The Handbook of Project Management: A Practical Guide to Effective Policies and Procedures, 2nd Revised Edition_13 doc

• There is strong commitment to a clear mission. • The project leader thrives on relationships and influence. • The project leader understand the risks – anticipates the icebergs. • Those involved speak a common project management language and use a formal project methodology. • The team is results-oriented: the goal is to deliver a quality solution to the customer on schedule at the right cost. • Team members clearly understand their roles. • A baseline for scope, schedule and cost is established and measured against. • Team members understand at all times and regularly check that the project supports the strategic objectives. • The team leader encourages creative solutions and problem solving. • The change process is effectively managed. • The team leader ensures fast start-up and looks for opportunities to reduce cycle times. • Metrics to identify progress are kept to a minimum. • People learn from the evaluation process. Success does not just happen; it takes a great deal of focused effort and commitment. Use the methodology and techniques discussed in earlier chapters. It is hard work, demanding persistence, dedication and a thick skin but worth the time you devote to getting the results. Your feeling of satisfaction of a job well done is the best reward and you will also enhance your professional reputation. Common project problems l 281 Postscript This book has been a project and you have come to the end. Has it been a success? You will only really know when you apply the techniques and processes suggested here. All are tried and proven, and there is nothing either astoundingly new or astoundingly reactionary in these techniques. This project has been focused on deriving a step-by-step process to help you achieve success with your programmes and projects in future, giving you tips to improve based on personal experience. If you do achieve success and feel more in control of your working life as a programme or project manager then the work of this project has been a success. If you have any interesting experiences to relate using the approaches given here, the author will be pleased to hear from you via the publisher. 282 283 Appendix 1 Glossary of terms There is a considerable amount of jargon used by project managers today, enhanced by the rapid growth in the use of personal computers for plan- ning and control of projects. This glossary gives some of the more common terms and their usual meaning. Activity. A clearly defined task or tasks with known duration – usually a group of tasks that together complete a particular step or part of the work. Activity on node diagram. A network diagram where all activities are represented by the node or event, usually shown as a box. Arrows are used to show the logical flow of the project from node to node. ACWP. Actual cost of work performed – the actual recorded cost, includ- ing costs committed, of the work actually performed up to a particular point in the project schedule. Backward pass. The procedure by which the latest event times or the finish and start times for the activities of a network are determined. Bar chart. A graphical presentation of the activities of a project derived from the project logic diagram shown as a timed schedule. Baseline plan. The final ‘frozen’ plan as signed off by the sponsor before implementation. This is also the recorded plan, against which all progress is measured and variances analysed and reported. BCWP. Budgeted cost of the work performed – the budgeted cost, based on the operating budget, of the work that is actually completed up to a particular point in the project schedule. BCWS. Budgeted cost of the work scheduled – the budgeted cost, based on the operating budget, of the work that is planned to be completed up to a particular point in the project schedule. Benefit. A measurable gain from the project that is a primary underlying reason for the project’s being initiated. Change log. A sequential listing of all change requests raised during the life of a project with essential information about their handling. Change request. A standard template on which to record and request approval from the key stakeholders for a change to the baseline plan. Control system. The procedures established at the start of the project that provide the leader with the necessary data to compare planned status with the actual status at any instant in time, to identify variances and take corrective action. Cost control diagram. A graphical representation of the actual and budgeted costs of the work actually performed against the scheduled and budgeted costs of the work planned. Cost variance. The difference between the value of the work actually performed (BCWP) and the actual costs incurred and committed (ACWP). Cost variance per cent. The cost variance divided by the value of the work actually performed (BCWP). Critical activity. Any activity in the project that has been analysed to show it has zero float and must therefore be completed on time if the project is not to slip. Critical path. The sequence of activities that determines the total time for the project. All activities on the critical path are known as critical activities. Deliverable. A specific, defined, measurable and tangible output from the project. Most projects have several deliverables. Dependency. The basic rule of logic governing logic diagram and network drawing: any activity