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THE SUCCESSFUL ONO F
PROJECT MANAGEMENT IN A FMCG
1INIDUSTRY ILY MEANS OF A CONTEMPORARY
SYSTEMS APPROACH
BY
SHAM VNHAL JAYRAM
DISSERTATION
submitted in compliance with the requirements for the
MASTE ;": 'S DEG
EE USINESS ADMINISTRATION 11:
offered by
TECHNIK N WITWATERSRAND, MANAGEMENT
UNIT
and validated and conferred by the
UNIVEm:SITY OF WALES
SUPERVISOR: RWE VAN DE
DATE OF SU tMISSION: JULY 2001
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aliVyATERS,PAND
Deekrattion
I hereby declare that this Dissertation is my own unaided work. This Dissertation is
submitted in compliance with the requirements for the Master's Degree in Business
Administration offered by the Technikon Witwatersrand and validated and conferred
by the University of Wales. It has not been submitted before for any other degree or
any other examination at any other university.
Shahir Vishal Jayram
Monday, 30 July 2001
It
Dedication
To my Roving Dad, Motillan Jayram,
my friend and Guru,
who taught me weRD
the meaning of the words "pen -severance and persistence".
This has been a great honour to share this achievement with my Dade
iii
Nameste
Ac ut ement.
Thank you to all those individuals that provided assistance to myself in one form or
another, while I researched and wrote this dissertation.
iv
V
Table of Contents
Tableof Contents 000000.00000000000000000000000000.000.0000000000000000.000000v
Li Introduction 1
L2 1:: ac (ground to Project Management in a IFMCG ............ ........ ......... ......... ...... ............ 3
1.3 Aim 3
L4 Objective
1.5 teilning Concepts 4
1.6 Limitations 4
1.7 Vallue of Research 5
1 1 .8 Layout of eseareb Report 5 1.8.1 Chapter 1 5 1.8.2 Chapter 2 5 1.8.3 Chapter 3 6 1.8.4 Chapter 4 6 1.8.5 Chapter 5 6
1 1:
Ch pter 2 — Literature
review 0000000000000000000.000000000 ,000000000007
2.1 Ma agement functions 2.1.1 The Classicall/Traditional School 7 2.1.2 The Empirical School 7 2.1.3 The t ehaviouratll School 8 2.1.4 The Decision Theory School 8 2.1.5 The Management Systems School 8
2.2 Project 'life cycles 9 2.2.1 Kerzner's Five Stages of the Life Cycle 9 2.2.2 Shtub et all's Life cycle of a project 13 2.2.3 Turner's Project Life Cycles 17 2.2.4 Mayllor's Project Life cycles 118 2.2.5 Project Management tody of Knowledge's Project Life Cycle 21
vi
2.3 Life Cycle Leadership 24 2.3.11 Situational Leadership 24 2.3.11.1 Telling 25 2.3.1.2 Selling 26 2.3.1.3 Participating 26 2.3.1.5 Conclusion 27 2.3.2 Authority and I'' esponsnbnllntty 27
2.4 Planning, Organising, Controlling and Directing 31
2.4.1 IPilanning 31 2.4.1.1 Why plan? 311 2.4.11.5 Managing the planning process 42
2.4.2 Organising OOOOOO .0 OOOOOOOO OOOOOOOOOOOOOOOOO OOOOOOOOO .......... OOOOO .......43 2.4.11 The Need for Organising 43 2.4.2.2 Getting Organised 43 2.4.2.3 Matrix Irganisation 45 2.4.2.4 Advantages of a matrix organisational form 4$ 2.4.2.5 IPisadvantages of a matrix organisational form 49 2.4.2.6 Project Organising 50
2.4.3 Controlling 51 2.4.3.1 Task control! 52
Detailed functional objectives 52 Quality inspections 53 Work orders 53
2.4.4 Directing 54
2.5 Define the scope of work for the project 56
2.6 Commissioning 57
2.7 Takeover 58 2.7.1 Conclusions 60
2.8 Summation of Literature Study 61 2.8.1 Phase 1 Conceptual Design 61 2.8.2 Phase 2 tetailed Design 62 2.8.3 Phase 3 Production 63 2.8.4 Phase 4 4 perational 63 2.8.5 Phase 5 Divestment 64 2.8.6 Phase 6 Assessment 64 2.8.7 Planning Control 65
vii
2.8.8 Management Style 66
Chapter 3 Met lodollogy 000000000000000000.0.00000.00000000000000000.00.0067
3.1 Introduction 67
3.2 African Products Project Structure.......... ....... ............. .68
3.3 Reasons for choosing questionnaires 68
3.4 Criteria for selection of respondents 69
3.5 Questionnaires 70 3.5.1 Inexperienced Project Managers' Questionnaire 70 3.5.2 Experienced Project Managers' Questionnaire 71
3.6 Sampling 72
3.7 Data analysis 72
C lapter 4
esuilts 00.000.0000000000000.000000000.00.000000000000000000000000 74
4.1 Survey Results — Inexperienced Project Managers....... 74 4.1.1 Questions 74 4.1.2 Question 2 75 4.1.3 Question 3 76 4.1.4 Question 4 78 4.1.5 Question 5 79 4.1.6 Question 6 81 4.1.7 Question 7 82
4.2 S z rvey r':esults — Experienced Project Ma gers 84 4.2.1 Phase 1 Conceptual Design 84 4.2.2 Phase 2 letailed esign $6 4.2.3 Phase 3 Production Phase $8 4.2.4 hase 4 Operational 89 4.2.5 Phase 5 rlbivestment 90 4.2.6 Phase 6 Assessment 92 4.2.7 Planning & Controlling 93 4.2.8 Management Style 95
Chapter 5 Conclitutsften
ecommerrndations000.0000.000.0.0.98
5.1 Conclusion of Surveys 98
viii
5.2 Recommendations 103
60
fiblliography 0000000000000000000000000000000000000000000000000000000000000 11 04
'70 Appendfices00000000.0.0000000000000.00.0000.000.000000.000.0000.000000000.001[07
Appendix A 107 Appendix 126
Table of Figures
Figure 1.1 Constraints of Project Management 2
Figure 2.1 Shtub et al's Phases of a Project 13
Figure 2.2 Deming's PDAC 18
Figure 2.3 (a) and (b) Maylor's Project Life Cycle 19
Figure 2.4 Typical Project Life Cycle — PMBOK 22
Figure 2.5 Construction Project Life Cycle - PMBOK 22
Figure 2.6 Hersey & Blanchard Leadership Styles 24
Figure 2.7 The Project Planning and Control System 34
Figure 2.8 Typical Matrix Organisation 46
TECHNIKON WITINKIERSRAND
Table of Tablies
LIBRARY
Table 2.1 Turner's Project Life Cycles 17-18
Table 2.2 Maylor's Project life Cycles 20
Table 2.3 Concerns of Functional and Project Managers 47
Table 4.1 Responses to Question 1 74
Table 4.2 Various Phases of a Project 75
Table 4.3 Utilisation of the Contemporary Systems Approach to Project
Management 77
Table 4.4 Pitfalls to using the Contemporary Systems Approach to Project
Management 78
Table 4.5 The Importance of Planning and Control 80
Table 4.6 Responses to Deviations 81
Table 4.7 Preference of Management Style 82
Table 4.8 Responses to Phase 1 84
Table 4.9 Responses to Phase 2 86
Table 4.10 Responses to Phase 3 88
Table 4.11 Responses to Phase 4 89
Table 4.12 Responses to Phase 5 90
Table 4.13 Responses to Phase 6 92
Table 4.14 Responses to Planning 93
Table 4.15 responses to Controlling 94
Table 4.16 Responses to Management Style 96
ix
Chapter R
1
It a e .&ground
Li ffntroduction
"Project management provides one with the tools, knowledge and techniques for
managing, defining, planning, organising, controlling and closing a project. A project has
a defined start and stop date. Certain steps must be performed in a logical sequence, not
randomly as it is subject to a series of constraints imposed upon it, such as cost, budget
and schedule" (Kliem et al, 1997:2-3).
"Projects are composed of a unique set of activities established to realize a given set of
objectives in limited time span. The non-routine nature of projects activities places a set
demands on the project manager that are different in many respects from those the
manager of more routine operations activities experiences, both in planning and
coordinating the work and in human problems encountered" (Stevenson, 1999:792).
Kerzner's (1998:6) definition of project management: "Project management is planning,
organizing, directing and controlling of company resources for a relatively short-term
objective that has been established to complete specific goals and objectives." Figure 1.1
is pictorial representation of project management.
Figure 1.1: Constraints of Project Management
The objective of Figure 1.1 is to show that project management is designed to manage or
control company resources on a give activity, within cost, time and performance. Time,
cost and performance are the constraints of the project (Kerzner, 1998: 6).
It may be argued that the solution to many of corporate problems involves obtaining
better control and utilization of existing corporate resources, with emphasis on internal
forces. Large-scale industry is making the migration towards project-based work,
whereby the three main functional areas, operations, marketing and finance synergise
efforts such that overall departmental goals are in alignment with the corporate strategy.
In a fast moving consumable good (FMCG) industry, project management is not a core
competency, but has transformed into a key performance area. Project management has
to be internally managed as the cost of consultants are expensive, also, when projects are
completed and there are queries, it is a mammoth task to get hold of the project manager,
even if you successful in tracking him down, will he remember anything usually not.
In today's globally competitive markets, one has to manage projects internally as this
protects intellectual property, retains staff and gives the competitive edge to be a leader
rather than be a follower.
2
1.2 tackground to Project Management in a FMCG
ffndustry
In a FMCG based industry it is imperative that market forecasts are accurate, especially
when venturing into new business opportunities. Marketing will conduct a SWOT
analysis complimented with the target market segmentation with specific demand
analysis. The demand strategy is usually one of level capacity. This information is then
forwarded to operations; more specifically technical support whom together with finance
then conducts a feasibility study and initial design (African Products, NBD Procedure).
Once the design has been finalised, a capital application for financing is done. The return
on investment and payback time must be known before the capital application is made.
When the board of directors has approved the capital, a suitable process engineer is
appointed to manage the project to termination.
The project manager will manage the project by (Kerzner, 1998:5):
Planning
Organising
Controlling
Directing
As the project is executed internally, there is no project office, hence resources are shared
between projects and day-to-day functions. The project manager will request for specific
staff, but the final decision of what resources are committed rests with the line managers.
This concept of management is known as the matrix organisation.
1.3 Aim
To determine what management skills newly appointed project managers should have to
successfully implement project management.
3
1.4 Objective
The illustration of successful project management will be achieved by discussing the
following:
Determination of management functions by literature study
Develop a model based on the outcome of objective a.
Evaluate the model generated in b. by means of surveying expert project
managers and new employees entering the project management arena
1.5 Defining Concepts
Project — a group of activities that have to be performed in a logical sequence to meet
preset objectives outlined by the client (Burke, 1995:9).
Project management — deals with the one time effort to achieve a focused objective
(Shtub et al, 1994:5)
Management functions — modern practitioners identify management responsibilities and
skills in terms of (Kerzner, 1998:226):
Planning
Organising
Controlling
Directing
4
1.6 Limitations
This research will be limited to African Products (Pty) Ltd only.
1.7 ValIan of Research
This research will provide valuable and important background information on current
trends of project management strategies. Such information could be used to re-examine
existing practices and strategic intentions. In African Products it will also provide useful
information that could be used when injecting technology into an organisation.
1.8 Layout of Research Report
1.8.1 Chapter 1
Chapter 1 discusses the function of project management in a fast moving consumable
good industry (FMCG). Also, project is defined and the constraints of project
management are explained.
The Aim, Objective, Limitation and Value of Research are stated in this chapter.
1.8.2 Chapter 2
A comprehensive literature review has been undertaken in order to establish the
management functions in project management. These are planning, organising,
controlling and directing.
A project has a logical sequence of stages, this is known as a project life cycle.
Upon completion of the literature review a model for project management is
postulated.
5
Objectives a. and b. are achieved in this chapter.
1.8.3 Chapter 3
Chapter 3 elaborates the research methodology used in validating the model presented
at the end of Chapter 2.
Questionnaires were used to get responses from experienced and inexperienced
project managers. There was a criterion for selecting respondents, this is discussed.
The sampling and data analysis techniques are explained.
1.8.4 Chapter 4
This presents the results of the surveys conducted on experienced and in experienced
project managers.
Objective c. is achieved in this chapter.
Responses to each question is presented in tabulated form and a discussion follows
directly.
1.8.5 Chapter 5
This chapter discusses the findings in Chapter 4. There is unanimous support for
postulated model.
Five recommendations are made at the end of this chapter. This is improve the
postulated model and to practically test it, upon success can be incorporated into
company operating procedures.
6
(Chapter 2 — literature Review
2.1 Management functions
The difficult aspect of the project management environment in African Products is
that individuals at the project-functional level interface must report to two bosses.
Functional manager and project managers, by virtue of their different authority levels
and responsibility, treat their people in different fashions depending on their
"management school" philosophies. There are five management schools (Kerzner,
1998: 225-226).
2.1.1 The Classical/Traditional School
Management is the process of getting things done (i.e., possibly achieving objectives) by
working both with and through people operating in organised groups. Emphasis is placed
on the end-item or objective, with little regard for the people involved. This type of
management is the ends justify the means, people are consumables in this management
function.
2.1.2 The Empirical School
Managerial capabilities can be developed by studying the experiences other managers,
whether or the situations are similar or not. A clever man learns from experience and
wise man learns from others mistakes.
7
2.1.3 The Behavioural School
Two classrooms are considered within this school. First, there is the human relations
classroom in which the emphasis is on the interpersonal relationship between individuals
and their work. The second classroom includes the social system of the individual.
Management is considered to be a system of cultural relationships involving social
change.
2.1.4 The Decision Theory School
The decision theory school: Management is a rational approach to decision making using
a system of mathematical models and processes, such as operations research management
science.
2.1.5 The Management Systems School
The management systems school: Management is the development of a systems
model, characterised by input, processing and output, and directly identifies flow of
resources (money, equipment facilities personnel, information and material) necessary
to obtain some objective by either maximising or minimising the some objective
function. The management systems school also includes contingency theory, which
stresses that each situation is unique and must be optimised separately within the
constraints of the system.
In a project environment, functional managers are generally practitioners of the first three
schools of management, whereas the project managers utilize the last two (Kerzner, 1998:
226).
8
2.2 Project life cycles
To fully understand what project management is, project life cycles will be examined first
as this will give a indication as to what management functions are required by new
employees to successfully complete objectives set in the project.
2.2.1 Kerzner's Five Stages of the Life Cycle
Kerzner (1998) developed five stages that indicate the work activity for each stage. The
five stages from initiation to termination are shown below:
2.2.1.1 Conceptual
Kerzner (1998:74) stated that this is the preliminary evaluation of the idea. Preliminary
analysis of risk, resulting impact on time, cost, quality and potential impact on company
resources. This is includes the feasibility study.
Determine existing needs or potential deficiencies of existing systems
Establish system concepts that provide initial strategic guidance to overcome
existing or potential deficiencies
Determine initial technical, environmental and economic feasibility and
practically of the system
Examine alternative ways of accomplishing the system objective
Provide initial answers to the following questions:
What will the system cost?
When will the system be available?
What will the system do?
How will the system be integrated into the existing systems?
9
Identify the human and non-human resources required to support the system
Select the initial system designs that will satisfy the system objectives
Determine initial system interfaces
Establish a system organisation.
2.2.1.2 Definition
Kerzner (1998:75) stated that definition is a refinement of the elements described under
the conceptual phase. Firms' identification of required resources and establishment of
realistic time, cost and quality parameters. Includes the initial preparation of all
documentation necessary to the support system. Conduct cost benefit analysis, i.e.
payback time.
Firm identification of human and non-human resources required
Preparation of the final system performance
Preparation of detailed plans required supporting the system
Determination of realistic cost, schedule and performance requirements
Identification of those areas of the system where high risk and uncertainty exist,
and outline plans for further exploration of these areas
Definition of intersystem and intrasystem interface
Determination of necessary support subsystems
Identification and initial preparation of the documents to support the system, such
as policies, procedures, job descriptions budget, and funding papers, letters and
memoranda.
