CHAPTER 4

PROJECT MANAGEMENT TECHNIQUES

4.1 INTRODUCTION
Project management techniques encompass a diverse set of tools and
methodologies used to plan, execute, monitor, and control projects
effectively within defined constraints. These techniques are essential for
achieving project objectives, ensuring quality deliverables, managing
resources efficiently, and mitigating risks throughout the project lifecycle.
Applying a suitable project management technique is critically important for
the success of a project due to several key reasons. First and foremost,
project management techniques provide structure and organization to the
project lifecycle, enabling effective planning, execution, and control of
project activities. This structured approach helps project managers allocate
resources efficiently, optimize scheduling, and manage project risks and
uncertainties.
Employing the right project management technique ensures alignment with
project objectives, requirements, and constraints. By selecting techniques
that are tailored to the project's scope, complexity, and timeline, project
managers can enhance project clarity, minimize delays, and improve overall
project performance.
Applying suitable project management techniques promotes effective
communication and collaboration among project stakeholders. Clear
communication and transparency contribute to stakeholder engagement,
trust, and support throughout the project lifecycle.
Furthermore, utilizing appropriate project management techniques enhances
risk management capabilities by enabling proactive identification, analysis,
and mitigation of project risks.
4.2 CHOOSING TECHNIQUES
The selection of project management techniques should be based on several
considerations to ensure their effectiveness and suitability for the specific
project context. By carefully evaluating project managers can select
appropriate project management techniques that best suit the project's
needs, maximize efficiency, mitigate risks, and ultimately contribute to
successful project delivery and stakeholder satisfaction. Each project is
unique, and the selection of techniques should be tailored to specific project
characteristics and requirements to achieve optimal outcomes. Some
important factors to consider when choosing project management
techniques is explained briefly here,
1) Project Characteristics: Understand the nature, size, complexity, and
scope of the project. Different techniques may be more suitable for small,
straightforward projects versus large, complex endeavors.
2) Project Objectives and Requirements: Align techniques with project
objectives, deliverables, and requirements.
3) Resource Availability: Consider the availability and capability of
resources (e.g., skilled personnel, software tools) required to implement and
use specific techniques effectively.
4) Project Timeline and Constraints: Evaluate project timelines,
deadlines, and constraints (e.g., budget, schedule, scope). Techniques such
as Agile methodologies may be preferred for projects with evolving
requirements and tight timelines.
5) Organizational Policies and Culture: Consider organizational policies,
standards, and culture. Certain techniques may align better with
organizational practices and project management methodologies used within
the organization.
6) Risk Profile: Evaluate the project's risk profile and select techniques that
support effective risk identification, analysis, and mitigation. Risk
management techniques should align with project complexity and potential
impact.
7) Budget and Cost Considerations: Factor in budget constraints and
cost implications associated with implementing specific techniques. Choose
techniques that offer cost-effective solutions while meeting project
requirements.
8) Flexibility and Adaptability: Consider the flexibility and adaptability of
techniques to accommodate changes and uncertainties throughout the
project lifecycle. Agile methodologies emphasize adaptability to changing
requirements.
4.3 FUNDAMENTAL PROJECT MANAGEMENT TECHNIQUES
Project management techniques are essential tools used by business
professionals to plan, execute, and control projects effectively within
organizations. By mastering these techniques, business management
students gain valuable skills that are applicable across various industries and
sectors. Understanding project management fundamentals equips students
with the ability to break down complex projects into manageable tasks,
allocate resources efficiently, manage project schedules, mitigate risks, and
deliver high-quality outcomes. In this study material, we will explore five key
project management techniques that every business management student
should be familiar with. These techniques include Work Breakdown
Structure (WBS), Gantt Charts, Critical Path Method (CPM), Risk
Management, Stakeholder Analysis and Engagement. Each technique
plays a crucial role in project planning, execution, and control, contributing
to successful project delivery and organizational success. Let's delve into
each technique to understand their importance and practical applications in
project management.
