Project Management 3 Project Man agent 3 Future Managers

What we cover Fundamentals of project management Project management tools and techniques Application of ethics in project management Project estimating and costing Develop a project plan for a simple project Project administration Leadership within the project Projects are team initiatives Project Management 3 Future Managers

Fundamentals of project management

Project management tools and techniques

Application of ethics in project management

Project estimating and costing

Develop a project plan for a simple project

Project administration

Leadership within the project

Projects are team initiatives

Module 1: Fundamentals of project management Project Management 3 Future Managers

Module 1: Fundamentals of project management After completing this outcome, you will be able to: Explain the nature of a project Explain the nature and application of project management Explain the types of structures that are found in a project environment Explain the major process and activities required to manage a project Project Management 3 Future Managers

After completing this outcome, you will be able to:

Explain the nature of a project

Explain the nature and application of project management

Explain the types of structures that are found in a project environment

Explain the major process and activities required to manage a project

1. The nature of the project After completing this outcome, you will be able to: Explain with the aid of an example of a project plan, the characteristics of a project Differentiate between project and non-project work Identify reasons for undertaking projects Identify types of projects and their complexity Project Management 3 Future Managers

After completing this outcome, you will be able to:

Explain with the aid of an example of a project plan, the characteristics of a project

Differentiate between project and non-project work

Identify reasons for undertaking projects

Identify types of projects and their complexity

1.1 Project plan and project characteristics What is a project? A project is a temporary sequence of tasks with a distinct beginning and a definite end that is undertaken to create a unique product or service In addition a project must have defined objectives in order to clearly indicate when the project has been completed Project Management 3 Future Managers

What is a project?

A project is a temporary sequence of tasks with a distinct beginning and a definite end that is undertaken to create a unique product or service

In addition a project must have defined objectives in order to clearly indicate when the project has been completed

1.2 The characteristics of a project What do you think the main characteristics of a project are? Involves a single definable purpose or end-item Every project is unique A project is a temporary activity A project utilises skills and talents from multiple organisations and professions The project can be unfamiliar The project is a risk Process of wanting to achieve a goal Relies on a budget Completed by a team of people Have time and cost constraints Project Management 3 Future Managers

What do you think the main characteristics of a project are?

Involves a single definable purpose or end-item

Every project is unique

A project is a temporary activity

A project utilises skills and talents from multiple organisations and professions

The project can be unfamiliar

The project is a risk

Process of wanting to achieve a goal

Relies on a budget

Completed by a team of people

Have time and cost constraints

Activity 1 The 2010 FIFA World Cup Soccer tournament in South Africa is now in the minds of all South Africans. It is a huge project and the success of it is important to South Africa and Africa, to show the world we can offer such an event successfully. In your own words, give a definition of what a project is Looking at the 2010 World Cup, make a list of seven characteristics of the project – the one’s that are important according to you Project Management 3 Future Managers

The 2010 FIFA World Cup Soccer tournament in South Africa is now in the minds of all South Africans. It is a huge project and the success of it is important to South Africa and Africa, to show the world we can offer such an event successfully.

In your own words, give a definition of what a project is

Looking at the 2010 World Cup, make a list of seven characteristics of the project – the one’s that are important according to you

1.3 Project terminology Project Management 3 Future Managers

1.3 Project terminology Project Management 3 Future Managers

1.3 Project terminology Project Management 3 Future Managers

1.3 Project terminology Project Management 3 Future Managers

1.3 Project terminology Project Management 3 Future Managers

1.4 Project plan The project plan is a formal approved document used to guide both project execution and project control. A project plan may be a summary or a detailed document. Project Management 3 Future Managers

The project plan is a formal approved document used to guide both project execution and project control. A project plan may be a summary or a detailed document.

1.4.1 Steps in the project plan Project objectives, requirements and scope are set. The project objectives or outcomes specify project end-items (what is to be achieved), desired results, and time, cost, and performance targets The specific work activities, tasks, or jobs to achieve objectives are broken down, defined, and listed The project organisation is created specifying the departments, subcontractors, and managers responsible for working activities A schedule is prepared showing the timing of work activities, deadlines, and milestones A budget and resource plan is prepared showing the amount of timing, resources, and expenditures for work activities and related items A forecast is prepared of time, cost and performance projections for the completion of the project Project Management 3 Future Managers

Project objectives, requirements and scope are set. The project objectives or outcomes specify project end-items (what is to be achieved), desired results, and time, cost, and performance targets

The specific work activities, tasks, or jobs to achieve objectives are broken down, defined, and listed

The project organisation is created specifying the departments, subcontractors, and managers responsible for working activities

A schedule is prepared showing the timing of work activities, deadlines, and milestones

A budget and resource plan is prepared showing the amount of timing, resources, and expenditures for work activities and related items

A forecast is prepared of time, cost and performance projections for the completion of the project

1.4.2 Contents of a project plan Documents used during project planning, such as the scope statement, work breakdown structure, and cost estimates The project charter Scope, risk, communication, procurement, and schedule management plans Responsibility assignments Schedule dates and milestones Major risks, constraints, and assumptions and how each will be handled Pending issues and decisions Design and other specifications. Project Management 3 Future Managers

Documents used during project planning, such as the scope statement, work breakdown structure, and cost estimates

The project charter

Scope, risk, communication, procurement, and schedule management plans

Responsibility assignments

Schedule dates and milestones

Major risks, constraints, and assumptions and how each will be handled

Pending issues and decisions

Design and other specifications.

1.4.3 The role of the project plan Guides project execution – roadmap for execution process Documents assumptions Documents alternatives / decisions Communication with stakeholders Defines key management reviews – project “health check” – to see if everything is progressing according to plan Provides a baseline – time that it will take to complete the project. Project Management 3 Future Managers

Guides project execution – roadmap for execution process

Documents assumptions

Documents alternatives / decisions

Communication with stakeholders

Defines key management reviews – project “health check” – to see if everything is progressing according to plan

Provides a baseline – time that it will take to complete the project.

