Department of Operations Management

Study guide/0/2020

Project Management
(Honours)

Authors: Prof RJ Steenkamp 2008

Prof LP Kruger

Revised: Mr Alfred Sithole 2019

 PRO4801

Year Module

University of South Africa

Pretoria

© 2019 University of South Africa

All rights reserved

Printed and published by the

University of South Africa
Muckleneuk, Pretoria

PRO4801/1/2020

70466998

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IMPORTANT INFORMATION:

Please activate your myUnisa and myLife email address and ensure you have
regular access to the myUnisa module site PRO4801-2020-2025-Y1 as well as
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CONTENTS

Page
PREFACE v

TOPIC 1 (Part 1): Philosophy and concepts 1

LESSON 1: Introduction to project management 2
LESSON 2: Systems approach and systems engineering 17
TOPIC 2 (Part 2): Systems development cycle 21
LESSON 3: Systems development cycle 22
LESSON 4: Project and system definition 27
TOPIC 3 (Part 3): Systems and procedures for planning and control 31
LESSON 5: Basic project planning techniques 32
LESSON 6: Project schedule planning and networks 39
LESSON 7: Advanced project network analysis and scheduling 47
LESSON 8: Cost estimating and budgeting 50
TOPIC 4 (PART 3): Systems and procedures: control 55
LESSON 9: Project quality management 56
LESSON 10: Project risk management 59
LESSON 11: Project execution, monitoring and control 64
LESSON 12: Project evaluation, communication, implementation and
closeout 70
LESSON 13: Agile project management and Lean 75
TOPIC 5 (Part 4): Organisation behaviour 84
LESSON 14: Project organisation structure and integration 85
LESSON 15: Project roles and stakeholders 90
LESSON 16: Managing participation, teamwork and conflict 94

TOPIC 6 (Part 5): Project management in the corporate context

102
LESSON 17: Meta-management of projects and programme management 103
LESSON 18: Project selection and portfolio management 106
LESSON 19: International project management 200
REFERENCES 205

iii PRO4801/1/2021-2025
PREFACE

WELCOME
We extend a cordial welcome to you as a student of Project Management (PRO4801), a
paper that forms part of the curriculum for the honours degree in Business Management.
We trust that you will find this paper informative and stimulating, and that it will contribute
significantly to both your personal and your professional development.

GENERAL COMMENTS
Project management is without doubt a very interesting and dynamic discipline. There are
many reasons for this, but the core reason is the creative nature and importance of
operations and operations management. As a postgraduate student, we assume that you
understand the importance of value adding through operations (productive systems) to
economic growth. If all employees (regardless of operation type) directly and indirectly
create products and services for customers, then all managers are operations managers.
Operations managers “think project” and engage in projects whatever the reason (e.g. to
increase productivity). This is also why non-project-driven organisations use project
management. Projects and project management are therefore not only for the engineer
or the pure project-driven organisation.

Given the unique, non-repetitive and temporary nature of projects, it is obvious that we
have to do with a management environment quite different from that of continuous or
repetitive operations systems. Standard management principles cannot be applied to
projects without making provision for the distinctive environments in which they come to
fruition. Project management implies certain dynamics and is dependent on good project
managers. Experienced project managers are always in demand because substantial interests
are at stake in most projects. Project management therefore places high value on practical
experience and the lessons learned from previous projects.

Lesson 1 of this paper contains very important foundational information. It emphasises

the unconventional and dynamic nature of project management. It is important to
commence this paper with the correct attitude. Like entrepreneurs, project managers can
be seen as unique personalities for a unique job. Projects have an organic nature; they
need a multidirectional flow of work, good foresight and accurate estimation (anticipation,
planning and scheduling); and they depend on other sources of power. Project
management regards project termination as just as important as project commencement.
Project management dynamics are also influenced by interpersonal and stakeholder
relations, conflict management, time management, effective leadership (leaders as
change agents) and so forth. Projects clearly demand more than a pure management
process, and we have to understand how to distinguish between general management and
project management. One way is to look at the dynamics and the unique challenges of
project management.

iv PRO4801/1/2021-2025
This is why we make it clear that, as a student, you must grasp the dynamics and set the
scene for successful study and further development in project management.

The lecturing staff has high expectations of project management learners, and challenging
standards of performance will apply to encourage you to engage more clearly and deeply
with the project management body of knowledge (PMBOK). The intellectual quality we
expect is not reserved for only a few. Expanded opportunities will be provided and will
also be demanded, since autonomous learners can also influence their own scope of
opportunity.

The PRO4801 paper is also different in the sense that we have a clear international
standard for project management learning content in terms of the PMBOK, which has been
generated over years of research. We will use it as a frame of reference supplementary to
the prescribed work.

GUIDELINES FOR THE STUDY PROCESS

Please do not regard the study guide as just another document. This study guide is your
road map to the learning material for the paper. The content is presented according to a
didactic model that is intended to guide you step by step through the learning material
and also to encourage additional independent study. The learning material in this paper
has been determined scientifically. This study guide was compiled through curriculum
development based on the standards programme of the PMI (which updates the
PMBOK guide on a periodic basis) and a management-by-objectives (MBO) and
outcomes-based education (OBE) approach, with specific learning outcomes.

This paper has six topics, and each topic has between two and four specific lessons (a
total of 19 lessons). Each lesson suggests a similar but unique study process to enable you
to participate in productive learning. The checklist for each unit of study represents the
outcomes, which are the measure of success. These outcomes will be tested in the
examination – the examination questions will therefore be very similar to the list of
outcomes in the checklist – in that sense the paper is given to students beforehand!

