SUBJECT PROJECT MANGEMENT

LEARNING OBJECTIVES PERIOD

Student shall be able to: PRELIM 1-4 WEEKS
1. Understand the characteristics of a project.
2. Apply project characteristics to your own project.
3. Identify skills necessary to manage a project.

EXPECTED OUTPUT
After reading this module the student must be able to Measurement Evaluation
- Apply project characteristic to your own project
- To solve the problem or determined the project risk Quiz/Exam and Projects

TOPICS MODULE 1: PROJECT DEFINITION

MODULE 2: WHAT IS PROJECT MANAGEMENT?
MODULE 3: PROGRAMME AND PORTFOLIO MANAGEMENT
MODULE 4: PROJECT CONTEXT (PROJECT ENVIRONMENT)

DISCUSSION
MODULE 1: PROJECT DEFINITION
Project management is a unique process, consisting of a set of co-ordinated and controlled activities with start and finish
dates, undertaken to achieve an objectives conforming to specific requirements, including constraints of time, cost and
resources.

The next question that can be asked is ‘Why does one need project management?’ What is the difference between project
management and management of any other business or enterprise? Why has project management taken off so
dramatically in the last 20 years?

The answer is that project management is essentially management of change, while running a functional or ongoing
business is managing a continuum or ‘business-as-usual’.
Project management is not applicable to running a factory making sausage pies, but it will be the right system when there
is a requirement to relocate the factory, build an extension, or produce a different product requiring new machinery, skills,
staff training, and even marketing techniques.
It is immediately apparent therefore that there is a fundamental difference between project management and functional
or line management where the purpose of management is to continue the ongoing operation with as little disruption (or
change) as possible.
This is reflected in the characteristics of the two types of managers.
While the project manager thrives on and is proactive to change, the line manager is reactive to change and hates
disruption.
Project-management techniques are equally suitable for building a cathedral or a garden shed.

Broadly these objectives, which are usually defined as part of the business case and set out in the project brief, must meet
three fundamental criteria:
1. The project must be completed on time.
2. The project must be accomplished within the budgeted cost.
3. The project must meet the prescribed quality requirements.
Time-Bound Project
A scoreboard for a prestigious tennis tournament must be finished in time for the opening match, even if it costs more
than anticipated and the display of some secondary information, such as the speed of the service, has to be abandoned.
Cost-Bound Project
A local authority housing development may have to curtail the number of housing units and may even overrun the original
construction programme, but the project cost cannot be exceeded, because the housing grant allocated by central
government for this type of development was frozen at a fixed sum.
Performance (Quality)-Bound Project
An armaments manufacturer has been contracted to design and manufacture a new type of rocket launcher to meet the
client’s performance specification in terms of range, accuracy and rate of fire.
Safety-Bound Project
Apart from the obvious examples of public transport given previously, safety is a factor that is required by law and
enshrined in the Health and Safety at Work Act.
If one were to list the four project-management criteria in the order of their importance, the sequence would be safety,
performance, time and cost, which can be remembered using the acronym SAPETICA.
Project Manager
A project manager can be defined as:
The individual or body with authority, accountability and responsibility for managing a project to achieve specific
objectives.
Project Manager’s Charter
Because the terms of engagement of a project manager are sometimes difficult to define in a few words, some
organizations issue a project manager’s charter, which sets out the responsibilities and limits of authority of the project
manager.
The project manager’s charter is project-specific and will have to be amended for every manager as well as the type,
size, complexity or importance of a project
Project Office
The project manager needs to be supported on large projects, either by one or more assistant project managers (one of
whom can act as deputy) or a specially created project office.
In addition, the project office can also be required to service the requirements of a programme or portfolio manager, in
which case it will probably have its own office manager responsible for the onerous task of satisfying the different and
often conflicting priorities set by the various projects managers.

