PROJECT MANAGEMENTPROJECT MANAGEMENT

PROF HEATHER NELPROF HEATHER NEL

DIRECTOR: RAYMOND DIRECTOR: RAYMOND MHLABA INSTITUTE OF MHLABA INSTITUTE OF PUBLIC ADMINISTRATION AND PUBLIC ADMINISTRATION AND LEADERSHIPLEADERSHIP

padhjn@upe.ac.za

041-5042263 (tel/fax)041-5042263 (tel/fax)

PROJECT DEFINEDPROJECT DEFINED Any undertaking with a defined starting point and Any undertaking with a defined starting point and

specific objectives by which completion is specific objectives by which completion is identified (PMBOK)identified (PMBOK)

Any series of activities which has specific Any series of activities which has specific objectives, defined start and end dates and which objectives, defined start and end dates and which must be completed within certain constraints must be completed within certain constraints (Kerzner)(Kerzner)

A non-routine, non-repetitive, once-off undertaking A non-routine, non-repetitive, once-off undertaking (Burton & Michael)(Burton & Michael)

A complex effort to achieve a specific objective A complex effort to achieve a specific objective within a schedule and budget target, which within a schedule and budget target, which typically is unique, and is usually not repetitive typically is unique, and is usually not repetitive within the organisation (Knutzon & Bitz)within the organisation (Knutzon & Bitz)

PROJECTS VS ROUTINE PROJECTS VS ROUTINE OPERATIONSOPERATIONS

UniquenessUniqueness: project is undertaken to produce : project is undertaken to produce a unique product or purpose that cannot be a unique product or purpose that cannot be achieved through routine operationsachieved through routine operations

Non-repetitiveNon-repetitive: project is undertaken to : project is undertaken to achieve a purpose or product following which achieve a purpose or product following which it is deemed complete and not repeated on a it is deemed complete and not repeated on a continuous basiscontinuous basis

ExamplesExamples: Building a house, bridge or road : Building a house, bridge or road versus processing pension applications; versus processing pension applications; Developing a marketing plan versus Developing a marketing plan versus manufacturing carsmanufacturing cars

POLICY,PROGRAMME, POLICY,PROGRAMME, PROJECTPROJECT

POLICYPOLICY: Overall objectives of the : Overall objectives of the government; nationally applicable; macro-government; nationally applicable; macro-focusfocus

PROGRAMMEPROGRAMME: Designed to give effect : Designed to give effect to/implement/deliver policy; comprises a to/implement/deliver policy; comprises a number of interrelated and interdependent number of interrelated and interdependent projects; meso-focusprojects; meso-focus

PROJECTPROJECT: Designed to give effect to broader : Designed to give effect to broader programme; micro-focus; four major programme; micro-focus; four major constraints: time, cost, quality/performance, constraints: time, cost, quality/performance, and scopeand scope

PROGRAMMES AND PROJECTSPROGRAMMES AND PROJECTS

VARIOUS AIDS AW ARENESS SUB-PROJECTSIN THE GAUTENG PROVINCE

GAUTENG AIDS AW ARENESS PROJECT EASTERN CAPEAIDS AW ARENESS PROJECT

NATIONAL AIDS AW ARENESS PROGRAM M E

DEVELOPMENT PROJECTSDEVELOPMENT PROJECTS Job creationJob creation Labour-intensive technologyLabour-intensive technology Sustainability of project benefitsSustainability of project benefits High impact on communityHigh impact on community Community participationCommunity participation Empowerment and capacity-buildingEmpowerment and capacity-building Provision of basic needsProvision of basic needs Economic and political viabilityEconomic and political viability VisibilityVisibility

PROJECT MANAGEMENTPROJECT MANAGEMENT

Scope Scope managementmanagement

Integration Integration managementmanagement

Cost Cost managementmanagement

Quality Quality managementmanagement

Human Human resource resource managementmanagement

Communication Communication managementmanagement

Risk Risk managementmanagement

Procurement Procurement managementmanagement

Time Time managementmanagement

PROJECT MANAGEMENT CYCLEPROJECT MANAGEMENT CYCLE

PROJECT PLANNINGPROJECT PLANNING: Identification, : Identification, formulation, business plan, project formulation, business plan, project scope statement, preparation and scope statement, preparation and feasibility analysisfeasibility analysis

PROJECT IMPLEMENTATIONPROJECT IMPLEMENTATION: : Allocating responsibilities, work Allocating responsibilities, work breakdown structure, establishing time breakdown structure, establishing time schedules, resource scheduling, schedules, resource scheduling, monitoring and controlmonitoring and control

PROJECT EVALUATIONPROJECT EVALUATION: Identify policy : Identify policy objectives, key performance indicators, objectives, key performance indicators, collect data, compare datacollect data, compare data