The following hints or steps in the study process will be of great value:

(1) Obtain an overview of the subject matter and summary of the entire syllabus, reading
more widely than the prescribed matter. Also obtain a good idea of the assignments
as stipulated in your first tutorial letter. Use this tutorial letter to help you to plan for
the major milestones of the paper (e.g. assignment due dates).
(2) Read the paper aim and make sure that you understand what the aims of each
topic are. Obtain an overview of the content of each of the six topics and 19
lessons.
(3) Read the checklists for all 19 lessons. Design your own examination paper for each
topic by referring to the learning outcomes in the checklist for each lesson. Use the
assignment questions to help you with your focus. This will give you the most
accurate benchmark for the examination of all six topics.

v PRO4801/1/2020-2025
 NOTE: We primarily follow the structure of the textbook (Nicholas & Steyn 2017),
but the textbook does not identify or distinguish between the learning
outcomes for the purpose of this paper. A few concepts are left out and we
also provide some additional insights into the study guide content that are
not in the textbook. Therefore merely to study the textbook will not be sufficient.

(4) Begin with the first topic. Follow the instructions (e.g. first read, then study) and try
to engage in all the activities recommended. The learning outcomes indicate what
you should be able to do. Some outcomes will be to know (list, define and describe)
certain content of the material and others will demand a demonstration of
understanding at a higher level of the taxonomy. Please note the important
differences in the level of the outcomes. You should never only write an examination
– you must answer questions (by means of a written examination), which implies the
demonstration of outcomes reached.
(5) After completing a lesson on a particular topic, revise the topic aim and decide
whether you are ready to commence with the following topic. Many students prefer
to complete the lessons applicable to the assignments and to use the
assignments for actual in-depth study. For example, if Assignment 02 covers topics
2 and 3, many students prefer to complete lessons 3 to 6, and then use the
questions in Assignment 02 to revise the study matter and to engage in deeper
study.

The project management students for this paper (PRO4801) must be relatively autonomous
learners, and proper planning and disciplined learning (engaging in the recommended
activities and assignments) are necessary for successful study. This study guide will
sequence and configure content, from the general to the specific, to help you to produce
the most learning possible in the shortest time. Chunks of study material (lessons) on the
topic will be dealt with independently. To obtain real benefit, you will be encouraged to go
through certain learning processes and respond to various stimuli, to recall previous
learning, to obtain practical project management exposure, to obtain feedback and to
assess performance. These processes are carefully designed to engage you and encourage
you to master these chunks in terms of learning outcomes. Every lesson has different
learning outcomes, reflecting what you, as a project management learner, have to be able
to do. Certain action verbs clearly indicate the type of learning that is required of you in
each lesson. These action verbs can be categorised into different levels, delineating a
taxonomy, because educational objectives (learning outcomes) are related to various
reasoning and thinking processes. The PMBOK demands a unique learning process and it
should be understood that this PRO4801 paper demands a little more to make it
worthwhile. The world-wide web provide several links to a number of organisations
promoting project management. The following (and keywords) can also be searched:

– The ESI Project Management Professional Development Programme is supported by

120 000 people in 50 countries.
– PM Insight is a PMISA (Project Management Institute of South Africa) newsletter (e-
mail: info@pmisa.co.za).
– The Project Management Standards Generating Body was established in 1999 to
vi PRO4801/1/2020-2025
 address research and writing standards. Members of this body meet to stay abreast
with new developments and new standards (e.g. the Australian National
Competency Standards, the ICB standards and the IPMA and APM standards).
– The global PM forum encompasses the following: PMI (www.pmi.org); PMBOK (www.
pmi.org/sdm.html); IPMA (www.ipma.ch); APM (www.apm.org.uk); and AIPM (www.dab.
uts.edu.au/aipm/competency-standards/index.html).
– ProjectPro is a worthwhile publication on project management (projpro@cis.co.za).
– For PMI’s world seminars, contact: www.pmi.org/semcat/.
– Those who want to experience a learning process and course(s) that are somewhat
different can contact the School for Project Management either on the internet (www.
SPM.CO.ZA) or by telephone (telephone: 012 348 8786 in Pretoria).

PRESCRIBED BOOK
The following is the only prescribed book for PRO4801:

Nicholas, JM & Steyn, H. 2017. Project management for engineering, business and technology.
5th edition. Abingdon: Routledge. ISBN: 978-1-138-93734-5 pbk; 978-1-315-
67631-9 ebk.

ICONS USED IN THIS STUDY GUIDE AND THEIR MEANING

Learning outcomes

Key concepts

Read

Activity

Study

Checklist

Feedback on activity

vii PRO4801/1/2020-2025
Summary

vii PRO4801/1/2020-2025
i
 PAPER CONTENTS

Lesson 1: Introduction to project management

TOPIC 1 (PART 1 of the textbook):
PHILOSOPHY AND CONCEPTS Lesson 2: Systems approach and systems
engineering

TOPIC 2 (PART 2 of textbook): PROJECT Lesson 3: Systems development cycle

LIFE CYCLE Lesson 4: Project definition and system definition

Lesson 5: Basic project planning techniques

Lesson 6: Project schedule planning and networks

TOPIC 3 (PART 3 of textbook): SYSTEMS
AND PROCEDURES FOR PLANNING Lesson 7: Advanced project network analysis and
scheduling

Lesson 8: Cost estimating and budgeting

Lesson 9: Project quality management

Lesson 10: Project risk management

TOPIC 3 (PART 3 of textbook): SYSTEMS Lesson 11: Project execution, monitoring and
AND PROCEDURES FOR CONTROL control

Lesson 12: Project evaluation, communication,

implementation and closeout

Lesson 13: Agile project management and Lean

Lesson
Lesson 13:
14: Agile
Project
project
organisation
management
structure and
integration
TOPIC 5 (PART 4 of textbook):
ORGANISATION BEHAVIOUR Lesson 15: Project roles and stakeholders

Lesson 16: Managing participation, teamwork and

conflict

Lesson 17: Meta-management of projects and

TOPIC 5 (PART 5 of textbook) programme management

PROJECT MANAGEMENT IN THE Lesson 18: Project selection and portfolio

CORPORATE CONTEXT management

Lesson 19: International project management

ix PRO4801/1/2020-2025
PAPER AIM
The aim of this paper is to give you an in-depth understanding of the project management
philosophy and profession, and to equip you to be a project manager. The paper also aims
to direct your study of the specific project management knowledge areas (based on the
PMBOK) and the different project management processes and, with the help of practical
examples and assignments, to enable you to apply the skills you acquire in order to
perform more effectively in project environments.