PROJECT MANAGER’S CHARTER

1. Project Manager:
Name: ________________________________
Appointment/Position:____________________________
Date o f Appointment:____________________________
2. Project Title: ____________________________________
3. Responsibility and Authority given to the Project Manager:
The above named ProjectManager has been given the authority, responsibility and accountability for
_________________________________________________________________________
4. Project Goals and Deliverables are:
a:__________________________________________________
b:__________________________________________________
c:__________________________________________________
5. The Project will be reviewed.___________________________________________________
6. Financial Authority:
The Project Manager’s delegated financial
powersare:_________________________________________________________________
7. Intramural Resources: The following resources have been/are to be made available:
 8. Trade-offs: _________________________________________________________________
a: Cost: _____________________%
b: Time: ____________________days/weeks.
c: Performance: ____________________
9. CharterReview:N o charter review is expected to take place for the duration of this project unless it becomes
clear that the PM cannot fulfil his/her duties or a reassessment of the trade-offs is required.
10. Approved:
Sponsor/Client/Customer/Programme Manager: _____________________________________________
Project Manager: _______________________________
Line Manager: _________________________________
11. Distribution:

a: Sponsor;
b : Programme Manager;
c:Line Manager

MODULE 3: Programme and Portfolio Management

Programme management can be defined as ‘The co-ordinated management of a group of related projects to ensure the
best use of resources in delivering the projects to the specified time, cost and quality/performance criteria’.
A programme manager could therefore be defined as ‘The individual to whom responsibility has been assigned for the
overall management of the time, cost and performance aspects of a group of related projects and the motivation of those
involved’
There are two main types of organizations:
1. Client organizations- the projects or programmes will probably not be the main source of income
and may well constitute or require a major change in the management structure and culture.
2. Contracting organization- as the organization will already be set up on a project basis, or the
change to a project-oriented company will be easier because the delivery of projects is after all the ‘raison
d’être’ of the organization.
Portfolio Management
The APM Body of Knowledge defines portfolio management as:
The selection and management of all of an organisations projects, programmes and related operational activities taking
into account resource restraints.
Portfolio management, which can be regarded as a subset of corporate management, is very similar to programme
management, but the projects in the programme manager’s portfolio, though not necessarily related, are still required to
meet an organization’s objectives.
Companies do not have unlimited resources, so the portfolio manager has to prioritize the deployment of these resources
for competing projects, each of which has to be assessed in terms of:
1. Profitability and cost/benefit
2. Return on investment
3. Cash flow
4. Risk
5. Prestige
6. Importance of the client
7. Company strategy and objectives
The portfolio manager will normally be part of the senior management team which determines which projects go ahead
and which should be shelved, not started or even abandoned.

MODULE 4: Project Context (Project Environment)

These external or internal influences are known as the project context or project environment.
All these influences are neatly encapsulated by the acronym PESTLE, which stands for:
• Political
• Economic
• Social
• Technical
• Legal
• Environmental
`
Political
Two types of politics have to be considered here.
First, there are the internal politics that inevitably occurs in all organizations whether governmental, commercial,
industrial or academic, and which manifest itself in the opinions and attitudes of the different stakeholders in these
organizations.
Second, there are the external politics, over which neither the sponsor nor the project manager may have much, if any,
control.
Economic
Here again there are two levels of influence: internal or micro-economic, and external or macro-economic.
The external economics, often related to the political climate, can have a serious influence on the project.
The internal economics relates to the viability of the project and the soundness of the business case.

Social (or Sociological)

Many projects, and indeed most of the construction projects, inevitably affect the community of the areas they are carried
out in.

