EVOLUTION OF PROJECT MANAGEMENT

2570 BC: The Great Pyramid of Giza Completed

The Pharaohs built the pyramids and today archaeologists still argue about how they achieved
this feat. Ancient records show there were managers for each of the four faces of the Great
Pyramid, responsible for overseeing their completion. We know there was some degree of
planning, execution and control involved in managing this project.
208 BC: Construction of the Great Wall of China
Later still, another of the Seven Wonders of the World was built. Since the Qin Dynasty (221BC-
206BC), construction of the Great Wall had been a large project. According to historical data, the
labour force was organised into three groups: soldiers, common people and criminals. The
Emperor Qin Shihuang ordered millions of people to finish this project.
1917: The Gantt chart Developed by Henry Gantt
One of the forefathers of project management, Henry Gantt is best-known for creating his self-
named scheduling diagram, the Gantt chart. It was a radical idea and an innovation of worldwide
importance in the 1920s. One of its first uses was on the Hoover Dam project started in 1931.
Gantt charts are still in use today and form an important part of the project managers' toolkit.
1956: The American Association of Cost Engineers (now AACE International) Formed
Early practitioners of project management and the associated specialties of planning and
scheduling, cost estimating, cost and schedule control formed the AACE in 1956. It has
remained the leading professional society for cost estimators, cost engineers, schedulers, project
managers and project control specialists since. AACE continued its pioneering work in 2006,
releasing the first integrated process for portfolio, programme and project management with their
Total Cost Management Framework. 1957: The Critical Path Method
(CPM) Invented by the Dupont Corporation Developed by Dupont, CPM is a
technique used to predict project duration by analyzing which sequence of activities has the least
amount of scheduling flexibility. Dupont designed it to address the complex process of shutting
down chemical plants for maintenance, and then with maintenance completed restarting them.
The technique was so successful it saved the corporation $1 million in the first year of its
implementation.
1958: The Program Evaluation Review Technique (PERT) Invented for the U.S. Navy's
Polaris Project
The United States Department of Defense's US Navy Special Projects Office developed PERT as
part of the Polaris mobile submarine launched ballistic missile project during the cold war. PERT
is a method for analysing the tasks involved in completing a project, especially the time needed
to complete each task and identifying the minimum time needed to complete the total project.

1962: United States Department of Defense Mandate the Work Breakdown Structure
(WBS) Approach
The United States Department of Defense (DOD) created the WBS concept as part of the Polaris
mobile submarine launched ballistic missile project. After completing the project, the DOD
published the work breakdown structure it used and mandated that this procedure be followed in
future projects of this scope and size. WBS is an exhaustive, hierarchical tree structure of
deliverables and tasks that need to be performed to complete a project. Later adopted by the
private sector, the WBS remains one of the most common and effective project management
tools.
1965: The International Project Management Association (IPMA) Founded
IPMA was the world's first project management association, started in Vienna by a group as a
forum for project managers to network and share information. Registered in Switzerland, the
association is a federation of about 50 national and internationally oriented project management
associations. Its vision is to promote project management and to lead development of the
profession. Since its birth in 1965, IPMA has grown and spread worldwide with over 120,000
members in 2012.
1969: Project Management Institute (PMI) Launched to Promote the Project Management
Profession Five volunteers founded PMI as a non-profit professional organisation dedicated to
advance the practice, science and profession of project management. The Commonwealth of
Pennsylvania issued Articles of Incorporation for PMI in 1969, which signified its official start.
During that same year, PMI held its first symposium in Atlanta, Georgia and had an attendance
of 83 people. Since then, the PMI has become best known as the publisher of, 'A Guide to the
Project Management Body of Knowledge (PMBOK)' considered one of the most essential tools
in the project management profession today. The PMI offers two levels of project management
certification, Certified Associate in Project Management (CAPM) and Project Management
Professional (PMP).
1975: PROMPTII Method Created by Simpact Systems Limited
PROMPTII was developed in response to an outcry that computer projects were overrunning on
time estimated for completion and original budgets as set out in feasibility studies. It was not
unusual to experience factors of double, treble or even ten-times the original estimates.
PROMPTII was an attempt to set down guidelines for the stage flow of a computer project. In
1979 the UK Government's Central Computing and Telecommunications Agency (CCTA)
adopted the method for all information systems projects.
1984: Theory of Constraints (TOC) Introduced by Dr. Eliyahu M. Goldratt in his Novel
"The Goal"TOC is an overall management philosophy that is geared to help organisations
continually achieve their goal. The title comes from the view that any manageable system is
limited in achieving more of its goal by a small number of constraints, and there is always at
least one constraint. The TOC process seeks to identify the constraint and restructure the rest of
the organisation around it by using Five Focusing Steps. The methods and algorithms from TOC
went on to form the basis of Critical Chain Project Management.
1987: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Published
by PMIFirst published by the PMI as a white paper in 1987, the PMBOK Guide was an attempt
to document and standardise accepted project management information and practices. The first
edition was published in 1996, followed by a second in 2000, and a third in 2004. The guide is
one of the most essential tools in the project management profession today, and has become the
global standard for the industry.
1989: Earned Value Management (EVM) Leadership Elevated to Under-secretary of
Defense for Acquisition
Although the earned value concept has been around on factory floors since the early 1900s, it
only came to prominence as a project management technique in the late 1980s early 1990s. In
1989, EVM leadership was elevated to the Under-secretary of Defense for Acquisition, thus
making EVM an essential part of programme management and procurement. In 1991, Secretary
of Defense Dick Cheney cancelled the Navy A-12 Avenger II Programme because of
performance problems detected by EVM. The PMBOK Guide of 1987 has an outline of Earned
Value Management (EVM) subsequently expanded on in later editions.
1989: PRINCE Method Developed From PROMPTII
Published by the UK Government agency CCTA, Projects in Controlled Environments
(PRINCE) became the UK standard for all government information systems projects. A feature
in the original method, not seen in other methods, was the idea of 'assuring progress' from three
separate, but linked perspectives. However, the PRINCE method developed a reputation for
being too unwieldy, too rigid and applicable only to large projects, leading to a revision in 1996.
1997: Critical Chain Project Management (CCPM) Invented
Developed by Eliyahu M. Goldratt, Critical Chain Project Management is based on methods and
algorithms drawn from his Theory of Constraints (TOC) introduced in his 1984 novel titled, 'The
Goal'. A Critical Chain project network will keep the resources levelly loaded, but will need
them to be flexible in their start times and to switch quickly between tasks and task chains to
keep the whole project on schedule.
2006: "Total Cost Management Framework" Release by AACE International
Total cost management is the name given by AACE International to a process for applying the
skills and knowledge of cost engineering. It is also the first integrated process or method for
portfolio, programme and project management. AACE first introduced the idea in the 1990s and
published the full presentation of the process in the, 'Total Cost Management Framework'.
2008: 4th Edition of PMBOK Guide Released
The fourth edition of the guide continues the PMI tradition of excellence in project management
with a standard that is easier to understand and implement, with improved consistency and
greater clarification. The updated version has two new processes not in the previous versions.
2009: Major PRINCE2 Revision by Office of Government Commerce (OGC)
A major revision has seen the method made simpler and more easily customizable, a common
request from users. The updated version has seven basic principles (not in the previous version)
that contribute to project success. Overall the updated method aims to give project managers a
better set of tools to deliver projects on time, within budget and to the right quality.
2012: ISO 21500:2012 Standard for Project Management Released
In September 2012, the International Organisation for Standardization published "ISO
21500:2012, Guidance on Project Management". It is the result of five year's work by experts
from more than 50 countries. The standard is designed for use by any organisation, including
public, private or community organisations, and for any project, regardless of complexity, size
and duration.

