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        英國論文-英國桑德蘭大學會計與財務管理專業本科作業寫作需求-Accounting and Financial Manag

        時間:2011-07-04 10:08:24 來源:www.equineteleseminar.net 作者:英國論文網 點擊聯系客服: 客服:Damien

        英國論文網提供英國桑德蘭大學會計與財務管理專業本科作業寫作University of Sunderland
        BA (Honours) Business Management
        BA (Honours) Accounting and Financial Management
        SIM335
        Managing Projects
        Version 2.0
        Published by
        The University of Sunderland
        The publisher endeavours to ensure that all its materials are free from bias or discrimination on grounds of religious or political belief, gender, race or physical ability. These course materials areproduced from paper derived from sustainable forests where thereplacement rate exceeds consumption.
        The copying, storage in any retrieval system, transmission,reproduction in any form or resale of the course materials or anypart thereof withoutthe prior written permission of the Universityof Sunderland is an infringement of copyright and will result inlegal proceedings.
        © University of Sunderland 2005
        Every effort has been made to trace all copyright owners ofmaterial used in this module but if any have been inadvertently overlooked, the University of Sunderland will be pleased to makethe necessary arrangement at the first opportunity.
        These materials have been produced by the University ofSunderland Business School in conjunction with Resource
        Development International.
        Managing Projects
        Contents
        How to use this workbook
        Introduction
        Unit 1
        Project Concepts
        Introduction 1
        What is Project Management? 2
        Types of project 5
        Examples of Projects 7
        The Role of the Project Manager and the Team 8
        Summary 12
        Unit 1 References 13
        Unit 2
        Planning and Monitoring Tools and Techniques
        Introduction 15
        Project Feasibility 16
        Project Life Cycle 20
        Project Objectives 24
        Planning the Project 27
        Sequencing Activities 32
        PCs and Project Management Software 56
        Summary 58
        Unit 2 References 63
        Unit 3
        The Management of Project Cost And Risk
        Introduction 65
        Financial Project Appraisal 65
        Payback 66
        Net Present Value (NPV) 68
        Estimating Methods 70
        Putting Together the Detailed Project Budget 72
        Common Causes of Cost Problems 75
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        Project Accounting 76
        Managing Risks 80
        Summary 86
        Unit 3 References 87
        Unit 4
        Project Team Structuring
        Introduction 89
        Developing Project Teams 90
        Belbin’s Team Roles 98
        Effective and Ineffective Teams 99
        Multi-disciplinary Teams 100
        Project Leadership 101
        Motivation 106
        The Project Manager’s Role 110
        Summary 111
        Unit 4 References 113
        Unit 5
        Project Control
        Introduction 115
        Scope and Quality Control 118#p#分頁標題#e#
        Managing: The Start of the Project 125
        Controlling Project Objectives 127
        Resource Control 128
        Methods to Control Resource and Project Objectives 129
        Controlling the Changes in the Project 136
        Project Evaluations 137
        Closing the Project 138
        Summary 142
        Unit 5 References 157
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        How to use this workbook
        This workbook has been designed to provide you with the coursematerial necessary to complete Management of Projects by distancelearning. At various stages throughout the module you will encountericons as outlined below which indicate what you are required to do tohelp you learn.
        This Activity icon refers to an activity where you are required to undertake aspecific task. These could include reading, questioning, writing, research,
        analysing, evaluating, etc.
        This Activity Feedback icon is used to provide you with the informationrequired to confirm and reinforce the learning outcomes of the activity.
        This icon shows where the Virtual Campus could be useful as a medium fordiscussion on the relevant topic.
        It is important that you utilise these icons as together they will provideyou with the underpinning knowledge required to understandconcepts and theories and apply them to the business and managementenvironment. Try to use your own background knowledge whencompleting the activities and draw the best ideas and solutions you canfrom your work experience. If possible, discuss your ideas with otherstudents or your colleagues? this will make learning much morestimulating. Remember, if in doubt, or you need answers to anyquestions about this workbook or how to study, ask your tutor.
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        Managing Projects
        Introduction
        The module will define the nature of projects and their management.
        Various aspects will be considered including financial control andmanagement of risk, human resource elements (building and leading a
        multi disciplinary team) and the control of time. The module willexamine the integration of time, cost and quality aspects of projectsthrough the application of relevant tools and techniques.
        LEARNING OUTCOMES
        Upon successful completion of this module, you will be able to;
        1. Evaluate and apply a range of skills and techniques associated with themanagement of projects.
        2. Demonstrate capability to evaluate projects from a financial, humanresource and time related perspective.
        3. Appreciate the requirements for control and the application of controlmechanisms.
        4. Evaluate the relationship between time, cost and quality andunderstand the alternate approaches available for managing them.Skills
        Demonstrate critical thinking and analysis skills:
        a) Ability to apply and evaluate tools and techniques associatedwith the management of projects.
        b) Conduct reporting and diagnostic skills.
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        Amplified content:
        1. Project Concepts
        Introduction to / overview of the management of projects.
        2. Planning and Monitoring Tools and Techniques
        Processes and tools for project plan development.
        Resource planning.
        Techniques and systems for project plan execution.
        Project quality assurance systems.
        Planning for the coordination
        of changes during projects.
        3. The Management of Project Cost and Risk
        The analysis and allocation of risk
        The preparation of formal project proposals
        Management of project cash flows
        4. Project Team Structuring
        a) Choosing suitable project team structures.
        b) Project human resource management.
        5. Project Control
        The planning and control cycle.
        Application of tools and techniques for scheduling projectactivities, monitoring progress, managing variations andslippage, updating and controlling project time and quality.Management of project cash flows and incentives.
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        Unit 1
        Project Concepts
        LEARNING OUTCOMES
        Following the completion of this unit you should be able to:
        · Understand the factors that make up a project in today’s businessenvironment.
        · Be able to analyse and understand the different types of project.
        · Examine and understand some of the general concepts involved inproject management and be able to explain the role of the projectmanager, and the skills needed to practise project management.
        Introduction
        This module introduces the management of projects. Traditionally themanagement of projects was considered more of an art than science, but
        with the growing number of project management institutions,associations and academic establishments, project management has
        become more of a science, and a discipline, as accepted practices arecaptured and formalised in the global body of knowledge.
        This unit will consider why project management has become importantfor organisations and explain what constitutes a project in today’sbusiness world.
        A brief history of project management is reviewed and how companiesuse project management to improve company performance andintroduce new products and processes.Some general concepts are introduced and the role of the projectmanager is also considered, as well as the skills needed for projectmanagement success.

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        What is Project Management?
        Project management has been around since the beginning of time. Thepyramids in Egypt stand to day because of sound project management
        principles (although at the time they did not realise they were practisingsound project principles!). But although there have been excellentproject managers over the years, project management was notrecognized as a formal management concept until the 1950s. This firstsection looks at what project management is and how companies arebeing forced to look to project management techniques to improvecompany performance. It also looks at the role of project managers, abrief history of project management and the role of a project’s keystakeholders.#p#分頁標題#e#
        It was high profile aerospace projects, such as Polaris, NASA and otherUS Department of Defence projects that led to the establishment of theproject management standards that they expected their contractors tofollow. Polaris was the first British project on which contractors wererequired contractually to use advanced project management systems.
        The construction industry started to see the benefits of projectmanagement and started to adopt the new techniques. The 1970s and1980s brought more practitioners on project management leading to thedevelopment of theories, methods and standards.
        Throughout the 1970s project management continued to grow anddevelop into a multidisciplined
        profession with its distinctive tools andtechniques. The economic pressures during this decade, OPEC oilembargoes and the rise of environmental pressure groups had causedmany projects to be constrained or delayed. This in turn led to a periodof refinement of project management tools and techniques. More hightechnology companies outside the defence and construction industriesstarted to use project management systems effectively.
        In the 1980s project management tools and techniques were integratedinto accepted management practices. Such techniques were known asProgram Evaluation and Review Technique (PERT) and the Critical
        Path Method (CPM). We will discussing these techniques in moredetails in later sections.
        Other issues taken on board at this time included the integration of time,cost and quality. These were beginning to be seen as critical by
        management to the success of projects.
        In the 1990s the globalisation of world trade and competition from theFar East encouraged leaner, flatter and more flexible organisational
        structures, together with more efficient systems. Companies found thatby using a managementbyprojectapproach they could assign work tosmall project teams, which were able to respond to innovation and newideas and keep the culture of the entrepreneurial company alive.2
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        In the 1990s large scales reengineering
        and TQM processes needed a
        direction for the implementation of these new projects (many of theminhouse),and managers turned to project management for direction intracking such initiatives. Project management is a structured approachto planning and controlling projects. It is a set of principles, methodsand techniques that managers use to effectively plan and control projectwork. We will look at all these principles and techniques in detail in thecoming chapters.
        Business Trends
        It is important to note that in today’s business world projectmanagement is not just about managing a new building or managing acivil engineering project.
        In today’s business world there have been several trends that have madecompanies concentrate more on project management concepts, notably:
        · Today the focus is on high quality, quick to market andfirst class customer satisfaction. During the last 15 yearsthere has been a shift from mass production to customproduction of goods and services. To respond to thismanagers have turned to project management to ensurehighly responsive management style. Companies arechanging from hierarchical management to projectmanagement. Organizational charts are changing fromvertical structures to teamcentredstructures.#p#分頁標題#e#
        · Jobs that do the same tasks every day are disappearing.Middle management are also disappearing. The newfocus is on projects and teams assigned to specific tasksor problems. Teams might be set up to launch a newproject or reengineera process. Projects are conceived,staffed up, implemented and then shut down.
        · Companies offer less job security than before. Theyoutsource noncoreactivities. People define themselves
        less by the companies they work for, more by theirprofession. Pay is determined by skill level and the
        marketability of the person’s services rather than bymanagement hierarchy.
        Richman (2002)
        The 1990s also saw the increasing deregulation, reduced tariff barriersand, more importantly, expanding IT facilities and communication(s)through the Internet.During the 1960s and 1970s the manual tasks and concepts thatpredominate throughout project management (network diagrams, barcharts, etc) were computerised using mainframe computers. However it
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        was the introduction of the PC that led to the expansion and spread of
        project management software.
        As Burke notes:
        The introduction of the PC in the late seventies (Apple 11)
        and the IBM PC (1981) in the early eighties with
        accompanying business software encouraged the growth of
        project planning software and the use of project
        management techniques
        Burke (2003)
        What is a Project?
        This section defines what a project is and gives several definitions of
        projects. There is no one definition of a project. However most experts
        agree that a project is a unique thing with a start and a finish. Most
        experts also agree what a project is not: routine work, every day tasks
        and the normal day to day activities of a company or person.
        The following list is not exhaustive, but it will help clarify exactly what a
        project is:
        Buchaanan and Body (1992), defined a project as:
        A unique venture with a beginning and an end? conducted
        by people to meet established goals, schedule and quality.
        Turner (1993), described a project as
        An endeavour in which human (or machine), material and
        financial resources are organised in a novel way, to
        undertake a unique scope of work, of given specification,
        within constraints of cost and time, so as to deliver
        beneficial change defined by quantitative and qualitative
        objectives.
        Wilson (2002) described a project as:
        Any new work if it lasts for a limited period, involves
        different groups of workers, and has penalties for late
        completion. The project manager is responsible for first
        planning, then controlling the allocation of time, money,
        people and other resources.
        The British Standards Institution defined a project as:
        A unique set of coordinated activities, with a definite start#p#分頁標題#e#
        and finishing point, undertaken by an individual or
        organization to meet specific objectives within defined,
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        scheduled cost and performance parameters. (BS
        60791,200:
        2).
