Chapter 9

The concept of Project Management

Dr Shaun de Wet (2024/09/10)
Chapter 9

1. Session content diagram

2. The importance of project management in
delivering change
3. A project and project management
4. Project constraints
5. The project life cycle
6. Five project management process areas
7. Initiating
8. Planning
9. Executing and controlling
10. Closing
11. Summary diagram

Footnote 2
Section 2: The Importance of Project Management in Delivering
Change
The importance of project management in delivering change

• Change is inevitable!
• Change will be delivered through projects =
critical to understand project management
and be able to complete projects successfully

Footnote 4
Section 3: A Project and Project Management
A project and project management
• A project is ‘an undertaking that has a beginning and The Association of Project Managers defines a project as: ‘A
an end and is carried out to meet established goals human activity that achieves a clear objective against a time
within cost, schedule and quality objectives.’ scale.’
Haynes, Project Management, 1997
Characteristics of a project: The primary function of a project manager is to manage the
• Unique undertaking to achieve a specific objective. trade-offs between performance, time and cost.
• Defined beginning and end.
• Resources explicitly allocated for the length of the CIMA Official Terminology defines project management as
project. ‘the integration of all aspects of a project, ensuring that the
• Various stakeholders have various interests. proper knowledge and resources are available when and
where needed, and above all to ensure that the expected
• Uncertainty and risk in deliverables.
outcome is produced in a timely, cost-effective manner.'

• It is important to determine whether an activity is

classified as a project, as projects should be managed
using project management techniques.

Footnote 6
Section 4: Project Constraints
Project constraints
• The objective of project management is a successful
project.

• A project will be deemed successful if it is completed at

the specified level of quality, on time and within
budget.
• This is known as the ‘iron triangle’.

Footnote 8
Section 5: The Project Life Cycle
The project life cycle
• To ensure that a project is delivered successfully
within the agreed constraints, a suitable framework is
needed.
• “The Project Lifecycle”, Gido and Clements (1999)

Footnote 10
The project life cycle

Phase 1: Identification of a need • The business case presents the project's financial
• To determine whether a proposed project can and non-financial costs and benefits—provide a
achieve its objective and whether it can do so balanced commercial recommendation supported
cost-effectively. by appropriate evidence.
• When a need is identified, an initial feasibility • Once approved, the PID provides the project
study may be required to determine whether the manager with the terms of reference and authority
project is viable to apply for resources.
• Project Initiation Document: A project
initiation document (PID) consists of a
statement of requirements, confirmation of the
project is scope (and what falls outside the
scope) and a business case.

Footnote 11
The project life cycle

Phase 2: Development of a solution Phase 3: Implementation

• The best way of delivering that need must be When the work is carried out
discussed and agreed. Account for unforeseen circumstances
• It is at this time that the constraints are Manage changes to the scope or resources
addressed, and a project management plan is
prepared. Four key areas during the implementation stage:
• Leadership
• A Project Management Plan: A project • Supply chain management
management plan/project quality plan/project
• Control
plan outlines how the project will be planned
• Problem solving and decision making
monitored and implemented.

Footnote 12
The project life cycle

Phase 4: Completion
• The completion phase addresses the following
areas:
• The project has been fully delivered and
signed off as completed?
• Have all accounts with suppliers and other
stakeholders been settled?
• Is responsibility for ongoing operation and
maintenance handed over?
• All necessary documentation is completed?
• A post-completion audit takes place to
ensure that future projects benefit from any
lessons learned.

Footnote 13
Section 6: Five Project Management Process Areas
Five project management process areas

Footnote 15
Section 7: Initiating
Initiating

Projects are initiated when a need or Feasibility

objective is defined • Technical feasibility – can it be done?
• Social (operational) feasibility – does it fit with
There are several reasons why a project would current operations?
be initiated: • Ecological (environmental) feasibility – how does it
• To help meet the company’s long-term goals and affect the environment?
objectives. • Economic (financial) feasibility – is it worth it?
• Process/service enhancement.
Cost-benefits analysis
• Solve problems identified internally or externally.
• Benefits
• To take advantage of new opportunities.
• Tangible an intangible
• Statutory/legal requirements.
• Costs
• Capital, revenue, finance costs

Footnote 17
Initiating

Project initiation document (PID)

• The main output of the initiation stage of the project is the project initiation document
• Two primary reasons for having:
• Secure authorisation of the project
• Act is a base document against which project progress and changes can be assessed.

• Defines the project and its scope.

• Justifies the project.
• Secures funding for the project.
• Defines the roles and responsibilities.
• Gives people the information they need to be productive and effective.

Footnote 18
Initiating

Contents of a project initiation document (PID)

There is no set format required for a PID, but it would generally contain the following sections:
• Purpose statement: Explains why the project is being undertaken.
• Scope statement: This section defines the project's boundaries by outlining the major activities. It is important
to prevent ‘scope creep,’ which occurs when additional activities are added that make achieving the cost and
time objectives impossible.
• Deliverables: Tend to be tangible elements of the project, such as reports, assets and other outputs.

Footnote 19
Initiating

Contents of a project initiation document (PID)

There is no set format required for a PID, but it would generally contain the following sections:
• Cost and time estimates: It is a good idea to start by getting a feel for the organisation’s expectations
regarding the project budget. These estimates will be modified later in the project, but they are necessary to
give a starting point for planning.
• Objectives: A clear statement of the mission, CSFs and key milestones of the project.
• Stakeholders: A list of the major stakeholders in the project and their interest in the project.
• Chain of command: A statement (and diagram) of the project organisation structure.

