Advanced Project

Planning & Implementation

Chapter I: Project Planning
Overview
The Project Concept Definition:
What is a Project?
 Different organizations and authors provide different
definitions for the concept project.

 A project is a proposal for an investment to create, expand

and/or develop certain facilities in order to increase the
production of goods/services/during a certain period of time in
a community, region, country, market area and/or certain
organization (firm, public organization, NGO, etc).

 A project is defined as a complex economic activity in which

scarce resources are committed in the expectation of benefits
that exceed these resources(costs).
 According to Little and Mirrlees, a project is a scheme, or part
of scheme, for investing resources which can reasonably be
analyzed and evaluated as an independent unit.

 A project is an investment activity upon which resources are

expended to create capital assets that will produce benefits
over an extended period of time and which logically lends
itself to planning, financing and implementation as a unit. A
specific activity, with specific starting point and specific
ending point, intended to accomplish a specific
objective.(Gittingger,1982)
Generally, a project is:-
 An investment activity which lends itself to planning,
financing and implementation as a unit;
 Expressed in terms of definite location, time and target
group or beneficiaries;
 Expected to generate specific output(benefit) after its
completion;
 Managed by a separate administrative structure or
operated through the existing structure
 Basic characteristics of a project
1. A project involves the investment of scarce resources in the
expectation of future benefits.

 Projects have specific benefits that can be identified, quantified

and valued, either socially or monetarily/commercially/.

2. Projects have measurable objectives

 Projects have specific beneficiaries which needs to be specifically
spelt out during project planning.

3. A project is the smallest operational unit.

 A project can be planned, financed and implemented as a unit.

 Despite the fact that a project constitutes many

activities and tasks, it is defined as the smallest

operational unit.

 Because, it is bounded by different factors. These are:

 Projects are conceptually bounded.

 The problem and specific objective of a project involves

conceptual delimitations.

 Projects are geographically bounded.

 Projects are organizationally bounded.

 There should be certain organizational unit responsible

7 for project implementation.

 Projects are time bounded.

 Projects have specific lifetime, with a specific start and end time.

4. Uncertainty and risks is inherent in any project.

 Achieving project objectives can not be predicted in advance
with accuracy.

 The factors that make project risk are:

A. Significant and multiple types of scarce resources are

committed today expecting outcome in the future;
B. Benefits are expected to be generated in the future, which is
less predictable;
8
C. Capital investments are irreversible, i.e. exit has its own costs.
5. It has a scope that can be categorized into definable tasks.
 Projects usually have well defined sequence of investment and

production activities

6. It may require the use of multiple resources.

 This has an implication on management of project implementation.

 The more diverse the types of resources are mobilized, the more

complex will the management be.

 The outcome of project and hence development endeavor is

sensitive to the management of each type of resources.

 Ill managed resource can contribute more to cost than to benefit.

Why Project Planning?
 There is basic economic problem of scarcity in
the face of unlimited needs.
 This leads to make choices on the means and
ends of development, which involves the
rational use of limited resources to attain the
economic ends.
 Thus, investment decisions are an essential part
of the development process.
 The more sound the investment decision is,
the more success will be in the development
endeavor.
 The need for project planning, preparation and study emanates
from:
A. The quest for change: dissatisfaction with the present
and/or pressure or incentive for improvement in the future

B.Change involves investment/commitment of resources to

realize the objectives.

C.The scarcity of investible resources and unlimited

development/business needs;

D.Investment is all about resource commitment into the future,

which is less predictable;
11
E. An investment schemes have an inherent high
risk
F. The costs and benefits are temporally spread
and particularly the large part of the costs
are incurred earlier and the benefits are
generated later on.
 This raises the question of comparing and
equating the future and present values.
G. Decision-making is not simple and perfect as it is assumed in
orthodox economics.
 These features of investment decisions constitute:

 the reasons that justify the significance and relevance of

project planning and

 the major constraints and challenges faced by any project

planner and decision maker in project viability studies.

 Thus, decision makers have to make every effort to

systematically rationalize their decisions by undertaking
rigorous viability studies.
 Project Environment
• The project environment is nothing but the
surroundings and conditions in which a project is
executed.
• It includes many things like air, water, human resources
with whom interactions take place, and social, political,
and economic conditions. And these could be both,
within and outside the project limits.
• So, we can say that all the internal and external factors
that impact Project Management make up the project
environment. Any of these things can affect the budget
or schedule of the project or impact the morale of the
team or can impact the project in many other ways.
• For proactive management of the project,
understanding the environment in which it has to
function becomes essential. The Project Manager must
have plans in place to deal with all these internal and
external factors that might impact the project in one
way or the other.
• Almost every project is planned and executed in some
social, the economic, political, and environmental
context that exerts some intended and/or some
unintended impacts on the project.
• These could be both positive and negative impacts.
• So, it is important that the Project Manager views the project from
the social, cultural, international, economic, physical, and political
environment context.
• These are the parts of the external environment in which the
project has to operate. But there is an internal environment also.
This includes all the stakeholders and the team. The Project
Manager has to consider these people's ability to influence the
project's outcome. The Project Manager must have the skills to
influence this environment in a positive way so that the change
intended to be brought by the project is received in a better way.
And while working with the team, the ability of the Project
Manager to work with the people plays an important role in getting
the best results. This is particularly important in today's highly
technical and competitive world full of complex situations.
Social & Cultural Environment/Context
• There are questions to be considered:
– How does the project affect the people of the
place at which the project is being carried out or
how do the people of that place can impact the
project?
– How do local people view the project?
– Will they be in favor of or against the project?
– Will the project affect them culturally? Or,
– The demography of the area might affect the
overall project plan.
• All of this may need a thorough understanding of the
demographic, ethical, ethnic, educational, and religious
attributes of the people who are affected by the project.
The chances of a project's success will be boosted if the
Project Manager understands the importance of
influencing the cultural and social environment to the
benefit of the stakeholders of the project.
• While talking of cultural environment, it includes the
internal culture of the organization too. And here, clear and
regular communication plays a vital role. Every member of
the project team and for that matter every stakeholder
must feel an essential part of the project like other
stakeholders and members.
 Physical Environment/Context
• Careful consideration of the physical environment of
the project will help in identifying and mitigating many
potential risks. Will the project affect the physical
environment or ecology of the place where the project
is undertaken, and if yes then how? It is always better if
some members of the team have knowledge of local
ecology and geography that may impact the project or
may be impacted by the project. Factors like local
weather, extremities of the weather, topographical
issues, constraints, if any, to access the project site,
availability of human resources and utilities, and
sensitivities toward the environment should be
considered and factored into the project plan.
 Political Context
• The Project Managers must know the boundaries within
which they have to operate. These could be national or
local laws. The prevailing political atmosphere can also
impact the progress of a project. Such factors determine
how the Project Management team will engage with the
stakeholders. The Project Manager may have to deal with
issues like corruption and differences between national and
local policies. There may be a sudden change in political
power and it may alter the influence it exerts on the project
so the Project Management team would be required to
adapt to this change.
• So, the Project Manager must take all these things into
account when making a project plan and schedule.
 Economic Context
• The Project Manager must be aware of the
economic environment and whether the input
cost would be stable or not. This would help in
making a better estimate of the project. Price
stability is an important factor in the success of a
project. Knowledge of the economic environment
will also help in better control of the project as it
would minimize the chance of the project getting
stuck due to sudden changes in the costs and
would prevent the project budget from going
awry.
 Technological
• The Project Management team should be aware
of the technological environment in which they
are going to operate. Choosing the appropriate
technology for the project is an important task
that will influence the project outcome.
Moreover, the available technological know-how
can greatly impact the project objectives and the
project's value. Therefore, selecting the right
technological tools and people with relevant skills
and experience is crucial for the success of the
project.
• These things impact various aspects of the
project like design complexity, the speed of the
project and its efficiency, sticking to the scope
and standards of the project, dependability of the
product or service, and safe operation and
execution of the project. With rapid technological
advances, the project environment is also
changing fast. So, the Project Manager has to be
fully aware of the latest tools available that can
be useful in the fast, safe, and smooth execution
of the project.
 Market Conditions
• The market conditions in which the project exists
also play a vital role in determining a project's
success. We all know that markets operate in
dynamic conditions and thus may either benefit
the project or be detrimental to its performance.
The market conditions may favorably or adversely
affect the project by influencing the ability to
finance the project or altering the project scope
and standards. They may also affect the
availability of the human resources needed for
the project.
 Structure & Culture of the
Organization
• This one pertains to the internal project environment of the
organization. The structure of the organization influences
the way a project is managed. The structure may include
the systems that are in place in the organization and how
they operate. The processes being followed to achieve the
goals of the organization are also part of the structure.
These have a lot of impact on how the project is executed.
• Similarly, the culture of the organization, including the work
culture also greatly impacts how the project progresses and
is managed. The thought process and the strategies of the
top management have a bearing on the success of a
project. So, this is an important aspect of the whole project
environment that has to be taken into careful consideration
for better Project Management.
 Concepts of Project Planning
• The unique, transient nature of a project means that a
strategy and a plan for its execution must be
developed. A project with a good strategy and that is
properly planned has a far greater chance of success
than a poorly planned project. Planning develops the
strategy, and enables the project manager and the
project sponsor to determine how the project can
achieve its objectives and deliver the required benefits.
Hence planning is a key element of project
management.
• Planning is the process of identifying the means,
resources and actions necessary to accomplish the
project’s objectives.
• It achieves this by drawing on the expertise and
knowledge of an organization (including the lessons
that it has learned from previous projects), and on
external parties if appropriate, in order to:
– understand the need, problem or opportunity that the
project will address and the benefits that it will deliver;
– determine the business case for, and the success
criteria/objectives of, the proposed project;
– define what has to be accomplished and delivered,
typically stated in terms of scope, time, cost and quality;
– develop a plan to achieve the deliverables.
• Planning commences during the project’s concept
phase and continues through definition and into
implementation. It starts with the project strategy and
an initial concept of the need and objectives of the
project. It evaluates options and identifies the
optimum. Its outputs inform and increase the maturity
of the project strategy and objectives through iteration,
and provide information for the business case. It
delivers much of the information that enables the
organisation, through gate reviews (at the end of life-
cycle phases or at other key points in the project), to
determine whether the project is viable and should be
allowed to continue.
• The PMP documents how the project will be managed in terms of the
following questions: why, what, how (and how much), who, when and
where.
– ‘Why’ is a statement of the change to be delivered by the project, which includes a
definition of the need, problem or opportunity being addressed and the benefits to be
delivered. This is frequently developed in the business case.
– ‘What’ describes the objectives, the scope, the deliverables and their acceptance
criteria. It also describes the success criteria for the project and the key performance
indications that will be used to monitor its progress. The ‘what’ needs to take into
account the project’s con- straints, assumptions and dependencies.
– ‘How’ defines the strategy for management and execution of the proj- ect, its handover,
the processes, resources (people, facilities, equipment, tools and techniques) to be used
and the monitoring, control and reporting arrangements.
– ‘How much’ defines the project’s cost and budget, the breakdown of the budget and the
cost monitoring process.
– ‘Who’ includes a description of key project roles and responsibilities and of the
resources that will be required during execution.
– ‘When’ defines the project’s sequence of activities and timescales, including milestones
and any phases/stages.
• planning must contribute to or determine the why, what, how,
how much, who, when and where of the proposed project.
Planning therefore has to generate a wide range of outputs,
including:
– technical solutions (in conjunction with the product design process);
– scope of supply/deliverables and their acceptance criteria;
– implementation strategies, such as the acquisition/procurement strategy;
– scope of work, usually defined by a work breakdown structure (WBS);
– definition of the processes and resources to be used;
– project organization, often defined by an organization breakdown structure (OBS);
– responsibilities for the work, which may be defined by a responsibility assignment
matrix (RAM);
– logical sequence for the activities in the work breakdown structure, their
interdependencies and durations, and the project’s critical path;
– cost estimate, related to the work breakdown structure and providing a basis for
allocation of budgets and for earned value management;
– definition of constraints, assumptions, dependencies and risks, including definition of
risk responses and contingency provisions.
 Why Plan?
• The fundamental reason to plan is to maximize the chances
of project success. There are numerous additional reasons:
– To light the way forward. Planning includes the evaluation of
options for project implementation. Evaluation of options
ensures that the best strategy for the project is selected and can
be committed to by all key stakeholders, since all can see which
option can best deliver the project’s objectives. Organizations in
some sectors formalize the evaluation of options in value
engineering, in which options are related to project objectives
based on what the client (or sponsor) considers to be important.
– To obtain commitment. Projects require commitment from
everyone concerned. One of the best ways to ensure
commitment is to build the plan with the inputs of all
concerned, thus gaining buy-in from every- one working on the
project.
• To facilitate effective communication. Communication is important
to effective project management and in all but the most trivial
projects requires specific management. The PMP defines the
objectives of the project and how it will be implemented: on larger
or more complex projects, it should define specifically how project
communications will be managed. Elements of the plan
communicate particular informa- tion: for example the schedule
communicates when activities must occur, so that resource
availability can be managed.
• To provide the basis for effective project monitoring and control,
and a baseline against which progress can be measured. In
particular, the schedule and the budget define the baseline against
which progress is monitored so that any variances can be identified
and corrective actions taken.
• To prepare for the unexpected. As with many things in life, all
projects can be subject to the unexpected. Planning provides the
baseline against which variances can be identified and corrected.
Planning should also include considerations of uncertainty and risk.
Statistical methods (e.g. Monte Carlo simulation) enable
organisations to model the potential range of project outcomes,
particularly with regard to schedule and cost. Identification of risks
during planning reduces the number of ‘unknown unknowns’ and
enables contingency plans and budgets to be established should
adverse events occur.
• To respond to compulsory requirements. Previously, organisations
might only have had to produce formal accounts, but compulsory
requirements may now extend into the project management arena
in general and planning in particular – via, for example, ISO 9001
and corporate governance requirements, a project-based
organisation must meet relevant standards.
• For use as a basis for arbitration. Some
project-based organisations have learned an
expensive lesson through the courts that it
pays to have proper plans, to update them
regularly and to be in control of scope change.
These organisations pay out huge legal fees,
on top of which are the time and cost of
preparing claims: this is not a cheap option for
any organisation, and it is generally much
more cost- effective to plan properly.
 Relevance to Different types of
Organization
• Planning, and the plans it produces, is
important to numerous types of organisation,
but its relevance varies according to type:
 The client organisation
• A client organization requires the deliverables of the project, needs the
benefits that the project is intended to deliver and pays for the project,
but chooses not to implement the project itself – it selects a contracting
organization for that purpose. Client organizations include the high-street
bank which requires new account management software, the train-
operating company which requires a new signaling system and the
ministry of defense which requires a new air defense system for its
nation’s air force. The client organization must build a business case for
the deliverables of the project, undertaking sufficient of its own planning
to be able to define its needs in terms of scope, time and cost. The
planning undertaken should be sufficient to ensure that the client is an
‘informed customer’, able satisfactorily to compete and contract for the
project, and to judge the merits and feasibility of proposals and plans from
potential contractors. The contract having been awarded, the contracting
organization's plan usually becomes part of the con- tract and is the basis
for progress reporting to the client organization.
 The Contracting Organization
• A contracting organisation specialises in implementing projects for client
organisations. Generally, the opportu- nity to implement a client’s project
must be won in competition. Planning is required both as the basis of a
proposal to the client and for the contracting organisation subsequently to
implement the proj- ect. It does not matter what the project scope
contains or what the technological solution might be: the contracting
organisation needs a plan as the basis of its proposal to the client.
• The plan must of course identify resources and costs and be the basis for
the contractor to operate earned value type calculations if the project is of
sufficient value and complexity. It must contain all the project objectives,
particularly defined deliverables, to meet the required performance
specification; and the plan, costed, underpins the price offered to the
potential client. The resources required and defined in the schedule need
to be available to complete the work, and the contracting organisation
needs to ensure that, as a business, it has the resources available for the
concurrent implementation of its port- folio of projects.
• This requires a resource management process to be in place built
around the resource outputs from all of the organisation’s project
plans. This process also shows the times that the business has
resource available, so the best use of resources can be made.
Finally, prior to the final bid plan and price being submitted a risk
review is held to ensure that some form of contingency or reserve is
held against risks that might occur. This of course becomes the
beginning of risk management for the contractor.
• Once the contract has been awarded, monitoring and control needs
to be performed, and the plan is the reference for measurement, of
both time and cost. If the project is going well, then all is well, but if
the plan starts to slip or the spend starts to exceed the budget on
individual work packages, the variances against the plan identify the
problem areas that need to be addressed by the project team to get
the project back on track.
The in-house projects organisation
• An in-house projects organisation itself
requires the deliverables of the project, needs
the benefits that the project is intended to
deliver and pays for the project, choosing to
implement the project itself. Planning is
required to obtain the necessary approvals to
proceed with the project, and subsequently to
provide the baseline for project monitoring
and control.
 Forms of Project Organization
• Hence, there is a need for ensuring an individual
(or group) with the responsibility for integrating
the activities and functions of the various
departments and external organisations involved
in the project work.
• Such an individual may be called the project
manager or project coordinator.
• Depending on the authority that is given to the
person responsible for the project, the proper
organisation may take one of the following three
forms
 Forms of Project Organization

