project management methodologies and concepts

8/10/2019 Project Management Methodologies and Concepts

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Methodologies and planning fundamentals

OverviewThe development of project management theory has been predominantly through the documentation

of practical applications by people in the field. In this way, most of project management is founded onpositive theory. There is very little normative theory. Out of this documentation has come a series ofmethodologies. None of these methodologies vary greatly and once a grasp is obtained of one, it iseasily transferred to the other. This session will take participants through several of the projectmanagement methodologies that exist including the roject !anagement "ody of #nowledge$!"o#%, rojects In a &ontrolled 'nvironment (ersion ) $*IN&')%, Theory of &onstraints and sub+sets of these methodologies like 'arned (alue and &ritical ath !ethod $&!%.

robably the most uniue component project management brings to business is its use of &riticalath !ethod. -eveloped in the /01s as a tool in managing the time phased component in theconstruction of the first Nuclear 2ubmarine, &! has become the main planning tool of the projectmanager. This session will take you through this method with a practical example that all participantswill take part in. The development of this method through such methodologies as the theory ofconstraints has enabled some practitioners to halve the time component of a project and hencesignificantly reduce the costs and bring forward benefits realisation.

The session will be run using an experiential learning philosophy. 3 case study will be handed out andparticipants will be asked to work in groups to complete the activities involving developing a workbreakdown structure, completing a critical path analysis and discussing the results of the network.

Learning outcomesThe learning outcomes of the session are4

. -escribe the various project management methodologies that are practiced in business todayincluding4

a. The / functional areas of the !"o#b. The fundamental principal behind *IN&')c. 5hen to use theory of constraints versus earned value

). "uild a work breakdown structure6. &onstruct a network diagram7. &alculate the critical path0. &alculate the float of non+critical activities8. 'xplain what a 93NTT chart is:. -iscuss the implications of critical path method for time, cost and human resource

management of a project

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Project Management Methodologies andConcepts

5e have already discussed the concept of !anaging by roject? we@ll now turn our attention to othermore specific methodologies that cover specific areas of the !anaging by roject philosophy. 2omeof these methodologies are mutually exclusive? others can actually complement each other. Themethodologies we are going to cover, and the area they focus on, are4

Methodology Area Benefits Weaknesses

The guide to theroject!anagement "odyof #nowledge$!"o#%

Aocuses on the / functions ofproject management.


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Managing by Project Methodology

Project Life Cycle

The !anaging by roject project life cycle is based on 7 phases4 &oncept, -evelopment,Implementation and &lose Out.

The time portion for each phase will vary from project to project, and as can be seen by the graph, thelevel of resources reuired increases over time, to peak at the hard implementation phase, when allaspects of the CbuildD activities are being completed.&oncept E Initiation 5orkshops can be held to assist in scoping a project in the first ) phases.*ecognition of this effort curve allows for management to establish a larger portfolio of projects in theconcept phase, ready to execute on those projects that will definitely add the most value.

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Document Name Lifecycle phasecreated in

Integration with life cycle Further information

ositional aper &oncept -evelopment, Implementation and&lose Out. Incorporating the postproject review.

The project stems from this paper and its relevance is

tested throughout by the completion of documents andalignment back to the idea.

It is the starting point for the development phase of the

project intertwined within the business case.

"usiness &ase &oncept -evelopment, Implementation and

&lose out.lus benefits review 8 to ) monthafter the project has beenimplemented.

The "usiness &ase is the crucial or the principal

document of the project. It compiles all the relevant data and emphasises the

importance and acceptability of the project, it is the gateway for the shift to the development phase.

&entral to the benefits review carried out 8+)months

post implementation.

2ome companies hold their sponsors to the benefits

highlighted for up to five years after the project hasbeen implemented.


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project review of the projects life cycle.

It integrates the positional paper, business case

feasibility and the concept scope of work, and drafts thisinto the Fproject manager@s bible@ if you like of theproject.

It is used as a uality control tool when there are

discrepancies in the original scope, or where changesare to be made to the existing one, it is a referenceguide.

It incorporates the risks identified in previous documentsand highlights more.

It is completed within )7 hours of the workshop and is to

be signed off by all relevant stakeholders.

It leads to risk management plans being drafted.

Its sub projects are broke up into sub project initiation

workshops.

2ub roject 2cope of 5ork -evelopment Implementation, &lose Out andproject review

"reaks up the sub projects and follows the agenda of

the !2O5 for the individual sub projects.

