Chapter-1

Project: definition, types of projects, and features of project: Project management:

knowledge areas and project management process groups: Activities of project
management. Traits of project manager, roles and responsibilities of project manager,
success criteria of project, Advantages of project management

What is a Project?

A project is a “temporary endeavor undertaken to create a unique product, service, or result”

(PMI, 2008). Projects may end at one stage but operations of organizations are ongoing and
repeat. Project is always a temporary endeavor which has a definite beginning and definite
end whereas the functions and regular operations such as production, marketing, human
resources and human resource activities are continuous. Examples of projects are

– Construction

– Introducing a new product line

– Designing and implementing a new ad campaign

Defining Project:

• A coordinated efforts, using a combination of human , technical, administrative , and

financial recourses, in order to achieve a specific goal within a fixed time period.
- Graham Mcleod and Derek Smith

Therefore a project may be defined as a means of moving from a problem to a solution

through a series of planned activities. And it has a definite beginning and end.

• Clements and Gido define a project as an “endeavour to accomplish a specific

objective through a unique set of interrelated tasks and the effective utilisation of
resources.”

• Heizer and Render (2010:90) define a project as “a series of related tasks directed
toward a major output.” A project is a temporary endeavour undertaken to create a
unique product, service or result (PMBOK Guide, 2004).

All projects have some elements in common and, according to Pycraft et al. (2010:464), these
include:

• An objective. A definable end result, output or product, which is defined in terms of

cost, quality and timing.

• Complexity. Several tasks are required to be undertaken to achieve the objectives. The
relationship between all these tasks can be extremely complex.

• Uniqueness. A project is usually a one-off undertaking.

• Uncertainty. As all projects are planned before they are executed, they carry a certain
amount of risk.
 • Life cycle. Projects normally go through three phases – planning, execution and
phase-out. Temporary nature. Resources may be moved from one project to the next
once the tasks have been completed.

FEATURES OF PROJECT

• Two essential features are present in every project no matter how simple or
complicated they are. In the first place, all projects must be planned out in advance if
they are to be successfully executed. Secondly, the execution of the project must be
controlled to ensure that the desired results are achieved.

• A project is an interrelated set of activities that has a definite starting and ending point
and results in the accomplishment of a unique, often major outcome.

• An activity, A project is a sequence of activities that has a definite start and finish, an
identifiable goal and an integrated system of complex but interdependent
relationships.

• A schedule, The schedule sets priorities, start times and finish times. More
specifically, It’s a temporary group activity designed to produce a unique product,
service or result.

• A project is temporary in that it has a defined beginning and end in time, and
therefore defined scope and resources.

• And a project is unique in that it is not a routine operation, but a specific set of
operations designed to accomplish a singular goal.

PROJECT MANAGEMENT

“Application of knowledge, skills, tools and techniques into project activities to meet
project requirements”.

It is accomplished through the application and integration of the project management

process of Initiating, Planning, Executing, Monitoring and Controlling and Closing.”

Project management processes fall into five groups:

– Initiating

– Planning

– Executing

– Monitoring and Controlling

– Closing

Project management knowledge areas

The basic document that defines knowledge areas and process groups is A Guide to the
Project Management Body of Knowledge ( [PMBOK Guide]). The guide became almost as a
standard in project management and determines in a great extent the content of courses and
certificates in project management. The guide defines and describes the following knowledge
areas of project management:
 1. Project integration management includes activities (called processes in the guide)
that ensure co-ordination of various elements of the project.
2. Project scope management includes activities that ensure completing all tasks (and
only these!) necessary for completing the project successfully.
3. Project time management includes activities that ensure timely completion of the
project.
4. Project cost management includes activities that ensure completion of the project
within the approved budget.
5. Project quality management includes activities that ensure satisfaction of the needs
for which the project was undertaken.
6. Project human resource management includes activities that ensure the most
effective usage of people involved with the project.
7. Project communications management includes activities that ensure timely
generation and handling of adequate project information.
8. Project risk management includes activities that ensure adequate identification,
analysis and response to project risks.
9. Project procurement management includes activities that ensure acquiring necessary
goods and services from outside the performing organization.

These knowledge areas are applicable to all stages of the project, in fact during the whole life cycle
of the project.
 FUNCTIONING OF PROJECT MANAGEMENT

Knowledge Project Management Process Groups

Areas
Initiatin Planning Executing Monitoring & Closing
g Controlling

Integration Develop Develop Project Management Direct & Monitor & Close Project
Project Plan Manage Control Project or Phase
Charter Project Work
Execution Perform
Integrated
Change Control

Scope Collect Requirements Verify Scope

Define Scope Control Scope
Create WBS

Time Define Activities Control Schedule

Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule

Cost Estimate Cost Control Costs

Determine Budget

Quality Plan Quality Perform Perform Quality

Quality Control
Assurance

HR Develop HR Plan Acquire Manage Project

Project Team
Team
Develop
Project
Team

Communicati Identify Plan Communications Distribute Manage

ons Commu Informatio Stakeholder
nication n Expectations
s Report
Performance

Risk Plan Risk Management Monitor &

Identify Risks Control Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk
Analysis
Plan Risk Responses

Procurement Plan Procurements Conduct Administer Close

Procureme Procurements Procurements
nts

Activities of Project Management

1-Planning –

a. At the start of the project, it is important to ask the right questions.

– What needs to be achieved and why?

– When should it be done by?

– How will it be done?

 – What will be the order of cost?

b. Different people provide different part of answer.

– The people who pay ( Project Sponsors )

– The people who benefit ( end users)

– The technical workers

c. The project has to be satisfy 3 feasibility criteria

– The Technical Criteria- Is it going to work?

– The Business Criteria- Are the cost and time scale right for the business as a
whole?

– The Functional Criteria-Will the result satisfies the end users?

2 - Organizing

• Organizing is about arranging the people, material and support resources in the
project to meet the project’s communication, integration and decision making
needs to achieve on time project delivery.

– At the start of a project, an organizational structure should be set up which

defines for everyone-

• What their role is?

• Their responsibilities?

• Who to report to?

• The right structure is important to ensure that

• Is committed to project.

• Knows what is happening

• Communicates effectively

• Has common objectives

3 - Controlling

• Controlling means making sure that the project is managed as specified in the
planning documents and that attempts at organizing become a reality.

• The project against the three Criteria used during feasibility by asking the following
questions-

– Are we still going about the project at the right way? Are we within
Schedule?

– Is the project still cost effective? Are we within budget?

 – Are we still going to get what we want? Is the scope still the same?

• If one or more of these criteria is not satisfied, the board can consider three options-

– Continue with the project

– Stop the project

– Delay the project and rethink it.

4 - Leading and Motivating

– Without leadership, the other activities – Planning, organizing, and

controlling would not be possible.

– Leadership and teambuilding skills are critical to successful project

management.

Responsibilities of the Project Manager

• To plan thoroughly all aspects of the project, soliciting the active involvement of all
functional areas involved.

• To control the organization of manpower needed by the project.

• To control the "technical" versus "cost" trade-offs determine the specific areas
where optimization is necessary.