that is dependent on another is normally shown to emerge from the HEAD event of the activity on which it depends. Duration. The estimated or actual time to complete an activity. EET. The earliest event time – the earliest completion time for an event that does not affect the total project time. EFT. The earliest finish time of an activity without changing total time or the spare or float time. Elapsed time. The duration of a piece of the work expressed in real, calen- dar working days – taking into account holidays, weekends, etc not worked. EST. The earliest start time of an activity. Event. A point in the progress of the project after total completion of all preceding activities. Float. The difference between the time necessary and the time available for an activity. Forward pass. The procedure for determining the earliest event times of a network. 284 l Appendix 1 Full-time equivalent. One single person-day divided between several persons working on a key stage or task. Functional manager. The person accountable for a function or department in the organization and responsible for the employees allocated to the function. Gantt chart. A graphical method of showing a project schedule that shows project time, dates, all activities, resources and their relationships. It is derived from the logic diagram when it has been analysed for float. Issue. A risk to the project, or an unforeseen event that has become a reality and needs to be resolved if the project’s integrity is not to be threatened. Issue log. A sequential listing of all issues raised during the life of a project with essential information about their handling. Key stage. A group of closely related activities that can be isolated together as a clear stage of the project that must be complete before passing to the next stage. Lag. An intentional delay period introduced between two activities in a logic diagram. Layering the plan. See Multi-level planning. Lead. A specific amount of time a successor activity should start after the start of its predecessor even though the predecessor is not complete. LET. The latest time by which an event can be achieved without affecting the total project time from start to finish. LFT. The latest possible finish time without changing the total task or float times. Logic diagram. A graphic representation of the activities in a project with clearly identified logical dependencies established. LRC. The linear responsibility chart, which displays a complete listing of key stages and/or activities with the names of the resource(s) that have been allocated responsibility for each as part of the plan. LST. The latest possible time an activity can start without affecting the total project time. Milestone. Another name for an event, but usually reserved for a signifi- cant or major event in the project. Often used for identifying key progress reporting points. Monitoring. The process of checking what is happening and collecting data on project progress. Multi-level planning. Planning the project at several levels of detail, start- ing with the key stages and then exploding each key stage to show all the associated activities. Where necessary, any activity is further exploded to show further detail of associated tasks at the next level down, and so on. Must date. A planned date when an activity or group of activities must be complete under all circumstances. Appendix 1 l 285 Opportunity. An idea for a potential programme or project that aligns with strategic needs. PERT diagram. The logic diagram in the PERT (Programme Evaluation Review Technique) project control system. Phase gate. A specific point in the life cycle when all work stops and progress to date is presented to the PST for approval. Approval at a gate allows work to proceed through to the next phase of the life cycle. Portfolio. The total active programme and project activity in an organization. Predecessor. The activity immediately prior to an event. Programme register. A sequential listing of all programmes and projects approved as ‘active’ by the PST. May also include opportunities for programmes and projects under investigation. Programme steering team (PST). A senior management committee, often made up of project sponsors who have the power to prioritize and steer projects in the direction necessary to meet corporate objectives. Project-approved budget. The budget approved at the conception of the project, based on outline plans only, with contingency included. Project file. A central file that must contain copies of all documentation, letters, faxes, etc relating to the project. It is the project archive and the basis for subsequent evaluation and continuous improvement activities. Project life cycle. A systems approach to a project in which the project is described as passing through four phases, from conception to termination. Project log book. A bound A4 book with numbered pages where the project leader records all events, action plans and project activities. It comprises a complete event record cross-referenced to the project file. On larger projects each team member should also maintain a project log book. Project operating budget. The budget derived at operating level after detailed planning to first or preferably the second level is completed. PST administrator. The person appointed by the PST to organize the PST meetings and programme portfolio documentation. Resource. Anything other than time that is needed for carrying out an activity but most commonly used to refer to people involved in the project. Resource levelling. Utilization of available float within a network to ensure that resources required are appreciably constant. Resource smoothing. The scheduling of activities within the limits of their total floats to minimize fluctuations in resource requirements. Risk. An event that has been identified as potentially threatening the project’s integrity if it actually happens. Risk log. A sequential listing of all risks identified throughout the project’s life and information about their ranking, probability and management. 