1. Manage Projects
BSBPMG510A

2. Introduction This manual comes in 5 sections: Define project
Develop project plan
Administer and monitor project
Finalise project
Review project

3. Define Project
Part 1

4. The Essentials of Project Management
Project management is simply doing the right thing at the right time
You need to be able to manage resources that you have and use them in such a way that you can complete the project in line with the goals you initially set for the project

5. The Essentials of Project Management
Project manager needs a good level of managerial skills:
Lead teams
Negotiate with stakeholders
Organise, make and implement plans
Solve issues that arise
Analyse and review a project

6. The Essentials of Project Management
Managerial principle of PLOC
P - Plan
L - Lead
O - Organize
C - Control

7. The Essentials of Project Management
Plan – establish an overall plan and goals
Lead – project team towards the objectives and goals
Organise – resources and initiate project activities
Control – track and monitor the progress against the plan

8. The Project Management Process
1. Initiate
2. Plan
3. Organise
4. Control
5. Close

9. Initiate Project Initiate project involves: Identify the overall goal
List the objectives of the project
Identify those individuals who are involved (known as stakeholders
Identify any constraints, assumptions and risks
Summarize the information in a ‘Project Scope’

10. Project Scope Document
Project scope document outlines the extent of the project
What does it cover
What will you undertake
What you hope to achieve

11. Project Scope Document
Project scope document includes: (page 11)
Scope statement
Constraints
Assumptions
List of tasks
Estimates
Statement of contract

12. Project Scope Document
The project scope document should be developed in the initial stages of your project
The project scope document should be used actively during the entire running of the project to ensure that a project is meeting its objectives and that the tasks being conducted are run according to the scope document

13. Project Scope Document
The project scope document should also outline stakeholders, reporting requirements, and the limits of responsibility
It is important that you determine how your project is linked to others around you, especially when some parts of the project may impact on delivery of other projects

14. Team Responsibilities
A project manager needs to identify the limits of each project team member’s responsibility
This is the scope of their responsibility
If you do not clearly state this, members of your team may either go off and make changes which they are not authorized to do, or conversely, take less responsibility than needed for the success of the project

15. Project Resources
When you are beginning with a new project, it is important that you identify the availability of your resources – what you will need to actually achieve the goals of the project
If the resources are not going to be available at the time you need them, then it is time to examine whether it is an appropriate time to undertake the work

16. Project Management Software
There is project management software available to help with planning of projects and to produce project scope documents (page 11)
Project KickStart 3.2
MindManager
Microsoft Project

17. Develop Project Plan
Part 2

18. Develop a Project Plan We will now examine the actual planning needed
At this stage, you will:
Develop a task list
Estimate time taken
Sequence these tasks
Develop schedules and milestones
Develop a written project plan

19. Develop a Project Plan Project plan should include: Task breakdowns
Roles and responsibilities
Timelines
Budget

20. Develop a Project Plan
It is important that you use the scoping documents as the basis of your plan
The scope document outlines exactly what is required to be undertaken in your project – and can be easily used to create activity lists and assess what you need to be able to deliver

21. Prioritize and Schedule Tasks
One of the most important aspects of developing a project plan is prioritizing and scheduling of tasks
This schedule will list each task, in step-by-step order – as well as briefly indicate:
What you need to do
Who is to do it and
How long it will take

22. Prioritize and Schedule Tasks
To be effective at scheduling, be aware of:
What tasks are necessary
What does each task involve and how is it done
In what order should the tasks be performed
What resources are needed
What is the deadline for each task
How you will know when each task is done
What factors may influence the completion

23. What do you think those reasons are?
Estimating Time
Accurate time estimation is a skill essential to good project management
It is important to get time estimates right for 2 main reasons
What do you think those reasons are?