2012: 5th Edition of PMBOK Guide Released

The fifth edition of the guide, published in December 2012, provides guidelines, rules and
characteristics for project management, which are generally recognized as good practice in the
profession. The updated version introduces a 10th knowledge area called, 'Project Stakeholder
Management' and also includes four new planning processes.

INTRODUCTION TO PROJECT MANAGEMENT

Definitions of a project
A project is a series of related activities which must be implemented in a logical sequence from
a given start time to a given end time. Projects are goal oriented, involving the coordinated
undertaking of interrelated activities, are of finite duration and are all to some extent, unique.

The PMBOK (2012) defines a project as a temporary Endeavour undertaken to create a unique
product or service. Temporary means that every project has a definite end. Unique means that
the product or service is different in some distinguishing way from all similar products or
services.

A project can be considered to be any series of activities and tasks that;

 Have a specific objective to be completed within certain specifications
 Have a defined start and end dates
 Have funding limits (if applicable)
 Consume human and non human resources (money, people, equipment)
 Are multifunctional (cut across several functional lines

A project may also be defined as a means of moving from a problem to a solution via a series of
planned activities. It is a set of interrelated activities that has a definite starting and ending point
and results in the accomplishment of a unique often major outcome; or an identifiable goal and
an integrated system of complex but interdependent relationships.

A project is an investment of money or otherwise in a time-bound intervention to create

productive deliverables/outcomes

The above definitions reveal the following facts about projects;

 Projects are complex one- time processes – Projects arises for a specific purpose or to
meet a stated goal. They are complex because they typically require the coordinated
inputs of numerous members of the organization. Project members may be from different
 departments or other organizational units or from one functional area. Because a project
is intended to fulfill a stated goal, it is temporary. It exists only until its goal is met and
then it is dissolved.
 Projects are limited by budget, schedule and resources – project work requires that
members work with limited financial and human resources for a specified time period.
All its activities are constrained by the limitations on budget and personnel availability
(projects are resource constrained activities).
 Projects are developed to resolve a clear goal or a set of goals – project goals or
deliverables define the nature of the project and that of its team. Projects are designed to
yield tangible results e.g. a new product or service. Whether the goal is to build a bridge,
implement a new accounts receivable system or win a presidential election, the goal must
be specific and the project organized to achieve a stated aim.
 Projects are customer focused – whether the project is responding to the needs of an
internal organizational unit or intended to exploit a market opportunity external to the
organization, the underlying purpose of any project is to satisfy customer needs.

General project characteristics

Projects are characterized by the following properties
 Projects are ad hoc endeavors with a clear life cycle – projects are activities that are
initiated as needed, operate for a specified time periods over a fairly well understood
development cycle and are then disbanded. They are temporary operations.
 Every project is unique. It requires the doing of something different, something that was
not done previously. Even in what are often called “routine” projects such as home
construction, the variables such as terrain, access, zoning laws, labour market, public
services and local utilities make each project different. A project is a one-time, once-off
activity, never to be repeated exactly the same way again.
 Projects cut across organizational lines. Projects always cut across the regular
organizational lines and structures within a firm. They do this because the project needs
to draw from the skills and the talents of multiple professions and departments within the
firm and sometimes even from other organizations. For instance a project aimed at new
product development may require the combined work of engineering, finance, marketing,
design, production etc. Likewise in the global business environment, many companies
have crossed organizational boundaries by forming long term partnerships with other
firms in order to maximize opportunities.
 Projects involve unfamiliarity. Because a project differs from what was previously
done, it also involves unfamiliarity. A project also encompasses new technology and, for
the organization/firm undertaking the project, these bring into play significant elements
of uncertainty and risk.
 The organization usually has something at stake when undertaking a project. The
unique project “activity” may call for special scrutiny or effort because failure would
jeopardize the organization/firm or its goals.
 A project is the process of working to achieve a goal. During the process, projects pass
through several distinct phases, which form and are called the project life cycle. The
tasks, people, organizations, and other resources will change as the project moves from
 one phase to the next. The organizational structure and the resource expenditures build
with each succeeding phase; peak; and then decline as the project nears completion.
 Projects are terminated upon successful completion of performance objectives –
projects differ from other conventional processes in that they are defined by limited life
cycles. They are initiated, completed and dissolved.
 Projects are responsible for the newest and most improved products, services and
organizational processes – projects are tools for innovation. Many companies rely on
projects as vehicles for going beyond conventional activities. Projects are the stepping
stone by which we move forward.
 Projects are the building blocks in the design and execution of organizational
strategies – projects allows organizations to implement companywide strategies. They
are the principle means by which companies operationalize corporate level objectives. In
effect, projects are the vehicles for realizing company goals.