1. Line and staff organization

2. Divisional organisation
3. Matrix organisation
• Line and staff organisation
• In this form of organization, a person is appointed with
the primary responsibility of coordination the work of
the people in the functional departments
 Line and staff organisation

• Such a person referred to commonly as the project

coordinator, acts essentially in a staff position to
facilitate the coordination of line management in
functional departments.
• The project coordinator does not have authority and
direct responsibility of the line management
• He serves as a focal point for receiving project related
information and seeks to promote the cause of the
project by rendering advice, sharing information and
providing assistance.
 Line and staff organisation

• He may gently coax/persuade line executives to strive

for the fulfillment of project goals.
• Deprived of formal organizational authority, he may find
it difficult to exert leadership and feel unsure of his role.
• His influence would depend on his professional
competence, closeness to top management, and
persuasive abilities.
• Clearly, this is a weak form of organization which may
be employed mostly for small projects.
 Divisional organisation

• Under this form of project organization, a separate

division is set up to implement the project.
• Headed by the Project Manager, this division has its
complement of personnel over whom the project
manager has full line of authority.
• In effect, this form of organization implies the creation of
a separate goal oriented division of the company, with its
own functional departments.
 Divisional organisation
• While the project manager still has the problem
of coordinating the inputs of the organizations
involved in the project, he has total formal
control over the division he heads.
• Advantages:
It is a very strong form of project organization.
It facilitate the process of planning and control
It brings better integration of efforts and
It strengthens the commitment of project related
personal to the objective of the project.
It considerably improves the prospect of fulfilling the
time and budget targets.
 Divisional organisation
• Limitations:
It may entail an inefficient use of the resources
of the firm.
It may result in an unnecessary duplication of
specialist in the company.
It may be difficult to achieve a higher degree of
specialization of experts because the divisional
project organization may have to be managed
with, say, one mechanical engineer, rather than
two specialists.
 Matrix organisation
• The line and functional form of organization is
conducive to an efficient use of resources but is
not suitable for an effective realization of project
objectives.
• The divisional form of organization, on the other
hand, is suitable for an effective realization of
project objectives but is not conducive to an
efficient use of resources.
 Matrix organisation
• The matrix form of organization, the third form of
project organization, seeks to achieve the twin
objectives of:
efficient use of resources and
effective realization of project objectives
• at the cost of greater organizational complexity
of course.
• In a matrix organization, the personnel working
on the project have a responsibility to their
functional superior as well to the project
manager.
 Matrix organisation
• This means that the authority is shared between
the project manager and the functional
managers.
• The authority and influence of the project
manager cut across the traditional vertical line of
command.
• While the personnel maintain the departmental
affiliation and are responsible to their functional
superiors; they are responsible to the project
manager as well.
 Matrix organisation
• The advantages of a pure matrix organizational
form, to project management, include:
Because key people can be shared, the project cost is
minimized
Conflicts are minimal, and those requiring
hierarchical referrals are more easily resolved
There is a better balance between time, cost and
performance
Authority and responsibility are shared
Stress is distributed among the team
 Matrix organisation
• Limitations:
There is dual subordinations
Responsibility and authority are not commensurate
The hierarchical principle is ignored.
• This is clearly implies that the matrix form of
organization involves greater organizational
complexity and creates an inherently conflictful
situation.
• Yet it seems to be better vehicle for simultaneous
pursuit of the twin objectives-efficient utilization of
resources and effective attainment of project
objectives.
 Strategic Planning
• Planning in the early phases of the project life
cycle is strategic rather than detailed: it is top-
down and focuses on ‘why’, ‘what’ and ‘how’.
The answers to these questions provide the
strategic framework for the project plan.
As planning makes the transition from strategic to detailed, and the emphasis changes from ‘why’ and ‘what’ to ‘how’
etc., so the application of planning techniques changes
Strategic Detailed

Why?

How?

What?

How much?

