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Page 1: Project Execution - Jaipur National Universityjnujprdistance.com/assets/lms/LMS JNU/MBA/MBA - Project... · 2019-07-28 · Project Execution 2/JNU OLE 1.1 Introduction Project management

Project Execution

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This book is a part of the course by Jaipur National University, Jaipur.This book contains the course content for Project Execution..

JNU, JaipurFirst Edition 2013

The content in the book is copyright of JNU. All rights reserved.No part of the content may in any form or by any electronic, mechanical, photocopying, recording, or any other means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior permission of the publisher.

JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the content whenever the need arises, and to vary it at any time without prior notice.

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Index

ContentI. ...................................................................... II

List of FiguresII. ..........................................................IV

List of TablesIII. ............................................................ V

AbbreviationsIV. .........................................................VI

Case StudyV. ................................................................ 81

BibliographyVI. ........................................................... 88

Self Assessment AnswersVII. ..................................... 90

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Project Design Management ....................................................................................................................... 1Aim ............................................................................................................................................................... 1Objectives ...................................................................................................................................................... 1Learning outcome .......................................................................................................................................... 11.1 Introduction .............................................................................................................................................. 21.2 Project Execution ..................................................................................................................................... 21.3 Nature of Design Activity in Projects ...................................................................................................... 31.4 Objectives of Design Management .......................................................................................................... 41.5 Product Design and Process Design ........................................................................................................ 51.6 Nature of Product Design ......................................................................................................................... 61.7 Nature of Process Design ......................................................................................................................... 81.8 Design Management Process ................................................................................................................... 9 1.8.1 Initiating the Execution Process .............................................................................................. 9 1.8.2 Planning Overall Project Processes ......................................................................................... 9 1.8.3 Clarify Overall Scope of Project ............................................................................................ 101.9 Work Breakdown Structure (WBS) ....................................................................................................... 10Summary ..................................................................................................................................................... 14References ................................................................................................................................................... 14Recommended Reading ............................................................................................................................. 14Self Assessment ........................................................................................................................................... 15

Chapter II ................................................................................................................................................... 17Project Scope Management ....................................................................................................................... 17Aim .............................................................................................................................................................. 17Objectives .................................................................................................................................................... 17Learning outcome ........................................................................................................................................ 172.1 Introduction ............................................................................................................................................ 182.2 Scope Definition .................................................................................................................................... 182.3 Scope Verification .................................................................................................................................. 182.4 Scope Control ......................................................................................................................................... 192.5 Scope Change Management ................................................................................................................... 202.6 Scope Creep ........................................................................................................................................... 20Summary ..................................................................................................................................................... 22References ................................................................................................................................................... 22Recommended Reading ............................................................................................................................. 22Self Assessment ........................................................................................................................................... 23

Chapter III .................................................................................................................................................. 25Change Management ................................................................................................................................. 25Aim .............................................................................................................................................................. 25Objectives .................................................................................................................................................... 25Learning outcome ........................................................................................................................................ 253.1 Introduction ............................................................................................................................................ 263.2 What is Change Management? .............................................................................................................. 263.3 Lewin’s 3 step Change Process .............................................................................................................. 27 3.3.1 Unfreezing ............................................................................................................................. 27 3.3.2 Changing or Moving .............................................................................................................. 28 3.3.3 Refreezing .............................................................................................................................. 283.4 Need for Planned Change ...................................................................................................................... 293.5 Resistance to Change ............................................................................................................................. 31Summary ..................................................................................................................................................... 35References ................................................................................................................................................... 35

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Recommended Reading ............................................................................................................................. 35Self Assessment ........................................................................................................................................... 36

Chapter IV .................................................................................................................................................. 38Project Performance Management........................................................................................................... 38Aim .............................................................................................................................................................. 38Objectives .................................................................................................................................................... 38Learning outcome ........................................................................................................................................ 384.1 Introduction ............................................................................................................................................ 394.2 Project Performance Management Process ............................................................................................ 39 4.2.1 Development of Performance Management Methodology .................................................... 40 4.2.2 Components of Project Performance Management ............................................................... 40 4.2.3 Important Aspects .................................................................................................................. 414.3 Designs and Monitoring Framework ..................................................................................................... 42 4.3.1 Project Process Control .......................................................................................................... 44 4.3.2 Earned Value Management .................................................................................................... 454.4 Performance Targets and Indicators ....................................................................................................... 464.5 Project Risks .......................................................................................................................................... 49 4.5.1 Types of Assumptions and Risks ........................................................................................... 49 4.5.2 Project Risk Management ...................................................................................................... 494.6 Project Quality ....................................................................................................................................... 51 4.6.1 Project Quality Management ................................................................................................. 514.7 Six Sigma ............................................................................................................................................... 51Summary ..................................................................................................................................................... 53References ................................................................................................................................................... 53Recommended Reading ............................................................................................................................. 54Self Assessment ........................................................................................................................................... 55

Chapter V .................................................................................................................................................... 57Project Documentation .............................................................................................................................. 57Aim .............................................................................................................................................................. 57Objectives .................................................................................................................................................... 57Learning outcomes ....................................................................................................................................... 575.1 Introduction ............................................................................................................................................ 585.2 Project Documentation ........................................................................................................................... 585.3 Overview of Documentation .................................................................................................................. 585.4 Purpose of Project Documentation ........................................................................................................ 595.5 Levels of Documentation ....................................................................................................................... 605.6 Typical Documents ................................................................................................................................ 60 5.6.1 Classification 1 and 2 ............................................................................................................. 60 5.6.2 Classification 3 ...................................................................................................................... 625.7 Project Archives ..................................................................................................................................... 705.8 Document Preparation and Distribution ................................................................................................ 705.9 Document Control .................................................................................................................................. 71 5.9.1 What is Document Control?................................................................................................... 71 5.9.2 Importance of Document Control .......................................................................................... 71 5.9.3 Document Control Systems ................................................................................................... 72 5.9.4 Project File ............................................................................................................................. 745.10 Documentation Tips from Project Managers ....................................................................................... 75Summary ..................................................................................................................................................... 77References ................................................................................................................................................... 77Recommended Reading ............................................................................................................................. 77Self Assessment ........................................................................................................................................... 79

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List of Figures

Fig. 1.1 Project life cycle ............................................................................................................................... 2Fig. 1.2 Project execution phases ................................................................................................................... 3Fig. 1.3 Triple constraints .............................................................................................................................. 5Fig. 1.4 Work breakdown structure ...............................................................................................................11Fig. 2.1 Scope triangle ................................................................................................................................. 21Fig. 3.1 Lewin’s 3 step change process ....................................................................................................... 27Fig. 3.2 Steps in unfreezing ......................................................................................................................... 28Fig. 3.3 External forces ................................................................................................................................ 29Fig. 3.4 Factors involved in organisational change ..................................................................................... 30Fig. 3.5 Change management process .......................................................................................................... 32Fig. 4.1 Components of project performance management ......................................................................... 40Fig. 4.2 Steps in project process control ...................................................................................................... 44Fig. 4.3 Risk management process .............................................................................................................. 50

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List of Tables

Table 4.1 Design and monitoring framework .............................................................................................. 42Table 4.2 Performance targets/ indicators (DFM) ....................................................................................... 47Table 5.1 Small project documents ............................................................................................................. 61Table 5.2 Medium project documents ......................................................................................................... 61Table 5.3 Large project documents ............................................................................................................. 62Table 5.4 Example of distribution list .......................................................................................................... 73Table 5.5 Build status ................................................................................................................................... 74

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Abbreviations

BCWP - Budgeted Cost of the Work PerformedDMF - Designs and Monitoring FrameworkDOD - Department Of DefenceEV - Earned ValueEVM - Earned Value ManagementPID - Project Initiation DocumentRAD - Rapid Application DevelopmentWBS - Work Breakdown Structure

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Chapter I

Project Design Management

Aim

The aim of this chapter is to:

explain the meaning of project management •

introduce the concept of project life cycle•

explain the project execution phases•

illustrate the triple constraints in any project•

Objectives

The objectives of this chapter are to:

demonstrate the work breakdown structure•

guide students in design management process•

enlist the purpose of WBS•

view the project life cycle•

Learning outcome

At the end of this chapter, the students will be able to:

know how to prepare WBS•

recognise the triple constraints•

examine the design management process•

identify the nature of product design and process design•

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1.1 IntroductionProject management is the discipline of organising and managing resources in such a way that these resources deliver alltheworkrequiredtocompleteaprojectwithindefinedscope,time,andcostconstraints.

Aprojectisatemporaryendeavourundertakentoaccomplishauniqueproductorservicewithadefinedstartandendpointandspecificobjectivesthat,whenattained,signifycompletion.

The project life cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives.

Fig. 1.1 Project life cycle(Source: http://www.onestopsap.com/sap-net%5Clife%20cycle/projectLCM.asp)

Project management life cycle has four phases:Initiation: Initiation involves starting up the project, by documenting a business case, feasibility study, terms of •reference,appointingtheteamandsettingupaprojectofficePlanning: Planning involves setting out the roadmap for the project by creating the following plans: project •plan,resourceplan,financialplan,qualityplan,acceptanceplanandcommunicationsplan.Execution: Execution involves building the deliverables and controlling the project delivery, scope, costs, •quality, risks and issues.Closure: Closure involves winding-down the project by releasing staff, handing over deliverables to the customer •and completing a post implementation review.

1.2 Project ExecutionThe project execution phase is the third phase in the project life cycle. In this phase, you will build the physical project deliverables and present them to your customer for signoff. The project execution phase is usually the longest phase in the project life cycle and it typically consumes the most energy and the most resources.Itinvolvesmanystepsthatareshowninthefig.1.2.

Project Initiation

Project Review

Monitoring & Control

Detailed Planning

Project Definition

Project Execution

Project PlanningPr

ojec

t C

losu

re

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Fig. 1.2 Project execution phases

1.3 Nature of Design Activity in ProjectsProject design is concerned with translation of project requirements, as contained in Project Initiation Document •(PID),intodetaileddescriptionsandspecificationsrequiredforguidingtheworkofcreatingproductsforwhichproject was initiated.

The design work can start when the project initiation phase is completed with authorization of the project. Design •workconstitutesthefirstsub-phasewithinexecutionphase,wherewedesignthesolutiontomatchtheuserrequirements forming the basis of project authorization. Creation of the actual solution is the second sub-phase called “Build and Test Phase”, followed by the third and last sub-phase called “Implement Phase”.

Itwouldbeidealiftheprojectdesignworkcanbecompletedandfinalised,indetailcoveringeachandevery•aspect of the project, before the start of build and test phase. In real world, this is not possible except for small projects. Usually design work is completed in multiple sequential steps with progressive elaboration of design details.

Frequently, this progressive design approach is essential in line with technical design procedures applicable •tospecifictechnologicalcategoriesorapplicationareasoftheproducttobedesignedandbuilt.Forexample,while designing a building using RCC structure, the overall layout, elevations, and other dimensions of the buildingmustbefinalisedbeforedesignofindividualRCCstructureelementssuchascolumns,beamsandslabs can start.

Taking another example, a 2000 MW thermal power plant running on coal would typically be set up using •multiple vendors for supplying and erecting different equipment packages such as a boiler, turbo-generators, coal handling plant, ash handling plant, circulating water system, and instrumentation and control systems. The detailed design of these sub systems of the project systems would typically be done by the respective vendor. But, before vendors are awarded the contract and they start the detailed design work, some overall design would have to be done so that prospective vendors can be invited to give their proposal for detailed design, supply and erection of the equipments.

The approach of stage-wise design where design and some build and test work is done in parallel is called •concurrent engineering by some authors. Concurrent engineering also facilitates use of data generated by some

● ProjectDesign1

● ChangeManagement3

● ProjectScopeManagement2

● ManagingProjectPerformance4

● Documentation5

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of the build and test activities to be fed back to improve the design.

To see how concurrent engineering helps in speeding up a project and in improving quality of design, let us •look at the following example.

Example:A building construction project that includes purchase of land for the building, may adopt the following sequence of activities:

Finalise the layout of the building in detail. �Finalisethelandspecificationtosuitthebuildinglayout.Thiswillincludedetailslikeminimumrequired �width and length of the plot, and the orientation of plot with respect to the approach road.Purchaselandconformingtothespecification. �

Inthisapproach,choiceofthelandforpurchasewillbelimitedbymorerestrictivespecificationofthelandwhichwillbenecessaryinviewofthebuildinglayoutalreadyfinalised.Alsolandpurchaseactivitycannotstarttillthebuildinglayouthasbeendesignedandfinalizedwithallnecessarydetails.

An alternate, concurrent engineering approach can have the following sequence of activities.Finalise a broad layout concept for the building. This activity will require less time than designing and �finalisingthelayoutindetail.Finalisespecificationoflandwhichwillspecifyminimumwidthandlength–butnottheorientation. �Purchaselandconformingtothegenerallandspecification. �Designandfinalisebuildinglayouttakingintoconsiderationtheexactdetailsofthelandpurchased.This �will enable the engineer designing the lay out to make best use of the total area of plot which is quite likely tobemorethantheminimumplotsizespecified.Alsothelayoutdesigncanincorporatenecessaryfeaturesto ensure better matching of the building with its orientation, contour, and surroundings.

This approach, which utilizes the principal of concurrent design for land purchase activity, offers the following advantages:

Total project duration is reduced by starting land purchase activity earlier. �Abetterlandmaybeprocuredatlowerpricebecauseofflexibilityavailablewithinlandspecification. �Better building layout design that makes best use of the land as the land features are known in detail at the �time of layout design.

1.4 Objectives of Design ManagementThe objectives of project design management are as follows:

Ensure that design of the project outputs best meets the user requirements for which the project is undertaken. �This is achieved by ensuring that the technical persons designing the outputs have timely and correct information related to project time, cost, previously accepted design characteristics, and description of intermediate project outputs impacting the design.Ensure that output designs are progressively elaborated and accepted in time as per information input �requirement for project build and test activities.Ensurethatprojectdesignexecutionmethodsaredesignedandfinalisedtakingintoconsiderationthetriple �project objectives of quality, cost and time.Ensure that designs of project outputs and methods are properly documented and distributed so that project �execution is correct and complete. This involves ensuring that everyone engaged in project has the right version of documents required.

In an ideal world, project’s outputs would satisfy each and every user requirement completely and correctly •

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–thequalityoftheoutputwillhaveeverythingtheprojectownercanwishfor.Butinrealworldallprojectsface constraint of time, quality and cost. These are called as Triple constraints. In addition, what is possible in future is also dependent on what has been accomplished so far. This means that project output design need to take into consideration the constraint of cost and time. In addition, other relevant factors existing prior to start of project, and those developing later, including the ones in form of intermediate outputs of the project, also needs to be taken into consideration.

The triple constraints affecting project success are scope/quality, time and cost (resources).•Triple constraints also known as Management triangle.

Fig. 1.3 Triple constraints(source: http://python.rice.edu/~arb/Courses/610_06_mp_pmgt1.pdf)

A project for building a house on an existing plot has the nature of plot available as a design input existing •prior to start of the project. But if purchase of the plot is part of the house building project, the purchase of plot becomes an intermediate output of the project. The design of layout of the house can be taken up only after the data on the plot is available, and this data must be provided to the layout designer as an intermediate deliverable of the project. It must be noted here that in some cases the nature of the plot acquired may trigger a change in the overall •conceptual design of the house forming the basis of start of the project. In this case the original conceptual design will have to be revised, and it will be one of the objectives of design management that the latest revision of the design is available and used by all concerned project personnel.The time and cost requirements can also change during the course of the project as project activity progresses and •additional information becomes available for project planning and design. Purchase of plot in above mentioned house building project can take much longer or shorter than planned, resulting in reduction or increase in time available for rest of the activities.Similarly, money spent on purchase of land will affect the funds that are available for actual house building. •Design management function aims to ensure that all such information required for design is made available to the right persons at the right time.Further, design management is also concerned with ensuring that the information available is used adequately. •This is achieved through a system of checks, discussions, and approvals.

1.5 Product Design and Process DesignDesigning in projects covers two distinct types of activities which are as follows:•

design of the outputs to be created by the project �design of the method to be adopted to create these outputs �

Cost /

Res

ource

Schedule / Time

Scope / Quality

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Consider a market research project taken up to assess the demand for a new product to be launched in the market. •The product designing in this case will involve clarifying aspects like coverage of the market for the product and the different segments in which market is to be divided, the period for which demand is to be forecasted, whether demand should be studied for a single or multiple price levels, and whether other aspects like typical profileofthelikelybuyersistobeprovided.Thentheprojectmustalsoworkoutthemethodtobeadoptedtocreate project deliverables. In case of the market research project above, this will cover the design of market research methodology, including •detailslikemethodofdatacollectionandanalysis,samplesizeformarketfieldsurvey,andsamplingplan.Projectsareundertakentocreateanddeliversomespecificoutputswhichcanbephysicalproducts,services•orevents.Itisrarethattheseprojectoutputsordeliverablesarespecifiedindetailatthestartoftheproject.Usuallytwoimportantpartsoftheprojectworkare,todescribeordesignitsdeliverableswithsufficientclarityand details necessary for creating it and to provide all the information required for carrying out the activities necessary for creating the deliverables. It is rare that a person takes up construction of a house with all the detailed design of the house available before hand. Usually the person has only general idea of the nature and purposeofthehousetobebuilt.Noconstructionactivitycanstartwiththiskindofdescriptionorspecificationof the house. The designing of the house also costs money and it may be wasteful to design a house specifying all the details •necessary to build it. Thus it is best to develop the design of the house as a part of the house building project rather than as an independent activity.Design of project execution methods also needs to be developed as a part of project activity. Usually, alternative •approaches are possible to create the same project deliverables. Choice of a particular method depends on, in addition to technical considerations of the project application area, the project objectives of quality, cost and time.Therefore, a project manager, even though he or she may not be a technical expert, needs to play an important •part in design of methods.

1.6 Nature of Product DesignTheproductdesignworkinprojectsincludestechnicalworktointerpretthespecificuserrequirementsandcreate•anoveralltechnicalapproachorarchitecturethatwillsatisfytherequirementseffectivelyandefficiently.Thismay require, particularly in software and business reengineering projects, discussions with users to understand theirrequirementandexplorealternativewaysofsatisfyingthesameexactfitwithrequirements.The inputs required for starting the design activities are:•

Description of scope of the project in terms of features and functions that characterize the outputs or products �to be delivered by the project. These are contained in the document produced in the pre-project assessment phase. This description will generally have limited details, which will get progressively elaborated as a result of the design activity. The product description should also contain relationship between the project product and the business purpose that gave rise to the project.Identificationofconstraints,procedures,standardsandotherexternalrequirementsthatinfluenceorrestrict �the acceptable designs features.

Outputs produced by design activities include description of solutions that address each and every part of the user •requirements. These solutions are generally not developed as a one step process, but elaborated progressively.Product design processes are primarily dependent on the requirements of technology of the product application •area.Therearewelldefinedtechnicalproceduresfordesigningdifferentproductsandcomponentpartsofaproduct.Manyofthese,butnotall,designprocesseshaveapre-setsequence.Suchdesignstepswithfixedsequence are such that output of one step is needed as input for the next. For other design steps, it is possible to carry out multiple steps in parallel or in alternate sequences. Another •aspect of the technical design process we need to consider is the input data needed. A design step may use the output of another step or some external data. The external information here includes approval of the output of intermediate steps and authorization to proceed with the subsequent steps. These characteristics of design

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process affect the way designing is carried out in a project environment.

For the purpose of project management, a set of all sequential design steps that do not require use of external •data can be treated as a single project activity. When a design step requires some external input like approval or authorization of a previous step, it is treated starting point for a new project activity. Decision on grouping other types of multiple design steps in project activity is dependent on three factors:

Who is responsible for designing? Designing done by different persons or organisations are treated as �different project activities.Who supplies the input data? When the input is created by or available with the designer, the input data �creation and the dependent design step need not be treated as separate design step, but actual decision to do so will depend on the time factors discussed in next paragraph.Time of availability of input data: When input data required for multiple design tasks can be made available �well in advance of the start of a group of design tasks, it is customary to provide the same as a combined input of all such data required by a person or organisation carrying out the design work. When this is so, it is not essential to treat each step using external data as a separate project activity. For example, on a software development project, the systems design for separate business functions such as selling, production, inventory purchasing, accounts, and human resources management may be done by the software development company as different design components, but the client company may provide preliminary data on their requirements in all these areas as a single document.

Example:Anarchitectdesigningahouseneedstodesignthelayoutofthehousefirstfollowedbytheelevations.Technically,•these two activities can be performed in sequence by the architect without any external inputs. However, the house owner would generally like to approve the layout before further design proceeds. Therefore the two design steps must be treated as separate project activities.Further, once the architectural design is completed, the work of structural design can proceed using the •architecturaldesign.Butthesetwostepsareperformedbytwodifferentpersons–thearchitectandthestructuralengineer, and must be treated as two separate project activities.Within the structural design there will be designs of different components such as foundations, columns, beams, •and slabs. These will be further differentiated according to different parts of the house. Inputs for these outputs can be provided to the structural engineer separately for each different element or all in a single instalment. How exactly this is done in a project will depend on when the input data is available and if waiting for all the data will delay the start of work. For a small single house, it will be perhaps acceptable to provide all the input data in one go, although design •of separate components by the structural engineer may be treated as separate activity. As compared to this, a big housing project with several houses of different types, it may be better to treat the input data to structural engineer for each type of house as a separate activity.

In line with the considerations discussed above, the most important part of managing design of product is breaking down the total design activity in to suitable project activities based on different steps in the design process and the responsibility for designing. The division of responsibility is decided primarily by:

Products and sub systems within products: for example a big thermal power plant has many component �sub systems such as turbo-generator, boiler, circulating water system, coal handling plant and so on. Each one of this may be in itself, a big and complicated product justifying treatment of design of each system as separate set of project activities.Technical expertise like electrical design, mechanical design and civil design. �Responsibility for design and its approval: The responsibility for design of different components of a project �product as well as different stages of design may be assigned to different people and organisations in many different ways. Supplier of big equipment may be given a turnkey contract for complete design, manufacture and installation of the equipment. Alternatively, the work of designing the foundation for the equipment may be done by a civil engineering consultant. The work of designing the layout of the equipment along with

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accessories such as piping, electric cable and control panel may be done by the equipment supplier without any external inputs, or these may need to be approved by a project engineering consultant to ensure proper interfacing of different equipments in the project.