• Strong positive leadership must be exercised.

• To monitor performance, costs and efficiency of all elements of the project .

• To complete the project on schedule and within costs.

Reasons for Project Failure

• Poor project and program management discipline

• Lack of executive-level support

• No linkage to the business strategy

• Wrong team members

• No measures for evaluating the success of the project

• No risk management

• Inability to manage change

Project Success Criteria

• On time

• On budget

• Meeting the goals that have been agreed upon

Factors that can contribute to the success of a project:

• Clearly defined goals. This should include the general project philosophy or general
mission of the project and a commitment to those goals on the part of the project team
members.

• Competent project manager. A skilled leader who has the technical, interpersonal
and administrative skills.

• Top-management support. Senior management commitment to the project must be

openly displayed and communicated to all stakeholders.

• Competent project team members. Careful selection of team members is vital.

Choose a ‘winning’ team.

• Sufficient resource allocation. Money, labour, machines, materials and other

business related items must be available in the required quantities.

• Adequate communication channels. Up-to-date information must be available to the

project team on a continual basis. Communication channels to the various role players
must be established.

• factors that can contribute to the success of a project:

• Control mechanisms. A system to monitor actual events against planned outcomes

must be set up.

• Feedback capabilities. All parties that are involved in the project must be able to
review the project status on a regular basis and make suggestions and corrections
through formal feedback channels or review meetings.

• Responsiveness to clients. All stakeholders must be kept informed regularly on the

projects status.

• Trouble-shooting mechanisms. Set up a system or a set of procedures to tackle

problems when they arise and the ability to trace back to the root cause of the
problem.

• Project staff continuity. Key project personnel must be kept on for the duration of
the project. Frequent staff turnover results in the project losing the wealth of
knowledge, which may have been accumulated

What a Project Manager does?

• Ultimately responsible for the Project’s Success

• Plan and Act

• Focus on the project’s end

• Be a manager & leader

 •

Seven Traits of Good Project Managers

– Enthusiasm for the project

– Ability to manage change effectively

– A tolerant attitude toward ambiguity

– Team – building and negotiating skills

– A customer-first orientation

– Adherence to the priorities of business

– Knowledge of the industry or technology

Success Criteria for the project

• A good way forward would be through the establishment of success criteria for the
project. If you want the project to succeed (and who doesn't?), then you have to know
when you have succeeded. Success criteria can be described as being hard or soft:

Hard criteria

Hard criteria are often the most obvious criteria that are tangible and measurable and
can be expressed in quantitative terms. They tend to pose the question "what?", that
is "what should be achieved?“

– Performance specifications

– Meeting deadlines

– Cost of budget constraints

– Resource constraints

Soft criteria

Soft criteria are usually less obvious, but not necessarily less important. They are often
intangible and qualitative. Consequently they may be difficult to measure. They would
tend to ask the question "how?”

– Presenting a positive image

– Achieving a total quality approach

– Ensuring that ethical standards are maintained

Advantages of Project Management

Success of every project depends on how effectively it is managed. Project management is

quite essential in executing every project. Following are the advantages of project
management.

• Better control of human resources

• Improved customer relations

• Shorter development times, lead times

• Lower costs

• Higher quality

• Higher profit margins

• Improved productivity
 Chapter -2
Generation and screening of project ideas: Generation of Ideas, Monitoring the
Environment, Corporate Appraisal, Identifying Investment Opportunity,
Scouting for Project Ideas, Preliminary Screening, Project Rating Index and
Sources of Positive – Net Present Value (NPV).

Generation and Screening of Project Ideas

There are various considerations and guidelines which are helpful in the generation and
screening of project Ideas. There are following steps –

1. Generation of Ideas

2. Monitoring the Environment

3. Corporate Appraisal

4. Profit Potential of Industries – Portal Model

5. Scouting for Project Ideas

6. Preliminary Screening

7. Project Rating Index

8. Sources of Positive Net Present Value (NPV)

1. Generation of Ideas

Generation of ideas – The Search for ideas is the first step towards establishing a successful
venture. Identification of such opportunities requires imagination, sensitivity to environment
changes and realistic assessment of what the firm can do following. Steps are included in
Generation of Ideas –

Brainstorming: Brainstorming, a technique developed by an advertising agency executive

(A.F.Hosborn) permits people to interact in a free and uninhibited atmosphere. Under this
technique, a group is assembled, presented with the problem and encouraged to produce as
many ideas and solutions as they can. The discussion is free; criticism is prohibited;
members are allowed to generate as many alternatives as they can; they are even permitted to
suggest how ideas of others can be improved or combined into still another idea; the climate
is supportive and encouraging. Brainstorming is based on the idea that people should be
allowed to generate as many ideas as possible. The greater the number of ideas, the greater is
the chance of an outstanding solution to come up.

Synetics: The term ‘synetics’ (a Greek Word) means ‘the fitting together of diverse
elements’. William J.J.Gordon developed this technique to stimulate creative solutions by
piecing together distinct, novel and sometimes irrelevant ideas. A synetics group consists of
members having varied background and training. The leader, at this stage, asks the members
to break the cake of custom and come out with novel ideas. Methods like role playing,
analogies, paradoxes are used to develop creative ideas. Members are even asked to remain in
a room until they find at least one novel idea. However, it may be used to solve complex and
technical problems.

Nominal Group Technique: The nominal group is a ‘paper group’, it is a group in name
only. Developed by two researchers at the University of Wisconsin, Andre Delbecq and
Andrew Van de Ven, the technique includes the following steps:

 The leader explains the problem to the members of the target group.
 Each member writes down his ideas silently and independently.
 Each member then presents a single idea at a time to the group, which is written on a
black board for all to see.
 A discussion is held to explain and evaluate the ideas,
 Silent individual voting on priority.

The basic idea in NGT is to respect interpersonal communication and to increase the
deliberation and contributions of individual members. The NGT follows a highly structured
process and tries to integrate creative thinking, through group interaction in order to solve
organizational problems in a useful manner.

The Delphi Technique: The Delphi technique, developed by Norman Dalkey and Olaf
Helmer in the 50s at Rand Corporation, to forecast the damage that a Russian nuclear attack
on the United States would cause, does not required the physical presence of the group
members. It is a technique used to obtain information from physically dispersed experts,
through the use of written questionnaires. The two step process is generally used in the
Delphi technique. In the first stage, the problem is identified by the leader, the experts are
identified and contacted, a questionnaire is carefully structured and mailed out to experts, the
leader collects the responses sent by experts and prepares a feedback report. In the second
stage, the feedback report and in a more advanced second stage, questionnaires are sent to the
members once again for reaction and reassessment. Each member evaluates the feedback
report, develops new suggestions, votes on the priority of the ideas contained in it. This
process is continued until a clear solution emerges.