        Another way of looking at a project is as:
        · An event or thing that with a start and a finish and clear
        objectives covering time, cost and quality.
        · The most efficient way of introducing changes.
        · Defining what has to be done in terms of time, cost and
        quality.
        · Using a plan to do these, and working to this plan,
        ensuring that progress is maintained.
        · Using appropriate project management techniques to
        plan, monitor and maintain progress.
        · Employing persons skilled in project management
        including a project manager who is responsible for
        introducing change and its successful accomplishment.
        Types of project
        Projects are usually categorized into one of three types:
        · Change driven: the need to change operations to matchthe environment.
        · Market driven: producing a new product in response tomarket needs. For example, BMW uses projectmanagement techniques to deliver its new models.
        · Crisis driven: Usually in response to an urgent situation.
        A pharmaceutical company may start a project to managethe recallof a defective product, and introduce thereplacement and the following public relations campaign.Sometimes a number of related projects are done together. This isusually called a programme. Programme management is often a verylarge project that will be broken down into a number of smaller projects.
        As Field and Keller highlight:“Sometimes the work needed to achieve a majororganisational objective will be far greater than can easily beorganized and carried out in a single project. This maymean that the organisation will undertake a programmethat consists of a number of interrelated projects“Field and Keller (1998)
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        Another example from Field and Keller puts programme managementin perspective:
        “A good example of a programme of work is thedevelopment of fixedwing
        vertical takeoffand landing jet
        aircraft. The result was the successful Harrier ‘jump jet’, butthe programme began about two decades earlier, with aproject exploring the control of vertical takeoffand landing
        in a testharnessreferred to lovingly as the ‘Flying
        Bedstead’. Later projects that grew out of the Flying
        Bedstead explored what was required to allow a fixedwingaircraft hovering, lifting or descending vertically to changeto travelling forward horizontally. Over the years thetechnology, techniques and design were refined until it waspossible to build and test a prototype aircraft, and finally toannounce the design, take orders and build the Harrier.Each phase of this programme of development contained#p#分頁標題#e#
        one or more projects which had proper schedules andbudgets, while the overall programme tended to ’develop’as projects successfully produced answers to key questionsin the effort to find out whether such an aircraft wasfeasible, and if it was, what design parameters werenecessary for it to work satisfactorily.Suppose that one of the early exploratory projects indeveloping the Harrier had shown that the overall objective
        – a fixedwing
        vertical takeoffand landing jet aircraft – was
        unfeasible for some reason, such as the likely cost of thefinal product far exceeding what the market could afford to
        pay. When this becomes known, management can cease
        continuing this development and use the financial and otherresources freed thereby to do other things of importance tothe organisation.
        There are other reasons for breaking up a large project orobjective into a programme of smaller ones. One reasonmight be that an appraisal of the financial situation in anorganisation will show that even if the whole of a large
        project cannot be achieved at once, benefit can be gained bytaking a phased approach to the work. A smaller project,which can quickly achieve part of the objective, may beworth doing now, while further work is delayed until the
        financial situation improves. It is also possible that anorganisation will wish to gain experience with a particular
        part before proceeding with the rest, or feel it desirable tominimize the inevitable disruption to working that thechange inherent in a project always brings with it.”Field and Keller (1998)
        Successful projects have clear deliverables and objectives from the start?they also have time, cost and quality objectives. Projects must also meetthe customer’s requirement.
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        Examples of Projects
        To understand this more fully let’s look at some examples of projects:
        · The research and development department of apharmaceutical company bringing new drugs to marketwill use project management techniques.
        · The marketing department of a household productscompany will use project management to help withmarket research, arranging promotional events and pressreleases.
        · A telecommunications company wishes to improve itsCustomer Services by rationalising its customer repair
        and maintenance offices by creating a more flexiblestructure able to cope with future growth, and move toEnquiry Desks dealing with all customer needs.
        · A research and development department in a chemicalfirm may be asked to devote time to exploring thepossibilities of developing new products using a newpolymer.
        The last example was from Field and Keller (section 1.1). Look at theother examples in Field and Keller to get a more thoroughunderstanding of the different types of projects.By now you will be aware of the need for projects to be managed by aproject manager, but who else is important in making projects gosmoothly? Who actually owns the project when it is completed?Field and Keller define six key people who are critical to the success ofall projects: Sponsor, Champion, Client, Customer, Owner andStakeholder. You will come across these terms as we progress throughthe module. They are defined as follows:#p#分頁標題#e#
        · Sponsor: The person who ensures that the project issuccessful at the company level.
        · Champion: The chief promoter of the project.
        · Client: The person who pays for contractual services. Forintercompanyprojects, the contract may be an informalone.
        · Customer: Very similar to the client? could be the personwho buys or pays for the projects, but more normally it is
        the person whom one is concerned with.
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        · Owner: Again very similar to client and customer. Think
        of it more in the sense of someone with a strong
        attachment to the project.
        · Stakeholder: Everyone who has an interest in the project
        success.
        ACTIVITY
        Look at Activity 1.1 in Field and Keller. Note down answers to the questionsthey outline. If you have not been involved in any projects at work think of apersonal/home project that you have been involved with.
        ACTIVITY FEEDBACK
        Refer to Field and Keller for activity feedback
        READING ACTIVITY
        Read section 1.1 of Field and Keller.
        The Role of the Project Manager and theTeam
        This section looks at the role played by project managers and the teamhelping him achieve his goals. We look at the skills needed to manage
        projects successfully and the essential skills project managers need to
        operate successfully.
        The project manager is the person assigned to manage a specific projectand is expected to meet the approved objectives of a project, includingproject scope, budget and schedule.
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        The project manger leads the project and provides vision, direction andencouragement. The project manager takes lead in project planning to
        determine the schedule and budgets necessary to meet the projectobjectives. The project manager is responsible for delivering the projectonce the project has been approved by senior management.
        The PM is responsible for the project support team. On small projectspeople and resources are not normally assigned directly to the project
        manager. People in other departments work on the project, and for theproject, but usually stay in their functional department reporting to
        their normal manager. On large projects a dedicated team will beassigned to the project, with everyone reporting to the project manager,or to functional managers, who in turn report to the project manager.
        ACTIVITY
        What do you consider to be the basic skills required for successful projects and
        why do you think these are important ?
        ACTIVITY FEEDBACK
        Please refer to the text below.
        Project Management Skills
        What skills does a project manager need? Skills of flexibility,
        resourcefulness, ability to negotiate, personal drive and a large measureof common sense. On top of these a project manger needs skills thatdirectly relate to managing and delivering the project. These skills (asdefined by Richman, 2002) which we shall call basic skills, are listedbelow.#p#分頁標題#e#
        Basic Project Management Skills
        · People skills.
        · Project management skills.
        · Technical skills.
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        · Integration Skills.
        People skills: the project manager needs to be an expert atcommunication. He also needs to be able to manage change and conflict,as well as motivate others to achieve project goals. He also needs tounderstand how to use authority and persuasive skills. Authority canbe defined as the ability to get another person to accept responsibilityand produce the desired result. Persuasion is the ability to convinceanother person to accept your values and take on responsibility.Project management skills: these skills include being able to estimatecosts and prepare budget plans, to be able to analyse reports, conductproject audits and analyse progress information. Other skills includebeing able to plan and execute a project.Knowledge of the organisation: the project manager will need tounderstand he organisation inside out. He will need to negotiate withmany people inside the organisation and he will need to understantheir needs, personalities and desires.
        The more he knows about the organisation the more he will be able tonegotiate around problems and unforeseen challenges that crop up andresolve them successfully.
        Technical skills: Project managers need to have skills in the technicalarea of the project. The greater the technical knowledge the greater thechance of success in the project. The project manager is also responsiblefor the integration phase of the project? this is where technicalexperience is essential.
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        Project management skills
        People skills
        Integration skills
        Technical skills
        Knowledge of organisation
        Figure 1.1 Diagram of Basic Skills (Taken from Richman 2002)
        Integration skills: The project manager might have to understand
        technical drawing relating to a building? he might also have to
        understand functional drawings from a civil engineer and coordinate
        various other factors relating to the project. All these things are
        integration issues that need to be properly coordinated.
        Other skills that are essential for the project manager are the skills of
        accountability, authority and responsibility. These are skills that we
        tend to assume that all managers have to varying degrees. However,
        with project managers it is very important that these skills are
        understood and kept in balance.
        Responsibility is having agreement on achieving the desired result. To
        put this context, when a project manager passes part of the
        responsibility for completing a task to others the project manager
        retains full responsibility for the final outcome. In this sense
        responsibility is all about trust.#p#分頁標題#e#
        Accountability is very similar to responsibility in the project
        management context. For example, when a project manger assigns
        responsibility to a contractor for decorating the office the manger holds
        the contractor accountable for all the work. This would include work
        quality, schedule performance and budget targets. Good performance
        depends on sound accountability. Good accountability makes good
        performance visible.
        Authority is the power given to a person to complete a given task.
        Authority must match the responsibility assigned .The key to all these
        skills is giving each of them to the project team member in the right
        balance. For these to work properly companies usually write
        procedures that define how responsibility and authority are assigned to
        the project manger and team.
        No matter how well a project manager executes the project there are
        bound to be problems. Project managers should be able to demonstrate
        experience, technical skills and imagination to overcome the problems
        so they do not delay the project.
        The best project manager is both a specialist and a generalist. He
        succeeds because of the way he understands the requirements,
        operations and problems of clients and the project team.
        As Field and Keller note:
        “A project manager’s key role is to ensure that the team
        succeeds, and since projects are by their very nature
        interdisciplinary and cross many organisational lines,
        routine does not exist and choices have to be made
        frequently and quickly.”
        Field and Keller (1998)
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        Role of Team Members
        It is vital that for each project to identify all the team members and
        clearly define their roles and responsibilities. Team members can have
        various roles? roles such as engineers, technicians, planners or software
        specialists. Just as each project is unique so are the roles of the people
        performing the work. We will look at team dynamics in more detail in a
        later unit.
        Summary
        Today project management has emerged as a leading solution in
        business operations. Large and small companies realise that a
        structured approach to controlling and planning projects is the key
        approach to success.
        We have reviewed several definitions of projects. Most experts agree
        that projects have the following: an event or thing that has a start and a
        finish and clear objectives covering time, cost and quality.
        Some projects have a short life span, perhaps a few months, others could
        continue for years. Multiple projects are usually grouped together to
        form a programme of work.
        Several examples of projects were given. You should all be aware that
        projects are not just construction type projects, but cover a whole range#p#分頁標題#e#
        of business change processes and the introduction of new business
        initiatives, i.e. new marketing and sales programmes.
        We also looked at the skills needed. Project managers need a wide
        variety of skills to run projects successfully: people skills and technical
        skills being two of the key skills required.
        REVIEW ACTIVITIES
        Review activity 1
        Read section 4.1 of Field and Keller to understand more fully some of the
        principles introduced here.
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        Review activity 2
        One of the most common uses of project management is in marketing
        departments. List some of the activities marketing managers would use in
        launching a new product
        REVIEW ACTIVITY FEEDBACK
        Review Activity 1
        Please refer to Field and Keller
        Review Activity 2
        Launching a new product would include: design of the product, design of the
        packaging, distribution to be used, pricing, training sales force, arranging
        advertising, booking space with TV company and newspapers, arranging
        product launch, managing media and printing brochures and other new
        product information.
