Passing the APM Project

Fundamentals Qualification

APMBOK 7 Edition

Robin Kay BA MBA

Copyright © 2023 by Robin J Kay

robinjkay@aol.com

All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, transmitted or utilised in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise without written permission from the author.

ISBN: 978-0-244-91205-5

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Preface

The information contained within this book is based upon sound and generally accepted project management
principals. It is intended to cover those areas of the APM Body of Knowledge (7th edition, 2020) that are
included in the PFQ syllabus.

To study for this certificate requires no prior knowledge or experience in project management. It is designed
for anyone starting out on the first steps of a career in project management or those simply working in or
around a project environment and who need to know a little more about project management.

There are two ways you can register to sit the PFQ examination: by registering for a training course and exam
with an accredited training provider, or by self-study and sitting the exam on one of APM’s open events or
online.

Assessment is by a 60 question, multiple-choice exam taken over one hour

For more information see https://www.apm.org.uk/qualifications-and-training/project-management-

fundamentals/

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Contents
1 Project Management and the Operating Environment .................................................................. 7
1.1 What is a project? ................................................................................................................ 8
1.2 The Key Purpose of Project Management ............................................................................. 8
1.3 The Project Manager ............................................................................................................. 9
1.3.1 The 4 Key Project Management Roles ............................................................................ 9
1..3.2 The 6 Major Project Management Activities ................................................................. 9
1.4 The Project Management Triangle .......................................................................................10
1.5 Projects v Business-as-Usual ...............................................................................................10
1.6 Programme Management .....................................................................................................11
1.6.1 Programme v Project .....................................................................................................12
1.6.2 Programme Manager Roles & Responsibilities .............................................................13
1.7 Portfolio Management .........................................................................................................13
1.7.1 Benefits of managing groups of projects as a portfolio .................................................14
1.7.2 Differences Between Programmes and Portfolios ........................................................15
1.8 PESTLE Analysis ................................................................................................................15
2 Project Life Cycles and Reviews .................................................................................................17
2.1 A Linear Project Lifecycle ...................................................................................................18
2.1.1 Concept phase (or Initiation/Feasibility) ........................................................................18
2.1.2 Definition (or Planning) phase .......................................................................................18
2.1.3 Implementation (or Execution) phase ............................................................................18
2.1.4 Handover .......................................................................................................................18
2.1.5 Closeout .........................................................................................................................19
2.2 Iterative life cycle ................................................................................................................19
2.3 Time Boxes ..........................................................................................................................20
2.4 Hybrid Life Cycles...............................................................................................................20
2.5 The Extended Project Life Cycle ........................................................................................20
2.6 Phase/Gate Reviews .............................................................................................................21
2.7 Post Project Review/Lessons Learned review ......................................................................21
3 Roles and responsibilities ............................................................................................................23
3.1 Project Organisation Structure .............................................................................................24
3.2 The Project Board ................................................................................................................24
3.3 The Project Sponsor.............................................................................................................24
3.3.1 Sponsor responsibilities .................................................................................................25
3.3.2 Sponsor activities ...........................................................................................................25
3.4 The Project Team & Team Leaders .....................................................................................25
3.5 The End Users .....................................................................................................................25
3.6 Quality Assurance ................................................................................................................25
3.7 The Project Office................................................................................................................26
3.7.1 Project Support Office-PSO ...........................................................................................26
3.7.2 Project Management Office-PMO .................................................................................26
3.7.3 Central Programme Management Office-CPMO ...........................................................27
3.7.4 Benefits of a Project Office............................................................................................27
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 3.8 Project Governance ..............................................................................................................27
4 Project Management Planning.....................................................................................................29
4.1 Building the Business Case ..................................................................................................30
4.1.1 Business Case Objective & Purpose ..............................................................................30
4.1.2 Contents of a Business Case ..........................................................................................30
4.1.3 Constructing a Business Case ........................................................................................30
4.1.4 Contents of a Business Case ..........................................................................................31
4.2 Success and Benefits Management ......................................................................................31
4.2.1 Project Success Criteria .................................................................................................31
4.2.2 Project Success Factors ..................................................................................................32
4.2.3 Key Performance Indicators ..........................................................................................32
4.3 Stakeholder Management ....................................................................................................32
4.3.1 Typical Stakeholders .....................................................................................................33
4.3.2 The Stakeholder Management Process ..........................................................................33
4.3.3 Benefits of Stakeholder Management ............................................................................34
4.4 The Project Management Plan .............................................................................................34
4.4.1 Project Plan Content ......................................................................................................35
4.4.2 Project Plan Attributes ...................................................................................................35
4.4.3 Deployment Baselines ...................................................................................................36
4.5 Benefits Management ..........................................................................................................36
4.5.1 Responsibility ................................................................................................................36
4.5.2 Benefits review ..............................................................................................................36
4.6 Estimating Methods .............................................................................................................36
4.6.1 Analytical (Bottom Up) Estimating ...............................................................................37
4.6.2 Analogous Estimating ....................................................................................................37
4.6.3 Parametric Estimating ....................................................................................................37
4.6.4 The Estimating Funnel ...................................................................................................37
4.7 Project Reporting .................................................................................................................38
4.8 Report Structure ...................................................................................................................38
5 Scope Management .....................................................................................................................39
5.1 Definition of Scope Management ........................................................................................40
5.2 Work Breakdown Structure .................................................................................................40
5.2.1 Benefits of the WBS ......................................................................................................41
5.3 The Product Breakdown Structure .......................................................................................41
5.4 Relationship between WBS and PBS ...................................................................................42
5.5 Cost Breakdown Structure ...................................................................................................42
5.6 Organisational Breakdown Structure (OBS) ........................................................................43
5.7 Change Control ....................................................................................................................43
5.7.1 Definition of a Change ...................................................................................................43
5.7.2 Why Change Control is Important .................................................................................44
5.7.3 The Change Control Process ..........................................................................................44
5.7.4 The Change Request Form.............................................................................................45
5.7.5 Impact Analysis .............................................................................................................45
5.7.6 The Change Control Log ...............................................................................................46
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 5.8 Configuration Management .................................................................................................46
5.8.1 Configuration Management Activities ...........................................................................46
5.8.2 Components of the Configuration Management System ................................................47
5.8.3 Link to change control ...................................................................................................47
6 Scheduling & Resource Management .........................................................................................49
6.1 The Precedence Diagramming Method ................................................................................50
6.1.1 Other Link Types ...........................................................................................................50
6.1.2 Leads and Lags ..............................................................................................................51
6.1.3 Critical Path Analysis (CPA) .........................................................................................51
6.1.4 Node Convention ...........................................................................................................52
6.1.5 Worked Example ...........................................................................................................52
6.1.6 The Critical Path ............................................................................................................54
6.1.7 Total Float and Free Float ..............................................................................................55
6.1.8 Gantt Charts ...................................................................................................................55
6.1.9 Gantt Chart Features ......................................................................................................56
6.1.10 Gantt v Network ..........................................................................................................56
6.1.11 Milestone Planning ......................................................................................................57
6.2 Resource Management.........................................................................................................57
6.3 Resource Smoothing ............................................................................................................58
6.4 Resource Levelling ..............................................................................................................59
6.5 Procurement .........................................................................................................................60
6.5.1 Definitions .....................................................................................................................60
6.5.2 The Procurement Process ...............................................................................................60
6.5.3 Procurement Strategy .....................................................................................................61
6.5.4 Make or Buy ..................................................................................................................61
7 Project Risk & Issue Management ..............................................................................................63
7.1 Definitions of Risk...............................................................................................................64
7.2 The Risk Management Plan .................................................................................................64
7.3 Risk Management Process ...................................................................................................64
7.3.1 Initiation ........................................................................................................................65
7.3.2 Risk Identification .........................................................................................................65
7.3.3 Risk Assessment ............................................................................................................66
7.3.4 Risk Response Planning.................................................................................................67
7.3.5 Implement Responses ....................................................................................................68
7.3.6 The Benefits of Managing Risk .....................................................................................69
7.3.7 Drawbacks of Managing Risk ........................................................................................69
7.4 Issue Management ...............................................................................................................69
7.4.1 Issue Log .......................................................................................................................70
8 Project Quality Management .......................................................................................................71
8.1 Definition of Quality............................................................................................................72
8.1.1 Quality V Grade.............................................................................................................72
8.1.2 Elements of Quality Management ..................................................................................72
8.1.3 Quality Planning ............................................................................................................72
8.1.4 Quality Assurance ..........................................................................................................73
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 8.1.5 Quality Control ..............................................................................................................73
8.1.6 Quality Control v Quality Assurance .............................................................................73
8.1.7 Continuous Improvement.............................................................................................73
8.1.8 Project Management Responsibilities ............................................................................74
9 Communication ...........................................................................................................................75
9.1 Communications Management ............................................................................................76
9.2 Channels of Communication................................................................................................76
9.3 Barriers to Communication ..................................................................................................77
9.3.1 Physical .........................................................................................................................77
9.3.2 Interpersonal ..................................................................................................................77
9.3.3 Organisational ................................................................................................................77
9.3.4 Culture and Language ....................................................................................................77
9.3.5 Jargon ............................................................................................................................78
9.4 Effective Communications...................................................................................................78
9.5 Importance of effective communications planning ..............................................................78
9.6 The Communications Management Plan .............................................................................79
10 Teamwork and Leadership .................................................................................................81
10.1 The Project Manager as Leader .........................................................................................82
10.1.1 Attributes of Good Leaders .....................................................................................82
10.1.2 Leadership Activities ..............................................................................................82
10.1.3 Leadership Styles (Hersey & Blanchard) .....................................................................83
10.2 The Project Team ...............................................................................................................84
10.2.1 A Team Definition .......................................................................................................84
10.2.2 Characteristics of Effective Teams ..............................................................................84
10.3 Team models......................................................................................................................84
10.3.1 Belbin Roles ................................................................................................................84
10.3.2 Advantages & disadvantages .......................................................................................86
10.4 Team Building ...................................................................................................................86
10.5 Stages in Team Development.............................................................................................87
10.6 Influencing Team Performance ..........................................................................................88

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1 Project Management and the
Operating Environment

Learning Objectives

• Define “what is a project” and “what is project

management”

• State the key purpose of project management

• Understand the benefits of effective project

management

• Identify the differences between projects and business

as usual

• Explain “PESTLE”

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 1.1 What is a project?
Here are three different definitions

“An endeavour in which human, material and financial resources are organised in a novel
way to deliver a unique scope of work of given specification, often within constraints of
cost and time, and to achieve beneficial change defined by quantitative
and qualitative objectives.”
The Association for Project Management

“A temporary endeavour undertaken to create a unique product, service or result.”

Project Management Institute

A unique set of coordinated activities, with definite starting and finishing points,
undertaken by an individual or organisation to meet specific objectives within defined
schedule, cost and performance parameters”

BS6079 (Guide to Project Management)

All of these are valid definitions from which we can determine the following key
characteristics that together differentiate projects from “business as usual”.

• Projects are Unique. When doing a project, we create something that did not
previously exist. Some projects are totally different whist others may contain some
elements similar to previous projects.

• It is the unique elements of projects that causes them to involve Risk & Uncertainty.

• Projects are Finite and Temporary. They have a start point and an end point.

• Projects have Defined Deliverables. Whether it is a physical product, a piece of

software or a service delivery there will be a specification that defines the
characteristics and quality parameters of the end product. An Acceptance Test will
take place to determine whether the product meets the specification.

• Projects generally require Teams and teams need Organising and Leading

1.2 The Key Purpose of Project Management

‘The key purpose of project management is the planning, monitoring and control of all aspects of a project
and the motivation of all those involved in it to achieve the project objectives, on time and to the specified
cost, quality and performance.

Planning, monitoring and controlling are the mechanical aspects of project management. The
most difficult aspect of project management is the leading and motivation of the project team,

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 especially when things are not going well. Being good at the mechanical tasks is not sufficient
to make a good project manager. Leadership skills are paramount. See later.

1.3 The Project Manager

The job of the Project Manager can be summed up with 4 key roles and 6 major activities.

1.3.1 The 4 Key Project Management Roles

• Integrator:
o Project Integration involves all those activities needed to ensure that people, procedures and
work of the project is carried out in a coordinated fashion. The project manager is the only
person aware of all the project activities and how they relate to each other.
• Communicator:
o The project manager must ensure that efficient communication channels are set up within
the project organisation. A project manager who fails to disseminate information on time
can become the major bottleneck in a project.
• Leader:
o Leadership is not the same as management. The project manager must be able to solve
problems, guide people from different areas, co-ordinate the project, lead by example and
motivate the team
• Decision Maker:
o The project manager must have the self-confidence to make key decisions even if some risk
is involved. A key aspect of project management is knowing when to make a decision and
when to consult the sponsor.

1..3.2 The 6 Major Project Management Activities

• Planning:
o Making sure robust plans are in place to meet the project objectives.

• Organising/Integrating:
o Co-ordination of the mixture of human, financial and physical assets

• Monitoring
o Monitoring progress in relation to time, cost & quality and customer satisfaction

• Controlling
o Taking corrective action when actual performance deviates from the plan

• Leading/Motivating
o Leading and motivating the team and seeing to the needs of individuals

• Reporting/Communicating
o Keeping stakeholders informed of progress and issues

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 1.4 The Project Management Triangle
The interaction of Time, Cost and Quality/Performance is usually represented by the Project
Management Triangle, sometimes referred to as the triple constraint. In the centre of the
triangle lie Health & Safety and Customer Satisfaction. These should be paramount on any
project.

The Project
Management
Triangle.

It is rare that a project goes exactly to plan. There will be changes, both planned and
unplanned and the whole project is subject to risk and uncertainty. When deviations occur one
or more of the triple constraints has to give. For example if a project is behind schedule more
resources may be needed to catch up. This will increase cost. If the budget is fixed then it may
be necessary to reduce quality or functionality. The responsibility for making such decisions
lies with the Sponsor and his Board. The job of the project manager is to advise on the
possible options and their implications.

Projects take place in a cloud of uncertainty. The Project Manager is constantly maintaining a
balance between time, cost and quality with due regard to health and safety and with the
constant goal of achieving customer satisfaction.
.
1.5 Projects v Business-as-Usual
Business as Usual is the term used to describe the normal business processes and operations
conducted by the company or organisation as it undergoes its day to day business. Much of it
consists of repeatable and routine management processes. It provides the services and products
for business customers on a daily and continuous basis. It is focused on such things as:-

• Meeting business performance targets such as quality, revenue and profit

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 • Ensuring that owners, shareholders and the taxpayer get value for money

• Satisfying customer needs and requirements

• Handling issues and problems

Projects are Unique. When doing a project, we create Business-as-Usual usually involves the
something that did not previously exist. Some projects are ongoing provision of specified products or
totally different whist others may contain some elements services on a Repetitive basis.
similar to previous projects
Projects are Temporary endeavours that are Finite or Busines-as-Usual is an ongoing process
Timebound. They have a start point and an end point. that continues indefinitely.
When the objectives are met, the project terminates. (Some
projects are terminated before the objectives are met. This
will be discussed later)

Projects usually involve creating a team which only exists For stability and efficiency Business-as-
for the life of the project. Usual requires a Permanent Workforce
with minimal turnover.

