1. 1. Introduction
1.1. What is a project?
1.1.1. A complex, non-routine, set of activities, undertaken by an individual or group with the purpose of producing a defined and unique, non-repetitious result.
1.1.2. A project has a defined scope, with a finite life span, an agreed cost and quality.
1.1.3. The result or product can be both tangible or intangible.
1.1.4. Usually involves several departments or professionals and always involves a level of risk.
1.2. What is project management?
1.3. What is the role of a project manager?
1.4. What is the typical project life-cycle?
2. 2. Organisational Strategy, Structure and Culture
2.1. Strategic Management Process
2.1.1. Review and Define the Organisations Mission
2.1.1.1. Create mission statement
2.1.1.2. Communicate mission statement throughout organisation
2.1.1.3. Must be company specific
2.1.2. Set Long-Range goals and objectives
2.1.2.1. Set at all levels of organisation
2.1.2.2. Outline direction of organisation
2.1.2.3. Objective must be SMART
2.1.2.3.1. Specific
2.1.2.3.2. Measurable
2.1.2.3.3. Assignable
2.1.2.3.4. Realistic
2.1.2.3.5. Time Related
2.1.3. Analyse and formulate strategies to reach objectives
2.1.3.1. Answers questions on 'what' needs to be done
2.1.3.2. Evaluate alternatives
2.1.3.3. Customers perspective is important
2.1.3.4. SWOT Analysis
2.1.3.4.1. Strengths
2.1.3.4.2. Weaknesses
2.1.3.4.3. Opportunities
2.1.3.4.4. Threats
2.1.4. Implement these strategies through specific projects
2.1.4.1. Answers question of 'how' it will be done
2.1.4.2. Includes the allocation of resources
2.1.4.3. Requires organisational structure that complements strategy
2.1.4.4. Include planning, control and measurement tools
2.2. Organisational Structure
2.2.1. Functional
2.2.1.1. Untitled
2.2.1.2. Advantages
2.2.1.2.1. No change
2.2.1.2.2. Flexibility
2.2.1.2.3. In-depth expertise
2.2.1.2.4. Easy post project transition
2.2.1.3. Disadvantages
2.2.1.3.1. Lack of focus
2.2.1.3.2. Poor integration
2.2.1.3.3. Slow
2.2.1.3.4. Lack of ownership
2.2.2. Coordinated Matrix
2.2.3. Matrix
2.2.3.1. Untitled
2.2.3.2. Advantages
2.2.3.2.1. Efficient
2.2.3.2.2. Flexible
2.2.3.2.3. Strong project focus
2.2.3.2.4. Relativly easy post project transition
2.2.3.3. Disadvantages
2.2.3.3.1. Dysfunctional conflict
2.2.3.3.2. Infighting
2.2.3.3.3. Stressful
2.2.3.3.4. Slow
2.2.4. Seconded Matrix
2.2.5. Pure Project - Integrated Project Teams
2.2.5.1. Untitled
2.2.5.2. Advantages
2.2.5.2.1. Simple
2.2.5.2.2. Fast
2.2.5.2.3. Cohesive
2.2.5.2.4. Cross functional integration
2.2.5.3. Disadvanteges
2.2.5.3.1. Expensive
2.2.5.3.2. Internal strife
2.2.5.3.3. Limited technological expertise
2.2.5.3.4. Difficult post-project transition
2.3. Interface Management
2.3.1. Critical To Effective Project Management
2.3.2. Interface result whenever work is divided and allocate to teams or individuals
2.3.3. Types of Interface
2.3.3.1. Personal
2.3.3.2. Organisational
2.3.3.3. System
2.3.4. Interfaces and Communications
2.3.4.1. Main issue is ensuring effective communication
2.3.4.2. Be aware of both formal and informal channels
2.3.4.3. External interfaces usually managed formally in the form of reporting
2.3.5. Interface Management Tools
2.3.5.1. Specifically Designed Forms
2.3.5.1.1. Reports
2.3.5.1.2. Faxes
2.3.5.1.3. Change Control
2.3.5.1.4. Equipment Lists
2.3.5.1.5. Meeting Minutes
2.3.5.2. Information Management Systems
2.3.5.3. Responsibility Matrices
2.4. The Project Manager
2.4.1. PM The Role
2.4.1.1. Plan the project
2.4.1.2. Organise to carry out the plan
2.4.1.3. Implement the plan
2.4.1.4. Control to follow the plan
2.4.1.5. Lead the project team
2.4.1.5.1. Motivate staff
2.4.1.5.2. Keep perspective
2.4.1.5.3. Encourage group decision making
2.4.1.5.4. Maintain group behaviour
2.4.1.5.5. Aim for win-win outcomes
2.4.2. PM The Person
2.4.2.1. Provides integration
2.4.2.2. Varying level of authority depending on org structure
2.4.2.3. Always has responsibility for project
2.4.2.4. Does not need to be technical hot-shot but requires understanding for decision making
2.4.3. PM The Traits
2.4.3.1. Intelligence
2.4.3.2. Energy and Drive
2.4.3.3. Self-assuredness
2.4.3.4. Perspective
2.4.3.5. Communications ability
2.4.3.6. Ability to persuade and negotiate
2.4.3.7. Management skill and specialist knowledge (HR, Legal, Resource Management)
2.4.4. PM The Styles
2.4.4.1. Democratic
2.4.4.2. Autocratic
2.4.4.3. Bureaucratic
2.4.4.4. Laissez Faire
2.4.4.5. See Managing People Map, Leadership Section
3. 3. Defining the Project
3.1. Define the Project Scope
3.1.1. Purpose of Scope Statement
