Project Management Slovak University of Technology Faculty of Material Science and Technology in Trnava

Project Management

Slovak University of TechnologyFaculty of Material Science and Technology in Trnava

Definitions:

Project is time delimited effort that is done with only one goal to create unique result.

Software project is collection of activities, technical and operative, which are requested to assure conditions of project agreement.

Project management include using of knowledge, skills, equipments and techniques for project activities, with goals to achieve needs and expectations of project.

Project management

QualityAssu-rance

Development:analyse, design,implementation,

testing,integration

Change

mngmnt

Life cycle:Waterfall modell,RUP, ...

Cor

e W

orkf

low

s

Require-ments

Analyse DesignImple-

mentationTesting

Project Management

Configuration and Change Management

Quality Assurance

Training, ...

Supp

orti

ng W

orkf

low

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Successful project

Successful project is finished: Within the frame of specified time Within the frame of defined budget On requested performence level Result acceptance by customer Without any accidence in organisation With minimum abnormality from project layout

Processes of project management:

Processes are focused on work throughout project duration.

Initialization: recognition that project or phase can begin.Planning: creation and preservation of schema to ensure project run. Control: to provide that goal of project are executed.Execution: stuff coordination and other resources at the plan assurance.Completion: completion and acceptance of project.

Processes of management:

Initialization Planning

Control Execution

CompletionDocument flow

I. Software project planning .

The purpose of Software Project Planning is to establish reasonable plans for performing the software engineering and for managing the software project.

Software Project Planning involves developing estimates for the work to be performed, establishing the necessary commitments, and defining the plan to perform the work.


The software planning begins with a statement of the work to be performed and other constraints and goals that define and bound the software project.

The software planning process includes steps to estimate the size of the software work products and the resources needed, produce a schedule, identify and assess software risks, and negotiate commitments.


Iterating through these steps may be necessary to establish the plan for the software project (i.e., the software development plan).

This plan provides the basis for performing and managing the software project's activities and addresses the commitments to the software project's customer according to the resources, constraints, and capabilities of the software project.

Goals

Goal 1Software estimates are documented for use in planning and tracking the software project.

Goal 2Software project activities and commitments are planned and documented.

Goal 3Affected groups and individuals agree to their commitments related to the software project.

Ability to perform

Ability 1 - A documented and approved statement of work exists for the software project.

Ability 2 - Responsibilities for developing the software development plan are assigned.

Ability 3 - Adequate resources and funding are provided for planning the software project.

Ability 4 - The software managers, software engineers, and other individuals involved in the software project planning are trained in the software estimating and planning procedures applicable to their areas of responsibility.

Activities performed

Activity 1 - Software project planning is initiated in the early stages of, and in parallel with, the overall project planning.

Activity 2 - The software engineering group participates with other affected groups in the overall project planning throughout the project's life.

Activity 3 - Software project commitments made to individuals and groups external to the organization are reviewed with senior management according to a documented procedure.

Activity 4 - A software life cycle with predefined stages of manageable size is identified or defined.

Activity 5 - The project's software development plan is developed according to a documented procedure.

Activity 6 - The plan for the software project is documented.

Activity 7 - Software work products that are needed to establish and maintain control of the software project are identified.

Activity 8 - Estimates for the size of the software work products are derived according to a documented procedure.

Activity 9 - Estimates for the software project's effort and costs are derived according to a documented procedure.

Activity 10 - The project's software schedule is derived according to a documented procedure.

Activity 11 - Software planning data are recorded.

Verifying implementation

Verification 1 - The activities for software project planning are reviewed with senior management on a periodic basis.

Verification 2 - The activities for software project planning are reviewed with the project manager on both a periodic and event-driven basis.

Verification 3 - The software quality assurance group reviews and/or audits the activities and work products for software project planning and reports the results.

