Posted: May 11th, 2015

manage meeting two

BSBPMG522A Undertake Project Work
Learning Guide
Northern Sydney Institute
[Campus Name]
Learning Guide
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Table of Contents
Table of Contents ……………………………………………………………………………………………………………….. 2
Introduction to the Learning Guide ……………………………………………………………………………………….. 3
Introduction to Project Management …………………………………………………………………………………….. 3
Topic 1 Define the Project …………………………………………………………………………………………………….. 5
Topic 1 Activities ………………………………………………………………………………………………………………. 13
Topic 2 Develop the Project Plan …………………………………………………………………………………………. 19
Topic 2 Activities ………………………………………………………………………………………………………………. 37
Topic 3 Administering and Monitoring the Project ………………………………………………………………… 43
Topic 3 Activities ………………………………………………………………………………………………………………. 59
Topic 4 Finalise the Project …………………………………………………………………………………………………. 66
Topic 4 Activities ………………………………………………………………………………………………………………. 70
Topic 5 Review the Project …………………………………………………………………………………………………. 75
Topic 5 Activities ………………………………………………………………………………………………………………. 78
References……………………………………………………………………………………………………………………….. 82
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Introduction to the Learning Guide
This learning guide has been designed to cover all subject matter for BSBPMG522A Undertake Project Work. The topics follow the project lifecycle and the elements in the units of competence.
Introduction to Project Management
What is a project?
A project is a sequence of activities that is intended to achieve a unique purpose. Projects are different from ordinary daily work activities. Most projects are done only once.
For example, a Human Resources (HR) Manager would monitor staff training and professional development and record this information in staff records. This would be ordinary work. However, if the head of the HR department requested that the HR Manager plan, design and implement new OH&S training for all staff, then that would be a project.
Five features that differentiate projects from ordinary work are that they:
 have defined beginning and end dates
 have a unique purpose with specific objectives that meet the client goals and requirements within specified quality and performance criteria
 use resources, such as money, time, people and equipment that have been allocated to the project
 usually follow a planned and structured approach to meet their objectives
 have a primary sponsor or stakeholder that provides direction and funding.
Projects can be simple and easily handled by one person or large and complex projects requiring many resources and the specialised skills of a dedicated project manager.
What is project management?
Project management is about striving to meet specific time, cost, quality and resource objectives for projects. At the same time it must facilitate the entire process so as to meet the needs and expectations of all people affected by project activities.
Project management is about making change through the use of techniques, tools and resources that manage change throughout the life of the project.
General management skills
Managing projects is more than simply listing tasks and entering them into a computer program. It is about managing people and resources to ensure the successful completion of the project.
Like all management activities, managing projects is based on sound general management principles, so that all activities of a project are managed in order to achieve a desired goal on time, and within budget.
These general management principles include:
 planning the objectives, work estimates, work schedules, and budgets to reach the project goal
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 organising the people and initiating the activities needed to complete the project
 assembling all the necessary resources needed to complete the project (as per your plan)
 controlling the project, by tracking and monitoring the progress against the initial project plan
 leading the project team
 communicating, which involves creating a reporting structure to ensure that all stakeholders and other interested parties receive timely and proper information during the life of the project.
What makes a good project manager?
Project managers need strong management skills to be able to lead people, to communicate, negotiate, organise and plan, solve problems, influence people, analyse, set goals, listen to people, motivate people, and achieve targets.
A project manager must focus on leadership and teamwork skills to lead the team in the most effective way to achieve the project goals. They must use their communication and political skills to build positive relationships that enable them to understand and meet stakeholders’ needs and expectations.
A project manager must also have good organisational skills, to be able to plan, analyse, set and achieve project objectives, work plans and schedules.
Organisations employ specialised project managers because they have skills in collectively managing aspects of a project including:
 the budget
 the schedule
 the team members
 stakeholders
 functional managers (other managers within the organisation)
They do not manage a permanent department like functional managers do. They manage a given team over a given time period. Then, with a new project, they do it all over again with a different team, budget and schedule.
The 5 phases in a project
There are five general phases in a project:
1. initiate phase
2. plan phase
3. organise phase
4. control phase
5. close phase.
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During each phase, you need to use the principles of general management needed for that phase. This usually involves using a set of controlled steps and procedures to ensure that each phase is completed satisfactorily. The following table shows the main activities that are required in each of these five general phases of a project life cycle. They usually are grouped into:
 planning processes, and
 implementation processes.
This topic takes a close look at the initiate phase.
Major activities that occur during each project phase Initiate
Plan
Organise
Control
Close Define the overall project goal
Develop detailed task list
Obtain necessary resources
Lead and support the team
Complete final deliverables Identify all stakeholders, their needs and expectations
Estimate all task times and all costs
Recruit necessary personnel
Establish control tools and methods
Write and issue final report, close the accounts, hand over project files Identify the project objectives
Arrange best sequence of all tasks
Organise and lead the project team
Monitor the project plan and make any necessary corrective actions
Release all resources Identify initial work and resources and basic milestones
Develop workable schedule and identify critical milestones
Assign all project tasks
Assess and implement change
Obtain stakeholder acceptance and signoff Identify all constraints, assumptions and risks
Write detailed project plan and obtain approval from stakeholders
Communicate with stakeholders and all necessary parties
Prepare and distribute status reports
Evaluate the project
Topic 1 Define the Project
In the initiate phase you will:
 define the overall project goal
 identify all stakeholders, their needs and expectations
 identify the project objectives
 identify initial work and resources and basic milestones
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 identify all constraints, assumptions and risks.
Project scope
One of the most difficult aspects of project management is defining the scope of a project. The word ‘scope’ means extent or depth. When applied to project management, it refers to how much work there is to do.
The scope is all work needed to fulfil the project goals. It includes all the resources and processes used to do this.
The project scope must provide a clear and refined description of:
 the project goal
 what is to be achieved
 how is it to be achieved
 who will achieve it
 when it will be achieved
 with what resources it will be achieved.
Once these have been determined, they are written down in a scope document.
A scope document shows the scope, or extent, of a project. Let’s look at the key sections and an example of a project scope document.
The things you will find in a project scope document
Key sections of a scope document
Section
Details
Scope statement
This clearly states the project goal, objectives and deliverables. If it is not specified in the scope statement then it is outside the scope of the project and is not relevant. Project tasks should only address work that is relevant to the project goal and objectives.
Project constraints
These are any limiting factors that prevent the project from moving in a particular path. Examples include:
 You have dependent tasks that impact on specific areas of the project, for example, tasks that cannot begin unless another one has
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Section
Details
started.
 You have a deadline that cannot be changed.
 The implementation work for a system upgrade can only be done on the weekend, when staff are not at work.
Assumptions
These are aspects that the project manager builds into the scope document to allow for any uncertainties that may occur. Examples of assumptions include:
 Fifteen new personal computers need to be purchased for the project.
 All staff need yearly training in OHS.
 All resources for the project will be sourced from outside of the company.
Tasks list
You need to specify a list of tasks (and deliverables) to be achieved during the project. They are all the activities that need to take place to bring the project to completion. The deliverables include all the documentation, reports, contracts and products that need to be produced and signed-off on by those in authority.
Estimates (cost, time and human resources)
You need to make initial estimates in relation to cost, time and human resource requirements. These identify the boundaries of the project to enable you to expand into the more detailed estimates that are needed to develop the full project plan.
Contract statement
This will include the names of those authorised to initiate contract work, sign contracts and completion acceptances. It also includes any contractual limitations and penalty statements for possible contract variations. (Variations and penalties apply equally to the client and providers.)
The following is an example of a scope document, in this case for a project to install animal litter bins in local parks.
Sample scope document
Project Scope
Project Information (Please complete all)
Project Sponsor
Bob Smith
General Manager
Project Name
Animal litter bins
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Sponsoring Department/Client
Directive from Council Meeting
Parks & Gardens
Project Leader
Arens Sirkel
Scope the project
The project will encompass the installing of animal litter bins and bag dispensers in all council parks. The bins and bags are to be purchased from Animal Litter Limited after recommendations from neighbouring councils.
Description of the project
What is the vision? What will the finished product look like?
The animal litter bins will be installed in prominent locations in each park, while also being close to entrances to allow efficient removal of waste by our waste management contractor.
Identify the strategic objectives which relate to this project
To reduce animal litter by encouraging owners to pick up after their pets.
Identify the main target audience
Pet owners.
What are the intended outcomes/deliverables of the project?
That pet owners will use the bags provided to clean up their pets’ litter and deposit the bags in the bins provided, other bins or their own bins at home.
What are the particular aspects of the project?
Installation of bins.
Other comments
Collection of waste and replacement of bags has been contracted to our waste management contractor.
A public awareness campaign will be conducted by council after the bins have been installed.
Proposed high-level project timeline
Phase
Dates/Time
Notes
Phase 1: Scoping and feasibility
not required
Directed by council, scoped by General Manager
Phase 2: Planning
4 days
Phase 3: Implementation
3 weeks
Phase 4: Evaluation
2 days
Proposed high-level budget
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Detail proposed budget or financial constraints for the project.
Overtime wages/contractor payments $ 7,000
Bins & posts $ 15,000
Materials (cement, etc) $ 2,000
Annual bag replacement program $ 6,000
Annual additional charge by Waste Management Co. $ 18,000
Scope signoff
This scope has been approved by: Bob Smith_____________________ Project Sponsor
Department: General Manager Date_____/_____/_____
Use the scope document during the whole project
It is a good idea to revisit the scope document while the project is running, to check that the project is meeting its objectives and to make sure that activities are within its scope.
During the plan phase you should use the scope document as a basis to expand into a detailed activity list of the project deliverables.
Project sponsor
A good scope document will clearly define the project sponsor. The project sponsor is a key stakeholder for the project. The sponsor is the person or organisation that has taken the idea for a project and developed it into a structure, or who has identified the idea for the project and initiated its further development.
The sponsor may be the manager, client, department or work team that has initiated the project. The sponsor usually provides the resources and approvals for the project, and has the final say on project deliverables, costs, schedules and risk.
Project stakeholders
Stakeholders are the individuals or organisations that are involved in, or may be affected by, the project. These might include the project sponsor (company management, department head, client etc), staff, contractors, suppliers, project team, external clients, government agencies and the public. This group will vary greatly from one project to another.
There are always a number of stakeholders involved in workplace projects. For example, stakeholders could include members of the following groups:
 employees, contractors
 unions and labour hire companies
 managers
 customers
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 suppliers.
Internal and external stakeholders
Stakeholders can be internal or external to an organisation, and beyond the main group of interested parties, they can be quite diverse, depending on the nature of the project. The table below lists some possible internal stakeholders and what their interest is.
Examples of internal stakeholders are as follows: Stakeholder Details
Sponsor
The person or business unit that initiated the project and provides funding for the project.
Project Team
The project manager and team members who carry out all of the tasks required to complete the project on time and within budget.
Senior management
Senior management obviously have an interest in projects undertaken by their organisation, and their approval will be required.
Functional Managers
They become involved when they are directly affected by the project or offer their staff to take part in the project.
Shareholders
As they usually provide the funding they have a vested interest in the success of the project.
External stakeholders can include:
 clients or customers
 industry
 steering committee members
 environmental associations
 media
 government representatives
 suppliers and contractors
 general public
 relevant interest groups
 unions
 end users.
Consider this example.
