a Project Manager takes into account the following: 1. Thorough planning of the work to be performed to complete the project 2. Good estimating of time, labour and costs 3. Clear communication of the scope of required tasks 4. A disciplined budget and authorization of expenditures. Project accountant plays an important role in ensuring that project costs are being routinely monitored, appropriately controlled and reported in a timely manner. As such, the following tasks must be performed by the project accountant in the cost control system: 1. Keeping track of project cost performance throughout the project life and conduct budget review in every month, planned milestone and project phase. Page 27 of 117
  37. 37. Writing Documentation That Works Contents • Refer to the following appendices for report templates: • Appendix C - Monthly Project Financial Performance Report Template • Appendix D - Life to Date Project Financial Performance Report • Appendix E - Labour Cost Analysis Report 2. Detecting and investigate the cause of the variance and make necessary recommendations to the project manager. 3. Ensuring that all appropriate changes are recorded accurately in the cost baseline under the project manager’s approval. Based on the project accountant’s recommendations, the project manager should: 1. Schedule meetings and inform appropriate stakeholders of the changes; ensure that changes to the cost baseline are minimised, authorised and agreed upon by all stakeholders. 2. Rectify the changes and manage actual changes with the agreement of the stakeholders. 3. Distribute modified plans to the stakeholders and the management team. 6.5. Other considerations The followings are other considerations the project manager and the project accountant should take into account that may lead to the budget out of the range. 1. Resources over-allocation or under-allocation will end up with the delays of the deliverables and the increase of the costs. (Please refer to Human Resource Section for details) Page 28 of 117
  38. 38. Writing Documentation That Works Contents 2. As the budget of the project is estimated based on the market prices of the goods and services in Australia, the actual acquisition costs of materials and equipments will vary among vendors that might create the deviation from the estimated costs 3. Contingency reserves will be underestimated in the budget because of misestimating the level of the risks. Page 29 of 117
  39. 39. Writing Documentation That Works Contents 7. Project Quality Management The primary challenge of project management is to achieve the project goals and objectives while adhering to project constraints – usually scope, quality, time and budget (Cline et al, 2010, Schwalbe 2007). Juran (1988) suggests that, 90% of all problems in organisations are systematic and beyond the positive influence of staff. Unfortunately, this also includes issues related to quality (McManus and Wood-Harper, 2007). One of the greatest challenges faced by project managers is to get the process right first time and this means initiating a rigorous quality regime, which is both defined and measureable (McManus and Wood-Harper, 2007). The importance and purpose of Project Quality Management is to ensure that the project will satisfy the needs for which it was undertaken (Schwalbe, 2007). Therefore, having a solid plan to address quality issues in this project is very important and this will help the project team to ensure stakeholders are satisfied with the outputs of this project. 7.1. Scope This document will cover: • Quality Objectives • Quality Policy • Quality Organisational Structure and Responsibilities • Quality Management Process • Other Considerations Page 30 of 117
  40. 40. Writing Documentation That Works Contents 7.2. Quality Objective 1. The final product of this project must be of highest standard, quality, and meets the approved performance specifications and requirements of the ANU’s BioSolar Program. 2. The final product must be flexible and compatible to accommodate any changes and deviations in the cost baseline, time baseline and performance specifications. 7.3. Quality Control In operations management research there are many approaches or standard been recommended to address quality issues in a project management environment. For example, Total Quality Management (TQM) approach, ISO 9000 standard on quality, Project Quality Activity approach and Project Management Planning Quality Model, Capability Maturity Model to name a few (Zwikael and Globerson, 2004; Masters and Frazier, 2007; McManus and Wood-Harper, 2007). Among these, TQM and ISO 9000 standards are found to be the most adopted quality management principles in project management environment. While both of these approaches are very similar it is recommended that this project adopts ISO 9000 principles as a matter of policy in managing project quality related issues. This project policy position is consistent with the overall project management framework principle adopted by the ANU (see http://projects.anu.edu.au/management/index.php, accessed on 15 September 2010). Table 7.3 outlines this policy. Page 31 of 117