PAPER OUTCOMES
As a student, you should be able to:

– obtain a basic knowledge of the PMBOK framework

– fully understand the project management philosophy, context, dynamics and related
concepts
– follow the systems development cycle of projects and demonstrate an
understanding of this cycle
– apply the technical skills required for effective project management
– demonstrate an understanding of the systems and procedures for project planning
– demonstrate an understanding of the systems and procedures for project control
– demonstrate an understanding of project organisation behaviour, leadership and the
importance of the human factor in project management
– understand the management of project management and demonstrate an
understanding of project management in the corporate context

x PRO4801/1/2020-2025
Topic 1 (Part 1)
Philosophy and concepts

TOPIC AIM
The aim of this topic is to help you to develop an understanding of how the work of
a project manager differs from that of any other manager, and to establish a thorough
understanding of the project management philosophy, its related concepts and project
management dynamics.

Learning outcomes

As a student, you should be able to:

– demonstrate an in-depth understanding of the project management philosophy
and the reasons why project management is regarded as dynamic and different
from ordinary management
– demonstrate an in-depth understanding of the systems approach to project
management

TOPIC CONTENTS
Lesson 1: Introduction to project management
Lesson 2: Systems approach and systems engineering

1 PRO4801/0/2020-2025
Lesson 1
Introduction to project management

Key concepts

characteristics of project management

characteristics of projects
systems approach to management
three-dimension project goal
project management benefits
PMBOK (project management body of knowledge)
management functions
traditional management forms of project management
management by project
basic project management
programme management
new venture management
product management
project lifecycle
project management environments: industrial settings; service and public sectors
project-driven organisation
project dynamics
project performance objectives
operations management

OVERVIEW
In this lesson we introduce project management in terms of its origins, characteristics,
typology and need for it. We also introduce the systems approach to management, the
three-dimensional goal of projects and the three-dimensional components of project
management so as to differentiate project management from other forms of
management. To achieve the learning outcomes of this lesson, you must learn to define
projects and project management based on their characteristics. We also discuss the
evolution of project management, instances where project management is appropriate
(and environments in different industrial settings/sectors), management by project and
forms of project management. This lesson therefore distinguishes project management
from non-project management as a special kind of management. We conclude by
considering why project management is regarded as dynamic. The lesson focuses on only
a few aspects of project management dynamics; other lessons will go into greater detail.
This lesson will help you to grasp the dynamics and set the scene for further studies.

2 PRO4801/0/2020-2025
1.1 INTRODUCTION TO PROJECT MANAGEMENT

Read pages 1 to 3. As long as humankind lives there will be projects.

The business world and society have seen many projects since the beginning of
time. Large-scale projects have been evident since time immemorial. History
contains examples of interesting projects of large and varied scope and
complexity that called for the orchestration of thousands of people and the
logistics of large-scale resources.

The following examples show how projects have evolved:

– The Great Pyramid of Cheops (circa 2500 BC) was an ancient large-scale
project that involved huge resources and required a high degree of accuracy
in the construction. 2 300 000 stone blocks were used to build the pyramid.
Its structure is comparable to a modern 40-story building.
– Various construction projects by King Solomon transformed ancient cities
and towns into powerful fortifications. He took seven years to construct the
temple in Jerusalem and 13 years to build his own palace. He employed
30 000 Israelites for these projects.
– A Noah constructed a huge boat, the Ark. The Ark was as big as a three-story
building. This project had a significant impact on mankind, and several
archaeologists have confirmed the technical information about the Ark in
the Bible.
– The walls of Jerusalem were constructed from ruins through teamwork –
tasks were allocated to specific families. Each family agreed to build part of
the wall, and the high priest built one of the gates. The project was
completed in just 52 days.

Other more recent projects include:

– The Manhattan Project (1942–1945) was a pioneer R&D project that led
to the development of the atomic bomb, which was dropped on
Hiroshima and Nagasaki in Japan.
– The Apollo Project for various missions to the moon (1969–1972) was a
National Aeronautics and Space Administration (NASA) project. Various
projects to the moon continue to this day.
– Various projects involving the internet started in 1962 and continue
evolving through Industry 4.0, involving the Internet of Things (IoT).

3 PRO4801/0/2020-2025
1.2 WHAT IS A PROJECT?

Study section 1.3 of the prescribed textbook (Nicholas & Steyn 2017).

It is important to “think project” right from the start. Note that the project concept must
be understood in the context of operations management. By this we mean a value-adding
process that transforms inputs into outputs. To classify project operations, you need to
distinguish between intermittent operations and continuous (repetitive) operations.

Study the characteristics of projects and conduct project classification by referring to the
typology of projects (see figure 1.3 in the prescribed book). You may also list examples of
projects from pure project organisations and from non-project organisations.