Stakeholder interviews and analysis

Requirements management
Who?
Project context
Brainstorming
Functional analysis and value engineering
Evaluation of options
Make/buy and procurement strategy When?
Scope of work and WBS
Organisation design and responsibilities assignment
Risk management
Outline and detailed schedule Where?
Top-down and bottom-up estimating
Monte Carlo simulation
 Organizational Structure in Project
Management
• The project organizational structure is an essential tool for determining the
hierarchy of people, their function, workflow and reporting system.
• It is a factor in project management that plays a fundamental role in guiding and
defining the way in which the organization carries out its operations.
• There are different project organizational structures defined according to the area
in which the organization operates: they depends on the activities related to the
core business.
• If an organization is dealing with temporary jobs for example, the structure will
probably better manage the recruitment and dismissal of employees as needed.
• On the other hand, if the organization deals with a production chain that requires
continuous operation, it will have a different structure. In this case, the tasks
assigned will engage employees for a longer time to achieve the goals of the
organization.
• As organizations grow or their needs change, the organizational structure must
adapt to support the new goals.
 Why is a Project Organizational
Structure Necessary?
• Every organization must have a well-
defined organizational structure in order to work
efficiently and achieve its goals with fewer risks.
In the modern market, organizations must be
very competitive, efficient, and dynamic in order
to survive and grow. In fact, stakeholders become
more and more aware and demanding and want
quick answers.
Therefore, in order to meet the needs of the
client and survive in the market, each
organization must build an organizational
structure capable of best supporting its goals.
 Types of Project Organizational
Structure
• The organizational structure depends on many factors, such
as the style of government, the style of leadership, the type
of organization, the workflow, the hierarchy, etc.
• The PMBOK orders organizational structures into eight
types:
– Organic or Simple Organization
– Functional or Centralized Organization
– Multi-divisional Organization
– Matrix Organization – strong, weak or balanced
– Project Oriented (composite or hybrid) Organization
– Virtual Organization
– Hybrid
– PMO
 Advantages of having an effective
Organizational Structure
• Allowing an organization to grow.
• Keeping attention on strategic goals, instead of having each department
focused and limited on its agenda.
• Joining a group of people and directing them towards a common goal.
• Allowing employees to improve their skills.
• Making the decision-making process more efficient, smoother, and faster.
• Facilitating employee specialization.
• Allowing better control and use of resources.
• Enabling easier and better communication, which helps reducing conflicts.
• Allowing employees to behave better.
• Helping employees to grow professionally, to make a career, and to
simplify the inclusion of new colleagues.
• Helping identifying roles and responsibilities in a clear and precise way.
 Project Objectives
• Project objectives state the aim of a project. Some
projects have only one project objective, while others
own several objectives that could be completed at
various times during the project.
• Project objectives are a practical tool and not a
motivational aid. They should be limited to the
parameters of the project itself and not describing the
higher mission of the organization.
• The objectives of a project are often written up into an
objective statement. A project’s objective statement
should contain all the objectives for the project.
 How to Write Project Objectives
• Project objectives should be written during the
planning phase of a project.
• Writing project objectives is usually done
collaboratively by the project manager, senior
stakeholders, and team members who will deliver the
project. Usually, the senior stakeholders will champion
the corporate aims of the organization, while team
members will provide their own ideas and input on
their areas of specialism. It’s the project manager’s
job to collate everyone’s input and write project
objectives that represent the team as a whole.
• One framework that helps with writing effective project objectives
is SMART goal setting, which states that goals should be:
• Specific – the project objective should be detailed and
unambiguous.
• Measurable – it should specify how success will be measured.
• Attainable – the objective should be realistic.
• Relevant – it also needs to be relevant to the brand and aims of the
organization.
• Time-limited – and there needs to be a deadline.
• By accounting for all five components of SMART, we can write
practical, effective project objectives that suit the project
management process.
 Project Objectives and policies
• The questions to be answered in this context are:
What are the technical and performance objectives?
What are the time and cost goals?
To what extent should the work be given to outside
contractors?
How many contractors should be employed?
What should be the terms of contract?
• Well-defined objectives and policies serve as the
framework for the decisions to be made by the
project manager.
 Project Objectives and policies
• Throughout the life of the project, he has to seek
a compromise between the conflicting goals of:
technical performance,
cost standard, and
time target.
• A clear articulation of the priorities of
management will enable the project manager to
take expeditous actions.
Project Results
 Expected Project Results
• Project results are the changes or effects expected to take place
after implementing the project. The results are generally positive
improvements to the lives of the beneficiaries.
• Results are divided into three types:
– Outputs are immediate results achieved soon after the completion of
an activity. For example, in a project training local on human rights,
the output might be “20 community workers trained in basic human
rights concepts.”
– Outcomes are the results achieved after some time. These are the
short-term effects of the immediate outputs. If after some time a
change occurs because of the project activity, it can be called an
outcome. Continuing the above example, the outcome might be: “the
participants used their training to inform other community members
about their human rights.”
– The impact is the long-term result that came about because of the
activities undertaken in the project. For the above example, the
impact of the project might be that one year later, the whole
community is aware of human rights issues, and in the next election,
the community largely voted against a leader with a history of human
rights violations.
 Project Management: Roles and
Responsibilities of Different Parties
• Every project has different requirements, so
team structure can vary. But the five
major roles in a project team are
– project sponsor,
– project manager,
– business analyst,
– resource manager, and
– project team member.
Project Sponsor-The person driving the
vision
• The sponsor is the in-house champion of a project,
overseeing operations from a high level. This person
works directly with the project manager, clearing any
obstacles that threaten to stall the project and signing
off on all major components.
• A member of senior management typically fills this
role. A project sponsor’s responsibilities include the
following:
– Creating the project vision
– Earning buy-in from executive leadership
– Making critical decisions
– Approving the project budget
 Project manager (or leader): The person
managing day-to-day operations
• Project managers or leaders are responsible for day-to-day
operations and ensuring the project is completed on time, on
budget, and achieves its objectives.
• On a small project, the manager might oversee each team member.
On a larger-scale project, they are more likely to oversee team
leaders, who each manage their own group.
• The project manager is responsible for the following:
– Creating the project plan and schedule
– Recruiting project staff
– Managing the budget
– Managing the project schedule
– Delegating project tasks to team members
– Managing all project deliverables
– Communicating with upper management and other stakeholders
 Resource manager: In charge of
resource allocation and utilization
• The resource manager is critical when putting together
your project team. Now, if your project isn’t big enough
to require a resource manager, you’ll simply have to act
as one. So what does that mean exactly?
• Identify the right people for a project
• Match project team roles and skills with project needs
• Allocate and schedule the right resource within the
project timeline and budget
• Stay on top of resource availability and utilization
• Monitor and optimize the use of resources throughout
the course of the project to make sure it can be
completed successfully
Business analyst: Makes sure you have
the data you need
• The business analyst is responsible for gathering and analyzing data
related to the project. They help identify the project’s requirements
and determine the best approach to achieve the project’s
objectives. They work with stakeholders to ensure that the project’s
deliverables meet the organization’s needs.
• The business analyst ensures the project team has the technology
and tools to do their jobs effectively. They might also recommend
new tools for streamlining workflows and improving quality.
• A business analyst:
– Helps define the project and its goals
– Gathers technical requirements from team members
– Documents and analyzes project requirements
– Helps project team solve equipment management problems
– Tests solutions to ensure their effectiveness
 Project team member (or project delivery
team): Individual contributors assigned to different
project tasks
• At a high level, all project team members are
assigned the tasks required to complete the
project, and are responsible for:
– Contributing to the project goals and objectives
– Completing individual tasks within the expected
time frame
– Collaborating with other team members
– Communicating with the project manager about
roadblocks
 Other roles in a project team
• An executive sponsor is a senior owner of the project (with more
authority than the project sponsor) and the ultimate decision-maker
• A Project Owner is usually the person who proposed the project. They
assist the project manager in ensuring successful implementation
• A Project Lead is someone who carries out a lot of the tasks of the project
manager but doesn’t have as much experience or official qualifications
• A team leader is responsible for training team members and monitoring
progress toward project objectives
• A functional manager’s responsibility can vary, but the primary function is
to ensure the project team has the resources it needs, and address
problems that slow down the project
• A program manager coordinates all projects related to a specific program
and provides guidance to the project manager
• A subject matter expert (SME) has advanced knowledge of a
specific area, practice, or process. They provide guidance and
strategy to the project team.
• A project coordinator or project management office (PMO) offers
administrative support to the project team and establishes
standards to ensure the team’s processes align with broader
organizational goals.
• Project stakeholders are people (internal or external to the project)
who have an interest in and influence over the project. Their
responsibilities and interests vary between (and even within)
projects.
• A steering committee includes senior-level stakeholders (such as
the project sponsor) and company managers, and provides strategic
support to help define business needs and achieve project
outcomes.
Primary Planning in Project
Management
 What is Project Planning
• The project planning phase of project management is
where a project manager builds the project roadmap,
including the project plan, project scope, project schedule,
project constraints, work breakdown structure, and risk
analysis.
• It doesn’t matter if the project is a new website or a new
building, the project planning phase serves as a roadmap
and acts as a control tool throughout the project. Project
planning provides guidance by answering questions like:
– What product(s) or service(s) will we deliver?
– How much will the project cost?
– How can we meet the needs of our stakeholders?
– How will progress be measured?
• A project plan is a set of documents that can
change over the course of a project. The plan
provides an overall direction for the project, so
drafting this is a key aspect of the project
planning phase. If unexpected issues arise, such
as delivery delays, the plan can be adjusted by
the project manager.
• Project plans are coordinated by the project
manager, with input from stakeholders and team
members. Plan components cover the “what”
and “how” of a project.
• Plans include details related to:
– Timelines and stages
– Metrics
– Activities
– Milestones
– Deliverables
• They also cover practical aspects such as:
– Manufacturing
– Risk Management
– Quality
– Procurement
• While resource-related considerations are also included, like:
– Staffing
– Communications
– Dependencies
 Cont…d
• Project planning involves:
– Identifying work to be done and estimating time, cost
and resource requirements and gain approval to do the
project. Defining all of the work of the project
– Estimating how long it will take to complete this work
– Estimating the resources required to complete the work
– Estimating the total cost of the work
– Sequencing the work
– Building the initial project schedule
– Analyzing & adjusting the project schedule
– Writing a risk management plan
– Documenting the project plan
– Gaining senior management approval to launch the
project
 Cont…d
• A project plan is a formal, approved document used to
guide both project execution & control
– The primary uses of the project plan are to document
planning assumptions and decisions, facilitate
communication among stakeholders, and document
approved scope, cost, and schedule baselines.
• A project plan may be summarized or detailed
– It is a statement of how and when a project’s objectives
are to be achieved, by showing the major products,
milestones, activities and resources required on the
project
• Project plan is the work plan, not the work
– Project plan is a definition of needed work and resources
Planning Process
 Planning Objectives
• Agreements on:
– Scope
– Objectives
– Work activities
– Estimates
– Resources required
– Roles and responsibilities
– How to change & update the plan
 Project Plan & Project Planning
• A formal, approved document used
to guide both execution & control

• The process involved in the development of a

project plan
 Uses of Project Plan
• Guide execution
• Document planning assumptions
• Document planning decisions
• Facilitate communication
• Define key management reviews
• Provide a baseline for progress
measurement & control
Purpose of Project Planning
• Objectives
• Goals
• Special influences
• Constraints on the
project scope
Purpose of Project Planning
• Actions
• Risks
• Responsibilities
Cont…d
• Identification of
required activities
• Establishing workable
procedures
Cont…d
• Flexibility to adapt to
changes
• Retain the qualities of
integrity and durability
 Elements of a Project Plan
• Project summary
• Specifications
• Work statement
• Master schedule
• Rules & procedures
• Budget and cost
• Activity/network plan
• Material & equipment
• Cross impact matrix
• Project organizational plan
• Management plan
• Reporting and review procedures
 Other Elements of a Project Plan
• Financial plan • Quality assurance plan
• Contingency analysis • Configuration mgt plan
• Logistics support plan • Security plan
• Facilities requirement • Test plan
plan • Production plan
• Market intelligence plan • Make or buy plan
• Procurement plan
• Training plan
Project Integration Management
 Why initial project coordination with various
parties crucial?
• Define objectives & scopes of the project.
• Technical objectives are established.
• Basic areas of performance responsibilities
delegated.
• Tentative schedules and budgets are worked
out.
 Significance of Project Planning
• Project planning involves a series of steps that determine how to
achieve a particular goal or set of related goals.
• Project planning helps us to:
– Think ahead and prepare for the future- reduce/eliminate
uncertainty
– Clarify goals and develop a vision
– Identify issues that will need to be addressed
– Choose between options
– Consider whether a project is possible
– Make the best use of resources- improve efficiency of operations
– Motivate staff and the community
– Assign resources and responsibilities
– Achieve the best results
– To provide basis for monitoring and controlling
 Characteristics of PM plan
• Comprehensive
• Unique
• Unambiguous
• Always current
• Authoritative
 Project Planning Helps us to Eliminate:

• Poor project design

• Overambitious projects
• Unsustainable projects
• Undefined problems
• Unstructured project work plans
 Cont…d
• Consequences of poor planning include:
– Project initiation without defined requirements
– Wild enthusiasm
– Disillusionment
– Chaos
– Search for the guilty
– Punishment of the innocent
– Promotion of the nonparticipants
 Cont…d
• One of the most difficult activities in the project
environment is to keep the planning on target.
• Here are procedures to project managers during
planning:
– Let functional managers do their own planning.
– Establish goals before you plan.
– Set goals for the planners.
– Stay flexible.
– Keep a balanced outlook. Don’t overreact
– Welcome top-management participation.
– Beware of future spending plans.
– Test the assumptions behind the forecasts.
– Don’t focus on today’s problems.
 Why do Plans Fail?
• No matter how hard we try, planning is not perfect, and sometimes
plans fail. Typical reasons include:
– Corporate goals are not understood at the lower organizational levels.
– Plans encompass too much in too little time.
– Financial estimates are poor.
– Plans are based on insufficient data.
– No attempt is being made to systematize the planning process.
– Planning is performed by a planning group.
– No one knows the ultimate objective.
– No one knows the staffing requirements.
– No one knows the major milestone dates, including written reports.
– Project estimates are best guesses, and are not based on standards or
history.
– Not enough time has been given for proper estimating.
– No one has bothered to see if there will be personnel available with the
necessary skills.
– People are not working toward the same specifications.
– People are consistently shuffled in and out of the project with little regard
for schedule.
Characteristics of Project Planners
 Commonly Used Tools for PP
• Gantt Chart
• Problem tree analysis
• SWOT analysis
• LFA (Logical Framework Analysis)
• PRINCE2
• Project Management Software
• Gozinto chart
• WBS
• Linear Responsibility chart
 Project Scope Management
• PSM includes the processes required to ensure that the
project includes all the work required, and only the work
required, to complete the project successfully
• Primarily concerned with defining & controlling what is and
what is not included in the project
• Covers:
– Collecting requirements-defining , documenting & managing
stakeholders’ needs to meet the project objectives
– Defining scope- developing a detailed description of the project
& product
– Creating WBS- subdividing project deliverables & project work
into smaller, more manageable components
– Verifying scope- formalizing acceptance of the completed
project deliverables
– Controlling scope- monitoring the status of the project &
product scope and manage changes to the scope baseline
 Cont…d
• The approved detailed project scope
statement and its associated WBS & WBS
dictionary are the scope baseline for the
project
• This baseline scope is then monitored,
verified, and controlled throughout the
lifecycle of the project
 Scope Definition
• Scope: product & project
• Product scope- the features & functions that characterize a
product, service, or result; and/or
• Project scope- the work that needs to be accomplished to
deliver a product, service, or result with the specified
features and functions
• Preparing a detailed description
• Inputs: project charter, requirements documentation,
organizational process assets
• Tools & Techniques: expert judgment, product analysis,
alternative identification, facilitated workshops
• Outputs: project scope statement, project document
updates
Project Scope Management: Inputs,
Tools & Techniques, and outputs
 Collect Requirements
• The process of defining, documenting &
managing stakeholders’ needs to meet project
objectives.
• Care taken directly influences project’s success
• Key benefits of this process:
• It provides the basis for defining & managing the
project scope including product scope
• Includes the quantified & documented needs &
expectations of the sponsor, customer, and other
stakeholders
 Cont…
• Requirements need to be elicited, analyzed, &
recorded in enough detail to be measured once
execution begins
• Requirements can be grouped as
• Business requirement describes high level needs of the
organization- issues, reasons, opps
• Stakeholder requirements
• Solution requirements features, functions of the product
further grouped as functional & non-functional
• Transition requirements temporary capabilities
• Project requirements
• Quality requirements
 Cont…
• Becomes the foundation of the WBS. Cost,
schedule, and quality planning all depend on
it.
• The development of requirements begin with
an analysis of the information contained in the
project charter and the stakeholder register
Develop Project Charter
Cont…d
 Cont…d
• Project Statement of work (SOW) is a narrative description of
products or services to be delivered by the project
• It references:
• Business need- based on market demand, technological
advance, legal requirements, government regulation
• Product scope description- documents the x-cs of the product
that the project will be undertaken to create
• Strategic plan- documents the organization’s strategic goals
• Business Case provides necessary information from a business
standpoint to determine whether or not the project is worth
the required investment
 Cont…d
• The project charter documents the business needs, current
understanding of the customer’s needs, and the new
product, service or result that it is intended to satisfy, such
as:
– Project purpose or justification
– Measurable project objectives and related success criteria
– High-level requirements
– High-level project description
– High-level risks
– Summary milestone schedule
– Summary budget
– Project approval requirements
– Assigned project manager, responsibility, & authority level
– Name and authority of the sponsor or other person(s)
authorizing the project charter
 Identify Stakeholders
• The process of identifying all people or organizations
impacted by the project and documenting relevant
information regarding their interest, involvement, and impact
on project success
• It is critical for project success to identify the stakeholders
early in the project, and to analyze their levels of interest,
expectations, importance and influence.
• A strategy can then be developed for approaching each
stakeholder & determining the level & timing of stakeholders’
involvement to maximize positive influence & mitigate
potential negative impacts
Identify Stakeholder
 Cont…d
• Project Charter provides information about internal &
external parties involved in & affected by the project, such as
project sponsor, team members, groups & departments
participating in the project, & other people or organizations
affected by the project
• Procurement documents- parties in a contract are key
stakeholders
 Cont…d
• SA- is a technique of systematically gathering & analyzing
quantitative & qualitative information to determine whose
interest should be taken into account throughout the project.
• It identifies the interests, expectations, and influence of the
stakeholders & relates them to the purpose of the project
 Cont…d
• Stakeholder Register
– Contains all details related to the identified
stakeholders including but not limited to:
– Identification information: name, organizational
position, location, role in the project, contact
information;
– Assessment information: major requirements, main
expectations, potential influence in the project, phase
in the life cycle with the most interest; and
– Stakeholder classification: internal/external,
supporter/neutral/resistor, etc
 Cont…d
• Stakeholder Management Strategy defines an approach to
increase the support & minimize negative impacts of
stakeholders throughout the entire project lifecycle
• Includes: key stakeholders who can significantly impact the
project; level of participation desired for each; & stakeholder
groups & their management
 Cont…d
• Two types: project & product requirements
• Project requirements- business requirements,
project management requirements, delivery
requirements, etc
• Product requirements- information on
technical requirements, security
requirements, performance requirements, etc
Collect Requirements: Inputs, Tools &
Techniques, and outputs
 Cont…d
• Project Charter provides the high level project requirements &
high level product description of the project so that detailed
product requirement can be developed
• Stakeholder Register is used to identify stakeholders that can
provide information on detailed project & product
requirements
• Scope management plan- provides clarity how the project
teams which requirement to collect
• Requirements management plan provides the processes to be
used to run the collect process to define and document
stakeholder needs
• Stakeholder management plan help understand stakeholder
communication requirements
 Cont…d
• Requirements documentation describes how individual
requirements meet the business need for the project.
• Requirements may start out at a high level and become
progressively more detailed as more is known.
• Need to be measurable, testable, traceable, complete, consistent,
and acceptable to key stakeholders
• Components:
– Business opportunity or need to be seized
– Business & project objectives
– Functional requirement- business processes, information & interaction
with the product
– Non-functional requirements- level of service, performance, safety,
security, compliance, supportability
– Quality requirements
– Acceptance criteria
– Business rules stating the guiding principles of the organization
– Impacts to other organizational areas
– Support & training requirements
 Requirements Management Plan
• Documents how requirement will be analyzed,
documented, and managed throughout the project
• Components:
– How requirements activities will be planned, tracked & reported
– Configuration management activities – how changes in the
product, service, or result requirements will be initiated, how
inputs will be analyzed, traced, tracked & reported, and
authorization levels required to approve changes
– Requirements prioritization process
– Product metrics that will be used & the rationale for using them,
and
– Traceability structure- which requirements attributes will be
captured on the traceability matrix and to which other project
documents requirement will be traced
 Cont…d
• Requirements Traceability Matrix
– Is a table that links requirements to their origin
and traces them throughout the project life cycle.
– Helps to ensure that each requirement adds
business value by linking it to the business and
project objectives
– Helps to ensure that requirements approved in
the requirement documentation are delivered at
the end of the project
 Define Scope
• The process of developing a detailed description
of the project & product.
• The preparation of a detailed project scope
statement is critical to project success and builds
on the major deliverables, assumptions, and
constraints that are documented during project
initiation
• During planning, the project scope is defined &
described with greater specificity as more
information about the project is known
Define Scope: Inputs, Tools & Techniques, and Outputs
 Cont…d
• Define Scope: Inputs
– Project charter
– Requirement documentation
– Organization Process Assets- e.g., policies,
procedures, & templates for a project scope
statement; project files from previous projects
 Define Scope: Tools & Techniques
• Expert Judgment- is used to analyze the
information needed to develop the project scope
statement
• Product Analysis- includes techniques such as
product breakdown, systems analysis,
requirements analysis, systems engineering,
value engineering, and value analysis
• Alternative Identification- used to generate
different approaches to execute & perform the
work of the project
• Facilitated workshops
 Define Scope: Outputs
• Project Scope Statement- describes, in detail, the project’s
deliverables and the work required to create those deliverables
– Also provides a common understanding of the project scope among
project stakeholders
– The detailed project statement includes the following:
– Product scope description- elaborates the x-cs of the product, service
or result described in the project charter & requirement
documentation
– Product acceptance criteria
– Product deliverables- products/services; ancillary results- PM reports
and documentation
– Project exclusions- what is out of the scope of the project
– Project constraints- e.g., predetermined budget
– Project assumptions
 Cont…d
• Project Document Updates
– Project documents that may be updated include:
– Stakeholder register
– Requirements documentation, and
– Requirements traceability matrix
 Project Scope Creep