 SWOT Analysis (Strengths + Weaknesses + Opportunities + Threats)

 Clear Articulation of Objectives(Cost Reduction + Productivity Improvement +

Increase in Capacity Utilization + Improvement of Contribution Margin)

2. Monitoring the Environment: The Firm Must Systematically monitor the environment
and Assess its competitive abilities. For the Purpose of monitoring the business environment
may be divided in to Six categories –

1. Economic Sector -

2. Government Sectors

3. Technological Sectors

4. Socio Demographic Sectors

 5. Competitive Sectors

6. Suppliers Sectors

3. Corporate Appraisal

A realistic Appraisal of corporate strength and weaknesses is essential for identifying

investment opportunities which can be profitable. Broadly, corporate appraisal refers to an
examination of the entire organization from different angles. It is a measurement of the
readiness of the internal culture of the corporation to interact with the external environment.
corporate strategy is affected by such factors as value orientation to top management,
corporate publics, corporate resources, past performance of the business units, and the
external environment.

4. Identifying Investment Opportunity

There are several factors that are helpful in identifying promising Investment
opportunities, these are -

I. Threats of New Entrants

II. Threats of Substitute Products

III. Bargaining Power of Supplier

IV. Bargaining Power of customer

V. Competition among existing firms

5. Scouting for Project Ideas

The following Steps are included –

I. Analysis the Performance of Existing Industries

II. Examine the Inputs and Outputs of Various Industries

III. Review Imports & Exports

IV. Study Government Guidelines

V. Look at suggestions of Financial Institutions

VI. Analyze Economic & Social Trends

6. Preliminary Screening

Preliminary screening is required to eliminate some unprofitable Ideas. Following Aspects we

looked in to –

I. Compatibility with the Promoters

II. Consistency with Governmental Priorities

III. Availability of Inputs

IV. Adequacy of the Market

V. Reasonableness of Cost

VI. Acceptability of Risk Level

 4. Identifying Investment Opportunity
The re are several factors that are helpful in identifying
promising Investment opportunities, these are -
I. Threats of New Entrants
II. Threats of Substitute Products
III. Bargaining Power of Supplier
IV. Competition among existing firms

Potential
Entrants

Suppliers The INDUSTRY Buyers

Substitutes

According to Schwalbe, project selection may take place using one or more of the following
methods:

Focus on strategy and organisational needs

Performing a financial model

Using weighted scoring model

Implementing a balanced scorecard

Addressing problems, opportunities and directives

Considering project time frames, and

Considering project priorities

Performing a financial model

• This usually involves the preparation of detailed company specific models used for
decision making purposes and financial analysis.
Weighted scoring model

Implementing a balanced scorecard

Project Rating Index

This step involve to determining the Project Rating Index are –

I. Identify Factors Relevant for Project Rating

II. Assign weights to these factors

III. Rate the Project Proposals on various factors, using a suitable rating scale

IV. For Each Factor – Multiply the factor rating with the factor weight to get the factors
score

V. All the factor scores to get the overall project rating index

Sources of Positive – Net Present Value(NPV)

There are 6(Six) main entry barriers that result in Positive NPV Projects – They are -

I. Economics of Scale

II. Product Differentiation

III. Cost Advantage

IV. Marketing Reach

V. Technological Edge

VI. Government Policies

CHAPTER-3

• The project life cycle: Concept. Project initiation - Project Selection, Project Charter,
Project Request for Proposal. Project planning - purposes of project planning, Stages
in the project planning process, Project execution - Key outputs of the executing
process, Project closure and Summary

The project life cycle

A project life cycle is the series of phases that a project passes through from its initiation to
its closure. The phases are generally sequential, and their names and numbers are determined
by the management and control needs of the organization or organizations involved in the
project, the nature of the project itself, and its area of application.
– The project life cycle can be determined or shaped by the unique aspects of the
organization, industry, or technology employed.
– The life cycle provides the basic framework for managing the project,
regardless of the specific work involved.

is achieved by applying and integrating processes which include: initiating, planning,

executing, control and monitoring, and closing. These are referred to as process groups and
they dictate the life cycle of a project. Apart from process groups there are knowledge areas,
which are the backbone and knowledge base of project management. The knowledge areas
consist of project integration, scope, time, cost, quality, human resources, communications,
risk, and procurement management. The four generic phases of a project life cycle (Figure 1)
are: initiating, planning, performing (executing) and closing the project.

Figure 1: Project Life Cycle Effort

1. Project initiation
Projects are first selected based on the identification of a need, problem or opportunity. A
sponsor of a project usually identifies these needs and provides the funds necessary for the
project. Apart from the sponsor, a range of project stakeholders must also be identified in this
phase of the project. The following is a list of typical stakeholders in a project:
 Project Sponsor – The person that provides the financial resources for the project.
 Project Manager – The single point responsibility of a project.
 PMO – The office provides support to the project.
 Customer or user – This is the person or entity that will use the project’s product.
 team – the members of the project team who are directly involved in executing the
functions.
 Influencers – People or groups who are directly or indirectly interested or affected by
the project. They can also influence the project positively or negatively.
 Investors – A person or entity making the investment in a project.
 Contractor – A contractor is normally the person or organization that is entrusted with
supplying the services and/or goods to achieve project deliverables.
 Government – The government is in most cases a stakeholder in projects whether they
are public or private sector projects because it has an interest in the project, e.g.
collecting taxes.
Project Selection
Clements and Gido explain the following four steps in the selection of a project:
i. Develop a set of criteria against which the project will be evaluated. This must take into
account, the company goals, sales volume and market share, investment, risks, resources,
competitors, regulations, etc.
ii. List the assumptions that will be used as the basis for each project.
iii. Gather data and information for each project.
iv. Evaluate each project against the identified criteria.
According to Schwalbe, project selection may take place using one or more of the following
methods:
 Focus on strategy and organisational needs
 Performing a financial model
 Using weighted scoring model
 Implementing a balanced scorecard
 Addressing problems, opportunities and directives
 Considering project time frames, and
 Considering project priorities.
Project Charter
Once a project is selected, it is formally authorised and primed using a project charter. The
project charter includes the rationale or justification for the project and is usually the first
official document that initiates a project.
The typical contents of a project charter are:
 Project title and date of authorisation
 Background to the project
 Key assumptions
 Business needs and other commercial needs
 Scope of work
 Key milestones
 Project scheduling including estimated start and finish dates
 Project estimated budget
 Approach
 Roles, responsibilities of project team and project organisation.

Project Request for Proposal

A project that is outsourced requires the preparation of a Request for Proposal (RFP)
document, the contents of which are outlined below:
 Project objective
 Statement of Work (SOW)
 Customer requirements
 Deliverables
 Acceptance criteria
 Customer-supplied items
 Approvals required by the customer
 Type of contract the customer intends to use
 Payment terms
 Required schedule for completion of the project and key milestones
 Instructions for the format and content of the contractor proposals
 Due date for proposals
 Evaluation criteria
Project planning
The purposes of project planning are as follows:
 It determines the cost and duration of the project.
 It determines the level of resources that will be needed.
  It helps to allocate work and to monitor progress (who is responsible for what).
 It helps to assess the impact of any changes to the project.