  41. 41. Writing Documentation That Works Contents Table 7.3. Quality Management Policy Principles Descriptions 1. Customer focus Understanding current and future customer needs; meet requirement; strive to exceed expectations; and link organisation’s objectives to customer needs 2. Leadership Leaders establish unity of purpose and direction for the organisation. They create the appropriate internal environment. 3. Involvement of People Motivated, committed, and involved people at all levels accept ownership of problems, evaluate their own performance, and freely share information. 4. Process approach Activities and related resources are managed as processes resulting in predictable results and improvement opportunities. 5. Systems approach to management Integrate and align processes; focus effort on key processes; and understand interdependencies, capabilities, and constraints before starting projects 6. Continual Improvement Use a consistent organisation- wide approach to continual improvement to include training in methods, goals to guide, and measures to track. 7. Factual approach to decision making Ensure data and information are accurate, reliable, and accessible; make decisions and take action based upon analysing facts; and challenge opinions and decisions. 8. Mutually beneficial supplier relationships Identify and select key partners; jointly develop and improve with partners; and openly share communication with them. Source: The Australian National University (2008), Course Notes of BUSN7024 – Project Management Principles, Semester 2, 2010. Page 32 of 117
  42. 42. Writing Documentation That Works Contents 7.4. Organisational Structure and Responsibilities The organisational structure to carry out the Quality Management Plan is as follows: Table 7.4. Quality Review and Audit Team Quality Review and Audit Team Job Responsibilities Project Manager 1. Quality monitoring and control review and audit process and arrange audit meetings. 2. Quality policies are implemented throughout the entire project. Project Accountant 1. Ensure that project is on budget and cost associated with quality control is accounted for through critical milestone audit points. 2. Conduct professional audits and report any changes in actual spend or available funds that will affect project quality Senior Project Officer 1. Ensure that quality is maintained at all milestone points 2. Ensure that all critical events and activities are carefully implemented 3. Audit for any deviations, identify cause, and report for corrective actions Senior Project Consultant (Scientist from ANU BioSolar Program) 1. Review project performance against the approved technical performance specification. 2. Provide necessary technical recommendation to the Project Manager and Project Director on quality improvements to ensure the project satisfies its technical objectives. Page 33 of 117
  43. 43. Writing Documentation That Works Contents Quality Management Process Project Management Body of Knowledge (PMBOK) prescribes three main processes as being quality management process. These are, planning quality, performing quality assurance and performing quality control (PMI, 2004). These are discussed below. 7.4.1. Quality Planning Quality planning involves identifying which quality standards are relevant to the project and determining how to satisfy them (PMI, 2004). PMBOK also recommends that quality planning should be performed in parallel with the other project planning processes (PMI, 2004). As mentioned above in Table 1, the ISO 9000 has been adopted as a matter of policy for this project and this table also provides guidance for the Project Manager as to what needs to be performed during quality planning stage to ensure that Quality Policy (ISO 9000) is adhered to during this project. Researchers in the project management suggests that, by asking probing questions and challenging the assumptions i.e., the validity of estimates and project delivery methods, it is possible to steer a situation towards an environment where either where either the problem does not exist or the objectives can co-exist and hence can be collectively achieved (Gill, 2008). Following this approach the PM can empower each project team member to raise any quality issues that may adversely impact customer satisfaction KPIs. PM then can raise those issues in the Quality Review and Audit Team to resolve them and document the issue and resolution in the Quality Management Plan. This could significantly minimise any potential risk of poor customer satisfaction from project deliverables. Page 34 of 117
  44. 44. Writing Documentation That Works Contents Project scope is an important consideration in planning for project quality management. It is PM’s responsibility to ensure that s/he takes project scope into account in planning and executing project quality management. Project quality planning also involves communicating the correct actions for ensuring quality in a format that is understandable and complete (Schwalbe, 2007). For example, in order to satisfy the first principles of ISO 9000, the Project Manager should carefully document and explain any key performance indicators (KPIs) that may have been given by the customers to the entire project team (including any third party resource provider). This will ensure that customer needs are fully understood by each member of the project team. PMBOK suggests that a quality management plan may be formal or informal, highly detailed or broadly framed, based on the requirements of the project (PMI, 2004). Due to the level of technical complexity that could be involved in executing this project, it is recommended that the quality management plan is prepared is a formal and as detailed plan as practical to ensure the quality policy can be adhered to through out the project. In summary, organisational policies related to quality, the particular project scope statement and product descriptions, and related standards and regulations are all important input to the quality planning process (Schwalbe, 2007) Table 7.5.1 summarises a range of checkpoints, at various WBS levels, that the PM should ensure that the recommendations provided in this quality management plan is adhered to. Table 7.5.1. Quality Management Plan WBS Number Activities Recommendation on Quality Management 1.1 Project Initiating • Project manager must ensure that the project team has the correct information on Project Scope and Project Budget and an approved copy of this Project Management Plan before Project Kick-Off meeting. • In Project Kick-Off meeting, PM must go through the project scope thoroughly and seek feedback from the respective team members to ensure the project scope is clearly understood by team members. 1.2 Project Planning • Project manager must ensure that performance and process Page 35 of 117