• Scope Creep is a term that describes the tendency for

the project scope to expand over time. Changing
requirements, specifications, and priorities are the
main culprits.
• Scope Creep can be prevented by carefully writing the
scope statement with as much detail as possible. Scope
statements that are written too broadly open the door
for scope expansion.
• Scope Creep adds risk, cost, and schedule delays in
most instances.
• Scope Creep should be avoided and watched-for by
the project manager.
 Project Time Management
• Any project takes some amount of time
• The relationship between the scope of the
project, time and cost should balance
• In project planning, first we need to define the
product scope (the verifiable & tangible
deliverables that make the client happy). Second,
we need to define project scope (all of the work
and only the work required to create the project
deliverables). The two depend on one another.
Third, we create the WBS- it is not a list of
activities to complete the project
 Create WBS
• The process of sub-dividing project deliverables and
project work into smaller, more manageable
components
• The WBS is a deliverable-oriented hierarchical
decomposition of the work to be executed by the
project team to accomplish the project objectives and
create the required deliverables, with each descending
level of the WBS representing an increasingly detailed
definition of the project work
• The WBS organizes and defines the total scope of the
project and represents the work specified in the
current approved project scope statement
Create WBS: Inputs, Tools &
Techniques, & Outputs
 WBS: Inputs
• Project scope statement
• Requirements documentation
• Organization process assets- policies,
procedures, and templates for the WBS;
project files from previous projects, and
lessons learned from previous projects
 Create WBS: Tools & Techniques
• Decomposition- is the subdivision of project deliverables into
smaller, more manageable components until the work and
deliverables are defined to the work package level
• The work package level is the lowest level in the WBS, and is the
point at which the cost and activity durations for the work can be
readily estimated and managed.
• The level of detail for work packages will vary with the size and
complexity of the project
• Decomposition of the total project into work packages generally
involve the following activities:
– Identifying and analyzing the deliverables and related work
– Structuring and organizing the WBS
– Decomposing the upper WBS levels into lower level detailed
components
– Developing and assigning identification codes to the WBS components
– Verifying that the degree of decomposition of the work is necessary
and sufficient
 Cont…d
• The WBS can be created in a number of forms:
– Using phases of the project life cycle as the first
level of decomposition with the product and
project deliverables inserted at the second level
– Using major deliverables as the first level of
decomposition
– Using subprojects which may be developed by
organizations outside the project team, such as
contractual work
Sample WBS Organized by Phase
Sample WBS with Major Deliverables
 Create WBS: Outputs
• WBS- is a deliverable oriented hierarchical decomposition of the
work to be executed by the project team, to accomplish the project
objectives and create the required deliverables, with each
descending level of the WBS representing an increasingly detailed
definition of the project work
• The WBS is finalized by establishing control accounts for the work
packages and a unique identifier from a code of accounts. These
identifiers provide a structure for hierarchical summation of costs,
schedule, and resource information
• A control account is a management control point where scope, cost
and schedule are integrated and compared to the earned value for
performance measurement
• Control accounts are placed at selected management points in the
WBS
• Each control account may include one or more work packages, but
each of the work package must be associated with only one control
account
 Cont…d
• WBS Dictionary- is a document generated by the Create WBS
process that supports the WBS
• It provides more detailed descriptions of the components in the
WBS, including work packages and control accounts.
• Information in the WBS dictionary includes:
– Code of account identifier
– Description of work
– Responsible organization
– List of schedule milestones
– Associated schedule activities
– Resource required
– Cost estimates
– Quality requirements
– Acceptance criteria
– Technical references, and
– Contract information
 Cont…d
• Scope Baseline- component of the PM plan
– Includes:
– Project scope statement- includes the product scope
description, and the project deliverables, and defines
the product user acceptance criteria
– WBS- defines each deliverables and the
decomposition of the deliverables into work packages
– WBS dictionary- has a detailed description of work
and technical documentation for each WBS element
• Project Document Updates
 Work Planning Authorization
• Work planning authorization releases funds
(primarily for functional management) so that
scheduling, costs, budgets, and all other types
of plans can be prepared prior to the release
of operational cycle funds
 Cont…d
• Project time management includes the processes required to manage
timely completion of the project and involves:
• Define activities- the process of identifying the specific actions to be
performed to produce the project deliverables
• Sequence activities- the process of identifying and documenting
relationships among the project activities
• Estimate activity resources- the process of estimating the type and
quantities of material, people, equipment, or suppliers required to
perform each activity
• Estimate activity durations- the process of approximating the number of
work periods needed to complete individual activities with estimated
resources
• Develop schedule- the process of analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the project
schedule
• Control schedule- the process of monitoring the status of the project to
update project progress and managing changes to the schedule baseline
 Activity Definition
• An activity or task is an element of work normally found on the WBS
that has an expected duration, a cost, and resource requirements.
• Project schedules grow out of the basic documents that initiate a
project
– Project charter includes start and end dates and budget information
– Scope statement and WBS help define what will be done
• Activity definition involves developing a more detailed WBS and
supporting explanations to understand all the work to be done so we
can develop realistic cost and duration estimates
• WBS creation process identifies the deliverables at the lowest level in
the WBS, the work package
• Project work packages are typically decomposed into smaller
components- activities that represent the work necessary to complete
the work package
• Activities provide a basis for estimating, scheduling, executing, and
monitoring and controlling the project work
Activity Definition: Inputs, Tools &
Techniques, and Outputs
 Activity Definition: Inputs
• Scope Baseline- is a component of the PMP
– Project scope statement- contains the product scope description & the
project deliverables, and defines the product user acceptance criteria,
project constraints & assumptions
– WBS- defines each deliverable & the decomposition of the
deliverables into work packages
– WBS dictionary- has a detailed description of work & technical
decomposition for each WBS element
• Enterprise Environmental Factors
– Factors that can influence activity definition process such as PMIS
– Organizational Process Assets: includes factors such as
– Existing formal & informal activity planning- related policies,
procedures, & guidelines, such as the scheduling methodology, that
are considered in developing the activity definitions, &
– Lessons learned knowledge base containing historical information
regarding activities lists used by previous similar projects
Activity Definition: Tools & Techniques
• Decomposition- subdividing the project work packages into
smaller, more manageable components called activities.
Activities request the effort needed to complete a work
package. The activity definition process defines the final
outputs as activities
• The activity list, WBS, and WBS dictionary can be developed
either sequentially or concurrently, with the WBS & WBS
dictionary as the basis for development of the final activity list
• Each work package within the WBS is decomposed into the
activities required to produce the work package deliverables
 Cont…d
• Rolling wave planning is a form of progressive elaboration planning where
the work to be accomplished in the near term is planned in detail and
future work is planned at higher level of the WBS. Therefore, work can
exist at various levels of detail depending on where it is in the project life
cycle. For example, during early strategic planning, when information is
less defined, work packages may be decomposed to the milestone level.
As more is known about the upcoming events in the near term it can be
decomposed into activities
• Templates
• A standard activity list or a portion of an activity list from a previous
project is often usable as a template for a new project
• Expert judgment- project team members or other experts, who are
experienced & skilled in developing detailed Project scope statements, the
WBS, & project schedules, can provide expertise in defining activities
 Activity Definition: Outputs
• Activity list- is a comprehensive list including all scheduled
activities required on the project
– Includes the activity identifier & a scope of work description for each
activity in sufficient detail to ensure that project team members
understand what work is required to be completed
• Activity Attributes- extend the description of the activity by
identifying the multiple components associated with each
activity. During the initial stage of the project they include the
activity ID, WBS ID, and activity name, and when completed
may include activity codes, activity description, predecessor
activities, successor activities, logical relationships, leads &
lags, resource requirements, imposed dates, constraints, and
assumptions
 Cont…d
• Activity attributes can be used to identify the person responsible for
executing the work, geographic area/place where the work has to be
performed, & activity type such as level of effort- discrete effort or
appointed effort
• Activity attributes are used for schedule development & for selecting,
ordering, & sorting the planned schedule in various ways within reports
• Milestone list
– A milestone is a significant point or event in the project. Not every
deliverable or output created for a project is a milestone
• It often takes several activities and a lot of work to
complete a milestone
• They’re useful tools for setting schedule goals and
monitoring progress
• Examples include obtaining customer sign-off on key
documents or completion of specific products such as
software modules or the installation of new hardware
 Cont…d
• A milestone list identifies all milestones &
indicates whether the milestone is mandatory,
such as those required by contract, or optional
such as those based on historical information
 Activity Sequencing
• After defining project activities, the next step is Activity
sequencing which is the process of identifying & documenting
relationships among the project activities.
• Involves reviewing the activity list and attributes, project
scope statement, milestone list and approved change
requests to determine the relationships between activities
• Activities are sequenced using logical relationships. Every
activity & milestone except the first & last are connected to at
least one predecessor and one successor. It may be necessary
to use lead (hurry up) time or lag (waiting) time between
activities to support a realistic and achievable project
schedule. Sequencing can be performed by using project
management software or by using manual or automated
techniques
Activity Sequencing: Inputs, Tools &
Techniques, and Outputs
 Activity Sequencing
• Inputs: activity list, activity attributes,
milestone list, project scope statement &
organizational process assets
• Tools & Techniques
– Precedence diagram method (PDM)- a method
used in CPM for constructing a project schedule
network diagram that uses boxes or rectangles,
referred to as nodes, to represent activities, and
connects then with arrows that show the logical
relationships that exist between them
 Cont…d
• PDM (Precedence Diagram method) includes four types of
dependencies or logical relationships:
– Finish-to-start: most common type; states that the upstream activities
must finish before the downstream activities can begin (the initiation
of the successor activity depends on the completion of the
predecessor activity)
– Finish-to-finish: requires both activities to end at the same time (the
completion of the successor activity depends on the completion of the
predecessor activity)
– Start-to-start: the initiation of the successor activity depends on the
initiation of the predecessor activity (allows two activities to start at
the same time, but not necessarily end at the same time
– Start-to-finish most unusual & least used; the completion of the
successor activity depends on the initiation of the predecessor activity
or the upstream activity must start so the down stream activity can
finish (occurs when using JIT scheduling)
 Dependency Determination
• Three Types of Dependencies
• Mandatory dependencies: contractually required or
inherent in the nature of the work being performed on a
project, sometimes referred to as hard logic
• Discretionary dependencies: defined by the project
team; sometimes referred to as preferred or soft logic
and should be used with care since they may limit later
scheduling options
– Don’t start detailed design work until users sign-off on all the
analysis – good practice but can delay project
• External dependencies: involve relationships between
project and non-project activities
– Delivery of new hardware; if delayed can impact project
schedule
 Cont…d
• Applying Leads & Lags
– The project mgt team determines the dependencies that
may require a lead or lag to accurately define the logical
relationship. A lead allows an acceleration of the successor
activity. For instance, on a project to construct a new office
building, the landscaping could be scheduled to start 2
weeks prior to the scheduled punch list completion. This
would be shown as a finish-to-start with a 2-week lead
– A lag directs a delay in the successor activity. For instance,
a technical writing team can begin editing the draft of a
large document 15 days after they begin writing it. This
could be shown as a start-to-start relationship with a 15
day lag
 Activity Sequencing: Outputs
• Project Schedule Network Diagrams- are
schematic displays of the project’s schedule
activities and the logical relationships among
them (dependencies)
• A project schedule network diagram can be
produced manually or by using project
management software. It can include full project
details, or have one or more summary activities
• Project document updates: activity lists, activity
attributes, risk register
 Estimating Activity Resources
• It is the process of estimating the type & quantities of
materials, people, equipment, or supplies required to perform
each activity.
• It is closely coordinated with the cost estimation
 Activity Resource Estimation
• Inputs: Activity list, activity attributes, resource
calendars (information on which resources such
as people, equipment, & materials are potentially
available during planned activity period is used
for estimating resource utilization
• Specify when and how long identified project
resources will be available during the project
• Include: the availability, capabilities, and skills of
human resources
 Activity Resources Estimation: Tools &
Techniques
• Expert judgment- used to assess the resource-related inputs to this
process
• Alternatives analysis- alternative methods of accomplishment
(various levels of capability or skills, different size or type of
machines, different tolls, and make-or-buy decisions regarding the
resources)
• Published estimating data- published updated production rates &
costs of resources
• Bottom-up estimating- when an activity cannot be estimated with a
reasonable degree of confidence, the work within the activity is
decomposed into more detail. The resource needs are estimated.
These estimations are then aggregated into a total quantity for each
of the activity’s resources
• PM Software help to plan, organize & manage resource pools &
develop resource estimates
Activity Resources Estimation: Outputs
• Activity Resource Requirements- identifies the type &
quantities of resources required for each activity in a work
package. These requirements can then be aggregated to
determine the estimated resources for each work package.
The amount of detail & the level of specificity of the
resource requirements can vary by application area
• Resources Breakdown Structure- is a hierarchical structure
of the identified resources by resource category & resource
type. Resource category- labor, material, equipment, and
supplies. Resource type – skill level, grade level , etc
• Project document updates- activity list, activity attributes,
& resource calendars
 Estimate Activity Durations
• It is the process of approximating the number
of work periods needed to complete
individual activities with estimated resources.
Estimating activity durations use information
on activity scope of work, required resource
types, estimated resource quantities, and
resource calendars.
 Activity Duration Estimating
• Duration includes the actual amount of time
worked on an activity plus the elapsed time.

• Effort is the number of workdays or work

hours required to complete a task.

• Effort does not normally equal duration.