Planning the project involves determining what needs to be done (scope, deliverables), how it
will get done (sequence of activities), who will perform it (human resources), how long it will
take (schedule), how much it will cost (budget) and what the risks are . These important
considerations are generally included in a comprehensive project proposal.
Planning may have to be carried out more than once during a project, due to changing
circumstances and demands. The result of the planning process is a baseline plan. The basic
stages in the planning process are illustrated in Figure .2

Figure.2 : Stages in the project planning process

Preparing a project proposal is often a task that managers are presented with when they have
identified a project that will enable them to solve a problem or fulfil a business opportunity.
The essential elements of a project proposal are:
o Statement of customer’s need or problem
o Assumptions
o Project scope

o Deliverables

o Resources

o Schedule of the project

o Price considerations

o Risks

o Expected benefits
2. Project execution (performing)
After planning the project, the third phase involves the accomplishment of the project
objective(s). The executing process group consists of the processes used to complete the work
defined in the plan to accomplish the project’s requirements. The project team should
determine which of the processes are required for the team’s specific project. This process
group involves coordinating people and resources as well as integrating and performing the
activities of the project in accordance with the plan.
Project execution entails fulfilling the deliverables of the project within the client’s accepted
specifications and budget and time constraints. The function that matters most during this
phase is the monitoring and control of progress to ensure that everything is going according
to plan.
Key outputs of the executing process relating to the project integration management
include:
 project deliverables,
 Requested changes,
 Implemented change requests,
 Implemented corrective actions,
 Implemented preventive actions, and
 Implemented defect repair.
Executing outputs relating to project quality management include:
 Requested changes,
 Recommended corrective actions,
 Organizational process assets update, and
 Updated plans
Executing outputs relating to project human resources management knowledge area
include:
 project staff assignments,
 resource availability,
 updated staffing management plan and,
 team performance assessment.
During this phase, monitoring and controlling project work involves collecting, measuring,
and disseminating performance information as well as assessing measurements and analyzing
trends to determine what process improvements can be made. On the other hand, performing
integrated change control involves identifying, evaluating, and managing changes throughout
the project’s life cycle. Every project will experience changes at one point or another. It is
therefore important to develop a process of monitoring controlling and documenting project
changes.
 3. Project closure
The closing process group is the most neglected project phase of all the phases in a project.
This phase includes processes used to formally terminate all the activities of the project or
phase. The project success or failure is evaluated and the project is handed over to the client.
The project experiences or lessons learnt are documented. Closing projects involves
stakeholder and customer acceptance of the final product or service, and bringing the project
to an orderly end.
Summary of the process
The process comprises the following steps:
i. Establish project objective.
ii. Define the scope.
iii. Create a work breakdown structure (WBS) by subdividing the scope into pieces or work
packages.
iv. Assign responsibilities.
v. Define specific activities.
vi. Sequence the activities using a network diagram.
vii. Estimate activity resources.
viii. Estimate activity durations.
ix. Develop a project schedule.
x. Estimate activity costs.
xi. Determine the budget.

Conclusion
General Managers often work closely with project managers in various projects within or
sometimes outside the organisation, and are therefore required to have an understanding of
and the techniques used in project planning and scheduling. Effective also allows firms to
create products and services for global markets. However, techniques do not solve all project
scheduling and management problems, and for this, good management practices, clear
responsibilities for tasks, timely reporting systems and contingency plans are necessary.
CHAPTER-5
PROJECT RISK MANAGEMENT

1. Introduction
This section outlines the most essential knowledge that you should acquire in the field of
project risk management. Be aware that, as a manager or co-ordinator of projects, there will
come a time when your efforts will fall short of necessary requirements. This failure could be
ascribed to numerous factors but, by engaging in constructive project risk management, you
will be able to mitigate the risks to your project.
Definitions
Risk
Risk is an uncertain event that can jeopardise the project objective. Risk includes the
expected losses (economic, time, infrastructure or resources) that a particular phenomenon
might cause. It is a function of the probability of particular occurrences and the losses that
each would cause (severity).
Risk management
Risk management includes the processes concerned with identifying, analysing and
responding to project risks. It includes both minimising the impact of adverse events and
maximising the likelihood of positive outcomes. Project risk management includes the
processes of risk assessment, risk mitigation and risk response.
Hazard
A hazard in the project management domain can be defined as a rare or extreme event, or the
probability of an occurrence in the natural or human-made environment, that adversely
effects the successful completion of the project, to the extent that it may cause economic,
time, infrastructure or resource loss.
Vulnerability
Vulnerability is the degree of loss to a given element (economic, time, infrastructure or
resources) that is at possible risk from the impact of a hazard of a given severity. It is specific
to a particular project and can be expressed on a scale of 0 to 10 (0 indicating no loss, 10
indicating total damage).
Probability
Risk probability in a project can be defined as which the risk event that is likely to occur. The
probability of certain risks influencing a project is determined by the nature of the project.
Frequency
Frequency refers to the number of times a particular risk can impact on a project, for example
rain interruption of a building project or systems downtime in an information technology
project.
Severity
The impact of a risk on a project can be defined by its severity. The severity of a risk is
mostly quantified into monetary terms, although other measuring tools are also often used.
Categories and types of risk
Clements and Gido identifies the following categories of risk:
• Technical
• Schedule
• Cost
• Human resources
• External
• Sponsor/customer

Some specific examples of risk include:

Market or price risk
Market or price risk is the risk of a decrease in the value of a financial portfolio as a result of
adverse movement in the market variables such as prices, currency exchange rates and
interest rates. In other words, market risk is the exposure arising from adverse changes in the
market value of a financial instrument or portfolio.

Interest rates risk

This is the risk of a loss that an organisation could suffer as a result of adverse consequences
due to fluctuations in interest rates. Most financial institutions face interest rate risk. Interest
rate risk is known to fluctuate and is by nature a speculative type of financial risk, since
interest rate movements can result in profits or losses. It can thus be urged that interest rate
risk depends on the state of the economy.
Liquidity
Liquidity is an organisation’s ability to meet its financial obligations within a given time
period. This risk will be reflected in insufficient funds or marketable assets being available.
Legal risk
Legal risk is the risk arising from violations of, or non-compliance with laws, rules,
regulations, prescribed policies and ethical standards. This risk also arises when laws or rules
governing certain products or activities of an organisation’s customers are unclear or
untested. Non-compliance can expose the organisation to fines, financial penalties, payment
of damages, and the voiding of contracts.
Operational risk
Operational risk is the risk of loss occurring as a result of inadequate systems and control,
human error, or management failure. It is the risk of a loss arising from human error,
management failure and fraud, or from shortcomings in systems or controls (Schwartz and
Smith).
Risk assessment
Risk assessment is the identification, quantification and evaluation of the probability of the
occurrence of risk events and the impact of the risk events on a project. Risk assessment
addresses issues such as: What can go wrong? How likely is this to happen? If it does happen,
what are the consequences? In essence, risk assessment is both proactive and reactive
measures to project risk management. Clements and Gido (2011) suggest the preparation of a
risk assessment matrix which would include the specific risk, the impact of the risk, and
probability of the risk, degree of impact of the risk, action trigger, responsibility and response
plan.
Risk management plan
The risk management plan process includes the following steps:
a) Define objectives
b) Identify risk
c) Quantify risk
d) Develop a response
e) Risk control
a) Define objectives
Risk may be defined as any event or constraint that prevents the project manager or team
from achieving the project’s goals and objectives. It is therefore necessary at the outset to
define these goals and objectives in some detail, and to indicate who is responsible for
achieving them.
b) Identify risk
Having defined the business objectives by one of the above breakdown structures, the next
step is to identify what areas of risk, uncertainty and triggers could prevent the progress team
from achieving these stated objectives. Techniques for identifying risk include:
• Analysing historical records and closeout reports
• Safety reports (health and safety requirements)
• Structured questionnaires
• Structured interviews
• Brainstorming
• Structured checklists
• Flow charts
• Judgement based on knowledge
• Scenario analysis
c) Quantify risk
Having identified a range of possible risks, the next step is to quantify the probability
(likelihood) of the risk occurring and the impact or consequence to the project, or to the
amount at stake. These risks should be assessed in consultation with appropriate stakeholders.
For any given risk, whether it is a natural disaster, a liability, or a worker’s compensation loss
exposure, the following steps should be followed to analyse the frequency and severity of the
risk:
i. Assign a category for the frequency of occurrence of a loss event.
ii. Assign a category for the severity of the loss event.
iii. Multiply the frequency value by the severity value.
iv. Prioritise the ratings for all loss exposures.

