Methods of Project Implementation

Vinay Jain
Project Formulation & Management | II Sem. M Plan | UTD, CSVTU Bhilai
April, 2020
PROJECT IMPLEMENTATION METHODS
The Project implementation is a process whereby " project
inputs are converted in to project outputs". May be looked at
as

 Putting in action the activities of the project

 Putting in to practice what was proposed in the project

proposal in to the actual project

 Management of the project or executing the project intention.

- Ernesto A Frenco

PROJECT IMPLEMENTATION OVERVIEW

Once the planning the project is completed, the next step is to start the project implementation
phase, the third phase of the project management life cycle. The implementation phase
involves putting the project plan into action. It’s here that the project manager will coordinate
and direct project resources to meet the objectives of the project plan. As the project unfolds,
it’s the project manager’s job to direct and manage each activity, every step of the way. That’s
what happens in the implementation phase of the project life cycle

To implement a project means to carry out activities proposed in the application form with
the aim to achieve project objectives and deliver results and outputs. Its success depends on
many internal and external factors. Some of the most important ones are a very well organised
project team and effective monitoring of project progress and related expenditures.

Project Implementation Phase

Project Activation - This means making arrangements to have the project started. It involves
coordination and allocation of resources to make project operational.

Project Operation - This is practical management of a project. Here, project inputs are
transformed into project outputs for achieving immediate project objectives
PROJECT IMPLEMENTATION METHODS
The project implementation methods include

1. Gantt Chart
2. Critical path Method (CPM) or Network Analysis
3. Project Evaluation and Review Techniques PERT
4. Risk Management Strategies
5. Budgeting process
6. Work break down methods
7. Resource Histograms
8. Report (Project Initiation Document)
9. Project Management Software and Systems
10. Earned Value Management (EVM)

Project Management Systems

Project Initiation Document

Project Implenation Plan

Histograms & Mile stones

Work Break down Process

Risk Management Strategies

CPM & PERT

Gantt Charts
GANTT CHARTS

A time chart devised by Henry Gantt in 1917, an American engineer. A Gantt

chart is a horizontal bar chart used for project scheduling. Each activity or
task is depicted as a block over time, actual performance is recorded in real
time and compared to planned deadlines necessary for achieving completion.

The use of Gantt Charts as a tool

- Can be used to plan time scale for a project
- Can be used to estimate resources required
- Graphical illustration of a schedule of tasks to complete e.g. ideal wall chart for
the office and easy to visualise and interpret at meetings
- Helps to plan, coordinate, and track specific tasks for a project
- Good for small projects when the number of tasks or activities are small and
not complex e.g. good for simple projects.

Illustration of a Gantt chart

Week number
Week 0 1 2 3 4 13 14 15 16 17 18 19 20
Project
activities

Design Plan
Actual
Integration Plan
Actual
Testing Plan
Going live Plan
Training Plan

CRITICAL PATH METHOD

Gantt charts are a poor time management tools when projects are lengthy and complex.
There often exists in large projects a high interdependency between various tasks e.g. some
activities cannot start, until others have been completed first, therefore many activities are
interrelated. Gantt charts in these circumstances are less desirable because they do not
display or indicate interdependencies. Network (or critical path) analysis can display more
logically the sequence and timing of each activity, they communicate interdependency and a
more effective time management tool for large and complex projects.

The use of critical path analysis as a tool

Good visual communication and planning tool for effective time management.

Displays clearly interdependent relationships that exist between the different

activities or tasks to be completed.

Arranges tasks or activities into an optimum sequence of events allowing a project to

be completed in the most efficient time possible.

Elapsed time (or estimated time) to complete the project can be calculated.

Highlights those activities which are ‘critical activities’ e.g. those tasks which must be
completed within their planned time, otherwise the elapsed time (or estimated time) of
the project will not be achieved.

Enables more effective resource planning, resources can be diverted away from ‘non-
critical’ to ‘critical activities’ e.g. staff could be moved from one task to another, should
problems of overrunning occur on critical activities. This does assume that resources
moved are directly substitutable between tasks.