        Unit 1 References
        Boddy, D. and Buchanan, D. A. (1992) Take the Lead. Prentice Hall.
        Field, M., Keller, L. (1998) Project Management. Open University.
        Burke, R. (2003) Project Management, Planning and Control Techniques.
        John Wiley and Sons.
        Richman, L. (2002) Project Management StepbyStep.
        AMACOM.
        Turner, R. (1993) Handbook of ProjectBased
        Management. McGraw Hill.
        Wilson, D.A. (2003) Managing Information. Butterworth Heinemann
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        Unit 2
        Planning and Monitoring Tools
        and Techniques
        LEARNING OUTCOMES
        Following the completion of this unit you should be able to:
        · Examine and analyse the tools and processes for project plan
        development
        · Understand the techniques for project plan execution
        · Analyse and discuss project quality issues, project resource issues,project quality systems and the management of changes during
        projects.
        Introduction
        This module takes you through the latest planning and controltechniques.
        Research has shown that for projects to be successful, that is deliveredon time, satisfying customer objectives and delivered to budget, athorough approach to planning and control is essential. Projectfeasibility is usually the first stage of the planning process.
        Project planning has been likened to a modelling exercise. You draw upplans then put them together and then experiment with the model to
        find out the best way of proceeding through your project.
        The project plan starts with the project lifecycle.This is the plan that
        helps us break the project down into manageable chunksVery simple projects can be run from just a bar chart. More complex#p#分頁標題#e#
        projects will have a full critical path analysis (CPA) and a detailednetwork diagram. You will then measure progress, update the plan andcommunicate your updates to the project team. If you have manyresources you will need a resource plan and a resource histogram. Youwill also need to understand how to manage changes to your projectand plan.
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        All of these techniques are covered in this unit.
        Project Feasibility
        A feasibility study will look at whether the company has the expertiseand experience to handle the project successfully. It will also look at
        whether your company has the ability to make the best use of itsresources. Other areas that will be reviewed include: How realistic are
        the project budget and time requirements? Have enough resources beenassigned to the project to successfully complete the project? Are theobjectives realistic? A feasibility study will also look at the financialissues associated with the project. Is it worth doing financially and willthere be a return on our investment? These issues are looked at in the
        next section.
        The process of project formulation varies in different companies and ondifferent types of projects. Whichever way your projects develop thereshould at some point be a feasibility study to ensure the project isfeasible, but also to make sure it is making the best use of yourcompanies resources.
        A feasibility study looks at the following questions:
        · How realistic is it to expect that the project can meet thestated objectives?
        · How realistic are the project scope, budget and timerequirements?
        · Are sufficient funds available to complete the project?
        · Does the organisation have the technical expertise to
        accomplish the project?
        A feasibility study should also look at the stakeholders involved in theproject to insure their interests are taken into account. These
        stakeholders are the customers and project team, as well as the users,the suppliers and vendors, the external stakeholders such as theregulatory authorities, lobby groups, government agencies and tradeunions. Here, if possible, identify the key decisionmakersand focusyour attention on their needs.
        As Burke notes:
        “Whichever way your projects develop there should atsome time point be a feasibility study to not only ensure theproject is feasible, but also ensure it is making the best useof your company’s resources.
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        Project stakeholders are people and organisations (bothinternal and external) who are either actively involved inthe project, or whose interests may be affected by theproject being implemented. It is the project manager’sresponsibility to identify all the stakeholders and determinetheir needs and expectations. These needs and expectationsshould then be managed, influenced and balanced, toensure project success. The project manager should createan environment where the stakeholders are encouraged to#p#分頁標題#e#
        contribute their skills and knowledge as this may influencethe success of the project”
        Burke (2003)
        Burke also goes on to note..
        ”That some stakeholders are interested in the outcomes ofthe project, while others are only interested in the project
        while it is being implemented”Burke (2003)
        The feasibility study will also have its own project life cycle.Burke also outlined the following issues that should be covered in thefeasibility study:Stakeholder Analysis: The people and organisations who are activelyinvolved in the project, or whose interests may be affected by the projectbeing implemented. Stakeholders include: customers, project team,
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        Concept :
        outline of the
        purpose
        of the
        feasibility
        study
        D esign:
        plan how
        to carry
        out the
        feasibility
        study
        Implement at ion: perform the
        feasibility study
        Commissi on:
        confirm the
        feasibility
        study has
        produced
        the required
        report
        Concept D esign I mplement at ion Commissi on
        Figure 2.1 The Feasibility Life Cycle (Taken from Burke 2003)
        senior management, suppliers, subcontractors,
        regulatory authorities,
        lobby groups and individual citizens.
        Define the Clients Needs: The evolution of something quite vague tosomething tangible. The clarification of the problem, need or businessopportunity.
        Evaluate Constraints: Any internal or external restrictions that mayaffect the achievable scope of the project. These may be broken downinto (a) Internal Project Constraints (such things as: Can the product bemade? Does the company have the technology? Can the product bemade within budget?) (b) Internal Corporate Constraints (such thingsas: Can the financial objectives be met?) (c) External Constraints (such
        things as national laws and international laws and regulations? materialand component delivery lead times).A cost benefit analysis should also be carried out to establish thefinancial feasibility of the project. Here a report should be produced thatlooks at the costs and benefits in financial terms. In general terms if thefinancial benefits exceed the costs then the project should go ahead.
        (The next section looks in more detail at the financial aspect ofappraising projects). For example, a dam project may have manybenefits to the community, but might cause the silting up of the river. Ifthe financial benefits of having the dam exceed the costs of dredging the
        river, this project should go ahead.The Pareto improvement criteria is expressed as “the project shouldmake some people better off without making anyone worse off”. As youcan imagine justifying the project in simple economic terms is fairly
        straightforward, justifying it other ways (social, environmental or to the#p#分頁標題#e#
        wider community) can be difficult.
        Another factor that needs to be considered is technical feasibility. Fromthe point of view of minimising risk we need to be sure that the chosentechnology is sound.
        As Field and Keller comment:
        “Not only do we need to assess whether a technology ismature, sound and applicable, we also need to assess avariety of technical aspects of any proposal. These varyenormously and often require experienced or expert people
        to evaluate them properly. Even the building of a house byan experienced building contractor requires this sort ofassessment. For example, the soil on the building site willeffect how the foundations have to be constructed. A house
        built on clay has different requirements from one built onsandy soil. A soil engineer may be called to take samples
        and prepare a report before building commences.Marketing projects need to take into account the fact thatmarkets vary due to climate, cultural and economicdifferences: you can’t market air conditioners very
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        successfully in a cold climate, nor to people who can’tafford them. A software developer may need expert advicefrom the hardware manufacturer before undertaking aproject using that manufacturer’s platform.You should bear in mind that cost is by no means the only
        factor when determining whether a project is worthwhile,though its ease of measurement may tend to give it
        prominence.”
        Field and Keller (1998)
        Towards the end of the feasibility study the project will be formallyendorsed by senior management. With larger projects a formal business
        case will be prepared with clear analysis of all the issues and options
        and a full financial appraisal of the project costs. Management should
        clearly endorse the project showing clear commitment to the project and
        the project team.
        Of course, if the feasibility study shows the project is not feasible this
        should be shown in the tracking reports before you get to the end of the
        feasibility stage and the project should be stopped before any more time
        is wasted on the project proposal.
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        A s t he R F P r equest ed it A s t he wor k st at ement
        specified it
        A s i t was negot iat ed
        A s engineer ing designed it A s it was bui lt W hat t he cust omer want ed
        S wi ngs, a classic r evi st ed
        Figure 2.2 Swings (Taken from Burke 2003)
        A feasibility study should be done inhouse
        or by an external agency. It
        can, in fact be handled as a mini project. A feasibility study is important,
        look at the classic example in Figure 2.2 to understand what happens
        when things go wrong at this stage!
        Project Life Cycle#p#分頁標題#e#
        The project life cycle is a framework for dividing the project up into more
        manageable phases. This section looks at how the project life cycle is used
        to focus on the deliverables of a project. Most projects can be subdivided
        into four generic phases: concept, design, implement and commission.
        The project lifecycle
        enables us to look at the bigger picture.
        Burke defines the project lifecycle as:
        “a four phase life cycle that passes through four phase
        headings: concept and initiation phase, design and
        development phase, implementation (or construction
        phase), and commission and handover phase.”
        Burke (2003)
        Figure 2.3 shows these Life Cycle headings in graphical format:
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        L evel of E ffor t
        Concept and
        i nit i at ion
        D esign and
        development
        I mplement at ion
        or const r uct ion
        Commissi on or
        handover
        Concept D esign Implementat ion Comm.
        Figure 2.3 Generic Project Life-Cycle (Taken from Burke 2003)
        These stages are interrelated and dependent on each other, you may
        have heard of them when you have been involved in projects or come
        across them in other readings.
        To understand these phases we will define them in a bit more detail:
        Concept or Initiation Phase: The first phase. Starts the project off by
        establishing the need for the project and the feasibility phase is in this
        stage.
        Design or Development Phase: Phase number two. Designs the service
        or product, develops schedules and plans for implementing the project.
        Implementation Phase: Phase number three. Implements the project as
        per the agreed plan.
        Commissioning Phase: The fourth phase. Confirms the project has
        been completed to the design, then the project is closed down.
        Note there is no single project life cycle applicable to all projects. That is,
        one project lifecycle
        used by everyone throughout the project world.
        As Field and Keller note:
        There is no single life cycle that applies to all projects and
        we discuss below three different life cycles which might be
        a model for a given situation, depending on the approach to
        be taken. These three life cycles are:
        · A basic project life cycle, adapted from a fivephase
        model described by Weiss and Wysocki.
        · A phased development life cycle (a sequence of mini
        projects) from Jordan and Machesky (1990)
        · A prototyping life cycle.
        Field and Keller (1998)
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        The phased life cycle shows the phases in sequence. You would
        normally complete one phase before moving to the next phase, but in#p#分頁標題#e#
        practice there may be some overlap. Remember, the phases are
        interrelated and dependant on each other.
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        P hase 1
        CON CE P T
        Conceive
        ( C)
        Gather data
        Identify need
        Establish
        - goals, objectives
        - basic economics
        - feasibility
        - stakeholders
        - skill level
        - strategy
        - potential team
        Guestimate
        resources
        Identify alternatives
        Present proposal
        Obtain approval for
        next phase
        P hase 2
        D E V E L OP ME N T
        D evelop
        ( D )
        Appoint key team
        members
        Conduct studies
        Develop scope
        baseline
        - end products
        - quality standards
        - resources
        - activities
        Establish
        - master plan
        - budget, cash flow
        - W BS
        - policies and
        procedures
        Assess risks
        Confirm justification
        Present project brief
        Obtain approval to
        proceed
        P hase 3
        IMP L E ME N T AT I ON
        E xecut e
        ( E )
        Setup
        - organisation
        - communications
        Motivate team
        Detail technical
        requirements
        Establish
        - work packages
        - detailed schedule
        - information control
        systems
        Procure goods and
        services
        Execute work
        packages
        Direct/monitor/
        forecast/control:
        - scope
        - quality
        - time
        - cost
        Resolve problems
        P hase 4
        T E RMI N AT I ON
        Finish
        ( F)
        Finalise product(s)
        Review and accept
        Transfer product
        responsibility
        Evaluate project
        Document results
        Release/redirect
        resources
        Reassign project
        team
        Plan Accomplish
        T ot al P r oject L i fe Cycle
        Time
        Figure 2.4 Phased Development Life Cycle (Taken from Burke 2003)
        With prototyping, a model of the system or deliverable is built and
        shown to the user to get feed back. The prototyping is a form of phased
        development. The model may start out as very basic, may be discarded
        quite quickly and then another one substituted.