Planning tools

I. Net graphs

II. Segment graphs

I. Net graphs

PERT (EIN)– Program Evaluation and Review Technique – the method of evaluation and control of project – event in nod

PDM (AIN)– Precedence diagraming Method – the method of precedency diagram – activity in nod

AOA (ADM)– Activity on Arrow

activity

Typ of net graphs:

Event

What the net graph is

The net graph is visual displaying that connect project activities with the aim of display its interaction dependency.

Each activity has unions with former and following activities

- PERT diagram – combination of AIN and EIN

- Gantt diagram

Graphical convention :

A B3

A, B - activity3 – nod

A

B

C2

Fusion

DividingA

B

C7


R before S, T before U

R S

T U


R and T before S and U

R S

T U


R a T before S, T before U

R S

T U

Dummy activity,

lenght = 0

CPM (Critical Path Method )

CPM/PERT is based on the basis that a small set of activities, which make up the longest path through the activity network control the entire project.

If these "critical" activities could be identified and assigned to responsible persons, management resources could be optimally used by concentrating on the few activities which determine the fate of the entire project.

Non-critical activities can be rescheduled and resources for them can be reallocated flexibly, without affecting the whole project.

CPM (Critical Path Method ):

CPM/PERT have been useful in planning costs, scheduling manpower and machine time.

CPM/PERT can answer the following important questions:

What will be the project duration?

What are the critical activities which could delay the entire project

if they were not completed on time?

What is the current status of the project i.e. Is the project on

schedule, behind schedule or ahead of schedule?

If the project has to be finished earlier than planned, what is the best

way to do this at the least cost?

Procedure:

1. Specify the Individual Activities:

From the work breakdown structure, a listing can be made of all the activities in the

project. This listing can be used as the basis for adding sequence and duration

information in later steps

2. Determine the Sequence of the Activities:

Some activities are dependent on the completion of others. A listing of the immediate

predecessors of each activity is useful for constructing the CPM network diagram.

3. Draw the Network Diagram:

Once the activities and their sequencing have been defined, the CPM diagram can be

drawn. CPM originally was developed as an activity on node (AON) network, but

some project planners prefer to specify the activities on the arcs.

4. Estimate Activity Completion Time:

The time required to complete each activity can be estimated using past

experience or the estimates of knowledgeable persons. CPM is a

deterministic model that does not take into account variation in the completion

time, so only one number is used for an activity's time estimate

5. Identify the Critical Path:

The critical path is the longest-duration path through the network. The

significance of the critical path is that the activities that lie on it cannot be

delayed without delaying the project. Because of its impact on the entire

project, critical path analysis is an important aspect of project planning

TERMINOLOGIES:

Earliest Start: The earliest time at which the activity can start given that its precedent activities must be completed first. It is the value in the rectangle near the tail of each activity

Earliest Finish: This is equal to the earliest start time for the activity plus the time required to complete the activity i.e. Earliest Start + Duration

Latest Finish: The latest time at which the activity can be completed without delaying the project. It is the value in the diamond at the head of each activity

Latest Start: It is equal to the latest finish time minus the time required to complete the activity i.e.Latest Finish - Duration

Question:

What happened if some of activity will delay?How the whole length of project will change?

It is possible to discover it by using CPM method.

Critical Path: The critical path is the path through the project network in which none of the activities have slack, that is, the path for which ES=LS and EF=LF for all activities in the path.

(1,6) (1,9)(10,13)(14,25)(14,23)(24,29)(30,36)

Dummy activity,length = 0

A=6 B=9C=4D=12E=10F=6G=7

A

B

C71

2

3

4

56

DE

F

G

(4,9) (1,9)(10,13)(18,29)(14,23)(24,29)(30,36)

3

0

0

0

0

4 0

3 = reserveExample.

(1,6) (4,9)

(1,9) (1,9)

A

B

C71

2

3

4

56

DE

F

G

Critical path – there is no time reserve !

II. Segment graphs

- graphically represent the time plan of activities or tasks.