The output of this step will be:Listing of all the different design documents to be produced for the project.•

Input data required for each listed design document and its source. Source of some of the input data may be •other design documented by as a part of the project. Some data may be the result of some other project activity –forexample,soiltestingdoneasapartoftheprojectworkmaybeusedforcivilfoundationandothercivilstructure. In business process reengineering projects, collection of input data for design of revised business processes can be a very important part of the project. Data not available for these sources needs to come from secondary sources within or outside the organisation sponsoring or executing the project.

Identifying the need for review, acceptance and authorisation of the design document.•Identifying the responsibility for various design related activities including providing data from secondary •sources, actual design, review, acceptance and authorisation.These outputs then become the inputs for the planning and scheduling of the project output design activities •along with other project activities.Performance and progress of these design activities are supervised, monitored and controlled along with other •project execution activities in a similar way.Management of design in project management deals with creation of solution that matches the user requirements. •Theseuserrequirementsareidentifiedandagreeduponduringthepre-projectassessmentphaseoftheproject.Management of design covers all the processes required to ensure that the project includes all the work required to complete the project.Thispartofprojectiswherethefirstsubstantialtechnicalworkgetsdone.Notehowever,thatitisonlythefirst•technical work: it is unusual to separate the design work, execution, and implementation.

1.7 Nature of Process DesignProject process design is the process of progressively elaborating and documenting the project activities that •create the product of the project. It starts with initial description of the product of a project and the assumptions and constraints affecting the project work.In many respects, the project process design management is similar to product design management, particularly •when the design of the process calls for specialised application area expertise.The nature of the outputs produced by a project in many types of projects is closely interlinked with design of •theprocess.Theoutputofabasicresearchprojectoranewproductdevelopmentprojectcannotbespecifiedindetail beforehand. Rather, they emerge as the project progresses. Also, the process to be followed in such projects isdecidedinstageswiththeintermediateoutputsofthepreviousstagesinfluencingheavilythesubsequentstages. During the development of tape recorders, Sony tried out alternate media like magnetic material coated wires •and strips and found strips or tapes preferable. Once the decision was take to adopt the tape form, further development work was restricted to trying out different tape material, width and thickness. And having zeroed on a particular design of the tape, the work of perfecting reading and recording head was restricted to the ones suitable for selected tape design.Application area technology based project process design activities are managed in a similar way as product •design activities. In addition, management of all process activities design involves balancing of quality, time, and cost objectives of project management, decision on method of performing and scheduling various project tasks.

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For example, excavation work for foundation of a big building can be done manually or using an excavator. •Excavator is much faster than manual work, but the cost can be high if the total quantity of work to be executed is low. Excavators may be used to reduce both the project duration and cost if all the excavation on a site is done at one go. But this will require that relevant design of the building and work front must be made available in time. Taking another example, the curing time for RCC structure can be reduced and the total project speeded up •using some fast curing additives to the cement. However, this method involves additional cost of the additives. In addition to this, effect of this method on the strength of the RCC structure also needs to be considered.One important aspect of process design affecting the project quality objective is the quality check or inspection •at various stages of the project. At certain pre-determined stages of the project execution work, the quality of work performed up to the stage is inspected and approved before subsequent work can proceed. While building a cement concrete road, the quality of compaction and other quality aspects may be inspected prior to start of the concreting work as this cannot be checked after concreting has been done.In softwareprojects it isvery important tofinalise andapprove theuser specificationsbefore theworkof•writing computer programs starts. Also, various modules of a system are tested and approved separately before integrating them in a single system. The project work can be speeded up considerably if these quality checks are eliminated. But this substantially increases the risk of poor quality.

1.8 Design Management ProcessThe design management process is a strategy for successful project planning and execution. Design management aimstohelpdesignersproduceanappropriateandtimelysolutionthatfitsaclient’sneedsbyfollowingstandardprinciples of research, planning, communication and accountability.

1.8.1 Initiating the Execution Process

The pre-project assessment creates a document authorizing the initiation of a project. This document is called •as Project Initiation Document (PID). The PID contains information that includes description of project product, process, budget and duration. These •are general descriptions which need to be further elaborated during the course of project execution. The PID is an authorisation for the project manager to use resources and spend money up to set limits to deliver •the required project outputs. ThefirststepinthedesignmanagementprocessafterreleaseofPIDistoreviewtheactualresourceavailability•as the situation may have changed since the preparation of the PID, or more likely, during the PID stage, the resource availability and project processes may not have been studied in as much detail as required for project design and execution stage.

1.8.2 Planning Overall Project ProcessesThe design work can start when these preliminary tasks have been accomplished. Major input for this is product description containing the characteristics of the project deliverables for which the project is being undertaken. Productdescriptionalsoclarifiestherelationshipbetweentheprojectdeliverablesandthebusinessneeditwillhelptofulfil.

At the start of the project, this description gives only broad features of the product and as the project along with the projectdesignworkprogresses,itgetsmoredetailedandspecific.

Thefirsttaskofdesignmanagementistodevelopaworkbreakdownstructureusingtheabovementionedinputsplus the technical knowledge base of the project team members, as well as accumulated know-how available through company data base. The work breakdown structure is explained in detail at the end of this chapter. This technical knowledge is required to:

Understand the characteristics and components of project products.•

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Identify alternative method that can be used for designing the product. At times there are several alternative •technical procedures available for designing the same generic product. For instance in a software development project several alternative ways are possible for system design. In designing buildings, it is possible to start with the overall architectural shape and then go in for layout design, like it was done for the design of the famous LotusTempleofBahaireligionatNewDelhi.Analternateapproachistofinalizethelayoutfirstandthendecidethe architectural design of building elevations.Some important aspects of design method include:•

use of standard product versus custom designed product �use of design software �

Number and types of hierarchial design levels. Usually designs need to be reviewed, approved and accepted by •appropriate project stakeholders at each level, before proceeding to next design level.Select appropriate design method that balances the triple objectives of time, cost and quality. The selection will •also depend on:

Identificationofalternatemethodforcreatingtheproduct. �Selection of appropriate process for creating the product that balances the triple objectives of time, cost �and quality.Comprehension of the structure and composition of project products and selected processes. This is required �for decomposing products and processes in their constituent components.

The project manager is not expected to be an expert in the technical area of the project. But an overall appreciation ofthetechnologicalissuescanbeofgreathelp.Usingtheseinputsthefirstmajortaskofprojectdesignistofinalisethe overall design and product creation methods.

1.8.3 Clarify Overall Scope of Project

The next task is to clarify the overall scope of the project. By project scope, we mean all the parts of the product •to be created by the project and all the work performed as a part of the project. SometimesthismaybespecificallycoveredbythePID,butifnot,itisnotclearenoughfromtheproduct•description alone. For example, in case of Business ProcessReengineering (BPR) projects, determination of business and user requirements is always a complicated affair involving interaction between BPR project team membersandtheprospectiveusersandotherstakeholders.Here,majorconflictbetweentheprojectownerand the BPR team may be developed unless the responsibility of the BPR project team for business and user requirement is carefully described. Even when the PID describes the scope, there may be a need to clarify the same in greater detail in light of •additional clarity that will develop with selection of overall project processes.

1.9 Work Breakdown Structure (WBS)What is WBS?

A work breakdown structure (WBS) is a chart in which the critical work elements, called tasks, of a project are •illustrated to portray their relationships to each other and to the project as a whole. The graphical nature of the WBS can help a project manager predict outcomes based on various scenarios, which can ensure that optimum decisions are made about whether or not to adopt suggested procedures or changes.For effective project management, we need to sub divide the total design work in to smaller, more manageable •elements or components. This helps in following ways:

Improves the cost accuracy, duration and estimation of resources �Definesabaselineforperformancemeasurementandcontrol �Facilitates clear responsibility assignment �

This division is done using a process of decomposing project activities and deliverables into progressively smaller •elements; till the total project work is divided into elements detailed enough to support all project activities. This

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detailed listing of project work, along with other relevant details is documented in work breakdown structure (WBS).

Acomplexprojectismademanageablebyfirstbreakingitdownintoindividualcomponentsinahierarchial•structure,knownas theworkbreakdownstructure,or theWBS.Suchastructuredefines tasks thatcanbecompleted independently of other tasks, facilitating resource allocation, assignment of responsibilities and measurement and control of the project.The work breakdown structure can be illustrated in a block diagram:•

Fig. 1.4 Work breakdown structure(Source: http://www.netmba.com/operations/project/wbs/)

Purpose of WBSThe WBS serves several important purposes, such as:

subdivision of work•identificationofprojectlevels•work sharing between companies•economic geographical distribution of funds•implementationofWBSnumberingsystem(Code)–applicabletotheentireproject•definitionofcostaccountstructure•allocation of funds•implementation of project control in line with the WBS code•assignment of responsibilities to companies & individual managers•identificationofinterfacesatalllevels•implementation of documentation numbers related to WBS Code•identificationofworkpackages•

Preparing a WBSThe WBS evolves through an iterative consideration of the project’s purpose and objective, functional/•performance design criteria, project scope, technical performance requirements and other technical attributes. A high-level WBS can often be developed early in the conceptual stage of the project. Once the project is •definedandspecificationsareprepared,amoredetailedWBScanbedeveloped.The following should stimulate thoughts when developing a WBS that provides better support for managing •the project.

Think through the entire project. (look at dividing high level deliverables) �Think deliverables (What is to be provided/ what is required?) �

Project

Task 1 Task 2

Sub task 1.1

Sub task 1.2

Work Package

1.1.1

Work Package

1.1.2

Work Package

1.1.3

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Thinkwiththeendinmind.(Howwillthiscomponentcontributetothefinisheddeliverable?) �Think through the production of the deliverables. (Which methods? Which special processes? Which quality �requirements? Which inspections?)Haveyouformulatedthevisionofthefinalproductinyourmind? �What are its constituent parts? �How do the pieces work together? �What needs to be done? �

The following different approaches can be used to develop WBS:•Standard guidelines on WBS structures may be used which are available for WBS suitable for different �industries.Inadditiontothese,specificguidelinesmaybepreparedbysomeorganisations.Thestandardguidelines are more appropriate for the higher-level WBS, whereas lower-level WBS may need to be worked out for each project independently.Using the WBS of some other similar project and adapting it to suit the current project. This approach saves �thetroubleofreinventingthewheel.Rather,itmodifiesanexistingWBSbychanging,addinganddeletingelements to be applicable to the new project. One major source of the existing WBS is the database of a company’s earlier project.UsingTopDownApproach:Intop-downapproach,thecreationofWBSstartswithidentificationofthe �highest level activities which are successively broken down to next lower level, by identifying and listing all the lower-level task within each of higher-level task.Bottom-up approach starts with listing of tasks at the most detailed level. These tasks are then grouped �into a collection of related tasks to form the next higher-level WBS. This process of grouping is continued successively till all the tasks have been grouped into main phases of the project.Using mind mapping approach: In this approach, the activities may be listed using a mix of top-down and �bottom up approach. Activities are listed down in a non-linear, branching format and represented visually to clarify relationship between them and as an aid in identifying and adding tasks left out in the initial representation. Using this approach, branches and sub-branches can be added to the mind map to represent avarietyofideasortasksandnotes.Somespecialisedmindmappingsoftwarearespecificallyoptimizedfor the presentation of a hierarchical WBS and provide instantaneously several views, including the mind map itself, as well as a top-down,and bottom-up view.

While developing WBS care should be taken to ensure that:•Each WBS element should represent a single tangible deliverable. �Each WBS element should represent an aggregation of all subordinate WBS elements listed immediately �below it.Each subordinate WBS element must belong to only one single parent (or superior) WBS element. �The deliverable should be logically decomposed to the level that represents how they will be produced �(designed, purchased, subcontracted, fabricated, etc.).Deliverables must be unique and distinct from their peers. �Deliverablesshouldbelimitedinsizeanddefinitionforeffectivecontrol–nottoosmall/detailedasto �make cost of control very high and not too large to make item unmanageable or risk unacceptable. Later in this chapter we will discuss in detail the considerations for deciding on the level of detail appropriate for WBS.When work scope changes take place, the WBS must be updated. �Each entry in the WBS representing subcontracted or externally committed deliverables should directly �correspond to matching entry in the subcontractor’s WBS.All deliverables are explicitly included in the WBS. This also includes reporting items such as review �meetings, progress reports and inspection reports.

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Separate WBS elements should be included for integration tasks where several components are being brought �together to create a higher level WBS element.All WBS elements should be compatible with organisational and accounting structure. A WBS item is the �responsibility of only one individual, even though many people may be working on it.

WBS element descriptions are often collected in a WBS dictionary, which is a document that describes detailed •information about each WBS item. This is done because many WBS tasks are vague and must be explained in more detail so people know what to do and can estimate how long the work will take and how much will it cost. A WBS dictionary will typically include work package descriptions as well as other planning information such as •schedule dates, cost budgets and staff assignments. The approved project scope statement and its WBS and WBS dictionary form the scope baseline, which is used to measure performance in meeting project scope goals.

How to use WBSIdentify the primary requirement or objective•

This should be a clear item, based on customer requirements, to which the entire team agrees. Write this �requirement at the top of the chart.

Subdivide the requirement statement into major secondary categories• These branches should represent requirements, products or activities that directly lead to the primary �objectiveorthataredirectlyrequiredtofulfiltheoverallrequirement.Theteamshouldcontinuallyask,“What is required to meet this condition?”, “What happens next?”, and “What needs to be addressed?” Write the secondary categories below the primary requirement statement. Using sticky notes at this stage makes later changes easier to accomplish.

Break each major heading into greater detail• AsyoumovefromtoptobottomintheWBS,productsandactivitiesshouldbecomemoreandmorespecific. �Stop the breakdown when each task is tiny enough to be easily completed and evaluated for accuracy. If the team does not have enough knowledge to continue at some point, identify the individuals who can supply the information and continue the breakdown later with those individuals present.

Review the WBS for logic and completeness• Make sure that each subheading and path has a direct cause-and-effect relationship with the one before. �Examine the paths to ensure that no obvious products or actions have been left out. Also, ensure that the development of listed products or completion of listed actions will indeed lead to the anticipated results.

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SummaryAprojectisatemporaryendeavourundertakentoaccomplishauniqueproductorservicewithadefinedstart•andendpointandspecificobjectivesthat,whenattained,signifycompletion.Project management is the discipline of organizing and managing resources in such a way that these resources •deliveralltheworkrequiredtocompleteaprojectwithindefinedscope,timeandcostconstraints.The project execution phase is the third phase in the project life cycle. In this phase, you will build the physical •project deliverables and present them to your customer for signoff. The project execution phase is usually the longest phase in the project life cycle and it typically consumes the most energy and the most resources.Project design is concerned with translation of project requirements, as contained in Project Initiation Document •(PID),intodetaileddescriptionsandspecificationsrequiredforguidingtheworkofcreatingproductsforwhichproject was initiated.The triple constraints affecting project success are scope/quality, time and cost (resources).Triple Constraints •is also known as Management Triangle.Theproductdesignworkinprojectsincludestechnicalworktointerpretthespecificuserrequirementsandcreate•anoveralltechnicalapproachorarchitecturethatwillsatisfytherequirementseffectivelyandefficiently.Thismay require, particularly in software and business reengineering projects, discussions with users to understand theirrequirementandexplorealternativewaysofsatisfyingthesameexactfitwithrequirements.The design management process is a strategy for successful project planning and execution. Design management •aimstohelpdesignersproduceanappropriate,timelysolutionthatfitsaclient’sneedsbyfollowingstandardprinciples of research, planning, communication and accountability.A work breakdown structure (WBS) is a chart in which the critical work elements, called tasks, of a project are •illustrated to portray their relationships to each other and to the project as a whole. The graphical nature of the WBS can help a project manager predict outcomes based on various scenarios, which can ensure that optimum decisions are made about whether or not to adopt suggested procedures or changes.

ReferencesMerrie Phinney, Project Management, available at < • http://python.rice.edu/~arb/Courses/610_06_mp_pmgt1.pdf > Accessed on 7th January, 2011.Work Breakdown Structure, available at <• http://www.netmba.com/operations/project/wbs/ > Accessed on 7th January, 2011.Work Breakdown Structure. available at <• http://web2.concordia.ca/Quality/tools/30workbreakdownstructure.pdf > Accessed on 7th January, 2011.

Recommended ReadingProject Execution phase, available at<• http://www.method123.com/project-execution-phase.php > Accessed on 7th January, 2011.Bernd Madauss, Project Management, IMPRS, Katlenburg-Lindau, 23-25 May 2005, Pages 89. available at •<http://www.mps.mpg.de/solar-system-school/hofgeismar/projectmanagement_2.pdf > Accessed on 7th January, 2011.

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Self Assessment

_________involves building the deliverables and controlling the project delivery, scope, costs, quality, risks 1. and issues.

Initiation a. Executionb. Planningc. Closured.

Which is the longest phase in the project life cycle that typically consumes the most energy and the most 2. resources?

Project Initiation Phasea. Project Closure Phaseb. Project Planning Phasec. Project Execution Phased.

________ is the process of progressively elaborating and documenting the project activities that creates the 3. product of the project.

Project process designa. Product process designb. Design management processc. Executiond.

The___________ is a strategy for successful project planning and execution.4. project process designa. product process designb. design management processc. executiond.

Which of the following statement is false?5. The triple constraints affecting project success are scope, time and cost (resources).a. The triple constraints affecting project success are quality, time and cost (resources).b. The triple constraints affecting project success are scope/quality, time and cost (resources).c. The triple constraints affecting project success are time, money and planningd.

The pre-project assessment creates a document authorizing the initiation of a project. This document is called 6. ________.

Project Initiation Document (PID)a. project managementb. projectc. project executiond.

Triple Constraints are also known as __________ triangle.7. producta. managementb. processc. projectd.

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Which of the following statements is true?8. Acomplex project ismademanageable by first breaking it down into individual components in ana. organisational structure, known as the work breakdown structure or the WBS.Acomplexprojectismademanageablebyfirstbreakingitdownintoindividualcomponentsinahierarchicalb. structure, known as the work package division.Aprojectismademanageablebyfirstbreakingitdownintoindividualcomponentsinanyfashion,knownc. as the breakdown structure.Acomplexprojectismademanageablebyfirstbreakingitdownintoindividualcomponentsinahierarchicald. structure, known as the work breakdown structure, or the WBS.

In many respects, the project process design management is similar to _________ management, particularly 9. when the design of the process calls for specialised application area expertise.

product designa. process designb. designc. project designd.

WBS element descriptions are often collected in a _______________ which is a document that describes detailed 10. information about each WBS item.

WBS dictionarya. WBS collectionb. PIDc. WBS item listd.

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Chapter II

Project Scope Management

Aim

The aim of this chapter is to:

introduce the concept of project scope management•

explainthescopeverificationprocess•

investigate the scope control•

present the scope creep concept•

Objectives

The objectives of this chapter are to:

demonstratethebenefitsofscopecontrol•

recollect the triple constraints•

illustrate the project scope, product scope and process scope•

explore the scope creep management•

Learning outcome

At the end of this chapter, the students will be able to:

understand the project scope management•

explain the scope change management•

evaluate the scope triangle•

explain the inputs for scope control•

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2.1 IntroductionProject scope management is the collection of processes to ensure that the project includes all work required and onlytheworkrequired,tocompletetheprojectsuccessfully.Itisprimarilyconcernedwithdefiningandcontrollingwhat is and is not included in the project.

Scope Management Process includes the following steps:•Definitionofprojectscope �Scopeverification–formalisingacceptanceofthecompletedprojectdeliverables. �Scopecontrol–controllingchangestotheprojectscope. �

These processes interact with each other and with processes in the other knowledge areas as well. Each process •can involve effort from one or more persons or groups of persons, based on the needs of the project.Each process occurs at least once in every project and occurs in one or more project phases, if the project is •divided into phases.

What is project scope management?Scope refers to all the work involved in creating the products of the project and the processes used to create •them.Itdefineswhatisorisnottobedone.A Deliverable - is a particular product produced as part of a project, such as hardware or software, planning •documents or meeting minutes.Thescopemanagementplandescribeshowtheprojectteamwilldefinethescope,developthedetailedscope•statement,defineanddeveloptheworkbreakdownstructure(WBS),verifythescopeandcontrolthescopeA scope statement describes the characteristics of the product that the project was created to deliver.•

2.2ScopeDefinitionProject scope refers to the complete collection of products to be created by the project and the work to be done •forcreationoftheproducts.Itdefineswhattheprojectwilldeliverandwhatitwillnotdeliver.High-level scope is set in PID and includes all deliverables and boundaries of the project. The detailed scope •is identified in thedesign sub-phaseof theproject.Anychanges in theprojectdeliverables,boundariesorrequirements form the previously accepted one must be approved through scope change management.The project scope is broadly divided in two parts which are as follows:•

Product scope : �Product scope refers to the complete collection of products to be created by the project. Product may include subsidiary components, each with its own separate but interdependent product scopes. Completion of product scope is measured against the product requirements.

Process scope: �Processscopereferstotheworktobedoneforcreationanddeliveryoftheproject’sproductswiththespecifiedfeaturesand functions. Completion of process scope is measured against the project plan. Both kinds of scope management mustbewellintegratedtoensurethattheworkoftheprojectwillresultindeliveryofthespecifiedproject.

The project team and stakeholders must have the same understanding of which products will be produced as a •resultofaprojectandhowthey’llbeproduced.Failuretodefinewhatispartoftheproject,aswellaswhatisnot may result in work being performed that was unnecessary to create the product of the project and thus lead to both schedule and budget overruns.