3.1.1.1. To clarify the deliverables
3.1.1.2. To focus the project on these goals
3.1.1.3. Used by the project owner and planner a tool for measuring progress and success
3.1.2. Scope Statement
3.1.2.1. Project Objective
3.1.2.2. Deliverables
3.1.2.3. Milestones
3.1.2.3.1. Checkpoints in the project
3.1.2.3.2. Describes what the project should achieve, not how
3.1.2.3.3. Activities are carried to achieve milestones
3.1.2.3.4. Milestone plan
3.1.2.4. Technical Requirements
3.1.2.5. Limits and Exclusions
3.1.2.6. Reviews with Customer
3.1.3. Terms and Definitions
3.1.3.1. Scope Statement
3.1.3.2. Project Charter
3.1.3.3. Project Creep
3.2. Establish Project Priorities
3.2.1. Causes Project Trade-offs
3.2.1.1. Untitled
3.2.2. Managing Priority Trade-offs
3.2.2.1. Constrain
3.2.2.1.1. The parameter is a fixed requirement
3.2.2.1.2. Will affect performance
3.2.2.2. Enhance
3.2.2.2.1. Optimising a parameter over others
3.2.2.2.2. Will affect time
3.2.2.3. Accept
3.2.2.3.1. Reducing (or not meeting) a parameter requirement
3.2.2.3.2. Will affect cost
3.3. Create Work Breakdown Structure (WBS)
3.3.1. Hierarchal
3.3.1.1. Hierarchal outline (map) that identifies the work elements of the project
3.3.1.2. Defines the relationships of the final deliverables to the sub-deliverable and their work packages
3.3.1.3. Best suited for design and build projects with tangible outcomes
3.3.2. Process of Defining
3.3.2.1. Identify products
3.3.2.2. Identify work needed for products
3.3.2.3. Identify work needed to integrate products
3.3.2.4. Identify any management or testing work
3.3.2.5. Construct Hierarchy
3.3.3. Work Package
3.3.3.1. Lowest Level of WBS
3.3.3.2. Provides dictionary of work involved
3.3.3.3. Used to measure Progress
3.3.3.4. A Good Work Package has:
3.3.3.4.1. WBS Element name and number
3.3.3.4.2. Work definition
3.3.3.4.3. Inputs / predecessors
3.3.3.4.4. Responsible groups
3.3.3.4.5. Explicit spec of outputs
3.3.3.4.6. Budgets, schedules and cost estimate
3.3.3.4.7. Labour and Resource Requirements
3.3.4. Example
3.3.4.1. Untitled
3.4. Integrating WBS with the Organization
3.4.1. Organisational Breakdown Structure (OBS)
3.4.1.1. Provides framework to summarise organization work unit performance
3.4.1.2. Identifies organizational units responsible for work packages
3.4.1.3. Ties organizational units to cost control accounts
3.5. Coding the WBS for the information system
3.5.1. Untitled
4. 4. Managing Project Time and Costs
4.1. Introduction
4.1.1. There is inherent uncertainty in all project costs
4.1.2. Estimating the cost of a project is required for tender application
4.1.3. Estimating costs money, the more accurate the estimation the more expensive it will be
4.2. Items to Consider when Making Estimates
4.2.1. Elements for cost estimation
4.2.1.1. Labour
4.2.1.2. Subcontractors & Consultants
4.2.1.3. Materials
4.2.1.4. Travel
4.2.1.5. Equipment
4.2.1.6. Facilities Rental
4.2.1.7. Other items specific to type of project
4.2.2. Factors that influence quality of estimation
4.2.2.1. Planning Horizon
4.2.2.2. Project duration
4.2.2.3. People
4.2.2.4. Project structure & organisation
4.2.2.5. Padding
4.2.2.6. Organisational culture
4.3. Methods
4.3.1. Material Take-Offs (MTO)
4.3.1.1. Involves high detail
4.3.1.2. Obtaining quotes for specific work
4.3.2. Factoring
4.3.2.1. Based on historical data and existing projects
4.3.2.2. Less detail and accuracy than MTO
4.3.2.3. Each industry has documented factors
4.3.2.4. List of factors
4.3.2.4.1. Time Factor
4.3.2.4.2. Scale Factor
4.3.2.4.3. Complexity Factor
4.3.2.4.4. Location Factor
4.3.2.4.5. Exchange Rates
4.3.2.4.6. Contingencies
4.4. Estimate Types
4.4.1. Screening Estimate
4.4.1.1. Purpose
4.4.1.1.1. Project initiation, earliest economic appraisal, used for ranking of project and selecting which projects should be done.
4.4.1.2. Accuracy
4.4.1.2.1. Around 40%
4.4.1.3. Estimate Method
4.4.1.3.1. Factoring
4.4.2. Feasibility Study
4.4.2.1. Purpose
4.4.2.1.1. More detailed techno-economic analysis of preferred alternative project schemes
4.4.2.2. Accuracy
4.4.2.2.1. Around 25%
4.4.2.3. Estimate Method
4.4.2.3.1. Factoring
4.4.3. Budget Estimate
4.4.3.1. Purpose
4.4.3.1.1. Preparation of project development plan; approval of budget for further front-end engineering
4.4.3.2. Accuracy
4.4.3.2.1. Around 15%
4.4.3.3. Estimate Method
4.4.3.3.1. Factoring and some MTO
4.4.4. Control Estimate
4.4.4.1. Purpose
4.4.4.1.1. For use in project implementation plan, checking bids, cost control and reporting, performance appraisal, trend analysis, forecasting and budget revisions
