Project management methodologies

At the end of this session candidates will be able to:

Identify the key processes, components and roles of Prince2

and evaluate the effectiveness of this methodology to project
management
Analyse the key requirements of critical chain project
management (CCPM) and explain how projects that use CCPM
can achieve better results than other methods
Evaluate the advantages and disadvantages of the various
approaches to project management to the types of purchasing
and logistics projects identified
 Is it a method, a methodology, a framework or a
standard?
Whatever it is called, it is a structured approach for
delivering a project
Thus, methodology refers to a set of management
processes that ensures the successful project completion
Many methodologies are available although we will briefly
mention four in the public domain
1. PMI Project Management Body of Knowledge (PMBOK)
2. BS6079 A Guide to Project Management
3. Prince2 Managing Successful Projects
4. ISO 10,006 Quality Management – Guidelines to Quality in
Project Management
 The body of knowledge can be subdivided into four core
elements which determine the deliverable objectives of the
project:
1. Scope
2. Time
3. Cost
4. Quality

The other knowledge areas provide the means of achieving

the deliverable objectives, namely:
5. Integration
6. Human resources
7. Communication
8. Risk
9. Procurement and contract
 These are core knowledge areas because they lead to specific
project objectives.
1. Project scope management involves defining and managing all
the work required to complete the project successfully. It
consists of authorization, scope planning, scope definition,
scope change management and scope verification
2. Project time management includes estimating how long it will
take to complete the work, developing an acceptable project
schedule, and ensuring timely completion of the project. It
consists of activity definition, activity sequencing, duration
estimation, establishing the calendar, schedule development and
time control
3. Project cost management consists of preparing and managing
the budget for the project .i.e. resource planning, cost
estimation, cost budgeting, cash-flow and cost control.
4. Project quality management ensures that the project will
satisfy the stated or implied needs for which it was undertaken. It
consists of quality planning, quality assurance and quality control
 These are called facilitating areas because they are the
processes through which the project objectives are
achieved.
5. Project human resource management is concerned
with making effective use of the people involved with the
project.
6. Project communications management involves
generating, collecting, disseminating, and storing project
information.
7. Project risk management includes identifying,
analyzing, and responding to risks related to the project.
8. Project procurement management involves acquiring
or procuring goods and services for a project from
outside the performing organization.
Project integration management, the ninth
knowledge area, is an overarching function that
affects and is affected by all of the other knowledge
areas
Prince2 stands for Projects in Controlled Environments
It was originally developed from a method called
PROMPTII in 1975. This was adopted by the CCTA (part
of the UK civil service) in 1979
In 1989, Prince was created from PROMPTII and replaced
it as the default method. In 1996, a new version, Prince2,
was published
Prince2's key philosophy is that a business case must
exist to drive the project. The business case is developed
before the project is approved, and is thereafter
maintained throughout the project lifecycle
The business case is a description of the reasons for the
project and the specific justification for undertaking it
Prince2 has processes, components, techniques and roles
The eight processes, through the Prince2 process model
explain exactly what has to be done to direct and manage
the project. Each process is broken down into sub-
processes to make things simple to understand
Components comprise all the major sections of a
comprehensive project plan and represent a 'contract' for
good project management
Prince2 also includes a set of individual techniques that
may be useful to a project manager. These can be applied
when judged useful to the project
Prince2 stipulates that project participants should be
assigned into specific roles. Each role has specific
responsibilities and demands that assist performance
 ! " #$

This first process in PRINCE is a pre-project process and

should be fairly short. It checks that a project is worthwhile.
The process produces 5 management products by:

1. Designing/appointing a project management team

2. Converting the project mandate into a project brief
3. Creating a risk log
4. Defining the project approach
5. Planning the project initiation stage
 ! " $
This process is about planning the project in detail. The key
product output is the Project Initiation Document (PID).
The process addresses the following issues:
1. A suitable business case must exist to justify proceeding
with the project
2. Production of a project quality plan
3. Key resources (money, time and people) are made available
4. The remaining Prince components, namely controls, risk
management, quality, configuration management and change
control, are thought through and documented

Other outputs from this process include blank products in

readiness for use - the quality log, the issue log and the
lessons learned log
 % " $
The planning process begins as soon as the project
mandate arrives and is followed whenever project and
team managers need to do further planning. Prince2 uses a
product-based planning technique that can be applied to
any type of project.
1. Establishing what products are needed - a product
breakdown structure
2. Defining the form and content of each product - a
product description
3. Determining the sequence in which each product should
be produced - a product flow diagram

Plus the use of other techniques and charts as necessary

 & "' $
This process runs from the end of the start-up of the project
until its closure. It involves the project board monitoring via
reports and controlling through a number of decision points.
Authorising initiation - agreeing the project looks
worthwhile
Authorising a project - approval of the PID and 1st stage
plan
Stage boundaries - checking results so far to commit more
resources
Ad hoc direction - providing advice and guidance
Project closure - confirming project outcome is as desired
This process does not cover the day to day activities of the
project manager
 ( ") $
After all of the initial planning has been completed and project
approval obtained, this process is continuous for each management
stage of the project. It describes the monitoring and control functions of
the project manager in the day to day management of the project.