2.3ScopeVerificationScopeverificationistheprocessofobtainingformalacceptanceoftheprojectscopebythestakeholders.Itrequires•reviewing deliverables and work results to ensure that all were completed correctly and satisfactorily.Scopeverificationisdifferentfromqualitycontrol.Scopeverificationisprimarilyconcernedwithacceptance•of the work results while quality control is primarily concerned with correctness of the work result. These

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processes are generally performed in parallel to ensure both correctness and acceptance.Thescopeverificationinvolvesverificationofdesignsaswellasphysicaldeliverablesoftheproject.These•verificationtasksareperformedatsuitablecheckpointsandexecutionbeyondthesecheckpointsisstartedonlyaftersatisfactorycompletionofappropriatescopeverifications.Verificationofdesign includescheckingofWBSaswell as the technicaldesigndocuments toensure that•they meet the project scope. Thus, every WBS and technical design document must be reviewed and accepted byappropriatestakeholder.Thisofcourserequiresthatprocessandresponsibilityfordesignverificationarethemselvesreviewedandaccepted.Scopeverificationproceduresneedalldesigndocumentsissuedforexecutionbytheprojectteamonlyafterverificationandauthorisationinlinewithagreedscopeverificationproceduresand responsibilities.Physical deliverables created by the project are similarly reviewed against agreed scope, designs and general •standards to ensure that these are inspected and accepted. The inspection process may include measuring, examining and verifying the deliverable against project scope statement to determine whether work and deliverables meet requirements and product acceptance criteria.Changesmayberequestedduringinspectionandreviewsinscopeverificationprocess.Thesechangerequests•are submitted for review and approval through the integrated change control process. Also customer, project team, top management, the techno-commercial team or other stakeholders carrying out the inspection may request changes which in turn, may generate certain corrective actions to the deliverables.Ifaprojectisterminatedearly,thescopeverificationprocessshouldestablishanddocumentthelevelandextent•of completion.

2.4 Scope ControlThe purpose of scope control is to manage changes that occur to previously approved scope statements and •requirements.ScopeisdefinedandapprovedinthescopesectionofthePIDandthemoredetailedbusinessrequirements. If the scope or the business requirements change during the project, the estimates for cost, effort and duration may no longer be valid. If the sponsor agrees to include the new work in the project scope, the project managerhastherighttoexpectthatthecurrentbudgetanddeadlinewillbemodifiedtoreflectthisadditionalwork. This new estimated cost, effort and duration now become the approved target. However, managing scope is all about getting the sponsor to make the decisions that will result in changes to project scope.Project scope control process controls the factors which induce changes in project scope. It also controls the •impact of those changes on project scope. Scope control is associated with integrated change control process. This process makes sure that all requested changes and recommended corrective actions are processed through the integrated change control process.This process also manages the actual changes when they occur in coordination with other control processes. It •controlsscopecreep–atendencyforprojectscopetokeepgettingbiggerastheprojectworkprogresses–whichis one of the biggest reasons of unsuccessful projects.Scope change control is concerned with:•

Influencingthefactorsthatcreatescopechangestoensurethatchangesareagreedupon. �Ensuring that the changes to scope are processed according to procedures developed as part of integrated �change control.Determining the scope change occurred. �Managing actual changes when they occur. �

Inputs for scope controlAnyinformationwhichimpliesthattheactualprojectdefinedinPIDwillbemateriallydifferent,shouldtrigger•the scope control process. The inputs to change control process include:

Project scope statement: The project scope statement includes scope baseline and product scope used. �Work breakdown structure and WBS dictionary: The project scope statement includes scope WBS node, �which may be impacted by approved change request.

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Project scope management plan: It provides planned procedure for scope control process. �Performance reports: It provides information on work performance status of complete and incomplete �deliverables.Approved change requests: Change requests which are approved by integrated change control process and �may impact project scope.Workperformance information:Workperformance information includes specifics ofwork status like, �schedule progress, information of completed and incomplete deliverables, activities schedule, cost and qualify information.

Tools and techniques for scope change controlScopechangecontrol:Scopechangecontroldefinestheprocedurebywhichtheprojectscopemaybechanged.•It includes the paperwork, tracking systems and approval levels necessary for authorising changes.Performance measurement•Additional planning•

2.5 Scope Change ManagementIncapable project team is the measure cause of scope change; the reason is that if a team doesn’t understand the actual requirement, values of organisation so the change in scope occurs.

Change control procedure•There should be proper way to control the scope change before the actual work is started. The change request �isinproperformat,forexamplea“RequestForm”,andinthatrequestformsponsorwilldefinetheenoughdescription about changes that are easily understandable by project manager and project team. Secondly, the scope changes are defensible, that means you have to mention what is important to your �organisationalvalueregardlessyourmainfocusonfeaturismandyoumustdefineseveralalternativesinorder to assess the impact of scope (schedule, resources, and cost).After scope changes get approved there should be change request log that includes all the information �regarding changes. This log protects project team as well.Unfortunately, introducing scope creep will impact the schedule and budget and interest rate of project �team on a project. Thus, change control procedure helps project team to stay focused in a project. �

Benefitsofscopecontrol•keep project manager in control of project �allow project manager to control project’s schedule and budget �allow project team to stay focused and on track �

2.6 Scope CreepTriple Constraints model is typically presented as a triangle to illustrate the relevant factors involved in managing •any project. They are as follows:

Scope: The totality of work to be completed to achieve the Project Objectives. � Resources: The people, hardware, software, funds, etc. that will be utilised to achieve the project �objectives.Time: The calendar time required to achieve the project objectives. �

The triple constraints are often depicted as a triangle to illustrate the fact that changes to any one factor impacts •the others.

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Scope triangleLike any human undertaking, projects need to be performed and delivered under certain constraints. Traditionally, •these constraints have been listed as: scope, time and cost. This is also referred to as the project management triangle where each side represents a constraint. This triangle illustrates the relationship between three primary forces in a project. Time is the available time to deliver the project, cost represents the amount of money or resources available and •qualityrepresentsthefit-to-purpose that the project must achieve to be a success. The normal situation is that oneofthesefactorsisfixedandtheothertwowillvaryininverseproportiontoeachother.Forexample,timeisoftenfixedandthequalityoftheendproductwilldependonthecost of resources available. Similarlyifyouareworkingtoafixedlevelofqualitythenthecostoftheprojectwilllargelybedependent•upon the time available (if you have longer you can do it with fewer people).A phenomenon known as scope creep• can be linked to the triangle too. Some scope creep is inevitable since, earlyon;yourprojectwillbepoorlydefinedandwillneedtoevolve.Alargeamountofscopecreephowevercan be disastrous. When the scope starts to creep, new functionality must be added to cover the increased scope. This is represented •bythequalityarmofthetriangle,representingtheabilityoftheproducttofulfiluser'srequirements.Morerequirementsfulfilled=abetterqualityproduct.

Fig. 2.1 Scope triangle(source:http://www.affinity-it.com/whitepapers/Preventing_Scope_Creep.pdf)

For example, one would expect that adding resources to a project would allow it to be completed in less time and/•or permit additional work to be completed. Alternatively, adding Scope (i.e. more work to do) would generally require more time and/or additional resources to complete that additional work.Oneusefuldefinitionofscopecreepisthesituationthatoccurswhenthescopegrowsduringthecourseofthe•project,butneitherthetimenorresourcesaremodifiedinconsequence.Thisissaidtoresultinan“unbalanced”triangle and a project that is at risk for failure. The situation is compounded by the fact that scope creep is cumulative with additional changes putting the project •at increased risk of failure. Scope growth usually manifests itself in the form of “Changes” to requirements throughout the duration of the project. To fully understand and prevent scope creep, we will need to investigate the source and nature of changes to •our projects.

Scope creep managementAdd Time- delay the project to give you more time to add the functionality. •Add Cost- recruit, hire or acquire more people to do the extra work. •Cut Quality- trade off some non-essential requirements for the new requirements.•

Scop

e Time

Resources

Quality

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SummaryProject scope management is the collection of processes to ensure that the project includes all work required •andonlytheworkrequired,tocompletetheprojectsuccessfully.Itisprimarilyconcernedwithdefiningandcontrolling what is and is not included in the project.Scope refers to all the work involved in creating the products of the project and the processes used to create •them.Itdefineswhatisorisnottobedone.Project scope refers to the complete collection of products to be created by the project and the work to be done •forcreationoftheproducts.Itdefineswhattheprojectwilldeliverandwhatitwillnotdeliver.Product scope refers to the complete collection of products to be created by the project. Process scope refers to •theworkdobedoneforcreationanddeliveryoftheprojectsproductswiththespecifiedfeaturesandfunctions.Completion of process scope is measured against the project plan.Scopeverificationistheprocessofobtainingformalacceptanceoftheprojectscopebythestakeholders.Itrequires•reviewing deliverables and work results to ensure that all were completed correctly and satisfactorily.Project scope control process controls the factors which induce changes in project scope. It also controls the •impact of those changes on project scope. Scope control is associated with integrated change control process. This process makes sure that all requested changes and recommended corrective actions are processed through the integrated change control process.Project Scope Statement: The project scope statement includes scope baseline and Product Scope is used.•Work breakdown structure and WBS dictionary: The project scope statement includes scope WBS node, which •may be impacted by approved change request.Oneusefuldefinitionofscopecreepisthesituationthatoccurswhenthescopegrowsduringthecourseofthe•project,butneitherthetimenorresourcesaremodifiedinconsequence.Thisissaidtoresultinan“unbalanced”triangle and a project that is at risk for failure.

ReferencesProject Scope Management, available at< • http://ww2.cs.mu.oz.au/443/443Lec4.pdf >. Accessed on 11th of January, 2011.Faisal Shareef & Syed Hummayon Hussain, Project Scope & Change Management, available at<• http://geekdeck.com/project-scope-change-management/ >. Accessed on 11th of January, 2011.Project Management, available at< • http://www.otssolutions.com/doc/whitepapers/Project%20Management.pdf >, and Accessed on 11th of January, 2011.

Recommended ReadingJoseph W. Fisher, • Preventing Scope Creep,AffinityIT,LLC,11Pages,availableat<http://www.affinity-it.com/whitepapers/Preventing_Scope_Creep.pdf >. Accessed on 11th of January, 2011.Kathy Schwalbe, • Information Technology Project Management, 2009, Cengage Learning. Business & Economics, 490 pages, available at < http://books.google.com/books?id=MPS_fT3diqAC&dq=project+scope+management&source=gbs_navlinks_s > Accessed on 11th of January, 2011.

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Self Assessment

________ refers to all the work involved in creating the products of the project and the processes used to create 1. them.

Scopea. Deliverablesb. WBSc. Projectd.

Which is the process of obtaining formal acceptance of the project scope by the stakeholders?2. Scope managementa. Scope creepb. Scopeverificationc. Scope controld.

Which of the following statement is true?3. Thepurposeofscopeverificationistomanagechangesthatoccurtopreviouslyapprovedscopestatementsa. and requirements.The purpose of scope control is to manage changes that occur to previously unapproved scope statements b. and requirementsThepurposeofscopedefinitionistomanagechangesthatoccurtopreviouslyapprovedscopestatementsc. and requirementsThe purpose of scope control is to manage changes that occur to previously approved scope statements and d. requirements

Which of the following statement is false?4. The Project Scope Statement includes scope baseline and product scope is used.a. The Project Scope Statement includes scope WBS node, which may be impacted by approved change b. request.Project Scope Management Plan provides planned procedure for scope control process.c. Approved Change Requests provide information on work performance status of complete and incomplete d. deliverables.

_________referstotheworktobedoneforcreationanddeliveryoftheproject’sproductswiththespecified5. features and functions.

Product scopea. Process scopeb. PIDc. WBS d.

A_______definestheprocedurebywhichtheprojectscopemaybechanged.6. scope change controla. scopeverificationb. scope managementc. scope creepd.

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Which is the situation that occurs when the Scope grows during the course of the project, but neither the time 7. norresourcesaremodifiedinconsequence?

Scope change controla. Scopeverificationb. Scope managementc. Scope creepd.

Which process controls the factors which induce changes in project scope?8. Scope change controla. Scope change managementb. Project scope controlc. Scopeverificationd.

_________ allows project manager to control project’s schedule and budget.9. Scope managementa. Scope creepb. Scopeverificationc. Scope controld.

_________ refers to the complete collection of products to be created by the project.10. Product scopea. Process scopeb. PIDc. WBS d.

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Chapter III

Change Management

Aim

The aim of this chapter is to:

explore the Lewin’s 3 step change process•

study what is change management•

look into need for planned change•

examine the various steps involved in change management•

Objectives

The objectives of this chapter are to:

determine the change management process•

understand that changes are unavoidable and the importance of change management in any project•

analyse the reasons for resistance to change•

examine the external and internal forces that cause change•

Learning outcome

At the end of this chapter, the students will be able to:

identify and create ways to manage change•

state the types of change•

reproduce Lewin’s 3 step change process•

recognize the nature of changes common to all projects•

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3.1 IntroductionChange is inevitable and it affects all types of organisation. Therefore, managers need to be skilled in ways to •respond to change to ensure the survival and success of their organisation. Organisations which fail to respond appropriately to environmental changes go out of existence. Changeinvolvesalterationofthestatusquoormodificationoftheexistingsituation.Changecanbeofthree•types. They are as follows:

Evolutionary �Revolutionary �Planned �

Evolutionary changes take place gradually or slowly. They are most visible and face no resistance. •Revolutionary changes are sudden and may be violent. Therefore, such changes are often resisted.•Planned Change implies deliberate alteration in the existing organisational system to achieve some desired •results,i.e,profitability,employeesatisfaction,improvementintheimageoftheorganisation,etc.The change may involve alteration in the structural relationships and in the role of people in the organisation. In •otherwords,plannedchangecanbebothstructuralandbehavioural.Plannedchangemaybedefinedasaconsciousand concerted attempt of organisation to evolve appropriate alternatives so as to utilise the environmental forces to the advantage of the organisation. Planned change is thus the intentional attempt by an organisation toinfluencethestatusquo.Throughplannedchange,organisationstrytogrow.Effective managers do not wait for future. They make the future by introducing and managing change. An •organisation is an open system as it is a continuous interaction with its environment. Any change in its environment requires change in its internal system. Moreover, an organisation is composed of many subsystems, which interact with each other. Any change in one subsystem may create need for changes in other subsystems.

3.2 What is Change Management?Change Management is a set of principles and activities designed to prepare people for and support them through •asignificantorganisationalortechnologicalchange.In practice, dealing with changes in the project involves:•

Anticipating and planning for possible changes through risk analysis contingency plans �Keeping track of emerging or unanticipated issues through issues management procedures �Bringing issues, which could have a major impact on the nature or substance of the project, to the project �Steering Committee so they can re-evaluate the project or make adjustmentsUsing an iterative process of change within the scope of a single project. An example of such an approach �for information systems development projects is Rapid Application Development (RAD) - RAD is highly recommended by some international consulting groups for projects involving innovation or organisational changes, such as data warehousing

Change management is a way of assessing the implications of potential changes and managing the impact on •yourproject.Forexample,achangeinclientrequirementsmightmeanaminorfixoritmightmeanacompletere-writing of the design. Change management gives you a process to evaluate this and introduce the change in a controlled fashion.Sincechangeisinevitable,youneedafluidwaytohandletheinputstoyourproject.Itisimportantthatthe•inputs to your project, your requirements and your design, are able to handle change and evolve over time. If your inputs are static, unchangeable documents, then you are going to be restricted by their inability to keep pace with changing circumstances in your project.Change management tracks and controls changes during the development of a product or service. It is intended to •avoid errors and minimise the impact of changes. It minimises the consequences of unprepared and unrecorded changes and enables approved changes with minimum disruption.The procedures involved in change management are generally called ‘Change Control Procedures’. These are •

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the processes and procedures to manage changes being made to a product, process, schedule, budget, analysis and approval. Change control is typically an element of a project quality plan.

3.3 Lewin’s 3 step Change ProcessAccordingtoKurtLewin,theprocessofplannedchangeconsistofthethreestagesthatareillustratedinthefigurebelow.

Fig. 3.1 Lewin’s 3 step change process (source: http://www.scribd.com/doc/23295874/Change-management-ppt)

3.3.1 Unfreezing

It implies breaking down the existing ways of doing things so that the people are ready to accept new alternatives. •It involves discarding the conventional methods and orthodox behaviour patterns and introducing new methods and behaviour that are most appropriate to the current situation. Members of the organisation are made to realise that the present beliefs, processes and behaviour are no longer •appropriate for the changing demands of the present situation. Unfreezing requires loosening the emotional and intellectual forces. It involves the following steps:

Recognising the driving forcesThefirststeptowardsorganisationalchangeinvolvesrecognisingmajorchangesintheenvironmentand �problem within the organisation. In order to recognise the pressures to change, managers need to develop a keen sensitivity towards the �external and internal environment.

Increasing the driving forcesOncetheneedforchangeisidentified,itneedstobecommunicatedtothepeopleconcerned.Ifmembers �know why the change is needed, they are more likely to adopt it.

Managing the resisting forcesPeople resist change because they perceive it to be harmful to them. It is therefore, essential that they are �madeawareofitsbenefits.Rewards may be linked to willingness to change and resistance to change may be punished. �

UNFREEZE

CHANGE THE EXISTING SITUATION. Make the reasons for change obvious to the individual/orgz.

SHIFT OT A DIFFERENT BEHAVIOUR. Adaption of New values, behaviours & attitudes.

REVISED BEHAVIOUR BECOMES THE NORM. New behavioural pattern is Now the new norm.

MOVE REFREEZE

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Fig. 3.2 Steps in unfreezing

Unfreezing may be affected by encouraging the driving forces which take the behaviour away from the status quo. •Alternatively steps may be taken to overcome the restraining forces which tend to carry out the status quo. Severaltechniquesareavailableforunfreezing,e.g.Education,communication,participationindecision–making,•negotiation through the exchange of rewards, manipulation, coercion or punishment, etc.

3.3.2 Changing or Moving

Once people become receptive to change, the proposed change is introduced in a systematic manner. New •learning takes place during this phase. Members of the organisation are provided with new alternatives and learn to behave in new ways. This moving •phase consists of the following elements.

Compliance or force occurs when individuals are forced to change either by rewards or by punishment. �Internalisation takes place when individuals are forced to encounter a situation that calls for new �behaviour.Identificationoccurswhenindividualsrecogniseoneamongvariousmodelsintheenvironmentthatismost �suitable to their personality.

Several unexpected problems may crop up during implementation of change. These problems must be tackled •effectively. It is a time of trial and error involving uncertainty and tentativeness.•While changing various components of the organisation, careful guidance should be provided to organisational •members.

3.3.3 Refreezing

During this phase, change is made permanent part of organisation’s life. Members of the organisation internalise •the new beliefs, attitudes and behaviour learn during the changing phase. The manager as the change agent has to see that the new behaviour is effectively blended with the other behaviour •patterns. Without internalisation, individual may revert back to the old system after some time. In order to continuously •reinforcetheacquiredbehaviour,theorganisationhastomaintainafit(dynamicequilibrium)amongvariouscomponents that are supportive of such behaviour.New practises are accepted and change is established only when enough reinforcement are provided through •positive results.

Thus, Lewi’s model provides a useful framework for understanding the change process in organisations.

● Recognisingthedrivingforces1

● Managingtheresistingforces3

● Increasingthedrivingforces2

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3.4 Need for Planned ChangePressures for change arise from both within and outside the organisation.

External forcesEvery organisation exists and operates in an environment. Changes occur frequently in the environment, e.g. •economic, social and political changes. An organisation must change in order to adapt itself to the new environment. Some of the external pressures •aregivenbelowinthefigure.

Fig. 3.3 External forces

Market situationModern business enterprises operate in a highly competitive market place. Competitors introduce new �products, better services, improved advertising, etc. The needs and habit of consumers also change. Organisations must change to survive and grow in such �markets.

TechnologyRapid technological changes shorten the life of many products and services. Existing plants and machines �become obsolete. Computerisation and automation is a major example. Organisation can ignore technological developments �at the cost of their survival.

Population dynamicsChanging age distribution of population may cause shortage of skilled people and may accentuate different �life styles.Geographic movement of people may require changes in marketing strategies. The drives for social equality, �erosion of the joint family system and rise of working women are other major social changes.

Political and legal systemRelations between business and government are improving. Legal provisions concerning the corporate �sector are being changed rapidly.Transitional corporations and other international developments are forcing organisations to modify their �structures and plans.

External forces

Political and legal system

Market situation

Technology

Population dynamics

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Internal forcesPressures for change also originate within an organisation. They are as follows:

DeficienciesintheexistingsystemChanges are necessary when the present structure or processes are not capable of achieving organisational �objectives.Unmanageable span of control, narrow specialisation, too much centralisation of authority and multiplication �of committees

Other changesNeed for improving productivity and quality of working life, scarcity of certain resources, e.g. power needs �to avoid inertia, etc. are other internal sources of change. Another internal force is the domino effect which means one change triggers off a sequence of supporting changes.For example, the creation of a new department may lead to introduction of new managerial positions and �reallocation of tasks, etc.Task, people, technology and structure are the four main factors involved in organisational change. �

Fig. 3.4 Factors involved in organisational change

These factors are interrelated and interdependent so that a change in one produces changes in other �factors. Task implies the job which can vary in terms of variety, autonomy, task identity, feedback and �significance.Peoplerefertoindividualswhofillandperformvariousjobsintheorganisation.Individualsdifferintheir �attitudes,motivationsandvalueswhichinfluencetheirperceptionandevaluationofchange.Thiscanmakechangedifficult.Technology includes the methods, techniques and processes used to convert inputs into outputs. �Structureisreflectedinthenumberofhierarchicallevels,spanofcontrol,andthewayinwhichpartsare �organised and related to one another.Communication, decision and power systems are significantly influenced by these structural �arrangements.Organisational change can be introduced through the alternation of any one of these four variables or �combination of these factors.

Task

PeopleOrganisational change

Technology

Structure

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3.5 Resistance to ChangeIndividuals may respond to change in three ways i.e., acceptance, indifference and resistance depending upon how they perceive the change. Resistance to change may come from individuals as well as from the organisation. The main individual and organisational reasons for resistance to change are given below:

Fear of economic loss•Peopleresistchangewhentheyperceivethattheywilllosesomeeconomicbenefits.Someexamplesofeconomicloss are as follows:

Fear of technological unemployment. �Fearofreducedworkhoursandconsequentlyreducedmonetarybenefits. �Fear of demotion and consequently less pay �Fear of speed up through higher job standards and reduced incentive wages. �

Obsolescence of skills•Change may render the existing knowledge and skills obsolete. Old skills and techniques may become �useless. For example, an experienced accountant may resist the introduction of a computer due to the fear that his �experience will become useless and it might affect his pay and position in the organisation. This phenomenon is commonly found in people who possess no real marketable skills and whose knowledge �is outdated.