NB; Projects differ from other organizational activities which involve repetitive processes e.g. a
steel plant orders raw materials, makes steel and ships finished products again in a recurring
cycle. Projects do not conform to common standards of operations; they do things differently
and often reveal new and better ways of doing things. The following are the distinctions
between process and projects

Process Projects
Repetitive Non repetitive
Several objectives One objective
People are homogenous People are more heterogeneous
Ongoing One shot- limited life
Well established systems in place to integrate efforts Systems must be created to integrate efforts
Greater certainty of performance, cost schedule Greater uncertainty of performance, cost schedule
Supports status quo Upsets status quo

Definitions of project Management:

Project management is the application of knowledge, Skills, tools and techniques to project
activities in order to meet or exceed stakeholder needs and expectations from a project.
Project management is the discipline of planning, organizing, securing and managing resources
to bring about the successful completion of specific project goals.
Project Manager- A project manager is a professional in the field of project management.
Project managers have the responsibility of the planning, execution, and completion of any
project with Limited time and other resources.
A project manager should possess solid technical knowledge (to be able to take usage of models
and instruments for planning, scheduling and control), experience in human resources sphere (to
be able to manage persons form different field) and professional background in situations of
stress, limited time and resources
Project Team- Project team refer to a number of people who work close together to achieve
shared common goals. It is vital to identify all the team members and clearly define their roles
and responsibilities. Team members can have various roles such as engineers, technicians,
planners, software specialists, etc. Projects pose particular problems of building and managing
project teams. Project managers should have good team management skills.
Why are projects important
Some of the reasons why projects and project management can be crucial in helping
organizations achieve its strategic goals are;
 Shortened project lifecycles- the days when a company could offer a new product and
depend upon years of competitive domination are gone. The lifecycle of new products is
measured in terms of months or even weeks rather than years. Organizations have
recognized the need for agility in offering and upgrading new services at an increasingly
rapid pace.
 Narrow product launch windows – organizations are aware of the dangers of missing the
optimum point at which to launch a new product and must take a proactive view towards
timing of product introductions.
 Increasingly complex and technical products – the world today is complex. Products are
complicated, technically sophisticated and difficult to produce efficiently. The public’s
appetite for the next big thing continues unabated and substantially unsatisfied.
 Emergence of global markets – the past decade has seen the emergence of enormous new
markets for almost every type of product or service. The increased globalization of the
economy coupled with enhanced methods of quickly interacting with customers and
suppliers has created a new set of challenges for the business. In this global setting,
project management techniques provides companies with the ability to link multiple
business partners, respond quickly to market demands and supplier needs while
remaining agile enough to anticipate and respond to rapid shifts in customer tastes.
 An economic period marked by high inflation – High inflation limits the ability of
businesses to maintain profitability by passing along cost increases. Merely raising prices
may not increase profits. Successful firms in the future will be those that enhance profits
by streamlining internal processes i.e. save money by doing it better than their
competition.

TYPES OF PROJECTS
 Construction and engineering projects eg construction of a building, abridge, a motor
way, a railway station, an airport, a power station, a sports stadium etc
 IT and computer projects – includes both computer hardware and software projects such
as computerizing the medical records, designing of personal websites etc
 Product development projects – includes the design and development of consumer
products eg designing, developing and testing of a washing machine or a mobile phone.
 Advertising and marketing projects e.g a marketing promotion campaign
 Bank projects such as implementing a new mortgage product.
 Event management such as exhibitions, concerts, conventions and shows.
 Human resource projects – performance appraisal process, preparing an annual report,
developing a new training curriculum.

DIFFERENCES BETWEEN PROJECT MANAGEMENT AND GENERAL

MANAGEMENT
 Project management involves a temporal undertaking while general management is a
going concern.
 In general management, budgeting is done periodically while in project management,
budgeting is done for the whole project.
  General management tends to be specialized e.g. finance, operations, marketing,
accounting etc while project management requires a multiplicity of skills.
 The environment of general management usually tends to be stable while project
management’s environment tends to be dynamic as uncertainties and risks are many.
 The general management tends to rely on positional authority as the main source of
authority while project management tends to rely on other sources of influence such as
technical expertise ability to negotiate with various stakeholders. Project management
will involve all functions of management i.e. POSDCORB.

THE PROJECT MANAGER

This individual has the authority, responsibility and accountability to achieve the project
objectives. A project manager integrates physical and human resources to deliver project
expected performance within the constraints of time, quality, scope and cost.
Characteristics of an effective project manager
 Background and experience consistent with the needs of the project.
 Leadership and strategic expertise in order to maintain an understanding of the overall
project and its environment while at the same time working on the details of the project
 Technical expertise in the area of the project in order to make sound technical decision
 Interpersonal competence and the people skills to take upon such roles as project
champion, motivator, communicator, facilitator etc.
 Proven managerial ability in terms of track record of getting things done.
To sum up, an effective project manager should be proficient in the following project knowledge
areas;
Integration management, scope management, time management, cost management, quality
management, human resource management, communication management, risk management and
procurement management.
Factors to consider when selecting a project manager
When selecting a project manager the following factors should be considered
 Broad experience and knowledge of relevant technologies in order to oversee and
coordinate activities of the project
 Understanding of all aspects of the target industry well enough to spot problems,
opportunities, monitor performance, and take corrective action.
 Excellent communication skills thus being able to bring together and communicate well
with the project team, project sponsors and target beneficiaries / end users.
 Team centric and empathy with ability to motivate
 Excellent organizational skills under crisis situations
 Creative and patient as well as having flexibility to listen to the team ideas, issues etc.
 Ability to manage the politics related to project without being pulled or blown out

Roles and responsibilities of the project manager

Generally, a project manager will require a range of management skills to plan and control all
aspects of the project.
The following make the roles and responsibilities of a project manager
 To plan thoroughly all aspects of the project, soliciting the active involvement of all
functional areas involved in order to obtain and maintain a realistic plan that satisfies
their commitment for performance
  Selecting and leading the project team
 To control the organizations manpower needed by the project.
 To lead the people and organizations assigned to the project at any given point in time –
strong positive leadership must be exercised in order to keep the many separate elements
moving in the same direction in a cooperative way.
 To monitor performance, costs and efficiency of all the elements of the project and the
project as a whole exercising judgment and leadership in determining the causes of
problems and facilitating solutions.
 To complete the project on schedule and within costs, these being the overall standards
by which the performance of the project manager is evaluated.
 Responsible for defining and maintaining the integrity of a project.
 He is the director / coordinator and controller of project activities
 He manages resources used in the project including equipment, finances and human
resources.
 Responsible for problem solving and conflict resolution.

PROJECT HUMAN RESOURCE MANAGEMENT

The human resources in project management are the stakeholders who include the target
beneficiaries, project management team, project managers and to some extent project owners or
contractors as elements of the project organization as the case may apply depending on the
organization.
The project team, also known as project staff, should be involved in plans and decision making
from the beginning of the project. Team members should feel invested in the outcome of the
project. This will increase loyalty and commitment to project goals and objectives. The number
of team members and their responsibilities can change as the project develops.