1.5 Project and non-project work Non-project work is repetitive day-to-day work or operations Projects have deadlines, unique deliverables and budgets, and have definite start and end points Project Management 3 Future Managers

Non-project work is repetitive day-to-day work or operations

Projects have deadlines, unique deliverables and budgets, and have definite start and end points

1.6 Reasons for undertaking projects With a project we work towards a goal and specifically the achievement of the goal. The project manager and his team can help us to achieve to goal The work must be completed within the planned time and budget parameters Because of the uniqueness of a project, it’s a challenge and therefore everyone wants to take part and be part of the project By taking part in a project, the project manager and team members gain valuable experience to help them with later projects Starting and finishing a project could hold a benefit for the parent organisation. Putting a new product on the market will definitely benefit the organisation Project Management 3 Future Managers

With a project we work towards a goal and specifically the achievement of the goal. The project manager and his team can help us to achieve to goal

The work must be completed within the planned time and budget parameters

Because of the uniqueness of a project, it’s a challenge and therefore everyone wants to take part and be part of the project

By taking part in a project, the project manager and team members gain valuable experience to help them with later projects

Starting and finishing a project could hold a benefit for the parent organisation. Putting a new product on the market will definitely benefit the organisation

1.6 Reasons for undertaking projects There are five main criteria, which help us evaluate when to use a project: Unfamiliarity Magnitude of the effort Changing environment Interrelatedness Reputation of the organisation Project Management 3 Future Managers

There are five main criteria, which help us evaluate when to use a project:

Unfamiliarity

Magnitude of the effort

Changing environment

Interrelatedness

Reputation of the organisation

1.7 Types of projects 1.7.1 Examples of ancient projects The Great Pyramid of Cheops Project Management 3 Future Managers

1.7.1 Examples of ancient projects

The Great Pyramid of Cheops

1.7 Types of projects 1.7.1 Examples of ancient projects The Crystal Palace Project Management 3 Future Managers

1.7.1 Examples of ancient projects

The Crystal Palace

1.7 Types of projects 1.7.1 Examples of ancient projects The Panama Canal Project Management 3 Future Managers

1.7.1 Examples of ancient projects

The Panama Canal

Types of projects The following are the more commonly undertaken projects: Developing a new product or service – new cell phone Effecting a change in structure, staffing, or style of an organisation – merging of two organisations Designing a new transportation vehicle – Gautrain in Gauteng Developing or acquiring a new or modified information system Constructing a building or facility Building a water system for a community in a developing country Running a campaign for political office, for example, the election of the USA president Implementing a new business procedure or process. Project Management 3 Future Managers

The following are the more commonly undertaken projects:

Developing a new product or service – new cell phone

Effecting a change in structure, staffing, or style of an organisation – merging of two organisations

Designing a new transportation vehicle – Gautrain in Gauteng

Developing or acquiring a new or modified information system

Constructing a building or facility

Building a water system for a community in a developing country

Running a campaign for political office, for example, the election of the USA president

Implementing a new business procedure or process.

1.7.3 Types of projects Project Management 3 Future Managers

Activity 2 – Examples of projects In this activity we are going to make a list of national and international projects In groups of 3 – 5 members, list the national (local) projects that you are aware of. First list the projects in your own environment and then projects from elsewhere in South Africa In your group, make a list of international projects with which you are familiar – projects completed outside South Africa’s borders Collate each groups’ list of national and international projects into a list of projects (Put it up in your classroom on the wall) Project Management 3 Future Managers

In this activity we are going to make a list of national and international projects

In groups of 3 – 5 members, list the national (local) projects that you are aware of. First list the projects in your own environment and then projects from elsewhere in South Africa

In your group, make a list of international projects with which you are familiar – projects completed outside South Africa’s borders

Collate each groups’ list of national and international projects into a list of projects (Put it up in your classroom on the wall)

The new seven wonders Project Management 3 Future Managers

The New Seven Wonders Project Management 3 Future Managers

The nature and application of project management After completing this outcome, you will be able to: Define project management within the recognised published standards Identify and describe project management processes as per recognized best practices Differentiate using examples of each, between project management; general management and technical (end product related) processes Explain and discuss the Human Resources hierarchies of the project team, in accordance with role descriptors. Project Management 3 Future Managers

After completing this outcome, you will be able to:

Define project management within the recognised published standards

Identify and describe project management processes as per recognized best practices

Differentiate using examples of each, between project management; general management and technical (end product related) processes

Explain and discuss the Human Resources hierarchies of the project team, in accordance with role descriptors.

2.1 Define project management Can you think of a definition of project management? The application of knowledge, skills, tools and techniques to project activities in order to meet project requirements as well as stakeholders needs and expectations from a project Project Management 3 Future Managers

Can you think of a definition of project management?

The application of knowledge, skills, tools and techniques to project activities in order to meet project requirements as well as stakeholders needs and expectations from a project

Characteristics of project management Characteristics of project management A single person, the project manager, heads the project organisation and operates independent of the normal chain-of-command. The project manager is the focal point for bringing together all efforts toward a single objective Because each project requires a variety of skills and resources, the actual work might be performed by people from different functional areas or by outside contractors The project manager is responsible for integrating people from different functional disciplines working on the project Project Management 3 Future Managers

Characteristics of project management

A single person, the project manager, heads the project organisation and operates independent of the normal chain-of-command.

The project manager is the focal point for bringing together all efforts toward a single objective

Because each project requires a variety of skills and resources, the actual work might be performed by people from different functional areas or by outside contractors

The project manager is responsible for integrating people from different functional disciplines working on the project

2.1 Define project management Characteristics of project management The project manager negotiates directly with functional managers for support The project focuses on delivering a particular product or service at a certain time and cost and to the satisfaction of technical requirements A project might have two chains-of-command – one vertical and functional, one horizontal and project Project Management 3 Future Managers

Characteristics of project management

The project manager negotiates directly with functional managers for support

The project focuses on delivering a particular product or service at a certain time and cost and to the satisfaction of technical requirements

A project might have two chains-of-command – one vertical and functional, one horizontal and project

2.1 Define project management Characteristics of project management Decision-making, accountability, outcomes and rewards are shared among members of the project team and supporting functional units Though the project organisation is temporary, the functional or subcontracting units from which it is formed are permanent Projects can originate at different places inside or outside the organisation Project management sets into motion numerous other support functions Project Management 3 Future Managers

