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Planning The Project-1

Project Management

Adrienne Watt

BCCAMPUS

VICTORIA, B.C.

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Contents

Accessibility Statement vi

About the Book viii

Introduction x

Preface xi

1. Project Management: Past and Present 1 2. Project Management Overview 11 3. The Project Life Cycle (Phases) 24 4. Framework for Project Management 27 5. Stakeholder Management 42 6. Culture and Project Management 54 7. Project Initiation 57 8. Overview of Project Planning 73 9. Scope Planning 76 10. Project Schedule Planning 91 11. Resource Planning 105 12. Budget Planning 132 13. Procurement Management 147 14. Quality Planning 158 15. Communication Planning 170 16. Risk Management Planning 176 17. Project Implementation Overview 187 18. Project Completion 189 19. Celebrate! 194

Appendix 1: Project Management PowerPoints 195

Appendix 2: Chapter Questions 196

Appendix 3: Chapter Audio Files 204

About the Author 205

Versioning History 206

List of Links by Chapter for Print 208

Accessibility Statement

BCcampus Open Education believes that education must be available to everyone; this means supporting the creation of free, open, and accessible educational resources. We are actively committed to increasing the accessibility and usability of the textbooks we produce.

Accessibility features of the web version of this resource

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Known accessibility issues and areas for improvement

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Let us know if you are having problems accessing this book

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About the Book

About the Book

Project Management by Adrienne Watt and published by BCcampus Open Education is a remix and adaptation of the following works:

• 100 Percent Rule by Pabipedia licensed under © CC BY-SA (Attribution-ShareAlike).

• Communication Plans by Inte6160 Wiki licensed under Creative Commons Attribution 3.0 Licence.

• Decision Matrix Method and Project Charter by Wikipedia the Free Encyclopedia licensed under CC BY-SA (Attribution-ShareAlike).

• Gantt Chart by Wikipedia licensed under CC BY-SA (Attribution-ShareAlike).

• How to Build Relationships with Stakeholders by Erin Palmer licensed under CC BY (Attri- bution).

• Planning a Project by OpenLearn Labspace licensed under Creative Commons Attribution 3.0 Licence.

• Project Decelerators – Lack of Stakeholder Support by Jose Solera licensed under CC BY (Attribution).

• Project Management by Merrie Barron and Andrew Barron licensed under CC BY (Attribu- tion).

• Project Management for Instructional Designers by Amado, M., Ashton, K., Ashton, S., Bostwick, J., Clements, G., Drysdale, J., Francis, J., Harrison, B., Nan, V., Nisse, A., Randall, D., Rino, J., Robinson, J., Snyder, A., Wiley, D., & Anonymous licensed under Creative Commons Attribution 3.0 Licence.

• Project Management for Skills for All Careers by Project Management Open Resources and TAP-a-PM licensed under Creative Commons Attribution 3.0 Licence.

• Project Management from Simple to Complex by Russel Darnall, John Preston, Eastern Michigan University licensed under Creative Commons Attribution 3.0 Licence.

• Project Management/PMBOK/Human Resources Management and Development Coopera- tion Handbook/How do we manage the human resources of programmes and projects?/Man- age the Project Team by Wikibooks licensed under CC BY-SA (Attribution-ShareAlike).

• Project Management/PMBOK/Scope Management and Development Cooperation Handbook/ Designing and Executing Projects/Detailed Planning or design stage by Wikibooks licensed under © CC BY (Attribution).

• Resource Management and Resource Leveling by Wikipedia licensed under CC BY-SA (Attribution-ShareAlike).

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http://pabipedia.wikidot.com/100-percent-rule
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http://inte5160.wikispaces.com/Communication+Plans
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http://en.wikipedia.org/wiki/Decision-matrix_method
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http://en.wikipedia.org/wiki/Gantt_chart
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http://svprojectmanagement.com/build-relationships-with-stakeholders
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http://labspace.open.ac.uk/mod/resource/view.php?id=451673
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http://svprojectmanagement.com/project-decelerators-%E2%80%93-lack-of-stakeholder-support
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http://pm4id.org/9
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http://archive.org/stream/ost-business-projectmanagementforallcareersedition2/ProjectManagementforAllCareersEdition2_djvu.txt
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http://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=36
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http://en.wikibooks.org/wiki/Project_Management/PMBOK/Human_Resources_Management
http://en.wikibooks.org/wiki/Development_Cooperation_Handbook/How_do_we_manage_the_human_resources_of_programmes_and_projects%3F/Manage_the_Project_Team
http://en.wikibooks.org/wiki/Development_Cooperation_Handbook/How_do_we_manage_the_human_resources_of_programmes_and_projects%3F/Manage_the_Project_Team
http://en.wikibooks.org/wiki/Development_Cooperation_Handbook/How_do_we_manage_the_human_resources_of_programmes_and_projects%3F/Manage_the_Project_Team
https://creativecommons.org/licenses/by-sa/3.0/
http://en.wikibooks.org/wiki/Project_Management/PMBOK/Scope_Management
http://en.wikibooks.org/wiki/Development_Cooperation_Handbook/Designing_and_Executing_Projects/Detailed_Planning_or_design_stage
http://en.wikibooks.org/wiki/Development_Cooperation_Handbook/Designing_and_Executing_Projects/Detailed_Planning_or_design_stage
https://creativecommons.org/licenses/by-sa/3.0/
http://en.wikipedia.org/wiki/Resource_management
http://en.wikipedia.org/wiki/Resource_leveling
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https://creativecommons.org/licenses/by-sa/3.0/-
• Work Breakdown Structure by Wikipedia licensed under CC BY-SA (Attribution-Share- Alike).