        READING ACTIVITY
        Read the London Ambulance Service case study in Field and Keller (section
        1.5). This is very interesting case study that highlights many project
        management issues.
        CASE STUDY
        XTC Mobile of Birmingham, England, is a manufacturer of mobile phone
        products. Their Research and Development department has designed a new
        mobile phone that is 20% smaller and 15% lighter than any of their
        competitors.
        The head of marketing has asked John Bedford, XTC’s top salesman, to manage
        the project to engineer and manufacture the new product. He asks John to
        develop a schedule and budget, and present it to the management team the#p#分頁標題#e#
        following week.
        When John presents his plans to the management team, there is lots of
        discussion about whether the company should start manufacturing the phone.
        After the meeting, the Chief Executive Officer of the company asks John to take
        up the project and report directly to him. The CEO will work to get approval of
        the project and will approve every cost on the project.
        Questions: based on the concepts we have looked at in the above chapters,
        what steps should John take to make sure the project is a success. Bear in mind
        the following when formulating your answers:
        Has project approval taken place?
        Is John the best qualified person to take this role on?
        Have project management concepts been followed?
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        CASE STUDY FEEDBACK
        Your answer should have included the following points:
        · Project approval has not taken place; lots of discussion about
        whether to start making the phone, but no approval or support
        from the full management team.
        · John is a salesman in the company. This role does not qualify
        him to be a good project manager. He needs to acquire project
        management skills quickly or the project will fail.
        · Project management knowledge appears sorely lacking in the
        company. John was asked to develop a budget and schedule in
        a week for the project! Someone needs to educate the
        management team about project management.
        Project Objectives
        This section covers project objectives, i.e. What is to be done? How is it
        to be done? What are the cost constraints and timescale issues?
        The classic project has a simple singular objective: build that pyramid,
        launch that rocket, construct that hospital. Such projects are simple,
        clear and comprehensible. Project management started in power
        stations, bridges and things like that. Today
        projects are not so
        straightforward. Project management is applied to a wide range of tasks
        that do not have this singularity. For example, a software company
        might have a dozen or so projects on the go at any one time. However, it
        is still true to say that unless you can identify a clear objective, or a short
        list of clear objectives, project management may not be the right tool for
        you.
        It is essential that project teams have clear aims and goals. As Field and
        Keller explain:
        “The term aim is used here as meaning what you intend to
        do: a goal is the desired outcome. Objectives focus on
        achieving the aims – means to an end.”
        Field and Keller (1998)
        Project objectives may have been refined from the company objectives
        through a series of iterations. In many companies planning is carried
        out from the topdown,#p#分頁標題#e#
        this helps keep employees minds focused on the
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        key issues and objectives of the organisation. As Field and Keller
        highlight:
        “At the strategic level a project manager may have no input
        at all. However, as the key strategies are identified and
        increasingly refined through iteration, strategies can turn
        into programmes of change, and the tactics of realising
        these strategies can become projects.”
        Field and Keller (1998)
        Project objectives and project definition help the project manager clearly
        understand the issues surrounding the project. If these are clearly laid
        down from the start then the better chance the project has of success.
        The objectives are the quantitative and qualitative measures by which
        the project team will judge the completion of the project. It is not always
        possible to set the project’s benefits as the objectives, as they may not be
        achieved until sometime after the end of the project
        The project objectives are defined as soon as the project has been agreed.
        Objectives should cover
        · What is to be done?
        · How it is to be done
        · How much will it cost?
        · When will the project be finished?
        Objectives should be SMART (specific, measurable, agreed, realistic
        and timelimited)
        · Specific: should define the project and what it will and
        will not do.
        · Measurable: objectives should be laid down in
        measurable terms.
        · Agreed: the key people involved (PM, clients and
        customers) in the project must agree the project
        objectives.
        · Realistic: the objectives agreed must be achievable.
        · Time limited: define how much time is available and cost
        each element of that time allocated.
        Project objectives should also define what will be completed by the end
        of the project, detailing what will and will not be completed when the
        project is finished. This will give us the essential criteria for establishing
        whether the project has been successful or not.
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        For example, if a project involves the construction of new chemical
        works it is critical that the PM understands:
        · The needs of the users of the plant.
        · Understands why the client wants the new plant.
        · How the new facility will operate.
        · What the client is expecting from the PM and a clear view
        of what is involved in constructing the plant.
        · Be convinced the new facility will actually solve the
        problem.
        All the above will have an impact on the agreed project objectives.#p#分頁標題#e#
        Project definition is often used as a stage in the project plan. Certainly in
        larger projects it is normal to make project definition a clear milestone
        on the project path. To make this easier for successful project outcome,
        project definition and should be clear from the start, most project
        managers would not start a project unless the following was clear from
        the beginning:
        A clear definition from the client of the problem to be solved by the
        project requires:
        · Written definition of the clients needs and wants.
        · Background information to the current situation.
        · Understanding of the business reasons for the project.
        · Understanding of the client’s reason for undertaking the
        project.
        READING ACTIVITY
        Please read the section on identifying objectives in Field and Keller, section
        1.1.5.
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        ACTIVITY
        What would happen if a project was not clearly defined?
        ACTIVITY FEEDBACK
        You would not have the appropriate information to understand the client’s
        needs and fully understand the business reasons for starting the project.
        Planning the Project
        This is a fairly lengthy section. It covers the important steps of planning
        the project in detail, something that many failed projects have been
        accused of not doing thoroughly enough. It also introduces several
        important concepts, such as Work Breakdown Structure (WBS) and
        Critical Path Analysis (CPA).
        Many experts believe that proper planning is essential for project
        success.
        In the 1960s several UK Government projects were stopped or failed
        due to poor initial planning. For example, the TSR2,
        swingwing
        bomber was scrapped due to cost overrun and delays. A report
        highlighted that the project had been started before the design was
        stable. In other words, proper upfront
        planning was not carried out.
        Planning and control go hand in hand. With solid planning a project
        manager can exercise proper control. Without a plan there is nothing to
        compare progress against and project control is impossible.
        As Rory Burke notes:
        “Planning is an important component of the planning and
        control cycle, because the planning process not only
        establishes what is to be done, but also smoothes the way to
        make it happen.
        Planning is all about thinking forward in time. What varies
        is how far ahead the plans stretch and how precise they are.
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        The planning process communicates planning information
        to the project team and stakeholders, and obliges them to
        “sign on” and pledge their support. When plans are drawn#p#分頁標題#e#
        up by those who are going to implement them, they feel
        obliged (if not totally committed) to complete as planned“.
        Burke (2003)
        Work Breakdown Structure
        One of the first steps, after a project has been sanctioned, is to break the
        project down into a more detailed series of activities. Breaking the
        project down into more manageable pieces is known as creating a work
        breakdown structure (WBS). A WBS defines the work to be completed
        in the project. It is a graphical representation (diagram) of the project
        showing its component parts.
        It provides definition to the project scope by showing the hierarchical
        breakdown of activities and end products that must be completed to
        finish the project.
        As Turner has emphasised, the work breakdown is a process by which:
        “The work of a project is divided and sub divided for
        management and control purposes”
        Rodney Turner (1993)
        I am sure many of you have used, or seen a WBS, before. But maybe not
        realized that it is a key tool in project management. Work breakdown
        structures are normally shown in graphical format. The example in
        Figure 2.5 shows a very simple work breakdown structure with three
        levels.
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        When you are putting together a WBS for the first time you will need the
        following information to ensure that all the important information is
        included in the WBS.
        · Activity.
        · Activity Title.
        · Duration of Activity.
        · Successor Activity.
        · Personnel.
        · Direct Costs.
        · Predecessor Activity.
        The WBS defines the work to complete in the project. The WBS is the
        backbone of the project management from which all other control
        systems are derived. The work at all levels of the WBS should be defined
        in terms of results, or deliverables, it is intended to achieve. There are
        three reasons for this:
        · It gives better control of scope.
        · It gives a more stable plan.
        · It gives more visible control.
        The work breakdown structure is one of the key elements of the project
        plan. Once the basic work breakdown structure has been set up the time
        and cost estimates for each activity can be estimated and the resources
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        Gather Feed
        Animals
        House Feed
        People
        Design
        boat
        Build
        boat
        Boat
        Interior
        design
        Exterior
        design
        Get
        elephants
        1M, 1F
        Get
        lions
        1M, 1F
        N oah’s A r k
        Level 0
        Level 1
        Level 2#p#分頁標題#e#
        Level 3
        Figure 2.5 Noah’s Ark WBS (Taken from Richman 2002)
        for each activity defined. There are no hard and fast rules for setting up
        a WBS, but in practice it is useful to bear in mind the following?
        Use the categories that make up your project: i.e. components of the
        product, organisational units or geographical areas.
        · The WBS diagram does not have to be symmetrical.
        · Every box is a summary of the boxes in levels below it.
        · The final box in each level must end in a deliverable.
        · The lowest level activities are called work packages, this
        is lowest detail you wish to describe and control.
        · All the boxes must equal the complete project.
        The WBS should be reviewed with the project team member to ensure it
        meets their requirements and concerns. WBS can come in two different
        formats, either shown graphically in boxes (as per the example) or
        presented in text indent format.
        READING ACTIVITY
        Read Chapter 2.1.3 of Field and Keller to understand this topic more fully.
        Two further examples are shown below to help you understand these
        formats.
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        Foundations Walls/roof
        Civil
        Piping Sewerage
        Plumbing Electrical
        W iring Appliances
        House
        Figure 2.6 House Project WBS Subdivided in Boxes (Taken from Burke 2003)
        ACTIVITY
        Do you think the following activities should be included in the WBS:
        documentation and project management activity?
        ACTIVITY FEEDBACK
        Yes. Be sure to include all of the following activities: project management,
        documentation, product implementation, user training and project closure.
        Organisational Breakdown Structure
        The WBS gives us a diagram of the activities needed to complete the
        project. On larger projects this is usually linked to the Organisational
        Breakdown Structure (OBS) to ensure that everyone knows who is
        doing what, to whom and with what.
        The OBS gives us a division of responsibility. The thinking goes
        something like this: if you do not have a clear idea of responsibility and
        if you do not assign tasks effectively, people will be confused. This may
        sound like common sense, but it is essential that the project manager
        communicates clearly these responsibilities. If he does not some jobs
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        Foundations
        Walls/roof
        Civil
        Piping
        Sewerage
        Plumbing
        Electrical
        Wiring
        Appliances
        House
        Figure 2.7 WBS Horizontal Presentation (Taken from Burke 2003)
        will be done twice or not done at all! When the next project meeting is#p#分頁標題#e#
        held someone will ask if the quotes for the landscaping are in and
        everyone will look at everyone else. An angry argument will follow
        during which people will deny that they had responsibility for the
        work.
        None of this will move the project forward, but it does emphasize the
        need to have a clear allocation of responsibilities.
        Most project software systems have a method of allocating codes
        against the activities and then assigning those activities to the different
        departments. Most software systems also have a link between the WBS
        and the OBS (an interface between the WBS and the OBS) which would
        clearly indicate the work packages and the person responsible for
        carrying out the work.
        As you can imagine on large projects the level of detail this provides can
        be quite cumbersome. Assigning responsibilities can be very time
        consuming without the use of software. However, it is important to
        understand the principles involved.