Footnote 20
Section 8: Planning
Planning

The planning stage of a project is The project manager and planning

essential as it helps to: • Within the planning stage, the primary
• Communicate what must be done, when and by responsibility is to define the project objective
whom. clearly with the customer and then to communicate
this objective to the rest of the project team,
• Encourage forward thinking.
making it clear what constitutes a successful
• Provide the measures of success for the project.
project outcome.
• Make clear the commitment of time, resources
(people and equipment), and money required for
• Check: Examples of project planning in the
the project.
textbook
• Determine if targets are achievable.
• Identify the activities the resources need to
undertake.

Footnote 22
Section 9: Executing and Controlling
Execution and controlling

The project manager must provide Change control

leadership and coordination • Internal or external factors = change the outcome
• Configuration management and change control of the project
(NB KNOW THE DIFFERENCE) • Change management process is in place
• Change is an inevitable part of any project and • All stages of the project
must be managed carefully during the execution • Not to stop but to deal with
stage.

Footnote 24
Execution and controlling

Problems if the change is not managed:

• Working on old plans = waste time and resources
• Unlikely to deliver the set objectives
• End users are unhappy
• Project ends up costing more
• A cause of conflict and confusion for
stakeholders

Footnote 25
Execution and controlling

Change process Configuration management

• The change management process must be • Tracking and controlling all aspects of the project
agreed upon at the outset of the project and all documentation and deliverables from the
project.

• Have a method for prioritising changes Included in configuration management will

requested. be the following:
• Authorisation for changes. • Version control for documentation.
• Agreement on a change in budget. • Ownership and responsibility for documentation.
• Recording of changes. • Authorisation and tracking procedures for any
• Communication of changes. changes required to documentation.
• Monitoring and control procedure to ensure only
authorised. documents and records are held.
• Access control over project records.
Footnote 26
Execution and controlling

What are the main purposes of a control

system?
• Prevention of deviations.
• Correction of deviations.
• Prevention of any future deviations by revising
plans, targets, measures, etc.
• Implement recommendations by monitoring,
reviewing, and evaluating the project.

Footnote 27
Execution and controlling

Performance and conformance Project reports

management To enhance and facilitate the communication of
• Performance management is required control and progress throughout the life of the
throughout the project to assist the progress project, the following main reports are produced:
of each aspect. • Exception reports
• Progress reports
Measurement to assess performance can
include Project meetings
• Scope performance measures. • Team meetings
• Functional quality measures. • Project progress review meetings
• Technical quality performance measures. • Project problem-solving meetings
• Client satisfaction measure. • Meeting with external parties

Footnote 28
Section 10: Closing
Closing

Several activities must be undertaken at

this stage:
• Project is delivered to users.
• End of project meeting.
• Formal sign-off of the project.
• Project review meetings.
• Final report issued.
• Project team disbanded.

Footnote 30
Closing

The internal review (team) The external review (customer)

• An opportunity to review the planning, • A crucial aspect of project closure.
management, reporting and control
• An important part of establishing whether the
• An opportunity to discuss the successes and project has satisfied the customer's
failures of the project process
requirements.
• To establish what can be learned in future for the
• To obtain feedback to help improve future
benefit of other projects
projects.
• An opportunity for the project manager to discuss
with individual team members their role in the • When customers can voice concerns
project and the means by which they could regarding how the project was carried out.
improve their own performance on future
projects.

Footnote 31
Closing

The contents of the final project report will

include:
• Brief overview of the project.
• Customer original requirements and original
project deliverables. List of deliverables which
the customer received.
• Actual achievements regarding costs, schedules,
and scope.
• Degree to which the original objective was
achieved.
• Future consideration.

Footnote 32
Closing

The purpose of the closing stage of the • Cost of the system compared to budgeted cost with
process is: an explanation of variances.

• To ensure that the project is finally completed • Comparison of time taken with the budgeted time
and conforms to the latest definition of what was anticipated.
to be achieved. • Effectiveness of the management process.
• Formal comparison between PID and project • Significance of any problems encountered.
outcomes.
• To evaluate the performance of the project
against agreed levels of performance.

Footnote 33
Closing

The purpose of the closing stage of the • To provide continuous improvement and feedback. Any
improvement, even a small one, is important.
process is:
• To learn from the experience.
• To complete the project termination activities,
such as:
• Organising and filing all project documentation.
• Receiving and making final payments to suppliers
of resources.
• Agree formally with the customer that all agreed
deliverables have been provided successfully.
• Meeting with the project team and customers to
report on project successes and failures.
• Disbanding the project team.

Footnote 34
Closing

Post Completion Audit (PCA) Continuous improvement

• Designed to review the success of the project. • View project management as a strategic
• User feedback. competence from which they can gain a
competitive advantage.
• Did the project help the business deliver the
benefits defined in the organisational business • Without continuing to improve their project
case? management approach, they will continue to make
the same mistakes.
• Augment the organisation’s experience and
knowledge. • Requires a strong approach to culture that believes
their approach and efforts by all to improve the
• More realistic for the casting of a project cost and
approach continuously
revenues, enhanced understanding of project
failures, an improved future decision-making and
project management performance

Footnote 35
Section 11: Chapter summary
Summary diagram

Footnote 37
Thank you!

Questions? NB!
• Do the end of chapter OTQ questions 1 to
10!
• Do the case study style questions 1 and 2!

Footnote 38