- there is seen, which activities are in ample time besides the

plan and which has delay - sometimes are called Gantt diagram

- segment graphs are not suitable for project control

- segment graphs are suitable as a pointer than a planning tool

Activity

A

B

C

D

Now

Time

Plan

80%

75%

Degree of finalization

realization

60%

WBS is a fundamental project management technique for defining and organizing the total scope of a project, using a hierarchical tree structure.

The first two levels of the WBS (the root node and Level 2) define a set of planned outcomes that collectively and exclusively represent 100% of the project scope.

At each subsequent level, the children of a parent node collectively and exclusively represent 100% of the scope of their parent node.

Work Breakdown Structure

The 100% Rule

One of the most important WBS design principles is called the 100% Rule.

The 100% Rule...states that the WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management.

Level of detail

A question to be answered in the design of any WBS is when to stop dividing work into smaller elements.

A common way of deciding the detailing level is the time between status reports/meetings.

If the team reports bi-weekly the largest work package should be 80 hours. Then at reporting time a package is either not started, in progress, finished or late. This way makes it easy catching delays.

Decomposition Considerations (Breadth vs. Depth)

WBS will tend to be most useful for project management when its breadth and depth are thoughtfully balanced.

A common pitfall is to inadequately group related elements, resulting in one or more nodes of the WBS becoming "too wide" to support effective management.

WBS coding scheme

It is common for WBS elements to be numbered sequentially to reveal the hierarchical structure.

For example 1.3.2 Rear Wheel identifies this item as a Level 3 WBS element, since there are three numbers separated by a decimal point.A coding scheme also helps WBS elements to be recognized in any written context.

WBSNet graph or Gantt

Timetable + resource allocating

WBS- as a part of planning techniques

1

Task xxx

Cost assessment: - working- overhead- nonworking- general- other

Task xxx

Reality Plan Diference Working – – –Overhead – – –Nonworking – – –General – – –Other – – –

Plán

Reality:

- reports- orders- accounting.

1

The project truncating.

Example No.2

Activity Description Predeces. TimeA ... - 6B … - 9C … A, B 4D … C 12E … C 10F … E 6G … C 8H … D, F, G 6I … D, F 7J … H 4K ... I, J 4

A

B

C

7

1

2

3

4

56

DE

F

G

33

4

8

8

9

10

(Earliest Start, Earliest Finish)(Latest Start, Latest Finish)

(1,6)(4,9)

(1,9)(1,9)

(10,13)(10,13)

(14,23)(14,23)

(24,29)(24,29)

(14,25)(18,29)

(14,21)(22,29) (30,35)

(30,35)

(33,39)(30,36)

(36,39)(36,39)

(40,43)(40,43)

I

H

J

K

A

B

C

7

1

2

3

4

56

DE

F

G

33

4

8

8

9

10

(1,6)(4,9)

(1,9)(1,9)

(10,13)(10,13)

(14,23)(14,23)

(24,29)(24,29)

(14,25)(18,29)

(14,21)(22,29) (30,35)

(30,35)

(33,39)(30,36)

(36,39)(36,39)

(40,43)(40,43)

I

H

J

K

=> Our aim is to truncate length of project.

One of possibilities is increase costs into project.(This is manager decision.)

Procedure:

• to choose activity that is necessary to truncate.• choose critical activity• from critical activities, choose activity with smallest IPN

Task: truncate project about 11 wks to 32.

Activity NČT NN SČT NSA 6 1000 4 1900B 9 1000 5 2600C 4 1500 2 3100D 12 2000 8 3200E 10 5000 5 7250F 6 3000 4 4100G 8 8000 5 10250H 6 5000 3 7100I 7 10000 4 11800J 4 4000 2 4800K 4 5000 3 6000

NČT – Planed time, NN – Cost (planed time)SČT - Shorten time, NS – Cost (shorten time)

Is necessary to calculate IPN – growth index costs.

