PROJECT MANAGEMENT
DECEMBER 2008
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Table of Contents
Table of Contents.........................................................................................2
Purpose........................................................................................................3
Scope...........................................................................................................3
Overview......................................................................................................3
Procedure.....................................................................................................4
1. The Proposal................................................................................................................ 4
2. Initiating the Project.................................................................................................... 5
3. Implementing the Project............................................................................................ 6
4. Finalising the Project................................................................................................... 7
5. Roles and Responsibilities........................................................................................... 8
6. Definitions................................................................................................................... 8
Appendix Tools for Project Planning...........................................................9
Tool 1. PERT Analysis for the calculation of time estimates.............................................9
Tool 2 . Risk Management.............................................................................................. 10
Tool 3 . Work Breakdown Structure (WBS).....................................................................13
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Purpose
This procedure outlines the processes and phases that apply to the delivery of a
project.
This procedure outlines processes and tools which may be applied to projects, of
varying size and scope.
Scope
A project is defined involving a series of inter-related activities with defined start
and finish times. This procedure recognises an inherent variation in the scale
and scope of projects by offering flexibility of approach.
While the process steps described here follow accepted practices, the Project
Manager is empowered to add or delete process steps to meet the requirements
of a particular project. This flexibility of approach means that the procedure may
be equally applied to a variety of widely differing project needs. Projects as
diverse as, say, the installation of a new computer system, an advertising
campaign, or the construction of a roundabout are all candidates for the
application of this procedure.
This procedure represents a single generic delivery platform for simpler projects.
It differs markedly to the approach taken with infrastructure type projects, which
by virtue of their complexity, are managed by many procedures covering a wide
range of subjects and issues.
.
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Overview
Project Brief / request from client
Network Management Prepare draft Project Plan
(Project Initiation)
Submit for Client Acceptance
Register / Formalise Project
Project Analyse Requirements/ Examine
Development Options
Common
Develop Costings & Timescales
(Concept) Prepare Project Plan
Manage Implementation / Issue
Project Status Reports
Implementation Confirm Deliverables
Evaluate/Test Completed Project
Close Out Risks
Project
Finalisation Gain Project Sign-Off
Facilitate Handover
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Procedure
1. The Proposal
Project Initiating Request (Brief)
The project begins here. The request defines the initial
Project scale and scope of the project from the client perspective.
Initiating The level of detail will vary from project to project.
Request
Depending on the nature of the project, the client may
require either a concept proposal with budget costings or a
more detailed design with firm costings.
The Project Manager must determine the required
outcomes through a process of negotiation with the client.
Prepare Draft Project Plan or Proposal
Prepare Draft As a result of the negotiations with the client, develop the
Project Plan clients brief into a concept (or a design) that lists the work
(Proposal) to be performed and the anticipated outcomes.
Propose a budget based on the concept. As described
above, the supplied costings may be budgetary or firm
depending on the clients specific requirements for this
stage of the project.
The Project Brief/Plan form (used as either a brief or a plan)
may be used for the submission to the client.
Submit
for
Client Gain Approval to Proceed
Acceptance
Submit the proposal with the Project Brief/Plan for
management approval (sign off).
The Project Brief / Plan Form has provision for a client sign-
off.
Client
Acceptance
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Register/
Formalise
Project
2. Initiating the Project
Register and Formalise Project. Commence
Analyse tracking status
Requirements
and Examine Once approved, the project must be given a Project
Options Number.
Make initial entries in Project Status Record.
Analyse Requirements and Investigate
Options
Develop
Costings and Analyse the concept proposal. Investigate alternatives in
Timescales terms of implementing project. As appropriate, gain
expressions of interest, quotations etc from potential
suppliers/contractors.
Agree on a preferred option for development.
Prepare Project Plan
Prepare a Project Plan for the project detailing:
A detailed description of the project scope and
deliverables.
Prepare
A Work Breakdown Structure defining the tasks
Project
(including development tasks) that comprise each
Plan
project deliverable.
An implementation timeline with designated
milestones.
A schedule of costs against time for the project.
An analysis of risks applying to the project.
How the delivered project will be evaluated and
tested for final acceptance.
Details of the stakeholders, suppliers and the
project implementation team (names, positions,
involvement)..
