Diploma in Management & Leadership Level 5 Week- 2 Principles of project management By Anjum Sattar 8-Oct-15 Water Only 1

Aims and Objectives. Aim (s) Introduction to the range of standard approaches used to manage projects the use of Bodies of Knowledge in project design and management how to select and tune project methodologies and life cycles for a specific project Objective(s ) Learner will be able to….  Describe different approach used to manage the project use different project management approaches and methodologies. 8-Oct-15 2

Background Knowledge What do we know about Project Management 8-Oct-15 3

Why do you need a business case? An organisation often has to make a choice between several different projects, only one of which it can afford to fund. These projects may involve doing: completely different things, or the same thing, in different ways. One way to choose between projects is to work out a list of criteria of things that are important and then to rank each project against these criteria. This is much the same procedure that you would go through yourself when making any significant purchase.. 8-Oct-15 4

Activity1 8-Oct-15 5

Activity Your criteria might have included any of these: cost, maintenance costs, number of bedrooms, garden, location, age, state of repair, proximity to schools, shops or public transport. Cost would almost certainly have been an important factor in your decision, but there may have been other criteria that had equal importance. For example: For me, it was absolutely essential to have a house that was near public transport and I was prepared to pay slightly over the odds for that. The same kind of consideration can influence the choice of project. 8-Oct-15 6

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Making the decision to start the project 8-Oct-15 9 There is more than one way to decide to start a project.The project sponsors — the people who have the authority to set the project in motion and who are paying the bills — may decide what needs to be done, then pass the project on to a manager who will carry out their wishes. The managing director called me in and told me he’d got £5000 to spend on improving the IT system in the office. He gave me a catalogue in which he’d marked the type of software to go for — and could I please make sure that all the invoices were in before the end of the current accounting period.

Project decision making 8-Oct In this case, the project manager has hardly any autonomy at all. If the managing director has made the right decisions, everything may be all right. But there might be better ways to spend the £5000. Or it may be that more (or less) is needed to improve the IT system at this point. It may be that the project should be put off for six months until a new software package comes on the market. Alternatively, the project manager may have an idea for a project and persuades the sponsors to come up with the necessary resources, as illustrated in the example below. I knew we needed to improve the IT system. I worked out where the problems were with the existing system, what we needed to put them right, the benefits that would result and how much it would all cost. I took the figures to the managing director and got his backing for the project.

Flow chat 8-Oct-15 11

PERT / Network diagram Sebastian Nokes and Ian Major (2003) said ‘A Network diagram is a graphical representation of project structure. Project Evaluation and Review Technique (PERT) is a planning method that uses network diagrams and project managers commonly use the terms PERT chart and network diagram interchangeably. A network diagram contains the same task dependency information as a Gantt chart makes it more useful for communicating individual task timing and so project plans for general discussion are usually presented in Gantt chart format. Nonetheless, network diagrams are useful for project planners because it is much easier to see project structure (dependencies and groupings of tasks) on a network diagram. Most project planning software can represent the information in both ways and you should use whichever representation suits the task in hand.’ 8-Oct-15 12

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Gantt charts 8-Oct-158-Oct-158-Oct-15 14

WBS Sebastian Nokes (2003) said ‘ A work breakdown structure is the easiest place to start with project planning. It is an enhanced list of all the activities of all the activities of the project. The enhancements explain how the project is broken down into tasks, groups of associated tasks and sub-projects, and they also give some information about effort or duration. 8-Oct-158-Oct-158-Oct-15 15

WBS 8-Oct-158-Oct-158-Oct-15 16

Useful resource to enhance understanding in project appraisal    CMI Unit 5004 book  Youtube.com  Wikispaces.com / bradrc   ACCA F9 book of Kaplan, BPP 8-Oct-15 17

Bibliography Baguley Phil (1999) Project Management, first edition, Page 10, 47 Barbara Allan (2004) Project Management first edition page 9, 48, 49 published by Facet Publishing. Howard Barnett (1996) Operations management second edition, page 18, Published by Macmillan Press Ltd Koontz Harold and Heinz Weihrich (1990) Essentials of Management fifth edition page 392,46,47,5 Published by McGraw-Hill, Inc. 8-Oct-15 18

8-Oct-15 Assignment discussion Summary. Q & A 19

Next Session. In Next Session we are going to Learn …… Project methodologies Tuesday 01/02/2012 9:30 – 12:30 20