Unit 1 A Project A unique process, consisting of a set of coordinated and controlled activities with start and finish dates,

undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources

Unique Process Coordinated and controlled activities Start and finish dates To achieve an objective Specific requirements Constraints of time, cost and resources

A project is a temporary and one-time exercise which varies in duration. It is undertaken to address a specific need, problem or opportunity in an organisation, which may be to create a product or service or to change a business process. This is in direct contrast to how an organisation generally works on a permanent basis to produce their goods or services. For example the work of an organisation may be to manufacture trucks on a continual basis, therefore the work is considered functional as the organisation creates the same products or services over-and-over again and people hold their roles on a semi permanent basis. Project Characteristics

Organisation is temporary Often forms part of a larger project Objectives and product characteristics may be defined and achieved progressively Result may be the creation of one or several units of a project Interrelation between activities may be complex

Project management is principally concerned with the management of change, (Lockyer and Gordon, 1996) Project Factors Size of the project Budget/costs, Size of team, Size of product Complexity Industry in which it is carried out Civil engineering Manufacturing IS/IT

Classifying Projects (Lock, 1996)

Civil Engineering Realisation phase is outdoors, large capital = many contractors = communication headaches Manufacturing Projects Development of specialised hardware, physical design Management Projects Projects that do not result in a produced piece of hardware (including software projects?) Research Projects Include a higher element of risk (including software projects?)

What is Project Management? A project is generally initiated by a perceived need, problem or opportunity in an organisation. Being a one off undertaking, it will have a start and an end, constraints of budgets, time and resources and involves a purpose built team. Project teams are made up of many different team members, for example, end users/customers (of a product or service), representatives from Information Technology (IT), a project leader, business analysts, trainers, the project sponsor and other stakeholders. Project management is the discipline of managing all the different resources and aspects of the project in such a way that the resources will deliver all the output that is required to complete the project within the defined scope, time, and cost constraints. These are agreed upon in the project initiation stage and by the time the project begins all stakeholders and team members will have a clear understanding and acceptance of the process, methodology and expected outcomes. A good project manager utilises a formal process that can be audited and used as a blue print for the project, and this is achieved by employing a project management methodology. The Project Management Context Projects and project management are carried out in an environment broader than that of the project itself. The project management team must understand this broader context so it can select the life cycle phases, processes, and tools and techniques that appropriately fit the project. The context is the combination of the environmental, political, social-economic and commercial factors which exist and which specifically influence the manner in which the project is executed or on the outcome of the project. Programme Management as a Project Management Context Project management, is as we described earlier, a discipline which, in its traditional form, focuses on the definition, planning and execution of specific objectives. Project management exists in a broader context that includes program management, portfolio management and project management office. A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Frequently, there is a hierarchy of strategic plan, portfolio, program, project and subproject, in which a program consisting of several associated projects will contribute to the achievement of a strategic plan. The growing use of projects to effect significant organisational change has led to a widespread interest in programme management. Programmes by grouping, directing and initiating new projects set the context for projects, yet they too are subject to external influences and developments. Emergent thinking on programme management best practice has focused on the internal context, namely the marshalling of projects and resources to achieve the desired strategic and/or synergy

benefits. Relatively neglected, though crucially important, is the need to shape, embed and align the programme to the evolving needs of the organisation. Programmes provide a bridge between projects and the organisation's strategy, programme management takes on many of the characteristics and competencies of strategic change management and organisational development. Programme directors and managers have fundamental roles as mediators' moderators and manipulators of the external context and pressures. They must embrace and deal with the ambiguity, tensions and interplay between the need for concrete action and the strategic imperative of openness, options and speedy response. Programs may include elements of related work outside of the scope of the discrete projects in the program. For example: A new car model program can be broken up into projects for the design and upgrades of each major component (for example, transmission, engine, interior, exterior) while the ongoing manufacturing occurs on the assembly line; Many electronics firms have program managers who are responsible for both individual product releases (projects) and the coordination of multiple releases over a period of time (an ongoing operation). Programs also involve a series of repetitive or cyclical undertakings. For example: Utilities such as Eskom or Transnet often speak of an annual construction program, a series of projects built on previous efforts, but designed to achieve a long term goal or strategic objective; Many non-profit organizations have a fundraising program, to obtain financial support involving a series of discrete projects, such as a membership drive or an auction. This happens over time and is linked in with the organisations strategic objectives. Publishing a newspaper or magazine is also a program with each individual issue managed as a project. This is an example of where general operations can become management by projects. In contrast with project management, program management is the centralized, coordinated management of a group of projects to achieve the program's strategic objectives and benefits. Some Pros and Cons of Project Management Pros Project Management is a great stepping stone to promotion. Project Managers are better paid than their technical discipline colleagues. Completing a project gives one a strong sense of achievement. Work associated with Project Management has considerable variety no 2 days are the same. As a Project Manager you are normally given significant freedom of choice. Project Management provides an opportunity to make significant changes to the organisation and/or environment. A Project Managers role cuts across several technical disciplines. Cons As a Project Manager, you will need to be tolerant to the politics around the project and the people who participate in it. Your sole focus is to move the project forward.