A new payroll system is to be put in place at Happy Pizza P/L. The stakeholders include:
 Happy Pizza P/L and its staff (who are paid through the system)
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 the tax office (that receives tax payments identified by the system)
 the bank (that makes the direct deposits into the staff bank accounts)
 superannuation funds
 unions
 other organisations receiving direct payments from the staff wages
 the company’s accounts and HR departments
 the project team
 the developer and vendor of the payroll system.
A good scope document will identify some of the stakeholders, but as the project manager, you will usually need to do more research to identify all of them. This is important because:
 it allows all the parties that are affected by the project to be consulted before it has progressed
 it ensures that all possible issues are identified, and factored into the planning
 it deals with any obstacles or concerns about the project.
The needs of stakeholders must be considered when setting targets and planning the attainment of these targets. They may wish to make some contribution to the process or be involved in discussions.
You will need to manage communication with all stakeholders to ensure that their expectations of the project are appropriate and that their input is valued.
The impact stakeholders have on a project
Stakeholders in any given project play an important and continuous role in the life of that project. They may be able to offer suggestions, describe the requirements of a project, evaluate a project and provide extra funds.
Successful project managers are excellent communicators and develop good relationships with all project stakeholders to make sure that their needs and expectations are not only understood and agreed to, but are constantly met during the life of the project.
The project manager will perform a stakeholder analysis. The analysis will help identify all groups that must be interacted with and all common interests, develop appropriate strategies for negotiating competing requirements, and help allocate resources to accomplish project goals.
Stakeholders are important because have a vested interest in the outcomes of a project. This may be because:
 they may have staff involved in work activities
 they have invested funds in the project
 their department will be using affected by the project outcomes.
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Project team responsibilities
As the project manager, you need to clearly identify the limits of each project team member’s responsibility. Questions to ask include:
 What is the overall responsibility of the project manager?
 What is the responsibility of individual project team members?
 How will changes to project specifications, deliverables, scheduling, resource usage, and other aspects of the project be managed?
 Who is responsible for each of these?
Each team member should have clearly defined responsibilities to ensure that they understand what they are—and are not—allowed to do. Otherwise one person may go off and approve changes that have not been authorised and cause the project to go in the wrong direction, go over budget, or eventually fail.
Project reporting requirements
When you are developing or reviewing the scope of a project, make sure to include reporting guidelines, such as when to report to the project sponsor, stakeholders and project team. (It should be on a regular basis.)
There are a few different ways to meet reporting requirements; you may need to use several of these methods together:
 hold project team meetings where each team member reports on the progress of the project
 sponsor or stakeholder meetings where you report on the progress of the project
 provide written reports
 send email reports
 use the reporting facilities in any project management software you may be using.
Reporting requirements for a project are put in place to ensure that all those involved are kept up-to-date with the project’s progress. They also provide the opportunity to report any changes or unforeseen events. This means that such things can be rectified quickly—before they get out of hand.
The important thing is that everyone involved has a clear understanding of their reporting requirements, and that these requirements are met.
Relationship to other projects
A lot of projects are stand-alone and do not interact with any other projects. However, sometimes an individual project may be related to, or have an impact on one or more other projects.
Consider Happy Pizza P/L—if the payroll system upgrade project is carried out at the same time as an upgrade of the entire accounting system, then regular exchanges of information between the payroll system project and the accounting system projects would be necessary to make sure that each system is compatible with the other.
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Relationship to organisational objectives
Every organisation has a range of organisational objectives. Some examples might include providing environmentally friendly products, supporting Australian companies, providing outstanding customer service or providing cutting-edge technologies.
When developing or managing a project, you need to consider how it will fit within these organisational objectives. For example, outsourcing the call centre to an offshore supplier might cut costs, but will it meet the company’s objectives of supporting Australian companies?
Project resources
Resource planning is a critical part of project cost management. To estimate budget and control costs, project managers and their teams must determine what physical resources (people, money, time, equipment and facilities) and in what quantity they are required to complete the project. Expert judgement and the availability of alternatives are the only real tools available to assist in resource planning, but to help with this process ask yourself some questions.
 Will it be difficult to accomplish specific tasks in the project?
 Is there anything unique about the project that might cause problems in the future?
 Has your organisation done anything similar before? Who did the work?
 Does your organisation have staff, equipment and resources that are capable of doing the job?
 Do you need to outsource some of the work?
 Does your organisation have any policies that might affect obtaining resources?
If the resources are not available within the organisation or easily obtainable from outside, then it may not be a good idea to pursue the project any further.
Topic 1 Activities
Activity 1: In Class Project
As a class, work on the following scenario to demonstrate a project from start (initiation) to finish (close).
TAFE has given the students of this class $20 per head for an end of year celebration. TAFE want this money to be used to celebrate the successful completion of this Course. They have left it up to the students to determine how the money is spent (the scope) but you must conform to relevant TAFE policies and ensure TAFE is a major stakeholder in the project. Throughout this subject you will put together a project plan as well as monitor and control and close the project.
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Activity 2: Workplace Activities
Research the answers to these questions in your own workplace or a workplace you are familiar with. You can check your answers against the guidelines below, but naturally your answers will vary depending the workplace.
Questions
1. Who are the stakeholders for your project?
Answer:
2. What concerns may these stakeholders raise?
Answer:
3. What are your responsibilities and level of authority as a member of your project team?
Answer:
4. What are the reporting requirements for your project?
Answer:
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5. Does your project have a relationship with any other project?
Answer:
6. How does your project fit with your organisation’s objectives?
Answer:
7. Does your organisation have the resources required to complete your project? If they are not available from within your organisation, how can they be obtained from outside the organisation?
Answer:
Check your answers
Question 1
Your list should include all those who are involved or affected by your project, including sponsors, management, staff, contractors, suppliers, clients, etc. Think about the extent of your project so you can identify all stakeholders.
Question 2
Think of the individual ways in which your project may affect these stakeholders and what concerns they may raise. Consider issues such as:
 Will client orders be delayed?
 Will staff have to work additional hours?
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 Will routines be disturbed?
Question 3
You need to have a clear understanding of your power to approve budgets, project changes, and time frames. If you do not have this responsibility you need to identify and consult with those who do.
Question 4
In your response you should include a list of the reports you will need to prepare, to whom these reports are sent, what they include and when they are due.
Question 5
A good source of information for this would be to ask managers across various departments within your organisation and higher levels of management. If your project is part of a larger or related project within your organisation, then establish how this might affect your project and identify points at which your project team needs to communicate, or would benefit from communication, with those involved in the other project/s.
Question 6
The best place to start is to review the mission and objectives of your organisation and think about how your project is designed to meet these objectives.
Question 7
Think of all the resources you will need for your project, such as people, equipment, finance, knowledge, and look at their availability from within your organisation.
When looking at procuring resources you should consider:
 What does the budget allow?
 Are there established links with resource suppliers?
 Do you need to tender these purchases?
Activity 3: Quiz
Use this quiz to check your knowledge of the project definition stage.
Question 1:
What is the main job of the project manager?
1. identify project tasks
2. produce a project management timeline
3. plan and manage the project
4. conduct project meetings
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Question 2:
People who are involved in or affected by project activities are
1. project mangers
2. project stakeholders
3. project steering committee
4. organisational employees
Question 3:
Which of the following characteristics are important for project managers to have? Select all correct answers.
1. good communicator
2. strong negotiator
3. authoritative
4. able to set goals
5. works staff hard
Question 4:
A scoping document outlines the extent or depth of the project. True or false?
1. True
2. False
Question 5:
What is a project sponsor?
1. a company financially supporting then project
2. a group of company stakeholders
3. a key stakeholder who is responsible for reporting on the outcomes of the project
4. a key stakeholder who has developed the idea for the project
Question 6:
All stakeholders sign-off on the project outcomes. True or false?
1. True
2. False
Question 7:
Why is it important to allocate project team responsibilities? Select all correct answers.
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1. to prevent team members from doing tasks not allocated to them
2. to identify areas of staff weakness
3. to clarify who can provide support for certain project tasks
4. to better understand how tasks can be managed by stakeholders
Question 8:
Which of the following are common project reporting techniques? Select all correct answers.
1. project team meetings
2. stakeholder meetings
3. progress reports
4. email reports
5. reporting facilities in project management software
Question 9:
Projects should be designed to stand alone from other projects. True or false?
1. True
2. False
Question 10:
Project objectives should be aligned with
1. technical objectives
2. organisational objectives
3. staff development
4. business processes
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Topic 2 Develop the Project Plan
Once a project has been established and defined during the initiate phase the task of the project manager, and others, is to formulate a project plan. It cannot be understated how vital this phase of project management is to the final success or failure of the project. Typically, the better the planning the better the project result in terms of it being on time, on budget and fulfilling the projects objectives.
The 5 phases in a project
There are five general phases in a project:
1. initiate phase
2. plan phase
3. organise phase
4. control phase
5. close phase.
This topic takes a close look at the plan phase.
Major activities that occur during each project phase
Initiate Plan
Organise
Control
Close
Define the overall project goal Develop a detailed task list
Obtain necessary resources
Lead and support the team
Complete final deliverables
Identify all stakeholders, their needs and expectations Estimate all task times and all costs
Recruit necessary personnel
Establish control tools and methods
Write and issue final report, close the accounts, hand over project files
Identify the project objectives Arrange the best sequence of all tasks
Organise and lead the project team
Monitor the project plan and make any necessary corrective actions
Release all resources
Identify initial work and resources and basic milestones Develop a workable schedule and identify critical milestones
Assign all project tasks
Assess and implement change
Obtain stakeholder acceptance and signoff
Identify all constraints, assumptions Write a detailed project plan and obtain
Communicate with stakeholders
Prepare and distribute
Evaluate the project
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Initiate Plan
Organise
Control
Close
and risks approval from stakeholders
and all necessary parties
status reports
The plan phase
In the plan phase you will:
1. develop a detailed task list
2. estimate all task times and costs
3. arrange the best sequence of tasks
4. develop a workable schedule and identify critical milestones
5. write a detailed project plan and obtain approval from stakeholders.
You can use the scope document as a basis for the project plan but you will need to expand on it and create a detailed activity list of the project deliverables.
Planning your project
To effectively plan and implement a project, you must remember that the project has:
 an overall goal
 several objectives
 a number of separate tasks attached to each objective.
Your job will be to identify all of these objectives and tasks, and turn them into an effective project plan.
Now, consider the skills you will need to do this. As you develop your project plan you will find yourself using these skills:
 Planning skills—to define the task list, estimate task times and task costs, define the task sequence and timing.
 Communication skills—to help communicate and consult with staff, suppliers and contractors to determine how long each task should take, as well as job functions during the estimation process. These same skills will also help you to write the project plan and get approval from the stakeholders.
 Skills in the use of project management tools—to assist in the development of the project plan.
 Risk management skills—to identify and classify all project risks including OHS issues.
 Budgeting skills—to help estimate and cost the project.
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Project goals
Every project has a major purpose or direction. Once a project has been identified, the major stakeholder or sponsor will make a clear statement of what they want to achieve. This is often called the goal of the project.
The sponsor’s goal will be defined by end products or services the sponsor wishes to acquire. The following are examples of particular project goals.
 Design and complete staff training on new OH&S regulations.
 Increase company sales by the end of the financial year.
 Relocate the company to new premises by next year.
Project objectives
To successfully complete a project, several major steps need to take place. These steps usually represent the major parts of the project. These are the project objectives, sometimes called milestones.
As the project manager you will work with stakeholders to identify the key project objectives for the project goal.
