Project Management Guide

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2003 Method123 Ltd. All rights reserved. i

Table of Contents

1 INTRODUCTION....................................................................................................1
1.1 WELCOME....................................................................................................................................1
1.2 INTENDED READERS.......................................................................................................................1
1.3 WHAT IS A PROJECT?.....................................................................................................................1
1.4 WHAT IS A PROJECT MANAGEMENT?..................................................................................................2

2 OVERVIEW.......................................................................................................... 2
2.1 PROJECT METHODOLOGY.................................................................................................................2
2.2 APPROPRIATE PROJECTS..................................................................................................................3
2.3 PROJECT BENEFITS........................................................................................................................4

3 METHODOLOGY....................................................................................................5
3.1 INITIATION..................................................................................................................................7
3.1.1 Develop Business Case.............................................................................................................7
3.1.2 Perform Feasibility Study..........................................................................................................7
3.1.3 Establish Terms of Reference...................................................................................................7
3.1.4 Appoint Project Team..............................................................................................................8
3.1.5 Set up Project Office................................................................................................................8
3.1.6 Perform Stage-Gate.................................................................................................................8
3.2 PLANNING....................................................................................................................................9
3.2.1 Develop Project Plan................................................................................................................9
3.2.2 Develop Resource Plan.............................................................................................................9
3.2.3 Develop Financial Plan...........................................................................................................10
3.2.4 Develop Quality Plan..............................................................................................................10
3.2.5 Develop Risk Plan..................................................................................................................10
3.2.6 Develop Acceptance Plan.......................................................................................................11
3.2.7 Develop Communications Plan................................................................................................11
3.2.8 Develop Procurement Plan.....................................................................................................11
3.2.9 Contract Suppliers.................................................................................................................11
3.2.10 Perform Stage-Gate..............................................................................................................11
3.3 EXECUTION................................................................................................................................ 12
3.3.1 Build Deliverables..................................................................................................................12
3.3.2 Monitor and Control...............................................................................................................12
3.3.3 Perform Stage-Gate...............................................................................................................14
3.4 CLOSURE...................................................................................................................................15
3.4.1 Perform Project Closure.........................................................................................................15
3.4.2 Review Project Completion.....................................................................................................15

4 APPENDIX.........................................................................................................16
4.1 TEMPLATES................................................................................................................................ 16
4.2 GLOSSARY OF TERMS....................................................................................................................18
4.2.1 Summary..............................................................................................................................18
4.2.2 Acronyms..............................................................................................................................18
4.2.3 Definitions.............................................................................................................................18

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1 Introduction

1.1 Welcome
Welcome to the Method123 Project Management Guide. This Guide provides a practical
approach to what many consider a complex process: the management of projects. This
Guide is designed to simplify the management processes required to manage a project
successfully from end to end. It defines Project Management in simple terms and provides
you with all of the documentation tools required to make your individual project a success.

The key benefit of Method123 over other methodologies is that each Project Management
activity is accompanied by a complete set of project templates. Our project templates are
written specifically for project management and currently provide the most thorough set of
project template documentation available on the web.

1.2 Intended Readers

The Method123 Project Management Guide is primarily intended as a tool for Project
Managers, Project Sponsors, Business Leaders and Team Leaders. In fact, any person who
is involved with or has the responsibility for delivering a project against time, cost and quality
criteria will find this methodology helpful.

1.3 What is a Project?

A project is a unique endeavor to produce a set of deliverables within clearly specified time,
cost and quality constraints.

Projects are different from standard business operational activities as they:

Are unique in nature. They do not involve repetitive processes. Every project undertaken
is different from the last, whereas operational activities often involve undertaking
repetitive (identical) processes
Have a defined timescale. Projects have a clearly specified start and end date within
which the deliverables must be produced to meet a specified customer requirement
Have an approved budget. Projects are allocated a level of financial expenditure within
which the deliverables must be produced to meet a specified customer requirement
Have limited resources. At the start of a project an agreed amount of labor, equipment
and materials is allocated to the project
Involve an element of risk. Projects entail a level of uncertainty and therefore carry
business risk
Achieve beneficial change. The purpose of a project, typically, is to improve an
organization through the implementation of business change.