Projects are normally Revolutionary in that their outcome Business-as-Usual on the other hand is
is normally a step change in the way something operates. Evolutionary in the sense that
organisations strive for continuous
improvement in small non-disruptive
steps
Because of their uniqueness Projects usually involve Risk Business-as-Usual is based on cumulative
and Uncertainty. Managing risk is a key aspect of project Experience that minimises or eliminates
management. risk.

Projects take place in an environment that is Dynamic and Business-as-Usual relies on a Stable and
Changing Predictive environment.
Projects have specific plans that are implemented and are Business as usual follow internal
generally bespoke and created to meet the deliverables of procedures and process that maintain the
the project business.
Projects are constrained and measured by the requirements Business-as-usual strives at all times to
of time, cost and quality. decrease costs and improve quality and
productivity.

1.6 Programme Management

A Programme is a group of projects that are inter-related and/or interdependent and contribute
to a common strategic objective. Although each project is managed independently there must
be overall coordination. This is the role of Programme Management.

• Programme Management is a strategic tool. Programmes are generally overseen by

the CEO and the Board.

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 • Programme Management provides a strategic tool for managing business projects and
keeps the focus on the business change objectives

• Projects in a programme can be in parallel or in series or a combination of both.

Hence programs can be finite or ongoing

• Projects within a Programme still have individual project managers who report to the
programme manager who in turn reports either to a senior sponsor who could be a
board member or to the board itself.

• Programmes will ensure project objectives are in line with corporate objectives

• There will be more efficient use of resources because they will be allocated with
regard to overall programme requirements rather than individual projects

• Coordination will be carried out all across projects in the programme

• Risks are managed across the programme

1.6.1 Programme v Project

Program success is measured in terms of delivering a Project success is measured in terms of

defined benefit. producing specific deliverables in terms of time,
cost, quality, and customer satisfaction
Because they are concerned with benefits and not Projects are more concerned with specific,
deliverables, programs are more strategic than measurable deliverables than with resultant
projects. They are concerned with delivering benefits.
beneficial change
Programmes typically last much longer than projects, Projects are typically shorter and by definition
possibly containing projects which are overlapping have a finite duration.
and sequential. They may not have a planned end
date.
Programmes have a wider scope. In order to attain the The scope of the project is pre-determined in the
benefits, they may have to make large scope changes project plan and can only be varied by means of
to meet the emerging needs of the organisation. formal change control.
Programmes are typically multi-functional, involving Projects are often confined, or are the
large areas of the organisation responsibility of, a specific function withing the
organisation

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1.6.2 Programme Manager Roles & Responsibilities
The principal responsibility of the programme manager is to ensure that the objectives of the
programme are met. In order to do this the programme manager: -

• Must ensure that all project managers share a vision across the whole of the
programme so that all project plans are fully aligned with the programme objectives.

• Will act as the link between individual projects and project boards and the
programme board and must ensure that all information flow both between projects
and upwards to the programme board is timely and accurate.

• Must ensure that all projects are progressing in line with the requirements of the
programme

• Makes sure that scarce resources are prioritised across projects for maximum
programme benefit

• Acts as manager and mentor to the individual project managers

Unless asked for assistance the programme manager does not normally get involved with the
detail of individual projects but is responsible for managing the interfaces between them and
resolving conflicts between them.

1.7 Portfolio Management

Portfolio management is the selection and management of an organisation’s projects and
programmes in order to facilitate its strategic objectives, with due regard to the impact of
change initiatives on business-as-usual. Portfolio management can be carried out at both
organisational and functional levels.

It is always appropriate to use portfolio management when an organisation is carrying out

projects and programmes which will impact on current and/or future operations.

There are 5 main areas, or characteristics, involved in managing a portfolio:-

1. Project selection.
Projects for potential inclusion within the portfolio should be carefully selected
and a business case prepared. Projects should align with corporate strategy and
contribute to overall corporate goals. Projects within the portfolio should exhibit
an appropriate balance between risk and return.

2. Resource allocation.
This is concerned with the management of resources across competing projects
and programmes within the portfolio. Resource issues will occur between
projects particularly with to regard to scarce or limited resources and capacity

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 bottlenecks. The portfolio manager must decide on the optimum allocation of
resources.

3. Monitoring & Reporting.

Portfolio managers must monitor the status of all projects and programmes
within the portfolio and ensure that senior management are provided with all the
information they require in order to make appropriate decisions regarding the
portfolio and will assist and influence them in making those decisions.

4. Portfolio Reviews
The portfolio management process must constantly review the balance within the
portfolio of cost and benefit, and risk and reward. The portfolio manager must be
prepared to prematurely close projects or programmes where they are no longer
viable or involve unacceptable risk.

5. Managing Interdependencies.
A Portfolio Manager must be aware of all the possible interactions and
interdependencies between all the different elements of the portfolio.

1.7.1 Benefits of managing groups of projects as a portfolio

• There is a strategic link between programmes, projects and BAU operations to ensure
that all the activities of the organisation are supporting business objectives.

• The same governance principles are applied to all organisational activities.

• Resource allocation considers the requirements of the entire organisation so that an

optimum balance can be made between projects and BAU

• Risks and returns can be optimised across the entire portfolio

• There will be a more efficient integration of the output of projects into operations

Figure 1.2 Relationship of Projects, Programmes & Portfolio

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1.7.2 Differences Between Programmes and Portfolios

• Projects in a Programme are always inter-related and interdependent whereas projects

in a Portfolio can have no dependencies apart from possible resource conflicts.
• Projects in a Programme all contribute to the same defined strategic objective. A
portfolio can support several strategic objectives.
• In a Programme all projects must usually succeed for the programme to succeed
whereas in a Portfolio failure can be compensated by successes in other projects.
• As all elements of a programme contribute to the same strategic goals the programme
manager can switch resources and priorities between projects. This is less true with
portfolios.

1.8 PESTLE Analysis

PESTLE is an acronym that stands for:-

• Political
• Economic
• Sociological
• Technological
• Legal / Regulatory
• Ethical/Environmental

At the beginning of a project it is beneficial to carry out an analysis in order to gain an

understanding of the context in which the project exists. This is normally carried out by a
brainstorming session with the project team and other stakeholders PESTLE is simply a
tool for providing some structure to the analysis. Possible examples under each of the
headings are as follows:-
• Political Might lobbying or a change of government impact the project? What
about local government policies? Internal organisational politics?

• Economic Is the project subject to market volatility, exchange rates, inflation,

unemployment, etc?

• Social Will the project impact on people’s health or living standards? Is it subject to
trends or fashion or demographic changes?

• Technological How mature is the technology? Is innovation an issue? Intellectual

property rights?

• Legal Is new legislation likely? Employment laws, Building regulations?

• Environmental Does the project have an environmental impact? How can this
impact be minimised? Will there be opposition?
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16
 2 Project Life Cycles and Reviews

Learning Objectives

• Describe the phases of a project that make up a typical

project life cycle

• Describe “iterative project life cycle”

• Describe “hybrid life cycle”

• Describe “extended project life cycle”

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 2.1 A Linear Project Lifecycle
A linear project life cycle consists of a sequence of distinct phases or stages. A phase can only commence
when the previous phase has completed. Phases cannot overlap. There are many varieties of life cycles which
vary across different industries and organisations. Shown below is a generic lifecycle which can be applied to
many different kinds of project.

Figure 2.1 A Linear Project Lifecycle

2.1.1 Concept phase (or Initiation/Feasibility)

• Collect data
• Establish outline scope of project
• Define project objectives and overall strategy/justification
• Determine feasibility and possible risks
• Prepare Business Plan
• Estimate resources

2.1.2 Definition (or Planning) phase

• Build the project team
• Develop scope baseline plan
• General Design
• Establish policies/procedures
• Prepare Outline Project Plan
• Identify and assess risks

2.1.3 Implementation (or Execution) phase

• Detailed Design
• Detailed Project Plan
• Set up and execute work packages
• Control Scope, Quality, Time, and Cost

2.1.4 Handover

Handover consists of all those activities involved with the formal transfer of ownership from the project team
to the client/sponsor and end users. It could be a simple handover of product and documentation or a lengthier
process involving testing and training. The process must demonstrate that the deliverables conform to the
specified performance requirements. The handover process must be planned and documented in the project
plan. Key tasks:-
18
 • Prepare the Handover Plan.
• Testing of deliverables by the project team prior to formal handover.
• Carry out acceptance tests with the Client and end users.
• Transfer responsibility and formal ownership from the project team to the Client.
• Agree and document any outstanding issues regarding bug fixes/snagging lists.

2.1.5 Closeout

Closeout is concerned with closing the project down in a consistent and organised manner. Key tasks:-

• Tidying up and archiving of project files

o All project documentation must be sorted, filed and indexed to facilitate later retrieval to
cover issues such as Technical, Financial, Legal, Copyright, IPR etc
• Financial Accounting
o All monies received and paid
o All costs and revenues reconciled to baseline budget plus changes
o All surplus stocks and equipment properly disposed of
• Staff
o Staff demobilised and appropriate feedback given
o Recognition of individual and team performance
o Appropriate staff retained/obtained to cover warranties and maintenance
• Closeout meetings
o Formal closeout meetings held with Client and sub-contractors to ensure that all
outstanding issues have been addressed
• Prepare for and carry out the Post Project Review

Note that there are no universally accepted names for project phases. Concept often includes Feasibility and
vice versa and the first phase is sometimes called Initiation. The Definition phase is often referred to as the
Planning phase. It is often broken down into Design & Development stages which are sometimes treated as
two separate phases. The Implementation phase is often called the Execution phase. This is where the final
project deliverables are constructed. Handover and Closeout is often referred to as the Exit phase

2.2 Iterative life cycle

The major drawbacks of the linear lifecycle model are that all the requirements need to be identified and
designed at the start of the project and that no usable software is produced until late in the project. In the
Iterative model, the process starts with a simple implementation of a small set of requirements. At this stage,
no attempt is made to identify in detail the total system requirements. Once the first set of requirements have
been satisfied then a second set is identified and so on. The process continues until there are no further
requirements.

A major drawback of the iterative method compared to the linear model is that because the total requirements
are not identified up front the ultimate cost and duration is impossible to accurately forecast.

19
 Figure 2.2 An iterative life cycle
2.3 Time Boxes
Linear projects usually work to a fixed scope. If some deliverables are delayed, then you need either more
time or more resource, both of which will mean more expense.

Iterative projects often employ the technique of time boxes. With timeboxing, duration is fixed, and usually
resource as well, meaning that some requirements will have to be deferred. This means requirements have to
be prioritised.

2.4 Hybrid Life Cycles

Both life cycle models covered in this text have advantages and disadvantages, but it does not have to be a
black and white choice as to which method to adopt. It some situations it may be possible to have the best of
both worlds by taking a hybrid approach. It may be possible to isolate a core part of the project where
requirements need to be fully defined up front and which necessitates a linear approach, whilst other parts of
the project requirements can be allowed to emerge by Iteration. The emerging functionality can then be
integrated into the core functionality as it arises.

2.5 The Extended Project Life Cycle

Figure 2.3 Extended

product life cycle

20
Although projects are deemed complete when they are formally handed over, the Sponsor
remains involved until the planned benefits have been realised. Benefits realisation takes
place during the initial stage of the Operations phase. This is called the Extended Project Life
Cycle. The inclusion of Operational and Termination phases of the project make up the
Product Life Cycle.

2.6 Phase/Gate Reviews

This review is carried out at the end of each project Phase/Stage. The boundaries between
Phases/Stages are sometimes known as “gateways”. At each gateway the project manager
must report back to the project board or sponsor and ask for authority to “pass through the
gate” i.e. proceed to the next phase. The board will review progress to date against the original
baseline plan and any approved changes. They should also revisit the business case. If the
business case is no longer viable then there may be justification for terminating or modifying
the project. The main benefits of this process are that bad projects can be stopped before too
much money has been spent whilst good projects will obtain increased management
confidence and commitment.

2.7 Post Project Review/Lessons Learned review

The post-project review evaluates the project against its Success Criteria. Its primary aim is to
ensure that lessons learnt can be applied to improve the strategy, planning and management of
future projects.

• The post project review occurs after handover of the project deliverables i.e. all work
completed and signed off.
• It is the management review at the end of the project and does not consider the
technical issues
• The PM is responsible for ensuring it takes place but should not lead it. This should
be done by an independent facilitator
• It should be a non-confrontational meeting. Its purpose is not to allocate individual
blame.

21
22
 3 Roles and responsibilities

Learning Objectives

• Outline the responsibilities of the :-

• Project Sponsor

• Product Owner

• End Users.

• Project Team Members.

• Understand Project Governance

• Describe “ Project Office “

23
 3.1 Project Organisation Structure
The figure below shows a typical project structure

Figure 3.1 Project Structure

3.2 The Project Board
The project board oversees the project from initiation to benefits realisation under the
chairmanship of the Project Sponsor. The PM will formally report to the Board at regular
intervals and at “Gate” reviews.

A typical make up of a Board is as follows: -

• Project Sponsor (Chair)

• Client (if appropriate)
• End user representative
• Key Suppliers/Sub-contractors
• Appropriate functional managers

3.3 The Project Sponsor

It is vital that a project has an effective sponsor. The sponsor is responsible for justifying the
project and arranging project finance and carries overall responsibility for the project from
feasibility to benefits realisation. For a successful project there needs to be a continuing
dialogue between sponsor and project manager.
The sponsor needs to be:-
• A manager with enough seniority to work across organisational boundaries
• Be an effective Champion of the project and the change it will bring about
24
 • Have enough project management knowledge to judge the effectiveness of the project
• Be supportive of the project manager and have sufficient time to allocate to the role

3.3.1 Sponsor responsibilities

• Chair the Project Board
• Make the business case
• Be the project Champion
• Obtain approval for expenditure
• Make sure business benefits are realised
• Terminate the project if necessary
• Determine the relative priority of Time, Cost & Quality

3.3.2 Sponsor activities

• Define the project’s success criteria
• Define the business investment aims
• Initiate the project and ensure a project manager is appointed
• Support the project manager
• Monitor project progress & make control decisions when necessary
• Monitor the project’s external environment/context
• Keep senior management informed

3.4 The Project Team & Team Leaders

On all but the smallest projects there will generally be a team leader or leaders to whom the
project manager will delegate the necessary authority to execute agreed work packages. The
project manager manages the project team members through the team leaders. The team
leaders themselves will obviously require project management skills. It is important that all
the team members are aware of and are committed to the overall project goals so that they can
work together towards a common goal and hopefully a shared reward.

3.5 The End Users

The end users are defined as the group of people who are intended to benefit from the project.
It is important to realise that they are your ultimate customers and they will be the arbiters of
the quality of your deliverables. It is possible to deliver a project on time, to budget and to the
specification and still fail if the end users are not satisfied. To guard against this it is of crucial
importance that end user representatives are closely involved in specifying the requirements
and in devising acceptance tests for the deliverables. They should be consulted and kept
informed throughout the project life cycle.

3.6 Quality Assurance

The Quality Assurance function reports directly to the project board. It is concerned with the
correct governance of the project. It has no powers to interfere in the management of the
project but will carry out regular Quality Assurance reviews and inform the board as to the
outcome.