Project management is unique and differs from functional management, even though
project managers (like functional managers) also need to plan, schedule, motivate and
control. Every aspect of a project, from the delivery process to the life cycle and outcome
focus, is unique. Activities are temporary and non-repetitive. A project has a definite
beginning and a definite end. In contrast, functional managers conduct ongoing operations.

Project managers manage diverse stakeholders (outside contractors, suppliers and the
project team) to provide direction, coordination and integration. They are ultimately
responsible for the performance of the project, usually with little authority.

Creating diverse teams from resources borrowed from functional departments presents
peculiar challenges for project managers. The team members’ allegiance remains with the
functional department. Reflect on how such situations can be managed effectively.

To manage project performance, project managers make trade-offs among time, cost and
performance (quality). Rudimentary technical knowledge generally enable project
managers to make decisions. They rely on motivating their teams to conduct required
activities on time.

The snapshot from practice 1.3 provides insight into the ability to manage projects with
various outcomes. Pay attention to the necessary knowledge, perspectives and tools
applied to address the challenges presented by such projects.

4 PRO4801⁄1/2021-2025
Source: Grey & Larson (2018:10–11)

5 PRO4801⁄1/2021-2025
1.3 THE NEED FOR PROJECT MANAGEMENT
Modern projects involve great technical complexity and require a considerable diversity
of skills. There are several reasons why project management may become necessary. The
need arises, firstly, when simple conventional projects or large jobs are managed as project
operation systems. Other reasons are pressures for greater productivity, changes in the
global economy and a need to adapt. Examples of such projects are new conservation
programmes, new health and safety projects to address pandemics, rapid Third World
development, the implementation of new technology and many others. Projects can
span diverse industries, for instance systems engineering, marketing, accounting,
management, sports medicine, chemistry, education and industrial engineering.
Study section 1.4 of the prescribed textbook (Nicholas & Steyn 2017). Note how today’s
rapidly changing environments increase project complexity and challenges to project
delivery. Reflect on how to address these challenges.

Project management has increasingly become a standard way of doing business, especially
of driving organisation strategies. More projects focus on customer service in an
environment of increased competition. There is an increasing need for projects to address
aspects of the planet, people and profit.

The snapshot from practice 1.4, Project management in action: 2016, and the snapshot
from practice 1.5, Dell Children’s becomes world’s first “green” hospital, provide insight
into some projects related to customer satisfaction.

The snapshot from practice 1.5 also provides insight into projects that embrace the
concepts of plan, people and project (triple bottom-line).

6 PRO4801⁄1/2021-2025
Source: Grey & Larson (2018:13)

7 PRO4801⁄1/2021-2025
S NA P S HO T FRO M P RA C TI C E 1 . 5 Dell Children's Becomes World's First
“Green” Hospital*

Dateline 1/7/2009, Austin Texas: Dell Children's Medical Center becomes the first hospital in the world to
receive platinum LEED (Leadership in Energy & Environmental Design) certification. Platinum certification is
the highest award granted by the U.S. Green Building Council.
Dell Children's occupies nearly one-half million square feet on 32 acres that were once part of Austin's old
Mueller Airport. Its environmentally sensitive design not only conserves water and electricity, but positively
impacts the hospital's clinical environment by improving air quality, making natural sunlight readily available,
and reducing a wide range of pollutants.
In order to receive LEED certification, buildings are rated in five key areas: sustainable site development,
water savings, energy efficiency, materials selection, and environmental quality. Listed below are some of
the accomplishments in each LEED category:
Sustainable Site
 47,000 tons of Mueller Airport runway material was reused on site.
 About 40 percent fly ash instead of Portland cement in concrete yields a drop in carbon dioxide
emissions equivalent to taking 450 cars off the road.
 925 tons of construction waste was recycled on site.
Water Efficiency and Water Conservation
 Reclaimed water is used for irrigation; xeriscaped landscaping uses native plants, which require less
water.
 Low-flow plumbing fixtures.
Energy Efficiency and Energy Conservation
 An on-site natural gas turbine supplies all electricity, which is 75 percent more efficient than coal-fired
plants.
 Converted steam energy from a heating/cooling plant supplies all chilled water needs.
Indoor Environment Quality and Lighting
 Most interior spaces are within 32 feet of a window.
 Motion and natural light sensors shut off unneeded lights.
Conservation of Materials and Resources
 Use of local and regional materials saves fuel for shipping.
 Special paints and flooring emit low levels of volatile organic compounds (VOCs).
“Even before the first plans were drawn up, we set our sight on creating a world-class children's hospital,
and becoming the first LEED Platinum hospital in the world was definitely part of that,” said Robert Bonar,
president and CEO, Dell Children's Medical Center of Central Texas. “Our motivation to pursue LEED
Platinum was not just environmental. Being a ‘green’ hospital has a profound, measurable effect on healing.
What's good for the environment and good for our neighbors is also good for our patients.”
* Austin Business Journal, 1-11-2009; www.dellchildrens.net/.

Source: Grey & Larson (2018:14)

1.4 THE APPROACH TO PROJECT MANAGEMENT

Study section 1.2 of the prescribed textbook (Nicholas & Steyn 2017).

Projects are managed based on the systems approach. Study section 1.2 to understand
8 PRO4801⁄1/2021-2025
the key elements of a system in a project and how these elements related to one
another.
The objective of the system is to achieve the project goal. The project manager is to
optimise the system. Take note of the features of project management and their
importance to project delivery. In lesson 2 we will elaborate on this systems approach
to management.

1.5 PROJECT MANAGEMENT AND ITS BENEFITS

Most projects have a three-dimensional target involving time, cost and performance (TCP).
The approach to and unique methodology of project management combine to ensure that
this target is reached. This implies that stakeholder requirements are met. To achieve this,
we need to understand the three-dimensional features of project management that
distinguish it from conventional management, namely the person (project manager), the
team (not a group) and the methodology (integrated planning and control using the
PMBOK, Prince2 or other tools, or a combination of these). Study section 1.5 and section
1.6 to gain insight into project goals in terms of time, cost and performance. Section 1.5 also
provides perspectives on project management in terms of the person, the team and the
methodology.