The project management team, also called the core, executive, or leadership team, is responsible
for project planning, controlling, and closing and takes directives from the project team. Smaller
project responsibilities can be shared by the team or designated by the project manager. The
project management team and the project sponsor work together to secure funding, simplify
scope questions, and influencing team members.

Project human resource management processes include human resource planning, acquiring the
project team, developing the project team and managing the team. Processes are used multiple
times, usually occurring at least once in a project or several times in different phases if the
project is made up of many phases. In reality, processes intersect with each other and with other
phases and are not as definite and concrete as illustrated here.

Project human resource management planning may be required if more experienced members are
added to the team. The project management team should also prepare for risk management and
changes to project duration.

Functions of project human resource management

The project human resource management involves the following functions
1. Human resource planning
This involves determining the project roles, responsibilities, reporting relationships and creating
project staff management plan. In this activity, the major element is determining how and when
project team members will be acquired, the criteria for releasing them from the project,
identification of the training needs, plan for recognition and reward, safety issues and impact of
the project staff management plan on the organization. The important tools and techniques
applied in the process of planning may include the organization charts, job descriptions etc. the
major output of project human resource planning includes defined roles and responsibilities,
project organization chart and staff management plan.
2. Recruiting the project human resource
This is the process of attracting qualified people who will work in a project. Project staff may be
recruited from the following sources;
 Internal sources where people are recruited from within the project implementing
organization
 External sources where people are recruited through direct application, advertisement,
consultancy firms, head hunting, employees’ referrals and college/ campus recruitment.
3. Developing the project team
This is a function involving establishing an effective project team. The major inputs used in the
process of developing project team may include project staff assignment, staffing management
plan and resources made available for the team development. The major techniques and tools
used in developing project team includes general management skills application, training,
carrying out team building activities, recognition and rewarding and collocation.
4. Managing project team
This is the maintenance function for the project human resource management. The person
managing the project team will use the inputs such as organizational policies and procedures,
staffing management plan, team performance assessment etc.
5. Performance management systems
Performance management is an integrative approach to delivering sustained success to the
organization by improving the performance of people who are working in the project by
developing their capabilities. It is integrative because it involves matching the people
development objectives with the corporate goals. It is believed that an organization cannot grow
when the people who are working in it are not growing.

‘Objectives of performance management

 To improve performance
 To develop the project staff
 To satisfy the stakeholders
 To ensure effective communication and involvement among the project team and
stakeholders.

PROJECT PLANNING
Introduction
Failing to plan is planning to fail. There are two barriers to good planning. The first is prevailing
paradigms, and the second is the nature of human beings. A paradigm is a belief about what the
world is like. You can tell what people believe by watching what they do, because they always
behave consistently with their deeply held beliefs. Some managers don’t believe in planning.
The second reason that people don’t plan is that they find the activity painful. Some individuals,
especially engineers and programmers, are concerned that they will be held to estimates of
task durations that they have made using their best guesses as they have no historical data to
draw on. But they also know that such numbers are highly uncertain, and they are afraid that
failure to meet established targets will get them in trouble

PLANNING DEFINED
Planning is simply answering the questions “Who, What, When, Why and How?”. It is a process
of developing and maintaining a project plan that provides supporting details to the project
definition in terms of resources, time, scope and schedules. It is a tool of communication and
control that will indicate the project work breakdown structure, task relationships, estimated
work packages, resource schedules, assignment and leveling of resources and project budget.

OBJECTIVES OF PROJECT PLANNING

The planning phase of a project aims to meet the following objectives
 Determining the project cost / budget
 Listing all activities or tasks involved or necessary to be done in order to complete the
whole project. This requires analytical thinking for it to be comprehensive with the
required details.
 Estimating the activity durations of all the activities listed
 Constructing network diagram giving the logical interrelationships among the activities

Importance of Project Planning

 Increases efficiency.
 Reduces business related risks.
 Facilitates proper coordination.
 Aids in organizing.
 Gives right direction.
 Keeps good control.
 Helps to achieve objectives.
 Motivates the personnel.
 Encourages creativity and innovation
 Helps in decision making.

Characteristics / nature of Project Planning

1. Consists of temporary activities that have predetermined start and end dates.
2. Uses restricted resources.
3. It has a single goal or a set of goals.
4. All events are to be realized to develop a single and a new output.
5. Usually has a budget.
6. Usually a project manager is responsible for coordinating all activities.

REASONS FOR PROJECT PLANNING

  Project planning is a blue print compass that aids in project implantation and is a key
determinant of whether the project will succeed or not. The project plan provides a road
map which the project team follows in order to achieve the critical project objectives.
 Project planning avoids unnecessary wastage and ensures that the project team thinks
ahead and taking proactive measures.
 The plan is used as a key monitoring and evaluation tool for the project because one
cannot control what has not been planned. Project control generally becomes very
difficult when planning is not properly done because there is no point of reference for
control.

Ingredients of a project plan

 Problem statement.
 Project mission statement
 Project objectives
 Project work requirements, including a list of all deliverables, such as reports, hardware,
software, and so on. It is a good idea to have a deliverable at each major project
milestone so that progress can be measured more easily.
 Exit criteria. Each milestone should have criteria established that will be used to
determine whether the preceding phase of work is actually finished. If no deliverable is
provided at a milestone, then exit criteria become very important.
 End-item specifications to be met: This means engineering specifications, architectural
specs, building codes, government regulations, and so on.
 Work Breakdown Structure (WBS). This is an identification of all of the tasks that must
be performed in order to achieve project objectives. A WBS is also a good graphic
portrayal of project scope
 Required resources (people, equipment, materials, and facilities).
 Control system
 Major contributors.
 Risk areas with contingencies when possible.

Before a project team does any work, it should spend time ensuring that it has a shared
understanding of where it is going. The terms used to define that destination are mission,
vision, goals, and objectives. And it is at this very early stage that projects tend to fail, because
everyone takes for granted that “we all know what the mission is.”

Developing project objectives

Once a mission statement has been developed, project objectives can be developed. Note that
objectives are much more specific than the mission statement itself and define results that must
be achieved in order for the overall mission to be accomplished. In a similar way, an objective
defines the desired end result e.g I may want to finish this chapter by 10 o’clock this morning.
That is my desired outcome or result—my objective. These objectives must be SMART.