4.3.1 Work Breakdown Structure (WBS)
The Work Breakdown Structure (WBS) is a fundamental project management
technique used to break down a project into smaller, manageable
components or tasks. Essentially, the WBS organizes the project scope into a
hierarchical structure, starting with the main project deliverable at the top
and breaking it down into increasingly detailed levels of work. For example,
imagine a construction project to build a new house. The top level of the
WBS would be "Build New House," and beneath this, it would be further
decomposed into major components like "Foundation," "Frame
Construction," "Roofing," "Interior Finishing," and "Exterior Landscaping."
Each of these major components can then be broken down into smaller,
more specific tasks. For instance, under "Foundation," tasks could include
"Excavate Site," "Pour Concrete Footings," and "Install Foundation Walls."
The WBS provides a structured approach to defining project scope, enabling
project managers and teams to clearly understand project tasks,
responsibilities, and deliverables. It serves as a foundation for developing
project schedules, allocating resources, and tracking progress throughout
the project lifecycle. The WBS is a powerful tool that enhances project clarity,
organization, and control, ensuring that all project requirements are
addressed systematically and efficiently.
The Project Management Institute (PMI) Project Management Book of
Knowledge (PMBOK) defines the Work Breakdown Structure as a “deliverable
oriented hierarchical decomposition of the work to be executed by the
project team.” There are two types of WBS: 1) Deliverable-Based and
2) Phase-Based. The most common and preferred approach is the
Deliverable-Based approach. The main difference between the two
approaches are the Elements identified in the first Level of the WBS.
Deliverable-Based Work Breakdown Structure
A Deliverable-Based Work Breakdown Structure clearly demonstrates the
relationship between the project deliverables (i.e., products, services or
results) and the scope (i.e. work to be executed). The Figure is an example of
a Deliverable-Based WBS for building a house. The Level 1 Elements are
summary deliverable descriptions. The Level 2 Elements in each Leg of the
WBS are all the unique deliverables required to create the respective Level 1
deliverable.
Phase-Based Work Breakdown Structure
A Phase-Based WBS, the Level 1 has five Elements. Each of these Elements
are typical phases of a project. The Level 2 Elements are the unique
deliverables in each phase. Regardless of the type of WBS, the lower Level
Elements are all deliverables. Notice that Elements in different Legs have the
same name. A Phase-Based WBS requires work associated with multiple
elements be divided into the work unique to each Level 1 Element.

A good WBS is simply one that makes the project more manageable. Every
project is different; every project manager is different and every WBS is
different. So, the right WBS is the one that best answers the question, “What
structure makes the project more manageable?”
4.3.2 Gantt Charts
Even a century after its introduction, the Gantt chart continues to be an
important tool in project and program management. Described in 1999 as
“one of the most widely used management tools for project scheduling and
control.” The anatomy is straightforward: Tasks appear on the vertical axis,
and time intervals, or activity duration, appear along the horizontal axis. A
Gantt chart excels at illustrating a “big picture” view for projects of any size.
It also enables project stakeholders to identify milestones and monitor
progress by showing which tasks need to be completed by a specific date. In
addition, you can easily identify any functions that fall behind schedule and
take the appropriate action.
While a Gantt chart provides a simple visual into the progress of a project,
preparing and managing one often grows increasingly complex due to the
sheer number of tasks and resources required for larger projects. Other
disadvantages include:
 The need for constant updating
 Bar size doesn’t indicate the amount of work
 Difficulty in seeing the entire chart on a single page
Product managers can use Gantt charts to provide a strategic, high-level
view of a project. They can use them to identify tasks and resources needed
for a project and share due dates for task completion.
These charts are commonly used by teams in construction, consulting,
marketing, manufacturing, HR, software development, and event planning.

4.3.3 Critical Path Method (CPM)

First described by Eliyahu Goldratt in his 1984 book, ‘The Goal”, this theory
states that your ability to complete any activity hinges on a few critical
resources or constraints. According to this method, the success of any
project depends on tasks along a critical path being completed on time.
