Project management techniques and applications

Project Management

Project Information, History, Intent, and Life Cycle

Gray and Larson, (2008) define project as "a temporary endeavor undertaken to create a unique product, service, or result." (p 5). Essential feature of a project is that it has a defined beginning and end often subject to time or fund constraint to achieve stakeholder's goals and objectives. Gray and Larson (2008) differentiate between project and program. "A program is a group of related projects designed to accomplish a common goal over an extended period of time." (Gray and Larson, 2008 p 6). Major goal of any project is to satisfy customers' objectives, and features of a project are they:

have established objectives.

Have a life span definitely a start and the end.

Usually involve several professionals and departments.

Have specific costs, time and performance requirements.

However, a project is different from program where workers are performing repetitive operations daily within an organization. Contrarily, a project has a defined start and end. For example, an organization could assign projects to an IT engineers to design different database to clients. Moreover, a project has a set of routing and procedures making it very unique. (Martin, and Tate,2004).

Typically, a project manager controls each project within a program and a major difference between a project and program is the time span and scale. For example, a healthcare organization can have a health program to cure cancer. The cancer program will involve number of projects that will be extended over time, and the organization will derive benefits from the program by managing the project individually. While each project has its own scope and goal, however, 'Program goals are closely related to broad strategic organization goals." (Gray and Larson, 2008 p 7).

Project History

Since the creation of mankind, man has implemented series of projects. The cavemen were able to achieve their project objectives by hunting animals in group to feed themselves and other member of the families. However, the history of mega projects started in the last 4,500 years ago, and the pyramid of Giza in Egypt is an example of a mega project that man has successfully completed. Other mega projects completed several thousand of years back are Gothic Cathedrals of Europe, Great Wall of China, and Transcontinental Railway. Typically, all these projects have the same features of modern projects; these projects had a project charter, project sponsor and project justification. Moreover, these projects followed the modern project management process such as planning, monitoring, controlling, executing and closing. Despite the project management process integrated in the projects, however, the project stakeholders did not use professional project managers to implement the projects. Until 1900, engineers, architects and master builders implemented most small and large civil engineering projects. Between 1861 and 1919, Henry Gantt introduced planning and control techniques in the application of engineering, civil construction and other heavy projects. Henry Gantt is famous for its application of Gantt chart in the project management. Moreover, Henri Fayol introduced five management functions that assisted in enhancing a greater understanding of project management. Frederick Taylor also develops scientific management, and tools such as resource allocations and WBS (work breakdown structure), which have become modern project management tools. However, after the Second World War, the project stakeholders started systematically integrating the project management concepts and tools in many complex engineering projects.

Starting from 1950s, stakeholders started integrating project management tools in the core of engineering projects, and project management became identified as a distinct discipline and integrated in the engineering model. For example, CMP (Critical Path Method) was developed to manage plant and maintenance projects. Moreover, United States used PERT (Program Evaluation and Review Technique) for the Polaris missile submarine project.

Life Cycle

One of the best ways to illustrate project is to use a project life cycle. A project lifecycle is a series of phase from the project's initiation to closure, and management involved in the project determines number of the project's phases. The project manager can break the project's phases into specific milestones with specific scope of work. Thus, the project lifecycle provides the strategy to manage a project. (Project Management Institute, 2013).

Larson and Gray (2011) argue that project managers can identify project life cycle as the cornerstone for managing successful project. According to Larson, et al. (2011), project life cycle passes through series of sequential stages that include:

Defining a project, planning, executing, and Delivering.

At defining stage, the project stakeholders define specification of the project as well as establishing the project objectives. At this stage, the project manager forms the project team and assigns responsibilities to each project team. At planning stage, the project stakeholders determine the scope of the project and project schedules. At this stage, the project manager will determine the project's budget, quality of the project and people to benefit from the project.

The executing stage of the project involves measure to control costs and specifications. This stage, the stakeholders will also be involved in forecasting measures to control costs and necessary changes for the project's implementation. The final stage is the closing stage that involves delivering the project to the project owners. At this stage, the project team will release the project materials and equipment.

"Project definition: WBS, Responsibility Matrix and Communication Plan"

A project is a temporary activity to create a unique product or service. The temporary nature of a project shows that a project has definite start and end, and the end is reached when the project stakeholders have achieved their objectives. The customer or sponsor may decide to terminate a project if the project is no more needed. However, the concept temporary in the project definition does not mean that the project's duration is short, major objective of a project is to create lasting outcomes. For example, the national monument project is to deliver results that will last for centuries. Moreover, a project can focus on the improvement of a product using a Six-Sigma technique to reduce product defects. A project can also involve delivering a service. For example, a research project is an example of a service project focusing on delivering knowledge outcome. (Project Management Institute, 2013).