• People doing the work should help create

estimates, and an expert should review them.
Activity Duration Estimation: Inputs, Tools &
Techniques, and Outputs
Estimate Activity Durations: Inputs
• Activity list
• Activity attributes
• Project scope statement
• Resource calendars- include the type, availability, and
capabilities of human resources. The type, quantity,
availability, & capability, when applicable, of both equipment
& material resources, which could significantly influence the
duration of schedule activities, are also considered
• Activity Resource Requirements
– The estimated activity resource requirements will have an effect on
the duration of the activity, since the resources assigned to the activity
and the availability of those resources will significantly influence the
duration of most activities
 Tools & Techniques
• Expert Judgment
• Analogous estimating uses parameters such as duration, budget, size,
weight, and complexity, from a previous, similar project, as the basis for
estimating the same parameter or measure for a future. When estimating
durations, this technique relies on the actual duration of previous, similar
projects as the basis for estimating the duration of the current project
• It is frequently used to estimate project duration when there is a limited
amount of detailed information about the project for example, in the early
phases of a project. It uses historical information & expert judgment
• Parametric estimating- uses a statistical relationship between historical
data & other variables to calculate an estimate for activity parameters,
such as cost, budget, & duration. Activity duration can be quantitatively
determined by multiplying the quantity of work to be performed by labor
hours per unit of work
 Cont…d
• Three-point estimate: the accuracy of activity duration
estimates can be improved by considering estimation
uncertainty and risk. It originated with PERT
• Reserve Analysis- duration estimates may include
contingency reserves into the overall project schedule to
account for schedule uncertainty. The contingency reserve
may be a percentage of the estimated activity duration, a
fixed number of work periods, or may be developed by using
quantitative analysis methods
 Outputs
• Activity duration estimates
– Activity duration estimates are quantitative
assessments of the likely number of work periods
that will be required to complete an activity
• Project Document Updates
 What is Included in Project Plan?
• Project charter.
• This is a short, formal summary of your project’s aims,
methods and stakeholders. You’ll likely refer back to this
document later in the project lifecycle and may find it a
useful frame of reference when measuring success.
• Project schedule.
• Schedules list what needs to be done and when, including
details of any tools, bookings or people you might need to
utilize at each stage. This is sometimes paired with a work
breakdown structure (WBS). Depending on the nature of
your project, you might list activities, costs and allocated
hours beneath each deliverable.
• Cost management plan.
• This is essentially a detailed budget. Using the project planning
phase to identify procurements, suppliers and resources can help
you to map your project’s price tag. A project manager might use
this document to think about human resource costs and consider
figures that might grow if elements of your project plan change.
• Statement of work (SoW).
• A Statement of Work can help you keep an eye on scope, by listing a
breakdown of the project’s aims and tasks. It’s often more detailed
and less formal than a project charter and you might include
practical details, such as the location of meetings, quality standards
and software requirements here.
• Risk management plan.
• This allows you to identify the project’s main hazards for your organization
and their potential impact. Analyzing the likelihood of each risk, high,
medium or low, can give you sight of where to focus your efforts right
from the project planning phase.
• Stakeholder management plan.
• In project management, each department comes to the table with distinct
priorities, so drafting a stakeholder management plan can help. This
document can ensure you identify all stakeholders, assign roles and
prioritize interests accordingly.
• Quality plan.
• This aspect of the planning phase sets quality standards and acceptance
criteria for deliverables.
• Good project planning software can streamline the document drafting
process in project management. It might allow you to combine these
elements of analyze them side-by-side, for instance.
 Review and approve the plan.
• Before the project plan is finalized, the project
manager needs to receive approval from
stakeholders. To do this, they should build and
maintain rapport with stakeholders to gain their
trust.
• If the project manager can prove that the project
risks have been assessed and managed, and the
project plan has been built to satisfy the overall
vision of the sponsor, they can increase their
chances of receiving approval.
 After Approval
• Assign team roles and ongoing responsibilities.
• Over the course of a project, a project manager should
continually analyze project quality, monitor risk, and
communicate effectively. The plan may have been
mapped out, but your project’s wheels start turning
only when tasks are assigned.
• Define responsibilities clearly, either by individual,
group or department, depending on project scale.
Ensure systems are in place for each task and line of
communication to flow smoothly from the last.
• Monitor project quality.
• The project manager is responsible for
monitoring project quality to ensure the end
result meets expectations. Project quality is
proactive and it involves error prevention and risk
management.
• A quality plan aids in this ongoing responsibility
by outlining standards, acceptance criteria,
and project metrics. It is used to guide reviews
and inspections during the project.
• Communicate effectively.
• Effective communication is central to the
success of a project. Project communications
can be guided with a communication plan.
• This document clarifies:
– Who receives which reports
– How issues will be handled
– Where project information is stored
– Who has access to it
How to Maintain Ongoing Project?
• Naturally, the planning phase is just the
beginning. Once your project is underway,
managing the way things change can become a
side project in its own right.
• Set up pathways to deal with change and feed
information into each branch of your current
plan. If a cog in the chain alters, the best project
plans are able to absorb this information quickly
and direct it through all channels.
 Successful Project Planning
• The project planning phase is a roadmap for
project managers. From pre-planning and
meeting with stakeholders, to research,
drafting, scheduling, and receiving final
approval. All of these steps and subtasks help
contribute to a successful project that aligns
with the sponsor’s vision and overall
objectives.
 Planning for Monitoring & Evaluation
• A monitoring and evaluation (M&E) plan is a document that helps to track
and assess the results of the interventions throughout the life of a
program. It is a living document that should be referred to and updated on
a regular basis. While the specifics of each program’s M&E plan will look
different, they should all follow the same basic structure and include the
same key elements.
• An M&E plan will include some documents that may have been created
during the program planning process, and some that will need to be
created new. For example, elements such as the logical framework, theory
of change, and monitoring indicators may have already been developed
with input from key stakeholders.
• The M&E plan takes those documents and develops a further plan for
their implementation.
• An M&E plan should be developed at the beginning of the project when
the interventions are being designed. This will ensure there is a system in
place to monitor the project and evaluate success.
 Project Evaluation
• Project evaluation is the process of measuring the
success of a project, program or portfolio.
• This is done by gathering data about the project
and using an evaluation method that allows
evaluators to find performance improvement
opportunities.
• Project evaluation is also critical to keep
stakeholders updated on the project status and
any changes that might be required to the budget
or schedule.
• Every aspect of the project such as costs, scope, risks or
return on investment (ROI) is measured to determine if
it’s proceeding as planned.
• The project evaluation process has been around as
long as projects themselves. But when it comes to the
science of project management, project evaluation can
be broken down into three main types or methods:
pre-project evaluation, ongoing evaluation and post-
project evaluation. Let’s look at the project evaluation
process, what it entails and how you can improve your
technique.
 Project Evaluation Methods
1. Pre-Project Evaluation
– In a sense, you’re pre-evaluating your project when you write your project
charter to pitch to the stakeholders. You cannot effectively plan, staff and
control a new project if you’ve first not evaluated it. Pre-project evaluation is
the only sure way you can determine the effectiveness of the project before
executing it.
2. Ongoing Project Evaluation
– To make sure your project is proceeding as planned and hitting all of the
scheduling and budget milestones you’ve set, it’s crucial that you constantly
monitor and report on your work in real-time. Only by using project metrics
can you measure the success of your project and whether or not you’re
meeting the project’s goals and objectives. It’s strongly recommended that
you use project management dashboards and tracking tools for ongoing
evaluation.
3. Post-Project Evaluation
– Think of this as a postmortem. Post-project evaluation is when you go through
the project’s paperwork, interview the project team and principles and
analyze all relevant data so you can understand what worked and what went
wrong. Only by developing this clear picture can you resolve issues in
upcoming projects.
 Benefits of Project Evaluation
• Better project management
• Improves team performance
• Better project planning
• Helps stakeholder management
Project Management Practices in
Ethiopia
• Of course, project management is the most viable and effective
means to manage risks, issues, change, quality, cost and add value
to the project economy across the globe and it is here to stay for
long.
• Despite a clear potential of being an important tool to the
economy, the level of attention given to project management in the
Ethiopian economy is so minimal, and if any traditional.
• For example, it is not fully considered as a career choice, and in fact,
and as far as my knowledge is concerned, there is no any project
management accreditation institution (apart from the general
courses in few colleges and universities) in the country. Neither are
the international institutions accessible to the ordinary citizens. This
needs to change and if you follow me, I will shade light why, how
and where to focus.
 Project Value Driven Approach
• From project identification, selection, establishment,
implementation, test and commissioning, handover to
operation and maintenance, project management
principles and processes, phases, techniques and tools are
useful frameworks and guides to gauge whether the project
initiative can add real value to organizations and society. It
is also a means to communicate and engage the wider
stakeholders of the specific projects in time.
• The usual practice in Ethiopia is, however, far from what
project management processes and principles entail.
Projects are usually initiated top down and executed
without passing through a rigorous process and assessment
at different stages, be it technical, financial, institutional,
commercial, delivery, sustainability or stakeholder wise.
• Project units are set up based on relationships rather than
project management experience and expertise as it is
considered benefits for individuals as opposed to
organizations and society. Worse, project status is poorly
communicated to society and opens the Pandora box for
every likely guess of the larger public.
• To capture a real value from projects, it is fundamental to
put in place a standard metric (value capturing systems)
and conduct deeper assessments across all project
dimensions and communicate effectively rather than
depending on individuals’ subjective opinions. Leaders are
there to set the tone and direction, yet the actual project
work shall be executed through the scientific approach
rather than mere orders.
 Project Incentive Schemes
• From the setup, project management units are not
often empowered and there is no clear incentive of
performance and accountability in place. Project teams
are assumed to manage projects of millions of dollar
sizes with the normal operational compensation
despite the fact that projects have their own
characteristics, challenges, and, of course, pressure.
The assigned project management team goes extra
rounds to ensure their benefits unofficially, ultimately
falling under the very people or companies they are
supposed to manage. Quality, cost, delay and assumed
service delivery all left under the bus costing the
country and society immensely.
• Training in foreign countries is usually part of project packages
under the premise of technology transfer while in reality it is an
indirect incentive to the team and the people behind the project. It
is quite common to witness people being sent to a training that has