  45. 45. Writing Documentation That Works Contents audits are done at all milestone points throughout the project. 1.2.3.3 Verify Technical and Functional Requirement • At this point, Project Manager must ensure that the technical and functional requirements have been reviewed and endorsed by Senior Scientific Consultant. • Report any process and performance deviations to relevant stakeholders and take immediate corrective actions • Obtain sign-off from the Quality Management Committee to ensure project objectives have been catered for in identifying the technical and functional project requirements. 1.2.4 Analysis • Appropriate data analysis methods (qualitative or quantitative) must be used to analyse data through out the project • Data analysis process must be clearly defined and free of personal influences and subjective information • Analysed data must be accurately tabulated and presented for documentation • Adequate funding must be allocated for quality data analysis • Data analysis must be conducted within the planned budget • Any deviation/variance to the cost baseline must be notified and investigated • Corrective actions must be immediately taken to rectify • Sufficient time must be allocated for quality data analysis • Data analysis must be conducted within the planned schedule/time • Any delays/ over-run to the scheduled time must be notified and investigated 1.2.4.2 Review of baseline • Obtain sign-off from the Quality Management Committee to ensure all requirements in Project Scope are achievable within the Project Baseline. • Report any process and performance deviations to relevant stakeholders and take immediate corrective actions • Project Accountant must conduct financial and cost audits at all milestone points throughout the project life • Report any variances from the cost baseline to project manager to take necessary actions • Time/schedule audits must be conducted to ensure that lower level activities are implemented on time to achieve higher level/ milestone activities Page 36 of 117
  46. 46. Writing Documentation That Works Contents • Causes of delays or early execution must be investigated and necessary actions immediately taken to ensure quality 1.2.4.6 Review Current Market Solution Vendors Project Manager should utilize the Project Procurement Plan to ensure quality process is maintained during procurement process. Research on current suppliers and type, kind, quantity, and quality of raw materials is a crucial milestone activity of the project. The research method, type, time allocation, sources of information, and qualifications and skills of research officers are critical for quality research outcome. This high level activity is the core activity of the project; hence, adequate funding and time must be allocated to achieve high performance and quality. Following factors must be addressed and performed during procurement process: • Research problem/area must be properly stated and specifically defined • Research officers must be qualified and have necessary research skills and knowledge • Research must be conducted within the planned budget • Research must be conducted within the planned schedule/time • Appropriate research design, methodology and type must by employed • Genuine and reliable sources of data are used for literature review • Adequate funding must be allocated for quality research outcome • Any deviation/variance to the cost baseline must be notified and investigated • Corrective actions must be immediately taken to rectify • Sufficient time must be allocated for quality research outcome • Any delays/ over-run to the scheduled time must be notified and investigated • Corrective actions must be immediately taken to rectify • 1.3 Executing • Implementation should be according to this Project Management plan • Implementation process should be according to planned quality procedures and standards Page 37 of 117
  47. 47. Writing Documentation That Works Contents • Performance audits/checks must be conducted through meetings at every key milestones or deliverables • Any deviations must be accounted for and sources identified for immediate corrective actions • Adequate funding must be allocated for strategic plan implementation • Implementation process must be executed within the planned budget/costing • Any deviation/variance to the cost baseline must be notified and causes/sources investigated • Corrective actions must be taken immediately rectification • Budget provisions must be made to cater for any contingencies during the course of strategy implementation • Sufficient time must be allocated for strategic plan implementation • Implementation process must be executed within the planned schedule/time • Any delays/ over-runs to the scheduled time baseline must be investigated and identified • Corrective actions must be immediately taken to rectify sources • Time allowance must be made to cater for any changes to the scheduled time baseline 1.4 Monitoring, Controlling and Reporting • Performance audit/risk management committee must be established • Performance audits/checks must be conducted through meetings at every key milestones /deliverables • Any deviations/changes must be accounted for and sources identified for immediate corrective actions • Adequate funding must be allocated for strategic plan implementation reviews • Review process must be executed within the planned budget/costing • Any deviation/variance to the cost baseline must be notified and causes/sources investigated • Corrective actions must be taken immediately rectification • Sufficient time must be allocated for strategic plan implementation review process Page 38 of 117