Status quo•People attach great importance to the status quo. Change may disturb their convenience and comforts. �Individuals also resist change due to habit or custom.Change requires some adjustments on the part of employees. Adjustments are often inconvenient and create �uncertainty. There is, therefore, a natural tendency among people to oppose change.

Fear of unknown•Change causes uncertainty and risk during the transition period. The unknown poses a constant threat to �people because the impact of change is unknown.For instance, an employee may resist transfer to a remote branch because of the anxiety of an unfamiliar �place.

Ego defensiveness•Sometimes people resist change because it hurts their ego. �For instance, an ego defensive branch manager may resist even a good suggestion from the salesman because �thebranchmanagerfeelsthathisegomaybedeflatedifheacceptsthesuggestion.

Social displacement•Introduction of change often causes social displacement of people by breaking informal groups and �relationships.When the friendship with fellow-members is interrupted, employees may feel psychologically let down. �Therefore, they dislike new adjustment, breaking up of present social relationships, reduced social satisfaction �andfeelingofoutsideinterferenceintheformofchange.Itisverydifficulttoovercometheemotionalresistance to change.

Peer pressure•People may resist change because the group to which they belong opposes the change. Every group has its �own norms and outputs pressure on its members to resist change which violates the group norms. For example, a factory worker may feel that the proposed change in the techniques of production is desirable. �But he may resist the change because his trade union is opposed to it.

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Organisational structure•Some organisational structures have inbuilt mechanism for resisting change. Consider, for instance, typically �bureaucraticstructureswhereinjobsarenarrowlydefined,linesofauthorityareclearlyspeltoutandtheflowofinformationisstressedfromtoptobottom.In such an organisation structure, new ideas rarely travel down the hierarchy because these are screened �out. Innovations are not suitable for such organisation.

Resource constraints•Some organisations resist change due to scarcity of resources. Greater is the scarcity of resources, greater �is likely to be the resistance to change. An organisation may not like to incorporate change because it requires huge investment. �

Threattopowerandinfluence•Whenpeopleatthetopconsiderchangeasapotentialthreattotheirpositionandinfluence,theyresistit. �Change may disrupt the power relationships and produce new power equilibrium. This new equilibrium �may reduce the power and prestige of some top executives. Therefore, they oppose the change.

Sunk costs•Anorganisationmayalsoresistchangebecauseithasinvestedinfixedassetsandhumanresources.These �costs cannot be recovered unless the assets and resources are put to productive use.When the change is introduced many of these costs become useless. �For example, existing machines may not be retained despite their outdated skills and experience. Their pay �andotherbenefitsrepresentsunkcosts.

Management of changeManagement of organisational change is a complex process. Change in organisation does not occur

instantaneously. It requires considerable planning and efforts on the part of management. Main stepsintheprocessofmanagingchangeareshowninthefigurebelow.

Fig. 3.5 Change management process

● IdentifyingNeedforChange1

● PlanningtheChange3

● DefinetheElementtobeChanged2

● MonitoringandAnalyzingChange4

● Follow-upandFeedback6

● ImplementingtheChange5

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The steps involved in change management are as follows:Identifying need for change

First of all, the need for change in the organisation is recognised. Change for the sake of change is useless. •Management should, therefore, analyse the internal and external forces demanding change. Then the unnecessary •or minor forces may be isolated. Information for identifying the need for change comes mainly from the organisation’s feedback and control •system. Corrective action stage of the control process may indicate the need for change.In order to identify the need for change, the gap between the desired situation and the existing situation needs •to be analysed.Thisgapanalysis shouldbeviewedonprogressionbasisbecause thedesiredstateofaffairs isnotafixed•concept.Thus,theobjectivesofchangeshouldbedefinedinthefirststagetoprovideclueswhychangeshouldtake place.

DefinetheelementtobechangedWhat is to be changed depends largely on the need and objectives of change. At this stage the problem requiring •change is diagnosed. For example, declining market share may require change.Therefore, it becomes necessary to diagnose the factors responsible for declining market share. Several techniques •may be used for diagnosis, e.g. questionnaires, interviews, observations, etc.Usually change is required in three major elements of the organisation-structure, technology and people. •Structural change may include job redesign, departmentation, span of control, power structure, coordination mechanism, etc.Technological changes consist of production methods, plant and machinery, engineering processes, etc. Changes •in people comprise changes in their attitudes, behaviour, interaction, patterns, informal grouping, skills, etc.

Planning the changeThisisperhapsthemostcrucialphaseinthemanagementofchange.Itinvolvesfindinganswerstoquestions•like when to bring change, how to bring change and who will bring change.In other words, the time, pace, and quantum of change should be decided and the mode of implementing the •change should be determined. While dealing with the time dimension of change, it is necessary to consider likely reactions to change, time •required to persuade people to accept the change, counselling and training people to make them competent for the new situation, time required to make resources available for change, etc.For deciding the method and procedure of change, a logical sequence of steps may be created, e.g. putting •change, measuring its impact and correcting any dysfunction’s, etc. Thougheverymanagerisachangeagent,specificindividualmaybedesignatedforbringingamajorchange.•

Monitoring and analysing changeTracking change

To make change management easy you need a simple method of tracking, evaluating and recording changes. •This can be a simple database or log but in large projects it has evolved into a customised information system in its own right.As such the system needs to be able to handle:•

logging requests for changes against products and documentation �recording and managing the priority of a particular change �logging the decision of a change management authority �recording the method and implementation of change �tracking implemented changes against a particular version of the product or document �

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The more structured a system, the more secured the change control process, but obviously the more overhead. •A balance must be struck between the enforcement of proper procedure and responsiveness of the system.If the volume of change requests is particularly high, (as it often is) communicating what’s in and what’s out •manuallycanbedifficult.Asimple,wellunderstoodchangemanagementsystemcanoftenbedirectlyusedbystakeholders to log, track and review changes and their approval. This is particularly true for projects that span disparate geographical locations where meetings may not be possible.In many projects the change management system can be linked to (or is a part of) a defect tracking system. Since •resolution of a defect is, ,a request for change, both can often be handled by the same system. The change and defect tracking system can also be linked with version control software to form what is commonly known as a SoftwareConfigurationManagement(SCM)system.Thisintegratedsystemdirectlyreferenceschangesinthesoftwareagainstspecificversionsoftheproductorsystemascontainedinitsversioncontrolsystem.The direct one-to-one reference cuts down on management overhead and maintenance and allows the enforcement •of strict security on allowable changes.

Analysing causes of changeWhere do change requests come from? If you’re not careful they will assail you from all directions: the users •change their minds (for good and bad reasons), the IT guys have great ideas for ‘improving’ the design, company policy changes and unforeseen external events affect the project.Unfortunately in software projects most change requests result from two causes:•

errors and omissions in the requirements �vague, incomplete or just plumb wrong design documents �

When running a software project each accepted change that should be categorized by the cause. If you discover •that most change is caused by vague requirements, that will drive you almost subconsciously to invest more on thenextprojectingettingtherequirementsright:rigorous,hothouserequirementsdefinitionworkshops,etc.

Implementing the changeThe implementation of change programme involves the application of various interventions suitable for the •change.For example, a training programme may be held to change the attitudes and behaviour of people •While implementing change several problems might have to be faced. First, resistance to change has to be •overcome.Secondly, change may disrupt and weaken the existing control system.•Thirdly, change might upset the balance of power in the organisation. It becomes, therefore, necessary to motivate •change, to manage the transition and to shape the political dynamism.

Follow-up and feedbackProper follow-up action is necessary to ensure that change is progressing in the right direction. Constant •monitoring is desirable to identify and tackle the problems created by change.Feedback received from the initial attempt of change may be used to modify the subsequent change •programme.Usually, the impact of change is measured in terms of its objectives. Management must ensure that the change •programmeisimplementedtomaximisebenefitstotheorganisation.

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SummaryChange is inevitable and it affects all types of organisations. Therefore, managers need to be skilled in ways to •respond to change to ensure the survival and success of their organisation. Organisations which fail to respond appropriately to environmental changes go out of existence. Change can be of three types like evolutionary, revolutionary and planned.•Change management is a set of principles and activities designed to prepare people for and support them through •asignificantorganisationalortechnologicalchange. Change management is a way of assessing the implications of potential changes and managing the impact on •yourproject.Forexample,achangeinclientrequirementsmightmeanaminorfixoritmightmeanacompletere-writing of the design. Change management gives you a process to evaluate this and introduce the change in a controlled fashion. According to Kurt Lewin, the process of planned change consists of the three stages, which include unfreezing, •moving and refreezing. Lewi’s model provides a useful framework for understanding the change process in organisations.Task, people, technology and structure are the four main factors involved in organisational change. These factors •are interrelated and interdependent so that a change in one produces changes in other factors. Organisational change can be introduced through the alternation of any one of these four variables or combination of these factors.Changemanagementprocessconsistsofsixsteps,whichincludesidentifyingneedforchange,definingthe•element to be changed, planning the change, monitoring and analysing change, implementing the change and finallyfollow-upandfeedback.

ReferencesOrganisation and Management Fundamentals• , September 2002, Directorate of Studies, the Institute of Cost and Works Accountants of India, 12, Sudder Street, Kolkata- 700 016. Chapter 7 Change Management, P 7.2 7.20Micheal Axelsen, Business Process Management and Change Management, Applied Insight Pty Ltd, P 6 15, •Available at < http://www.michealaxelsen.com/docs/20071130_bpm_cm_paper.pdf > , Accessed on 13th January, 2011.

Recommended ReadingDisha Jain Kanika Sharma Megha Gupta Monika Bishnoi Neetu Meena and Niharika Tripathi, • Navigating The Complexities and Dynamics Of Change, Available at < http://www.scribd.com/doc/23295874/Change-management-ppt >, Accessed on 13th January, 2011. Esther Cameron, Mike Green, • Making sense of change management, 2004, Kogan Page Publishers, 280 pages, Available at < http://books.google.com/books?id=6ntE9TLr7YYC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false >, Accessed on 13th January, 2011. Change Management, Available at< • http://www.docstoc.com/docs/10638462/Change-Management > . Accessed on 13th January, 2011.

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Self Assessment

____________implies deliberate alteration in the existing organisational system to achieve some desired 1. results.

Planned changea. Evolutionary changeb. Revolutionary changec. Unplanned changed.

Introduction of change often causes _________ of people by breaking informal groups and relationships.2. peer pressurea. resource constraintsb. social displacementc. sunk costsd.

Which changes take place gradually or slowly?3. Planned changea. Evolutionary changeb. Revolutionary changec. Unplanned changed.

Which of the following statement is true?4. Task, people, money and structure are the four main factors involved in organisational change.a. Task, people, technology and security are the four main factors involved in organisational change.b. Task, people, technology and structure are the four main factors involved in organisational change.c. Task, machinery, technology and structure are the four main factors involved in organisational change.d.

Whichofthefollowingisreflectedinthenumberofhierarchicallevels,spanofcontrolandthewayinwhich5. parts are organised and related to one another?

People a. Structureb. Taskc. Technologyd.

________ includes the methods, techniques and processes used to convert inputs into outputs.6. People a. Structureb. Taskc. Technologyd.

___________ consists of production methods, plant and machinery, engineering processes, etc.7. Planned changea. Evolutionary changeb. Revolutionary changec. Technological changed.

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8.

1. Status Quo A. Some organisations resist change due to scarcity of resources.

2. Resource constraints B. Change requires some adjustments on the part of employees

3. Obsolescence of skills C. Fear of technological unemployment

4. Fear of Economic Loss D. Old skills and techniques may become useless.

1-A, 2-C, 3-D, 4- Ba. 1-B, 2-A, 3-D, 4- Cb. 1-D, 2-A, 3-B, 4- Cc. 1-C, 2-D, 3-B, 4- Ad.

________ change may include job redesign, departmentation, span of control, power structure, coordination 9. mechanism, etc.

Structural a. Evolutionary b. Revolutionary c. Technological d.

It becomes, therefore, necessary to_______ change, to manage the transition and to shape the political 10. dynamism.

resista. motivateb. planc. follow-upd.

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Chapter IV

Project Performance Management

Aim

The aim of this chapter is to:

discuss the concept of project performance management•

learn the steps involved in setting up a project•

study concept of earned value method•

analyse risk management •

Objectives

The objectives of this chapter are to:

examine the steps in project process control•

determine the meaning and importance of managing project performance•

understand concept of six sigma•

get the knowledge of quality control in a project•

Learning outcome

After reading this chapter, the students will be able to:

identify and list components of project performance management•

state and identify steps in project process control•

reproduce risk management concept•

discuss how • to use sigma in project management

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4.1 IntroductionProject comprises of a series of activities directed to the accomplishment of a desired objectives. It is therefore, •carefully selected set of activities chosen to use resources (time, money, people, materials, energy, space, provisions,communication,quality,risk,etc.)tomeetthepre-definedobjectives.Project management is the discipline of organizing and managing resources in such a way that these resources •deliveralltheworkrequiredtocompleteaprojectwithindefinedscope,timeandcostconstraints.A project is a temporary and one-time endeavour undertaken to create a unique product or service. The •management of these systems is often very different and requires varying technical skills and philosophy, hence requiring the development of project management. Thefirstchallengeofprojectmanagementisensuringthataprojectisdeliveredwithinthedefinedconstraints.•The second, more ambitious, challenge is the optimized allocation and integration of the inputs needed to meet thosepre-definedobjectives.The KPMG International 2002-2003 Program Management Survey interviewed 230 organisations in 15 countries, •includingtheAsia-Pacificregion.Itrevealedthat59percentoftheorganisationssurveyedhadfailedprojects.The average cost of these failures across all participants was $10.4 million USD. Further, the survey showed thatonlyaround10%ofprojectscomein‘ontime’;lessthan20percentcomein‘onbudget’–andonlyaround50 per cent of those projects that were evaluated even meet sponsor expectations.The major reasons for failure were described as:•

Unclear / changing scope requirements �Poor project management �Poor resource management �Poor cost management �

It is concerning that poor project management is often given as the “excuse” for project failure. Similarly, poor •resource and cost management are a direct result of mismanagement of organisation’s assets, often resulting in poor project performance, cost and schedule overruns and even catastrophic project failures.Once projects have been started, many underachieve despite being properly scoped and well priced and fully •planned: the reason being ineffective management. As the project moves through its various stages, it is simply not managed properly. Good project leaders are able to follow through from the set up and planning of a project toitsimplementationandfinalcompletion.Theydothisbymanagingtowardsthemilestonestheyestablishedin the project plan. There are always alternative uses for the resources invested in a project. In effect, projects are in competition for these resources. This investment must be assessed continuously not just at the end of the project.In contest of above it is very important for project organisations to have an effective system for managing project •performance throughout the lifecycle of the project.

4.2 Project Performance Management ProcessProjectperformancemanagementprocessiscomplexandisinfluencedbylargenumberoffactorslikestructure,•systems, nature and volume of business and risks. Following are some of the key generic issues in project performance management:•

Which are critical areas to make the project successful? �Skills and knowledge needed for effective job performance. �What gap exists between the required level of performance and current capabilities? �Alignment of job expectations with the culture and strategy of the organisation. �Approaches to training and performance management. �

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4.2.1 Development of Performance Management MethodologyFollowing are the important aspects which must become a part in developing project performance management process:

Ensure the appropriate mechanisms for measuring progress are in place.•Allocate the responsibility for every project activity to someone and ensure that each person knows what they •are accountable for.Provide feedback to the project team, the customer and major stakeholders.•Seek feedback from the project team, the customer and major stakeholders.•When things go wrong check the Contingency Plan.•Modify the project quickly when things go wrong, but be sure to deal with causes not symptoms.•Plan a celebration at the end of each major stage and at the conclusion of the project.•Close the project off formally and let everyone know it is over.•

4.2.2 Components of Project Performance ManagementThoughitisdifficulttoclassifytheprocessofmanagingprojectperformance,suchclassificationhelpsinunderstandingtheprocess.Majorcomponentsofprojectperformancemanagementprocessareshowninthefigurebelow:

Fig. 4.1 Components of project performance management

Measuring all critical project components:Project performance measurement is often been taken to mean ‘cost performance’. In reality, the measuring of •performance must cover three dimensions of project progress:

Progress in terms of time passing - are we meeting our planned deadlines? �Progress in terms of expended effort and investment - are the hours worked and money spent the same as �we planned?

Components of Project

performance Management

Measuring all critical

components

A good reporting system

An accountability

structure

Managing things that go

wrong

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Progress in terms of the evolution of the project - are we producing the results we anticipated? �

All of these elements are embedded in the project plan - their measurement should be automatic. Two further •principles associated with performance measurement are important for project leaders:

Whensuccessisachieved,celebrateandrewardit.Beasquicktocongratulateasyouaretofixproblems. �Establish controls. That is, identify the critical elements of the project, measure these rigorously and control �them tightly. Leave the trivial matters to manage themselves. If everything is controlled tightly, project manager will squeeze enthusiasm and performance out of the project.

A good reporting system:Reporting systems provide the informational and communication base for managing the performance of a project. •When managing a project you should:

Install a reporting system that measures actual performance against planned performance (from the project �plan)Report progress to the project team, the customer and other key stakeholders �Seek feedback from the project team, the customer and other key stakeholders �

Generally, it is more useful to measure how much of the project is still to be completed rather than to estimate •progress to date. Discussions about ‘progress to date’ tend to get bogged down in detail about tasks completed. Whereas ‘required to complete’ tends to focus on outcomes/goals still required.Reporting mechanisms exist to keep all parties informed. Transparency and openness not only provide hard •evidence of performance (or lack thereof), they also nurture the trust, which is a prerequisite of good team and strong relations with the customer.

An accountability structure:Successful project leaders know that they are employed to lead the project not to do the task themselves. •This means that they are able to allocate the responsibility for every project activity to someone and ensure that •each person knows precisely what they are accountable for.

Managing things that go wrong:Few projects progress as planned without any major hitches. So good project leaders know that they had better be able to handle things that go wrong. Following is the 5 step process outlined:

Stop and assess the situation: Make time for analysis to identify the cause of the problem. Don’t simply react 1. to the symptoms.Check the contingency plan: Has this situation been foreseen and a response thought through already?2. Identify options: List and evaluate the alternatives using a set of decision criteria. Don’t jump in with an 3. inappropriate response.Replan: This will enable managers to measure how effective the response to the problem has been. Don’t discount 4. theoptionofstartingagain;thismightbebetterthantryingto‘fix’things.Usepeoplewell:Finda‘champion’tofixdifficultproblems.Enthusiasmovercomesmanyobstacles.Donot5. overuseconsultants.Thisonlytellstheprojectteam‘We’renotsmartenoughtofixourownproblems’.As an overarching principle, it is important that everyone learns from experience. Once the problem hasbeenfixed,debrieftheteamsothateveryonehasanewskillsettodealwithsimilarproblemsinthe future. If the problem arose from mistake, learn whatever is necessary to prevent one from making the same mistake twice.

4.2.3 Important AspectsIn a nutshell, following important aspects must become part of a project performance management process:

Ensure the appropriate mechanisms for measuring progress are in place.•Allocate the responsibility for every project activity to someone and ensure that each person knows what they •are accountable for.

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Provide feedback to the project team, the customer and major stakeholders.•Seek feedback from the project team, the customer and major stakeholders.•When things go wrong check the contingency plan.•Modify the project quickly when things go wrong, but be sure to deal with causes not symptoms.•Plan a celebration at the end of each major stage and at the conclusion of the project.•Close the project off formally and let everyone know it is over.•

Tools to assist to manage project performanceSuccessful project managers control projects by carefully monitoring, measuring and managing performance. To assist managers with carrying out the tasks for managing project performances following tools are useful:

Managing project performance checklist•Project achievement analysis•Project progress report•

4.3 Designs and Monitoring FrameworkThe DMF is a simple but powerful design and management tool. It helps build consensus with stakeholders and •create ownership of the proposed project. It organises thinking and relates activities to expected results. It provides a structure for monitoring and evaluation where planned and actual results can be compared. •The process of consensus building refers to the steps involved in designing a project - stakeholder analysis, •problems and objectives analysis and analysis of alternatives. The results of this process are then summarised and presented in a matrix format.

DESIGNSUMMARYPERFORMANCE

TARGETS/ INDICATORS

DATA SOURCE/ REPORTING

MECHANISM

ASSUMPTIONS/RISKS

IMPACTOUTCOMEOUTPUTActivities and Milestones Inputs

Table 4.1 Design and monitoring framework

The DMF matrix comprises of 4 major headings/columns. The design summary outlines the main elements of •the project and shows the vertical logic of the DMF—explaining the means-ends relationship, also referred to as the results chain. Theverticallogicteststhesoundnessoftheresultschainbycheckingiftheinputsaresufficienttocarryoutthe•activities,whichhavetobesufficienttoproducetheoutputs.Inturn,outputs,alsoreferredtoasdeliverablesorproject scope and are expected to achieve the desired outcome at the completion of the project. The outcome contributes to achieving the impact.

ImpactThe impact, also termed goal or longer-term objective, refers to the sectoral, subsectoral, or in some cases •national objectives. The impact is wide in scope, will accrue at a date— medium to long-term—following project completion and •isinfluencedbymanyfactorsotherthantheprojectitself.Whendeterminingtheimpactstatement,followingpoints need to be considered.

Ensure that there is a direct means-end relationship between the outcome and the impact.a. Clearly state a desired result and do not phrase an action such as “to develop”, “to contribute to”, etc.b.

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Do not summarise the logic of the project by using connecting towards such as “through” or “by” or c. “for.”Express the expected beneficial consequences or impact on a defined group of people, reflecting thatd. developmentisaboutconferringbenefitsonpeople.Describe results that can be measured.e.