nothing to do with the project or the operation there after. In fact,
there is a dominant public perception that projects are designed or
initiated to benefits individual groups as opposed to the
organizational value they would bring in.
• Empowering the project management team, assigning them based
on work relations, experience and expertise, and laying out clear
and transparent incentive mechanism for performance and
accountability will save the country from over budget, delay and
poor quality of service delivery.
 Coordination Significance
• Project management processes and principles
(frameworks) are also a means to align,
coordinate and streamline different project
initiatives across stakeholders from planning to
execution and maximize the overall benefits to
society. Let me mention one straightforward
example. But I have to state that it is not in any
way to point fingers on the utility (as I know for
certain that it is not really the utility’s decision)
but to showcase an example.
 Leveraging Technology
• There are enough project management tools and systems in the
market that are matured to ensure effective planning, execution,
handover and above all accountability. The two layers of project
planning enables assessing the value addition during project
planning and ensure effective monitoring throughout project
implementation with a clear Dashboard on a single screen.
• Putting in place project management units, tools and systems
under the prime minister’s office or ministry of finance and
enforcing similar tools across line ministries, for example, would
help effectively monitor project status by simply assigning a single
or few experts for all (or high value) public projects in real time.
Leaving the detail project implementation plan to the executing
agency, other stakeholders can focus on a master plan highlighting
the key aspects of the project. Risk, alignment, progress and value.
 Project Learning
• As in any strategic or operational management practices,
learning is part and parcel to project management.
Whether a success or failure, we are always in better
position than before once we do a certain project in a
certain area or organization. We have more insights as we
execute projects in real life. Apparently, and in my
experience working across many ministries, enterprises and
organizations for many years in Ethiopia, the learning from
projects is very poor. There is always a fresh start facing
related problems and prescribing similar solutions. Similar
project delay, overbudget, bad public image, poor quality of
delivery and service across and within institutions.
• In the project economy, managing operations at project level highly
improves operations at department, organizational and country
level, creating cumulative real value to the society. This is even
quite evident and important in the face of today’s shorter cycle of
change and global uncertainty. Projects already everywhere in
Ethiopia, paying attention to project management knowledge,
practices, developments and giving it proper structure ( to the
extent of establishing accreditation institution, project
management units, assigning high level project executives ),
would indeed improve project operations from where they stand
today. It would also inspire project and program management as a
career choice in the industry creating jobs and reinforcing effective
and efficient project and program management across the country.
 Experience of Project Planning
• Government Sector
– The project planning activity is driven from the government
policy.
• Private Businesses
– Mainly the project planning practice emanates from the
strategic plan/business objective.
• Civil Society Organizations
– Within civil society organizations, a project is usually aimed at
raising awareness about an issue affecting a marginalized
segment of society and is for many a core aspect of the
organization's purpose. As such, project management methods
allow for project managers to effectively execute and monitor
the progress and report to the donors. Effective project
management increases the chances of successful project
outcomes. (Reading Assignment)
Concepts of Result Based Project
Management
 Introduction
• In recent years, there has been growing interest in result-based
management (RBM) as a way of monitoring projects. RBM is a
management strategy that focuses on achieving desired results or
outcomes, rather than simply tracking inputs or activities. In RBM,
outcomes are defined in terms of specific and measurable
indicators, and monitoring and evaluation activities are designed to
assess progress towards achieving these outcomes.
• RBM is often seen as a more effective and efficient approach to
monitoring projects, as it provides a clear framework for setting and
measuring goals, and for tracking progress towards achieving them.
By focusing on outcomes rather than inputs or activities, RBM
encourages project managers to think more strategically about how
they allocate resources and prioritize their efforts.
 Benefits of RBM
• First, RBM helps to ensure that projects are more focused and
targeted, as they are designed around specific outcomes that are
tied to broader development objectives. This can lead to greater
efficiency in the use of resources, as project managers are better
able to identify where to invest their time and money.
• Second, RBM helps to promote greater accountability, as projects
are monitored and evaluated based on their ability to achieve
specific outcomes. This can help to ensure that resources are being
used effectively, and that projects are meeting the needs of the
communities they are intended to serve.
• Third, RBM can help to promote learning and continuous
improvement, as project managers are encouraged to analyze and
reflect on their results, and to adjust their strategies and
approaches accordingly. This can lead to greater innovation and
better outcomes over time.
• Despite the many benefits of RBM, there are also some challenges
and limitations to its implementation. One challenge is that defining
and measuring outcomes can be difficult, particularly in complex or
rapidly changing contexts. Another challenge is that RBM requires
significant investment in monitoring and evaluation systems and
processes, which may be difficult to sustain over the long term.
• Despite these challenges, many development organizations and
governments are turning to RBM as a way of monitoring projects
and promoting greater accountability and effectiveness. By focusing
on outcomes and promoting a culture of learning and continuous
improvement, RBM can help to ensure that development projects
are better targeted, more accountable, and ultimately more
effective in achieving their intended goals.
• In addition to the benefits and challenges of RBM, it is
important to consider the practical steps involved in
implementing this approach. One key step is to define clear
and specific outcomes that can be measured and tracked
over time. This involves setting realistic and achievable
goals, and developing indicators that can be used to assess
progress towards these goals.
• Another important step is to establish a robust monitoring
and evaluation system, which can include regular data
collection, analysis, and reporting. This requires investment
in the necessary human and technical resources, such as
trained staff and data management systems, as well as
regular review and reflection on the results of monitoring
and evaluation activities.
• Effective communication and collaboration are also critical
to the success of RBM. This involves engaging stakeholders
at all levels, from project beneficiaries to donors and
policymakers, in the monitoring and evaluation process,
and using the results of these activities to inform decision-
making and programmatic improvements.
• Finally, RBM requires a strong commitment to learning and
adaptation, as project managers must be willing to adjust
their strategies and approaches in response to changing
circumstances and evolving results. This involves creating a
culture of continuous improvement, where project
managers are encouraged to reflect on their results, share
their experiences with others, and incorporate feedback
into their decision-making processes.
• In conclusion, RBM offers a promising approach to
monitoring projects that focuses on achieving specific
outcomes and promoting greater accountability and
effectiveness. While there are challenges to its
implementation, the benefits of RBM are clear, and
many organizations and governments are adopting this
approach as a way of improving their development
programming. By focusing on results and promoting a
culture of learning and adaptation, RBM can help to
ensure that development projects are better targeted,
more accountable, and ultimately more effective in
achieving their intended goals.
 INPUTS
• Any programme, policy or service requires
resources of some kind. We call these
resources inputs.
• For example: to put together this course, it took
me time to record this video; you need an internet
connection and a computer to watch it.
• Typically, inputs refer to money, staff time,
materials and equipment, transport costs,
infrastructure, etc.
 ACTIVITY
• These inputs are required to carry out a number
of activities.
• For example: you watch videos of this lesson; you do a
quiz; you do some additional reading; you watch the
next videos; etc.
• So: Activities are actions taken that use inputs to
produce higher-level results – ‘outputs.’
• Typical activities in governance and development are
the drafting of a policy document for a ministry, the
organization of a media outreach campaign, the
training of midwives in a new approach, etc.
 OUTPUT
• At the next level, outputs are typically the result of several completed activities.
• For example: after reading this blog post, you have the knowledge to critically
review and design your own results chain.
• In development and governance, an output is delivered if a group of people or an
organization has improved capacities, abilities, skills, systems, or policies or if
something is created, built or repaired.
• Outputs are the direct result of a set of activities delivered during the
implementation of a programme, a policy or a service. Outputs are different from
the next level of results – outcomes – because you largely have control over
delivering outputs.
• That means that if we – and our partners – have the resources and the time to
deliver a certain output, we can largely guarantee that the output will be
delivered.
• That also means, that in turn, we are fully responsible for delivering an output.
• Typical outputs are a draft policy document for a ministry, a media outreach
campaign, improved skills for, etc.
 OUTCOME
• Now, this is very different from the next level of results: An
outcome is something we hope to achieve as a result of what we
do.
• In development and governance, an outcome implies
that institutions or people do
• a) something different (behavioural change) or
• b) something better (change in performance)
• The difference between an outcome is that – unlike outputs which
we largely control – we can only influence the achievement of an
outcome, but it ultimately goes beyond our control.
• Typical outcomes are a parliament passing a new law, people
changing their behaviour because of a media campaign, midwifes
that apply new skills in their daily routine, etc.
• Outcomes are typically achieved at the end or even after a
programme, policy or service has been implemented.
 IMPACT
• Finally, outcomes should contribute to a broader impact.
• An impact is the long-term effect of programmes, policies
or services. It implies a detectable improvement in
people’s lives.
• Impact typically relates to positive economic, social,
cultural, institutional, environmental,
technologicalchanges in the lives of a targeted population.
An impact is often related to broad national goals
or international aspirations like the Sustainable
Development Goals. Impact is typically much broader than
a programme, policy or service. And: an impact is typically
detectable only after a few months or even years.
 What about Results?
• We usually define ‘results’ – in the context of
governance and development – as the top
three elements of the result chain: outputs,
outcomes and impact. And most importantly,
results are not inputs or activities.
The Cycle of Results Based Project
Management
Planning for Results Managing for Results
• Implementing
• RBPM Planning • Budget Management
• Problem Analysis • Stakeholder Management
• Logical Framework • Information Management
• Risk Management
• Results Matrix
• Monitoring and Evaluating
• Performance Measurement
Framework
• Monitoring Process
• Monitoring Indicators
• Risks and Assumptions
• Evaluation
Reporting for Results
• Writing Reports
• Communicating
• Management Reports
• Learning from Results
– Learning Organization
– Adapting the Project
– Continuous Improvements
– Knowledge Management
 Project Coordination,
Implementation and Management
 What is Project Coordination?
• Project coordination refers to daily tasks that keep the
project on the right track. It includes organizing and
managing the workflow and helps projects develop as
planned.
• In addition, a project coordinator’s job is to make sure
that all team members have everything they need to
complete their tasks within the deadline.
• They are also responsible for identifying potential
issues that could interfere with the project schedule.
• Since their duty is to steer the project towards its
completion, they need to be familiar with all aspects of
the project.
Project Coordination Vs Project
Management