2003 Method123 Ltd. All rights reserved. 1

1.4 What is a Project Management?
Project Management is the skills, tools and management processes required to undertake a
project successfully.

Project Management comprises:

A set of skills. Specialist knowledge, skills and experience are required to reduce the
level of risk within a project and thereby enhance its likelihood of success
A suite of tools. Various types of tools are used by project managers to improve their
chances of success. Examples include document templates, registers, planning
software, modeling software, audit checklists and review forms
A series of processes. Various management techniques and processes are required to
monitor and control time, cost, quality and scope on projects. Examples include time
management, cost management, quality management, change management, risk
management and issue management.

2 Overview
2.1 Project Methodology
The Method123 Project Management Methodology is a set of phases, activities, and tasks
which are undertaken to complete a project successfully. Each activity is accompanied by a
comprehensive set of document templates which enable the Project Manager to
substantially reduce the time taken to undertake each activity and ensure that it is completed
in a clear and concise manner. A set of management processes is also provided to enable
Project Managers to monitor and control the production of deliverables within a project
successfully.

Method123 was developed by a group of Project Managers over a number of years to

increase the likelihood of their projects' achieving success. Method123 is based on the
learnings of hundreds of projects, totaling hundreds of millions of dollars, and involved the
implementation of a large variety of products and services within a wide spectrum of
industries.

The vision of Method123 is to standardize the manner within which Project Management is
undertaken around the world and, as a result, to influence every project beneficially through
the provision of a standardized set of management processes and documentation.

The Method123 philosophy is also based on the principles and techniques set out by the
world-wide Project Management Institute (PMI) as defined within A Guide to the Project
Management Body of Knowledge (PMBOK Guide).

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2.2 Appropriate Projects
The Method123 Project Management Methodology is intended for all project sizes, types
and industries.

Project Size

Whether embarking on a small, medium or large project, Method123 provides a

standardized approach to achieving success. The entire lifecycle is applicable to projects of
all sizes; however, for smaller projects it may be necessary to implement only a subset of the
activities provided in the lifecycle to meet the time, cost and quality constraints of the project.

Project Type

There are two classical approaches to undertaking projects:

1. The waterfall approach involves undertaking a series of activities in a logical, sequential

manner until the final deliverable set is produced
2. The iterative approach requires the production of a number of prototypes (or deliverable
iterations), until the final deliverable set is produced.

Regardless of the approach undertaken, Method123 provides the processes and templates
required to complete the project.

Project Industry

Method123 has been written in a generic manner so as to apply to projects within any
country and industry. Examples of industries/businesses/institutions/organizations/firms, etc.,
within which Method123 has been applied include (but are not limited to):

Banking
Building
Computer manufacturing
Distribution
Education
Engineering
Finance
Government
Law
Manufacturing
Motor Vehicle manufacturing
Retail
Tourism
Transport

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2.3 Project Benefits
The top 10 benefits to be gained from adopting the Method123 methodology are:

1. Reduces time because the project document templates and standards have already
been created prior to the start of the project

2. Decreases cost because a clear lifecycle for initiating planning, executing and closing
projects has already been identified

3. Improves quality because the processes required to monitor and control the quality of
deliverables are clearly outlined

4. Reduces the impact of risks, issues and changes because there is a clear process for
identifying, quantifying, approving and resolving them

5. Includes the tools, templates and methods necessary to conduct projects in accordance
with company standards

6. Provides a common discipline for planning and executing projects throughout the
organization

7. Promotes standard terminology that is clearly understood by project team members,

thereby enhancing communication within the project

8. Clarifies roles and responsibilities for project team members and stakeholders

9. Enables more accurate forecasts of project timelines, costs and risks

10. Enhances the likelihood of success through the use of a standard, best practice, tried
and proven project management methodology.

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3 Methodology
The following diagram outlines the Method123 Project Life-Cycle.