4.4.4.2. Accuracy
4.4.4.2.1. Between 8% and 10%
4.4.4.3. Estimate Method
4.4.4.3.1. Full MTO
4.5. Estimate Problems
4.5.1. Ommision of scope
4.5.2. Misinterpretation of scope
4.5.3. Poorly defined or over optimistic schedule
4.5.4. Over optimistic estimating
4.5.5. Risk and uncertainty not adequately condidered
4.5.6. Escalation not considered
5. 5. Developing a Project Plan
5.1. Introduction
5.1.1. Project Networks
5.1.1.1. Used for planning, scheduling and monitoring project progress
5.1.1.2. Developed from the WBS
5.1.1.3. Shows the logical sequence, and interdependencies of the tasks
5.1.1.4. Gives the task durations, longest path is known as the 'critical path'
5.1.1.5. Gives a good overview of the project that the PM uses for decisions in cost, time, quality
5.2. Gantt Charts
5.2.1. Limitations
5.2.1.1. Do not show relationships and dependencies well
5.2.1.2. Do not indicate slack well
5.2.1.3. Do not show resource requirements well
5.3. Network Diagrams
5.3.1. Limitations
5.3.1.1. Show relationships and dependencies well
5.3.1.2. Show slack well
5.3.1.3. Provide Analysis information
5.3.1.4. Do not show time graphically
5.3.1.5. Do not show resource requirements
5.3.1.6. Can be very large and complex
5.4. Critical Path
5.4.1. One of the most useful tools
5.4.2. Any event with zero float is critical
5.4.3. Any
5.5. Summary
5.5.1. Project Network is very useful tool
5.5.2. Easily understood by others
5.5.3. Can provide estimate of project duration
5.5.4. It provides the basis for budgeting and cash flow
5.5.5. It identifies the critical path and critical activities
6. 6. Managing Risk
6.1. Introduction
6.1.1. Due to the unique nature of a project, there is an inherent level of risk.
6.1.2. In project environment risk is an uncertain event
6.1.3. No amount of planning can remove risk entirely, but only manage it
6.1.4. Definitions
6.1.4.1. Risk Management: The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects.
6.1.4.2. Risk: The chance of something happening that will have an impact on the objectives. Measured in terms of consequence and likelihood
6.1.5. Untitled
6.2. Risk Management Plan
6.3. The Risk Management Process
6.3.1. Risk Identification
6.3.1.1. Analyse the project and identify the possible risks
6.3.1.2. Create a list as comprehensive as possible, be creative and imaginative. These are filtered at the next stage
6.3.1.3. A useful tool is the WBS, as a guide for the cause of a risk to the project
6.3.1.4. Some professionals may be needed depending on the technical nature of the project, or particular area of expertise
6.3.2. Risk Assessment
6.3.2.1. The list created in the previous stage is assessed by the project manager. A useful methods are Scenario Analysis and Risk Response Matrix