Characteristics of project management

Decision-making, accountability, outcomes and rewards are shared among members of the project team and supporting functional units

Though the project organisation is temporary, the functional or subcontracting units from which it is formed are permanent

Projects can originate at different places inside or outside the organisation

Project management sets into motion numerous other support functions

2.2 Identify and describe project management processes are per recognised best practices Project Management 3 Future Managers

2.2 Identify and describe project management processes are per recognised best practices Knowledge areas in project management Integration management Scope management Time management Cost management Quality management Human resources management Communication management Risk management Procurement management Project Management 3 Future Managers

Knowledge areas in project management

Integration management

Scope management

Time management

Cost management

Quality management

Human resources management

Communication management

Risk management

Procurement management

2.3 Relationships of project management to other management disciplines Project Management 3 Future Managers

2.4 Human resources hierarchies of the project team Project manager Project sponsor Project administrator Project engineer Steering committee Advises on the business architecture Monitors the project and maintains priority relative to other projects Provides organisational support Provides timely decisions Resolves major issues of significant risk to the organisation Executes formal review and management reviews Approves changes in the budget and/or schedule Provides feedback Team member Project Management 3 Future Managers

Project manager

Project sponsor

Project administrator

Project engineer

Steering committee

Advises on the business architecture

Monitors the project and maintains priority relative to other projects

Provides organisational support

Provides timely decisions

Resolves major issues of significant risk to the organisation

Executes formal review and management reviews

Approves changes in the budget and/or schedule

Provides feedback

Team member

3. The types of structures that are found in a project environment After completing this outcome, you will be able to: Identify the structures within a project Discuss and explain the concept of programme and project hierarchies Define the concept of decomposition of a project Discuss and explain the purpose of the decomposition of a project into manageable components or parts Define the terms breakdown structures and deliverables Discuss and explain the concepts of breakdown structures for product, work and cost Project Management 3 Future Managers

After completing this outcome, you will be able to:

Identify the structures within a project

Discuss and explain the concept of programme and project hierarchies

Define the concept of decomposition of a project

Discuss and explain the purpose of the decomposition of a project into manageable components or parts

Define the terms breakdown structures and deliverables

Discuss and explain the concepts of breakdown structures for product, work and cost

3.1 Types of structure that are found in a project environment Project structure Work breakdown structure Cost structure Communication structure Project Management 3 Future Managers

Project structure

Work breakdown structure

Cost structure

Communication structure

3.2 Programme and project hierarchies What is a programme? A group of logically related projects managed in a coordinated way What is a project hierarchy? Refers to the interdependencies of actions as part of a project Project Management 3 Future Managers

What is a programme?

A group of logically related projects managed in a coordinated way

What is a project hierarchy?

Refers to the interdependencies of actions as part of a project

3.3 Deconstruction of a project What does deconstruction mean? Deconstruction is the process of breaking a project into manageable chunks of work, resulting in smaller deliverables that make up the final product The lowest level of deconstruction is considered a work package Project Management 3 Future Managers

What does deconstruction mean?

Deconstruction is the process of breaking a project into manageable chunks of work, resulting in smaller deliverables that make up the final product

The lowest level of deconstruction is considered a work package

3.4 The purpose of the deconstruction of a project into manageable components or parts Steps to follow when deconstructing a project Identify all of the major deliverables of a project Determine if cost and duration can be identified for each of the deliverables Major project deliverables should be decomposed down to the smallest possible element Make sure all deliverables are clear and easy to understand, so you can easily sequence, schedule, and budget them. Project Management 3 Future Managers

Steps to follow when deconstructing a project

Identify all of the major deliverables of a project

Determine if cost and duration can be identified for each of the deliverables

Major project deliverables should be decomposed down to the smallest possible element

Make sure all deliverables are clear and easy to understand, so you can easily sequence, schedule, and budget them.

3.4 The purpose of the deconstruction of a project into manageable components or parts Advantages of deconstruction Estimates for cost, time and resources are much more accurate Smaller deliverables are more manageable, resulting in fewer changes being made once the project begins Each project deliverable can be clearly assigned to a team member, resulting in greater levels of accountability The project manager can measure team members’ performance against completion of these smaller deliverables Control of the project is easier, since you are dealing with smaller pieces of the overall project. Project Management 3 Future Managers

Advantages of deconstruction

Estimates for cost, time and resources are much more accurate

Smaller deliverables are more manageable, resulting in fewer changes being made once the project begins

Each project deliverable can be clearly assigned to a team member, resulting in greater levels of accountability

The project manager can measure team members’ performance against completion of these smaller deliverables

Control of the project is easier, since you are dealing with smaller pieces of the overall project.

3.5 Breakdown structures and deliverables What are project deliverables? Project deliverables identify what the project is supposed to produce Intermediate deliverables End deliverables Project Management 3 Future Managers

What are project deliverables?

Project deliverables identify what the project is supposed to produce

Intermediate deliverables

End deliverables

3.5 Breakdown structures and deliverables Work breakdown structure A work breakdown structure identifies all the deliverables required for a project and is a standard way to organise the work Outlined work breakdown structure Graphical WBS Project Management 3 Future Managers

Work breakdown structure

A work breakdown structure identifies all the deliverables required for a project and is a standard way to organise the work

Outlined work breakdown structure

Graphical WBS

Work breakdown structures Project Management 3 Future Managers Goal Function 1 Function 2 Task 1.1 Task 1.2 Task 1.3 Task 2.1 Task 2.2 Task 2.3

Work breakdown structures Project Management 3 Future Managers

Work breakdown structures Project Management 3 Future Managers

3.5 Breakdown structures and deliverables Importance of designing a WBS Finalise the scope of a project, since any work not listed in the WBS is outside the scope of the project Plan the project Outline a budget for the project Link deliverables to available company resources Establish accurate cost and schedule estimates Clearly assign work responsibilities to specific team members Monitor the progress of the project as a whole, since each deliverable is a measurable unit of work Track time, cost, and performance throughout the project Establish status-reporting procedures. Project Management 3 Future Managers

Importance of designing a WBS

Finalise the scope of a project, since any work not listed in the WBS is outside the scope of the project

Plan the project

Outline a budget for the project

Link deliverables to available company resources

Establish accurate cost and schedule estimates

Clearly assign work responsibilities to specific team members

Monitor the progress of the project as a whole, since each deliverable is a measurable unit of work

Track time, cost, and performance throughout the project

Establish status-reporting procedures.