25
 3.7 The Project Office
All organisations that take project management seriously will have a project office that exists
to support the organisation’s project needs. Major projects and/or programmes may have their
own dedicated support office. Where a project office does not exist the services must be
provided from within the project.

At its simplest level the project office may just provide administrative support to project
personnel. At the other extreme can become the “Centre of Excellence” for project
management and the body to which project managers report. It will be the overseeing body for
all project activity and be responsible for linking corporate strategy to project execution.

The presence of a project office allows an organisation to draw together its project
management expertise and makes possible the development of that expertise into a centre of
excellence. A project management office fits particularly well with a strong matrix
organisation as project managers and project office staff can be brought under common
management. However, for functional and weak/balanced structures some sort of project
office is vital in order to facilitate a common approach to managing projects.

The Project Office can have various names depending on the organisation and the extent of its
role e.g.

• PSO -Project Support Office

• PMO-Project Management Office
• CPMO-Central Programme Management Office

3.7.1 Project Support Office-PSO

There are no exact definitions as to what functions each of the above project office types can
carry out but as a basic minimum a Project Support Office should provide the following
functions: -

• General administrative support to project managers and team members

• Collection and treatment of routine project data such as time sheets
• Consolidation of individual project status reports into programme and corporate
reports including exception reporting
• Consolidation and dissemination of lessons learned

3.7.2 Project Management Office-PMO

As the PSO takes on more tasks it may be renamed PMO and add functions such as:-

• Project quality audit and assurance

• Identification, development and maintenance of PM methodology, standards,
documents, templates etc.
• Co-ordination of resource allocation across all projects
• Selection, operation and management of project tools such as enterprise wide project
management software

26
 • Development and management of PM job descriptions and training programmes and
professional development.
• Organisation of mentoring and skills development
• Organise and facilitate Gateway Reviews and Post Project Reviews
• Line management of project managers

3.7.3 Central Programme Management Office-CPMO

Ultimately the project office takes on a strategic role within the organisation and becomes the
ECMO. It reports directly to a Board member and can take on the following responsibilities.

• The selection, prioritisation and funding of projects and programmes

• Ensuring that individual projects are consistent with programme and corporate goals
throughout their life cycle
• Coordination of risk management initiatives across projects and programmes and
business as usual
• Ensuring that Benefit reviews take place
• Ultimate responsibility for project governance
• The Centre of Excellence for all project management matters within the organisation

3.7.4 Benefits of a Project Office

• Provides a focal point for project management

• Provides standardisation across projects and adherence to those standards
• Facilitates cross functional projects
• Aligns projects with corporate goals
• Promotes project management skill development
• Coordinates resources across projects
• Takes away routine tasks from project managers
• Facilitates better project selection and control
• Improved communication with senior management
• Better project selection
• Provides better management visibility
• Captures and implements best practice

3.8 Project Governance

The overall aim of project governance is to enable the effectiveness of projects. Project governance is about
ensuring that projects are carefully selected and then done well. This encompasses having policies and
procedures in place to ensure projects are aligned to corporate goals and that projects are executed with
trained and qualified people following a formal project methodology. It encompasses area such as:

• Organisational policies
o e.g. Health & Safety, Environmental, Human Resource etc.

27
 • Regulations
o Legal obligations which provide a mandatory framework on which policies are built
• Functions, Processes and Procedures
o Derived from the project methodology
• Defined roles, responsibilities and authority levels
o Also derived from the project methodology

The latter two items illustrate that project governance is highly dependent upon the presence of a properly
implemented project methodology. Proper project governance is virtually impossible without it. Project
Governance is a subset of Corporate Governance which is a Board responsibility. It therefore follows that it
is a board responsibility to ensure that a project methodology is implemented in the organisation and its use
made mandatory.

28
4 Project Management Planning
Learning Objectives
• Explain the purpose and content of a Business Case

• Understand Deployment Baselines

• Explain the purpose, benefits and content of a typical

Project Management Plan

• Understand Success Criteria, Success Factors, Key

Performance Indicators and how they relate to each
other

• Describe Benefits and the purpose of Benefits

Management

• Define Stakeholders and a Stakeholder Management

process

• Describe the Estimating Funnel

• Understand typical estimating methods

• Understand Project Reporting

29
 4.1 Building the Business Case
4.1.1 Business Case Objective & Purpose
The objective in developing a Business Case is to provide a justification for carrying out the
project. It must show the expected costs and benefits of the project and how it fits in with the
company strategy and contributes to the corporate goals of the organisation. Not all costs and
benefits are tangible, i.e. they cannot easily be expressed in purely monetary terms.

In any organisation there are usually many proposed projects that are competing for limited
funds. Therefore the purpose of the Business Case is not just to demonstrate why a project is
viable in its own right but also why it should be favoured over others.

The Business Case is prepared very early in the project life cycle. As normally no detailed
planning has taken place it is often difficult to decide the level of detail in the Business Plan.
The answer is that it should contain enough information to enable a decision to be made as to
whether to carry on with the project. The decision can always be modified in the light of more
detailed planning.

Every project must in some way contribute to the corporate goals of the organisation.

4.1.2 Contents of a Business Case

• Description of Problem/Opportunity and Scope outline

• Other options (including do nothing)
• Principal reason for carrying it out
• Project Deliverables/Objectives
• Fit to the organisation’s business strategy
• Emphasis on Time/Cost/Quality
• Outline Schedule and Major Milestones
• Investments Appraisal
• Expected Costs & Benefits-Both tangible and intangible
• High Level Risks and Assumptions
• Success Criteria
• Assumptions
• Stakeholder Analysis
• Impact on Business as Usual

4.1.3 Constructing a Business Case

In order to construct a business case, it is necessary to estimate the costs and expected benefits
of the project and produce a budget and schedule. This is effectively the first attempt at a
project plan, and it is carried out by performing the steps shown in fig 4.1 opposite. It is an
iterative process which will become more accurate as the project progresses, experience is
gained, and more knowledge is obtained
30
The Business Case will make clear the balance between the expected costs and benefits of the
project and the level of risk involved. As the project develops and the true costs and risks
emerge it should be continuously reviewed to check that the project continues to meet the
business objectives. If not there may be a case for termination or scope change.

. BUSINESS CASE
PROJECT OBJECTIVES & SCOPE

HIGH LEVEL WBS

HIGH LEVEL SCHEDULE

RESOURCES

PROJECT BUDGET
Figure 4.1 Business Plan Construction

4.1.4 Contents of a Business Case

• Description of Problem/Opportunity and Scope outline

• Other options (including do nothing)
• Principal reason for carrying it out
• Project Deliverables/Objectives
• Fit to the organisation’s business strategy
• Emphasis on Time/Cost/Quality
• Outline Schedule and Major Milestones
• Investments Appraisal
• Expected Costs & Benefits-Both tangible and intangible
• High Level Risks and Assumptions
• Success Criteria
• Assumptions
• Stakeholder Analysis
• Impact on Business as Usual

4.2 Success and Benefits Management

4.2.1 Project Success Criteria
Defined by APM as:-
“The qualitative or quantitative criteria by which the success of a project is judged”.

Possible examples are: -

• Delivered within Time & Budget tolerance
31
 • Delivered to Performance Specification
• Customer Satisfaction rating achieved
• Health & Safety adhered to
• Business Benefits realised
• Increased market share
• Improved productivity

From the point of view of the Project Manager success may be defined as delivering to time,
cost and specification. However other stakeholders may be more concerned with business
benefits. These will not be known at time of handover. It is perfectly possible for a project to
be deemed a delivery success but fail to produce its business benefits. On the other hand many
projects delivered late and over budget have nevertheless delivered considerable business
benefits.

4.2.2 Project Success Factors

Project Success Factors are those elements within the structure and context of the project that
are conducive to success. Their presence will not guarantee success, but their absence will
markedly increase the probability of failure.

Examples are: -
• Clear project mission
• Top management support
• Client consultation
• Committed project personnel
• Monitoring and feedback mechanisms
• Clear communications
• Adequate resources

4.2.3 Key Performance Indicators

Key Performance Indicators are continuously measured over the life of the project. They
directly measure the project performance against Project Success Criteria. Although success
criteria can be qualitative or quantitative ideally, they should be SMART. i.e. Specific
Measurable Achievable Realistic Timely

4.3 Stakeholder Management

A Stakeholder is defined as any person or body that has an interest in a project or its outcome
or is affected by it. Stakeholder Management involves the processes of identifying
stakeholders, analysing their interest and formulating plans to control or influence them.
The attitude and actions of Stakeholders can have a significant effect on the performance and outcome of
your project and hence they must be proactively managed. The influence of stakeholders must be considered
right at the start of the project when preparing the business case.

32
4.3.1 Typical Stakeholders

• Resources needed for the project

• People and Organisations who may be affected by the project
• People and Organisations not directly affected but who may have strong opinions
about the project, either positive or negative
• Statutory and regulatory bodies
• Potential end users of the project products
• Suppliers

End users are important stakeholders and their requirements must be captured early on when
considering project requirements. It is also particularly important to recognise and manage
negative stakeholders as if left unmanaged they can have a detrimental effect on the project.
The above list is not exhaustive. Each project will have its own particular set of stakeholders.

4.3.2 The Stakeholder Management Process

Figure 4.2 Stakeholder Management Process.

Step1 Identification
The most usual method of identification is by Brainstorming. This
would be typically be led by the project manager and would include the Sponsor, team
members, end user representatives and anyone else who can add value. Relationships between
stakeholders can be represented by a Stakeholder Map such as the example shown below
which relates to an IT project in a manufacturing environment.

Step 2 Analysis
In the analysis stage, it is necessary to try and discover the position of stakeholders with respect to the
project. Consideration might be given to questions such as the following:
33
 • Will they benefit from the success of the project?
• Will they be openly supportive of the project?
• Do they have reasons for wanting the project to fail?
• If their views are negative or ambivalent can they be persuaded to change?
• What is their level of power and influence?

Step 3 Planning
Planning consists of examining each stakeholder, trying to understand what is their likely
attitude to the project, what motivates them what power they exert, and then formulating an
action strategy to manage and influence them. A brief example based on the project of figure
4.3 is shown below.

Figure 4.4
Stakeholder
Action Plan

Step 4 Managing
Stakeholders must be actively managed, especially as their views and motivation may change
over the life of the project. The analysis must be repeated throughout the project lifecycle as
new stakeholders appear and attitudes change. “Champions” can be used to managing or
influencing “Blockers” or to organise “Supporters”.

4.3.3 Benefits of Stakeholder Management

• Helps identify project risks and opportunities

• Facilitates pro-active mode of operation
• Facilitates managing stakeholder expectations
• Facilitates better working relationships
• Increases confidence of Stakeholders in the Project Manager
• Increases likelihood of project success
4.4 The Project Management Plan
The Project Management Plan documents the planning outcomes of the project and provides
the reference point for managing the project. It is the primary document that communicates the
project manager’s intentions to the Stakeholders. It is owned by the Project Manager and
approved by the Sponsor. Although the project manager is responsible for its production it has
34
to be a team activity. As well as ensuring a more robust and accurate plan it also fosters team
commitment. It is also the primary tool for Stakeholder communication.

The Project Management Plan is a live, configuration controlled document which builds upon
the information contained in the Business Plan. It provides a contract between the Sponsor and
the Project Manager. It is a reference point for reviews, audits and control. It also assists
effective handover in the event of a change in project management or sponsorship.

4.4.1 Project Plan Content

All of the following items are normally contained within the Project Plan although many may on occasions
be separate subsidiary documents, which are referenced by the project plan.

Not every section is required by every project. On smaller projects the overhead of all these activities may
not be practical thus some may be omitted or level of detail reduced. Such exceptions need to be justified.
Thus each section or subsidiary plan is detailed to the extent required by the specific project.

• Objectives and Deliverables

• Constraints and Assumptions
• Processes, tools and technique to be used
• Work Breakdown Structure
• Project Schedule
• Major Milestones
• Resource and Organisation Plan
• Roles and Responsibilities
• Performance Measurements
• Risk Analysis
• Change & Configuration Management Plan
• Budget and Cash Flow
• Quality Plan
• Communications Plan
• Procurement Plan
• Stakeholder Management Plan

The Project Management Plan is unlikely to exist as a single hardcopy document. In order to be effectively
maintained and be accessible to team members and appropriate stakeholders it is better to have an electronic
document that is made available on the organisation’s intranet.

4.4.2 Project Plan Attributes

• The Project Management Plan is a live, configuration controlled document that builds upon the
information contained in the Business Plan.
• It provides a contract between the Sponsor and the Project Manager.
• It is a reference point for reviews, audits and control.
• It also assists effective handover in the event of a change in project management or sponsorship.
• It is the primary tool for Stakeholder communication

35
4.4.3 Deployment Baselines

It is important to understand that the Project Management Plan is not simply a record of the project planning
outcomes. The original project plan as agreed between the Sponsor and the Project Manager serves as a
baseline of what will be deployed by the project and against which all future outcomes are compared. The
agreed project plan is essentially a contract between the Sponsor and the Project Manager. Outcomes, in terms
of schedule, budget and quality are monitored to capture deviations from the baseline plan so appropriate
actions can be taken. Formal changes to project scope will generate incremental changes to the deployment
baseline but the original baseline and all subsequent changes must be recorded to ensure an audit trail.

What has been said above is fully applicable to traditional linear life cycles but not entirely applicable to an
iterative life cycle. In the linear approach we attempt to define all the requirements up front before carrying
out a detailed design and manufacture. Thus we are able to plan the whole project from start to finish.

With an iterative approach we do not attempt to produce upfront a total set of detailed requirements. Instead
we a list of desired outcomes. We can then select a subset of those desired outcomes, convert those outcomes
into deliverable requirements and plan accordingly. Thus at the start there can only be a detailed plan and
deployment baseline for the first iteration, making forecasting of budget and schedule for the whole project
problematical. The subset of the desired items chosen i.e the scope of the iteration, will be limited by the size
of the time box

4.5 Benefits Management

4.5.1 Responsibility
Benefits Management consists of defining the expected business benefits of a project and then monitoring
the situation to ensure those benefits are delivered. The benefits of a project are rarely realised at handover
and it can take weeks or months before some benefits appear.
e.g. productivity gains. Although on some occasions the project manager may maintain some
involvement it is generally the Sponsor who has prime responsibility for delivering business
benefits.

4.5.2 Benefits review

The benefits review typically takes place 6-12 months after handover or when the “solution”
has bedded in. The review will be chaired by the Project Sponsor. The people present will be
mainly operational although appropriate project personnel may be present.
The review considers all the forecasted benefits of the project as defined in the Business Case
and compares them with the outcome. If the benefits are not forthcoming then the reasons are
determined and an action plan formulated. Further benefits reviews may be necessary.

4.6 Estimating Methods

An estimate is a quantified assessment of the resources required to complete part or all of the
project. It is stated in terms of cost & time & resources. Inaccurate (usually over optimistic)
estimating is a major cause of project failure. Some would say it is the major cause. Estimates
must initially be made at Business Plan stage. These estimates are usually based on high level
data, but people are often very reluctant to revise them even when experience is showing that
they are wrong. It is essential in any project for outcomes to be compared to initial estimates
and estimates adjusted if necessary, even if these causes the business plan to be re-examined.