6.3.2.2. Scenario Analysis
6.3.2.2.1. Severity and outcome
6.3.2.2.2. Likelyhood
6.3.2.2.3. When in the project the event may occur
6.3.2.2.4. The effect on other aspects of the project
6.3.2.3. Risk Response Matrix
6.3.2.3.1. Risks are listed in a table
6.3.2.3.2. Likelihood and Consequence are graded 1 - 5
6.3.2.3.3. Risk Exposure is calculated by multiplying these two measures
6.3.2.3.4. Detection Difficulty
6.3.2.4. Ratio/Range Analysis
6.3.2.5. Probability Analysis
6.3.2.6. Scenario Analysis
6.3.3. Risk Response Development
6.3.3.1. Develop strategy to minimise damages
6.3.3.2. Mitigating
6.3.3.3. Avoiding
6.3.3.3.1. Impossible to avoid all risk
6.3.3.3.2. Good for small problems, early in project
6.3.3.4. Transferring
6.3.3.4.1. Very common
6.3.3.4.2. Will cost more
6.3.3.4.3. Fixed price contracts
6.3.3.4.4. Suitable selection of third party is required
6.3.3.4.5. Communicate risk
6.3.3.5. Sharing
6.3.3.6. Retaining
6.3.3.6.1. Large risks with low likelihood
6.3.3.6.2. Contingency plan is vital
6.3.3.6.3. Risk should be planned in the budget so it can be absorbed if it does occur
6.3.4. Risk Response Control
6.3.4.1. Implement risk strategy
6.3.4.2. Monitor and adjust for new risks
6.3.4.3. Risk reporting should be part of all progress reports.
6.3.4.4. Document responsibility, of risk, 'owner' and response
6.3.5. Risk Process Diagram
6.3.5.1. Untitled
6.4. Contingency Planning
6.4.1. Alternative plan to be used if a risk become a reality, the best alternative plan
6.4.2. Should answer questions of what, where, when, and how much action should be taken
6.4.3. The conditions under which the contingency plan must be clearly documented. As well as the source of funding
7. 7. Scheduling Resources
7.1. Introduction
7.2. Project Constraints
7.2.1. Technical or Logic Constraints
7.2.1.1. Common
7.2.1.2. Unavoidable
7.2.2. Resource Constraints
7.2.2.1. Parallel tasks
7.2.2.2. Add more resources
7.2.2.3. Take priority over technical constraints but do not violate them
7.2.3. Physical Constraints
7.2.3.1. Rare
7.3. Types of Resource
7.3.1. People
7.3.2. Materials
7.3.3. Equipment
7.3.4. Working Capital
7.4. Rules for Resource Levelling
7.4.1. 1. Minimum Slack
7.4.2. 2. Minimum Duration
7.4.3. 3. Task ID
7.5. Summary
7.5.1. Resource availability is huge problem for PMs
7.5.2. Resource bottlenecks must be identified as early as possible.
7.5.3. Resource levelling ALWAYS reduced total slack, increasing risk!!
8. 8. Reducing Project Duration
8.1. Introduction
8.1.1. Crashing projects increases risk
8.1.2. The amount a project can be crashed depends on the sensitivity
8.1.3. A sensitive network has many critical paths
8.2. Reasons for reducing project duration
8.2.1. Changed duration times
8.2.2. Time to market considerations
8.2.3. Incentive contract
8.2.4. Key resource needs
8.2.5. High overhead costs
8.2.6. Unforeseen delays
8.3. Indirect Costs
8.3.1. Overheads such as administration, consultants and loan interest
8.3.2. Can not be associated with any work package or activity
8.3.3. Vary directly with time
8.3.4. Are a large part of total project cost
8.3.5. Changing duration can have a big effect
8.4. Direct Costs
8.4.1. Costs related to work, materials, equipment
8.4.2. Assigned to specific work packages
8.4.3. Vary indirectly with time
8.5. Relationship Between Costs Graph
8.5.1. Untitled
8.6. Options for Accelerating Project Completion
8.6.1. Adding resources