3.5 Breakdown structures and deliverables Define deliverables in a WBS All deliverables should be defined so that they Indicate definite beginning and ending dates Provide a benchmark that compare results to expectations Result in a solid product or service, or part of a product or service Are clearly defined enabling minimum documentation to be provided to the project office Project Management 3 Future Managers

Define deliverables in a WBS

All deliverables should be defined so that they

Indicate definite beginning and ending dates

Provide a benchmark that compare results to expectations

Result in a solid product or service, or part of a product or service

Are clearly defined enabling minimum documentation to be provided to the project office

3.5 Breakdown structures and deliverables The work breakdown structure serves the purpose of: Linking time to each deliverable, activity or sub-activity to give us a total duration time of the project Linking skills (team members) to the respective deliverables, activities and sub-activities Linking cost to each deliverable, activity and sub-activity Project Management 3 Future Managers

The work breakdown structure serves the purpose of:

Linking time to each deliverable, activity or sub-activity to give us a total duration time of the project

Linking skills (team members) to the respective deliverables, activities and sub-activities

Linking cost to each deliverable, activity and sub-activity

3.5 Breakdown structures and deliverables Create a good WBS List the breakdown of deliverables Review it with responsible individuals Identify data relevant to the WBS Continually examine actual resource used Compare actual progress to scheduled progress Project Management 3 Future Managers

Create a good WBS

List the breakdown of deliverables

Review it with responsible individuals

Identify data relevant to the WBS

Continually examine actual resource used

Compare actual progress to scheduled progress

3.5 Breakdown structures and deliverables Benefits of a WBS The project team develops confidence in their goal A framework is provided with which you can identify projects separately from organisations, accounting systems, and funding sources Specific work packages are available with which you can estimate and assign work Responsibilities are clearly defined, resulting in accountability Team members find it easier to focus their attention on project objectives It is easier to develop detailed planning and documentation. Project Management 3 Future Managers

Benefits of a WBS

The project team develops confidence in their goal

A framework is provided with which you can identify projects separately from organisations, accounting systems, and funding sources

Specific work packages are available with which you can estimate and assign work

Responsibilities are clearly defined, resulting in accountability

Team members find it easier to focus their attention on project objectives

It is easier to develop detailed planning and documentation.

3.6 Breakdown structures for product, work and cost Product breakdown structure (PBS) This represents a hierarchical view of the physical assembles, sub-assembles, components and parts needed to manufacture the product. Work breakdown structure “… a cascade of deliverables, in which the overall product or objective of the project is broken into sub-products, assemblages and components or it’s broken into activities and sub-activities” - Turner Project Management 3 Future Managers

Product breakdown structure (PBS)

This represents a hierarchical view of the physical assembles, sub-assembles, components and parts needed to manufacture the product.

Work breakdown structure

“… a cascade of deliverables, in which the overall product or objective of the project is broken into sub-products, assemblages and components or it’s broken into activities and sub-activities” - Turner

3.6 Breakdown structures for product, work and cost Cost breakdown structure This represents the financial breakdown of the project into budgets per work package Project Management 3 Future Managers

Cost breakdown structure

This represents the financial breakdown of the project into budgets per work package

Practical 1 Our first practical focus is on drawing a work breakdown structure (WBS) for our project: Building a house - we will do it together. Project: Building a house A desire for building your own house develops and therefore you decide to buy a plot to build your dream house on. After looking around you find a plot for sale and decide to make an offer to the owner of the plot to buy it. The following actions (in different phases or stages) have taken place: Project Management 3 Future Managers

Our first practical focus is on drawing a work breakdown structure (WBS) for our project: Building a house - we will do it together.

Project: Building a house

A desire for building your own house develops and therefore you decide to buy a plot to build your dream house on. After looking around you find a plot for sale and decide to make an offer to the owner of the plot to buy it.

The following actions (in different phases or stages) have taken place:

Practical 1 Phase/Stage 1: Buying plot and drawing plans Offer on plot (plot size is 1000 square meters), which was accepted Register a bond with a financial bank You instruct your attorney to register the plot at the Deeds Office in your name You ask an architect to draw the plans for your dream home The architect hands in the plans at the local municipality for approval and makes any adjustments or technical changes as required After receiving back the approved plans from the municipality the planning around the project itself can now be done Project Management 3 Future Managers

Phase/Stage 1: Buying plot and drawing plans

Offer on plot (plot size is 1000 square meters), which was accepted

Register a bond with a financial bank

You instruct your attorney to register the plot at the Deeds Office in your name

You ask an architect to draw the plans for your dream home

The architect hands in the plans at the local municipality for approval and makes any adjustments or technical changes as required

After receiving back the approved plans from the municipality the planning around the project itself can now be done

Practical 1 Phase/Stage 2: Building of house A contractor (after submitting a tender for the building work) receives the tender and he contracts sub-contractors. They are responsible for: The building of the house Electrical work Plumbing Paint work Project Management 3 Future Managers

Phase/Stage 2: Building of house

A contractor (after submitting a tender for the building work) receives the tender and he contracts sub-contractors. They are responsible for:

The building of the house

Electrical work

Plumbing

Paint work

Practical 1 Phase/Stage 3: Exterior work Quotes are gathered for the: Building of the security wall and electrical fence around the house Paving work of the driveway Landscaping of the gardens around the house Phase/Stage 4: Administration and payments Administration – payment of contractor, invoices and other administrative tasks Project Management 3 Future Managers

Phase/Stage 3: Exterior work

Quotes are gathered for the:

Building of the security wall and electrical fence around the house

Paving work of the driveway

Landscaping of the gardens around the house

Phase/Stage 4: Administration and payments

Administration – payment of contractor, invoices and other administrative tasks

Activity 3 – Project deconstruction Why is a project deconstructed and how can we benefit in the deconstruction of a project? Project Management 3 Future Managers

Why is a project deconstructed and how can we benefit in the deconstruction of a project?