Objectives are not actual work but are sub-goals that are used to focus work activities during the life of the project. Objectives have outputs that are clearly defined in terms of results, goods, or services produced during the project or at its completion.
These outputs are sometimes referred to as deliverables and may include reports, plans, products, or even organisational changes.
It is extremely important to be precise about the project objectives because they are the foundation from which the project plan is developed.
Project objectives can influence:
 the selection of the project team
 task definition
 task schedule
 resource allocation
 budget.
Objectives are also compared against outcomes at the end of the project and continuously during the life of the project, to make sure that expectations have been met and that the project is moving in the right direction.
Tasks
Once you have defined project goals and objectives you can begin to focus on the actual work required to complete the project. This work is divided into tasks.
Tasks must be:
 clearly defined
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 prioritised
 sequenced, and
 scheduled.
Defining tasks
Task definition involves identifying all of the specific tasks and task activities for the project. A task is an element of work that is contained in the work breakdown structure found in the scope document.
Each task has:
 an expected duration
 an estimated cost
 resource requirements.
Task definition usually results in a very detailed work breakdown structure from which the project team has a complete understanding of the work that is required to achieve the project deliverables.
Tasks must first be determined. Some guidelines for determining tasks are as follows:
 Identify tasks as precisely as possible. Each task should be short compared to the overall project duration. For example, if you plan to put up a frame house, you may want to break up the “put up the frame” process into three or more tasks, one for each part of the house (outer walls, inner walls, roof etc). This helps you make a more reliable estimate of the time and resources required to complete a task.
 Tasks must be significant enough to include in the project plan. Insignificant or unscheduled tasks only clutter your project task list. For example, in the “pour the concrete” task mixing the concrete may be important, but it may not be significant enough to include as a separate step if it doesn’t affect how the task is scheduled.
 The level of detail in your list of tasks should be appropriate for the amount of planning and control you want. For example, if you are hiring outside consultants to do a study, you are interested in when the consultant starts the study and when the study will be completed but you are not interested in the detailed tasks performed by the consultants. In your list of tasks, you would include one task for the study, showing the duration for the whole, rather than many tasks indicating each step of the study. However, if you are doing the study yourself, the separate steps would need to be included in your task list.
 When you list your tasks, you must be aware of the scope of the tasks and the assumptions on which the tasks are based. This helps you identify changes and measure progress.
 Be comprehensive. Remember to include reports, reviews and coordination activities in your list of tasks and remember to include tasks for anticipated rework or modifications after a task has been completed, such as revising a manual or reworking and retesting a new product.
 Name a task using a verb and a noun, such as “pour the concrete”, “build the outer wall frame” and “tile the roof”. Make the names as explicit as possible and keep the style of the
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names consistent throughout. This consistency will help others understand each task in your schedule.
Task sequencing
At this point in the planning phase, our project is a list of tasks, what must be done in order to complete it, deliverables, and milestones to measure its progress.
Now it’s time to work out the sequence in which the tasks can be done to achieve these milestones and deliverables.
Obviously we could just put them in a logical order like a ‘to do’ list and then do them one after the other. This is fine for small, simple projects but for a complex project with many tasks this has the potential to be a long and inefficient path to completion.
Many activities in a project can be done simultaneously to increase efficiency, while other tasks will be done sequentially because they are dependent on earlier tasks.
Estimating task duration
After the sequence of tasks is set, you must estimate the duration of the tasks. The duration includes both the work time that is needed to do the task plus the time over which this work is done. For example it may take 14 hours of work to perform a task, but this work may be done over four days because the assigned person may only do 3.5 hours work per day on the task. Holidays and weekends must also be considered when estimating task duration.
To complete the duration estimates you need to know:
 the activities within the task
 the sequence of the activities
 the availability of resources
 the skill levels of the personnel
 any constraints and assumptions that have been made
 any historical information from previous projects.
When estimating task times, there are five options that you can use to gather information to help you make the estimates as accurate as possible:
1. Ask the people who will actually do the work because they have the experience.
2. Get an expert’s opinion in the task field.
3. Use an identical or similar task in a completed project as a guideline.
4. If you have time and the task is ready to be undertaken, perform a test task.
5. If all else fails, make your best educated estimate.
The results then are:
 a detailed list of activity durations
 a document describing the background of the estimates.
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Scheduling
The schedule for the project will draw on all the information about the tasks that you have gathered and estimated. In the schedule show for each task the:
 calendar dates
 task duration
 resource capacity.
The desired result is to have a realistic project schedule that will provide a baseline for monitoring and measuring the project performance.
An accurate schedule is the most important tool for implementing a project and coordinating resources. If you are too short or too long with your time frame then the project will likely go over time or over budget. You must be realistic about the time required to complete a project.
A schedule lists tasks, in step-by-step order, and indicates what to do, who is to do it and the time that is allocated to complete it.
To schedule effectively you need to know:
 fixed deadlines
 details of each task
 the order in which tasks will be done
 how each task will be done
 the number of staff and/or resources available to complete the task
 estimates of the time needed to complete each task
 when each task must be completed
 how task completion will be measured
 the number of tasks to be completed within a time frame
 external and internal environmental factors that may influence performance.
Developing a project schedule
Once you have correctly sequenced all tasks, you should schedule all the activities required for each task. There are seven common steps to follow to create the schedule:
1. estimate the time required to complete each activity
2. determine if there is a critical path sequence for activities
3. determine the likely dates for each activity
4. review the schedule against resource availability
5. chart the final schedules and distribute it to the project team
6. make adjustments based on team feedback
7. approve the schedule and distribute.
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A simple schedule
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Schedule control
There are many reasons to amend or change a project schedule and many issues arise from doing so. This is why a realistic project schedule is important to successful project management. Strong leadership is important to make sure that project schedules are met.
There is constant pressure from stakeholders/sponsors to shorten schedules and from suppliers and contractors to lengthen schedules, so you will need to have strong negotiation skills to maintain control of the project timetable.
The importance of correctly negotiated and realistic milestones in the scope document will be the measuring tool for any rescheduling requests. Requests for changes in the schedule should go through a change management process, be assessed for relevance and impact, and then approved by a properly implemented change control group.
Tools for prioritising and scheduling tasks
Work Breakdown Structure (WBS)
Of the many methods available to define the activity and tasks that make up a project—the one that is most used and is easiest to understand—is the work breakdown structure, usually referred to as a WBS.
Using WBS, we represent the goal, objectives, tasks, sub-tasks and work activities using a hierarchical tree which shows all of the levels of breakdown. The top branch represents the goal of the project and the bottom branches represent the individual work activities to be performed.
It could be a hierarchical listing like a table of contents in the front of a book or a graphical diagram for displaying the WBS, like the WBS chart shown below. You will notice that it looks a little like an organisational chart for a company.
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An example of a WBS chart for installation of animal litter bins and bag dispensers in all council parks
Gantt charts
Gantt charts are the most common means for displaying project schedule information. Gantt charts use a list of tasks or activities required to complete the project. The timing for each task is represented as a series of horizontal lines or bars under a calendar scale.
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Here is an example Gantt chart. Notice that task timings can overlap, be broken up or have gaps between tasks.
Critical path method
Critical path analysis is a technique for calculating the duration of the project by analysing and calculating the duration of the longest path (the critical path) through the project.
Typically you are trying to determine the shortest path to complete a project. However, the critical path method looks at all tasks within the project and based on their sequence measures the path through this sequence that could potentially take the longest time. This helps estimate a realistic timeframe in which to complete the project.
In the example critical path chart below the shortest path is task A to C to G and would take only 7 days. However, a more realistic timeframe is represented via task A to C to E to G which could take up to 12 days.
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Example critical path for a series of project tasks
PERT analysis
PERT analysis is a technique that is used when there is a high degree of uncertainty about the
individual activity duration estimates. PERT calculates the critical path method but uses
statistically weighted average duration estimates.
PERT uses probabilistic estimates, which are activity duration estimates based on three criteria:
 optimistic duration
 most likely duration
 pessimistic duration.
The three estimates are then statistically averaged using a formula called the weighted average
formula. Deriving this formula is outside the scope of this topic but an example is provided below.
The formula is:
ED =
BD + (4LD) + WD
6
Where:
ED = Estimated event duration
BD = Best duration – shortest time needed to
complete the activity
LD = Likely duration—the time most likely
needed to complete the activity
WD = Worst duration—the longest time
required to complete the activity.
Risk management
Risk management is a major issue in project management. Your project plan should include a risk
management plan.
A risk is something that may happen and if it does, it will have a negative impact on the project. A
risk must also have a probability of occurring that is something above 0% and less than 100%. If
there is no chance of it happening, then it is not a risk. If it has a 100% chance of occurring it is a
certainty rather than a risk and must be factored into the project planning.
Task A
Task B
Task D
Task C
Task E
Task F
Task G
1 day
1 day
3 days
6 days 2 days
6 days
5 days
4 days
6 days
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The second thing to consider is what type of impact it will have on the project. If it will have a neutral or positive impact, it is not a risk. Suppose we said a risk was that we would find the project less complicated than we thought, and could finish early. Unless finishing early has a negative effect on the project, it is not a risk.
There are four stages to risk management planning:
1. risk identification
2. risk quantification
3. risk response
4. risk monitoring and control.
Risk identification
In this stage, we identify and name the risks. The best way to do this is to run a workshop with the project team. Use a combination of brainstorming specific project risks and reviewing standard risk lists. There are different sorts of risks for each project and you need to decide on a project-by-project basis what to do about each type of risk.
Business risks are ongoing risks that are best handled by the business. Consider Happy Pizza P/L. If the project to install a new accounting system cannot meet the end of financial year deadline, the business area may need to keep their existing accounting system for another year. Happy Pizza P/L can respond by developing a contingency plan to use the existing system for another year.
Generic risks are risks to all projects, for example the risk that suppliers might not meet project deadlines. Each organisation will develop standard responses to generic risks.
Risks should be defined in two parts:
 the cause of the risk (such as suppliers not meeting deadlines, staff absences, contractors not available, etc)
 the impact of the risk occurring (such as exceeding the budget, milestones not achieved, etc).
Risk quantification
Risks need to be quantified in two dimensions. You need to assess the probability of the risk occurring as well as the likely impact on the project if the risk does occur. For simplicity, rate each on a 1 to 4 scale using a matrix similar to the one below—the larger the number, the larger the impact or probability.
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Risk quantification matrix
Note that if probability is high and impact is low then this is a medium risk, whereas if the impact of a risk is high and probability is low it is high risk. A remote chance of a project-destroying risk warrants more attention than a high chance of a small problem.
Risk response
There are four things you can do about a risk:
1. Avoid the risk. Do something to remove it, for example, use another supplier if the current supplier cannot deliver on time.
2. Transfer the risk. Make someone else responsible. Perhaps a vendor can be made responsible for a particularly risky part of the project, or insurance can be obtained to provide cover in the event of the risk occurring.
3. Mitigate the risk. Take action to lessen the impact or chance of the risk occurring. If the risk relates to availability of resources, identify alternative suppliers and draw up agreements to allow suppliers to be changed if deadlines are not met.
4. Accept the risk. The risk might be so small that the effort to do anything about it is not worthwhile.
A risk response plan should include the strategy and action items to address each risk. The actions should include what needs to be done, who is going to do it, and when it should be completed. Below is a sample risk response plan.