        READING ACTIVITY
        Please read section 3.2.2 of Field and Keller to understand this subject more
        fully.
        Sequencing Activities
        One of the most important parts of project planning is determining the
        logical flow of all the project activities. The next step is to create a
        network diagram. This is a diagrammatic plan of how the project must
        be completed.
        It establishes the logical relationship between the activities using a
        network diagram. The key point is that the diagram highlights which
        activities must be carried out in sequence.
        NOTE: today it is rare for network diagrams to be drawn by hand. Even
        if you know nothing about network planning, the computer will
        produce a schedule for you and carry out all the calculations. However,
        most project managers must understand the theory behind this concept
        and most projects (even the largest) usually start with a hand drawn
        sketch of the first cut of the network to obtain some rough ideas. (In fact,
        before computer programs were developed most project managers
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        needed to be expert at draughting skills and have a degree in logic to
        complete a network chart.)
        A network diagram shows the activities and the logical relationships
        among those activities. The method used to determine this relationship
        is called the PDM method. This stands for Precedence Diagramming
        Method. The diagram below shows an example of this method. The
        PDM method was developed from the activity on node (AON) method.
        Both of these conventions aim to achieve the same objectives. They both
        expect a project manager or project planner to break the project into
        activities and work out how the activities depend on each other. The
        process is then to calculate when each activity could, should and must#p#分頁標題#e#
        start, and to determine which activities are vital to the success of the
        project.
        Precedence diagramming method is also referred to as activity on node
        because it shows the activities in a node box, with arrows showing
        dependencies. This is the most common form used in project software
        packages.
        Relationships
        Before we can start the network diagram we must determine the
        relationships between all the activities. There are two basic
        relationships:
        · Activities in series: activities are carried out one after
        another.
        · Activities in parallel: activities can be performed at the
        same time
        The two examples below illustrate these points:
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        A100 (Task 1) A200 (Task 2) A300 (Task 3)
        FOUNDATIONS WALLS ROOF
        Figure 2.8 Activities in Series (Taken from Burke 2003)
        What we are doing here is putting the activities in logical sequence.
        Now, this is very straightforward if you only have four activities! It gets
        very complex when there are 100s (sometimes 1000s) of activities.
        Note the activities are in each box. As already discussed, in project
        management terminology each box is called a node. Normally the
        legend in the node box will show the following information: earliest
        start time, duration, earliest finish time, activity number, description,
        latest start time, float and latest finish time (see the example in Field and
        Keller, page 197). This method is also the most common format found in
        project management software packages.
        Although in today’s work place the use of project management software
        is widespread, which makes the formation of sequencing activities
        straight forward, it is essential for students to understand the logic
        behind this process.
        To create a network diagram for you should use the following steps:
        1. For each activity, work out the relationships with other activities.
        That is, determine where each activity depends on other
        activities.
        2. List the activities into a logical sequence.
        3. For those activities that are not dependent on each other a
        separate path should be formed.
        4. Each activity must be dependent on the activity that immediately
        goes before it.
        5. Go over the sequence to make sure it is logical and makes sense.
        Here is example of how this works in practice:
        Suppose you are in charge of a team responsible for arranging a sales
        training programme for your organisation. You have listed all he
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        A300 (Task 3)
        A500 (Task 5)
        A600 (Task 6)
        WALLS
        ELECTRICAL
        PAINTING#p#分頁標題#e#
        A400 (Task 4)
        PLUMBING
        Figure 2.9 Activities in Parallel (Taken from Burke 2003)
        components of the project. These are the activities that the members of
        your team must do and the time needed for doing them – the activity
        durations are in days:
        List locations 2
        Select locations 4
        Plan topics 3
        Get speakers 7
        Arrange speaker travel plans 5
        Design and print brochure 14
        Final check on travel plans 8
        Take reservations 6
        Run training programme 10
        The next step is the analysis phase? here you work out what activities are
        dependent on other activities being completed first. For instance, when
        you are building a house you cannot plaster the walls until the walls are
        built, so plastering must be scheduled to follow on, in series, after wall
        building.
        However, there will be other independent activities as well. For
        example, once the walls are built the plumber and electrician need not
        work in any special order. Either can do their work first before the other,
        or they can both work at the same time in parallel.
        Getting back to the example above, the sales training programme,
        clearly the speaker travel plans cannot be arranged until the locations
        have been finalised. This is dependent relationship. However it is
        alright for the speaker travel plans to be arranged at the same time as the
        brochure is being prepared because these activities are independent.
        ACTIVITY
        Draw a rough sketch of the network diagram for the sales training example as
        outlined above. What would help you with this task?
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        ACTIVITY FEEDBACK
        A copy of the network diagram as produced by Project Management software,
        is shown in Figure 2.10. To help you with this it would have been useful to draw
        up a chart with the activities listed, showing durations and what was the
        preceding activity. The network diagram clearly shows the preceding activity
        for each of the activities.
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        Figure 2.10 Network for Arranging a Sales Training Programme
        It also might be useful to show this in a chart form; this is known as a Gantt
        chart.
        We will come back to Gantt charts in a moment. To help us understand
        this further let us look at another example, one with slightly more
        activities.
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        Figure 2.11 Gantt Chart for Arranging Sales Training Programme
        Here you can see the activities have been listed, with the duration and a
        preceding activity(s) for each activity.#p#分頁標題#e#
        This will help us build a network diagram for the project.
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        Activity
        No.
        Activity
        Description
        Duration
        in days
        Precedin
        g
        activity
        1 Start 0 0
        2 Mobilise 2 1
        3 Survey 1 2
        4 Grade site 2 2
        5 Trench footings 5 3, 4
        6 Form and pour concrete 5 5, 8
        7 Cure concrete 8 6
        8 Concrete and material design 5 1
        9 Spec prefab metal building 4 1
        10 Plumbing materials, pump 5 1
        11 Electrical materials, lights, panel 5 1
        12 Install pump 7 7, 9, 10
        13 Erect structural steel 4 7, 9, 10
        14 Install roofing and siding 5 13
        15 Install lights and panels 3 11,14
        16 Test pump 2 12
        17 Paint 3 15
        18 End 0 16, 17
        Figure 2.12 Activities to Construct a Pump Station (Taken from Richman 2002)
        READING ACTIVITY
        You now need to read section 3.3.3 of Field and Keller to understand network
        techniques more thoroughly.
        The earliest event time for every node is calculated by doing a forward
        pass through the network. You start at the project start node and finish
        at the unique completion node. We are concerned with event times here,
        a point in time not a period of time. Look at the example of a forward
        pass, on page 192 of Field and Keller to understand this topic.
        We are also interested in the latest times that each activity can occur if
        the project is to be completed by the required date. These are calculated
        by doing a backward pass. This calculates the latest time for each
        activity if the project is to be completed by a given completion date. The
        method is exactly the reverse of the forward pass procedure. This will
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        Concrete and
        material design
        8 5 days
        Grade site
        4 2 days
        Form and pour
        concrete
        6 5 days
        Cure concrete
        7 8 days
        Trench footings
        5 5 days
        Survey
        3 1 day
        Mobilise
        2 2 days
        Install pump
        12 7 days
        Test pump
        16 2 days
        End
        18 0 days
        Paint
        17 3 days
        Install lights and
        panels
        15 3 days
        Install roofing and
        siding
        14 5 days
        Erect structural
        steel
        13 4 days
        Plumbing materials,
        pump and controls
        10 5 days
        Spec prefab metal
        building
        9 4 days
        Start
        1 0 days
        Electrical materials,
        lights, panels, etc.
        11 5 days
        Figure 2.13 Network Diagram for Construction of Pump Station (Taken from Richman 2002)
        also highlight any activities that could increase duration and still
        complete the project on time, activities like this have what is known as#p#分頁標題#e#
        float (more on float in the next section). Look at the example of a
        backward pass, on page 194 of Field and Keller.
        READING ACTIVITY
        You now need to read section 3.3.4 of Field and Keller to understand this topic
        more fully.
        Some of the examples above have been very straightforward. This has
        been done on purpose so you can understand the concepts that have
        been presented here. It is important you work through the examples to
        ensure you understand the techniques being presented here. If you are
        unsure of these concepts work through the Pump Station example,
        activity by activity, to ensure you understand the logic behind the
        example.
        The next section introduces the critical path. This is the final piece of the
        jigsaw when it comes to sequencing activities and should (if you are
        finding this incomprehensible!) make all this clearer.
        SEQUENCING ACTIVITY CASE STUDY
        The directors of Nelson Clothing Company approved (six months ago) the
        building of a new facility to manufacture a new clothing range. A project
        manager and project team has already been selected.
        Phil, the project manager spent the first four months planning the project. He
        worked out the project costs, he worked out the time of each activity and the
        project scope. Phil then obtained project approval.
        His next step was to create the WBS. This had over 120 boxes in nine levels.
        Some of the work packages have 2 to 4 hours of work, some have 200 hours of
        work. Phil estimated each of the activities using plans he found for a similar
        project planned four years ago. Phil drew a network diagram that showed the
        sequence of activities and there interrelationships. Phil now intends to select a
        project team and really start to roll out the project.
        Question: If you were the project manager what would you do differently?
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        CASE STUDY FEEDBACK
        Your answer should have included:
        Phil should have involved the project team from the start not done everything
        himself. The project team should have helped develop the work breakdown
        structure, helped with the estimates and all the other phases of the project.
        How will he get the support of the project team when he has not consulted
        them?
        No mention is made of project reviews, cost benefit analysis or risk assessment.
        The WBS seems poorly thought out; normally work packages represent 10 to
        75 hours of work. Packages of 2 to 3 hours of work are too detailed to be
        managed effectively. The estimates are probably out of date (over 4 years old!).
        Creating the Critical Path
        This next section discusses how you achieve the critical path through
        the network but first, to prevent any confusion, let us review some of the#p#分頁標題#e#
        jargon that often crops up in books and in project management
        manuals. The terms critical path analysis, PERT, critical path
        networking, CPM and network analysis all mean the same thing? at least
        the same basic technique.
        Critical path analysis (we shall call it CPA from now on) is an entirely
        natural management tool. It is something we do every moment of our
        lives. You normally open the kitchen door before stepping into the
        kitchen. You put the kettle on for tea before getting the cups out, as you
        know that the boiling water is required for tea making.
        We unconsciously understand much about the flow of doing things, the
        logic that dictates the way things get done. Projects are just the same
        except that there are a larger number of tasks. As we have already said
        (and it is worth repeating) what we do is break down any project into
        activities, or tasks, and then decide how long each task will take and
        how each of these activities relate to each other. We then find the best
        route through the activities, from start to finish (usually represented on
        a network diagram from left to right) – this is CPA. It is also the
        minimum time for the project, taking into account all the different tasks,
        relationships, times and dependences.
        Burke defines the critical path as:
        “The critical path is defined as the series of activities that
        have zero float. The critical path always runs through the
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        project from the first activity to the last activity. Activities
        with zero float are on the critical path”
        Burke (2003)
        You will be aware of the term float from your reading of Field and
        Keller. Burke defines float as:
        “Float is the measure of an activity’s flexibility, quantifying
        how many working days the activity can be delayed before
        it will extend the completion date of the project, or any
        target finish dates.”
        Burke (2003)
        Today the schedule is very rarely run manually. Most networks are
        produced and maintained (as already discussed) using project management
        software. This involves assigning a calendar date to the beginning of the first
        activity and converting the time durations on each activity to a calendar
        date. You can then run a schedule using the appropriate software on your
        computer and review the schedule using a Gantt chart.