About BCcampus Open Education

BCcampus Open Education began in 2012 as the B.C. Open Textbook Project with the goal of making post-secondary education in British Columbia more accessible by reducing student costs through the use of openly licensed textbooks and other OER. BCcampus supports the post-secondary institutions of British Columbia as they adapt and evolve their teaching and learning practices to enable powerful learn- ing opportunities for the students of B.C. BCcampus Open Education is funded by the British Columbia Ministry of Advanced Education, Skills & Training, and the Hewlett Foundation.

Open textbooks are open educational resources (OER) created and shared in ways so that more people have access to them. This is a different model than traditionally copyrighted materials. OER are defined as teaching, learning, and research resources that reside in the public domain or have been released under an intellectual property license that permits their free use and re-purposing by others.1 Our open textbooks are openly licensed using a © Creative Commons licence, and are offered in various e-book formats free of charge, or as printed books that are available at cost. For more information about open education in British Columbia, please visit the BCcampus Open Education website. If you are an instruc- tor who is using this book for a course, please fill out our Adoption of an Open Textbook form.

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Introduction

People have been undertaking projects since the earliest days of organized human activity. The hunting parties of our prehistoric ancestors were projects. Large complex projects such as the pyramids and the Great Wall of China were also projects. Even something as simple as creating a dinner is considered a project. We use the term “project” frequently in our daily conversations. This book covers the basics of project management. This includes the process of initiation, planning, execution, control, and closeout that all projects share.

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Preface

The primary purpose of this text is to provide an open source textbook that covers most project manage- ment courses. The material in the textbook was obtained from a variety of sources. All the sources are found in the reference section at the end of each chapter. I expect, with time, the book will grow with more information and more examples.

I welcome any feedback that would improve the book. If you would like to add a section to the book, please let me know.

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1. Project Management: Past and Present

Careers Using Project Management Skills

Skills learned by your exposure to studying project management can be used in most careers as well as in your daily life. Strong planning skills, good communication, ability to implement a project to deliver the product or service while also monitoring for risks and managing the resources will provide an edge toward your success. Project managers can be seen in many industry sectors including agriculture and natural resources; arts, media, and entertainment; building trades and construction; energy and utilities; engineering and design; fashion and interiors; finance and business; health and human services; hos- pitality, tourism, and recreation; manufacturing and product development; public and private education services; public services; retail and wholesale trade; transportation; and information technology.

Below we explore various careers and some of the ways in which project management knowledge can be leveraged.

Business Owners

Business owners definitely need to have some project management skills. With all successful businesses, the product or service being delivered to the customer meets their needs in many ways. The product or service is of the quality desired, the costs are aligned with what the consumer expected, and the timeli- ness of the product or service meets the deadline for the buyer of that item.

The pillars of project management are delivering a product/service within schedule, cost, scope, and quality requirements. Business owners need planning, organizing, and scoping skills and the ability to analyze, communicate, budget, staff, equip, implement, and deliver.

Understanding the finances, operations, and expenses of the business are among the skills that project managers learn and practice. Some businesses may focus more on accounting, providing financial advice, sales, training, public relations, and actuary or logistician roles. Business owners may own a travel agency or provide hospitality. Business owners could be managing a storefront or a location in their town’s marketplace.

Example: Restaurant Owner/Manager

Restaurant managers are responsible for the daily operations of a restaurant that prepares and serves meals and beverages to customers. Strong planning skills, especially coordinating with the various departments (kitchen, dining room, banquet operations, food service managers, vendors providing the supplies) ensure that customers are satisfied with their dining experience. Managers’ abilities to recruit and retain employees, and monitor employee performance and training ensure quality with cost contain- ment. Scheduling in many aspects, not only the staff but also the timing of the food service deliveries, is critical in meeting customer expectations.

Risk management is essential to ensure food safety and quality. Managers monitor orders in the kitchen to determine where delays may occur, and they work with the chef to prevent these delays. Legal compliance is essential in order for the restaurant to stay open, so restaurant managers direct the clean-

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ing of the dining areas and the washing of tableware, kitchen utensils, and equipment. They ensure the safety standards and legality, especially in serving alcohol. Sensitivity and strong communication skills are needed when customers have complaints or employees feel pressured because more customers arrive than predicted.

Financial knowledge is needed for the soundness of running the restaurant, especially tracking special projects, events, and costs for the various menu selections. Catering events smoothly can be an outcome of using project plans and the philosophy of project management. The restaurant manager or the execu- tive chef analyzes the recipes to determine food, labour, and overhead costs; determines the portion size and nutritional content of each serving; and assigns prices to various menu items, so that supplies can be ordered and received in time.

Planning is the key for successful implementation. Managers or executive chefs need to estimate food needs, place orders with distributors, and schedule the delivery of fresh food and supplies. They also plan for routine services (equipment maintenance, pest control, waste removal) and deliveries, including linen services or the heavy cleaning of dining rooms or kitchen equipment, to occur during slow times or when the dining room is closed. A successful restaurant relies on many skills that the project manage- ment profession emphasizes.

Outsourcing Services

Figure 1.1: Sample status chart, which is typical with the use of a red-yellow-green

Many businesses explore outsourcing for certain services. Below is a sample status and project plan that reflects the various tasks needed for a project. A review of finances, the importance of communicating to stakeholders, and the importance of time, cost, schedule, scope, and quality are reflected. Many com- panies may use these steps in their business. These plans show the need for the entire team to review the various proposals to choose the best plan. Figure 1.1 represents a sample project status report.

1. Project Management: Past and Present 2

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Example: Construction Managers

Construction managers plan, direct, coordinate, and budget a wide variety of residential, commercial, and industrial construction projects including homes, stores, offices, roads, bridges, wastewater treat- ment plants, schools, and hospitals. Strong scheduling skills are essential for this role. Communication skills are often used in coordinating design and construction processes, teams executing the work, and governance of special trades (carpentry, plumbing, electrical wiring) as well as government representa- tives for the permit processes.