Project outcomeThe project outcome is the key anchor of the project design. It describes what the project intends to achieve by the •end of project execution and by doing so makes it clear what development problem the project will address. The decisions on and phrasing of the outcome statement determine the nature and scope of the outputs that will •benecessarytoachievetheoutcome.Specifically,theoutcomeshouldbe:

Limited to one statement to ensure clarity and focus. More than one outcome implies that there are a number �of subprojects/components under the umbrella of a more generalized project. These need to be either rephrased into outputs or summarized into a single statement associated with several indicators outlining the dimensions of the outcomePhrased as an improvement over a baseline situation, which is described in the performance targets and �indicators columnReasonably achievable—subject to assumptions and risks �

Outcomestatementstypicallydescribethechangeofbehaviourofthebeneficiariesusingtheoutputsofthe•project. Outcome statements can also describe performance changes of systems, organisations and institutions, e.g.,financialservicesaremoreaccessibletosmallenterprises;publicserviceismoreaccountable.Capacityplansfinanced,implementedandsustainedisanexampleofanoutcomestatementforprojectswith•a focus on organisational capacity building.

OutputsOutputs are the physical and/or tangible goods and/or services delivered by the project and describe the scope of the project. These outputs must be necessary to achieve the outcome.

Each output has to be necessary to achieve the stated outcome.•Include only outputs that can be delivered by the project and are feasible with the resources available.•Donotusetheinfinitivetense(e.g.,Toassess,Toprepare)atthebeginningofoutputstatements;theseimply•activities.Components are not outputs; components are a collection of outputs conveniently grouped forfinance or•administrative purposes.For complex projects and programs, include an output for project management, e.g., project management system •operational. This output summarises routine events and activities of the project implementation team or unit, including planning, monitoring and evaluation, procurement and reporting. Tasks can also include communicating with stakeholders, providing input on strategic and policy issues and instigating mitigation measures in the event that a risk hinders project implementation.Examples of outputs for capacity-building projects include:•

government policy on capacity development approved �capacitydevelopmentplansfinalized �agency leadership in place �agency staff skills upgraded �

ActivitiesActivities are the groups of tasks carried out using project inputs to produce the desired outputs. Points to note are:

List only those activities that represent the main steps in the transformation process, turning inputs into outputs. •

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They should not be a restatement of an output as an action.Activities should be possible with the available inputs.•Include completion dates and/or important milestones for each activity.•

InputsInputs are the main resources required to undertake the activities and to produce the outputs.•These include consulting services, personnel, civil works, equipment, materials and operational funds, which are •providedbyinstitutionslikeADB,government,cofinanciersandothers,includingbeneficiariesifapplicable.

4.3.1 Project Process Control

Any system for monitoring project performance should provide the project manager and stakeholders with the •ability to answer questions such as:

What is the current status of the project in terms of the schedule and cost? �How much will it cost to complete the project? �When will the project be completed? �Are there potential problems that need to be addressed now? �What and where are the causes for cost or schedule overruns? �What have we gotten for the dollars spent? �If there is cost overrun midway in the project, can we forecast the overrun at the completion? �Canpotentialproblemsbeidentifiedbeforeitistoolatetocorrectthem? �

A system called earned value (EV) facilitates answers to these questions, which is described later. Of course, •the validity of any monitoring system depends on the data that are accurate and reliable. The usefulness of the EV system depends on data from the work breakdown structure-resources, time and cost •estimates, a time-phased budget for each task-and new estimates of percent complete that are realistic and as accurate as possible.Measurement and evaluation of project performance require a control process consisting of the four steps shown •inthefigurebelow:

Fig. 4.2 Steps in project process controlSetting a Baseline Plan1. The baseline plan provides us with the elements for measuring performance. The baseline is derived from the •cost and duration information found in the work breakdown structure (WBS) database and time-sequence data from the network and resource scheduling decisions.

● SettingaBaseLinePlan1

● ComparingPlanagainstActual3

● MeasuringProgressandPerformance2

● TakingAction4

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TheWBSdefinestheworkindiscreteworkpackagesthataretiedtodeliverablesandoriginationsunits.In•addition,eachworkpackagesdefinesthework,durationandbudget. From the WBS the project network schedule is used to time-phase all work, resources and budgets into a •baseline plan.

Measuring Progress and Performance2. Timeandbudgetsarequalitativemeasuresofperformancethatreadilyfitintotheintegratedinformationsystem.•Qualitativemeasuressuchasmeetingcustomertechnicalspecificationsandproductfunctionaremostfrequentlydetermined by on-site inspection or actual use. Measurement of time performance is relatively easy and obvious. That is, is the critical path early, on schedule, •or late; is the slack of near-critical paths decreasing to cause new critical activities? Measuringperformanceagainstbudges(e.g.,money,unitsinplace,labourhours)ismoredifficultandisnot•simply a case of comparing actual versus budget.Earned value is necessary to provide a realistic estimate of performance against a time-phased budget. Earned •value is necessary to provide a realistic estimate of performance against a time-phased budget. Earned value willbedefinedasthebudgetedcostoftheworkperformed(BCWP).

Comparing Plan against Actual3. As plans seldom materialised as expected, it becomes imperative to measure deviations from plan to determine •if action is necessary. Periodic monitoring and measuring the status of the project allow for comparisons of actual versus expected •plans. It is crucial that the timing of the status reports be frequent enough to allow for early detection of variations from plan and early corrections of causes. Usually status reports should take place every one to four weeks to be useful and allow for proactive •correction.

Taking Action4. Ifdeviationsfromplansaresignificant,correctiveactionwillbeneededtobringtheprojectbackinlinewith•the original or revised plan. In some cases, conditions or scope can change, which, in turn, will require a change in the baseline plan to •recognise new information.

4.3.2 Earned Value Management

Earned Value is one of the techniques as a way to more accurately measure and manage project performance •to enhance control. It allows simultaneous measurement of budget and schedule performance and captures theirinterrelationshipbetterthananyothermethod.Itspowerliesinmeasuringtheefficiencyatwhichworkisproduced, forecasting the resulting cost-at-completion while there is still time to recover and pin-pointing the source of project problems.Earned Value Management (EVM) is a systematic approach to the integration and measurement of cost, schedule •and technical (scope) accomplishments on a project or task. It provides both the government and contractors the ability to examine detailed schedule information, critical program and technical milestones and cost data.By using Earned Value and implementing an Earned Value Management System (EVMS), the following questions •can be answered objectively:

Where have we been? �Where are we now? �Where are we going? �

In Earned Value Management, unlike in traditional management, there are three data sources:•the budget (or planned) value of work scheduled �

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the actual value of work completed �the “earned value” of the physical work completed �

Earned Value takes these three data sources and is able to compare the budgeted value of work scheduled with •the “earned value of physical work completed” and the actual value of work completed.US DOD (Department Of Defence), with potential cost overruns running into the billions, since the 1960s it has •utilized a methodology that enables visibility into the cost and schedule progress of large advanced technology projects.Overtime,thatmethodologyhasbeenrefinedandsuccessfullyappliedinternationallyacrossabroadspectrum•ofindustrysectors,includingcommunications,construction,mining,financeandmore,onprojectsofvarioussizes. This methodology is known as “Earned Value Management” (EVM). EVM methodology is now accepted as best practice for project performance management by the peak professional project management body, the Project Management Institute (PMI).The principle of EVM involves the key factors in a project, the scope, schedule and budget, being tied together •from the earliest planning stage. This provides an integrated baseline plan against which actual performance canbemonitored.Itisarobustmethodologythatcanprovidestrongbenefitsforprojectplanning,evaluationand control.Structured EVM methodology ties the budget down to manageable ‘packages’ of work. The progress of the project •isassessedona‘packagebypackage’basis–inotherwordsexactlyhowmuchhasbeenachieved,inhowmuchtime, for how much money. This actual progress is routinely compared with the project’s planning baseline in both the time and cost dimensions. By analysing the source of any schedule and cost variance against the plan, correctiveactionscanbeidentifiedbeforeproblemsbecomemoredifficultandexpensivetoovercome.Many projects are still run purely on a time and cost basis. Progress is measured purely in terms of time and •budget, irrespective of what has actually been achieved or ‘earned’ and in project evaluation terms, is essentially meaningless.On the other hand, the EVM approach gives an accurate picture of the health of projects and provides the basis •forprojectingfutureperformanceand,critically,flagsproblemsasearlyaspossible–enablingtheaddressingof these issues.With the maturity of the EVM approach has come its adoption into a number of standards, most notably ANSI/•EIA 748 in the United States and AS 4817 in Australia, in addition to its endorsement by the PMI. There are also strong moves afoot to move it into the international sphere, under the auspices of ISO.Thisincreasedacceptancehas,however,raisedanothersignificantissuefororganisationswhicheitheruseEVM•management principles; or whose major projects are contracted out to specialist suppliers.

4.4 Performance Targets and IndicatorsPerformance targets and indicators include both qualitative andquantitative specifications for the desired•project results. As performance measures, they indicate how to recognize the successful accomplishment of objectives.Anindicatoroutlineswhatwillbemeasured.Aperformancetargetspecifiesquantityandtime—howmuchand•when. The performance targets/indicators are listed in the second column of the DMF table given below. The key concepts related to indicators are:•

If we can measure it, we can manage it. �All indicators have to be measurable in terms of either quality or quantity and time. �

Indicators have to be practical. Measure only what is important; limit the number of indicators to the minimum •necessarytomeasuretherespectiveresultslevel;andensuretheirmeansofmeasuringiscostefficient.

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DESIGN SUMMARY

PERFORMANCE TARGETS/INDICATORS

DATA SOURCE/ REPORTING

MECHANISMASSUMPTION/RISKS

IMPACTOUTCOME

OUTPUTActivities and Milestones Inputs

Table 4.2 Performance targets/ indicators (DFM)

ProcessThe involvement of stakeholders in the formulation of indicators and setting targets is essential. Reaching •agreement on the targets among followings increases transparency and ownership:

those who design �those who will implement �thosewhoaretobenefit �

Objectivelyverifiableperformancetargets/indicatorsenableprojectsupportersandopponentstoagreeonwhat•the evidence implies.

Sources of indicatorsFor developmental projects, the preferred indicators are those for which data are collected by government •agencies, private institutions, or NGOs or can be obtained from other in-country sources. Comparability may also be a factor in making a choice of indicator. Considerable attention is being paid to this •because comparisons can help in setting targets and stimulate behaviour to strive for better results than those in other countries. International agencies have recognized this and have initiated their own surveys to obtain indicatorsformanyfactorsacrossalargenumberofcountries,e.g.,theWorldBankhasdefined14indicatorsat country level, referred to as “IDA 14.” 14 A leading indicator used in a road project is the roughness index.Research has proven a link between roughness of the road surface and transport costs. Hence, regular monitoring •of the roughness can provide advance information that expected transport cost reductions should occur.Thisdoesnotpreventtheneedtofindasuitablemeasuretojudgetransportcosts,butsuchameasurewilloften•be after the event.

Impact level indicatorPerformance indicators at the impact level specify the expected medium- to long-term impact at program, •subsector, or sector level to which the present project, several other projects and initiatives will contribute.Hence, the impact level indicator includes targets beyond the scope of the project. It is essential that the responsibility •formonitoringandmeasuringtheimpactindicatorsisclearlydefinedduringprojectprocessing.

Outcome level indicatorTheoutcomeorend-of-projectindicatordefinestheproject’simmediateeffectonorthebehaviouralchangeof•beneficiariesandimprovementstosystemsorinstitutions.They are the performance targets that the project takes full accountability to deliver and they are the basis by •which the project will be judged a success or a failure.

Output level indicatorOutputindicatorsaretheeasiesttodefine.Theyspecifythekeytangiblegoodsandservicestheprojectwill•deliver. Theydefinetheprojectmanagement’stermsofaccountabilitythathavetobeachievedbytheendofproject•

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implementation. It is the project management’s responsibility to monitor the performance indicators at output level.

Leading indicatorsA well-designed project will not be limited to performance targets at the end of project implementation, but will •also specify intermediate targets to monitor progress. These so-called leading or process indicators enable the authorities to determine whether the chosen •implementationstrategy—reflectedintheselectedoutputs—iseffectiveandprogressisbeingmadetowardachieving the desired outcome. As an example, increased higher educational attainment will not be achieved in the short run; possible lead •indicators are reduced drop-out rate and increased enrolment rate. In the case of a forestry development program, theoutcome—sustainabletimberproduction—willnotbeevidentfor15–20years;asuitableleadindicatorwould be the survival rate of seedlings at various stages of project implementation.

Proxy indicatorsIndicators are not always practical and can require extensive and expensive data gathering. Measuring the •increases in rural incomes would require a household income and expenditure survey.Proxy indicators may be used instead, such as number of tin roofs or number of bicycles. Other examples include •using newspaper employment advertisements as a signal for trends in employment and monitoring greater consumption of fertilizer as an early signal of greater agricultural production. Generally, proxy indicators may be used in the following conditions:

if the result is not directly observable, e.g., quality of life or organisation development �if the cost of direct measurement is too high �if the result is achieved after a long time (see also leading indicators) �

Performance targetsWhen setting target values for selected performance indicators many points should be considered.• They are as follows:•

Userangesratherthanonevalue,becausethisrecognizesbetterthedifficultyinsettingtargets,e.g.,between �x% and y% is better than quoting y% alone. Achievements anywhere within the upper and lower boundaries ought to be considered “meeting predetermined results.” As an alternative, use the lower level range and state “at least x%.”Refer to results achieved elsewhere. If comparable indicator information is available for benchmarking, �this should guide what is achievable in your project. Progress toward achieving the project outcome needs to be monitored during project implementation. This requires intermediate targets, which can either be determined during the design phase or at the beginning �of project implementation. A leading indicator used in a road project is the roughness index. Research has proven a link between roughness of the road surface and transport costs. Hence, regular monitoring of the roughness can provide advance information that expected transport cost reductions should occur. This does notobviatetheneedtofindasuitablemeasuretojudgetransportcostsbutsuchameasurewilloftenbeafter the event.Set intermediate targets, if possible, that can be reached during the life of the project and immediately after. �This helps check on the feasibility of an end target as well as providing a better basis for assessing the likelihood of success during project implementation. It may be thought that the outcome is only monitored onprojectcompletionandtheimpactsometimeafterward.Thismaynotbetrueforprojectswherebenefitsarise progressively.

There are a number of issues to keep in mind. Those issues are as follows:•Performance indicators help clarify the design summary and can, at times, make it necessary to revise the �design summary statements.

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If necessary and appropriate, indicators may be changed during project implementation. Indicators are �linked to their respective level of the design summary. When changing an indicator, check if the respective results statement is still adequate.Confirmwhathas tobemeasured—impact,outcomeandoutputs.Specifymilestonesforkeyactivities �because these are essential for preparing the implementation schedule and determining the critical path.Outputs, outcome and impact are linked through a “cause-effect” relationship. Hence, their respective �indicators cannot logically be the same.Indicatorsdescribe the results in thefirstcolumnof theDMF; theydonotcause them;e.g., improved �performance of the Inland Revenue department (outcome) is not measured by (i) improved work plans, (ii) completed staff training, or (iii) revised tax collection policy. These merely measure attributes of improved performance and are borrowed from the output level.Temper optimism with realism. Do not assume that everything will go right or set high targets because you �considerthismightfavourablyinfluenceprojectapproval.Pastexperienceinthearea,ifavailable,shouldbe tapped to provide some guide in setting targets.Donotbeinfluencedbythefactthatevaluatorswillusethetargetvaluesinassessingprojectsuccess.Hence, �avoid setting targets very low so they are easily achievable.

4.5 Project RisksProjectsarenotisolatedfromexternaleventsandareinfluencedbyfactorsoutsidethedirectcontrolofthe•projectmanagement.Theseincludepolitical,social,financial,environmental,institutionalandclimaticfactors.Termed assumptions and risks, they are highlighted in the fourth column of the DMF (Table 4.1).Assumptions are positive statements of conditions, events, or actions that are necessary to achieve the results •at each level of the DMF. Risks are negative statements of conditions, events, or actions that would adversely affect or make it impossible to achieve the intended results.

4.5.1 Types of Assumptions and RisksThere are three types of risk and assumptions. They are as follows:

Those that are or can be brought under the control of the project•Those that concern factors in the wider policy and institutional environment and that are dependent on decision •makers elsewhere (e.g., policy environment, institutional capability and political will)Those associated with uncontrollable events or conditions (e.g., political stability, world prices, interest rates •and absence of natural disasters). Assumptions and risks not within the control of the project are explicitly listed in the DMF. Assumptions falling within the control of the project should be taken into account in the project design and are the responsibility of project management. Loan covenants very often have the nature of assumptions—they are outside the scope of the project, but are necessary for its success and are monitored.

4.5.2 Project Risk Management

Risk Management is the name given to a logical and systematic method of identifying, analysing, treating and •monitoring the risks involved in any activity or process.Risk Management is a methodology that helps managers to make best use of their available resources.•The risk management process involves following steps:•

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Fig. 4.3 Risk management process

Establish the contextThe strategic and organisational context in which risk management will take place.•For example, the nature of your business, the risks inherent in your business and your priorities.•

Identify the risksDefiningtypesofrisk,forinstance,‘Strategic’riskstothegoalsandobjectivesoftheorganisation.•Identifying the stakeholders, (i.e. who is involved or affected.•

Analyse the risksHow likely is the risk event to happen? (Probability and frequency?)•What would be the impact, cost or consequences of that event occurring? (Economic, political, social?)•

Evaluate the risksRank the risks according to management priorities, by risk category and rated by likelihood and possible cost •or consequence.Determine inherent levels of risk.•

Treat the risksDevelopandimplementaplanwithspecificcounter-measurestoaddresstheidentifiedrisks.•Document your risk management plan and describe the reasons behind selecting the risk and for the treatment •chosen.Record allocated responsibilities, monitoring or evaluation processes and assumptions on residual risk.•

Monitoring and reviewIn identifying, prioritising and treating risks, organisations make assumptions and decisions based on situations •

Establish the context

Identify the risks

Analyse the risks

Evaluate the risksTreat the risks

Monitoring and review

Communication and Consultation

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that are subject to change, (e.g., the business environment, trading patterns, or government policies).Risk Managers must monitor activities and processes to determine the accuracy of planning assumptions and •the effectiveness of the measures taken to treat the risk.Methods can include data evaluation, audit and compliance measurement.•

Communication and consultationManagers need to communicate and consult to the other members of the project to avoid the risks to appear in the project.

4.6 Project QualityTheInternationalOrganisationforStandardisation(ISO)definesqualityas“thedegreetowhichasetofinherent•characteristicsfulfilsrequirements”(ISO9000:2000)Otherexpertsdefinequalitybasedon:•

Conformancetorequirements:theproject’sprocessesandproductsmeetwrittenspecifications �Fitness for use: a product can be used as it was intended. �

4.6.1 Project Quality Management

Project quality management ensures that the project will satisfy the needs for which it was undertaken•Processes include:•

Quality planningQuality planning includes identifying which quality standards are relevant to the project and how to satisfy •them.Aqualityplansetsoutthedesiredproductqualitiesandhowtheseareassessedanddefinesthemostsignificant•quality attributes.Thequalityplanshoulddefinethequalityassessmentprocess.•Itshouldsetoutwhichorganisationalstandardsshouldbeappliedand,wherenecessary,definenewstandards•to be used.

Quality assuranceQuality assurance includes periodically evaluating overall project performance to ensure the project will satisfy •the relevant quality standards.Quality assurance includes all the activities related to satisfying the relevant quality standards for a project.•Another goal of quality assurance is continuous quality improvement.•

Quality controlThis involvesmonitoring specific project results to ensure that they complywith the relevant quality•standards.The main outputs of quality control are:•

Acceptance decisions �Rework �Process adjustments �

4.7 Six SigmaSix Sigma is a methodology, tool set and mindset that accelerate the implementation of business strategies.•AsdefinedbyDow,SixSigmais:Aqualitydisciplinethatfocusesonproductandserviceexcellencetocreate•a culture that demands perfection— on target, every time.

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SixSigmais“acomprehensiveandflexiblesystemforachieving,sustainingandmaximizingbusinesssuccess.•Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis and diligent attention to managing, improving and reinventing business processes.”

DMAICSixSigmaprojectsnormallyfollowafive-phaseimprovementprocesscalledDMAIC.•DMAICisasystematic,closed-loopprocessforcontinuedimprovementthatisscientificandfactbased.•DMAIC stands for:•Define:Definetheproblem/opportunity,processandcustomerrequirements.•Measure:Definemeasures,thencollect,compileanddisplaydata.•Analyze:Scrutinizeprocessdetailstofindimprovementopportuni.ties.•Improve: Generate solutions and ideas for improving the problem.•Control: Track and verify the stability of the improvements and the predictability of the solution.•

Six Sigma and project managementJoseph M. Juran stated, “All improvement takes place project by project and in no other way”•It’s important to select projects carefully and apply higher quality where it makes sense; companies that use Six •Sigma do not always boost their stock values.As Mikel Harry puts it, “I could genetically engineer a Six Sigma goat, but if a rodeo is the marketplace, people •are still going to buy a Four Sigma horse.”Six Sigma projects must focus on a quality problem or gap between the current and desired performance and •not have a clearly understood problem or a predetermined solution.

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SummaryA project is a temporary and one-time endeavour undertaken to create a unique product or service. The •management of these systems is often very different and requires varying technical skills and philosophy, hence requiring the development of project management. Projectperformancemanagementprocessiscomplexandisinfluencedbylargenumberoffactorslikestructure,•systems, nature and volume of business and risks. Major components of project performance management process include measuring all critical components, a •good reporting system, an accountability structure and managing things that go wrong.The DMF is a simple but powerful design and management tool. It helps build consensus with stakeholders •and create ownership of the proposed project. It organises thinking and relates activities to expected results. It provides a structure for monitoring and evaluation where planned and actual results can be compared. The process of consensus building refers to the steps involved in designing a project - stakeholder analysis, problems and objectives analysis and analysis of alternatives.The impact, also termed goal or longer-term objective, refers to the sectoral, subsectoral, or in some cases •national objectives. The project outcome is the key anchor of the project design. It describes what the project intends to achieve by the •end of project execution and by doing so makes it clear what development problem the project will address.Outputs are the physical and/or tangible goods and/or services delivered by the project and describe the scope •of the project.Activities are the groups of tasks carried out using project inputs to produce the desired outputs.•Inputs are the main resources required to undertake the activities and to produce the outputs.•Measurement and evaluation of project performance require a control process consisting of the four steps that •includes setting a baseline plan, measuring progress and performance, comparing plan against actual and taking action. Earned value is one of the techniques as a way to more accurately measure and manage project performance •to enhance control. It allows simultaneous measurement of budget and schedule performance and captures theirinterrelationshipbetterthananyothermethod.Itspowerliesinmeasuringtheefficiencyatwhichworkisproduced, forecasting the resulting cost-at-completion while there is still time to recover and pin-pointing the source of project problems.Performance targets and indicators include both qualitative andquantitative specifications for the desired•project results. As performance measures, they indicate how to recognise the successful accomplishment of objectives.Risk management is the name given to a logical and systematic method of identifying, analysing, treating and •monitoring the risks involved in any activity or processProject quality management ensures that the project will satisfy the needs for which it was undertaken. Quality •assurance includes periodically evaluating overall project performance to ensure the project will satisfy the relevant quality standards.SixSigmais“acomprehensiveandflexiblesystemforachieving,sustainingandmaximisingbusinesssuccess.•Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis and diligent attention to managing, improving and reinventing business processes.”