36
There are three main estimating methods
1. Bottom Up Estimating
2. Comparative Estimating
3. Parametric Estimating

These methods can be used independently but more usually in combination.

4.6.1 Analytical (Bottom Up) Estimating

This method is based on the WBS. All the individual lower level tasks in the WBS are
estimated independently and then rolled up to produce the project estimates. This is a
laborious method and its accuracy is dependent on having a correct WBS. However, it is the
most accurate way of estimating. It is sometimes known as the definitive estimate. The aimed
for accuracy is to be within 5%.
4.6.2 Analogous Estimating
This is also called Comparative or Historic estimating. It simply involves using experience
from similar projects carried out in the past. It takes the overall costs and timescales for
similar projects and adjusts them for size and complexity. The danger is that previous projects
may have been inefficient and/or badly managed. Comparative estimating can also be used at
task level to support bottom up.
4.6.3 Parametric Estimating
Parametric estimating uses a mathematical model or formulae to produce project estimates
based on input parameters. It is usually based on historical data. Simple examples are square
metres in construction and lines of code in software development. Quantity Surveyors make
extensive use of parametric estimating. More complex software applications such as
COCOMO and Function Point Analysis are beyond the scope of this book.
4.6.4 The Estimating Funnel
Estimates cost time and money to produce and the more accuracy required the more expense involved. We
recognise the inaccuracies in the early stages of estimating by applying appropriate contingency allowances.
As the project develops and additional information is obtained the accuracy improves and contingencies can
be reduced. The way in which accuracy improves over the project lifecycle can be seen in the “Estimating
Funnel” illustrated below.

37
 4.7 Project Reporting
It is the responsibility of the PM to ensure that all relevant project information is
communicated to the Sponsor and appropriate stakeholders in a timely and effective manner.
The benefit of such a process is that by keeping relevant stakeholders informed as to project
progress it will avoid misunderstandings and manage expectations. It is a vital part of
stakeholder management.

There will be ongoing informal communication at all times, but project status should be
formally reported, usually on a monthly basis and at key points such as phase ends. To do this
the PM will require formal reports from appropriate team members which must then be
collated and simplified for passage upwards.

It should be stressed that formal reporting is not a substitute for ongoing project
communication. Information must be presented in a timely fashion and it may not be
appropriate to wait until the next monthly report. Avoid overloading Stakeholders with too
much information and use Exception Reporting when appropriate.

4.8 Report Structure

A project status report should be clear and concise with a consistent structure and layout such
as the following.

1. A short management summary containing key information. Some stakeholders will

not read beyond this.
2. List achievements and progress since last status update was given
3. List delays and problems since last status update was given
• List corrective actions being taken
• Address schedule implications
4. Outline Plan for next period
• Planned deliverables
• Milestones
• Potential problems
• Help required
5. Earned Value Report
• Earned Value Graph
• Cost & Schedule Variances
• Cost & Schedule Completion Forecasts

Note that a study of Earned Value Management is not included in the syllabus. In simple terms
Earned Value is a technique for measuring project performance and progress. EVM has the
ability to combine measurements of scope, schedule, and cost in a single integrated system. It
measures not just cost of work done but relates this cost to the amount of useful work done
with regard to the planned budget and schedule. For a full treatment see “The PMQ Primer”
by Robin Kay. ISBN 978-1-32698355-0

38
5 Scope Management

Learning Objectives

• Define project scope and scope management within

linear and iterative projects

• Describe how work and product breakdown structures

are used to define project scope

• Describe Cost Breakdown and Organisational

Breakdown Structures

• Describe a typical Change Control process

• Understand Configuration Management activities

• Understand the relationship between Change Control

and Configuration Management and how they
contribute to Scope Management

39
 5.1 Definition of Scope Management
Scope Management is concerned with all the tools and processes that ensure that enough work,
but no more, is carried out to produce the project deliverables. It is concerned with controlling
the boundaries of the project and ensuring that all work done is related to project objectives
and that any new work is subject to a formal change control process. It is also important to
clearly establish what is excluded from the project scope.

The Business Plan will define the breadth of the project scope. As the project progresses and
plans become more detailed, the depth of the scope will increase. Scope creep and
uncontrolled change are common causes of project failure so if changes are made to the scope
breadth then this must be done through a formal change control process. The primary tools for
defining and controlling project scope are the Work Breakdown Structure (WBS) and the
Product Breakdown Structure (PBS).

5.2 Work Breakdown Structure

The WBS is an activity based decomposition of the work to be carried out. The project is
broken down level by level. The lowest levels are called work packages or tasks depending on
the methodology used. Each task/work package (apart from management products) has a
defined end product with an associated acceptance test to determine when it is complete. As
the WBS contains all the work of the project required to produce the project deliverables it
totally defines the project scope.

The WBS is the framework on which the project is built. It is not possible to build a realistic
project plan without first developing a WBS that details all the project tasks that must be
accomplished. The process of creating the WBS causes the project manager and all involved
with the planning process to carefully consider all aspects of the project.

Figure 5.1 Work Breakdown Structure

The WBS shows how each work package contributes to the overall project objectives and so
provides a firm basis for both planning and controlling the project. Each work package or task
represents the level at which the project manager exerts control. Each WP/task is a self-
contained piece of work that can be given to a single person or a small team. Each will have a
list of defines attributes:-

40
 • Specification
• Acceptance criteria
• Responsibility
• Budget
• Duration
• Resource requirements
• Dependencies

The size of these Work Packages is very important because they must be small enough to
allow realistic estimates to be made, but also not so small that the sheer number of tasks
overwhelms the planning and control process.

5.2.1 Benefits of the WBS

• Its production facilitates team building
• It focuses attention on project objectives
• It forces detailed planning
• It facilitates the allocation of responsibility for individual packets of work
• It graphically illustrates project scope
• It is the starting point for:
o Budgeting
o Estimating
o Scheduling
o Controlling
o Change Control
o Configuration Management

5.3 The Product Breakdown Structure

Whereas the WBS is activity based the PBS is product based. It breaks the product down into
its constituent products and sub products as illustrated on the next page.

Figure 5.2 Product Breakdown Structure

41
Production of the PBS has 3 main objectives: -

• To identify customer products

• To identify additional products which will facilitate building and supporting these
products
• To gain consensus on sensible product grouping

The topmost product is the “final” product or project outcome. The PBS includes as lower
level items, products supplied by external sources. Each higher level product is completely
defined by the levels below. The PBS will generally include “intermediate” or “enabling”
products or “sub-assemblies”

5.4 Relationship between WBS and PBS

The WBS breaks down the work into individual tasks and each task delivers a “product”. The
PBS breaks down the product into individual components and each component requires
“work”. Hence the WBS and PBS are just opposite sides of the same coin; the same solution
from a different viewpoint. It is also common to have hybrid situations where a product is
broken down into the work needed to produce it. An example is shown below.

Figure 5.3 Hybrid PBS/WBS

5.5 Cost Breakdown Structure

A CBS shows all the different cost categories that make up the total project costs. The costs
are applied to every work package/task on the WBS or end items on the PBS enabling costs to
be rolled up to any required level. The structure of the CBS depends upon the particular
requirements of each project. An example is shown below.

42
 Figure 5.4 Cost Breakdown Structure

5.6 Organisational Breakdown Structure (OBS)

The OBS shows how the project team is organised. A simple example is shown below but
more complicated structure can be developed to show how the project team structure relates to
the structure of the organisation and communication and reporting lines.

Figure 5.5 Organisational Breakdown Structure

5.7 Change Control

5.7.1 Definition of a Change
In a projects context a change is defined as when an event occurs that requires or causes a
change to be made to the Project Baseline Plan in terms of scope, cost, time or quality.

Change Control is the process by which all changes are identified and evaluated and then a
decision made on whether they are approved, rejected or deferred.
Changes can arise from 3 main areas: -
1. From errors, omissions in the original planning.
2. From evolution of project requirements or new techniques
3. Legal/mandatory changes

Changes are sometimes referred to as Variations

43
5.7.2 Why Change Control is Important

“Scope Creep”, where project scope keeps increasing over time; and uncontrolled change are
major causes of project failure. Changes to the project baseline must be evaluated and planned
with the same thoroughness as the original plan.

Scope Creep can: -

• Increase project cost
• Cause delays
• Be detrimental to quality
• Reduce morale and productivity

However, we cannot prohibit project change, because change is usually beneficial, and in fact
many projects would fail if no changes were allowed. In certain circumstances a change freeze
may be appropriate but when changes are allowed, they MUST be controlled.
Excessive change requests are usually a symptom of poor planning and requirements
definition. Proper planning and consultation with all appropriate stakeholders will help
minimise change requests.

5.7.3 The Change Control Process

1. The request is entered into the change control system. Change requests must be made
in writing in the appropriate standard form or screen.
2. An Owner is assigned to manage the change control process. (Not the change itself)
3. A brief preliminary evaluation is carried to see if it is worth further investigation and
to prioritise it.
Submit request
4. If the answer to the above is yes, then an impact analysis is
carried out.
5. CCB* Approve, reject or postpone the change request Assign Owner
6. If approved, plans, documentation, timescale and budgets
are updated.
7. The Change Log is updated Prelim. Investigation
8. All who are impacted are advised of the changes.

Impact Analysis
Figure 5.6 Change
Control Process
No . Accept?
Defer .
Yes
.
Inform Update Plans & Log
Requestor

Advise All Affect ed

44
All changes must be authorised so if unauthorised changes are discovered they must
be retrospectively be put through the change control process. This may mean undoing some
changes

5.7.4 The Change Request Form

Changes must be formally requested on the appropriate form.

Typical contents of a form are shown in the figure below.

Figure 5.7 Change

Request Form

5.7.5 Impact Analysis

Impact assessment must be carried out by people who are competent to fully understand the
implications of the change on the current baseline plan. They must determine: -

• What would have to change?

• What effort would the change need?
• What is the effect on schedule / budget?
• What are the knock on effects?
• Would the business case alter?
• Would the risks increase or decrease?
• Would the agreed time for delivery change?
• Is the change within agreed tolerances?

Note: That for proposed major changes, the effort involved in analysing the impact can itself
have a significant impact on the project and therefore the analysis may need to be formally
approved.

45
5.7.6 The Change Control Log
The Change Control Log consists of the original Change Request form plus a statement of the
current status and the ultimate outcome in terms of effect on schedule and budget and any
other knock on effects.

The Change Control Log is an important part of the project audit trail. The Baseline Project
Plan plus the Change Control Log represent the current state of the project.

Changes to the project will often result in changes to the project configuration so change
control is intrinsically linked to configuration management.

5.8 Configuration Management

A product, whether it is a physical thing such as a motor car or something ethereal such as software, is made
up of many inter-related components. These include documents such as specifications, designs and plans as
well as deliverable components. The totality of items is known as the Configuration. Configuration
Management encompasses all the activities concerned with the creation, maintenance and change control of
the configuration.

As a product is developed it will undergo additions and changes. Changes to one configuration
item may impact others. We therefore need to control and manage these knock on effects.
Controlling the configuration during the project will ensure the traceability and integrity of the
delivered product or products.

The Configuration Management System must be totally aligned with the Change Control
System. Its ability to identify possible knock on effects will facilitate change assessment and
will also protect different versions of the deliverable.
Configuration Management is not just a project tool but is a key tool in the subsequent
operation and maintenance of the project deliverables.

5.8.1 Configuration Management Activities

The configuration management process consists of 5 principal activities: -

1. Configuration Management Planning

Establishes project specific procedures and defines tools, roles and responsibilities
2. Configuration Identification
Breaking down the project deliverables into individual configuration items and
creating a unique numbering system.
3. Configuration Control
Maintains version control of all configuration items and the interrelationship
between items.
4. Configuration Status Accounting
Recording of all events that have happened to a system under development to
allow comparison with the development plan and to provide traceability.

46
 5. Configuration Audit
Carried out to demonstrate that the products produced conform to the current
specification and all procedures have been followed

5.8.2 Components of the Configuration Management System

The configuration management system is supported by 4 key sets of documents:-

1. The Configuration Item Record

Where the item is kept, current status, dependencies on other items,
cross reference to other information, change history. (All
configuration items are subject to version control)

2. The Product Description

A comprehensive product specification

3. The Configuration Status Account

History of all changes and additions to the configuration

4. Configuration Audit Records

Records all audits carried out.

5.8.3 Link to change control

The Configuration Management System must be totally aligned with the Change Control System. Its ability
to identify possible knock on effects will facilitate change assessment and will also protect different versions
of the deliverable. The following diagram shows the change control process and its interaction with
configuration management.

Figure 5.8 Link to Change Control

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48
6 Scheduling & Resource Management

Learning Objectives

• Explain the purpose of a schedule and how a schedule

is created and maintained

• Understand Critical Path Analysis

• Understand the purpose of milestones

• Understand resource smoothing and resource levelling

• Understand Procurement Strategy

49
 6.1 The Precedence Diagramming Method

In the Precedence Diagramming Method tasks are represented by boxes with dependencies shown as logical
connections between the boxes. A simple example is shown below.

Upon completion of Task A we can start Tasks B and C. Once both these are completed, we can start task
D. Thus, B and C are preceded by A and D is preceded by B and C.

The tasks are derived from the WBS. Each box represents a lowest level task or work package.

6.1.1 Other Link Types

The relationship described above (finish to start) is the one most commonly used but there are
three other possible relationships making four in all.

Figure 6.1 Precedence Relationships

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 6.1.2 Leads and Lags

We can also introduce delays between activities known as lags and allow for overlapping by
using leads.

Lags occur when there is a delay between one activity and the following activity. Lags are
designated by a value placed on the arrow. Lags can be used on all 4 relationships.

Lead can only take place with Finish to Start activities. It occurs when there is an overlap. In
other words the dependant activity can start before the preceding activity has finished. The
examples below illustrate 3 units lag and lead.

Figure 6.1 Leads & Lags

6.1.3 Critical Path Analysis (CPA)

Critical path analysis comprises 3 steps.

1) The Forward Pass – from left to right

This pass calculates the earliest possible start and finish times for each task.

Early Finish = Early Start + Duration

2) The Backward Pass – from right to left

This pass calculates the latest possible start and finish dates which will complete the schedule
on time.

Late Start = Late Finish - Duration.

3) Calculate Total Float

Total Float = Late Finish – Early Finish or Late Start – Early Start

Total Float is defined as the amount of time an activity can be delayed or extended without
affecting the total project duration (end date)

51
6.1.4 Node Convention

6.1.5 Worked Example

Draw and completely analyse an activity-on-node network for the following
project, assuming the project is to be completed in minimum time.

Activity Duration Dependency

A 10 NONE
B 15 A
C 5 A
D 8 A
E 2 D
F 10 B,C,E

Step 1- Construct the network and enter the durations

Figure 6.2

52
 Step 2- Carry out the forward pass

Figure 6.3

Thus for
activity A, 0 + 10 = 10. This 10 is carried forward to all the successor activities and so on.
Where there are multiple arrows we take the latest (the largest) as before. Thus for activity F
we take the largest of 25 (from B), 15(from C) and 20(from E).