3.6 Breakdown structures for product, work and cost How to do a WBS Write next to each deliverable the corresponding stage Break each stage into activities and sub-activities Under the deliverable, write down the activities and sub-activities, and complete it for all four stages Deliverable 1 is already completed to help you in your thinking about each deliverable representing a stage Project Management 3 Future Managers

How to do a WBS

Write next to each deliverable the corresponding stage

Break each stage into activities and sub-activities

Under the deliverable, write down the activities and sub-activities, and complete it for all four stages

Deliverable 1 is already completed to help you in your thinking about each deliverable representing a stage

Project 1: Build a house Deliverable 1: Buying and drawing Buying plot Bond registration – FNB Register plot (attorney) at Deeds Office Drawing Plans Architect draw plans Hand in at Municipality for approval Receive back approved plans Project Management 3 Future Managers

Deliverable 1: Buying and drawing

Buying plot

Bond registration – FNB

Register plot (attorney) at Deeds Office

Drawing Plans

Architect draw plans

Hand in at Municipality for approval

Receive back approved plans

Project 1: Build a house Deliverable 2: Building the house Building house Foundations Walls (Outside and inner walls) Put up roof Put in doors and windows Build in baths, basins, toilets, and kitchen-trough Electrical work Install cables and wires Install plugs and light switches Install light fittings and lights Plumbing Install water pipes (in roof and cut-in into walls) Install geyser and connect water to baths, etc. Install connections for washing machine Paint work Interior and exterior walls Roof Project Management 3 Future Managers

Deliverable 2: Building the house

Building house

Foundations

Walls (Outside and inner walls)

Put up roof

Put in doors and windows

Build in baths, basins, toilets, and kitchen-trough

Electrical work

Install cables and wires

Install plugs and light switches

Install light fittings and lights

Plumbing

Install water pipes (in roof and cut-in into walls)

Install geyser and connect water to baths, etc.

Install connections for washing machine

Paint work

Interior and exterior walls

Roof

Project 1: Build a house Deliverable 3: Exterior work Security wall Build wall Install electrical fence Paving Paving of drive-way, etc Landscape Preparing garden, flower boxes Plant shrubs, lawn etc Project Management 3 Future Managers

Deliverable 3: Exterior work

Security wall

Build wall

Install electrical fence

Paving

Paving of drive-way, etc

Landscape

Preparing garden, flower boxes

Plant shrubs, lawn etc

Project 1: Build a house Deliverable 4: Administration and Payments Payments Architect, Municipality, Contractor, other sub-contractors, suppliers, etc Administration File invoices, contracts Write report on project Project Management 3 Future Managers

Deliverable 4: Administration and Payments

Payments

Architect, Municipality, Contractor, other sub-contractors, suppliers, etc

Administration

File invoices, contracts

Write report on project

4. Application or organisation structures in a project environment After completing this outcome, you will be able to: Differentiate between a functional and matrix organisational structure Discuss and explain, with an example of a (purely) project organisational structure Prepare an organisational structure in a written format Describe the purpose and responsibilities of the roles attached to the project Prepare a written document that describes at least two of the purposes, roles and responsibilities within a project Define the concept of stakeholders on a project Discuss and explain at least six different stakeholders involved with a project. Project Management 3 Future Managers

After completing this outcome, you will be able to:

Differentiate between a functional and matrix organisational structure

Discuss and explain, with an example of a (purely) project organisational structure

Prepare an organisational structure in a written format

Describe the purpose and responsibilities of the roles attached to the project

Prepare a written document that describes at least two of the purposes, roles and responsibilities within a project

Define the concept of stakeholders on a project

Discuss and explain at least six different stakeholders involved with a project.

4.1 Functional and matrix organisational structures Steps to follow when deciding on an organisational structure for a project Define the project objectives Determine the key tasks associated with each objective Establish which functional departments each task would fall into within the parent organisation Consider the individuals who will do the work and the customer who is being served Name any special characteristics associated with the project, such as a need for specific technology Analyse the pros and cons of the functional, project and matrix structures, and choose a structure that best fits the project. Project Management 3 Future Managers

Steps to follow when deciding on an organisational structure for a project

Define the project objectives

Determine the key tasks associated with each objective

Establish which functional departments each task would fall into within the parent organisation

Consider the individuals who will do the work and the customer who is being served

Name any special characteristics associated with the project, such as a need for specific technology

Analyse the pros and cons of the functional, project and matrix structures, and choose a structure that best fits the project.

4.1 Functional and matrix organisational structures Functional project organisational structure Project Management 3 Future Managers

Functional project organisational structure

4.1 Functional and matrix organisational structures Advantages of a functional project organisational structure Individual experts from functional departments can be used when needed The functional departments contain a path of professional growth and advancement for the project team members There is flexibility in the use of staff from the functional department in which the project is placed Knowledge and expertise may be shared more freely between individuals in a functional department, resulting in more creativity within the project team Project Management 3 Future Managers

Advantages of a functional project organisational structure

Individual experts from functional departments can be used when needed

The functional departments contain a path of professional growth and advancement for the project team members

There is flexibility in the use of staff from the functional department in which the project is placed

Knowledge and expertise may be shared more freely between individuals in a functional department, resulting in more creativity within the project team

4.1 Functional and matrix organisational structures Disadvantages of a functional project organisational structure Frequently, no one is given full responsibility for the project, so there is more possibility of failure The project is not the central focus since the functional department has its own focus, which can result in a slow response to client needs Project team members tend to be less motivated, since the project is frequently their second focus behind their functional duties Any project issues that are outside the realm of the functional department are frequently not given as much focus Project Management 3 Future Managers

Disadvantages of a functional project organisational structure

Frequently, no one is given full responsibility for the project, so there is more possibility of failure

The project is not the central focus since the functional department has its own focus, which can result in a slow response to client needs

Project team members tend to be less motivated, since the project is frequently their second focus behind their functional duties

Any project issues that are outside the realm of the functional department are frequently not given as much focus

4.1 Functional and matrix organisational structures Strong and weak matrix structures A strong matrix is one similar to a pure project organisation A weak matrix is one similar to pure functional organisational structure Project Management 3 Future Managers

Strong and weak matrix structures

A strong matrix is one similar to a pure project organisation

A weak matrix is one similar to pure functional organisational structure

4.1 Functional an matrix organisational structures Project Management 3 Future Managers Manage-ment Project Manager Project Manager Project Manager Civil Manager Structural Manager Mechanical Manager