ReferencesRohit Garg, Risk Management, P 3 21. Available at <• http://www.authorstream.com/Presentation/Rohit_IITTM-296923-risk-management-ravi-mohan-business-finance-ppt-powerpoint/ >Accessed on 18th January, 2011.Project Quality Management, Information Technology, Project Management, Fifth edition, P 13 37, Available •at < http://userhome.brooklyn.cuny.edu/irudowsky/PM/Schwalbe/lectures/Schwalbe-08ProjectQuality.ppt > and Accessed on 18th January, 2011.

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Recommended ReadingProject Performance Management Guide• , Material Policy and Services Branch, Defence Material Organisation, November 2003, Edition 011.

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Self Assessment

__________ provides the informational and communication base for managing the performance of a project.1. Reporting systema. Accountability structureb. Six Sigmac. DMFd.

Which of the following statement is true?2. Projectperformancemanagementprocess iscomplexand is influencedby largenumberof factors likea. money, systems, nature and volume of business and risks. Projectperformancemanagementprocess iscomplexand is influencedby largenumberof factors likeb. structure, nature and volume of business and risks. Projectperformancemanagementprocess iscomplexand is influencedby largenumberof factors likec. structure, systems, nature and volume of business and risks. Projectperformancemanagementprocess iscomplexand is influencedby largenumberof factors liked. structure, systems, nature and volume of business and quality.

____________ provides a structure for monitoring and evaluation where planned and actual results can be 3. compared.

Reporting systema. Accountability structureb. Six Sigmac. DMFd.

The_________ defines thework in discreteworkpackages that are tied to deliverables andoriginations4. units.

reporting systema. WBSb. Six Sigmac. DMFd.

Which of the following techniques is used as a way to more accurately measure and manage project performance 5. to enhance control?

Reporting systema. Taking actionb. Risk managementc. Earned valued.

______________ is a systematic approach to the integration and measurement of cost, schedule and technical 6. (scope) accomplishments on a project or task.

Earned value managementa. Risk managementb. Performance indicatorsc. Performance targetsd.

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The ________ also termed goal or longer-term objective, refers to the sectoral, subsectoral, or in some cases 7. national objectives.

inputa. outcomeb. outputc. impactd.

Which of the following statement is true?8. Outputstatementstypicallydescribethechangeofbehaviourofthebeneficiariesusingtheoutputsofthea. project.Outcomestatementstypicallydescribethechangeofbehaviourofthebeneficiariesusingtheinputsoftheb. project.Outcomestatementstypicallydescribethechangeofbehaviourofthebeneficiariesusingtheoutputsofthec. project.Inputstypicallydescribethechangeofbehaviourofthebeneficiariesusingtheoutputsoftheproject.d.

________ is a methodology, tool set and mindset that accelerate the implementation of business strategies.9. Reporting systema. WBSb. Six Sigmac. DMFd.

Which of the following includes identifying which quality standards are relevant to the project and how to 10. satisfy them?

Quality assurancea. Quality controlb. Quality systemc. Quality planningd.

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Chapter V

Project Documentation

Aim

The aim of this chapter is to:

explore the meaning and nature of project documentation•

understandtheneedforefficientandeffectivestoringandsharingofdocuments•

investigate the different types of documents•

explore the purpose of project documentation•

Objectives

The objectives of this chapter are to:

understand the importance of document control•

examine the typical documents that are prepared by project team members•

determine the levels of documentation•

classify the project documents based on the size of project•

Learning outcomes

At the end of this chapter, the students will be able to:

discuss the importance of project documentation •

explain the different types of documents and the content to be present in it•

state the document control systems•

understand • the purpose of project documentation

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5.1 IntroductionProject documentation is not created, instead, it should be more about creating meaningful plans and if that means documentation, then it should also add value and be of good quality and quantity. In order to manage a project effectively some documentation is required. The actual amount of documentation required is primarily dependant on the size and complexity of the project. This Fact Sheet seeks to provide guidance as to the type of documents you may need to develop, as well the level of detail required.

What is documentation?As per Chambers dictionary, documentation means a paper or other material thing affording information, •proof, or evidence of anything. As a verb it means preparation, setting forth or use of documentary evidence and authorities.Informationcanbestoredinoneoftwostates–structuredorunstructured.Structureddatareferstoinformation•thatisstoredinrepetitiveandstructuredformat.Structureddatareferstofiles,tables,databases,datawarehouses,etc. This type of data is easily stored and accessed by computer programs.On the other hand, unstructured data is typically in a format that is easier for a human being to understand but •harder to manipulate automatically. Unstructured data includes documents, images, graphics, video, audio, etc. Unstructured data can be increasingly manipulated by a computer, but the basic understanding of the content is still best performed by people.Although documents are the primary concern for most project teams, the concept of document management •can be broadened to include any type of unstructured data as described above. In other words, if your project generatesaudioandvideofiles,youcanusethesesametechniquesregardingnamingconventions,indexing,storage in the repository, etc.

5.2 Project DocumentationProject documentation is developed to support the project activities, often referred to as “products”, as such •documents are deliverables of the project management process. These products help to ensure the smooth progress of plans and provide a clear audit trail of decisions taken.Project documentation is an agreement, tracking and communication tool for the business owner, project sponsor, •steering committee members, key stakeholders, project manager and project team members. Documentation is developed and used during all project phases as a reference point, for reporting and for ongoing project management.Project management documentation provides both a record of decisions and a means of documenting assumptions •on which these decisions are based. Creating the documents also can help the project team focus on the tasks requiredataparticularstageinaprojectandshouldnotbeviewedassuperfluoustotheproject.Such documentation is usually generated by the project manager and team and approved by the Project Steering •Committee. It is important to remember that it is the project processes that are the focus - documentation is not an end in itself.

5.3 Overview of DocumentationThis chapter describes the processes and techniques associated with the storing and sharing of electronic and •paperdocuments.Ifaprojectislarge,itbecomesdifficulttoshareinformationbetweenalltheteammembersand stakeholders. This is especially true when more than one person works on large deliverables. If the project manager does not think about these document management processes ahead of time, the project team will end up with problems. This generally results in confusion and extra effort and re-doing work that was already completed.In general, the idea of document management is similar to what is done with computer source code management. •The management of source code should be done under the direction of a software change management tool or adatabasethatkeepstrackofownershipandversioning.Withoutthesetypesoftools,itwouldbeverydifficultto develop and support large software projects. Similarly, documents should also be managed and controlled - especially on large projects.

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A couple of examples will help explain this concept. Let’s say your project is going to create many documents •thatneedtobestoredandshared-forinstance,theprojectdefinition,issueslog,businessrequirements,testingplan, etc. After a document is created, the team members need to know where it should be stored. Depending onyoursoftwareandsophistication,thedocumentmightgointoanetworkfilefolder,afilefolderonyourharddrive, a document management software package, etc. After the document is created, you must know who can have access to it. Most documents might be accessible to the entire team, but you only want them to be able to viewthedocuments–notchangethem.Youshouldcomeupwithacommonnamingconventionfortheoriginaldocumentandanyrevisions.Forexample,ifyouupdatetheprojectdefinition,shouldthechangeddocumentreplace the older version? Perhaps you should save the original document and then designate the new document version 2. These are all part of your document management procedures.Let’salsolookatstatusreports.Youshoulddeterminethenamingconventionsofthestatusreportsaheadof•time. If every team member sends a status report to the project manager, it will not be long before the project manager will have dozens or hundreds of status reports. If the format of the document name is ‘Date / Name / Status Report’ the reports will sort in chronological order. If the document name is ‘Name / Status Report / Date’ they will all sort by person. Perhaps the project manager should just delete the status reports after reviewing them. All of these questions are components of document management.Document management considerations are trivial for small projects. For large ones, these processes need •to be planned ahead of time or else confusion, uncertainty and extra work will occur when the project is in progress.The following areas should be considered part of an overall document management plan.•

Determine where to store documents. This is a no-brainer. The project team should have a common area, or repository, for storing documents.

Definealogicalandphysicaldocumentorganisationalstructure.Onceyouknowwhereyouwillstoredocuments,•youshouldalsodeterminethedirectoryorfolderstructureanddefinewhattypesofdocumentsgowhere.Definenamingstandards.Don’tleteveryonecalldocumentsanythingtheywant.Providethenamingconventions•so that you can instantly tell what type of information is in each document.Determine if some documents need versioning. The project manager should determine whether multiple versions •of documents will be saved or if just the latest version will be saved. If multiple versions are saved, you’ll need some type of versioning technique to make sure people know what version they’re reading.Determineif(andhow)youwilltrackdocumentapprovalstatus.Thisletsyouknowifadocumenthas“final,”•“draft” or “awaiting approval” status. Again, if you don’t manage the documents, people will read drafts and thinktheyhavethefinalversion.Definestandarddocumentformats.It’seasiertoreadandcreatedocumentsiftheyallhaveastandardformat,•fonts, headers, footers, etc.

5.4 Purpose of Project DocumentationThe project documentation needs to be developed for following reasons:

To obtain agreement on project outcome, scope and outputs.•To manage expectations of the business owner, project sponsor, steering committee members, key stakeholders, •project manager and project team membersTo ensure a smooth transition to a new project manager or new team member, retaining critical project •informationTo create a reference point for discussions as the project progresses •To identify when the project needs to be replanned •Todefineclearlypotentialprojectrisksandmanagemitigationstrategies•To keep the project team focussed on what you are trying to achieve •To use in measuring the success of the project•

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5.5 Levels of DocumentationThere are generally three levels of documentation. They are as follows:

A corporate level at which the steering committee takes ownership of and responsibility for, a project business •plan - other documentation included at this level is a feasibility report and/or a business case and any project funding submissions to senior management.A business level at which the manager of the business unit (the business owner(s)) takes responsibility for an •outcome/benefits,realizationplanandotherdocumentationrequiredtosupportthetesting,traininganduseoftheprojectoutputstoachieverequiredoutcome/benefits.The project level at which the project manager and team take responsibility for the development of a project •execution plan and various other project documents used to produce the outputs/deliverables.

5.6 Typical DocumentsClassification1The full set of project documentation can be a heavy load for a small project. However, small projects also demand a certain level of documentation.

The Project Manager should consider which documents are required, based on decisions regarding the project size and look at using scaled-down versions for small projects. Thus, documents are categorised based on the size of project. They are as follows:

Small project documents•Medium project documents•Large project documents•

Classification2The documents are also categorised in following ways:

Core documents are those documents that include minimum information.•Recommended documents that may be created to enhance the project management.•Optional documents are developed when required.•

Classification3The documents listed are also categorised as:

Major documents (describe the management and control of the project)•Other documents•Smaller templates (assist in the management of the project, for example the issues register is used to help •manage any project issues).

5.6.1Classification1and2Small project documentsThe small project business plan does include such things as the project execution plan, the outcome realisation plan, risk management plan, quality management plan, etc.

Phase Major Documents Other DocumentsInitiate

SetupProject proposal(O)

Manage Project Business Plan (C)

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Risk register(R)Project Status Report (R)Issues Register (R)Communication Strategy/ Plan (O)Training Strategy (O)

Finalise Project Review & Closure Report (C)

*Note:Core=(C),Recommended=(R),Optional=(O)

Table 5.1 Small project documents (source: http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0003/78168/Project_Documentation_Fact_

Sheet.pdf )Medium project documentsThe medium project business plan does include such things as the project execution plan, the outcome realisation plan, risk management plan, quality management plan, etc.

Phase Major Documents Other documents/ Proformas

InitiateSet up

Project Proposal (R) Business Needs Analysis (O)Project Business Case (C) Project Initiation Plan (O)

Feasibility Study/Report (O)

Manage

Project Business Plan (C) Project Status Report (C)Project Execution Plan (R) Risk Register(C)Outcome Realisation Plan (C) Risk Management Plan (C)

Issues Register (C)Stakeholder Management Plan (R)Organisational Change Management Plan (O)Implementation Plan (O)Communication Strategy/ Plan (O)Quality Management Plan (R)Marketing Plan( O)Training Strategy (O)Handover Plan (R)Project Phase Review (O)

Finalise Project Closure Report(C) Project Review & Evaluation report (C)*Note:Core=(C),Recommended=(R),Optional=(O)

Table 5.2 Medium project documents (source: http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0003/78168/Project_Documentation_Fact_

Sheet.pdf )Large project documents

Phase Major Documents Other Documents/ ProformasInitiate Project proposal (R) Business Needs Analysis (O)

Set up Project Business Case (C) Project Initiation Plan (O)Feasibility Study/ Report (O)

Manage Project Business Plan (C) Project Status report(C)Project Execution Plan(C) Risk Register(C)Outcome Realisation Plan(C) Risk Management Plan (C)

Issues Register(C)Stakeholder Management Plan (C)Organisational change Management Plan(R)

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Implementation Plan(O)Communication Strategy/ Plan(R)Quality Management Plan(R)Marketing plan(O)Training Strategy(O)Handover Plan(C)Project Phase Review(R)

Finalise Project Closure report(C) Project Review &Evaluation(C)

Table 5.3 Large project documents (source: http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0003/78168/Project_Documentation_Fact_

Sheet.pdf )

5.6.2Classification3

Major documents •Other documents•Proformas•

Major documentsProject proposal

Description Introducestheproject,providingsufficientinformationforadecisionto be made as to whether it should proceed to the next step, eg preparation of a Business Case

Purpose Converts an idea or policy into a proposal for a Project

Contains Basic details of the Project aims and the resources required, as a minimum, for the next step

When is it prepared Oncetheconcepthasbeenidentified

Who prepares and maintains it Aresponsibleofficer

Target audience Cabinet, senior management or line manager who have the ability to approve and resource the Project

Updated how often Once approved it should not be changedWho owns/ is responsible for the document The Project Sponsor

Who approves the document Cabinet, senior management or line manager who allocates resources for the next step

What is its lifespan Fixed for the life of the projectComments This is often overlooked, it captures the original idea

Business case

Description Definestheprojectandusedtoobtainapproval,includingresourcing

PurposeA once-off, start-up document used by senior management to assess thejustificationofaproposedprojectorthedevelopmentoptionsforaproject that has already received funding

Contains Basic project details of what the objectives are, explores options and the resources required

When is it prepared After the Project Proposal has been approved or once the project concept hasbeenidentifiedandithasbeendeterminedthatitisworthpursuing

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Who prepares and maintains it AProjectOfficer

Target audience Budget Committee, Senior management or Line Manager who have the ability to approve and resource the Project.

Updated how often Should not be changed once it has been approvedWho owns/ is responsible for the document The Project Sponsor

Who approves the document Steering Committee, senior management or line manager who allocates resources for the Project

What is its lifespan Fixed for the life of the project

CommentsThe Budget Committee may or may not approve the business case. Preparation may require the development of a project initiation plan for deliveringthefinalbusinesscase.

Project business plan

Description DefinesthemanagementoftheProject

PurposeThe Budget Committee may or may not approve the Business Case. Preparation may require the development of a project initiationplanfordeliveringthefinalBusinessCase.

Contains Details how the Project is going to be managedWhen is it prepared Once the Project has been approved and resources allocatedWho prepares and maintains it The Project Manager and Project Team

Target audience All who have an involvement in the management of the Project eg Steering Committee, Business Owner, Project Team

Updated how often Throughout the Project, as required, eg the end of a major phaseWho owns/ is responsible for the document The Steering CommitteeWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released, as requiredComments It should be aligned to existing documents

Project execution plan

Description The Project Delivery Schedule

Purpose The ‘road map’ used by the Project Team to deliver the agreed Project outputs

Contains Projectactivitiesandtaskswithspecifictimingsandtaskallocations

When is it prepared Once the Project Business plan has been approvedWho prepares and maintains it The Project ManagerTarget audience The Project Sponsor and Project TeamUpdated how often Throughout the life of the projectWho owns/ is responsible for the document The Project managerWho approves the document The Project Sponsor, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is updated

Comments Normally this is not approved by the Steering Committee as it is too detailed

Outcome realisation plan

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Description The plan for the achievement of the outcomes

PurposeDescribes how the Project outputs will be utilised by the Business Owner in order for the outcomes of the Project to be realised

ContainsProject outcomes, how these are to be utilised and measured. May also include how outputs will be managed after Project closure.

When is it prepared After the Project Business Plan has been approved

Who prepares and maintains it The Business Owners (in some cases the Project Manager does this on the behalf of the Business Owner)

Target audience The Steering Committee and Business Owner(s)Updated how often As required, in particular when major outputs are deliveredWho owns/ is responsible for the document The Steering Committee and Business Owner(s)Who approves the document The Steering Committee and Business Owner(s)

What is its lifespan Versions should be released when it is updated, but should be finalisedpriortodeliveryoftheoutputs

Comments May also include organisational change management details

Project closure report

Description Represents the formal ‘ending’ or termination of a Project

Purpose Toprovideconfirmationthatoutputshavebeendeliveredand that project documentation has been completed

Contains EffectivelyitisafinalProjectManager’sStatusReport

When is it prepared

With a successfully completed Project, when all of the workoftheProjectisfinished,alloftheoutputshavebeendelivered and accepted by the Business Owner(s) and the target outcomes have been or are being generated

Who prepares and maintains it The Project Manager

Target audience The Steering Committee, Senior management or Line Manager

Updated how often Should not be changed once it has been approvedWho owns/ is responsible for the document The Steering Committee, or Project Sponsor

Who approves the document The Steering Committee, senior management or line manager

What is its lifespan The end of project

Comments Thistemplateisspecificallydesignedtobeusedinclosingamedium to large sized project

Project review & closure report

Description Represents the formal ‘ending’ or termination of a Project, including a ‘tidy up’ of any loose ends

PurposeTo assess the success of the Project, inform future Projects, provideconfirmationthatoutputshavebeendeliveredandthat project documentation has been completed

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Contains Effectivelyitisafinalprojectmanager’sStatusReport.

When is it prepared

With a successfully completed Project, when all of the workoftheprojectisfinished,alloftheoutputshavebeendelivered and accepted by the Business Owner(s) and the target outcomes have been or are being generated

Who prepares and maintains it The Project ManagerTarget audience The Steering Committee, senior management or line managerUpdated how often Should not be changed once it has been approvedWho owns/ is responsible for the document The Steering Committee, or Project Sponsor

Who approves the document The Steering Committee, Senior management or Line Manager

What is its lifespan The end of the Project

Comments The Steering Committee, Senior management or Line Manager

Project phase review

Description A review of a phase of a larger project

PurposeTo verify that the phase has been completed successfully, with the assigned outputs delivered and to ensure the project is ready to proceed with the next phase

Contains An analysis of how successful the phase was in meeting its targets

When is it prepared At the completion of a phase prior to the start of the next phaseWho prepares and maintains it Project managerTarget audience Steering committee, senior managementUpdated how often Should not be changed once it has been approvedWho owns/ is responsible for the document Project sponsorWho approves the document The steering committee, senior management or line managerWhat is its lifespan Applicable to the phase reviewed onlyComments Also used to inform future phases of the project

Project review & evaluation report

Description A review and evaluation of a larger project

Purpose To verify that the project has been completed successfully, with the assigned outputs delivered

ContainsAn analysis of how successful the project was in meeting its outputs and outcomes, including such things as lessons learnt, time and budget

When is it preparedAt the completion of a project, once the outputs have been handed over to the business owners and outcomes can be measured or at the completion of a stage in the project

Who prepares and maintains it Project manager

Target audienceAt the completion of a project, once the outputs have been handed over to the business owners and outcomes can be measured or at the completion of a stage in the project

Updated how often Should not be changed once it has been approvedWho owns/ is responsible for the document Project sponsor

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Who approves the document The steering committee, senior management or line managerWhat is its lifespan Indeterminate, as lessons learnt may be of value in the futureComments Should feed back into the organisation to inform future Projects

Other documentsBusiness needs analysis1.

Description An analysis of the business processes

Purpose To identify business processes and match them against the business needs

Contains To identify business processes and match them against the business needs

When is it prepared Either as part of the initial analysis prior to the approval of the project or during the project

Who prepares and maintains it SuitablyskilledprojectofficerorconsultantTarget audience The steering committee, senior management or line managerUpdated how often As requiredWho owns/ is responsible for the document Project sponsorWho approves the document The steering committee, senior management or line manager

What is its lifespan Versions should be released as required. If maintained the document may be of use well after the project has been closed

Project initiation plan (using project business plan template)2.

Description Outlines what is to occur in the initiation phase of a project

PurposeWhere a project is being completed that may form part of a larger project, e.g., a project to develop a business case, or where an output is to be delivered from this initial phase

Contains Details on how the project or activities are going to be managedWhen is it prepared Once the project has been approvedWho prepares and maintains it Project managerTarget audience The steering committee, senior management or line managerUpdated how often As requiredWho owns/ is responsible for the document Project sponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions to be released as required

Comments

May be used instead of a Project Business Plan where a large ProjectmayflowfromthisProjectanddefinesonlythecurrentProject or phase, eg to develop a Business Case. Also as an alternative to the Project Business Plan in small Projects.