1.6 PROJECT MANAGEMENT STANDARDS AND

COMPETENCIES
1.6.1 PMBOK

Study section 1.7 of the textbook (Nicholas & Steyn 2017) and refer to table
1.1.

Several organisations have contributed to the establishment of standards, guidelines and

certifications to advance project management from merely managing projects to a
respected profession. (These organisations were mainly the Project Management Institute
[PMI (US)]; the International Project Management Association [IPMA, a group of national
associations in Europe, Africa, Asia, North and South America]; the Association for Project
Management [APM (UK)]; and the Australian Institute of Project Management [AIPM].) The
PMI’s guide to the PMBOK divides project management into ten areas, most of which are
covered in this paper (PRO4801). Figure 1.1 illustrates the PMI talent triangle, which shows
the competencies required of project managers.

A project manager should broadly have three competencies: technical management skills;
leadership skills; and strategic and business management skills. A competency relates to the
knowledge, skills, experience and behaviours that a project manager is expected to have to
deliver projects successfully.

9 PRO4801⁄1/2021-2025
Both technical skills and leadership skills relate to the knowledge, skills and behaviours a
project manager is expected to have to manage a project, programme and portfolio.
Behaviours on leadership aspects relate to people: how to guide, motivate and direct the
team, and how to assist an organisation in achieving its business goals. Strategic and business
management skills involve the knowledge and expertise of a given industry and organisation
to enhance performance and improve the delivery of business outcomes.

An effective project manager can balance the technical, leadership, strategic and business
management skills sets. The skills sets reflect overlaps among generally accepted project
management knowledge and practice; application knowledge and practice; and general
management knowledge and practice. This underlines the multi-disciplinary nature of the
relationship between project management and other disciplines.

The words leadership and management are often thought to mean the same thing. This is
such not accurate. Leadership involves guiding followers, through discussion and debate, to
achieve what is intended. Management involves directing employees to achieve what is
intended using a set of expected behaviours. A successful project manager can strike a
balance between leadership and management. This reflects on the project manager’s
leadership style.

Reflect on team management versus team leadership and how a project manager could strike
a balance between the two (refer to the prescribed book, PMBOK and other literature).

Refer to PMBOK 2017 6th edition PMI triangle

1.6.2 PRINCE2 model

The PRINCE2 methodology is another popular development. To develop the model was a
project in itself. PRINCE2 provides a project management method and framework that
cover the wide variety of disciplines in a project. PRINCE is an acronym for PROJECTS IN
CONTROLLED ENVIRONMENTS (e.g. government departments) and is extensively used by
the UK government. A typical PRINCE2 project has a finite and clearly defined life cycle,
measurable business products (with defined activities to achieve these products), a
defined amount of resources and a defined organisational structure.
PRINCE2 emphasises the business case and the groundwork that begins before the project
does, so that the project is well designed and gets off to a controlled and well-organised
start. The five primary benefits of using PRINCE2 as a clinical, single, structured method
for project management are as follows:
• It is proactive, early-warning methodology and can accommodate unexpected events.
• The method is teachable and repeatable.
• Everyone knows exactly what to expect how, where and when.
• It follows a process-based approach to project management.
• It emphasises the business case as the main control reference throughout the project.

10 PRO4801⁄1/2021-2025
 The PRINCE2 process model consists of eight distinctive management processes:

• a pre-project process (starting up a project)

• the authorisation process (directing the project)
• project initiation documents (the lessons learned log, quality log, etc)
• the management of stage boundaries
• control of each stage as a specific cycle process
• the management process of product delivery
• the execution of a controlled close-out

The repeatable process of planning (the process produces a product checklist and a risk log).

1.7 MANAGEMENT AND THE CHARACTERISTICS OF PROJECTS

AND PROJECT MANAGEMENT

Study chapter 1 of the textbook (Nicholas & Steyn 2017).

Sections 1.1 and 1.2 of the textbook provide perspectives on general management
functions, the features of project management and where project management is
appropriate.

Activity 1.1

Distinguish between the undertakings that can be classified as projects and

those that cannot. Prepare a short presentation on undertakings that cannot
be classified as projects and provide sound arguments supporting your view.
Distinguish clearly between the characteristics of projects and the
characteristics of project management, and make reference to the project
life cycle.

Refer to generic project life cycle PMBOK 2017 6th edition (diagram).

1.8 FOUR TYPES OF PROJECT MANAGERS PRODUCED BY THE

EVOLUTION OF PROJECT MANAGEMENT
Matrix managers are a relatively well-known type of project management used to achieve
unity of direction. There are also several other types of project management. Study
section 1.3 of the textbook (Nicholas & Steyn 2017), which teaches the history of project
management and how organisations tend to evolve from one type to the next. Four types
of project managers have emerged, as described in this section.
11 PRO4801⁄1/2021-2025
1.9 INSTANCES WHEN (WHERE) PROJECT MANAGEMENT IS
APPROPRIATE

Study sections 1.4 and 1.5 of the textbook (Nicholas & Steyn 2017).

These sections provide general criteria to help us decide when to use project
management, and they specifically show where project management is not appropriate.
They also explain the management-by-project approach that is followed when an
undertaking involves doing several activities that are unique and require cooperation from
several parties.

1.10 DIFFERENT FORMS AND ENVIRONMENTS OR SECTORS

OF PROJECT MANAGEMENT

Study sections 1.6, 1.7, 1.8, 1.9, 1.10 and 1.11 of the textbook (Nicholas &
Steyn 2017).