Step 3 - Carry out the backward pass

Figure 6.4

Thus for activity F, 35(the finish time) – 10 (duration) = 25 (the start time) This 25 becomes the latest
finish date for B, C and E. Where there are multiple backward arrows e.g. into activity A then we take the
smallest which in this case is the 10 from B.

53
 Step 4 Calculate Total Float by subtracting the early dates from the late dates.

Figure 6.5

6.1.6 The Critical Path

The Critical path is the sequence of activities through a project network from start to finish,
the sum of whose durations determines the overall project duration. On this path the late
completion of activities will have an impact on the project end date.

The Critical Path is:-

1. The longest path through the network
2. The shortest possible planned project duration
3. The path with least float

Thus in the above example the critical path is A>B>F

Knowledge of the Critical Path assists in the following areas:-

• To concentrate attention on activities which, if delayed, will affect project duration

• To identify non-critical activities which can be used to smooth forecast resource
usage
• To identify ‘near or sub critical’ activities - those with very little float which require
similar attention to critical activities
• To identify where resources can be switched between activities to maintain progress

54
6.1.7 Total Float and Free Float

Total Float is defined as the amount of time a task can be delayed without delaying the end
date. Free Float is defined as the amount of time an activity can be delayed or extended
without delaying the start of the next activity. The presence or absence of free float can be
determined by inspection as the following example shows.

Figure 6.6 Free Float

The significance of Free Float is that the project manager knows that he can utilise free float to
for instance ease temporary resource problems, knowing that there are no knock on effects. If
there is total float but no free float then there will be knock on effects to consider. Also note
that where a sequence of tasks in a line such as B,C above exhibit a value for total float then
that float is effectively shared. If we utilise some or all of the total float in B then it will be
removed from C. .

6.1.8 Gantt Charts

Strictly speaking a Gantt is just a series of bars, representing activities against a timeline
which shows when activities take place. However the original concept has been extended to
include logical connections which effectively means it is a network with the boxes drawn to a
time scale. The figure below shows an example of a software generated Gantt chart.

55
 Figure 6.7 Software generated Gantt chart

6.1.9 Gantt Chart Features

Gantt charts are the most common way of representing a project schedule. They exhibit the
following features

• A timeline shows the project calendar

• The length of a bar indicates duration
• Tasks are usually positioned at the earliest start date showing any float at the end
• Can be shown with or without logic connections (technically speaking a true Gantt
chart does not show logical connections)
• Can also show comparison of current plan to original plan (baseline)
• Can be rolled up into summary tasks and can show milestones (key events, moments
in time)
• Can be generated using software tools
• They are often simply referred to as Bar Charts

6.1.10 Gantt v Network

The following figure shows how a Gantt chart and a Precedence Network are
effectively two ways of depicting the same situation

56
6.1.11 Milestone Planning

Although it is usually necessary to plan in detail, in the early stages of a project such detail is
not usually available, and planning takes place at a less detailed level. We generally start by
establishing the key milestones. Milestones are key occurrences in the project which mark the
achievement of key objectives such as the completion of a phase. Milestones are used by
management for project control. They are often not concerned with project detail but only in
the progress against key milestones. Milestones are often linked to payment schedules.
Completion of a milestone can trigger the issuing of an invoice.

6.2 Resource Management

Resource Management is concerned mainly with people but also includes all project resources
such as money and raw materials. There are two principal classes of resources used on
projects.
• Consumables (Replenishable) - These can only be used once and must then be
replenished. Examples include raw materials and money.
• Re-usable - Once no longer needed they are available for use elsewhere. Examples
include machines, tools and of course people.

Resource Management is concerned with making resources available when required and
avoiding waste. In the case of people it is better to have a smooth profile rather than
continuous hire and fire. There are two methods for achieving this.

57
 1. Time Limited Scheduling (Smoothing)

This is usually the default option. Scheduling of resources will take place ignoring resource
constraints. In other words infinite resource is assumed. This is usually the default option when
doing the initial planning.

2. Resource Limited Scheduling (Levelling)

No time limit is placed on the schedule. Tasks will take place at the earliest times resources
become available.

6.3 Resource Smoothing

Resource smoothing attempts to resolve resource overloads by utilising Float. In this example
utilising the float on activities C and E will not totally resolve the problem.

Consider the example here.

Figure 6.9 Resource Smoothing. Starting point

Applying Resource Smoothing and utilising the float on activity B and D we arrive at the
position following. This is a Time constrained schedule. Here the network schedule is
allowed to change but the end date is retained.

58
 Figure 6.10 Resource Smoothing.-Finishing Point

6.4 Resource Levelling

In order to fully address the resource overload, in this example we must delay B and hence D
thus extending the project. This process of Resource Levelling is resource constrained and the
outcome is shown below.

Resource Constrained
Schedule

Levelling eliminates
resource problems by
ignoring time constraint s.

It is Resource constrained

Figure 6.11 Resource Levelling

59
 6.5 Procurement
6.5.1 Definitions

Procurement
The securing (or acquisition) of goods or services for use in your project.

Procurement (or Acquisition) Strategy

Determining the most appropriate means of procuring the component
parts or services of a project

Contract
An agreement between two parties which is legally binding’

Contractor
A person, company or firm who holds a contract for carrying out the
works and/or the supply of goods in connection with the Project

Supplier
Any organisation, including contractors and consultants, which supplies
goods or services to customers.
6.5.2 The Procurement Process
The overall procurement process is illustrated in the flowchart below.

Figure 6.12 The Procurement Process

60
6.5.3 Procurement Strategy

Before an organisation issues an “Invitation to Tender” (ITT) it needs to

consider a number of strategic issues that will affect the nature of the eventual
contract. e.g.

• The initial make-or-buy decision based on a comparison of the actual

costs and benefits of both options
• What form of contract will be used?
• How suppliers will be selected
• The kind of relationship required
• Whether to use a single supplier or multiple suppliers
• What will be the payment terms and pricing structure?

The answers to these questions will go a long way towards determining the
most appropriate contract type.

6.5.4 Make or Buy

Many organisations have their own in-house capabilities so before procuring

goods or services they must decide whether it is better to do it themselves. This
is known as
“Make or Buy Analysis”. The analysis should include the following factors.

1. The direct costs of a prospective procurement.

2. The indirect costs – i.e. the cost of managing and monitoring the purchasing
process

3. The overall effect of the decision on the organisation e.g. would a decision to
Make have a knock on effect on other projects which may require the same
resources. Would a decision to outsource put in-house facilities at risk?

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62
7 Project Risk & Issue Management

Learning Objectives

• Understand the concept of Risk

• Describe the Risk Management process

• Explain the purpose and benefits of Risk Management

• Describe the use of a Risk Register

• Understand the difference between a Risk and an Issue

• Describe the Issue Resolution process

63
 7.1 Definitions of Risk

APM definition:

“Combination of the probability or frequency of occurrence of a defined threat or opportunity and

the magnitude of the consequence of the occurrence.”

The above is more a statement of how risk is measured. A better definition is:-

A project risk is something that might occur, and if it does, will impact on the project’s
objectives of time, cost and performance/quality. Risk is uncertainty in an outcome. Risks can
be both threats (downside) and opportunities (upside).

7.2 The Risk Management Plan

By their nature all projects are inherently risky; therefore, the management of risk should an
integral part of the project and carried out over the entire life cycle. Traditionally risks have
been thought of solely as negative events but current thinking treats risk as uncertainty which
can have positive or negative effects. The term “risk event” covers both threats and
opportunities and both can be managed through a single process.

The way in which risk is to be managed in a project is detailed in the “Risk Management
Plan.” The Risk Management Plan defines how all the risk processes will be carried out. It
does not consider individual risks.

Risk management plan content

• The methodology and data sources

• Roles & responsibilities
• Budgeting for risk management
• Timing, i.e. when risk assessment will be carried out
• Qualitative and quantitative scoring methods
• Risk thresholds
• Reporting format
• How risks will be tracked?

7.3 Risk Management Process

The purpose of risk management is to identify all significant risks to the project and manage
those risks so as to eliminate or minimise threats and maximise opportunities. The process is
outlined in the diagram following (Fig 7.1)

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7.3.1 Initiation
This is the activity of setting up the process, making decisions on such things as risk categories
and tools and techniques to be used. Basically, it is about organising the team to carry out risk
management.

7.3.2 Risk Identification

There are a variety of techniques for identification of risks events. e.g.

• Brainstorming
o Using the project team and appropriate stakeholders
• SWOT Analysis
o Strengths and Opportunities generate upside risks o Weaknesses
and Threats identify downside risks
• Assumptions Analysis
o Looking at the assumptions made in the planning to see if any of
them constitute a risk
• Constraints analysis
o Similarly, for project constraints
• Using the WBS
o Identifying risks to individual work packets
• Interviews
o Interviewing people with knowledge or insight

There may also be sources of information that can help the identification process e.g.
• Prompt/Check Lists
o Using existing prompt sheets and check lists
• Post Project Reviews (Lessons learned)
o From previous projects with some commonality
• Risk Registers of other projects
o Again, using projects with some commonality

65
7.3.3 Risk Assessment
The purpose of Risk Assessment is to prioritise the identified risks. In particular it needs to
establish the key risks that require management focus.

Assessment is based on determining Probability and Impact and this is most conveniently
carried out with the aid of a Probability and Impact Grid.

7.3.3.1 Probability and Impact Grid

The Probability and Impact Grid is a simple but effective tool that is used to prioritise
identified risks. An example is illustrated below. In this instance we are using a scale that
involves using judgement to place probability and impact from very low to very high.

Figure 7.2 Probability and Impact Grid

7.3.3.2 Qualitative and Quantitative Analysis

The above assessment method is purely Qualitative in the sense that the scales are subjective
assessments of the probability and impact. This is sufficient to prioritise the risks but for a full
and proper assessment the analysis should be Quantitative. The probability grid can be
converted to a quantitative method by stating probability and impact in numeric terms. There
are also other quantitative techniques such as Monte Carlo methods and Decision Tree
analysis, but these are beyond the scope of this text.

66
A pseudo quantitative method often used is to simply
apply a scale of 1 to 5 to the impact and probability.
Multiplying these scales gives the Exposure for each
square that can be used to prioritise the risks.

Exposure = Probability x Impact

A drawback of this method is that it gives the same

weight to both probability and impact whereas in reality
high impact is more serious than high probability. High
impact items must be addressed even if they have low
probability. The shading in the
grid is a better representation of the relative importance.

Figure 7.3

7.3.4 Risk Response Planning

Threats. There are 5 common strategies for addressing downside risks or threats. These are applied either
individually or in combination.

1. Avoid
Avoid the risk and eliminate uncertainty by not doing something or doing it in a
different way
2. Transfer
Transfer liability or ownership of a risk to someone else such as the client or
subcontractor or 3rd party. e.g. insurance or back to back contracts
3. Reduce/Mitigate
If the risk cannot be avoided and is too large to accept then we must take steps to
reduce probability and/or impact
4. Accept
Take it on board and accept the consequences. The severity/probability of the
risk does not justify great effort in managing it.
5. Contingency Plan
Have an alternative plan at hand to implement if the risk occurs
When the severity of a risk determines that it must be actively managed then the following
process should be followed:-

1. Re-examine the risk to determine its current status and validate the previous
evaluation
2. Demonstrate the viability of the mitigation plan by evaluating the cost of mitigation
and comparing with the reduction in exposure.
3. Decide if the mitigation results in an acceptable level of risk.
4. If so decide on who will own and manage the risk and be empowered to do so.

Opportunities
Similarly there are strategies for developing opportunities.
67
 • Exploit-
o Try and exploit the opportunity by eliminating the uncertainties surrounding
the opportunity
• Share-
o If you do not have the resources to exploit the opportunity yourself then try
to find a partner to share it.
• Enhance-
o Work to increase the probability and impact of the opportunity
• Accept –
o Wait and see what happens

7.3.5 Implement Responses

Each risk that has a planned response must be proactively managed by the person responsible.
In addition the risk plan needs to be formally reviewed on a regular basis.

The situation is bound to change because:-

• Some risks mature into problems (issues)

• Some risks are resolved or do not arise
• Probability/impacts change; up or down
• New risks arise that were not identified initially
• Project scope changes give new risk opportunities

The primary tool for managing risk is the Risk Register an example of which is shown in
figure 7.4

The Risk Register must be routinely reviewed on a regular basis and when risk events happen.
The overall risk status of the project and the progress of “active” risks will be reported as part
of the standard project reporting procedures as defined in the Risk Management Plan and the
Communications Plan.

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7.3.6 The Benefits of Managing Risk
On many projects risks are not actively managed for the reasons stated later on. However as
well as being a requirement of good Governance, the proper management of risk confers
significant benefits.

• Increased understanding by the project leads to more realistic plans and greater
probability of delivering to them. Increased understanding of the risks leads to their
minimisation and allocation to the person best placed to manage them. The
understanding of risk helps determine the most appropriate contract type. A team
view of the risks can lead to more objective decision making

• Financially and/or technically unsound/risky projects will be discouraged There will

be a better understanding of the project by Stakeholders leading to increased
confidence in the Project Management. It focuses management attention on the most
significant threats to the project

7.3.7 Drawbacks of Managing Risk

The Cost
Risk Management is an overhead requiring a significant input of effort and cost. Although this is no different
from the input of effort and cost into all Planning processes, such as Scope Management and Change Control,
there is one key difference - Risk Management is about things that may never happen and even if they might,
"it won't happen to me".

Visibility
Once we have put lots of effort and money into Risk Management the likely result is that it tells us what we
did not want to know. We will either have to invest in reducing the risks or accept that the project might take
a lot longer or cost a lot more than we had hoped or even that we should not do the project at all. Many
people may have a vested interest in the project and do not wish to hear anything that might endanger it.

7.4 Issue Management

APM define an Issue as a problem that cannot be solved by the project manager. A more
universal definition of an issue is “a problem that requires immediate attention”. However it is
important in the exam that you adhere to the APM definition.

Some issues arise out of risks events that had been previously identified. Others will come as a
complete surprise.

Some Issues may necessitate formal changes that require the Change Control Process to be
invoked. For example, a Client suddenly announces a major budget cut which necessitates
reduction to project scope.

Some Issues will not cause a formal change but must be managed. For example a key resource
resigns from the project or a vital piece of equipment breaks down.

69
It is important to have a formal process to manage issues. If they are caught earlier they should
be easier to resolve before causing damage. The process is similar to Risk management

• Identification
o By their very nature Issues tend to identify themselves
• Escalation
o At what level in the project/organisation must this issue
be addressed for a solution? Who owns the issue?
• Monitoring
o The Owner monitors the issue and reports on progress. An
Issue log is maintained.
o
• Resolution
o The issue is closed when fully resolved to the satisfaction of all
parties.

7.4.1 Issue Log

Once an Issue has been formally escalated it is entered onto the Issue Log which is very
similar to the Risk register. In fact Issues can be thought of as Risks that were not previously
identified or were accepted but have turned out more severe than expected or had a very low
probability of occurrence.