Sample risk response plan for installation of animal litter bins and bag dispensers in council parks
Risk Title
Risk Details
Risk Priority
Mitigation Strategy
Failure to meet schedule
Failure to meet schedule due to bad weather, staff shortages. Constant bad weather over the short project time frame could delay the project.
Low
Accept. If this does happen it will only push back the project a short time.
Cost overruns for installing bins
External costs include contractor for installing some of the bins, possible overtime, cement and damage to tools.
The cost of the bins has not been included as these have already been purchased.
Low
Fixed price quote obtained from contractor for their two days of work.
Bins will be stolen
The bins may be stolen from park locations.
Low
Cement bins in to minimise risk of being removed, pushed over or stolen.
Insure—Council must maintain insurance to cover the theft of council property
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in public reserves.
Risk monitoring and control
Risk management is not a complex task. If you follow the four steps (risk identification, risk quantification, risk response, risk monitoring and control) you can put together a risk management plan for a project in a short space of time. Without a plan, the success of the project, and your reputation as a project manager, are on the line. Follow these steps and you will increase your chances of success.
Cost management
Cost management is and important area of project management especially in profit-focused corporate contexts. Companies are always conscious of budget overruns and cost restrictions in today’s competitive markets.
Project cost management includes all the processes required to make sure the project is completed within the approved budget.
As the project manager, it is crucial for you to make sure that the scope document is as accurate as possible, so that the approved budget is based on estimates that are as realistic as possible.
An accurate scope document also helps to make sure that the only work that is done on the project is work that is defined in the scope. Remember—it is your job as the project manager to constantly satisfy the needs of the stakeholders while keeping costs down and under control.
Project cost management processes include:
 resource planning
 estimating costs
 estimated costs and budget.
Resource planning
To estimate, budget and control the costs of a project, you, as the project manager, must determine what resources are required and in what quantities, to complete all the project tasks. This includes people, equipment, facilities and materials.
When you have determined this, you will have a detailed list of resource requirements. To make sure that resource estimates are as accurate as possible, draw upon the skills of people with experience and expertise in similar projects.
Estimating cost
Costing a project is not an easy task. All projects are different and you may not have a previous example to assist you in costing the current project. You can refer to audit reports and budgets from previous projects, but these may only provide ideas, rather than real costs.
One of the key inputs to the costing process is the detailed WBS that you developed at the start of the planning phase.
With very large projects this estimation process is usually undertaken in three stages.
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1. Early rough estimate is usually done well before the start of a project or even before a project is initiated. This estimate is usually made with a -25% to + 75% accuracy.
2. Budgetary estimate is used to allocate funds into a company budget for forecasted expenditure in the upcoming 12–24 months. The accuracy of this estimate is usually tighter and about -10% to + 25%.
3. Definitive estimates are made after the project has started and usually provide the accurate estimate for project costs. These estimates are usually based on the performance of the project to date. The accuracy of this estimate is usually approximately -5% to + 10%.
There are typically four major cost areas that are involved in any task. They are:
1. labour costs
2. equipment/materials costs
3. other direct costs (travel, telephone, contracted services etc)
4. indirect costs (for example company overheads, depreciation etc).
You can take either a top down or a bottom up approach to costing.
The top down method
The top down method of costing can be difficult—it relies on senior management estimating a budget for a project from their experience and then allocating funds to the project team for execution. This only works if the senior management have allocated carefully and they have significant project experience and precedents of similar projects on which to base costs. Estimation done this way puts a limit on the project, which can severely limit the tasks that can be included in the project.
The bottom up method
The approach to costing preferred by most project managers is to estimate from the bottom up—to cost each task and subtask then work out the total cost from that. If the task is repeated many times throughout the project then you can use this as a standard unit of work cost. This is also the most accurate method as it involves input from the staff and providers of materials and services. This method reduces the risk of tasks or subtasks being left out of the total costing for the project.
Contingency allowances
When all task costs have been totalled and you have a final cost for the project, don’t forget to add in a contingency allowance. In project management terms this is ‘padding’ to allow for errors in estimating or unexpected cost occurrences.
Estimated costs and budget
Once you have added up all the costs for all the tasks and activities and you have a final cost estimate for the project, you usually present it to the project sponsor and stakeholders who are providing the funds. After assessment and negotiation, the project sponsor will either accept the costing for the project and approve funds or the project scope or methodology may have to be re-
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evaluated to reduce costs. When the funds are allocated this becomes the project budget, which you will use to control and track the project expenditure against.
A sample budget is shown below.
Sample budget for installation of animal litter bins and bag dispensers in council parks
Proposed budget or financial constraints for the project
Overtime wages/contractor payments
$ 7,000
Bins & posts
$ 15,000
Materials (cement, etc)
$ 2,000
Annual bag replacement program
$ 6,000
Annual additional charge by Waste Management Co
$ 18,000
Total cost
$ 48,000
Compile your project plan document
It’s now time to consolidate all the work you’ve done into your project plan document. It is a document that you and others can refer to for all the vital information about stakeholders, schedules, team members, tasks, quality management, cost management, and risk management.
Sections in a project plan document
For medium to large projects, the project plan is definitely the key document in the project. If you have a project like this you should consolidate all of your planning documents created so far into one project plan document.
For smaller projects with established work teams, you may be able to use just the scope document, along with budget, work schedules and the risk management plan as your total project planning tools.
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Remember that the project plan is a positive document that represents the move from planning to execution. It is simultaneously a tool for guiding management decisions, control and reporting. It is a master plan to pull together all the various pieces of information that you have developed in the planning phase. It tells you:
 where you are
 where you are going, and
 how you are going to get there.
Project plans can vary from a very simple single page document with some objectives, a task list, resources and budget, to a complex report accompanied by books of estimates, task lists, Gantt charts, critical path analyses etc.
Here is a suggested format for a large project with a detailed project plan. The plan has several sections:
 executive summary, or overview, including the project goal
 project objectives and deliverables
 project milestones
 project assumptions
 project risks
 project work breakdown structure
 resource details
– human resources
– equipment
– materials and supplies
– budget details
– project organisation
– operating procedures
– assessment and review criteria
– contacts
– project approvals.
There is no fixed rule for the level of detail that should go into the project plan. The aim is to balance the time taken to plan the project with the importance and time taken to implement the plan.
If a new telephone system is to be installed in an office of five staff then a two week planning phase is unnecessarily detailed.
If your project is to build a new office building that will cost $25 million, take 16 months to complete and involve over 100 people, then three months of planning will be a small cost to pay for successful completion of the project.
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Remember, the most important general management skills you will use are planning and communication. You have to meet with many people to help determine the information that you need to correctly estimate work durations, costs and resources.
Project Plan Sign-off
It is important that you receive agreement on the project plan. Agreement on what will be dleivered, how it will be deivered, when, and costings. It will be decided at the start of the project who needs to be involved in this sign-off and what needs to happen to allow those parties to sign-off. For example you may be asked to present the project plan in a formal meeting and allow discussion or you may have a one on one meeting to review the physical plan. Regardless the relevant parties need to sign the plan to formalise it’s acceptance before you move to the next phase.
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Topic 2 Activities
Activity 1: Workplace Activities
Introduction
Research the answers to these questions in your own workplace or a workplace you are familiar with. You can check your answers against the guidelines below, but naturally your answers will vary depending on the workplace.
Questions
1. What reasons can you think of that may cause the duration of a task to be longer than the actual work hours?
Answer:
2. What are the costs that relate to your project and how can you budget for them?
Answer:
3. Identify the risks associated with your project and fill out a plan.
Answer:
Check your answers
Question 1
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You may have included such things as delays caused by suppliers, rain, strikes, illness, etc.
Question 2
Every project will have a very different budget and different costs associated with it. If you have talked with the various people involved and identified where the costs will lie and what they are estimated to be, you should be able to itemise them with some accuracy. Remember to include all labour, materials, other direct costs and where necessary, indirect costs.
Question 3
Each project has risks associated with it. Remember to talk with others in the team to help you to both identify risks and devise a strategy to manage them.
Activity 2: Time Planning
Background:
ACME Bathroom Renovations are a busy bathroom renovation company. Mr and Mrs Smith received a quote for their bathroom from ACME for $6,000. $3,000 for materials and the rest for the 40 hours labour needed to complete the work.
The following information is known at this time:
 The materials including the tiles to do the work will not be able to be delivered until 8am Wednesday 19th March.
 Easter is from Friday 21st – Monday 24th March inclusive.
 Gary and Tim are paid $50 per hour each with double time after the first 8 hours and double time on weekends and public holidays.
 ACME want to maximize the profit from the renovation.
 Mr and Mrs Smith want minimum inconvenience to their bathroom. Currently their bathroom is not usable as the old tiles have been removed and their bathroom is not waterproof.
Activity:
1) Produce a time line showing each day the work will be undertaken along with the resources, cost and total cost. E.g.: Monday 24th March Tuesday 25th March
Gary and Tim – 4 hours each
Gary and Tim – 8 hours each single
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Monday 24th March Tuesday 25th March
double time
time
Cost = $800
Cost = $800
Total Cost = $5000
Note: There is more than one right answer.
2) How does this show the relationship between time and:
a) Resources:
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
b) Risk:
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
c) Costs:
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
d) Procurement:
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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Activity 3: Budgeting
You work for a global manufacturer of consumer electronics. There is an international tradeshow
in Brisbane to which seven of your sales team will be attending. This team comes from offices all
over the world.
Before attending the Brisbane tradeshow the sales team will be stopping off in Sydney to attend a
one day, new product training session.
You have been given the task of budgeting this project. The international offices are covering the
cost of flights to Sydney. However you must research the estimated costs for the following:
 Transport from the airport to the training venue.
 Hire of a training venue at a hotel near the airport.
 Hire of computer and audio visual equipment for conducting the new product training.
 Staff costs for yourself and a products specialist.
 A catered lunch on-site for the attendees.
 Overnight accommodation for the seven attendees.
 Transport from the training venue to the airport.
 Weekday morning flights from Sydney to Brisbane for the seven attendees.
Activity 3: Quiz
Use this quiz to check your knowledge of the project planning stage.
Question 1:
What is the Work Breakdown Structure (WBS) used for?
1. to identify project risks
2. to show the goal, objectives, tasks, sub-tasks and work
3. to estimate cost
4. to provide a project timeline and schedule
Question 2:
Which of the following is not a risk?
1. that the project may be delayed by tardy suppliers
2. that work will need to redone due to quality issues
3. that the sponsor will change the scope part way through
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4. that public holidays will disrupt the schedule
Question 3:
You should ensure that the project budget is as…
1. close to achieving actual costs plus 20 percent for error
2. low as can be achieved
3. realistic as possible
4. comprehensive as possible to allow for every possible risk
Question 4:
Which of the following is a common tool used in schedule planning?
1. resource list
2. Gantt chart
3. work break down structure
4. quality audit
Question 5:
The critical path is the sequence of tasks that forms the:
1. most likely duration of the project
2. shortest duration of the project
3. least likely duration of the project
4. longest duration of the project
Question 6:
The PERT technique is generally used:
1. because it is a more graphical technique than others that are available
2. because it involves less work
3. when there is a high degree of uncertainty about the activity duration estimates
4. because it avoids complex calculations
Question 7:
Projects should be broken down into the following units from largest to smallest
1. project goal, project objectives, tasks, and activities
2. project objective, project goals, tasks, and activities
3. project tasks, activities, objectives, and goals
4. project activities, tasks, objectives, and goals
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Question 8:
A defined task should contain which of the following. Select all correct answers.