Basic project management is implemented in two widely used forms, namely matrix and
pure project management. Why has project management been known by different
names, such as programme management or systems management? Which two features
do all forms of project management share, regardless of their names? The different forms
of project management may also differ in specific project environments (e.g. government).
Different forms of project management can be found in varying industrial settings (e.g.
construction) and varying sectors (e.g. the service sector and public sector).

It is therefore incorrect to associate projects only with construction or R&D. With

reference to the typology of projects, remember to distinguish between project-driven
and non-project-driven organisations. You may also use terminologies such as projectised
organisations versus the conventional functional organisations. There is a variety of matrix
organisations (weak versus strong matrix organisations). But the message of this section is
that all of these organisational forms are applicable in several project environments.

Activity 1.2

Disaster recovery at Marshall fields

Study case 1-1 in the textbook (Nicholas & Steyn 2017) and give concise answers
to the following two questions:
(1) In what ways is the flood disaster recovery effort a project?
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 (2) In what ways do the characteristics of crisis management, as described in
this case, correspond to those of project management?
Guidelines on answering the questions:
The flood response effort was a complex undertaking that entailed risks and
uncertainties. The three dimensions of project work were: performance
(ensuring the safety of employees and customers before the store re-opened);
cost (minimising flood damage to store merchandise and capital investments by
carrying out tasks at a total cost less than what could be anticipated as a result
of inaction); and schedule (resuming normal operations within one week after
the flood). Since projects demand hands-on dynamics, short-term crisis
management typically embodies a management system conducive to the
effective implementation of projects.

1.11 PROJECT MANAGEMENT DYNAMICS

Study the section that follows.

It should be clear by now that project management is dynamic because change is

dynamic, projects are dynamic and the environments that need projects are all dynamic.
This section briefly provides the reasons why project management is seen as dynamic.

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1.11.1 The PMBOK demands a unique learning process
A unique learning process is demanded to master the PMBOK. Merely to read project
management texts or articles will not suffice. To educate project management students
by means of distance education (DE) to accomplish and obtain the required outcomes, on
this level of the NQF, demands a somewhat different and demanding learning process.
Besides the normal learning processes associated with Unisa, you will have to engage in
additional learning. By this we mean research, interviews, observation and any other
additional exposure (e.g. acquiring real-world, on-site project management experience,
both nationally and internationally).

The project management profession needs a strong foundation in the project

management philosophy. The profession also needs a well-defined (and documented)
PMBOK, multiskilling, experience and the right mindset (or attitude). Project management
is highly focused on human aspects such as teamwork (as opposed to working groups),
interpersonal skills, power, leadership and conflict management. Project management
also demands certain technical skills. These refer to practical experience, engineering, the
application of tools, management by facts, effective scheduling, effective costing,
specifications-driven activities and so forth.

Project management therefore demands analysis, synthesis, integration and systems

thinking. It requires an ability to recognise the project, the team and the project
management system, and to break this information up into constituent parts and describe
the relationships between these parts. Project managers must produce project products;
and they must have the ability to bring together information from various functional
sources to create a unique project. (Typical action verbs used are: construct, design,
develop, plan and produce.) The project management learning outcomes therefore need
to be classified to test the basic knowledge of the discipline, founded on the international
PMBOK, its application (applying principles and performing concrete project-related
actions), comprehension (the ability to recognise information in a different form), analysis,
synthesis and evaluation.

1.11.2 Project management can be flawed by seemingly unimportant

variables
Many managers are of the opinion that it is negative thinking to expect things to go wrong.
Others would say it is realistic, especially if one considers the typology of projects. Not
many projects are completed on time, within budget or with the same human resources
that started them. Project termination is very important since projects remain at 90 per
cent complete forever. When things are going well (on schedule, within budget and
according to specification), something might still go wrong.

The project management discipline is deceptively simple if a tools and techniques view
of the subject is taken. But there are too many variables that need to be anticipated
that crucially affect the success of projects. Projects can be technological successes

14 PRO4801⁄1/2021-2025
but economic disasters. Projects can be terminated with success in terms of time, cost
and performance, but at the same time may leave the project office or project team in
disharmony. For many reasons, understanding project management is not that simple.
Seemingly exciting projects may gain surprisingly large internal support and a similar
share of resources. Even experienced project managers may get it all wrong. This is why
we need to be realistic and depend on the well-developed PMBOK, additional
perspectives, cases and documented learning curves.

1.11.3 Projects have an inherent energy oriented to success

The bank sector and other non-project-driven organisations use project management to
increase productivity. The reasons are many, such as new ventures, creativity,
management by objectives, optimal utilisation of resources (infrastructure), uniqueness,
scope, challenge, reward, teamwork and other synergy possibilities. Projects may
therefore be of diverse character, ranging from constructing a bridge and a Concorde
aerospace project to a research project.

1.11.4 Operations managers (and others) can apply management by project

The dynamics of project management explains the approach called management by
project, which is followed when functional managers undertake several activities that are
unique and require cooperation from several parties. Projects are a type of operation (low
volume, high variety) and are therefore part of the operations management discipline.
Operations are generally categorised as continuous or intermittent systems. These
operations are projects, job shop operations, batch operations, service shops, mass
production systems and continuous production systems. All the operations managers of
these operation systems have to think project, since projects are not only for pure project-
driven organisations. Examples of projects in many other facets of contemporary
operations management are re-engineering projects, process re-layout efforts, product
design projects, supplier partnership projects, maintenance projects, MRP
implementation projects, ISO 9000 quality management system implementation projects
and any other tasks that are relatively large and complex.