Many organisations group risks and issues together and maintain a single Risks & Issues
Register

70
8 Project Quality Management

Learning Objectives

• Describe what is meant by quality and quality

management

• Understand the processes of quality planning, quality

control and quality assurance

• Understand the distinction between quality assurance

and quality control

• Define continuous improvement

71
 8.1 Definition of Quality
Quality can be defined as the totality of characteristics of an entity that bear on its ability to
satisfy stated or implied needs. A quality product must conform to the defined
requirements/specifications but most importantly must be “fit for purpose”.

Customer requirements are the basis for managing Quality. A “Quality” product is one that
meets the specification and satisfies the customer.

“Over delivering” often called “Gold Plating” can be regarded as poor quality.

8.1.1 Quality V Grade

Quality must not be confused with Grade. Grade is to do with relative functionality and
features. A high grade product may be rich in functionality and possibly luxury fittings but if it
does not conform to requirements and meet customer expectations it is not a quality product.
Conversely a product with basic, minimal functionality and lack of “frills” can be a quality
product.

8.1.2 Elements of Quality Management

Quality Management is a management discipline concerned with making sure that activities
happen according to a prescribed plan. It is all about preventing problems. Quality
management involves carrying out a project through all its phases with zero deviations from
the project specifications and adhering to defined processes.

The elements of Project Quality Management are:-

• Quality Planning
• Quality Assurance
• Quality Control

8.1.3 Quality Planning

Quality planning is defined as “identifying which quality standards are relevant to the project
and determining how to apply and satisfy them”. In other words, setting standards and how to
achieve them. The primary output of the quality planning process is the Project Quality
Management Plan. It describes how the project team intends to implement its Quality Policy.
This reinforces the basis of modern thinking about project quality management; that is quality
is a planned activity and not something that is applied afterwards by inspection and correction.
Inspection still has a part to play in quality management; however increased inspection is not
generally considered the best path to improved quality.

72
8.1.4 Quality Assurance

Quality Assurance is defined as the process of evaluating overall project performance on a

regular basis to provide confidence that the quality system is being followed and project will
satisfy the relevant quality standards.

The following items are part of quality assurance:

Formal Audits

• Project Audit
• Quality Audit
• Financial Audit
• Technical Audit

Audits examine if processes, policies and procedures are being adhered to. Audits can be
internal to the project, within the organisation but outside the projects or from external bodies.
e.g. checking for ISO 9000 compliance.

Reviews

Reviews can be more informal than audits. Thy concentrate more on what the project is
producing and the project status and environment rather than the processes. Reviews should be
constructive not destructive or people will be reluctant to participate.

8.1.5 Quality Control

Quality Control involves measuring project products to test if they conform to the relevant
standards and also identifying ways to correct unsatisfactory performance and deviation from
specification.

8.1.6 Quality Control v Quality Assurance

The basic difference between the two processes is that Quality Control is about doing the
physical things to ensure quality in your product whilst Quality Assurance is concerned with
checking that all the processes and procedures specified in the Quality Plan have been
properly carried out. Quality Assurance is fundamentally an audit process. Whilst Quality
Control is a project team activity Quality Assurance is carried out by external auditors as well
as self-auditing within the project team

8.1.7 Continuous Improvement

The Japanese word for continuous improvement is Kaizen. The philosophy espoused by
kaizen is that quality comes from continuous minor improvements. It is the responsibility of
both workers and management to always be on the lookout for ways to improve the quality of
the finished product and the processes that produce it. This also can involve “Lean Thinking”
73
which is concerned with continuously striving to reduce resources without adversely affecting
quality and thus increasing productivity and profitability.

8.1.8 Project Management Responsibilities

Finally it must be stressed that the Project Manager carries overall responsibility for the
quality of the project and the project deliverables.

The Project Manager should:

• Make sure that all project personnel are aware of the need for quality and the required
quality standards and that they have received the necessary training and are capable of
carrying out the work to the appropriate standard
• Make sure that there is an approved quality plan detailing all the required quality
assurance and control procedures and standards and that all the project team and
relevant stakeholders are familiar with the requirements of the plan.
• Make sure everyone is aware, by means of appropriate training and communication,
of their roles & responsibilities for carrying out quality management actions. If
necessary appoint a Quality Manager.
• Carry out monitoring and controlling actions to make sure that the product quality is
being adhered to as per the quality plan, and that the outcomes of quality audits are
noted and acted upon.
• Ensure there is an effective change control process in place and communicate
regularly throughout the project with client and stakeholders to ensure that the project
deliverables continue to be aligned with client requirements.

Remember that the modern attitude to quality is that it is built into the product and the people
and processes that build it. Quality is not something that is achieved by inspection and
correction. Quality is planned in. The motto is “Get it right 1st time”

74
9 Communication

Learning Objectives

• Understand the importance of effective project

communications

• Outline the different media through which we can

communicate

• Be aware of potential barriers to communication

• Define the content and benefits of the

Communications Management Plan

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 9.1 Communications Management
Communications Management is concerned all the ways in which information is exchanged
and interpreted. This is achieved in 3 main ways, written, verbal and by body language.

Written
Written communication is permanent. It is memory independent but can still be ambiguous
and open to interpretation

E-mail, although written, has some of the elements of speech because it is immediate and it is
easy to send something you may have cause to regret. However unlike speech or ordinary
written communications it can literally be published to the world in minutes

Verbal
The majority of our communication is done this way. The advantage is that it is fast, easy and
natural. However spoken words are transient and are easily misunderstood and may be
recalled in different ways

Body Language
Body language can give away our feelings even when they contradict our words and can
convey a message without using words.

9.2 Channels of Communication

Most of what a project manager does involves communication and there are innumerable
channels of communication available, many of which make increasing use of technology.

Examples

The most effective form of communication is face to face but when this is not possible we can use
Virtual Communication. This means any technology people use to communicate with each other when they
cannot be face to face. We can also use Physical Communication. This involves symbols, signs and gestures
and can occur with both face and virtual communication. Everyone possesses some form of physical

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communication skills. These include our body posture when speaking, eye contact, facial expressions, touch
and gesticulations. Often such behaviours can contradict what is actually being said.

9.3 Barriers to Communication

There are many things that can get in the way of the transmission and reception of a message.

Barriers can be summarised under 5 main headings

1) Physical
2) Interpersonal
3) Organisational
4) Culture and language
5) Jargon

9.3.1 Physical
These are barriers that arise from the environment in which the communication is taking place.
An example of this type of environment is open plan offices where private conversations are
difficult meaning people may feel inhibited in what they can say or where noise levels can
make conversation difficult. It also includes things such as too high or low temperature, poor
acoustics and being uncomfortable e.g. poor seating.

9.3.2 Interpersonal
Barriers can occur due to the lack of interpersonal skills of the persons involved. An example
of this is where someone’s style of communication may appear aggressive to others, especially
to people beneath them. This may make them unapproachable.
Another example is where people have an inbuilt bias which leads them to stop listening
when something is said they disagree with. Also people may inadvertently give out body
language signals than can contradict what they are saying or be misinterpreted.

9.3.3 Organisational
Problems can occur because of a lack of understanding of how an organisation works. For
example, some organisations have an environment of openness and trust whilst others may
operate on strict hierarchical and “need to know” lines.

Barriers may also arise due to poor definition of roles and responsibilities. working
relationships and defined lines of communication. The project organisational structure may
also cause barriers especially if it is cross functional.

9.3.4 Culture and Language

Barriers commonly occur between people of different nationalities. This is often simply down
to one or both of the parties having to speak in a foreign language. However, there may be
deeper cultural barriers. For instance, in some cultures people have difficulty in admitting they
have not understood whatever it is you have asked them to do or have difficulty admitting that
they cannot do it.

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Even within single countries individual organisations can have very different cultures. For
instance in new High-Tec companies the dress code and the manner in which people speak to
each other can be very informal with people addressing their seniors by their first name, whilst
in older established organisations there may be strict dress codes and rules of etiquette.

9.3.5 Jargon

People commonly use acronyms and abbreviations and technical terms and assume that
everyone else understands them. Coupled with this is an unwillingness by some people to
admit lack of understanding because of fear of appearing stupid.

Such barriers can be addressed by minimising the use of jargon, being aware that other people
may need explanations, and fostering a climate where people are not afraid to ask questions.

9.4 Effective Communications

The ability to communicate is probably the most important skill a project manager possesses.
The following factors will greatly enhance the effectiveness of communications.

• Always use the most appropriate means to communicate

• Ask for and give feedback
• Be aware of blockers and barriers
• Do not be a communications bottleneck
• Use standard reporting formats
• Use exception reporting
• Keep all stakeholders aware of important events/changes
• Restrict meetings to appropriate personnel
• Have a Communications Management Plan
• Hold effective meetings

9.5 Importance of effective communications planning

• Project staff must know what their tasks are and how to accomplish them otherwise
no progress will be made

• Team leader and the PM must know what the project staff are doing otherwise they
cannot monitor project progress.

• You must keep your client/sponsor aware of project status and manage their
expectation otherwise you may not be doing what they want you to do

• You must maintain channels of communication with project staff and stakeholders so
that everyone knows what is going on and the work of the project can carry on in a
fully integrated and co-ordinated manner

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 • An effective plan will ensure that everyone will receive the same, accurate, timely
information. This will help avoid mistakes and delays

• If good communication are not in place then people will make incorrect assumptions

9.6 The Communications Management Plan

On any project informal communication will arise naturally. However much of the required
communication is formal and should be properly planned and documented in a
Communications Management Plan. This plan should do the following:-

• Detail and describe all the project information requirements

• Detail means of acquiring information
• Describe the methods by which information will be stored
• Describe how information will be secured and access to it controlled
• Describe a distribution system that details to whom information will flow including
format, content and level of detail
• Establish the project reporting structure
• Provide schedules showing when each type of communication will be produced and
to whom it is sent (see example of Communications Matrix below)
• Describe methods for updating information

Figure 9.1 Communications Matrix

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80
10 Teamwork and Leadership

Learning Objectives

• Define what is meant by Leadership

• Define what is meant by the term project team

• Describe how a leader can influence team performance

• Understand the use of models such as Belbin and

Tuckman

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 10.1 The Project Manager as Leader
Project managers are expected to plan, manage and organise but the most important skill is
Leadership. Leadership is mainly based on example and good communication skills

10.1.1 Attributes of Good Leaders

• Lead by example-are Role Models

• Are good communicators, especially listening
• Are seen to be fair and even handed
• Are good at the other aspects of project management
• Command respect
• Care about people
• Will take risks for, and stand up for their people
• Will always be there for the team
• Know what is going on

Good leaders lead by example. Team members are greatly influenced by the behaviour of the
leader. They will take their lead from the project manager and will tend to pick up both good
and bad behaviour.

10.1.2 Leadership Activities

Give Feedback
Even though team members may only work for you on a temporary basis and have their own
line manager the PM must still provide constructive feedback to enable people to develop their
skills and improve on their weak areas

Recognise Achievement
People expect hard work and achievement to be recognised. They also require a record of that
recognition so do it in writing.

Reward Success
Recognition is essential but people also expect to be rewarded. Public recognition is a form of
reward but eventually rewards must be tangible.

Encourage, Support and Motivate A good leader will spend time coaching and
encouraging people to become more effective and will always support his team members.

Set Realistic Goals & Objectives

The setting of individual and team goals is a key activity. Goals must be challenging but not so
difficult as to become de-motivating. Individual goals must be compatible and aligned with
the needs of the project.

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Be Available
Finally a good leader will make sure he is available to his team and maximises face to face
contact. This can be difficult to achieve on geographically dispersed projects.

10.1.3 Leadership Styles (Hersey & Blanchard)

Hersey and Blanchard developed what they called a Situational Leadership Model.
In simple terms, a situational leader is one who can adopt different leadership styles depending
on the situation.

They defined 4 basic leadership styles for getting tasks done:-

1. Directing
2. Coaching
3. Supporting
4. Delegating

These four styles can be expressed in terms of Supporting Behaviour (concern for the person and Directive
Behaviour (concern for the task)

This is illustrated below:-

Figure 10.1 Heresy & Blanchard Leadership Styles

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 10.2 The Project Team

10.2.1 A Team Definition

“.. two or more people who interact, dynamically, interdependently, and adaptively
toward a common and valued goal/objective/ mission, who have each been assigned
specific roles or functions to perform”
Salas, Dickenson, Converse and Tannenbaum

Project teams are normally transient and will be disbanded upon completion of the project.

10.2.2 Characteristics of Effective Teams

• They have a good leader

• There is a good blend of skills and personalities
• Team morale and motivation is high
• The team works together and everyone participates actively and positively in
meetings and activities
• Everyone knows their own role in the team
• Team goals are given realistic time frames.
• Everyone is focused on the ultimate goal of the project
• Team goals are understood by everyone.
• Everyone is supportive of the project and of others
• There is trust between team members

10.3 Team models

Behavioural scientists have developed models of team dynamics to try and understand how
people of different aptitudes and attitudes work together in teams. The two best known are
Belbin and Margerison & McCann. The two are very similar in concept so only Belbin will
be described in detail here.

10.3.1 Belbin Roles

Raymond Meredith Belbin carried out research in the sixties on how people work within
teams. He concluded that there were eight role types within a team and that team work better if
all of those roles are represented in the team. This does not mean that a team must have 8
people because most people can adopt more than one role even though one role is often
strongest.
Certain roles work well together and others not so well. There is a simple written test which
purports to tell which roles a person is best suited for. This is useful information for a project

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 manager. However with experience and knowledge of the role types it is possible to accurately
determine role types without the test.
Belbin later added a ninth role, that of specialist brought in purely for their expert knowledge in a
particular area.

The roles are illustrated below.

Figure 10.2 Belbin Roles

The roles are briefly described in the table following along with their weaknesses

Team Role Description Allowable Weaknesses Not

Allowable
Coordinator Mature, confident, clarifies goals Manipulative, lazy ( own work ) Take credit for teams work

Shaper Challenging, full of drive dynamic Provokes others, hurts feelings No apologies, no humour

Monitor Evaluator Sober, strategic, sees options Lacks drive, overly critical Cynicism without logic

Team worker Cooperative, mild, diplomatic Indecisive, easily influenced Avoiding pressure situations

Plant Creative, unorthodox Ignores details, preoccupied Ownership vs. cooperation

Implementer Disciplined, reliable, practical Inflexible, slow to respond Obstructing change

Completer / finisher Painstaking, conscientious Inclined to worry, nit-picker Obsessive behaviour

Resource Develop contacts, enthusiastic Overoptimistic, loses interest Letting clients down
investigator
Specialist Single minded, rare knowledge Overlooks big picture Ignoring important info.

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10.3.2 Advantages & disadvantages
Both models work by testing people to find out which team roles they are best suited to. This
enables people to be placed in roles they are most likely to enjoy. When people are matched to
a role suitable for them they are likely to be happier in their job and perform better. It avoids
the square peg in a round hole syndrome. So the principal advantage of using such models is
having a motivated, happier and higher performing team. People forced into unsuitable roles
will exhibit stress and performance and team morale will suffer.

The downside is that the process can be expensive and time consuming. It is also subject to
manipulation if people being tested are aware of the method.