Identity of the manager responsible for governance:
(Project Brief / Scope Change / Finalisation) of the
project.
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Prepare Costings
Prepare and establish a budget for the project and, if
appropriate, invite quotations/tenders from suitable
suppliers.
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Completed
Project Plan
3. Implementing the Project
Review Project Plan
Confirm that the scope / time / budget is appropriate with
the project sponsor. The Project Plan must contain all the
information required to implement the project.
Call for Tenders / Quotations for External
Resources
Manage
Implementation The methods of securing resources will vary with the
project.
Process
Accept Tender /Quotation and Issue
Contract or Agreement
The process will vary with the project.
Manage the Implementation Process
Irrespective of the size and scope of a specific project, it
must be managed in a professional manner, following the
processes outlined in the Project Plan.
Implementation Monitor the Supplier / Service Providers performance by:
Process
Confirming the supply of (and quality of) all
deliverables.
Confirming that the Supplier is meeting agreed
targets in terms of project cost and timescale.
During the project implementation, if deficiencies are noted
in the project deliverables, be prepared to stop the works
(holdpoint or clock stop). Some deficiencies may warrant
action against the supplier.
Implementation
Complete During the course of a project, it may be necessary to
change the scope of the project, or a deliverable within the
project. It is essential that such changes are agreed to, and
signed off on by the client. Use the Change Request Form
to document and sign off on the change action.
Maintain the ongoing Project Status Record and provide
Project Status Reports on a regular basis to management.
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Evaluation/
Testing
of
Completed
4. Finalising
Project the Project
Evaluate and Test Project for Acceptance
Once the project works have been completed, a program of
evaluating / testing must be carried out (as defined in the
Project Plan).
Providing the test results prove satisfactory, the project can
be accepted. The acceptance procedure will have been
defined in the Project Plan.
Project
Sign-Off Advise Acceptance
Establish Final Project Costs
Facilitate Project Sign-Of
Provide a report to management showing:
Results of Acceptance Evaluation / Auditing /Testing
Final Costs of the Project
Client
Handover That all risk issues have been completely met and
no longer offer a threat to the project
The responsible manager (as defined in the Project Plan) is
required to demonstrate his or her concurrence with
project completion by signing off on the report.
Facilitate Handover of Project to Client
Follow procedure described in Project Plan
Review Project Outcome
Project
Complete Forward Completion Report to Management
The Project Completion Report (template provided) calls for
a review of the project outcomes in terms of:
Objectives Met
Risk Management Issues
Project Costs
Project Time Scale Variations
Stakeholders Expectations
Lessons learnt and recommendations for
improvement
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5. Roles and Responsibilities
Client / Sponsor The person who requests the project, who is responsible for
project sign-offs and is the person to whom the project is
handed over.
Project Manager The person charged with the responsibility for managing the
project. Depending on the scale and scope of the project, the
Project Manager may delegate some responsibilities to
others.
6. Definitions
Project A project is a temporary undertaking to create a unique
product, service or result
Project Brief Initially this represents the clients concept of the proposal.
It is developed further to become an agreement with the
Project Manager on the scope and deliverables of the
project.
Draft Project The Project Managers initial interpretation of the clients
Plan / Proposal brief. Usually incorporates a concept design and budgetary
or preliminary costings
Project Plan The detailed document defining the deliverables, timescales,
costs, risk assessments, personnel and acceptance criteria
relating to the project. Also defines the actions required to
meet the objectives stated in the project brief.
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Appendix Tools for Project Planning
As has been referred to previously in this document, the aim of this procedure is
to provide a generic and flexible management tool. It is also designed to be used
by persons with no, or limited experience in project management.
While the experienced project manager is able to make use of a range of project
tools, those with lesser experience may not be completely familiar with some of
the requirements of the project plan. Some basic tools are provided here to assist
with some aspects of the project plan.
Tool 1. PERT Analysis for the calculation of time
estimates.
This represents a commonly accepted method of calculating time estimates for a
project.
Step 1. For each project milestone, list the factors likely to impact on the
timescales (weather, delivery delays, availability of equipment or suppliers etc)
and derive the following estimates of time:
1. Your most pessimistic time estimate
2. Your most likely time estimate
3. Your most optimistic time estimate
Step 2. Apply this formula to your estimates to calculate the likely duration
Time = Topt + 4Tlik + Tpess
6
where Topt is the optimistic estimate, Tlik is the likely estimate
and Tpess is the pessimistic estimate.