Is the 2ub project managers@ bible.

It breaks down the sub project into pieces of work

Its deliverable is part of the overall project.

roject lan -evelopment Implementation, &lose Out &reated in a planning workshop, breaking down the

pieces of work into tasks, a work breakdownstructure$5"2%

The 5"2 is transferred into a network diagram to

identify the critical path

Identifies the tasks individual float and is valuable

especially if you are using the theory of constraintphilosophy and need to divert resources from one taskto another.

"udget -evelopment Implementation, &lose Out "udget forecast for the completion of the project

managed by the project manager and financialcontroller.



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&ollates the sub project budgets managed by the sub

project manager into the macro budget

!acro budget should be inline with the "usiness &ase

forecasts



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Stage Gate Finance

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PLAN A!MPLI"#

2OAT


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Variability of Objectives

If a non+blame culture of cross functional risk management is established then projects can besubmitted with known variability estimated and tracked over time. 2tandard tolerance levels like thosein the slide can be established. Aor example if a project will bankrupt the business if it hits +:1H atconcept phase, it is unlikely that it will have all its costs upfront, so it still may be worthwhilecompleting feasibility, but a narrower variability range should be aimed at $eg4 )1H%. !anagementalways has the option to abandon, so it is unlikely that the worst case scenario will ever happen, butmore about that later.

o! it all "ts together!ithin the lifecycle

Innovation is the hot topic of the decade,companies are changing the creativity chainto allow all staff members to present ideas andorganisations are putting in reward programs to remunerate thecreator for their idea if successfully chosen and implemented.

Throughout !b there are many documents created that create uality control through identificationof scope, risks, issues and many other areas that are intricate areas of project management. Theconcept phase of the managing by project lifecycle encourages innovation as well as process throughthe presenting of ideas in the form of a positional paper which is signed off by a sponsor >person ofauthority that supports the idea. The positional paper is presented to the executive committee and ifapproved moves to the next stage of the phase and a Fbusiness case@ drafted.

2ummary2ummary

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&oncept

Aeasibility J+ 01H

J+ :1H

-evelopment J+ )1H

Implementation

"enefits realisation1 J follow on

options

!anaged throughchange control


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'ach area of the !b lifecycle integrates with the next, and the importance of the seuence ofdocuments within the lifecycle enables companies and organisations the like to ensure that all stafffollows a procedure to set about changing the way projects are created, developed and implemented.This process changes more than just the way projects are run? it starts to have an effect on theculture within.

!anaging "y roject creates buy in from the top of the organisation all the way through to the shopfloor, it encourages each person to understand what the company is trying to achieve through itsvision and realisation of the part they play.

Aor projects !b allows all relevant personnel from cross functional areas of the organisation to beinvolved right from the beginning through the planning stages via uniue facilitated workshops, thusreducing costs and time.

One of the major benefits is the scope is identified and all involved understand what the project istruly about. 5hat is in and out and the risks identified.

The process of prioritisation of projects enables easier strategic direction to be made when problemsarise? executives look at the level of priority and can then divert the necessary funds and human

resources to the most prevalent project minimising the affect to others in the portfolio.

Methodology Integration omments

rince ) Bse the product description topass information onto teammembers to ensure theyunderstand what theirdeliverable is.

The important factor is all thesemethodologies have parts withinthat can be useful and if youtake something from one and itadd to your current methodologythen you will only enhance yourability to deliver the projecteffectively.

!"ok 3ll nine functions can beintegrated into anymethodology. 'ach of the

functions have a set processeg4 Aunction Timethe process is?lan, execute, reviewTools used?9ant chart

Activity List the documents that are used in the Stage Gate process andActivity List the documents that are used in the Stage Gate process andwhat cycle they are created in.what cycle they are created in.

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#oles$ #esponsibilities and %ccountabilities

*ole definition for projects is a crucial component and often overlooked. *oles, responsibilities and accountabilities must be clearly defined for all involved inprojects. Once the roles are defined, the governance structure can be put in place. This form of uality control eliminates confusion and assists in positivecommunication for the project manager and team. The table below provides the roles and definitions.

,ole ,esponsi-ilities Accounta-ilities

Pro/ect "ponsor . &ommits the necessary resources to the project,

including human resources, technology and finances.