Feasibility study/report3. Description Explores whether the project is feasible

Purpose To explore all the issues associated with a proposed Project and determine whether it is feasible

Contains An examination of the Project including a detailed examination of the issues associated and whether the Project is feasible

When is it prepared An examination of the Project including a detailed examination of the issues associated and whether the Project is feasible

Who prepares and maintains it ProjectOfficer

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Target audience The Steering Committee, Senior management or Line ManagerUpdated how often Once approved it is not updatedWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan The Life of the ProjectComments The Steering Committee, Senior management or Line Manager

Risk management plan4. Description Describes how risks are to be managed in the Project

Purpose To attain a common understanding as to how risks are to be managed

ContainsDetails of the processes to manage risks, for example the risk review frequency and process of review, responsibilities and accountabilities

When is it prepared Once the Project has been approved and resources allocatedWho prepares and maintains it Project ManagerTarget audience The Steering Committee, Senior management or Line ManagerUpdated how often As necessaryWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan The life of the ProjectComments The Steering Committee, Senior management or Line Manager

Stakeholder management plan5. Description A listing of the stakeholders and how they are to be engaged

PurposeTo ensure all stakeholders who are affected by or who may affect the Project are managed to maximise their positive impact and minimise their negative impact

Contains A list of stakeholders and what actions are being undertaken to manage them

When is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project Manger and Project Team Target audience Steering Committee, Project Sponsor and Project TeamUpdated how often As requiredWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is required

CommentsFor large Projects it may be a separate document. For small to medium Projects, the Stakeholder Management Plan can be detailed in the Project Business Plan.

Organisational change management plan6.

Description The plan to manage change within the organisation(s) required to achieve the Project outcomes

Purpose To manage the requirements for change required successfully implementing the outputs and achieving the desired outcomes

Contains Identifiedthechangesrequired,whoisimpacted,whenthechanges are required and how they are to be implemented

When is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project Manager, Project Team and Business Owner (s)

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Target audience Steering Committee and Project SponsorUpdated how often As required, eg as major outputs are deliveredWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is updated

Comments Over time authorship transfers to the Business Owner. Can be documentedaspartoftheOutcome/BenefitsRealisationPlan.

Implementation plan7. Description The plan for the implementation of the Project outputsPurpose To enable the implementation of the outputs to be managed

Contains Details on what, how, when, who, etc are required to implement the outputs

When is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project Manager and Project TeamTarget audience Steering Committee and Project SponsorUpdated how often As requiredWho owns/ is responsible for the document Project Sponsor

Who approves the document The Steering Committee, Senior management or Line Manager

What is its lifespan Versions should be released as it is updated

Comments ThismaybeincludedaspartoftheOutcome/BenefitsRealisation Plan

Communication strategy/plan8. Description The plan detailing communication with all stakeholders

Purpose To ensure all stakeholders are engaged and to maximise support for the Project

Contains A list of all stakeholders and what communication strategies will be undertaken to manage them

When is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project manager and Project TeamTarget audience Steering Committee and Project SponsorUpdated how often As requiredWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is updatedComments Can form part of the Stakeholder Management Plan

Marketing plan9. Description Similar to the Communication Plan but for a general audiencePurpose To ‘sell’ the ProjectContains DetailsofstakeholdergroupsandhowtheywillbeinfluencedWhen is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project Manager and Project TeamTarget audience Steering Committee and Project SponsorUpdated how often As requiredWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is updated

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Comments Can form part of the Stakeholder Management Plan

Training strategy10. Description The plan to train the users of the Project outputs

Purpose To ensure that the Business users have the requisite skills to utilise the Project outputs

Contains Details on the training requirement for the various user groups and how and when that training is to be carried out

When is it prepared Once the Project Business Plan has been approvedWho prepares and maintains it Project Manager and Project TeamTarget audience Steering Committee, Project Sponsor and Project TeamUpdated how often As requiredWho owns/ is responsible for the document Project Sponsor

Who approves the document The Steering Committee, Senior management or Line Manager

What is its lifespan Versions should be released as it is updated

CommentsThis details the transfer of ownership of the outputs from the Project Team to the Business Owner. Can form part of the Outcome/BenefitsRealisationPlan

Project status report11. Description A report describing current status of the Project

Purpose To report to appropriate people on actual progress against planned progress

Contains Details on progress against milestones, the current status of risks, issues, budget and recommendations

When is it prepared Prior to Steering Committee meetings or meetings with the Line Manager

Who prepares and maintains it Project ManagerTarget audience The Steering Committee, Senior management or Line ManagerUpdated how often Prior to Steering Committee meetingsWho owns/ is responsible for the document Project SponsorWho approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan The Steering Committee, Senior management or Line ManagerComments This is normally prepared at a particular date

Risk register12. Description A listing of all risks and their current statusPurpose To manage the risks associated with the Project

Contains A list of all risks and details of how those risks are being managed

When is it prepared At the start of the ProjectWho prepares and maintains it Project manager and Project teamTarget audience Steering Committee, Project Sponsor and Project TeamUpdated how often RegularlyWho owns/ is responsible for the document Project Sponsor Who approves the document The Steering Committee, Senior management or Line ManagerWhat is its lifespan Versions should be released as it is updated

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CommentsShouldbeupdatedfortnightly,oratleastmonthly,toreflectanychanges in the risk status. Should be maintained separately to the Project Business Plan.

Issues register13. Description A list of all issuesPurpose Issues Register

Contains A list of all issues, details of how these issues are being managed and their current status

When is it prepared At the start of the projectWho prepares and maintains it Project Manager and Project Team Target audience Steering Committee, Project Sponsor and Project TeamUpdated how often Regularly, as a minimum as issues ariseWho owns/ is responsible for the document Project SponsorWho approves the document Not applicableWhat is its lifespan Versions should be released as it is updatedComments This is an internal working document

5.7 Project ArchivesA project archive is a complete set of indexed project records for archiving by the appropriate parties. After the •projectisfinished,theprojectmanagershouldsetupanarchivethatcontainslessonslearned–thatis,learninggained from the process of performing the project. These lessons are simply actions that occur during the project thatinfluencetheoutcomeoftheproject.Recordingtheselearningsduringandaftertheprojecthelpsprojectmanagers working on subsequent projects with similar tasks.Lessons learned need not be very elaborate. These can be as simple as making sure that you contact a certain •vendor at least ten days before delivery because you have learned from the past that the vendor has a tendency to be late lessons learned may also include information on how the organisation works or how individual managers work with projects. If you note that one manage wants reports in a certain format, it may be worthwhile to pass this information to other project managers in the company.Lessons learnt should be written down at the time they occur. During a project, some time for lessons learned •should be set-aside at each status meeting. Simple lessons learned can be recorded in the meeting itself, while the complex ones may require that everyone get together to discuss what information they have that they feel would be valuable to pass along to the entire team.Itisgoodtokeepaseparatefileforlessonslearned.Lessonslearnedneedtobegatheredfromeveryoneonthe•project. Lessons learned can also be recorded in project logbook used for recording daily events on the project. Everyone on the project team should be encouraged to keep a note of lessons learned.

5.8 Document Preparation and DistributionDocuments must be prepared in correct and uniform manner. On many occasion project team members have •different ideas on how documents should be prepared. Sometimes ideas applicable to previous projects may not be compatible with the requirements of current project and there may be a need to make major changes. A uniformapproachshouldbeagreed,definedandmadeknowntoallbeforeworkstarts.Uniform document presentation helps to avoid errors and facilitate checking, allowing more use of standard •checkingroutines.It isdifficultandtimeconsumingtocheckdocumentswhosecontentsaredistributedindifferent sequences or patterns.Identificationofdocumentsshouldbestandardizedandcontrolledusinglogicalprocedures.Complexnumbering•systemshouldbeavoided,asthesetendtoconfuseratherthanassistinidentificationandretrievalofdocuments.The simpler the system, the easier it is to operate and control. Numbering systems should, as minimum, contain the following things:

Contract or project number �

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Document type �Document serial number �Document revision status �

Document approval procedures need to be formalized and all those carrying the authority to give at each stage need •to be named. It is desirable that specimen set of signatures or initials should be registered in project records.Document distribution procedures should be established to identify who gets what. More importantly the •procedures need to be based upon the principle of who really needs what. Many people may wish to be included on the distribution list, whether or not they need the information. Involvement by those who have no need to get involved creates confusion.A formalised procedure for distribution is also essential to ensure not only that each person needing the information •appearsonthelist,sothathegetstheminthefirstplace,butalsotoensurethattheyareintherightquantities(number of sets), of the correct form (e.g. hard copy, CD, or e-mail) and that initial issues are backed up by all revisions

5.9 Document Control5.9.1 What is Document Control?

It is important within projects to ensure that the ‘right’ people have the ‘right’ copy of the ‘right’ document at the •‘right’ time. For example, have you ever found yourself in a meeting where the attendees each have a different document, or asked yourself how you can be sure that all persons attending the meeting and your team members are referring to the same release of a Project Business Plan?Alldocuments,whether electronicorhard copy,need tobeuniquely identifiable. Inmost cases, it is also•necessary to track the changes that occur to the document and record its distribution throughout the document’s development and subsequent revision(s).Document control includes:•

Use of version numbers on documents (version control) �Maintaining a history of the development of versions (build status) �Use of numbered copies of documents (controlled documents) �Maintaining a list of recipients for distributed copies (distribution list) �

Documentcontrolmakescertainthatprojectdesignanddocumentation,includingdrawings,specifications,•budget and schedule, are maintained and revised throughout the phases of the project with the required standard of security, integrity, quality and currency.Document control tracks actions to ensure that changes to the baseline documents are evaluated and approved •and that the integrity of the baseline documentation is maintained as changes are executed.Not all documents require the same level of document control. The level of document control required corresponds •with the purpose and ownership of the document. For example, the project business plan that is owned by the Steering Committee may require full document control, while an issues register owned by the project team may needlittledocumentcontrolbeyondthedateitwaslastmodified.This section explains the value of using document control procedures within a project and how to implement them.•

5.9.2 Importance of Document Control

Document control would not be necessary if documents were only prepared and released once during a •project. This is not generally the case, as most documents go through various iterations before being endorsed for •distribution. The same document may be revised and re-released a number of times.The importance of using document control is to avoid a number of pitfalls that can occur within a project. Those •are as follows:

difficultyinreadilydeterminingthedifferencebetweendocuments �

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superseded documents remaining in circulation �key stakeholders referring to, or working from an out-of-date document �not knowing who has been issued with copies of the documents �no audit trail for changes to key project documents �

5.9.3 Document Control SystemsTheprojectmanagershouldmakecertainthattheproject’sdocumentcontrolprocessidentifieswhoontheprojectmanagement team has the authority and accountability for ensuring that each of the baseline documents is kept currentincompliancewiththeproject’sconfigurationmanagementanddocumentcontrolprocedures.

Records distribution, storage and retrievalRecords management controls the distribution, storage and retrieval of project records in both hard copy and •electronic form.The project manager should ensure that incoming and outgoing correspondence and documents are transmitted •through the project’s records management specialist, who can use records database software to computer index the records. Working copies of records can be retrieved by records management for use by project staff. Records management should securely store original copies and ultimately dispose of the records according to the Agency’s and the project’s records retention schedule.Theprojectmanagershouldnotallowprojectstafftokeeptheirownfilesoforiginalprojectdocumentsor•correspondence.Recordsmanagementshouldmaintaintheproject’sactiveandhistoricalrecordsandfilesinordertoprovideefficientaccessandcompleteaudittrailsofthecurrentstatusandrecordofrevisionstotheproject design and baseline documentation and associated correspondence.Records management’s correspondence control system should provide convenient access to records and make •certaintherecordsaresecureandtheappropriatelevelofconfidentialitymaintained.Thesystemshouldbesetup to comply with the agency’s administrative, legal and historical record requirements and provide an audit trail and documentation of project activities.Records management can also be used to establish an accessible project library of technical documents, •standards, baseline documents, industry codes and standards, studies and other general information pertaining to the project.Recordsmanagementshoulddeveloparecordsstorageprogramthatidentifiesandprotectsprojectdocumentation•critical to project completion and the ongoing operation of the completed project. The vital records storage program needs a procedure for archiving critical documents and their disaster protection.

Version controlImportant documents like the project plan and the user requirement documents may change throughout the project •as new information emerges. The consequence of any member of the project team using the wrong version of these documents can result in errors, quality problems, delays and cost overruns. For example, suppliers could be told wrong delivery dates or the wrong features could be designed into the product.Therefore documents need to have a version control system to ensure that everyone is always using the current •version of the project information.Versioncontrolprovidesforuniqueidentificationofdocuments,whetherelectronicorhardcopyandassistswith•theeasyidentificationofeachsubsequentversionofadocument.Theversionnumberchangesasthedocumentis revised allowing released versions of a document to be readily discernable from draft versions.There are many document management softwares that include version control, but most projects can get a long •way with some simple manual systems. On most projects there are only a small number of documents that matterandmightbechanged.Allsuchdocumentsmustbeidentifiedandmustbesubjectedtoversioncontrolsystem.Documentsmaybe identifiedbyaversionnumber, startingatoneand increasingbyone foreach release.•Ideally,theversionnumbershouldappearonthefirstpageofthedocumentandwithinthefooterofeachpage.Documentationshouldbeidentifiedasfollows:

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A release number (and a revision letter if in draft) �The original draft shall be Version 0.A �Subsequent drafts shall be Version 0.B, Version 0.C etc. �The accepted and issued document is Release 1.0 �Subsequent changes in draft form become Version 1.0A, 1.0B etc. �The accepted and issued second version becomes Version 1.1 or Version 2.0, as determined by the author �based on the magnitude of the changes (minor or major).

On this basis a document, which is presented to a Steering Committee for endorsement, would include a revision •letter such as Version 0.A. After receiving endorsement, a copy of the document (with any approved amendments) would be created without a revision letter, in this case as Version 1.0. Wherever the version number appears in the document (i.e., front page, release notice, footer etc.) it should be updated. If controlled copies are to be distributed (refer below) the information in the distribution list, build status and amendments in this release sections may need to be updated. Where there is provision for signatures, these should also be obtained prior to distribution.Includingthecorrespondingversionnumberinthefilename(forexample,ProjectXYZBusinessPlanv0.A.doc)•can uniquely identify electronic copies of documents.Documentssubjecttoversioncontrolmusthavetheirversionidentificationoneverypage,soastoreducerisk•if people work with excerpts fro the main document. The project manager should ensure that people always use the current version of the documents and that the •documents do not get changed without due process. Change requests should be handled through the project change control procedure and this will normally mean that the original signatories on a document should also sign the new issue.

Controlled documentsControlleddocumentsarefinalversionsofdocumentsdistributedtoalistofrecipients,whereeachcontrolled•document is uniquely numbered, for example Copy 1, Copy 2, etc. This usually appears in the header on the front page. The recipients should be requested to remove superseded copies from circulation, or to return the old copies for disposal.The project manager, in consultation with the project sponsor, is responsible for determining the level of document •control to be used in the project. Major project management documents such as the project business plan, usually have a higher degree of document control than other working documents used by the project team. Individual team members or consultants developing documents for a project should adhere to the relevant •controls established by the project manager.A list of individuals or organisations holding controlled copies should be maintained. In this way, controlled •documents that are revised can readily be distributed to the relevant recipients. This can be done by using a distributionlist,whichcanalsorecordtheelectronicfilelocationofthedocument,asillustratedintheexamplebelow.

Copy No. Version Issue Date Issued To1 3.0 8 Oct 2001 ProjectSponsor,ProjectXYZ,DepartmentABC2 3.0 8 Oct 2001 ProjectSponsor,ProjectXYZ,DepartmentABC3 3.0 9 Oct 2001 Business Unit Manager, Division, Department ABCElectronic 3.0 7 Oct 2001 Shared drive

Table 5.4 Example of distribution list

The distribution list can be included within the document, usually after the document acceptance and release.•

Uncontrolled documents

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Uncontrolleddocumentsarefinalversionsofdocumentsdistributedtorecipientswhoarenotrequiredtobe•kept up-to-date if the document changes. These documents are identified by the absence of a unique copy number or by the identification “Copy:•Uncontrolled”. Generally, there is no need to maintain a list of persons or organisations issued uncontrolled copies.

Document’s build statusThe build status of a document provides a history of the development of the document through subsequent •releases and revisions. This information provides an audit trail of changes when read in conjunction with the summary of amendments in the current release. The word processing feature of highlighting changes within the document can be used in place of the summary of amendments, or used to compliment the summary.The following is an example of the format that could be used to record the build status of a document or report. •As each version is released, the list within the build status grows, with the most recent amendment appearing first.

Version Date Author Reason Sections

3.0 3 Oct 2001 Joe Updatedfinancialsummary,riskmanagementplan and risk register 5,6 & Appendix 1

2.0 4 May 2001 Ima Revised to clarify scope of work for Phase 2 All1.0 21 Feb 2001 Ima Initial Release All

Table 5.5 Build status

A summary of the amendments included in the current release of the document complements the build status. This allows for easy reference to changes in the latest release of the document.

How to put it togetherThe build status, amendment summary and distribution list for a document usually appear on a single page. The example used throughout this fact sheet has been presented in this format.

5.9.4 Project File

Thebasicaimoffilingsystemistoreducethetimespentsearchingthedocumentsandallowssomeoneelse•other than the author to access the information. In some organisation there may be additional requirements to create an audit trail for regulatory or quality •system compliance reasons.Withoutaprojectfilingsystemkeydocumentsarelikelytogetlost.Itisoftennecessarytobeabletofind•documents from past projects after they have been closed down, for compliance or product support reasons.

ProcessAonepersonprojectwillneedadifferentfilingsystemfromalargemulti-siteimplementationinvolvingmany•vendors. As a minimum it will be necessary to establish a physical project folder for hard copy documents. Thefilestructure ineachof theseshouldbesystematic, so thateverybodynew to theprojectcanfind the•documents they need. Large projects should use rigorous procedures for indexing and document storage, with a separate searchable document register.The project manager must establish a policy in relation to how project documents are handled. This should •address three key questions:Whichdocumentsshallweputintheprojectfolder?Thesimplestapproachistofileeverysingledocument•relating to the project, including e-mails, background research and handwritten notes. This can take up a lot offilingspace.Alsoitmaybecomeacontinuingsecurityburdenaftertheprojecthasbeenarchivedifanyinformationisconfidential.

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When any other policy is adopted it must be stated clearly and unambiguously. The policy should leave enough •of an audit trail for the rationale project decisions to be visible.Whendoweallowindividualstotakedocumentsoutofthemasterprojectfile?Howdoweknowwherethey•are? If people remove documents from the folder carelessly, they can cause problems for others who may need accesstothesamedocuments.Forthephysicalprojectfolderitissometimessufficienttoleaveanotesayingwho has the document. Alternatively, the project manager can insist that the master version always remains in the project folder and •people work with copies. For the electronic project folder it is usually possible for people to access the folder online and so the original document remains available. Accessing the central electronic project folder also has a serious implication for document version control. Some people tend to keep local copies of documents and the project manager must set a clear policy on when the •electronic document must be put into the central project folder. If locally held documents are not reconciled with themasterfileoftenenough,thereisariskthatdifferentpartsoftheprojectwillbegintolooseco-ordination.At the end of a project, it should be possible to archive the project folder easily. Most companies have document •archivingprocedures that confirm to the legal environment of the industry.Those projects that produce aproductorprocessthatmustbesupportedafteraprojecthasfinishedmustalsoprovidetechnicalandsupportdocumentation for the group that will be undertaking this continuing task. Typically,suchsupportgroupshavetheirownpreferredformatforinformationanditwouldbeprudenttofind•out what this is and plan for it from the start, rather than discover at the end of the project that the support team cannot use the information you have been generating.

ISO 9000 and documentationIf your organisation is using an ISO 9000 quality management system, you will already have plenty of procedures •and guidelines setting out how to handle documents. MuchofISO9000isconcernedwithcreatingverifiablerecordsofwhatthecustomerorderedandthenensuring•andprovingthatthecustomergotwhatwasordered.Underpinningallofthisverificationandproofaresatisfactorydocument control and record-keeping procedures.

5.10 Documentation Tips from Project ManagersAt project management forums, participants made the following suggestions concerning documentation:

canvas all stakeholders for input during document production•ensure independent review•don’t swamp stakeholders with too much documentation at any one time•documents are only one mechanism by which to communicate with stakeholders•obtain agreement with the Steering Committee as to what documentation is required by them•Assign responsibility for development, acceptance and maintenance of documents•don’t assume the project manager has responsibility for all documentation•documents can provide a knowledge base for future projects•state the purpose/intention of each document - ask yourself what would happen if you did not have this •documentthe minimum required documents for a project are a project business plan and a project execution plan•establish a baseline for monitoring and reporting purposes•formally document decisions and actions from meetings•clearlydefineandagreeonprojectgovernance•ensuretheprocessforissuesmanagementisdefined•establish a consistent structure and approach for status reporting•minimum reporting to the Steering Committee includes:•

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Milestones �Risks �Issues �Budget �

Ensure that there are resources and time scheduled in the project business plan to develop, review and maintain •documents.

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SummaryAs per Chambers dictionary, documentation means a paper or other material thing affording information, proof, •or evidence of anything. As a verb it means preparation, setting forth, or use of documentary evidence and authorities.Informationcanbestoredinoneoftwostates–structuredorunstructured.Structureddatareferstoinformation•thatisstoredinrepetitiveandstructuredformat.Structureddatareferstofiles,tables,databases,datawarehouses,etc. This type of data is easily stored and accessed by computer programs.Project documentation is developed to support the project activities, often referred to as “products” as such •documents are deliverables of the project management process. These products help to ensure the smooth progress of plans and provide a clear audit trail of decisions taken.Document management considerations are trivial for small projects. For large ones, these processes need •to be planned ahead of time or else confusion, uncertainty and extra work will occur when the project is in progress.The project manager should consider which documents are required, based on decisions regarding the project •size and look at using scaled-down versions for small projects. Thus, documents are categorised based on the size of project. The three types of documents include small project documents, medium project documents and large project documents.The documents are also categorised as core documents, recommended documents and optional documents.•Thethirdtypeofclassificationincludesmajordocuments,otherdocumentsandsmallertemplates.•A project archive is a complete set of indexed project records for archiving by the appropriate parties. After the •projectisfinished,theprojectmanagershouldsetupanarchivethatcontainslessonslearned–thatis,learninggained from the process of performing the project. These lessons are simply actions that occur during the project thatinfluencetheoutcomeoftheproject.Documents must be prepared in correct and uniform manner. On many occasions project team members have •different ideas on how documents should be prepared. Sometimes ideas applicable to previous projects may not be compatible with the requirements of current project and there may be a need to make major changes.Theprojectmanagershouldmakecertainthattheproject’sdocumentcontrolprocessidentifieswhoontheproject•management team has the authority and accountability for ensuring that each of the baseline documents is kept currentincompliancewiththeproject’sconfigurationmanagementanddocumentcontrolprocedures.Controlleddocumentsarefinalversionsofdocumentsdistributedtoalistofrecipients,whereeachcontrolled•document is uniquely numbered, for example Copy 1, Copy 2, etc. This usually appears in the header on the front page. The recipients should be requested to remove superseded copies from circulation, or to return the old copies for disposal.Uncontrolleddocumentsarefinalversionsofdocumentsdistributedtorecipientswhoarenotrequiredtobe•kept up-to-date if the document changes.