10
2.2.1.3 Production
Production is predominantly a testing and final standardisation effort so operations can
begin. Almost all documentation must be completed in this phase.
Updating of detailed plans conceived and defined during the preceding phases
Identification and management of resources required to facilitate the production
processes, such as inventory supplies, labour funds and so on
Verification of system production specifications
o Beginning of production, construction and installation
Final preparation and dissemination of policy and procedural documents
Performance of final testing to determine adequacy of the system to do the things
it was intended to do
Development of technical manuals and affiliated documentation describing how
the system is intended to operate
Development of plans to support the system during its operational phase
(Kerzner, 1998:77).
2.2.1.4 Operational
Operational is the integrating of the project's product or service into the existing
organisation. This may involve further life cycles such as introduction, growth,
maturity and deterioration of a marketable product (Kerzner, 1998:77).
Use of the system results by the intended user or customer
Actual integrating of the project's product or service into existing
organisational systems
Evaluation of the technical, social and economic sufficiency of the project to
meet actual operating conditions
Provision of feedback to organisational planners concerned with developing
new projects and systems
Evaluation of the adequacy of supporting systems.
2.2.1.5 Divestment
Divestment evaluates the efforts of the total system and serves as input to conceptual
phases for new projects and systems. This final phase also has an impact on other
ongoing projects with regard to priority identification. Includes the real location of
resources and "where should they be reassigned?" (Kerzner, 1998:78).
System phase down
Development of plans transferring responsibility to supporting organisations
Divestment or transfer of resource to other systems
Development "of lessons learnt" for inclusion in qualitative/quantitative database
to include:
Assessment of images by the customer
Major problems encountered and their solution
Technological advances
Advancement in knowledge relative to department strategic objectives
New or improved management techniques
Recommendation for future research and development
Recommendations for the management of future programs, including
interfaces with associate contractors
Other major lessons learnt during the course of the system.
12
13
2.2.2 Shtub et al's Life cycle of a project
Because of the degree to which projects differ in their attributes, such as length, cost, type
of technology used, and sources of uncertainty, it is difficult to generalise the operational
and technical issues they each face. It is possible, however, to discuss some strategic and
tactical issues that are relevant to many types of projects. The framework for the
discussion is the project life cycle or the major phases through which a "typical" project
progresses. An outline is depicted below in Figure 2.1 and elaborated on by Cleland and
Johnson and King (1983) as shown in Shtub et al, who identify the long range (strategic)
and medium-range (tactical) issues that management must consider. A synopsis follows
(Shtub et al, 1994:24):
Fig.2.1: Shtub et al's Phases of a Project
Phase 1
Conceptual design
Phase 2
Advanced development
Phase 3
Detailed design
Phase 4
Production
Phase S
Termination
Goals Plan Responsibility Manage Closeout Scope Budget definition Measure Document Baseline Schedule Team Control Suggest Requirements Bid proposal Organizational Update and improvements
Feasibility Management structure replan Transit
Desirability commitment Detailed plan Problem Reassign Kickoff solving Dissolve team
2.2.2.1 Conceptual design phase
In this phase (Shtub et al, 1994:24), an organisation (client, contractor, sub-contractor)
initiates the project and evaluates potential alternatives. A client organisation may start
identifying a need or deficiency in existing operations an issuing a request for proposal,
also see Figure 2.1.
The selection of projects at the conceptual phase is a strategic decision based on the
established goals of the organisation, needs, ongoing projects, and long term
commitments and objectives. In this phase, expected benefits from alternatives projects,
assessment of costs and risks, and estimates of required resources are some of the factors
weighed. Important action items include the initial "make or buy" decisions for
components and equipment, the development of contingency plans for high-risk areas,
and the preliminary selection of subcontractors and other team members that will
participate in the project.
In addition, upper management must consider the technological aspects such as
availability and maturity of the required technology, its performance, and expected usage
in subsequent projects. Environmental factors related to government regulations,
potential markets and competition must also be analysed.
The selection of projects is based on a variety of goals and performance measures,
including expected cost, profitability, risk and potential for follow-on assignments. Once
a project is selected and its conceptual design is approved, work begins on the second
phase, where many of the details are ironed out.
2.2.2.2 Advanced development phase
In this phase (Shtub et al, 1994:25) weighing the tactical advantages and disadvantages of
each possible arrangement forms the organisational structure of the project. Once a
decision is made, lines of communication and procedures for work authorisation and
performance reporting are established. This leads to the framework in which the project
is executed.
14
2.2.2.3 Detailed design phase
This is the phase (Shtub et al, 1994:25) in a project's life cycle where comprehensive
plans are prepared. These plans consist of:
Product and process design
Final performance requirements
Detailed break down of work structure
Scheduling information
Blueprints for cost and resource management
Detailed contingency plans for high-risk activities
Budgets
Expected cash flows
In addition and most important, procedures and tools for executing, controlling and
correcting the project are developed. When this phase is completed, implementation can
begin since various plans should cover all aspects of the project in sufficient detail to
support work authorisation and execution.
The success of a project is highly correlated with the quality and depth of the plans
prepared during this phase. A detailed design review of each plan and each aspect of the
project is therefore conducted prior to approval. A sensitivity analysis of environmental
factors that contribute to uncertainty may also be needed. This analysis is typically
performed as part of "what if' studies using expert opinions and simulations as
supporting mechanisms.
In most situations, the resources committed to the project are defined during the initial
phases of its life cycle. Although these resources are used later, the strategic issues of
how much to spend and at what rate are addressed here.
2.2.2.4 Production phase
The fourth life-cycle phase (Shtub et al, 1994:26) involves the execution of plans and in
most projects dominates the others efforts and duration. The critical strategic issue here
15
relates to maintaining top management support, while the critical tactical issues centre on
the flows of communications within and among the participating organisations. At this
level the focus is on actual performance and changes on the original plans. Modifications
can take different forms — in the extreme case, a project may be cancelled. More likely,
though, the scope of work, schedule and budget will be adjusted as the situation dictates.
Throughout this phase, management's task is to assign work to the participating parties,
to monitor actual progress, and to compare it to the baseline plans. The establishment
and operation of a well-designed communications and control system are therefore
necessary.
Support of the product or system throughout its entire life (logistic support) requires
management attention in most engineering projects where an operational phase is
scheduled to follow implementation. The preparation for logistic support includes
documentation, personnel training, maintenance and initial acquisition of spare parts.
Neglecting this activity or giving it only cursory attention can doom an otherwise
successful venture.
2.2.2.5 Termination phase
In this phase (Shtub et al, 1994:26), management's goal is to consolidate what it has
learned and translate this knowledge into ongoing improvements in the process. Current
lessons and experience serve as the basis for improved practice. But while successful
projects can provide valuable insights, failures can teach us even more. Unless we learn
form our mistakes we are bound to repeat them making the task of continuous
improvement little more than an empty exercise. Databases that store and support the
retrieval of information on cost, schedules, resource utilisation and so on, are assets of an
organisation. Readily available, accurate information is a key factor on the success of
future projects.
16
2.2.3 Turner's Project Life Cycles
Turner's (1993:23-24) view of project life cycles is a four-stage process. The four-stage
process is shown in Table 2.1:
Table 2.1: Turner's Project Life Cycles
Stage Name Management objectives
Germination Proposal and initiation Project definition
Scope and business objectives
Functional design
Feasibility
Initial estimates approx. 30%
Go/no go decision
Growth Design and appraisal Systems design for sanction
Planning and resourcing
Sanctions estimates approx. 10%
Baseline
Sanction
Maturity Execution and control Education and communication
Detail planning and design
Control estimate to 5%
Work allocation
Progress monitoring
Forecasting completion
Control and recovery
17
project
execution
Plan: formulation and revision
-17 of intended
activity
Check/study: ovaluate
performance
of all phases
Fig 2.2: Deming's PDAC
Death Finalisation and close
out
Completion of work
Use of product
Achieving of benefits
Disbanding/rewarding the team
Audit and review
Historical records
Turner 1993:23 has the view that people tend to jump from perceiving a problem to
choosing a solution, or worse, to implementing a solution. Similarly, they go straight to
the execution stage of a project, without first determining whether the proposal is
worthwhile or how it is to be achieved. If one chooses a solution without going through
the decision making process, the solution tends to cure symptoms but does not get to the
cause of the problem.
2.2.4 Maylor's Project Life cycles
Maylor (1996:25) uses Deming's Planning, Doing, Checking, and Acting in the
project environment with the objective of continuous improvement, Figure 2.2. The
generic lifecycle for a project involves the consideration of how the level of activity
varies with time. This is illustrated in the Figure 2.3 and shows how the level of
activity is relatively low during the planning phase, increases through the doing phase,
and decreases through check and act phases.
18
Act:
make changes in all phases
to provide for
improvement
Plan
Do Check Act
Leve
l of d
eli
Cum
ula
tive
exp
end i
ture
Time
(a)
Check. Act
Plan
Time
(b)
19
Fig 2.3: Maylor's Project Life Cycle
This pattern is reflected in the graph of cumulative expenditure Figure 2.3 (b) against
time. Outgoings are generally low in the early stages, but grow rapidly during execution
phase. The Figure 2.3 (a) also demonstrates why the check and act phases are so vital —
by the time the majority of the doing phase is completed, the probability is that in excess
of 98% of the total project will have incurred. The last two phases are the time when the
project team themselves can benefit from the process and ensure that lessons (good and
bad) are applied in the future (Maylor, 1996:26).
20
The life cycle may be further broken down as shown in Table 2.2:
Table 2.2: Maylor's Project Life Cycles
Stage in life cycle Activity Description
Planning Conceptualisation Generate explicit statement of needs
Analysis Identify what has to be provided to
meet those needs
Proposal Show how those needs will be met
through the project activities
Justification Prepare and evaluate financial costs
and benefits from the project
Agreement Point at which go-ahead is agreed by
project sponsor
Doing Start up Gathering of resources, assemble
project teams
Execution Carry out defined activities
Completion Time/money constraint reached or
activity series completed
Handover Output of project passed to client
Checking Review Identify the outcomes for all
shareholders
Acting Feedback Put in place improvements to
procedures, fill gaps in knowledge,
document lessons learnt for the
future
(Maylor, 1996:26)
From the above it is seen that Maylor breaks down the into four major sections namely
based on Deming:
Planning
Doing
Checking
Acting
Each of the above sections is subdivided into different tasks as shown in Table 2.2. The
Maylor model of Project Life Cycles involves eleven activities from conceptualisation
(initial idea) to feedback (lessons learnt). The eleven activities make up the four major
sections of Deming's Planning, Doing, Checking and Acting. Maylor's objective in the
aboVe model is to achieve continuous improvement.
2.2.5 Project Management Body of Knowledge's Project Life Cycle
The time frame for the project management process encompasses two sequential steps
of planning and accomplishment. This subdivision was further divided into four
• distinct phases, which are typical of most areas of project application. The project life
cycle may be defined as "The four sequential phases in time through which any
project passes, namely: concept, development, implementation and termination"
(PMBOK Vol.1, 1991: III-1).
For practical purposes in the management of most projects, these four sequential
phases need to be broken down into greater detail. That is, each phase may be made
up of one or more stages and, for purposes of scheduling the actual work involved,
each stage id further developed into a number of activities or tasks (PMBOK Vol. 1,
1991: III-1).
From the various project life cycles offered by the Project Management Body of
Knowledge (PMBOK), the typical and construction life cycles are applicable to a
FMCG industry. These life cycles are shown in the figures below:
21
Plan
Total Project Life Cycle TIME
Accomplish
Phase 1
CONCEPT
Conceive ( C)
Gather data Identify need Establish:
- goals, objectives - basic economics,
feasibility - stakeholders - risk level - strategy - potential team Guesstimate
resources Identify alternatives Present proposal Obtain approval for
next phase
Phase 2 DEVELOPMENT
Develop
(D)
- Appoint key team members
- Conduct studies - Develop scope
baseline: - end product(s) - quality standards - resources - activities
- Establish: - master plan - budget. cash flow - VVBS - policies &
procedures - Assess risks
Confirm justification - Present project brief
Ootain approval to proceed
Phase 3 IMPLEMENTATION
Execute
(E)
- Setup:- organization
- communications - Motivate team - Detail technical
requirements - Establish:
work packages - detailed schedule - information
control systems - Procure goods &
se rvices Execute work packages
- Direct/monitor/ torecasVcontrol:
- scope - quality - time -lost
- Resolve problems
Phase 4 TERMINATION
Finish (F)
Finalize product(s) Review & accept Settle final a/c's Transfer product
responsibility Evaluate project Document results Release/redirect resources
Reassign project team
Fig. 2.4 Typical Project Life Cycle - PMBOK (Vol.!, 1991: E[1-2)
22
Total Project Lite Cycle TIME
<4 Plan
D-
Accomplish
Phase 1 CONCEPT Conceive
C)
Phase 2 DEVELOPMENT
Develop (D)
Phase 3 IMPLEMENTATION
Execute (E)
Phase 4 TERMINATION
Finish (F)
Identify need Develop: Set up organization - Train operators
Establish leastrility: - Plan - Working drawings - Transfer materials
- program, process - block diagrams and specifications - Document results
schematics - sketches - Design reviews - Transfer
- sketches & out- - standards - Procure equipment responsibility
line drawings Conduct studies - Procure construc- Release resources - basic budget & Select equipment tion services Re-assign project
schedule Reconfinn - Produce physical learn - project team economics entity - financing Develop:- - Quality assurance Identity alternatives -budget - Verity performance Present proposal - schedule - Modify as required Obtain approval to
proceed - cash flow prepare & submit
Protect Brief Obtain approval to
implement
Fig. 2.5 Construction Project Life Cycle - PMBOK (Vol.], 1991: 1111!-3)
By breaking up the project down into manageable phases is attractive as it enables the
same standard approach to applied throughout (PMBOK Vol.1, 1991: 111-2).
From Fig. 2.4 and Fig. 2.5 it can be seen that there is a great deal of similarity between
PMBOK, Kernzner, Shtub, Maylor and Turner.
Both project life cycles presented are applicable to the FMCG industry as most
projects have a construction (i.e. erection of buildings) component.
A consolidation of Kerzner, Shtub, Turner, Maylor and PMBOK is presented in 2.8
Summation of Literature Study.
23
HIGH
M4
MODERATE LOW
M2 M3 M1
2.3 Life Cveile Leadership
2.3.1 Situational Leadership
The type of leadership style that is best applicable to project management is situational
leadership: a contingency theory that focuses on follower readiness (Robbins 1998:358).
Therefore, Hersey and Blanchard have developed the best model for a project
management leadership style. The model is shown below in Figure 2.6 (Hersey &
Blanchard, 1982:152): STYLE OF LEADER
PARTICIPAfFING High Relationship Low Task
&
§3
SELIJNG High High
S2
Task & Relationship
•
Lovy LoW
DELEGATING EGATING Relationship & Task
TELLING High Task 8{ Low Relationship
Si
(LOW) <
TASK BEHAVIOUR
> (HIGH)
MATURITY OF FOLLOWER(S)
24
RE
LATI
ON
SH
IP
EL)
2
Figure 2.6 Hersey & Blanchard Leadership Styles
The attempt (Hersey & Blanchard, 1982:152) in Figure 2.6 is to portray the relationship
between task-relevant maturity and the appropriate leadership style to be used as
followers move from immaturity to maturity. The appropriate leadership style (style of
leader) for given levels of follower maturity is portrayed by the prescriptive curve going
through the four leadership quadrants. This bell shaped curve is called the prescriptive
curve because it shows the appropriate leadership style directly above the corresponding
level of maturity.
Each of the four-leadership styles- telling, selling, participating and delegating identified
in Figure 2.6 above, is a combination of task relationship behaviour.
Relationship behaviour is the extent to which a leader engages in two-way
communication with people: providing support, encouragement, and "psychological
strokes" and facilitating behaviours. It means actively listening to people and supporting
their efforts (Hersey & Blanchard, 1982:152).
The maturity of followers is a question of degree. As can be seen in Figure 2.6, some
benchmarks of maturity are provided for determining appropriate leadership style by
dividing the maturity continuum below the leadership model into four levels: low (M1),
low to moderate (M2), moderate to high (M3) and high (M4).
