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PROJECT MANAGEMENT
(WEEK 5)

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CONTACT HOURS

Total Student
Lecture Tutorial Self – Study Library Search Assignment Exam Learning Time
(hours)

2 2 4 4 0 NIL 14

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LEARNING OUTCOMES

1. Describe the steps in project planning/chartering.

2. Describe the tools needed to plan, schedule and
budget a project.

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INTRODUCTION

• Defining project and establishing project objectives must be clear before planning
for the project can be done.
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INITIAL PROJECT COORDINATION AND THE PROJECT

CHARTER

• Early meetings are used to decide on participating in the

project
• Used to “flesh out” the nature of the project
• Outcomes include:
• Technical scope
• Areas of responsibility
• Delivery dates or budgets
• Risk management group

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OUTSIDE CLIENTS

• When it is for outside clients, specifications cannot be

changed without the client’s permission
• Client may place budget constraints on the project
• May be competing against other firms

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PROJECT CHARTER

• Document that officially acknowledges the existence of a

project
• Developed by corporate executive or sponsor
• Defines the responsibilities and boundaries of both project
manager and project

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PROJECT CHARTER CONTENTS

1. Project title
2. Introduction
3. Project manager and his/her responsibilities and level of authority
4. Basic needs of the work to be performed
5. Product description
6. High level schedule
7. Initial cost estimates
8. Initial resource needs
9. Organizational support needs
10. Project information management and control
11. Approval (corporate executive responsible for the creation of the document
external of the project).

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DEFINING A PROJECT

• Critical for the success of a project.

• Time to plan is always less than time to fix.
• To help in defining a problem
1. Get from the client the clear definition of the problem to
solved or the opportunity the project will take advantage of.
2. Determine the client’s needs and wants. Help the client to
distinguish them.
3. Gather sufficient background information about the current
situation. CONFIRMATION!
4. Learn and thoroughly understand the business reason for the
project and the client’s motive in undertaking it. It gives basis
for balancing the budget, schedule and project scope.

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TYPE OF PROJECTS

1. Market-driven
• Producing a new product in response to the market needs.
2. Crisis-driven
• A fast solution to specific problem.
3. Change-driven
• The need to change operation to match the current environment
or to be more effective.

• By understanding the purpose of the project, the project managers

will understand the underlying needs so that proper planning of
time, cost and scope can be done.

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ESTABLISHING PROJECT OBJECTIVES

• Defining the basic objectives includes
1. What is to be done (specific end results)
2. How (quantity, quality or special requirements)
3. When (deadlines)
4. How much (cost)

• The three main aspects of project objectives are

1. Cost – the money and resources required to get the job done. This
include people, requirements and other allocations.

2. Time – time required to get the job done.

3. Scope – A description of the features and functions of the end

products or services to be provided by the project (deliverables).

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ESTABLISHING PROJECT OBJECTIVES

• The project objectives must define the completion condition.

This will provide the measurable criteria for project success.

• Thus, the project objectives must be SMART or SMARTER (for

green projects).

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ESTABLISHING PROJECT OBJECTIVES

• S – Specific
• Objectives must be clear and well defined so that all the party
involved can understand them.
• M – Measurable
• Objectives must be defined in measurable terms so that the progress
must be measurable for reporting purpose.
• A – Agreed upon
• The project managers, clients and customers must agree on the
project objectives.
• R – Realistic
• Objectives must be possible to achieve, given the available resources,
knowledge, skills and time.
• T – Time or cost limited
• Objectives need to be framed within clear time (cost) goals.
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ESTABLISHING PROJECT OBJECTIVES

For green project management, greenality is added to the term.

• E – environment
• To include the conservation and preservation of the
environment in the objectives.
• R – responsible
• Objectives must include the sense of responsibility towards
the effectiveness of the process, its own waste, the end
product.

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ESTABLISHING PROJECT OBJECTIVES

• Keep the objectives in balance

• If time is short, the resources

(cost) must increase or scope
must decrease, or both.

• If funds are short, the time can

be extended or scope must
decrease or both.

• If the scope is large, the cost

Scope will be greater or the time must
be extended or both.

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ESTABLISHING PROJECT OBJECTIVES

• Cost considerations
• The project manager must establish performance standards to determine how
to measure costs.
• The cost of a projects is influenced by
• Specifications of the end products.
• Compliance with governmental, institutional and internal standards.
• Technical requirements and administrative needs.
• Time considerations
• Is easier to measure.
• Scope considerations
• Most difficult to define and to get an agreement.
• Project scope can increase over time (scope creep) because of improper
definition of problems, overlooked details, unforeseen problems and changes
in the market or company.