A construction manager may be called a project manager or project engineer. The construction man- ager ensures that the project is completed on time and within budget while meeting quality specifica- tions and codes and maintaining a safe work environment. These managers create project plans in which they divide all required construction site activities into logical steps, estimating and budgeting the time required to meet established deadlines, usually utilizing sophisticated scheduling and cost-estimating software. Many use software packages such as Microsoft Project® or Procure® or online tools like Base- Camp®. Most construction projects rely on spreadsheets for project management. Procurement skills used in this field include acquiring the bills for material, lumber for the house being built, and more. Construction managers also coordinate labor, determining the needs and overseeing their performance, ensuring that all work is completed on schedule.

Values including sustainability, reuse, LEED-certified building, use of green energy, and various energy efficiencies are being incorporated into today’s projects with an eye to the future. Jennifer Rus- sell, spoke about project management and global sustainability” at the 2011 Silicon Valley Project Man- agement Institute (PMI) conference. She informed the attendees of the financial, environmental, and social areas in expanding the vision of project management with the slide in Figure 1.2. These values are part of the PMI’s code of ethics and professionalism. By adhering to this code, project managers include in their decisions the best interests of society, the safety of the public, and enhancement of the environ- ment.

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Figure 1.2: In addition to considering the cost, scope, and schedule of a project, a project manager should work to ensure the project is socially responsible, environmentally sound, and economically viable.

Creative Services

Creative service careers include graphic artists, curators, video editors, gaming managers, multimedia artists, media producers, technical writers, interpreters, and translators. These positions use project man- agement skills, especially in handling the delivery channel and meeting clients’ requirements.

Let us look at one example, graphic artists, to understand and identify some of the project management skills that aid in this career.

Example: Graphic Artists

Graphic artists plan, analyze, and create visual solutions to communication problems. They use many skills found in project management, especially communications. They work to achieve the most effective way to get messages across in print and electronic media. They emphasize their messages using colour, type, illustration, photography, animation, and various print and layout techniques. Results can be seen in magazines, newspapers, journals, corporate reports, and other publications. Other deliverables from graphic artists using project management skills include promotional displays, packaging, and market- ing brochures supporting products and services, logos, and signage. In addition to print media, graphic artists create materials for the web, TV, movies, and mobile device apps.

Initiation in project management can be seen in developing a new design: determining the needs of the client, the message the design should portray, and its appeal to customers or users. Graphic designers consider cognitive, cultural, physical, and social factors in planning and executing designs for the target

1. Project Management: Past and Present 4

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audience, very similar to some of the dynamics a project manager considers in communicating with var- ious project stakeholders. Designers may gather relevant information by meeting with clients, creative staff, or art directors; brainstorming with others within their firm or professional association; and per- forming their own research to ensure that their results have high quality and they can manage risks.

Graphic designers may supervise assistants who follow instructions to complete parts of the design process. Therefore scheduling, resource planning, and cost monitoring are pillars of project management seen in this industry. These artists use computer and communications equipment to meet their clients’ needs and business requirements in a timely and cost-efficient manner.

Educators

“Educator” is a broad term that can describe a career in teaching, maybe being a lecturer, a professor, a tutor, or a home-schooler. Other educators include gurus, mullahs, pastors, rabbis, and priests. Instruc- tors also provide vocational training or teach skills like learning how to drive a car or use a computer. Educators provide motivation to learn a new language or showcase new products and services. Educators use project management skills including planning and communication.

Let us look at teachers, since we all have had teachers, and see if we can recognize the project man- agement skills that are demonstrated in this profession.

Example: Teachers

Some teachers foster the intellectual and social development of children during their formative years; other teachers provide knowledge, career skill sets, and guidance to adults. Project management skills that teachers exhibit include acting as facilitators or coaches and communicating in the classroom and in individual instruction. Project managers plan and evaluate various aspects of a project; teachers plan, evaluate, and assign lessons; implement these plans; and monitor each student’s progress similar to the way a project manager monitors and delivers goods or services. Teachers use their people skills to man- age students, parents, and administrators. The soft skills that project managers exercise can be seen in teachers who encourage collaboration in solving problems by having students work in groups to discuss and solve problems as a team.

Project managers may work in a variety of fields with a broad assortment of people, similar to teachers who work with students from varied ethnic, racial, and religious backgrounds. These teachers must have awareness and understanding of different cultures.

Teachers in some schools may be involved in making decisions regarding the budget, personnel, text- books, curriculum design, and teaching methods, demonstrating skills that a project manager would pos- sess such as financial management and decision making.

Engineers

Engineers apply the principles of science and mathematics to develop economical solutions to technical problems. As a project cycles from an idea in the project charter to the implementation and delivery of a product or service, engineers link scientific discoveries to commercial applications that meet societal and consumer needs.

Engineers use many project management skills, especially when they must specify functional require- ments. They demonstrate attention to quality as they evaluate a design’s overall effectiveness, cost, reli-

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ability, and safety similar to the project manager reviewing the criteria for the customer’s acceptance of delivery of the product or service.

Estimation skills in project management are used in engineering. Engineers are asked many times to provide an estimate of time and cost required to complete projects.

Health Care

There are many jobs and careers in health care that use project management skills. Occupations in the field of health care vary widely, such as athletic trainer, dental hygienist, massage therapist, occupa- tional therapist, optometrist, nurse, physician, physician assistant, and X-ray technician. These individ- uals actively apply risk management in providing health care delivery of service to their clients, ensuring that they do not injure the person they are caring for. Note: There is a section on nursing later in this chapter.

Many of you may have had a fall while you were growing up, and needed an X-ray to determine if you had a fracture or merely a sprain. Let us look at this career as an example of a health care profes- sional using project management skills.