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The Project Lifecycle consists of four phases:

Project Initiation

The Initiation Phase is the first phase in the project. In this phase a business problem (or
opportunity) is identified and a business case which provides various solution options is
defined. A feasibility study is then conducted to investigate the likelihood of each solution
option's addressing the business problem and a final recommended solution is put forward.
Once the recommended solution is approved, a project is initiated to deliver the approved
solution. A Terms of Reference is completed, which outlines the objectives, scope and
structure of the new project, and a Project Manager is appointed. The Project Manager
begins recruiting a project team and establishes a Project Office environment. Approval is
then sought to move into the detailed planning phase.

Project Planning

Once the scope of the project has been defined in the Terms of Reference, the project enters
the detailed planning phase. This involves the creation of a:

Project Plan (outlining the activities, tasks, dependencies and timeframes)

Resource Plan (listing the labor, equipment and materials required)
Financial Plan (identifying the labor, equipment and materials costs)
Quality Plan (providing quality targets, assurance and control measures)
Risk Plan (highlighting potential risks and actions taken to mitigate them)
Acceptance Plan (listing the criteria to be met to gain customer acceptance)
Communications Plan (listing the information needed to inform stakeholders)
Procurement Plan (identifying products to be sourced from external suppliers).

At this point the project has been planned in detail and is ready to be executed.

Project Execution

This phase involves the execution of each activity and task listed in the Project Plan. While
the activities and tasks are being executed, a series of management processes are
undertaken to monitor and control the deliverables being output by the project. This includes
the identification of changes, risks and issues, the review of deliverable quality and the
measurement of each deliverable being produced against the acceptance criteria. Once all
of the deliverables have been produced and the customer has accepted the final solution,
the project is ready for closure.

Project Closure

Project Closure involves releasing the final deliverables to the customer, handing over
project documentation, terminating supplier contracts, releasing project resources and
communicating the closure of the project to all stakeholders. The last remaining step is to
undertake a Post Implementation Review to quantify the overall success of the project and
list any lessons learnt for future projects.

The following sections provide a more detailed description of each phase and list document
templates which provide the Project Manager with guidance on how to complete each phase
successfully.

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3.1 Initiation
The initiation phase essentially involves the project start-up. It is the phase within which the
business problem or opportunity is identified, the solution is agreed, a project formed to
produce the solution and a project team appointed. The following diagram depicts the
activities undertaken:

Develop Business Case

Once a business problem or opportunity has been identified, a Business Case is prepared.
This includes:

A detailed definition of the problem or opportunity

An analysis of the potential solution options available. For each option, the potential
benefits, costs, risks and issues are documented. A formal feasibility study may be
commissioned if the feasibility of any particular solution option is not clear
The recommended solution and a generic implementation plan.

The Business Case is approved by the Project Sponsor and the required funding is allocated
to proceed with the project.

Template: Business Case

Perform Feasibility Study

At any stage during (or after) the development of a Business Case, a formal Feasibility Study
may be commissioned. The purpose is to assess the likelihood of a particular solution
option's achieving the benefits outlined in the Business Case. The Feasibility Study will also
investigate whether the forecast costs are reasonable, the solution is achievable, the risks
are acceptable and/or any likely issues are avoidable.

Template: Feasibility Study

Establish Terms of Reference

After the solution has been agreed and funding allocated, a project is formed. The Terms of
Reference defines the vision, objectives, scope and deliverables for the project. It also
provides the organization structure (roles and responsibilities) and a summarized plan of the
activities, resources and funding required to undertake the project. Finally, any risks, issues,
planning assumptions and constraints are listed.

Template: Terms of Reference

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Appoint Project Team
At this point the scope of the project has been defined in detail and the project team are
ready to be appointed. Although a Project Manager can be appointed at any stage of the
project, s/he will need to be appointed prior to the establishment of the project team. The
Project Manager documents a detailed Job Description for each project role and appoints a
human resource to each role based on his/her relevant skills and experience. Once the team
are fully resourced, the Project Office is ready to be set-up.

Template: Job Description (for Project Manager)

Set up Project Office

The Project Office is the physical environment within which the team will be based. Although
it is usual to have one central project office, it is possible to have a virtual project office
environment, with project team members in various locations around the world. Regardless
of the location, a successful project office environment will comprise the following
components:

Location (either physical or virtual)

Communications (telephones, computer network, email, internet access, file storage,
database storage and backup facilities)
Documentation (methodology, processes, forms and registers)
Tools (for accounting, project planning and risk modeling).