3vailability of project resources, including human resources,

technology and finance.). 3uthorisation and acceptance of the project in order thatthe project may commence.

2ign off of the "usiness &ase, 2cope of 5ork, "udget and

lan

6. 3uthorisation and>or decline of 2cope &hange*euests.

2ign off of 2cope &hange *euest Aorm, with a justification for

either the approval or decline. If the change is approved, thenecessary budget and lan changes also need to beapproved.

7. &onflict resolution. roject continues as conflicts resolved to avoid delays.

0. 2ign off and acceptance of the deliverables of theproject, as well as the ultimate sign off of the project.

&ompleted and signed Croject &ompletionD certificates and

acceptance of deliverables.

8. !onitors overall progress of the project andcommunicates progress and issues to 'xecutive!anagement and 2takeholders.

*egular attendance of !acro roject !eetings.

*egular presentations and>or meetings with 'xecutive

!anagement and 2takeholders.

Pro/ect ustomer . 3ctive participation in the !acro roject 2copingsessions in order to communicate the exact reuirementsand specification for the roject -eliverables.

2igns off the !acro roject 2cope of 5ork.

). !onitoring of roject progress and accuracy during the

life cycle of the roject.

*egular communication with the roject 2ponsor and !acro

roject !anager, as well as the regular attendance of !acroroject meetings.

6. 3cceptance of the -eliverables of the roject for theongoing usage, maintenance or support of those-eliverables.

2igns off the Croject &ompletionD certificates and acceptance

of -eliverables.

2igns off the roject.

Pro/ect "upplier . 3ctive participation in the !acro roject 2copingsessions in order to communicate the exact reuirementsand specification for the roject -eliverables.

2igns off the !acro roject 2cope of 5ork.

). !onitoring of roject progress and accuracy during thelife cycle of the roject.

*egular communication with the roject 2ponsor and !acro

roject !anager, as well as the regular attendance of 2teering

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&ommittee meetings.

6. &ommitment to the -eliverables of the roject to theuality level specified maintenance or support of those-eliverables.

2igns off the Croject &ompletionD certificates and acceptance

of -eliverables.

2igns off the roject.

Macro Pro/ect Manager . articipation in the !acro and 2ub+roject scopingsessions, including the planning and budgeting.

2igns acceptance of the !acro and 2ub+roject 2cope of

5orks, lan and "udget.

). !onitoring, tracking and controlling of the !acroroject.

!aintained !acro 2cope of 5ork.

!aintained !acro roject lan.

!aintained !acro roject "udget.

-esigned and maintained #ey erformance Indicators $#Is%.

-elivery of !acro roject -eliverables within the agreed times,cost and uality.

!eeting of roject !ilestones.

&ompletion of the !acro roject on time, on budget, on uality.

3dherence to the roject !anagement methodology.

Issue *esolution and !anagement.

*isk !anagement.

2cope &hange &ontrol.

6. !anagement, co+ordination and support of 2ub+rojects.

'nsure delivery of 2ub+rojects according to !acro roject

reuirements.

2cheduled and implemented !acro roject Team builds and

training, as applicable.

7. roject rogress &ommunication. 2uccessfully conducted and minuted !acro roject meetings,

as per the agreed meeting schedule and format.

!acro roject rogress *eports.

#I *eports and>or 9raphs.

Issue>'xception *eports.

Pro/ect Finance Manager . repares the "usiness &ase and "usiness "enefits forthe project to ensure that the project is feasible and viable.

2igned off and presented "usiness &ase.

2igned off and presented "usiness "enefits.

). Aacilitates the budgeting process of the !acro and 2ub+rojects, and prepares the budgets for sign off.

2igned off !acro and 2ub+roject budgets including sunk cost,

incremental and &apex specific budgets.

Pro/ect 0uality Manager . The establishment of a project deliverable auditschedule and the execution thereof.

!aintained 3udit 2chedule.

3udit reports.

2igned -eliverable 2ign offs.

). roject process reviews. rocess *eview *eports.



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6. *egular review and maintenance of roject *isk2chedule.

!aintained *isk 2chedule, and managed roject *isks.

"u- Pro/ect Manager . articipation in the 2ub+roject scoping sessions,including the planning and budgeting.

2igns off the 2ub+roject 2cope of 5ork, lan and "udget.

). !onitoring, tracking and controlling of the 2ub+roject. !aintained 2ub+roject 2cope of 5ork.