Technical
It goes without saying that, unless the project is technically sound, it will end in failure. Whether the project involves
rolling out a new financial service product or building a power station, the technology must be in place or be developed as
the work proceeds. The mechanisms by which these technical requirements are implemented have to be firmed up at a
very early stage after a rigorous risk assessment of all the realistically available options. Each option may then be subjected
to a separate feasibility study and investment appraisal. Alternatives to be considered may include:
o Should in-house or external design, manufacture or installation be used?
o Should existing facilities be used or should new ones be acquired?
o Should one’s own management team be used or should specialist project managers be appointed?
o Should existing components (ordocuments) be incorporated?
o What is the anticipated life of the end product(deliverable) and how soon must it
be updated?
Legal
One of the fundamental requirements of a contract, and by implication a project, is that it should be legal. In other words,
if it is illegal in a certain country to build a brewery, little protection can be expected from the law.
The project context includes the established conditions of contract and other standard forms and documents used by
industry, and can also include all the legal, political and commercial requirements stipulated by international bodies as
well as national and local governments in their project-management procedures and procurement practices.
Environmental
Some of the environmental aspects of a project have already been alluded to under ‘Social’, from which it became
apparent that environmental-impact assessments are highly desirable where they are not already mandatory.
Sustainability
There are many different definitions of sustainability, but the neatest one is the definition suggested by the World
Commission on Environment and Development:
‘A process of change in which the exploitation of resources, the direction of investments, the orientation of technological
development and institutional change are all in harmony and enhance both current and future potential to meet human
needs and aspirations’.
 MODULE 5: BUSINESS CASE
The document that sets out the main advantages and parameters of the project is called the BUSINESS CASE and is (or
should be) produced by either the client or the sponsor of the project who in effect becomes the owner of the document.
A business case in effect outlines the ‘why’ and ‘what’ of the project as well as making the financial case by including the
investment appraisal.
As with all documents, a clear procedure for developing the business case is highly desirable, and the following headings
provide some indication of the subjects to be included:
1. Why is the project required?
2. What are we trying to achieve?
3. What are the deliverables?
4. What is the anticipated cost?
5. How long will it take to complete?
6. What quality standards must be achieved?
7. What are the performance criteria?
8. What are key performance indicators (KPIs)?
9. What are the main risks?
10. What are the success criteria?
11. Who are the main stakeholders?
In addition, any known information, such as location, key personnel, resource requirements, should be included so that
the recipients, usually a board of directors, are in a position to accept or reject the case for carrying out the project.

The Project Sponsor

This person, who is often a director of the client’s organization with a special brief to oversee the project, is the project
sponsor (sometimes also known as the project champion).
The role of the project sponsor is far greater than being the initiator or champion of the project. Even after the project has
started the sponsor’s role is to:
1. Monitor the performance of the project manager
2. Constantly ensure that the project’s objectives and main criteria are met
3. Ensure that the project is run effectively as well as efficiently
4. Assess the need and viability of variations and agree to their implementation
5. Assist in smoothing out difficulties with other stakeholders
6. Support the project by ensuring sufficient resources (especially financial) are available
7. Act as business leader and top-level advocate to the company board
8. Ensure that the perceived benefits of the project are realized.
 Requirements Management
As has been explained previously, the two main components of a business case are ‘what’ is required and ‘why’ it is
required. Requirements management is concerned with the ‘what’.
In such a situation, the project manager must immediately advise all the relevant stakeholders of the additional cost, time
and performance implications and obtain their approval before amending the objectives, scope and cost of the project.
The following are some of the major characteristics that should be examined as part of this testing process:
• Feasibility, operability and time constraints
• Functionality, performance and quality requirements and reliability
• Compliance with health and safety regulations and local by-laws
• Buildability, delivery(transportability), storage and security
• Environmental and sociological impact
• Labour, staffing, outsourcing and training requirements

LEARNING ACTIVITY 1. The following (rather obvious) examples show where different priorities on the
project triangle (or diamond) apply. EXPLAIN

TIME

COST
S AFETY
QUALITY PERFORMANCE
FIGURE 1.1
PROJECT TRIANGLE

TIME

COST QUALITY PERFORMANCE

SAFETY

FIGURE 1.2 PROJECT DIAMOND

REFERENCES PROJECT MANAGEMENT 7TH EDITION / VIDEO PRESENTATION by Albert Lester

SUBJECT TEACHER CRISTITA T. RAMBOYONG
ADMINISTRATOR DANIEL DOMINIC DE LEON