SCTNCT

NNNSIPN

NČT – Planed time, NN – Costs (planed time)SČT - Shorten time, NS – Costs (shorten time)

Activity Max time of reduction IPN Critical PathA 2 450 3B 4 400 kC 2 800 kD 4 300 4E 5 450 kF 2 550 kG 3 750 8H 3 700 kI 3 600 3J 2 400 kK 1 1000 k

A2/6

B4/9

C2/4

7

1

2

3

4

56

D4/12

E5/10

F2/6

G3/88

9

10

I3/7

H3/5

J2/4

K1/4

A2/6 A - activity2 - max reduction6 - time of duration

Procedure:

• choose critical activity• from critical activities, choose activity with smallest IPN 1. step : we choose activity B2. step : truncate it about 3 wks3. step : calculate truncate

(time of truncate x IPN = costs)

3 x 400 = 12004. step : truncating of project : 43-3=40 wks

Procedure will be repeated for J activity:

1. step : we choose activity J2. step : truncate it about 2 wks3. step : calculate truncate

(time of truncate x IPN = costs) 2 x 400 = 800

4. step : truncating of project : 40-2=38 wks

1. step : we choose activity E2. step : truncate it about 4 wks (D become critical)3. step : calculate truncate



Procedure will be repeated for E activity:

1. step : we choose activity H2. step : truncate it about 1 wks (I become critical)3. step : calculate truncate



Procedure will be repeated for H activity:

1. step : we choose activity D and E – it is parallel2. step : truncate it about 1 wks (E can truncate only about 1)3. step : calculate truncate

(time of truncate x IPN = costs) 1 x (300+450) = 750


Procedure will be repeated for D and E activity:

The result of truncating is:

• project length = 32 wks• total costs of truncating

1200+800+1800+700+750= 5250• total costs of project

45500 + 5250 = 50750

Rules:

• The parallel activities can truncate until parallel activity

become critical.

• Then have to truncate both (costs are counted)

• The critical parallel activities can truncate until is possible

max truncating of one activity to zero.

• this method outgoing from qualified estimate

B 4 / 9

7

1

2

3

4

56

8

9

10

B 1 / 6

- New critical paths

G

B2/6 B - activity2 - max reduction6 - time of duration

Activity Duration NMZ NPZ NMK NPK KPA 6 0 0 6 6 krB 6 0 0 6 6 krC 4 6 6 10 10 krD 11 10 10 21 21 krE 5 10 10 15 15 krF 6 15 15 21 21 krG 8 10 13 18 21 3H 5 21 21 26 26 krI 7 21 21 28 28 krJ 2 26 26 28 28 krK 4 28 28 32 32 kr

NMZ - Earliest Start, NPZ - Latest StartNMK - Earliest Finish, NPK - Latest Finish

Time estimating – PERT methods

In PERT activity durations are estimated based on three possible completion assumptions:

- Most optimistic completion time - To.- Most pessimistic completion time - Tp.- Most likely completion time - Tm.

There are 2 assumptions while combinig the above three estimates into a single expression:

- The standard deviation, is one-sixth of the time requirement range. This assumption stems from probability theory where the end points of a curve are three standard deviations from the mean.- Probability distributions of activity durations can be expressed as beta distrubiton

Te –expected time

196

40 16 *4 10 Te

6

T 4T T T pmo

e

The expected time between events can be found from the expression:

Probability of Accomplishment – σ

- If the decision maker is statistically sophisticated, he can examine the standard deviations and the probability of accomplishment data based on these assumptions.

- The total path standard deviation is calculated bythe square root of the sum of the squares of theactivity standard deviations using the followingexpression:

Example:

2. Pragmatik time estimating

- this method go out from common arbitration time estimating upon skills

Main steps:

1. On the ground of realized projects estimate time, costs, resources, …

2. Decide how much more is current project complicated – is necessary to determine index

3. Multiply existing budget with index

Resource management

is the efficient and effective deployment of an organization's resources when they are needed.

Such resources may include financial resources, inventory, human skills, production resources, or information technology(IT).

Resource management is a key element to activity resource estimating and project human resource management.