  48. 48. Writing Documentation That Works Contents • Review process must be executed within the planned schedule/time • Any delays/ over-runs to the scheduled time baseline must be investigated and identified • Corrective actions must be immediately taken to rectify sources • Time allowance must be made to cater for any changes to the scheduled time baseline 7.4.2. Quality Assurance The Quality Review Team should hold regular meeting (either weekly or fortnightly) to address any quality issues related to this project. Figure 7.5.2 outlines the recommended flow of activities to ensure quality is maintained throughout every step of this project. Figure 7.5.2. Quality Assurance Approach Page 39 of 117 Quality Audit and review team Meeting Convened Quality Deviations/Defects in time, cost, and performance specifications identified and thoroughly discussed. Resolutions in according with Quality Management Policy of this project and recommendations adopted and plans made for immediate corrective actions PM to report to stakeholders on critical changes in scope, cost, schedule and performance for approval and resource requirements Approved Quality improvement recommendations and resolutions are implemented by respective project teams Reports on the corrective actions including normal audit reports are ready for the next meeting and communicated to the relevant stakeholders.
  49. 49. Writing Documentation That Works Contents Quality assurance (QA) provides an umbrella for another important quality activity, continuous process improvement (PMI, 2004). Activity and information flows in Figure 7.5.2 hinges on the ongoing fostering of continuous improvement culture and motivation within the project team. By fostering continuous improvement philosophy within the project team will reduce waste of resources and non-value-added activities, which in turn allows processes to operate at increased levels of efficiency and effectiveness. 7.4.3. Quality Control Performing quality control (QC) in a project involves monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. Although one of the main goals of quality control is to improve quality, the main outcomes of this process are acceptance decisions, rework, and process adjustments (Schwalbe, 2007). PMBOK recommends that quality control should be performed throughout the project duration (PMI, 2004). There are many general tools and techniques to assist in performing quality control. Table 7.5.3 below provides a brief description of these tools. Page 40 of 117
  50. 50. Writing Documentation That Works Contents Table 7.5.3. Tools of Quality Control Tools / Methods Short Descriptions 1. Cause and Effect Diagram (Fishbone or Ishikawa Diagram) Illustrate how various factors might be linked to potential problems or effects. 2. Control Charts Purpose of Control Chart is to determine whether or not a process is stable or has predictable performance. This may also serve as a data gathering tool. 3. Run Chart This method shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Trend analysis is performed using run charts. 4. Scatter Diagram A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. 5. Histogram Histogram is bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. 6. Pareto Charts Pareto chart is a specific type of histogram, ordered by frequency of occurrence, which shows how many defects were generated by type or category of identified cause. 7. Flow Chart Flowcharting helps to analyse how problems occur. A flowchart is a graphical representation of a process. While there are many styles of flowchart, all process flowcharts show activities, decision points and the order of processing. 8. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control. 9. Inspection An inspection is the examination of a work product to determine whether it conforms to standards. Generally, the results of an inspection include measurements. Inspection can be conducted at any level. 10. Defect Repair Review Defect repair review is an action taken by the quality control department or similarly titled organisation or team to ensure that product defects are repaired and brought into compliance with requirements or specifications. Source: PMI (2004) Page 41 of 117
  51. 51. Writing Documentation That Works Contents The first seven of the tools in Table 7.5.3 are known as “Seven Basic Tools of Quality” (PMI, 2004). Given the nature of this project, it is recommended that the PM uses a combination of the abovementioned approaches to monitor, control and report on quality management related issues. This will allow and benefit the PM to monitor, control and report on both technical and non-technical oriented quality related issues. This project management plan recommends the following approaches/tools to analyse, monitor, report and control quality for this project: • Cause and Effect Diagram • Flow Chart • Run Chart • Inspection • Defect Repair Review 7.5. Other Considerations In addition to the above suggestions and plans provided for good quality planning, quality assurance and quality control, there are several other important issues involved in improving the quality of a project (Schwalbe, 2007). Strong and supportive leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organisation’s overall maturity level in project management can all assist in improving quality. 7.5.1. Quality Cost Monitoring and Reporting The cost of quality is the cost of conformance and non- conformance in meeting the project specification and fitness for use. There are various types of cost of quality that the PM needs to be aware of during the execution of this project. Schwalbe (2007) suggested that the following costs are related quality cost: • Prevention cost • Appraisal cost • Internal failure cost Page 42 of 117