        To highlight this further let us return to the pump station example.
        Below is the pump station example with the critical path shown.
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        Concrete and
        material design
        8 5 days
        Grade site
        4 2 days#p#分頁標題#e#
        Form and pour
        concrete
        6 5 days
        Cure concrete
        7 8 days
        Trench footings
        5 5 days
        Survey
        3 1 day
        Mobilise
        2 2 days
        Install pump
        12 7 days
        Test pump
        16 2 days
        End
        18 0 days
        Paint
        17 3 days
        Install lights and
        panels
        15 3 days
        Install roofing and
        siding
        14 5 days
        Erect structural
        steel
        13 4 days
        Plumbing materials,
        pump and controls
        10 5 days
        Spec prefab metal
        building
        9 4 days
        Start
        1 0 days
        Electrical materials,
        lights, panels, etc.
        11 5 days
        Figure 2.14 Network Diagram with Critical Path (Taken from Richman 2002)
        What is important about the critical path?
        The activities on the critical path are those activities on the network that
        if delayed will delay the completion of the project. These activities are
        known as critical activities. Therefore, it is essential that these activities
        must be started and completed on time.
        The critical path calculates the following dates for each activity:
        · Early start is the earliest date the activity can begin.
        · Late start is the latest date the activity can begin and still
        allow the project to be completed on time.
        · Early finish is the earliest date the activity can end.
        · Late finish is the latest date the activity can end and still
        allow the project to be completed on time.
        Obviously activities on the critical path are important. These activities
        need careful monitoring because if they are not completed on time the
        project will be late, unless subsequent activities are completed in less
        than the scheduled time.
        For activities on the critical path the early and late start, and early and
        late finish, are the same. The concept of float we have already touched
        on. However, it is an important concept and it is worth going over a few
        important points with regard to float.
        Float
        · This is the time an activity can slip without delaying the
        project.
        · It is equal to the difference between the early start and
        late start.
        · Activities on the critical path generally have zero float.
        Another concept is lag. This is the time delay between activities. For
        example, a lag of 5 days between activities A and (with a finish to start
        relationship) means that B cannot start until 5 days after A is finished.
        If the schedule does not complete by the required time you can take
        action to decrease the total project duration. This is known as crashing
        the schedule. To do this you need to review all the available options and
        reduce the time of some activities. Remember that it is the activities on
        the critical path that needed adjusting.
        This next article concisely notes some of the key factors when putting#p#分頁標題#e#
        together a project plan.
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        CASE STUDY
        Detailing the Plan
        The approved project charter has been signed, sealed and delivered to the
        designated project manager—you! However, you are not surprised. As is
        customary in your organisation, the strategic planning and project management
        office facilitated the development of the project charter in coordination with
        the senior management team, project sponsors and stakeholders. You were a
        participant in that process. It is now your task to take the charter, develop a
        project plan and manage the effort to a successful conclusion. Since you
        participated in the development of the charter, you have already begun the
        thought process of what needs to be done. Piece of cake! Nothing to worry
        about, right? What? You were NOT included in the development of the charter,
        and this is the first time you have seen it? Welcome to PM reality!
        Now, don’t take me too seriously on this. There are organisations that have
        some very mature project management processes and do involve the project
        manager in the development of the project charter. But many more do not
        have mature PM processes, and the charter is developed without the
        knowledge of the designated project manager, or the charter is developed by
        the project manager with general guidance from the senior management. In
        either situation, your actions, as the project manager, must follow a prescribed
        course in the development of a detailed project plan.
        As you read through the project charter, mentally check off key pieces of
        information that you are looking for, such as:
        · Project description.
        · Scope statement.
        · List of the deliverables/milestones and when they are to occur.
        · The senior management team.
        · Your authority to act.
        · Funding limits.
        · Signatures of the sponsor and stakeholders.
        But now the work starts. The charter only provides a high-level view of the
        project and what needs to be done. It does not provide you with the totality of
        the task. The devil is in the details, and that’s what you’ll find as you begin to
        develop your plan. It is now your responsibility to distill the charter into
        segments that can be analysed and dissected, uncovering the detail and
        complexity of the project, and developing a plan that will document a detailed
        course of action that will ensure the successful completion of the project.
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        Muster the Core Team
        Breaking down the charter into project activities is a team effort. Therefore,
        you need to identify your core team, if it has not already been selected, and#p#分頁標題#e#
        discuss the project charter. The objectives of this initial meeting are to make
        sure there is a clear understanding of the overall project, and that the
        composition of the core project team represents the needed resources to
        accomplish your goals. For an IT project, the core team may have a software
        engineer, hardware engineer, network systems engineer and a procurement
        specialist. These are the individuals who will be your functional project
        managers for their respective business units’ support to the project. The next
        objective is to identify the parts of the project that will be major resource
        expenditure activities, such as software development, training and hardware
        engineering, or administrative activities, such as travel. These items become
        what I call “budget buckets.” Their more formal designation is major cost
        account line items.
        The next step is for the core team members to take their assigned portion of
        the project and:
        · Break down the major tasks into manageable work packages.
        · Identify work that needs to be done.
        · Quantify duration of tasks.
        · Schedule activities with consideration to their dependency on other
        activities.
        · Refine resource requirements.
        · Identify points of risk in a structured presentation of task-oriented
        grouping of work packages.
        This must be a deliberate and methodical process, resulting in the identification
        of project work package activities that can be managed and their progress
        tracked. The quality of the effort invested in this process will be the bedrock of
        the overall quality of the project.
        In developing your estimates, use as many sources as possible, e.g., in-house,
        outside sources, professional organisations, historical project files, etc. As the
        project detail is assembled, scheduling and sequencing of activities in the plan
        become the life blood of the project. Scheduling activities and the identification
        of predecessor and successor activities for an activity must be identified along
        with the activity’s duration and required completion date. When considering an
        identified risk of an activity, you may want to apply a contingency pad of
        duration and/or cost to the activity, based on its probability of occurring and its
        impact on the project.
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        WBS Review
        Once the core team members have developed their respective WBS, I suggest
        that each core team member provides a presentation to the entire team of his
        respective WBS, explaining the activities and their relationship to other
        activities. This “walk-through” of all the activities does a couple of things to get
        the project off on a good start. First, the WBS review informs the entire team of#p#分頁標題#e#
        what this business unit will provide. The review may uncover overlooked
        activities, or a resulting discussion may lead to refinement of duration and cost
        estimates. You may discover an activity’s relationship to other activities to be
        performed by another business unit.
        The WBS is the most important tool of the project manager in the management
        of a project. It provides a complete representation of work to be done as
        described in the project scope. It also provides the project manager with an
        element of protection and monitoring against scope creep and “gold-plating,”
        i.e., activities that misdirect the use of time and resources from the completing
        the defined in-scope work.
        Assembling the Detail
        The project plan is a collection of self-standing project-related documents
        developed as a result of project requirements or are standard, established
        organisational core policy, process and procedure documents to be applied to
        managing all projects.
        Here is my suggested list of project-specific and core documents to include in a
        project plan:
        Project Specific Documents:
        Project charter
        Work breakdown structure (WBS)
        Project milestones
        Roles and responsibilities of the project team
        Communications management
        Time management (network diagrams, Gantt chart)
        Escalation and problem resolution
        Core Project Management Documents:
        Change management
        Fiscal management
        Risk management
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        Procurement management
        Quality control and assurance
        The core PM processes are established enterprise standard operating
        procedures for the management of the respective functional areas of all
        projects. If this project is a result of a contract award from a third party,
        contract terms may require modification to some core documents. One
        example could be how changes of scope are processed. The contract may
        stipulate a joint process of review and determination between you and the
        client.
        The project-specific processes are unique for each project as the nature and
        requirements of the project direct the formation of the process and
        procedures followed during the project’s course.
        The assembled plan is a formal document developed by the core project team,
        describing to stakeholders and shareholders how the project will be managed
        and governed. The project plan is the integration of tools, procedures and
        policies to successfully manage the project.
        Tracking the Detail Trail
        Depending on the complexity of the project, you may decide either to develop
        a single WBS document showing the project work breakdown of all activities,
        or develop detailed breakdowns for each level one major activity of the project,#p#分頁標題#e#
        as a well as a summary or executive level presentation. There are numerous
        project management software applications that will enable you to develop
        multiple work breakdown presentations and link them to a higher level
        summary presentation. These applications will also produce network diagrams
        that will show lead, lag and float of the activities, their relationship based on
        their designated predecessor and successor activities, and the critical path of
        the project. Choosing the best method of presentation is based on experience.
        If you are unsure, ask a more seasoned project manager.
        As you move into project execution, I would like to provide a word of caution in
        monitoring the progress of the project. As the project manager, you are
        expected to provide the status of the project from a broad prospective and
        situational awareness of the entire project. Monitor and track project detail at a
        level that will enable you to be aware of the overall status of the project so you
        can answer questions from senior management, stakeholders and sponsors.
        Remember, their focus is on progress, resource expediter rate and schedule. In
        short, their mantra is, “On time and under budget!”
        Your goal is to manage the project process and to address the business
        management aspects of the project. You should not track the progress of tasks
        at a level of detail that causes you to lose sight of the critical parts of the project.
        (My article, “http://www.gantthead.com/article.cfm?ID=18757" , tells the
        story of a project manager who experienced first-hand what happens to a
        project – and the project manager – when too much project detail is
        monitored.) Leave the detail tracking of major activities to your core team
        leaders. They are the experts in their area, so if you need to have detail
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        information regarding a situation, go to them. After all, that’s what you pay
        them for!
        Jim Harris
        December 6, 2004. From: www.gantthead.com
        Gantt Charts
        Gantt charts are bar charts that display a schedule of all the activities.
        They were named after Henry Gantt who invented them in the First
        World War.
        The idea and layout is quite straightforward. (I am sure you have seen a
        Gantt chart before, you have just not realized that it was a Gantt chart! It
        is normally only project teams that call them Gantt charts? almost
        everyone else calls them bar charts)
        READING ACTIVITY
        Read section 3.3.2 of Field and Keller to obtain a thorough understanding of
        Gantt Charts.
        A Gantt chart or bar chart provides a very easy to read picture of the
        project activities (look at Figure 2.15). You will see that it easy to see the#p#分頁標題#e#
        relationships between the activities and time.
        We will come back to Gantt charts later when we look at reporting, and
        that subject will make Gantt charts more interesting and relevant.
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        Figure 2.15 Baseline Plan Gantt Chart (Taken from Richman 2002)
        CASE STUDY
        Now read the following article and case study to understand how some of
        these techniques and issues are managed in practice:
        Don’t Break Out the Champagne Just Yet!
        By Luc K. Richard
        Many executives evaluate software development projects with one criterion:
        whether or not it meets its ship date. Agreed, missing your project milestones
        could be devastating, especially if there are some legal implications tied to a
        release schedule. However, the ship date is not the only decisive factor you
        should pay attention to. Ever heard of customer satisfaction?
        At the end of the day, if your customers don’t like what you’ve shipped, they’re
        not going to pay for it. And if they don’t pay for it, then meeting that important
        ship date is meaningless.
        Unfortunately, too many managers learn this lesson the hard way. They declare
        the product generally available as soon as it comes out of the validation phase,
        and immediately break out the champagne. “Congratulations everyone! We’ve
        met our ship date! Let’s celebrate!”
        Wait a minute! Meeting the ship date is like studying for an important exam.