Example: Radiology Technologists

Radiology technologists and technicians perform diagnostic imaging examinations like X-rays, com- puted tomography (CT), magnetic resonance imaging (MRI), and mammography. They could also be called radiographers, because they produce X-ray films (radiographs) of parts of the human body for use in diagnosing medical problems.

Project management skills, especially people skills and strong communication, are demonstrated when they prepare patients for radiologic examinations by explaining the procedure and what position the patient needs to be in, so that the parts of the body can be appropriately radiographed. Risk man- agement is demonstrated when these professionals work to prevent unnecessary exposure to radiation by surrounding the exposed area with radiation protection devices, such as lead shields, or limiting the size of the X-ray beam. To ensure quality results, the health technician monitors the radiograph and sets con- trols on the X-ray machine to produce radiographs of the appropriate density, detail, and contrast.

Safety and regulations concerning the use of radiation to protect themselves, their patients, and their coworkers from unnecessary exposure is tracked in an efficient manner and reported as a control to ensure compliance. Project management skills are also used in preparing work schedules, evaluating equipment for purchase, or managing a radiology department.

Some radiological technologists specialize in CT scans; as CT technologists they too use project man- agement skills. CT uses ionizing radiation to produce a substantial number of cross-sectional X-rays of an area of the body. Therefore, it requires the same precautionary measures that are used with X-rays, hence the need for risk management and monitoring for exposure.

Teamwork, not only with the patient that the radiological technologist supports and the doctor who ordered the request, but also with other health care providers, relies on strong communication, quality, work done in a timely manner, and wise use of hospital resources. This all boils down to ensuring that the three elements of the project management triangle of cost, schedule, and scope with quality delivered remain the essentials that provide a cornerstone to project management and the skills needed to obtain the objective.

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Example: Nurses

Nurses treat and educate patients and their families and the public about various medical conditions and provide advice and emotional support. Nurses establish a care plan for their patients that include activ- ities like scheduling the administration and discontinuation of medications (e.g., intravenous (IV) lines for fluid, medication, blood, and blood products) and application of therapies and treatments. Communi- cation with the patient, their family, physicians and other health care clinicians may be done in person or via technology. Telehealth allows nurses to provide care and advice through electronic communications media including videoconferencing, the Internet, or telephone.

Risk management is very important for a nurse, with some cases having a life or death consequence. Nurses monitor pain management and vital signs and provide status reports to physicians to help in responding to the health care needs of the patient.

The nursing field varies. Some nurses work in infection control. They identify, track, and control infectious outbreaks in health care facilities and create programs for outbreak prevention and response to biological terrorism. Others are educators who plan, develop, execute, and evaluate educational pro- grams and curricula for the professional development of students and graduate nurses. Nurses may use project management skills while conducting health care consultations, advising on public policy, researching in the field, or providing sales support of a product or service.

Paralegal

Attorneys assume the ultimate responsibility for legal work but they often obtain assistance. Paralegals assume this role in law firms and perform many tasks to aid the legal profession. However, they are explicitly prohibited from carrying out duties considered to be the practice of law (e.g., giving legal advice, setting legal fees, presenting court cases).

Project management skills such as planning are used in helping lawyers prepare for closings, hearings, trials, and corporate meetings. Communication skills are used in preparing written reports that help attor- neys determine how cases should be handled or drafts for actions such as pleading, filing motions, and obtaining affidavits.

Monitoring skills aid paralegals who may track files of important case documents, working on risk containment related to filing dates and responses to the court. Procurement skills, which a project man- ager uses, can also be seen from a paralegal perspective in negotiating terms of hiring expert witnesses as well as other services such as acquiring services from process servers.

Financial skills may be used as well, such as assisting in preparing tax returns, establishing trust funds, and planning estates or maintaining financial office records at the law firm.

Government, litigation, personal injury, corporate law, criminal law, employee benefits, intellectual property, labour law, bankruptcy, immigration, family law, and real estate are some of the many different law practices where a paralegal professional may use project management skills.

Software developer

Computer software developers and computer programmers design and develop software. They apply the principles of computer science and mathematics to create, test, and evaluate software applications and systems that make computers come alive. Software is developed in many kinds of projects: computer games, business applications, operating systems, network control systems, and more. Software devel- opers us project management skills to develop the requirements for the software, identify and track the

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product development tasks, communicate within the development team and with clients, test cases, and manage quality, the schedule, and resources (staff, equipment, labs, and more).

Science Technicians

Science technicians use principles and theories of science and mathematics to assist in research and development and help invent and improve products and processes. In their jobs, they are more practically oriented than scientists. Planning skills project managers use can be seen as science technicians set up, operate, and maintain labouratory instruments; monitor experiments; and observe, calculate, and record results. Quality is a factor here as it is in project management; science technicians must ensure that processes are performed correctly, with proper proportions of ingredients, for purity or for strength and durability.

There are different fields in which science technicians can apply project management skills. Agricul- tural and food science technicians test food and other agricultural products and are involved in food, fibre, and animal research, production, and processing. Control and risk management are important here in executing the tests and experiments, for example, to improve the yield and quality of crops, or the resistance of plants and animals to disease, insects, or other hazards. Quality factors are paramount when food science technicians conduct tests on food additives and preservatives to ensure compliance with government regulations regarding colour, texture, and nutrients.

Biological technicians work with biologists studying living organisms. Many assist scientists who conduct medical research or who work in pharmaceutical companies to help develop and manufacture medicines. Skills in scheduling, especially in incubation periods for the study of the impact on cells, could impact projects, such as exploring and isolating variables for research in living organisms and infectious agents. Biotechnology technicians apply knowledge and execution skills and techniques gained from basic research, including gene splicing and recombinant DNA, to product development. Project management skills are used in collaboration and communication among team members to record and understand the results and progress toward a cure or product.