Project planning steps

Step 1. Determine the problem being addressed by your project
The first and foremost step to planning a project refers to defining the actual problem that should
be solved upon completion of the project. You must communicate with the customer and use
business case to describe the problem. The process of project planning also requires you to make
a detailed description of the problem. Hence, efficient communications with the customer is
required in order to define and describe the problem.
Step 2. Set up a mission for the project
You should announce a mission of your project that meets the customer’s needs and
“strengthens” the major project goals. For successful project planning process, it is important to
make a mission statement that outlines the project path and clarifies how the project will be
developed. Your mission statement will be a guiding line to your team, so be sure it is designed
and set up in accordance with the customer satisfaction principle, and every team member clearly
understands the mission.
Step 3. Make a strategic implementation plan
You must develop a project strategy that follows the mission and outlines the high-level actions
for implementing the project objectives. At this step to planning a project, you can use feasibility
study to make sure that the project is really feasible. Then you must strategize the project work
and make a detailed implementation plan for the team. Your strategy should show how the
project will work, what the team will do, and in what way the project goals will be satisfied.
Step 4. State the scope for your project
This step of the project planning process requires you to make a scope statement that determines
project boundaries. A scope statement is a component of the project plan and used as a tool to set
up obvious boundaries for project work and also define the extent of the goals. You must use
project charter to develop a scope statement and plan the project.
Step 5. Create a work breakdown structure
This step is about developing a work breakdown structure (WBS) that identifies the low-level
tasks and activities required for doing project work and producing the deliverables. The WBS is
a critical piece of the project planning process because it defines how tasks will be structured
and what dependencies will be created. It is also used for setting up durations, task assignments,
resource requirements, and cost estimates.
Step 6. Schedule project activities
You must develop a project schedule that shows durations for individual tasks and processes
listed in the wbs. You must calculate the overall project duration and include it in the schedule.
This step to project planning also requires you to make resource assignments and define who will
do what tasks within which period of time.
Step 7. Make a budget sheet
Once the tasks have been set up, assigned to team members and scheduled it is time to estimate
costs necessary for the implementation. You should use cost estimates to develop a budget sheet
for your project. This document of the project planning process should be discussed with the
sales team and communicated to the customer and sponsor. In addition, funding request serves as
a foundation for setting up the budget.

Step 8. Develop the project organization structure

This step to planning a project is critical as it determines what and how specific job
responsibilities and authorities will be involved in the implementation. The project organization
structure is a framework of policies and procedures for the project based on the pids and
designed to set up all the duties, responsibilities and roles for the team in order to ensure the
successful implementation process, achieve the project goals, and produce the deliverables. You
can use the pids to define the team’s functional operations and procedures.
Step 9. Set up tools for team communication and collaboration
Team collaboration is always critical to project success. If team members are enabled to
efficiently communicate with each other, make joint efforts and exchange project data, they get
more chances for successfully implementing the wbs tasks and producing the deliverables.
That’s why you should provide tools (like templates, software solutions, communication plan
and policy, reporting requirements) for setting up efficient communication channels and creating
a collaborative working environment.
Step 10. Develop the general plan for your project
The final step to planning of your project is about developing the general plan that includes all
the tools, solutions and decisions identified at the previous 9 steps. The project management plan
is the output of the project planning process. It is a documented sequence of actions for
executing and controlling the project and its activities. The general plan includes a range of
subsidiary plans that define how to manage identified risks, exploit opportunities, respond to
changes, schedule time, set up communications etc. You should make the plan in strict
accordance with the mission statement and the major goals of your project.
PROJECT DESIGN

Project Design is a collaborative and systematic identification and prioritization of problems and
opportunities; followed by the planning of solutions; and preparing ways of assessing project
outcomes.
It is the process by which solutions to clearly identified problems are identified and structured in
a way that makes them implementable. It is a formalization, preferably set down in writing on
paper indicating how and why it is to be carried out. It includes any necessary details of timing,
budget, phasing and other choices about how and why it is to be completed.
Project design therefore involves the determination of the project goals, objectives, outputs,
activities and their relationships.
Importance of project design
Allows;
 Accurate identification of the problem and it causes
 Recognition of the organizations perceived need.
 Involvement of stakeholders in design and implementation.
 Timely monitoring and evaluation to show progress towards objectives and to allow
problems to be detected and corrected before they become irreversible.

A complete project design document may include the following elements

Background – what is the problem?
The goal of the project – the solution to the problem
The resources (potential, available, internal and external
The assumptions, constraints and risks
A title page with the project name
Abstract or executive summary
Description of the beneficiaries and how they will benefit
Targets and activities (how it will be done)
Schedule and phasing (timing)
CBA
Organizational profile and chart
Possible strategies to reach the objectives
Monitoring framework
Reporting system
Evaluation tools, techniques and methods
Appendices (detailed budget, schedules, lists, diagrams etc
Project design process
The project design process consists of three inter-related stages that refine a project from its
strategic basis in to a final authorized project.
Stage 1: Concept Stage / project conception
During Stage 1, the basic parameters/defines scope../xx of the project and its further articulation
are established as the departure point. It is a stage where the idea regarding required intervention
in a specific area to address an identified problem is formed or developed. The idea may be
generated through discussion by experts, technical specialists, organizational leaders,
government agencies etc.

1 Define the Project Design Team:

As early as possible in the process, core members of the project design team should be formally
designated by the poject manager, and include a specific design team leader who will be
accountable for guiding the design process from inception to authorization. The design team
should include appropriate representation from key support functions as needed in the design
process.
2 Define the Problem:
Usually, the problem statement should be directly linked to a Results Framework. The problem
statement will be the focus of the “purpose statement’ of the project’s logical framework. There
are various tools to conduct problem identification. (e.g decision tree and SWOT (Strengths-
Weakness-Opportunity-Threat) analysis). When the problem has been clearly identified, it
should be restated as the project purpose.
3 Develop Preliminary Logical Framework:
Starting with the project purpose, an “if-then “objective tree analysis should be used as the basis
for developing the summary narrative portion of the Logical Framework, covering outputs and
inputs and including key assumptions. It is a doc that gives an overview of the obj,activities and
resources of a project.
4. Identify and Analyze the Stakeholders: It is critical to identify and understand the
Stakeholders in the project help ensure project “buy-in” and the long-term Sustainability of the
effort
5 Review Available Knowledge
The design team should cast a broad net to bring into the design process related evaluations,
assessments, studies, etc., that may inform the design process including project performance to
date for ongoing projects
6 Concept paper
Overall, the Concept Paper should define a clear road-map for completion of the project design
and should include cost estimates and time frames for completing the project.