1. duration
2. cost
3. resources
4. staffing
Question 9:
Task duration is the number of hours required to complete the task. True or false.
1. True
2. False
Question 10:
A risk that is highly probable but will have a low impact represents what level of overall risk?
1. low
2. medium
3. high
4. critical
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Topic 3 Administering and Monitoring the Project
All of your planning will be wasted if the plan is not implemented and monitored properly. In this topic we will look at the elements that lead to the successful implementation of a project: recruiting the right team, obtaining resources, monitoring and assessing the project, and managing risk.
For a project to be successful administration and monitoring systems need to be established early in the life of the project. An understanding of these systems must start in defining stage when formulating the scope of the project. These systems should then be detailed in the project plan. It will be up to the project manager then, to make sure that these systems are maintained throughout the project.
Administration is essentially the management of all the activities that allow a system or organisation to function.
There are many major and minor procedures to sort out. The budget needs to be managed and measures for accountability need to be set in place. You need to establish work flow patterns, and there will be day-to-day office work to be done.
Administration also includes the organisation, attendance and taking of minutes at meetings. It includes management of correspondence, ensuring that project files are well structured, appropriately stored, named and maintained, and there is a regular review of processes for improvement.
In a project, there is a tendency to take administration duties for granted, or to resent them, and leave these tasks for someone else to do. However, ignoring them can lead to major problems, particularly when something unexpected happens, or when a dispute arises.
Some of the systems that may be required for the successful management of projects include systems for:
 planning and monitoring
 financial management including, budget allocation/funding, income generated and expenditure
 record keeping of correspondence, surveys, test results, and contracts
 to record time allocated and spent on each aspect of the project as well as reports of progress, performance against milestones and project outcomes
 archiving and management of documentation, samples, prototypes etc
The 5 phases in a project
There are five general phases in a project:
1. initiate phase
2. plan phase
3. organise phase
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4. control phase
5. close phase.
This topic takes a close look at the organise and control phases.
Major activities that occur during each project phase
Initiate
Plan Organise Control
Close
Define the overall project goal
Develop a detailed task list Obtain necessary resources Lead and support the team
Complete final deliverables
Identify all stakeholders, their needs and expectations
Estimate all task times and all costs Recruit necessary personnel Establish control tools and methods
Write and issue a final report, close the accounts, hand over project files
Identify the project objectives
Arrange the best sequence of all tasks Organise and lead the project team Monitor the project plan and make any necessary corrective actions
Release all resources
Identify initial work and resources and basic milestones
Develop a workable schedule and identify critical milestones Assign all project tasks Assess and implement change
Obtain stakeholder acceptance and signoff
Identify all constraints, assumptions and risks
Write a detailed project plan and obtain approval from stakeholders Communicate with stakeholders and all necessary parties Prepare and distribute status reports
Evaluate the project
The organise phase
In the organise phase you will:
 obtain resources
 recruit personnel
 organise and lead the project team
 assign all project tasks
 communicate with stakeholders and all necessary parties.
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Obtaining resources
There are seven fundamental resource types that are required to implement almost any project. The actual quantity of each resource should be identified in the detailed work breakdown structure (WBS) and schedules that make up the project plan.
The seven fundamental types of resource are:
1. people
2. money
3. equipment
4. facilities
5. materials and supplies
6. information
7. technology.
Always start with the people first. Other materials and facilities are useless without the right project team.
Recruiting personnel
As the project manager, you may not be solely responsible for determining who will be part of the project team. Your organisation may have particular recruitment processes and human resources staff that can assist you in finding the right people for the project. During the recruiting process you must:
 determine the skills required for each activity by developing a skills requirement list
 determine where the people will come from—existing internal or new external staff or contractors
 select the right team members, either internally or externally
 assign activities to each team member
 establish an appropriate staff hierarchy and chain of responsibility for the project.
Identifying the skills you need on your team
Your WBS (Work Breakdown Structure) will list all activities that are to occur during your project. It is now time to use this to develop a skills requirements list based on what you need to complete each activity. Here is an example:
Activity
Skills required
Estimate building costs
Building project estimator with experience in estimating building costs for a building of this type and size
As you work through the skills requirements list, you list each activity required and then the skills needed to complete that activity. You may need more than one person to provide the skills
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required. In fact in many cases the skills might need to be provided by teams made up of a number of people with the same skills, for example, a team of architects.
Selecting the right candidates for your team
You can compare a project team with any other team that works together in a department. When you are selecting staff, it is important that you look for people who have as many of the following characteristics as possible:
 commitment to the project goal and its completion
 flexibility in changing work activities from one task to another
 technical competence
 being task-oriented and able to work with schedules and resource constraints
 being a team player, and not self-oriented
 ability to work across formal structures and if necessary reporting to multiple managers
 being open to suggestions, and showing a willingness to admit error and be corrected
 knowledge and experience with project management tools.
As a project manager, you will also need to keep a team member record. This lists all project members, their skills, when they joined the project and when they left the project. A simple table document or spreadsheet can be created to record this information. See the example below.
An example of a team member record
Team member name
Skills
Date entered
Date departed
George Williams
project management skills
construction supervisor
12/3
9/12
Beth Carillios
Building quantity surveyor and estimator
15/4

Alan Peters
Construction foreman and WorkCover OHS accredited trainer
20/4
17/12
Employing external project staff in either permanent positions or as contractors is all part of the process. Hiring or contracting staff is necessary when appropriate internal staff are not available.
Developing your team
As the project manager you are usually responsible for the management of all aspects of the project, such as cost, resources and deliverables. But just as important is the responsibility to the project staff to build a cohesive and effective team, by providing a positive and supportive working environment. Your people are the most important resource of the project, and without them the project will fail.
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You must apply all your principles of communication, leadership and organisation to build the best team. It is your job to:
 listen
 support
 resolve conflict
 motivate
 train
 advise
 lead
 recognise and reward achievement
 communicate.
Assigning all project tasks
Once the key team members are in place and the structure is set up, you can start gathering together the other resources required for the project and then assign the tasks and work activities to the team members.
When we break down the project into the complete list of tasks, we produce the WBS. Tasks should be broken into manageable, unitised chunks of activities that share common skills, resources and can be started and completed within a reasonable timeframe.
It is important that you clearly document all work activities, providing a description of the tasks and resources that make up each activity. Work activity documentation is then standardised across the project. This is helpful because:
 It informs all parties of the tasks in sufficient detail, what the deliverables are, the expected completion date, and the relationship to other tasks.
 It is presented in a format that can be used to record progress. This in turn can be used for regular status reporting.
 It serves as a clear reference for any conflicting issues that may occur.
Scheduling of work activities always depends on resource availability and time constraints imposed by the project itself.
You will usually schedule tasks to maintain a consistent use of available human resources over the life of the project and, where possible, try to avoid times of peak activity.
Communicating with stakeholders
It is important to have an open communication and consultation process with all stakeholders throughout the project to:
 determine whether targets are realistic
 make changes to the plan to accommodate the feedback received and reasonable concerns of stakeholders
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 monitor the implementation process to ensure that everything is on target
 ensure that everyone is aware of progress and how their performance is impacting on others
 organise training for people who need it in order to deal with new work methods.
Once you have established a team of project staff and assigned project tasks the core activities of the project can begin. It is during this stage that you must maintain control of the project to keep it on track. The next section of this reading provides an overview of the control phase.
The control phase
In the control phase you will:
 provide team leadership and support
 establish control tools and methods
 monitor the project plan and make any necessary corrective actions
 assess and implement change
 prepare and distribute status reports.
Team leadership
There are many textbooks on the subject of team leadership and leaders. It is beyond the scope of this topic to teach these skills, but it is important that you recognise the skill areas that you must develop to succeed as a project manager. You can successfully do all of the management parts of the project: planning, reporting, analysing and organising, but if you fail as a leader, then your project is also in danger of failing.
Here are some useful tips.
 As the team leader you can arrange discussions around the needs of the organisation for innovative ideas.
 You can introduce team members to techniques such as brainstorming that can help the innovation process.
 You can support team members when setbacks happen. If the team puts a proposal to senior management and it is rejected, that can demoralise team members. Your role as a team leader is to work with your team to find out why an idea was rejected, and discuss what they will do in the future. Teams need feedback so that they can improve their skills.
Studies have found that successful project managers have several common characteristics that make them successful. Successful project managers:
 are leaders by example
 are technically competent
 are decisive
 are good communicators
 are team players
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 support their team members
 can stand up to upper management when necessary
 are visionaries.
Leadership styles
There is a wide range of leadership styles that are effective across many situations, but we will consider three basic styles that you can use to manage your projects:
 People-oriented leaders develop rapport with team members and generate an open, positive environment for the team.
Task-oriented leaders focus on getting the tasks decided on, organised and assigned, as well as evaluating performance.
 Reward-oriented leaders use meaningful rewards that correlate to the level of results and the person’s efforts. These rewards can range from money to simple support and acknowledgment for work well done.
A successful project manager has the ability to vary the leadership style to suit to individuals and teams.
Controlling the project
Any number of foreseeable and unforeseeable events can quickly prevent a project from progressing as you had planned it. These might include:
 failure to meet schedules
 cost overruns
 not managing risks
 specifications not being met.
As the project manager, you are responsible for ensuring that the project goal and objectives are met and that everything progresses as planned. The quickest way for a project to go off track is for the project manager to fail to ensure that effective control and quality assurance systems are put in place.
Control is an ongoing activity, just like quality assurance. To control a project you need to:
 monitor usage of human, financial and physical resources
 compare the planned status of the project to its actual status
 take corrective action if necessary.
Corrective action may include
 modifying the work being done
 modifying the project objectives
 modifying the timeline
 modifying expenditure
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 coaching, training or performance counselling for staff.
Corrective action may also mean you must make changes to the original plan. If so, you must do this in consultation with project stakeholders and the project sponsor.
Managing a project is an ongoing cycle involving monitoring, controlling and directing work
Why are project controls necessary?
Project controls are usually designed to focus on the three major aspects of project measurements—cost, time schedules and performance levels—as well as managing change. Project controls are necessary to:
 monitor and track progress, by having in place a periodic reporting system that identifies the status of every activity in the project, for the current reporting period as well as for the entire project
 detect variation from the plan, by using exception and variance reports that provide information on activities and resources that vary from what is expected
 take corrective action by examining alternatives, and making modifications to the schedule and resource usage to correct any detected deviation from the plan
 assess, approve and manage change.
If you use these controls effectively you will find that any discrepancy from the plan is identified quickly. For example, if progress reports are made on a monthly basis, an event at the beginning of the reporting period may have thrown the project off track, and by the time the monthly report is made any delays caused by this event may not be able to be made up. Daily or weekly monitoring may help you to solve the problem quickly and get the project back on track.
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Project controls from the Project Management Body of Knowledge
This relates to the Project Management Body of Knowledge Monitoring and Controlling process group. This lists a number of methods to measure and analyse progress against the plan, identify variances and take corrective action.
These include:
Change control processes which review all suggested changes to the project, evaluate the impact of these to scope, time, cost and other impacts, decide whether to accept or reject the change (as well as the people who are authorised to make this decision) and if accepted ensure project deliverable reflect the change, update the scope, time, cost and other aspects of the project plan.
Control of the schedule by gathering work performance information and forecasting ahead. Work performance information can be gathered by a number of means such as meetings, timesheets, inspections.