2.3.1.1 Telling
"Telling" is for low maturity. People who are both unable and unwilling (M1) to take
responsibility to do something are not competent or confident. In many cases, their
unwillingness is a result of their insecurity regarding the necessary task. Thus, a directive
"telling" style (Si) that provides clear, specific directions and supervision has the highest
probability of being effective with individuals of this maturity level. This style is called
"telling" because it is characterised by the leader defining roles and telling people what,
how, when and where to do various tasks. It emphasizes direct behaviour. Too much
supportive behaviour with people at this maturity level may be seen as permissive, easy
25
and most importantly as rewarding for poor performance. This task involves high task
behaviour and low relationship behaviour (Hersey & Blanchard, 1982:153).
2.3.1.2 Selling
"Selling" is low to moderate maturity. People who are unable but willing (M2) to take
responsibility are confident but lack skills at this time. Thus, a "selling" style (S2) that
provides directive behaviour, because of their lack of ability, but also supportive
behaviour to reinforce their willingness and enthusiasm appears to be most appropriate
with individuals at this maturity level. This style is called "selling" because of the
direction is still provided by the leader. Yet, through two-way communication and
explanation, the leader tries to get followers psychologically to "buy in" desired
behaviours. Followers at this maturity level will usually go along with a decision if they
understand the reason for the decision and if their leader also offers some help and
direction. This style involves high task behaviour and high relationship behaviour
(Hersey & Blanchard, 1982:153).
2.3.1.3 Participating
" Participating" is for moderate to high maturity. People at this maturity level are able
but unwilling (M3) to do what their leader wants. Their unwillingness is often a function
of their lack of confidence or insecurity. If, however, they are competent but unwilling,
their reluctance to perform is more of a motivational problem than a security problem. In
either case, the leader needs to open the door (two-way communication and active
listening) to support the follower's efforts to use the ability he has. Thus, supportive,
nondirective, "participating" style (S3) has the highest probability of being effective with
individuals of this maturity level. This style is called "participating" because the leader
and follower share in decision making, with the main role of the leaser being facilitating
and communicating. This style involves high relationship and low task behaviour
(Hersey & Blanchard, 1982:153).
26
2.3.1.4 Delegating
"Delegating" is for high maturity. People at this maturity level are both able and willing
or confidant, to take responsibility. Thus, a low profile "delegating" style (S4) that
provides little direction or support has the highest probability of being effective with
individuals at this maturity level. Even though the leader may still identify the problem,
the responsibility for carrying out plans is given to these mature followers. They are
permitted to run the show and decide on the how, when and where. At the same time,
they are psychologically mature and therefore so need above average amounts of two-way
communication or supportive behaviour. This style involves low relationship behaviour
and low task behaviour (Hersey & Blanchard, 1982:154).
2.3.1.5 Conclusion
It should be clear that the appropriate leadership style for all four of the maturity
designations — low maturity (M1), low to moderate maturity (M2), moderate to high
maturity (M3) and high maturity (M4)- correspond to the following leadership style
designations: telling (S1), selling (S2), participating (S3) and delegating (S4). That is,
low maturity a telling style, low to moderate maturity needs a selling style and so on
(Hersey & Blanchard, 1982:154).
2.3.2 Authority and Responsibility
Several key factors affect the delegation of authority and responsibility both from upper
level management to project management, and from project management to functional
management. These key factors include (Kerzner, 1998:579):
The maturity of the project management function
The size, nature and business base of the company
The size and nature of the project
The life cycle of the project
The capabilities of management at all levels
27
28
Once agreement has been reached on the project manager's authority and responsibility,
the results may be documented to delineate that role regarding (Kerzner, 1998:579):
Focal position
Conflict between the project manager and functional managers
Influence to cut across functional and organization lines
Participation in major management and technical decisions
Collaboration in staffing the project
Control over allocation and expenditure of funds TECHNIKON WITWATERSRAND
Selection of contractors LIBRARY Rights in resolving conflicts
Input in maintaining the integrity of the project team
Establishment of project plans
Provisions for a cost-effective information system for control
Provisions for leadership in preparing operational requirements
Maintenance of prime customer liaison and contact
Promotion of technological and managerial improvements
Establishment project organization for the duration
Eliminate red tape
Documenting the project manager's authority (Kerzner, 1998:579) is necessary in some
situations because:
All interfacing must be kept as simple as possible
The project manager must have the authority to "force" functional managers to
depart from existing standards and possibly incur risk
Gaining authority over those elements of programs that are not under the project
manager's control essential. This is normally achieved by earning the respect of
the individuals concerned.
The project manager should not attempt to fully describe the exact authority and
responsibilities of the project office personnel or team members. Problem solving
rather than role definition should be encouraged.
Although documenting project authority is undesirable, it may be a necessary
prerequisite, especially if project initiation and planning require a formal project chart.
Power and authority are often discussed as though they go hand in hand. Authority
comes from people above you, perhaps by delegation, whereas power comes from people
below you. You can have authority without power or power without authority. In most
companies the project manager has authority from senior management and powered by
the members of the project team. For a project manager, expert power, legitimate and
expert powers are required to complete a project. Also, quite often most project teams
are not static in that a project team is made from different individuals from various
departments — this is called the matrix structure. This clearly shows that a project
manager can have no power as individuals only report to him on a progressive basis, i.e.
movement towards the goal of the project.
In a traditional organisational structure, most individuals maintain position power. The
higher up you sit, the more power you should have. But in project management, the
reporting level of the project might be irrelevant, especially if a project sponsor exists. In
project management, the project manager's power base emanates from his (Kerzner,
1998:580):
Expertise
Credibility with employees
Sound decision-making ability
The last item is usually preferred. If the project manager is regarded as a sound decision
maker, then the employees normally give the project manager a great deal or power over
them.
Leadership styles refer to the interpersonal influence modes that a project manager can
use. Project managers may have to use different leadership styles, depending on the make
up of the project personnel (Kerzner, 1998:579). The best model that depicts an
appropriate leadership style is the Hersey & Blanchard situational leadership model as
29
discussed in 2.3 Life Cycle Leadership. In terms of situational leadership for the project
manager this means that he delegates to competent team members who possess a very
high maturity level. Since team members are assumed to be competent there is a low task
and low relationship between the project manager and team members.
Conflict management is important because if the project manager can predict what
conflicts will occur and when they are most likely to occur, he may be able to plan for the
resolution of the conflicts through project administration (Kerzner, 1998: 579).
Finally, project, line and executive management must analyse other internal and external
variables before finalizing these schedules. A partial listing of these variables includes
(Kerzner, 1998:581):
Introduction or acceptance of the product in the market place
Present or planned manpower
Economic constraints
Degree of technical difficulty
Manpower availability
Available of personnel training
Priority of the project
30
2A Planning, Organising, Controlling and Directing
Kerzner (1998:5) states that a project manager will manage a project by: Planning,
Organising, Controlling and Directing. These form the core of project management.
Each of these core functions is included in the phase management of Kerzner (2.3.1),
Shtub et al (2.3.2), Turner (2.3.3) and Maylor (2.3.4).
The four core functions of management are now discussed. In order to complete a project
life cycle, i.e. from initiation to completion, there has to be planning, organising,
controlling and directing.
2.4.1 Planning
2.4.1.1 Why plan?
The answer according to Ruskin & Estes (1994: 43-44) is that the project definition or
proposal plan is incomplete and too superficial to serve as a project management plan. It
is typically prepared to sell the project and does not address many elements needed to
manage the project. And it may be a success orientated plan, which is hardly protection
against mishaps or a means of contending with them. There are other additional reasons
for planning (Ruskin & Estes, 1994:43-44):
The plan is a simulation of prospective project work, which allows flaws to be
identified in time to be corrected
The plan is a vehicle for discussing each person's role and responsibilities,
thereby helping direct and control the work of the project
The plan shows how the parts fit together, which essential for coordinating related
activities
31
o The plan is a point of reference for any changes of scope, thereby helping project
managers deal with their customers
o The plan helps everyone know when the objectives have been reached and
therefore when to stop.
2.4.1.2 Planning in action
The most important responsibilities of a project manager are planning, integrating and
executing plans. Almost all projects, because of their relatively short duration and often-
prioritised control of resources, require formal detailed planning. Planning generally can
be best described as the function of selecting the enterprise and objectives and selecting
policies, procedures and programmes necessary to achieve them (Kerzner, 1998:519).
The project manager is facilitator in the project who through the assistance of resources
achieves the goals of the project. The success of a project hinges on detailed planning
with built in contingencies if anything were to go wrong.
Project planning can be viewed as setting a predetermined course of action within the
constraints of time, cost and budget. One has to know what is happening when,
conducted by who, why and how. Therefore, it is imperative that milestones be set so
that the progress of the project can be monitored. If the project manager cannot commit
because milestones are unrealistic, the project manager may have to develop alternatives,
one of which may be to move the milestones, planning is required management function
to facilitate the comprehension of complex problems involving interacting factors
(Kerzner, 1998:519).
Nothing builds more confidence in a project manager than the knowledge that the various
alternatives, courses of action and suggestions have been considered and weighed in the
development of a plan (Blanchard, 1990:27).
The project manager is instrumental in the successful planning of a project. Planning on
behalf of the project is easier when the project manager is involved from conception.
Project planning must be systematic, flexible enough to handle unique activities,
disciplined through reviews and capable of accepting multifunctional inputs. Planning is
32
an ongoing activity in the life of a project, even the termination of the project is planned,
otherwise how does one close a project and determine whether the project was a failure or
success (Kerzner, 1998:520).
According to Kerzner (1998:520), one of the objectives of project planning is to
completely define all work required (possibly through a Gantt chart) so that it can be
readily identifiable to each project participant. This is a necessity in a project
environment because:
If the task is well understood prior to being performed, much of the work can be
pre-planned
If the task is not understood, then during the actual task execution more
knowledge is gained, in turn, leads to changes in resource allocations, schedules
and priorities
The more uncertain the task, the greater the amount of information that must be
processed in order to ensure effective performance
The aforementioned points apply to all projects requiring a variety of resources but
functioning under the constraints of time, cost and budget with little margin for error.
Figure 2.7 identifies the type project planning required to establish an effective
monitoring and controlling system (Kerzner, 1998:520):
The boxes in the upper portion of the curve represent the planning activities, and the
lower portion identifies the "tracking" or monitoring of the planned activities.
33
9 U)
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Fig
. 2.
7: T
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(K
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199
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35
According to Kerzner (1998:520) poor planning will lead to:
Project initiation, demographics not understood
Wild enthusiasm, no plan, free to act on own will — no coordination
Disillusionment, employee or customer dissatisfaction
Chaos, everybody doing what they see fit
Search for the guilty, head hunting to make an example
Punishment for the innocent
Promotion for non-participants
Definition of the requirements
There are four basic reasons for project planning (Kerzner, 1998:520):
To eliminate uncertainty, i.e. fully understand the requirement/objective, the objective is what
must be achieved, planning is how to get there.
To improve efficiency of the operation, this ensures that tasks have continuity and are carried out
in an ordered objective manner.
To obtain better understanding of the objective, deliver what is expected rather supposed
To provide a basis for monitoring and controlling work, progress can be readily assessed
The above links to Ruskin & Estes (1994) Why Plan? 2.4.1.1 in that a project proposal is a mere
marketing tool to sell the project and therefore does not address any elements to manage the project.
From the above it is clearly seen that one has to protect against mishaps or a means of contending with
them.
Also as stated in Planning in Action 2.4.1.2 the most important responsibilities of a project manager are
planning, integrating and executing plans.
36
2.4.1.3 Total project planning
The difference between the good project manager and poor project manager is often described in one
word: planning. Unfortunately, people have poor definition of what project planning actually involves.
Project planning involves for Kerzner (1998: 577-579):
Schedule development
Budget development
Project administration
Leadership styles
Conflict management
The first two items involve the quantitative aspects of planning.
Although each project manager has the authority and responsibility to establish project policies and
procedures, they must fall within the general guidelines established by top management. Guidelines can
also be established from planning, scheduling, controlling and communications.
2.4.1.4 Subplans: A check list for major plan elements
When thinking of a plan, it natural to think mainly in terms of performance or work accomplishment.
This is indeed the central part of any plan, but it is seldom the whole plan JRuskin & Estes, 1994:60).
a. Staffing plans
The staffing plan (Ruskin &Estes, 1994:61) shows that who will be responsible for each part of the work
break down structure (WBS). Attaching a personal name to each element in the WBS, thereby creating a
basic organisation chart, easily represents this plan. Basic charts may be augmented to include staff
positions for selected basic positions for e.g. a secretary as staff to the project manager.
37
The project organisation shows reporting relationships for the project and should not be confused with
the company's organisation chart. Also, the project organisation chart is not a status chart. Thus a
senior individual who is responsible for a detailed portion of a project may report on a project to junior
person who integrates the senior person's work with the work of others (Ruskin & Estes, 1994:62).
Nor is the project organisation chart a device for aggregating the work to be done by individuals. Thus,
the chart should not gather together different responsibilities for a single individual in order to have the
individual's name appear just once on the chart. To do so would obliterate the project's hierarchical
relationships, relationships, which are exactly what is intended to show.
While project organisation charts show project reporting relationships, they do not represent all project
communication lines. Indeed, well functioning projects have a spider web of such lines. However,
project organisation charts do identify the arbitrators of any conflicts that may arise: the individual who
occupies the lowest-lying project organization chart node that spans the conflicting parties is the
arbitrator.
Significant negotiations are often required to obtain commitments of personnel necessary to fulfil the
staffing plan. The project manager can plan for this negotiation by sketching out a tentative plan,
including estimates of the efforts required for each key participant. Prospective project members should
make these estimates whenever possible (Ruskin & Estes, 1994:62).
Some project managers try to economise on the effort needed to staff their projects by assigning
individuals to two hierarchically related WBS elements. This arrangement, however, should be avoided
if possible, for two reasons. First, individuals either tend to become engrossed in the details of their
lower level WBS element and slight their coordination responsibilities at the higher levels, or they tend
to focus on their higher level responsibilities and slight their lower level responsibilities ones. When
coordination responsibilities are slighted, interface problems are likely to be ignored or neglected when
they are small and easy to resolve, which allows them to grow until they are larger and more difficult to
resolve.
38
When lower level responsibilities are slighted, their neglect is likely to be unnoticed or unattended
because individuals are in effect supervising themselves. In either case, slippage and inefficiencies are
likely to result instead of economies.
The second reason an individual should not WBS elements at two levels is that doing so creates
difficulty for other lower level managers. Since the manager of a higher-level WBS element arbitrates
conflicts among managers at the next lower level, an individual responsible for two levels is both
advocate of a lower level element and arbitrator of conflicts at that level. What should another
individual at the lower level make of this duality? Is the two level individual a peer or a boss? Can the
two level individual be both a strong advocate for the lower level element and an objective arbitrator?
These questions are so vexing that those two levels of responsibility for a given individual should be
avoided, if possible (Ruskin & Estes, 1994:62).
To avoid two level assignments, individuals can be assigned to two different projects (or sub projects)
instead, perhaps in highly technical capacity on one hand and in more managerial capacity in another.
While such project require interproject planning, they can be arranged when the organization has
concurrent projects and attention is paid across the organization to avoiding two level assignments.
Interproject staff planning will not only minimize two level assignments problems, it will help optimise
staffing situations overall, and it is strongly recommended. In addition, it will promote cross-
fertilization and thereby minimize redundant efforts.
The decisions and negotiations that are needed to complete a staffing plan are significant, and the project
overall budget and schedule should provide for them accordingly (Ruskin & Estes, 1994:63).
b. Quality control plans
The quality control plan contains the scheme for assuring that the project will produce a good product.
Thus, it tells who is going to check what, when the check will be done, and at what time and resources
required. It may range from a trained pair of eyes that checks the product before it goes out the door to
39
an elaborate and thorough check and cross check of everything done.
The quality control plan should be well known to the entire project staff If one person is to be
responsible for assuring quality, that person should prepare the plan, consulting with those who will do
the work that will be checked and with checkers, as well as the project manager, so that no one will be
surprised (Ruskin & Estes, 1994:63-64).