1.11.5 Project quality management reveals a multitude of dynamic interfaces

Total quality management (TQM) teaches the importance of quality at the source. The
origins and the objectives of quality should be viewed holistically. The basic TQM
philosophy is that quality is multidimensional and should be managed organisation-
wide and continuously throughout the systems development cycle. A high-quality
project may be briefly described as one which is produced not only correctly (meeting
all performance standards) but also in the correct way. A project quality plan may
therefore have certain entry conditions, process conditions and exit conditions.
Concepts related to a holistic approach to project quality are: quality function
deployment (QFD); system testing (design tests and user tests); risk sources (hazards

15 PRO4801⁄1/2021-2025
causing uncertainties in the outcome of the project); technical risk; quality assurance
supervisors (as a project role); and technical performance measurement (TPM) as part
of project quality control.

1.11.6 The performance objectives in project management

The relative importance of the various performance objectives may differ for
different projects. Quality will be more important for a new aircraft, while time will be
more important for a special sports event. In operations management, we learn of
certain performance objectives such as quality, speed and flexibility. The performance
objectives in project management are slightly different. They are T, C and P (time, cost and
performance). Flexibility may be seen as a given (since projects are organic and dynamic
in nature), and speediness and dependability may be compressed into one performance
objective, namely time. Since quality refers to fitness for intended purpose, it may also be
referred to as performance in project management language.

1.11.7 Project integration management

Project organisations are characterised by their horizontality, incorporating horizontal
relations into the formal structure. They do this by means of certain functions or
integrators (matrix managers, project expeditors, task forces and others). To be organic, a
project organisation must have two properties:

– It must integrate subunits using horizontal relations.

– It must have organisation structures differentiated to suit the unique requirements of
the project and the environment.

Project integration management may seem to be without any structure, but figure 1.2
gives an overview of project integration and how the plan is developed, executed and
controlled through inputs, tools and outputs. Lesson 13 will elaborate on project
integration.

1.11.8 The nature and characteristics of projects and project management

are dynamic
Dynamics refer to change, energy, new happenings, challenge, conflict and results. These
are inherently part of projects. The characteristics of projects include a dynamic
management process. Projects are characterised by the following:
– Each project must have a defined starting point, a single definable purpose and a well-
defined end state.
– Projects are complex and need skills associated with multiple professions or functions.
– Projects are temporary, unique activities with something at stake.
– They are unfamiliar and possess elements of uncertainty and risk.
– Every project has several distinct project phases.
Project management has several transformation (input-output) value-adding processes.
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Each phase of the project life cycle has certain process groups, and these process groups
overlap (see figures 1.3 and 1.4). This is a part of project integration that indicates certain
dynamics. Project management can thus be viewed as dynamic owing to its unique
philosophy and form of management. Project management uses different forms of
organisation structure; it uses multiple professions; it timeshares resources; it does
parallel work execution of work packages; it usually involves status and substantial
stakes; and it is usually challenging, uncertain and complex. Project management also
depends on teams and the systems approach. It flourishes by means of milestone
management (management by objectives) owing to the constraints of TCP (time, cost,
performance). Other truths about project management are its organic nature; its
multidirectional flow of work; the importance of accurate estimation (anticipation,
planning and scheduling); its sharing of authority; its dependency on other sources of
power; and its view of project termination as just as important as project
commencement. Project management dynamics are also evident in interpersonal and
stakeholder relations, conflict management, time management, leadership, learning
curves, change agents and so forth.

Project management process groups form a logical grouping of project management

processes directed towards achieving a project objective. Process groups are independent
from the project life cycle. Each project has a specific objective, input-output process and
appropriate tools and techniques that are applied throughout the project life cycle. Hence
project management is dynamic and organic.

There are various ways in which project management process groups can be grouped.
Figures 1.3 and 1.4 below provide an example of project management process groups
(their interrelationship with the project life cycle and the ten knowledge areas – figure 1.3)
from the PMBOK. Figure 1.4 provides process group interactions during a project or a
phase.

Activity 1.3 PROJECT MANAGEMENT DYNAMICS

The role of a project manager is dynamic because the nature of project

management is dynamic. Prepare yourself to present a 20-minute paper on
project management dynamics by using the background of this lesson, your
own research material (case studies) and the following examples to get you
going:
Project managers should be able to tell a variety of stories. These stories
represent different cases of interesting projects. The stories usually
highlight project management dynamics. They provide project managers
with an easy and interesting way of learning more about their work. They
portray a managerial role which is iterative, interactive, dynamic and
intellectually challenging. Sometimes clients change requirements or do
not have the facilities ready for installation. Changing requirements
(specifications) at short notice creates problems. Other cases may report

17 PRO4801⁄1/2021-2025
 on staff changes, new contractors, changes in team spirit, resource delays
and even a new project manager assigned in the middle of a project.
Another case may report on undertakings which clearly mandate project
management, having a unique new character and requiring an
unprecedented magnitude of effort, as defined by the list of tasks.
To further your knowledge of project management dynamics, consider also
the life cycle of projects that fail in the final project termination phase –
almost like a boxer who wins all the rounds on points but ultimately loses
the fight on a knockout. The list of case study examples goes on and on,
each with a specific message, such as how the project succeeded, why it
failed or how it was saved. One such project disaster was caused by poor
information communication. One team had used English units (inches, feet,
pounds) while the other had used metric units (metres, grams). The result
was a $280 million loss.