Project Managers need to deal with significant ambiguity and uncertainty. There is always someone threatening to halt the project. By definition projects are transformational and not all people like change. Project Managers are given a lot of responsibility but little authority. Project Managers are drawn from the ranks of the technocrats. The process of executing projects disconnects Project Managers from their roots. Sometimes this is an alienating experience. There is social stigma in that the technocrats often perceive Project Management as not a real job.

What does it take to be a Good Project Manager? Aside from understanding the methodology, there are other characteristics to keep in mind for a successful Project Manager. Some texts suggest that project management is both a science and an art. The art is in the ability to lead people through a projects and the science is in the defining and coordination of the efforts of lots of different people. Given that any project is involved with a project team as well as the stakeholders, a good Project Manager needs to have not only excellent time management skills but also good people skills such as: Excellent communication skills The ability to be a team player Excellent interpersonal skills The ability to negotiate Experienced Project Managers believe there are two key factors in determining the success of a project: Recruitment and selection of suitably qualified project members to relevant project positions is essential. Recruiting of project team members should be handled with the same discipline and rigour as the recruitment of new employees to fulfil the ongoing positions in the business. A well documented methodology that is kept simple and easily adaptable to different sizes of projects is a critical foundation for ensuring project success. This documented methodology needs to be communicated to project team members as part of the initiation stage. This will ensure such things as everyone having a clear understanding of how to progress and what is expected at each stage and that the methodology is adapted to the specific needs of the project being undertaken. The project life cycle chart is considered as the essential start of the project management documentation process. Project Managers cannot however succeed on the basis of their project management knowledge or the talent of their people alone. Project Managers need to know and have a deep understanding of all the processes that goes into producing the product. For example: one cannot project manage the delivery of a housing project without understanding how a house is built. So the Project Manager will need to understand the whole process of building a house as well as the process of obtaining the authorizations from local authorities, as well as the process of obtaining environmental clearance, as well as the process of getting bulk services to the site etc. This Project Manager may, on completion of this housing project, be required to project manage the upgrade of the N1 between Beaufort West and Laingsburg. Thereafter, he will be the Project Manager on the Materials Handling System Upgrade at Saldanha Steel and thereafter the Project

Manager for the Balance of Plant Project as part of the Pebble Bed Modular Reactor Programme. This places the experienced Project Manager in the very unique position of knowing (in combination) a lot of stuff about a lot of stuff that in all likelihood very few other people know as well. Project Management Overview

Project Funding Revenue projects Carried out within the normal organisational structure, normally within a single accounting period Capital projects May extend over a number of accounting periods Occupy considerable time employ considerable capital Not carried out within the normal organisational structure Cross functional and time boundaries Cannot be accommodated within the normal running of an organisation A special organisational structure is set up the project team This structure usually only exists for the duration of the project Organisation Structures Hierarchical Matrix Project Management Structure Hierarchical

Project Teams Revenue Projects Teams taken from within functions All report to function manager Capital Projects Teams taken from various functions They report to Large Corporation Project Teams All Projects Should Have: Project plan Time frame Product specification Statement of required quality Budget Cost plan Identification of areas of uncertainty Risk evaluation and responses

Process Overview A project is broken down into stages. Each stage in turn will be broken down into smaller and more manageable tasks. It is important to include planning as part of the project management process

Four Phase Model Lockyer describes a four phase model of the project process Conception - assess the feasibility of the project Development - prepare the project plan Realisation - carry out the plan Termination - close the project Conception Reports On The capability of the organisation to produce the product in the time required Support capital outlay Procure external items or services The acceptability of geographical requirements on procurement or ecology specified in the project enquiry Contract conditions specified in enquiry The final price for the product The cost involved in development The project budget Specification of the product including quality and reliability requirements Conception

Development As the organisation is now committed to the project it must: Appoint a project manager Assemble project team Draw up a detailed plan of work Realisation A reporting system is required to keep everyone informed: Team, top management, customers etc. A log is also kept of problems and how they were resolved Termination Uses the project log to evaluate the project and the process and indicate: The success/failure of methods used How team members performed How reliable suppliers were Termination Capital equipment that was used for the project is now likely to be redundant Termination also involves getting rid of such equipment as profitably as possible