24. Estimating Time
It is important to get time estimates right for TWO main reasons:
Time estimates drive the setting of deadlines for delivery of projects, and hence people’s assessment of your reliability
They often determine the pricing of contracts and hence their profitability

25. Estimating Time
Usually people vastly underestimate the amount of time needed to implement projects
People often simply fail to allow for the full complexity involved with a job
You can only start to estimate time accurately when you have a detailed list of all tasks that you must achieve

26. Estimating Time Make sure you allow time for:
Accidents and emergencies
Meetings
Holidays and sickness of key/essential employees
Contact with other customers
Breakdowns in equipment
Missed deliveries by suppliers
Interruptions
Quality control rejections
Other high urgency tasks that may have priority

27. Sequencing the Project Tasks
The simplest way of doing this is to create a to do list – listing each item in order
Use either a Gantt Chart or Critical Path Method as an effective way of scheduling
Once we know what needs to be done (work breakdown), we need to add:
Milestones
Timings
Schedule for each item

28. Project Management Tools
Work breakdown structures
Gant chart
Critical path analysis
The Project evaluation and review technique (PERT) charts

29. Project Management Tools
The Work Breakdown Structure (WBS) captures all the work of a project in an organized way
It can be:
Portrayed graphically as a hierarchical tree
A tabular list (example page 18)

30. Project Management Tools
Gantt Chart illustrates a project schedule
Helps us to monitor the progress of the project
It compares the actual progress of your project with your plan

31. Project Management Tools
Critical path analysis is another tool for scheduling project activities
The basic model includes:
A list of all activities required to complete the project
The time (duration) that each activity will take to completion
The dependencies between the activities

32. Project Management Tools
The Program Evaluation and Review Technique (PERT) Charts analyze and represent:
The tasks involved in completing a given project
The time needed to complete each task
Minimum time needed to complete the total project
PERT charts simplify the planning and scheduling of large and complex projects

33. Risk Management Risk is inevitable consequence of doing business
‘The greater the risk, the higher the return’
Managing risk is vital in project management
All project plans must include a risk management plan
Risk management plan outlines the risks, their impact and what is proposed to be done about them

34. Risk Management Procedure
Risk management steps:
Identify the risk
Quantify the risk
Respond to the risk
Monitor and control the risk

35. Risk Management Procedure
Identify the risks you might face in your project
Brainstorming sessions with a project team
Quantify the risk
Assess the probability of the risk occurring and the impact on the project if the risk does occur

36. Risk Management Procedure
Respond to the risk
Acceptance
Avoidance
Transference
Mitigation
Monitor and control the risk
Risks needs to be monitored by those who are closest to the work being performed
They are the best to see the problems develop
They need to monitor and report on all identified risks

37. Responses to Risk
Acceptance: if the chance occurring is minimal or severity is very low
Avoidance: preferred way is to eliminate the risk completely, or substitute them
Transference: transferring the risk to others in the project (e.g. make subcontractors responsible for the risk); might push the costs up significantly
Mitigation: small actions to reduce the chance of the risk happening or the severity should it happen (e.g. training)

38. Budgeting Money is not an unlimited resource
It is crucial to have a financial plan in place for your project to ensure it does not exceed your limits on finances
An important aspect of this financial and cost management is to ensure that your scoping document is as accurate as you can possibly make it

39. Budgeting The cost management of any project involves 3 key items:
Resource planning (materials, people, machinery, facilities)
Estimating costs (rough, more detailed, definite)
Budgeting (after you have estimated all the costs, add them up for every task and you will have a final cost estimate for your project; this will be presented for the approval to the project sponsor providing the funds for your project)

40. More of Cost Estimation
Begin by developing a very rough estimate of costs
The next budget estimate should be a closer estimate that falls within about 15% accuracy generated
Finally a definitive estimate needs to be produced (+/- 5% accuracy)

41. Compile Project Plan Document
A final stage in the planning process is to bring everything together into a project plan
Project plan is like a road map; it tells you where we are, where we are going and how we will get there
Design and size is dependant on the scope of the project
It may be a single page for a very small project or a large complex report for large scale projects

42. Project Plan Executive summary (project overview and goal)
Project objectives and deliverables
Project milestones
Project assumptions
Project risks
Project work breakdown structure
Resource details:
Human resources, equipment, materials and supplies, budget, project organization, operating procedures, assessment and review criteria, contracts, project approvals

43. Administer and Monitor Project
Part 3

44. Organizing a Project
Every project needs resources to complete all the tasks
You need to ensure you get the resources needed
Make sure you address:
People
Supplies
Finances
Equipment
Technology
Facilities
Information
Materials