However, WBS (work breakdown structure) is a critical project tool that assists in successful completion of a project and a WBS is the process of dividing a project tasks into a manageable form. Key benefits of WBS are that it assists the stakeholders to have a structural vision of project activities to be delivered. The WBS is also defined as a hierarchical decomposition of the total work to be accomplished by the project team. (The Times 101-2014).Typically, the WBS assists project managers to manage all products to be delivered based on the project's specifications. One of the benefits of WBS is that it assists the project manager to evaluate time, costs, as well as technical performances of all tasks to be delivered within the project lifecycle. (Gray and Larson, 2008). Since the project manager assigns costs and time to each task, the strategy will assist in arriving at accurate cost estimate for a project. With the information, the project manager will be able to track costs and project's performances.

Responsibility Matrix

However, Gray and Larson, (2008) point that elaborate WBS does not necessarily warrant the scope, and size of a project, in order words, "a responsibility matrix is a grid that shows the project resources assigned to each work package. It is used to illustrate the connections between work packages or activities and project team members" (Project Management Institute, 2013 p 262). The RM (responsibility matrix) is a tool that a project manager use for a project, the RM summarizes the tasks that the project manager will accomplish and identify the project team to carry out the tasks. In order words, RM chart reveals all the project activities as well as participants responsible to carry out the tasks. As being revealed in Fig l, the project manager can use responsibility matrix to list all the tasks to be carried out, and the project team to carry out specific tasks.

Fig 1: Market Research Project Responsibility Matrix

Communication Plan

Larson et al. (2011) identify project communication plan as a critical tool to coordinate project team and tracking project schedules. "The purpose of a project communication plan is to express what, who, how, and when information will be transmitted to project stakeholders so schedules, issues, and action items can be tracked." (Larson et al. 2011 p 19). Typically, the communication plan maps how the information flow becomes available to all project team. A robust communication plan assists in mitigating a project failure because it assists team members, customers and other stakeholders to carry out their jobs effectively. Essentially, "the communication plan is usually created by the project manager and/or the project team in the early stage of project planning." (Larson et al. 2011 p 19).Important benefit of communication plan is that it assists in tracking project's issues, schedules and action items, and a project communication plan assists in addressing the following core questions:

What type of information to be collected and when?

Who is going receive the information?

What methods to be used in gathering and storing information?

What are the limits for accessing certain types of information?

When will the stakeholders communicate the information?

How will the information be communicated?

Fig 2 reveals the sample communication plan that reveal the target audience, provider and method of communication.

Fig 2: Sample Communication Plan

"Time, Cost and Quality Expectations, use of project network"

"Cost, time, and budget estimates are the lifeline for control; they serve as the standard for comparison of actual and plan throughout the life of the project.

Project status reports depend on reliable estimates as the major input for measuring variances and taking corrective action." (Larson & Gray 2011 p 128)

Project estimate is a yardstick for cost control, project managers often use cost and time estimate for forecasting. Larson & Gray (2011) defines estimates as the process where the project stakeholders forecast costs and time that can be used to complete a project. Types of project cost estimates are:

top-down and Bottom-up approach.

The top management performs a top-down approach while the lower level workers estimates bottom-up approach. While accurate cost estimates assists in eliminating cost escalations, however, inaccurate cost estimate can lead to cost escalation. One of the benefits of cost and time estimate is that it assists the project stakeholders to compare the estimated cost and time to actual costs. However, experience of a project manager can assist in estimating cost and time with 95% accuracy. Larson & Gray (2011).

Typically, the project manager can use range estimate which is a bottom-up approach to estimate project's time and cost. The table 1 reveals PERT estimating risks to a project. (Larson & Gray 2011)

Table 1: PERT Estimating Risks

Low

Average

High

Range

WBS

Estimate

Estimate

Estimate

of ID

Description

Days

Days

Days

Days

Risk Level

Approval

1.0

1.0

3.0

2.0

Low

Designing of Package

4.0

7.0

12.0

8.0

Medium

Potential Customer ID

14.0

21.0

35.0

21.0

High

Design of Logo Bottle

5.0

7.0

10.0

5.0

Low

Contract space of kiosk

8.0

10.0

15.0

7.0

Medium

Construct of kiosk

4.0

4.0

8.0

4.0

Medium

Fair Designed of Brochure

6.0

7.0

12.0

6.0

High

Advertising Trade of Journal

10.0

12.0

15.0

5.0

Medium

Production test

10.0

14.0

20.0

10.0

High

Production -to-inventory

5.0

5.0

10.0

5.0

High

Scanner hook

1.0

2.0

3.0

2.0

Low

Video hookup

2.0

2.0

4.0

2.0

Medium

Event rehearsal

2.0

2.0

5.0

3.0

High

Source: (Larson, & Gray, 2011, p 139).