4.1 Functional and matrix organisational structures Advantages of using the matrix structure The project manager has access to all of the resources within each functional department, enabling key resources to be shared, which reduces duplication and minimizes costs Team members still have their functional home once the project is completed, reducing anxiety and increasing motivation Matrix organisations are generally flexible and can respond rapidly to change, the need for conflict resolution, and project needs Policies and procedures can be developed independently for a project, but since representatives from administrative units of the parent organisation are involved, these policies are usually consistent with those of the parent firm When several projects are running concurrently, there is better use of company-wide resources Authority and responsibility for achieving the overall project goal are shared A better balance of time, cost, and personnel can be developed Project Management 3 Future Managers

Advantages of using the matrix structure

The project manager has access to all of the resources within each functional department, enabling key resources to be shared, which reduces duplication and minimizes costs

Team members still have their functional home once the project is completed, reducing anxiety and increasing motivation

Matrix organisations are generally flexible and can respond rapidly to change, the need for conflict resolution, and project needs

Policies and procedures can be developed independently for a project, but since representatives from administrative units of the parent organisation are involved, these policies are usually consistent with those of the parent firm

When several projects are running concurrently, there is better use of company-wide resources

Authority and responsibility for achieving the overall project goal are shared

A better balance of time, cost, and personnel can be developed

4.1 Functional and matrix organisational structures Disadvantages of using the matrix structure Project team members have two bosses, the project manager and the functional manager, which can result in confusion, split loyalties, a division of authority, and unsuccessful completion of the project goal There is more of a possibility of role ambiguity for managers as well as team members The balancing of time, cost, and performance can be an advantage, but it must also be monitored carefully so that the success of all projects is ensured More time is needed initially to define policies and procedures Multidimensional information and workflow can lead to confusion and complicate communication Conflict can result if a functional manager’s goals differ from the overall projects Project Management 3 Future Managers

Disadvantages of using the matrix structure

Project team members have two bosses, the project manager and the functional manager, which can result in confusion, split loyalties, a division of authority, and unsuccessful completion of the project goal

There is more of a possibility of role ambiguity for managers as well as team members

The balancing of time, cost, and performance can be an advantage, but it must also be monitored carefully so that the success of all projects is ensured

More time is needed initially to define policies and procedures

Multidimensional information and workflow can lead to confusion and complicate communication

Conflict can result if a functional manager’s goals differ from the overall projects

4.2 Purely project organisational structure Project Management 3 Future Managers

4.2 Purely project organisational structure Advantages of a purely project organisational structure Communication is easier when team members are only required to communicate with other members of the team, Team members report directly to the project manager The project manager has full authority over the project A project team can develop a stronger sense of commitment Decision-making is easier Project Management 3 Future Managers

Advantages of a purely project organisational structure

Communication is easier when team members are only required to communicate with other members of the team,

Team members report directly to the project manager

The project manager has full authority over the project

A project team can develop a stronger sense of commitment

Decision-making is easier

4.2 Purely project organisational structure Disadvantages of a purely project organisational structure Pure project groups tend to be inconsistent in the way they carry out policies and procedures Rivalry can develop between the project members and the parent organisation The concerns on what project members feel can cause problems, since there might be uncertainty about their future once the current project is completed When several projects are being worked on simultaneously, there can be duplication of effort in many areas, and resources might be more effectively used if they were shared across projects Project Management 3 Future Managers

Disadvantages of a purely project organisational structure

Pure project groups tend to be inconsistent in the way they carry out policies and procedures

Rivalry can develop between the project members and the parent organisation

The concerns on what project members feel can cause problems, since there might be uncertainty about their future once the current project is completed

When several projects are being worked on simultaneously, there can be duplication of effort in many areas, and resources might be more effectively used if they were shared across projects

4.3 Prepare an organisational structure in a written format The purely project organisation is a line organisational structure Project manager forms the top of the structure Team members will be the next row Project Management 3 Future Managers

The purely project organisation is a line organisational structure

Project manager forms the top of the structure

Team members will be the next row

Activity 4: Purely project organisation structure From the information given above, draw the organisation structure for the purely project organisation Project Management 3 Future Managers

From the information given above, draw the organisation structure for the purely project organisation

4.4 Roles attached to the project Interpersonal roles Deal effectively with people from various professional backgrounds and create team unity Solve team disputes Focus and motivate team members to achieve milestones on the way to achieving the project goal Build positive relationships with project stakeholders. Project Management 3 Future Managers

Interpersonal roles

Deal effectively with people from various professional backgrounds and create team unity

Solve team disputes

Focus and motivate team members to achieve milestones on the way to achieving the project goal

Build positive relationships with project stakeholders.

4.4 Roles attached to the project Informational role Arrange and lead team meetings Create and maintain work schedules for other people Communicate project vision to upper management Provide feedback regarding results, quality, and project deliverables. Project Management 3 Future Managers

Informational role

Arrange and lead team meetings

Create and maintain work schedules for other people

Communicate project vision to upper management

Provide feedback regarding results, quality, and project deliverables.

4.4 Roles attached to the project Decision-making roles Distinguish between features and benefits Appropriately allocate resources if a project falls behind schedule Strike a balance between cost, time, and results Prevent scope “creep”(when the project keeps getting bigger and more complex) and budget “slipping” (when the money starts running out) Project Management 3 Future Managers

Decision-making roles

Distinguish between features and benefits

Appropriately allocate resources if a project falls behind schedule

Strike a balance between cost, time, and results

Prevent scope “creep”(when the project keeps getting bigger and more complex) and budget “slipping” (when the money starts running out)

4.4 Roles attached to the project Human resources management roles Team building throughout the project Project Management 3 Future Managers

Human resources management roles

Team building throughout the project

Activity 5: Role of importance of a project Divide into groups of 3-5 people Describe and discuss the interpersonal role and information role of the project manager in a project. Project Management 3 Future Managers

Divide into groups of 3-5 people

Describe and discuss the interpersonal role and information role of the project manager in a project.