286 l Appendix 1 Risk management form. A standard template recording risk data and the proposed actions to take when the risk occurs so as to minimize the damage to the project. Risk mitigation plan. A standard template recording risk data and the actions required to avoid a risk occurring – usually used for ‘unaccept- able’ or ‘high’ risks. Risk score. The product of probability and impact; used for ranking risks. Schedule. The project plan converted to ‘real time’ against a calendar by inserting realistic agreed time estimates and resource capacity factors into all the project activities. Schedule variance. The difference between the value of the work completed (BCWP) and the budgeted cost, from the operating budget, of the work planned to be completed at a particular point in the schedule. Schedule variance per cent. The schedule variance divided by the budgeted cost of the work scheduled to be complete (BCWS) at the date considered. Scope creep. Adding additional features and extras during the project work that are not recorded and approved using the change process. Many incur extra time and cost consequences. Single person-day. A method of estimating activity durations using 100 per cent of one individual’s capacity to carry out the work. It represents a full working day, but in estimating ignores holidays, etc. Soft project. A project where the objectives are only broadly stated and the resources needed are unknown and flexible, the scope left open inten- tionally and deadlines not defined clearly. Sponsor. The senior manager who takes ownership of the project on behalf of the organization. Stakeholder. Any individual who has an interest or stake in the project at any time during the project’s life cycle. Stand-alone project. A project that is independent of a programme. Sub-project. A significant part of a project that is treated as separate for management and control purposes, usually because of its size or loca- tion. A sub-project is always linked to a parent project. Successor. The activity immediately following an event. Task. A specific defined piece of work, usually carried out by one person in a finite measurable time. A sub-unit of a project activity. Time-limited scheduling. The scheduling of activities such that the speci- fied project time is not exceeded using resources to a predetermined pattern. Total float. The total spare time possessed by an activity beyond the esti- mated duration. Tracking. The process of taking progress information gathered in a control system and inserting this into the original plan to show the actual status, ie the compliance or deviation from the planned status of the project at that point in time. Appendix 1 l 287 Work breakdown structure. The diagrammatic presentation of all the key stages and their associated activities arranged in a hierarchical format, showing each level of planning. Work plan. A standard format form or chart for recording an agreed listing of the tasks to be carried out by an individual or department, complete with agreed start and finish times for each within the overall project schedule. 288 l Appendix 1 289 Appendix 2 Further reading Baker, Sunny and Baker, Tim (1998) The Complete Idiot’s Guide to Project Management, Alpha Books, New York Barker, Alan (1993) Making Meetings Work, The Industrial Society, London Burke, Rory (1993) Project Management Planning and Control, 2nd edition, John Wiley, Chichester Carter, Bruce, Hancock, Tony, Morin, Jean-Marc and Robins, M J (1994) Introducing Riskman Methodology, The Stationery Office, London Cleland, David I and King, William R (1988) Project Management Handbook, Van Nostrand Reinhold, New York Crawley, John (1992) Constructive Conflict Management, Nicholas Brealey, London Davenport, Jenny and Lipton, Gordon (1993) Communications for Managers, The Industrial Society, London Eales-White, Rupert (1992) The Power of Persuasion, Kogan Page, London Frame, Davidson J (1994) The New Project Management, Jossey-Bass, San Francisco Hall, Elaine M (1997) Managing Risk, Addison Wesley Longman, Boston, Massachusetts Hardingham, Alison and Royal, Jenny (1994) Pulling Together: Teamwork in practice, Institute of Personnel and Development, London Hurst, Bernice (1996) The Handbook of Communication Skills, 2nd edition, Kogan Page, London Kindler, Herbert S (1990) Risk Taking, Kogan Page, London Lockyer, Keith (1984) Critical Path Analysis and Other Project Network Techniques, Pitman, London PMI Standards Committee (1996) A Guide to the Project Management Body of Knowledge, Project Management Institute, Philadelphia Pokras, S (1989) Successful Problem Solving and Decision Making, Kogan Page, London Pritchard, Carl L (ed) (1997) Risk Management Concepts and Guidance, ESI International, Arlington, Virginia Rosenau, M D (1991) Successful Project Management, Van Nostrand Reinhold, New York Senge, P (1990) The Fifth Discipline, Doubleday, NewYork Stewart, Dorothy M (ed) (1990) Handbook of Management Skills, Gower, London Vincent, Geoff (1988) Taming Technology: How to Manage a Development Project, British Institute of Management, London Young, Trevor L (1993) Leading Projects, The Industrial Society, London Young, Trevor L (2000) Successful Project Management, Kogan Page, London SOME USEFUL WEBSITES All these sites give many links to other useful websites. Project Management Institute (USA) www.pmi.org Project Management Forum www.pmforum.org Association for Project Management (UK) www.apm.org.uk Australian Institute for Project Management www.aipm.com.au PMI Bookstore www.pmibookstore.org IT project management www.gantthead.com Project management training www.esi-europe.com Risk management software www.risk-management.org Programme management www.e-programme.com 290 l Appendix 2 [...]