8.6.1.1. Most common method for shortening project time
8.6.1.2. Doubling resources will not halve duration
8.6.1.3. Depends on the complexity of the task
8.6.1.4. Training may be needed
8.6.2. Outsourcing project work
8.6.2.1. Another common method
8.6.2.2. Contractors may be more experienced
8.6.2.3. Also frees the resource for something else
8.6.2.4. Costs more
8.6.3. Scheduling overtime
8.6.3.1. Easiest way to add more resources
8.6.3.2. Avoids additional costs of coordination
8.6.3.3. Intangible costs to staff lifestyle
8.6.3.4. Motivational problems
8.6.4. Establishing a core project team
8.6.4.1. Assigning specialists full-time deduces the
8.6.4.2. They will devote all their attention
8.6.5. Do it twice - fast and correctly
8.6.5.1. Short term solutions to critical paths
8.6.5.2. Can re-visit later when pressure is on
8.6.6. Fast-tracking
8.6.6.1. Re-arrange the project network so that critical activities are done in parallel
8.6.6.2. Change relationships to start-start
8.6.7. Critical-chain
8.6.7.1. Method of management to reduce project duration
8.6.7.2. Critical chain is the longest sting of dependencies that run through the project.
8.6.7.3. Depends on resources and technical constraints
8.6.7.4. See stand alone topic
8.6.8. Brainstorming time savers
8.6.8.1. Use entire team for ideas
8.6.8.2. Tap different experience and skills
8.6.9. Reduce project scope
8.6.9.1. Another widely used method
8.6.9.2. Leads to a reduction in the functionality of the project
8.6.9.3. Required careful consideration and communication with client
8.6.10. Phase project delivery
8.6.10.1. Split the deliverables into smaller items
8.6.10.2. Something useful is achieved earlier
8.6.10.3. Some value has already been recovered
8.6.10.4. As long as the client wants it
8.6.11. Compromise quality
8.6.11.1. Last option
8.6.11.2. Use on tasks that are on critical path
8.7. Summary
8.7.1. There is always the need to reduce project duration
8.7.2. Time spent on during the definition and planning
8.7.3. Contingency plans and alternatives are valuable
9. 9. Leadership: Being an Effective Project Manager
10. 10. Project Management Contract Law
10.1. Contracts
10.1.1. Legally enforceable document
10.1.2. Either between
10.1.2.1. Principle and Contractor
10.1.2.2. Contractor and Subcontractor
10.1.3. Provides
10.1.3.1. Risk sharing
10.1.3.2. Responsibility assignment
10.1.3.3. Objectives
10.1.3.4. Administrative procedures
10.1.3.5. Rewards
10.1.3.6. Penalties
10.2. Types of Contract
10.2.1. Lump Sum
10.2.2. Schedule of Rates
10.2.3. Cost plus Fixed Fee
10.2.4. Cost plus Percentage Fee
10.2.5. Percentage Fee
10.3. Special Forms of Contract
10.3.1. Novated Contracts
10.3.1.1. Assigned to specialists in initial stages
10.3.1.2. Then transfers to other contractors during later stages
10.3.2. Design and Construction
10.3.2.1. 'Turnkey'
10.3.3. Partnering and Alliance
10.3.3.1. Involves setting up dispute resolution procedures
10.3.3.2. Parties undertake work cooperatively
10.3.3.3. Long term partnering contracts
10.4. Elements of a Contract
10.4.1. Agreement
10.4.1.1. A meeting of the minds
10.4.1.2. Usually a response to tender documents
10.4.1.3. Acceptance must be without qualification
10.4.2. Consideration
10.4.2.1. Gives the value of the transaction
10.4.2.2. Usually financial reward on completion
10.4.3. Intention
10.4.3.1. Parties mus be intent on filling the agreement
10.4.3.2. Including the rights and responsibilities