!aintained 2ub+roject lan.

!aintained 2ub+roject "udget.

!aintained 2ub+roject #ey erformance indicators $#Is%.

-elivery of 2ub+roject -eliverables within the agreed times,

cost and uality.

!eeting of 2ub+roject !ilestones.

6. !anagement and co+ordination of 2ub+roject Team. -elivery of !ajor Tasks according to 2ub+roject delivery

reuirements.

2cheduled and implemented 2ub+roject teambuilds and

training, as applicable.

7. 2ub+roject &ommunication. 2uccessfully conducted and minuted 2ub+roject meetings, as

per the agreed meeting schedule and format.

2ub+roject rogress *eports.

2ub+roject #I *eports and>or 9raphs.

Issue>'xception *eports.

Pro/ect Facilitator . 2coping of the project, including roject &oncept5orkshop, roject Initiation 5orkshop, 2ub+rojectInitiation 5orkshop and *e+scoping 5orkshops.

2igned off 2copes of 5ork, including4 &oncept, !acro and

2ub+rojects 2cope of 5ork.

). !onitoring and reporting on the progress of the projectaccording to the agreed roject scope and methodology.

Aacilitation *eport.

!entoring and advising on the methodology as applicable.

6. !entoring and guiding the !acro and 2ub+roject

!anagers, as reuired.

'xperienced and confident !acro and 2ub+roject !anagers.

Pro/ect Administrator . The set+up and ongoing maintenance of the rogramOffice for the project.

The co+ordination and maintenance of the office venue,

furniture and euipment, as authorised and provided by the!acro roject 2ponsor.

The implementation and maintenance of a manual and an

electronic filing system for macro and sub+project masterdocumentation.

The implementation of all software and methodology

templates.

). The scheduling and minuting of macro and sub+project !aintained macro and sub+project meeting schedule.

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meetings. 3ccurate and signed off minutes distributed within )7 hours.

2cheduling E arrangement of macro project meeting venues.

The preparation and distribution of agendas and attachments,

as applicable.

The issuing of meeting notifications, as applicable.

6. The consolidation of the 2ub+roject rogress *eportdetails into a !acro roject rogress *eport forcompletion by the !acro roject !anager.

&onsolidated !acro roject rogress *eport for completion by

!acro roject !anager.

7. The updating of the macro project plan, as reuired. Bpdated macro project plan, for approval by !acro roject

!anager.

1ey ,epresentati.e2$eam Mem-er

. 3ctive participation in the scoping of !acro and>or 2ub+rojects, as applicable.

2igns acceptance of the !acro and>or 2ub+roject 2cope of

5ork.

). Input to, andparticipation in, !acro and>or 2ub+rojectdelivery.

&ontribution of skills or knowledge as reuired by !acro

and>or 2ub+roject tasks.

3ttendance of !acro and>or 2ub+roject meetings.

Pro/ect Planner . Aacilitates the lanning process of the !acro and 2ub+rojects, and prepares the plans for sign off. This includesthe following sessions4

2ub+roject lanning 2essions

!acro roject lanning 2ession.

2igned off !acro and 2ub+roject '*T charts.

2igned off !acro and 2ub+roject 93NTT charts.

2igned off Task 2heet.

rovide electronic copy of all roject lans to the !acro and

2ub+roject !anagers, as reuired, for the ongoingmaintenance and tracking thereof.

). !aintains the !acro and>or 2ub+roject lans duringthe lifecycle of the project, if reuired.

3ccurately maintained !acro and>or 2ub+roject lans.



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Activity - Governance ModelActivity - Governance Model

Aill in the details as you discuss the governance model? remember you are looking at whoreports to whom within your project and again providing a clear definite structure for the all?

The Work Breakdown Structure (WBS) 3 family tree of project activities

3 graphical display of work to be done

The foundation for developing the Network diagram

The work breakdown structure $5"2% defines the total scope of the project, work not inthe 5"2 is outside the scope of the project. The 5"2 is often used to develop a commonunderstanding of the scope of the project, in a workshop environment. It@s graphical

nature, and ability to be created via post+it notes on a flip chart allows the structure to beeasily developed in a group environment.



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'ach =evel in the 5"2 represents an increasingly detailed description of the project.

'ach block in the 5"2 is assigned a uniue number to identify it.

The 5"2 should be explicit and easily understood.