Control of costs again by collecting work performance information (remember time = money) and forecasting costs for the future.
Quality control is covered in detail below.
Control of risks by implementing risk strategies, tracking identified risks, identifying new risks, monitoring risk ratings. When change requests are evaluated ensure they are evaluated for change is risk to the project.
Control of resources by ensuring they understand the tasks to be completed and that only tasks in scope are undertaken.
Change control
Change control gives control over the scope of the project. The three main focuses of change control throughout the life cycle of the project are:
 identifying that a change is necessary and making sure that the change is beneficial
 determining that a change has taken place
 managing the actual changes as they occur.
Change control is also called change management, and in a project it can use a formal documented process called a change control system. The aim of change management is to:
 maintain the integrity of the performance measurement baselines (all changes must be reflected on the scope and time line)
 ensure that changes required to the project scope are reflected in the scope definition.
A project change request form can be used for all requests for a change in the project. Such requests might be submitted to the project manager for consideration and processing. The form should include:
 a request number (for tracking)
 the name and contact details of the person making the request
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 the date of the request
 the change and reason for the change
 project manager’s approval or denial
 reasons for denial
 special conditions attached to the approval
 the project manager’s signature
 a summary of the effect of change on the project in regard to technical issues, budget, deadlines, and other projects
Quality control
Quality control an important sub-part of the overall control mechanisms for a project. Quality control is the means of consistently meeting the negotiated expectations of stakeholders in a project. It is something that every organisation strives to achieve to give it a competitive edge in industry. Quality objectives are often expressed in a policy document that reflects the standards the organisation wishes to achieve and the responsibilities associated in meeting those objectives. Project management needs to follow organisational policy in this regard.
Quality management is perhaps the most difficult area of expertise in project management to define. It helps to remember that the customer ultimately decides if quality is acceptable, the basis for quality exists in the original intentions of the project and that quality control a continuous process of evaluation and improvement.
Project quality management has three main processes.
 Quality planning includes identifying which quality standards are required and how to measure and satisfy them.
 Quality assurance involves the regular evaluation of overall project performance against the quality standards.
 Quality control involves monitoring specific project deliverables to ensure that they meet the relevant standards and identifying ways to improve overall quality.
Planning for quality assurance and control
At the start of a project it is critical to plan for quality assurance. Planning for quality involves a simple three-part process.
 Identifying all quality stakeholders in the project such as the sponsor, functional managers, suppliers, end-users, and you as the project manager. You will then meet with all interested parties and determine their expectations of quality, and get agreement on the objectives and standards for the project.
 Determining quality objectives based on the stakeholders requirements. These are statements that broadly describe the quality outcomes that will be achieved.
 Determining quality standards and levels of achievement that must be met must during the project. These are developed to support the quality objectives set by the stakeholders and may also be set by industry benchmarks, such as ISO 9000 (quality management).
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The project manager must make sure that quality standards are incorporated into the project plan and that there are tasks and milestones in the schedule to measure quality at the appropriate time.
Quality assurance
For large projects, a quality assurance group may be formed, and for smaller projects quality assurance may fall to one person. Quality assurance includes all of the activities related to satisfying the relevant and agreed quality standards that have been set for the project. Another goal of quality assurance is continual quality improvement.
Quality assurance is usually determined by ISO 9000 standards, which are a series of international guidelines on quality management. If a company has ISO 9000 accreditation then these guidelines are part of normal business.
Quality audits
Quality audits are a review of specific quality management activities and are one of the tools of quality assurance. Project plans and design specifications are reviewed to ensure that all the steps of the development process are being carried out correctly. As project activities are completed they are usually formally documented. This documentation can become one measure of quality.
Quality control and continuous improvement
One of the main goals of quality control is to improve, and there are three main outputs from quality control evaluation.
 Acceptance decisions determine which of the outputs/products of the project are accepted or rejected by stakeholders.
 Rework directives are actions taken to bring products up to stakeholder expectations when they have failed to meet quality measurement.
 Process adjustments correct or prevent further quality problems that have been identified. Adjustments can be procedure change, supply improvement, material change or increased resource allocation.
There are many tools and techniques that use statistical sampling methods to analyse quality in a continuous way. Theses will usually use data tables or graphs to show variance from an expected level. A detailed look at these methods is beyond the scope of this reading.
How do I manage problems?
No matter how closely you monitor your project, problems will usually occur. This means that as a project manager you will need good problem-solving and decision-making skills. Here is a process that will help you.
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Three steps in problem-solving and decision-making
When you apply this process to project management, it’s important to remember:
 track progress of the project to identify problems early
 respond quickly to problems once they occur
 identify the cause of the problem, not the symptoms that highlighted it
 find the best solution to solve the problem quickly and efficiently, and involve relevant team members
 compromise if necessary to get back on track
 consult stakeholders and gain their approval when required.
Find the real cause of the problem
When a problem happens, you need to find the real cause behind it. You can usually do this by asking a series of ‘why’ questions:
 Why did the issue arise?
 When this question is answered, ask yourself ‘why’ again and again.
 When there is no longer an answer to the ‘why’ question you are probably close to the cause, and from there you can develop a strategy for solving the problem.
Here’s an example.
Your project tracking shows that your workforce on your building site is not completing as many tasks as had been planned. An easy solution would be to add additional workers to get back on track or to work overtime. But what is the cause of the problem?
If you talk to the workers you might find, for example, that the materials they are fitting have not been cut accurately by the supplier. They have to modify them before they can be fitted. This is the cause of the problem, and the supplier should be made to deliver as contracted and, if the contract has penalty clauses, to pay for the additional work.
Keep an eye on the risks to your project
In the planning phase of your project you will have completed a risk analysis and quantification, and developed contingency plans to reduce the negative impact these can have on the project.
In the control phase, you must monitor these risks.
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The risk analysis identifies which risks are most likely to occur and have the greatest impact on the project. The contingency plans may have identified specific risk monitoring strategies for these risks, and identified who in the team is responsible for this task. Usually risk is monitored by those who are closest to the work being done. They need to monitor and report on the identified risks and look for potential new risks.
If the risks become real issues, then they need to be monitored and you must take appropriate action to correct them and to bring the project back on track. The type of correction you take depends on the project, the impact, and the predetermined strategies and plans.
After reviewing the problems, asking all the necessary questions and assessing the techniques for managing the problem, you may think that you should be able to successfully resolve every one. In fact, you may find some problems do not have good, clean solutions.
Sometimes it is difficult to determine any good options for resolving a problem. In some cases, issues arise that are hard to resolve because of difficulty in gaining approval and resolution among a number of alternatives. In other cases, you may have a number of options that are less than optimal, and the ultimate resolution may be one that is the least offensive. Solving problems comes down to identifying the cause of the problem and developing and implementing the most workable solution.
What records do I keep and when do I do this?
You must communicate and be involved in all aspects of the project if you are going to succeed as a project manager.
Communication refers to skills and techniques applied to ensure that all stakeholders and members of a project team receive the information they need, when they need it. It is about gathering, generating and distributing information, as well as the storage of all project information.
Be aware that too much information is not necessarily a good thing, while keeping the following in mind:
 keep progress reports simple and easy to read
 distribute reports to the right people
 remember that stakeholders have an interest in project costs as well as overall progress
 keep project team members informed of the status of task completion and progress against task lists.
All this needs to be done on a regular basis. The three ‘w’ approach to good communication skills can be applied to good effect in achieving this. Determine:
 who needs to know what
 when they need to know it
 what format they want the information in.
Depending on the size and scope of your project there may be many records that need to be produced during the project lifespan including:
 project status reports
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 reports required by law
 injury or accident reports
 time sheets
 employee records
 financial records
 end of project reports.
Small projects
Small projects usually do not need more than basic project reporting. If, as the project manager you are doing hands-on work on the project, you probably have a very good idea of the overall status. However, if you are not working on the project, you may need a formal status reporting process. The following process would be typical:
 Project team members send a status update to the project manager on a weekly basis. This report covers common issues such as performance against timelines, likely need to change schedule, tasks and budgets. If suppliers or contractors are working off-site then you may request they provide project reports against their delivery schedules and budgets.
 The project manager sends a status update to the project sponsor and stakeholders on a bi-weekly or monthly basis. However, be careful about monthly reporting. If the project is very small, the client may get no updates before the project is completed. This does not give them an opportunity to respond if they see anything unusual. The project manager should report the project status bi-weekly or weekly in these cases.
 The entire project team should attend project status meetings. The meetings should focus on the project status against the project work plan and try to uncover any current issues, as well as scope change requests or potential risks. The client should be invited to attend, but their attendance is not compulsory. The frequency of the meetings depends on the timetable for the project and the need to get information in a timely manner. For instance, if the project runs for three weeks, the team might want to meet twice a week. If the project runs for eight weeks, weekly meetings are probably appropriate.
Larger projects
For larger projects the communication should include formal status meetings and project reports.
 The team should attend project meetings on a weekly or bi-weekly basis. The client should be represented at the project meeting. If the project manager prefers, there could be project meetings for the project team and a separate meeting with the client. There should be a standard agenda for the meetings and each meeting should be no longer than one hour. In general, the purpose of these meetings is to communicate status, not solve problems.
 The project manager should send project reports to all stakeholders on a bi-weekly or monthly basis. Depending on the financial reporting cycle, the monthly project report should include a financial status.
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 The project team members should send a weekly or bi-weekly project report to the project manager detailing their progress during the reporting period. This information is used by the project manager to update each assigned activity in the work plan. If the project manager understands the current detailed status for each team member, the project report may not be required. This report is in addition to the project meeting.
 On a monthly basis, usually after the financial systems close, the project manager issues a formal monthly project report to all the stakeholders, including financial information about the project.
Information to include
There are generally three types of information that may need to be included in project reports and other forms of project communications.
 Mandatory—this generally includes project status reports, legal requirements, financial reporting, etc. This information is sent out to the required recipients such as key project team members, sponsors/clients and management staff.
 Informational—this is information people want to know or that they may need to know to do their job. This information is usually made available for people to read, and may be sent to all or to selected project team members, suppliers, contractors, sponsors or clients.
 Project marketing—this may include project marketing communication, which is designed to motivate and generate enthusiasm among staff to support the project and its deliverables. This type of information is particularly important when you want to promote a project that aims to implement a change in organisational culture or work habits.
What goes in the project report?
Project reports are often not as useful as they should be. This is true for team members who submit project reports to the project manager, as well as project managers who are submitting project reports to their stakeholders. One of the major reasons for this is that the people completing the reports look upon them as a chore instead of a way to communicate valuable information. A project report that is very brief and says nothing, or one that contains every single detail performed by individual team members are examples of reports that are not particularly useful.
As the project manager, you should try to develop project reports that focus on information that can be used in the decision-making process. Ask team members (and yourself) whether the information in the project report is there to communicate something valuable or is it just taking up space?
Typically the project report should focus on:
 accomplishments against the work plan
 comments on work that should be completed but are behind schedule
 problems encountered, the impact they have on the project, and the work performed to resolve them
 summary budget – planned vs actuals
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 scope change requests
 newly identified risks or/and high priority risks
 observations that will be useful to the target audience.
If you focus on this type of information in your project report, you will find that the information is meaningful and can be used to help manage the project and keep the stakeholders informed. Remember that if you report on the trivial events of the reporting period, people will soon stop paying attention to what you say.