... functional manager 56 programme manager 55 project manager 56 PST administrator 54 sponsor 55 responsibility 59, 119, 157 allocating 132 guidelines for allocating, checklist for 133 of issue ownership 203 recording allocated 135 risk assessment 110 category 115 category matrix 116 log 105, 114, 124, 175, 197, 221 management 17, 105 management, benefits of 108 management, when necessary 108 management,... Index acceptance process 246 accountability 60, 122 for change decisions 184, 185 activity, concurrent 128 activity, critical 147 activity, series 128 ACWP 231 administrator, PST 42, 53, 81, 166, 239, 253, 286 appraisals, post -project 258 approval, project closure 252 project definition 120 project execution 239 project planning 162 assumptions 86, 142 authority 59 lack of 275 avoidance risks 113 BAC... critical 147 activity, series 128 baseline plan 185 baseline plan, checklist for 163 key stage owner 133 key stages 128, 129, 134, 140 leadership actions, checklist for 164 logic diagram 146, 149, 265 process flow diagram 165 task 128 portfolio management 17, 44 post -project appraisal 258 priority 28, 87 problems 274 customer-induced delays 279 delegation – empowerment and time management 276 disaster... 12, 33 of issues 203 of risks 120 performance, managing 66 managing, checklist for 67 PERT 14, 264 phase four 24, 242 approaching 238 phase gate one 48, 98 phase gate three 162, 179 phase gate zero 81 phase gates 26, 27 phase gates decisions 28, 29 intermediate 161 phase one 24, 87, 99 phase three 24, 190 l 293 phase two 24, 126 phase zero 24, 87 phases 24 planning 126 activity, concurrent 128 activity,... technical 257 executing 190 process flow diagram 240 financial case 86 fishbone diagram 216 float time 155 total 147, 192, 211 FTC 231 functional Manager 56 further reading 289 Gantt chart 149, 153, 169, 209, 210, 247, 264 key stage 153, 157, 169, 194, 210 showing current status 209 glossary of terms 283 growth, incremental 21 step change 22 how projects succeed 280 issue management 198 process flow diagram... 194, 225 status report 174, 176, 211, 220 duration 138 estimating the 139 dynamic action cycle 24 life cycle 23, 66 life cycle, managing 66 earned value analysis 230 environment, programme and project 1, 4 estimating 134, 143, 147 duration 138 evaluation 251 active 251 post -project 254 questions for active, checklist for 252 questions for post -project, checklist for 255 questions for technical, checklist... system, designing the, checklist for 194 system essential elements 193 core team 68, 87, 89, 101, 127 corrective action, taking 212 checklist for 214 cost 105, 228 control and fighting fires 237 control diagram 232, 233 control measures 231 earned value analysis 230 performance 230 and schedule performance chart 233, 234 292 l Index critical path 145, 147, 265 critical success factors 171 customer 43, 59,... definition leadership actions, checklist of 125 definition, approval of 120 definition, checklist for 122 definition, process flow diagram 124 deliverables 103 documentation 91 executing 190 file 92, 194, 221 how derived 21 key stages 128, 129, 134, 140 launch 166 launch, seeking approval to 162 launch baseline plan, checklist for 162 launch leadership actions, checklist for 189 launch meeting 185 launch... risk category 115 risk category matrix 116 risk log 114, 124, 175, 194, 197, 221 risk management 107, 110 risk management, benefits of 108 risk management, when necessary 108 risk management, why necessary 109 risk management flow diagram 121 risk management form 107, 118, 121, 124 risk mitigation plan 108, 116, 117, 123 risk monitoring 120 risk ownership 117 risk quantifying 115 risk response strategy... 194 work plans 166, 185 key stages 128, 129, 134, 140 splitting to improve project logic 130 kick-off meeting 88 kick-off meeting project, checklist for 89 lack of authority 279 lag 148 launching a project 166 seeking approval for 162 process flow diagram 188 lead 148 leadership 63 actions during definition, checklist for 125 actions during planning, checklist for 164 Index actions during project closure, . presentation of all the key stages and their associated activities arranged in a hierarchical format, showing each level of planning. Work plan. A standard format form or chart for recording an agreed. presented to the PST for approval. Approval at a gate allows work to proceed through to the next phase of the life cycle. Portfolio. The total active programme and project activity in an organization. Predecessor instant in time, to identify variances and take corrective action. Cost control diagram. A graphical representation of the actual and budgeted costs of the work actually performed against the