d) Develop a response
Risk response includes the development of proactive measures to counteract identified risks
and changes in risk over the course of a contingency planning. Clements and Gido (2011)
suggest the development of a separate risk response plan. Having identified, quantified and
prioritised the risks, you need to develop a risk response plan which defines ways to address
adverse risk and enhance entrepreneurial opportunities before they occur. The range of
responses includes:
• Eliminate risk.
• Mitigate risk.
• Deflect risk.
• Accept risk (contingency).
• Turn risk into an opportunity.
A contingency plan must also be formulated. A typical contingency plan should contain the
following information:
• Title
• WBS identification number
• Risk/risk events/threats
• Trigger events
• Contingency actions
• Responsible persons
• Cost implications
• Time implications
• Tasks effected
• Influence of critical path
e) Risk control
The risk control function implements the risk management plan to make it happen. This is the
most important part, but surprisingly is often neglected. The risk management plan needs to
be communicated to the entire project team, and where necessary, followed up with
appropriate training and practice runs. The risk management plan should consider:
• Changes in the scope work.
• Changes in the build method.
• Changes in the team members.
• Changes in the suppliers.

The ultimate goal of risk management is risk mitigation. Risk mitigation involves defining
the necessary steps to counter threats and to enhance opportunities. It is the active steps taken
to lessen the effects that a particular identified risk might have on a project outcome. It is also
the continuous measures taken during the life cycle of a project in order to ensure proactive
actions to unforeseen circumstances.
Conclusion
Effective risk management involves:
• Commitment to risk management by stakeholders, top management, the project steering
committee, the project manager and project team members, and
• An adequate project management approach (a capable project manager should take
responsibility for risk management, and he/she and the project team should have an
understanding of the technical and non-technical issues).

Risk management involves identifying, assessing, and responding to project risks in order to
minimise the likelihood and impact of the consequences of adverse events on the
achievement of the project objective. Risk identification includes determining which risks
may adversely affect the project objective and what the consequences of each risk might be if
they occur. Assessing each risk involves developing an action plan to reduce the impact or
likelihood of each risk, establish a trigger point for when to implement the actions to address
each risk, and assigning responsibility to specific individuals for implementing each response
plan. During the project, it is important to evaluate all risks to determine if there are any of
the risks, also, new risks maybe identified that were not considered as a risk earlier in the
project.

CHAPTER -6
PROJECT QUALITY MANAGEMENT

Introduction
The Project Management Institute defines quality as “the degree to which a set of inherent
characteristics fulfil requirements” (Rose, 2005). Rose (2005) states that:
- Quality involves products, defects, processes, customers and systems.

- Quality is the ability of a set of inherent characteristics of a product, system, or process to

fulfil requirements of customers and other interested parties.
- Quality is a fourth among equals in relation to the project triple constraint of time, cost and
scope

Project quality management includes the process required to ensure that the project will
satisfy the needs for which it was undertaken. Burke (2007) offers two definitions of project
quality management:
- “the processes required to ensure that the project will satisfy the need for which it was
undertaken” (PMBOK Guide, 2004); - “covering quality planning, quality control and quality
assurance.”

Project quality management is about the synergy of continuous improvement of the project
and the principle of project delivery. Using a quality approach plays a key role in assuring
that the project meets customer requirements. Quality management is the process for ensuring
that all project activities necessary to design, plan and implement a project are effective and
efficient with respect to the purpose of the objective and its performance.
This section covers the broad concepts associated with quality management, the different
costs of quality, quality planning, assurance and control, and quality management tools.

Concepts and definitions associated with project quality management

Garvin developed a list of eight quality dimensions which describe product quality:
- Performance: the efficiency with which a product achieves its intended purpose;

- Features: attributes of a product that supplement the basic performance;

- Reliability: propensity of a product to perform consistently over its useful design life;

- Conformance: compliance with numeric dimensions (specifications);

- Durability: the degree to which a product tolerates stress or trauma without failing;

- Serviceability: the ease of repair of a product;

- Aesthetics: subjective sensory characteristics such as taste, feel, sound, look and smell.
Quality is measured as the degree to which product attributes are matched to customer
preferences in terms of aesthetics;

- Perceived quality: based on customer opinion

Burke (2007: 255) provides the following definitions of quality management:

- Quality Management philosophy – the involvement of all project participants in order to
ensure that the goals and objectives of the project and the resulting product or service meets
the needs of the client, project team and other stakeholders.

- Quality Assurance - a systematic process of defining planning, implementing and reviewing

the management processes in order to provide adequate confidence that the product will be
consistently produced to the required condition.

- Quality Planning – the process of identifying the standards the project needs to comply with
order to achieve the required condition.

- Quality Control – defines the method of inspection (testing), in-process inspection and final
inspection to confirm that the product meets the required condition.

- Quality Audit – “a structured review of other quality management (QM) activities”.

- Project Quality Plan – a detailed document explaining how the company will assure that the
product will be made to the client’s requirements.

- Project Quality Management includes the processes and activities that determine the quality
policies, objectives, and responsibilities necessary to assure that project requirements are met.
Processes critical to the Quality Management System include Quality Planning, Quality
Assurance, and Quality Control.

- Quality Planning is an integral part of project management. It identifies relevant quality

standards and determines how they can best be satisfied.

- Quality Assurance ensures that project management utilizes the quality processes needed to
meet project requirements in a planned and systematic manner.

- Quality Control monitors specific project outputs and determines compliance with
applicable standards. It also identifies project risk factors, their mitigation, and looks for ways
to prevent and eliminate unsatisfactory performance.
The work of quality ‘gurus’ has been incorporated into three popular quality frameworks:
Total Quality Management (TQM), International Organisation for Standardisation (ISO) and
Six Sigma. Many organisations use these frameworks to define and organize their quality
initiatives (Kloppenberg, 2009:284).