Project quality expectations are the situation where all the project requirements are met. However, stakeholder can reject a project that fails to meet the quality requirements. Effective quality management plan is very critical to achieve quality expectation, and major strategies that the stakeholders can employ to arrive at target project's quality are to use the following techniques:

Quality Management Plan

Quality Assurance Technique

Quality Control

Project management plan

1 Stakeholder register

2 Requirements documentation Risk register

3 Organizational process

.2 Tools & Techniques

1 Cost-benefit analysis

2 Cost of quality

3. Benchmarking

4. Statistical sampling

.5 Meetings

6 Outputs

Quality management plan

1 Quality metrics

2 Quality checklists

Project documents updates

1 Inputs

2.Quality metrics

3. Quality control

4. Project documents

2 Tools & Techniques

1 Quality audits

2 Process analysis

Inputs

1 Quality metrics

2.Project management plan

3.Quality checklists

4. Work performance data

5. Deliverables

6. Project documents

2 Tools & Techniques

1. Statistical sampling

2. Outputs

3.Inspection

4.Quality control and measurements

5.Validated changes

6. Change requests

7.Validated deliverables

8.Project documents updates

Larson & Gray (2011) define a project network as a graphical representation that delivers logical sequence of activities and a project path. Typically, the project network assists in estimating time to complete a project, however, a network diagram is an important tool to develop network planning using linear pattern. The network diagram should have a network path connecting all network paths together. Critical path revealing the longest duration while activity which reveals an element that consumes time.

"Identification of project stakeholders and their concerns"

A stakeholder is an individual or group of individual or organizations that may be affected by the activity, decision as well as outcome of a project. However, Larson & Gray (2011) define project stakeholders as individuals consisting of all project team and other entities that may be interested in the project. The role of a project manager is to manage all the stakeholders to achieve the project objectives. Stakeholders have varying degree of responsibilities; their participations in the project can vary "over the course of project lifecycle." (Project Management Institute, 2013 p 31). "Identification of stakeholder serves as a continuous process throughout project life cycle." (Project Management Institute, 2013 p 31). Understanding relative degree of stakeholders' influence on a project will enhance successful project's completion. Example of project sponsors is as follows:

Sponsor: A sponsor is an individual or group of people providing support and resources for the project, which is generally accountable to a project success. A project sponsor is very important to a project. From the project's initiation to the project completion, "the sponsor promotes the project" (Project Management Institute, 2013 p 32) and gather support to enhance the project's benefits.

Customers: Customers are the individuals or organizations responsible to approve a project.

Sellers: Sellers are also part of the project stakeholder and may be suppliers, vendors or contractors. These stakeholders are external to the company and usually enter into contractual agreement to deliver necessary components or services.

Functional managers: These stakeholders play managerial roles within the functional business areas that include accounting, finance, human resources, or procurement. Generally, they are permanent staff carrying out functional area of a business.

Additional stakeholders: Other stakeholders include financial institutions, procurement entities, government regulators, and consultants. These stakeholders generally have a financial interest in an ongoing project, and they may contribute their inputs to the project outcomes.

Project Team development

Project team is the project manager and other group of individual performing the work to achieve project objectives. Larson & Gray (2011) identifies five-stage project team development model that includes:

Forming.

Storming

Norming

Performing

Adjourning.

During forming stage, the team member gets acquainted with one another and understands the project scope. At this stage, they start establishing ground rules and acceptance behaviors.

Storming: At the storming stage, the team member is susceptive to conflicts concerning who will control the group. However, the team accepts the project leaders after the conflicts are resolved.

Norming stage is the time team members develop a close relationship and demonstrates cohesiveness. At this stage, the group solidifies the strategy to work together.

At performing stage, the operating structure of the group becomes fully functional. The group gets to know one another and works together to accomplish the project goals. Adjourning is the last stage of the team development where the team focuses on a project's completion. The model has several implications because it provides the framework for assisting the group to understand the project's development.

"Performance measurement and control"

Performance measurement is the project evaluation process to ensure that a project meets the stakeholders' objectives. One of the strategies to set up performance measurement is to set up a control to compare the actual performance against plan performance in order to identify deviation in a project. The steps in measuring a project performance is:

To set a baseline plan.

To set measure for performance and progress.

To compare plan against actual.

To take action.

Periodic monitoring is very critical in the project lifecycle to detect deviations in the project, which assists comparing the actual against the plan and make necessary corrections. Major way to implement control is to identify the negative variance and make a corrective action. The Gantt chart is a tool to monitor the project performance serving as "the baseline to compare against actual performance." (Larson & Gray 2011 p 461).For example, the project manager can measure the project performance by comparing the actual project's cost against the plan costs. Moreover, the project stakeholder can use a variance analysis to compare earned value against expected project value and "compare earned value with the actual costs." (Larson & Gray 2011 p 461). Illustration in Fig 3 reveals the variance between earned value and actual costs.

Fig 3: Variance between earned value and actual costs.

Application of key Concepts to a Real World Situation

All the concepts discussed above are very applicable in a real world situation. For example, the project history can assist the project manager to understand the strategies ancient projects are implemented. As being discussed in the previous section, the mega project completed several thousands years use the same project management cost to complete the project. For example, the Egyptians integrated the project management concepts to complete the Pyramid of Egypt. A project manager can employ the strategy used to complete the ancient projects to complete the modern project. Using the project information that has been successfully completed in the past can assist the project manager to understand the strategy to complete the modern projects.