Both are essential components of a comprehensive project management plan to execute and monitor a project successfully.

HR (Human Resource) Management

- the science of allocating human resources among various projects or

business units, maximizing the utilization of available personnel

resources to achieve business goals; and performing the activities that

are necessary in the maintenance of that workforce through

identification of staffing requirements, planning and oversight of

payroll and benefits, education and professional development, and

administering their work-life needs.

- the efficient and effective deployment of an organization's personnel

resources where and when they are needed, and in possession of the

tools, training and skills required by the work.

Resource allocation. In strategic planning, a resource allocation decision is a plan for using

available resources, for example human resources, especially in the near term, to achieve goals for the future.

It is the process of allocating resources among the various projects or business units.

Resource allocation. The plan has two parts:

Firstly, there is the basic allocation decision and secondly there are contingency mechanisms.

The basic allocation decision is the choice of which items to fund in the plan, and what level of funding it should receive, and which to leave unfunded: the resources are allocated to some items, not to others.

There is a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available; and there is a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.

Profile = is it a graph of resource requirements in

dependence on time.

(is it created basically on net graph or Gantt diagram.)

D(2)

A(3)

8

B(5)

8

C(3) E(1)2

21

Wks

Human resources

A B2

4

C D E

C D E

4

6

8

8 12 16

Requirement of 6 employee Requirement of 8 employee

(#) = Nr of employee

A

Z

B

C Z

time

Hum

an re

sour

ces

Z can be moved to preferable posittion

Profile flatten

In the firm, there is available 9 programmers.

After creating the profile, there rise the following problem:

(We are considering Earliest Start )

9 Quality of profile –

the bigger dispersion, the worse profile

3

Solution:

- give the plan bigger attention

- move task F about one week (isn't it on critical path)

- use overtime work, change of planned holidays

- use on this job analytics or other highly qualified person

- admit to firm a new worker – on the part time job or other

- change availability of resources

- change timing – to fast critical path

The cost estimation

Project controls are systems used to plan, schedule, budget, and measure the performance of a project.

The cost estimation package is one of the documents that is used to establish the baseline for project controls.

The cost estimation package is developed primarily for establishing the project budget and for providing the appropriate documentation and justification for a funding request.

Once the project is funded, this package is not filed away. It becomes the baseline or target against which the performance of the project/program can be controlled and compared.

By comparing the baseline with the actual performance, deviations from the baseline can be identified and corrected before they cause an impact on the project.

The schedule in the cost estimation package represents the same timeframe as the estimate.

Therefore, any change in this schedule could affect the cost of the project/program.

Thus, management can compare the baseline schedule to the actual schedule to identify scheduling problems or changes and any associated cost updates.

The WBS and the organization of the budget cost estimate included in the cost estimation package set the precedence for all estimates throughout the life of the project.

The same organization will be used by project controls so any cost changes may be easily tracked against the baseline WBS element.

ESTIMATING METHODS

The following briefly describes techniques used to estimate:

A. Bottoms-Up Technique

Direct labor, equipment, and overhead costs are derived and added.

This technique is used as the level of detail increases as the project develops.

B. Specific Analogy Technique

Specific analogies depend upon the known cost of an item used in prior systems as

the basis for the cost of a similar item in a new system.

C. Parametric Technique

Parametric estimating requires historical data bases on similar systems or

subsystems. Data is derived from the historical information or is developed from

building a model scenario.

D. Cost Review and Update Technique

An estimate is constructed by examining previous estimates of the same project for

internal logic, completeness of scope, assumptions, and estimating methodology

and updating them with any changes.

E. Trend Analysis Technique

A contractor efficiency index is derived by comparing originally projected contract

costs against actual costs on work performed to date. The index is used to adjust

the cost estimate of work not yet completed.

F. Expert Opinion Technique

When other techniques or data are not available, this method may be used. Several

specialists can be consulted repeatedly until a consensus cost estimate is

established.