Highlights ‘float times’ for all activities e.g. the amount of time an activity or task can
slip past its planned completion time, without delaying the elapsed time (or estimated
time) of the project. All critical activities have a float time of zero, because each must
be completed within their planned completion time, otherwise the elapsed time of the
project won’t be achieved.

Process of critical path analysis

1. Break down project into a logical sequence of activities to be completed.

2. Estimate the time duration of each activity.

3. Arrange activities in the most efficient sequence of events and estimate the
elapsed time of the project

PERT (PROJECT EVALUATION AND REVIEW TECHNIQUES)

The technique of PERT helps gives better time estimation for a project, by accounting for the
uncertainty when predicting task durations. As an illustration, the project manager could
estimate the worse, best and most probable duration of time for each activity and then
determine an ‘average’ completion time. This can be undertaken by assigning probabilities
to the three estimates and calculating an ‘expected value’. The average time of each activity
would then be used to configure the elapsed time of the project.

Advantages of critical path analysis (CPA)

Identifies interrelationships between different tasks or activities

Resources can be planned and allocated from using it e.g. staff planning

Good communication and planning tool for time management

Disadvantages of critical path analysis (CPA)

Assumes a trade-off between time and money but most staff cost could be a fixed not
variable cost

The complexity of the diagram will increase as more activities are included Key
uncertainties often exist when estimating the duration for activities, therefore can be a
poor prediction for elapsed time.

Symbols used to create a network diagram

RISK MANAGEMENT

Risk is the chance or probability of something that may or may not occur;
it is something which can be quantified (using standard deviation).

Uncertainty is something, which cannot be predicted with statistical

confidence, normally due to insufficient informati on

In a project environment there is always a risk or chance that adverse conditions occur, which
could cause the project to fail, or fail to meet its planned objectives e.g. time, cost and quality.
A project manager or a project board should consider the different tasks, activities and work
to accomplish project deliverables, and consider any risk that an actual outcome could differ
to an expected outcome. The financial and non-financial effects of each risk should be well
documented, each risk perhaps classified into groups for better understanding of its
implications. Models such as PEST or SLEPT analysis and other derivatives help to analyse
different types of risk

e.g. social, legal, economic, political and technological risk. Risk management processes can
also help to identify those risks that are controllable and uncontrollable, once each risk has
been identified and the scale or impact of each clearly understood, appropriate risk
management strategies can be implemented in order to control each risk. This will be an on-
going activity throughout the various stages of the project.
A process of managing risk
1. Risk committee set up to address risk issues identified e.g. regular risk audits, to identify
and estimate the likelihood and consequences.
2. Risk register kept which documents:
a. All identified risks ‘ranked and prioritised’.
b. Significance and consequence of each risk reported.
c. Assigned responsibilities to individuals to manage different risks identified e.g. for
greater accountability.
d. Documentation of measures and actions to be taken for each risk, in the event that it
does occur e.g. risk management strategies.
3. Existing processes for risk management reviewed and refined over time e.g. continuous
improvement.

Risk management strategies

• Retain the risk (Absorption) e.g. if the risk is small and won’t affect the project a great deal
then ‘do very little and live with it’.
• Avoid the risk (Avoidance) e.g. take action to ensure the risk is prevented or avoided in
some way e.g. contract clauses, abort contract etc., but this will cost money and some risks
are unavoidable, therefore avoidance may not be feasible.
• Reduce the risk (Reduction) e.g. ensure a risk is minimised by effective control systems
such as, employment agencies to supply staff ‘temps’ in the event that progress falls below
what’s expected.
• Transfer the risk (Transference) e.g. pass or transfer the risk to a third party, an
‘underwriter’ or insurer therefore bears the risk, however this could cost allot of money.
• Contain the risk (Containment) e.g. immediate action taken to safeguard any unwanted
occurrence, such as more than enough funding or staff made available to prevent the
situation occurring, or two alternative suppliers on standby just in case, contain means to
control, lessen the intensity or hold in restraint, very similar to risk reduction.