Other kinds of technicians are chemical technicians who may work in labouratories or factories, using monitoring and control skills in the way they collect and analyze samples. Again, quality assurance is an important factor for most process technicians’ work in manufacturing, testing packaging for design, ensuring integrity of materials, and verifying environmental acceptability.

Technicians use a project management skill set to assist in their initiation, planning, and executing tasks, while managing risks with some measure of reporting to determine if their objectives satisfy the constraints of cost, schedule, resource, and quality standards set.

History

Could the Great Wall of China, the pyramids, or Stonehenge have been built without project manage- ment? It is possible to say that the concept of project management has been around since the beginning of history. It has enabled leaders to plan bold and massive projects and manage funding, materials, and labour within a designated time frame.

In late 19th century, in the United States, large-scale government projects were the impetus for making important decisions that became the basis for project management methodology such as the transcon- tinental railroad, which began construction in the 1860s. Suddenly, business leaders found themselves

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faced with the daunting task of organizing the manual labour of thousands of workers and the processing and assembly of unprecedented quantities of raw material.

Figure 1.3: MindView Gantt Chart.

Henry Gantt, studied in great detail the order of operations in work and is most famous for developing the Gantt chart in the 1910s. A Gantt chart (Figure 1.3) is a popular type of bar chart that illustrates a project schedule and has become a common technique for representing the phases and activities of a pro- ject so they can be understood by a wide audience. Although now a common charting technique, Gantt charts were considered revolutionary at the time they were introduced. Gantt charts were employed on major infrastructure projects in the United States including the Hoover Dam and the interstate highway system and are still accepted today as important tools in project management.

By the mid-20th century, projects were managed on an ad hoc basis using mostly Gantt charts and informal techniques and tools. During that time, the Manhattan Project was initiated and its complexity was only possible because of project management methods. The Manhattan Project was the code name given to the Allied effort to develop the first nuclear weapons during World War II. It involved over 30 different project sites in the United States and Canada, and thousands of personnel from the United States, Canada, and the U.K. Born out of a small research program that began in 1939, the Manhattan Project would eventually employ 130,000 people, cost a total of nearly US$2 billion, and result in the creation of multiple production and research sites operated in secret. The project succeeded in develop- ing and detonating three nuclear weapons in 1945.

The 1950s marked the beginning of the modern project management era. Two mathematical project- scheduling models were developed.

The program evaluation and review technique (PERT) was developed by Booz-Allen and Hamilton as part of the United States Navy’s Polaris missile submarine program. PERT is basically a method for analyzing the tasks involved in completing a project, especially the time needed to complete each task, the dependencies among tasks, and the minimum time needed to complete the total project (Figure 1.4).

The critical path method (CPM) was developed in a joint venture by DuPont Corporation and Rem-

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ington Rand Corporation for managing plant maintenance projects. The critical path determines the float, or schedule flexibility, for each activity by calculating the earliest start date, earliest finish date, latest start date, and latest finish date for each activity. The critical path is generally the longest full path on the project. Any activity with a float time that equals zero is considered a critical path task. CPM can help you figure out how long your complex project will take to complete and which activities are critical, meaning they have to be done on time or else the whole project will take longer. These mathematical techniques quickly spread into many private enterprises.

Figure 1.4: Pert Chart

Project management in its present form began to take root a few decades ago. In the early 1960s, indus- trial and business organizations began to understand the benefits of organizing work around projects. They understood the critical need to communicate and integrate work across multiple departments and professions.

Text Attributions

This chapter of Project Management is a derivative and remix of the following sources:

• Project Management by Merrie Barron and Andrew Barron. © CC BY (Attribution).

• Project Management for Skills for All Careers by Project Management Open Resources and TAP-a-PM. © Creative Commons Attribution 3.0 Licence.

Media Attributions

• Sourcing initiative status report by Maura Irene Jones in Project Management Skills for All Careers © CC BY (Attribution)

• Project Management Triange by Jennifer Russell © CC BY (Attribution)

• Mindview Gantt Chart by Matchware Inc (MindView) © CC BY-SA (Attribution Share- Alike)

• Pert Chart (Colored) by Jeremykemp adapted by Rehua © Public Domain

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2. Project Management Overview

The starting point in discussing how projects should be properly managed is to first understand what a project is and, just as importantly, what it is not.

People have been undertaking projects since the earliest days of organized human activity. The hunt- ing parties of our prehistoric ancestors were projects, for example; they were temporary undertakings directed at the goal of obtaining meat for the community. Large complex projects have also been with us for a long time. The pyramids and the Great Wall of China were in their day of roughly the same dimensions as the Apollo project to send men to the moon. We use the term “project” frequently in our daily conversations. A husband, for example may tell his wife, “My main project for this weekend is to straighten out the garage.” Going hunting, building pyramids, and fixing faucets all share certain fea- tures that make them projects.

Project Attributes

A project has distinctive attributes that distinguish it from ongoing work or business operations. Projects are temporary in nature. They are not an everyday business process and have definitive start dates and end dates. This characteristic is important because a large part of the project effort is dedicated to ensur- ing that the project is completed at the appointed time. To do this, schedules are created showing when tasks should begin and end. Projects can last minutes, hours, days, weeks, months, or years.

Projects exist to bring about a product or service that hasn’t existed before. In this sense, a project is unique. Unique means that this is new; this has never been done before. Maybe it’s been done in a very similar fashion before but never exactly in this way. For example, Ford Motor Company is in the busi- ness of designing and assembling cars. Each model that Ford designs and produces can be considered a project. The models differ from each other in their features and are marketed to people with various needs. An SUV serves a different purpose and clientele than a luxury car. The design and marketing of these two models are unique projects. However, the actual assembly of the cars is considered an opera- tion (i.e., a repetitive process that is followed for most makes and models).