        Sure, you think you are ready, but don’t you think you should wait until after the
        exam to celebrate? The true test to determine whether or not you’ve
        succeeded is not exiting the validation phase; it’s successfully completing the
        customer acceptance phase.
        I remember a case where the R&D team was celebrating its success just as the
        product was being packaged and shipped to the customer. One executive in
        particular was going on and on about how he played an instrumental role in
        meeting the ship date. Without him, this project wouldn’t be a success—or so
        he claimed.
        When the customer received the application, the installation manuals and user
        guides weren’t even in the box. They “weren’t quite ready” replied the
        executive “because they needed some last-minute updates due to a change
        request implemented at the last minute.” Regardless, the customer proceeded
        to install the application. He failed miserably! “Not to worry,” answered the
        executive. “We’re going to send someone over to help you out.” Finally, after
        modifying a few (read: most) configuration files and tweaking some of the code,#p#分頁標題#e#
        the system seemed to work.
        A week in the Acceptance Test phase, the customer reported that five of the
        most important use cases weren’t met, and that their testers had raised more
        than 50 software defects. They decided to not accept the product – nor pay for
        it – until they reached a 98 percent success rate on the ATP.
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        Do you consider this project a success? Was meeting the ship date a good
        enough reason to break out the champagne?
        If you’re that executive, you’re probably trying to put the blame on other
        departments. “Product Management didn’t identify the right set of
        requirements” and “Quality Assurance should have consulted with the
        customer to better understand their acceptance criteria.” It’s their problem,
        right? Wrong!
        Listening to your customers is not an activity that only applies to other teams.
        It’s an activity that needs to be practised by every department in your
        organisation. Involving the customer should be part of your corporate culture.
        It should occur at every stage of the development process, including the
        planning, definition, construction and validation phases.
        Granted, customers are not always easy to deal with. They can make your work
        life miserable and, if not managed properly, can actually do more harm than
        good. Customers…
        · Don’t always know what they want, and those who do have a hard
        time explaining it.
        · Won’t commit to a set of features. They’ll describe something
        different every time you ask.
        · Agree (after the fact) that the initial set of features don’t meet all of
        their requirements, yet they’re not willing to pay extra for the
        additional features they are now requesting.
        · Won’t read your specifications or answer your questions in a timely
        manner, but are very quick to complain once the product is in their
        hands and doesn’t meet their expectations.
        · Aren’t technical enough to describe their real needs.
        · Don’t understand your software development process and that you
        can’t rewrite the system two weeks before its ship date.
        However, regardless of how tough your customers are, you cannot develop
        your system in a silo and then hope they’re going to accept and pay for the
        product. The solution is not to ignore the customer. The solution is to develop
        a better relationship with them, and to involve them even more!
        By further involving your customer, you build a better relationship with them:
        one where you’re not afraid to remind them that you need feedback in a timely
        manner, or otherwise jeopardize the delivery date. One where you can say no#p#分頁標題#e#
        to change requests late in the development cycle.
        Building a strong relationship with your customer doesn’t just make the
        experience more enjoyable. It increases your likelihood of meeting their
        acceptance criteria. It allows you to manage their expectations and, therefore,
        51
        Managing Projects Unit 2 – Planning and Monitoring Tools and Techniques
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        their satisfaction. After all, isn’t customer satisfaction just the customer’s
        perception of your solution in comparison to his expectations?
        Involving the customer isn’t just a start-of-project and end-of-project activity.
        Here are some ideas to involve the customer at every phase of the
        development lifecycle.
        Planning phase: Inquire about your customer’s internal milestones. Try
        to line up your deliverables and determine a release schedule that meets both
        your needs. If you can both agree to some of the larger milestones, there is a
        stronger likelihood that your schedule will remain the same. Furthermore, your
        designers will treat those deadlines more seriously and will put in extra effort to
        meet them.
        Definition phase: Get your customer to describe, or better yet, write
        down use cases and other requirements that will eventually be included
        in the acceptance test plan. Get him to review your prototypes and
        functional specifications and welcome their feedback. The earlier you work on
        the acceptance criteria, the better your chances of meeting them—and getting
        paid.
        Construction phase: Keep your customer up-to-date on your
        progress. Do regular product demos and show them you’re on track.
        Demonstrating progress is great for nurturing your customer’s trust.
        Furthermore, it helps them understand that they can’t submit significant change
        requests when you’re so close to project completion.
        Validation phase: Ask your customer to Beta test your application. Let
        them install your application, execute system tests, integrate it with their other
        systems and even get a sneak peak at your manuals and user guides. Many of
        them will gladly do it—for free—and will be more than happy to point out
        some defects and/or recommendations that you can fix before the ship date.
        This is especially useful when you don’t have enough capacity to test your
        system as thoroughly as you’d like.
        Product launch: Train your customer. Show them how the product is
        meant to be used. Teach them how to not make errors. Many defects raised
        during an acceptance phase are not bugs with the system itself but rather
        problems related to how the tester uses the system. Educate them on how to
        properly configure your system and use your graphical user interfaces.
        Involving the customer won’t guarantee they’ll commit to a set of features,#p#分頁標題#e#
        control feature creep or magically increase their technical knowledge. It won’t
        get rid of the six problems highlighted earlier in this article. But it will build a
        stronger relationship, it will allow you to better understand their acceptance
        criteria, and it will make it easier for you to manage their expectations. Without
        your customers, you’d be out of business, so don’t learn to ignore them, learn
        how to deal with them. Involve your customers throughout the software
        development process, and ship a product that meets their expectations—and
        then break out the champagne!
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        Preparing Resource Plans
        Assigning the right resources to the project is a critical operation. The
        right people, materials, and equipment all need to be assigned to the
        project and they all need to be in the right place at the right time.
        The following should be used as a guide when assigning resources:
        · Assign scarce resources to activities on the critical path
        first.
        · Obtain firm commitments from team members,
        managers, and senior management.
        · If you cannot get the right resources at the right time you
        will need to replan.
        · Do not assign the wrong person to the job just because no
        one else is available.
        · Balance critical resources by adjusting float.
        One of the most important tasks is identifying the right skills. You need
        to be careful that you do not assign a junior operative to do the job
        specified for a more senior person. You might also need to recruit
        individuals who best fit the skill requirements that were identified
        during the creation of the work breakdown structure. You may need to
        level the workload by reallocating other available personnel to provide
        assistance or even reducing the scope of an activity.
        Assign the most appropriate people to each activity. A useful tool for
        determining this is a resource histogram.
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        Weeks
        0
        3/9
        2
        4
        6
        8
        10
        3/16 3/23 3/30 4/6 4/13 4/20 4/27 5/4 5/11 5/18 5/25
        Project work
        Operational support
        Administrative
        Senior Editors
        Figure 2.16 Resource Histogram (Taken from Richman 2002)
        It is important to remember that the resource estimate is linked directly
        to the scope of work. As Burke points out, the scope of work may be
        expressed as so many tonnes of steel or so many square metres of wall to
        be painted. From this description the estimator can convert the scope of
        work into manhours
        per unit.
        Resource Loading
        In an ideal world the resource requirement equals the resources#p#分頁標題#e#
        available. In practice, this rarely happens and some form of
        rescheduling is needed.
        A resource overload is when the resource forecast requirement exceeds
        the available resources, while a resource underload is when the
        resource forecast is lower than available resource. A resource overload
        will lead to some activities being delayed, which could delay
        completion of the project. While a resource underload will underutilize
        the company’s resources, which could have a detrimental effect on the
        company’s profitability.
        The histogram now shows the forecast resources and available
        resources, both as a histogram and numerically. You can now address
        the problem by:
        Resource smoothing: Assign resources to critical activities and try to
        move other activities to ease the overload.
        Increase Resources: To address the overload.
        Reduce Resources: To address the underload.
        Other factors include extending the end date or increasing the resources
        if the end date is fixed.
        When resources are overloaded there are a number of ways of
        increasing the resources available.
        · Working overtime.
        · Working shifts.
        · Increase productivity.
        As you can imagine this can very complex. In fact, resource analysis
        needs a tremendous amount of mathematical calculations. It is sensible
        to use computer software for this type of analysis.
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        READING ACTIVITY
        Read section 3.4 of Field and Keller to obtain a full understanding of this topic.
        Why do Resource Schedules fail?
        Schedules often fail because administrative and operational activities
        are underestimated. When his happens, fewer hours than expected can
        be devoted to project work.
        As you allocate resources it is important to consider the trade offs in
        time, cost and resources. For example, putting more people on a project
        may get the job done but may also be less efficient. Also (and this is very
        important) the total cost of the project increases as you add more
        employees. Some activities take the same number of time regardless of
        the number of people involved.
        Finally, adjust the project schedule based on the availability of the right
        resources at the right time. NOTE doing this often results in increasing
        the total project duration.
        To make things go smoothly you should:
        · Compile a resource histogram to compare resource
        forecast and resource available.
        · Allocate resources to the critical activities first.
        ACTIVITY
        Why is identifying skills, when preparing resource schedules, important?
        ACTIVITY FEEDBACK
        You don’t want to assign a junior person to a job specified for a senior person,#p#分頁標題#e#
        likewise you would not normally assign a senior person to a junior person’s job.
        55
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        PCs and Project Management Software
        The computer is now an integral part of the project manager’s
        information and control system. Project management software is now
        used to assist with schedule development and take the pain out of
        calculation of mathematical analysis of resource plans and CPA plans.
        Software is used by mangers to plan and control projects and there is
        now complete acceptance of project management software to help
        project teams with their tasks.
        Today many large projects have project offices to help with the
        management of projects. These offices not only help with coordinating
        project information but enable the standardization of project
        information and management reporting systems.
        With standard systems and reporting, the collecting of project data, the
        processing of the data and the reporting on project performance
        becomes efficient and standardized. The project office also becomes the
        source of project knowledge and project information. If a project office
        management structure is introduced it is essential that the
        communication aspect of the project office is emphasised. The project
        office becomes the single point of responsibility and lines of
        communication to the project team, contractors, suppliers and all
        stakeholders should be handled through the project office.
        Project Management Software
        Software is used to store data about projects. Data about activities, the
        cost of those activities, the duration of those activities, the time it takes
        to complete those activities, in fact everything about the project can be
        input into project management software and used to produce reports on
        the status of the project.
        In a very perceptive piece, Reiss notes the following about project
        planning software:
        “What is a project planning software package? A software
        package is a very disappointing thing indeed. Like a piece
        of music what you actually want is invisible. You get a
        pretty box, lots of manuals you also get a disk or three. On
        these disks are recorded the instructions that turn your
        computer into a project planning machine.
        These instructions tell the computer how to ask for details
        of your projects and how to produce barcharts and
        histograms. It is these instructions that you really want. The
        manuals just tell you how to use the program. The disks
        carry the program. The packages nearly all work in the
        same essential way. You tell the program about the tasks
        56
        Unit 2 – Planning and Monitoring Tools and Techniques Managing Projects
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        that make up your project, and it tells you when each task
        should happen and which are critical. Critical tasks lie on
        the critical path and are vital to the success of your project.
        If you also tell the software how many resources are needed
        for each task, it will add up these demands and tell you
        how many resources you need day by day.
        You build your plans, analyse them, and produce barcharts
        and other reports to communicate your ideas to your team.
        As work progresses, you frequently update your plans and
        produce new reports showing the current state of the
        project, which parts are going well, and which parts are
        getting into trouble. While you will solve no problems with
        the software, you will greatly increase your chances of
        predicting problems in time for you to do something about
        them. A problem foreseen is a solvable problem.”