CHECKLIST

Now that you have completed lesson 1 on what a project and project
management are, you should be able to do the following:
– Explain the background and beginning of projects (with reference to
examples of the age-old need for projects and the managerial ability of
leaders referred to in the Bible and the Egyptians who built the great pyramid
of Cheops).
– Classify an activity as a project by providing an explanation of the
characteristics of projects and an illustration of the typology of projects.
– Emphasise the need for project management and relate this to its response to
a changing environment.
– Explain the principles underlying the typology of projects.
– List the three-dimensional project goal and explain the possible trade-
offs between the three dimensions of project goals.
– Link the project management benefits with the three-dimensional
project goal.
– Briefly define the PMBOK and list the ten areas of project management
knowledge.
– Briefly define the PRINCE2 model, provide the five primary benefits of using
this model and list the model’s eight distinctive management processes.
– Analyse projects and project management by means of their characteristics.
– Demonstrate an understanding of project management as a special kind
of management.
– Discuss the evolution of project management and relate this discussion to
the four types of project managers.
– Justify the primary criteria to help decide when to use project management.
– Explain the concept management by project.
– Briefly outline the different forms of project management and the different

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 project environments or sectors.
– Develop a paper for a one-hour presentation on project management
dynamics. Divide your paper into the following three sections: (1) eight
reasons why project management is regarded as dynamic; (2) example cases
that illustrate project management dynamics with reference to activity 1.3.

SUMMARY

Project dynamics distinguishes project management from other forms of

management. This lesson establishes firm knowledge of this truth to set the
scene for your further studies. Project management has arisen from the need
for a managerial approach that can deal with the problems and take advantage
of the opportunities of modern society. The first lesson has dealt with project
management as a systems approach to management. We have seen that
project management applies to any temporary and goal-oriented activity (in
different environments and with different forms or organisation structures).
The next lesson of this topic will contribute further to an understanding of the
philosophy and concepts of project management by considering the relevance
of the systems idea to project management.

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Lesson 2
Systems approach and systems engineering

Key concepts

systems development cycle

project life cycle
conception phase
definition phase
execution phase
operation phase
project initiation
project feasibility
request for proposal (RFP)
project charter
project proposal
project contracting
subcontracting
negotiating the project
contract statement of work

AN OVERVIEW
Before we commence with the systems development cycle (topic 2), this lesson addresses
the remaining part of the first topic by discussing systems, systems thinking, the relevancy
of the systems approach to project management (projects as systems and project
management systems), system concepts, human organisations and systems engineering.
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2.1 INTRODUCTION IN THE PRESCRIBED BOOK

Read chapter 2 of the textbook (Nicholas & Steyn 2017).

2.2 SYSTEMS AND SYSTEMS THINKING

Study section 2.1 of the textbook (Nicholas & Steyn 2017).

Systems thinking is the opposite of analytical thinking, in which things are broken into
smaller parts. Systems thinkers see the big picture and focus on whole organisms. Project
managers need to integrate a chaotic situation to some degree of order. They need
systems thinking because it is a useful way of dealing with complex phenomena, such as
large projects. Note the different features of a system with reference to the definition of
a system.

2.3 SYSTEMS CONCEPTS AND PRINCIPLES

Study section 2.2 of the textbook (Nicholas & Steyn 2017) and note the 11
concepts and principles of systems.

Also view the typical organogram depicting subsystems (figure 2.1 in the textbook).
Systems have structure, and the project organisation, with its wide variety of
organisational designs, may be conceptualised as a hierarchical structure (figure 2.2 in
the textbook). Other structures can be life cycle or network structures.

2.4 HUMAN ORGANISATIONS (AND ENVIRONMENT) AS

INPUT-OUTPUT SYSTEMS

Study section 2.2 of the textbook (Nicholas & Steyn 2017).

Note the particular features that characterise human organisation systems.

Before we elaborate on the different types of project organisation in lesson 14, it is

necessary to indicate how organisation structure (organisation system) influences projects.
The PMBOK refers to organisation structures as spanning a spectrum from functional to
projectised. Refer to figure 2.1, which summarises the influence of organisational structure
on projects.

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Activity 2.1

Read section 2.2 of the textbook (Nicholas & Steyn 2017) and understand an
organisation as an input-output system (figure 2.4).

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19

Figure 2.1: Organisation structure influences on projects

Source: PMI (2000)

23
2.5 SYSTEMS APPROACH

Study sections 2.3 and 2.5 of the textbook (Nicholas & Steyn 2017).

Note the systems approach framework, the orderly way of appraisal (avoiding
tackling problems narrowly), systems models (to help understand systems) and the
systems life cycle. View the illustration of the systems approach in figure 2.3 in the
textbook. Finally study the section on the relevancy of the systems approach to
project management in terms of systems management and systems managers.

2.6 SYSTEMS ENGINEERING

This section only introduces systems engineering. The way to bring a whole system
into being and to account for its whole life cycle is systems engineering. Study
section 2.4 of the textbook (Nicholas & Steyn 2017) and note the definition of
systems engineering. Note the three dimensions of systems engineering in figure 2.6
in the textbook and the iterative cycle of modularisation.

CHECKLIST

Now that you have completed lesson 2, you should be able to do the
following:
– Demonstrate an understanding of systems thinking and the systems
approach to management by debating the claim that the systems
approach underlies the process of project management.
– Define a system, and explain the different system concepts
(terminologies) and principles.
– Explain organisations as open systems in terms of five features.
– Provide a complete systems approach framework by utilising system
concepts (e.g. objectives, subsystems, relationships and integration).
– Briefly explain the concept of systems engineering and illustrate the
dimensions of systems engineering by means of a figure.

SUMMARY

This concludes topic 1. We have seen that human organisations are open
systems and sociotechnical systems, organising social systems around a
specific core technology. Project management brings order and
structure to changing, chaotic and disorganised situations. This is done
through systems thinking and the application of the systems approach. In

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24
topic 2 we elaborate on this systems approach and specifically on the
systems life cycle.

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