Template: Project Office Checklist

Perform Stage-Gate
At the end of the Initiation Phase, a Stage-Gate review is performed. This is basically a
checkpoint to ensure that the project has achieved its stated objectives as planned.

Template: Stage Gate Review Form (Initiation Phase)

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3.2 Planning
By this stage, the benefits and costs of the project have been clearly documented, the
objectives and scope have been defined, the project team have been appointed and a
formal project office environment established. It is now time to undertake detailed planning to
ensure that the activities performed in the execution phase of the project are properly
sequenced, resourced, executed and controlled.

Develop Project Plan

The first step is to document the Project Plan. A Work Breakdown Structure (WBS) is
identified, which includes a hierarchical set of phases, activities and tasks to be undertaken
on the project. After the WBS has been agreed, an assessment of the effort required to
undertake the activities and tasks is made. The activities and tasks are sequenced,
resources are allocated and a detailed project schedule is formed. This project schedule will
become the primary tool for the Project Manager to assess the progress of the project.

Template: Project Plan

Develop Resource Plan

Immediately after the Project Plan is formed, it is necessary to allocate the resources
required to undertake each of the activities and tasks within the Project Plan. Although
general groups of resources may have already been allocated to the Project Plan, a detailed
resource assessment is required to identify the:

Types of resources (labor, equipment and materials)

Total quantities of each resource type
Roles, responsibilities and skill-sets of all human resources
Items, purposes and specifications of all equipment resource
Items and quantities of material resource.

A schedule is assembled for each type of resource so that the Project Manager can assess
the resource allocation at each stage in the project.

Template: Resource Plan

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Develop Financial Plan
Similar to the Resource Plan, a Financial Plan is prepared to identify the quantity of money
required for each stage in the project. The total cost of labor, equipment and materials is
quantified and an expense schedule is defined which provides the Project Manager with an
understanding of the forecast spending vs. the actual spending throughout the project.
Preparing a detailed Financial Plan is extremely important as the project's success will
depend on whether or not it is delivered within the time, cost and quality estimates for this
project.

Template: Financial Plan

Develop Quality Plan

Meeting the quality expectations of the customer is critical to the success of the project. To
ensure that the quality expectations are clearly defined and can reasonably be achieved, a
Quality Plan is documented. The Quality Plan:

Defines what quality means in terms of this project

Lists clear and unambiguous quality targets for each deliverable. Each quality target
provides a set of criteria and standards which must be achieved to meet the expectations
of the customer
Outlines a plan of activities which will assure the customer that the quality targets will be
met (i.e. a Quality Assurance Plan)
Identifies the techniques used to control the actual level of quality of each deliverable as
it is built (i.e. a Quality Control Plan).

Finally, it is important to review the quality not only of the deliverables produced by the
project but also of the management processes which produce them. A summary of each of
the management processes undertaken during the execution phase is identified, including
Time, Cost, Quality, Change, Risk, Issue, Procurement, Acceptance and Communications
Management.

Template: Quality Plan

Develop Risk Plan

The foreseeable project risks are then documented within a Risk Plan and a set of actions to
be taken formulated to both prevent each risk from occurring and reduce the impact of the
risk should it eventuate. Developing a clear Risk Plan is an important activity within the
planning phase as it is necessary to mitigate all critical project risks prior to entering the
Execution phase of the project.

Template: Risk Plan

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Develop Acceptance Plan
The key to a successful project is gaining acceptance from the customer that each
deliverable produced meets (or exceeds) his/her requirements. To clarify the criteria used to
judge each deliverable for customer acceptance, an Acceptance Plan is produced. The
Acceptance Plan provides the criteria for obtaining customer acceptance, a schedule of
acceptance reviews within which customer acceptance will be sought and a summary of the
process used to gain acceptance of each deliverable from the customer.

Template: Acceptance Plan

Develop Communications Plan

Prior to the Execution phase, it is also necessary to identify how each of the stakeholders
will be kept informed of the progress of the project. The Communications Plan identifies the
types of information to be distributed, the methods of distributing information to stakeholders,
the frequency of distribution and responsibilities of each person in the project team for
distributing information regularly to stakeholders.