In contrast with projects, operations are ongoing and repetitive. They involve work that is continuous without an ending date and with the same processes repeated to produce the same results. The purpose of operations is to keep the organization functioning while the purpose of a project is to meet its goals and conclude. Therefore, operations are ongoing while projects are unique and temporary.

A project is completed when its goals and objectives are accomplished. It is these goals that drive the project, and all the planning and implementation efforts undertaken to achieve them. Sometimes projects end when it is determined that the goals and objectives cannot be accomplished or when the product or service of the project is no longer needed and the project is cancelled.

Definition of a Project

There are many written definitions of a project. All of them contain the key elements described above. For those looking for a formal definition of a project, the Project Management Institute (PMI) defines a

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project as a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end. The end is reached when the project’s objec- tives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists.

Project Characteristics

When considering whether or not you have a project on your hands, there are some things to keep in mind. First, is it a project or an ongoing operation? Second, if it is a project, who are the stakeholders? And third, what characteristics distinguish this endeavor as a project?

Projects have several characteristics:

• Projects are unique.

• Projects are temporary in nature and have a definite beginning and ending date.

• Projects are completed when the project goals are achieved or it’s determined the project is no longer viable.

A successful project is one that meets or exceeds the expectations of the stakeholders. Consider the following scenario: The vice-president (VP) of marketing approaches you with a fabu-

lous idea. (Obviously it must be “fabulous” because he thought of it.) He wants to set up kiosks in local grocery stores as mini-offices. These offices will offer customers the ability to sign up for car and home insurance services as well as make their bill payments. He believes that the exposure in grocery stores will increase awareness of the company’s offerings. He told you that senior management has already cleared the project, and he’ll dedicate as many resources to this as he can. He wants the new kiosks in place in 12 selected stores in a major city by the end of the year. Finally, he has assigned you to head up this project.

Your first question should be, “Is it a project?” This may seem elementary, but confusing projects with ongoing operations happens often. Projects are temporary in nature, have definite start and end dates, result in the creation of a unique product or service, and are completed when their goals and objectives have been met and signed off by the stakeholders.

Using these criteria, let’s examine the assignment from the VP of marketing to determine if it is a pro- ject:

• Is it unique? Yes, because the kiosks don’t exist in the local grocery stores. This is a new way of offering the company’s services to its customer base. While the service the company is offering isn’t new, the way it is presenting its services is.

• Does the product have a limited timeframe? Yes, the start date of this project is today, and the end date is the end of next year. It is a temporary endeavor.

• Is there a way to determine when the project is completed? Yes, the kiosks will be installed and the services will be offered from them. Once all the kiosks are installed and operating, the project will come to a close.

• Is there a way to determine stakeholder satisfaction? Yes, the expectations of the stakeholders will be documented in the form of requirements during the planning processes. These requirements will be compared to the finished product to determine if it meets the expecta-

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tions of the stakeholder.

If the answer is yes to all these questions, then we have a project.

The Process of Project Management

You’ve determined that you have a project. What now? The notes you scribbled down on the back of the napkin at lunch are a start, but not exactly good project management practice. Too often, organizations follow Nike’s advice when it comes to managing projects when they “just do it.” An assignment is made, and the project team members jump directly into the development of the product or service requested. In the end, the delivered product doesn’t meet the expectations of the customer. Unfortunately, many projects follow this poorly constructed path, and that is a primary contributor to a large percentage of projects not meeting their original objectives, as defined by performance, schedule, and budget.

In the United States, more than $250 billion is spent each year on information technology (IT) appli- cation development in approximately 175,000 projects. The Standish Group (a Boston-based leader in project and value performance research) released the summary version of their 2009 CHAOS Report that tracks project failure rates across a broad range of companies and industries (Figure 2.1).

Figure 2.1: Summary of 2009 Standish Group CHAOS report.

Jim Johnson, chairman of the Standish Group, has stated that “this year’s results show a marked decrease in project success rates, with 32% of all projects succeeding which are delivered on time, on budget, with required features and functions, 44% were challenged-which are late, over budget, and/or with less than the required features and functions and 24% failed which are cancelled prior to completion or delivered and never used.”

When are companies going to stop wasting billions of dollars on failed projects? The vast majority of this waste is completely avoidable: simply get the right business needs (requirements) understood early in the process and ensure that project management techniques are applied and followed, and the project activities are monitored.

Applying good project management discipline is the way to help reduce the risks. Having good project

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management skills does not completely eliminate problems, risks, or surprises. The value of good pro- ject management is that you have standard processes in place to deal with all contingencies.

Project management is the application of knowledge, skills, tools, and techniques applied to project activities in order to meet the project requirements. Project management is a process that includes plan- ning, putting the project plan into action, and measuring progress and performance.

Managing a project includes identifying your project’s requirements and writing down what everyone needs from the project. What are the objectives for your project? When everyone understands the goal, it’s much easier to keep them all on the right path. Make sure you set goals that everyone agrees on to avoid team conflicts later on. Understanding and addressing the needs of everyone affected by the pro- ject means the end result of your project is far more likely to satisfy your stakeholders. Last but not least, as project manager, you will also be balancing the many competing project constraints.

On any project, you will have a number of project constraints that are competing for your attention. They are cost, scope, quality, risk, resources, and time.

• Cost is the budget approved for the project including all necessary expenses needed to deliver the project. Within organizations, project managers have to balance between not run- ning out of money and not underspending because many projects receive funds or grants that have contract clauses with a “use it or lose it” approach to project funds. Poorly executed budget plans can result in a last-minute rush to spend the allocated funds. For virtually all projects, cost is ultimately a limiting constraint; few projects can go over budget without eventually requiring a corrective action.

• Scope is what the project is trying to achieve. It entails all the work involved in delivering the project outcomes and the processes used to produce them. It is the reason and the purpose of the project.