4.6 Project stakeholders What is a project stakeholder? A project stakeholder is an individual, group, or organisation that is involved in a project or whose interests might be influenced as a result of a project’s achievement. It is the job of the project manager to manage the stakeholders by keeping them informed of any decisions that are made Project Management 3 Future Managers

What is a project stakeholder?

A project stakeholder is an individual, group, or organisation that is involved in a project or whose interests might be influenced as a result of a project’s achievement.

It is the job of the project manager to manage the stakeholders by keeping them informed of any decisions that are made

4.7 Different stakeholders involved in a project Key stakeholders Project manager Project team members Owner (parent) or performing organisation Customer Sponsor Other stakeholders Contractors and sub-contractors The public Partner or joint venture Project Management 3 Future Managers

Key stakeholders

Project manager

Project team members

Owner (parent) or performing organisation

Customer

Sponsor

Other stakeholders

Contractors and sub-contractors

The public

Partner or joint venture

Activity 6: Stakeholders In your group and with the help of your facilitator, complete the table (overleaf) on the stakeholders involved in the 2010 FIFA World Cup Soccer tournament here in South Africa. Write down the nine stakeholders and then link a name of an individual, or group or organisation to the respective stakeholders. Project Management 3 Future Managers

In your group and with the help of your facilitator, complete the table (overleaf) on the stakeholders involved in the 2010 FIFA World Cup Soccer tournament here in South Africa.

Write down the nine stakeholders and then link a name of an individual, or group or organisation to the respective stakeholders.

Activity 6: Stakeholders Project Management 3 Future Managers Stakeholder Name of person, group or organisation 1. 2. 3. 4. 5. 6. 7. 8. 9.

Activity 6: Stakeholders Project Management 3 Future Managers Stakeholder Name of person, group or organisation 1. Parent organisation Fifa 2. Project Manager Danny Jordan 3. Core Project Team The 2010 World Cup Soccer Committee; PSL; Committees representing the nine provincial governments 4. Sponsors Government; Telkom 5.Functional Manager Financial Expertise (PWC); Marketing team 6. Customer / client Fifa; PSL 7. Partners Provincial governments and municipalities 8. Public Members of the public 9. Contractors Murray and Roberts; Group 5 etc...

Practical 2 The following are the stakeholders of our house project: Joe da Silva (an auditor) will be the owner of the house Bought the plot from JK Trust Plot to be registered at Deeds Office Bond is registered with FNB-bank The attorney is Miller & Black Associates, who will advise Joe legally during the project Building plans drawn up by the architect, John Nculu & Partners and approved by the City of Cape Town As an auditor Joe is not familiar with building work and therefore he decided to appoint Jose Levin as Project Manager. Jose appointed John Masego and Paul Fox as team members to help him with the management of the project Project Management 3 Future Managers

The following are the stakeholders of our house project:

Joe da Silva (an auditor) will be the owner of the house

Bought the plot from JK Trust

Plot to be registered at Deeds Office

Bond is registered with FNB-bank

The attorney is Miller & Black Associates, who will advise Joe legally during the project

Building plans drawn up by the architect, John Nculu & Partners and approved by the City of Cape Town

As an auditor Joe is not familiar with building work and therefore he decided to appoint Jose Levin as Project Manager. Jose appointed John Masego and Paul Fox as team members to help him with the management of the project

Practical 2 JKF-Builders was appointed as contractor and builder and they in turn sub-contract work to Northern Electrical HW-Plumbers Painters for Africa Cape Landscape Rand Paving Wall & All for building the security wall and electrical fence Joe will do the administration work and make the payments electronically Additional information: Joe has decided that if he needs more money for his project, he will form a partnership with his good friend Nigel Mansell There was an objection lodged against the project by the residents in the neighbourhood – according to them, Joe did not have approval to build a double storey house Project Management 3 Future Managers

JKF-Builders was appointed as contractor and builder and they in turn sub-contract work to

Northern Electrical

HW-Plumbers

Painters for Africa

Cape Landscape

Rand Paving

Wall & All for building the security wall and electrical fence

Joe will do the administration work and make the payments electronically

Additional information:

Joe has decided that if he needs more money for his project, he will form a partnership with his good friend Nigel Mansell

There was an objection lodged against the project by the residents in the neighbourhood – according to them, Joe did not have approval to build a double storey house

Practical 2 Use the template (below) or draw your own template and complete it by writing down the nine stakeholders (as discussed) in a project and next to the stakeholders the name according to our project, Building a House. Project Management 3 Future Managers

Use the template (below) or draw your own template and complete it by writing down the nine stakeholders (as discussed) in a project and next to the stakeholders the name according to our project, Building a House.

Project 2 Project Management 3 Future Managers Stakeholder Name of person, group or organisation 1. 2. 3. 4. 5. 6. 7. 8. 9.

Project 2 (Answers) Project Management 3 Future Managers Stakeholder Name of person, group or organisation 1. Parent organisation Joe da Silva 2. Project Manager Jose Levin 3. Project Team John Masego and Paul Fox 4. Functional Manager Millar & Black Associates (Legal Advisor) 5. Sponsors FNB 6. Partners Nigel Mansell 7. Customer / Client Joe da Silva 8. Contractors Contractor: JKF-Builders Sub-Contractors: Northern Electrical; HW-Plumbers; Painters for Africa; Cape Landscape; Rand Paving; Wall and All 9. Public Residents of the neighbourhood

5. The major processes and activities required to manage a project After completing this outcome, you will be able to: Identify the processes and activities in a project Describe all the key processes and activities that take place from the beginning of the project to the end of a project Identify the supplementary management sub-processes and activities required to support the key processes and activities Discuss and explain the supplementary management sub-processes and activities required to support the key processes and activities Define the concepts of planning and control Explain the reasons for planning and control a project Describe, with the aid of an example, and the use of planning templates, the consequences of not planning and controlling the project Project Management 3 Future Managers

After completing this outcome, you will be able to:

Identify the processes and activities in a project

Describe all the key processes and activities that take place from the beginning of the project to the end of a project

Identify the supplementary management sub-processes and activities required to support the key processes and activities

Discuss and explain the supplementary management sub-processes and activities required to support the key processes and activities

Define the concepts of planning and control

Explain the reasons for planning and control a project

Describe, with the aid of an example, and the use of planning templates, the consequences of not planning and controlling the project

5.1 Project phases and the project life cycle Organisations performing projects will generally divide each project into several project phases. Why? To improve management control To provide links to the ongoing operations of the organisation Collectively, the project phases are known as the project life cycle Project Management 3 Future Managers

Organisations performing projects will generally divide each project into several project phases. Why?