Template: Communications Plan

Develop Procurement Plan

The last planning activity within the Planning phase is to identify the elements of the Project
which will be acquired from external suppliers to the project. The Procurement Plan provides
a detailed description of the Products (i.e. goods and services) to be procured from
suppliers, the justification for procuring each product externally, as opposed to from within
the business, and the schedule for procurement. It also references the process for the
selection of a preferred supplier (Tender Process) and the process for the actual order and
delivery of the procured products (Procurement Process).

Template: Procurement Plan

Contract Suppliers
Although external suppliers may be appointed at any stage of the project, it is usual to
appoint suppliers after the Project Plans have been documented but prior to the Execution
phase of the project. Only at this point will the Project Manager have a clear idea of the role
of the supplier and the expectations for his/her delivery. A formal Tender Process is invoked
to identify a short-list of interested suppliers and select a preferred supplier to meet the
procurement needs of the project. The Tender Process involves creating a Statement of
Work, a Request for Information and Request for Proposal to obtain sufficient information
from each potential supplier to select a preferred supplier. Once a preferred supplier has
been chosen, a Supplier Contract is agreed for the delivery of the requisite product.

Templates: Statement of Work (SOW), Request for Information (RFI), Request for Proposal (RFP),
Supplier Contract

Perform Stage-Gate
At the end of the Planning phase, a Stage-Gate review is performed. This is basically a
checkpoint to ensure that the project has achieved its stated objectives as planned.

Template: Stage Gate Review Form (Planning Phase)

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3.3 Execution
The Execution phase is typically the longest phase of the project (in terms of duration). It is
the phase within which the deliverables are physically constructed and presented to the
customer for acceptance. To ensure that the customer's requirements are met, the Project
Manager monitors and controls the activities, resources and expenditure required to build
each deliverable throughout the execution phase. A number of management processes are
also undertaken to ensure that the project proceeds as planned.

Build Deliverables
This phase requires the physical construction of each deliverable for acceptance by the
customer. The actual activities undertaken to construct each deliverable will vary, depending
on the type of project (e.g. engineering, building development, computer infrastructure or
business process re-engineering projects). Deliverables may be constructed in a waterfall
fashion (where each activity is undertaken in sequence until the deliverable is finished) or an
iterative fashion (where iterations of each deliverable are constructed until the deliverable
meets the requirements of the customer). Regardless of the method used to construct each
deliverable, careful monitoring and control processes should be employed to ensure that the
quality of the final deliverable meets the acceptance criteria set by the customer.

Monitor and Control

Whilst the Project Team are physically producing each deliverable, the Project Manager
implements a series of management processes to monitor and control the activities being
undertaken. An overview of each management process follows.

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Time Management

Time Management is the process within which time spent by staff undertaking project tasks
is recorded against the project. As time is a scarce resource on projects, it is important to
record the time spent by each member of the team on a Timesheet to enable the Project
Manager to control the level of resource allocated to a particular activity. A Timesheet
Register provides a summary of the time currently spent on the project and enables the
Project Plan to be kept fully up to date.

Templates: Time Management Process, Timesheet Form, Timesheet Register

Cost Management

Cost Management is the process by which costs (or expenses) incurred on the project are
formally identified, approved and paid. Expense Forms are completed for each set of related
project expenses such as labor, equipment and materials costs. Expense Forms are
approved by the Project Manager and recorded within an Expense Register for audit
purposes.

Templates: Cost Management Process, Expense Form, Expense Register

Quality Management

Quality is defined as the level of conformance of the final deliverable to the customer's
requirements. Quality Management is the process by which the quality of the deliverables is
assured and controlled for the project, using Quality Assurance and Quality Control
techniques. Quality reviews are frequently undertaken and the results recorded within a
Quality Register.

Templates: Quality Management Process, Quality Review Form, Quality Register

Change Management

Change Management is the process by which changes to the project's scope, deliverables,
timescales or resources are formally defined, evaluated and approved prior to
implementation. A core aspect of the Project Manager's role is to manage change within the
project successfully. This is achieved by understanding the business and system drivers
requiring the change, documenting the benefits and costs of adopting the change and
formulating a structured plan for implementing the change. To formally request a change it is
often necessary to complete a Change Form. The change request details may then be
recorded within a Change Register.