Total Quality Management, International Organisation for Standardisation and Six

Sigma
Total Quality Management (TQM) considers the wider aspects of quality by integrating
quality management components into a quality management system. TQM is a systems
approach to quality management that focuses on the system and not any particular
components of the system. TQM has a people focus and an outcome focus. It advances the
rationale that each project needs a unique quality management system. It first identifies what
the client really wants and how it can best be achieved. It keeps an emphasis on continuous
improvement, but always endeavours to keep the customer satisfied. For quality to be
effective, it needs to be introduced to all members and all aspects of the operations. TQM is
underpinned by the following concepts:
- Quality is defined by customers,

- There must be a respect for people,

- All levels of the organization must want to participate,

- There must be an emphasis on continuous improvement,

- Prevention is better than detection (Burke, 2007).

Kloppenborg (2009:285) highlights the core values of TQM:

- Organisational and personal learning,

- Valuing employees,

Agility

- Focus on the future,

- Managing for innovation,

- Management by fact,

- Social responsibility,

- Focus on results and creating value,

- Systems perspective.

The ISO 9000

The ISO 9000 series of standards addresses quality management systems. The ISO standards
encompass eight quality management principles as listed in Table 7.1.

Table: ISO Principles

 Principle Brief Description

Customer focus Understand current and future customer

needs; meet requirements; strive to exceed
expectations; link organisation’s needs to
customer needs.
Leadership Leaders establish unity of purpose and
direction for the organisation.
Involvement of people Motivated, committed, and involved people
at all levels accept ownership of problems,
evaluate their own performance, and freely
share information.
Process approach Activities and related resources are
managed as processes resulting in
predictable results and improvement
opportunities.
Systems approach to management Integrate and align processes; focus effort
on key processes; understand
interdependencies, capabilities and
constraints before starting projects.
Continual improvement Use a consistent organization-wide
approach to continual improvement to
include training in methods, goals to guide
and measures to track.
Factual approach to decision-making Ensure data and information are accurate,
reliable and accessible; make decisions and
take action based upon analyzing facts;
challenge opinions and decisions.
Mutually beneficial supplier relationships Identify and select key partners; jointly
develop and improve with partners; openly
share communication with them.

ISO implementation provides many benefits. It forces analysis of all quality management
activities; it documents all aspects of the quality management system. The ISO approach is
prevention based; it focuses on prevention, not inspection. It is a framework for quality
improvement. Continual improvement is an essential part of the ISO approach (Rose,
2005:33).

Six Sigma

Six Sigma uses a process called DMAIC(define, measure, analyse, improve and control) to
plan and manage improvement. The DMAIC methodology is a 15-step process broken up
into 5 phases (Figure 7.1).

Figure 7.1: DMAIC Methodology

PROJECT QUALITY PLANNING

Rose (2005) provides a summary of project quality planning:

 Quality management includes quality planning, quality assurance, quality control, and
quality improvement.

 The quality management plan is part of the project plan. It includes the quality policy
(intended direction of the organisation regarding quality) and answers the questions:
Who is in charge (infrastructure and responsibilities)? Where are we going (goals)?
How are we going to get there (processes)?
 Quality planning is identifying which quality standards are relevant to the project and
how to satisfy them.

 Customers (internal or external) are the base in project quality.

  Customer and requirement identification and prioritisation should be performed early
in project planning so that the project starts in the right direction.

 Identifying specifications is also part of the quality journey. Specifications are

specific and measurable statements of requirements.

 Operational definitions provide a link between requirements and specifications.

Operational definitions remove ambiguity of terms by describing what something is
and how it is measured.

 Standards are closely related to specifications. Standards address how something is to

be done. Specifications provide specific targets for performance.

The inputs to quality planning are:

1. Quality policy

This is the overall intentions and direction of an organization with regard to quality, as
formally expressed by the top management. In the case of a joint venture, a quality policy for
the individual project should be developed. The management team is responsible for
dissipating the quality policy to all project stakeholders through appropriate information
distribution channels.

2. Scope statement

The scope statement is a key input to quality planning because it documents major project
deliverables as well as project objectives which serve to define important stakeholder
requirements.

3. Product description

Although the elements of the product description may be embodied in the scope statement,
the product description often contains details of technical issues and other concerns that may
affect quality planning.

4. Standards and regulations

The project management team any application-area-specific standards or regulations that may
affect the project.

5. Other process outputs

In addition to the scope statement and product description, processes in other knowledge
areas may produce outputs that should be considered as part of the quality planning.

Tools and techniques for quality planning are:

 Benefit / cost analysis

The planning process must consider benefit/cost tradeoffs. The primary benefit is less
work, higher productivity, lower costs and increased stakeholder satisfaction. The
primary cost is the expenses associated with project quality management activities.

 Benchmarking

Benchmarking involves comparing actual or planned project practices to those of

other projects to generate ideas for improvement and provide a standard for
measurement of performance.

 Flowcharting

The flowcharting techniques in quality management generally include cause and

effect diagrams and system or process flow charts. Flowcharting can help in
anticipating probable quality problems and thus helps to develop approaches for
dealing with them.

 Design of experiments

This is an analytical technique which aims to define variables that have most
influence on the overall outcome.

The outputs from quality planning are:

  Quality Management Plan

The quality management plan should describe how a project management team will
implement its quality policy. The plan should define the organisational structure, roles and
responsibilities and resources needed for implementation of quality management. The quality
management plan should address Quality Control of the project, Quality Assurance and
Quality Improvement of the project.

 Quality metrics and quality checklists

 Process improvement plan and quality baseline.

QUALITY ASSURANCE

Quality assurance is evaluating the overall project performance on a regular basis to provide a
confidence that the project will satisfy the relevant quality standards.

Inputs to Quality Assurance

 Quality management plan

 Operational definitions

 Results of quality control measurements which are records of quality control testing
and measurement in a format of comparison or analysis.

Tools and techniques for Quality Assurance

 Quality planning tools and techniques

 Quality audits which are a structured review of other quality management activities.
They may be timely or carried out randomly. They may be carried out by properly
trained internal auditors or by third parties such as quality systems registration
agencies.

Outputs from Quality Assurance

  Quality Improvement

Quality improvement includes taking action to increase the effectiveness and efficiency of the
project to be able to provide added benefits to the stakeholders of that project. In many cases,
the implementation of quality improvements will require preparation of change requests or
taking corrective actions and will be handled according to procedure for overall change
control.

 Recommended corrective actions

 Organisational process assets updates

 Project management plan updates.

QUALITY CONTROL

Quality control involves monitoring specific project results to determine if they comply with
relevant standards and identifying ways to eliminate causes of unsatisfactory results. Project
results mentioned include both product results such as deliverables and management results
such as cost and schedule performance. The project management team should have a working
knowledge of statistical quality control especially sampling and probability to help evaluate
and control outputs.
The project manager and team should be aware of the following:
- Prevention (keeping errors out of the process)

- Inspection (keeping errors out of the customer’s hand)

- Special cause (unusual events)

- Random causes (normal process variations)

- Tolerances (where results should fall within a defined tolerance range)

- Control limits (the process is in control if it falls within these defined limits).