10.5. Other Legal Elements
10.5.1. Genuine Consent
10.5.2. Action must be taken in 6 years
10.5.3. Unless 'under seal', which then increases to 12 years
10.5.4. Waiver and Estoppel
10.5.4.1. Waiver
10.5.4.1.1. Describes the circumstances where one party indicates that the contract is no longer valid
10.5.4.2. Estoppel
10.5.4.2.1. Arises from the conduct of a party and usually results in a waiver
10.6. Practical Completion
10.6.1. Stage in the contract when the product can taken over by the principle and used safely
10.6.2. The defect liability period will still apply
10.6.3. Final payment, less security is released
10.6.4. Ownership is formally transferred
10.6.5. Responsibility for insurance is transferred
10.6.6. Final certificate is issued once defect removed and remedial work is complete
10.7. Tort Law
10.7.1. The 'duty of care' of an organisation
10.7.2. Ingredients to per sue action in a Tort case
10.7.2.1. Breach of duty of care
10.7.2.2. Injury or damage following from the act
10.7.2.3. A reasonable connection between act and injury
10.7.2.4. Injured party must not have contributed to the loss
10.7.2.5. The injured pary has the duty to mitigate the loss
10.7.3. Tort in Contracting
10.8. Job Changes
10.8.1. Variations
10.8.1.1. Different methods used
10.8.1.2. Different equipment used
10.8.1.3. Changes to planned layout
10.8.1.4. Contractor must show that additional costs were incurred even though the final result is the same
10.8.2. Extras
10.8.2.1. Changing quantity of work
10.8.2.2. Wrongly rejecting work, increasing cost
10.8.2.3. Changing quality of work
10.8.2.4. Having to demolish or re-do work
10.8.2.5. Usually more identifiable than variations
10.8.3. Program Changes
10.8.3.1. Changes to sequence of work
10.8.3.2. Acceleration of contract prgram
10.8.3.3. Prolongation of contract program
10.8.3.4. Usually increases the cost of contract
10.8.4. Extension of Time
10.8.4.1. Most common job change
10.8.4.2. Depend on situation and type of contract
10.8.4.3. Events resulting in extensions usually listed in contract
10.8.4.4. Formal extensions are required
10.9. Good Practise Legal Tips
10.9.1. Keep al forms
10.9.2. Correspondence files
10.9.3. Daily diaries
10.9.4. Progress reports
10.9.5. Photographs
10.9.6. Records of meetings
10.9.7. Emails
11. 11 Project Audit and Closure
11.1. Finishing the Work
11.1.1. Checklists of remaining work
11.1.2. Planning and Controlling at low levels of WBS
11.1.3. Planned run-down of project team
11.1.4. Use task forces
11.1.5. Changing the PM
11.1.6. Closing contracts with suppliers
11.2. Transferring the Product
11.2.1. Planning the transition
11.2.2. Ensureing the user acceptance
11.2.3. Training the user
11.2.4. Recording the 'as-built' design
11.2.5. Ensuring the maintenance is planned
11.3. Obtaining the Benefits
11.3.1. Setting a measure
11.3.2. Monitoring performance against measure
11.3.3. Calculate variancies
11.3.4. Taking action to correct large variances
11.4. Disbanding the Team
11.4.1. Must maintain motivation
11.4.2. Returning resources to line managers
11.4.3. Hold a wrap party - success or failure
11.4.4. Hold debriefings
11.4.5. Rewarding achievement
11.4.6. Disciplining under-achievement
11.4.7. Counselling staff
11.5. Post-Completion Review
11.5.1. Record 'as built' design
11.5.2. Compare achievement to plan
11.5.3. Record technical data
11.5.4. Learn successes and failures for future