  52. 52. Writing Documentation That Works Contents • External failure cost • Measurement and test equipment cost To control budget, it is strongly recommended that during the execution of this project there is structured and routine reporting and monitoring on quality cost. This will allow PM to take corrective action in a timely manner without compromising quality. 7.5.2. Leadership Quality expert, Joseph M. Juran once (in1945) said, “It is most important that top management be quality minded (cited by Schwalbe, 2007). Indeed, without sincere manifestation of interest in maintaining high standard of quality at the top level management of an organisation, there is high risk in a project in producing poor quality output. For this project to accomplish its objective, it is important that top management must create a culture that embraces quality. 7.5.3. Organisational Influence, Workplace Factors and Quality Research shows that organisational issues can have much greater influence on productivity than the technical environment or superiority (Schwalbe, 2007). As such, the PM of this project should keep in mind factors such as organisational politics. The PM function is to remove political roadblocks and create an environment where negative organisational influence does not adversely impact project quality and objective. 7.5.4. Expectations and Cultural Differences Schwalbe (2007) argues that there are many aspects of quality can be defined and measured, many cannot. She suggests that different project sponsors, customers, users and other stakeholders have different expectations about various aspects of a project. Therefore, it is very important for the PM of this to understand these expectations and manage any conflicts that might occur due to differences in expectations from various stakeholders. Page 43 of 117
  53. 53. Writing Documentation That Works Contents 8. Project Human Resource Management People are the most important asset as they determine the success and failure of organizations and projects (Kathy Schwalbe. 2007). This section is created to assist the project manager in managing human resources effectively; the components of this section are as follows: • Human resource planning • Staff acquisition • Team development • Team management 8.1. Human Resource Planning This human resource plan is created to identify and document project roles, responsibilities, and reporting relationships involved in the project. The Organizational Chart, Roles and Responsibilities Assignments, RACI Chart, Staffing management plan in this plan are used to ensure project success. 8.1.1. Organizational Chart This organizational chart provides an organizational structure to manage the project team members that come from different backgrounds and have different functions in the project. Page 44 of 117
  54. 54. Writing Documentation That Works Contents 8.1.2. Roles and Responsibilities Assignment Position descriptions and qualification criteria are essential to select the right people to do the job and ensure all the tasks in the project are assigned to certain people. Table 1.2. Roles and Responsibilities Assignment Project Management Position Responsibilities Qualifications Project Manager  Ensure the Project Team completes the project  Develop the Project Plan with the team and manages the team’s performance of project tasks  Secure acceptance and approval of deliverables from the Project Sponsor and Stakeholders  Make sure the project is delivered in budget, on schedule, and within scope.  1. More than five years of Project management experience as well as be PMI certified.  2. Strong planning, motivation and communication skills. Project Accountant  Keeping track of project cost performance throughout the project life and conduct budget  At least three years accounting experience, the majority of which Page 45 of 117 Project Manager Scientific Consultant Project Accountant Procurement Specialist Senior Engineer Junior Engineer/Analyst 1 Junior Engineer/Analyst 2 Technician 1 Technician 2 Technician 3 Technician 4
  55. 55. Writing Documentation That Works Contents review in every month, planned milestone and project phase.  Detecting and investigate the cause of the variance and make necessary recommendations to the project manager.  Ensuring that all appropriate changes are recorded accurately in the cost baseline under the project manager’s approval. should have been in a project related environment.  Computer literacy with experience in MSWord, excel.  Must be able to work independently and meet deadlines in a team environment. Senior Engineer/Analyst  Establishing and maintaining project technical requirements  Directing the technical implementation according to established schedules and budgets  1. Master degree in biology science and/or engineering.  2. At least five years recent specialized experience. Junior Engineer/Analyst 1  Watching day-to-day progress and quality of work, supervising the work as per specification, maintaining quality control records carrying out quality control tests  Assess the requirements of materials like, fertilisers nutrient media, Immersion Heater, and coulter counter etc. for the nursery system  Bachelor degree in biology science and/or engineering.  2. At least two years recent specialized experience. Junior Engineer/Analyst 2 Technician 1  Constructing and maintaining the works involved to develop the prototype of the nursery system  Top of Form  1. Relevant tertiary qualifications in biology science or/and engineering 2. At least two years experience in biology-related field 3. Excellent communication skills to work in a team. Bottom of Form Technician 2 Technician 3 Technician 4   Procurement Specialist  Develop the solicitation document that states the  1. A purchasing certification is Page 46 of 117