Equipment and material] plans
The equipment and materials plan pertains to the physical resources needed to accomplish the project. It
begins with a list of items needed, the dates that are needed, suggested sources of supply, and the lead
times necessary to obtain items, including time to obtain price quotations, shipping time, and time to
clear customs if applicable. This information, together with knowledge of the organisation procurement
practices, is then used to establish the sequence of activities and the milestones for specifying and
ordering every piece of equipment, material and any necessary physical installations, including plumbing
and electrical hook-ups needed for the project.
Task leaders prepare equipment and material plans for their respective parts of the overall plan. The
project manager should check these plans to be sure that overall project objectives, particularly schedule
objectives, will still be met. Serious slippages commonly occur because of inadequate provision for
equipment and material lead times (Ruskin & Estes, 1994:64).
Work authorisation plans
The work authorisation plan is the projects manager's scheme for approving successive stages of work.
It consists of periodic reviews and evaluations to establish the readiness and appropriateness of each task
to proceed and a means of authorising each task leader to proceed when appropriate.
A primary virtue of work authorisation plans is that they enable the project manager to revise individual
task plans in order to reallocate resources among tasks as overall project needs change. While a project
40
manager can conceivably retrieve that were once assigned to task leaders, it is psychologically difficult
to do. An easier approach is to release resources incrementally from time to time. This way, the task
leaders are less likely to feel abused when they are required to revise their individual plans as a means of
optimising attainment of overall project objectives.
Sometimes the project manager's customer also authorises work in increments, which are then typically
called phases. The customer's motivation is the same, namely to be able to examine the re sults .of early
work before setting the course and approving work later (Ruskin & Estes, 1994: 64-65).
e. Cost control plans
Cost control is based upon cost expectations (i.e., task budgets) cost measurements, budget-
measurement comparisons and revisions of plans and budgets to achieve budget objective -s when
discrepancies are detected. The cost control plan therefore specifies what budgetary are-needed, what
costs will be measured and what comparisons will be made. It also specifies what techniques will be
used to collect and process the information and review it in a timely way so that suitable corrective
actions may be taken. These activities require resources and time that must be provided in the overall
cost plan (Ruskin & Estes, 1994: 65).
ff. Schedule control plans
Schedule control plans is based on expectations (i.e., performance schedules), measurements of
performance versus time, expectation-measurement comparisons, and revisions of performance plans as
needed to achieve performance and schedule objectives. Thus they resemble cost control plans in form.
The schedule control plan accordingly specifies what performance details will be monitored, when they
will be monitored and by whom. Provisions for these activities must be included in the overall project
plan (Ruskin & Estes, 1994: 65-66).
41
2. Reporting plans
Every project manager will want to know what is going on all the time. And the customer will want to
know on a periodic basis. Thus every project needs a reporting plan that identifies who reports to whom,
what is reported, how often reports are made and how widely the information is distributed.
In order to make overall project reporting as efficient as possible, internal reports (i.e. for those who
work on the project) should be coordinated with reports to the customer. Information should be detailed
and organised to serve multiple users, without recalculation or reformatting whenever possible. Since
satisfying customer needs are of paramount importance, there reporting needs should be determined
before establishing internal reporting requirements.
As in the case of the other sub plans, time and resources must be provided for reporting in the overall
project plan (Ruskin & Estes, 1994: 66).
h. Risk plans
To plan for risk is to consciously search out potentially important adverse occurrences and then
determine how they can be:
Accommodated as if they should happen
First reduced then accommodate
Eliminate or avoid altogether
Thus, risk planning goes beyond merely having overall contingency allowances in the case something
goes wrong. Rather, risk planning involves detailed consideration of adverse occurrences and an action
plan that promises the best cost/benefit results given the resources available (Ruskin & Estes, 1994: 66).
42
2.4.1.5 Managing the planning process
Maylor (1996:49) states that most projects of low complexity will bias the ratio of planning: action
heavily towards the action. As complexity increases, so does the necessity for a formalised plan. This
is both a systematic analysis of the project (which provides its own set of benefits) and an opportunity to
show that the project manager has been systematic in the planning process (by showing the level of
consideration that the project manager has given to issues). 'Traceability' has become a major issue in
many companies — allowing products to be tracked back to records of their constituent parts. The same
is required of a project plan. In the event of an unsatisfactory result, for whatever reason, a good plan
can show that the planner took every possible precaution to ensure that result was positive. Conversely,
should the project go particularly well, you would have an assignable cause for this — namely planning
(Maylor, 1996:48).
The benefits of using a systematic methodology (Maylor, 1996:49) in planning include:
Breaking down complex activities into manageable chunks, i.e. WBS
Determining logical sequences of activities, i.e. CPM
Providing an input to subsequent project management processes, including estimating the time
and resources required for the project
Providing a logical basis for making decisions
Showing effects on other systems
Filtering frivolous ideas and activities
Providing a framework for the assessment of programmes (the post-project review process relies
on comparing the achieved result with the original plan, particularly for the purpose of
improving the planning process)
Being essential for the revision/refinement process
Allowing lessons to be learnt from practice
Facilitating communication of ideas in a logical form to others .
43
The above benefits of being systematic are clearly desirable, though the route to achieving them requires
that a planning sequence be followed (Maylor, 1996:50).
2.4.2 Organising
2.4.2.11 The Need for Organising
To carry out a project involving a large number of people, there must be a clear indication of who has to
do what and, if something goes wrong, who to report to. This applies to situations ranging from an
office where various administrative functions are performed to an engineering project involving several
departments (Van Der Waldt & Knipe, 1998:184).
The organisational structure should give project team members a clear idea if their responsibilities, the
authority they have and the person to whom they must report. Without this basic form of organisation,
the project team is unlikely to achieve its objectives (Van Der Waldt & Knipe, 1998:184).
The organisation process in a project team refers to the division of functions and their assignment to the
project team members. Several methods can be used for this, for the purpose of this study a matrix
organisation is used (you need to put this in) (Van Der Waldt & Knipe, 1998: 1 84).
2.4.2.2 Getting Organised
There are four essential steps in getting a project team organised (Lewis, 1995:99)
Decide what must be done, using WBS, problem definitions and other planning tools
Determine the staffing required accomplishing the steps identified above.
Recruit members for the project team.
Complete your project plan through the participation of team members.
44
Some of the criteria by which team members should be selected include (Lewis, 1995:99):
The candidate should possess the necessary skills to perform the required work at the speed
needed to meet deadlines.
The candidate should have his needs met through the participation in the project.
The applicant should have the temperament to fit in with other team members who have already
been recruited, as well as with the project manager and other key players.
The person should not object to overtime requirements, tight timetables, or other project
requirements.
45
2.4.2.3 Matrix Organisation
A matrix organisation is defined as "one in which there is dual or multiple managerial accountability and
responsibility" (Stuckenbruck, 1996:69). However, the term matrix means quite different things to
different people and in different industries. In a matrix there are usually two chains of command, one
along functional lines and the other along project, product or client lines. Other chains of command
such as geographic location are also possible. The matrix organisational form may vary from one in
which the project mangers holds a very strong managerial position to one in which only a coordinating
role is played (Stuckenbruck, 1996:69).
The primary reason for adopting the matrix in a large organisation can be pinpointed in the fact that
functions and skills are fragmented throughout the organisational structure. Individual functional
departments have great difficulty in solving very large problems because of a failure to view the total
system a tendency to sub-optimise or solve the problem within their particular discipline (Stuckenbruck,
1996:71).
Hence arose the need to form a project team that was complimented by each department, which has
limited expertise that contributed to the total solution.
A hybrid structure known as a matrix organisation provides a sound basis for balancing the use of
human resources and skills as people are shifted from one project to another. The matrix organisation
can be viewed as a project organisation superimposed on a functional organisation with well-defines
interfaces between project teams and functional elements. In the matrix organisation, duplication of
functional units is eliminated by assigning specific resources of each functional unit to each project.
Figure 2.8 depicts an organisation that is performing several projects concurrently. Each project has a
manager who must secure the required resources from the functional groups.
46
President
Vice-president engineering
Vice-president manufacturing
Vice-p -esident marketing
Manager project
ib Mons° I Bob
Gary
Vice-president projects
Manager project 2
Latnrctte Don
Jon Sigmond Tammy Manager project n
Fig 2.8: A Typical Matrix Organisation
Technical support, for example, is obtained from the engineering department and marketing provides
sales estimates. The project manager's request for support is handled by the appropriate functional
manager, who assigns resources based on availability and the project's relative level of need (Shtub at el,
1994:216).
Table 2.3 shows the concerns of both project and functional managers within a matrix organisation
(Shtub et al, 1994:216).
47
Table 2.3: Concerns of Project and Functional Managers
Project Manager Functional Manager
What is to be done? How will the task be done?
What is the importance of the task? Where will the task be done?
When will the task be done? Who will do the task?
How much money is available to do the task? How well has the functional input been
integrated into the project?
How well has the total project been done?
The two must act as partners to coordinate operations and the use of resources. It is the project manager,
though, who is ultimately responsible for the success or failure of the project (Shtub, 1994:216).
Project management is a "coordinative" function, whereas matrix management is collaborative function
division of project management. In the coordinative or project organisation, work is generally assigned
to specific people or units who "do their own thing". In the collaborative or matrix organisation,
information sharing is may be mandatory, and several people may be required for the same piece of
work. In a project organisation, authority for decision-making and direction rests with the project leader,
whereas in a matrix it rests with the team. Certain ground rules for exist for matrix development
(Kerzner, 1998:111):
Participants must spend full time on the project; this ensures a degree of loyalty
Horizontal as well as vertical channels must exist for making commitments
There must be quick and effective methods for conflict resolution
There must be good communication channels and free access between managers
All managers must have input into the planning process
Both horizontally and vertically orientated managers must be willing to negotiate resources
48
The horizontal line must be permitted to operate as a separate entity except for administrative
purposes.
These rules simply state some the ideal conditions that matrix structures should possess. The basis for
the matrix approach is an attempt to create synergism through shared responsibility between project and
functional management. Yet this is easier said than done. No two working environments are the same,
therefore, no two companies will have the same matrix design (Kerzner, 1998:111).
2.4.2.4 Advantages of a matrix organisational form
The following are the advantages of a matrix organisational form (Kerzner, 1998:115):
The project manager maintains maximum project control (through line managers) overall
resources, including cost and personnel
Policies and procedures can be set up independently for each project, provided that do not
contradict company policy and procedures
The project manager has the authority to commit resources, provided that scheduling does not
cause conflicts with other projects
Rapid responses are possible to changes, conflict resolution, and project needs (as technology or
schedule)
The functional organisations exist primarily as support for the project
Each person has "home" after project completion. People are susceptible to motivation and end-
item identification. Each person can be shown a career path.
Because key people can be shared, the program cost can be minimised. People can work on a
variety of problems, that is, better people control is possible.
A strong technical base be developed, and much more time can be devoted to complex problems
solving. Knowledge is available for all projects on an equal basis
Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
There is better balance between time, cost and performance
49
Rapid development of specialists and generalists occurs
Authority and responsibility are shared
Stress is distributed among the team (and the functional managers).
2.4.2.5 Disadvantages of a matrix organisational form
The following are the disadvantages of a matrix organisational form (Kerzner, 1998:116):
Multidimensional information flow
Multidimensional work flow
Dual reporting
Continuously changing priorities
Management goals different from project goals
Potential for continuous conflict and resolution
Difficulty in monitoring and control
Company-wide, the organisational structure is cost-effective because more people than necessary
are required, primarily administrative
Each project organisation operates independently. Care must be taken that the duplication of
efforts does not occur
More effort and time are needed initially to define policies and procedures, compared to
traditional form
Functional managers may be biased according to their set of priorities
Balance of power between functional and project organisations must be watched
Balance of time, cost and performance must be monitored
Although rapid response time is possible for individual problem resolution, the reaction time can
become quite slow
Employees and managers are more susceptible to role ambiguity than in traditional form
Conflicts and their resolutions may be a continuous process (possibly requiring support from an
50
organisational development specialist)
People do not feel that they have any control over their own destiny when continuously reporting
to multiple managers.
2.4.2.6 Project Organising
A single function may predominate, or the project may require a composite of skills in order to achieve
the objective. The scope of the project will determine the breadth of its organisational structure.
Corporate culture will influence the authorities and the responsibilities assigned to it. Given these
parameters, the project manager can then form his team using the following steps (Blanchard, 1990:70-
71).
Divide the objectives into individual tasks. If the project is large, it may be necessary to establish sub
objectives to permit greater divisibility. This is commonly called the work break down structure (WBS).
It is important to differentiate between the WBS and the structure. Tasks fall into to different
categories: those dependent on each other in a sequential fashion and those, which have commonality of
skills, required to perform them.
Determine those tasks, which have common skill factors, complexity, and priority and performance
durations. The result of this exercise is determination of the number and abilities of the individuals
needed to perform the tasks.
Determine the qualifications of the personnel required to perform each of the tasks and note any
special skills needed.
Examine the whole and make adjustments as required to match the results of step immediately
above. This may require moving people from one group to another, combining or breaking
down tasks, and adding or subtracting individuals.
51
Group the individuals in such a way as to reduce the initial project to one of several projects that
minimize dependency on one another. The maximum of dependency between individuals should
occur within own work group.
Supervision is chosen to link the groups through a system of interdependence, which considers
skill requirements and time factors. As with the main project, the groups should perform their
respective tasks, then go out of business. Shifting individuals whose skills are required in later
groups can retain continuity.
2.4.3 Controffing
Controlling is a three-step process of measuring progress toward an objective, evaluating what remains
to be done, and taking the necessary corrective action to achieve or exceed the objective or the
objectives. These three steps — measuring, evaluating and correcting — are defined as follows (Kerzner,
1998: 227):
Measuring: determining through formal and informal reports the degree to which progress
toward objectives is being made.
Evaluating: determining cause of and possible ways to act on significant deviations from planned
performance.
Correcting: taking control to correct an unfavourable trend or to take advantage of an unusually
favourable trend.
Ruskin & Estes (1994: 88) adds a fourth objective:
Timely corrective actions designed to meet the objectives, schedule or budget.
52
The project manager is responsible for ensuring the accomplishment of group and organisational goals
and objectives, e.g. compliance to 1S09002. 1S09002 is a model for quality assurance introduction,
installation and servicing as prescribed by the South African Bureau of Standards (SABS), (SABS
1S09000, 1994:8). To this effect, the project manager must have a thorough knowledge of standards
and control policies and procedures so that a comparison is possible between operating results and pre-
established standards. The project manager must then take the necessary corrective actions (Kerzner,
1998:227).
The process of control can be devised into the following categories (Ruskin & Estes, 1994:92-96):
Task control: Task control consists of assuring that the work itself is accomplished according to
plan (without regard to schedule or budget, which are handled separately).
Schedule control: schedule control of assuring that the work is accomplished according to the
planned timetable. Generally, there is little concern if the work is accomplished early, so
attention is usually focused on preventing slippage. However, if premature accomplishment
would result in cash flow problems or excessive interest charges, project manager should keep
major activities from occurring until they are needed.
Cost control: Cost control consists of assuring that work elements are accomplished within their
respective budgets. Because of their differing characteristics, it is useful to have three separate
budgets for each work element: direct labour, support services and purchased services,
equipment and materials.
2.4.3.1 Task control
a. Detailed functional objectives
Task control is based first of all upon detailed functional objectives for the elements in the WBS. Each
objective should have a detailed statement of work so that they can be accomplished unambiguously.
53
The increments of work should be no greater than the schedule and budgetary contingency allowances
available to fix any mistakes that are found, and preferably much less. Then, if a particular increment of
work is found deficient, it can be done within available allowances and not thwart the attainment of the
project's overall objectives, schedule and budget.
By monitoring in increments that are relatively small compared to whichever of the schedule and
budgetary contingency allowances for the segment is more stringent, correction of a single deficiency
will not exhaust a major part of the allowance. This will leave some allowance for correcting other
increments that might be later found deficient. As a rule of thumb, monitoring increments that are 5% to
10% of available allowances have proven successful (Ruskin & Estes, 1994: 92).