Project management Project coordination

Planning a project Monitoring project

execution

Defining project Coordinating work

development cycle during all phases of the
(from initiation to cycle
completion)

Setting project goals Monitoring daily tasks

 The actors of a project team:
organization, role and skills
• A project is an action or a set of actions that we plan in the
more or less near future to create something new or
improve something that already exists. In the professional
world in general – and information systems in particular –
the very notion of project implies collaborative teamwork.
The members of this team are called actors or resources. If
each project is unique, the actors can change.
• However, the same unchanging and indispensable
functions are still present to carry out the task. A project
team inevitably includes a project manager, a sponsor, a
PMO (Project Management Office) and a steering
committee. Let’s now see how a project team is organized
and what are the roles of its actors, as well as their skills.
 The project manager
• The project manager is responsible for the project
team in charge of the preparation, implementation and
completion of the project. In the course of its missions,
it must call upon the skills likely to ensure its success.
He or she must also lead the group and synthesize the
synergies between all the players. He has an important
role as a communicator, particularly in creating a team
spirit that keeps everyone involved. He is often
supported by a functional manager and a technical
manager, but sometimes, depending on the size of the
project, he can be the only member of the project
team.
 The functional manager
• The functional manager is responsible for supporting
the client in its modernization and technological
development process. It carries out the global
operations necessary for the preliminary study, the
implementation and the realization of the project. He
is the guarantor of the functional quality. His/her
duties concern the proper functioning of the solution
that the project will create in relation to the needs
defined by the client. Like the project manager and the
project team as a whole, he or she must respect the
imperatives of quality, performance, deadlines and
budget.
 The technical manager
• The role of the technical manager is to
manage the production and technical aspects
of the project. It gives its approval on the
feasibility of the project from a technical point
of view and on the best way to carry it out by
defining each step. He analyzes the needs,
organizes and implements the development of
the product. He is the guarantor of the
technical quality.
 The sponsor
• This is a referent who represents the client, but sometimes the sponsor
can also be found on the project team side. Very often, he has an
important hierarchical position in the company of the latter. His role is to
act as a link between the project team and his company. Any information
on the progress of the project must be communicated to him. It gives its
opinion and agreement on the continuation of the actions. The sponsor is
an essential guide to ensure that the project is in line with the client’s
expectations and to direct the actions. It is a pivotal element of the
project. This is why it must be mobilized from the outset and regularly
solicited to maintain the link and ensure that expectations and
achievements are perfectly matched. This employee must occupy a strong
hierarchical position (general manager, member of the management
committee or executive committee for example). A lower level manager
may not be fully endorsed by his or her hierarchy and may slow down the
project. It is necessary that the sponsor is experienced and has a strong
impact on the company. He must have a perfect command of the strategy
to be followed.
 The PMO (Project Management
Office)
• The Project Management Office (PMO) is a service,
department or individual that defines the project
management processes. It brings together a set of
procedures, methods and tools to enable the steering of
the mission and the management of risks. Using the PMO
allows you to obtain a status report at any time during the
project and to anticipate any necessary changes. The PMO
oversees the governance and tools needed to plan, create,
evaluate and adjudicate projects. He/she has a cross-
functional role because he/she can link several projects and
make the most of the skills of the players in the various
project teams. Still essential in communication, it avoids
the isolation of resources.
 The steering committee
• This is a group of managers who are responsible for ensuring that a project runs
smoothly within a company. For example, the human resources manager, the
project manager, etc. They arbitrate strategies and make decisions to bring the
project to fruition.
• The steering committee has a fundamental role in the start-up of the project, as
well as at its closure. It also validates each strategic point of the project’s progress.
It ensures that operations are in line with the objectives set at the outset. He/she
supervises the smooth running of the project, communicates about the project,
the preparatory work and the feedback. It sets key dates for project progress and
identifies investment needs. As such, it can allocate additional resources.
• The steering committee is called upon to:
– designate the project manager, and validate the project team,
– cost the means, establish a schedule of major steps with their deadlines,
– validate these steps and give the green light to move on to the next,
– Ensure that the project team meets the objectives,
– arbitrate on points that require it.
• To develop its full potential, the steering committee must have real decision-
making power regarding the resources deployed, the deadlines set, and the
choices made for the action plans.
 Work -break down structure
• The work breakdown structure, as its name
suggests, represents a systematic and logical
breakdown of the project into its component
parts.
• It is constructed by dividing the project into its
major parts, with each of these being further
divided into sub parts.
• This is continued till a breakdown is done in
terms of manageable units of work for which
responsibility can be defined.
• Thus the work breakdown structure helps in:
 Work -break down structure
i. Effective planning: by dividing the work into
manageable elements, which can be planned,
budgeted and controlled.
ii. Assignment of responsibility for work elements
to project personnel and outside agencies.
iii. Development of control and information
system.
 Project Outputs and Activities
• Outputs
• These are the first level of results associated with a project. Often
confused with “activities”, outputs are the direct immediate term results
associated with a project.
• In other words, they are the delivered scope. The tangible and intangible
products that result from project activities. Outputs may include a new
product or service, a new ERP system replacing the old one, or employees
being trained as part of a digital upskilling initiative.
• Success on this first level of results is what I call “Project Delivery Success”.
It is about defining the criteria by which the process of delivering the
project is successful.
• Essentially this addresses the classic triangle "scope, time, budget".
• It is limited to the duration of the project and success can be measured as
soon as the project is officially completed (with intermediary measures
being taken of course as part of project control processes). It is always a
combination of measurements on inputs and outputs.
• Activities
• Activities on the other hand are actions
associated with delivering project goals. In other
words, they are what your people do in order to
achieve the aims of the project.
• In a software development project, for example,
activities would include things such as designing,
building, testing, deploying, etc. And in an
upskilling initiative the training of employees
would be an activity.
 Pre-requisites for successful project
implementation
• Time and cost over-runs a project are very
common in Ethiopia, particularly in the public
sectors.
• Due to such time and cost over-runs:
projects tend to become uneconomical,
resources are not available to support other
projects and
economic developments are adversely affected.
 Pre-requisites for successful project
implementation
• What can be done to minimize time and cost
over-runs and thereby improve the prospects of
the successful completion of projects?
• While a lot of things can be done to achieve this
goal, the most important ones appear to be as
follows.
Adequate formulation.
Sound project organization
Proper implementation planning.
Advance action
 Pre-requisites for successful project
implementation
Timely availability of funds.
Judicious equipment tendering and procurement.
Better contract management.
Effective monitoring.
• Adequate formulation
• Often project formulation is defiant because of
one or more of the following shortcomings:
Superficial field investigation
Cursory assessment of input requirements
 Adequate formulation
Slip-shod method used for estimating costs and
benefits.
Omission of project linkages
Flawed judgments because of lack of experience
and expertise
Undue hurry to get started
Deliberate over-estimation of benefits and
under-estimation of costs.
• Care must be taken to avoid the above
deficiencies so that the appraisal and
formulation of the project is through, adequate
and meaningful.
 Sound Project Organization
• A sound organization for implementation of the
projects is critical to its success.
• The characteristics of such an organization are:
It is led by a competent leader
The authority of the project leads and his team is
commensurate with their responsibility
Adequate attention is paid to the human being
in the project
System and method are clearly defined
Rewards and penalties to individuals are related
to performance.
 Proper implementation Planning
• Once the investment decision is taken-and often
even while the formulation and appraisal are
being done, it is necessary to do detailed
implementation planning before commencing
the actual implementation.
• Such planning should, inter alia, seek to:
Develop a comprehensive time plan for various
activities like land acquisition, tender evaluation,
recruitment of personnel, construction of
buildings, erection of plant, arrangement for
utilities, trial production run, etc.
 Proper implementation Planning
Estimate meticulously the resource
requirements (manpower, materials, money,
etc.) for each period to realize the time plan.
Define properly inter-linkages between various
activities of the project.
Specify cost standards
• Advance Action
• When the project appears prima facie to be
viable and desirable, advance action on the
following activities may be initiated:
 Advance Action
i. Acquisition of land
ii. Securing essential clearance
iii. Identifying technical collaborators/consultants,
iv. Arranging infrastructure facilities ,
v. Preliminary design of engineering, and
vi. Calling of tenders.
• To initiate advance action with respect to the
above activities, some investment is required.
•
 Advance Action
• Clearly, if the project is not finally approved, this
investment would represent an in fructuous
outlay
• However, the substantial savings (in time and
cost) that are expected to occur, should the
project be approved (a very likely event, given
the prima facie desirability of the project) often
amply justify the incurrence of such costs.
 Timely availability of fund
• Once a project is approved adequate funds must
be made available to meet its requirements as
per the plan of implementation.
• it would be highly desirable if funds are provided
even before the final approval to initiate advance
action.
• It is a common observation that firms which
have a comfortable liquidity position are, in
general, able to implement projects
expeditiously and economically.
 Timely availability of fund
• Such firms can:
 initiate advance action vigorously,
 negotiate with suppliers and contractors
aggressively,
 organize impute supplies quickly,
 take advantages of opportunities to effect
economies,
 support suppliers in resolving their problems so that
they can in turn redound to the successful
completion of projects, and
 sustain the morale of project-related personnel at a
high level.
 Judicious equipment tendering and
procurement
• To minimize time over-runs, it may appear that a
turnkey contract has obvious advantages.
• Since these contracts are likely to be bagged by
foreign suppliers, when global tenders are
floated, a very important question arises.
• How much should we rely on foreign suppliers
and how much we depend on indigenous
suppliers?
 Judicious equipment tendering and
procurement
• Over-dependence on foreign suppliers, even
though seemingly advantageous from the point
of view of time and cost, may mean considerable
outflow of foreign exchange and inadequate
incentive for the development of indigenous
technology and capability.
• Over-reliance on indigenous suppliers may mean
delays and higher uncertainty about the technical
performance of the project.
 Judicious equipment tendering and
procurement
• A judicious balance must be sought which
moderates the outflow of foreign exchange and
provides reasonable fillip to the development of
indigenous technology.
• In many case, the number of contract packages
should be kept to a minimum in order to ensure
effective coordination.
 Better contact Management
• Since a substantial portion of a project is typically
executed through contracts, the proper
management of contracts is crucial to the
successful implementation of the project.
• In this context, the following should be done:
The competence and capability of all contracts
must be ensured
• one weak link can jeopardize the timely
performance of the contract.
 Better contact Management
Proper discipline must be inculcated among
contractors and suppliers by insisting that they
should develop realistic and detailed resource
and time plans which are congruent with the
project plan.
Penalties must be imposed for failure to meet
contractual obligations.
• Likewise, incentives may be offered for good
performance.
 Better contact Management
Help should be extended to contractors and
suppliers when they have genuine problems.
• they should be regarded as partners in a
common pursuit.
Project authorities must retain latitude to off-
load contracts (partially or wholly) to other
parties well in time where delays are anticipated.
 Effective monitoring
• In order to keep a tab on the progress of the
project, a system of monitoring must be
established. This helps in:
Anticipating deviations from the implementation
plan.
Analysing emerging problems.
Taking corrective action
• In developing a system of monitoring, the
following points must be borne in mind:
It should focus sharply on the critical aspects of
project implementation.
 Effective monitoring
It must lay more emphasis on physical milestones
and not on financial targets.
It must be kept relatively simple.
• If made over-complicated, it may lead to
redundant paper work and diversion of
resources.
• Even worse, monitoring may be viewed as an end
in itself rather than as a means to implement the
project successfully.
Network Techniques for Project
Planning and Implementation
 Project

• “A project is a series of activities directed to

accomplishment of a desired objective.”

Plan your work first…..then work your plan

Network analysis
Introduction

Network analysis is the general name given to certain specific

techniques which can be used for the planning, management and
control of projects.
One definition of a project:
“A project is a temporary endeavour undertaken to create a "unique" product
or service”
 • Developed in 1950’s
• CPM by DuPont for chemical plants
History • PERT by U.S. Navy for Polaris missile

CPM was developed by Du Pont and the emphasis was on the

trade-off between the cost of the project and its overall
completion time (e.g. for certain activities it may be possible
to decrease their completion times by spending more money -
how does this affect the overall completion time of the
project?)

PERT was developed by the US Navy for the planning and control of
the Polaris missile program and the emphasis was on completing the
program in the shortest possible time. In addition PERT had the
ability to cope with uncertain activity completion times (e.g. for a
particular activity the most likely completion time is 4 weeks but it
could be anywhere between 3 weeks and 8 weeks).
 CPM - Critical Path Method

• Definition: In CPM activities are shown as a network of precedence

relationships using activity-on-node network construction
– Single estimate of activity time
– Deterministic activity times

USED IN : Production management - for the jobs of repetitive in

nature where the activity time estimates can be predicted with
considerable certainty due to the existence of past experience.
 PERT -
Project Evaluation & Review Techniques
• Definition: In PERT activities are shown as a network of precedence
relationships using activity-on-arrow network construction
– Multiple time estimates
– Probabilistic activity times

USED IN : Project management - for non-repetitive jobs (research and

development work), where the time and cost estimates tend to be
quite uncertain. This technique uses probabilistic time estimates.
 Gantt chart

Originated by H.L.Gantt in 1918

Advantages Limitations
- Gantt charts are quite commonly used. - Do not clearly indicate details regarding
They provide an easy graphical the progress of activities
representation of when activities (might)
take place. - Do not give a clear indication of
interrelation ship between the separate
activities
 CPM/PERT

These deficiencies can be eliminated to a large extent by showing the

interdependence of various activities by means of connecting arrows
called network technique.

• Overtime CPM and PERT became one technique

• ADVANTAGES:
– Precedence relationships
– large projects
– more efficient
 The Project Network

• Use of nodes and arrows

Arrows  An arrow leads from tail to head directionally

– Indicate ACTIVITY, a time consuming effort that is required to perform a part
of the work.

Nodes  A node is represented by a circle

- Indicate EVENT, a point in time where one or more activities start and/or
finish.
 Activity on Node & Activity on Arrow

Activity on Node Activity on Arrow

- A completion of an activity is - An arrow represents a task,

represented by a node while a node is the completion
of a task
- Arrows represent order of events
 Activity Slack

Each event has two important times associated with it :

- Earliest time , Te , which is a calendar time when a event can occur when all
the predecessor events completed at the earliest possible times
- Latest time , TL , which is the latest time the event can occur with out
delaying the subsequent events and completion of project.

• Difference between the latest time and the earliest time of an event is the
slack time for that event

Positive slack : Slack is the amount of time an event can be delayed without
delaying the project completion
 Critical Path

• Is that the sequence of activities and events where there is no “slack” i.e..
Zero slack

• Longest path through a network

• minimum project completion time
 Benefits of CPM/PERT

• Useful at many stages of project management

• Mathematically simple
• Give critical path and slack time
• Provide project documentation
• Useful in monitoring costs
 Questions Answered by CPM & PERT

• Completion date?
• On Schedule?
• Within Budget?
• Critical Activities?
• How can the project be finished early at the least cost?
 example
Illustration of network analysis of a minor redesign of a product and
its associated packaging.

The key question is: How long will it take to complete this project ?
For clarity, this list is kept to a minimum by specifying only
immediate relationships, that is relationships involving activities
that "occur near to each other in time".
 Before starting any of the above activity, the questions
asked would be

•"What activities must be finished before this activity can start"

•could we complete this project in 30 weeks?

•could we complete this project in 2 weeks?

One answer could be, if we first do activity 1, then activity 2, then activity 3,
...., then activity 10, then activity 11 and the project would then take the sum
of the activity completion times, 30 weeks.

“What is the minimum possible time in which we can complete this project ? “
We shall see below how the network analysis diagram/picture we construct
helps us to answer this question.
CRITICAL PATH TAKES 24 WEEKS FOR THE COMPLETION OF THE PROJECT
Packages are available to determine the shortest path and
other relevant information.
Data entry window
Output of the package
 Limitations to CPM/PERT

• Clearly defined, independent and stable activities

• Specified precedence relationships
• Over emphasis on critical paths