PROJECT LIFE CYCLE

Project Management life Cycle

Discuss the Five Phases of Project Management Life Cycle in a Diagram

Project management cycle is about dividing project into phases that simplifies the process and
enables leadership in the best possible direction. Five Project cycles includes
 1. Project Initiation

Steps include:

 Identification of problem/ Managerial approval

opportunities
 Establishing project goals
 Defining objectives of the problem
 Performance cost or benefits
 Determining of success criteria
 List the assumptions, risks and 2. Planning Project

Managerial approval Steps include:

 Identifying project activities

 Estimating amount of resources required
 Constructing workflow
 Preparing project proposal

1) Initiating Phase
3. Execution of the Project Feedback loop is activated
as part of the change
Steps include: The initiating processes management process

 Recruitment of the project team determine the nature and

 Establishing rules scope of
 Assembling project resources
the 4. Monitoring and Control
 Executing the work plan
 Documenting the work progress Steps include:
project.
If this stage is not  Monitoring the project’s progress against the
Runs parallel with plan
performed  Establishment of reporting procedures (to who
to whom)
well, it is unlikely that the project will be
 Installation of change management procedures
successful in meeting the business’ needs.  Establishing approaches to solving problems
 Revising the project plan whenever necessary
The key project controls needed here are an
understanding of the business environment and
5. Close and Evaluation
making sure that all necessary controls are
Steps include:
Preparing for the completion of incorporated into
 Conducting acceptance test the project
 Establishment of a rollout plan
 The complete documentation
 Conducting after implementation audit
 Lastly, completing final project report
the project. Any deficiencies should be reported and a recommendation should be made to fix
them.

 The initiating stage should include a plan that encompasses the following areas.
 These areas can be recorded in a series of documents called Project Initiation documents.
Project Initiation documents are a series of planned documents used to create order for the
duration of the project. These tend to include: project proposal (idea behind project, overall
goal, duration)

2) Planning

Planning phase generally consist of:

 determining the project management methodology to follow

 developing the scope statement
 selecting the planning team;
 identifying deliverables and creating the product and work breakdown structures;
 identifying the activities needed to complete those deliverables and networking the activities
in their logical sequence;
 estimating the resource requirements for the activities;
 estimating time and cost for activities;
 developing the schedule;
 developing the budget;
 risk planning;
 developing quality assurance measures;
 Gaining formal approval to begin work.


3) Execution
The execution phase ensures that the project management plans and deliverables are executed
according to plan. This phase involves proper allocation, co-ordination and management of
human resources and any other resources such as material and budgets.

4) Monitoring and Controlling

Monitoring and controlling consists of those processes performed to observe project execution so
that potential problems can be identified in a timely manner and corrective action can be taken,
when necessary, to control the execution of the project.

The key benefit is that project performance is observed and measured regularly to identify
variances from the project management plan.

Monitoring and controlling includes:

 Measuring the ongoing project activities

 Monitoring the project variables against the project management plan and the project
performance baseline where we are against where we should be
 Identifying corrective actions to address issues and risks properly if the project is out of
track, how do we go back to track?
 Influencing the factors that could circumvent integrated change control so only approved
changes are implemented.

In multi-phase projects, the monitoring and control process also provides feedback between
project phases, to implement corrective or preventive actions to bring the project into compliance
with the project management plan.

Project maintenance is an ongoing process and includes:

 Relevance
 Effectiveness
 Efficiency
 Impact

5) Closing

Closing includes the formal acceptance of the project and the ending thereof. Administrative
activities include the archiving of the files and documenting lessons learned.

In order to be successful in their practice, both beginning project managers and those who have
been in the trenches for years need to become proficient across all stages of a project’s life cycle.
There are a few different schools of thought regarding the phases of project management, but the
classification developed by the PMI is largely considered to be the authority and the most
complete approach.

Project Management Triangle

Project Management Triangle is a model of the constraints inherent in managing a project. These
constraints are in threefold

Time
 Scope Cost

1. Cost: The financial constraints of a project also known as project budget.

2. Scope: The tasks required to fulfill the project goals.

3. Time: The schedule for the project to reach completion.

Basically, the Triple Constraint states that the success of the budget is impacted by its budget is
impacted by its budget deadline and its features. As a manager of that project, you can trade
between these constraints however, changing the other two will suffer to some extent.

Importance of Triple Constraint

Enhance creativity- It provides a framework that everyone in the project can agree on. These
metrics drives the project forward while allowing for adjustments as needed when issues arises.

Process of time management

These steps are as follows:

1. Plan schedule management: It involves creating policies, procedures and documentation

for planning, executing and monitoring the project schedule.

2. Defining of activities: identifying and documenting what actions must be done to produce

the project deliverables.

3. Sequence activities: Identifying and documenting the logical order of work to be most

efficient.

4. Estimate activity resources: What type and how many materials people, equipment,

supplies are needed to perform each activity.

5. Estimate activity durations: How long will it take to complete each activity with the

resources estimated.
 6. Develop schedule: Analyze activity, duration, resources and timeline to develop a

schedule.

7. Control schedule: Company planned schedule to actual progress to determine if your

project is on track.

When managing a project some variables can change. The Triple Constraint gives you a firm
sense of what can and can’t be adjusted throughout the course of the project.

Cost

The financial commitment of the project is dependent on several variables. There are two
resources involved from the materials which include labor costs. There are other outside the
forces that can impact a project which must be considered in the cost of work. Cost resources
include cost estimating to figure out the needed financial commitment for all the necessary to
complete the job.

Scope

Deals with the specific requirements of tasks necessary to complete the project scope is
important to manager any project, whether agile software projects or well-planned waterfall
projects because if you cannot control the scope of the project, you are not likely it on time or
under the budget. When managing the scope of the project, it is critical that you prioritize your
tasks enabling you to plan and assign resources successfully.

Time

The schedule is the estimated of the time allocated to complete the project of producing the
deliverable. It is figured out by first noting all the tasks necessary to move from the start to the
end of the project.

By using a project management dashboard, a manager can keep sight of the project as it
progresses. Metrics such as schedule, cost and scope of the project are easy to track.