Quality inspections
Inspections of work quality are a important aspect of task control and go hand in hand with detailed
functional objectives. Each work increment, no matter simple, needs to be checked at some level to
assure that it is satisfactory. Project managers dare not find that a trivial item, such as late delivery,
wrong specification, inadequate access, incorrect size, faulty instrument, lack of suitable personnel and
so forth, is precluding a successful project. And, certainly, no major task can go unchecked. Thus,
project managers must arrange for timely and appropriate reviews or inspections to confirm either that
the work is being done according to plan or that a deficiency exists that must either be corrected or
accommodated by changing the plan (Ruskin & Estes, 1994: 93).
Work orders
Another element in task control is the use of work orders to authorise work increments or packages. By
using work orders, the project manager can force personnel working on parts of the project to coordinate
their efforts: they may not proceed until authorised or the authorisation will be given only when the
project manager is satisfied that their interactions are properly reflected in their respective efforts. This
approach minimizes the chance of having to redo a portion of the work because of overlooking
interactions of related activities (Ruskin & Estes, 1994: 93).
54
Work orders also prevent flexibility for major revisions, which may be necessary if contingency
allowances are fully consumed. When an original contingency is used up, the only way the project
manager can provide for still other possible deficiencies and unforeseen events are to rescope some or all
of the remaining work. While it is theoretically possible to cancel work already authorised, it is time-
consuming and costly to do so. On the other hand, if most of the future work is yet to be authorised,
some of it can easily be cancelled, simply by not authorising it. Thus, using work orders makes it easier
for the project manager to rescope future work in light of the total situation and thereby better meet their
overall project goals (Ruskin & Estes, 1994:94).
2.4.4 Directing
Directing (Kerzner, 1998:227) is the implementing and'carrying out (through others) of those approved
plans that are necessary to achieve or exceed objectives. Directing involves such steps as:
Staffing: seeing that a qualified person is selected for each position.
Training: teaching individuals and groups how to fulfil their duties and responsibilities.
Supervising: giving others day-to-day instruction, guidance and discipline as required so that can
fulfil their duties and responsibilities.
Delegating: assigning work, responsibility and authority so others can make maximum utilisation
of their abilities.
Motivating: encouraging others to perform by fulfilling or appealing to their needs.
Counselling: holding private discussions with one another about how he/she might do better
work, solve a personal problem or realise his/her ambitions.
Coordinating: seeing that activities are carried out in relation to their importance and with a
minimum of conflict.
55
Directing subordinates in a project environment is not an easy task because of both the short time
duration of the project and the fact that employees might still be assigned to a functional manager while
temporary assigned to your effort. The possibility of "getting to know" one's efforts may not be possible
in a project environment.
Directives should be written with one simple and clear objective so that subordinates can work
effectively and get things done first time right. Oral orders and directives must be and should be
disguised as suggestions and requests. The requester should ask the receiver to repeat the oral order so
that there is no misunderstanding (Kerzner, 1998:228).
Project managers must understand human behaviour, perhaps more so than functional managers. The
reason for this is that the project manager must continually motivate people toward successful
accomplishment of project objectives. Motivation cannot be accomplished without at least a
fundamental knowledge of human behaviour.
Kerzner uses organisational behaviour model, Theory X and Theory Y by McGregor. The model is best
described Robbins (1998 170):
Douglas McGregor proposed two distinct views of human beings: one basically negative labelled Theory
X, and the other basically positive, labelled Theory Y. McGregor concluded that manager's view of the
nature of human beings is based on certain grouping of assumptions and that he tends to mould his
behaviour toward subordinates according to these assumptions.
Under Theory X, the four assumptions are held by managers are:
Employees inherently dislike work and, whenever possible, will attempt to avoid it
Since employees dislike work, they must be coerced, controlled, or threatened with punishment
to achieve goals
Employees will avoid responsibilities and seek formal direction whenever possible
56
Most workers place security above all other factors associated with work and will display little
ambition
In contrast to these four negative views about the nature of human beings, McGregor listed four positive
assumptions that he called Theory Y:
Employees can view work as being as natural as rest or play
People will exercise self-direction and self control if they are committed to the objectives
The person can learn to accept, even seek responsibility
The ability to make innovative decisions is widely dispersed throughout the population and is
not necessarily the sole province of those in management positions
What are the motivational implications if one accepts McGregor's analysis? The answer is best
expressed in the framework presented by Maslow. The Theory X assumes that lower order needs
dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid
than Theory X. Therefore, he proposed such ideas as participative decision-making, responsible and
challenging jobs and good relations as approaches that would maximize an employee's job motivation.
This proposition links to Hersey & Blanchard's Model of Situational Leadership, which is explained
later.
25 ll effine the scope of work for the prof ect
The failure to define and agree on the scope of work prior to starting a project is one of the most
frequent causes of cost overruns and schedule delays. There are a number of reasons for this, such as the
common perception that time is short and everyone understands what has to be done anyway. Another is
the feeling that, if the full scope of work is revealed, the project may not be approved. Even when
design specifications are prepared in detail, experience shows that contractors will often encounter many
unforeseen problems. All if this is often due to the inherent difficulty in defining the scope of the small
project due to its revamp nature (Westney, 1985:39).
57
When a project is complete? Does a project scope include start up and commissioning of all systems?
Does it include final revisions of all drawings? Does it include all punch list items? The answer is, it all
depends. Some projects include these items and others do not (Westney, 1985:39).
If a clear definition of the technical and planning scope of work cannot be easily obtained, the project
manager should clearly document his assumptions, and thereby set the basis for discussing changes if the
assumptions turn out to be incorrect.
2.6 Commissionitng
The commissioning stage is deceptive to the uninitiated. If start up were as simple pressing a button or a
switch, everyone would be delighted but this is rarely the case. To examine this stage in some detail the
following subdivisions may be discerned (not necessarily in strict chronological order) (Snowdon,
1977:27):
Verification that the work has been completed to the approved design. This is an overlap of the
construction activity and needs to be done once thoroughly and not twice partially.
Performance testing to acceptable standards. Methodical verification is required and should
achieve high degree of confidence.
Dummy runs.
Operator training may have already have begun during construction but will be remembered that
the end of the commissioning stage is routine operation.
Stage-wise operation may be necessary in a multistage project or process. It may also be
necessary to try out latter processes first to pave the way for subsequent successful operation of
the earlier stages. Stage-wise activity mat also be necessary to achieve quality checks at
58
intermediate places in production lines.
o Planning and programming of all these activities is obviously necessary particularly as the
pressures will be very severe with the majority of the capital spent and a great anxiety to achieve
some return with all possible speed.
2.7 Takeover
Most authors make mention of project takeover, but do not delve into the subject. Takeover marks the
beginning of the end of the project, where the customer takes over the functional aspect of the new
operation. This has to be preceded by successful commissioning, this means that the objective has been
achieved. Whittaker (1995:358-359) states the following:
It is usual for commissioning to be carried out under the supervision of the owner of the technology: the
contractor, a third party or the employer himself. If the employer is responsible for commissioning, then
this may be managed by the receiving works, rather than by the employer's project manager. In any
case, the bulk of the staff concerned in the commissioning will be provided by the employer, and will be
composed of experienced operating staff who must work closely with design, construction and the
works, and many of them will go on to operate and maintain the plant on a permanent basis. The first
members of commissioning team to be appointed will be the works representatives on the employer's
project team. The assembly and necessary training of the rest team will need to commence some months
before the first part of the completed plant is to be handed over. Plant operating instructions and
emergency procedures must be produced. At the same time the commissioning plan must be developed
to detail with that of construction, fleshing out the bare outlines that were included in the project
program at the sanction stage.
The construction management will be concerned to agree the timing of takeover and the required
condition of the plant at the time. Both the size of the commissioning task and its nature require that it
be carried out in a phased way: it is not practical to start up everything at once even if resources
permitted. The possibility of overlapping construction and commissioning therefore arises, and this is
59
commonly done. However, the way in which the construction of a process plant is most efficiently
organized does not match the requirements of a phased commissioning program. Systems that are made
live will run through areas where construction is still proceeding. High safety standards, and rigorous
clearance and permit to work procedures will be required. Both construction and commissioning labour
forces will need to be experienced, well trained and disciplined. Where this is not the case, the extent of
overlap must be reduced.
The take over of a major process plant from construction to the commissioning team is a complicated
business. The work that follows erection — cleaning, inspection, testing and generally confirming that
the plant is in fit state to start up — is extensive. If not properly managed there can be a good deal of
duplication of effort by the construction and commissioning teams. It is therefore important that both
should be clear about what is required and who is responsible. Proper budgeting and allocation of costs
is also desirable. The various responsibilities might be as follows:
o Construction
Erection: complete to design and specifications. Defects rectified, cleaning, flushing and
pressure testing complete. Construction equipment, rubbish and debris to be removed.
Conditioning: including air and steam blowing of lines, leak tests, any further water
flushing required, service tests and acid washing. Oil changed in gearboxes, motors run
to confirm direction of rotation. Instruments loop checked and calibrated, checked.
o Takeover
The customer takes over functional aspect of the operation, preceded by successful
commissioning. Start incorporating project into existing works.
60
o Commissioning:
o Pre-commissioning: including water trials, trials of rotating equipment.
o Commissioning: chemicals introduced into the plant.
2.7.1 Conclusions
Although the conditioning work is the responsibility of construction, the definition of what needs to
done and the commissioning team would lay down the final standards of acceptance, who must monitor
what is done. The nature of the conditioning work is such that an individual sub-contractor is unlikely to
agree to its inclusion in the program for which he accepts liability.
Mechanical completion and takeover by the commissioning team may be separated by the conditioning
stage (Whittaker, 1995:360).
Takeover should not be confused with handover, the difference between the two being:
Takeover: operation start to incorporate the project into existing works, but operating rates need to be
achieved.
Handover: when operating has been achieved and the plant is in a suitable state, the handover and
divestment of the project team can begin. Operations are now fully responsible for the project.
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2.8 Summation of Literature Study
Life cycle management, the basis being Kerzner and Shtub et al, best implements the process of project
management. Therefore, management will be situational, hence the model developed by Hersey and
Blanchard is best suited. The core function of management is planning, organising, directing and
controlling (Kerzner, 1998:5).
The model shown below is called the Contemporary Systems Approach to Project Management.
2.8.1 Phase 1 Conceptual Design
Determine goals (2.2.2.1) and (2.2.5)
Establish system concepts to provide initial strategic guidance to overcome existing or potential
difficulties (2.2.1.1)
Show project needs will be met through project activities e.g. conduct technology search, if
technology does not exist in-house, develop R&D program or bring in consultancy's (2.2.4) and
(2.2.2.1)
Examine alternative ways of achieving goals (2.2.1.1) and (2.2.5)
Determine environmental and economic feasibility (2.2.1.1) and (2.2.5)
Provide answers for (2.2.1.1):
What will the system cost?
When will the system be ready?
What will the system do?
How will the system be integrated into the existing systems?
What resources are required?
Generate scope (2.2.3)
Select initial system design that will best satisfy the project goals (2.2.2.1)
62
Liase with the customer to check if the work requirement or project goal is properly understood
(2.2.3)
Go/no decision (2.2.3) and (2.2.4)
2.8.2 Phase 2 Detailed Design
Select the appropriate project manager (2.2.2.2) and (2.2.5)
Commitment from senior management (2.2.2.2) and (2.2.4)
Refine the elements under the conceptual phase (2.2.1.2)
Select the "best" system for achieving the goal (2.2.1.2) and (2.2.5)
Reach agreement on system design and then generate the following (2.2.2.3) and (2.2.5):
Freeze project scope
Project planning
Project Budget
Project Schedule
Determine the extra resources required and for what duration (2.2.1.1)
Identify areas of risk and uncertainty and outline plans for further exploration of these areas
(2.2.2.3)
Conduct a HAZOP (hazardous operation study), operation to be intrinsically safe in all
respects/disciplines of engineering and operations (2.2.2.3)
Start documentation process such as policies, procedures, job descriptions and etc (2.2.1.2)
Can the system still be afforded, i.e. after final costing is it economically viable (payback)
(2.2.3)?
Detailed contingency plans for areas of risk: Can enter into technological agreements to share or
brokerage of information (2.2.2.3)
Develop procedures for work authorization, performance reporting (2.2.2.3)
Develop training manuals (2.2.1.2)
63
2.8.3 Phase 3 Production
Updating of detailed plans conceived and defined during the preceding phases (2.2.1.3), (2.2.3)
and (2.2.5)
Maintain top management support and flow of communications within and among the
participating organizations (2.2.2.4) and (2.2.5)
Verification of system production specifications (2.2.1.3)
Update change of scope register (2.2.2.4) and (2.2.5)
Beginning of production, construction and installation (2.2.1.3)
Monitor actual progress and compare to baseline plans, i.e. critical path and network diagrams
and WBS (2.2.2.4), (2.2.3) and (2.2.5)
Final preparation and dissemination of policy and procedural documents (2.2.1.3)
Performance of final testing to determine adequacy of the system to do the things it is intended
to do, if so, hand over document to be signed, this if process can generate some profit, but not
target profit (2.2.1.3)
Training of operators (2.2.1.3) and (2.2.5)
Development of technical manuals and affiliated documentation describing how the system
intended to work (2.2.1.3) and (2.2.5)
Develop systems to support the system during its operational phase (2.2.1.3)
2.8.4 Phase 4 Operational
Acceptance of final results by customer (2.2.4)
Check competency of operators (2.2.3) and (2.2.2.3)
Evaluation of technical, social and economic sufficiency of the project to meet actual operational
conditions (2.2.3) and (2.2.5)
Use of the system results by the intended user or customer (2.2.1.4) and (2.2.3)
Start to prepare handover documentation (2.2.2.5) and (2.2.3)
64
Actual integration of the project's product or service into existing organizational systems
(2.2.1.4)
Provide feedback to organizational planners concerned with developing new projects and
systems (2.2.1.4)
Evaluation of the adequacy of supporting systems (2.2.1.4)
2.8.5 Phase 5 Divestment
Develop plans for transferring responsibility to supporting organizations, i.e. handover (2.2.1.5)
and (2.2.5)
Divestment or transfer of resources to other systems (2.2.1.5) and (2.2.3)
2.8.6 Phase 6 Assessment
Development of "lessons learnt from system" for inclusion in quantitative-qualitative database to
include:
Assessment of image by the customer (2.2.15) and (2.2.5)
Major problems encountered and their solutions (2.2.1.5)
Technological advances (2.2.1.5)
New or improved management techniques (2.2.1.5)
Recommendations for future research and development (2.2.1.5)
Recommendations for management of future programs, including interfaces with associate
contractors (2.2.1.5)
Other major lessons learned during the course of the system (2.2.3)
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2.8.7 Planning & Control
Through each of the steps mentioned in the phases of project management, planning and control must be
practiced to a high degree.
The steps that must be followed during planning are as follows:
Understand exactly what is required by the client, sign a contracted scope of work, this to be
used as a "live" document for the service rendered. The scope should include the objective and
termination dates (2.4.1.1).
Establish a basis of a planning network (CPM), identifying key milestones. Plan to do detail
planning for each phase only when necessary. Conduct a hazardous operation and environmental
impact studies (2.4.1.5)
Assess time and resource requirements and provide slack time (i.e. overruns) (2.4.1.1).
Confirm staff allocations via organizational matrix (2.4.2.3).
Make allocation for staff training (2.4.1.5).
Project authority should be clearly defined (2.4.1.3).
The steps to be followed during the controlling are as follows:
Establish communication systems, both within the project and senior management (2.4.3).
Hold fortnightly meetings to monitor progress with the client. Informal communication channels
should be established (2.4.3.1c).
Use Deming's PDAC to project plan in check (2.3.4).
Monitor quality in all regards, workmanship, service rendered and received (2.4.3.1 b).
Maintain a scope change register (2.4.3).
Track actual costs to forecasts (2.4.5.1a).
Record reasons for slippage, inform management/client and move termination date accordingly
(2.4.3.1a) and (2.4.3.1c).
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8) Does the project management procedure comply with IS09002 (2.4.3)?