THE BUDGETING PROCESS

A budget is a forecast or quantified plan of action. A quantified financial plan of action which
itemizes a projects income and expenditure allocated e.g. a list of all planned income and
expenses. Budgetary planning creates a budget as part of the planning process for the project.
Budgetary control compares the budgeted results as a ‘yardstick’ or target, in comparison to
actual results, in order to quantify any variances or deviations from the project plan. This
process at regular intervals throughout a project can be used to take control action and bring
actual results in line with the plans.
 Budgets may help in authorising expenditure, communicating objectives and
plans, controlling operations, coordinating activities, evaluating performance,
planning and rewarding performance.

Often reward systems involve comparison of actual with budgeted performance.

The process of producing budgets

• A budget manual is prepared to give instructions, reporting lines, delegate responsibilities,
communicate the timetabling and deadlines for submission of the different budgets.
• A budget committee may be formed to coordinate and administrate the process of
producing the different budgets. Budget committees help centrally control the process of
budgets being produced, they will communicate with other departments to coordinate and
consolidate the production of different budgets to be prepared.
• A budget officer (accountant) will often be appointed to assist the budget committee.

The purpose of budgets

P Planning

R Resource utilisation (or responsibility accounting)

I Integration or coordination

M Motivation

E Evaluation

WORK BREAKDOWN STRUCTURE (WBS)

The purpose of work breakdown structure (WBS) is to help plan effectively for a project by
breaking key tasks or activities down in to more manageable and smaller units of work.

WBS produces a detailed list of tasks to be performed for a project, helping to deliver better
costing, scheduling and resource planning for a project.

Cost breakdown structure (CBS) lists every item classified and its expenditure for the project
in order to get a more detailed estimate of cost or expenditure.

Examples of how WBS or CBS can aid budgeting planning

• Staff hours for each task or activity assigned x staff hourly rates per hour
• Staff hours for each task or activity assigned x overhead rates per hour
• Equipment, financing or resources more accurately planned for given more detail of the
tasks to undertake
During a project, financial control can be achieved by actual expenditure being tracked against
each budget allocated for the different tasks assigned. Regular progress can be monitored
using budget or time sheets, and control action taken if appropriate e.g. the process of
exception reporting.

The benefits of using WBS

Can be used to allocate and delegate responsibility to help accomplish different tasks or
activities e.g. control through greater accountability.

Can help sequence and schedule the timing of different events to improve effectiveness
of how time is allocated e.g. the most efficient sequence of accomplishing activities can
be understood.

Improves resource planning and the efficiency of how resources are consumed e.g.
accurate forecasts for project staffing to save cost.

Can be used as a basis of financial ‘exception reporting’ e.g. actual v budget cost
allowances, and also forecast more accurately the project costs.

Can be used for risk management e.g. to identify risks, and used as an on- going process
for monitoring risks for a project.

RESOURCE HISTOGRAMS & MILESTONES

A resource histogram is a column (or bar) chart that shows the number of resources assigned
to a project over time. Resource histograms normally presented as bar charts, can be an
effective tool for resource planning and coordinating project staff.

Milestones are a completion of major interim goals for a project e.g. the key stages of a
project from initiation to closure.

Gates are significant events or major objectives that have been accomplished at various
stages of a project. They assess the key completion or quality of work achieved. Gates are
smaller milestones, but well defined into the project management process, a firm deliverable
that can be realised and achieved.

The problem of following gates or milestones, unlike driving from one place to another, is
that the project road signs are not that clear and often can move.

Illustration of a histogram
Project H requires the following types of staff over the next 5 days
 Staff type and number Day 1 Day 2 Day 3 Day 4 Day 5
required
3 3 1 1 1
Analyst

Programmer 0 2 3 2 1

Testers 0 0 0 2 2

Total 3 5 4 5 4

1 2 3 4 5 Days

REPORTS

A project initiation document (PID) (project proposal document or charter) is a report to

justify a business case for a project, detailing the justification for undertaking, it and for
continuation of it. A PID is used to define the financial and other benefits which the project is
expected to deliver. It also details the cost, timescale and other constraints within which the
project is required to operate and against which performance will be evaluated.
Contents of a PID
• Terms of reference e.g. the purpose of the report
• Scope and goals of the project
• Organisational team structure required and reporting procedures
• Cost estimates
• Time estimates
• Overview of any risks of the project
• Views of stakeholders to be sought and consulted with

A project planning document (PPD) will normally consist of a project technical and resource
plan at the beginning of a project and used as a reference tool throughout the project.