10.4 Team Building

When teams work together, and support each other, the team is much more than the sum of its
parts. The team consists of a diverse collection of individuals with widely differing
backgrounds, abilities, needs, and interests. Team members are initially unfamiliar with
project goals and individuals’ capabilities are unknown to the project manager. In addition,
matrix management mode makes it hard to obtain real commitments from team members who
may work on the project part-time and/or temporary. Team building should be very high on a
project manager’s priority list and be a continuous activity. It is quite easy to spot a poor
performing team. It will exhibit some or all of the following symptoms.

• Frustration

• Unhealthy conflict

• Unproductive meetings

• Lack of trust in the PM

The results of good team building are also very apparent.

• Members are ready to work to a common goal

• There is team loyalty and identification

• Members are willing to work hard for the good of the team

• They are willing to sacrifice personal interests for the team good

• Team morale is high

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 10.5 Stages in Team Development
The most widely used model of team development is the “Forming, Storming, Norming, Performing model”.
This model is illustrated opposite.

Figure 10.3

Team Development Model.

This is a well-recognised process that all teams go through. The job of the PM is to get the team
performing and keep them there. The PM must also realise that going through the stages from Norming to
Performing is natural and must be expected, Events such as team changes, change in objectives,
uncontrolled changes or setbacks can cause a team to stop performing and revert to storming.

The way in which the model relates to project activities and what must take place to progress from one stage
to
the next is illustrated below.

Figure 10.4 Stage Progression

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 10.6 Influencing Team Performance
There are things that a leader can do to make sure that he/she has maximum beneficial influence on team
performance. e.g. :-.

• Hold a kick-off meeting at the start of the project

• Demonstrate a strong, personal work ethic

• Make sure everyone contributes to and “buys in” to the project plan

• Make sure everyone knows exactly what is expected of them.

• Understand, support and coach each individual

• Hold regular team building events.

• Always give credit where due

• Praise in public, reprimand in private

• Provide motivation, reward and recognition

• Provide for skills development

• Shield your team from outside interference

• Do not be afraid to admit when you are wrong

• Celebrate successes and commiserate setbacks...as a team

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Practice Exam Questions
1. Which of the following statements is the most important responsibility of the project sponsor?

A. Monitoring daily progress of the project

B. Monitoring the project team’s productivity
C. Ensuring the benefits of the project are realised.
D. Leading project evaluation reviews for lessons learned.

2. Which of the following best defines a portfolio?

A. All the Programmes carried out by an Organisation

B. All the Programmes and Projects carried out by an Organisation
C. All the Products and Services offered by an Organisation
D. All the Projects, Programmes and Operational activities carried out by an Organisation

3. Which of the following statements about a project life cycle is not true?

A. It consists of a number of distinct phases.

B. The number of phases can vary.
C. It has phases which should be roughly the same size.
D. Phasing facilitates the use of gateways.

4. Resource smoothing should:

A. Work within pre-determined resource levels.

B. Resolve resource overloads by utilising Float
C. Extend the activity duration.
D. Utilise overtime where necessary.

5. Which of the following would you not expect to find in a business case.

A. Project success criteria

B. Outline schedule
C. Stakeholder analysis
D. Detailed cash flow statement

6. Good leadership is all about:

A. Motivating people to be more effective.

B. Looking for opportunities rather than threats.
C. Getting people to understand what is best for them.
D. Letting people learn from their own mistakes.

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7. Which of the following best describes a project’s business case?

A. A list of the project deliverables and their costs.

B. The reason why the project should proceed.
C. A statement of all the estimated project costs and benefits.
D. A statement of all the project costs and benefits with detailed budgets and schedules.

8. Key Performance Indicators are used to monitor which of the following?

A. Success Criteria
B. Individual team member performance
C. Success Factors
D. Project progress

9. Which of the following is the best definition of a programme?

A. A group of projects which contribute to a strategic business objective.

B. A group of projects that are managed by one project manager.
C. All the projects within an organisation.
D. All the projects within the total organisation’s portfolio.

10. Which of the following is the best definition of the critical path?

A. The shortest path from start to finish.

B. The path with the zero float.
C. The path with the largest number of activities.
D. The longest path through the network.

11. Configuration management is primarily concerned with:

A. Ensuring that the final product meets the needs of the business.
B. Minimising the impact of changes on the scope of the project.
C. Making sure that all changes are beneficial.
D. Ensuring the traceability and integrity of the delivered product or products

12. The primary purpose of a gate review is to:

A. Check on project status.

B. Check on project team performance.
C. Decide whether to continue with the next phase of the project.
D. Approve the plan for the next phase.

13. Which of the following statements best describes procurement?

A. All the activities concerned with negotiating with potential suppliers of goods and services.
B. The placing of a contract with a supplier.
C. Arranging for the supply and delivery of purchased goods to a project site.
D. The securing (or acquisition) of goods or services.

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14. Project context can be defined as:

A. The business environment in which it takes place.

B. The technical difficulties of the project being undertaken.
C. Its potential impact on the environment.
D. Factors within the business environment that could affect the project.

15. A principal purpose of a project handover is:

A. To complete the project audit trail.

B. To pass legal responsibility and ownership to the client.
C. To verify that the project deliverables are fit for purpose.
D. To establish operational runn9ing of the product or service.

16. Which of the following statements is false?

A. A project sponsor should “champion” the project.

B. A project sponsor is responsible for the production of the project plan.
C. A project sponsor should have influence across functional boundaries.
D. A project sponsor should have some knowledge of project management.

17. Using the Work Breakdown Structure (WBS) to assist estimating is known as:

A. Comparative estimating.
B. Bottom-up estimating.
C. Definitive estimating.
D. Parametric estimating.

18. People interested in or affected by a project are called:

A. Bystanders
B. Key players
C. Stakeholders
D. Supporters

19. Which of the following best defines team work?

A. A group of people communicating effectively with each other

B. A group of people working collaboratively towards a common
goal.
C. A group of people sharing a common goal.
D. A group of people working under the same leader

20. Which of the following is not a component of quality management?

A. Quality planning
B. Quality control
C. Quality measurement
D. Quality assurance.

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 21. The document that represents the prime means of communicating the project manager’s
intentions to the stakeholders is the:

A. Monthly project report.

B. Stakeholder management plan
C. Status audit report.
D. Project management plan.

22. Which of the following would not be classified as a project risk?

A. This project is outside our normal area of expertise.

B. We might not have sufficient people with the right experience to undertake the project.
C. We always find that initial planning takes longer than we thought.
D. We have never worked in that country before.

23. The business case is owned by:

A. The project manager.

B. The programme manager
C. The project sponsor.
D. The project board.

24. According to APM which of the following best describes a project issue?

A. A future risk that could have a significant negative impact.

B. A previously unidentified risk.
C. A routine project problem
D. A problem which cannot be resolved by the project manager.

25. Portfolio management is particularly helpful in managing:

A. Multiple interconnecting projects.

B. Resource conflicts.
C. Projects requiring multiple skills.
D. Risks to ongoing operations.

26. Responsibility for producing the project management plan lies with:

A. The project sponsor assisted by the project manager

B. The project manager assisted by the project sponsor.
C. The project manager and appropriate project team members.
D. The project planner.

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27. Which of the following is true with regard to project quality?

A. Having a quality system will ensure that all products are of the approved standard.
B. Project quality is primarily the responsibility of people actually doing the work.
C. Quality cannot be achieved just by quality control inspections.
D. Quality will follow if everyone follows the quality system.

28. Which process determines if the quality system is being adhered to?

A. Design reviews
B. Project reviews
C. Quality audits
D. Product testing

29. A common acronym for an analysis of project context is:

A. PETAL
B. PASTEL
C. PISTOL
D. PESTLE

30. Which of the following best defines a portfolio?

A. The totality of all the projects, programmes and associated operations within an organisation
B. All projects and programmes within an organisation
C. A set of independent projects under the control of one manager
D. A +C

31 Which of the following best constitutes a project?

A. Some minor changes to an existing facility

B. Constructing a new facility
C. Maintaining a new facility
D. Operating a new facility

32. Which of the following is a prime responsibility of the project sponsor?

A. Monitoring progress against the project schedule

B. Motivating the project team
C. Ensuring the benefits of the project are realised
D. Leading the lessons learned review

33. When deciding on the relative importance of Time, Cost & Quality which of the following is
true?
A. Cost is always paramount
B. It is better to slip the schedule than increase the cost
C. Time, Cost and Quality are equally important
D. It is a negotiation between Time, Cost and Quality in relation to the overall project objectives.

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34. What are the five activities in a configuration management process?

A. Initiate, plan, manage, track, control

B. Identify, plan, analyse, manage, control
C. Initiate, identify, plan, manage, implement
D. Plan, identify, control, status accounting, audit & verification

35. Why must a project have an approved business case?

A. To determine if the project is still viable at gates and project reviews

B. To ensure that the organisation’s project management procedures are adhered to
C. To ensure that the project makes a profit
D. To ensure that all stakeholders are happy

36. The relative importance of Schedule, Cost and Performance is:

A. Fixed throughout the project

B. Determined by the Project Manager
C. Agreed between the Project Manager and Business Sponsor
D. Is always equal

37. A project life cycle:

A. Consists of a number of distinct phases

B. Always uses the same phases
C. Breaks the project into similar size blocks
D. Allows the budget to be more appropriately divided up

38. Which of the following is normally the responsibility of a Programme Manager

A. Interfaces between teams on a project

B. Chairing the post project review
C. Managing project interdependencies
D. Developing the project management plan

39. A Project Management Plan:

A. Is produced during the development phase

B. Does not contain cost information
C. Includes the ‘What’, ‘Why’, ‘How’, ‘When’, How Much and ‘Who’ of the project D. Is developed by
the client

40. What would be the primary benefit of undertaking a PESTLE analysis

A. To understand the strategic context for the project

B. To understand legislation impacting on the project
C. To satisfy the needs of key stakeholders
D. To comply with the company project management methodology

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41. Which of the following best describes a project’s business case?

A. A statement of why the project is needed and what costs and benefits will accrue
B. A statement of what the project will deliver in terms of products/deliverables
C. A document which describes how the project will be managed
D. A statement as to how the project fits into the long-term strategy of the client

42. What is meant by the term programme management:

A. The management of all the activities identified in the project plans

B. The line management of project managers
C. The management of a pool of skilled project resource
D. The management of a group of projects or activities which together achieve a defined strategic aim

43. What term is used to define things within the project whose presence will
increase the likelihood of project success?

A. Acceptance criteria
B. Success criteria
C. Key performance indicators
D. Success factors

44. Project reports should be disseminated:

A. In accordance with the communication plan

B. To all stakeholders
C. To all members of the project team
D. To anyone that the project manager feels needs them

45. What is the prime purpose of a Work Breakdown Structure?

A. To provide a list of the products produced

B. To show task durations
C. To show resource requirements for all tasks
D. To define the scope of the project by dividing it into tasks

46. Which of the following is a user responsibility on a project?

A. To cooperate in defining acceptance criteria for the project deliverables

B. To assist in securing resources for the project
C. To assist with project planning and control
D. Ensuring that the project is in line with corporate strategy

47 Which of the following defines the lines of communication in a project?

A. Product breakdown structure

B. Organisational breakdown structure
C. Work breakdown structure
D. Cost breakdown structure

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 48. Which of the following statements is false?

A. The project sponsor owns the project plan

B. The project plan should be shared with appropriate stakeholders
C. The project manager is responsible for producing the project plan
D. The project sponsor approves the project management plan

49. Identifying and implementing project success factors will:

A. Increase the likelihood of a project success

B. Provide better overall project control
C. Ensure satisfactory project completion
D. Ensure team motivation

50. Using the Work Breakdown Structure to estimate is known as:

A. Comparative estimating
B. Bottom-up estimating
C. Strategic estimating
D. Parametric estimating

51. Which of the following is a true statement?

A. The Project Plan is not always subject to change control

B. Changes to the Project Plan should be discouraged
C. The Business Case once agreed should not be changed
D. The Business Case should be reviewed whenever there is a change in project scope

52. Work delegated by the Project Manager:

A. Means that the PM no longer controls the work

B. Must be approved by senior line management
C. Does not reduce the PM’s accountability for the work
D. Can be carried out independently of all other project work

53. Which statement below is true?

A. Benefits only occur after project closure

B. The project manager is responsible for ensuring benefits are realised
C. Some benefits may be realised during project execution
D. Benefits must be expressed in monetary terms

54. Scope management is best defined as the process which:

A. Defines the deliverables and the work to produce these deliverables

B. Confirms that all project deliverables have been completed satisfactorily
C. Defines the project boundaries, its output, approach and content
D. Identifies and manages any change in a project scope that requires a change in the project's cost, time
or quality

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55. If Total Float for an activity is negative, which of the following is true?

A. It is an error – negative float is not possible

B. The critical path is too tight
C. A task in the network has an unachievable finish date
D. There is insufficient free float in the network

56. Which of the following is the best example of a KPI?

A. Completing the project within planned schedule

B. Completing the project within planned budget
C. Having a motivated project team
D. Regularly checking progress against the project schedule

57. The purpose of testing deliverables during handover is to:

A. Demonstrate that the deliverables have been produced to the agreed time, cost and quality
B. Demonstrate that the deliverables are fit for purpose
C. Confirm that deliverables pass the agreed acceptance tests
D. Ensure that the deliverables generate the benefits defined in the business case

58. Which of the following is most likely to appear in a Project’s Business Case?

A. Detailed project costings

B. The project organisation chart
C. The options considered plus the impact of not authorising the project
D. The plan for managing risk

59. Who is ultimately responsible for accepting project risk?

A. The project manager

B. The appointed risk owner
C. The project board
D. The client/sponsor

60. Which of the following would be provided by the Work Breakdown Structure?

A. The project phases

B. The order in which work takes place
C. The project scope
The timing of individual tasks

61. An advantage of virtual communications is:

A. that nonverbal signals can have an impact on discussions.

B. it’s easy to detect signs of conflict within the project team.
C. access to a wider resource pool for the project.
D. that the project team will always be co-located.

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62. Which of the following defines the term ‘deployment baseline’?

A. The starting point for creating a resource histogram.

B. The basis for creating an organisational breakdown structure.
C. The starting point for the monitoring of project risks.
D. The basis for progress monitoring.

63. A project life cycle which combines approaches from the linear and iterative life cycles is known as
a ???? project life cycle.

A. a hybrid.
B. an extended.
C. a reduced.
D. a combined.

64. Which of the following statements refers to how scope is managed in a linear project but not an
iterative project?

A. Teams can act on new knowledge to change the scope.

B. Teams can re-prioritise requirements within the scope.
C. The scope of work is the starting point for the implementation of change control.
D. Scope definition is assumed to be fixed for the whole project.

65. One difference between an issue and a risk is an issue:

A. must be recorded but a risk does not.

B. is an uncertain event but a risk is not.
C. is a certain event but a risk is not.
D. always affects scope but a risk does not.

66. Communication includes:

1) exchanging information
2) managing stakeholders
3) confirming there is a shared understanding
4) building relationships within your team

A. 2 and 3 only
B. 1 and 4 only
C. 1 and 3 only
D. 2 and 4 only

67. A project manager requires a team member to focus on the team’s objectives and draw out other
team members. Which of the Belbin’s team roles is most appropriate?