Control Execution


II. Project execution.

The base process of project execution:

-Execution of project plan – i.e. realization of project plan by performing of individual planned activities

II. Project execution.

Supporting processes of project execution:

- Quality assurance – the regular evaluation of project execution from view of quality assurance

- Team evolution – evolution of specialized skills with aim of team productivity increasing

- Information distribution – information accessibility into all who need it in required time

- Choose of resource – choose from prospective suppliers

- Contract administration – provide and keep contact with supplier

The project manager coordinate and realize :

- task allocation

- priority setting

- jurisdiction delegation

- watching of job progress in the project

- decision about important resources allocation

III. Project control.


Control Execution


Base processes of project control:

- Product review – collecting and distributing info about project progress

-Change management – coordination of changes within entire project

III. Project control.

Change management is the process of developing a planned

approach to change in an organization.

Typically the objective is to maximize the collective efforts

of all people involved in the change and minimize the risk of

failure of implementing the change.

The discipline of change management deals primarily with

the human aspect of change, and is therefore related to pure

and industrial psychology.

There are six main activities, which jointly form the change management process.

They are:

- Identify potential change - Analyze change request- Evaluate change, - Plan change, - Implement change and - Review and close change

Role Description

Customer

The customer is the role that requests a change due to problems encountered or new functionality requirements; this can be a person or an organizational entity and can be in- or external to the company that is asked to implement the change.

Project manager

The project manager is the owner of the project that the CHANGE REQUEST concerns. In some cases there is a distinct change manager, who in that case takes on this role.

Change committee

The change committee decides whether a CHANGE REQUEST will be implemented or not. Sometimes this task is performed by the project manager as well.

Change builder

The change builder is the person who plans and implements the change; it could be argued that the planning component is (partially) taken on by the project manager.

Activities are executed by four different roles:

Change management principles

1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organisational).

2. Understand where you/the organisation is at the moment.

3. Understand where you want to be, when, why, and what the measures will be for having got there.

4. Plan development towards above No.3 in appropriate achievable measurable stages.

5. Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible.

Organization structures.

Line structure:

Each subordinate has a only one superior.

Project manager

Team leader Team leader

Pers 1 Pers 2 Pers n Pers 1 Pers 2 Pers m

Line structure with staff unit:

Project manager

Team leader Team leader

Pers 1 Pers 2 Pers n

Pers 1 Pers 2 Pers m

staff unit

staff unit

Top management

Project manager A

Senior programmer Consultant

Programmer

Program mer

Project manager B o o o o

o o o o

Example:

Project structure

PM

Pers 1 Pers 2 Pers n

Coordinator of project

Project structure with special group

Project leader B

Analyse, Design Implementation

Pers 1 Pers 2 Pers n Pers 1 Pers 2 Pers m

Project leader A

PM

Testing

Pers 1

Pers 2

Pers p

FUNCTIONAL ORGANIZATION.

Functional organizations are segmented by key functions.

For example, activities related to production, marketing, and finance might be grouped into three respective divisions.

Within each division, moreover, activities would be departmentalized into sub-departments.

The chief advantage of functionally structured organizations is that they usually achieve a fairly efficient specialization of labor and are relatively easy for employees to comprehend.

In addition, functional structures reduce duplication of work because responsibilities are clearly defined on a company-wide basis.

However, functional division often causes departments to become short-sighted and provincial, leading to incompatible work styles and poor communication.

DIVISIONAL ORGANIZATION.

Companies that employ a product or divisional structure, by contrast, break the organization down into semiautonomous units and profit centers based on activities,or "projects," such as products, customers, or geography.

Regardless of the project used to segment the company, each unit operates as a separate business. For example, a company might be broken down into southern, western, and …

Or, it might create separate divisions for consumer, industrial, and institutional products.

One benefit of product or project departmentalization is that it facilitates expansion (because the company can easily add a new division to focus on a new profit opportunity without having to significantly alter existing systems).

MATRIX ORGANIZATION.