Stage Two: Analytical Stage

Depending on the complexity of the project, the Analytical Stage of project design requires the
most effort, combining completion of all project analyses and their synthesis into a final logical
framework and project design. Once the Concept Paper has been approved and the topics of
required analyses have been identified, project design should proceed with problem and solution
analysis.
ANALYSIS
Not every project will undergo the same breadth and depth of analysis. . Projects designed in
highly dynamic environments may for example reduce the depth of some aspects of analysis at
this stage of design and include them in early stages of project implementation. Further
description of some of these potential analyses follows:
Environmental Analysis:
Project design teams must incorporate the environmental recommendations into project planning.
Often additional environmental analyses may be useful to project design and should be
undertaken at this time.
Sustainability Analysis
Organizations should analyze key sustainability issues including economic, financial, social
soundness, cultural, institutional capacity, political economy, technical/sectorial, and
environmental
Cost Benefit Analysis (CBA)
This is a decision-making approach used to determine if a proposed project is worth doing, or to
choose between several alternative ones. It involves comparing the total expected costs of each
option against the total expected benefits, to see whether the benefits outweigh the costs, and by
how much

Stage Three: Project Authorization

The Project Authorization gives substantive approval for a project to move from the planning
stage to implementation. It does not reserve or commit funds. The Project Authorization
approves the project design, sets out the purpose of the project, its duration (defines an end of
project date), defines fundamental terms and conditions of the assistance when a partner country
agreement is anticipated, and approves an overall total budget level, subject to the availability of
funds, for the project.
BENEFITS OF PROJECT MANAGEMENT
1. Better Efficiency in Delivering Services: Project management provides a “roadmap” that is
easily followed and leads to project completion. Once you know where to avoid the bumps and
potholes, it stands to reason that you’re going to be working smarter and not harder and longer.
2. Improved Customer Satisfaction: Whenever you get a project done on time and under
budget, the client walks away happy. And a happy client is one you’ll see again. Smart project
management provides the tools that enable this client/manager relationship to continue.
3. Enhanced Effectiveness in Delivering Services: The same strategies that allowed you to
successfully complete one project will serve you many times over.
4. Improved Growth and Development Within your Team: Positive results not only
command respect but more often than not inspire your team to continue to look for ways to
perform more efficiently.
5. Greater Standing and Competitive Edge: This is not only a good benefit of project
management within the workplace but outside of it as well; word travels fast and there is nothing
like superior performance to secure your place in the marketplace.
6. Opportunities to expand your Services: A by-product of greater standing. Great
performance leads to more opportunities to succeed.
7. Better Flexibility: Perhaps one of the greatest benefits of project management is that it allows
for flexibility. Sure project management allows you to map out the strategy you want to take see
your project completed. But the beauty of such organization is that if you discover a smarter
direction to take, you can take it. For many small-to-midsize companies, this alone is worth the
price of admission.
8. Increased Risk Assessment: When all the players are lined up and your strategy is in place
potential risks will jump out and slap you in the face. And that’s the way it should be. Project
management provides a red flag at the right time: before you start working on project
completion.
9. Increase in Quality: Enhanced effectiveness leads to improved quality and thus results meet
requirements and expectations
10. Increase in Quantity:. An increase in quantity is often the result of better efficiency, a
simple reminder regarding the benefits of project management.
By implementing fundamental project management strategies, you will narrow your focus, reach
desired goals and achieve those goals within specific time and cost perimeters. The final result is
that everyone comes out a winner - which just may be project management's best benefit of all.

PROJECT MANAGEMENT PROCESSES

A process is defined as a set of activities that must be performed to achieve a goal. Project
Management Processes are overlapping activities that occur at varying levels of intensity
throughout each phase of the project.

There are nine management processes on a development project. These are designed to help
manage the different elements of a project. Different projects may have different needs from
each process; for example, a project that has identified that cost is a critical success factor will
spend more time and effort in developing a cost management plan. These processes are the key
knowledge areas a project manager must master.
There are nine project management processes these are: group work
1. Scope Management
2. Schedule Management
3. Budget Management
4. Quality Management
5. Team Management
6. Stakeholder Management
7. Information Management
8. Risk management
9. Contract Management
1. Scope Management
This includes the processes involved in defining and controlling what is or is not included in the
project; required to complete the project successfully. Scope is the way to describe the
boundaries of the project. It defines what the project will deliver and what it will not deliver.
This process ensures that the project has identified the goals and objectives and those have been
documented and that each objective has a well-defined set of indicators to monitor their progress.
During this process a scope management plan is created to help manage any changes to the
projects. This is a critical process and one that will help project manager’s deal with scope creep,
which is when a project includes additional work after a project has started without considering
the impact on the resources or schedule of the project. Request for additional work may come
from many of the stakeholders. The project stakeholders can have a better understanding of the
project boundaries
2. Schedule Management
This process includes the actions required to ensure the timely completion of the project.
Schedule management is the development of a project schedule that contains all project
activities, the project schedule is a communication tool that informs project stakeholders the
status of the project and gives project team member’s information, in the form of graphs and
charts, as to when each activity must begin and end.
The project schedule is also used to assign project staff with their tasks. Monitoring the schedule
is an ongoing task, as each activity is performed the project manager must review the progress
made against the schedule baseline and determine what schedule variance have occurred, the
schedule management plan should include instructions on how to proceed when schedule
variances occur. Another element of schedule management is the procedure to control schedule
changes and define who can authorize changes to the schedule. It is not uncommon that at the
moment of planning the project some oversight occurred that did not plan for situations when the
beneficiaries are involved in other events, such as festivities or social events; this can also
include unpredictable events such as the weather or political events that can disrupt any project
schedule.