  56. 56. Writing Documentation That Works Contents requirements for acquiring of raw material for nursery system.  Develop a Proposal Evaluation Plan for evaluating the proposals to describe the specific evaluation criteria (such as qualifications, methodology for completing the work, references and cost), and the methods that will be used to apply the criteria.  Research and evaluate suppliers based on price, quality, selection, service, support, availability, reliability, production, and distribution capabilities as well as the reputation and history preferred.  2. A minimum of two years working in a general buying environment.  3. Considerable knowledge of purchasing methods and procedures and of the techniques of specification writing. 8.1.3. RACI Chart In order to show the position roles to the project stakeholders, we created the RACI Chart to identify the responsibility (R), accountability (A), consultation (C) and informed (I) roles to execute the project. Project manager Project accountant Senior engineer /analyst Junior engineer /analyst Technician Procurement specialist Scientific Consultant Design Nursery System R I A C C Build Nursery System I &C I R A A A C Deployment R I A A C C R=Responsibility, only one R per task A=Accountability C=Consultation I =Informed Page 47 of 117
  57. 57. Writing Documentation That Works Contents 8.1.4. Staffing Management Plans and Resource Histogram The purpose of the staffing plan below is to make certain the project has sufficient staffs with the right skills and experience to ensure a successful project completion Page 48 of 117
  58. 58. Writing Documentation That Works Contents 8.1.4.1. Resource Histogram The Resource Histogram presents the number of human resources assigned to the project over time. From the chart, the project manager can determine the number of the people needed each month, which he/she can base on to design the staffing plan to acquire the necessary staffs and develop the project team. Page 49 of 117
  59. 59. Writing Documentation That Works Contents 8.1.4.2. Staffing Management Plan After creating the Resource Histogram, the Project Manager is required to prepare the staffing management plan for recruitment; the staffing management plan (Appendix H – Staffing Management Plan) should include the overall staffing approach, the training plan and reassignment plan. 8.2. Staff Acquisition This section sets forth the acquisition strategy, defines the efforts required to implement it to ensure coordination of the project manager and the human resource department to get the right people to fulfil the project’s needs. 8.2.1. Resource Assignment Page 50 of 117
  60. 60. Writing Documentation That Works Contents 8.2.1.1. Staff Pooling Description The staff pooling description table assists the project manager and Human Resource Department in assessing the characteristics of potential staffs and make decisions of hiring staffs. Table 8.2.1.1. Staff Pooling Description Table Employee Name Employee ID Job Title Period required Department Date Characteristic s Performance Ratin (1=lo 5=hi Previous Experience Personal Interests Personal Characteristics Availability Competencies Proficiencies Overall Assessment Page 51 of 117
  61. 61. Writing Documentation That Works Contents 8.2.1.2. Recruitment Practices During the recruiting, all the staffs must strictly abide by the policies, guidelines and procedures governing staff assignments. Additionally, all the updates to the staffing management plan must be recorded by the project manager. The recruitment gives priorities to current employees in the bio- fuel program. Page 52 of 117
  62. 62. Writing Documentation That Works Contents 8.2.1.3. Project Staff Assigned Based on the needs of the project, staff may be assigned full time, part time, or variably, which is presented in the resource requirement in project time management section. Page 53 of 117
  63. 63. Writing Documentation That Works Contents 8.2.1.4. Project Team Directory The template below is to be used by the project team when taking down details of relevant members and stakeholders. Employee Name Employee ID Role Phone Mobile Fax Email Address 8.3. Team Development The main goal of this team development plan is to help people work together more effectively to improve project performance and achieve the project goals. 8.3.1. Training To ensure all the team members are qualified for the project, they are arranged to take specific training courses based on information from the Roles and Responsibilities Assignments table and the staff pooling description. 8.3.2. Team Building Activities Project manager is recommended to organize team-building activities monthly; the options of team building activities, physical challenges or psychological preference indicators are determined by the performance of the team members and the requirements of the upcoming tasks. 8.3.3. Input to Performance Appraisals The performance reports below are used to evaluate the performance of the team members, as documentation for updates to the human resources management plans. Page 54 of 117