Authorising work
Monitoring progress
Assessing issues and change requests
Reporting
Taking corrective action

The project board meets at the end of each management stage to

review the work of the stage just completed and to authorise the plans
for the next stage
 * +
"+ $
This process is closely linked to controlling a stage
and is focused on getting specialist products created,
tested and handed over. Team managers if deployed
are responsible for:
1. Agreeing the work to be done (work packages) with
the project manager
2. Ensuring that products conform to their product
descriptions
3. Assessing progress and reporting to the project
manager
4. Ensuring that completed products meet their quality
criteria
5. Obtaining approval for completed products
 ,!
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This process provides the project board with key decision
points on whether to continue with the project or not. The
key objectives are:

1. To assure the project board that all products planned in

the current stage have been satisfactorily completed
2. To provide the information needed for the project board to
assess the continuing viability of the project
3. To provide the project board with an end stage report on
the current stage and a detailed next stage plan for
approval
 ") $
The purpose of this process is to execute a controlled close
to the project, either at the planned end or premature
closure. The key features are:
1. To check the extent to which the objectives set out in
the PID have been met
2. To confirm the customer's acceptance of the specialist
products
3. To confirm that product maintenance arrangements are
in place
4. To make recommendations for follow-on actions
5. Archive the project files
6. Plan a post project review if relevant
7. Notify relevant personnel that the project has closed
!

Components are
planning tools and
issues that are
addressed as the
project is planned and
executed

Not to be confused with

Prince2 processes
which are activities to
complete the project
.
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#$

!
.
The decision making authority for the project
Provides direction not executive management
Business, user and suppliers interests are
represented
Allocates resources and funds as required
Delegates day to day management to the PM
Approves plans
Allocates tolerances
Gives approval to proceed after each stage
Holds final responsibility for the success of the
project
Prince2 - key roles and responsibilities
The executive
Senior member of the project board
Not involved in day to day tasks
Ultimate decision maker
Must ensure that project meets business case
Allocates project assurance responsibilities
Where ‘the buck stops’
The project manager
A key role (together with executive)
Person responsible to ensure that the project produces the
required products to the required quality
Authority to run the project on a day to day basis, although not
directly responsible for the success of the project
Responsible for day to day management and ensuring that project
remains focused on its objectives, within the allocated tolerances
 Prince2 – key roles and responsibilities
The senior Supplier
Member of the project board
Represents the interest of those supplying the project's products
Responsible for the quality of the products
Authority to commit or acquire supplier resources
Making sure that the constraints to produce the products are realistic

The senior user

Member of the project board
Represents the users’ needs and expectations
Must ensure that the user needs are specified correctly and that the
project's products meet these needs.
Monitoring a project's products is an important project assurance
function of this role
Prince2 - key roles and responsibilities

Administrative help for the project manager and possibly the project as a
whole
Expertise for particular software packages (for example Microsoft
Project, Primavera)
Knowledge and guidance in methodologies (for example Prince2)
Filing expertise
If project large, may be carried out by a number of people
Team manager
Optional role, according to scale of project
Reporting to project manager with delegated authority
Responsible for producing certain products and managing a team of specialists to
do it
Monitors and tracks products outlined in work packages, to their required quality
standards and within the costs agreed with the project manager
Key process that the team manager is involved with is managing product delivery
Prince2 - key roles and responsibilities

Custodian of all master copies of the projects products

These can be physical outputs and/or internal products such as key
documents and plans
Assists the project manager in creating the configuration management
plan
Provides status information about each product
Quality review roles
Key emphasis in Prince2 – ensuring products are fit for purpose
QR roles: chairperson, reviewer, producer and scribe
Chair involved in the project quality review procedures and ensures they are
all run correctly
Reviewer delivers specialist knowledge
Producer represents (or is) the creator(s) of the product and ensures
actions are carried out that find solutions for any reported errors
Scribe records the notes of the quality review including details of whose
responsibility it is to find solutions and whose to check these are
implemented
% / 0100*2 3
+
The guide produced by the International Standards
Organisation based in Geneva provides a comprehensive
checklist to ensure all elements of the project are managed in
a way that is compatible with corporate quality management
systems and at the appropriate level of detail for the specific
project
The guide identifies ten project management processes which
are related to the nine areas of PMI PMBOK
1. Strategic process – setting the direction for the project and managing realization of
the other project processes
2. Interdependency management
3. Scope related process
4. Time related process
5. Cost related process
6. Resource related process
7. Personnel related process
8. Communication related process
9. Risk related process
10. Purchasing related process
& - *0,45 2 +
The guide produced by the British standards Institute
identifies ten stages in a project
1. Concept or basic ideas
2. Feasibility
3. Authorization
4. Implementation including design
5. Procurement, fabrication and installation
6. Control/accountability
7. Completion and handover
8. Operation
9. Close-down and cease operations
10. Termination and disposal of residual assets
6
. 6 7 ,!

The PLC is a general concept that every project goes

through a similar “life cycle” categorised into different
stages (phases)
Understanding the cycle, and knowing the current and
succeeding stage aids effective project management
Doing the right things at the right time – prioritising and
planning effectively
The basic PLC concept is widely acknowledged as useful
by academics and practitioners
Any disagreements are over the precise model to be
adopted (such as how many stages?)
.8 9 9:'