The inputs to Quality Control are:

 Work results: including both product results and process results

 The quality management plan

  Operational definitions

 Checklists.

Tools and techniques for Quality Control

 Inspection

Inspection includes activities such as measuring, examining and testing undertaken to

determine whether results conform to requirements. Inspection can be carried out on the level
of a single activity or a final product. Inspections can be called reviews, product reviews,
audit and walk-through.

 Control charts
These charts are graphical representations that display the result of a process over time and
are used to determine if the process is “in control”. Control charts may be used to monitor
any type of output variable. Control charts are most often used to monitor repetitive activity
in production but can also be used to monitor cost and schedule variances.

 Pareto diagram

A Pareto diagram is a histogram ordered by frequency of occurrence which shows how many
results were generated by what category or identified cause. Typically the Pareto diagram
reflects that a relatively small number of causes are responsible for the majority of the
problems or defects.

 Statistical sampling involves choosing a part of a population of interest for inspection.

 Flowcharting is used in quality control to help analyse how a problem occurs.

 Trend analysis involves the use of mathematical techniques to forecast future

outcomes based on historical results. It is often used to monitor technical performance
and cost and schedule performance.
The outputs for Quality Control are:

 Quality improvement
  Acceptance decisions, where the inspected items will either be accepted or
rejected and those rejected may be reworked.

 Rework, which is action taken to bring defects or nonconforming items into

compliance with requirements and specifications. Rework is a frequent cause
of project over-runs.

 Completed checklists

 Process adjustments which involves immediate corrective or preventive action

as a result of quality control measurements. In some cases the adjustment may
need to be handled according to procedures for overall change control.

QUALITY MANAGEMENT TOOLS

a) Check sheets

Check sheets are data gathering tools. They are used to compile and record data from
observations or historical data.

b) Graphs

The purpose of a graph is to organise, summarise and display data, usually over time. The
different types of graphs include line graphs, bar graphs and circle graphs.
c) Histograms

A histogram is a type of bar graph that deals with data that exist in a continuous range from a
low number to a high number. Histograms display frequency distribution.

d) Pareto charts

Pareto charts are used to identify and prioritise problems to be solved. They are actually
frequency charts that are aided by the 80/20 rule. This rule states that roughly 80% of
problems are created by roughly 20% of causes (Pareto Principle). This means that there are a
vital few causes that create most of the problems. A Pareto chart is a bar graph with data in
descending order. It involves identifying the vital few contributors that account for most
quality problems in a system and uses a histogram or column chart that can help identify and
prioritize problem areas.

Figure : An example of a Pareto chart.

Pareto charts disclose two important types of information. First, the left-most bar indicates
the greatest opportunity for improvement because it represents the source of error responsible
for the most problems. Second, the chart identifies the “vital few”, those sources that account
for most of the defects or errors, and the “trivial many”. The steps in Pareto analysis include:
a. Gathering categorical data relating to quality problems.

b. Drawing a frequency chart of the data (the data is arranged in descending order
from left to right on the chart).

c. Focusing on the tallest bars first when solving the problem.

e) Scatter diagrams

A scatter diagram identifies possible relationships between two variables. The closer data
points are to a diagonal line, the more closely the two variables are related.
Figure : An example of a scatter diagram.

f) Flowcharts

A flow chart identifies the sequence of events in a process. Flow charts are graphic displays
of the logic and flow of processes that help analyse how problems occur and how processes
can be improved. They show activities, decision points, and the order of how information is
processed.

Figure : An example of a flow chart.

g) Run charts

A run chart is used to observe process performance over time. It is a line graph with data that
vary around a centre-line, usually the mean. Run charts a used for the following:
 Display the history and pattern of variation of a process over time.

 Are line charts that show data points plotted in the order in which they occur.

 Can be used to perform trend analysis to forecast future outcomes.

Figure : An example of a run chart.

h) Quality control charts

Control charts are tools for monitoring, controlling and improving processes over time.
Quality control charts:

 Is a graphic display of data that illustrates the results of a process over time.

 Are mainly used to prevent defects, rather than to detect or reject them.

 Allow the determination of whether a process is in control or out of control.

When a process is in control, any variations in the results of the process are created by
random events; processes that are in control do not need to be adjusted. When a process is out
of control, variations in the results of the process are caused by non-random events; one
needs to identify the causes of those non-random events and adjust the process to correct or
eliminate them. Quality control charts and the seven-run rule can be used to look for patterns
in data. The seven-run-rule states that if seven data points in a row are all below the mean,
above the mean, or are all increasing or decreasing, then the process needs to be examined for
non-random problems.
Figure : An example of a quality control chart and the seven-run rule.

i) Cause and effect diagrams (Fishbone or Ishikawa diagrams)

These are used to identify, explore and graphically display all possible causes related to a
problem. Cause-and-effect diagrams are used to:

 Trace complaints about quality problems back to the responsible production

operations.

 Help find the root cause of a problem.

 Can also use the 5-whys technique where question “Why” is repeated five times to
peel away the layers of symptoms that can lead to the root cause.
CHAPTER -7
PROJECT COMMUNICATION

Introduction

Communication in any institution is critical to its success, and this is certainly true of
projects. The aim of communication is to ensure that the information necessary for the
management of projects is collected and exchanged or distributed on time, and that when
required, is adequately stored for easier retrieval. This requires a communication plan, as part
of the project plan, which specifies what information will be collected and when, who will be
responsible for the collection and analysis of the data, and to whom, how and when it will be
distributed.

Communication skills and planning are essential to address the issues and challenges
associated with project management. Communication is the basis for gaining understanding
between project team members, for discussing project issues and for settling team disputes.
People in an institution must communicate, but the criteria that characterise project activities
means that they must communicate effectively and efficiently if the work is to be well
directed and managed.

The way project outcomes are communicated can affect how people perceive and accept
those outcomes. Project managers and project team members should be effective
communicators. Communication is a key tool that project team members must use in dealing
with the concerns, service needs and enquiries of clients and role players.
In this section, a broad overview of personal communication is provided. Communication is
defined within a project setting, after which the significance of communication in projects is
explained. Project communication planning, documentation management and meeting and
presentation fundamentals, also come under scrutiny. Lastly, the project communication plan
is discussed.

Communication in a project environment

Communicating is a broader discipline and involves a substantial body of knowledge that is

not unique to the project context. Elements of communication in project environment are

• Sender-receiver models (feedback loops, barriers to communication, etc.);

• Choice of media (when to communicate in writing versus when to communicate orally;

when to write an informal memo versus when to write a formal report; etc.);

• Writing style (active versus passive voice, sentence structure word choice, etc.);

• Presentation techniques (body language, design of visual aids, etc.);

• Management techniques (preparing a meeting agenda, dealing with conflict, etc.).

