Project Development and Control

1. Be able to identify the Components of project stage and lifecycle

1.1. Main processes in the lifecycle of the project:

Initiation –starting up the project; defining its purpose and scope; justification for initiating it and the solution to be implemented. Planning –defining organisational structure of the project; appointing the project team; defining the activities and mutual relationships, risks and criteria for a successful implementation of these actions; identifying stakeholders. Execution –the most important phase from the aspect of project results; execution and coordination of activities defined in the planning phase. Control –very often combined with the execution phase (2 most important phases); detecting mistakes incurred during implementation; suggesting corrective actions. Closing –analysis of the results; final project statements; identifying level of project success and noting down any lessons learned for future projects.

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1.2. Processes in the lifecycle in the project “Revitalization of the Grand Backa Canal”:

Phase 1 - The territory of the Municipality Vrbas faces a big problem because “The Grand Backa Canal”, which runs through the municipality, is extremely polluted from the wastewater discharged into the canal nearby factories. Also, the canal is no longer navigable. Heavily polluted by unprocessed industrial and communal wastewaters, the canal today is a lifeless stream of poisons, including heavy metals. Due to contamination of the canal the whole environment, especially in a place where canal runs through the municipality of Vrbas is destroyed.

Revitalisation of the canal is essential for Vrbas municipality and the whole environment. The solution for this problem is to stop further pollution and to clean up and revitalize the canal and the area around it. Management of the Vrbas municipality organized a meeting with the topic – the contamination of the canal. They noted the disastrous situation and agreed to start a project for revitalization of the Grand Backa canal.

Phase 2 – The project manager is appointed. He formed a project team and organized a meeting to discuss the issues of this project. The project manager and his team defined the project objectives. Objectives of the project are contained in the following activities: Activity 1 – to build a plant in the factories to treat wastewater before it is discharged into the canal; Activity 2 – to purify the canal from sludge;

Activity 3 – to provide sports and recreational facilities in addition to the Grand Backa canal. It was decided which software will be used to define activities, their duration, resources and costs of the project. Gantt chart will present activities, their duration and interdependence. The project duration is determined.

The plan of periodical reporting on the project and monitoring of the project implementation is defined, and the stakeholders are identified in the meeting. Phase 3 – in the implementation phase all activities that are planned in the phase 2 are carried out. All resources needed for the execution of the project are recruited. The processes of monitoring and control are also part of this phase in order to prevent delays in the implementation of the activities.

The project manager is periodically checking whether the project goes according to a predefined plan, by using the software and through the meetings with his team. Close monitoring of each activity during implementation is important factor in this phase which helps to minimize a potential risks in delays of particular activities. Phase 4 – in the closing phase of the project level of project success will be identified. On the basis of final reports, results achieved will be compared with the planned results.

1.3. Projects and operational management:

Operations are an organisational function performing the on-going execution of activities that produce the same product or provide a repetitive service. Examples include: production operations, manufacturing operations, and accounting operations. Though temporary in nature, projects can help achieve the organisational goals when they are aligned with the organisation´s strategy.

Organisations sometimes change their operations, products or systems by creating strategic business initiatives. Projects require project management while operations require business process management or operations management. Projects can intersect with operations at various points during the product life cycle, such as:

At each closeout phase;
When developing a new product, upgrading a product or expanding outputs; Improvement of operations or the product development process; or Until the divestment of the operations at the end of the product life cycle.

At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start.

Operations are permanent endeavours that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the on-going nature of operations, projects are temporary endeavours.

2. Be able to describe project methodologies and their application

2.1. The project methodology
Project Management Methodology is a strictly defined combination of logically related practices, methods and processes that determine how best to plan, develop, control and deliver a project throughout the continuous implementation process until successful completion and termination. It is a scientifically-proven, systematic and disciplined approach to project design, execution and completion.

The purpose of project methodology is to allow for controlling the entire management process through effective decision making and problem solving, while ensuring the success of specific processes, approaches, techniques, methods and technologies. Typically, a methodology provides a skeleton for describing every step in depth, so that a project manager will know what to do in order to deliver and implement the work according to the schedule, budget and client specification. Referring to the mentioned definition, an appropriately chosen project management methodology paves the way for gaining the following achievements: The needs of stakeholders are defined

A common “language” is established and understood by the team, so they know what’s expected of them Cost estimates are complete, accurate and credible
Every task is done using a common methodological approach
Most conflicts are spotted and resolved early
Expected deliverables are produced and handed over
Lessons are learned and solutions are quickly implemented

Here’s a simplified example of how a project methodology can be presented in the management hierarchical structure:

Picture 2. PM framework
In the Picture 2. can be seen that PM Framework precedes Methodology which in turn precedes Lifecycle Stages and determines the project management Processes, Tasks and Activities. 2.2. Project scope, project duration, objectives, stakeholder and possible restrictions on the project “Revitalisation of the Grand Backa Canal”: Project scope

Grand Backa Canal which runs through the municipality of Vrbas is an example of the worst environmental hot spot and one of the most polluted water streams in Europe thus, the direct environmental benefit of its revitalisation is quite obvious. More important is the fact that the Grand Backa Canal represents a serious health risk for the local people that also has significant adverse social as well as economic impacts on further development of the region.

Environmental and human health hazard existing in Vrbas is not acceptable and it demands urgent action. The intention of this project is to find a solution for cleaning up and revitalisation of the heavily polluted Grand Backa Canal. Before the clean-up can start, the imperative is to stop further pollution to ensure the sustainability of the entire project. Project duration

16 months i.e. 01 December 2011 – 01 April 2013.