Templates: Change Management Process, Change Form, Change Register

Risk Management

Risk Management is the process by which risks to the project (e.g. to the scope,
deliverables, timescales or resources) are formally identified, quantified and managed during
the project. A project risk may be identified at any stage of the project by completing a Risk
Form and recording the relevant risk details within the Risk Register.

Templates: Risk Management Process, Risk Form, Risk Register

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Issue Management

Issue Management is the method by which issues currently affecting the ability of the project
to produce the required deliverable are formally managed. After completion of an Issue Form
(and logging the details within the Issue Register), each issue is evaluated by the Project
Manager and a set of actions undertaken to resolve the issue at hand.

Templates: Issue Management Process, Issue Form, Issue Register

Procurement Management
Procurement Management is the process by which product is sourced from an external
supplier. To request the delivery of product from a supplier, a Purchase Order must be
approved by the Project Manager and sent to the supplier for confirmation. The status of the
purchase is then tracked using a Procurement Register until the product has been delivered
and accepted by the project team.

Templates: Procurement Management Process, Purchase Order Form, Procurement Register

Acceptance Management

Acceptance Management is the process by which deliverables produced by the project are
reviewed and accepted by the customer as meeting his/her specific requirements. To
request the acceptance of a deliverable by the customer, an Acceptance Form is completed.
The Acceptance Form describes the criteria from which the deliverable has been produced
and the level of satisfaction of each criterion listed.

Templates: Acceptance Management Process, Acceptance Form, Acceptance Register

Communications Management

Communications Management is the process by which formal communications messages

are identified, created, reviewed and communicated within a project. The most common
method of communicating the status of the project is via a Project Status Report. Each
communication item released to the project stakeholders is captured within a
Communications Register.

Templates: Communications Management Process, Project Status Report, Communications Register

Perform Stage-Gate
At the end of the Execution Phase, a Stage-Gate review is performed. This is basically a
checkpoint to ensure that the project has achieved its stated objectives as planned.

Template: Stage Gate Review Form (Execution Phase)

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3.4 Closure
Following the completion of all project deliverables and acceptance by the customer, a
successful project will have met its objectives and be ready for formal closure. Project
Closure is the last phase in the project and must be conducted formally so that the business
benefits delivered by the project are fully realized by the customer.

Perform Project Closure

Project Closure involves undertaking a series of activities to wind up the project, including:

Assessing whether the project completion criteria have been met

Identifying any outstanding items (activities, risks or issues)
Producing a hand-over plan to transfer the deliverables to the customer environment
Listing the activities required to hand over documentation, cancel supplier contracts and
release project resources to the business
Communicating closure to all stakeholders and interested parties.

A Project Closure Report is submitted to the Customer and/or Project Sponsor for approval.
The Project Manager is then responsible for undertaking each of the activities identified
within the Project Closure Report on time and according to budget. The project is closed only
when all activities identified in the Project Closure Report have been completed.

Template: Project Closure Report

Review Project Completion

The final activity undertaken on any project is a review of its overall success by an
independent resource. Success is determined by how well it performed against the defined
objectives and conformed to the management processes outlined in the planning phase. To
determine performance, a number of questions are posed. For example:

Did it result in the benefits defined in the Business Case?

Did it achieve the objectives outlined in the Terms of Reference?
Did it operate within the scope of the Terms of Reference?
Did the deliverables meet the criteria defined in the Quality Plan?
Was it delivered within the schedule outlined in the Project Plan?
Was it delivered within the budget outlined in the Financial Plan?

To determine conformance, a review is undertaken of the level of conformity of the project

activities to the management processes outlined in the Quality Plan. The above results, key
achievements and lessons learnt are documented within a Post Implementation Review
report and presented to the Project Sponsor for approval.

Template: Post Implementation Review

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4 Appendix
4.1 Templates
The following tables list the templates available to assist Project Managers with each phase
and activity identified within the Method123 Project Management lifecycle.