2.8.8 Management Style
The management style to be adopted is the Hersey & Blanchard S4/M4 relationship (2.3) by work is
delegated and there are low management relationships. It is assumed that team members are willing and
able. The manager should also have the ability to motivate (McGregor Theory X &Y and Maslow
Theory of Needs) the project.
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clua ger 3 Method&logy
3.1 l[ntroduction
The methodology that was adopted is an integral part of the understanding of the basic concepts of
this research. Project management, as with any other professional trait needs to be developed. One
of the final objectives in project management are lessons learnt, so, does one need to go through a
life span to gain the necessary experience, NO. There is no point in wasting time to learn from one's
own mistakes — a clever man learns from his own mistakes, an intelligent man learns from others'
mistakes. TECHNIKON WITWATERSRAND LIBRARY
Questionnaires for both experienced and inexperienced project managers were drawn up. The primary
reason for this is to determine whether experienced project managers support the model described in 2.8
Contemporary Systems Approach to Project Management. Secondly, to determine what inexperienced
perceive project management to be and would the use of the stated model assist them in the execution of
a project they are responsible for.
The model in 2.8 is summation of various authors' works. For the above reasons structured surveys
were prepared for both experienced and inexperienced project managers.
This research was conducted at African Products, a corn wet milling company producing starch, glucose
and animal feeds in South Africa. There are four sites country wide: one plant in Germiston -
Johannesburg, one plant in Alberton - Johannesburg, one plant in Meyerton — Meyerton, one plant in
Belleville — Cape Town and a head office in Meadowdale - Germiston.
lo 33
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3.2 African Products Project Structure
One of the strategic objectives of African Products is to be world class — this is demonstrated in
attracting and retaining the best employees. Therefore, there are always opportunities develop.
The current human resource grading system is the Patterson system. The project structure is based
on the organisational matrix. This creates an excellent training field for the inexperienced project
manager.
easons for choosing (questionnaires
A questionnaire is a printed list of questions which respondents are asked to answer. (Mellville &
Goddard, 1996:43). The questionnaire must be an effective one. This requires planning before hand to
ensure that the data can be objectively analysed afterwards.
The main reason for opting of for the questionnaire is that the researcher knows what precisely what
information is required to validate the model presented in 2.8.
Closed (or structured) are used in large-scale data collection. Here respondents choose from alternatives
(e.g. true/false) or assign numerical score or ranking (Mellville & Goddard, 1996:43). The questionnaire
used in this study is based on a five-point scale, which allows for a neutral answer.
69
A good questionnaire:
Is complete: gets you all the data you need
Is short: don't abuse the respondents time or concentration
Asks only relevant questions
Gives clear instructions
Has precise, unambiguous and understandable questions
Has objective answers, don't suggest answers
Starts with general questions
Has appropriate questions: if you have to ask sensitive questions, put these at the end
Uses commonly closed questions, often with a 4-point scale.
(Mellville & Goddard, 1996:43-44)
The above was taken into consideration when drawing up the two questionnaires in this study.
Some of the advantages of using a questionnaire are:
Helps the researcher to obtain data fairly easily
Information from questionnaires are easily coded
Benefits the scientific community if the measures are well validated and are reliable
Often is a catharsis for respondents.
3A Criteria for seliection of respondents
The researcher was of the opinion that the criterion for respondent selection should be:
70
0 Inexperienced project manager: a person with less than two years of experience in this field,
i.e. managing projects. The premise for choosing two years is based is that the projects team
in African Products is relatively young in terms of employees' ages, hence experience is not
vastly available.
o Experienced project manager: a person with more than two years experience in this field.
This was based on the premise that this person has managed projects for greater than two
years. Most long-term projects have a duration of a year, for this reason the researcher that
this calibre of person was ideal an experienced project manager. Also, it is rare or never that
a large project is managed by an inexperienced project manager.
33 Questaionnaires
Questionnaires were forwarded to both in/experienced and experienced project managers, each
questionnaire is discussed in 3.5.1 and 3.5.2 respectively.
In Appendix A, the two types of questionnaires are shown.
3.5.1 Inexperienced Project Managers' Questionnaire
An inexperienced project manager is defined as someone who has less than two years experience as a
project manager. In African Products this type of person is given first hand training being part of project
team, as time progresses the responsibility of decision-making is increased.
Since most inexperienced project managers are recent graduates or diplomats their knowledge is limited
both practically and theoretically. As time is spent working on project, the future project manager
begins to gras.p the knowledge of executing a project to completion within the parameters of time, cost,
resources and technology. Also, how the matrix structure works.
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The following are the questions posed to the inexperienced project managers:
What are the most important management functions in project management?
Can project be broken down into phases, if so state?
Would the model presented in 2.8 make project management easier?
What are the pitfalls of using such model as presented in 2.8?
How and why is planning and controlling important?
How should one deal with deviations from plans?
What management style is preferred (by the project manager)?
3.5.2 Experienced Project Managers' Questionnaire
An experienced project manager is defined as someone who an excess of two years experience working
in project teams and managed project independently. These project managers have both practical and
theoretical knowledge of project management.
The experienced project manager was asked to comment on each phase of the model presented in 2.8.
They had the following in terms of answering the questions, five-point scale:
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
Recommendations
Recommendations gave the opportunity to express a personal view point be positive or negative.
In addition, outlines of planning, controlling and the Hersey & Blanchard S4/M4 situational
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management model were also surveyed with the experienced project managers. Again, they had the
aforementioned options in answering the questions.
3.6 Samphing
The target population for the purpose of this study were people that involved in project management at
African Products.
Due to the size of the company few people are involved in project management. For this reason only
nine inexperienced and ten experienced project managers were sampled. The focus for inexperienced
project managers firstly on determining the level of understanding in terms of project management and
secondly would the respondent gain from utilising the model presented in 2.10. The focus on
experienced project managers was determine if the these respondents accepted the model presented in
2.8.
3,7 Data atfiallysis
The data obtained from the questionnaires sent out has been coded and has been input into a computer
spreadsheet program to assist in analysis. According to Emory & Cooper (1994:381) "Coding involves
assigning numbers to the answers so that the response can be grouped into a limited number of classes or
categories." This was the method used for analysing the responses for both experienced and
inexperienced project managers.
The objective of descriptive research can be seen as the portraying of an accurate profile on events or
situations and may be the forerunner to, or the extension of exploratory research. It can be described
as "to have a clear picture of the phenomena on which you wish to collect data prior to the collection
of the data (Saunders et al, 1977:79).
The descriptive research in this study will take the form of the systematic collection information on
assessment of the model proposed in 2.10 in terms of acceptance, this by both experienced and
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inexperienced project managers. The data obtained can be used to assess the knowledge of
inexperienced project managers and acceptance by experienced project managers together with
recommendations.
74
Cm ter 4 Resullts
401 Survey Results — Inexperienced Proiect Managers
The questionnaire is given as Appendix A.
4.1.1 Question!
Inexperienced project managers were asked in their opinion what are the most important management
functions in project management. Table 4.1 shows the response to this question.
Table 4.1: Responses to Question1
Planning Organising Controlling Directing
Personl * * *
Person2 * * * *
Person3 * *
Person4 * * *
Person5 * * *
Person6 * * *
Person? * *
Person8 * *
Person9 * * *
The following terms were classified as synonyms by the researcher:
Directing = People management
Organising = Achieving objectives, delegating, scheduling
Coordinating = Planning
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Planning, Organising, Controlling and Directing is defined by Kerzner (1998:5) as the main management
functions in project management.
From Table 4.1 it can be seen that five people agreed as to the most important functions of project
management. This represents 56% of those surveyed. Some people could not state the functions of
project management explicitly. This is clear indication that the functions are project management are
not clear, this is due receiving little or no training at all. Most peoples' general perception of a project —
a goal to be met in a limited time and money and also non-repetitive. Beyond this there is very little that
is understood...
4.1.2 Question 2
In Question 2 the sample was asked if a project could be broken down into phases and if so, requested to
state them. Table 4.2 shows the response to this question.
Table 4.2: Various Phases of a Project
Phase Conceptual Detailed Production Operational Divestment Assessment
Breakdown Design Design
Personl Yes * * *
Person2 Yes * * * *
Person3 Yes * * * *
Person4 Yes * * * *
Person5 Yes * * * *
Person6 Yes * * * * * *
Person? Yes * * * * *
Person8 Yes * * * *
Person9 Yes * * * * *
The following terms were classified as synonyms by the researcher:
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Conceptual = Evaluation of idea, idea
Detailed design = Final design
Production = Build, erect, implementation, execution, supply
Operational = Performance test, commission, benefit of idea
Divestment = Commercialisation, hand over
Assessment = Project evaluation, customer satisfaction
Table 4.2 indicates that 22% of the respondents correctly identified the phases of project management.
The remaining 78% could identify four to five the phases in project management, the phases referred to
the model presented in 2.10 — Contemporary Systems Approach to Project Management. Four
respondents, 44% were able to categorise five of the six phases. This indicates that they have some idea
what the phases of project management is, hence the need for training in applying the postulated model.
4.1.3 Question 3
Question 3 enquired if a model as postulated in 2.10 — Contemporary Systems Approach to Project
Management was made available, would this make project management easier, i.e., systematic. The
answer to this question is depicted in Table 4.3.
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Table 4.3: Utilisation of Contemporary Systems Approach to Project Management
Yes No
Person] *
Person2 *
Person3 *
Person4 *
Person5 *
Person6 *
Person? *
Person8 *
Person9
The comments are summarised as follows by the researcher:
Good base to operate from
Clearly outlines activities to be performed, can be modified to suit predicament
Work not compromised
Can be used a tool for project tracking/performance
Better planning and control
The model may not always work in a crisis situation
Using such a model will promote sameness and ease of documentation and future additions
A very definite path to follow, which leads to professional management of the process
As shown in Table 4.3, there is 100% support for the Contemporary Systems Approach to Project
Management. This clearly shows the Contemporary Systems Approach to Project Management will be
valuable tool in the execution of the project.
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It is true that postulated Model cannot be used in a fast track project. Something that overcomes this
hurdle, fast track projects is always managed by experienced project managers. A strong technical base
usually compliments such projects, i.e. experienced operators and engineers.
4.1.4 Question 4
This question pondered if there were any pitfalls in using as postulated in 2.10 — Contemporary Systems
Approach to Project Management. The replies to Question 4 are shown in Table 4.4.
Table 4.4: Pitfalls to using the Contemporary Systems Approach to Project Management
one Commented
Personi *
Person2 *
Person3 Commented
Person4 *
Person5 *
Person6 Commented
Person? Commented
Person8 Commented
Person9 *
The comments received to Question 4 are shown below:
People have their own preferences and may not accept the Model
Frequent use would lead to greater acceptance
Model may be industry specific
If you not planning, you planning to fail
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o No two projects are the same
o Adhering to all aspects of the model at all times can take time. Not all projects are big enough
for full project management.
As can seen from the above comments there are valid points raised as pitfalls, also in a fast track project
a lot steps in the project management procedure will be omitted, i.e. tailored to the situation. Also,
people tend to develop comfort zones, that is, set ways in doing things, convincing such people to
change is a project in itself — you cannot teach an old dog new tricks. Therefore, if this model is
implemented at grass roots level, it must be implemented in the full, unless the project is being fast
tracked, otherwise the natural flow of project management will not be realised. Respondents that
indicated that there were no pitfalls to the utilisation of the model were 56%. This can be viewed as
enthusiasm for using such a model. Gauging the response to Question 4, it obvious that the use of the
model will definitely benefit inexperienced project managers.
4.1.5 Question 5
Question 5 prompted inexperienced project managers to answer why planning and control are important
in project management. The replies to this question are shown Table 4.5.
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Table 4.5: The Importance of Planning and Control
Replies
Person 1 To maintain overall control and enables proper management
Person 2 Communicates objectives to be achieved within the constraints of time and
money
Person 3 Focus on objective and know when end point is reached
Person 4 If you don't plan, you planning to fail
Person 5 Eliminate overlaps and saves time and money
Person 6 Establish milestones and overall performance can be compared to forecasts
Person 7 Need set objectives and show how objectives are to achieved
Person 8 Lack of planning and control leads to overspending and under/over utilisation
of resources, which in turn makes an unhappy customer and low profit
margins.
Person 9 To make sure the right product is delivered at the right price at the right place.
All of the replies to Question 5 are correct. The objective of a project is to achieve the set objective
within the constraints of time, technology and resources — resources being mainly finances and people.
Also, a project is a non-repetitive task. Therefore, to be successful at project management one requires
planning and controlling such that the customers needs can be satisfied. Planning and control is required
in each phase of the Contemporary Systems Approach to Project Management.
If there is no plan, there is no way one can know where one is going. This will be Chaos even the Chaos
Theory will be of no use! As one the respondents stated "If you not planning, you planning to fail."
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4.1.6 Question 6
In Question 6 respondents were asked how should one deal with deviations from plans. Table 4.6 shows
the answers to this question.
Table 4.6: Responses to Deviations
Contingency
Planning
Personl *
Person2 *
Person3
Person4 *
Person5 *
Person6 *
Person?
Person8 *
Person9 *
Person 8 comments:
o Change /amend plans such that it has the least impact on the critical path, minimum penalties
with a happy customer. In no way alter the end goal.
This is true, and more importantly the quality of the goal must not be compromised.
In essence, one has to plan for unexpected. As Murphy's Law states: If something can go wrong, it will.
All responses to this are question is considered correct.
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4.1.7 Question 7
Question 7 probed what type of management style did the inexperienced project managers prefer. This
was based on the Hersey & Blanchard Model of Situational Leadership. Table 4.7 illustrates the
management style preferred.
Table 4.7: Preference of Management Style
Delegative Participative Participative
To Delegative
Personl *
Person2 *
Person3 *
Person4 *
Person5
Person6 *
Person? *
Person8
Person9 *
Some people chose participative to delegative mainly due to joint decision making by virtue of the lack
of experience. All the inexperienced project managers viewed this as a learning field. The reason for
this is that in a participative structure there is joint decision making, hence the Manager bears some of
the responsibility with regards to decision. The manager must mentor is such a way that when decision
is reached, the project team member must view it as though he/she has reached that decision by
himself/herself. Furthermore, this will boost the confidence of the inexperienced project manager.
Respondents that chose the delegative management style were 30%. People that responded in manner
are specialists in their fields, e.g. software programming. Their work forms part of the final product but
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is dependent on others' outputs. As the quoted example, software programming is a specialised field, it
is highly unlikely that a project manager will have the knowledge to perform such work activities. This
is the advantage of the organisational matrix, specialised skills are sourced from other departments.
Respondents choosing a participative to delegative style were 56% this mainly due to inexperience. It is
assumed that with practice this will develop to delegative management style.
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402 Survey Resulits — Experienced Proiect Mangers
The questionnaire is given at the end of Appendix A.
4.2.1 Phase 1 Conceptual Design
The break down of tasks for Phase I as shown in 2.8 was presented to experienced project managers to
solicit their opinions. The responses are represented in Table 4.8.
Table 4.8: Responses to Phase 1
Phase 1
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9
Person 10 *
The percentage of respondents in agreement with Phase 1 is 100% (tally of strongly agree and agree).
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Person 6 commented that having an agreed scope of work is one of the most important points in this
phase. Also, as stated by Person 6 and 8, resourcing from the client is important in that there is someone
on the project team to make decisions on behalf on the client as quickly as possible with the knowledge
of what is happening on the project at that time. This is particularly important for customer satisfaction
and hence will make the Assessment Phase easier.
Person 9 raised an important concern of highlighting legal issues and/or requirements, e.g. compliance to
air pollution limits. If this is not done a whole project can be aborted or raise project costs to
unattractive returns. The process of ascertaining legal compliance is achieved by conducting an
environmental impact assessment, this is shown in Appendix B.
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4.2.2 Phase 2 Detailed Design
The break down tasks of Phase 2 was presented to experienced project managers, this as shown in 2.8.
The results are shown in Table 4.9.
Table 4.9: Responses to Phase 2
Phase 2
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3
Person 4 *
Person 5 *
Person 6
Person 7 *
Person 8 *
Person 9 *
Person 10 *
As can be seen from Table 4.9 there is 100% agreement to Phase 2.