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Topic 3 Activities
Activity 1: Workplace Activities
Introduction
Research the answers to these questions in your own workplace or a workplace you are familiar with. You can check your answers against the guidelines below, but naturally your answers will vary depending on your workplace.
Questions
1. How are team members identified and chosen in your workplace?
Answer:
2. What team development will you use with your project team?
Answer:
3. Have you worked in teams before? What made that experience successful or unsuccessful? How much of that was due to the management of the team by the project manager or team leader?
Answer:
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4. What control mechanisms would you put in place for your project?
Answer:
5. Identify the kind of information that will be useful in your project reports.
Answer:
Check your answers
Question 1
Talk to other people who have been involved in projects within your workplace and ask them how they chose or were chosen to be part of a project team. Find out about whether job descriptions and skill lists were developed, whether places were advertised and if formal interviews were conducted.
Question 2
You will need to look at the skills, knowledge and attitudes of your team and identify any additional skills that need to be developed. You may also need to obtain knowledge or change attitudes to get your project completed as planned.
Question 3
List all those items that were good and bad from a past project or team activity and who was responsible for each item; think about what could have been done differently to improve the project process.
Question 4
Controls might include project reports at set intervals, such as daily or weekly progress, timeline updates, budget monitoring, supplier monitoring etc.
Question 5
Your answer will depend on the nature of your project and your stakeholders. If you don’t have a model to use, start by including information on the following topics in relation to your project:
 accomplishments
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 work to be completed
 problems (issues) encountered
 scope change requests
 newly identified risks
 useful observations.
Activity 2: Good Managers
Good projects managers are a rare commodity. There are many skills required to effectively
manage projects and the people involved.
Research and create a mini-guide to effective project management. Focus on the skills and
personal attributes necessary for project success and developing good relationships with the
project team.
Activity 3: Management Terms
Match the following terms with the correct explanation.
1. Staffing
2. Training
3. Supervising
4. Delegating
5. Motivating
6. Counselling
7. Co-ordinating
a. Giving day to day instruction, guidance and discipline.
b. Seeing that activities are carried out in relation to their importance and with minimum
conflict.
c. Holding private discussions with one another about how he or she might do better work,
solve a personal problem, or realize his or her ambitions.
d. Seeing that a qualified person is selected for each position.
e. Encouraging others to perform by fulfilling or appealing to their needs.
f. Assigning work, responsibility, and authority so that others can make maximum utilization
of their abilities.
g. Teaching individuals and groups how to fulfill their duties and responsibilities.
From: H. Kerzner and F Saladis “Project Management Workbook”, 2006.
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Activity 4: Project Tracking
You work as a section manager for a large retail chain in their head office. The regional manager
has asked you to take on a project organising a series of promotional videos for five new
products. You have two months to launch the videos on the company website. Who should you
get involved? What tasks need to be performed? Who performs the tasks. How will you
documents if and when tasks are done? How will you know if the project is completed on time?
Activity 5: Reporting Requirements
Which stakeholders would be interested in these reports and when?
Report
Name
Key Elements Project
Manager
Sponsor Team Others When?
Summary
Gantt Chart
Summary bar for
each main activity
Milestones
Detailed
Gantt Chart
Timeline for all
tasks/events
Budget
Report
Planned vs Actual
budget
Status
report
List of all
tasks/activities
Planned start/finish
dates
Actual start/finish
dates
Remaining duration
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Activity 6: Status Reporting – Traffic Lights
Organisations often refer to status using the traffic light or “red”, “yellow” and “green” reporting system.
Green: work is progressing as planned. No major issues. Sponsor involvement is not required.
Yellow: A potential problem exists. The sponsor is informed but sponsor action is not required at this time.
Red: A problem exists that affects the project scope, schedule or budget. Sponsor action and involvement is required.
For the following situations which traffic light would you use?
Situation
Traffic light (Red, Yellow or Green)
1. A task that is not on the critical path is delayed. There is sufficient slack to manage the delay.
2. A critical resource may not be available at the scheduled time. Negotiations are underway to resolve the issues.
3. A report shows project performance regarding scope and schedule and budget is within acceptable variance thresholds.
4. The customer insists on a major change to a deliverable well after acceptance had been obtained and production is in the advanced stages.
5. The project manager discovers that a major component of the scope of work is missing in the project plan due to an oversight by the customer.
6. The client has issued a change request that could delay the completion of a contractual milestone.
7. A functional manager advises the project manager that overtime may be needed to complete a task on time. A contingency had been included in the cost estimate for the task.
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Adapted from H Kerzner and F Saldaris “Project Management Workbook” 2006.
Activity 7: Quiz
Use this quiz to check your knowledge of administer and monitor project stage.
Question 1:
Which of the following is not a step in implementing a project?
1. procure necessary resources
2. recruit necessary personnel
3. produce project budget
4. assign all project tasks
Question 2:
When recruiting workers for a project it is important to ensure that:
1. they can work long hours if required
2. they are task-oriented and able to work to schedules
3. they have all-round skills to do any job on the project
4. they have worked with you in the past
Question 3:
Once the project has started the project manager should:
1. move on to the next project
2. sit back and let the project happen
3. call monthly meetings to monitor project progress
4. constantly monitor the project’s progress
Question 4:
Which of these risks should you monitor the most carefully?
1. unlikely risks with a large impact
2. likely risks with a large impact
3. likely risks with a small impact
4. unidentified risks
Question 5:
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What are the general management skills that are used most heavily in the implementation process of a project?
1. organising
2. communicating
3. leading
4. all of the above
Question 6:
The most important resource are the people in your project team. Without the right project team, other materials and facilities are useless. True or false?
1. True
2. False
Question 7:
One of the goals of quality assurance is continual quality improvement. True or false?
1. True
2. False
Activity 8: Project Key Tasks
Instructions
This activity asks you to focus on the key tasks that need to be undertaken when implementing a project. Place them in order.
1
Communicate progress to all stakeholders
2
Monitor the implementation process
3
Change the plan to accommodate stakeholder feedback
4
Design and cost a plan
5
Determine whether targets are realistic
6
Consult with all stakeholders
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Topic 4 Finalise the Project
Just as planning the project is an important project management activity, so is closing a project. The real value of closing a project correctly is in documenting the information and experience gathered throughout the project. If your team immediately disbands when you complete the final deliverable, you don’t have chance to wrap up the loose ends, gather staff feedback, document key issues and how they were handled (well or badly).
The 5 phases in a project
There are five general phases in a project:
1. initiate phase
2. plan phase
3. organise phase
4. control phase
5. close phase.
This reading looks at some of the close phase.
Major activities that occur during each project phase:
Initiate
Plan
Organise
Control Close
Define the overall project goal
Develop detailed task list
Obtain necessary resources
Lead and support the team Complete final deliverables
Identify all stakeholders, their needs and expectations
Estimate all task times and all costs
Recruit necessary personnel
Establish control tools and methods Write and issue final report, close the accounts, hand over project files
Identify the project objectives
Arrange best sequence of all tasks
Organise and lead the project team
Monitor the project plan and make any necessary corrective actions Release all resources
Identify initial work and resources and basic milestones
Develop workable schedule and identify critical milestones
Assign all project tasks
Assess and implement change Obtain stakeholder acceptance and signoff
Identify all constraints, assumptions and
Write detailed project plan and obtain approval
Communicate with stakeholders and
Prepare and distribute status
Evaluate the project
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Initiate
Plan
Organise
Control Close
risks
from stakeholders
all necessary parties
reports
The close phase
In the close phase you will:
 complete final deliverables
 write and issue final report
o document project results and achievements of the project team
o complete project accounts
o hand over project files
 release all resources
o physical resources
o reassign the remaining project team
 obtain stakeholder acceptance and signoff
What if the project is cancelled?
Even when the project is cancelled either during the planning or implementation stages, you should complete the close phase of the project. In some cases, such as when the project is cancelled after a large part of the work has been done, it is even more important to close and finalise the project properly.
Important questions to consider include:
 Why was the project cancelled?
 What could have been done differently?
 What lessons have been learnt?
 How can you manage the project stakeholders and team?
Complete final deliverables
At the end of the project you need to ensure that:
 the project deliverables have been completed to the satisfaction of the sponsor or client, and
 all the outcomes have been achieved.
This may include addressing issues such as ongoing maintenance, support, training or warranties.
Complete the project accounts and hand over the project files
Financial accounts
At the end of the project there may be a large number of accounting functions that need to be finalised. These might include:
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 remaining invoices and accounts that need to be paid
 end of project completion payments need to be invoiced to the client or sponsor as appropriate
 payroll records completed, including paying outstanding pay as you go (PAYG) tax and superannuation contributions
 deposits on rented equipment recovered
 moneys received from sale of equipment or resources
 final project accounting statements completed
 end of project financial audit completed (if required)
 identification of cost differences and why these occurred.
Other documentation
At the end of a project there can be a large amount of documentation that needs to be handed over to the appropriate people.
For example, in a training project, you may need to hand over training files to the human resources department so they can update staff files. If you are managing a building project you may need to hand over plans to local government agencies, maintenance departments, the new building owners and the like.
The project team should determine, in consultation with the stakeholders, who should be given all the documentation and other assets accumulated during the project. Some material may also have to be deleted, destroyed, backed-up, archived, and so on.
Release all resources
When a project comes to a close many of the physical resources such as materials, equipment and even buildings, may need to be redeployed, returned to their functional area, or returned elsewhere. The people who have worked on the project may also need to be reassigned tasks or redeployed.
Physical resources
Usually the release of resources is an ongoing activity during the project, but it deserves special attention as the project draws to a close. It is at this time that you and your project team should start making decisions about the resources that may need to be retained for future use, the return of rented equipment and vacating of buildings or facilities, and what should be sold or otherwise disposed of.
A good example is a building project. As the project comes to an end you need to return the scaffolding, cranes and other plant equipment to their owners, and terminate any rental agreements. Any materials not used can be stored for future projects, sold or otherwise disposed of. Onsite safety, first aid and office equipment can also be stored for future projects, sold or otherwise disposed of.
Reassign the remaining project team
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At the end of the project, the remaining team members should be reassigned as their tasks are completed. These tasks may include input into the closure activities.
Reassigning staff may mean they are transferred to new projects or returned to their usual work activities. In either case, you need to manage this period to ensure that a smooth transition takes place. Staff may need motivating and re-focussing to help them move back to their previous role.
For contractors or temporary staff it may mean the end of their assignments. Payments and work contracts need to be finalised and closed. In some types of projects, some contracted or temporary team members may stay with the project in support roles.
In any case you need to keep in mind that close monitoring and assistance is often necessary to ensure that the end of the project is successfully completed for all involved.
Write the final report
Often the last job you will have to do is to write an end of project report, which outlines the following types of information:
 The actual deliverables compared with the deliverables described in the scope document and approved change requests.
 The level of quality achieved by the deliverables and any outstanding problems or defects.
 Whether the deliverables meet all of the client’s requirements.
 Whether estimated timeframes for project completion were met.
 The estimated costs vs actual costs.
This report is then handed to the key stakeholders and will be filed in the project file for others to access and view. This can then be used by future, similar projects to learn lessons.
Obtain sponsor signoff
As the project manager, you must obtain all required signoffs from the sponsor or client. This may include the project plan, financial records, contracts, service level agreements, warranties and support arrangements etc.
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Topic 4 Activities
Activity 1: Workplace Activities
Introduction
Research the answers to these questions in your own workplace. You can check your answers against the guidelines below, but naturally your answers will vary depending on your workplace.