Every project, regardless of its size or budget, has some core tasks that are
crucial to its completion. A task is defined as critical if delaying it will slow
down the completion of the entire project. The critical path method (CPM) is
a step-by-step project management technique for process planning that
defines critical and non-critical tasks with the goal of preventing project
schedule problems and process bottlenecks. CPM is ideally suited to projects
consisting of numerous activities that interact in a complex manner. In
applying CPM, the following five steps are often followed:
 Define the required tasks and arrange them in an ordered, sequenced
list.
 Create a flowchart or other critical path diagram showing each task in
relation to the others.
 Identify the critical and non-critical relationships or paths among the
tasks.
 Determine the expected end date or execution or completion time for
each task.
 Locate or devise alternatives or backups for the most critical paths.
The critical path method is the piece of the project management plan that
identifies the steps that must be completed -- the critical path. CPM also
provides insight into ancillary activities that support the outputs and
deliverables needed for other critical path activities and parallel critical paths
that are linked to the primary critical path. These are all important to
keeping a project on schedule and budget and reaching its goals.
Take something as simple as making an omelet.
If you had to create a short recipe for making an omelet, it would look
something like this:
1. Beat 2 eggs
2. Heat a pan, add butter/oil when hot
3. Pour in the beaten eggs and cook for 5 minutes
There are several other tasks you need to perform to make a good omelet.
You have to season the eggs with salt and pepper. Maybe add some
vegetables and some cheese. Perhaps you could flip it on the other side so
the eggs are fully cooked through. However, these activities are in addition
to the three core steps in the recipe. Even if you don’t perform them, you’ll
still have an omelet. Not a very good one, but an omelet nonetheless.
On the other hand, if you forget to beat the eggs, or heat the pan, or cook
the eggs, you won’t have anything but a cold pan and two eggs. This is to
say, the three steps in the recipe describe the critical tasks necessary to
make the omelet-making project a success.
And the sequence of these steps describes the critical path a new cook must
take if he wants to make an omelet.
The Critical Path Method is defined in the Project Management Body of
Knowledge (PMBOK) as,
“The Critical Path Method is the sequence of scheduled activities that
determines the duration of the project.”
These scheduled activities must be performed if the project is to be
considered a success. Moreover, they must be completed in a specific order.
If you’re building a house, you can’t construct the walls and then dig the
foundation; you have to do it in a sequence. The important bit to understand
is that the CPM describes the longest sequence of tasks in the project. That
is, in any project, you’ll have multiple task sequences. The CPM would
describe the sequence that takes the most time.
For example, if you’re building a house, you would have several task
sequences as follows:

Each task takes a different amount of time and resources. It takes more time
to build walls and lay the roof than to install faucets and fixtures. If you had
to figure out the project’s ‘Critical Path’, you would look at the sequence that
takes the most amount of time, like this:
The total time taken to complete the sequence along this critical path would
give you an idea of the project’s minimum duration. You might undertake
several task sequences simultaneously, but if there are any delays in the
critical path sequence, your project will suffer delays as well.
A critical Path Diagram
The critical path is highlighted. It includes the activities that must be
completed for the project to reach its conclusion and is usually the longest
path in the diagram. The diagram also depicts other elements of project
planning, the sequence of tasks and the ancillary activities that are initiated
from other parts of the plan and the activities they impact. The arrows
identify the sequence of events.
Each activity box could be filled in with specific details related to each
activity, such as a project timeline that includes the earliest start time and
earliest finish time for each task, required resources and options to launch if
the activity is not completed on time. Depending on the complexity of the
project, more information may be embedded in each activity box.