A. Shaper.
B. Monitor evaluator.
C. Specialist.
D. Coordinator

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68. Which of the following is a difference between deployment baselines in linear life cycles and
iterative life cycles?

A. Linear project life cycles set the deployment baseline for the whole project.
B. In an iterative project life cycle the scope and quality are fixed in the deployment baseline.
C. Only deployment baselines in iterative life cycles have an integrated baseline review.
D. Only deployment baselines in linear life cycles have an integrated baseline review.

69. Which of the following can be adjusted during a time box?

1) Scope
2) Resource
3) Time
4) Quality
A. 1 and 2 only
B. 1 and 4 only
C. 3 and 4 only
D. 2 and 4 only

70. Which of the following are challenges for a project manager developing and leading a project
team?

1) Issues and incompatibility amongst team members

2) Getting the right skills and attributes amongst team members
3) Co-location of team members in the same geographic area
4) Lack of accountability of team members

A. 1, 2 & 3
B. 1, 2 & 4
C. 1, 3 & 4
D. 2, 3 & 4

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Practice Questions Answers
1. Which of the following statements is the most important responsibility of the project sponsor?

A. Monitoring daily progress of the project

B. Monitoring the project team’s productivity
C. Ensuring the benefits of the project are realised.
D. Leading project evaluation reviews for lessons learned.

2. Which of the following best defines a portfolio?

A. All the Programmes carried out by an Organisation

B. All the Programmes and Projects carried out by an Organisation
C. All the Products and Services offered by an Organisation
D. All the Projects, Programmes and Operational activities carried out by an Organisation

3. Which of the following statements about a project life cycle is not true?

A. It consists of a number of distinct phases.

B. The number of phases can vary.
C. It has phases which should be roughly the same size.
D. Phasing facilitates the use of gateways.

4. Resource smoothing should:

A. Work within pre-determined resource levels.

B. Resolve resource overloads by utilising Float
C. Extend the activity duration.
D. Utilise overtime where necessary.

5. Which of the following would you not expect to find in a business case.

A. Project success criteria

B. Outline schedule
C. Stakeholder analysis
D. Detailed cash flow statement

6. Good leadership is all about:

A. Motivating people to be more effective.

B. Looking for opportunities rather than threats.
C. Getting people to understand what is best for them.
D. Letting people learn from their own mistakes.

7. Which of the following best describes a project’s business case?

A. A list of the project deliverables and their costs.

B. The reason why the project should proceed.
C. A statement of all the estimated project costs and benefits.
D. A statement of all the project costs and benefits with detailed budgets and schedules.
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8. Key Performance Indicators are used to monitor which of the following?

A. Success Criteria
B. Individual team member performance
C. Success Factors
D. Project progress

9. Which of the following is the best definition of a programme?

A. A group of projects which contribute to a strategic business objective.

B. A group of projects that are managed by one project manager.
C. All the projects within an organisation.
D. All the projects within the total organisation’s portfolio.

10. Which of the following is the best definition of the critical path?

A. The shortest path from start to finish.

B. The path with the zero float.
C. The path with the largest number of activities.
D. The longest path through the network.

11. Configuration management is primarily concerned with:

A. Ensuring that the final product meets the needs of the business.
B. Minimising the impact of changes on the scope of the project.
C. Making sure that all changes are beneficial.
D. Ensuring the traceability and integrity of the delivered product or products

12. The primary purpose of a gate review is to:

A. Check on project status.

B. Check on project team performance.
C. Decide whether to continue with the next phase of the project.
D. Approve the plan for the next phase.

13. Which of the following statements best describes procurement?

A. All the activities concerned with negotiating with potential suppliers of goods and services.
B. The placing of a contract with a supplier.
C. Arranging for the supply and delivery of purchased goods to a project site.
D. The securing (or acquisition) of goods or services.

14. Project context can be defined as:

A. The business environment in which it takes place.

B. The technical difficulties of the project being undertaken.
C. Its potential impact on the environment.
D. Factors within the business environment that could affect the project.

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15. A principal purpose of a project handover is:

A. To complete the project audit trail.

B. To pass legal responsibility and ownership to the client.
C. To verify that the project deliverables are fit for purpose.
D. To establish operational running of the product or service.

16. Which of the following statements is false?

A. A project sponsor should “champion” the project.

B. A project sponsor is responsible for the production of the project plan.
C. A project sponsor should have influence across functional boundaries.
D. A project sponsor should have some knowledge of project management.

17. Using the Work Breakdown Structure (WBS) to assist estimating is known as:

A. Comparative estimating.
B. Bottom-up estimating.
C. Definitive estimating.
D. Parametric estimating.

18. People interested in or affected by a project are called:

A. Bystanders
B. Key players
C. Stakeholders
D. Supporters

19. Which of the following best defines team work?

A. A group of people communicating effectively with each other B. A

group of people working collaboratively towards a common goal.
C. A group of people sharing a common goal.
D. A group of people working under the same leader

20. Which of the following is not a component of quality management?

A. Quality planning
B. Quality control
C. Quality measurement
D. Quality assurance.
E.
21. The document that represents the prime means of communicating the project manager’s
intentions to the stakeholders is the:

A. Monthly project report.

B. Stakeholder management plan
C. Status audit report.
D. Project management plan.

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22. Which of the following would not be classified as a project risk?

A. This project is outside our normal area of expertise.

B. We might not have sufficient people with the right experience to undertake the project.
C. We always find that initial planning takes longer than we thought.
D. We have never worked in that country before.

23. The business case is owned by:

A. The project manager.

B. The programme manager
C. The project sponsor.
D. The project board.

24. According to APM which of the following best describes a project issue?

A. A future risk that could have a significant negative impact.

B. A previously unidentified risk.
C. A routine project problem
D. A problem which cannot be resolved by the project manager.

25. Portfolio management is particularly helpful in managing:

A. Multiple interconnecting projects.

B. Resource conflicts.
C. Projects requiring multiple skills.
D. Risks to ongoing operations.

26. Responsibility for producing the project management plan lies with:

A. The project sponsor assisted by the project manager

B. The project manager assisted by the project sponsor.
C. The project manager and appropriate project team members.
D. The project planner.

27. Which of the following is true with regard to project quality?

A. Having a quality system will ensure that all products are of the approved standard.
B. Project quality is primarily the responsibility of people actually doing the work.
C. Quality cannot be achieved just by quality control inspections.
D. Quality will follow if everyone follows the quality system.

28. Which process determines if the quality system is being adhered to?

A. Design reviews
B. Project reviews
C. Quality audits
D. Product testing

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29. A common acronym for an analysis of project context is:

A. PETAL
B. PASTEL
C. PISTOL
D. PESTLE

30. Which of the following best defines a portfolio?

A. The totality of all the projects, programmes and associated operations within an organisation
B. All projects and programmes within an organisation
C. A set of independent projects under the control of one manager
D. A +C

31 Which of the following best constitutes a project?

A. Some minor changes to an existing facility

B. Constructing a new facility
C. Maintaining a new facility
D. Operating a new facility

32. Which of the following is a prime responsibility of the project sponsor?

A. Monitoring progress against the project schedule

B. Motivating the project team
C. Ensuring the benefits of the project are realised
D. Leading the lessons learned review

33. When deciding on the relative importance of Time, Cost & Quality which of the following is
true?

A. Cost is always paramount

B. It is better to slip the schedule than increase the cost
C. Time, Cost and Quality are equally important
D. It is a negotiation between Time, Cost and Quality in relation to the overall project objectives.

34. What are the five activities in a configuration management process?

A. Initiate, plan, manage, track, control

B. Identify, plan, analyse, manage, control
C. Initiate, identify, plan, manage, implement
D. Plan, identify, control, status accounting, audit & verification

35. Why must a project have an approved business case?

A. To determine if the project is still viable at gate and project reviews

B. To ensure that the organisation’s project management procedures are adhered to
C. To ensure that the project makes a profit
D. To ensure that all stakeholders are happy

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36. The relative importance of Schedule, Cost and Performance is:

A. Fixed throughout the project

B. Determined by the Project Manager
C. Agreed between the Project Manager and Business Sponsor
D. Is always equal

37. A project life cycle:

A. Consists of a number of distinct phases

B. Always uses the same phases
C. Breaks the project into similar size blocks
D. Allows the budget to be more appropriately divided up

38. Which of the following is normally the responsibility of a Programme Manager

A. Interfaces between teams on a project

B. Chairing the post project review
C. Managing project interdependencies
D. Developing the project management plan

39. A Project Management Plan:

A. Is produced during the development phase

B. Does not contain cost information
C. Includes the ‘What’, ‘Why’, ‘How’, ‘When’, How Much and ‘Who’ of the project
D. Is developed by the client

40. What would be the primary benefit of undertaking a PESTLE analysis

A. To understand the strategic context for the project

B. To understand legislation impacting on the project
C. To satisfy the needs of key stakeholders
D. To comply with the company project management methodology

41. Which of the following best describes a project’s business case?

A. A statement of why the project is needed and what costs and benefits will accrue
B. A statement of what the project will deliver in terms of products/deliverables
C. A document which describes how the project will be managed
D. A statement as to how the project fits into the long-term strategy of the client

42. What is meant by the term programme management:

A. The management of all the activities identified in the project plans

B. The line management of project managers
C. The management of a pool of skilled project resource
D. The management of a group of projects or activities which together achieve a defined strategic aim

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43. What term is used to define things within the project whose presence will increase
the likelihood of project success?

A. Acceptance criteria
B. Success criteria
C. Key performance indicators
D. Success factors

44. Project reports should be disseminated:

A. In accordance with the communication plan

B. To all stakeholders
C. To all members of the project team
D. To anyone that the project manager feels needs them

45. What is the prime purpose of a Work Breakdown Structure?

A. To provide a list of the products produced

B. To show task durations
C. To show resource requirements for all tasks
D. To define the scope of the project by dividing it into tasks

46. Which of the following is a user responsibility on a project?

A. To cooperate in defining acceptance criteria for the project deliverables

B. To assist in securing resources for the project
C. To assist with project planning and control
D. Ensuring that the project is in line with corporate strategy

47 Which of the following defines the lines of communication in a project?

A. Product breakdown structure

B. Organisational breakdown structure
C. Work breakdown structure
D. Cost breakdown structure

48. Which of the following statements is false?

A. The project sponsor owns the project plan

B. The project plan should be shared with appropriate stakeholders
C. The project manager is responsible for producing the project plan
D. The project sponsor approves the project management plan

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49. Identifying and implementing project success factors will:

A. Increase the likelihood of a project success

B. Provide better overall project control
C. Ensure satisfactory project completion
D. Ensure team motivation

50. Using the Work Breakdown Structure to estimate is known as:

A. Comparative estimating
B. Bottom-up estimating
C. Strategic estimating
D. Parametric estimating

51. Which of the following is a true statement?

A. The Project Plan is not always subject to change control

B. Changes to the Project Plan should be discouraged
C. The Business Case once agreed should not be changed
D. The Business Case should be reviewed whenever there is a change in project scope

52. Work delegated by the Project Manager:

A. Means that the PM no longer controls the work

B. Must be approved by senior line management
C. Does not reduce the PM’s accountability for the work
D. Can be carried out independently of all other project work

53. Which statement below is true?

A. Benefits only occur after project closure

B. The project manager is responsible for ensuring benefits are realised
C. Some benefits may be realised during project execution
D. Benefits must be expressed in monetary terms

54. Scope management is best defined as the process which:

A. Defines the deliverables and the work to produce these deliverables

B. Confirms that all project deliverables have been completed satisfactorily
C. Defines the project boundaries, its output, approach and content
D. Identifies and manages any change in a project scope that requires a change in the project's cost,
time or quality

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55. If Total Float for an activity is negative, which of the following is true?

A. It is an error – negative float is not possible

B. The critical path is too tight
C. A task in the network has an unachievable finish date
D. There is insufficient free float in the network

56. Which of the following is the best example of a KPI?

A. Completing the project within planned schedule

B. Completing the project within planned budget
C. Having a motivated project team
D. Regularly checking progress against the project schedule

57. The purpose of testing deliverables during handover is to:

A. Demonstrate that the deliverables have been produced to the agreed time, cost and quality
B. Demonstrate that the deliverables are fit for purpose
C. Confirm that deliverables pass the agreed acceptance tests
D. Ensure that the deliverables generate the benefits defined in the business case

58. Which of the following is most likely to appear in a Project’s Business Case?

A. Detailed project costings

B. The project organisation chart
C. The options considered plus the impact of not authorising the project
D. The plan for managing risk

59. Who is ultimately responsible for accepting project risk?

A. The project manager

B. The appointed risk owner
C. The project board
D. The client/sponsor

60. Which of the following would be provided by the Work Breakdown Structure?

A. The project phases

B. The order in which work takes place
C. The project scope
D. The timing of individual tasks

61. An advantage of virtual communications is:

A. that nonverbal signals can have an impact on discussions.

B. it’s easy to detect signs of conflict within the project team.
C. access to a wider resource pool for the project.
D. that the project team will always be co-located.

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62. Which of the following defines the term ‘deployment baseline’?

A. The starting point for creating a resource histogram.

B. The basis for creating an organisational breakdown structure.
C. The starting point for the monitoring of project risks.
D. The basis for progress monitoring.

63. A project life cycle which combines approaches from the linear and iterative life cycles is known as
a ???? project life cycle.

A. a hybrid.
B. an extended.
C. a reduced.
D. a combined.

64. Which of the following statements refers to how scope is managed in a linear project but not an
iterative project?

A. Teams can act on new knowledge to change the scope.

B. Teams can re-prioritise requirements within the scope.
C. The scope of work is the starting point for the implementation of change control.
D. Scope definition is assumed to be fixed for the whole project.

65. One difference between an issue and a risk is an issue:

A. must be recorded but a risk does not.

B. is an uncertain event but a risk is not.
C. is a certain event but a risk is not.
D. always affects scope but a risk does not.

66. Communication includes:

1) exchanging information
2) managing stakeholders
3) confirming there is a shared understanding
4) building relationships within your team

A. 2 and 3 only
B. 1 and 4 only
C. 1 and 3 only
D. 2 and 4 only

67. A project manager requires a team member to focus on the team’s objectives and draw out other
team members. Which of the Belbin’s team roles is most appropriate?

A. Shaper.
B. Monitor evaluator.
C. Specialist.
D. Co-ordinator

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68. Which of the following is a difference between deployment baselines in linear life cycles and
iterative life cycles?

A. Linear project life cycles set the deployment baseline for the whole project.
B. In an iterative project life cycle the scope and quality are fixed in the deployment baseline.
C. Only deployment baselines in iterative life cycles have an integrated baseline review.
D. Only deployment baselines in linear life cycles have an integrated baseline review.

69. Which of the following can be adjusted during a time box?

1) Scope
2) Resource
3) Time
4) Quality

A. 1 and 2 only
B. 1 and 4 only
C. 3 and 4 only
D. 2 and 4 only

70. Which of the following are challenges for a project manager developing and leading a project
team?

1) Issues and incompatibility amongst team members

2) Getting the right skills and attributes amongst team members
3) Co-location of team members in the same geographic area
4) Lack of accountability of team members

E. 1, 2 & 3
F. 1, 2 & 4
G. 1, 3 & 4
H. 2, 3 & 4

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