  64. 64. Writing Documentation That Works Contents 8.3.3.1. Employee Self-Evaluation Assessment Self-evaluations help employees measure how they are performing in their job. This assessment form can provide guidance and consistency within our project, to help the Project Manager and Human Resources department to record, track, and report information for the employee evaluation process. This form is required to assess monthly. Template 8.3.3.1. Employee self-evaluation assessment Employee Information Employee Name:       Employee ID:       Job Title:       Date :       Department:       Manager:       Review Period:       To       Goals Describe the goals you had set out to accomplish for this time period: ch goals did you accomplish? Which other objectives did you meet, beyond your stated goals? Which achievements are you most proud of? Which goals did you not accomplish and why not? Risks and Expectations What kind of risks did you take during the time span of this evaluation? What are your expectations for the next evaluation time span? What can your manager do to help you achieve your future goals? What are your goals for the next evaluation? Please be clear and concise Comments Additional Comments: Page 55 of 117
  65. 65. Writing Documentation That Works Contents 8.3.3.2. Employee Performance Review The template below is to assess employees’ performance by their superior (refer to the organizational chart) monthly. Please, refer to Appendix I - Employee Performance Review.xlsx. 8.3.4. Performance Improvements Project manager has the responsibility to set up the HR management mechanism to improve employees’ performance. Page 56 of 117
  66. 66. Writing Documentation That Works Contents 8.3.4.1. Improvement in Individual Skills a) Set up reward and recognition system. b) Discuss work and personal issues with employees via e-mail, telephone, or other communication media (refer to communication management plan for details). c) Provide training opportunities to employees who are in need. (Refer to training section.) Page 57 of 117
  67. 67. Writing Documentation That Works Contents 8.3.4.2. Improvement in Team Behaviours a) Keep an issue log to document, monitor, and track issues that needed to solve for the project team to work effectively. b) Organize team-building activities to help employees to understand and value each other’s differences in order to work effectively as a team. (Refer to team building section). 8.4. Team Management Team management is essential in Human Resource Management Plan. The Project Manager is required to do the followings to motivate and manage his/her team members in case changes are requested to the project. a) Have formal or informal conversion with employees regularly; discuss any issue with them when they are in need. b) Record and keep track on all the updates to human resources plans. c) Inform any personnel changes to stakeholders in a timely manner d) Maintain and update the Reward and Recognition System regularly. e) Take corrective or preventive actions to deal with any unexpected event, such as employee leaves the project. Page 58 of 117
  68. 68. Writing Documentation That Works Contents 9. Project Communication Management In order to keep the project activities dynamic between team members and other stakeholders within the project itself, it is mandatory that all communications align perfectly and are up to date. Communications management incorporates methods for collecting, gathering and disseminating communication, as well as information across the internal teams and stakeholders of the project. This documentation will list methods of communication, as well as the technology that will help communication during various tasks where communication is needed. 9.1. Communications Planning Before one is to follow the guidelines for distributing information discussed below, it is important to run skill checks on team members and also stakeholders. This will be used to find the most optimized method of carrying out these communication processes i.e., to find out which software is most commonly used by individual members (this will decrease new learning curves, saves time and increases productivity since they are already familiar with the software). In this project, there is a probability that members will have to work remotely from time to time. Therefore, the team must be flexible in terms of communicating. Although, the guidelines below conjure the recommended method of communication i.e., written or verbal, members are able to make themselves adapt to which of the two methods they prefer to use during a certain situation. Page 59 of 117
  69. 69. Writing Documentation That Works Contents Lastly, along the course of the project, it is expected for the Internet and phone to be the primary channel for conveying information. Fax and postage mails are not to be considered for daily and active communication but are to be used whenever necessary. Domestic or international shipping will be used whenever tangible products, prototypes or deliverables are to be sent. 9.2. Information Distribution The English language is taken into account being the de facto language for all communication and documentation in this project, although, not being the de jure language of communication meaning stakeholders are still able to verbally communicate in other languages beside English. The types of communication that are discussed in this documentation have been divided into either or both dynamic/verbal and/or passive/written communication. Dynamic/verbal communication is when communication is synchronous and happens in real time e.g., talking face to face from one human being to another. Passive/written communication describes communication that happens asynchronously meaning one party is able to reply the opposing party on a different time e.g., sending and replying emails through technological devices. Relating to the previous point made on dynamic and passive communication, this documentation suggests which should be used during a certain task of communication. One should note that dates on which new communication has commenced should be recorded inside the perspective documentation for future reference, not to mention evidence for legal issues if they were to arise. Page 60 of 117