Phase Activity Template

Develop Business Case Business Case

Perform Feasibility Study Feasibility Study

Establish Terms of Reference Terms of Reference

Initiation
Appoint Project Team Job Description (Project Manager)

Set-up Project Office Project Office Checklist

Perform Stage-Gate Stage-Gate Review Form

Create Project Plan Project Plan

Create Resource Plan Resource Plan

Create Financial Plan Financial Plan

Create Quality Plan Quality Plan

Create Risk Plan Risk Plan

Create Acceptance Plan Acceptance Plan

Planning Create Communication Plan Communication Plan

Create Procurement Plan Procurement Plan

Contract Suppliers Tender Management Process

Statement of Work (SOW)
Request for Information (RFI)
Request for Proposal (RFP)
Supplier Contract
Tender Register

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 Produce Deliverables n/a

Monitor and Control

Time Management Process
Perform Time Management Timesheet Form
Timesheet Register

Cost Management Process

Perform Cost Management Expense Form
Expense Register

Quality Management Process

Perform Quality Management Quality Review Form
Quality Register

Change Management Process

Perform Change Management Change Form
Change Register

Execution Risk Management Process

Perform Risk Management Risk Form
Risk Register

Issue Management Process

Perform Issue Management Issue Form
Issue Register

Procurement Management Process

Perform Procurement Management Purchase Order Form
Procurement Register

Acceptance Management Process

Perform Acceptance Management Acceptance Form
Acceptance Register

Communication Management Process

Perform Communications Management Project Status Report
Communication Register

Perform Stage-Gate Stage-Gate Review form

Close Project Project Closure Report

Closure
Review Success Post Implementation Review

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4.2 Glossary of Terms

Summary
This Glossary lists the common terminology used within the suite of Method123 Project
Management templates. The terminology used by Method123 is common within the wider
Project Manager industry and not unique or particular to the Method123 methodology. As
such, the terminology and definitions will be similar to that used by other Project
Management bodies and companies.

Acronyms
The following acronyms are used in the Method123 methodology:

CAPEX Capital Expenditure

CRF Change Request Form
OPEX Operational Expenditure
PIR Post Implementation Review
QA Quality Assurance
QC Quality Control
RFI Request for Information
RFP Request for Proposal
SOW Statement of Work
TOR Terms of Reference

Definitions
The following definitions apply to terminology used within the Method123 methodology:

Acceptance Management

The process by which deliverables produced by the project are reviewed and accepted by
the customer as meeting their specific requirements

Acceptance Planning

The process of identifying the milestones, criteria and standards for the acceptance of
project deliverables by the customer

Business Case

A document outlining the justification for the initiation of a project. It includes a description of
the business problem (or opportunity), a list of the available solution options, their associated
costs and benefits and a preferred option for approval

Change Management

The process by which changes to the project scope, deliverables, timescales or resources
are formally defined, evaluated and approved prior to implementation

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Communications Management

The process by which formal communications messages are identified, created, reviewed
and communicated within a project

Communications Planning

The process of identifying the type and regularity of information to be provided to all project
stakeholders to keep them informed of the progress of the project

Cost Management

The process by which costs (or expenses) incurred on the project are formally identified,
approved and paid

Deliverable

A quantifiable outcome of the project which results in the partial (or full) achievement of the
project objectives

Dependency

A logical relationship between two or more project activities. The four types of dependencies
include: start-to-finish, start-to-start, finish-to-start, finish-to-finish

Feasibility Study

A document which identifies each of the solution options to a particular business problem (or
opportunity) and assesses the likelihood of each option's achieving the desired result

Financial Planning

The process of identifying the financial resources required to undertake the project. This
includes a list of the types of costs to be incurred on the project (e.g. labor, equipment,
materials and administration costs) and a schedule outlining when the respective costs are
likely to be incurred

Issue

Events which are currently affecting the ability of the project to produce the required
deliverables

Issue Management

The process by which issues are formally identified, communicated, monitored and resolved

Job Description

A document which describes a particular role and its responsibilities within a project

Milestone

The recognition of an important event within the project, usually the achievement of a key
project deliverable

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Procurement Management

The process by which product is actually sourced from a preferred supplier, including the on-
going management of the supplier relationship