3. Budget Management
Budget management processes are required to ensure the project is completed within the
approved budget. This is the area that receives a lot of scrutiny during and after the project is
completed. The project’s ability to manage the financial resources obtained by the organization
will be a measure of the organizations probity, not only in compliance with donor’s requirements
but also a measure of its efficiency. Risks in this area have the highest impact to the project, the
organization and to the beneficiaries; inadequate budget management can lead to
misappropriations of funds, improper assignment of expenses and losses that the organization
may have to cover using its limited funds.
The main steps of budget management include; the definition of all resource requirements the
project will use, from consultants, material and equipment; development of a cost estimate of all
the resources including human resources, and the development of a budget baseline that will be
used to track and report budget expenditures
4. Quality Management
Quality management is the process to ensure that the project will satisfy the needs of the
beneficiaries. Quality is defined as a commitment to deliver the project outputs and meet the
expectations of the beneficiaries, which means that quality is ultimately defined by the
beneficiary. Quality is not about delivering the most expensive materials or services; is ensuring
the project outputs are relevant to the needs of the beneficiaries, that they are delivered in a
timely manner and are adequate to the conditions in which they have to be used. It is not
necessarily doing additional work if it does not add value or benefit to the beneficiaries, it’s
about delivering on the commitment the project made at its initiation, and it’s doing what the
project said it was going to do.
During the quality management process the project manager develops a quality management plan
which identifies the quality standards that are relevant to the project, some of these standards
may be initially set by the organization, the donor or are part of the technical competence area
the project is focusing, such as health or education. The second process in quality management
includes quality assurance, which implies the execution of the quality plan; this process includes
quality audits performed by the project team during every project deliverable and reevaluating
the quality standards and any assumptions made in the quality plan. Quality assurance focuses on
prevention measures during the project implementation phase and checks to see that project staff,
consultants or project partners are following the quality standards. In certain conditions meeting
quality standards could mean meeting legal and regulatory standards set by the local government
or the donor agency. The third process in quality management is quality control; this is where the
project measures the results of the deliverables or outputs and check to see if they meet the
quality standards. The final process is quality improvements is making changes to the quality
plan and identifying ways to improve quality an eliminate causes of unsatisfactory quality
discovered during quality control. Quality management outputs include a quality management
plan,quality audit reports, and quality improvement records. A such quality is also maintaining
the four project constraints in balance, implementing the project by delivering all that the
projects was designed to deliver in the time allotted and under the approved budget.
5. Team Management
During the definition of the project activities a list is created that identifies the skills needed by
the project. These range from highly technical to administrative and support functions. The
project team is after all the team responsible for the project and the project needs to be clear in
acquiring the skills it needs. Team management includes the processes required to make the most
effective use of the people involved in the project. The first step is identifying the roles,
responsibilities and reporting relationships. The second step is getting the people that will be
assigned to the project. These can come from within the organization or hired through the
Human Resource function of the organizational. This is where the project manager needs to be
heavily involved and participate in all interviews with possible candidates; the success of the
project will depend on the quality and commitment of the team. Once the team has been assigned
to the team the next step is to develop the team, most projects do not have the luxury of time to
fully develop a team, but the creation of a plan, that defines the development strategies and
goals, can help the project manager as the project gets implemented and the team starts to
produce. Team development includes hard and soft skills, hard skills like technical training to
learn new methodologies or practices, and soft skills such as time management, communications,
facilitating and negotiating skills
Organizations also include an induction process to new hires were the mission, norms and
culture of the organization are described and guidelines and other internal processes are fully
explained that will help new staff navigate through the organizations policies and procedures.
Part of team management also includes team evaluation; this should not be done once a year or at
the end of the project but on a continuous basis to provide feedback and opportunities for staff to
know about their performance and identify ways to improve it.
6.Stakeholder Management
Stakeholder management is one of the areas that receive the least amount of thought and
planning in development projects, this is due to the limited understanding and agreement on who
are the stakeholders and their role in the project. Stakeholders are all the people who have an
interest in the project and they are the most critical element for the success of the project. They
include donors, beneficiaries, local government, partner organizations and anyone who will be
impacted by the project. Each project has a different list of stakeholders, a range that can include
the local press, local organizations, institutions and even watchdog organizations. Stakeholder
management includes the processes of stakeholder analysis, planning, and communication.
Stakeholder Analysis is the technique used to identify who are the project stakeholders, the next
step is to identify their level of interest and influence in the project ,and identify their fears and
concerns about the project. The final step is to develop a good understanding of the most
important stakeholders and develop a communications strategy and a stakeholder map that
will help manage the relationships.

7. Information Management
Includes the processes required to ensure timely and appropriate generation, collection,
dissemination, storage, and ultimate disposition of project information. 80% of a project
managers’ time is spent communicating via reports, email, telephone, meetings and
presentations. The first step of the plan is to define the information’s needs of the stakeholders,
determine when they need it, how the information will be distributed and how to evaluate the
relevance and effectiveness of the information. Having a successful communications plan
depends to a large extend to the ability of the project to listen, communication is not just about
sending information, but learning to listen first and then define what information is missing. The
goal of communication is the acceptance of the project’s message by the receiving audience. If
the receiver understands the meaning of the message which asks for action, but fails to act, the
goal of communications is not achieved. But if the receiver responds to the message by taking
the appropriate action, the goal of the communication has been achieved.
8. Risk Management
Risk Management includes the processes concerned with identifying, analyzing, and responding
to project risk. Risk in projects is defined as something that may happen and if it does, will have
an adverse impact on the project. There are four stages to risk management planning, they are:
risk identification, risk analysis and quantification, risk response, risk monitoring and control.
Risk identification deals with finding all possible risks that may impact the project, it involves
identifying potential risks and documenting their characteristics. The project team members
identify the potential risks using their own knowledge of the project, its environment, similar
projects done in the past. Risk identification results in a deliverable project risk list. Risk
identification deals with finding all possible risks that may impact the project, it involves
identifying potential risks and documenting their characteristics. The next step is the quantitative
and qualitative analysis of the project risks. Qualitative risk analysis assesses the importance of
the identified risks and develops prioritized lists of these risks for further analysis or direct
mitigation. Quantitative risk analysis is a way of numerically estimating the probability that a
project will meet its cost and time objectives. Quantitative analysis is based on a simultaneous
evaluation of the impact of all identified and quantified risks

Risk monitoring and control keeps track of the identified risks, residual risks, and new risks. It
also ensures the execution of risk response plans, and evaluates their effectiveness.
9. Contract Management
Contract Management includes the processes required to acquire goods and services needed by
the project from third parties, for most projects the procurement process is usually managed by a
support or administrative function of the organizations. The role of the project is to supply, as
detailed as possible, all the procurement requirements including all the technical specifications,
quantity and the date when they will be needed; this is created in a project procurement plan.
Contract management consists of four steps; develop the resource plan, implement the plan,
review and update the plan. The resource plan identifies the what, when and how many of the
goods and services needed within the budgeted limits. It also identifies potential sources and the
strategies that the project will use to procure; this is done in conjunction with the organizations’
procurement function. Implementing the plan is the process of developing the procurement
documents such as the Request for Proposal (RFPs), developing the selection criteria and
contract terms; it also involves the process to solicit the goods and services, obtaining quotations,
bids, proposals or offers. Selecting the vendor or source involves choosing from the potential
suppliers, verifying their qualifications and capacity and negotiating and awarding the contract.