To improve management control

To provide links to the ongoing operations of the organisation

Collectively, the project phases are known as the project life cycle

5.1 Project phases and the project life cycle Characteristics of the project phase Phases are marked by the completion of deliverables Project performance is then reviewed and: The decision is made whether to continue the project into the next phase Errors are detected and corrected AKA: Phase exits; stage gates; kill points Project Management 3 Future Managers

Characteristics of the project phase

Phases are marked by the completion of deliverables

Project performance is then reviewed and:

The decision is made whether to continue the project into the next phase

Errors are detected and corrected

AKA: Phase exits; stage gates; kill points

5.1 Project phases and the project life cycle The project life cycle defines: What work should be done in each phase Who should be involved in each phase Project Management 3 Future Managers

The project life cycle defines:

What work should be done in each phase

Who should be involved in each phase

5.1 Project phases and the project life cycle A project goes through four main phases: Initiation or idea generation Planning phase Execution phase Closing out phase Project Management 3 Future Managers

A project goes through four main phases:

Initiation or idea generation

Planning phase

Execution phase

Closing out phase

Practical 3 The third part of our practical is to: Individually, draw a project life cycle for our project Divide in groups and fill in the necessary information under the four phases of the project life cycle to indicate what happens in each phase of the project. Project Management 3 Future Managers

The third part of our practical is to:

Individually, draw a project life cycle for our project

Divide in groups and fill in the necessary information under the four phases of the project life cycle to indicate what happens in each phase of the project.

Practical 3 (Answers) Project Management 3 Future Managers Initiation Stage / Phase Planning Stage / Phase Execution/Con-struction Stage / Phase Close-out Stage / Phase Idea of building a house (Joe) Think of a plot available – area where Joe can buy a plot Do a pre-budget of what it will cost (in his mind) Note: At this stage no or minimum info/facts available for Joe Start thinking of who should do the building – as an auditor Joe’s got no experience of building work Joe bought a plot and register a bond Register the plot at Deeds Office Draw up building plan – architect Plan approved by Municipality Decide to appoint a Project Manager (on contract – therefore an attorney was appointed for legal assistance) Project manager appoints team and decides on contractor and sub-contractors (contracts) Project Manager (Jose Levin) and Team (John Masego & Paul Fox) will over see the construction stage JFK-Builders start building Electrical work Plumbing work Pant work Paving work Security wall and electrical fence Landscaping Building inspections Project completed Project quality test completed Documentation finalised for payment Payment of contractor Receive final report on project Hand-over of project to project owner (Joe da Silva)

5.2 Project processes What is a process ? A series of actions bringing about a result Project processes fall into two major categories: Project management processes Product orientated processes Project Management 3 Future Managers

What is a process ?

A series of actions bringing about a result

Project processes fall into two major categories:

Project management processes

Product orientated processes

5.2 Project processes Initiating processes Planning processes Executing processes Controlling processes Closing processes Project Management 3 Future Managers

Initiating processes

Planning processes

Executing processes

Controlling processes

Closing processes

5.2 Project processes Initiation processes Initiation is the process of formally authorising a new project or an existing project to continue into its next phase Initiating can involve completing A needs assessment A feasibility study A preliminary plan Project Management 3 Future Managers

Initiation processes

Initiation is the process of formally authorising a new project or an existing project to continue into its next phase

Initiating can involve completing

A needs assessment

A feasibility study

A preliminary plan

5.2 Project processes Planning processes Planning is an ongoing effort throughout the life-cycle of the project Project Management 3 Future Managers

Planning processes

Planning is an ongoing effort throughout the life-cycle of the project

5.2 Project processes Executing processes Project plan execution Quality assurance Team development Information distribution Solicitation Source selection Contract administration Project Management 3 Future Managers

Executing processes

Project plan execution

Quality assurance

Team development

Information distribution

Solicitation

Source selection

Contract administration

5.2 Project processes Controlling processes Integrated change control Scope verification Scope change control Schedule control Cost control Quality control Performance reporting Risk monitoring and control Project Management 3 Future Managers

Controlling processes

Integrated change control

Scope verification

Scope change control

Schedule control

Cost control

Quality control

Performance reporting

Risk monitoring and control

5.2 Project processes Closing processes Contract closeout Administrative closure Project Management 3 Future Managers

Closing processes

Contract closeout

Administrative closure

5.2 Project processes Core processes Scope planning Scope definition Activity definition Activity sequencing Activity duration estimating Schedule development Risk management planning Resource planning Cost estimating Cost budgeting Project plan development Project Management 3 Future Managers

Core processes

Scope planning

Scope definition

Activity definition

Activity sequencing

Activity duration estimating

Schedule development

Risk management planning

Resource planning

Cost estimating

Cost budgeting

Project plan development

5.2 Project processes Facilitating processes Quality planning Organisational planning Staff acquisition Communications planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Procurement planning Solicitation planning Project Management 3 Future Managers

Facilitating processes

Quality planning

Organisational planning

Staff acquisition

Communications planning

Risk identification

Qualitative risk analysis

Quantitative risk analysis

Risk response planning

Procurement planning

Solicitation planning

Practical 4 Now that the stakeholders of our project are known to you, you can complete the fourth part of our practical: Draw the project organisation structure (with names added to it) for our project. Project Management 3 Future Managers

Now that the stakeholders of our project are known to you, you can complete the fourth part of our practical:

Draw the project organisation structure (with names added to it) for our project.

Practical 4 Project Management 3 Future Managers

Activity 7 – Review on WBS and stakeholder Divide into groups. In your group decide on any project (make sure that you’ve got enough knowledge about the “potential” project), then draw the WBS of the project, decide on stakeholders and complete a stakeholder list. Project Man agent 3 Future Managers

Divide into groups.

In your group decide on any project (make sure that you’ve got enough knowledge about the “potential” project), then draw the WBS of the project, decide on stakeholders and complete a stakeholder list.