Procurement Planning

The process of identifying the products to be sourced externally and the methods for
acquiring them

Product

A good or service which is acquired from an external supplier to assist with the production of
a project deliverable

Project

A unique endeavor to produce a set of deliverables within clearly specified time, cost and
quality constraints

Project Activity

A set of project tasks which usually results in the partial (or full) completion of a project
deliverable

Project Lifecycle

A series of project phases which are undertaken in either sequential or parallel order

Project Management

The skills, tools and management processes required to successfully undertake a project

Project Office

The physical premises within which Project Administration staff (e.g. the Project Manager
and support staff) reside

Project Phase

A set of project activities and tasks which usually result in the completion of a project
deliverable

Project Plan

A document which lists the phases, activities, tasks, timeframes and resources required to
complete the project

Project Schedule

A series of planned dates within which activities and tasks have to be completed to achieve
project milestones

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Project Task

A specific work item to be undertaken which usually results in the partial completion of a
project deliverable

Project Team

A collation of people who report to the Project Manager

Quality

The level of conformance of the final deliverable(s) to the customer's requirements

Quality Assurance

The preventative steps taken to eliminate any variances in the quality of the deliverable
produced from the quality targets set

Quality Control

The curative steps taken to eliminate any variances in the quality of the deliverable produced
from the quality targets set

Quality Management

The process by which the quality of the deliverables and management processes is assured
and controlled for the project, using Quality Assurance and Quality Control techniques

Quality Planning

The process of identifying the approach taken to ensure the quality of the deliverables
produced by the project and of the management processes undertaken. This includes a list
of the quality criteria and standards to be achieved as well as the Quality Assurance and
Quality Control techniques to be undertaken

Request for Information

A document which is issued by a project to a wide group of potential suppliers to enable

those suppliers to provide summarized information outlining how they will meet the
procurement requirements of the project

Request for Proposal

A document which is issued by a project to a short-listed group of suppliers to enable the

suppliers to submit a detailed proposal outlining how they will meet the procurement
requirements of the project

Resource

The labor, equipment and materials used to complete the activities in the Project

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Resource Planning

The process of identifying the resources required to complete the project. This includes a list
of the types of resources required and a schedule providing the use of and activities
undertaken by each resource

Risk

Any event which is likely to adversely affect the ability of the project to achieve the defined
objectives

Risk Management

The process by which risks to the project (e.g. to the scope, deliverables, timescales or
resources) are formally identified, quantified and managed during the project. The process
entails completing a number of actions to reduce the likelihood of occurrence and the
severity of impact of each risk

Risk Mitigation

A set of actions to be taken to avoid, transfer or mitigate a risk, based on its priority. This
includes the preventative actions to be taken during the project to reduce the likelihood of
the risk's occurring as well as the contingent actions to be taken to reduce the impact on the
project should the risk eventuate

Risk Planning

The formulation of a document which outlines the foreseeable project risks and provides a
set of actions to be taken to both prevent the risk from occurring and reduce the impact of
the risk should it eventuate

Scope

The total aggregation of deliverables to be produced by the project

Solution

A set of deliverables which, once combined, solve a particular business problem (or realize a
particular business opportunity)

Stage-Gate

A checkpoint at the end of each project phase to ensure that the project has achieved its
stated objectives and deliverables as planned

Statement of Work

A document which defines the procurement requirements of the project in sufficient detail to
enable potential suppliers to determine if they are able to meet those requirements

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Supplier Contract

An agreement between the Project Team and an external supplier for the acquisition of a
defined set of products to meet the procurement requirements of the Project

Tender Document

A formal document included during the tender process which outlines the information
required to provide the Project Team with the confidence that a supplier can meet the
procurement needs of the project. The RFI and RFP are both examples of Tender
Documents

Tender Management

The process by which interested suppliers are identified, evaluated and selected for the
supply of products (goods or services) to the project. This process entails formalizing the
procurement requirements and tender documentation, receiving tender responses and
selecting a preferred supplier

Terms of Reference

A document which outlines the purpose of the project, the manner in which the project will be
structured and how it will be successfully implemented

Time Management

The process within which time spent by staff undertaking project tasks is recorded against
the project

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