Person 1 commented that the project manager must train/mentor future project managers, hence this is
further extrapolated that it is vital that inexperienced project managers form part of the project team.
Persons 4 and 5 commented that a scope change register is maintained to record any changes. The client
must approve any additional expenses.
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Person 8 stated some managers might not support the project and therefore will not make resources
available for the project. This does make the execution of the project extremely difficult, therefore it is
imperative to have signed commitment of resources for the project.
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4.2.3 Phase 3 Production Phase
Phase 3 as explained in 2.8 was presented to experienced project managers to solicit their opinions. The
results are depicted in Table 4.10.
Table 4.10: Responses to Phase 3 TECHNIKON WITVvA IEHSRAND
LIBRARY
Phase 3
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10 *
As can be seen from Table 4.10 there is 100% agreement to aspects of Phase 3.
Person 1 and 9 commented that punch listing should be included in this phase. Punch listing is an
activity whereby the quality of work is inspected by the client and defects recorded. These defects have
to be remedied before the divestment phase of the project. An e.g. of a punch list item: leaking roof or
doors not shutting properly. Defects can be minor or major, this highly dependent on the client's
expectation. The punch listing activity will be included in Phase 3.
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Person 8 and 10 highlighted the importance of the CPM method, one needs to be realistic in time
allocations for the different tasks.
4.2.4 Phase 4 Operational
Phase 4 as outlined in 2.8 was presented to experienced project managers in order to solicit their
opinions about the tasks that make up this phase. The results are depicted in Table 4.11.
Table 4.11: Responses to Phase 4
Phase 4
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10 *
As can be seen from Table 4.11 there is 100% agreement to Phase 4.
Person 6's comment best outlines the importance of this phase "this is usually an aspect that is not
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handled that well, but can carry a lot of negative emotions and feedback if not properly done."
Person 8 suggested that takeover should take place once the project is commercially viable, i.e. client
reaps financial benefit. This does make sense but removes a lot responsibility from the service provider,
hence not all items are completed and leads to customer dissatisfaction.
4.2.5 Phase 5 Divestment
Phase 5 as outlined in 2.8 was presented to experienced project managers to solicit their opinions about
the tasks in this phase. The results are shown in Table 4.12.
Table 4.12: Responses to Phase 5
Phase 5
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10 *
As can be seen from Table 4.12 there is 90% agreement with Phase 5.
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Person 6 commented that care should be taken when the project team is broken up as people may have
formed strong working relations. The matrix organisation ensures that people always have a home to go
to.
Person 7 justified his indifferent opinion by stating, "divestment is valid and suitable for in house project
department." This is not true, as the service provider cannot be expected to baby-sit the project beyond
the end point, for this reason it shouldn't have been a project in first place. Divestment is necessary for
the client to take ownership of the project.
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4.2.6 Phase 6 Assessment
Phase 6 as outlined in 2.8 was presented to experienced project managers to solicit their opinions with
regards to the tasks in this phase. The results are shown in Table 4.13.
Table 4.13: Responses to Phase 6
Phase 6
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person I *
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9
Person 10 *
As can be seen from Table 4.13 there is 100% agreement with Phase 6.
Persons 1, 5 and 8 commented that lessons learnt not shared organisationally. This is a major
disadvantage, as the company will as pay for the same mistakes rather than learn from them. Also, there
is little time spent between projects, as one is being terminated the next project is beginning.
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Person 10 raised an interesting point: could the project be designed better. This would be extremely
valuable if the project were to be repeated.
4.2.7 Planning & Controlling
In this question people were asked what was their opinion about the points mentioned in 2.11 under the
heading of Planning & Controlling. Planning & Controlling were surveyed separately and results shown
in Table 4.14 and Table 4.15 respectively.
Table 4.14: Responses to Planning
Planning
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1 *
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10 *
As can be seen from Table 4.14 there is 90% agreement with regard to the steps outlined in Planning.
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Person 5 commented that the project manager should get signed commitment for personnel for duration
of project, i.e. team members priorities must not change during the project, a valid point indeed. This is
negotiated in Phase 2, 4.2.2.
Person 7 stated that the scope should change from being "live" to frozen at some point during the
project's life and late changes are often done at very high cost. If one has scoped properly and the scope
is used a point of reference for changes, hence the referral of being "live", the client signs a contracted
scope. This is regarded as "frozen scope".
Person 8 added that allocations should be made for the training of future project managers.
Table 4.15: Responses to Controlling
Controlling
Strongly
Agree Agree Indifferent Disagree
Strongly
Disagree
Person 1
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10
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As can be seen from Table 4.15 there is 100% agreement with regards to the steps outlines in the
controlling of a project.
Person 1 commented that feedback should be both formal and informal.
Person 6 commented, "If the steps were executed well it will make a big impact."
Person 10 made an interesting remark, "Finishing on time but above budget is better than late and on
budget — you can never recover lost income by late delivery."
4.2.8 Management Style
The suggested management style of Hersey & Blanchard M4/S4 relationship was presented. In this
management style the work is delegated thereby transferring decision-making power to the subordinate.
Also, it assumed that followers are willing and able to execute the delegated tasks. In addition, the
manager should be able to motivate personnel via McGregor's Theory X & Y and Maslow's Theory of
Needs. The experienced project manager's were asked their sentiments about this. The results are
shown in Table 4.16.
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Table 4.16: Responses to Management Style
ManagementAgree
Strongly
Agree Indifferent Disagree
Strongly
Disagree
Style
Person 1
Person 2 *
Person 3 *
Person 4 *
Person 5 *
Person 6 *
Person 7 *
Person 8 *
Person 9 *
Person 10
As can be seen from Table 4.16 there is 80% support for the suggested management style. The
remaining 20% was made as 10% indifference and 10% disagreement.
The persons that agreed stated that this is an ideal management style. In reality one often has to manage
a diverse group of people with different levels of experience, hence may also require individual
attention. This takes up time, instead of directing the project manager is now executing, this is not
supposed to his function unless this is viewed as part of training.
Person 5 commented that some project managers are ignorant of this management style and both
managers and team members should be educated in this regard.
Person 3 took an indifferent stance, he stated that the beginning of project is S2 (selling) and S3
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(participating). This is true when negotiating with the client to win the contract, but not so managing the
project team. Therefore, this statement is disregarded on the basis that the question was not fully
understood.
Person 7 chose to disagree with the suggested management style. His feeling was that team members
tend to focus on the tasks/items rather than overall progress, the project manager should constantly drive
the critical path items to deliver the project on time. This is what is intended in the suggested
management style, again, this is a case where the question as not properly understood.
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Chapter 5 (Co>rnc s mii & Recommendations
501 Concilusiton of Surveys
The topic for this dissertation was a Contemporary Systems Approach to Project Management. Very
often inexperienced employees are dropped into the deep end where they have to manage a project. At
best, some have had an introductory class during the course of their studies.
Project management involves different phases. Each phase requires planning, controlling, directing and
organising. The goal of the project must be delivered within three crucial parameters:
Within time
Within resources (people and finances)
Within technology
At times, time is no friend, as friends between the project and time, they're out of time..In this case, it is
better to deliver the project on time and over budget rather than late and within budget. Lost time cannot
be made up, but money can. Hence, it is imperative in being goal focussed, and manage by objective.
After all, projects will always have an objective.
Any new project endeavoured will bring about change this may be in terms of management style,
technology and methods. A project therefore:
Involves new and unknown tasks
Leads to change in people's daily work or living conditions
Requires the right people at the right time, but staff of different backgrounds who are not
used to working together
Is subject to a strict deadline
99
A project implements change, which is difficult in itself. The change is occurring in a stated period of
time. It is an unknown task for many of those involved. Resources will be that in many cases are not
available or belong to other managers, organisationally speaking (Anderson et al, 1999:28-29).
Therefore, the project requires the establishment of an organisational structure as explained in 2.7.2, and
that the work in this structure be managed with the assistance of specific methods and tools. For this
purpose, it recommended to utilise the Contemporary Systems Approach to Project Management as a
tool for the effective execution of a project.
The special conditions associated with project management require special knowledge and methods.
Anderson et al (1999:29) include the following subsidiary tasks in project management:
Planning
Organising
Controlling
Directing (Kerzner, 1998:5)
Each of these management functions are integrated into the life cycle of project management. This is
demonstrated in the developed model of this study: Contemporary System Approach to Project
Management (2.8).
100
The following outcomes from Chapter 4 will be discussed with regard to:
The need for training
Acceptance of the Contemporary Systems Approach to Project Management
Risks of using the Contemporary Systems Approach to Project Management
Planning and controlling
Management style for a project
The need for training
Most of the inexperienced project managers could not mention the four management activities and the
different phases involved in project management, there is a need to train/educate these people in
managing a project. Also, there is great support for utilising the Contemporary Systems Approach to
Project Management, this will require further training in respect of applying the Model (2.8).
Each project must be staffed such that an inexperienced project manager is given the opportunity to gain
hands on experience. The project manager should take on the role as mentor. If possible, transfer some
decision making power to the prodigy, this will boost his/her confidence and reinforce the team concept.
Acceptance of the Contemporary Systems Approach to Project Management
Both, experienced and inexperienced project unanimously approved the Contemporary Systems
Approach to Project Management model. The philosophy being that there will be a manual at one's
disposal as a reference.
The model can be incorporated in company procedures hence become an official protocol. This ensures
that there is sameness and continuity in projects. Project tracking then becomes easier and will have
similar document controls.
The premise of the Model shown in 2.9 is that the quality of work is not compromised. This provides a
101
logical sequence of events, which is relatively easy to understand.
o Risks of using the Contemporary Systems Approach to Project Management
The risks are considered as being the down side of implementing the Contemporary Systems Approach
to Project Management.
People are naturally resistant to change, hence it will take some effort in winning their support. Prior to
doing so, the Model has to be proven practically. Theoretically, both inexperienced and experienced
project managers have approved of the Model.
The Model assumes that the right people are available at the right time, but in reality this may not be the
case. People may be tied up with other projects, on vacation or not released to the project by relevant
managers. This poses a serious problem as the constraints of time and money need to be met, this if
technology is proven or approved by the customer. For this reason, it may necessary to outsource certain
tasks, e.g. civil engineer to oversee the erection of a building).
Some people may not fancy endeavouring all the steps in the postulated Model (2.9), as this may be time
consuming. Omitting certain steps is acceptable given out of normal circumstances, e.g. fast track
project.
102
0 Planning and controlling
One needs to plan and control a project so that the objective is met within the stated constraints of time,
money and resources. In planning milestones must be set so that actual progress can be compared to
forecasts. This will immediately indicate whether the project can be delivered on time. Lack of
planning and control leads to overspending and under/over utilisation of resources, which in turn makes
an unhappy customer and low profit margins.
One has to plan such that the project is delivered at the right time at the right price. Once the plan has
been established, one initiates activities and controls/monitors them keeping the time target in mind.
In order to meet customer expectation it is vital that the customer makes someone available to the
project. This person will be the liaison between the project team and the customer. He/she shall be
charged with the responsibility of acting on behalf of the client.
After all as one respondent stated, "If you not planning you're planning to fail".
0 Management style for a project
Theoretically the preferred management style is the S4/M4 task and relationship based upon the Model
of Situational Leadership by Hersey & Blanchard. The inexperienced project managers preferred a
participative to delegative style due to the lack of experience — joint decision making. Therefore, it is
vital that inexperienced project manager be part of the project team for development purposes.
The project manager's duty is to manage and complete the project while also mentoring inexperienced
project managers.
Incapable people cannot staff the project as this would delay the project and cost substantially more.
Over/under staffing the project will also have adverse effects, e.g. costs.
103
The company has to use the organisational matrix to full effect. This ensures that competent people
make the project team. The major problem in this structure is the availability of staff.
There will be times when the project manager will adopt telling, selling, participating management
styles, this depending of the nature of work on hand. For the technical and professional tasks, this must
be delegated to able people. The project manager must not become involved in knit picking the design,
as this will cause compromise the goal. After all, that is why one delegates. Empower people to make
decisions in the best interest of the project, if in doubt then consulting should take place.
5.2 Recommendations
The environmental impact assessment should be included in Phase 1 of the proposed model.
This was recommended by the electrical engineering manager who is responsible for the
electrical installations on projects. The reason including the environmental impact study in
Phase 1 is that non-compliance to environmental policy could lead to the abandoning or
increasing the cost of the project. If forgotten, the project could be completed but may be
regarded as an illegal installation. In doing so, time, effort and money will be saved.
The model must be proven practically, then it can become part of the company's operating
procedures.
The model illustrated should be used to train inexperienced project managers.
The model should be used for future projects as this will make document controls the same.
104
11► ibililography
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1999,Kogan Page Limited, Great Britain
Blanchard FL, Engineering Project Development, 1990, Marcel Dekker, USA
Burk R, Project Management: Planning and Control, 1995, Second Edition
Emory CW, Cooper DR, Business Research Methods, 4 th Edition, 1994Irwin, Boston
Hersey & Blanchard, Organizational Behaviour Utilising Human Resource, 1982, 4 th Edition,
Prentice Hall, USA
Kerzner H, Project Management: A systems approach to planning, scheduling and controlling,
1998, Sixth Edition, John Wiley & Sons, New York, USA
Kliem RL, Ludin IS, Robertson KL, Project Management Methodology, 1997, Marcel Dekker,
New York, USA
Lewis JP, Fundamentals of Project Management, 1995, AMACON, New York
Maylor H, Project Management, 1996, Great Britain, Pitman Publishing
Melville S, Goddard W, Research Methodology, 1996, Creda Press, Cape Town
Robbins PS, Organisational Behaviour, 8 th Edition, 1998, Prentice-Hall, Inc., New Jersey
105
Ruskin AM & Estes WE, What Every Engineer Should Know About Project Management, 1994,
Marcel Dekker Inc., USA
Saunders M, Lewis P, Thornhill A, Research Methods for Business Students, 1997, Pitman
Publishing, London
Shtub et al, Project Management, Engineering, Technology and Implementation, 1994, Prentince
Hall, USA
Snowdon M, Management of Engineering Projects, 1977, Great Britain, Butterworth and
Company
South African Bureau of Standards, IS09000, 1994,South Africa
Stevenson WJ, Production Operations Management, 1999, Sixth Edition
Stuckenbruck LC, The Implementation of Project Management, 1996, Addison-Wesley
Publishing Company, Massachusetts
Turner RJ, The Handbook of Project Based Management, 1993, McGrawhill, UK
Van Der Waldt G & Knipe A, Project Management, 1998, International Thomson Publishing,
South Africa
106
Westney RE, Managing the Engineering and Construction of Small Projects, 1985, Marcel
Dekker, USA
Wideman Max R., A Framework for Project and Program Management Integration, 1991,
Project Management Institute, USA
Whittaker R, Project Management the Process Industries, 1995, John Wiley & Sons, New York,
USA
Wysocki KW, Beck R Jr., Crane DB, Effective Project Management, 1995, John Wiley & Sons,
Inc., USA
107
psr ___Klices
Appendix A
'Inexperienced project manager questionnaire
Project Management Questionnaire
This is survey to determine whether the opinion of inexperienced project managers in terms the
management functions to be carried out.
Title: Date
Questions for inexperienced Project Managers
1) In your opinion what are the most important management functions involved in project
management?
108
Can a project be broken down into phases, if so please state?
If a model was made available that outlined the series of events in the phases of a project,
would this make project management easier? Also, state reason for using such a model.
Model attached after question 7.
If any, what do think the pitfalls would be if such a model were utilized?
109
How and why is planning and controlling important?
,
No matter how good the controlling deviations will occur. How should one deal with this?
Being part of project team, what type of management style would you prefer? Also, state
why.
Proposed Project Management Modell
Phase 1 Conceptual Design
Determine goals
Conduct a feasibility
Establish system concepts to provide initial strategic guidance to overcome existing or
potential difficulties
Conduct technology search, if technology does not exist in-house, develop research and
development program or bring in consultants
Examine alternative ways of achieving goals
Determine environmental and economic feasibility
Provide answers for:
What will the system cost, within 25% accuracy?
When will the system be ready?