Questions
1. What steps do you need to follow to close a project in your workplace?
Answer:
2. How will you go about identifying why cost differences occurred in your project?
Answer:
3. What are your company’s policies on document management?
Answer:
4. What resources are left over from your project and what will you do with them?
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Answer:
5. How will you motivate your team to return to their normal duties?
Answer:
6. What will you put in your final report?
Answer:
Check your answers
Question 1
Identify the steps from the list below that are relevant to your project:
 complete final deliverables
 obtain stakeholder acceptance and signoff
o hold end of project meeting to get feedback
o was it a success or failure?
 write and issue final report
o document project results and achievements of team
o complete project accounts
o hand over project files
 evaluate the project
o conduct a review of project lessons
o evaluate the team and performance
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 release all resources
o physical resources
o reassign the remaining project team
Question 2
First identify each area of cost in which there was a substantial difference between budget and actual costs. (It is unlikely to be productive chasing a 3% difference in an item that is 1% of your budget.)
Then establish why the differences occurred. To do this, revisit project schedules and reports and check with suppliers about differences between quotes and invoices. This process will help you to identify areas of budgeting or cost control that you or other project managers can improve on for future projects.
Question 3
Your company may or may not have policies on what documents need to be preserved and archived, or filed electronically, and for how long they need to be retained before being destroyed. If not you will need to decide what to keep, how to keep it, and for how long. Be sure to make these decisions in consultation with the project sponsor and stakeholders.
Question 4
Depending on the size of your project you may have a small or large amount of resources to deal with when the project ends. You need to decide if they would be useful to your organisation and if so will the cost of keeping them be in proportion to their value and ease or otherwise of obtaining them again in the future. If you decide not to keep resources you will need to sell them, give them away or otherwise dispose of them.
Question 5
The issue here will depend on the length of the project, the differences between the project team’s normal job and the project tasks, their amount of involvement in the project, and the resulting impact of returning to their normal position.
Question 6
Take the information from the above sections and incorporate them into a final report on your project. Add extra information such as actual budgets and other outcomes (such as improved staff skills) that were achieved as part of the project.
Activity 2: Quiz
Use this quiz to check your knowledge of the project finalisation stage.
Repeat this quiz until you have answered all questions correctly.
Question 1:
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If a project is cancelled part way through what should a project manager do?
1. find someone to blame
2. close and finalise the project
3. hide any failures on your part
4. wrap things up as fast as possible
Question 2:
At the close of a project the project deliverables and actual deliverables should be compared. True or false?
1. True
2. False
Question 3:
All unused equipment from a project should be sold to fund further projects. True or false?
1. True
2. False
Question 4:
What should be done with sensitive project documentation?
1. All documentation should be securely stored.
2. All documentation should be destroyed.
3. Non-reusable documentation should be destroyed and reusable documentation should be securely stored.
4. Non-reusable documentation should be archived and reusable documentation should be securely stored.
Question 5:
Unpaid contractor fees should be rolled over into the next project contract. True or false?
1. True
2. False
Question 6:
What should be done with staff on the project team when the project is completed? (Select all correct answers.)
1. assign staff to new roles where possible
2. return staff to their previous roles
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3. find new work for contractors
4. roll all temporary staff into new projects
Question 7:
Which of the following items should be included in the projects closing report? (Select all correct answers.)
1. deliverables compared with actual deliverables
2. do deliverables meet client/stakeholder requirements
3. what changes in deliverables occurred
4. how will the system be maintained
Question 8:
You should obtain client/stakeholder signoff on which of the following documents? (Select all correct answers.)
1. financial records
2. project team communications
3. service level agreements
4. client/stakeholder feedback
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Topic 5 Review the Project
The project is now over and finalised. However, an important last step is to thoroughly evaluate the project. As the manager of the project you should conduct a review of the lessons learnt from conducting the project and evaluate the project team’s performance. A good way of doing this is to hold end of project meeting to get feedback from all stakeholders. The fundamental question to ask is: Was the project a success or failure and why?
The 5 phases in a project
There are five general phases in a project:
1. initiate phase
2. plan phase
3. organise phase
4. control phase
5. close phase.
This reading takes a close look at some of the close phase.
Major activities that occur during each project phase
Initiate
Plan
Organise
Control Close
Define the overall project goal
Develop detailed task list
Obtain necessary resources
Lead and support the team
Complete final deliverables
Identify all stakeholders, their needs and expectations
Estimate all task times and all costs
Recruit necessary personnel
Establish control tools and methods
Write and issue final report, close the accounts, hand over project files
Identify the project objectives
Arrange best sequence of all tasks
Organise and lead the project team
Monitor the project plan and make any necessary corrective actions
Release all resources
Identify initial work and resources and basic milestones
Develop workable schedule and identify critical milestones
Assign all project tasks
Assess and implement change
Obtain stakeholder acceptance and signoff
Identify all constraints, assumptions and
Write detailed project plan and obtain approval
Communicate with stakeholders and
Prepare and distribute status Evaluate the project
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Initiate
Plan
Organise
Control Close
risks
from stakeholders
all necessary parties
reports
Hold an end of project meeting
A meeting should be held with the project team, client/sponsor and appropriate stakeholders to formally conclude the project. You should include in this meeting a formal or informal review of the project, documenting things that went right or wrong, identifying strengths and weaknesses of the project and the project management processes. It is important to identify techniques or processes that worked especially well, or especially poorly, so that this information is available for use on future projects.
For the final project meeting to be effective, consider the following issues:
 agree on the purpose and scope of the meeting
 list what the project should have achieved against what was actually achieved
 discuss what caused differences between what should have occurred and what actually occurred
 document the lessons that have been learned that would be of benefit to future projects
 document any remaining work required to close the project.
Was the project a success or failure?
Sometimes it is obvious the project was a total success. In other cases the project is a total failure. However, in many cases, the lines between success and failure are small and not always apparent. For example, how successful is a project that has been completed on time and has delighted the client, but which is significantly over budget resulting in a financial loss to your company?
How successful is a project that has been completed on time and within budget but which only meets 80% of the business requirements or has been downsized to achieve these outcomes? What lessons may have been learned along the way?
It is important to decide up-front what criteria you will use to determine whether a project is a success or a failure. If an agreement is reached with the sponsor on what success means, the project team can be evaluated against those criteria. As project manager, you should first rate the project team against those criteria, and then take the recommendation to the sponsor for validation.
Evaluate the project team and its performance
If the project was large by your organisation’s standards, it may be appropriate to conduct performance reviews after the project is completed. In this case, as project manager, you evaluate your project team members and their performance. In turn, you are evaluated by the project sponsor or a member of the organisation’s management team.
The team may be rated as a whole and then team members use the team rating as input into a personal performance review. Alternatively, the team members may have individual reviews
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based on their contributions only. There should, however, be some link between team and individual performance.
This process can help identify the skills staff possess and how best to use those skills in future projects.
Document project lessons
Completing a project deliverable does not mean that the jobs of the project manager or project team members are over. You, as project manager, need to complete reports concerning any issues you encountered. Include suggestions on how you feel these issues could have been prevented or better handled. It’s a good idea to ask your team members to complete a similar report too. That way, you have all the information you need to make a comprehensive report.
You will then review the performance of the overall project against the original project plan, looking at resource usage, costs, timings and the end result. As well as performance criteria, examine any issues that will benefit future projects through, for example, lessons learnt and capacity building in the organisation through improved skills, etc.
The documentation produced by the project review process is only valuable if it is used to improve current and future projects. This is only possible if clear documentation processes are followed. Consider the following:
 Are there standard template documents used to record project review information?
 What sign-off process is required before this documentation can be made available to other projects?
 Does the documentation include material that may be of a private or sensitive nature that should not be made available to other project teams?
 How is the documentation going to be stored for easy access by others?
Once the review documentation and all other project documentation is complete and appropriately stored your project should be closed. You may now have to organise how you are going to be redeployed. Perhaps you will return to your normal role or you might have another project to commence.
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Topic 5 Activities
Activity 1: Workplace Activities
Introduction
Research the answers to these questions in your own workplace. You can check your answers against the guidelines below, but naturally your answers will vary depending on your workplace.
Questions
1. Was your workplace project a success or failure?
Answer:
2. Against what criteria will you evaluate your project team?
Answer:
3. What lessons have you learned from your workplace project?
Answer:
Check your answers
Question 1
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Take a constructive, unbiased look at your project and document why your project was a success or a failure against a range of measures appropriate to the project. This information will form an important part of your project report.
Question 2
You will find that you can come up with a large range of measures against which you could evaluate your project team. These measures need to be developed in relation to the tasks that the team or team members carried out. These criteria may also vary depending on whether you are evaluating the team as a whole or individually.
Question 3
List all the issues that arose during your workplace project and identify the lessons that you have learnt.
Use this quiz to check your knowledge of the review project stage.
Repeat this quiz until you have answered all questions correctly.
Activity 2: Quiz
Question 1:
Which of the following methods would be the best way to collect feedback at the end of a project?
1. hold an end of project meeting
2. send out questionnaires to all project participants
3. send an email to everyone to ask if they have comments to make
4. get each member of the project team to write a closing report
Question 2:
Against what criteria will you evaluate the project?
1. the criteria that highlight the projects successes
2. the criteria that highlight the projects failures
3. criteria established once the project is complete
4. criteria established during the planning phase
Question 3:
Why is it important to include lessons learned in the project report?
1. so the sponsor can review these
2. for future project teams to use as part of their planning
3. to show that you have done a detailed project review
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4. to highlight where the project went wrong
Question 4:
What is the main reason processes are reviewed at the end of a project?
1. so that stakeholder acceptance can be obtained
2. so that team members can be acknowledged and thanked for their efforts
3. to check that the project outcomes have been achieved
4. because analysis of past experiences can allow processes to be adapted and improved
Question 5:
What is the most effective means of measuring the success of a project?
1. analyse the end of project budget
2. determine if the client/stakeholders are happy with the projects end results
3. collect the project teams feedback on their task goals
4. compare what was actually achieved by the project with what the project was planned to achieve
Question 6:
Which of the following projects was the most successful?
1. all project goals were achieved and the project budget was exceeded by 10%
2. half of the project goals were achieved and the project expenditure was 35% under budget
3. the project team is happy with the result, the project expenditure is 20% under budget and 70% of the project goals were achieved
4. 90% of the project goals were achieved and the project expenditure was 30% over budget
Question 7:
It is important to decide up-front what criteria you will use to determine whether a project is a success or a failure. True or false?
1. True
2. False
Question 8:
Why should the performance of project team members be evaluated? (Select all correct answers.)
1. to identify staff skills for use in future projects
2. to remove staff from projects roles
3. to better allocate staff roles
4. to identify areas of professional development
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Question 9:
When evaluating the project team’s performance both the individual and team should be evaluated? True or false?
1. True
2. False
Question 10:
How can the project review process become a part of risk management? (Select all correct answers.)
1. a more accurate budget history can be created to help future project improve their budget estimations to prevent over-expenditure
2. the suitability of staff in various project roles can be better determined for use in future projects
3. the project planning phase can be reused in future projects
4. future projects can use the lessons learnt from a completed project to help protect against problems being repeated
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References
Department of Education and Training 2008 Learning Guide from the BSBPGM510A Toolbox on Equella.
H. Kerzner and F Saladis, “Project Management Workbook”, 2006.
Project Management Institute, “The Project Management Body of Knowledge”, 5th edition, 2013.

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