  70. 70. Writing Documentation That Works Contents 9.2.1. Introductions to New Stakeholders and Negotiation Task Method Technology Goal Introducing an existing stakeholder to a new stakeholder Verbal/written communication When introducing an existing member on the team to a new member or a new stakeholder, must notify the existing member in prior to the introduction. It is considered inconvenient for one to meet a new colleague without warning beforehand. • Face to face • Phone/audio/ video/confer ence calls • SMS • Email • Instant Messenger This allows the existing team member to be prepared mentally in order to convey the preferred first impression. Commencing communication/Int roduction with new individuals and stakeholders Verbal/written communication The initial project team must consider good etiquette at all times, particularly, the Project Manager. Greetings should be conveyed politely and with adequate. This is a very crucial task to be completed properly, especially when first impressions are to take place. • Face to face • Phone/audio/ video/confer ence calls • SMS • Email • Instant Messenger The goal to achieve after new communication has started is to allow the mentioned parties to be comfortable with one another. If this is achieved, in return, the parties will have a more relaxed and pleasant environment when communicating. Commencing negotiation Written communication It is a significant issue when one needs to perform negotiation with another human being. Written communication is recommended when a • SMS • Email • Instant Messenger This allows parties to make their own initial statements, ideas and points concisely. Page 61 of 117
  71. 71. Writing Documentation That Works Contents negotiation is to commence. This allows both parties to be concise, exact and follow the concept of brevity when delivering their points. If one prefers to commence a negotiation verbally with another party, one is allowed to as there are no strict restrictions to using this method. Although, a note should be taken to be synoptic but detailed. In return, this allows each party to at least predict a small portion of one another’s favoured decision. Commencing negotiation with individuals from different cultures Written communication It is an even more significant issue when one needs to perform negotiation with another human being coming from a different culture and background. Before making an attempt at this task, it is wise to study and analyse how the particular culture communicates and performs negotiation organically. Thus, one is able to adapt to their environment and dive into natural communication methods. Also ensure to use more common words that most English speakers are familiar with. • SMS • Email • Instant Messenger Beyond the previous task mentioning commencing negotiation in general, written communication is also preferred when communicating with individuals of different cultures and native languages. Written language is better understood by both native and non-native speakers than verbal language due to dialect and accent differences. Page 62 of 117
  72. 72. Writing Documentation That Works Contents Be careful when using certain expressions that are known more in distinct areas or region not globally. Completing negotiation Verbal communication When both parties are close to according on the same level of agreement, it is best to execute the completion of negotiation verbally. This conveys a more reliable personality to one another proving that both parties are serious and dedicated to the agreement. • Face to face • Phone/audio/ video/confer ence calls In order for the considered parties to be on the same level of a specific agreement. Page 63 of 117
  73. 73. Writing Documentation That Works Contents 9.2.2. Meetings, Presentation and Reports Task Method Technology Goal Inception of a meeting When a decision needs to be made or a major brainstorming needs to take place, one should create the inception of a meeting and arrange time, date, venue and topic details. The idea of holding a meeting may take place during verbal communication or written communication. • Face to face • Phone/audio/ video/confer ence calls • SMS • Email • Instant Messenger This task is simply deciding a meeting needs to be held not planning the contents of the meeting yet. Planning of a meeting Written communication Meeting schedules must be clearly set up by the leader of the meeting. It is poor practice to arrange and invite attendees to a meeting that has no agenda that the attendees can refer to. • Microsoft Office Word To properly outline and clearly point out the ideas and itinerary of the meeting. [Email] Invitation of a meeting Written communication After the inception of a meeting has been arranged, an invitation has to be sent out by email to everyone who is obligated or should attend. A formal invitation of the meeting should be sent to attendees in written form via email. Informal invitations or reminders are able to be conveyed by verbal • Face to face • Phone/audio/ video/confer ence calls • SMS • Email • Instant Messenger To announce that a meeting will be held a certain time, date and venue discussing specific topics. Page 64 of 117

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