• Quality is a combination of the standards and criteria to which the project’s products must be delivered for them to perform effectively. The product must perform to provide the function- ality expected, solve the identified problem, and deliver the benefit and value expected. It must also meet other performance requirements, or service levels, such as availability, relia- bility, and maintainability, and have acceptable finish and polish. Quality on a project is con- trolled through quality assurance (QA), which is the process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.

• Risk is defined by potential external events that will have a negative impact on your project if they occur. Risk refers to the combination of the probability the event will occur and the impact on the project if the event occurs. If the combination of the probability of the occur- rence and the impact on the project is too high, you should identify the potential event as a risk and put a proactive plan in place to manage the risk.

• Resources are required to carry out the project tasks. They can be people, equipment, facili- ties, funding, or anything else capable of definition (usually other than labour) required for the completion of a project activity.

• Time is defined as the time to complete the project. Time is often the most frequent project oversight in developing projects. This is reflected in missed deadlines and incomplete deliv- erables. Proper control of the schedule requires the careful identification of tasks to be per- formed and accurate estimations of their durations, the sequence in which they are going to be done, and how people and other resources are to be allocated. Any schedule should take

2. Project Management Overview 14

into account vacations and holidays.

You may have heard of the term “triple constraint,” which traditionally consisted of only time, cost, and scope. These are the primary competing project constraints that you have to be most aware of. The triple constraint is illustrated in the form of a triangle to visualize the project work and see the relationship between the scope/quality, schedule/time, and cost/resource (Figure 2.2). In this triangle, each side rep- resents one of the constraints (or related constraints) wherein any changes to any one side cause a change in the other sides. The best projects have a perfectly balanced triangle. Maintaining this balance is dif- ficult because projects are prone to change. For example, if scope increases, cost and time may increase disproportionately. Alternatively, if the amount of money you have for your project decreases, you may be able to do as much, but your time may increase.

Figure 2.2: A schematic of the triple constraint triangle.

Your project may have additional constraints that you must face, and as the project manager, you have to balance the needs of these constraints against the needs of the stakeholders and your project goals. For instance, if your sponsor wants to add functionality to the original scope, you will very likely need more money to finish the project, or if they cut the budget, you will have to reduce the quality of your scope, and if you don’t get the appropriate resources to work on your project tasks, you will have to extend your schedule because the resources you have take much longer to finish the work.

You get the idea; the constraints are all dependent on each other. Think of all of these constraints as the classic carnival game of Whac-a-mole (Figure 2.3). Each time you try to push one mole back in the hole, another one pops out. The best advice is to rely on your project team to keep these moles in place.

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Figure 2.3: Whac-a-mole.

Here is an example of a project that cut quality because the project costs were fixed. The P-36 oil plat- form (Figure 2.4) was the largest footing production platform in the world capable of processing 180,000 barrels of oil per day and 5.2 million cubic metres of gas per day. Located in the Roncador Field, Cam- pos Basin, Brazil, the P-36 was operated by Petrobras.

Figure 2.4.: The Petrobras P-36 oil platform sinking.

In March 2001, the P-36 was producing around 84,000 barrels of oil and 1.3 million cubic metres of gas per day when it became destabilized by two explosions and subsequently sank in 3,900 feet of water with 1,650 short tons of crude oil remaining on board, killing 11 people. The sinking is attributed to a complete failure in quality assurance, and pressure for increased production led to corners being cut on safety procedures. It is listed as one of the most expensive accidents with a price tag of $515,000,000.

The following quotes are from a Petrobras executive, citing the benefits of cutting quality assurance and inspection costs on the project.

“Petrobras has established new global benchmarks for the generation of exceptional shareholder wealth through an aggressive and innovative program of cost cutting on its P36 production facility.”

“Conventional constraints have been successfully challenged and replaced with new paradigms appropriate to the globalized corporate market place.”

“Elimination of these unnecessary straitjackets has empowered the project’s suppliers and contractors to pro- pose highly economical solutions, with the win-win bonus of enhanced profitability margins for themselves.”

“The P36 platform shows the shape of things to come in the unregulated global market economy of the 21st century.”

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The dynamic trade-offs between the project constraint values have been humorously and accurately described in Figure 2.5.

Figure 2.5: Good, Quick, Cheap: Choose two. A sign seen at an automotive repair shop. [Image Description]

Project Management Expertise

In order for you, as the project manager, to manage the competing project constraints and the project as a whole, there are some areas of expertise you should bring to the project team (Figure 2.11). They are knowledge of the application area and the standards and regulations in your industry, understand- ing of the project environment, general management knowledge and skills, and interpersonal skills. It should be noted that industry expertise is not in a certain field but the expertise to run the project. So while knowledge of the type of industry is important, you will have a project team supporting you in this endeavor. For example, if you are managing a project that is building an oil platform, you would not be expected to have a detailed understanding of the engineering since your team will have mechanical and civil engineers who will provide the appropriate expertise; however, it would definitely help if you understood this type of work.

Let’s take a look at each of these areas in more detail.

Application knowledge

By standards, we mean guidelines or preferred approaches that are not necessarily mandatory. In con- trast, when referring to regulations we mean mandatory rules that must be followed, such as government- imposed requirements through laws. It should go without saying that as a professional, you’re required to follow all applicable laws and rules that apply to your industry, organization, or project. Every indus- try has standards and regulations. Knowing which ones affect your project before you begin work will not only help the project to unfold smoothly, but will also allow for effective risk analysis.

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Figure 2.6: Areas of expertise that a project manager should bring to the project team.