        Reiss (1995)
        In general, project management software has very many benefits, and
        today most large projects could not be run without the use of
        appropriate software.
        As Rory Burke notes project management software has the following
        benefits:
        · Project management software offers fast calculations.
        · The calculations are always correct, the accuracy of the
        output being directly dependent on the accuracy of the
        data input.
        · Editing is quick.
        · The software has the capacity to process large projects
        with 10000+ activities.
        · The project database can be linked to the corporate
        database.
        · Once the database has been established, ‘what if’ analysis
        can be performed quickly.
        Burke (2003)
        However there are a number of disadvantages:
        · Additional costs associated with education and training,
        hardware and software procurement.
        · The additional cost of maintenance and upgrading.
        · If the computer goes down this could stop the company’s
        operation.
        57
        Managing Projects Unit 2 – Planning and Monitoring Tools and Techniques
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        · The new system may cause a resistance to change.
        Burke (2003)
        Project management software cannot control or manage the project. It is
        an aid to the PM to help calculate project timescales and critical path
        analysis. It is not a substitute for practical management control of the
        project.
        Summary
        This has been a long section, but a very important section at that.
        The feasibility study helps us identify whether the proposed project is
        likely to be successful. It should help us paint a scenario that will help
        identify whether it is feasible to go ahead with the project or whether the
        project is too risky to be taken further.
        Project planning starts with the project lifecycle and project feasibility to#p#分頁標題#e#
        test whether the project is feasible or not. The project life cycle is very
        useful for planning and seeing the project through the various stages. In
        real life, things do not normally go quite so smoothly. The stages in the
        life cycle model are apt to run into problems, but that is what the project
        manager is there for? to smooth over these problems.
        After this the more detailed project plan can be put together. This will
        comprise: a work breakdown structure and analysis of the activities
        needed to complete the project.
        The Work Breakdown Structure (WBS) breaks the project down into
        manageable chunks. Critical Path Analysis (CPA) gives us a structured
        approach to planning. It is a critical part of the planning process.
        Following this analysis the activities will be sequenced in the correct
        order.
        The network diagram outlines the logic or sequence of work, i.e. the
        calendar when the work can be scheduled. The critical activities are
        those on the network with zero float. The CPA method is best learnt by
        setting up your own network diagram and calculating the start and
        finish dates.
        Project planning can be likened to a modeling exercise. You put the plan
        together and then experiment with the model to find out the best way of
        proceeding through your project.
        Very simple projects can be run from just a barchart. More complex
        projects will have a CPA and a detailed network diagram. If you have
        many resources you will need a resource histogram. You will then
        measure progress, update the plan and communicate your updates to
        the project team.
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        REVIEW ACTIVITY
        Urgent Care Hospital
        Urgent Care Hospital has recently received several large grants to modernise
        and upgrade the care they provide to the community. The hospital has
        determined to spend some of the money to upgrade the radiology department
        and has hired you to manage a project to install a new CAT scanner
        (computerized axial tomography scanner) to provide better care to critical
        patients.
        The new scanner will require major renovation of the radiology department,
        which is estimated to take eight weeks. Although the head of the department is
        eager to have the new machinery, she is not happy about the disruption the
        construction will cause. The scanner is expected to arrive March 1 and will take
        three weeks to install. The construction renovation cannot begin until after the
        installation is complete. The four operators who will use the new equipment
        also need two weeks of training.
        The estimated costs are as follows:
        Purchase $1,000,000
        Installation $45,000
        Op Training $16,000
        Renovation $96,000
        Since the new hospital expects to generate income of $50,000 a month on the#p#分頁標題#e#
        new scanner, its managers are anxious to begin using it as soon as possible with
        the least possible disruption to hospital functions.
        The head of the radiology department has come to you asking you to reduce
        the total project time as much as possible. She feels thirteen weeks is too long a
        disruption.
        To accommodate the request, you now need to complete the following tasks:
        · Determine what can be done to “crash the schedule” (make it
        shorter).
        · Prepare a network diagram and assign calendar dates to each
        activity.
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        Managing Projects Unit 2 – Planning and Monitoring Tools and Techniques
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        REVIEW ACTIVITY FEEDBACK
        This activity asks you to crash the schedule. Although the four activities can be
        done in sequence (one after another), the schedule can be fast tracked by
        beginning the training before the renovation is completed. As a result, two
        activities can be performed in parallel (at the same time) and the project can be
        completed two weeks sooner, as illustrated below.
        Urgent Care Hospital – Crashed Schedule
        Activity Description Duration
        (weeks)
        Preceding
        activity
        1. Receive CATSCAN 0 None
        2. Install CATSCAN 3 1
        3. Renovate radiology department 8 2
        4. Train CATSCAN operators 2 2
        5. End 0 3, 4
        CASE STUDY
        The following case study highlights many project management issues in a real
        life situation. Read with interest!
        Case Study: Universiade XVI – the 16th World Student Games
        Taken from Project Manager Today
        The biggest sporting event ever to have taken place in the UK – that is the 16th
        World Student Games. All of the competitors are supposed to be students of
        one form or another, and many of the athletes will go on to compete in the only
        bigger sporting event – the Olympics.
        Now, when you think of a major sporting occasion, your first thoughts probably
        go one of two ways. If you are a builder, you think of all those stadia and
        swimming pools. If you are an IT professional, you think of scoring and timing
        systems. The games involve many buildings and lots of computers, and that is
        just the beginning.
        Take a look at the management chart of Universiade Great Britain Limited.
        60
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        UGBL is the company which was formed to organise and run the games. You
        will see the major departments into which the organisation is split as well as a
        short list of the sub-projects within the major project. From this you may get
        some idea of the project’s scope.
        Let’s take catering as an example. There were 6000 competitors and officials
        from 130 countries living in Sheffield for the two weeks of the games. They all#p#分頁標題#e#
        had to be fed in accordance with their national and religious needs as well as
        their special needs as athletes. They had three nutritious, muscle-building
        meals a day. Not so with the VIPs attending the sporting conference, the judges
        and umpires, and the huge number of team-support members – they tucked
        into more up-market fare. There was guzzling going on at the student village,
        most venues, the conference and the VIP facilities. The total grub requirement
        was 40 tonnes per day.
        The caterers didn’t even start with a kitchen. In the build-up period they had to
        organise the kitchens, cafeteria, bars and buffets. It is not surprising that UGBL
        had a full-time catering expert seconded from Gardner Merchant – the kitchen
        equipment company.
        There were five purpose-built venues – this building work was organised by
        Sheffield City Council – and in these venues the hopeful athletes grunted and
        groaned their way towards gold medals. The village to house all of these visitors
        was converted from the semi-derelict Hyde Park Flats in Sheffield, most of
        which will be put back into the local housing stock after the games. There was
        one of those spectacular opening ceremonies. There were 998 competitions –
        including 192 athletic events, 216 basketball and 88 hockey matches and 180
        swimming races. As this is a friendly competition, the losers do not simply drop
        out but take part in runner-up contests, so that every visitor got to play, run,
        jump, dive or whatever quite a few times.
        The venues overspilt from Sheffield into South Yorkshire, causing a real
        transport problem. There had to be a fleet of vehicles to take the competitors
        from the village to the right location, as well as to move the VIPs and judges, not
        to mention the transport of the huge number of visitors who came to watch
        their hero, heroine, niece or boyfriend compete.
        The venues could not be completed, commissioned and immediately pressed
        into use for the games. They needed realistic testing as venues. Hence, most of
        the new venues were made available to local clubs to use in the period between
        building completion and the opening ceremony of the games.
        Everyone attending the games had to be vetted to ensure security. Every name
        was entered into a purpose-built software system, so that when participants
        arrived they could be issued with suitable badges to allow them into the
        relevant areas. This is called accreditation, which was only a small part of the
        security sub-project.
        Add medical, drug and sex testing, media facilities and a daily newspaper, and
        you get some feel for the size of the project. As if that were not enough,
        Sheffield threw in a cultural festival to compete with the Edinburgh Festival, and
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        U n iversity of
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        every group in the town from the cricket club to the tiddlywink society did
        something to coincide with the main games.
        Planning
        While the games were planned at a broad-brush level by network planning, and
        barcharts existed for most of the elements in the project, this work was put on
        hold following some management changes. One of the problems with the
        planning, even at a summary level, was to create a work breakdown structure
        (WBS) that would suit the current requirements and yet leave room for the
        unknown future needs of the project.
        A WBS is a structured system for coding tasks by relating them to various groups,
        phases, management responsibilities or other groupings. Commercial software
        packages handle it in different ways – some are very structured and some have a
        very free format. The various functions within the organization suited the
        management needs but bore little relationship to the natural sub-projects within
        the project itself. Hence, the system shown below was developed:
        The software used was Pertmaster Advance, which permits a 12 character work
        breakdown code. The first character was devoted to the operations function,
        with A = accommodation, S = sports, and so on. The second character was left
        free for later subdivision within these categories. The third character indicates a
        marketing involvement with a C= ceremonies and an I = information services. A
        V in the seventh position indicates a need for volunteers.
        In addition to this, the tasks were numbered in groups, 12100 to 12199 set
        aside for accommodation at the student village, 12200 to 12299 for
        accommodation elsewhere, and 14100 to 14199 for shuttle transport. The task
        numbering relates to the sub-projects, whereas the work breakdown relates to
        the management functions. The tasks can have only one number but could have
        many characters in the WBS. The table below shows the task numbering
        system. As the plan was built, the planners allocated each task with its task
        number range and entered any characters in the WBS that were relevant.
        If you want a barchart for the sports department, you need to check for an S in
        the first column; a C in the third position indicates a task connected with the
        ceremonies. Any character at all in the fifth column indicates a finance
        connection. It is easy, therefore, to get a barchart for a part of the plan. Telling
        the software to look for an S in position 1 and a V in position 7 gives a barchart
        relevant to volunteers working on the sports sub-project. A requirement for
        task numbers between 12000 and 12199 gives details of the student village, and
        tasks between 12000 and 12299 give all the accommodation activities. Asking
        for tasks numbered between 12000 and 12199, plus a V in the seventh position
        of the WBS, gives a barchart of those tasks in the student village that require#p#分頁標題#e#
        volunteers.
        By this means, a barchart can be produced for most needs. There is
        considerable scope for expansion of the plan within the structure and most
        people can get a single A4 barchart for their area of interest.
        62
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        UNIVERSIADE (GB) LIMITED
        PROPOSED WORK BREAKDOWN STUCTURE JULY 1989
        FUNCTIONAL DEPARTMENT DIVISION CODING
        SYSTEM
        OPERATIONS ACCOMODATION
        OPERATIONS SUPPORT
        TECHNICAL SERVICES
        SPORTS
        PROTOCOL
        A*
        O*
        T*
        S*
        P*
        MARKETING SPONSORSHIP
        PRESS OFFICE
        MERCHANDISING
        CEREMONIES
        EDITOR
        INFORMATION SERVICES
        S*
        P*
        M*
        C*
        E*
        I*
        FINANCE INFORMATION
        TECHNOLOGY
        PURCHASING
        ACCOUNTING
        FINANCIAL CONTROL
        OFFICE MANAGEMENT
        I*
        P*
        A*
        F*
        O*
        HUMAN REOURCES VOLUNTEERS V*
        Unit 2 References
        Burke, R. (2003) Project Management, Planning and Control Techniques.
        John Wiley and Sons.
        Field, M., Keller, L. (1998) Project Management. Open University.
        Harris, J (2004) www.gantthead.com
        PMBOK Handbook (1992). Volume 6, Project and Pr

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