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SCOPE PLANNING

• Scope – A description of the features and functions of the end

products or services to be provided by the project (deliverables).

• Project scope planning is concerned with defining all of the work

of the project and only the work needed to successfully meet the
project objectives.

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STEPS TO PREPARE FOR SCOPE PLANNING

1. Identify all of the project deliverables. Project deliverables are

measureable outcomes.

2. Understand the project requirements that describe the

characteristics of the deliverables.
• Functional
• Non-functional
• Technical
• User
• Business
• Regulatory

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AN EXAMPLE OF REQUIREMENTS (ATM-automated

taller machine)

• ATM function requirement: The system shall provide users with the
ability to select whether or not to produce a hardcopy transaction
receipt before completing a transaction.
• ATM non-functional requirement: All displays shall be in white 14 pt
Arial text on black background.
• ATM user requirement: The system shall complete a standard
withdrawal from a personal account, from login to cash, in less than
two minutes for a first time user.
• ATM business requirement: By providing superior service to our retail
customers, Monumental Bank’s ATM network will allow us to increase
associated service fee revenue by 10% annually on an ongoing basis,
using a baseline of December 2008.
• ATM regulatory requirement: All ATMs shall connect to standard
utility power sources within their civic jurisdiction, and be supplied
with uninterruptible power source approved by said company.
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SCOPE STATEMENT
• It is a document that formalizes the scope of everything that
the project must produce

• It is used as a reference to future decision making

• Developed by the project management together with the

team

• It’s kind of a ‘response’ to the sponsor.

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SCOPE STATEMENT CONTENTS

1. Project title
2. Name of the person who developed the document
3. Sponsor
4. Project managers, his/her responsibilities and levels of authority
5. Team members
6. Project description
7. Project objectives
8. Project justifications
9. Project product
10. Client/ sponsor expectations
11. Critical success factors
12. Assumptions and constraints

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SCOPE STATEMENT CONTENTS

13. Specific exclusions (what will not be produced by the project)

14. Main activities and strategies
15. Main deliverable
16. Basic budget
17. Deliverables and milestone plan
18. Register of changes in the documents
19. Approval

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PROJECT CHARTER VS. SCOPE STATEMENT
Project charter
• Official document created and
approved by the key
stakeholders, after the project
idea has been identified.
• Developed by the corporate
executive or sponsor.
• Defines the responsibilities and
boundaries of the project.
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Scope statement
• After the project charter is
approved the project manager
can proceed with launching
team building activities and
defining the scope of the
project.
• Document that formalizes the
references the scope of
everything that the project
must produce that is used for
the future decision making.
• Decision by the project
manager with his/her project
team members.
• Acts as a response to the
sponsor/project charter.
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BASIC PROCESSES OF PROJECT PLANNING

1. Preparing the work breakdown structure - specifies the
breakdown of the project into tasks and sub tasks.
2. Risk management planning - charts the risks, contingency plan and
mitigation strategies.
3. Budget planning - specifies the budgeted cost to be incurred in the
completion of the project.
4. Project schedule development - specifies the entire schedule of the
activities detailing their sequence of execution.
5. Resource planning - specifies who will do what work at which time of the
project and if any special skills are needed to accomplish the project tasks.
6. Procurement planning - focuses on dealing with vendors outside of your
company
7. Quality planning - for quality assurance to be applied to the project.
8. Communication planning - on the communication strategy with all project
stakeholders.
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WORK BREAKDOWN STRUCTURE (WBS)

• A work breakdown structure (WBS) is defined as the work to be
completed in the project.
• Breaking down the project into manageable pieces – can be easily
• Scheduled
• Monitored
• Controlled
• The idea is to subdivide the complicated tasks into smaller tasks until
you reach a level that cannot be subdivided anymore.
• WBS is a hierarchical planning system.
• It is a graphical representation (diagram) of the project showing its
component parts.

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A FORM TO ASSIST HIERARCHICAL PLANNING

Figure 6-2

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CAREER DAY

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A VISUAL WBS

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WORK BREAKDOWN STRUCTURE - GUIDE

• Use any category that makes sense for your project.

• Don’t be constrained by sequence.
• The diagram does not have to symmetrical.
• Each box is a summary of the boxes in the levels below it.
• The boxes in the lowest level are called work packages.
• The sum total of boxes must represent the complete project.
• The entire project team should be involved in developing the
work breakdown structure.
• When completed, you should review the work breakdown
with client and customers.

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