3ll schedules should follow the 5"2.

-eveloping a work breakdown structure $5"2%-eveloping a work breakdown structure $5"2%2tep 4 Take Initiation workshop output2tep )4 &reate task list2tep 64 3ssign resources2tep 74 'stimate effort2tep 04 5ork into graphical representation

Task =istsTask =ists3 task list is one type of project plan. 3 task list resembles the work breakdown structure,but tasks are captured as an indented list. 'ach task captures4

3 description of what the task is

'xpected duration $average duration should be no more than 0 days%

It@s expected start and end dates

*esources assigned to the task

redecessors of the task

Gantt Chart guidelines !ilestones to show4

+ !ajor dependencies+ !ajor financial+ 3ll 2ign Off deliverables

Tasks should average 0 day duration

Task structure match 5"2

3 9antt chart should have all major dependency milestones, financial milestones anddeliverable milestones. 3 dependency milestone is the date a deliverable is reuired from

another project for your project to continue on its merry way.


roject

2ub roject 2ub roject )

!ajor Task !ajor Task 6!ajor Task ) !ajor Task 7

Task Task ) Task 6 Task 7


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It is the project manager@s responsibility to track progress of all dependency milestones andensure the issues and potential delays are incorporated into risk management plans, issueslogs and scope change reuests.

Ainancial milestones are those dates where benefits are expected to come to fruition, or costsare expected to peak. It is essential the project costs are tracked and monitored so that the

cost constraint is managed effectively.

Tasks in a project 9antt chart should be no longer than 0 days duration. It is very difficult totrack and monitor progress on a project where tasks extend over more than one week.

The task structure developed in the 9antt should be exactly as developed in the 5"2 in theinitiation workshop.



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Develop a work reakdown structureDevelop a work reakdown structure

Bsing the table below draw up a work breakdown structure4

TaskI-

Task redecessor -uration *esource

&3 &onference

. 'ngage

.) &onduct

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.. Invitations

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.). resentations

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... 5rite Invitations

...) 2end Invitations

..). *eceive applications

..).) *eceipt !oney

..6. Invite 2peakers

..6.) "ook 2peakers

..6.6 *eceive papers

..6.7 &ompile manual

..6.0 rint !anual

.).. 2peakers Introduction

.)..) 2peakers resentation.).). 2et up tables

.).).) repare food and drinks

.).).6 2erve food and drinks

.).).7 &lean up

.6.. 5rite 2urvey

.6..) 2end 2urvey

.6..6 &ollate and analyse results

.6.). 2et review workshop agenda

.6.).) &onduct workshop

.6.).6 &ollate results

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Network Diagram

The network diagram is used for4

2trategic planning

&ontrol> *eporting

&hange !anagement

3 network diagram is a schematic display of the projects activities and the logicalrelationships among them. The network diagram can be produced manually or using projectplanning software.

The diagram is used for strategic planning as it highlights such things as critical activities,predecessors and successors and the total duration of the project. It is also used to controland report progress as well as a change management aid. "y highlighting the impact of amovement in task duration@s on other tasks, a network diagram uickly highlights whenmilestone dates change.

Task elationshi!s

Nodes are used to represent the activity>task within a project. 3rrows indicate dependenciesor links. The diagram has a logic flow to it. 'ach node is connected by an arrow, which showsthe predecessor and successor of two activities.

The longest path of the network from start to finish is the critical path. The total duration of thecritical path is the total duration of the project.

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!etwork Diagram!etwork Diagram

TaskI-

Task redecessor -uration *esource

&3 &onference

. 'ngage

.) &onduct

.6 3ssess

.. Invitations

..) 3pplications

..6 2peakers

.). resentations

.).) Networking

.6. 2urvey

.6.) roject *eview... 5rite Invitations

...) 2end Invitations

..). *eceive applications

..).) *eceipt !oney

..6. Invite 2peakers

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..6.6 *eceive papers

..6.7 &ompile manual

..6.0 rint !anual

.).. 2peakers Introduction

.)..) 2peakers resentation

.).). 2et up tables.).).) repare food and drinks

.).).6 2erve food and drinks

.).).7 &lean up

.6.. 5rite 2urvey

.6..) 2end 2urvey

.6..6 &ollate and analyse results

.6.). 2et review workshop agenda

.6.).) &onduct workshop

.6.).6 &ollate results

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project management methodologies and concepts

Documents