Matrix management structures combine functional and product departmentalization.

They simultaneously organize part of a company along product or project lines and part of it around functional lines to get the advantages of both.

Along the left side of the same table would be different projects.

Within the matrix, each of the product groups would intersect with each of the functional groups, signifying a direct relationship between product teams and administrative divisions.

In other words, each team of people assigned to manage a product group might have an individuals who also belonged to each of the functional departments.

FUNCTIONAL MANAGERS

AnalyseAnalyse TestTestImplement.Implement.DesignDesign

PROJECT

APROJECT

A

PROJECT C

PROJECT C

PROJECT B

PROJECT B

PROJECT D

PROJECT D

CEOCEO

PR

OD

UC

T /

PR

OJE

CT

MA

NA

GE

RS

Cross-functional team

Employees with

two “bosses”

Matrix structure

Matrix structure

Project manager Functional manager

- Controls what to do - knows what to do and manage it (content) - how to do it- When is necessary to - where the task will be done perform task- How important is task - decide who realize the task-How many resources - watch the stuff and their activitiesis available

Project manager and Functional manager are partners !

ADVANTAGES

Efficient way to utilize highly specialized skills Minimal supervision Can be fluid as people come and go from teams Effective for rapid product development,

innovation, and market responsiveness

DISADVANTAGES

Highest bureaucratic costs Two-boss conflicts Complexity Double learning curve for employees Staff mobility can create confusion and

disruption of productivity

Projects in Controlled Environments (PRINCE) - is a project

management methodology. It covers the management, control

and organisation of a project.

“PRINCE2” is a registered trademark of the U.K.'s Office of

Government Commerce (OGC).

Methodology PRINCE2

PRINCE2 is derived from the earlier PRINCE technique, which was initially

developed in 1989 by the Central Computer and Telecommunications Agency

(CCTA) as a UK Government standard for information systems (IT) project

management; however, it soon became regularly applied outside the purely

IT environment.

PRINCE was first developed by the CCTA, now part of the OGC, in 1989

as a UK Government standard for IT project management.

Initially developed only for the need of IT projects, the latest version,

PRINCE2, is designed for all types of management projects.

Next figure shows the processes involved in managing a PRINCE2 project

and how they link with each other, creating the normal content of a

PRINCE2 project.

Overview of the methodology

PRINCE2 is a process-driven project management method which contrasts with reactive/adaptive methods. PRINCE2 defines 45 separate sub-processes and organizes these into 8 processes as follows:

- Starting Up a Project (SU) - Planning (PL) - Initiating a Project (IP) - Directing a Project (DP) - Controlling a Stage (CS) - Managing Product Delivery (MP) - Managing Stage Boundaries (SB) - Closing a Project (CP)

Starting up a project (SU)

In this process the project team is appointed and a project brief (describing, in outline, what the project is attempting to achieve and the business justification for doing so) is prepared.

In addition the overall approach to be taken is decided and the next stage of the project is planned.

Once this work is done, the project board is asked to authorize the next stage, that of initiating the project.

Starting up a project (SU)

SU1 Appointing a Project Board Exec and Project Manager

SU2 Designing a Project Management Team

SU3 Appointing a Project Management Team

SU4 Preparing a Project Brief

SU5 Defining Project Approach

SU6 Planning an Initiation Stage

Planning (PL)

PRINCE2 advocates product based planning which means that the first task when planning is to identify and analyse products.

Once the activities required to create these products are identified then it is possible to estimate the effort required for each and then schedule activities into a plan.

There is always risk associated with any work and this must be analysed.

Finally, this process suggests how the format of plans can be agreed and ensures that plans are completed to such a format.

Planning (PL)

PL1 Designing a Plan

PL2 Defining and Analysing Products

PL3 Identifying Activities and Dependencies

PL4 Estimating

PL5 Scheduling

PL6 Analysing Risks

PL7 Completing a Plan

Initiating a project (IP)

This process builds on the work of the Start Up (SU) activity and the project brief is augmented to form a Business Case.