Project objectives
The project team defined the following project objectives:
1. Building a plant in the factories that treated wastewater before it is discharged into the Canal; 2. Purifying the Canal from sludge;
3. Providing sports and recreational facilities in addition to the Grand Backa Canal. At all three objectives, the activities are defined which will contribute to realisation of goals and projects.

Stakeholders

Many stakeholders are involved and have a vested interest in the project “Revitalisation of the Grand Backa Canal”. The key stakeholders are: Management of the municipality of Vrbas, Project manager and project team, Managers of factories that discharge waste water, Public-utility company Water of Vojvodina, Locals and the Community. Possible restrictions on the project

Possible restrictions are closely associated with the deadlines and the issues that may arise in the course of implementation of the project. If the deadlines are not met it will cause delays in the implementation of the activities, the expenses will be increased and therefor the realisation will deviate from the plan. The time dimension is one of the most important elements during the realisation of the project.

2.3. Fundamentals of businesses to support a project.

The basic elements for successful implementation of a project are: Goals must be clearly defined. Each project has its goal that should be achieved. A clearly defined project goal will help to determine necessary activities for its successful realisation. Deadlines are important elements that should help the project activities to be implemented within a timeframe. Good planning is the basis for successful project implementation. The basic elements of the project: time, costs and resources, must be carefully
planned in order to achieve project objectives. Resources necessary for project realization are mainly: people, finances, equipment, all kinds of materials etc.

Without adequate resources it is not possible to accomplish the project in its scope or planned time, therefor it is important to use the resources optimally for the successful completion of the project tasks. Organisational structure is an important element for project implementation because it determines responsibility, authorization and position of the project manager. Software tools can help project management to be much more efficient and effective. Information & control systems have a basic task to collect data and monitor project implementation. 3. Be able to implement and evaluate the personal development plan

3.1. Project plan

One of the critical factors for project success is having a well-developed project plan. It provides a roadmap for project managers to follow and it is the project manager´s premier communications and control tool throughout the project. The project plan can be defined as a formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. A project plan may be summarized or detailed. Components of the project plan include:

Baselines. Baselines are sometimes called performance measures, because the performance of the entire project is measured against them. They are the project's three approved starting points and include the scope, schedule, and cost baselines. These provide the 'stakes in the ground.' That is, they are used to determine whether or not the project is on track, during the execution of the project. Baseline management plans. These plans include documentation on how variances to the baselines will be handled throughout the project.

Each project baseline will need to be reviewed and managed. A result of this process may include the need to do additional planning, with the possibility that the baseline(s) will change. Project management plans document what the project team will do when variances to the baselines occur, including what process will be followed, who will be notified, how the changes will be funded, etc. Other work products from the planning process. These include a risk management plan, a quality plan, a procurement plan, a staffing plan, and a communications plan.

3.2. Potential risks to the project of revitalisation of the Grand Backa Canal. Ways to reduce or eliminate risks:

All projects share a range of features which inevitably introduce uncertainty. Factors found in all projects which make them inherently risky include: uniqueness, complexity, assumptions and constraints, people, stakeholders, change. These risky characteristics are built into the nature of all projects and cannot be removed without changing the project. It is undoubtedly true that projects are risky as a result of their common characteristics, by deliberate design, and because of the external environment within which they are undertaken.

It is impossible to imagine a project without risk. Of course some projects will be high-risk, while others have less risk, but all projects are by definition risky to some extent. The important thing is not to keep risk out of project, but to ensure that the inevitable risk associated with every project is at a level which is acceptable to the sponsoring organisation, and is effectively managed. This of course is why risk management is such an important part of effective project management: since all projects are exposed to risk, successful projects are the ones where that risk is properly managed.

Potential risks to the project of revitalisation of the Grand Backa Canal: Failure in implementation of project tasks which can cause delays in the implementation of the main three activities of the project. Mitigation:application of Gantt chart which will present activities, their duration, and interdependence. Also, the Work Breakdown Structure (WBS) will define the full scope of the project, to ensure that this is clearly stated and understood, and to form a basis for project control and monitoring. Budget increase during the implementation of the project as a consequence of delays in carrying out of individual tasks.

Mitigation:budget item named Contingency which will be determined in a certain percentage compared to the total project budget to be used to cover unforeseen expenditures. Lack of cooperation by the factories which discharge the wastewater. Mitigation:clearly defined roles of all stakeholders of the project which will be indicated in the agreement signed by all relevant parties. Unsustainability of the project. Mitigation:it is important that the factors that affect sustainability of the project are articulated well and incorporated , as far as possible, at the beginning stage. Later, the same factors can be followed up through monitoring.

3.3. Strategy for monitoring the implementation of the project

Good management practices include regular monitoring on both short- and long-term basis. An effective monitoring process provides on-going, systematic information that strengthens project implementation. The monitoring process provides an opportunity to: a) Compare implementation efforts with original goals and targets, b) Determine whether sufficient progress is being made toward achieving expected results, c) Determine whether the time schedule is observed.

Implementation together with monitoring show how important it is to work with indicators and SMART targets from the very beginning of the project implementation An effective monitoring and reporting system ideally includes the following elements: Clearly articulated targets and a set of indicators to measure performance; A schedule and set of guidelines for all responsible parties to report to each other; An opportunity for responsible parties and stakeholders to periodically meet to coordinate actions and review each other´s performance;

A link between the evaluation reports and progress achieved in the field. It is crucial to define the monitoring process in the project plan. Depending on the project duration and the budget involved, periodical reporting on the project progress should be defined at the beginning (quarterly, semi-annual, annual). A project manager is responsible for close monitoring of the project implementation, including timely appraisal of the reports and field visits to be able to monitor the work processes.

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