Some projects require specific skills in certain application areas. Application areas are made up of cate- gories of projects that have common elements. They can be defined by industry group (pharmaceutical, financial, etc.), department (accounting, marketing, legal, etc.), technology (software development, engi- neering, etc), or management specialties (procurement, research and development, etc.). These appli- cation areas are usually concerned with disciplines, regulations, and the specific needs of the project, the customer, or the industry. For example, most government agencies have specific procurement rules that apply to their projects that wouldn’t be applicable in the construction industry. The pharmaceutical industry is interested in regulations set forth by government regulators, whereas the automotive industry has little or no concern for either of these types of regulations. You need to stay up-to-date regarding your industry so that you can apply your knowledge effectively. Today’s fast-paced advances can leave you behind fairly quickly if you don’t stay abreast of current trends.

Having some level of experience in the application area you’re working in will give you an advantage when it comes to project management. While you can call in experts who have the application area knowledge, it doesn’t hurt for you to understand the specific aspects of the application areas of your pro- ject.

Understanding the Project Environment

There are many factors that need to be understood within your project environment (Figure 2.7). At one level, you need to think in terms of the cultural and social environments (i.e., people, demographics, and education). The international and political environment is where you need to understand about differ- ent countries’ cultural influences. Then we move to the physical environment; here we think about time zones. Think about different countries and how differently your project will be executed whether it is just in your country or if it involves an international project team that is distributed throughout the world in five different countries.

Figure 2.7: The important factors to consider within the project environment.

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Of all the factors, the physical ones are the easiest to understand, and it is the cultural and international factors that are often misunderstood or ignored. How we deal with clients, customers, or project mem- bers from other countries can be critical to the success of the project. For example, the culture of the United States values accomplishments and individualism. Americans tend to be informal and call each other by first names, even if having just met. Europeans tend to be more formal, using surnames instead of first names in a business setting, even if they know each other well. In addition, their communica- tion style is more formal than in the United States, and while they tend to value individualism, they also value history, hierarchy, and loyalty. The Japanese, on the other hand, tend to communicate indirectly and consider themselves part of a group, not as individuals. The Japanese value hard work and success, as most of us do.

How a product is received can be very dependent on the international cultural differences. For exam- ple, in the 1990s, when many large American and European telecommunications companies were culti- vating new markets in Asia, their customer’s cultural differences often produced unexpected situations. Western companies planned their telephone systems to work the same way in Asia as they did in Europe and the United States. But the protocol of conversation was different. Call-waiting, a popular feature in the West, is considered impolite in some parts of Asia. This cultural blunder could have been avoided had the team captured the project environment requirements and involved the customer.

It is often the simplest things that can cause trouble since, unsurprisingly, in different countries, people do things differently. One of the most notorious examples of this is also one of the most simple: date for- mats. What day and month is 2/8/2009? Of course it depends where you come from; in North America it is February 8th while in Europe (and much of the rest of the world) it is 2nd August. Clearly, when schedules and deadlines are being defined it is important that everyone is clear on the format used.

The diversity of practices and cultures and its impact on products in general and on software in par- ticular goes well beyond the date issue. You may be managing a project to create a new website for a company that sells products worldwide. There are language and presentation style issues to take into consideration; converting the site into different languages isn’t enough. It is obvious that you need to ensure the translation is correct; however, the presentation layer will have its own set of requirements for different cultures. The left side of a website may be the first focus of attention for a Canadian; the right side would be the initial focus for anyone from the Middle East, as both Arabic and Hebrew are writ- ten from right to left. Colors also have different meanings in different cultures. White, which is a sign of purity in North America (e.g., a bride’s wedding dress), and thus would be a favoured background colour in North America, signifies death in Japan (e.g., a burial shroud). Table 2.1 summarizes different meanings of common colours.

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Table 2.1: The meaning of colours in various cultures.

Colour United States China Japan Egypt France

Red Danger, stop Happiness Anger, danger Death Aristocracy

Blue Sadness,melancholy Heavens, clouds Villainy Virtue, faith, truth Freedom, peace

Green Novice,apprentice Ming dynasty, heavens

Future, youth, energy Fertility, strength Criminality

Yellow Cowardice Birth, wealth Grace, nobility Happiness,prosperity Temporary

White Purity Death, purity Death Joy Naturality

Project managers in multicultural projects must appreciate the culture dimensions and try to learn rel- evant customs, courtesies, and business protocols before taking responsibility for managing an interna- tional project. A project manager must take into consideration these various cultural influences and how they may affect the project’s completion, schedule, scope, and cost.

Management Knowledge and Skills

As the project manager, you have to rely on your project management knowledge and your general management skills. Here, we are thinking of items like your ability to plan the project, execute it prop- erly, and of course control it and bring it to a successful conclusion, along with your ability to guide the project team to achieve project objectives and balance project constraints.

There is more to project management than just getting the work done. Inherent in the process of pro- ject management are the general management skills that allow the project manager to complete the pro- ject with some level of efficiency and control. In some respects, managing a project is similar to running a business: there are risk and rewards, finance and accounting activities, human resource issues, time management, stress management, and a purpose for the project to exist. General management skills are needed in every project.

Interpersonal Skills

Last but not least you also have to bring the ability into the project to manage personal relationships and deal with personnel issues as they arise. Here were talking about your interpersonal skills as shown in Figure 2.8.

Communication

Project managers spend 90% of their time communicating. Therefore they must be good communicators, promoting clear, unambiguous exchange of information. As a project manager, it is your job to keep a number of people well informed. It is essential that your project staff know what is expected of them: what they have to do, when they have to do it, and what budget and time constraints and quality speci- fications they are working toward. If project staff members do not know what their tasks are, or how to accomplish them, then the entire project will grind to a halt. If you do not know what the project staff is

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(or often is not) doing, then you will be unable to monitor project progress. Finally, if you are uncertain of what the customer expects of you, then the project will not even get off the ground. Project commu- nication can thus be summed up as knowing “who needs what information and when” and making sure they have it.