Project communication as an academic field embraces a large body of knowledge. Within a

project management context, communication focuses on:

• How the project team members communicate with one another;

• How the project team, and specifically the project manager, liaise with senior management
and internal stakeholders on project resources and progress;

• How the project team liaise with external stakeholders such as the media and community
leaders;

• The distribution of information to all project stakeholders and role-players using appropriate
media and technology;

• The planning and compilation of a project communication plan;

• Project-related documentation (progress reports, etc.).

Personal communication

Basically the personal communication is divided among verbal and non-verbal

communication. These can be classified as follows:
Oral (Verbal)

According to Healy (1997:232), oral communication is the key form of communication in

any project. Written documents, if often serve simply to record what has already been agreed
upon during discussions. Oral or verbal communication, as part of project problem solving,
takes place without written records. In any managerial hierarchy, work is done through oral
communication, as well as through significant amounts of written records.

Written

There is always potential for conflict between the desire to limit the quantity of
correspondence that is a feature of large projects, and the need to ensure that the essential
communications are properly maintained. All project team members should be instructed to
adopt the “need to know” principle, so that copies of written communications are limited to
those who need the information. The need for clarity and simplicity in written communication
also requires constant emphasis.

Graphical

Design and construction drawings (e.g. housing projects) are an essential basis for project
management. In a large project there will be numerous drawings to be issued and approved.
Charts and graphs are also used to convey information. This applies particularly to planning
and progress data and reports. It is important that this data is presented in a clear and accurate
way, and supported by adequate written explanations so that ambiguity is avoided.

Numerical

Tables of data are also used to convey project information. It is important that adequate
explanatory notes are provided, so that readers gain a rapid and accurate understanding of the
numerical information. Numerical data should be presented in a form that can be readily
understood by management.

Electronic

In modern project management, applied and computer technology are in general use. There is
a tendency to believe implicitly in the output from computers. However, output should be
regarded critically. It will have the same degree of accuracy as the input.

Significance of communication in project management

Project communication has a dual purpose: the first is to cause some action or agreement to
take place, and the second is to make a record that might be needed later. The larger the
number of people involved in the project, the more communication paths there are, and the
more project time is spent on simply sharing information and keeping stakeholders and role
players up to date.

Inefficiencies in communication, and especially the lack of communication, can severely

affect a project’s schedule and chances for success. Communication management is even
more necessary if the project team is spread out over different geographical areas and
timelines.

Large projects generate huge quantities of information. If this information is to be used

effectively to manage project activities, it must be organised systematically and structured to
provide suitable information for the various levels of project management.

Proper communication in a project is a critical success factor for managing the expectations
of the customer and the stakeholders. There is a much greater chance of problems and
difficulties occurring due to differing levels of expectations. In fact, in many cases where
conflicts arise, it is not because of the actual problem but because the customer or manager
was surprised. Project communication management provides the critical link among people,
ideas and information that is necessary for success. Everyone involved in the project
‘language’, must understand how the communications they are involved in as individuals,
affect the project as a whole.

Project meetings

The different types of project meetings are

• Project kick-off meetings

• Status review meetings

• Problem solving meetings

• Design review meetings

• Post-project evaluation meeting

Three of the above types of meetings will be discussed in this section.

Status review meetings

The primary purposes of such a meeting are to inform, identify problems, and to identify
action items. According to Clements and Gido, the following are some of the subjects that
might be discussed as part of the agenda:
• Accomplishments since the last meeting

• Cost, schedule, and work scope (status)

• Cost, schedule, and work scope (trends)

• Cost, schedule, and work scope (forecasts)

• Cost, schedule, and work scope (variances)

• Risk assessment update

• Corrective actions

• Opportunities for improvement

• Action item assignment

Problem-solving meetings

The purpose is to identify and resolve the problem as early as possible for a project to be
successful. According to Clements and Gido (2011:376), the problem solving meeting should
follow a good problem solving approach, such as:

a) Develop a problem statement.

b) Identify potential causes of the problem.

c) Gather data and verify the most likely causes.

d) Identify possible solutions.

e) Determine the best solution.

f) Revise the project plan.

g) Implement the solution.

h) Determine whether the problem has been solved.

Design review meetings

Projects that involve a design phase, such as an information system project or development of
a new marketing brochure, may require one or more technical design review meetings to
ensure that the customer agrees with, or approves of, the design approach developed by the
project contractor.
The two types of design review meetings are:

• A preliminary design review meeting.

• A final design review meeting.

Clements and Gido also describe some general steps to effectively prepare for meetings:

a) Determine whether a meeting is really necessary.

b) Determine the purpose of the meeting.

c) Determine who needs to participate in the meeting.

d) Distribute an agenda well in advance of the meeting.

e) Prepare visual aids or handouts.

f) Make meeting room arrangements.

Project presentations

Clements and Gido also describe some important points to take note of in preparation of and
during a presentation: the guidelines for effective project presentation are

• Determine the purpose of the presentation.

• Know the audience.

• Make an outline of the presentation.

• Use simple language that the audience will understand.

• Prepare notes or a final outline that you will use or refer to during your presentation.

• Prepare visual aids and test them.

• Make copies of handout materials.

• Go into the meeting room when it is empty or not in use and get a feel for the surroundings.

• Include divergent views or issues.

• Break the material into short sections to facilitate questions and discussion.

• Create tension slides to help the audience move from one section or point to the next.

• Build-in variety, surprise, or changes of pace.

• Don’t overwhelm the audience with information- make each slide comprehensible, simple,
and tied with a common thread throughout the presentation.

• Identify and make arrangements for audiovisuals and other resources.

• Test the presentation equipment before the audience arrives.

• Monitor the time.

• Develop a strong conclusion related to the presentation content.

• Know the first two or three sentences of your presentation.

• Speak clearly and confidently.

• Use appropriate animation to help make a point.

• Do not stand in front of your visual aids.

• Keep to the key points in your outline.

• When making key points, explain to the audience why they are important.

• Allow time for interaction with the audience, if appropriate.

• When responding to questions, be sincere, candid, and confident.

Project reports

According to Clements and Gido , the two most common types of project reports are:
Progress /Status reports and Final Reports.

Items that might be included in a progress report include the following:

• Accomplishments.

• Current status of project performance.

• Progress toward resolution of previously identified problems.

• Problems or potential problems since prior report.

• Planned corrective actions.

• Milestones expected to be reached during the next reporting period.

The project final report is usually a summary of the project. The final report might include:

• Customer’s original need.

• Original project objective.

• Customer’s original requirements.

• Actual versus anticipated benefits to the customer as a result of the project.

• Degree to which the original project objective was met.

• Brief description of the project.

• Future considerations.

• A list of all deliverables.

Project communication plan

Communication planning involves determining the information and communication needs of

the stakeholders: Who needs what information? When will they need it? and how will it be
given to them. While all projects share the need to communicate project information, the
informational needs and methods of distribution vary widely. Identifying the informational
needs of the stakeholders, and determining a suitable means of meeting those needs, are
important factors for project success. A project communication plan defines the generation
and distribution of project documentation among stakeholders throughout the project.

The following elements may be included in a project communication plan:

• Documents (e.g. project charter, contract, scope document, WBS, quality plan, etc.)

• Author or originator

• Required date or frequency

• Recipients

• Action required

• Comments