4.3.4 Risk Management
Risk management in project management involves identifying, analyzing,
and responding to potential risks that might impact a project's success. The
goal is to minimize the negative effects of risks while maximizing the
opportunities. Effective risk management helps project managers anticipate
potential problems and take proactive measures to address them, thereby
enhancing the project's chances of success. It is an ongoing process that
requires collaboration among project team members and stakeholders to
ensure that risks are adequately managed throughout the project lifecycle. A
proper risk management process will have the following steps and elements.
a) Risk Identification
The first step is to identify potential risks that could affect the project. This
involves brainstorming with project stakeholders, reviewing project
documentation, and using historical data from similar projects. Risks can be
categorized into different types such as technical, external, organizational, or
project management-related risks.
b) Risk Analysis
Once risks are identified, they are analyzed to determine their probability of
occurring and their potential impact on the project's objectives. Risk analysis
helps prioritize risks based on their likelihood and severity. Risks with high
probability and high impact are typically given more attention.
c) Risk Response Planning
For each identified risk, a response plan is developed to either avoid,
mitigate, transfer, or accept the risk.
 Avoidance: Changing the project plan to eliminate the risk altogether.
 Mitigation: Taking actions to reduce the probability or impact of the
risk.
 Transfer: Shifting the impact of the risk to another party, such as
through insurance or outsourcing.
 Acceptance: Accepting the consequences if the risk occurs, especially
if the cost of mitigation outweighs the risk impact.
d) Risk Monitoring and Control
Throughout the project lifecycle, risks are continuously monitored to track
changes in their probability and impact. Contingency plans are enacted if a
risk materializes or if new risks emerge during project execution. Risk control
involves implementing risk responses, reassessing existing risks, and
evaluating the effectiveness of risk management strategies.
e) Documentation and Reporting
All risk management activities and decisions are documented in a risk
register or risk log. Regular reports are prepared for project stakeholders to
keep them informed about the status of risks and the effectiveness of risk
responses.
4.3.5 Stakeholder Analysis and Engagement
Stakeholder Analysis and Engagement is a fundamental project management
technique aimed at identifying, assessing, and engaging stakeholders
throughout the project lifecycle to ensure their needs and expectations are
understood and managed effectively. This technique helps project managers
and teams build strong relationships with stakeholders, which is critical for
project success.
a) Stakeholder Identification
The first step is to identify all stakeholders who have an interest in or will be
affected by the project. This includes individuals, groups, or organizations
both internal (e.g., project team members, management) and external (e.g.,
customers, suppliers, regulators). Stakeholders can have varying levels of
influence and interest in the project, which determines their importance.
b) Stakeholder Analysis
Once stakeholders are identified, they are analyzed based on their
influence/power and their level of interest/concern in the project. This
analysis helps categorize stakeholders into different groups:
High Influence, High Interest: Key stakeholders who should be actively
engaged and managed closely.
High Influence, Low Interest: Stakeholders who should be kept satisfied
and informed but may not need extensive involvement.
Low Influence, High Interest: Stakeholders who need to be kept informed
but may not require direct engagement.
Low Influence, Low Interest: Stakeholders who require minimal
communication and involvement.
c) Stakeholder Engagement Planning
Based on the analysis, a stakeholder engagement plan is developed outlining
how each stakeholder will be engaged throughout the project. This plan
includes determining the frequency and method of communication, key
messages to convey, and strategies for addressing stakeholder concerns.
d) Stakeholder Engagement
Engagement involves actively involving stakeholders in project activities,
decision-making processes, and communications. Techniques for
engagement may include regular meetings, workshops, surveys, interviews,
and progress reports tailored to the needs and preferences of different
stakeholders. Effective engagement fosters trust, builds support, and
encourages collaboration among stakeholders.
e) Continuous Monitoring and Adaptation
Throughout the project, stakeholders are continuously monitored to assess
changes in their expectations, concerns, or influence. The stakeholder
engagement plan is adapted as needed to address evolving stakeholder
dynamics and ensure their ongoing support.
f) Communication and Relationship Management
Clear and transparent communication is key to successful stakeholder
engagement. Project managers must ensure stakeholders are kept informed
about project progress, changes, risks, and outcomes. Building positive
relationships with stakeholders by addressing their needs and concerns
fosters a supportive project environment. By implementing stakeholder
analysis and engagement effectively, project managers can enhance
stakeholder satisfaction, minimize resistance to change, and ultimately
increase the likelihood of project success by aligning project goals with
stakeholder expectations and interests.