ReferencesProject Documentation• , Tasmanian Government Project Management Framework, November 2008, Version2.2, P 2 18, Available at< http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0003/78168/Project_Documentation_Fact_Sheet.pdf >, Accessed on 19th January, 2011.Ann Drinkwater, • TheBenefitsofDocumentation, Available at < http://www.projectsmart.co.uk/the-benefits-of-documentation.html >, Accessed on 19th January, 2011.

Recommended ReadingNeil Stolovitsky, • Managing the project Document, Available at< http://www.projectsmart.co.uk/pdf/managing-the-project-document.pdf > Accessed on 19th January, 2011.Document management Overview• , Laserfiche,ADivision ofCompulinkmanagementCentre, Inc., 3545Long Beach Blvd. Long Beach, CA 90807, 2007, Tenth Edition, Available at< http://www.laserfiche.com/pdf/

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ImagingGuide.pdf > Accessed on 19th January, 2011.Chitram Lutchman, • Project Execution, CRC Press, 2010, Pages 252, Available at < http://books.google.co.in/books?id=ZddQc0K-9sAC&dq=project+execution+and+documentation&source=gbs_navlinks_s > Accessed on 19th January, 2011.

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Self Assessment

__________ is developed and used during all project phases as a reference point, for reporting and for ongoing 1. project management.

Documentationa. Datab. Informationc. Statementd.

_____________ documents are those documents that include minimum information.2. Recommendeda. Optionalb. Corec. Small project documentsd.

Match the following:3. 1. Recommended documents A. developed when required2. Optional documents B. describe the management and control of the project3. Major Documents C assist in the management of the project

4. Smaller Templates D. created to enhance the project management

1-A, 2-D, 3- B, 4-Ca. 1-B, 2-A, 3- C, 4-Db. 1-C, 2-D, 3- A, 4-Bc. 1-D, 2-A, 3- B, 4-Cd.

Which of the following is a complete set of indexed project records for archiving by the appropriate parties?4. Document controla. Document control systemb. Project archivec. Document distributiond.

________documentsarefinalversionsofdocumentsdistributedtorecipientswhoarenotrequiredtobekept5. up-to-date if the document changes.

Controlleda. Uncontrolledb. Recommendedc. Cored.

Which of the following statement is true?6. Project closure report represents the formal ‘ending’ or termination of a project.a. Project execution plan represents the formal ‘ending’ or termination of a project.b. Project business plan represents the formal ‘ending’ or termination of a project.c. Project proposal represents the formal ‘ending’ or termination of a project.d.

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________containsdetailsofstakeholdergroupsandhowtheywillbeinfluenced7. Training strategya. Marketing planb. Project status reportc. Risk registerd.

The purpose of ________ is to explore all the issues associated with a proposed project and determine whether 8. it is feasible.

feasibility study/reporta. risk management planb. training strategyc. marketing pland.

Match the following:9. 1. Project Proposal A.DefinesthemanagementoftheProject

2.Business case B. The ‘road map’ used by the Project Team to deliver the agreed Project outputs

3.Project Business plan C. Converts an idea or policy into a proposal for a Project

4.Project Execution Plan D.DefinestheProjectandusedtoobtainapproval,includingresourcing

1-A, 2-D, 3- B, 4-Ca. 1-B, 2-A, 3- C, 4-Db. 1-C, 2-D, 3- A, 4-Bc. 1-D, 2-A, 3- B, 4-Cd.

The ________ of a document provides the history of development of the document through subsequent releases 10. and revisions.

build statusa. distributionb. storagec. retrievald.

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Case Study I

Project Design Management at Lenovo

IntroductionIn recent years, the personal computer (PC) industry has been developing with the boom in information technology. Global sales of PCs totalled 230 million units in 2006, representing a 9 percent increase over the previous year. Lenovo, one of the largest manufacturers of PC and other accessories, has a product line that includes everything from servers and storage devices to printers, printer supplies, projectors, digital products, computing accessories, services and mobile handsets, all in addition to its primary PC business, which made up 96 percent of the company’s turnover for the second quarter of 2007.

Since its acquisition of IBM’s Personal Computing Division in May 2005, Lenovo has been accelerating its business expansion into overseas markets. The company transferred its corporate headquarters from Beijing, China to Raleigh, NorthCarolina,USA.Today,thegrouphasbranchofficesin66countriesaroundtheglobe.Itconductsbusinessin166 countries and employs over 25,000 people worldwide.

Lenovoisorganisedintofourgeographicalunits:GreaterChina,America,Asia-Pacific,Europe,andtheMiddleEast and Africa (EMEA). Within each unit, there are functional departments that include production, transportation, supply chain management, marketing and sales. Sales outside of Greater China compromised 59 percent of the company’s total turnover in the second quarter of 2007.

ChallengesBefore2004,multinationalPCmakerslikeDellandHPwereexperiencingdifficultieslocalisingtheirbusinessinthe Chinese market and thus did not pose a serious competitive threat to Lenovo. However, their operations began to have a major impact on Lenovo market share in 2004, particularly among key accounts—mandating better execution and core competitiveness in order to increase market share and improve business performance.

SolutionsIn order to address these challenges, Lenovo proposed substantial changes to its business model and strategy in 2004, employingaproject-focusedapproachtodevelopitscorporatestrategy.Specificstepstakenwereasfollows:

Implementing project management as the tool for executing corporate strategy was the main tool used by the •management.After confirming the company’s overall corporate strategy,Lenovo set about designingpriority tasks that•required multi-department cooperation into projects, referred to as strategic projects. Strategic projects differ from R&D projects, in that time and cost cannot be used as yardsticks for success. Such projects may be about expanding intonewmarkets, solvingunderlyingproblems,enhancingorganisationalefficiency, integratingstrategic resources or improving employee satisfaction or capabilities. They also implemented WBS charts, to sub-divide the tasks of the projects, identify project levels, and assign •responsibilities to companies and individual managers. The purpose of WBS was also to identify interfaces at all levels, implement documentation numbers related to WBS code, identify work packages and allocate funds till the project is executed successfully.LenovoalsoestablishedaProjectManagementOffice(PMO)tocoordinatestrategicprojects.Beginningin2004•and early 2005, Lenovo put in place the processes and the organisational structure for its PMO. It also formalized therelationshipsbetweenstrategicleadersandthePMOandbudgetedresourcesfortheoffice.Subsequently,allof Lenovo’s other departmental regulations needed to conform to PMO regulations, with detailed regulations beingoutlinedby specific business departments.However,Lenovo’sPMOdid not interferewith projectsadministratively; rather it offered training and established standardised procedures. Lenovo employees see the PMO as a kind of resource rather than an administrative facility. Designating a PMO as an administrative facility isoneofseveralthingsthathavedoomedsuchofficesinthepast,butLenovo’sofficehasthrived,winningthecompany’s excellent team award.

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The company believes that certain conditions must exist in order to successfully utilise project management. First, •acompanymustfaceachallenge(i.e.,anexternalfactorthatdemandsittodoso);second,theofficemustbeprioritisedbythecompanyleadership;third,theofficemustbeledbyaprofessionalteaminordertoguaranteethatcompany-specificsystemsaredeveloped;andfinally, itmustconformto thecompany’sorganisationalculture and be appreciated. Otherwise it’s hard to execute.Lenovo also earmarked money for strategic implementation. Previously, completed strategic plans were not •financiallysupported.Thetripleconstraints(time,scope/qualityandcost)facedpreviouslywerestudiedandmanaged in the later product execution. It was analysed that the triple constraints were interrelated in the previousprojects.Hence,theymanagedthefinancialconditionandtherefore,timeandqualityweremanagedat the same time. But with the strategic shift, the leadership set aside additional money to execute projects outside of the original budget and to provide bonuses for those involved—paving the way for the successful execution of strategic plans.

Questions:

Why were WBS charts used by Lenovo?1. AnswerWBS charts were used to sub-divide the tasks of the projects, identify project levels, assign responsibilities to companies & individual managers. The purpose of WBS was also to identify interfaces at all levels, implement documentation numbers related to WBS Code, identify work packages and allocate funds till the project is executed successfully.

What were the triple constraints faced by Lenovo? How were they overcome?2. AnswerThe triple constraints are time, scope/quality and cost. Lenovo also earmarked money for strategic implementation. Previously, completed strategic plans were not financiallysupported.Thetripleconstraints(time,scope/qualityandcost)facedpreviouslywerestudiedandmanaged in the later product execution. It was analysed that the triple constraints were interrelated in the previous projects. Hence,theymanagedthefinancialconditionandtherefore,timeandqualityweremanagedatthesametime.Butwith the strategic shift, the leadership set aside additional money to execute projects outside the original budget and to provide bonuses for those involved—paving the way for the successful execution of strategic plans.

WhatarethebenefitsofWBSforLenovo?3. AnswerThe graphical nature of the WBS can help a project manager predict outcomes based on various scenarios, which can ensure that optimum decisions are made about whether or not to adopt suggested procedures or changes.A project manager can:improve the cost accuracy, duration and estimation of resources•defineabaselineforperformancemeasurementandcontrol•facilitate clear responsibility assignment•

Which points should be remembered by Lenovo in future while preparing WBS?4. AnswerThe following points should be remembered while preparing WBS:Each WBS element should represent an aggregation of all subordinate WBS elements listed immediately below •it.

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Each subordinate WBS element must belong to only one single parent (or superior) WBS element.•The deliverable should be logically decomposed to the level that represents how they will be produced (designed, •purchased, subcontracted, fabricated, etc.).Deliverables must be unique and distinct from their peers.•Deliverablesshouldbelimitedinsizeanddefinitionforeffectivecontrol–nottoosmall/detailedastomakecost•of control very high and not too large to make item unmanageable or risk unacceptable.

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Case Study II

Risk Management in General Motors

General Motors (GM) is the world’s largest manufacturer of cars and trucks. The company is exposed to many risks: legal risk, currency risk, interest rate risk, commodity price risk and equity price risk. The case outlines these risks and the mechanisms GM employs to manage them.

IntroductionGeneral Motors (GM), the world’s number one manufacturer of cars and trucks, owned brands such as Buick, Cadillac, Chevrolet, GMC, Pontiac and Saab. GM also produced cars overseas through its Holden, Opel, and Vauxhall units. Other operations included Hughes Electronics, Allison Transmission (heavy-duty automatic transmissions), and GM Locomotive (locomotives, diesel engines).GM also had stakes in Isuzu Motors, Fuji Heavy Industries (Subaru), Suzuki Motor, Fiat (Alfa Romeo, Lancia), and GM Daewoo Auto & Technology. Subsidiary, General Motors Acceptance Corporation (GMAC) provided financing.

BackgroundIn the early years of the auto industry, hundreds of car makers produced a few models each. Sensing an opportunity for consolidation, William Durant formed the General Motors Company in Flint, Michigan, in 1908. Durant bought 17 companies, some of which included Oldsmobile, Cadillac and Pontiac.

Then a bankers’ syndicate forced him to step down. In 1915, he regained control when he formed a company with race car driver Louis Chevrolet. They soon formed GMAC and bought businesses including Frigidaire (sold in 1979) and Hyatt Roller Bearing.Changes ineconomicconditions,volatility infinancialmarkets,significant terroristacts,orpolitical instabilityin the major markets where GM procured material, components, and supplied principal products might affect the company’s performance. Shortages of fuel or interruptions in transportation systems, labour strikes, work stoppages, or other interruptions adversely affect its production.

Risks

Legal risksLike most domestic and foreign automobile manufacturers, over the years GM had been using some brake products incorporating small amounts of encapsulated asbestos. These products, generally brake linings, were known as asbestos-containingfrictionproducts.Therewasadequatescientificdatademonstratingthattheseasbestos-containingfriction products were safe and did not create an increased risk of asbestos-related disease.

Market risksGMwasexposedtofluctuationsinforeigncurrencyexchangerates,interestrates,andcertaincommodityandequityprices. GM entered into a variety of foreign exchange, interest rate, and commodity forward contracts and options, to hedge these exposures. A risk management control system was utilised to monitor foreign exchange, interest rate, commodity and equity price risks and related hedge positions. GM also measured the sensitivity of the fair value offinancialinstruments.Theanalysisassumedinstantaneous,parallelshiftsinexchangerates,interestrateyieldcurves and commodity and equity prices.

Derivative instruments: accounting and valuationGM’sfinancialexposuresweremanaged inaccordancewithcorporatepoliciesandprocedures.Theriskswereidentified,analysed, recorded, treated,monitoredandcommunicated.Thus, the legalandmarketing riskswereovercome by proper risk management techniques. All derivatives were recorded at fair value on the consolidated balancesheet.Effectivechangesinfairvalueofderivativesdesignatedascashflowhedgesandhedgesofanetinvestment in a foreign operation were recorded in net unrealised gain/(loss) on derivatives, a separate component

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of accumulated other comprehensive loss.

Questions:WhichriskswereidentifiedbyGM?1. How GM tackled those risks?2. If GM gives you an opportunity to carry out risk management, what steps will you take to manage the risks?3.

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Case Study III

Six Sigma at GE

ThecaseexaminestheinitiativestakenbyGE,oneoftheworld’slargestdiversifiedcompaniestoimplementtheSixSigma quality tool in the 1990s. The case discusses in detail the concept of Six Sigma, its implementation procedure anditsbenefits.ItalsoexplorestheimplementationprocedureatGEandthebenefitsreapedbythecompanyonaccount of adopting Six Sigma.

IntroductionBy 2001, with revenues of $ 125.91 billion and net earnings of $ 13.68 billion, the US-based General Electric Company(GE)waseasilythelargestdiversifiedcompanyintheworld.Outofits24differentbusinesses,somewere so large that they could independently feature in the Fortune 500 list of companies.GE was well known for its strong focus on R&D and quality since its inception. The GE R&D Centre was one of theworld’slargestandmostdiversifiedindustriallaboratories.Itemployed1,600peoplethatincludedaround1,100scientists, engineers and technicians. The centre provided GE’s businesses and strategic partners with cost effective technical innovations for various products, processes and services. During the 1990s, quality became a major issue of concern for the company.Though Welch felt that quality programs were only theoretical and did not show any substantial results, he was impressed by the Six Sigma concept and decided to implement it at GE in 1995.

Six SigmaSix Sigma is a long-term, forward-thinking initiative designed to fundamentally change the way corporations do business.It isfirstandforemost“abusinessprocessthatenablescompaniestoincreaseprofitsdramaticallybystreamlining operations, improving quality, and eliminating defects or mistakes in everything a company does.” Six Sigma is a well-structured, data-driven methodology for eliminating defects, waste, or quality control problems in all kinds of business activities.

Implementation of Six SigmaAccording to analysts, the groundwork for the implementation of Six Sigma at GE had begun in 1988 in the form of an initiative known as the ‘Work Out’ program. The company realised that employees were an important source of intellectual power for new and creative ideas. The work out program gave each employee an opportunity to influenceandimproveGE’soperations.

Objectives

to lift internal performance •to enable better performance by better design •to improve the quality of purchased supplies •to reduce the costs •

BenefitsAnalysts felt that the implementation of Six Sigma enabled Welch to transform an old-economy industrial giant into a competitive and growing company. No other corporation seemed to have integrated Six Sigma in to its operations aswidelyasGE.WithinfiveyearsofitsimplementationofSixSigmaatGEproducedannualbenefitsofmorethan$2.5 billion for GE worldwide. Analysts remarked that Six Sigma was an indisputable success at GE whether in terms of customer satisfaction, improvement in internal performance, or in the improvement of shareowner value.

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Questions:

What is Six Sigma?1. What are the objectives of Six Sigma?2. How was Six Sigma implemented at GE?3. HowwasGEbenefitedbySixSigma?4.

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Bibliography

ReferencesAnnDrinkwater,TheBenefitsofDocumentation,Availableat<http://www.projectsmart.co.uk/the-benefits-of-•documentation.html >, Accessed on 19th January 2011.Faisal Shareef & Syed Hummayon Hussain, Project Scope & Change Management, available at<http://geekdeck.•com/project-scope-change-management/> , Accessed on 11th of January 2011.Merrie Phinney, Project Management, available at < http://python.rice.edu/~arb/Courses/610_06_mp_pmgt1.•pdf > Accessed on 7th January 2011.Micheal Axelsen, • Business Process Management and Change Management, Applied Insight Pty Ltd, P 615, Available at < http://www.michealaxelsen.com/docs/20071130_bpm_cm_paper.pdf > , Accessed on 13th January 2011.Organisation and Management Fundamentals• , September 2002, Directorate of Studies, the Institute of Cost and Works Accountants of India, 12, Sudder Street, Kolkata- 700 016. Chapter 7 Change Management, P 7.27.20Project Documentation, Tasmanian Government Project Management Framework, November 2008, Version2.2, •P 2 18, Available at< http://www.egovernment.tas.gov.au/__data/assets/pdf_file/0003/78168/Project_Documentation_Fact_Sheet.pdf >, Accessed on 19th January 2011.Project Management, available at< http://www.otssolutions.com/doc/whitepapers/Project%20Management.pdf •>, and Accessed on 11th of January 2011.Project Quality Management, Information Technology, Project Management, Fifth edition, P 1337, Available •at < http://userhome.brooklyn.cuny.edu/irudowsky/PM/Schwalbe/lectures/Schwalbe-08ProjectQuality.ppt > and Accessed on 18th January 2011.Project Scope Management, available at< http://ww2.cs.mu.oz.au/443/443Lec4.pdf >. Accessed on 11th of •January 2011.Rohit Garg, Risk Management, P 3 21. Available at <http://www.authorstream.com/Presentation/Rohit_IITTM-•296923-risk-management-ravi-mohan-business-finance-ppt-powerpoint/>Accessedon18th January 2011.Work Breakdown Structure, available at <http://web2.concordia.ca/Quality/tools/30workbreakdownstructure.•pdf > Accessed on 7th January 2011.Work Breakdown Structure, available at <http://www.netmba.com/operations/project/wbs/ > Accessed on 7th •January 2011.

Recommended ReadingsBernd Madauss, • Project Management, IMPRS, Katlenburg-Lindau, 23-25 May 2005, Pages 89. available at <http://www.mps.mpg.de/solar-system-school/hofgeismar/projectmanagement_2.pdf > Accessed on 7th January 2011.Booz, Allen and Hamilton, Introduction to earned value Management, Pages 24, Available at< http://www.•management.energy.gov/documents/EVMModule1.pdf >, Accessed on 18th January 2011.Change Management, Available at< http://www.docstoc.com/docs/10638462/Change-Management > . Accessed •on 13th January 2011. Chitram Lutchman, • Project Execution, CRC Press, 2010, Pages 252, Available at < http://books.google.co.in/books?id=ZddQc0K-9sAC&dq=project+execution+and+documentation&source=gbs_navlinks_s>Accessedon 19th January 2011.Disha Jain Kanika Sharma Megha Gupta Monika Bishnoi Neetu Meena and Niharika Tripathi, Navigating •The Complexities And Dynamics Of Change, Available at < http://www.scribd.com/doc/23295874/Change-management-ppt >, Accessed on 13th January 2011. Document management Overview• , Laserfiche,ADivision ofCompulinkmanagementCentre, Inc., 3545Long Beach Blvd. Long Beach, CA 90807, 2007, Tenth Edition, Available at<http://www.laserfiche.com/pdf/ImagingGuide.pdf > Accessed on 19th January 2011.

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Esther Cameron, Mike Green, • Making sense of change management, 2004, Kogan Page Publishers, 280 pages, Availableat<http://books.google.com/books?id=6ntE9TLr7YYC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false>,Accessedon13th January 2011. JosephW.Fisher,PreventingScopeCreep,AffinityIT,LLC,11Pages,availableat<http://www.affinity-it.com/•whitepapers/Preventing_Scope_Creep.pdf >. Accessed on 11th of January 2011.Kathy Schwalbe, • Information Technology Project Management, 2009, Cengage Learning. Business & Economics, 490pages,availableat<http://books.google.com/books?id=MPS_fT3diqAC&dq=project+scope+management&source=gbs_navlinks_s>Accessedon11th of January 2011.Kathy Schwalbe, • Information Technology Project Management, 2009, Cengage Learning. Business & Economics, 490pages,Availableat<http://books.google.com/books?id=MPS_fT3diqAC&dq=project+scope+management&source=gbs_navlinks_s> Accessed on 11th of January 2011.Neil Stolovitsky, Managing the project Document, Available at< http://www.projectsmart.co.uk/pdf/managing-•the-project-document.pdf > Accessed on 19th January 2011.Project Execution phase, available at<http://www.method123.com/project-execution-phase.php> Accessed on •7th January 2011.Project Performance Management Guide, Material Policy and Services Branch, Defence Material Organisation, •November 2003, Edition 1, Pages 28, Available at < http://www.defence.gov.au/dmo/esd/evm/B3K06_PPMG_GUIDEFINAL.pdf > Accessed on 18th January 2011.

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Self Assessment Answers

Chapter Ib1. d2. a3. c4. d5. a6. b7. d8. a9. a10.

Chapter IIa1. c2. d3. d4. b5. a6. d7. c8. d9. a10.

Chapter IIIa1. c2. b3. c4. b5. d6. d7. b8. a9. b10.

Chapter IVa1. c2. d3. b4. d5. a6. d7. c8. c9. d10.

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Chapter Va1. c2. d3. c4. b5. a6. b7. a8. c9. a10.