45. Organizing a Project People are the lifeblood of the business
It is crucial to ensure you have adequate staffing:
Sourcing them from inside or outside?
Determine what skills are required
Major part of this responsibility lies in assigning project tasks
You need to find the right people that are the most suited to undertaking certain responsibilities

46. Reporting Do not lead from your office, be on the front line
Lead by an example, be there for everyone and everything:
You will know exactly what is happening
It will make the progress reporting more accurate
Ensure open and continual communication

47. Reporting Different projects require different records to be kept
Some examples of records are:
Project status reports
Injury and accidents reports
Time sheets
Employee records
Financial records
End of project reports

48. Leadership
Leadership is an important concept in the project management
Managing a project and leading it are 2 quite different concepts
You can manage project well, but if you fail as a leader, your project will be also likely to fail

49. Leadership Leadership styles vary according to the situation
Leadership styles are all quite different, and they are not all appropriate at all times
You must be able to adapt your leadership and management style to suit the given situation

50. Leadership Styles
People oriented leader – helps establish a good rapport with the employees and develop a positive working environment
Reward oriented leader – use meaningful rewards to motivate performance
Task oriented leader – concentrating on getting the tasks completed

51. Control
There are many variables that you must manage as a project manager
If you want to be successful, you need to be able to:
Continuously control your project
Monitor the use of resources
Look at how well you are meeting the deadlines
Take corrective action as needed

52. Control
Even if you control your project tightly, there is still room for minor problems to develop
It is important that you quickly adopt problem solving techniques to ensure the problems do not get out of hand
When a problem happens, you need to find the real cause behind it

53. Control If you fail to keep control, this can result in:
Not meeting the specifications
Blowing the budget
Not managing the risks – leading to accidents
Failure to finish on time

54. Record Keeping Record keeping is very important in project management
It’s an important control mechanism
It allows us to ensure that everyone is able to keep up to date with the project’s progress

55. Risk Management
As a part of monitoring and controlling process, as soon as any risk is noticed, immediately try and solve the problem
Look for possible solutions and implement them as soon as possible

56. Finalize Project
Part 4

57. The Close Phase The key activities when closing the project:
Complete final deliverables
Obtain stakeholder acceptance and sign off
Write and issue a final report
Evaluate the project
Release all resources
Hold an end of project meeting – discuss the success of the project and any problems that arose during the project’s life

58. The Close Phase Financial records Pay any outstanding invoices
Complete all payroll – ensure payroll tax is paid and all team members have received their payments
Invoice final payments to the project sponsor or client
Account for any money paid as deposits or from the sale of equipment
Complete final accounting statements
Audit and determine where any problems existed
Carefully store and record all receipts and invoices

59. The Close Phase Documentation
Early in the process list all the required documentation so that you know what exactly is required to finalize the project

60. The Close Phase Reallocating resources
Redeploy/reassign the resources you have taken from other duties to enable you to complete your project
Look at all the resources that you have used or purchased and decide what to do with them

61. The Close Phase Reallocating resources (cont) Physical resources:
Sell, retain for future projects, or simply dispose of them?
What about the materials that were surplus to your needs?
Human resources:
Team members must be reassigned to undertake other tasks (maybe return to their original jobs)
Temporary staff will generally be let go

62. Review Project
Part 4

63. Evaluation
At the end of the project, you need to evaluate the success of your project whether you have met all criteria
Sometimes, it is difficult as the line between the success and failure is very thin
You might have succeeded, ended up where you wanted to go and the company is happy, but you have exceeded your budget
You might have achieved some aspects of your plan, but not others
Success is relative

64. Evaluation Continuous improvement is crucial to business
Determine what you have learnt and how you can apply it on future projects
Look at the problems that arose, make suggestions on how these issues could be prevented, or resolved
Use your plan for evaluation
Use your team members in the review process – they faced issues on a daily basis, so their feedback is vital
Evaluate your team and their performance

65. Writing Your Final Report
In your final report you should address:
What you delivered as compared to what you said you would deliver in the scope document
How well what you delivered met the needs of the client or your organization
The maintenance required to the system
What changes you feel are needed to bring the project in line with the required deliverables

66. Summary
Project management is often a task that is left to project managers who have received specialist training have been certified as a project manager
Smaller projects are given to individuals who may have no prior training in project management
Whether the project is small or large, the basic process is the same:
Initiate
Control
Plan
Close
Organize