Example: After considering the factors likely to impact on the task you are to
carry out, you determine that a pessimistic view of the time required is 32 days,
an optimistic view is 18 days and your likely estimate is 24 days.
Applying this to the formula gives: 18 + (4x 24) + 32 = 146 = 24.3
days.
6 6
For the project plan, a time estimate of 25 days should be used.
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Tool 2 . Risk Management
This represents one approach to risk assessment and management. More
experienced Project Managers may prefer to use tools they are more familiar
with.
Step 1. Identify Potential Risk Events
The following list is designed to provide a series of prompts for the identification
of typical risks. It is by no means a comprehensive list and does not replace the
need for the project manager to identify risk categories applicable to the specific
project..
Potential Risk Categories: Example Risks
Source data out of date or unreliable
Benefit Risks Growth forecasts not met
Benefits overstated
Project objectives not clearly defined
(outcomes not achievable)
Performance or acceptance criteria not
clearly scoped (unable to meet client
expectations)
Communication/Relationship
breakdowns
Tendering/Contractual issues
Commercial Risks
Material/Labour Market Risks
(shortages or delays in supply of
materials/skilled labour.)
Cost Escalations (Oil prices, insurance
premiums)
Contractor Delays/Failure
Program delivery (timeframes,
productivity, environmental delays)
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Legislative/regulation issues
Industrial Action
Temporary access issues (crossings,
emergency access)
Community Risks
Community protest issues (noise, dust,
inconvenience, impact on business
Potential Risk Categories (2) : Example Risks (2)
Geophysical issues
Environmental issues (ecology,
aesthetics, pollution)
Site Risks OH&S issues
Heritage Issues
Design/ Engineering Risks Errors in calculation/ design
assumptions
Changes in project priority
Political Risks Pressure group activity
Policy changes
Prolonged rainfall/flooding
Natural Event Risks Prolonged high temperatures
(OH&S, bushfire risk)
Other Risks As defined by Project Manager
Step 2 Analyse the Likelihood and Consequences of
Risk Events
Table 1. Likelihood of the Event occurring
Level Description
Low [L] Unlikely or rare
Medium [M] Likely to occur at some time
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High [H] Will probably occur often or most of the time
Table 2. Consequences of the Event Occurring
Level Description
Low [L] Minor Impact and minor consequences
Medium [M] Moderate impact with moderate consequences
High [H] Major impact and major consequences
Step 3. Apply the Assessed Likelihood and
Consequences to the Risk Matrix
Derive a risk level by intersecting Likelihood and Consequences
H 3 4 5
Conseque
M 2 3 4
nces
L 1 2 3
L M H
Likelihoo
d
Step 4. Manage the Risks
For Risk Levels 1-2;
Remain aware of the possibility.
Manage it by utilising routine procedures.
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If the risk should escalate, re-assess it.
For Risk Level 3-5;
Develop an action plan to preferably avoid, or at least minimise the
consequences.
If risk level is 5, determine actions to reduce it to a lower level
Include the action plan in the Project Plan.
Monitor the Risk Action Plan on a regular basis to update assessments
and ensure that appropriate actions are being undertaken to mitigate or
close out the risk.
Tool 3 . Work Breakdown Structure (WBS)
The Project Plan/Brief includes a section for inclusion of a work breakdown
structure. Work Breakdown Structures represent the ideal approach for those with
limited experience on, or access to, Gannt Charts.
A Work Breakdown Structure is essentially a hierarchical listing of the tasks within
the project deliverable. Following is a simple example of a WBS showing the
components of a single deliverable.
Deliverable Task Sub-Task Duration
(days)
1. Foundations 1.1 Concrete Slab
1.1.1 Level Site 1
1.1.2 Excavate 2
Trench
1.1.3 Lay Formwork 2
1.1.4 Pour Concrete 1
1.1.5 Cure 4
Concrete
Total Time for 1.1 Concrete Slab 10
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1.2 Install
Fasteners
1.2.1
etc.
This table is simply extended to cover all deliverables and tasks that make up the
project.
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