The approach taken to ensure quality on the project is agreed together with the overall approach to controlling the project itself (project controls).

Project files are also created as is an overall plan for the project.

A plan for the next stage of the project is also created. The resultant information can be put before the project board for them to authorize the project itself.

Initiating a project (IP)

IP1 Planning Quality

IP2 Planning a Project

IP3 Refining the Business Case and Risks

IP4 Setting up Project Controls

IP5 Setting up Project Files

IP6 Assembling a Project Initiation Document

Directing a project (DP)

These sub-processes dictate how the Project Board should control the overall project. As mentioned above, the project board can authorise an initiation stage and can also authorize a project.

Directing a Project also dictates how the project board should authorize a stage plan, including any stage plan that replaces an existing stage plan due to slippage or other unforeseen circumstances.

Also covered is the way in which the board can give ad hoc direction to a project and the way in which a project should be closed down.

Directing a project (DP)

DP1 Authorising Initiation

DP2 Authorising a Project

DP3 Authorising a Stage or Exception Plan

DP4 Giving Ad Hoc Direction

DP5 Confirming Project Closure

Controlling a stage (CS)

PRINCE2 suggests that projects should be broken down into stages and these sub-processes dictate how each individual stage should be controlled.

It also specifies the way in which progress should be monitored and how the highlights of the progress should be reported to the project board.

A means for capturing and assessing project issues is suggested together with the way in which corrective action should be taken.

It also lays down the method by which certain project issues should be escalated to the project board.

Controlling a stage (CS)

CS1 Authorising Work Package

CS2 Assessing Progress

CS3 Capturing Project Issues

CS4 Examining Project Issues

CS5 Reviewing Stage Status

CS6 Reporting Highlights

CS7 Taking Corrective Action

CS8 Escalating Project Issues

CS9 Receiving Completed Work Package

Managing product delivery (MP)

This process consists of three sub-processes and these cover the way in which a work package should be accepted, executed and delivered.

Managing product delivery (MP)

MP1 Accepting a Work Package

MP2 Executing a Work Package

MP3 Delivering a Work Package

Managing stage boundaries (SB)

The Controlling a Stage process dictates what should be done within a stage, Managing Stage Boundaries (SB) dictates what should be done towards the end of a stage.

Most obviously, the next stage should be planned and the overall project plan, risk log and business case amended as necessary.

The process also covers what should be done for a stage that has gone outside its tolerance levels.

Finally, the process dictates how the end of the stage should be reported.

Managing stage boundaries (SB)

SB1 Planning a Stage

SB2 Updating a Project Plan

SB3 Updating a Project Business Case

SB4 Updating the Risk Log

SB5 Reporting Stage End

SB6 Producing an Exception Plan

Closing a project (CP)

This covers the things that should be done at the end of a project. The project should be formally de-commissioned (and resources freed up for allocation to other activities), follow on actions should be identified and the project itself be formally evaluated.

CP1 Decommissioning a Project

CP2 Identifying Follow-on Actions

CP3 Project Evaluation Review

PRINCE2 Advantages

PRINCE2 is a structured approach to project management.

It provides a Method for managing projects within a clearly defined framework.

Prince2 describes procedures to coordinate people and activities in a project, how to

design and supervise the project, and what to do if the project has to be adjusted

if it doesn’t develop as planned. In the method each process is specified with its

key inputs and outputs and with specific goals and activities to be carried out,

which gives an automatic control of any deviations from the plan.

PRINCE2 Advantages

Divided into manageable stages, the method enables an efficient control of resources.

On the basis of close monitoring the project can be carried out in a controlled

and organized way.

Being a structured methodology widely recognised and understood,

Prince2 provides a common language for all participants in the project.

The various roles and responsibilities involved in a project are fully described

and are adaptable to suit the complexity of the project and skills of the organisation.

Documents

Project Management Slovak University of Technology Faculty of Material Science and Technology in Trnava