Contents of a PPD
• Project resource plans
• Quality policies and quality control procedures
• The terms of reference e.g. definition of projects purpose, scope and objectives with
any relevant background information
• Network (critical path) analysis e.g. time estimates and elapsed time identified
• Work breakdown structure and forecasts for expenditure
• Risk analysis undertaken and recommendations
• Timetable for meetings and deadlines
• Organisational team structure and contacts

Progress (or exception reports) can be used to monitor and control the project. This allows
the project board or project manager to identify cost, scheduling or quality related problems
earlier, and view the current status of progress.

• Actual time compared with plan and material exceptions summarised

• Actual cost compared with plan and material exceptions summarised
• Actual quality compared with plan and material exceptions summarised

The post completion (PC) report would be produced at the closing or completion stage of a
project. This report will summarise project results achieved and used for the purpose of
terminating or ‘signing off’ the project.

Contents of a PC report

• Results documented from staff appraisals undertaken

• Stakeholder marketing and surveys undertaken e.g. client
• Post completion audit and report e.g. post project review of time cost and quality
• Recommendations for ‘tying up loose ends’
 • Recommendations for improving future project management
• A section for the acceptance of project deliverables by the customer
• A section for the official close down and end to the project

PROJECT MANAGEMENT SOFTWARE & SYSTEMS

Project management software on the market today includes Lotus Notes / Domino or
Microsoft Outlook / Exchange. These fairly comprehensive and integrated packages provide
project applications for timesheets, expense reports, resource management, job costing, help
desk services, time reporting and much more.

Benefits of project management (PM) software

Project scheduling. Project software can help automatically produce critical path diagrams
or Gantt charts. The software can also instantly update these time plans when new
information is entered and produce automatic ‘exception’ reports to monitor and control the
project e.g. actual v budgeted time.

Budgeting and controlling cost. Project software will help plan and control project
expenditure more effectively and improve communication of financial reporting. After
budgeted data has been input, actual costs and estimated costs to complete the project can
be tracked, any material exceptions instantly reported. e.g. actual v budget expenditure.

Communication and coordination. Project software can provide automatic report

templates with good graphical features, these help to provide effective information and
communicate to various stakeholders of a project. Real-time calendars, diaries and
reminders can also help coordinate meetings more effectively.

Work breakdown structure. Project software can help assist with planning and
coordination of project staff by breaking tasks or activities down in to more manageable and
smaller units of work or activities to be completed. Automatic schedules of work can be
printed off and used to delegate tasks to different staff within the project team.

Risk management. Project software will help manage the sheer complexity of managing
funds, equipment, staff and other stakeholders to achieve project objectives. Good for ‘What
if’ analysis, the project manager can change different variables e.g. the duration of activities
or cost allowances, in order to understand any fundamental impact this would have on the
project.

Greater accuracy and ease of updating and reprinting reports. Improves the efficiency of
how data is gathered, summarised and communicated.
Earned Value Management (EVM) is a project management system that combines schedule
and cost performance to answer the key question, “What did we get for our money spent?”.
EVM is a measurable performance system which provides quantitative data for project
decision making and control, it is a systematic project management process used to identify
project variances or ‘exceptions’ by the comparison of worked performed and work planned.
It is a measurable system for project scope, scheduling and cost in a single integrated system,
providing an early warning for performance problems.

Essential features of EVM systems

1. A quantified project plan that identifies work or tasks to be accomplished.

2. A valuation of planned work, or tasks to be accomplished e.g. the Planned Value (PV)
or Budgeted Cost of Work Scheduled (BCWS).
3. Pre-defined metrics e.g. ‘cost drivers’ and ‘overhead rates’ to quantify the actual
accomplishment of work e.g. Earned Value (EV) or Budgeted Cost of Work Performed
(BCWP).
4. The different project activities or tasks accomplished “earn” value as they are being
completed, this ‘Earned Value’ (EV) is compared to planned costs (Planned value) to
determine project performance and trends.