What will the system do?
How will the system be integrated into the existing systems?
What resources are required?
Generate scope
Select initial system design that will best satisfy the project goals
Liaise with the customer to check if the work requirement or project goal is properly
understood
Go/no decision
110
111
Phase 2 Detailed Design
Select the appropriate project manager
Commitment from senior management
Refine the elements under the conceptual phase
Select the "best" system for achieving the goal
Reach agreement on system design and then generate the following:
Freeze project scope
Project planning
Project Budget
Project Schedule
Determine the extra resources required and for what duration
Identify areas of risk and uncertainty and outline plans for further exploration of these areas
Conduct a HAZOP (hazardous operation study), operation to be intrinsically safe in all
respects/disciplines of engineering and operations
Start documentation process such as policies, procedures, job descriptions and etc.
Can the system still be afforded, i.e. after final costing is it economically viable (payback)?
Detailed contingency plans for areas of risk: Can enter into technological agreements to share
or brokerage of information
Develop procedures for work authorization, performance reporting
Develop training manuals
Phase 3 Production
Updating of detailed plans conceived and defined during the preceding phases
Maintain top management support and flow of communications within and among the
participating organizations
Verification of system production specifications
112
Update change of scope register
Beginning of production, construction and installation
Monitor actual progress and compare to baseline plans, i.e. critical path and network
diagrams and WBS
Final preparation and dissemination of policy and procedural documents
Performance of final testing to determine adequacy of the system to do the things it is
intended to do, if so, hand over document to be signed, this if process can generate some
profit, but not target profit
Training of operators
Development of technical manuals and affiliated documentation describing how the system
intended to work
Develop systems to support the system during its operational phase
Phase 4 Operational
I. Acceptance of final results by customer
Check competency of operators
Evaluation of technical, social and economic sufficiency of the project to meet actual
operational conditions
Use of the system results by the intended user or customer
Start to prepare handover documentation
Actual integration of the project's product or service into existing organizational systems
Provide feedback to organizational planners concerned with developing new projects and
systems
Evaluation of the adequacy of supporting systems
113
Phase 5 Divestment
Develop plans for transferring responsibility to supporting organizations, i.e. handover
Divestment or transfer of resources to other systems
Phase 6 Assessment
Development of "lessons learnt from system" for inclusion in quantitative-qualitative database to
include:
Assessment of image by the customer
Major problems encountered and their solutions
Technological advances
New or improved management techniques
Recommendations for future research and development
Recommendations for management of future programs, including interfaces with associate
contractors
Other major lessons learned during the course of the system
Planning & Control
Through each of the steps mentioned in the phases of project management, planning and control
must be practiced to a high degree.
The steps that must be followed during planning are as follows:
1. Understand exactly what is required by the client, sign a contracted scope of work, this to be
used as a "live" document for the service rendered. The scope should include the objective
and termination dates.
114
Establish a basis of a planning network (CPM), identifying key milestones. Plan to do detail
planning for each phase only when necessary. Conduct a hazardous operation and
environmental impact studies.
Assess time and resource requirements and provide slack time (i.e. overruns).
Confirm staff allocations via organizational matrix.
Make allocation for staff training.
Project authority should be clearly defined.
The steps to be followed during the controlling are as follows:
Establish communication systems, both within the project and senior management.
Hold fortnightly meetings to monitor progress with the client. Informal communication
channels should be established.
Use Deming's PDAC to project plan in check.
Monitor quality in all regards, workmanship, service rendered and received.
Maintain a scope change register.
Track actual costs to forecasts.
Record reasons for slippage, inform management/client and move termination date
accordingly.
Does the project management procedure comply with IS014002.
Management Style
The management style to be adopted is the Hersey & Blanchard S4/M4 relationship whereby work is
delegated and there are low management relationships. It is assumed that team members are willing
and able. The manager should also have the ability to motivate (McGregor Theory X &Y and
Maslow Theory of Needs) the project.
115
Experienced project manager questionnaire
Proieet Management Questionnaire
Questions for experienced Project Managers
This is survey to determine whether the project management model presented herewith is of
validation. Various authors' works were consulted to develop the model. The model concentrates
on the management functions in project management.
The model presented is subdivided into six phases. Each phase is further broken into a series of
activities. Each phase has five possibilities in terms of answers. Please tick the appropriate box and
make recommendations where applicable.
Also, an ideal management style is postulated, this being the Hersey&Blanchard S4/M4 relationship
where subordinates are thought-to be willing and able. The steps of planning and controlling are
also surveyed as this is viewed as a vital part f any project.
Thank you kindly.
Title- Date-
116
Phases of Project Management
Phase 1 Conceptual design
Determine goals
Conduct a feasibility
Establish system concepts to provide initial strategic guidance to overcome existing or
potential difficulties
Conduct technology search, if technology does not exist in-house, develop research and
development program or bring in consultants
Examine alternative ways of achieving goals
Determine environmental and economic feasibility
Provide answers for:
What will the system cost, within 25% accuracy?
When will the system be ready?
What will the system do?
How will the system be integrated into the existing systems?
What resources are required?
Generate scope
Select initial system design that will best satisfy the project goals
Liaise with the customer to check if the work requirement or project goal is properly
understood
Go/no decision
117
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
Phase 2 detailed design
Select the appropriate project manager
Commitment from senior management
Refine the elements under the conceptual phase
Select the "best" system for achieving the goal
Reach agreement on system design and then generate the following:
Freeze project scope
Project planning
Project Budget
Project Schedule
6. Determine the extra resources required and for what duration
118
Identify areas of risk and uncertainty and outline plans for further exploration of these areas
Conduct a HAZOP (hazardous operation study), operation to be intrinsically safe in all
respects/disciplines of engineering and operations
Start documentation process such as policies, procedures, job descriptions and etc.
Can the system still be afforded, i.e. after final costing is it economically viable (payback)?
Detailed contingency plans for areas of risk: Can enter into technological agreements to share
or brokerage of information
Develop procedures for work authorization, performance reporting
Develop training manuals
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
Phase 3 production phase
Updating of detailed plans conceived and defined during the preceding phases
Maintain top management support and flow of communications within and among the
participating organizations
Verification of system production specifications
Update change of scope register
119
Beginning of production, construction and installation
Monitor actual progress and compare to baseline plans, i.e. critical path and network
diagrams and WBS
Final preparation and dissemination of policy and procedural documents
Performance of final testing to determine adequacy of the system to do the things it is
intended to do, if so, hand over document to be signed, this if process can generate some
profit, but not target profit
Training of operators
Development of technical manuals and affiliated documentation describing how the system
intended to work
Develop systems to support the system during its operational phase
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
120
Phase 4 Operational
Acceptance of final results by customer
Check competency of operators
Evaluation of technical, social and economic sufficiency of the project to meet actual
operational conditions
Use of the system results by the intended user or customer
Start to prepare handover documentation
Actual integration of the project's product or service into existing organizational systems
Provide feedback to organizational planners concerned with developing new projects and
systems
Evaluation of the adequacy of supporting systems
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
121
Phase 5 Divestment
Develop plans for transferring responsibility to supporting organizations, i.e. handover
Divestment or transfer of resources to other systems
Strongly agree Agree )indifferent Disagree Strongly
disagree
Recommendations
Phase 6 Assessment
Development of "lessons learnt from system" for inclusion in quantitative-qualitative database to
include:
Assessment of image by the customer
Major problems encountered and their solutions
Technological advances
New or improved management techniques
Recommendations for future research and development
Recommendations for management of future programs, including interfaces with associate
122
contractors
o Other major lessons learned during the course of the system
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
Planning & Control
Through each of the steps mentioned in the phases of project management, planning and control
must be practiced to a high degree.
The steps that must be followed during planning are as follows:
I. Understand exactly what is required by the client, sign a contracted scope of work, this to be
used as a "live" document for the service rendered. The scope should include the objective
and termination dates.
2. Establish a basis of a planning network (CPM), identifying key milestones. Plan to do detail
planning for each phase only when necessary. Conduct a hazardous operation and
environmental impact studies.
123
Assess time and resource requirements and provide slack time (i.e. overruns).
Confirm staff allocations via organizational matrix.
Make allocation for staff training.
Project authority should be clearly defined.
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
124
The steps to be followed during the controlling are as follows:
I. Establish communication systems, both within the project and senior management.
Hold fortnightly meetings to monitor progress with the client. Informal communication
channels should be established.
Use Deming's PDAC to project plan in check.
Monitor quality in all regards, workmanship, service rendered and received.
Maintain a scope change register.
Track actual costs to forecasts.
Record reasons for slippage, inform management/client and move termination date
accordingly.
Strongly agree Agree ]Indifferent Disagree Strongly
disagree
Recommendations
125
Management Style
The management style to be adopted is the Hersey & Blanchard S4/M4 relationship whereby work is
delegated and there are low management relationships. It is assumed that team members are willing
and able. The manager should also have the ability to motivate (McGregor Theory X &Y and
Maslow Theory of Needs) the project.
Strongly agree Agree Indifferent Disagree Strongly
disagree
Recommendations
126
Appendix B
PURPOSE:
The environmental impact assessment is intended to identify the potential influences a proposed process will have on employees, the public and the environment.
It is intended to provide information on:
which plant designs should be implemented and
which contingency plans should be formulated,
in order to reduce the possible negative impact of the development.
SCOPE:
All major projects e.g. New Greenfields Plant All capacity expansion projects All process improvement/replacement projects All minor projects that could have an environmental effect.
For major projects, the EIA should establish currently known potential hazards or environmental impacts upfront. This will allow these aspects to be addressed in the detailed design.
After completion of the detailed engineering, the EIA study should be reviewed to finalize the assessment.
Complete the following ENVIRONMENTAL IMPACT ASSESSMENT where applicable:
Note:
All minor projects that could have an environmental effect, only complete items marked (*).
127 ENVIRONMENTAL IMPACT ASSESSMENT
1.1 PROJECT (*)
Project Name & Number:
1.2 Proposed Project commencement:
1.3 Proposed Project completion:
1.4 EIA completion:
1.5 Final EIA review:
(Prior to scope being frozen)
2.1
THE PROJECT & PROCESS (*)
Project Description:
2.2 Process Description:
2.3 Alternatives considered:
2.4 Previous environmental incidents known to have occurred with the
same/similar processes:
3.1 MATERIAL HAZARD DATA
(List all process materials — excluding maintenance materials — to be
handled on site)
Materials list
Raw Materials:
128
Finished Products:
Solid Wastes:
3 . 2 Effluents
(Quantity & Composition of Effluent)
3 . 3 Hazard Sheets
(Provide details for all materials as per Chemical Hazard data
sheets — Table 1)
4.
4.1
4.1.1
ENVIRONMENTAL ASPECTS
(*)
Air pollution
(See tables 2 & 3 for standards/guidelines)
Is the proposed process classified as a scheduled process?
If so, has approval been obtained? Provide details of approval.
4.1.2 Block flow diagram of air pollutants (identify quantity and composition of
streams, e.g. boiler stack, drier discharges, cooling tower vapours, see also
4.1.3.
(*)
4.1.3 Description of processes: (for example)
SO2 Generation:
Steam Generation: (S02/smoke)
129
Feed Drying: (Odour)
Product Drying/Conveying: (Dust)
Effluent Treatment:
4.1.4 Equipment to be used to purify air streams? (1
4.1.5 Stack Heights: (where applicable)
4.1.6 Cooling Towers:
4.1.7 Sensitivity of surrounding vegetation to air pollutants:
4.1.8 Are background measurements of expected pollutants available?
4.1.9 Proposed monitoring programme:
4.1.10 Is any open incineration or burning contemplated?
4.1.11 Is any solid or liquid effluent generated from air purification equipment? (1
4.2
4.2.1
Water pollution
( )
(See tables 4 & 5 for standards/guidelines)
Effluent block flow diagram:
130
4.2.2 Has an application for water/effluent permit been processed?
(Provide details of permit approval)
4.2.3 Detailed drainage paths from site and catchments areas:
4.2.4 Describe receiving body for effluent discharges:
4.2.5 Provide data on depth, quality and usage of underground water.
4.2.6 Quality of existing streams entering/leaving the site:
4.2.7 What control measures will be utilised on effluent arising from the process? (*)
4.2.8 What effluent treatment system(s) will be utilised? (*)
4.2.9 Where/how will domestic sewage be treated?
4.2.10 What system is proposed to monitor potential off-site pollution? •
131
4 . 3
4.3.1
Solid Waste Disposal
(1
Solid wastes should preferably be disposed of on an off-site dump, managed
by an outside concern. Proper contracts to cover liabilities from dump
pollution should be drawn up.
Describe site where solid wastes are to be dumped:
4.3.2 Will waste give rise to leachate?
4.3.3 Will leachate meet standards?
4.4
4.4.1
Noise
(*)
(See attached Table 6 for guidelines)
Description of existing background noise:
4.4.2 Has a pre-project boundary noise survey been carried out?
4.4.3 Identify critical noise receptors near site:
4.4.4 Describe anticipated noise sources: (1
4.4.5 Steps proposed to eliminate/reduce noise: (*)
4.4.6 Noise associated with plant shut down:
132
4.4.7 What system will be used to monitor future noise level?
4.5 Aesthetics
4.5.1 Will the development of the site create visual/aesthetic disruption?
4.5.2 List sizes of visually prominent equipment/dumps:
4.5.3 List sources of light or glare:
4.5.4 Plant/Structure appearance from site boundaries:
5.
5.1 TRANSPORTATION AND SITE DATA (Only applicable to MAJOR
Projects)
Identify access routes to the proposed site:
5.2 Is dust on roadways a potential problem?
5.3 Define quantities of materials transported to and from site:
133
Rail:
Road:
5.4 Effect on existing road traffic:
5.5 Describe proposed site:
Location:
Size:
5.6 Provide distance, direction to nearest residential/public area:
5.7 Describe surrounding vegetative cover:
5.8 Describe surrounding topography and soil:
5.9 Describe existing pollution sources.
(Air; water; noise; dust)
5.10 Provide available climatologically data: (Maximum; Minimum; Average)
0 Temperature
0 Humidity
0 Rainfall
0 Wind direction; speed
0 Sunshine
0 Evaporation
0 Frequency of inversion
6. WATER SUPPLY (Only applicable to MAJOR Projects) 6.1 Where will process water be sourced from? _
134
6.2 Where will domestic/ablution water be sourced from?
6.3 Will any of these water sources require additional treatment before use?
6.4 Indicate daily and annual average/maximum usage levels.
6.5 Has a water permit been approved?
(Provide details)
CONSULTATION WITH EXTERNAL AUTHORITIES 7
.1 List external authorities that need to provide approvals.
(Contact person(s) needs to be identified)
7.2 List consent levels that have to be complied with to obtain approval.
(Also provide expected operating levels)
EMERGENCY FACILITIES 8.1 Describe any emergency procedures that will be in effect on the site.
135
8.2
List facilities on site to cater for emergencies.
9. CONSTRUCTION PHASE 9.1 What steps will be taken to minimum/reduce interference/impact of
construction activities on:
Current site activities:
Neighbouring sites:
9 . 2 Materials 9.2
.1 Are specific areas available for receiving/storing construction
materials? (building materials; plant equipment; piping; cabling; etc)
9 . 2 . 2 Is an area available for accumulation (if required) of rubble,
excavation materials & wastage?
9.2.3 What is the proposed frequency of site cleaning?
9.3 Pollution
9.3.1 Are adequate ablution facilities available on site for construction
workforce?
136
9.3.2 What steps will be taken to limit/reduce noise arising from
construction activities?
9.4
9 . 4 . 1
Aesthetics
Identify and list sizes of visually prominent equipment/dumps during
construction.
9.4.2 Is any sensitive ecological/vegetative area being affected by the
construction (project)? (Have the necessary discussions been
held/acceptance been obtained?)
9.4.3 What steps will be taken to reinstate environmental impacts of
construction? (e.g. excavations; damage to vegetation)
9.5
9 . 5 . 1
Safety/Housekeeping
Have all contractors on site attended Afprod's Safety &
Environmental Induction Programme?
9 . 5 . 2 Have all contractors accepted responsibility for daily cleaning of
site?
