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Theme 3 - Starting a Project

1. Project definitions and requirements

1.1. The importance of initial project definition

  • The investors need to know how much money will be spent on the project and what the benefit they would generate
  • The contracting organisation needs to know for what it is bidding and what is its commitments when signing the contract
  • The managers involved in this project needs to know what is expected from them to make this project successful.

1.2. Project definitions

Definitions come from the following questions

  • Why is the project needed?
  • What will exist at the end of the project that doesn’t exist now? (This does not have to be a physical object)
  • Will (or should) the project deliver anything else?
  • Is anything explicitly excluded from the project?
  • What assumptions are you making?
  • Are there any significant problems you are aware of?
  • Are there any specific conditions or constraints?
  • Who will you need to carry out this project?

1.3. PID (Project Initiation Document)

The PID will form the basis of your project pitch. It is a formal document that lays out the intentions and scope of the project. The PID must be agreed before work can start on the project.

1.4. Key objectives for any project

1.4.1. Cost objective

  • Every project should be controlled against a detailed budget to ensure the expenses are not exceeded. Otherwise, profits and ROI will be reduced.
  • However, some profits are not made for profits such as pure scientific research programs, and local governmental projects. In this case the focus is heavily on the cost management because the whole project might terminate if the funds run out.

1.4.2. Performance/quality objective

  • Reliability and freedom from malfunction
  • Low operating cost
  • Safety
  • Long use and economic life
  • Environmental friendly
  • Performance equal to the specifications

1.4.3. Time objective

  • All significant stages of a project must finish on the agreed schedule dates
  • Failure to meet this deadline will ruin the reputation of the contractor
  • Delay in a project might cause delays in other projects and consume resources beyond its planned finish dates.

1.5. Project Organisation

As a project manager you will need to consider who will be in each of the following groups:

  • Project board
  • Project Team
  • Stakeholders
  • Quality Assurance

1.5.1. Project Board

  • The project board are responsible for delivering the project
  • Their job is to oversee the project and keep it moving in the right direction.
  • They are accountable for the project’s success or failure.

1.5.2. Project team

A team can be created for each project and can be supervised by the project manager who is responsible not only for planning, progress and work allocation but also for all technical aspects of the project.

1.5.3. Stakeholders and Buy-In

Stakeholders are key players in your project. They may be individuals e.g. your manager, or an investor, and organizations, such as suppliers, and large groups e.g. your customers and employees. You must secure their buy-in, or support, in a number of ways to seek permission, secure investment, induce consumption, and evoke loyalty.

Stakeholders will assess your project and product offering based upon the following:

  • Benefits Realized : Managers, investors, and customers will pay close attention to the positive attributes of a proposed emerging-technology concept.
    • Is your concept likely to meet consumer needs?
    • Is it likely to be popular?
    • Is it likely to make a return on investment?
  • Robust Research
    Investors in particular will require substantial data in relation to expected product performance and forecasted costs and sales before they commit to providing capital.
  • Talent Management
    Emerging technology requires talented and potentially expensive staff. An appropriate talent-management strategy is required to actively recruit and retain an engaged, loyal workforce.
  • Brand Image
    Understanding methods and techniques to cultivate an effective brand image, which is promoted using appropriate communication channels, is very important.

1.5.4. Quality Assurance

  • List of Factors(Checklist)
    Quality assurance (QA) is a way of preventing errors and maintaining required levels of performance throughout each stage of a project. QA is judged on a number of factors that can determine a project’s success or failure:
    • Good project definition and a sound business case
    • Appropriate choice of project strategy
    • Strong support for the project from senior management
    • Availability of sufficient funds and other resources
    • Technical competence
    • A strong quality culture throughout the organization
    • A suitable organization structure
    • Appropriate regard for the health and safety of everyone connected with the project
    • Good project communications
    • Well-motivated staff
    • Quick and fair resolution of conflict
  • Quality Assurance Methods
    • Suppliers’ Procedures : It is important to take an interest in quality control measures taken by your suppliers.
    • Expediting : When waiting for your supplier to deliver, you may wish to spur progress by regularly investigating order status.
    • Inspection : Visiting participating business units (including suppliers’ premises) coupled with consistent scrutiny of operational processes, performance capability, and results.
    • Intervention : If suppliers and other actors cannot deliver on time, or perform to expectations, Project Managers may have to authorize emergency measures.
    • Prioritize : Ranking work in terms of importance identifies tasks critical to maintaining performance level expectations.
      • Priority A - Urgent tasks
      • Priority B - Important but less urgent tasks
      • Priority C - Less important tasks

1.6. What is SMART?

Your project pitch must contain content that is SMART.

  • S - Specific
  • M - Measurable
  • A - Achievable
  • R - Relevant
  • T - Time-bound

1.7. Organisation Structures

An organization structure defines lines of authority, scope of responsibility, task allocation, and pathways of communication. As per Lock, structures are often tailored to meet project requirements, and its own views concerning how work should be organized.

  • Hierarchical Organisation
    An organization described as hierarchical is one that values order, identification of clear lines of responsibility, clarification of job tasks and responsibilities, and several layers of management.
  • Flat Organization
    A flat organization is characterized as having relatively few layers of management. Managers’ span of control is wider in contrast to a hierarchical structure. Employees tend to have more responsibility and freedom to explore ideas and take decisions without deferring to management. Lines of responsibility are more fluid, and lines of communication more flexible.
  • Holacratic Organizations
    Moving beyond flat organizations, holacratic organizations lack conventional management structures. Employees are clustered into teams that correspond with a particular function.

1.8. Extra learning information

What is PID?