PROJECT PLANNINGPROJECT PLANNING Sources of project Sources of project

ideasideas Need for Need for

community community participationparticipation

Objective tree Objective tree techniquetechnique

Writing a project Writing a project scope statementscope statement

Business plan and Business plan and logical framework logical framework analysisanalysis

BUSINESS PLANSBUSINESS PLANSARE A FOCUS ON WHAT NEEDS TO

BE DONECAN IDENTIFY THE NECESSARY

RESOURCESPROVIDE A PLAN OF HOW TO MEET

THE NEEDS OF THE COMMUNITY/ CLIENT

LINK THE PROJECT TO THE BUDGET OF THE ORGANISATION

WRITING BUSINESS PLANSWRITING BUSINESS PLANS

PLAN BEFORE YOU WRITEPLAN BEFORE YOU WRITE WHO IS THE AUDIENCE?WHO IS THE AUDIENCE? WHAT DO YOU NEED TO SAY?WHAT DO YOU NEED TO SAY?

USE A PRO-FORMA AS A GUIDEUSE A PRO-FORMA AS A GUIDE KEEP IT SIMPLEKEEP IT SIMPLE MAKE IT COMPLETEMAKE IT COMPLETE MINIMISE REDUNDANCYMINIMISE REDUNDANCY

COMPONENTS OF A COMPONENTS OF A BUSINESS PLANBUSINESS PLAN

1.1. DETAILS OF EXECUTING AGENCY AND PROJECT DETAILS OF EXECUTING AGENCY AND PROJECT MANAGERMANAGER

2.2. PROJECT SUMMARYPROJECT SUMMARY3.3. PROJECT BUDGETPROJECT BUDGET4.4. PROJECT JUSTIFICATIONPROJECT JUSTIFICATION5.5. PROJECT STRATEGYPROJECT STRATEGY6.6. TARGETED BENEFICIARIESTARGETED BENEFICIARIES7.7. EXPECTED RESULTSEXPECTED RESULTS8.8. PROJECT WORK PLANPROJECT WORK PLAN9.9. PROJECT OUTCOMESPROJECT OUTCOMES10.10. PROJECT ACTIVITIES/OUTPUTSPROJECT ACTIVITIES/OUTPUTS

PROJECT SCOPE PROJECT SCOPE MANAGEMENTMANAGEMENT

PROJECT SCOPEPROJECT SCOPE: the work that must be : the work that must be done to deliver a product or service within done to deliver a product or service within the specified features and functionsthe specified features and functions

OUTPUTOUTPUT: a written scope statement that : a written scope statement that subdivides the project into smaller, more subdivides the project into smaller, more manageable componentsmanageable components

OUTCOMEOUTCOME: clear assignment of : clear assignment of responsibilities and improved control and responsibilities and improved control and performance measurementperformance measurement

TECHNIQUETECHNIQUE: Work Breakdown Structure: Work Breakdown Structure

PROJECT SCOPE PROJECT SCOPE STATEMENTSTATEMENT

1) Project justification – the business need that the project was undertaken to address

2) Project product – a brief summary of the product/service to be provided

3) Project deliverables – a list of the sub-products whose satisfactory delivery marks the completion of the project

4) Project objectives – quantifiable criteria that must be met for the project to be successful and must include time, cost and quality measures (also called KPIs)

WORK BREAKDOWN WORK BREAKDOWN STRUCTURESTRUCTURE

Breaks project down Breaks project down into manageable into manageable chunkschunks

Breakdown continued Breakdown continued to level of project to level of project activity package (PAP)activity package (PAP)

PAP can be assigned PAP can be assigned to one individualto one individual

Average project has Average project has about 3 to 4 levelsabout 3 to 4 levels

Level 1: overall projectLevel 1: overall project

PROJECT SCHEDULINGPROJECT SCHEDULING• Comprises the ordering of activities Comprises the ordering of activities

required to ensure timely completion of required to ensure timely completion of projectproject

• What must be done? Activity definition, What must be done? Activity definition, activity sequencing, activity duration activity sequencing, activity duration estimating, schedule development and estimating, schedule development and schedule controlschedule control

• How? Bar/Gantt charts or networks How? Bar/Gantt charts or networks (PERT, CPM, Precedence, Activity-on-(PERT, CPM, Precedence, Activity-on-Arrow, Activity-on-Node)Arrow, Activity-on-Node)

PROJECT RESOURCE PROJECT RESOURCE MANAGEMENTMANAGEMENT

• Planning, allocating and scheduling resources Planning, allocating and scheduling resources to tasksto tasks

• What must be done? Resource smoothing (ie What must be done? Resource smoothing (ie ensure smooth demand of resources over life ensure smooth demand of resources over life cycle of projectcycle of project

• How? Deal with resource under- and How? Deal with resource under- and overloads:overloads:

1)1) Schedule resources to critical activities firstSchedule resources to critical activities first2)2) Make time-cost-quality trade-offsMake time-cost-quality trade-offs3)3) Work overtime or shiftsWork overtime or shifts4)4) Train staff or maintain equipment during slack Train staff or maintain equipment during slack

timestimes

PROJECT COST PROJECT COST MANAGEMENTMANAGEMENT

Includes the processes required to ensure that Includes the processes required to ensure that project is completed within approved budgetproject is completed within approved budget

1)1) Resource planningResource planning – determining what – determining what resources and what quantities thereof are resources and what quantities thereof are required to perform project activitiesrequired to perform project activities

2)2) Cost estimatingCost estimating – developing an – developing an approximation of costs of required resourcesapproximation of costs of required resources

3)3) Cost budgetingCost budgeting – allocating overall cost – allocating overall cost estimate to individual work itemsestimate to individual work items

4)4) Cost controlCost control – controlling changes to the – controlling changes to the project budgetproject budget

PROJECT RISK PROJECT RISK MANAGEMENTMANAGEMENT

1)1) Risk identificationRisk identification – determining which risks – determining which risks are likely to affect the project and are likely to affect the project and documenting characteristics of eachdocumenting characteristics of each

2)2) Risk quantificationRisk quantification – evaluating risks to – evaluating risks to assess range of possible project outcomesassess range of possible project outcomes

3)3) Risk response developmentRisk response development – defining – defining enhancement steps for opportunities and enhancement steps for opportunities and responses to threatsresponses to threats

4)4) Risk response controlRisk response control – responding to – responding to changes in risk over the duration of the changes in risk over the duration of the project (avoidance, mitigation, acceptance)project (avoidance, mitigation, acceptance)

RESPONDING TO RESPONDING TO PROJECT RISKSPROJECT RISKS

1)1) ProcurementProcurement – acquiring goods and services – acquiring goods and services from outside the project organisation (ie from outside the project organisation (ie transfer risks)transfer risks)

2)2) Contingency planningContingency planning – identify action steps – identify action steps to take should the identified risk event occurto take should the identified risk event occur

3)3) Alternative strategiesAlternative strategies – prevent/avoid risk – prevent/avoid risk events by changing the planned approachevents by changing the planned approach

4)4) InsuranceInsurance – available to deal with certain – available to deal with certain types of risk and cost of coverage varies types of risk and cost of coverage varies

5)5) ReservesReserves – provision in the project plan to – provision in the project plan to mitigate cost and/or schedule riskmitigate cost and/or schedule risk

PROJECT MONITORING PROJECT MONITORING AND CONTROLAND CONTROL

MONITORINGMONITORING:Continuously :Continuously assessing project during assessing project during implementation to determine implementation to determine progress in achieving project progress in achieving project objectives and milestonesobjectives and milestones

CONTROLLINGCONTROLLING: Establishing : Establishing baseline standards against baseline standards against which progress can be which progress can be measuredmeasured

PURPOSEPURPOSE: Quickly identify : Quickly identify variances between planned variances between planned and actual performanceand actual performance

OUTCOMEOUTCOME: Corrective action : Corrective action taken if requiredtaken if required

PROJECT EVALUATIONPROJECT EVALUATIONWHY?WHY? Learning Learning AdvocacyAdvocacy Resource allocationResource allocation AccountabilityAccountabilityHOW?HOW? Identify policy Identify policy

objectivesobjectives Establish key Establish key

performance indicatorsperformance indicators Collect dataCollect data Compare dataCompare data

ORGANISATIONAL ORGANISATIONAL STRUCTURESTRUCTURE

TYPES OF STRUCTURETYPES OF STRUCTURE FUNCTIONAL/BUREAUCRATICFUNCTIONAL/BUREAUCRATIC MATRIX (weak, balanced, strong)MATRIX (weak, balanced, strong) PROJECTISEDPROJECTISEDWHY REORGANISATION?WHY REORGANISATION? Environmental pressures, structural deficiencies, Environmental pressures, structural deficiencies,

technological innovation etctechnological innovation etcHOW REORGANISATION?HOW REORGANISATION? Organisational development (OD) and change Organisational development (OD) and change

management techniquesmanagement techniques NB! Resistance to changeNB! Resistance to change

PROJECT MANAGEMENT PROJECT MANAGEMENT SKILLSSKILLS

LEADERSHIPLEADERSHIP TRAITSTRAITS STYLESSTYLES ORIENTATIONSORIENTATIONSMOTIVATIONMOTIVATION TECHNIQUESTECHNIQUESTEAM-BUILDINGTEAM-BUILDING TECHNIQUESTECHNIQUES OUTCOMESOUTCOMESCONFLICT RESOLUTIONCONFLICT RESOLUTION SOURCES OF CONFLICTSOURCES OF CONFLICT MODES OF RESOLUTIONMODES OF RESOLUTION